[Congressional Record (Bound Edition), Volume 153 (2007), Part 21]
[Senate]
[Pages 29211-29380]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3499. Mr. WYDEN submitted an amendment intended to be proposed by 
him to the bill H.R. 2419, to provide for the continuation of 
agricultural programs through fiscal year 2012, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike section 9005 of the Farm Security and Rural 
     Investment Act of 2002 (as amended by section 9001) and 
     insert the following:

     ``SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.

       ``(a) Purpose.--The purpose of this section is to assist in 
     the development of new or emerging technologies for the use 
     of renewable biomass or other sources of renewable energy--
       ``(1) to develop advanced biofuels;
       ``(2) to increase the energy independence of the United 
     States by promoting the replacement of energy generated from 
     fossil fuels with energy generated from a renewable energy 
     source;
       ``(3) to promote resource conservation, public health, and 
     the environment;
       ``(4) to diversify markets for raw agricultural and 
     forestry products, and agriculture waste material; and
       ``(5) to create jobs and enhance the economic development 
     of the rural economy.
       ``(b) Definition of Repower.--In this section, the term 
     `repower' means to substitute the production of heat or power 
     from a fossil fuel source with heat or power from sources of 
     renewable energy.
       ``(c) Assistance.--
       ``(1) In general.--The Secretary shall make available to 
     eligible entities described in subsection (d)--
       ``(A) grants to assist in paying the costs of--
       ``(i) development and construction of pilot- and 
     demonstration-scale biorefineries intended to demonstrate the 
     commercial viability of 1 or more processes for converting 
     renewable biomass to advanced biofuels;
       ``(ii) repowering a biomass conversion facility, power 
     plant, or manufacturing facility, in whole or in part;
       ``(iii) conducting a study to determine the feasibility of 
     repowering a biomass conversion facility, power plant, or 
     manufacturing facility, in whole or in part; or
       ``(iv) development and demonstration of harvesting, 
     transportation, preprocessing, and storage technologies 
     relating to the production and use of renewable biomass 
     feedstocks in biorefineries and repowering projects; and
       ``(B) guarantees for loans made to fund--
       ``(i) the development and construction of commercial-scale 
     biorefineries; or
       ``(ii) the repowering of a biomass conversion facility, 
     power plant, or manufacturing facility, in whole or in part.
       ``(2) Preference.--In selecting projects to receive grants 
     and loan guarantees under this section, the Secretary shall 
     give preference to projects that receive or will receive 
     financial support from the State in which the project is 
     carried out.
       ``(d) Eligible Entities.--An eligible entity under this 
     section is--
       ``(1) an individual;
       ``(2) a corporation;
       ``(3) a farm cooperative;
       ``(4) a rural electric cooperative or public power entity;
       ``(5) an association of agricultural producers;
       ``(6) a State or local energy agency or office;
       ``(7) an Indian tribe;
       ``(8) an institution of higher education;
       ``(9) a consortium comprised of any individuals or entities 
     described in any of paragraphs (1) through (8); or
       ``(10) any other similar entity, as determined by the 
     Secretary.
       ``(e) Grants.--
       ``(1) In general.--The Secretary shall award grants under 
     subsection (c)(1)(A) on a competitive basis.
       ``(2) Selection criteria.--
       ``(A) Grants for development and construction of pilot and 
     demonstration scale biorefineries.--
       ``(i) In general.--In awarding grants for development and 
     construction of pilot and demonstration scale biorefineries 
     under subsection (c)(1)(A)(i), the Secretary shall select 
     projects based on the likelihood that the projects will 
     demonstrate the commercial viability of a new or emerging 
     process for converting renewable biomass into advanced 
     biofuels.
       ``(ii) Factors.--The factors to be considered under clause 
     (i) may include--

       ``(I) the potential market for 1 or more products;
       ``(II) the level of financial participation by the 
     applicants;
       ``(III) the availability of adequate funding from other 
     sources;
       ``(IV) the participation of producer associations and 
     cooperatives;
       ``(V) the beneficial impact on resource conservation, 
     public health, and the environment;
       ``(VI) the timeframe in which the project will be 
     operational;
       ``(VII) the potential for rural economic development;
       ``(VIII) the participation of multiple eligible entities; 
     and
       ``(IX) the potential for developing advanced industrial 
     biotechnology approaches.

       ``(B) Grants for repowering.--In selecting projects to 
     receive grants for repowering under clauses (ii) and (iii) of 
     subsection (c)(1)(A), the Secretary shall consider--
       ``(i) the change in energy efficiency that would result 
     from the proposed repowering of the eligible entity;
       ``(ii) the reduction in fossil fuel use that would result 
     from the proposed repowering; and
       ``(iii) the volume of renewable biomass located in such 
     proximity to the eligible entity

[[Page 29212]]

     as to make local sourcing of feedstock economically 
     practicable.
       ``(C) Grants for harvesting, transportation, preprocessing, 
     and storage of renewable biomass feedstocks.--In selecting 
     projects to receive grants for the development and 
     demonstration of harvesting, transportation, preprocessing, 
     and storage technologies relating to the production and use 
     of biomass feedstocks in biorefineries and repowering 
     projects, the Secretary shall consider--
       ``(i) the regional diversity and availability of renewable 
     biomass; and
       ``(ii) the economic and energy potential for use of the 
     proposed type of renewable biomass.
       ``(3) Cost sharing.--
       ``(A) Limits.--
       ``(i) Development and construction of pilot and 
     demonstration scale biorefineries.--The amount of a grant 
     awarded for development and construction of a biorefinery 
     under subsection (c)(1)(A)(i) shall not exceed 50 percent of 
     the cost of the project.
       ``(ii) Repowering.--The amount of a grant awarded for 
     repowering under subsection (c)(1)(A)(ii) shall not exceed 20 
     percent of the cost of the project.
       ``(iii) Feasibility study for repowering.--The amount of a 
     grant awarded for a feasibility study for repowering under 
     subsection (c)(1)(A)(iii) shall not exceed an amount equal to 
     the lesser of--

       ``(I) an amount equal to 50 percent of the total cost of 
     conducting the feasibility study; and
       ``(II) $150,000.

       ``(iv) Harvesting, transportation, preprocessing, and 
     storage.--The amount of a grant awarded for harvesting, 
     transportation, preprocessing, and storage under subsection 
     (c)(1)(A)(iv) shall not exceed an amount equal to 50 percent 
     of the cost of the project.
       ``(B) Form of grantee share.--
       ``(i) In general.--The grantee share of the cost of a 
     project may be made in the form of cash or the provision of 
     services, material, or other in-kind contributions.
       ``(ii) Limitation.--The amount of the grantee share of the 
     cost of a project that is made in the form of the provision 
     of services, material, or other in-kind contributions shall 
     not exceed 15 percent of the amount of the grantee share 
     determined under subparagraph (A).
       ``(f) Loan Guarantees.--
       ``(1) Conditions.--As a condition of making a loan 
     guarantee under subsection (c)(1)(B), the Secretary shall 
     require--
       ``(A) demonstration of binding commitments to cover, from 
     sources other than Federal funds, at least 20 percent of the 
     total cost of the project described in the application;
       ``(B) in the case of a new or emerging technology, 
     demonstration that the project design has been validated 
     through a technical review and subsequent operation of a 
     pilot or demonstration scale facility that can be scaled up 
     to commercial size; and
       ``(C) demonstration that the applicant provided 
     opportunities to local investors (as determined by the 
     Secretary) to participate in the financing or ownership of 
     the biorefinery.
       ``(2) Local ownership.--The Secretary shall give preference 
     under subsection (c)(1)(B) to applications for projects with 
     significant local ownership.
       ``(3) Approval.--Not later than 90 days after the Secretary 
     receives an application for a loan guarantee under subsection 
     (c)(1)(B), the Secretary shall approve or disapprove the 
     application.
       ``(4) Limitations.--
       ``(A) Maximum amount of loan guaranteed.--
       ``(i) Commercial-scale biorefineries.--Subject to clause 
     (iii), the principal amount of a loan guaranteed under 
     subsection (c)(1)(B)(i) may not exceed $250,000,000.
       ``(ii) Repowering.--Subject to clause (iii), the principal 
     amount of a loan guaranteed under subsection (c)(1)(B)(ii) 
     may not exceed $70,000,000.
       ``(iii) Relationship to other federal funding.--The amount 
     of a loan guaranteed under subsection (c)(1)(B) shall be 
     reduced by the amount of other Federal funding that the 
     entity receives for the same project.
       ``(B) Maximum percentage of loan guaranteed.--A loan 
     guaranteed under subsection (c)(1)(B) shall be in an amount 
     not to exceed 80 percent of the project costs, as determined 
     by the Secretary.
       ``(C) Authority to guarantee entire amount of the loan.--
     The Secretary may guarantee up to 100 percent of the 
     principal and interest due on a loan guaranteed under 
     subsection (c)(1)(B).
       ``(g) Consultation.--In carrying out this section, the 
     Secretary shall consult with the Secretary of Energy.
       ``(h) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use for the cost of grants 
     and loan guarantees to carry out this section $300,000,000 
     for fiscal year 2008, to remain available until expended.''.
                                 ______
                                 
  SA 3500. Mr. HARKIN (for himself, Mr. Chambliss, Mr. Baucus, and Mr. 
Grassley) proposed an amendment to the bill H.R. 2419, to provide for 
the continuation of agricultural programs through fiscal year 2012, and 
for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Food and 
     Energy Security Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

              TITLE I--PRODUCER INCOME PROTECTION PROGRAMS

Sec. 1001. Definitions.

               Subtitle A--Traditional Payments and Loans

         PART I--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Base acres and payment acres for a farm.
Sec. 1102. Payment yields.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of 
              direct payments and counter-cyclical payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Special rule for long grain and medium grain rice.
Sec. 1108. Period of effectiveness.

    PART II--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for 
              loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed 
              acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains 
              and seed cotton.
Sec. 1210. Adjustments of loans.

                           PART III--Peanuts

Sec. 1301. Definitions.
Sec. 1302. Base acres for peanuts for a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of 
              direct payments and counter-cyclical payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for 
              peanuts.
Sec. 1308. Adjustments of loans.

                Subtitle B--Average Crop Revenue Program

Sec. 1401. Availability of average crop revenue payments.
Sec. 1402. Producer agreement as condition of average crop revenue 
              payments.
Sec. 1403. Planting flexibility.

                           Subtitle C--Sugar

Sec. 1501. Sugar program.
Sec. 1502. Storage facility loans.
Sec. 1503. Commodity Credit Corporation storage payments.
Sec. 1504. Flexible marketing allotments for sugar.
Sec. 1505. Sense of the Senate regarding NAFTA sugar coordination.

                           Subtitle D--Dairy

Sec. 1601. Dairy product price support program.
Sec. 1602. National dairy market loss payments.
Sec. 1603. Dairy export incentive and dairy indemnity programs.
Sec. 1604. Funding of dairy promotion and research program.
Sec. 1605. Revision of Federal marketing order amendment procedures.
Sec. 1606. Dairy forward pricing program.
Sec. 1607. Report on Department of Agriculture reporting procedures for 
              nonfat dry milk.
Sec. 1608. Federal Milk Marketing Order Review Commission.
Sec. 1609. Mandatory reporting of dairy commodities.

                       Subtitle E--Administration

Sec. 1701. Administration generally.
Sec. 1702. Suspension of permanent price support authority.
Sec. 1703. Payment limitations.
Sec. 1704. Adjusted gross income limitation.
Sec. 1705. Availability of quality incentive payments for certain 
              producers.
Sec. 1706. Hard white wheat development program.
Sec. 1707. Durum wheat quality program.
Sec. 1708. Storage facility loans.
Sec. 1709. Personal liability of producers for deficiencies.
Sec. 1710. Extension of existing administrative authority regarding 
              loans.
Sec. 1711. Assignment of payments.

[[Page 29213]]

Sec. 1712. Cotton classification services.
Sec. 1713. Designation of States for cotton research and promotion.
Sec. 1714. Government publication of cotton price forecasts.
Sec. 1715. State, county, and area committees.
Sec. 1716. Prohibition on charging certain fees.
Sec. 1717. Signature authority.
Sec. 1718. Modernization of Farm Service Agency.
Sec. 1719. Geospatial systems.
Sec. 1720. Leasing office space.
Sec. 1721. Repeals.

                  Subtitle F--Specialty Crop Programs

Sec. 1801. Definitions.

             PART I--Marketing, Information, and Education

Sec. 1811. Fruit and vegetable market news allocation.
Sec. 1812. Farmers' market promotion program.
Sec. 1813. Food safety initiatives.
Sec. 1814. Census of specialty crops.

                      PART II--Organic Production

Sec. 1821. Organic data collection and price reporting.
Sec. 1822. Exemption of certified organic products from assessments.
Sec. 1823. National Organic Certification Cost Share Program.
Sec. 1824. National organic program.

                     PART III--International Trade

Sec. 1831. Foreign market access study and strategy plan.
Sec. 1832. Market access program.
Sec. 1833. Technical assistance for specialty crops.
Sec. 1834. Consultations on sanitary and phytosanitary restrictions for 
              fruits and vegetables.

                PART IV--Specialty Crops Competitiveness

Sec. 1841. Specialty crop block grants.
Sec. 1842. Grant program to improve movement of specialty crops.
Sec. 1843. Healthy Food Enterprise Development Center.

                         PART V--Miscellaneous

Sec. 1851. Clean plant network.
Sec. 1852. Market loss assistance for asparagus producers.
Sec. 1853. Mushroom promotion, research, and consumer information.
Sec. 1854. National Honey Board.
Sec. 1855. Identification of honey.
Sec. 1856. Expedited marketing order for Hass avocados for grades and 
              standards and other purposes.

                      Subtitle G--Risk Management

Sec. 1901. Definition of organic crop.
Sec. 1902. General powers.
Sec. 1903. Reduction in loss ratio.
Sec. 1904. Controlled business insurance.
Sec. 1905. Administrative fee.
Sec. 1906. Time for payment.
Sec. 1907. Surcharge prohibition.
Sec. 1908. Premium reduction plan.
Sec. 1909. Denial of claims.
Sec. 1910. Measurement of farm-stored commodities.
Sec. 1911. Reimbursement rate.
Sec. 1912. Renegotiation of standard reinsurance agreement.
Sec. 1913. Change in due date for Corporation payments for underwriting 
              gains.
Sec. 1914. Access to data mining information.
Sec. 1915. Producer eligibility.
Sec. 1916. Contracts for additional crop policies.
Sec. 1917. Research and development.
Sec. 1918. Funding from insurance fund.
Sec. 1919. Camelina pilot program.
Sec. 1920. Risk management education for beginning farmers or ranchers.
Sec. 1921. Agricultural management assistance.
Sec. 1922. Crop insurance mediation.
Sec. 1923. Drought coverage for aquaculture under noninsured crop 
              assistance program.
Sec. 1924. Increase in service fees for noninsured crop assistance 
              program.
Sec. 1925. Determination of certain sweet potato production.
Sec. 1926. Perennial crop report.

                         TITLE II--CONSERVATION

                        Subtitle A--Definitions

Sec. 2001. Definitions.

             Subtitle B--Highly Erodible Land Conservation

Sec. 2101. Review of good faith determinations; exemptions.

                    Subtitle C--Wetland Conservation

Sec. 2201. Review of good faith determinations.

        Subtitle D--Agricultural Resources Conservation Program

           Chapter 1--Comprehensive Conservation Enhancement

      subchapter a--comprehensive conservation enhancement program

Sec. 2301. Reauthorization and expansion of programs covered.

                   subchapter b--conservation reserve

Sec. 2311. Conservation reserve program.
Sec. 2312. Flooded farmland program.
Sec. 2313. Wildlife habitat program.

                 subchapter c--wetlands reserve program

Sec. 2321. Wetlands reserve program.
Sec. 2322. Easements and agreements.
Sec. 2323. Payments.

             subchapter d--healthy forests reserve program

Sec. 2331. Healthy forests reserve program.

            ``subchapter d--healthy forests reserve program

``Sec. 1237M. Establishment of healthy forests reserve program.
``Sec. 1237N. Eligibility and enrollment of lands in program.
``Sec. 1237O. Restoration plans.
``Sec. 1237P. Financial assistance.
``Sec. 1237Q. Technical assistance.
``Sec. 1237R. Protections and measures.
``Sec. 1237S. Involvement by other agencies and organizations.
``Sec. 1237T. Authorization of appropriations.

        Chapter 2--Comprehensive Stewardship Incentives Program

                    subchapter a--general provisions

Sec. 2341. Comprehensive stewardship incentives program.

       ``Chapter 6--Comprehensive Stewardship Incentives Program

      ``subchapter a--comprehensive stewardship incentives program

``Sec. 1240T. Comprehensive stewardship incentives program.

            ``subchapter b--conservation stewardship program

``Sec. 1240U. Purposes.
``Sec. 1240V. Definitions.
``Sec. 1240W. Establishment of program.
``Sec. 1240X. Eligibility.
``Sec. 1240Y. Regulations.

         subchapter b--environmental quality incentives program

Sec. 2351. Purposes.
Sec. 2352. Definitions.
Sec. 2353. Establishment and administration of environmental quality 
              incentives program.
Sec. 2354. Evaluation of offers and payments.
Sec. 2355. Duties of producers.
Sec. 2356. Environmental quality incentives program plan.
Sec. 2357. Limitation on payments.
Sec. 2358. Conservation innovation grants.
Sec. 2359. Ground and surface water conservation.
Sec. 2360. Organic conversion.
Sec. 2361. Chesapeake Bay watershed conservation program.

                     Chapter 3--Farmland Protection

               subchapter a--farmland protection program

Sec. 2371. Farmland protection program.

                subchapter b--grassland reserve program

Sec. 2381. Grassland reserve program.

               ``subchapter c--grassland reserve program

``Sec. 1238N. Definitions.
``Sec. 1238O. Grassland reserve program.
``Sec. 1238P. Duties.
``Sec. 1238Q. Terms and conditions.

                 Chapter 4--Other Conservation Programs

Sec. 2391. Conservation security program.
Sec. 2392. Conservation of private grazing land.
Sec. 2393. Reauthorization of wildlife habitat incentive program.
Sec. 2394. Grassroots source water protection program.
Sec. 2395. Great Lakes basin program for soil erosion and sediment 
              control.
Sec. 2396. Farm viability program.
Sec. 2397. Discovery watershed demonstration program.
Sec. 2398. Emergency landscape restoration program.
Sec. 2399. Voluntary public access and habitat incentive program.

                 Subtitle E--Funding and Administration

Sec. 2401. Funding and administration.
Sec. 2402. Regional equity.
Sec. 2403. Conservation access.
Sec. 2404. Delivery of technical assistance.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Conservation programs in environmental services markets.

                 Subtitle F--State Technical Committees

Sec. 2501. State technical committees.

                     Subtitle G--Other Authorities

Sec. 2601. Agricultural management assistance.
Sec. 2602. Agriculture conservation experienced services program.
Sec. 2603. Technical assistance.
Sec. 2604. Small watershed rehabilitation program.
Sec. 2605. Resource conservation and development program.
Sec. 2606. National Natural Resources Conservation Foundation.
Sec. 2607. Desert Terminal Lakes.
Sec. 2608. Crop insurance ineligibility relating to crop production on 
              native sod.
Sec. 2609. High Plains water study.
Sec. 2610. Payment of expenses.

[[Page 29214]]

Sec. 2611. Use of funds in Basin funds for salinity control activities 
              upstream of Imperial Dam.
Sec. 2612. Great Lakes Commission.
Sec. 2613. Technical corrections to the Federal Insecticide, Fungicide, 
              and Rodenticide Act.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

Sec. 3001. Short title.
Sec. 3002. United States policy.
Sec. 3003. Food aid to developing countries.
Sec. 3004. Trade and development assistance.
Sec. 3005. Agreements regarding eligible countries and private 
              entities.
Sec. 3006. Use of local currency payments.
Sec. 3007. General authority.
Sec. 3008. Provision of agricultural commodities.
Sec. 3009. Microenterprise activities.
Sec. 3010. Levels of assistance.
Sec. 3011. Food Aid Consultative Group.
Sec. 3012. Administration.
Sec. 3013. Assistance for stockpiling and rapid transportation, 
              delivery, and distribution of shelf-stable prepackaged 
              foods.
Sec. 3014. Pilot program for local purchase.
Sec. 3015. General authorities and requirements.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Expiration date.
Sec. 3019. Authorization of appropriations.
Sec. 3020. Micronutrient fortification programs.
Sec. 3021. Germplasm conservation.
Sec. 3022. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

    Subtitle B--Agricultural Trade Act of 1978 and Related Statutes

Sec. 3101. Nongovernmental organization participation in the resolution 
              of trade disputes.
Sec. 3102. Export credit guarantee program.
Sec. 3103. Market access program.
Sec. 3104. Export enhancement program.
Sec. 3105. Voluntary certification of child labor status of 
              agricultural imports.
Sec. 3106. Foreign market development cooperator program.
Sec. 3107. Food for Progress Act of 1985.
Sec. 3108. McGovern-Dole International Food for Education and Child 
              Nutrition Program.

                       Subtitle C--Miscellaneous

Sec. 3201. Bill Emerson Humanitarian Trust.
Sec. 3202. Emerging markets and facility guarantee loan program.
Sec. 3203. Biotechnology and agricultural trade program.
Sec. 3204. Technical assistance for the resolution of trade disputes.

                      TITLE IV--NUTRITION PROGRAMS

                 Subtitle A--Food and Nutrition Program

                 PART I--Renaming of Food Stamp Program

Sec. 4001. Renaming of food stamp program.

                  PART II--Improving Program Benefits

Sec. 4101. Exclusion of certain military payments from income.
Sec. 4102. Strengthening the food purchasing power of low-income 
              Americans.
Sec. 4103. Supporting working families with child care expenses.
Sec. 4104. Encouraging retirement and education savings among food 
              stamp recipients.
Sec. 4105. Facilitating simplified reporting.
Sec. 4106. Accrual of benefits.
Sec. 4107. Eligibility for unemployed adults.
Sec. 4108. Transitional benefits option.
Sec. 4109. Minimum benefit.
Sec. 4110. Availability of commodities for the emergency food 
              assistance program.

                 PART III--Improving Program Operations

Sec. 4201. Technical clarification regarding eligibility.
Sec. 4202. Issuance and use of program benefits.
Sec. 4203. Clarification of split issuance.
Sec. 4204. State option for telephonic signature.
Sec. 4205. Privacy protections.
Sec. 4206. Study on comparable access to food and nutrition assistance 
              for Puerto Rico.
Sec. 4207. Civil rights compliance.
Sec. 4208. Employment, training, and job retention.
Sec. 4209. Codification of access rules.
Sec. 4210. Expanding the use of EBT cards at farmers' markets.
Sec. 4211. Review of major changes in program design.
Sec. 4212. Preservation of access and payment accuracy.
Sec. 4213. Nutrition education.

                  PART IV--Improving Program Integrity

Sec. 4301. Major systems failures.
Sec. 4302. Performance standards for biometric identification 
              technology.
Sec. 4303. Civil penalties and disqualification of retail food stores 
              and wholesale food concerns.
Sec. 4304. Funding of employment and training programs.
Sec. 4305. Eligibility disqualification.

                         PART V--Miscellaneous

Sec. 4401. Definition of staple foods.
Sec. 4402. Accessory food items.
Sec. 4403. Pilot projects to evaluate health and nutrition promotion in 
              the food and nutrition program.
Sec. 4404. Bill Emerson National Hunger Fellows and Mickey Leland 
              International Hunger Fellows.
Sec. 4405. Hunger-free communities.
Sec. 4406. State performance on enrolling children receiving program 
              benefits for free school meals.

      Subtitle B--Food Distribution Program on Indian Reservations

Sec. 4501. Assessing the nutritional value of the FDPIR food package.

  Subtitle C--Administration of Emergency Food Assistance Program and 
                  Commodity Supplemental Food Program

Sec. 4601. Emergency food assistance.
Sec. 4602. Commodity supplemental food program.

          Subtitle D--Senior Farmers' Market Nutrition Program

Sec. 4701. Exclusion of benefits in determining eligibility for other 
              programs.
Sec. 4702. Prohibition on collection of sales tax.

    Subtitle E--Reauthorization of Federal Food Assistance Programs

Sec. 4801. Food and nutrition program.
Sec. 4802. Commodity distribution.
Sec. 4803. Nutrition information and awareness pilot program.

                       Subtitle F--Miscellaneous

Sec. 4901. Purchases of locally grown fruits and vegetables.
Sec. 4902. Healthy food education and program replicability.
Sec. 4903. Fresh fruit and vegetable program.
Sec. 4904. Buy American requirements.
Sec. 4905. Minimum purchases of fruits, vegetables, and nuts through 
              section 32 to support domestic nutrition assistance 
              programs.
Sec. 4906. Conforming amendments to renaming of food stamp program.
Sec. 4907. Effective and implementation dates.
Sec. 4908. Application.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Direct loans.
Sec. 5002. Purposes of loans.
Sec. 5003. Soil and water conservation and protection.
Sec. 5004. Limitations on amount of farm ownership loans.
Sec. 5005. Down payment loan program.
Sec. 5006. Beginning farmer or rancher contract land sales program.

                      Subtitle B--Operating Loans

Sec. 5101. Farming experience as eligibility requirement.
Sec. 5102. Limitations on amount of operating loans.
Sec. 5103. Limitation on period borrowers are eligible for guaranteed 
              assistance.

                 Subtitle C--Administrative Provisions

Sec. 5201. Beginning farmer and rancher individual development accounts 
              pilot program.
Sec. 5202. Inventory sales preferences; loan fund set-asides.
Sec. 5203. Transition to private commercial or other sources of credit.
Sec. 5204. Loan authorization levels.
Sec. 5205. Interest rate reduction program.
Sec. 5206. Deferral of shared appreciation recapture amortization.
Sec. 5207. Rural development, housing, and farm loan program 
              activities.

                        Subtitle D--Farm Credit

Sec. 5301. Authority to pass along cost of insurance premiums.
Sec. 5302. Technical correction.
Sec. 5303. Confirmation of Chairman.
Sec. 5304. Premiums.
Sec. 5305. Certification of premiums.
Sec. 5306. Rural utility loans.
Sec. 5307. Equalization of loan-making powers of certain district 
              associations.

                       Subtitle E--Miscellaneous

Sec. 5401. Loans to purchasers of highly fractioned land.
Sec. 5402. Determination on merits of Pigford claims.
Sec. 5403. Sense of the Senate relating to claims brought by socially 
              disadvantaged farmers or ranchers.
Sec. 5404. Eligibility of equine farmers and ranchers for emergency 
              loans.

               TITLE VI--RURAL DEVELOPMENT AND INVESTMENT

        Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. Rural business opportunity grants.
Sec. 6003. Child day care facility grants, loans, and loan guarantees.
Sec. 6004. Rural water and wastewater circuit rider program.

[[Page 29215]]

Sec. 6005. Multijurisdictional regional planning organizations.
Sec. 6006. Rural hospital loans and loan guarantees.
Sec. 6007. Tribal college and university essential community 
              facilities.
Sec. 6008. Community facility loans and grants for freely associated 
              States and outlying areas.
Sec. 6009. Priority for community facility loan and grant projects with 
              high non-Federal share.
Sec. 6010. SEARCH grants.
Sec. 6011. Emergency and imminent community water assistance grant 
              program.
Sec. 6012. Water systems for rural and native villages in Alaska.
Sec. 6013. Grants to develop wells in rural areas.
Sec. 6014. Cooperative equity security guarantee.
Sec. 6015. Rural cooperative development grants.
Sec. 6016. Grants to broadcasting systems.
Sec. 6017. Locally-produced agricultural food products.
Sec. 6018. Center for Healthy Food Access and Enterprise Development.
Sec. 6019. Appropriate technology transfer for rural areas.
Sec. 6020. Rural economic area partnership zones.
Sec. 6021. Definitions.
Sec. 6022. Rural microenterprise assistance program.
Sec. 6023. Artisanal cheese centers.
Sec. 6024. National Rural Development Partnership.
Sec. 6025. Historic barn preservation.
Sec. 6026. Grants for NOAA weather radio transmitters.
Sec. 6027. Grants to train farm workers in new technologies and to 
              train farm workers in specialized skills necessary for 
              higher value crops.
Sec. 6028. Grants for expansion of employment opportunities for 
              individuals with disabilities in rural areas.
Sec. 6029. Delta Regional Authority.
Sec. 6030. Northern Great Plains Regional Authority.
Sec. 6031. Rural business investment program.
Sec. 6032. Rural collaborative investment program.
Sec. 6033. Funding of pending rural development loan and grant 
              applications.

             Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Energy efficiency programs.
Sec. 6102. Loans and grants for electric generation and transmission.
Sec. 6103. Fees for electrification baseload generation loan 
              guarantees.
Sec. 6104. Deferment of payments to allow loans for improved energy 
              efficiency and demand reduction.
Sec. 6105. Rural electrification assistance.
Sec. 6106. Guarantees for bonds and notes issued for electrification or 
              telephone purposes.
Sec. 6107. Expansion of 911 access.
Sec. 6108. Electric loans to rural electric cooperatives.
Sec. 6109. Agency procedures.
Sec. 6110. Access to broadband telecommunications services in rural 
              areas.
Sec. 6111. Substantially underserved trust areas.
Sec. 6112. Study of Federal assistance for broadband infrastructure.

                   Subtitle C--Connect the Nation Act

Sec. 6201. Short title.
Sec. 6202. Grants to encourage State initiatives to improve broadband 
              service.

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

Sec. 6301. Rural electronic commerce extension program.
Sec. 6302. Telemedicine, library connectivity, public television, and 
              distance learning services in rural areas.

                       Subtitle E--Miscellaneous

Sec. 6401. Value-added agricultural product market development grants.
Sec. 6402. Study of railroad issues.
Sec. 6403. Insurance of loans for housing and related facilities for 
              domestic farm labor.

                TITLE VII--RESEARCH AND RELATED MATTERS

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

Sec. 7001. Definitions.
Sec. 7002. National Agricultural Research, Extension, Education, and 
              Economics Advisory Board.
Sec. 7003. Veterinary medicine loan repayment.
Sec. 7004. Eligibility of University of the District of Columbia for 
              grants and fellowships for food and agricultural sciences 
              education.
Sec. 7005. Grants to 1890 Institutions to expand extension capacity.
Sec. 7006. Expansion of food and agricultural sciences awards.
Sec. 7007. Grants and fellowships for food and agricultural sciences 
              education.
Sec. 7008. Grants for research on production and marketing of alcohols 
              and industrial hydrocarbons from agricultural commodities 
              and forest products.
Sec. 7009. Policy research centers.
Sec. 7010. Human nutrition intervention and health promotion research 
              program.
Sec. 7011. Pilot research program to combine medical and agricultural 
              research.
Sec. 7012. Nutrition education program.
Sec. 7013. Continuing animal health and disease research programs.
Sec. 7014. Appropriations for research on national or regional 
              problems.
Sec. 7015. Animal health and disease research program.
Sec. 7016. Authorization level for extension at 1890 land-grant 
              colleges.
Sec. 7017. Authorization level for agricultural research at 1890 land-
              grant colleges.
Sec. 7018. Grants to upgrade agricultural and food sciences facilities 
              at 1890 land-grant colleges, including Tuskegee 
              University.
Sec. 7019. Grants to upgrade agriculture and food sciences facilities 
              at the District of Columbia land grant university.
Sec. 7020. National research and training virtual centers.
Sec. 7021. Matching funds requirement for research and extension 
              activities of 1890 Institutions.
Sec. 7022. Hispanic-serving institutions.
Sec. 7023. Hispanic-serving agricultural colleges and universities.
Sec. 7024. International agricultural research, extension, and 
              education.
Sec. 7025. Competitive grants for international agricultural science 
              and education programs.
Sec. 7026. Indirect costs.
Sec. 7027. Research equipment grants.
Sec. 7028. University research.
Sec. 7029. Extension Service.
Sec. 7030. Supplemental and alternative crops.
Sec. 7031. Aquaculture research facilities.
Sec. 7032. Rangeland research.
Sec. 7033. Special authorization for biosecurity planning and response.
Sec. 7034. Resident instruction and distance education grants program 
              for insular area institutions of higher education.
Sec. 7035. Farm management training and public farm benchmarking 
              database.
Sec. 7036. Tropical and subtropical agricultural research.
Sec. 7037. Regional centers of excellence.
Sec. 7038. National Drought Mitigation Center.
Sec. 7039. Agricultural development in the American-Pacific region.
Sec. 7040. Borlaug international agricultural science and technology 
              fellowship program.
Sec. 7041. New Era Rural Technology Program.
Sec. 7042. Farm and ranch stress assistance network.
Sec. 7043. Rural entrepreneurship and enterprise facilitation program.
Sec. 7044. Seed distribution.
Sec. 7045. Farm and ranch safety.
Sec. 7046. Women and minorities in STEM fields.
Sec. 7047. Natural products research program.
Sec. 7048. International anti-hunger and nutrition program.
Sec. 7049. Consortium for Agricultural and Rural Transportation 
              Research and Education.

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

Sec. 7101. National genetic resources program.
Sec. 7102. High-priority research and extension initiatives.
Sec. 7103. Nutrient management research and extension initiative.
Sec. 7104. Organic agriculture research and extension initiative.
Sec. 7105. Agricultural telecommunications program.
Sec. 7106. Assistive technology program for farmers with disabilities.
Sec. 7107. National Rural Information Center Clearinghouse.

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

Sec. 7201. Initiative for Future Agriculture and Food Systems.
Sec. 7202. Partnerships for high-value agricultural product quality 
              research.
Sec. 7203. Precision agriculture.
Sec. 7204. Biobased products.
Sec. 7205. Thomas Jefferson initiative for crop diversification.
Sec. 7206. Integrated research, education, and extension competitive 
              grants program.
Sec. 7207. Support for research regarding diseases of wheat, triticale, 
              and barley caused by Fusarium graminearum or by Tilletia 
              indica.
Sec. 7208. Bovine Johne's disease control program.

[[Page 29216]]

Sec. 7209. Grants for youth organizations.
Sec. 7210. Agricultural biotechnology research and development for 
              developing countries.
Sec. 7211. Specialty crop research initiative.
Sec. 7212. Office of Pest Management Policy.
Sec. 7213. Food animal residue avoidance database program.

                         Subtitle D--Other Laws

Sec. 7301. Critical Agricultural Materials Act.
Sec. 7302. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7303. Smith-Lever Act.
Sec. 7304. Hatch Act of 1887.
Sec. 7305. Research Facilities Act.
Sec. 7306. National Agricultural Research, Extension, and Teaching 
              Policy Act Amendments of 1985.
Sec. 7307. Competitive, Special, and Facilities Research Grant Act.
Sec. 7308. Education grants to Alaska Native serving institutions and 
              Native Hawaiian serving institutions.
Sec. 7309. Beginning farmer and rancher development program.
Sec. 7310. McIntire-Stennis Cooperative Forestry Act.
Sec. 7311. National Aquaculture Act of 1980.
Sec. 7312. National Arboretum.
Sec. 7313. Eligibility of University of the District of Columbia for 
              certain land-grant university assistance.
Sec. 7314. Exchange or sale authority.
Sec. 7315. Carbon cycle research.

         Subtitle E--National Institute of Food and Agriculture

Sec. 7401. National Institute of Food and Agriculture.
Sec. 7402. Coordination of Agricultural Research Service and National 
              Institute of Food and Agriculture.

                       Subtitle F--Miscellaneous

Sec. 7501. Joint nutrition monitoring and related research activities.
Sec. 7502. Demonstration project authority for temporary positions.
Sec. 7503. Review of plan of work requirements.
Sec. 7504. Study and report on access to nutritious foods.

                          TITLE VIII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Community forest and open space conservation program.
Sec. 8003. Federal, State, and local coordination and cooperation.
Sec. 8004. Comprehensive statewide forest planning.
Sec. 8005. Assistance to the Federated States of Micronesia, the 
              Republic of the Marshall Islands, and the Republic of 
              Palau.

        Subtitle B--Tribal-Forest Service Cooperative Relations

Sec. 8101. Definitions.

     PART I--Collaboration Between Indian Tribes and Forest Service

Sec. 8111. Forest Legacy Program.
Sec. 8112. Forestry and resource management assistance for Indian 
              tribes.

          PART II--Cultural and Heritage Cooperation Authority

Sec. 8121. Purposes.
Sec. 8122. Definitions.
Sec. 8123. Reburial of human remains and cultural items.
Sec. 8124. Temporary closure for traditional and cultural purposes.
Sec. 8125. Forest products for traditional and cultural purposes.
Sec. 8126. Prohibition on disclosure.
Sec. 8127. Severability and savings provisions.

                  Subtitle C--Amendments to Other Laws

Sec. 8201. Renewable resources extension activities.
Sec. 8202. Office of International Forestry.

                            TITLE IX--ENERGY

Sec. 9001. Energy.

                           ``TITLE IX--ENERGY

``Sec. 9001. Definitions.
``Sec. 9002. Biobased markets program.
``Sec. 9003. Biodiesel fuel education.
``Sec. 9004. Biomass crop transition.
``Sec. 9005. Biorefinery and repowering assistance.
``Sec. 9006. Bioenergy program for advanced biofuels.
``Sec. 9007. Rural Energy for America Program.
``Sec. 9008. Biomass Research and Development Act of 2000.
``Sec. 9009. Sun grant program.
``Sec. 9010. Regional biomass crop experiments.
``Sec. 9011. Biochar research, development, and demonstration.
``Sec. 9012. Renewable woody biomass for energy.
``Sec. 9013. Community wood energy program.
``Sec. 9014. Rural energy systems renewal.
``Sec. 9015. Voluntary renewable biomass certification program.
``Sec. 9016. Administration.
``Sec. 9017. Biofuels infrastructure study.
``Sec. 9018. Rural nitrogen fertilizer study.
``Sec. 9019. Study of life-cycle analysis of biofuels.
``Sec. 9020. E-85 fuel program.
``Sec. 9021. Research and development of renewable energy.
``Sec. 9022. Northeast dairy nutrient management and energy development 
              program.
``Sec. 9023. Future farmstead program.

Sec. 9002. Sense of the Senate concerning higher levels of ethanol 
              blended gasoline.
Sec. 9003. Conforming amendments.

     TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS

                         Subtitle A--Marketing

Sec. 10001. Livestock mandatory reporting.
Sec. 10002. Grading and inspection.
Sec. 10003. Country of origin labeling.

                Subtitle B--Agricultural Fair Practices

Sec. 10101. Definitions.
Sec. 10102. Prohibited practices.
Sec. 10103. Enforcement.
Sec. 10104. Rules and regulations.

                   Subtitle C--Packers and Stockyards

Sec. 10201. Special Counsel for Agricultural Competition.
Sec. 10202. Investigation of live poultry dealers.
Sec. 10203. Production contracts.
Sec. 10204. Right to discuss terms of contract.
Sec. 10205. Attorneys' fees.
Sec. 10206. Appointment of outside counsel.
Sec. 10207. Prohibition on packers owning, feeding, or controlling 
              livestock..
Sec. 10208. Regulations.

                      Subtitle D--Related Programs

Sec. 10301. Sense of Congress regarding pseudorabies eradication 
              program.
Sec. 10302. Sense of Congress regarding cattle fever tick eradication 
              program.
Sec. 10303. National Sheep and Goat Industry Improvement Center.
Sec. 10304. Trichinae certification program.
Sec. 10305. Protection of information in the animal identification 
              system.
Sec. 10306. Low pathogenic avian influenza.
Sec. 10307. Study on bioenergy operations.
Sec. 10308. Sense of the Senate on indemnification of livestock 
              producers.

                        TITLE XI--MISCELLANEOUS

                   Subtitle A--Agricultural Security

Sec. 11011. Definitions.

         PART I--General Authority and Interagency Coordination

Sec. 11021. Policy.
Sec. 11022. Interagency coordination.
Sec. 11023. Submission of integrated food defense plan.
Sec. 11024. Transfer of certain agricultural inspection functions of 
              Department.

    PART II--Agricultural Quarantine Inspection Program Improvement

Sec. 11031. Definitions.
Sec. 11032. Joint Task Force.
Sec. 11033. Advisory Board.
Sec. 11034. Reports to Congress.
Sec. 11035. Port risk committees.
Sec. 11036. Emergency response planning at ports of entry.
Sec. 11037. Plant pest identification joint plan.
Sec. 11038. Liaison officer positions.

                        PART III--Miscellaneous

Sec. 11041. Designation and expedited review and approval of qualified 
              agricultural countermeasures.
Sec. 11042. Agricultural disease emergency detection and response.
Sec. 11043. National plant disease recovery system and national 
              veterinary stockpile.
Sec. 11044. Research and development of agricultural countermeasures.
Sec. 11045. Veterinary workforce grant program.
Sec. 11046. Assistance to build local capacity in agricultural 
              biosecurity planning, preparedness, and response.
Sec. 11047. Border inspections of agricultural products.
Sec. 11048. Live virus of foot and mouth disease research.

                       Subtitle B--Other Programs

Sec. 11051. Foreclosure.
Sec. 11052. Outreach and technical assistance for socially 
              disadvantaged farmers and ranchers.
Sec. 11053. Additional contracting authority.
Sec. 11054. Improved program delivery by the Department of Agriculture 
              on Indian reservations.
Sec. 11055. Accurate documentation in the census of agriculture and 
              certain studies.
Sec. 11056. Improved data requirements.
Sec. 11057. Receipt for service or denial of service.
Sec. 11058. National Appeals Division.
Sec. 11059. Farmworker Coordinator.
Sec. 11060. Congressional Bipartisan Food Safety Commission.

[[Page 29217]]

Sec. 11061. Emergency grants to assist low-income migrant and seasonal 
              farmworkers.
Sec. 11062. Grants to reduce production of methamphetamines from 
              anhydrous ammonia.
Sec. 11063. Invasive species management, Hawaii.
Sec. 11064. Oversight and compliance.
Sec. 11065. Report of civil rights complaints, resolutions, and 
              actions.
Sec. 11066. Grants to improve supply, stability, safety, and training 
              of agricultural labor force.
Sec. 11067. Interstate shipment of meat and poultry inspected by 
              Federal and State agencies for certain small 
              establishments.
Sec. 11068. Prevention and investigation of payment and fraud and 
              error.
Sec. 11069. Elimination of statute of limitations applicable to 
              collection of debt by administrative offset.
Sec. 11070. Stored quantities of propane.
Sec. 11071. Closure of certain county FSA offices.

                  TITLE XII--TRADE AND TAX PROVISIONS

Sec. 12001. Short title; etc.

  Subtitle A--Supplemental Agricultural Disaster Assistance From the 
                 Agriculture Disaster Relief Trust Fund

Sec. 12101. Supplemental agriculture disaster assistance.

                  Subtitle B--Conservation Provisions

            PART I--Land and Species Preservation Provisions

Sec. 12201. Conservation reserve tax credit.
Sec. 12202. Exclusion of Conservation Reserve Program payments from 
              SECA tax for certain individuals.
Sec. 12203. Permanent extension of special rule encouraging 
              contributions of capital gain real property for 
              conservation purposes.
Sec. 12204. Tax credit for recovery and restoration of endangered 
              species.
Sec. 12205. Deduction for endangered species recovery expenditures.
Sec. 12206. Exclusion for certain payments and programs relating to 
              fish and wildlife.
Sec. 12207. Credit for easements granted under certain Department of 
              Agriculture conservation programs.

                       PART II--Timber Provisions

Sec. 12211. Forest conservation bonds.
Sec. 12212. Deduction for qualified timber gain.
Sec. 12213. Excise tax not applicable to section 1203 deduction of real 
              estate investment trusts.
Sec. 12214. Timber REIT modernization.
Sec. 12215. Mineral royalty income qualifying income for timber REITs.
Sec. 12216. Modification of taxable REIT subsidiary asset test for 
              timber REITs.
Sec. 12217. Safe harbor for timber property.

                     Subtitle C--Energy Provisions

                     PART I--Electricity Generation

Sec. 12301. Credit for residential and business wind property.
Sec. 12302. Landowner incentive to encourage electric transmission 
              build-out.
Sec. 12303. Exception to reduction of renewable electricity credit.

                         PART II--Alcohol Fuel

Sec. 12311. Expansion of special allowance to cellulosic biomass 
              alcohol fuel plant property.
Sec. 12312. Credit for production of cellulosic biomass alcohol.
Sec. 12313. Extension of small ethanol producer credit.
Sec. 12314. Credit for producers of fossil free alcohol.
Sec. 12315. Modification of alcohol credit.
Sec. 12316. Calculation of volume of alcohol for fuel credits.
Sec. 12317. Ethanol tariff extension.
Sec. 12318. Limitations on, and reductions of, duty drawback on certain 
              imported ethanol.

             PART III--Biodiesel and Renewable Diesel Fuel

Sec. 12321. Extension and modification of credit for biodiesel and 
              renewable diesel used as fuel.
Sec. 12322. Treatment of qualified alcohol fuel mixtures and qualified 
              biodiesel fuel mixtures as taxable fuels.

                       PART IV--Alternative Fuel

Sec. 12331. Extension and modification of alternative fuel credit.
Sec. 12332. Extension of alternative fuel vehicle refueling property 
              credit.

                  Subtitle D--Agricultural Provisions

Sec. 12401. Increase in loan limits on agricultural bonds.
Sec. 12402. Modification of installment sale rules for certain farm 
              property.
Sec. 12403. Allowance of section 1031 treatment for exchanges involving 
              certain mutual ditch, reservoir, or irrigation company 
              stock.
Sec. 12404. Credit to holders of rural renaissance bonds.
Sec. 12405. Agricultural chemicals security credit.
Sec. 12406. Credit for drug safety and effectiveness testing for minor 
              animal species.
Sec. 12407. Certain farming business machinery and equipment treated as 
              5-year property.
Sec. 12408. Expensing of broadband Internet access expenditures.
Sec. 12409. Credit for energy efficient motors.

                     Subtitle E--Revenue Provisions

                PART I--Miscellaneous Revenue Provisions

Sec. 12501. Limitation on farming losses of certain taxpayers.
Sec. 12502. Modification to optional method of computing net earnings 
              from self-employment.
Sec. 12503. Information reporting for Commodity Credit Corporation 
              transactions.
Sec. 12504. Modification of section 1031 treatment for certain real 
              estate.
Sec. 12505. Modification of effective date of leasing provisions of the 
              American Jobs Creation Act of 2004.
Sec. 12506. Time for payment of corporate estimated taxes.
Sec. 12507. Ineligibility of collectibles for nontaxable like kind 
              exchange treatment.
Sec. 12508. Denial of deduction for certain fines, penalties, and other 
              amounts.
Sec. 12509. Increase in information return penalties.

                  PART II--Economic Substance Doctrine

Sec. 12511. Clarification of economic substance doctrine.
Sec. 12512. Penalty for understatements attributable to transactions 
              lacking economic substance, etc.
Sec. 12513. Denial of deduction for interest on underpayments 
              attributable to noneconomic substance transactions.

               Subtitle F--Protection of Social Security

Sec. 12601. Protection of Social Security.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     Agriculture.

              TITLE I--PRODUCER INCOME PROTECTION PROGRAMS

     SEC. 1001. DEFINITIONS.

       In this title (other than part III of subtitle A):
       (1) Average crop revenue payment.--The term ``average crop 
     revenue payment'' means a payment made to producers on a farm 
     under section 1401.
       (2) Base acres.--The term ``base acres'', with respect to a 
     covered commodity on a farm, means the number of acres 
     established under section 1101 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7911) as in effect on the 
     day before the date of enactment of this Act, subject to any 
     adjustment under section 1101 of this Act.
       (3) Counter-cyclical payment.--The term ``counter-cyclical 
     payment'' means a payment made to producers on a farm under 
     section 1104.
       (4) Covered commodity.--The term ``covered commodity'' 
     means wheat, corn, grain sorghum, barley, oats, upland 
     cotton, long grain rice, medium grain rice, pulse crops, 
     soybeans, and other oilseeds.
       (5) Direct payment.--The term ``direct payment'' means a 
     payment made to producers on a farm under section 1103.
       (6) Effective price.--The term ``effective price'', with 
     respect to a covered commodity for a crop year, means the 
     price calculated by the Secretary under section 1104 to 
     determine whether counter-cyclical payments are required to 
     be made for that crop year.
       (7) Extra long staple cotton.--The term ``extra long staple 
     cotton'' means cotton that--
       (A) is produced from pure strain varieties of the 
     Barbadense species or any hybrid of the species, or other 
     similar types of extra long staple cotton, designated by the 
     Secretary, having characteristics needed for various end uses 
     for which United States upland cotton is not suitable and 
     grown in irrigated cotton-growing regions of the United 
     States designated by the Secretary or other areas designated 
     by the Secretary as suitable for the production of the 
     varieties or types; and
       (B) is ginned on a roller-type gin or, if authorized by the 
     Secretary, ginned on another type gin for experimental 
     purposes.
       (8) Loan commodity.--The term ``loan commodity'' means 
     wheat, corn, grain sorghum, barley, oats, upland cotton, 
     extra long staple cotton, long grain rice, medium grain rice, 
     soybeans, other oilseeds, wool, mohair, honey, dry peas, 
     lentils, small chickpeas, and large chickpeas.
       (9) Medium grain rice.--The term ``medium grain rice'' 
     includes short grain rice.
       (10) Other oilseed.--The term ``other oilseed'' means a 
     crop of sunflower seed, rapeseed, canola, safflower, 
     flaxseed, mustard seed, crambe, sesame seed, camelina, or any 
     oilseed designated by the Secretary.
       (11) Payment acres.--The term ``payment acres'' means, in 
     the case of direct payments and counter-cyclical payments, 85 
     percent of the base acres of a covered commodity on a farm on 
     which direct payments or counter-cyclical payments are made.
       (12) Payment yield.--The term ``payment yield'' means the 
     yield established for direct

[[Page 29218]]

     payments and counter-cyclical payments under section 1102 of 
     the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     7912) as in effect on the day before the date of enactment of 
     this Act, or under section 1102 of this Act, for a farm for a 
     covered commodity.
       (13) Producer.--
       (A) In general.--The term ``producer'' means an owner, 
     operator, landlord, tenant, or sharecropper that shares in 
     the risk of producing a crop and is entitled to share in the 
     crop available for marketing from the farm, or would have 
     shared had the crop been produced.
       (B) Hybrid seed.--In determining whether a grower of hybrid 
     seed is a producer, the Secretary shall--
       (i) not take into consideration the existence of a hybrid 
     seed contract; and
       (ii) ensure that program requirements do not adversely 
     affect the ability of the grower to receive a payment under 
     this title.
       (14) Pulse crop.--The term ``pulse crop'' means dry peas, 
     lentils, small chickpeas, and large chickpeas.
       (15) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (16) Target price.--The term ``target price'' means the 
     price per bushel, pound, or hundredweight (or other 
     appropriate unit) of a covered commodity used to determine 
     the payment rate for counter-cyclical payments.
       (17) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

               Subtitle A--Traditional Payments and Loans

         PART I--DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

     SEC. 1101. BASE ACRES AND PAYMENT ACRES FOR A FARM.

       (a) Adjustment of Base Acres.--
       (1) In general.--The Secretary shall provide for an 
     adjustment, as appropriate, in the base acres for covered 
     commodities for a farm whenever the following circumstances 
     occurs:
       (A) A conservation reserve contract entered into under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) with respect to the farm expires or is voluntarily 
     terminated.
       (B) Cropland is released from coverage under a conservation 
     reserve contract by the Secretary.
       (C) The producer has eligible pulse crop or camelina 
     acreage.
       (D) The producer has eligible oilseed acreage as the result 
     of the Secretary designating additional oilseeds.
       (2) Special conservation reserve acreage payment rules.--
     For the crop year in which a base acres adjustment under 
     subparagraph (A) or (B) of paragraph (1) is first made, the 
     owner of the farm shall elect to receive either direct 
     payments and counter-cyclical payments with respect to the 
     acreage added to the farm under this subsection or a prorated 
     payment under the conservation reserve contract, but not 
     both.
       (b) Prevention of Excess Base Acres.--
       (1) Required reduction.--If the sum of the base acres for a 
     farm, together with the acreage described in paragraph (2) 
     exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the base acres for 1 or more covered 
     commodities for the farm or the base acres for peanuts for 
     the farm so that the sum of the base acres and acreage 
     described in paragraph (2) does not exceed the actual 
     cropland acreage of the farm.
       (2) Other acreage.--For purposes of paragraph (1), the 
     Secretary shall include the following:
       (A) Any base acres for peanuts for the farm.
       (B) Any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.).
       (C) Any other acreage on the farm enrolled in a Federal 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       (D) Any eligible pulse crop or camelina acreage, which 
     shall be determined in the same manner as eligible oilseed 
     acreage under section 1101(a)(2) of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
       (E) If the Secretary designates additional oilseeds, any 
     eligible oilseed acreage, which shall be determined in the 
     same manner as eligible oilseed acreage under section 
     1101(a)(2) of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 7911(a)(2)).
       (3) Selection of acres.--The Secretary shall give the owner 
     of the farm the opportunity to select the base acres for a 
     covered commodity or the base acres for peanuts for the farm 
     against which the reduction required by paragraph (1) will be 
     made.
       (4) Exception for double-cropped acreage.--In applying 
     paragraph (1), the Secretary shall make an exception in the 
     case of double cropping, as determined by the Secretary.
       (5) Coordinated application of requirements.--The Secretary 
     shall take into account section 1302(b) when applying the 
     requirements of this subsection.
       (c) Permanent Reduction in Base Acres.--
       (1) In general.--The owner of a farm may reduce, at any 
     time, the base acres for any covered commodity for the farm.
       (2) Administration.--The reduction shall be permanent and 
     made in the manner prescribed by the Secretary.

     SEC. 1102. PAYMENT YIELDS.

       (a) Establishment and Purpose.--For the purpose of making 
     direct payments and counter-cyclical payments under this 
     subtitle, the Secretary shall provide for the establishment 
     of a yield for each farm for any designated oilseed, 
     camelina, or eligible pulse crop for which a payment yield 
     was not established under section 1102 of the Farm Security 
     and Rural Investment Act of 2002 (7 U.S.C. 7912) in 
     accordance with this section.
       (b) Payment Yields for Designated Oilseeds, Camelina, and 
     Eligible Pulse Crops.--
       (1) Determination of average yield.--In the case of 
     designated oilseeds, camelina, and eligible pulse crops, the 
     Secretary shall determine the average yield per planted acre 
     for the designated oilseed, camelina, or pulse crop on a farm 
     for the 1998 through 2001 crop years, excluding any crop year 
     in which the acreage planted to the designated oilseed, 
     camelina, or pulse crop was zero.
       (2) Adjustment for payment yield.--
       (A) In general.--The payment yield for a farm for a 
     designated oilseed, camelina, or eligible pulse crop shall be 
     equal to the product of the following:
       (i) The average yield for the designated oilseed, camelina, 
     or pulse crop determined under paragraph (1).
       (ii) The ratio resulting from dividing the national average 
     yield for the designated oilseed, camelina, or pulse crop for 
     the 1981 through 1985 crops by the national average yield for 
     the designated oilseed, camelina, or pulse crop for the 1998 
     through 2001 crops.
       (B) No national average yield information available.--To 
     the extent that national average yield information for a 
     designated oilseed, camelina, or pulse crop is not available, 
     the Secretary shall use such information as the Secretary 
     determines to be fair and equitable to establish a national 
     average yield under this section.
       (3) Use of partial county average yield.--If the yield per 
     planted acre for a crop of a designated oilseed, camelina, or 
     pulse crop for a farm for any of the 1998 through 2001 crop 
     years was less than 75 percent of the county yield for that 
     designated oilseed, camelina, or pulse crop, the Secretary 
     shall assign a yield for that crop year equal to 75 percent 
     of the county yield for the purpose of determining the 
     average under paragraph (1).
       (4) No historic yield data available.--In the case of 
     establishing yields for designated oilseeds, camelina, and 
     eligible pulse crops, if historic yield data is not 
     available, the Secretary shall use the ratio for dry peas 
     calculated under paragraph (2)(A)(ii) in determining the 
     yields for designated oilseeds, camelina, and eligible pulse 
     crops, as determined to be fair and equitable by the 
     Secretary.

     SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

       (a) Payment Required.--Except as provided in section 1401, 
     for each of the 2008 through 2012 crop years of each covered 
     commodity (other than pulse crops), the Secretary shall make 
     direct payments to producers on farms for which payment 
     yields and base acres are established.
       (b) Payment Rate.--The payment rates used to make direct 
     payments with respect to covered commodities for a crop year 
     are as follows:
       (1) Wheat, $0.52 per bushel.
       (2) Corn, $0.28 per bushel.
       (3) Grain sorghum, $0.35 per bushel.
       (4) Barley, $0.24 per bushel.
       (5) Oats, $0.024 per bushel.
       (6) Upland cotton, $0.0667 per pound.
       (7) Long grain rice, $2.35 per hundredweight.
       (8) Medium grain rice, $2.35 per hundredweight.
       (9) Soybeans, $0.44 per bushel.
       (10) Other oilseeds, $0.80 per hundredweight.
       (c) Payment Amount.--The amount of the direct payment to be 
     paid to the producers on a farm for a covered commodity for a 
     crop year shall be equal to the product of the following:
       (1) The payment rate specified in subsection (b).
       (2) The payment acres of the covered commodity on the farm.
       (3) The payment yield for the covered commodity for the 
     farm.
       (d) Time for Payment.--
       (1) In general.--In the case of each of the 2008 through 
     2012 crop years, the Secretary shall make direct payments 
     under this section not earlier than October 1 of the calendar 
     year in which the crop of the covered commodity is harvested.
       (2) Advance payments.--
       (A) Option.--At the option of the producers on a farm, the 
     Secretary shall pay in advance up to 22 percent of the direct 
     payment for a covered commodity for any of the 2008 through 
     2011 crop years to the producers on a farm.
       (B) Month.--

[[Page 29219]]

       (i) Selection.--Subject to clauses (ii) and (iii), the 
     producers on a farm shall select the month during which the 
     advance payment for a crop year will be made.
       (ii) Options.--The month selected may be any month during 
     the period--

       (I) beginning on December 1 of the calendar year before the 
     calendar year in which the crop of the covered commodity is 
     harvested; and
       (II) ending during the month within which the direct 
     payment would otherwise be made.

       (iii) Change.--The producers on a farm may change the 
     selected month for a subsequent advance payment by providing 
     advance notice to the Secretary.
       (3) Repayment of advance payments.--If a producer on a farm 
     that receives an advance direct payment for a crop year 
     ceases to be a producer on that farm, or the extent to which 
     the producer shares in the risk of producing a crop changes, 
     before the date the remainder of the direct payment is made, 
     the producer shall be responsible for repaying the Secretary 
     the applicable amount of the advance payment, as determined 
     by the Secretary.

     SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

       (a) Payment Required.--Subject to sections 1107 and 1401, 
     for each of the 2008 through 2012 crop years for each covered 
     commodity, the Secretary shall make counter-cyclical payments 
     to producers on farms for which payment yields and base acres 
     are established with respect to the covered commodity if the 
     Secretary determines that the effective price for the covered 
     commodity is less than the target price for the covered 
     commodity.
       (b) Effective Price.--
       (1) Covered commodities other than rice.--Except as 
     provided in paragraph (2), for purposes of subsection (a), 
     the effective price for a covered commodity is equal to the 
     sum of the following:
       (A) The higher of the following:
       (i) The national average market price received by producers 
     during the 12-month marketing year for the covered commodity, 
     as determined by the Secretary.
       (ii) The national average loan rate for a marketing 
     assistance loan for the covered commodity in effect for the 
     applicable period under part II.
       (B) The payment rate in effect for the covered commodity 
     under section 1103 for the purpose of making direct payments 
     with respect to the covered commodity.
       (2)  Rice.--In the case of long grain rice and medium grain 
     rice, for purposes of subsection (a), the effective price for 
     each type or class of rice is equal to the sum of the 
     following:
       (A) The higher of the following:
       (i) The national average market price received by producers 
     during the 12-month marketing year for the type or class of 
     rice, as determined by the Secretary.
       (ii) The national average loan rate for a marketing 
     assistance loan for the type or class of rice in effect for 
     the applicable period under part II.
       (B) The payment rate in effect for the type or class of 
     rice under section 1103 for the purpose of making direct 
     payments with respect to the type or class of rice.
       (c) Target Price.--
       (1) In general.--For purposes of each of the 2008 through 
     2012 crop years, the target prices for covered commodities 
     shall be as follows:
       (A) Wheat, $4.20 per bushel.
       (B) Corn, $2.63 per bushel.
       (C) Grain sorghum, $2.63 per bushel.
       (D) Barley, $2.63 per bushel.
       (E) Oats, $1.83 per bushel.
       (F) Upland cotton, $0.7225 per pound.
       (G) Long grain rice, $10.50 per hundredweight.
       (H) Medium grain rice, $10.50 per hundredweight.
       (I) Soybeans, $6.00 per bushel.
       (J) Other oilseeds, $12.74 per hundredweight.
       (K) Dry peas, $8.33 per hundredweight.
       (L) Lentils, $12.82 per hundredweight.
       (M) Small chickpeas, $10.36 per hundredweight.
       (N) Large chickpeas, $12.82 per hundredweight.
       (2) Separate target price.--The Secretary may not establish 
     a target price for a covered commodity that is different from 
     the target price specified in paragraph (1) for the covered 
     commodity.
       (d) Payment Rate.--The payment rate used to make counter-
     cyclical payments with respect to a covered commodity for a 
     crop year shall be equal to the difference between--
       (1) the target price for the covered commodity; and
       (2) the effective price determined under subsection (b) for 
     the covered commodity.
       (e) Payment Amount.--If counter-cyclical payments are 
     required to be paid for any of the 2008 through 2012 crop 
     years of a covered commodity, the amount of the counter-
     cyclical payment to be paid to the producers on a farm for 
     that crop year shall be equal to the product of the 
     following:
       (1) The payment rate specified in subsection (d).
       (2) The payment acres of the covered commodity on the farm.
       (3) The payment yield for the covered commodity for the 
     farm.
       (f) Time for Payments.--
       (1) General rule.--If the Secretary determines under 
     subsection (a) that counter-cyclical payments are required to 
     be made under this section for the crop of a covered 
     commodity, the Secretary shall make the counter-cyclical 
     payments for the crop beginning October 1, or as soon as 
     practicable thereafter, after the end of the applicable 
     marketing year for the covered commodity.
       (2) Availability of partial payments.--
       (A) In general.--If, before the end of the 12-month 
     marketing year for a covered commodity, the Secretary 
     estimates that counter-cyclical payments will be required for 
     the crop of the covered commodity, the Secretary shall give 
     producers on a farm the option to receive partial payments of 
     the counter-cyclical payment projected to be made for that 
     crop of the covered commodity.
       (B) Election.--
       (i) In general.--The Secretary shall allow producers on a 
     farm to make an election to receive partial payments for a 
     covered commodity under subparagraph (A) at any time but not 
     later than 30 days prior to the end of the marketing year for 
     that covered commodity.
       (ii) Date of issuance.--The Secretary shall issue the 
     partial payment after the date of an announcement by the 
     Secretary but not later than 30 days prior to the end of the 
     marketing year.
       (3) Time for partial payments.--When the Secretary makes 
     partial payments for a covered commodity for any of the 2008 
     through 2010 crop years--
       (A) the first partial payment shall be made after 
     completion of the first 180 days of the marketing year for 
     the covered commodity; and
       (B) the final partial payment shall be made beginning 
     October 1, or as soon as practicable thereafter, after the 
     end of the applicable marketing year for the covered 
     commodity.
       (4) Amount of partial payment.--
       (A) First partial payment.--For each of the 2008 through 
     2010 crops of a covered commodity, the first partial payment 
     under paragraph (3) to the producers on a farm may not exceed 
     40 percent of the projected counter-cyclical payment for the 
     covered commodity for the crop year, as determined by the 
     Secretary.
       (B) Final payment.--The final payment for a covered 
     commodity for a crop year shall be equal to the difference 
     between--
       (i) the actual counter-cyclical payment to be made to the 
     producers for the covered commodity for that crop year; and
       (ii) the amount of the partial payment made to the 
     producers under subparagraph (A).
       (5) Repayment.--The producers on a farm that receive a 
     partial payment under this subsection for a crop year shall 
     repay to the Secretary the amount, if any, by which the total 
     of the partial payments exceed the actual counter-cyclical 
     payment to be made for the covered commodity for that crop 
     year.

     SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF 
                   PROVISION OF DIRECT PAYMENTS AND COUNTER-
                   CYCLICAL PAYMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the producers on a farm may 
     receive direct payments or counter-cyclical payments with 
     respect to the farm, the producers shall agree, during the 
     crop year for which the payments are made and in exchange for 
     the payments--
       (A) to comply with applicable conservation requirements 
     under subtitle B of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland protection 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       (C) to comply with the planting flexibility requirements of 
     section 1106;
       (D) to use the land on the farm, in a quantity equal to the 
     attributable base acres for the farm and any base acres for 
     peanuts for the farm under part III, for an agricultural or 
     conserving use, and not for a nonagricultural commercial, 
     industrial, or residential use (including land subdivided and 
     developed into residential units or other nonfarming uses, or 
     that is otherwise no longer intended to be used in 
     conjunction with a farming operation), as determined by the 
     Secretary; and
       (E) to effectively control noxious weeds and otherwise 
     maintain the land in accordance with sound agricultural 
     practices, as determined by the Secretary, if the 
     agricultural or conserving use involves the noncultivation of 
     any portion of the land referred to in subparagraph (D).
       (2) Compliance.--The Secretary may issue such rules as the 
     Secretary considers necessary to ensure producer compliance 
     with the requirements of paragraph (1).
       (3) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of this 
     subsection if the modifications are consistent with the 
     objectives of this subsection, as determined by the 
     Secretary.
       (b) Transfer or Change of Interest in Farm.--

[[Page 29220]]

       (1) Termination.--
       (A) In general.--Except as provided in paragraph (2), a 
     transfer of (or change in) the interest of the producers on a 
     farm in base acres for which direct payments or counter-
     cyclical payments are made shall result in the termination of 
     the payments with respect to the base acres, unless the 
     transferee or owner of the acreage agrees to assume all 
     obligations under subsection (a).
       (B) Effective date.--The termination shall take effect on 
     the date determined by the Secretary.
       (2) Exception.--If a producer entitled to a direct payment 
     or counter-cyclical payment dies, becomes incompetent, or is 
     otherwise unable to receive the payment, the Secretary shall 
     make the payment, in accordance with rules issued by the 
     Secretary.
       (c) Acreage Reports.--
       (1) In general.--As a condition on the receipt of any 
     benefits under this part or part II, the Secretary shall 
     require producers on a farm to submit to the Secretary annual 
     acreage reports with respect to all cropland on the farm.
       (2) Penalties.--No penalty with respect to benefits under 
     this part or part II shall be assessed against the producers 
     on a farm for an inaccurate acreage report unless the 
     producers on the farm knowingly and willfully falsified the 
     acreage report.
       (d) Tenants and Sharecroppers.--In carrying out this 
     subtitle, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       (e) Sharing of Payments.--The Secretary shall provide for 
     the sharing of direct payments and counter-cyclical payments 
     among the producers on a farm on a fair and equitable basis.

     SEC. 1106. PLANTING FLEXIBILITY.

       (a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be planted on base acres on a farm.
       (b) Limitations Regarding Certain Commodities.--
       (1) General limitation.--The planting of an agricultural 
     commodity specified in paragraph (3) shall be prohibited on 
     base acres unless the commodity, if planted, is destroyed 
     before harvest.
       (2) Treatment of trees and other perennials.--The planting 
     of an agricultural commodity specified in paragraph (3) that 
     is produced on a tree or other perennial plant shall be 
     prohibited on base acres.
       (3) Covered agricultural commodities.--Paragraphs (1) and 
     (2) apply to the following agricultural commodities:
       (A) Fruits.
       (B) Vegetables (other than mung beans and pulse crops).
       (C) Wild rice.
       (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) 
     shall not limit the planting of an agricultural commodity 
     specified in paragraph (3) of that subsection--
       (1) in any region in which there is a history of double-
     cropping of covered commodities with agricultural commodities 
     specified in subsection (b)(3), as determined by the 
     Secretary, in which case the double-cropping shall be 
     permitted;
       (2) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in subsection 
     (b)(3) on base acres, except that direct payments and 
     counter-cyclical payments shall be reduced by an acre for 
     each acre planted to such an agricultural commodity; or
       (3) by the producers on a farm that the Secretary 
     determines has an established planting history of a specific 
     agricultural commodity specified in subsection (b)(3), except 
     that--
       (A) the quantity planted may not exceed the average annual 
     planting history of such agricultural commodity by the 
     producers on the farm in the 1991 through 1995 or 1998 
     through 2001 crop years (excluding any crop year in which no 
     plantings were made), as determined by the Secretary; and
       (B) direct payments and counter-cyclical payments shall be 
     reduced by an acre for each acre planted to such agricultural 
     commodity.
       (d) Planting Transferability Pilot Project.--
       (1) Pilot project authorized.--In addition to the 
     exceptions provided in subsection (c), the Secretary shall 
     carry out a pilot project in the State of Indiana under which 
     paragraphs (1) and (2) of subsection (b) shall not limit the 
     planting of tomatoes grown for processing on up to 10,000 
     base acres during each of the 2008 through 2009 crop years.
       (2) Contract and management requirements.--To be eligible 
     for selection to participate in the pilot project, the 
     producers on a farm shall--
       (A) have entered into a contract to produce tomatoes for 
     processing; and
       (B) agree to produce the tomatoes as part of a program of 
     crop rotation on the farm to achieve agronomic and pest and 
     disease management benefits.
       (3) Temporary reduction in base acres.--The base acres on a 
     farm participating in the pilot program for a crop year shall 
     be reduced by an acre for each acre planted to tomatoes under 
     the pilot program.
       (4) Recalculation of base acres.--
       (A) In general.--If the Secretary recalculates base acres 
     for a farm while the farm is included in the pilot project, 
     the planting and production of tomatoes on base acres for 
     which a temporary reduction was made under this section shall 
     be considered to be the same as the planting and production 
     of a covered commodity.
       (B) Prohibition.--Nothing in this paragraph provides 
     authority for the Secretary to recalculate base acres for a 
     farm.

     SEC. 1107. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.

       (a) Calculation Method.--Subject to subsections (b) and 
     (c), for the purposes of determining the amount of the 
     counter-cyclical payments to be paid to the producers on a 
     farm for long grain rice and medium grain rice under section 
     1104, the base acres of rice on the farm shall be apportioned 
     using the 4-year average of the percentages of acreage 
     planted in the applicable State to long grain rice and medium 
     grain rice during the 2003 through 2006 crop years, as 
     determined by the Secretary.
       (b) Producer Election.--As an alternative to the 
     calculation method described in subsection (a), the Secretary 
     shall provide producers on a farm the opportunity to elect to 
     apportion rice base acres on the farm using the 4-year 
     average of--
       (1) the percentages of acreage planted on the farm to long 
     grain rice and medium grain rice during the 2003 through 2006 
     crop years;
       (2) the percentages of any acreage on the farm that the 
     producers were prevented from planting to long grain rice and 
     medium grain rice during the 2003 through 2006 crop years 
     because of drought, flood, other natural disaster, or other 
     condition beyond the control of the producers, as determined 
     by the Secretary; and
       (3) in the case of a crop year for which a producer on a 
     farm elected not to plant to long grain and medium grain rice 
     during the 2003 through 2006 crop years, the percentages of 
     acreage planted in the applicable State to long grain rice 
     and medium grain rice, as determined by the Secretary.
       (c) Limitation.--In carrying out this section, the 
     Secretary shall use the same total base acres, payment acres, 
     and payment yields established with respect to rice under 
     sections 1101 and 1102 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7911, 7912), as in effect on 
     the day before the date of enactment of this Act, subject to 
     any adjustment under section 1101 of this Act.

     SEC. 1108. PERIOD OF EFFECTIVENESS.

       This part shall be effective beginning with the 2008 crop 
     year of each covered commodity through the 2012 crop year.

     PART II--MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
                   PAYMENTS

     SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 
                   LOANS FOR LOAN COMMODITIES.

       (a) Nonrecourse Loans Available.--
       (1) Availability.--Except as provided in section 1401, for 
     each of the 2008 through 2012 crops of each loan commodity, 
     the Secretary shall make available to producers on a farm 
     nonrecourse marketing assistance loans for loan commodities 
     produced on the farm.
       (2) Terms and conditions.--The marketing assistance loans 
     shall be made under terms and conditions that are prescribed 
     by the Secretary and at the loan rate established under 
     section 1202 for the loan commodity.
         (b) Eligible Production.--The producers on a farm shall 
     be eligible for a marketing assistance loan under subsection 
     (a) for any quantity of a loan commodity produced on the 
     farm.
         (c) Treatment of Certain Commingled Commodities.--In 
     carrying out this part, the Secretary shall make loans to 
     producers on a farm that would be eligible to obtain a 
     marketing assistance loan, but for the fact the loan 
     commodity owned by the producers on the farm is commingled 
     with loan commodities of other producers in facilities 
     unlicensed for the storage of agricultural commodities by the 
     Secretary or a State licensing authority, if the producers 
     obtaining the loan agree to immediately redeem the loan 
     collateral in accordance with section 166 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7286).
         (d) Compliance With Conservation and Wetlands 
     Requirements.--As a condition of the receipt of a marketing 
     assistance loan under subsection (a), the producer shall 
     comply with applicable conservation requirements under 
     subtitle B of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3811 et seq.) and applicable wetland protection 
     requirements under subtitle C of title XII of the Act (16 
     U.S.C. 3821 et seq.) during the term of the loan.

     SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE 
                   LOANS.

         (a) Loan Rates.--For each of the 2008 through 2012 crop 
     years, the loan rate for a marketing assistance loan under 
     section 1201 for a loan commodity shall be equal to the 
     following:
       (1) In the case of wheat, $2.94 per bushel.
       (2) In the case of corn, $1.95 per bushel.
       (3) In the case of grain sorghum, $1.95 per bushel.
       (4) In the case of barley, $1.95 per bushel.
       (5) In the case of oats, $1.39 per bushel.
       (6) In the case of the base quality of upland cotton, $0.52 
     per pound.
       (7) In the case of extra long staple cotton, $0.7977 per 
     pound.
       (8) In the case of long grain rice, $6.50 per 
     hundredweight.

[[Page 29221]]

       (9) in the case of medium grain rice, $6.50 per 
     hundredweight.
       (10) In the case of soybeans, $5.00 per bushel.
       (11) In the case of other oilseeds, $10.09 per 
     hundredweight.
       (12) In the case of dry peas, $5.40 per hundredweight.
       (13) In the case of lentils, $11.28 per hundredweight.
       (14) In the case of small chickpeas, $7.43 per 
     hundredweight.
       (15) In the case of large chickpeas, $11.28 per 
     hundredweight.
       (16) In the case of graded wool, $1.20 per pound.
       (17) In the case of nongraded wool, $0.40 per pound.
       (18) In the case of mohair, $4.20 per pound.
       (19) In the case of honey, $0.72 per pound.
       (b) Single County Loan Rate for Other Oilseeds.--The 
     Secretary shall establish a single loan rate in each county 
     for each kind of other oilseeds described in subsection 
     (a)(10).
       (c) Grading Basis for Marketing Loans for Pulse Crops.--The 
     loan rate for pulse crops--
       (1) shall be based on a grade not less than grade number 2 
     or other grade factors, including the fair and average 
     quality of the 1 or more crops in any year; and
       (2) may be adjusted by the Secretary to reflect the normal 
     market discounts for grades less than number 2 quality.
       (d) Corn and Grain Sorghum.--The Secretary shall--
       (1) establish a single county loan rate for corn and grain 
     sorghum in each county;
       (2) establish a single national average loan rate for corn 
     and grain sorghum; and
       (3) determine each county loan rate and the national 
     average loan rate for corn and grain sorghum, and any and all 
     other program loan rates applicable to corn and grain 
     sorghum, from a data set that includes prices for both corn 
     and grain sorghum.

     SEC. 1203. TERM OF LOANS.

       (a) Term of Loan.--In the case of each loan commodity, a 
     marketing assistance loan under section 1201 shall have a 
     term of 9 months beginning on the first day of the first 
     month after the month in which the loan is made.
       (b) Extensions Prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for any loan 
     commodity.

     SEC. 1204. REPAYMENT OF LOANS.

       (a) General Rule.--The Secretary shall permit the producers 
     on a farm to repay a marketing assistance loan under section 
     1201 for a loan commodity (other than upland cotton, long 
     grain rice, medium grain rice, extra long staple cotton, and 
     confectionery and each other kind of sunflower seed (other 
     than oil sunflower seed)) at a rate that is the lesser of--
       (1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)); or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of the commodity by 
     the Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing the commodity;
       (D) allow the commodity produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally; and
       (E) minimize discrepancies in marketing loan benefits 
     across State boundaries and across county boundaries.
       (b) Repayment Rates for Upland Cotton, Long Grain Rice, and 
     Medium Grain Rice.--The Secretary shall permit producers to 
     repay a marketing assistance loan under section 1201 for 
     upland cotton, long grain rice, and medium grain rice at a 
     rate that is the lesser of--
       (1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)); or
       (2) the prevailing world market price for the commodity 
     (adjusted to United States quality and location), as 
     determined by the Secretary.
       (c) Repayment Rates for Extra Long Staple Cotton.--
     Repayment of a marketing assistance loan for extra long 
     staple cotton shall be at the loan rate established for the 
     commodity under section 1202, plus interest (determined in 
     accordance with section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
       (d) Prevailing World Market Price.--For purposes of this 
     section and section 1207, the Secretary shall prescribe by 
     regulation--
       (1) a formula to determine--
       (A) the prevailing world market price for upland cotton 
     (adjusted to United States quality and location); and
       (B) the prevailing world market price for long grain rice 
     and medium grain rice, adjusted to United States quality and 
     location; and
       (2) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for upland 
     cotton, long grain rice, and medium grain rice.
       (e) Adjustment of Prevailing World Market Price for Upland 
     Cotton.----
       (1) In general.--During the period beginning on the date of 
     enactment of this Act and ending July 31, 2013, the Secretary 
     may further adjust the prevailing world market price for 
     upland cotton (adjusted to United States quality and 
     location) if the Secretary determines the adjustment is 
     necessary--
       (A) to minimize potential loan forfeitures;
       (B) to minimize the accumulation of stocks of upland cotton 
     by the Federal Government;
       (C) to allow upland cotton produced in the United States to 
     be marketed freely and competitively, both domestically and 
     internationally;
       (D) to ensure that upland cotton produced in the United 
     States is competitive in world markets; and
       (E) to ensure an appropriate transition between current-
     crop and forward-crop price quotations, except that the 
     Secretary may use forward-crop price quotations prior to July 
     31 of a marketing year only if--
       (i) there are insufficient current-crop price quotations; 
     and
       (ii) the forward-crop price quotation is the lowest such 
     quotation available.
       (2) Guidelines for additional adjustments.--In making 
     adjustments under this subsection, the Secretary shall 
     establish a mechanism for determining and announcing the 
     adjustments in order to avoid undue disruption in the United 
     States market.
       (f) Repayment Rates for Confectionery and Other Kinds of 
     Sunflower Seeds.--The Secretary shall permit the producers on 
     a farm to repay a marketing assistance loan under section 
     1201 for confectionery and each other kind of sunflower seed 
     (other than oil sunflower seed) at a rate that is the lesser 
     of--
       (1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)); or
       (2) the repayment rate established for oil sunflower seed.
       (g) Quality Grades for Pulse Crops.--The loan repayment 
     rate for pulse crops shall be based on the quality grades for 
     the applicable commodity specified in section 1202(c).
       (h) Payment of Cotton Storage Costs.--Effective for the 
     2008 through 2012 crop years, the Secretary shall use the 
     funds of the Commodity Credit Corporation to provide cotton 
     storage payments in the same manner, and at the same rates, 
     as the Secretary provided those payments for the 2006 crop of 
     cotton.

     SEC. 1205. LOAN DEFICIENCY PAYMENTS.

       (a) Availability of Loan Deficiency Payments.--
       (1) In general.--Except as provided in subsection (d) and 
     section 1401, the Secretary may make loan deficiency payments 
     available to producers on a farm that, although eligible to 
     obtain a marketing assistance loan under section 1201 with 
     respect to a loan commodity, agree to forgo obtaining the 
     loan for the commodity in return for loan deficiency payments 
     under this section.
       (2) Unshorn pelts, hay, and silage.--
       (A) Marketing assistance loans.--Subject to subparagraph 
     (B), nongraded wool in the form of unshorn pelts and hay and 
     silage derived from a loan commodity are not eligible for a 
     marketing assistance loan under section 1201.
       (B) Loan deficiency payment.--Effective for the 2008 
     through 2012 crop years, the Secretary may make loan 
     deficiency payments available under this section to producers 
     on a farm that produce unshorn pelts or hay and silage 
     derived from a loan commodity.
       (b) Computation.--A loan deficiency payment for a loan 
     commodity or commodity referred to in subsection (a)(2) shall 
     be computed by multiplying--
       (1) the payment rate determined under subsection (c) for 
     the commodity; by
       (2) the quantity of the commodity produced by the eligible 
     producers, excluding any quantity for which the producers 
     obtain a marketing assistance loan under section 1201.
       (c) Payment Rate.--
       (1) In general.--In the case of a loan commodity, the 
     payment rate shall be the amount by which--
       (A) the loan rate established under section 1202 for the 
     loan commodity; exceeds
       (B) the rate at which a marketing assistance loan for the 
     loan commodity may be repaid under section 1204.
       (2) Unshorn pelts.--In the case of unshorn pelts, the 
     payment rate shall be the amount by which--
       (A) the loan rate established under section 1202 for 
     ungraded wool; exceeds
       (B) the rate at which a marketing assistance loan for 
     ungraded wool may be repaid under section 1204.
       (3) Hay and silage.--In the case of hay or silage derived 
     from a loan commodity, the payment rate shall be the amount 
     by which--
       (A) the loan rate established under section 1202 for the 
     loan commodity from which the hay or silage is derived; 
     exceeds
       (B) the rate at which a marketing assistance loan for the 
     loan commodity may be repaid under section 1204.
       (d) Exception for Extra Long Staple Cotton.--This section 
     shall not apply with respect to extra long staple cotton.

[[Page 29222]]

       (e) Effective Date for Payment Rate Determination.--
       (1) Loss of beneficial interest.--The Secretary shall 
     determine the amount of the loan deficiency payment to be 
     made under this section to the producers on a farm with 
     respect to a quantity of a loan commodity or commodity 
     referred to in subsection (a)(2) using the payment rate in 
     effect under subsection (c) as soon as practicable after the 
     date on which the producers on the farm lose beneficial 
     interest.
       (2) On-farm consumption.--For the quantity of a loan 
     commodity or commodity referred to in subsection (a)(2) 
     consumed on a farm, the Secretary shall provide procedures to 
     determine a date on which the producers on the farm lose 
     beneficial interest.
       (3) Applicability.--This subsection does not apply for the 
     2009 through 2012 crop years.

     SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR 
                   GRAZED ACREAGE.

       (a) Eligible Producers.--
       (1) In general.--Except as provided in section 1401, 
     effective for the 2008 through 2012 crop years, in the case 
     of a producer that would be eligible for a loan deficiency 
     payment under section 1205 for wheat, barley, or oats, but 
     that elects to use acreage planted to the wheat, barley, or 
     oats for the grazing of livestock, the Secretary shall make a 
     payment to the producer under this section if the producer 
     enters into an agreement with the Secretary to forgo any 
     other harvesting of the wheat, barley, or oats on that 
     acreage.
       (2) Grazing of triticale acreage.--Effective for the 2008 
     through 2012 crop years, with respect to a producer on a farm 
     that uses acreage planted to triticale for the grazing of 
     livestock, the Secretary shall make a payment to the producer 
     under this section if the producer enters into an agreement 
     with the Secretary to forgo any other harvesting of triticale 
     on that acreage.
       (b) Payment Amount.--
       (1) In general.--The amount of a payment made under this 
     section to a producer on a farm described in subsection 
     (a)(1) shall be equal to the amount determined by 
     multiplying--
       (A) the loan deficiency payment rate determined under 
     section 1205(c) in effect, as of the date of the agreement, 
     for the county in which the farm is located; by
       (B) the payment quantity determined by multiplying--
       (i) the quantity of the grazed acreage on the farm with 
     respect to which the producer elects to forgo harvesting of 
     wheat, barley, or oats; and
       (ii) the payment yield in effect for the calculation of 
     direct payments under part I with respect to that loan 
     commodity on the farm or, in the case of a farm without a 
     payment yield for that loan commodity, an appropriate yield 
     established by the Secretary in a manner consistent with 
     section 1102(c).
       (2) Grazing of triticale acreage.--The amount of a payment 
     made under this section to a producer on a farm described in 
     subsection (a)(2) shall be equal to the amount determined by 
     multiplying--
       (A) the loan deficiency payment rate determined under 
     section 1205(c) in effect for wheat, as of the date of the 
     agreement, for the county in which the farm is located; by
       (B) the payment quantity determined by multiplying--
       (i) the quantity of the grazed acreage on the farm with 
     respect to which the producer elects to forgo harvesting of 
     triticale; and
       (ii) the payment yield in effect for the calculation of 
     direct payments under part I with respect to wheat on the 
     farm or, in the case of a farm without a payment yield for 
     wheat, an appropriate yield established by the Secretary in a 
     manner consistent with section 1102(c).
       (c) Time, Manner, and Availability of Payment.--
       (1) Time and manner.--A payment under this section shall be 
     made at the same time and in the same manner as loan 
     deficiency payments are made under section 1205.
       (2) Availability.--
       (A) In general.--The Secretary shall establish an 
     availability period for the payments authorized by this 
     section.
       (B) Certain commodities.--In the case of wheat, barley, and 
     oats, the availability period shall be consistent with the 
     availability period for the commodity established by the 
     Secretary for marketing assistance loans authorized by this 
     part.
       (d) Prohibition on Crop Insurance Indemnity or Noninsured 
     Crop Assistance.--A 2008 through 2012 crop of wheat, barley, 
     oats, or triticale planted on acreage that a producer elects, 
     in the agreement required by subsection (a), to use for the 
     grazing of livestock in lieu of any other harvesting of the 
     crop shall not be eligible for an indemnity under a policy or 
     plan of insurance authorized under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance 
     under section 196 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7333).

     SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
                   COTTON.

       (a) Special Import Quota.--
       (1) Definition of special import quota.--In this 
     subsection, the term ``special import quota'' means a 
     quantity of imports that is not subject to the over-quota 
     tariff rate of a tariff-rate quota.
       (2) Establishment.--
       (A) In general.--The President shall carry out an import 
     quota program during the period beginning on the date of the 
     enactment of this Act through July 31, 2013, as provided in 
     this subsection.
       (B) Program requirements.--Whenever the Secretary 
     determines and announces that for any consecutive 4-week 
     period, the Friday through Thursday average price quotation 
     for the lowest-priced United States growth, as quoted for 
     Middling (M) 1 \3/32\-inch cotton, delivered to a definable 
     and significant international market, as determined by the 
     Secretary, exceeds the prevailing world market price, there 
     shall immediately be in effect a special import quota.
       (3) Quantity.--The quota shall be equal to 1 week's 
     consumption of cotton by domestic mills at the seasonally 
     adjusted average rate of the most recent 3 months for which 
     data are available.
       (4) Application.--The quota shall apply to upland cotton 
     purchased not later than 90 days after the date of the 
     Secretary's announcement under paragraph (2) and entered into 
     the United States not later than 180 days after that date.
       (5) Overlap.--A special quota period may be established 
     that overlaps any existing quota period if required by 
     paragraph (2), except that a special quota period may not be 
     established under this subsection if a quota period has been 
     established under subsection (b).
       (6) Preferential tariff treatment.--The quantity under a 
     special import quota shall be considered to be an in-quota 
     quantity for purposes of--
       (A) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (B) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (D) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (7) Limitation.--The quantity of cotton entered into the 
     United States during any marketing year under the special 
     import quota established under this subsection may not exceed 
     the equivalent of 10 week's consumption of upland cotton by 
     domestic mills at the seasonally adjusted average rate of the 
     3 months immediately preceding the first special import quota 
     established in any marketing year.
       (b) Limited Global Import Quota for Upland Cotton.--
       (1) Definitions.--In this subsection:
       (A) Supply.--The term ``supply'' means, using the latest 
     official data of the Bureau of the Census, the Department of 
     Agriculture, and the Department of the Treasury--
       (i) the carry-over of upland cotton at the beginning of the 
     marketing year (adjusted to 480-pound bales) in which the 
     quota is established;
       (ii) production of the current crop; and
       (iii) imports to the latest date available during the 
     marketing year.
       (B) Demand.--The term ``demand'' means--
       (i) the average seasonally adjusted annual rate of domestic 
     mill consumption of cotton during the most recent 3 months 
     for which data are available; and
       (ii) the larger of--

       (I) average exports of upland cotton during the preceding 6 
     marketing years; or
       (II) cumulative exports of upland cotton plus outstanding 
     export sales for the marketing year in which the quota is 
     established.

       (C) Limited global import quota.--The term ``limited global 
     import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (2) Program.--The President shall carry out an import quota 
     program that provides that whenever the Secretary determines 
     and announces that the average price of the base quality of 
     upland cotton, as determined by the Secretary, in the 
     designated spot markets for a month exceeded 130 percent of 
     the average price of the quality of cotton in the markets for 
     the preceding 36 months, notwithstanding any other provision 
     of law, there shall immediately be in effect a limited global 
     import quota subject to the following conditions:
       (A) Quantity.--The quantity of the quota shall be equal to 
     21 days of domestic mill consumption of upland cotton at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available or as estimated by the 
     Secretary.
       (B) Quantity if prior quota.--If a quota has been 
     established under this subsection during the preceding 12 
     months, the quantity of the quota next established under this 
     subsection shall be the smaller of 21 days of domestic mill 
     consumption calculated under subparagraph (A) or the quantity 
     required to increase the supply to 130 percent of the demand.
       (C) Preferential tariff treatment.--The quantity under a 
     limited global import quota shall be considered to be an in-
     quota quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and

[[Page 29223]]

       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (D) Quota entry period.--When a quota is established under 
     this subsection, cotton may be entered under the quota during 
     the 90-day period beginning on the date the quota is 
     established by the Secretary.
       (3) No overlap.--Notwithstanding paragraph (2), a quota 
     period may not be established that overlaps an existing quota 
     period or a special quota period established under subsection 
     (a).
       (c) Economic Adjustment Assistance to Users of Upland 
     Cotton.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall, on a monthly basis, provide economic adjustment 
     assistance to domestic users of upland cotton in the form of 
     payments for all documented use of that upland cotton during 
     the previous monthly period regardless of the origin of the 
     upland cotton.
       (2) Value of assistance.--
       (A) Beginning period.--During the period beginning on 
     August 1, 2008, and ending on June 30, 2013, the value of the 
     assistance provided under paragraph (1) shall be 4 cents per 
     pound.
       (B) Subsequent period.--Effective beginning on July 1, 
     2013, the value of the assistance provided under paragraph 
     (1) shall be 0 cents per pound.
       (3) Allowable purposes.--Economic adjustment assistance 
     under this subsection shall be made available only to 
     domestic users of upland cotton that certify that the 
     assistance shall be used only to acquire, construct, install, 
     modernize, develop, convert, or expand land, plant, 
     buildings, equipment, facilities, or machinery.
       (4) Review or audit.--The Secretary may conduct such review 
     or audit of the records of a domestic user under this 
     subsection as the Secretary determines necessary to carry out 
     this subsection.
       (5) Improper use of assistance.--If the Secretary 
     determines, after a review or audit of the records of the 
     domestic user, that economic adjustment assistance under this 
     subsection was not used for the purposes specified in 
     paragraph (3), the domestic user shall be--
       (A) liable to repay the assistance to the Secretary, plus 
     interest, as determined by the Secretary; and
       (B) ineligible to receive assistance under this subsection 
     for a period of 1 year following the determination of the 
     Secretary.

     SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG 
                   STAPLE COTTON.

       (a) Competitiveness Program.--Notwithstanding any other 
     provision of law, during the period beginning on the date of 
     the enactment of this Act through July 31, 2013, the 
     Secretary shall carry out a program--
       (1) to maintain and expand the domestic use of extra long 
     staple cotton produced in the United States;
       (2) to increase exports of extra long staple cotton 
     produced in the United States; and
       (3) to ensure that extra long staple cotton produced in the 
     United States remains competitive in world markets.
       (b) Payments Under Program; Trigger.--Under the program, 
     the Secretary shall make payments available under this 
     section whenever--
       (1) for a consecutive 4-week period, the world market price 
     for the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is below the 
     prevailing United States price for a competing growth of 
     extra long staple cotton; and
       (2) the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is less than 134 
     percent of the loan rate for extra long staple cotton.
       (c) Eligible Recipients.--The Secretary shall make payments 
     available under this section to domestic users of extra long 
     staple cotton produced in the United States and exporters of 
     extra long staple cotton produced in the United States that 
     enter into an agreement with the Commodity Credit Corporation 
     to participate in the program under this section.
       (d) Payment Amount.--Payments under this section shall be 
     based on the amount of the difference in the prices referred 
     to in subsection (b)(1) during the fourth week of the 
     consecutive 4-week period multiplied by the amount of 
     documented purchases by domestic users and sales for export 
     by exporters made in the week following such a consecutive 4-
     week period.

     SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE 
                   FEED GRAINS AND SEED COTTON.

       (a) High Moisture Feed Grains.--
       (1) Definition of high moisture state.--In this subsection, 
     the term ``high moisture state'' means corn or grain sorghum 
     having a moisture content in excess of Commodity Credit 
     Corporation standards for marketing assistance loans made by 
     the Secretary under section 1201.
       (2) Recourse loans available.--For each of the 2008 through 
     2012 crops of corn and grain sorghum, the Secretary shall 
     make available recourse loans, as determined by the 
     Secretary, to producers on a farm that--
       (A) normally harvest all or a portion of their crop of corn 
     or grain sorghum in a high moisture state;
       (B) present--
       (i) certified scale tickets from an inspected, certified 
     commercial scale, including a licensed warehouse, feedlot, 
     feed mill, distillery, or other similar entity approved by 
     the Secretary, pursuant to regulations issued by the 
     Secretary; or
       (ii) field or other physical measurements of the standing 
     or stored crop in regions of the United States, as determined 
     by the Secretary, that do not have certified commercial 
     scales from which certified scale tickets may be obtained 
     within reasonable proximity of harvest operation;
       (C) certify that they were the owners of the feed grain at 
     the time of delivery to, and that the quantity to be placed 
     under loan under this subsection was in fact harvested on the 
     farm and delivered to, a feedlot, feed mill, or commercial or 
     on-farm high-moisture storage facility, or to a facility 
     maintained by the users of corn and grain sorghum in a high 
     moisture state; and
       (D) comply with deadlines established by the Secretary for 
     harvesting the corn or grain sorghum and submit applications 
     for loans under this subsection within deadlines established 
     by the Secretary.
       (3) Eligibility of acquired feed grains.--A loan under this 
     subsection shall be made on a quantity of corn or grain 
     sorghum of the same crop acquired by the producer equivalent 
     to a quantity determined by multiplying--
       (A) the acreage of the corn or grain sorghum in a high 
     moisture state harvested on the producer's farm; by
       (B) the lower of the farm program payment yield used to 
     make counter-cyclical payments under part I or the actual 
     yield on a field, as determined by the Secretary, that is 
     similar to the field from which the corn or grain sorghum was 
     obtained.
       (b) Recourse Loans Available for Seed Cotton.--For each of 
     the 2008 through 2012 crops of upland cotton and extra long 
     staple cotton, the Secretary shall make available recourse 
     seed cotton loans, as determined by the Secretary, on any 
     production.
       (c) Repayment Rates.--Repayment of a recourse loan made 
     under this section shall be at the loan rate established for 
     the commodity by the Secretary, plus interest (determined in 
     accordance with section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

     SEC. 1210. ADJUSTMENTS OF LOANS.

       (a) Adjustment Authority.--Subject to subsections (e) and 
     (f), the Secretary may make appropriate adjustments in the 
     loan rates for any loan commodity (other than cotton) for 
     differences in grade, type, quality, location, and other 
     factors.
       (b) Manner of Adjustment.--The adjustments under subsection 
     (a) shall, to the maximum extent practicable, be made in such 
     a manner that the average loan level for the commodity will, 
     on the basis of the anticipated incidence of the factors, be 
     equal to the level of support determined in accordance with 
     this subtitle and subtitles B through E.
       (c) Adjustment on County Basis.--
       (1) In general.--The Secretary may establish loan rates for 
     a crop for producers in individual counties in a manner that 
     results in the lowest loan rate being 95 percent of the 
     national average loan rate, if those loan rates do not result 
     in an increase in outlays.
       (2) Prohibition.--Adjustments under this subsection shall 
     not result in an increase in the national average loan rate 
     for any year.
       (d) Adjustment in Loan Rate for Cotton.--
       (1) In general.--The Secretary may make appropriate 
     adjustments in the loan rate for cotton for differences in 
     quality factors.
       (2) Revisions to quality adjustments for upland cotton.--
       (A) In general.--Not later than 180 days after the 
     enactment of this Act and after consultation with the private 
     sector in accordance with paragraph (3), the Secretary shall 
     implement revisions in the administration of the marketing 
     assistance loan program for upland cotton to more accurately 
     and efficiently reflect market values for upland cotton.
       (B) Mandatory revisions.--Revisions under subparagraph (A) 
     shall include--
       (i) the elimination of warehouse location differentials;
       (ii) the establishment of differentials for the various 
     quality factors and staple lengths of cotton based on a 3-
     year, weighted moving average of the weighted designated spot 
     market regions, as determined by regional production;
       (iii) the elimination of any artificial split in the 
     premium or discount between upland cotton with a 32 or 33 
     staple length due to micronaire; and
       (iv) a mechanism to ensure that no premium or discount is 
     established that exceeds the premium or discount associated 
     with a leaf grade that is 1 better than the applicable color 
     grade.
       (C) Discretionary revisions.--Revisions under subparagraph 
     (A) may include--
       (i) the use of non-spot market price data, in addition to 
     spot market price data, that would enhance the accuracy of 
     the price information used in determining quality adjustments 
     under this subsection;

[[Page 29224]]

       (ii) adjustments in the premiums or discounts associated 
     with upland cotton with a staple length of 33 or above due to 
     micronaire with the goal of eliminating any unnecessary 
     artificial splits in the calculations of the premiums or 
     discounts; and
       (iii) such other adjustments as the Secretary determines 
     appropriate, after consultations conducted in accordance with 
     paragraph (3).
       (3) Consultation with private sector.--
       (A) Prior to revision.--Prior to implementing any revisions 
     to the administration of the marketing assistance loan 
     program for upland cotton, the Secretary shall consult with a 
     private sector committee that--
       (i) is in existence as of the date of enactment of this 
     Act;
       (ii) has a membership that includes representatives of the 
     production, ginning, warehousing, cooperative, and 
     merchandising segments of the United States cotton industry; 
     and
       (iii) has developed recommendations concerning the 
     revisions.
       (B) Review of adjustments.--The Secretary shall consult 
     with the committee described in subparagraph (A) when 
     conducting a review of adjustments in the operation of the 
     loan program for upland cotton in accordance with paragraph 
     (4).
       (C) Inapplicability of federal advisory committee act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to consultations under this subsection.
       (4) Review of adjustments.--The Secretary may review the 
     operation of the upland cotton quality adjustments 
     implemented pursuant to this subsection and may make further 
     revisions to the administration of the loan program for 
     upland cotton, by--
       (A) revoking or revising any actions taken under paragraph 
     (2)(B); or
       (B) revoking or revising any actions taken or authorized to 
     be taken under paragraph (2)(C).
       (5) Adjustments in effect prior to revision.--The quality 
     differences (premiums and discounts for quality factors) 
     applicable to the loan program for upland cotton (prior to 
     any revisions in accordance with this subsection) shall be 
     established by the Secretary by giving equal weight to--
       (A) loan differences for the preceding crop; and
       (B) market differences for the crop in the designated 
     United States spot markets.
       (e) Corn and Grain Sorghum.--In the case of corn and grain 
     sorghum, the Secretary--
       (1) shall administer the applicable loan, marketing loan, 
     and related programs using a single loan rate for corn and 
     grain sorghum that is identical in each individual county;
       (2) shall provide that any adjustment in the corn and grain 
     sorghum loan rate for location shall be determined and 
     applied on the basis of the combined corn and grain sorghum 
     data set in a manner that any transportation adjustment shall 
     be the same for corn and grain sorghum in each individual 
     county; and
       (3) may provide for adjustments for grade, type, and 
     quality, as appropriate, for the corn or grain sorghum 
     involved in each specific transaction.
       (f) Rice.--The Secretary shall not make adjustments in the 
     loan rates for long grain rice and medium grain rice, except 
     for differences in grade and quality (including milling 
     yields).

                           PART III--PEANUTS

     SEC. 1301. DEFINITIONS.

       In this part:
       (1) Base acres for peanuts.--The term ``base acres for 
     peanuts'' means the number of acres assigned to a farm 
     pursuant to section 1302 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7952), as in effect on the 
     day before the date of enactment of this Act, subject to any 
     adjustment under section 1302 of this Act.
       (2) Counter-cyclical payment.--The term ``counter-cyclical 
     payment'' means a payment made to producers on a farm under 
     section 1304.
       (3) Direct payment.--The term ``direct payment'' means a 
     direct payment made to producers on a farm under section 
     1303.
       (4) Effective price.--The term ``effective price'' means 
     the price calculated by the Secretary under section 1304 for 
     peanuts to determine whether counter-cyclical payments are 
     required to be made under that section for a crop year.
       (5) Payment acres.--The term ``payment acres'' means 85 
     percent of the base acres for peanuts.
       (6) Payment yield.--The term ``payment yield'' means the 
     yield established for direct payments and counter-cyclical 
     payments under section 1302 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7952), as in effect on the 
     day before the date of enactment of this Act, for a farm for 
     peanuts.
       (7) Producer.--
       (A) In general.--The term ``producer'' means an owner, 
     operator, landlord, tenant, or sharecropper that shares in 
     the risk of producing a crop on a farm and is entitled to 
     share in the crop available for marketing from the farm, or 
     would have shared had the crop been produced.
       (B) Hybrid seed.--In determining whether a grower of hybrid 
     seed is a producer, the Secretary shall--
       (i) not take into consideration the existence of a hybrid 
     seed contract; and
       (ii) ensure that program requirements do not adversely 
     affect the ability of the grower to receive a payment under 
     this part.
       (8) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (9) Target price.--The term ``target price'' means the 
     price per ton of peanuts used to determine the payment rate 
     for counter-cyclical payments.
       (10) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

     SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM.

       (a) Adjustment of Base Acreage for Peanuts.--
       (1) Treatment of conservation reserve contract acreage.--
     The Secretary shall provide for an adjustment, as 
     appropriate, in the base acres for peanuts for a farm 
     whenever either of the following circumstances occur:
       (A) A conservation reserve contract entered into under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) with respect to the farm expires or is voluntarily 
     terminated.
       (B) Cropland is released from coverage under a conservation 
     reserve contract by the Secretary.
       (C) The producer has eligible pulse crop or camelina 
     acreage.
       (D) The producer has eligible oilseed acreage as the result 
     of the Secretary designating additional oilseeds.
       (2) Special conservation reserve acreage payment rules.--
     For the crop year in which a base acres for peanuts 
     adjustment under paragraph (1) is first made, the owner of 
     the farm shall elect to receive either direct payments and 
     counter-cyclical payments with respect to the acreage added 
     to the farm under this subsection or a prorated payment under 
     the conservation reserve contract, but not both.
       (b) Prevention of Excess Base Acres for Peanuts.--
       (1) Required reduction.--If the sum of the base acres for 
     peanuts for a farm, together with the acreage described in 
     paragraph (2), exceeds the actual cropland acreage of the 
     farm, the Secretary shall reduce the base acres for peanuts 
     for the farm or the base acres for 1 or more covered 
     commodities for the farm so that the sum of the base acres 
     for peanuts and acreage described in paragraph (2) does not 
     exceed the actual cropland acreage of the farm.
       (2) Other acreage.--For purposes of paragraph (1), the 
     Secretary shall include the following:
       (A) Any base acres for the farm for a covered commodity.
       (B) Any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.).
       (C) Any other acreage on the farm enrolled in a Federal 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       (D) Any eligible pulse crop or camelina acreage, which 
     shall be determined in the same manner as eligible oilseed 
     acreage under section 1101(a)(2) of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
       (E) If the Secretary designates additional oilseeds, any 
     eligible oilseed acreage, which shall be determined in the 
     same manner as eligible oilseed acreage under section 
     1101(a)(2) of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 7911(a)(2)).
       (3) Selection of acres.--The Secretary shall give the owner 
     of the farm the opportunity to select the base acres for 
     peanuts or the base acres for covered commodities against 
     which the reduction required by paragraph (1) will be made.
       (4) Exception for double-cropped acreage.--In applying 
     paragraph (1), the Secretary shall make an exception in the 
     case of double cropping, as determined by the Secretary.
       (5) Coordinated application of requirements.--The Secretary 
     shall take into account section 1101(b) when applying the 
     requirements of this subsection.
       (c) Permanent Reduction in Base Acres for Peanuts.--
       (1) In general.--The owner of a farm may reduce, at any 
     time, the base acres for peanuts assigned to the farm.
       (2) Administration.--The reduction shall be permanent and 
     made in the manner prescribed by the Secretary.

     SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

       (a) Payment Required.--Except as provided in section 1401, 
     for each of the 2008 through 2012 crop years for peanuts, the 
     Secretary shall make direct payments to the producers on a 
     farm to which a payment yield and base acres for peanuts are 
     established.
       (b) Payment Rate.--The payment rate used to make direct 
     payments with respect to peanuts for a crop year shall be 
     equal to $36 per ton.
       (c) Payment Amount.--The amount of the direct payment to be 
     paid to the producers

[[Page 29225]]

     on a farm for the 2008 through 2012 crops of peanuts shall be 
     equal to the product of the following:
       (1) The payment rate specified in subsection (b).
       (2) The payment acres on the farm.
       (3) The payment yield for the farm.
       (d) Time for Payment.--
       (1) In general.--In the case of each of the 2008 through 
     2012 crop years, the Secretary shall make direct payments 
     under this section not earlier than October 1 of the calendar 
     year in which the crop is harvested.
       (2) Advance payments.--
       (A) Option.--At the option of the producers on a farm, the 
     Secretary shall pay in advance up to 22 percent of the direct 
     payment for peanuts for any of the 2008 through 2011 crop 
     years to the producers on a farm.
       (B) Month.--
       (i) Selection.--Subject to clauses (ii) and (iii), the 
     producers on a farm shall select the month during which the 
     advance payment for a crop year will be made.
       (ii) Options.--The month selected may be any month during 
     the period--

       (I) beginning on December 1 of the calendar year before the 
     calendar year in which the crop of peanuts is harvested; and
       (II) ending during the month within which the direct 
     payment would otherwise be made.

       (iii) Change.--The producers on a farm may change the 
     selected month for a subsequent advance payment by providing 
     advance notice to the Secretary.
       (3) Repayment of advance payments.--If a producer on a farm 
     that receives an advance direct payment for a crop year 
     ceases to be a producer on that farm, or the extent to which 
     the producer shares in the risk of producing a crop changes, 
     before the date the remainder of the direct payment is made, 
     the producer shall be responsible for repaying the Secretary 
     the applicable amount of the advance payment, as determined 
     by the Secretary.

     SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR 
                   PEANUTS.

       (a) Payment Required.--Except as provided in section 1401, 
     for each of the 2008 through 2012 crop years for peanuts, the 
     Secretary shall make counter-cyclical payments to producers 
     on farms for which payment yields and base acres for peanuts 
     are established if the Secretary determines that the 
     effective price for peanuts is less than the target price for 
     peanuts.
       (b) Effective Price.--For purposes of subsection (a), the 
     effective price for peanuts is equal to the sum of the 
     following:
       (1) The higher of the following:
       (A) The national average market price for peanuts received 
     by producers during the 12-month marketing year for peanuts, 
     as determined by the Secretary.
       (B) The national average loan rate for a marketing 
     assistance loan for peanuts in effect for the applicable 
     period under this part.
       (2) The payment rate in effect for peanuts under section 
     1303 for the purpose of making direct payments.
       (c) Target Price.--For purposes of subsection (a), the 
     target price for peanuts shall be equal to $495 per ton.
       (d) Payment Rate.--The payment rate used to make counter-
     cyclical payments for a crop year shall be equal to the 
     difference between--
       (1) the target price; and
       (2) the effective price determined under subsection (b).
       (e) Payment Amount.--If counter-cyclical payments are 
     required to be paid for any of the 2008 through 2012 crops of 
     peanuts, the amount of the counter-cyclical payment to be 
     paid to the producers on a farm for that crop year shall be 
     equal to the product of the following:
       (1) The payment rate specified in subsection (d).
       (2) The payment acres on the farm.
       (3) The payment yield for the farm.
       (f) Time for Payments.--
       (1) General rule.--If the Secretary determines under 
     subsection (a) that counter-cyclical payments are required to 
     be made under this section for a crop year, the Secretary 
     shall make the counter-cyclical payments for the crop year 
     beginning on October 1 or as soon as practicable after the 
     end of the marketing year.
       (2) Availability of partial payments.--
       (A) In general.--If, before the end of the 12-month 
     marketing year, the Secretary estimates that counter-cyclical 
     payments will be required under this section for a crop year, 
     the Secretary shall give producers on a farm the option to 
     receive partial payments of the counter-cyclical payment 
     projected to be made for the crop.
       (B) Election.--
       (i) In general.--The Secretary shall allow participants to 
     make an election to receive partial payments under 
     subparagraph (A) at any time but not later than 30 days prior 
     to the end of the marketing year for the crop.
       (ii) Date of issuance.--The Secretary shall issue the 
     partial payment after the date of an announcement by the 
     Secretary but not later than 30 days prior to the end of the 
     marketing year.
       (3) Time for partial payments.--When the Secretary makes 
     partial payments available for any of the 2008 through 2010 
     crop years--
       (A) the first partial payment shall be made after 
     completion of the first 180 days of the marketing year for 
     that crop; and
       (B) the final partial payment shall be made on October 1 of 
     the fiscal year starting in the same calendar year as the end 
     of the marketing year for that crop.
       (4) Amount of partial payments.--
       (A) First partial payment.--For each of the 2008 through 
     2010 crop years, the first partial payment under paragraph 
     (3) to the producers on a farm may not exceed 40 percent of 
     the projected counter-cyclical payment for the crop year, as 
     determined by the Secretary.
       (B) Final payment.--The final payment for a crop year shall 
     be equal to the difference between--
       (i) the actual counter-cyclical payment to be made to the 
     producers for that crop year; and
       (ii) the amount of the partial payment made to the 
     producers under subparagraph (A).
       (5) Repayment.--The producers on a farm that receive a 
     partial payment under this subsection for a crop year shall 
     repay to the Secretary the amount, if any, by which the total 
     of the partial payments exceed the actual counter-cyclical 
     payment to be made for that crop year.

     SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON 
                   PROVISION OF DIRECT PAYMENTS AND COUNTER-
                   CYCLICAL PAYMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the producers on a farm may 
     receive direct payments or counter-cyclical payments under 
     this part with respect to the farm, the producers shall 
     agree, during the crop year for which the payments are made 
     and in exchange for the payments--
       (A) to comply with applicable conservation requirements 
     under subtitle B of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland protection 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       (C) to comply with the planting flexibility requirements of 
     section 1306;
       (D) to use the land on the farm, in a quantity equal to the 
     attributable base acres for peanuts and any base acres for 
     the farm under part I, for an agricultural or conserving use, 
     and not for a nonagricultural commercial, industrial, or 
     residential use (including land subdivided and developed into 
     residential units or other nonfarming uses, or that is 
     otherwise no longer intended to be used in conjunction with a 
     farming operation), as determined by the Secretary; and
       (E) to effectively control noxious weeds and otherwise 
     maintain the land in accordance with sound agricultural 
     practices, as determined by the Secretary, if the 
     agricultural or conserving use involves the noncultivation of 
     any portion of the land referred to in subparagraph (D).
       (2) Compliance.--The Secretary may issue such rules as the 
     Secretary considers necessary to ensure producer compliance 
     with the requirements of paragraph (1).
       (3) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of this 
     subsection if the modifications are consistent with the 
     objectives of this subsection, as determined by the 
     Secretary.
       (b) Transfer or Change of Interest in Farm.--
       (1) Termination.--
       (A) In general.--Except as provided in paragraph (2), a 
     transfer of (or change in) the interest of the producers on a 
     farm in the base acres for peanuts for which direct payments 
     or counter-cyclical payments are made shall result in the 
     termination of the payments with respect to those acres, 
     unless the transferee or owner of the acreage agrees to 
     assume all obligations under subsection (a).
       (B) Effective date.--The termination shall take effect on 
     the date determined by the Secretary.
       (2) Exception.--If a producer entitled to a direct payment 
     or counter-cyclical payment dies, becomes incompetent, or is 
     otherwise unable to receive the payment, the Secretary shall 
     make the payment, in accordance with rules issued by the 
     Secretary.
       (c) Acreage Reports.--
       (1) In general.--As a condition on the receipt of any 
     benefits under this part, the Secretary shall require 
     producers on a farm to submit to the Secretary annual acreage 
     reports with respect to all cropland on the farm.
       (2) Penalties.--No penalty with respect to benefits under 
     this part shall be assessed against the producers on a farm 
     for an inaccurate acreage report unless the producers on the 
     farm knowingly and willfully falsified the acreage report.
       (d) Tenants and Sharecroppers.--In carrying out this part, 
     the Secretary shall provide adequate safeguards to protect 
     the interests of tenants and sharecroppers.
       (e) Sharing of Payments.--The Secretary shall provide for 
     the sharing of direct payments and counter-cyclical payments 
     among the producers on a farm on a fair and equitable basis.

     SEC. 1306. PLANTING FLEXIBILITY.

       (a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be

[[Page 29226]]

     planted on the base acres for peanuts on a farm.
       (b) Limitations Regarding Certain Commodities.--
       (1) General limitation.--The planting of an agricultural 
     commodity specified in paragraph (3) shall be prohibited on 
     base acres for peanuts unless the commodity, if planted, is 
     destroyed before harvest.
       (2) Treatment of trees and other perennials.--The planting 
     of an agricultural commodity specified in paragraph (3) that 
     is produced on a tree or other perennial plant shall be 
     prohibited on base acres for peanuts.
       (3) Covered agricultural commodities.--Paragraphs (1) and 
     (2) apply to the following agricultural commodities:
       (A) Fruits.
       (B) Vegetables (other than mung beans and pulse crops).
       (C) Wild rice.
       (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) 
     shall not limit the planting of an agricultural commodity 
     specified in paragraph (3) of that subsection--
       (1) in any region in which there is a history of double-
     cropping of peanuts with agricultural commodities specified 
     in subsection (b)(3), as determined by the Secretary, in 
     which case the double-cropping shall be permitted;
       (2) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in subsection 
     (b)(3) on the base acres for peanuts, except that direct 
     payments and counter-cyclical payments shall be reduced by an 
     acre for each acre planted to such an agricultural commodity; 
     or
       (3) by the producers on a farm that the Secretary 
     determines has an established planting history of a specific 
     agricultural commodity specified in subsection (b)(3), except 
     that--
       (A) the quantity planted may not exceed the average annual 
     planting history of such agricultural commodity by the 
     producers on the farm in the 1991 through 1995 or 1998 
     through 2001 crop years (excluding any crop year in which no 
     plantings were made), as determined by the Secretary; and
       (B) direct payments and counter-cyclical payments shall be 
     reduced by an acre for each acre planted to such agricultural 
     commodity.

     SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
                   PAYMENTS FOR PEANUTS.

       (a) Nonrecourse Loans Available.--
       (1) Availability.--Except as provided in section 1401, for 
     each of the 2008 through 2012 crops of peanuts, the Secretary 
     shall make available to producers on a farm nonrecourse 
     marketing assistance loans for peanuts produced on the farm.
       (2) Terms and conditions.--The loans shall be made under 
     terms and conditions that are prescribed by the Secretary and 
     at the loan rate established under subsection (b).
       (3) Eligible production.--The producers on a farm shall be 
     eligible for a marketing assistance loan under this 
     subsection for any quantity of peanuts produced on the farm.
       (4) Treatment of certain commingled commodities.--In 
     carrying out this subsection, the Secretary shall make loans 
     to producers on a farm that would be eligible to obtain a 
     marketing assistance loan, but for the fact the peanuts owned 
     by the producers on the farm are commingled with other 
     peanuts in facilities unlicensed for the storage of 
     agricultural commodities by the Secretary or a State 
     licensing authority, if the producers obtaining the loan 
     agree to immediately redeem the loan collateral in accordance 
     with section 166 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7286).
       (5) Options for obtaining loan.--A marketing assistance 
     loan under this subsection, and loan deficiency payments 
     under subsection (e), may be obtained at the option of the 
     producers on a farm through--
       (A) a designated marketing association or marketing 
     cooperative of producers that is approved by the Secretary; 
     or
       (B) the Farm Service Agency.
       (6) Storage of loan peanuts.--As a condition on the 
     Secretary's approval of an individual or entity to provide 
     storage for peanuts for which a marketing assistance loan is 
     made under this section, the individual or entity shall 
     agree--
       (A) to provide such storage on a nondiscriminatory basis; 
     and
       (B) to comply with such additional requirements as the 
     Secretary considers appropriate to accomplish the purposes of 
     this section and promote fairness in the administration of 
     the benefits of this section.
       (7) Storage, handling, and associated costs.--
       (A) In general.--Beginning with the 2007 crop of peanuts, 
     to ensure proper storage of peanuts for which a loan is made 
     under this section or section 1307 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7957), the Secretary 
     shall use the funds of the Commodity Credit Corporation to 
     pay handling and other associated costs (other than storage 
     costs) incurred at the time at which the peanuts are placed 
     under loan, as determined by the Secretary.
       (B) Redemption and forfeiture.--The Secretary shall--
       (i) require the repayment of handling and other associated 
     costs paid under subparagraph (A) for all peanuts pledged as 
     collateral for a loan that is redeemed under this section or 
     section 1307 of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 7957); and
       (ii) pay storage, handling, and other associated costs for 
     all peanuts pledged as collateral that are forfeited under 
     this section or section 1307 of that Act.
       (8) Marketing.--A marketing association or cooperative may 
     market peanuts for which a loan is made under this section in 
     any manner that conforms to consumer needs, including the 
     separation of peanuts by type and quality.
       (b) Loan Rate.--The loan rate for a marketing assistance 
     loan for peanuts under subsection (a) shall be equal to $355 
     per ton.
       (c) Term of Loan.--
       (1) In general.--A marketing assistance loan for peanuts 
     under subsection (a) shall have a term of 9 months beginning 
     on the first day of the first month after the month in which 
     the loan is made.
       (2) Extensions prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for peanuts under 
     subsection (a).
       (d) Repayment Rate.--The Secretary shall permit producers 
     on a farm to repay a marketing assistance loan for peanuts 
     under subsection (a) at a rate that is the lesser of--
       (1) the loan rate established for peanuts under subsection 
     (b), plus interest (determined in accordance with section 163 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (7 U.S.C. 7283)); or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of peanuts by the 
     Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing peanuts; and
       (D) allow peanuts produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       (e) Loan Deficiency Payments.--
       (1) Availability.--The Secretary may make loan deficiency 
     payments available to producers on a farm that, although 
     eligible to obtain a marketing assistance loan for peanuts 
     under subsection (a), agree to forgo obtaining the loan for 
     the peanuts in return for loan deficiency payments under this 
     subsection.
       (2) Computation.--A loan deficiency payment under this 
     subsection shall be computed by multiplying--
       (A) the payment rate determined under paragraph (3) for 
     peanuts; by
       (B) the quantity of the peanuts produced by the producers, 
     excluding any quantity for which the producers obtain a 
     marketing assistance loan under subsection (a).
       (3) Payment rate.--For purposes of this subsection, the 
     payment rate shall be the amount by which--
       (A) the loan rate established under subsection (b); exceeds
       (B) the rate at which a loan may be repaid under subsection 
     (d).
       (4) Effective date for payment rate determination.--
       (A) In general.--The Secretary shall determine the amount 
     of the loan deficiency payment to be made under this 
     subsection to the producers on a farm with respect to a 
     quantity of peanuts using the payment rate in effect under 
     paragraph (3) as soon as practicable after the date on which 
     the producers on the farm lose beneficial interest.
       (B) Applicability.--This paragraph does not apply for the 
     2009 through 2012 crop years.
       (f) Compliance With Conservation and Wetlands 
     Requirements.--As a condition of the receipt of a marketing 
     assistance loan under subsection (a), the producer shall 
     comply with applicable conservation requirements under 
     subtitle B of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3811 et seq.) and applicable wetland protection 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.) during the term of the loan.
       (g) Reimbursable Agreements and Payment of Administrative 
     Expenses.--The Secretary may implement any reimbursable 
     agreements or provide for the payment of administrative 
     expenses under this part only in a manner that is consistent 
     with such activities in regard to other commodities.

     SEC. 1308. ADJUSTMENTS OF LOANS.

       (a) Adjustment Authority.--The Secretary may make 
     appropriate adjustments in the loan rates for peanuts for 
     differences in grade, type, quality, location, and other 
     factors.
       (b) Manner of Adjustment.--The adjustments under subsection 
     (a) shall, to the maximum extent practicable, be made in such 
     a manner that the average loan level for peanuts will, on the 
     basis of the anticipated incidence of the factors, be equal 
     to the level of support determined in accordance with this 
     subtitle and subtitles B through E.
       (c) Adjustment on County Basis.--
       (1) In general.--The Secretary may establish loan rates for 
     a crop of peanuts for producers in individual counties in a 
     manner that results in the lowest loan rate being 95 percent 
     of the national average loan rate, if those loan rates do not 
     result in an increase in outlays.

[[Page 29227]]

       (2) Prohibition.--Adjustments under this subsection shall 
     not result in an increase in the national average loan rate 
     for any year.

                Subtitle B--Average Crop Revenue Program

     SEC. 1401. AVAILABILITY OF AVERAGE CROP REVENUE PAYMENTS.

       (a) Availability and Election of Alternative Approach.--
       (1) Availability of average crop revenue payments.--As an 
     alternative to receiving payments or loans under subtitle A 
     with respect to all covered commodities and peanuts on a farm 
     (other than loans for graded and nongraded wool, mohair, and 
     honey), the Secretary shall give the producers on the farm an 
     opportunity to make a 1-time election to instead receive 
     average crop revenue payments under this section for--
       (A) the 2010, 2011, and 2012 crop years;
       (B) the 2011 and 2012 crop years; or
       (C) the 2012 crop year.
       (2) Election; time for election.--
       (A) In general.--The Secretary shall provide notice to 
     producers regarding the opportunity to make the election 
     described in paragraph (1).
       (B) Notice requirements.--The notice shall include--
       (i) notice of the opportunity of the producers on a farm to 
     make the election; and
       (ii) information regarding the manner in which the election 
     must be made and the time periods and manner in which notice 
     of the election must be submitted to the Secretary.
       (3) Election deadline.--Within the time period and in the 
     manner prescribed pursuant to paragraph (2), the producers on 
     a farm shall submit to the Secretary notice of the election 
     made under paragraph (1).
       (4) Effect of failure to make election.--If the producers 
     on a farm fail to make the election under paragraph (1) or 
     fail to timely notify the Secretary of the election made, as 
     required by paragraph (3), the producers shall be deemed to 
     have made the election to receive payments and loans under 
     subtitle A for all covered commodities and peanuts on the 
     farm for the applicable crop year.
       (b) Payments Required.--
       (1) In general.--In the case of producers on a farm who 
     make the election under subsection (a) to receive average 
     crop revenue payments, for any of the 2010 through 2012 crop 
     years for all covered commodities and peanuts, the Secretary 
     shall make average crop revenue payments available to the 
     producers on a farm in accordance with this subsection.
       (2) Fixed payment component.--Subject to paragraph (3), in 
     the case of producers on a farm described in paragraph (1), 
     the Secretary shall make average crop revenue payments 
     available to the producers on a farm for each crop year in an 
     amount equal to not less than the product obtained by 
     multiplying--
       (A) $15 per acre; and
       (B) 100 percent of the quantity of base acres on the farm 
     for all covered commodities and peanuts (as adjusted in 
     accordance with the terms and conditions of section 1101 or 
     1302, as determined by the Secretary).
       (3) Revenue component.--The Secretary shall increase the 
     amount of the average crop revenue payments available to the 
     producers on a farm in a State for a crop year if--
       (A) the actual State revenue for the crop year for the 
     covered commodity or peanuts in the State determined under 
     subsection (c); is less than
       (B) the average crop revenue program guarantee for the crop 
     year for the covered commodity or peanuts in the State 
     determined under subsection (d).
       (4) Time for payments.--In the case of each of the 2010 
     through 2012 crop years, the Secretary shall make average 
     crop revenue payments beginning October 1, or as soon as 
     practicable thereafter, after the end of the applicable 
     marketing year for the covered commodity or peanuts.
       (c) Actual State Revenue.--
       (1) In general.--For purposes of subsection (b)(3)(A), the 
     amount of the actual State revenue for a crop year of a 
     covered commodity shall equal the product obtained by 
     multiplying--
       (A) the actual State yield for each planted acre for the 
     crop year for the covered commodity or peanuts determined 
     under paragraph (2); and
       (B) the average crop revenue program harvest price for the 
     crop year for the covered commodity or peanuts determined 
     under paragraph (3).
       (2) Actual state yield.--For purposes of paragraph (1)(A) 
     and subsection (d)(1)(A), the actual State yield for each 
     planted acre for a crop year for a covered commodity or 
     peanuts in a State shall equal (as determined by the 
     Secretary)--
       (A) the quantity of the covered commodity or peanuts that 
     is produced in the State during the crop year; divided by
       (B) the number of acres that are planted to the covered 
     commodity or peanuts in the State during the crop year.
       (3) Average crop revenue program harvest price.--
       (A) In general.--For purposes of paragraph (1)(B), subject 
     to subparagraph (B), the average crop revenue program harvest 
     price for a crop year for a covered commodity or peanuts in a 
     State shall equal the harvest price that is used to calculate 
     revenue under revenue coverage plans that are offered for the 
     crop year for the covered commodity or peanuts in the State 
     under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
       (B) Assigned price.--If the Secretary cannot establish the 
     harvest price for a crop year for a covered commodity or 
     peanuts in a State in accordance with subparagraph (A), the 
     Secretary shall assign a price for the covered commodity or 
     peanuts in the State on the basis of comparable price data.
       (d) Average Crop Revenue Program Guarantee.--
       (1) In general.--The average crop revenue program guarantee 
     for a crop year for a covered commodity or peanuts in a State 
     shall equal 90 percent of the product obtained by 
     multiplying--
       (A) the expected State yield for each planted acre for the 
     crop year for the covered commodity or peanuts in a State 
     determined under paragraph (2); and
       (B) the average crop revenue program pre-planting price for 
     the crop year for the covered commodity or peanuts determined 
     under paragraph (3).
       (2) Expected state yield.--
       (A) In general.--For purposes of paragraph (1)(A), subject 
     to subparagraph (B), the expected State yield for each 
     planted acre for a crop year for a covered commodity or 
     peanuts in a State shall equal the projected yield for the 
     crop year for the covered commodity or peanuts in the State, 
     based on a linear regression trend of the yield per acre 
     planted to the covered commodity or peanuts in the State 
     during the 1980 through 2006 period using National 
     Agricultural Statistics Service data.
       (B) Assigned yield.--If the Secretary cannot establish the 
     expected State yield for each planted acre for a crop year 
     for a covered commodity or peanuts in a State in accordance 
     with subparagraph (A) or if the linear regression trend of 
     the yield per acre planted to the covered commodity or 
     peanuts in the State (as determined under subparagraph (A)) 
     is negative, the Secretary shall assign an expected State 
     yield for each planted acre for the crop year for the covered 
     commodity or peanuts in the State on the basis of expected 
     State yields for planted acres for the crop year for the 
     covered commodity or peanuts in similar States.
       (3) Average crop revenue program pre-planting price.--
       (A) In general.--For purposes of paragraph (1)(B), subject 
     to subparagraphs (B) and (C), the average crop revenue 
     program pre-planting price for a crop year for a covered 
     commodity or peanuts in a State shall equal the average price 
     that is used to calculate revenue under revenue coverage 
     plans that are offered for the covered commodity in the State 
     under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
     for the crop year and the preceding 2 crop years.
       (B) Assigned price.--If the Secretary cannot establish the 
     pre-planting price for a crop year for a covered commodity or 
     peanuts in a State in accordance with subparagraph (A), the 
     Secretary shall assign a price for the covered commodity or 
     peanuts in the State on the basis of comparable price data.
       (C) Minimum and maximum price.--In the case of each of the 
     2011 through 2012 crop years, the average crop revenue 
     program pre-planting price for a crop year for a covered 
     commodity or peanuts under subparagraph (A) shall not 
     decrease or increase more than 15 percent from the pre-
     planting price for the preceding year.
       (e) Payment Amount.--If average crop revenue payments are 
     required to be paid for any of the 2010 through 2012 crop 
     years of a covered commodity or peanuts under subsection 
     (b)(3), in addition to the amount payable under subsection 
     (b)(2), the amount of the average crop revenue payment to be 
     paid to the producers on the farm for the crop year under 
     this section shall be increased by an amount equal to the 
     product obtained by multiplying--
       (1) the difference between--
       (A) the average crop revenue program guarantee for the crop 
     year for the covered commodity or peanuts in the State 
     determined under subsection (d); and
       (B) the actual State revenue from the crop year for the 
     covered commodity or peanuts in the State determined under 
     subsection (c);
       (2) 85 percent of the quantity of base acres on the farm 
     for the covered commodity or peanuts (as adjusted in 
     accordance with the terms and conditions of section 1101 or 
     1302, as determined by the Secretary);
       (3) the quotient obtained by dividing--
       (A)(i) the yield used to calculate crop insurance coverage 
     for the commodity or peanuts on the farm under the Federal 
     Crop Insurance Act (7 U.S.C. 1501 et seq.) (commonly referred 
     to as ``actual production history''); or
       (ii) if actual production history for the commodity or 
     peanuts on the farm is not available, a comparable yield as 
     determined by the Secretary; by
       (B) the expected State yield for the crop year, as 
     determined under subsection (d)(2); and
       (4) 90 percent.
       (f) Recourse Loans.--For each of the 2010 through 2012 
     crops of a covered commodity or peanuts, the Secretary shall 
     make available to producers on a farm who elect to receive 
     payments under this section recourse

[[Page 29228]]

     loans, as determined by the Secretary, on any production of 
     the covered commodity.

     SEC. 1402. PRODUCER AGREEMENT AS CONDITION OF AVERAGE CROP 
                   REVENUE PAYMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the producers on a farm may 
     receive average crop revenue payments with respect to the 
     farm, the producers shall agree, and in the case of 
     subparagraph (C), the Farm Service Agency shall certify, 
     during the crop year for which the payments are made and in 
     exchange for the payments--
       (A) to comply with applicable conservation requirements 
     under subtitle B of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland protection 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.); and
       (C) that the individuals or entities receiving payments are 
     producers;
       (D) to use the land on the farm, in a quantity equal to the 
     attributable base acres for the farm and any base acres for 
     peanuts for the farm under part III of subtitle A, for an 
     agricultural or conserving use, and not for a nonagricultural 
     commercial, industrial, or residential use (including land 
     subdivided and developed into residential units or other 
     nonfarming uses, or that is otherwise no longer intended to 
     be used in conjunction with a farming operation), as 
     determined by the Secretary; and
       (E) to effectively control noxious weeds and otherwise 
     maintain the land in accordance with sound agricultural 
     practices, as determined by the Secretary, if the 
     agricultural or conserving use involves the noncultivation of 
     any portion of the land referred to in subparagraph (D).
       (2) Compliance.--The Secretary may issue such rules as the 
     Secretary considers necessary to ensure producer compliance 
     with the requirements of paragraph (1).
       (3) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of this 
     subsection if the modifications are consistent with the 
     objectives of this subsection, as determined by the 
     Secretary.
       (b) Transfer or Change of Interest in Farm.--
       (1) Termination.--
       (A) In general.--Except as provided in paragraph (2), a 
     transfer of (or change in) the interest of the producers on a 
     farm for which average crop revenue payments are made shall 
     result in the termination of the payments, unless the 
     transferee or owner of the farm agrees to assume all 
     obligations under subsection (a).
       (B) Effective date.--The termination shall take effect on 
     the date determined by the Secretary.
       (2) Exception.--If a producer entitled to an average crop 
     revenue payment dies, becomes incompetent, or is otherwise 
     unable to receive the payment, the Secretary shall make the 
     payment, in accordance with rules issued by the Secretary.
       (c) Acreage Reports.--
       (1) In general.--As a condition on the receipt of any 
     benefits under this subtitle, the Secretary shall require 
     producers on a farm to submit to the Secretary annual acreage 
     reports with respect to all cropland on the farm.
       (2) Penalties.--No penalty with respect to benefits under 
     subtitle shall be assessed against the producers on a farm 
     for an inaccurate acreage report unless the producers on the 
     farm knowingly and willfully falsified the acreage report.
       (d) Tenants and Sharecroppers.--In carrying out this 
     subtitle, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       (e) Sharing of Payments.--The Secretary shall provide for 
     the sharing of average crop revenue payments among the 
     producers on a farm on a fair and equitable basis.
       (f) Audit and Report.--Each year, to ensure, to the maximum 
     extent practicable, that payments are received only by 
     producers, the Secretary shall--
       (1) conduct an audit of average crop revenue payments; and
       (2) submit to Congress a report that describes the results 
     of that audit.

     SEC. 1403. PLANTING FLEXIBILITY.

       (a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be planted on base acres on a farm for 
     which the producers on a farm elect to receive average crop 
     revenue payments (referred to in this section as ``base 
     acres'').
       (b) Limitations Regarding Certain Commodities.--
       (1) General limitation.--The planting of an agricultural 
     commodity specified in paragraph (3) shall be prohibited on 
     base acres unless the commodity, if planted, is destroyed 
     before harvest.
       (2) Treatment of trees and other perennials.--The planting 
     of an agricultural commodity specified in paragraph (3) that 
     is produced on a tree or other perennial plant shall be 
     prohibited on base acres.
       (3) Covered agricultural commodities.--Paragraphs (1) and 
     (2) apply to the following agricultural commodities:
       (A) Fruits.
       (B) Vegetables (other than mung beans and pulse crops).
       (C) Wild rice.
       (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) 
     shall not limit the planting of an agricultural commodity 
     specified in paragraph (3) of that subsection--
       (1) in any region in which there is a history of double-
     cropping of covered commodities with agricultural commodities 
     specified in subsection (b)(3), as determined by the 
     Secretary, in which case the double-cropping shall be 
     permitted;
       (2) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in subsection 
     (b)(3) on base acres, except that average crop revenue 
     payments shall be reduced by an acre for each acre planted to 
     such an agricultural commodity; or
       (3) by the producers on a farm that the Secretary 
     determines has an established planting history of a specific 
     agricultural commodity specified in subsection (b)(3), except 
     that--
       (A) the quantity planted may not exceed the average annual 
     planting history of such agricultural commodity by the 
     producers on the farm in the 1991 through 1995 or 1998 
     through 2001 crop years (excluding any crop year in which no 
     plantings were made), as determined by the Secretary; and
       (B) average crop revenue payments shall be reduced by an 
     acre for each acre planted to such agricultural commodity.
       (d) Planting Transferability Pilot Project.--Producers on a 
     farm that elect to receive average crop revenue payments 
     shall be eligible to participate in the pilot program 
     established under section 1106(d) under the same terms and 
     conditions as producers that receive direct payments and 
     counter-cyclical payments.
       (e) Production of Fruits or Vegetables for Processing.--
       (1) In general.--Subject to paragraphs (2) through (4), 
     effective beginning with the 2010 crop years, producers on a 
     farm that elect to receive average crop revenue payments, 
     with the consent of the owner of and any other producers on 
     the farm, may reduce the base acres for a covered commodity 
     for the farm if the reduced acres are used for the planting 
     and production of fruits or vegetables for processing.
       (2) Reversion to base acres for covered commodity.--Any 
     reduced acres on a farm devoted to the planting and 
     production of fruits or vegetables during a crop year under 
     paragraph (1) shall be included in base acres for the covered 
     commodity for the subsequent crop year, unless the producers 
     on the farm make the election described in paragraph (1) for 
     the subsequent crop year.
       (3) Recalculation of base acres.--
       (A) In general.--Subject to subparagraph (B), if the 
     Secretary recalculates base acres for a farm, the planting 
     and production of fruits or vegetables for processing under 
     paragraph (1) shall be considered to be the same as the 
     planting, prevented planting, or production of a covered 
     commodity.
       (B) Authority.--Nothing in this subsection provides 
     authority for the Secretary to recalculate base acres for a 
     farm covered by this subsection other than as provided in 
     this subsection.
       (4) Limitations.--
       (A) In general.--This subsection applies in land located in 
     each of the States of Illinois, Indiana, Iowa, Michigan, 
     Minnesota, Ohio, and Wisconsin.
       (B) Acreage limit.--The total number of base acres that may 
     be reduced in any State under this subsection shall not 
     exceed 10,000.

                           Subtitle C--Sugar

     SEC. 1501. SUGAR PROGRAM.

       Section 156 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7272) is amended to read as 
     follows:

     ``SEC. 156. SUGAR PROGRAM.

       ``(a) Sugarcane.--The Secretary shall make loans available 
     to processors of domestically grown sugarcane at a rate equal 
     to--
       ``(1) 18.00 cents per pound for raw cane sugar for the 2008 
     crop year;
       ``(2) 18.25 cents per pound for raw cane sugar for the 2009 
     crop year;
       ``(3) 18.50 cents per pound for raw cane sugar for the 2010 
     crop year;
       ``(4) 18.75 cents per pound for raw cane sugar for the 2011 
     crop year; and
       ``(5) 19.00 cents per pound for raw cane sugar for the 2012 
     crop year.
       ``(b) Sugar Beets.--The Secretary shall make loans 
     available to processors of domestically grown sugar beets at 
     a rate per pound for refined beet sugar that is equal to 
     128.5 percent of the loan rate per pound of raw cane sugar 
     for the applicable crop year under subsection (a).
       ``(c) Term of Loans.--
       ``(1) In general.--A loan under this section during any 
     fiscal year shall be made available not earlier than the 
     beginning of the fiscal year and shall mature at the earlier 
     of--
       ``(A) the end of the 9-month period beginning on the first 
     day of the first month after the month in which the loan is 
     made; or
       ``(B) the end of the fiscal year in which the loan is made.
       ``(2) Supplemental loans.--In the case of a loan made under 
     this section in the last 3 months of a fiscal year, the 
     processor may repledge the sugar as collateral for a second 
     loan in the subsequent fiscal year, except that the second 
     loan shall--

[[Page 29229]]

       ``(A) be made at the loan rate in effect at the time the 
     second loan is made; and
       ``(B) mature in 9 months less the quantity of time that the 
     first loan was in effect.
       ``(d) Loan Type; Processor Assurances.--
       ``(1) Nonrecourse loans.--The Secretary shall carry out 
     this section through the use of nonrecourse loans.
       ``(2) Processor assurances.--
       ``(A) In general.--The Secretary shall obtain from each 
     processor that receives a loan under this section such 
     assurances as the Secretary considers adequate to ensure that 
     the processor will provide payments to producers that are 
     proportional to the value of the loan received by the 
     processor for the sugar beets and sugarcane delivered by 
     producers to the processor.
       ``(B) Minimum payments.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     may establish appropriate minimum payments for purposes of 
     this paragraph.
       ``(ii) Limitation.--In the case of sugar beets, the minimum 
     payment established under clause (i) shall not exceed the 
     rate of payment provided for under the applicable contract 
     between a sugar beet producer and a sugar beet processor.
       ``(3) Administration.--The Secretary may not impose or 
     enforce any prenotification requirement, or similar 
     administrative requirement not otherwise in effect on the 
     date of enactment of the Food and Energy Security Act of 
     2007, that has the effect of preventing a processor from 
     electing to forfeit the loan collateral (of an acceptable 
     grade and quality) on the maturity of the loan.
       ``(e) Loans for In-Process Sugar.--
       ``(1) Definition of in-process sugars and syrups.--In this 
     subsection, the term `in-process sugars and syrups' does not 
     include raw sugar, liquid sugar, invert sugar, invert syrup, 
     or other finished product that is otherwise eligible for a 
     loan under subsection (a) or (b).
       ``(2) Availability.--The Secretary shall make nonrecourse 
     loans available to processors of a crop of domestically grown 
     sugarcane and sugar beets for in-process sugars and syrups 
     derived from the crop.
       ``(3) Loan rate.--The loan rate shall be equal to 80 
     percent of the loan rate applicable to raw cane sugar or 
     refined beet sugar, as determined by the Secretary on the 
     basis of the source material for the in-process sugars and 
     syrups.
       ``(4) Further processing on forfeiture.--
       ``(A) In general.--As a condition of the forfeiture of in-
     process sugars and syrups serving as collateral for a loan 
     under paragraph (2), the processor shall, within such 
     reasonable time period as the Secretary may prescribe and at 
     no cost to the Commodity Credit Corporation, convert the in-
     process sugars and syrups into raw cane sugar or refined beet 
     sugar of acceptable grade and quality for sugars eligible for 
     loans under subsection (a) or (b).
       ``(B) Transfer to corporation.--Once the in-process sugars 
     and syrups are fully processed into raw cane sugar or refined 
     beet sugar, the processor shall transfer the sugar to the 
     Commodity Credit Corporation.
       ``(C) Payment to processor.--On transfer of the sugar, the 
     Secretary shall make a payment to the processor in an amount 
     equal to the amount obtained by multiplying--
       ``(i) the difference between--

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

       ``(ii) the quantity of sugar transferred to the Secretary.
       ``(5) Loan conversion.--If the processor does not forfeit 
     the collateral as described in paragraph (4), but instead 
     further processes the in-process sugars and syrups into raw 
     cane sugar or refined beet sugar and repays the loan on the 
     in-process sugars and syrups, the processor may obtain a loan 
     under subsection (a) or (b) for the raw cane sugar or refined 
     beet sugar, as appropriate.
       ``(6) Term of loan.--The term of a loan made under this 
     subsection for a quantity of in-process sugars and syrups, 
     when combined with the term of a loan made with respect to 
     the raw cane sugar or refined beet sugar derived from the in-
     process sugars and syrups, may not exceed 9 months, 
     consistent with subsection (d).
       ``(f) Feedstock Flexibility Program for Bioenergy 
     Producers.--
       ``(1) Definitions.--In this subsection:
       ``(A) Bioenergy.--The term `bioenergy' means fuel grade 
     ethanol and other biofuel.
       ``(B) Bioenergy producer.--The term `bioenergy producer' 
     means a producer of bioenergy that uses an eligible commodity 
     to produce bioenergy under this subsection.
       ``(C) Eligible commodity.--The term `eligible commodity' 
     means a form of raw or refined sugar or in-process sugar that 
     is eligible--
       ``(i) to be marketed in the United States for human 
     consumption; or
       ``(ii) to be used for the extraction of sugar for human 
     consumption.
       ``(D) Eligible entity.--The term `eligible entity' means an 
     entity located in the United States that markets an eligible 
     commodity in the United States.
       ``(2) Feedstock flexibility program.--
       ``(A) Purchases and sales.--For each of fiscal years 2008 
     through 2012, the Secretary shall purchase eligible 
     commodities from eligible entities and sell such commodities 
     to bioenergy producers for the purpose of producing bioenergy 
     in a manner that ensures that this section is operated at no 
     cost to the Federal Government and avoids forfeitures to the 
     Commodity Credit Corporation.
       ``(B) Competitive procedures.--In carrying out the 
     purchases and sales required under subparagraph (A), the 
     Secretary shall, to the maximum extent practicable, use 
     competitive procedures, including the receiving, offering, 
     and accepting of bids, when entering into contracts with 
     eligible entities and bioenergy producers, provided that the 
     procedures are consistent with the purposes of subparagraph 
     (A).
       ``(C) Limitation.--The purchase and sale of eligible 
     commodities under subparagraph (A) shall only be made for a 
     fiscal year for which the purchases and sales are necessary 
     to ensure that the program under this section is operated at 
     no cost to the Federal Government by avoiding forfeitures to 
     the Commodity Credit Corporation.
       ``(3) Notice.--
       ``(A) In general.--As soon as practicable after the date of 
     enactment of the Food and Energy Security Act of 2007, and 
     each September 1 thereafter through fiscal year 2012, the 
     Secretary shall provide notice to eligible entities and 
     bioenergy producers of the quantity of eligible commodities 
     that shall be made available for purchase and sale for the 
     subsequent fiscal year under this subsection.
       ``(B) Reestimates.--Not later than the first day of each of 
     the second through fourth quarters of each of fiscal years 
     2008 through 2012, the Secretary shall reestimate the 
     quantity of eligible commodities determined under 
     subparagraph (A), and provide notice and make purchases and 
     sales based on the reestimates.
       ``(4) Commodity credit corporation inventory.--To the 
     extent that an eligible commodity is owned and held in 
     inventory by the Commodity Credit Corporation (accumulated 
     pursuant to the program under this section), the Secretary 
     shall sell the eligible commodity to bioenergy producers 
     under this subsection.
       ``(5) Transfer rule; storage fees.--
       ``(A) General transfer rule.--Except as provided in 
     subparagraph (C), the Secretary shall ensure that bioenergy 
     producers that purchase eligible commodities pursuant to this 
     subsection take possession of the eligible commodities not 
     later than 30 calendar days after the date of the purchase 
     from the Commodity Credit Corporation.
       ``(B) Payment of storage fees prohibited.--
       ``(i) In general.--The Secretary shall, to the maximum 
     extent practicable, carry out this subsection in a manner 
     that ensures no storage fees are paid by the Commodity Credit 
     Corporation in the administration of this subsection.
       ``(ii) Exception.--Clause (i) shall not apply with respect 
     to any commodities owned and held in inventory by the 
     Commodity Credit Corporation (accumulated pursuant to the 
     program under this section).
       ``(C) Option to prevent storage fees.--
       ``(i) In general.--The Secretary may enter into contracts 
     with bioenergy producers to sell eligible commodities to the 
     bioenergy producers prior in time to entering into contracts 
     with eligible entities to purchase the eligible commodities 
     to be used to satisfy the contracts entered into with the 
     bioenergy producers.
       ``(ii) Special transfer rule.--If the Secretary makes a 
     sale and purchase referred to in clause (i), the Secretary 
     shall ensure that the bioenergy producer that purchased 
     eligible commodities takes possession of the eligible 
     commodities not later than 30 calendar days after the date on 
     which the Commodity Credit Corporation purchases the eligible 
     commodities.
       ``(6) Relation to other laws.--If sugar that is subject to 
     a marketing allotment under part VII of subtitle B of title 
     III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1359aa et seq.) is the subject of a payment under this 
     subsection, the sugar shall be considered marketed and shall 
     count against the allocation of a processor of an allotment 
     under that part, as applicable.
       ``(7) Funding.--The Secretary shall use the funds, 
     facilities, and authorities of the Commodity Credit 
     Corporation, including the use of such sums as are necessary, 
     to carry out this subsection.
       ``(g) Avoiding Forfeitures; Corporation Inventory 
     Disposition.--
       ``(1) In general.--Subject to subsection (d)(3), to the 
     maximum extent practicable, the Secretary shall operate the 
     program established under this section at no cost to the 
     Federal Government by avoiding the forfeiture of sugar to the 
     Commodity Credit Corporation.
       ``(2) Inventory disposition.--
       ``(A) In general.--To carry out paragraph (1), the 
     Commodity Credit Corporation may accept bids to obtain raw 
     cane sugar or refined beet sugar in the inventory of the 
     Commodity Credit Corporation from (or otherwise make 
     available such commodities, on appropriate terms and 
     conditions, to) processors of sugarcane and processors of 
     sugar

[[Page 29230]]

     beets (acting in conjunction with the producers of the 
     sugarcane or sugar beets processed by the processors) in 
     return for the reduction of production of raw cane sugar or 
     refined beet sugar, as appropriate.
       ``(B) Bioenergy feedstock.--Sugar beets or sugarcane 
     planted on acreage diverted from production to achieve any 
     reduction required under subparagraph (A) may not be used for 
     any commercial purpose other than as a bioenergy feedstock.
       ``(C) Additional authority.--The authority provided under 
     this paragraph is in addition to any authority of the 
     Commodity Credit Corporation under any other law.
       ``(h) Information Reporting.--
       ``(1) Duty of processors and refiners to report.--A 
     sugarcane processor, cane sugar refiner, and sugar beet 
     processor shall furnish the Secretary, on a monthly basis, 
     such information as the Secretary may require to administer 
     sugar programs, including the quantity of purchases of 
     sugarcane, sugar beets, and sugar, and production, 
     importation, distribution, and stock levels of sugar.
       ``(2) Duty of producers to report.--
       ``(A) Proportionate share states.--As a condition of a loan 
     made to a processor for the benefit of a producer, the 
     Secretary shall require each producer of sugarcane located in 
     a State (other than the Commonwealth of Puerto Rico) in which 
     there are in excess of 250 producers of sugarcane to report, 
     in the manner prescribed by the Secretary, the sugarcane 
     yields and acres planted to sugarcane of the producer.
       ``(B) Other states.--The Secretary may require each 
     producer of sugarcane or sugar beets not covered by 
     subparagraph (A) to report, in a manner prescribed by the 
     Secretary, the yields of, and acres planted to, sugarcane or 
     sugar beets, respectively, of the producer.
       ``(3) Duty of importers to report.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall require an importer of sugars, syrups, or 
     molasses to be used for human consumption or to be used for 
     the extraction of sugar for human consumption to report, in 
     the manner prescribed by the Secretary, the quantities of the 
     products imported by the importer and the sugar content or 
     equivalent of the products.
       ``(B) Tariff-rate quotas.--Subparagraph (A) shall not apply 
     to sugars, syrups, or molasses that are within the quantities 
     of tariff-rate quotas that are subject to the lower rate of 
     duties.
       ``(4) Information on mexico.--
       ``(A) Collection.--The Secretary shall collect--
       ``(i) information of the production, consumption, stocks, 
     and trade of sugar in Mexico, including United States exports 
     of sugar to Mexico; and
       ``(ii) publicly-available information on Mexican 
     production, consumption, and trade of high fructose corn 
     syrups to Mexico.
       ``(B) Publication.--The date collected under subparagraph 
     (A) shall be published in each edition of the World 
     Agricultural Supply and Demand Estimates.
       ``(5) Penalty.--Any person willfully failing or refusing to 
     furnish the information required under paragraph (1), (2), or 
     (3), or furnishing willfully any false information, shall be 
     subject to a civil penalty of not more than $10,000 for each 
     such violation.
       ``(6) Monthly reports.--Taking into consideration the 
     information received under this subsection, the Secretary 
     shall publish on a monthly basis composite data on 
     production, imports, distribution, and stock levels of sugar.
       ``(i) Substitution of Refined Sugar.--For purposes of 
     Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff 
     Schedule of the United States and the reexport programs and 
     polyhydric alcohol program administered by the Secretary, all 
     refined sugars (whether derived from sugar beets or 
     sugarcane) produced by cane sugar refineries and beet sugar 
     processors shall be fully substitutable for the export of 
     sugar and sugar-containing products under those programs.
       ``(j) Effective Period.--
       ``(1) In general.--This section shall be effective only for 
     the 2008 through 2012 crops of sugar beets and sugarcane.
       ``(2) Transition.--The Secretary shall make loans for raw 
     cane sugar and refined beet sugar available for the 2007 crop 
     year on the terms and conditions provided in this section as 
     in effect on the day before the date of enactment of the Food 
     and Energy Security Act of 2007.''.

     SEC. 1502. STORAGE FACILITY LOANS.

       Section 1402(c) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 7971(c)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) by redesignating paragraph (2) as paragraph (3);
       (3) by inserting after paragraph (1) the following:
       ``(2) not include any penalty for prepayment''; and
       (4) in paragraph (3) (as redesignated by paragraph (2)), by 
     inserting ``other'' after ``on such''.

     SEC. 1503. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

       Subtitle E of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7281 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

       ``(a) Initial Crop Years.--Notwithstanding any other 
     provision of law, for each of the 2008 through 2011 crop 
     years, the Commodity Credit Corporation shall establish rates 
     for the storage of forfeited sugar in an amount that is not 
     less than--
       ``(1) in the case of refined sugar, 15 cents per 
     hundredweight of refined sugar per month; and
       ``(2) in the case of raw cane sugar, 10 cents per 
     hundredweight of raw cane sugar per month.
       ``(b) Subsequent Crop Years.--For each of the 2012 and 
     subsequent crop years, the Commodity Credit Corporation shall 
     establish rates for the storage of forfeited sugar in the 
     same manner as was used on the day before the date of 
     enactment of this section.''.

     SEC. 1504. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

       (a) Definitions.--Section 359a of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended--
       (1) by redesignating paragraphs (2) through (4) as 
     paragraphs (3) through (5), respectively; and
       (2) by inserting after paragraph (1) the following:
       ``(2) Market.--
       ``(A) In general.--The term `market' means to sell or 
     otherwise dispose of in commerce in the United States.
       ``(B) Inclusions.--The term `market' includes--
       ``(i) the forfeiture of sugar under the loan program for 
     sugar established under section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272); and
       ``(ii) with respect to any integrated processor and 
     refiner, the movement of raw cane sugar into the refining 
     process.
       ``(C) Marketing year.--Forfeited sugar described in 
     subparagraph (B)(i) shall be considered to have been marketed 
     during the crop year for which a loan is made under the loan 
     program described in that subparagraph.''.
       (b) Flexible Marketing Allotments for Sugar.--Section 359b 
     of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) 
     is amended to read as follows:

     ``SEC. 359. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

       ``(a) In General.--
       ``(1) In general.--By the beginning of each crop year, the 
     Secretary shall establish for that crop year appropriate 
     allotments under section 359c for the marketing by processors 
     of sugar processed from sugar cane, sugar beets, or in-
     process sugar (whether produced domestically or imported) at 
     a level that is--
       ``(A) sufficient to maintain raw and refined sugar prices 
     at a level that will result in no forfeitures of sugar to the 
     Commodity Credit Corporation under the loan program for sugar 
     established under section 156 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7272); but
       ``(B) not less than 85 percent of the estimated quantity of 
     sugar consumption for domestic food use for the crop year.
       ``(2) Products.--The Secretary may include sugar products, 
     the majority content of which is sucrose for human 
     consumption, derived from sugarcane, sugar beets, molasses, 
     or sugar in the allotments under paragraph (1) if the 
     Secretary determines it to be appropriate for purposes of 
     this part.
       ``(b) Coverage of Allotments.--
       ``(1) In general.--Marketing allotments under this part 
     shall apply to the marketing by processors of sugar intended 
     for domestic human food use that has been processed from 
     sugar cane, sugar beets, or in-process sugar, whether 
     produced domestically or imported.
       ``(2) Exceptions.--Marketing allotments under this part 
     shall not apply to sugar sold--
       ``(A) to facilitate the exportation of the sugar to a 
     foreign country;
       ``(B) to enable another processor to fulfill an allocation 
     established for that processor; or
       ``(C) for uses other than domestic human food use.
       ``(3) Requirement.--The sale of sugar described in 
     paragraph (2)(B) shall be--
       ``(A) made prior to May 1; and
       ``(B) reported to the Secretary.
       ``(c) Prohibitions.--
       ``(1) In general.--During all or part of any crop year for 
     which marketing allotments have been established, no 
     processor of sugar beets or sugarcane shall market for 
     domestic human food use a quantity of sugar in excess of the 
     allocation established for the processor, except--
       ``(A) to enable another processor to fulfill an allocation 
     established for that other processor; or
       ``(B) to facilitate the exportation of the sugar.
       ``(2) Civil penalty.--Any processor who knowingly violates 
     paragraph (1) shall be liable to the Commodity Credit 
     Corporation for a civil penalty in an amount equal to 3 times 
     the United States market value, at the time of the commission 
     of the violation, of that quantity of sugar involved in the 
     violation.''.
       (c) Establishment of Flexible Marketing Allotments.--
     Section 359c of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1359cc) is amended--

[[Page 29231]]

       (1) by striking subsection (b) and inserting the following:
       ``(b) Overall Allotment Quantity.--
       ``(1) In general.--The Secretary shall establish the 
     overall quantity of sugar to be allotted for the crop year 
     (referred to in this part as the `overall allotment 
     quantity') at a level that is--
       ``(A) sufficient to maintain raw and refined sugar prices 
     above the level that will result in no forfeiture of sugar to 
     the Commodity Credit Corporation; but
       ``(B) not less than a quantity equal to 85 percent of the 
     estimated sugar consumption for domestic food use for the 
     crop year.
       ``(2) Adjustment.--Subject to paragraph (1), the Secretary 
     shall adjust the overall allotment quantity to maintain--
       ``(A) raw and refined sugar prices above forfeiture levels 
     to avoid the forfeiture of sugar to the Commodity Credit 
     Corporation; and
       ``(B) adequate supplies of raw and refined sugar in the 
     domestic market.''; and
       (2) by striking subsection (h).
       (d) Allocation of Marketing Allotments.--Section 359d(b) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) 
     is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``subparagraphs (C) 
     and (D)'' and inserting ``subparagraph (C)'';
       (B) by striking subparagraph (C);
       (C) by redesignating subparagraphs (D) through (F) as 
     subparagraphs (C) through (E), respectively;
       (D) in subparagraph (D) (as so redesignated)--
       (i) in clause (i), by striking ``subparagraphs (B) and 
     (D)'' and inserting ``subparagraphs (B) and (C)''; and
       (ii) in clause (iii)(II), by striking ``subparagraph (B) or 
     (D)'' as ``subparagraph (B) or (C)''; and
       (E) in subparagraph (E) (as so redesignated), by striking 
     ``Except as otherwise provided in section 359f(c)(8), if'' 
     and inserting ``If''; and
       (2) in paragraph (2), by striking subparagraphs (H) and (I) 
     and inserting the following:
       ``(H) New entrants starting production or reopening 
     factories.--
       ``(i) Definition of new entrant.--

       ``(I) In general.--In this subparagraph, the term `new 
     entrant' means an individual, corporation, or other entity 
     that--

       ``(aa) does not have an allocation of the beet sugar 
     allotment under this part;
       ``(bb) is not affiliated with any other individual, 
     corporation, or entity that has an allocation of beet sugar 
     under this part (referred to in this clause as a `third 
     party'); and
       ``(cc) will process sugar beets produced by sugar beet 
     growers under contract with the new entrant for the 
     production of sugar at the new or re-opened factory that is 
     the basis for the new entrant allocation.

       ``(II) Affiliation.--For purposes of subclause (I)(bb), a 
     new entrant and a third party shall be considered to be 
     affiliated if--

       ``(aa) the third party has an ownership interest in the new 
     entrant;
       ``(bb) the new entrant and the third party have owners in 
     common;
       ``(cc) the third party has the ability to exercise control 
     over the new entrant by organizational rights, contractual 
     rights, or any other means;
       ``(dd) the third party has a contractual relationship with 
     the new entrant by which the new entrant will make use of the 
     facilities or assets of the third party; or
       ``(ee) there are any other similar circumstances by which 
     the Secretary determines that the new entrant and the third 
     party are affiliated.
       ``(ii) Allocation for a new entrant that has constructed a 
     new factory or reopened a factory that was not operated since 
     before 1998.--If a new entrant constructs a new sugar beet 
     processing factory, or acquires and reopens a sugar beet 
     processing factory that last processed sugar beets prior to 
     the 1998 crop year and there is no allocation currently 
     associated with the factory, the Secretary shall--

       ``(I) assign an allocation for beet sugar to the new 
     entrant that provides a fair and equitable distribution of 
     the allocations for beet sugar so as to enable the new 
     entrant to achieve a factory utilization rate comparable to 
     the factory utilization rates of other similarly-situated 
     processors; and
       ``(II) reduce the allocations for beet sugar of all other 
     processors on a pro rata basis to reflect the allocation to 
     the new entrant.

       ``(iii) Allocation for a new entrant that has acquired an 
     existing factory with a production history.--

       ``(I) In general.--If a new entrant acquires an existing 
     factory that has processed sugar beets from the 1998 or 
     subsequent crop year and has a production history, on the 
     mutual agreement of the new entrant and the company currently 
     holding the allocation associated with the factory, the 
     Secretary shall transfer to the new entrant a portion of the 
     allocation of the current allocation holder to reflect the 
     historical contribution of the production of the acquired 
     factory to the total allocation of the current allocation 
     holder.
       ``(II) Prohibition.--In the absence of a mutual agreement 
     described in subclause (I), the new entrant shall be 
     ineligible for a beet sugar allocation.

       ``(iv) Appeals.--Any decision made under this subsection 
     may be appealed to the Secretary in accordance with section 
     359i.''.
       (e) Reassignment of Deficits.--Section 359e(b) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is 
     amended in paragraphs (1)(D) and (2)(C), by inserting ``of 
     raw cane sugar'' after ``imports'' each place it appears.
       (f) Provisions Applicable to Producers.--Section 359f(c) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) 
     is amended--
       (1) by striking paragraph (8);
       (2) by redesignating paragraphs (1) through (7) as 
     paragraphs (2) through (8), respectively;
       (3) by inserting before paragraph (2) (as so redesignated) 
     the following:
       ``(1) Definition of seed.--
       ``(A) In general.--In this subsection, the term `seed' 
     means only those varieties of seed that are dedicated to the 
     production of sugarcane from which is produced sugar for 
     human consumption.
       ``(B) Exclusion.--The term `seed' does not include seed of 
     a high-fiber cane variety dedicated to other uses, as 
     determined by the Secretary'';
       (4) in paragraph (3) (as so redesignated)--
       (A) in the first sentence--
       (i) by striking ``paragraph (1)'' and inserting ``paragraph 
     (2)''; and
       (ii) by inserting ``sugar produced from'' after ``quantity 
     of''; and
       (B) in the second sentence, by striking ``paragraph (7)'' 
     and inserting ``paragraph (8)''; and
       (5) in paragraph (8) (as so redesignated), by inserting 
     ``sugar from'' after ``the amount of''.
       (g) Special Rules.--Section 359g of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Transfer of Acreage Base History.--
       ``(1) In general.--For the purpose of establishing 
     proportionate shares for sugarcane farms under section 
     359f(c), the Secretary, on application of any producer, with 
     the written consent of all owners of a farm, may transfer the 
     acreage base history of the farm to any other parcels of land 
     of the applicant.
       ``(2) Converted acreage base.--
       ``(A) In general.--Sugarcane base acreage established under 
     section 359f(c) that has been or is converted to 
     nonagricultural use on or after the date of the enactment of 
     this paragraph may be transferred to other land suitable for 
     the production of sugarcane that can be delivered to a 
     processor in a proportionate share in accordance with this 
     paragraph.
       ``(B) Notification.--Not later than 90 days after the date 
     of the enactment of this paragraph and at the subsequent 
     conversion of any sugarcane base acreage to a nonagricultural 
     use, the Administrator of the Farm Service Agency shall 
     notify the 1 or more affected landowners of the 
     transferability of the applicable sugarcane base acreage.
       ``(C) Initial transfer period.--Not later than the end of 
     the 90-day period beginning on the date of receipt of the 
     notification under subparagraph (B), the owner of the base 
     attributable to the acreage at the time of the conversion 
     shall transfer the base to 1 or more farms owned by the 
     owner.
       ``(D) Grower of record.--If a transfer under subparagraph 
     (C) cannot be accomplished during the period specified in 
     that subparagraph, the grower of record with regard to the 
     base acreage on the date on which the acreage was converted 
     to nonagricultural use shall--
       ``(i) be notified; and
       ``(ii) have 90 days from the date of the receipt of the 
     notification to transfer the base to 1 or more farms operated 
     by the grower.
       ``(E) Pool distribution.--
       ``(i) In general.--If transfers under subparagraphs (B) and 
     (C) cannot be accomplished during the periods specified in 
     those subparagraphs, the county committee of the Farm Service 
     Agency for the applicable county shall place the acreage base 
     in a pool for possible assignment to other farms.
       ``(ii) Acceptance of requests.--After providing reasonable 
     notice to farm owners, operators, and growers of record in 
     the county, the county committee shall accept requests from 
     owners, operators, and growers of record in the county.
       ``(iii) Assignment.--The county committee shall assign the 
     base acreage to other farms in the county that are eligible 
     and capable of accepting the base acreage, based on a random 
     selection from among the requests received under clause (ii).
       ``(F) Statewide reallocation.--
       ``(i) In general.--Any base acreage remaining unassigned 
     after the transfers and processes described in subparagraphs 
     (A) through (E) shall be made available to the State 
     committee of the Farm Service Agency for allocation among the 
     remaining county committees representing counties with farms 
     eligible for assignment of the base, based on a random 
     selection.

[[Page 29232]]

       ``(ii) Allocation.--Any county committee receiving base 
     acreage under this subparagraph shall allocate the base 
     acreage to eligible farms using the process described in 
     subparagraph (E).
       ``(G) Status of reassigned base.--After base acreage has 
     been reassigned in accordance with this subparagraph, the 
     base acreage shall--
       ``(i) remain on the farm; and
       ``(ii) be subject to the transfer provisions of paragraph 
     (1).''; and
       (2) in subsection (d)--
       (A) in paragraph (1)--
       (i) by inserting ``affected'' before ``crop-share owners'' 
     each place it appears; and
       (ii) by striking ``, and from the processing company 
     holding the applicable allocation for such shares,''; and
       (B) in paragraph (2), by striking ``based on'' and all that 
     follows through the end of subparagraph (B) and inserting 
     ``based on--
       ``(A) the number of acres of sugarcane base being 
     transferred; and
       ``(B) the pro rata amount of allocation at the processing 
     company holding the applicable allocation that equals the 
     contribution of the grower to allocation of the processing 
     company for the sugarcane base acreage being transferred.''.
       (h) Appeals.--Section 359i of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359ii) is amended--
       (1) in subsection (a), by inserting ``or 359g(d)'' after 
     ``359f''; and
       (2) by striking subsection (c).
       (i) Reallocating Sugar Quota Import Shortfalls.--Section 
     359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1359kk) is repealed.
       (j) Administration of Tariff Rate Quotas.--Part VII of 
     subtitle B of title III of the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1359aa) (as amended by subsection (i)) is 
     amended by adding at the end the following:

     ``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, at the beginning of the quota year, the Secretary shall 
     establish the tariff-rate quotas for raw cane sugar and 
     refined sugars (other than specialty sugar) at the minimum 
     necessary to comply with obligations under international 
     trade agreements that have been approved by Congress.
       ``(b) Adjustment.--
       ``(1) Before april 1.--Before April 1 of each fiscal year, 
     if there is an emergency shortage of sugar in the United 
     States market that is caused by a war, flood, hurricane, or 
     other natural disaster, or other similar event as determined 
     by the Secretary--
       ``(A) the Secretary shall take action to increase the 
     supply of sugar in accordance with sections 359c(b)(2) and 
     359e(b); and
       ``(B) if there is still a shortage of sugar in the United 
     States market, and marketing of domestic sugar has been 
     maximized, the Secretary may increase the tariff-rate quota 
     for refined sugars sufficient to accommodate the supply 
     increase, if the further increase will not threaten to result 
     in the forfeiture of sugar pledged as collateral for a loan 
     under section 156 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7272).
       ``(2) On or after april 1.--On or after April 1 of each 
     fiscal year--
       ``(A) the Secretary may take action to increase the supply 
     of sugar in accordance with sections 359c(b)(2) and 359e(b); 
     and
       ``(B) if there is still a shortage of sugar in the United 
     States market, and marketing of domestic sugar has been 
     maximized, the Secretary may increase the tariff-rate quota 
     for raw cane sugar if the further increase will not threaten 
     to result in the forfeiture of sugar pledged as collateral 
     for a loan under section 156 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7272).''.
       (k) Period of Effectiveness.--Part VII of subtitle B of 
     title III of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1359aa) (as amended by subsection (j)) is amended by 
     adding at the end the following:

     ``SEC. 359L. PERIOD OF EFFECTIVENESS.

       ``(a) In General.--This part shall be effective only for 
     the 2008 through 2012 crop years for sugar.
       ``(b) Transition.--The Secretary shall administer flexible 
     marketing allotments for sugar for the 2007 crop year for 
     sugar on the terms and conditions provided in this part as in 
     effect on the day before the date of enactment of this 
     section.''.
       (l) United States Membership in the International Sugar 
     Organization.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall work with the 
     Secretary of State to restore, to the maximum extent 
     practicable, United States membership in the International 
     Sugar Organization.

     SEC. 1505. SENSE OF THE SENATE REGARDING NAFTA SUGAR 
                   COORDINATION.

       It is the sense of the Senate that in order to improve the 
     operations of the North American Free Trade Agreement--
       (1) the United States Government and the Government of 
     Mexico should coordinate the operation of their respective 
     sugar policies; and
       (2) the United States Government should consult with the 
     Government of Mexico on policies to avoid disruptions of the 
     United States sugar market and the Mexican sugar market in 
     order to maximize the benefits of sugar policies for growers, 
     processors, and consumers of sugar in the United States and 
     Mexico.

                           Subtitle D--Dairy

     SEC. 1601. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

       (a) Support Activities.--During the period beginning on 
     January 1, 2008, and ending on December 31, 2012, the 
     Secretary shall support the price of cheddar cheese, butter, 
     and nonfat dry milk through the purchase of such products 
     made from milk produced in the United States.
       (b) Purchase Price.--To carry out subsection (a), the 
     Secretary shall purchase cheddar cheese, butter, and nonfat 
     dry milk at prices that are equivalent to--
       (1) in the case of cheddar cheese--
       (A) in blocks, not less than $1.13 per pound;
       (B) in barrels, not less than $1.10 per pound;
       (2) in the case of butter, not less than $1.05 per pound; 
     and
       (3) in the case of nonfat dry milk, not less than $0.80 per 
     pound.
       (c) Uniform Purchase Price.--The prices that the Secretary 
     pays for cheese, butter, or nonfat dry milk under this 
     section shall be uniform for all regions of the United 
     States.
       (d) Sales From Inventories.--
       (1) In general.--Except as provided in paragraph (2), in 
     the case of each commodity specified in subsection (b) that 
     is available for unrestricted use in inventories of the 
     Commodity Credit Corporation, the Secretary may sell the 
     commodity at the market prices prevailing for that commodity 
     at the time of sale.
       (2) Minimum amount.--The sale price described in paragraph 
     (1) may not be less than 110 percent of the minimum purchase 
     price specified in subsection (b) for that commodity.

     SEC. 1602. NATIONAL DAIRY MARKET LOSS PAYMENTS.

       (a) Definitions.--In this section:
       (1) Class i milk.--The term ``Class I milk'' means milk 
     (including milk components) classified as Class I milk under 
     a Federal milk marketing order.
       (2) Eligible production.--The term ``eligible production'' 
     means milk produced by a producer in a participating State.
       (3) Federal milk marketing order.--The term ``Federal milk 
     marketing order'' means an order issued under section 8c of 
     the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937.
       (4) Participating state.--The term ``participating State'' 
     means each State.
       (5) Producer.--The term ``producer'' means an individual or 
     entity that directly or indirectly (as determined by the 
     Secretary)--
       (A) shares in the risk of producing milk; and
       (B) makes contributions (including land, labor, management, 
     equipment, or capital) to the dairy farming operation of the 
     individual or entity that are at least commensurate with the 
     share of the individual or entity of the proceeds of the 
     operation.
       (b) Payments.--The Secretary shall offer to enter into 
     contracts with producers on a dairy farm located in a 
     participating State under which the producers receive 
     payments on eligible production.
       (c) Amount.--Payments to a producer under this section 
     shall be calculated by multiplying (as determined by the 
     Secretary)--
       (1) the payment quantity for the producer during the 
     applicable month established under subsection (d);
       (2) the amount equal to--
       (A) $16.94 per hundredweight; less
       (B) the Class I milk price per hundredweight in Boston 
     under the applicable Federal milk marketing order; by
       (3)(A) for the period beginning October 1, 2007, and ending 
     September 30, 2008, 34 percent;
       (B) for the period beginning October 1, 2008, and ending 
     August 31, 2012, 45 percent; and
       (C) for the period beginning September 1, 2012, and 
     thereafter, 34 percent.
       (d) Payment Quantity.--
       (1) In general.--Subject to paragraph (2), the payment 
     quantity for a producer during the applicable month under 
     this section shall be equal to the quantity of eligible 
     production marketed by the producer during the month.
       (2) Limitation.--
       (A) In general.--The payment quantity for all producers on 
     a single dairy operation for which the producers receive 
     payments under subsection (b) shall not exceed--
       (i) for the period beginning October 1, 2007, and ending 
     September 30, 2008, 2,400,000 pounds;
       (ii) for the period beginning October 1, 2008, and ending 
     August 31, 2012, 4,150,000 pounds; and
       (iii) effective beginning September 1, 2012, 2,400,000 
     pounds.
       (B) Standards.--For purposes of determining whether 
     producers are producers on separate dairy operations or a 
     single dairy operation, the Secretary shall apply the same 
     standards as were applied in implementing the dairy program 
     under section 805 of the Agriculture, Rural Development, Food

[[Page 29233]]

     and Drug Administration, and Related Agencies Appropriations 
     Act, 2001 (as enacted into law by Public Law 106-387; 114 
     Stat. 1549A-50).
       (3) Reconstitution.--The Secretary shall ensure that a 
     producer does not reconstitute a dairy operation for the sole 
     purpose of receiving additional payments under this section.
       (e) Payments.--A payment under a contract under this 
     section shall be made on a monthly basis not later than 60 
     days after the last day of the month for which the payment is 
     made.
       (f) Signup.--The Secretary shall offer to enter into 
     contracts under this section during the period beginning on 
     the date that is 90 days after the date of enactment of this 
     Act and ending on September 30, 2012.
       (g) Duration of Contract.--
       (1) In general.--Except as provided in paragraph (2), any 
     contract entered into by producers on a dairy farm under this 
     section shall cover eligible production marketed by the 
     producers on the dairy farm during the period starting with 
     the first day of month the producers on the dairy farm enter 
     into the contract and ending on September 30, 2012.
       (2) Violations.--If a producer violates the contract, the 
     Secretary may--
       (A) terminate the contract and allow the producer to retain 
     any payments received under the contract; or
       (B) allow the contract to remain in effect and require the 
     producer to repay a portion of the payments received under 
     the contract based on the severity of the violation.

     SEC. 1603. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY 
                   PROGRAMS.

       (a) Dairy Export Incentive Program.--Section 153(a) of the 
     Food Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended 
     by striking ``2007'' and inserting ``2012''.
       (b) Dairy Indemnity Program.--Section 3 of Public Law 90-
     484 (7 U.S.C. 450l) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 1604. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

       Section 113(e)(2) of the Dairy Production Stabilization Act 
     of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking ``2007'' 
     and inserting ``2012''.

     SEC. 1605. REVISION OF FEDERAL MARKETING ORDER AMENDMENT 
                   PROCEDURES.

       Section 8c of the Agricultural Adjustment Act (7 U.S.C. 
     608c), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended by striking 
     subsection (17) and inserting the following:
       ``(17) Provisions applicable to amendments.--
       ``(A) Applicability to amendments.--The provisions of this 
     section and section 8d applicable to orders shall be 
     applicable to amendments to orders.
       ``(B) Supplemental rules of practice.--
       ``(i) In general.--Not later than 60 days after the date of 
     enactment of this subparagraph, the Secretary shall issue, 
     using informal rulemaking, supplemental rules of practice to 
     define guidelines and timeframes for the rulemaking process 
     relating to amendments to orders.
       ``(ii) Issues.--At a minimum, the supplemental rules of 
     practice shall establish--

       ``(I) proposal submission requirements;
       ``(II) pre-hearing information session specifications;
       ``(III) written testimony and data request requirements;
       ``(IV) public participation timeframes; and
       ``(V) electronic document submission standards.

       ``(iii) Effective date.--The supplemental rules of practice 
     shall take effect not later than 120 days after the date of 
     enactment of this subparagraph, as determined by the 
     Secretary.
       ``(C) Hearing timeframes.--
       ``(i) In general.--Not more than 30 days after the receipt 
     of a proposal for an amendment hearing regarding a milk 
     marketing order, the Secretary shall--

       ``(I) issue a notice providing an action plan and expected 
     timeframes for completion of the hearing not more than 180 
     days after the date of the issuance of the notice;
       ``(II)(aa) issue a request for additional information to be 
     used by the Secretary in making a determination regarding the 
     proposal; and
       ``(bb) if the additional information is not provided to the 
     Secretary within the timeframe requested by the Secretary, 
     issue a denial of the request; or
       ``(III) issue a denial of the request.

       ``(ii) Notice.--A notice issued under clause (i)(I) shall 
     be individualized for each proceeding and take into 
     consideration--

       ``(I) the number of orders affected;
       ``(II) the complexity of issues involved; and
       ``(III) the extent of the analyses required by applicable 
     Executive orders (including Executive orders relating to 
     civil rights, regulatory flexibility, and economic impact).

       ``(iii) Recommended decisions.--A recommended decision on a 
     proposed amendment to an order shall be issued not later than 
     90 days after the deadline established after the hearing for 
     the submission of post-hearing briefs, unless otherwise 
     provided in the initial notice issued under clause (i)(I).
       ``(iv) Final decisions.--A final decision on a proposed 
     amendment to an order shall be issued not later than 60 days 
     after the deadline for submission of comments and exceptions 
     to the recommended decision issued under clause (ii), unless 
     otherwise provided in the initial notice issued under clause 
     (i)(I).
       ``(D) Industry assessments.--If the Secretary determines it 
     is necessary to improve or expedite rulemaking under this 
     subsection, the Secretary may impose an assessment on the 
     affected industry to supplement appropriated funds for the 
     procurement of service providers, such as court reporters.
       ``(E) Use of informal rulemaking.--The Secretary may use 
     rulemaking under section 553 of title 5, United States Code, 
     to amend orders, other than provisions of orders that 
     directly affecting milk prices.
       ``(F) Monthly feed and fuel costs for make allowances.--As 
     part of any hearing to adjust make allowances under marketing 
     orders, the Secretary shall--
       ``(i) determine the average monthly prices of feed and fuel 
     incurred by dairy producers in the relevant marketing area;
       ``(ii) consider the most recent monthly feed and fuel price 
     data available; and
       ``(iii) consider those prices in determining whether or not 
     to adjust make allowances.''.

     SEC. 1606. DAIRY FORWARD PRICING PROGRAM.

       (a) In General.--Section 23 of the Agricultural Adjustment 
     Act (7 U.S.C. 627), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937, is amended--
       (1) in the section heading, by striking ``PILOT'';
       (2) by striking subsection (a) and inserting the following:
       ``(a) Program Required.--The Secretary of Agriculture shall 
     establish a program under which milk producers and 
     cooperative associations of producers are authorized to 
     voluntarily enter into forward price contracts with milk 
     handlers.'';
       (3) in subsection (c)--
       (A) in the subsection heading, by striking ``Pilot''; and
       (B) in paragraph (1), by striking ``pilot'';
       (4) by striking subsections (d) and (e); and
       (5) by adding at the end the following:
       ``(d) Voluntary Program.--
       ``(1) In general.--A milk handler may not require 
     participation in a forward price contract as a condition of 
     the handler receiving milk from a producer or cooperative 
     association of producers.
       ``(2) Effect of nonparticipation.--A producer or 
     cooperative association that does not enter into a forward 
     price contract may continue to have milk priced under the 
     minimum payment provisions of the applicable milk marketing 
     order.
       ``(3) Complaints.--The Secretary shall--
       ``(A) investigate complaints made by producers or 
     cooperative associations of coercion by handlers to enter 
     into forward price contracts; and
       ``(B) if the Secretary finds evidence of coercion, take 
     appropriate action.
       ``(e) Duration.--No forward price contract under this 
     section may--
       ``(1) be entered into after September 30, 2012; or
       ``(2) may extend beyond September 30, 2015.''.
       (b) Conforming Amendments.--Section 23 of the Agricultural 
     Adjustment Act (7 U.S.C. 627), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, is amended 
     by striking ``cooperatives'' each place it appears in 
     subsections (b) and (c)(2) and inserting ``cooperative 
     associations of producers''.

     SEC. 1607. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING 
                   PROCEDURES FOR NONFAT DRY MILK.

       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 regarding Department of Agriculture reporting 
     procedures for nonfat dry milk and the impact of the 
     procedures on Federal milk marketing order minimum prices 
     during the period beginning on July 1, 2006, and ending on 
     the date of the enactment of this Act.

     SEC. 1608. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

       (a) Definition of ASCARR Institution.--In this section:
       (1) In general.--The term ``ASCARR Institution'' means a 
     public college or university offering a baccalaureate or 
     higher degree in the study of agriculture.
       (2) Exclusions.--The term ``ASCARR Institution'' does not 
     include an institution eligible to receive funds under--
       (A) the Act of July 2, 1862 (commonly known as the ``First 
     Morrill Act'') (7 U.S.C. 301 et seq.);
       (B) the Act of August 30, 1890 (commonly known as the 
     ``Second Morrill Act'') (7 U.S.C. 321 et seq.); or
       (C) the Equity in Educational Land-Grant Status Act of 1994 
     (Public Law 103-382; 7 U.S.C. 301 note).
       (b) Establishment.--Subject to the availability of funds 
     appropriated to carry out this section, the Secretary shall 
     establish a commission to be known as the ``Federal Milk 
     Marketing Order Review Commission'' (referred to in this 
     section as the ``Commission''), which shall conduct a 
     comprehensive review and evaluation of--

[[Page 29234]]

       (1) the Federal milk marketing order system in effect on 
     the date of enactment of this Act; and
       (2) non-Federal milk marketing order systems.
       (c) Elements of Review and Evaluation.--As part of the 
     review and evaluation under subsection (b), the Commission 
     shall consider legislative and regulatory options for--
       (1) ensuring that the competitiveness of dairy products 
     with other competing products in the marketplace is preserved 
     and enhanced;
       (2) enhancing the competitiveness of United States dairy 
     producers in world markets;
       (3) increasing the responsiveness of the Federal milk 
     marketing order system to market forces;
       (4) streamlining and expediting the process by which 
     amendments to Federal milk market orders are adopted;
       (5) simplifying the Federal milk marketing order system;
       (6) evaluating whether the Federal milk marketing order 
     system, established during the Great Depression, continues to 
     serve the interests of the public, dairy processors, and 
     dairy producers;
       (7) evaluating whether Federal milk marketing orders are 
     operating in a manner to minimize costs to taxpayers and 
     consumers;
       (8) evaluating the nutritional composition of milk, 
     including the potential benefits and costs of adjusting the 
     milk content standards;
       (9) evaluating the economic benefits to milk producers of 
     establishing a 2-class system of classifying milk consisting 
     of a fluid milk class and a manufacturing grade milk class, 
     with the price of both classes determined using the component 
     prices of butterfat, protein, and other solids; and
       (10) evaluating a change in advance pricing that is used to 
     calculate the advance price of Class II skim milk under 
     Federal milk marketing orders using the 4-week component 
     prices that are used to calculate prices for Class III and 
     Class IV milk.
       (d) Membership.--
       (1) Composition.--The Commission shall consist of 18 
     members.
       (2) Members.--As soon as practicable after the date on 
     which funds are first made available to carry out this 
     section--
       (A) 2 members of the Commission shall be appointed by the 
     Chairman of the Committee on Agriculture of the House of 
     Representatives, in consultation with the ranking member of 
     the Committee on Agriculture of the House of Representatives;
       (B) 2 members of the Commission shall be appointed by the 
     Chairman of the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate, in consultation with the ranking 
     member of the Committee on Agriculture, Nutrition and 
     Forestry of the Senate; and
       (C) 14 members of the Commission shall be appointed by the 
     Secretary.
       (3) Special appointment requirements.--In the case of 
     members of the Commission appointed under paragraph (2)(C), 
     the Secretary shall ensure that--
       (A) at least 1 member represents a national consumer 
     organization;
       (B) at least 4 members represent land-grant colleges or 
     universities (as defined in section 1404 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3103)) or ASCARR institutions with accredited 
     dairy economic programs, with at least 2 of those members 
     being experts in the field of economics;
       (C) at least 1 member represents the food and beverage 
     retail sector; and
       (D) 4 dairy producers and 4 dairy processors are appointed 
     in a manner that will--
       (i) balance geographical distribution of milk production 
     and dairy processing;
       (ii) reflect all segments of dairy processing; and
       (iii) represent all regions of the United States equitably, 
     including States that operate outside of a Federal milk 
     marketing order.
       (4) Chair.--The Commission shall elect 1 of the members of 
     the Commission to serve as chairperson for the duration of 
     the proceedings of the Commission.
       (5) Vacancy.--Any vacancy occurring before the termination 
     of the Commission shall be filled in the same manner as the 
     original appointment.
       (6) Compensation.--A member of the Commission shall serve 
     without compensation, but shall be reimbursed by the 
     Secretary from existing budget authority for necessary and 
     reasonable expenses incurred in the performance of the duties 
     of the Commission.
       (e) Report.--
       (1) In general.--Not later than 2 years after the date of 
     the first meeting of the Commission, the Commission shall 
     submit to Congress and the Secretary a report describing the 
     results of the review and evaluation conducted under this 
     section, including such recommendations regarding the 
     legislative and regulatory options considered under 
     subsection (c) as the Commission considers to be appropriate.
       (2) Support.--The report findings shall reflect, to the 
     maximum extent practicable, a consensus opinion of the 
     Commission members, but the report may include majority and 
     minority findings regarding those matters for which consensus 
     was not reached.
       (f) Advisory Nature.--The Commission is wholly advisory in 
     nature and the recommendations of the Commission are 
     nonbinding.
       (g) No Effect on Existing Programs.--The Secretary shall 
     not allow the existence of the Commission to impede, delay, 
     or otherwise affect any decisionmaking process of the 
     Department of Agriculture, including any rulemaking 
     procedures planned, proposed, or near completion.
       (h) Administrative Assistance.--The Secretary shall provide 
     such administrative support to the Commission, and expend 
     such funds as necessary from budget authority available to 
     the Secretary, as is necessary to carry out this section.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (j) Termination of Effectiveness.--The authority provided 
     by this section terminates effective on the date of the 
     submission of the report under subsection (e).

     SEC. 1609. MANDATORY REPORTING OF DAIRY COMMODITIES.

       Section 273 of the Agricultural Marketing Act of 1946 (7 
     U.S.C. 1637b) is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Daily Reporting.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Food and Energy Security Act of 2007, the 
     Secretary shall require corporate officers or officially-
     designated representatives of each dairy processor to report 
     to the Secretary on each daily reporting day designated by 
     the Secretary, not later than 10:00 a.m. Central Time, for 
     each sales transaction involving a dairy commodity, 
     information concerning--
       ``(A) the sales price;
       ``(B) the quantity sold;
       ``(C) the location of the sales transaction; and
       ``(D) product characteristics, including--
       ``(i) moisture level;
       ``(ii) packaging size;
       ``(iii) grade;
       ``(iv) if appropriate, fat, protein, or other component 
     level;
       ``(v) heat level for dried products; and
       ``(vi) other defining product characteristics used in 
     transactions.
       ``(2) Publication.--The Secretary shall make the 
     information reported under paragraph (1) available to the 
     public not less frequently than once each reporting day, 
     categorized by location and product characteristics.
       ``(3) Federal order prices.--If the Secretary uses dairy 
     product prices to establish minimum prices in accordance with 
     section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(5)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, the Secretary shall use 
     daily prices published under paragraph (2) to determine such 
     prices.
       ``(4) Exemption for small processors.--A processor that 
     processes 1,000,000 pounds of milk or less per year shall be 
     exempt from daily reporting requirements under this 
     subsection.''; and
       (2) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.

                       Subtitle E--Administration

     SEC. 1701. ADMINISTRATION GENERALLY.

       (a) Use of Commodity Credit Corporation.--Except as 
     otherwise provided in subtitles A through D and this 
     subtitle, the Secretary shall use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to carry out 
     subtitles A through D and this subtitle.
       (b) Determinations by Secretary.--A determination made by 
     the Secretary under this title shall be final and conclusive.
       (c) Regulations.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary and the Commodity 
     Credit Corporation, as appropriate, shall promulgate such 
     regulations as are necessary to implement this title and the 
     amendments made by this title.
       (2) Procedure.--The promulgation of the regulations and 
     administration of this title and the amendments made by this 
     title shall be made without regard to--
       (A) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'');
       (B) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (C) the notice and comment provisions of section 553 of 
     title 5, United States Code.
       (3) Congressional review of agency rulemaking.--In carrying 
     out this subsection, the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.
       (d) Adjustment Authority Related to Trade Agreements 
     Compliance.--
       (1) Required determination; adjustment.--If the Secretary 
     determines that expenditures under subtitles A through D and 
     this subtitle that are subject to the total allowable 
     domestic support levels under the Uruguay Round Agreements 
     (as defined in section 2 of the Uruguay Round Agreements

[[Page 29235]]

     Act (19 U.S.C. 3501)) will exceed such allowable levels for 
     any applicable reporting period, the Secretary shall, to the 
     maximum extent practicable, make adjustments in the amount of 
     such expenditures during that period to ensure that such 
     expenditures do not exceed such allowable levels.
       (2) Congressional notification.--Before making any 
     adjustment under paragraph (1), the Secretary shall submit to 
     the Committee on Agriculture of the House of Representatives 
     or the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report describing the determination made under 
     that paragraph and the extent of the adjustment to be made.
       (e) Treatment of Advance Payment Option.--Section 1601(d) 
     of the Farm Security and Rural Investment Act of 2002 (7 
     U.S.C. 7991(d)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) the advance payment of direct payments and counter-
     cyclical payments under title I of the Food and Energy 
     Security Act of 2007.''.

     SEC. 1702. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

       (a) Agricultural Adjustment Act of 1938.--The following 
     provisions of the Agricultural Adjustment Act of 1938 shall 
     not be applicable to the 2008 through 2012 crops of covered 
     commodities and sugar and shall not be applicable to milk 
     during the period beginning on the date of enactment of this 
     Act through December 31, 2012:
       (1) Parts II through V of subtitle B of title III (7 U.S.C. 
     1326 et seq.).
       (2) In the case of upland cotton, section 377 (7 U.S.C. 
     1377).
       (3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
       (4) Title IV (7 U.S.C. 1401 et seq.).
       (b) Agricultural Act of 1949.--The following provisions of 
     the Agricultural Act of 1949 shall not be applicable to the 
     2008 through 2012 crops of covered commodities and sugar and 
     shall not be applicable to milk during the period beginning 
     on the date of enactment of this Act and through December 31, 
     2012:
       (1) Section 101 (7 U.S.C. 1441).
       (2) Section 103(a) (7 U.S.C. 1444(a)).
       (3) Section 105 (7 U.S.C. 1444b).
       (4) Section 107 (7 U.S.C. 1445a).
       (5) Section 110 (7 U.S.C. 1445e).
       (6) Section 112 (7 U.S.C. 1445g).
       (7) Section 115 (7 U.S.C. 1445k).
       (8) Section 201 (7 U.S.C. 1446).
       (9) Title III (7 U.S.C. 1447 et seq.).
       (10) Title IV (7 U.S.C. 1421 et seq.), other than sections 
     404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
       (11) Title V (7 U.S.C. 1461 et seq.).
       (12) Title VI (7 U.S.C. 1471 et seq.).
       (c) Suspension of Certain Quota Provisions.--The joint 
     resolution entitled ``A joint resolution relating to corn and 
     wheat marketing quotas under the Agricultural Adjustment Act 
     of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 
     and 1340), shall not be applicable to the crops of wheat 
     planted for harvest in the calendar years 2008 through 2012.

     SEC. 1703. PAYMENT LIMITATIONS.

       (a) Extension of Limitations.--Sections 1001 and 1001C(a) 
     of the Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) 
     are amended by striking ``Farm Security and Rural Investment 
     Act of 2002'' each place it appears and inserting ``Food and 
     Energy Security Act of 2007''.
       (b) Revision of Limitations.--
       (1) Definitions.--Section 1001(a) of the Food Security Act 
     of 1985 (7 U.S.C. 1308) is amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and section 1001A'' after ``section'';
       (B) by striking paragraph (2) and redesignating paragraph 
     (3) as paragraph (5); and
       (C) by inserting after paragraph (1) the following:
       ``(2) Family member.--The term `family member' means an 
     individual to whom a member in the farming operation is 
     related as lineal ancestor, lineal descendant, sibling, or 
     spouse.
       ``(3) Legal entity.--The term `legal entity' means an 
     entity that is created under Federal or State law and that--
       ``(A) owns land or an agricultural commodity; or
       ``(B) produces an agricultural commodity.
       ``(4) Person.--The term `person' means a natural person, 
     and does not include a legal entity.''.
       (2) Limitation on direct payments and counter-cyclical 
     payments.--Section 1001 of the Food Security Act of 1985 (7 
     U.S.C. 1308) is amended by striking subsections (b), (c) and 
     (d) and inserting the following:
       ``(b) Limitation on Direct and Counter-Cyclical Payments 
     for Covered Commodities (other Than Peanuts).--
       ``(1) Direct payments.--The total amount of direct payments 
     received, directly or indirectly, by a person or legal entity 
     (except a joint venture or a general partnership) for any 
     crop year under part I of subtitle A of title I of the Food 
     and Energy Security Act of 2007 for 1 or more covered 
     commodities (except for peanuts), or average crop revenue 
     payments determined under section 1401(b)(2) of that Act, may 
     not exceed $40,000.
       ``(2) Counter-cyclical payments.--The total amount of 
     counter-cyclical payments received, directly or indirectly, 
     by a person or legal entity (except a joint venture or a 
     general partnership) for any crop year under part I of 
     subtitle A of title I of the Food and Energy Security Act of 
     2007 for one or more covered commodities (except for 
     peanuts), or average crop revenue payments determined under 
     section 1401(b)(3) of that Act, may not exceed $60,000.
       ``(c) Limitation on Direct Payments and Counter-Cyclical 
     Payments for Peanuts.--
       ``(1) Direct payments.--The total amount of direct payments 
     received, directly or indirectly, by a person or legal entity 
     (except a joint venture or a general partnership) for any 
     crop year under part III of subtitle A of title I of the Food 
     and Energy Security Act of 2007 for peanuts, or average crop 
     revenue payments determined under section 1401(b)(2) of that 
     Act, may not exceed $40,000.
       ``(2) Counter-cyclical payments.--The total amount of 
     counter-cyclical payments received, directly or indirectly, 
     by a person or legal entity (except a joint venture or a 
     general partnership) for any crop year under part III of 
     subtitle A of title I of the Food and Energy Security Act of 
     2007 for peanuts, or average crop revenue payments determined 
     under section 1401(b)(3) of that Act, may not exceed 
     $60,000.''.
       ``(d) Limitation on Applicability.--Nothing in this section 
     authorizes any limitation on any benefit associated with the 
     marketing assistance loan program or the loan deficiency 
     payment program under title I of the Food and Energy Security 
     Act of 2007.''.
       (3) Direct attribution.--Section 1001 of the Food Security 
     Act of 1985 (7 U.S.C. 1308) is amended by striking subsection 
     (e) and redesignating subsections (f) and (g) as (g) and (h), 
     respectively, and inserting the following:
       ``(e) Attribution of Payments.--
       ``(1) In general.--In implementing subsections (b) and (c) 
     and a program described in section 1001D(b)(2)(C), the 
     Secretary shall issue such regulations as are necessary to 
     ensure that the total amount of payments are attributed to a 
     person by taking into account the direct and indirect 
     ownership interests of the person in a legal entity that is 
     eligible to receive the payments.
       ``(2) Payments to a person.--Each payment made directly to 
     a person shall be combined with the pro rata interest of the 
     person in payments received by a legal entity in which the 
     person has a direct or indirect ownership interest unless the 
     payments of the legal entity have been reduced by the pro 
     rata share of the person.
       ``(3) Payments to a legal entity.--
       ``(A) In general.--Each payment made to a legal entity 
     shall be attributed to those persons who have a direct or 
     indirect ownership interest in the legal entity unless the 
     payment to the legal entity has been reduced by the pro rata 
     share of the person.
       ``(B) Attribution of payments.--
       ``(i) Payment limits.--Except as provided in clause (ii), 
     payments made to a legal entity shall not exceed the amounts 
     specified in subsections (b) and (c).
       ``(ii) Exception for joint ventures and general 
     partnerships.--Payments made to a joint venture or a general 
     partnership shall not exceed, for each payment specified in 
     subsections (b) and (c), the amount determined by multiplying 
     the maximum payment amount specified in subsections (b) and 
     (c) by the number of persons and legal entities (other than 
     joint ventures and general partnerships) that comprise the 
     ownership of the joint venture or general partnership.
       ``(iii) Reduction.--Payments made to a legal entity shall 
     be reduced proportionately by an amount that represents the 
     direct or indirect ownership in the legal entity by any 
     individual or legal entity that has otherwise exceeded the 
     applicable maximum payment limitation.
       ``(4) 4 levels of attribution for embedded legal 
     entities.--
       ``(A) In general.--Attribution of payments made to legal 
     entities shall be traced through 4 levels of ownership in 
     legal entities.
       ``(B) First level.--Any payments made to a legal entity (a 
     first-tier legal entity) that is owned in whole or in part by 
     a person shall be attributed to the person in an amount that 
     represents the direct ownership in the first-tier legal 
     entity by the person.
       ``(C) Second level.--
       ``(i) In general.--Any payments made to a first-tier legal 
     entity that is owned (in whole or in part) by another legal 
     entity (a second-tier legal entity) shall be attributed to 
     the second-tier legal entity in proportion to the ownership 
     of the second-tier legal entity in the first-tier legal 
     entity.
       ``(ii) Ownership by a person.--If the second-tier legal 
     entity is owned (in whole or in part) by a person, the amount 
     of the payment made to the first-tier legal entity shall be 
     attributed to the person in the amount that represents the 
     indirect ownership in the first-tier legal entity by the 
     person.
       ``(D) Third and fourth levels.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Secretary shall attribute payments at the third and fourth 
     tiers of ownership in the same manner as specified in 
     subparagraph (C).

[[Page 29236]]

       ``(ii) Fourth-tier ownership.--If the fourth-tier of 
     ownership is that of a fourth-tier legal entity and not that 
     of a person, the Secretary shall reduce the amount of the 
     payment to be made to the first-tier legal entity in the 
     amount that represents the indirect ownership in the first-
     tier legal entity by the fourth-tier legal entity.
       ``(f) Special Rules.--
       ``(1) Minor children.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     payments received by a child under the age of 18 shall be 
     attributed to the parents of the child.
       ``(B) Regulations.--The Secretary shall issue regulations 
     specifying the conditions under which payments received by a 
     child under the age of 18 will not be attributed to the 
     parents of the child.
       ``(2) Marketing cooperatives.--Subsections (b) and (c) 
     shall not apply to a cooperative association of producers 
     with respect to commodities produced by the members of the 
     association that are marketed by the association on behalf of 
     the members of the association but shall apply to the 
     producers as persons.
       ``(3) Trusts and estates.--
       ``(A) In general.--With respect to irrevocable trusts and 
     estates, the Secretary shall administer this section through 
     section 1001F in such manner as the Secretary determines will 
     ensure the fair and equitable treatment of the beneficiaries 
     of the trusts and estates.
       ``(B) Irrevocable trust.--
       ``(i) In general.--In order for a trust to be considered an 
     irrevocable trust, the terms of the trust agreement shall 
     not--

       ``(I) allow for modification or termination of the trust by 
     the grantor;
       ``(II) allow for the grantor to have any future, 
     contingent, or remainder interest in the corpus of the trust; 
     or
       ``(III) except as provided in clause (ii), provide for the 
     transfer of the corpus of the trust to the remainder 
     beneficiary in less than 20 years beginning on the date the 
     trust is established.

       ``(ii) Exception.--Clause (i)(III) shall not apply in a 
     case in which the transfer is--

       ``(I) contingent on the remainder beneficiary achieving at 
     least the age of majority; or
       ``(II) is contingent on the death of the grantor or income 
     beneficiary.

       ``(C) Revocable trust.--For the purposes of this section 
     through section 1001F, a revocable trust shall be considered 
     to be the same person as the grantor of the trust.
       ``(4) Cash rent tenants.--
       ``(A) Definition.--In this paragraph, the term `cash rent 
     tenant' means a person or legal entity that rents land--
       ``(i) for cash; or
       ``(ii) for a crop share guaranteed as to the amount of the 
     commodity to be paid in rent.
       ``(B) Restriction.--A cash rent tenant who makes a 
     significant contribution of active personal management, but 
     not of personal labor, with respect to a farming operation 
     shall be eligible to receive a payment described in 
     subsection (b) or (c) only if the tenant makes a significant 
     contribution of equipment to the farming operation.
       ``(5) Federal agencies.--
       ``(A) In general.--A Federal agency shall not be eligible 
     to receive any payment described in subsection (b) or (c).
       ``(B) Land rental.--A lessee of land owned by a Federal 
     agency may receive a payment described in subsection (b) or 
     (c) if the lessee otherwise meets all applicable criteria.
       ``(6) State and local governments.--
       ``(A) In general.--Except as provided in subsection (g), a 
     State or local government, or political subdivision or agency 
     of the government, shall not be eligible to receive a payment 
     described in subsection (b) or (c).
       ``(B) Tenants.--A lessee of land owned by a State or local 
     government, or political subdivision or agency of the 
     government, may receive payments described in subsections (b) 
     and (c) if the lessee otherwise meet all applicable criteria.
       ``(7) Changes in farming operations.--
       ``(A) In general.--In the administration of this section 
     through section 1001F, the Secretary may not approve any 
     change in a farming operation that otherwise will increase 
     the number of persons to which the limitations under this 
     section are applied unless the Secretary determines that the 
     change is bona fide and substantive.
       ``(B) Family members.--The addition of a family member to a 
     farming operation under the criteria set out in section 1001A 
     shall be considered a bona fide and substantive change in the 
     farming operation.
       ``(8) Death of owner.--
       ``(A) In general.--If any ownership interest in land or a 
     commodity is transferred as the result of the death of a 
     program participant, the new owner of the land or commodity 
     may, if the person is otherwise eligible to participate in 
     the applicable program, succeed to the contract of the prior 
     owner and receive payments subject to this section without 
     regard to the amount of payments received by the new owner.
       ``(B) Limitations on prior owner.--Payments made under this 
     paragraph shall not exceed the amount to which the previous 
     owner was entitled to receive under the terms of the contract 
     at the time of the death of the prior owner.''.
       (c) Repeal of 3-Entity Rule.--Section 1001A of the Food 
     Security Act of 1985 (7 U.S.C. 1308-1) is amended--
       (1) in the section heading, by striking ``PREVENTION OF 
     CREATION OF ENTITIES TO QUALIFY AS SEPARATE PERSONS'' and 
     inserting ``NOTIFICATION OF INTERESTS''; and
       (2) by striking subsection (a) and inserting the following:
       ``(a) Notification of Interests.--To facilitate 
     administration of section 1001 and this section, each person 
     or legal entity receiving payments described in subsections 
     (b) and (c) of section 1001 as a separate person or legal 
     entity shall separately provide to the Secretary, at such 
     times and in such manner as prescribed by the Secretary--
       ``(1) the name and social security number of each 
     individual, or the name and taxpayer identification number of 
     each legal entity, that holds or acquires an ownership 
     interest in the separate person or legal entity; and
       ``(2) the name and taxpayer identification number of each 
     legal entity in which the person or legal entity holds an 
     ownership interest.''.
       (d) Amendment for Consistency.--Section 1001A of the Food 
     Security Act of 1985 (7 U.S.C. 1308-1) is amended by striking 
     subsection (b) and inserting the following:
       ``(b) Actively Engaged.--
       ``(1) In general.--To be eligible to receive a payment 
     described in subsection (b) or (c) of section 1001, a person 
     or legal entity shall be actively engaged in farming with 
     respect to a farming operation as provided in this subsection 
     or subsection (c).
       ``(2) Classes actively engaged.--Except as provided in 
     subsections (c) and (d)--
       ``(A) a person (including a person participating in a 
     farming operation as a partner in a general partnership, a 
     participant in a joint venture, a grantor of a revocable 
     trust, or a participant in a similar entity, as determined by 
     the Secretary) shall be considered to be actively engaged in 
     farming with respect to a farming operation if--
       ``(i) the person makes a significant contribution (based on 
     the total value of the farming operation) to the farming 
     operation of--

       ``(I) capital, equipment, or land; and
       ``(II) personal labor or active personal management;

       ``(ii) the person's share of the profits or losses from the 
     farming operation is commensurate with the contributions of 
     the person to the farming operation; and
       ``(iii) the contributions of the person are at risk;
       ``(B) a legal entity that is a corporation, joint stock 
     company, association, limited partnership, charitable 
     organization, or other similar entity determined by the 
     Secretary (including any such legal entity participating in 
     the farming operation as a partner in a general partnership, 
     a participant in a joint venture, a grantor of a revocable 
     trust, or as a participant in a similar legal entity as 
     determined by the Secretary) shall be considered as actively 
     engaged in farming with respect to a farming operation if--
       ``(i) the legal entity separately makes a significant 
     contribution (based on the total value of the farming 
     operation) of capital, equipment, or land;
       ``(ii) the stockholders or members collectively make a 
     significant contribution of personal labor or active personal 
     management to the operation; and
       ``(iii) the standards provided in clauses (ii) and (iii) of 
     subparagraph (A), as applied to the legal entity, are met by 
     the legal entity;
       ``(C) if a legal entity that is a general partnership, 
     joint venture, or similar entity, as determined by the 
     Secretary, separately makes a significant contribution (based 
     on the total value of the farming operation involved) of 
     capital, equipment, or land, and the standards provided in 
     clauses (ii) and (iii) of subparagraph (A), as applied to the 
     legal entity, are met by the legal entity, the partners or 
     members making a significant contribution of personal labor 
     or active personal management shall be considered to be 
     actively engaged in farming with respect to the farming 
     operation involved; and
       ``(D) in making determinations under this subsection 
     regarding equipment and personal labor, the Secretary shall 
     take into consideration the equipment and personal labor 
     normally and customarily provided by farm operators in the 
     area involved to produce program crops.
       ``(c) Special Classes Actively Engaged.--
       ``(1) Landowner.--A person or legal entity that is a 
     landowner contributing the owned land to a farming operation 
     shall be considered to be actively engaged in farming with 
     respect to the farming operation if--
       ``(A) the landowner receives rent or income for the use of 
     the land based on the production on the land or the operating 
     results of the operation; and
       ``(B) the person or legal entity meets the standards 
     provided in clauses (ii) and (iii) of subsection (b)(2)(A).
       ``(2) Adult family member.--If a majority of the 
     participants in a farming operation are family members, an 
     adult family member shall be considered to be actively 
     engaged in farming with respect to the farming operation if 
     the person--
       ``(A) makes a significant contribution, based on the total 
     value of the farming operation, of active personal management 
     or personal labor; and

[[Page 29237]]

       ``(B) with respect to such contribution, meets the 
     standards provided in clauses (ii) and (iii) of subsection 
     (b)(2)(A).
       ``(3) Sharecropper.--A sharecropper who makes a significant 
     contribution of personal labor to a farming operation shall 
     be considered to be actively engaged in farming with respect 
     to the farming operation if the contribution meets the 
     standards provided in clauses (ii) and (iii) of subsection 
     (b)(2)(A).
       ``(4) Growers of hybrid seed.--In determining whether a 
     person or legal entity growing hybrid seed under contract 
     shall be considered to be actively engaged in farming, the 
     Secretary shall not take into consideration the existence of 
     a hybrid seed contract.
       ``(5) Custom farming services.--
       ``(A) In general.--A person or legal entity receiving 
     custom farming services shall be considered separately 
     eligible for payment limitation purposes if the person or 
     legal entity is actively engaged in farming based on 
     subsection (b)(2) or paragraphs (1) through (4) of this 
     subsection.
       ``(B) Prohibition.--No other rules with respect to custom 
     farming shall apply.
       ``(6) Spouse.--If 1 spouse (or estate of a deceased spouse) 
     is determined to be actively engaged, the other spouse shall 
     be determined to have met the requirements of subsection 
     (b)(2)(A)(i)(II).
       ``(d) Classes Not Actively Engaged.--
       ``(1) Cash rent landlord.--A landlord contributing land to 
     a farming operation shall not be considered to be actively 
     engaged in farming with respect to the farming operation if 
     the landlord receives cash rent, or a crop share guaranteed 
     as to the amount of the commodity to be paid in rent, for the 
     use of the land.
       ``(2) Other persons and legal entities.--Any other person 
     or legal entity that the Secretary determines does not meet 
     the standards described in subsections (b)(2) and (c) shall 
     not be considered to be actively engaged in farming with 
     respect to a farming operation.''.
       (e) Denial of Program Benefits.--Section 1001B of the Food 
     Security Act of 1985 (7 U.S.C. 1308-2) is amended to read as 
     follows:

     ``SEC. 1001B. DENIAL OF PROGRAM BENEFITS.

       ``(a) 2-Year Denial of Program Benefits.--A person or legal 
     entity shall be ineligible to receive payments specified in 
     subsections (b) and (c) of section 1001 for the crop year, 
     and the succeeding crop year, in which the Secretary 
     determines that the person or legal entity--
       ``(1) failed to comply with section 1001A(b) and adopted or 
     participated in adopting a scheme or device to evade the 
     application of section 1001, 1001A, or 1001C; or
       ``(2) intentionally concealed the interest of the person or 
     legal entity in any farm or legal entity engaged in farming.
       ``(b) Extended Ineligibility.--If the Secretary determines 
     that a person or legal entity, for the benefit of the person 
     or legal entity or the benefit of any other person or legal 
     entity, has knowingly engaged in, or aided in the creation of 
     a fraudulent document, presented false information that was 
     material and relevant to the administration of sections 1001 
     through 1001F, or committed other equally serious actions (as 
     identified in regulations issued by the Secretary), the 
     Secretary may for a period not to exceed 5 crop years deny 
     the issuance of payments to the person or legal entity.
       ``(c) Pro Rata Denial.--
       ``(1) In general.--Payments otherwise owed to a person or 
     legal entity described in subsections (a) or (b) shall be 
     denied in a pro rata manner based on the ownership interest 
     of the person or legal entity in a farm.
       ``(2) Cash rent tenant.--Payments otherwise payable to the 
     person or legal entity described in subsection (a) or (b) who 
     is a cash rent tenant on a farm owned or under the control of 
     the person or legal entity shall be denied.
       ``(d) Joint and Several Liability.--Any member of any legal 
     entity (including partnerships and joint ventures) determined 
     to have knowingly participated in a scheme or device to 
     evade, or that has the purpose of evading, sections 1001, 
     1001A, or 1001C shall be jointly and severally liable for any 
     amounts that are payable to the Secretary as the result of 
     the scheme or device (including amounts necessary to recover 
     those amounts).
       ``(e) Release.--The Secretary may partially or fully 
     release from liability any person or legal entity who 
     cooperates with the Secretary in enforcing sections 1001, 
     1001A, and 1001C, and this section.''.
       (f) Conforming Amendments.--
       (1) Section 1009(e) of the Food Security Act of 1985 (7 
     U.S.C. 1308a(e)) is amended in the second sentence by 
     striking ``of $50,000''.
       (2) Section 609(b)(1) of the Emergency Livestock Feed 
     Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by 
     inserting ``(before the amendment made by section 1703(a) of 
     the Food and Energy Security Act of 2007)'' after ``1985''.
       (3) Section 524(b)(3) of the Federal Crop Insurance Act (7 
     U.S.C. 1524(b)(3)) is amended by inserting ``(before the 
     amendment made by section 1703(a) of the Food and Energy 
     Security Act of 2007)'' after ``1308(5)))''.
       (4) Section 196(i) of the Federal Agriculture Improvement 
     and Reform Act of 1996 (7 U.S.C. 7333(i)) is amended in 
     paragraphs (1)(A) and (5) by inserting ``(before the 
     amendment made by section 1703(a) of the Food and Energy 
     Security Act of 2007)'' after ``1308)'' each place it 
     appears.
       (5) Section 10204(c)(1) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by 
     inserting ``(before the amendment made by section 1703(a) of 
     the Food and Energy Security Act of 2007)'' after ``1308)''.
       (6) Section 1271(c)(3)(A) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (16 U.S.C. 
     2106a(c)(3)(A)) is amended by inserting ``(before the 
     amendment made by section 1703(a) of the Food and Energy 
     Security Act of 2007)'' after ``1308)''.
       (7) Section 291(2) of the Trade Act of 1974 (19 U.S.C. 
     2401(2) is amended by inserting ``(before the amendment made 
     by section 1703(a) of the Food and Energy Security Act of 
     2007)'' before the period at the end.
       (g) Transition.--Section 1001, 1001A, and 1001B of the Food 
     Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in 
     effect on the day before the date of the enactment of this 
     Act, shall continue to apply with respect to the 2007 crop of 
     any covered commodity or peanuts.

     SEC. 1704. ADJUSTED GROSS INCOME LIMITATION.

       (a) Extension of Adjusted Gross Income Limitation.--Section 
     1001D(e) of the Food Security Act of 1985 (7 U.S.C. 1308-
     3a(e)) is amended by striking ``2007'' and inserting 
     ``2012''.
       (b) Allocation of Income.--Section 1001D(a) of the Food 
     Security Act of 1985 (7 U.S.C. 1308-3a(a)) is amended by 
     adding at the end the following:
       ``(3) Allocation of income.--On the request of any 
     individual filing a joint tax return, the Secretary shall 
     provide for the allocation of adjusted gross income among the 
     individuals filing the return based on a certified statement 
     provided by a certified public accountant or attorney 
     specifying the manner in which the income would have been 
     declared and reported if the individuals had filed 2 separate 
     returns, if the Secretary determines that the calculation is 
     consistent with the information supporting the filed joint 
     return.''.
       (c) Modification of Limitation.--Section 1001D of the Food 
     Security Act of 1985 (7 U.S.C. 1308-3a) is amended by 
     striking subsection (b) and inserting the following:
       ``(b) Limitation.--
       ``(1) Crop years.--
       ``(A) 2009 crop year.--Notwithstanding any other provision 
     of law, an individual or entity shall not be eligible to 
     receive any benefit described in paragraph (2)(A) during the 
     2009 crop year if the average adjusted gross income of the 
     individual or entity exceeds $1,000,000, unless not less than 
     66.66 percent of the average adjusted gross income of the 
     individual or entity is derived from farming, ranching, or 
     forestry operations, as determined by the Secretary.
       ``(B) 2010 and subsequent crop years.--Notwithstanding any 
     other provision of law, an individual or entity shall not be 
     eligible to receive any benefit described in paragraph (2)(A) 
     during any of the 2010 and subsequent crop years if the 
     average adjusted gross income of the individual or entity 
     exceeds $750,000, unless not less than 66.66 percent of the 
     average adjusted gross income of the individual or entity is 
     derived from farming, ranching, or forestry operations, as 
     determined by the Secretary.
       ``(C) Conservation programs.--Notwithstanding any other 
     provision of law, an individual or entity shall not be 
     eligible to receive any benefit described in paragraph (2)(B) 
     during a crop year if the average adjusted gross income of 
     the individual or entity exceeds $2,500,000, unless not less 
     than 75 percent of the average adjusted gross income of the 
     individual or entity is derived from farming, ranching, or 
     forestry operations, as determined by the Secretary.
       ``(2) Covered benefits.--
       ``(A) In general.--Subparagraphs (A) and (B) of paragraph 
     (1) apply with respect to the following:
       ``(i) A direct payment or counter-cyclical payment under 
     part I or III of subtitle A of title I of the Food and Energy 
     Security Act of 2007.
       ``(ii) A marketing loan gain or loan deficiency payment 
     under part II or III of subtitle A of title I of the Food and 
     Energy Security Act of 2007.
       ``(iii) An average crop revenue payment under subtitle B of 
     title I of Food and Energy Security Act of 2007.
       ``(B) Conservation programs.--Paragraph (1)(C) applies with 
     respect to a payment under any program under--
       ``(i) title XII of this Act;
       ``(ii) title II of the Farm Security and Rural Investment 
     Act of 2002 (Public Law 107-171; 116 Stat. 223); or
       ``(iii) title II of the Food and Energy Security Act of 
     2007.
       ``(3) Income derived from farming, ranching or forestry 
     operations.--In determining what portion of the average 
     adjusted gross income of an individual or entity is derived 
     from farming, ranching, or forestry operations, the Secretary 
     shall include income derived from--
       ``(A) the production of crops, livestock, or unfinished raw 
     forestry products;
       ``(B) the sale, including the sale of easements and 
     development rights, of farm,

[[Page 29238]]

     ranch, or forestry land or water or hunting rights;
       ``(C) the sale of equipment to conduct farm, ranch, or 
     forestry operations;
       ``(D) the rental or lease of land used for farming, 
     ranching, or forestry operations, including water or hunting 
     rights;
       ``(E) the provision of production inputs and services to 
     farmers, ranchers, and foresters;
       ``(F) the processing (including packing), storing 
     (including shedding), and transporting of farm, ranch, and 
     forestry commodities;
       ``(G) the sale of land that has been used for agriculture; 
     and
       ``(H) payments or other income attributable to benefits 
     received under any program authorized under title I or II of 
     the Food and Energy Security Act of 2007.''.
       (d) Transition.--Section 1001D of the Food Security Act of 
     1985 (7 U.S.C. 1308-3a), as in effect on the day before the 
     date of the enactment of this Act, shall continue to apply 
     with respect to the 2007 and 2008 crops of any covered 
     commodity or peanuts.

     SEC. 1705. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR 
                   CERTAIN PRODUCERS.

       (a) Incentive Payments Required.--Subject to subsection 
     (b), the Secretary shall use funds made available under 
     subsection (f) to provide quality incentive payments for the 
     production of oilseeds with specialized traits that enhance 
     human health, as determined by the Secretary.
       (b) Covered Oilseeds.--The Secretary shall make payments 
     under this section only for the production of an oilseed 
     variety that has, as determined by the Secretary--
       (1) been demonstrated to improve the health profile of the 
     oilseed for use in human consumption by--
       (A) reducing or eliminating the need to partially 
     hydrogenate the oil derived from the oilseed for use in human 
     consumption; or
       (B) adopting new technology traits; and
       (2) 1 or more impediments to commercialization.
       (c) Request for Proposals.--
       (1) Issuance.--If funds are made available to carry out 
     this section for a crop year, the Secretary shall issue a 
     request for proposals for payments under this section.
       (2) Multiyear proposals.--An entity may submit a multiyear 
     proposal for payments under this section.
       (3) Content of proposals.--A proposal for payments under 
     this section shall include a description of--
       (A) each oilseed variety described in subsection (b) and 
     the value of the oilseed variety as a matter of public 
     policy;
       (B) a range for the amount of total per bushel or 
     hundredweight premiums to be paid to producers;
       (C) a per bushel or hundredweight amount of incentive 
     payments requested for each year under this section that does 
     not exceed \1/3\ of the total premium offered for any year;
       (D) the period of time, not to exceed 4 years, during which 
     incentive payments are to be provided to producers; and
       (E) the targeted total quantity of production and estimated 
     acres needed to produce the targeted quantity for each year 
     under this section.
       (d) Contracts for Production.--
       (1) In general.--The Secretary shall approve successful 
     proposals submitted under subsection (c) on a timely basis so 
     as to allow production contracts to be entered into with 
     producers in advance of the spring planting season for the 
     2009 crop year.
       (2) Timing of payments.--The Secretary shall make payments 
     to producers under this section after the Secretary receives 
     documentation that the premium required under a contract has 
     been made to covered producers.
       (e) Administration.--If funding provided for a crop year is 
     not fully allocated under the initial request for proposals 
     under subsection (c), the Secretary shall issue additional 
     requests for proposals for subsequent crop years under this 
     section.
       (f) Proprietary Information.--The Secretary shall protect 
     proprietary information provided to the Secretary for the 
     purpose of administering this section.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $400,000,000 for 
     the period of fiscal years 2008 through 2012.

     SEC. 1706. HARD WHITE WHEAT DEVELOPMENT PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible hard white wheat seed.--The term ``eligible 
     hard white wheat seed'' means hard white wheat seed that, as 
     determined by the Secretary, is--
       (A) certified;
       (B) of a variety that is suitable for the State in which 
     the seed will be planted;
       (C) rated at least superior with respect to quality; and
       (D) specifically approved under a seed establishment 
     program established by the State Department of Agriculture 
     and the State Wheat Commission of the 1 or more States in 
     which the seed will be planted.
       (2) Program.--The term ``program'' means the hard white 
     wheat development program established under subsection 
     (b)(1).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, in consultation with the State Departments of 
     Agriculture and the State Wheat Commissions of the States in 
     regions in which hard white wheat is produced, as determined 
     by the Secretary.
       (b) Establishment.--
       (1) In general.--The Secretary shall establish a hard white 
     wheat development program in accordance with paragraph (2) to 
     promote the establishment of hard white wheat as a viable 
     market class of wheat in the United States by encouraging 
     production of at least 240,000,000 bushels of hard white 
     wheat by 2012.
       (2) Payments.--
       (A) In general.--Subject to subparagraphs (B) and (C) and 
     subsection (c), the Secretary shall make available incentive 
     payments to producers of each of the 2008 through 2012 crops 
     of hard white wheat.
       (B) Acreage limitation.--The Secretary shall carry out 
     subparagraph (A) subject to a regional limitation determined 
     by the Secretary on the number of acres for which payments 
     may be received that takes into account planting history and 
     potential planting, but does not exceed a total of 2,900,000 
     acres or the equivalent volume of production based on a yield 
     of 50 bushels per acre.
       (C) Payment limitations.--Payments to producers on a farm 
     described in subparagraph (A) shall be--
       (i) in an amount that is not less than $0.20 per bushel; 
     and
       (ii) in an amount that is not less than $2.00 per acre for 
     planting eligible hard white wheat seed.
       (c) Funding.--The Secretary shall make available 
     $35,000,000 of funds of the Commodity Credit Corporation 
     during the period of crop years 2008 through 2012 to provide 
     incentive payments to producers of hard white wheat under 
     this section.

     SEC. 1707. DURUM WHEAT QUALITY PROGRAM.

       (a) In General.--Subject to the availability of funds under 
     subsection (c), the Secretary shall provide compensation to 
     producers of durum wheat in an amount not to exceed 50 
     percent of the actual cost of fungicides applied to a crop of 
     durum wheat of the producers to control Fusarium head blight 
     (wheat scab) on acres certified to have been planted to Durum 
     wheat in a crop year.
       (b) Insufficient Funds.--If the total amount of funds 
     appropriated for a fiscal year under subsection (c) are 
     insufficient to fulfill all eligible requests for 
     compensation under this section, the Secretary shall prorate 
     the compensation payments in a manner determined by the 
     Secretary to be equitable.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2008 through 2012.

     SEC. 1708. STORAGE FACILITY LOANS.

       (a) In General.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall establish a 
     storage facility loan program to provide funds for producers 
     of grains, oilseeds, pulse crops, hay, renewable biomass, and 
     other storable commodities (other than sugar), as determined 
     by the Secretary, to construct or upgrade storage and 
     handling facilities for the commodities.
       (b) Eligible Producers.--A storage facility loan under this 
     section shall be made available to any producer described in 
     subsection (a) that, as determined by the Secretary--
       (1) has a satisfactory credit history;
       (2) has a need for increased storage capacity; and
       (3) demonstrates an ability to repay the loan.
       (c) Term of Loans.--A storage facility loan under this 
     section shall have a maximum term of 12 years.
       (d) Loan Amount.--The maximum principal amount of a storage 
     facility loan under this section shall be $500,000.
       (e) Loan Disbursements.--The Secretary shall provide for 
     partial disbursements of loan principal, as determined to be 
     appropriate and subject to acceptable documentation, to 
     facilitate the purchase and construction of eligible 
     facilities.
       (f) Loan Security.--Approval of a storage facility loan 
     under this section shall--
       (1) for loan amounts of less than $150,000, not require a 
     lien on the real estate parcel on which the storage facility 
     is locate;
       (2) for loan amounts equal to or more than $150,000, not 
     require a severance agreement from the holder of any prior 
     lien on the real estate parcel on which the storage facility 
     is located, if the borrower--
       (A) agrees to increase the down payment on the storage 
     facility loan by an amount determined appropriate by the 
     Secretary; or
       (B) provides other security acceptable to the Secretary; 
     and
       (3) allow a borrower, upon the approval of the Secretary, 
     to define a subparcel of real estate as security for the 
     storage facility loan if the subparcel is--
       (A) of adequate size and value to adequately secure the 
     loan; and
       (B) not subject to any other liens or mortgages that are 
     superior to the lien interest of the Commodity Credit 
     Corporation.

     SEC. 1709. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

       Section 164 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7284) is amended by striking 
     ``and title I of

[[Page 29239]]

     the Farm Security and Rural Investment Act of 2002'' each 
     place it appears and inserting ``title I of the Farm Security 
     and Rural Investment Act of 2002, and title I of the Food and 
     Energy Security Act of 2007''.

     SEC. 1710. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY 
                   REGARDING LOANS.

       Section 166 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7286) is amended in subsections 
     (a) and (c)(1) by striking ``and subtitle B and C of title I 
     of the Farm Security and Rural Investment Act of 2002'' each 
     place it appears and inserting ``title I of the Farm Security 
     and Rural Investment Act of 2002, and title I of the Food and 
     Energy Security Act of 2007''.

     SEC. 1711. ASSIGNMENT OF PAYMENTS.

       (a) In General.--The provisions of section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
     relating to assignment of payments, shall apply to payments 
     made under the authority of subtitles A through E and this 
     subtitle.
       (b) Notice.--The producer making the assignment, or the 
     assignee, shall provide the Secretary with notice, in such 
     manner as the Secretary may require, of any assignment made 
     under this section.

     SEC. 1712. COTTON CLASSIFICATION SERVICES.

       Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is 
     amended to read as follows:

     ``SEC. 3A. COTTON CLASSIFICATION SERVICES.

       ``(a) In General.--The Secretary of Agriculture (referred 
     to in this section as the `Secretary') shall--
       ``(1) make cotton classification services available to 
     producers of cotton; and
       ``(2) provide for the collection of classification fees 
     from participating producers or agents that voluntarily agree 
     to collect and remit the fees on behalf of producers.
       ``(b) Use of Fees.--Classification fees collected under 
     subsection (a)(2) and the proceeds from the sales of samples 
     submitted under this section shall, to the maximum extent 
     practicable, be used to pay the cost of the services provided 
     under this section, including administrative and supervisory 
     costs.
       ``(c) Consultation.--
       ``(1) In general.--In establishing the amount of fees under 
     this section, the Secretary shall consult with 
     representatives of the United States cotton industry.
       ``(2) Exemption.--The Federal Advisory Committee Act (5 
     U.S.C. App.) shall not apply to consultations with 
     representatives of the United States cotton industry under 
     this section.
       ``(d) Crediting of Fees.--Any fees collected under this 
     section and under section 3d, late payment penalties, the 
     proceeds from the sales of samples, and interest earned from 
     the investment of such funds shall--
       ``(1) be credited to the current appropriation account that 
     incurs the cost of services provided under this section and 
     section 3d; and
       ``(2) remain available without fiscal year limitation to 
     pay the expenses of the Secretary in providing those 
     services.
       ``(e) Investment of Funds.--Funds described in subsection 
     (d) may be invested--
       ``(1) by the Secretary in insured or fully collateralized, 
     interest-bearing accounts; or
       ``(2) at the discretion of the Secretary, by the Secretary 
     of the Treasury in United States Government debt instruments.
       ``(f) Lease Agreements.--Notwithstanding any other 
     provision of law, the Secretary may enter into long-term 
     lease agreements that exceed 5 years or may take title to 
     property (including through purchase agreements) for the 
     purpose of obtaining offices to be used for the 
     classification of cotton in accordance with this Act, if the 
     Secretary determines that action would best effectuate the 
     purposes of this Act.
       ``(g) Authorization of Appropriations.--To the extent that 
     financing is not available from fees and the proceeds from 
     the sales of samples, there are authorized to be appropriated 
     such sums as are necessary to carry out this section.''.

     SEC. 1713. DESIGNATION OF STATES FOR COTTON RESEARCH AND 
                   PROMOTION.

       Section 17(f) of the Cotton Research and Promotion Act (7 
     U.S.C. 2116(f)) is amended--
       (1) by striking ``(f) The term'' and inserting the 
     following:
       ``(f) Cotton-Producing State.--
       ``(1) In general.--The term'';
       (2) by striking ``more, and the term'' and all that follows 
     through the end of the subsection and inserting the 
     following: ``more.
       ``(2) Inclusions.--The term `cotton-producing State' 
     includes--
       ``(A) any combination of States described in paragraph (1); 
     and
       ``(B) effective beginning with the 2008 crop of cotton, the 
     States of Kansas, Virginia, and Florida.''.

     SEC. 1714. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.

       Section 15 of the Agricultural Marketing Act (12 U.S.C. 
     1141j) is amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsections (e) through (g) as 
     subsections (d) through (f), respectively.

     SEC. 1715. STATE, COUNTY, AND AREA COMMITTEES.

       Section 8(b)(5)(B)(ii) of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is 
     amended--
       (1) by redesignating subclauses (I) and (II) as items (aa) 
     and (bb), respectively, and indenting appropriately;
       (2) in the matter preceding item (aa) (as redesignated by 
     paragraph (1)), by striking ``A committee established'' and 
     inserting the following:

       ``(I) In general.--Except as provided in subclause (II), a 
     committee established''; and

       (3) by adding at the end the following:

       ``(II) Combination or consolidation of areas.--A committee 
     established by combining or consolidating 2 or more county or 
     area committees shall consist of not fewer than 3 nor more 
     than 11 members that--

       ``(aa) are fairly representative of the agricultural 
     producers within the area covered by the county, area, or 
     local committee; and
       ``(bb) are elected by the agricultural producers that 
     participate or cooperate in programs administered within the 
     area under the jurisdiction of the county, area, or local 
     committee.

       ``(III) Representation of socially disadvantaged farmers 
     and ranchers.--The Secretary shall ensure, to the extent 
     practicable, that representation of socially disadvantaged 
     farmers and ranchers is maintained on combined or 
     consolidated committees.
       ``(IV) Eligibility for membership.--Notwithstanding any 
     other producer eligibility requirements for service on county 
     or area committees, if a county or area is consolidated or 
     combined, a producer shall be eligible to serve only as a 
     member of the county or area committee that the producer 
     elects to administer the farm records of the producer.''.

     SEC. 1716. PROHIBITION ON CHARGING CERTAIN FEES.

       Public Law 108-470 (7 U.S.C. 7416a) is amended--
       (1) in subsection (a), by striking ``may'' and inserting 
     ``shall''; and
       (2) by adding at the end the following:
       ``(c) Prohibition on Charging Certain Fees.--The Secretary 
     may not charge any fees or related costs for the collection 
     of commodity assessments pursuant to this Act.''.

     SEC. 1717. SIGNATURE AUTHORITY.

       In carrying out this title and title II and amendments made 
     by those titles, if the Secretary approves a document 
     containing signatures of program applicants, the Secretary 
     shall not subsequently determine the document is inadequate 
     or invalid because of the lack of authority of any applicant 
     signing the document on behalf of the applicant or any other 
     individual, entity, general partnership, or joint venture, or 
     the documents relied upon were determined inadequate or 
     invalid, unless the applicant knowingly and willfully 
     falsified the evidence of signature authority or a signature.

     SEC. 1718. MODERNIZATION OF FARM SERVICE AGENCY.

       The Secretary shall modernize the Farm Service Agency 
     information technology and communication systems to ensure 
     timely and efficient program delivery at national, State, and 
     County offices.

     SEC. 1719. GEOSPATIAL SYSTEMS.

       (a) In General.--The Secretary shall ensure that all 
     agencies of the Department of Agriculture consolidate the 
     geospatial systems of the agencies into a single enterprise 
     system that ensures that geospatial data is shareable, 
     portable, and standardized.
       (b) Requirements.--In carrying out subsection (a), the 
     Secretary shall--
       (1) identify common datasets;
       (2) give responsibility for managing each identified 
     dataset to the agency best suited for collecting and 
     maintaining that data, as determined by the Secretary; and
       (3) make every effort to minimize the duplication of 
     efforts.
       (c) Availability of Data.--The Secretary shall ensure, to 
     the maximum extent practicable, that data is readily 
     available to all agencies beginning not later than 2 years 
     after the date of enactment of this Act.

     SEC. 1720. LEASING OFFICE SPACE.

       The Secretary may use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to lease 
     space for use by agencies of the Department of Agriculture in 
     cases in which office space would be jointly occupied by the 
     agencies.

     SEC. 1721. REPEALS.

       (a) Commission on Application of Payment Limitations.--
     Section 1605 of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 7993) is repealed.
       (b) Renewed Availability of Market Loss Assistance and 
     Certain Emergency Assistance to Persons That Failed To 
     Receive Assistance Under Earlier Authorities.--Section 1617 
     of the Farm Security and Rural Investment Act of 2002 (7 
     U.S.C. 8000) is repealed.

                  Subtitle F--Specialty Crop Programs

     SEC. 1801. DEFINITIONS.

       In this subtitle:
       (1) Specialty crop.--The term ``specialty crop'' has the 
     meaning given the term in section 3 of the Specialty Crops 
     Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 
     108-465).
       (2) State.--The term ``State'' means each of the several 
     States of the United States.

[[Page 29240]]

       (3) State department of agriculture.--The term ``State 
     department of agriculture'' means the agency, commission, or 
     department of a State government responsible for protecting 
     and promoting agriculture in the State.

             PART I--MARKETING, INFORMATION, AND EDUCATION

     SEC. 1811. FRUIT AND VEGETABLE MARKET NEWS ALLOCATION.

       (a) In General.--The Secretary, acting through the 
     Administrator of the Agricultural Marketing Service, shall 
     carry out market news activities to provide timely price 
     information of United States fruits and vegetables in the 
     United States.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $9,000,000 for 
     each of fiscal years 2008 through 2012, to remain available 
     until expended.

     SEC. 1812. FARMERS' MARKET PROMOTION PROGRAM.

       Section 6 of the Farmer-to-Consumer Direct Marketing Act of 
     1976 (7 U.S.C. 3005) is amended--
       (1) in subsection (a), by inserting ``and to promote direct 
     producer-to-consumer marketing'' before the period at the 
     end;
       (2) in subsection (b)(1)(B), by striking ``infrastructure'' 
     and inserting ``marketing opportunities'';
       (3) in subsection (c)(1), by inserting ``or a producer 
     network or association'' after ``cooperative''; and
       (4) by striking subsection (e) and inserting the following:
       ``(e) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section--
       ``(1) $5,000,000 for each of fiscal years 2008 through 
     2011; and
       ``(2) $10,000,000 for fiscal year 2012.''.

     SEC. 1813. FOOD SAFETY INITIATIVES.

       (a) Initiative Authorized.--The Secretary may carry out a 
     food safety education program to educate the public and 
     persons in the fresh produce industry about--
       (1) scientifically proven practices for reducing microbial 
     pathogens on fresh produce; and
       (2) methods of reducing the threat of cross-contamination 
     of fresh produce through unsanitary handling practices.
       (b) Cooperation.--The Secretary may carry out the education 
     program in cooperation with public and private partners.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $1,000,000.

     SEC. 1814. CENSUS OF SPECIALTY CROPS.

       (a) Establishment.--Not later than September 30, 2008, and 
     each 5 years thereafter, the Secretary shall conduct a census 
     of specialty crops to assist in the regularly development and 
     dissemination of information relative to specialty crops.
       (b) Relation to Other Census.--The Secretary may include 
     the census of specialty crops in the census on agriculture.

                      PART II--ORGANIC PRODUCTION

     SEC. 1821. ORGANIC DATA COLLECTION AND PRICE REPORTING.

       Section 2104 of the Organic Foods Production Act of 1990 (7 
     U.S.C. 6503) is amended by adding at the end the following:
       ``(e) Data Collection and Price Reporting.--Of the funds of 
     the Commodity Credit Corporation, the Secretary shall use 
     $5,000,000 for the period of fiscal years 2008 through 2012--
       ``(1) to collect data relating to organic agriculture;
       ``(2) to identify and publish organic production and market 
     data initiatives and surveys;
       ``(3) to expand, collect, and publish organic census data 
     analyses;
       ``(4) to fund comprehensive reporting of prices relating to 
     organically-produced agricultural products;
       ``(5) to conduct analysis relating to organic production, 
     handling, distribution, retail, and trend studies;
       ``(6) to study and perform periodic updates on the effects 
     of organic standards on consumer behavior; and
       ``(7) to conduct analyses for organic agriculture using the 
     national crop table.''.

     SEC. 1822. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM 
                   ASSESSMENTS.

       Section 501(e) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7401(e)) is amended by striking 
     paragraph (1) and inserting the following:
       ``(1) In general.--Notwithstanding any provision of a 
     commodity promotion law, a person that produces and markets 
     organic products shall be exempt from the payment of an 
     assessment under a commodity promotion law with respect to 
     that portion of agricultural commodities that the person--
       ``(A) produces on a certified organic farm (as defined in 
     section 2103 of the Organic Foods Production Act of 1990 (7 
     U.S.C. 6502); and
       ``(B) produces or markets as organically produced (as so 
     defined).''.

     SEC. 1823. NATIONAL ORGANIC CERTIFICATION COST SHARE PROGRAM.

       Section 10606 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 6523) is amended to read as follows:

     ``SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST-SHARE 
                   PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Program.--The term `program' means the national 
     certification cost-share program established under subsection 
     (b).
       ``(2) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Agricultural Marketing 
     Service.
       ``(b) Establishment.--The Secretary shall use amounts made 
     available under subsection (f) to establish a national 
     organic certification cost-share program under which the 
     Secretary shall make payments to States to assist producers 
     and handlers of agricultural products in obtaining 
     certification under the national organic production program 
     established under the Organic Foods Production Act of 1990 (7 
     U.S.C. 6501 et seq.).
       ``(c) Federal Share.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall pay under this section not more than 75 percent of the 
     costs incurred by a producer or handler in obtaining 
     certification under the national organic production program, 
     as certified to and approved by the Secretary.
       ``(2) Maximum amount.--The maximum amount of a payment made 
     to a producer or handler under this section shall be $750.
       ``(d) Recordkeeping Requirements.--
       ``(1) In general.--The Secretary shall--
       ``(A) keep accurate, up-to-date records of requests and 
     disbursements from the program; and
       ``(B) require accurate and consistent recordkeeping from 
     each State and entity that receives program payments.
       ``(2) Federal requirements.--Not later than 30 days after 
     the last day on which a State may request funding under the 
     program, the Secretary shall--
       ``(A) determine the number of States requesting funding and 
     the amount of each request; and
       ``(B) distribute the funding to the States.
       ``(3) State requirements.--An annual funding request from a 
     State shall include data from the program during the 
     preceding year, including--
       ``(A) a description of--
       ``(i) the entities that requested reimbursement;
       ``(ii) the amount of each reimbursement request; and
       ``(iii) any discrepancies between the amount requested and 
     the amount provided;
       ``(B) data to support increases in requests expected in the 
     coming year, including information from certifiers or other 
     data showing growth projections; and
       ``(C) an explanation of any case in which an annual request 
     is lower than the request of the preceding year.
       ``(e) Reporting.--Not later than March 1 of each year, the 
     Secretary shall submit to Congress a report that describes 
     the expenditures for each State under the program during the 
     previous fiscal year, including the number of producers and 
     handlers served by the program in the previous fiscal year.
       ``(f) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of the Food and Energy Security Act of 2007, out of 
     any funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $22,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''.

     SEC. 1824. NATIONAL ORGANIC PROGRAM.

       Section 2123 of the Organic Foods Production Act of 1990 (7 
     U.S.C. 6522) is amended--
       (1) by striking ``There are'' and inserting the following:
       ``(a) In General.--There are''; and
       (2) by adding at the end the following:
       ``(b) National Organic Program.--Notwithstanding any other 
     provision of law, in order to carry out the activities of the 
     Agricultural Marketing Service under the national organic 
     program established under this title, there are authorized to 
     be appropriated--
       ``(1) $5,000,000 for fiscal year 2008;
       ``(2) $6,500,000 for fiscal year 2009;
       ``(3) $8,000,000 for fiscal year 2010;
       ``(4) $9,500,000 for fiscal year 2011; and
       ``(5) $11,000,000 for fiscal year 2012.''.

                     PART III--INTERNATIONAL TRADE

     SEC. 1831. FOREIGN MARKET ACCESS STUDY AND STRATEGY PLAN.

       (a) Definition of Uruguay Round Agreements.--In this 
     section, the term ``Uruguay Round Agreements'' includes any 
     agreement described in section 101(d) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3511(d)).
       (b) Study.--The Comptroller General of the United States 
     shall study--
       (1) the extent to which United States specialty crops have 
     or have not benefitted from any reductions of foreign trade 
     barriers, as provided for in the Uruguay Round Agreements; 
     and
       (2) the reasons why United States specialty crops have or 
     have not benefitted from such trade-barrier reductions.
       (c) Strategy Plan.--The Secretary shall prepare a foreign 
     market access strategy plan based on the study in subsection 
     (b), to increase exports of specialty crops, including

[[Page 29241]]

     an assessment of the foreign trade barriers that are 
     incompatible with the Uruguay Round Agreements and a strategy 
     for removing those barriers.
       (d) Report.--Not later than 18 months after the date of 
     enactment of this Act--
       (1) the Comptroller General shall submit to Congress a 
     report that contains the results of the study; and
       (2) the Secretary shall submit to Congress the strategy 
     plan.

     SEC. 1832. MARKET ACCESS PROGRAM.

       Section 211(c) of the Agricultural Trade Act of 1978 (7 
     U.S.C. 5641(c)) is amended by adding at the end the 
     following:
       ``(3) Minimum allocation for sale and export proposal.--
       ``(A) In general.--In providing funds under paragraph (2), 
     to the maximum extent practicable, the Secretary shall use 
     not less than 50 percent of any of the funds made available 
     in excess of $200,000,000 to carry out the market access 
     program each fiscal year to provide assistance for proposals 
     submitted by eligible trade organizations to promote the sale 
     and export of specialty crops.
       ``(B) Unallocated funds.--If, by March 31 of any fiscal 
     year, the Secretary determines that the total amount of funds 
     made available to carry out the market access program are in 
     excess of the amounts necessary to promote the sale and 
     export of specialty crops during the fiscal year, the 
     Secretary may use the excess funds to provide assistance for 
     any other proposals submitted by eligible trade organizations 
     consistent with the priorities described in paragraph (2).''.

     SEC. 1833. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

       Section 3205 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 5680) is amended by striking subsection (d) 
     and inserting the following:
       ``(d) Petition.--A participant in the program may petition 
     the Secretary for an extension of a project carried out under 
     this section that exceeds, or will exceed, applicable time 
     restrictions.
       ``(e) Funding.--
       ``(1) In general.--The Secretary shall make available to 
     carry out the program under this section--
       ``(A) $6,800,000 of funds of, or an equal value of 
     commodities owned by, the Commodity Credit Corporation for 
     each of fiscal years 2008 through 2011; and
       ``(B) $2,000,000 of funds of, or an equal value of 
     commodities owned by, the Commodity Credit Corporation for 
     fiscal year 2012 and each subsequent fiscal year.
       ``(2) Carryover of unobligated funds.--In a case in which 
     the total amount of funds or commodities made available under 
     paragraph (1) for a fiscal year is not obligated in that 
     fiscal year, the Secretary shall make available in the 
     subsequent fiscal year an amount equal to--
       ``(A) the amount made available for the fiscal year under 
     paragraph (1); plus
       ``(B) the amount not obligated in the previous fiscal 
     year.''

     SEC. 1834. CONSULTATIONS ON SANITARY AND PHYTOSANITARY 
                   RESTRICTIONS FOR FRUITS AND VEGETABLES.

       (a) Consultations on Sanitary and Phytosanitary 
     Restrictions for Fruits and Vegetables.--To the maximum 
     extent practicable, the Secretary and the United States Trade 
     Representative shall consult with interested persons, and 
     conduct annual briefings, on sanitary and phytosanitary trade 
     issues, including--
       (1) the development of a strategic risk management 
     framework; and
       (2) as appropriate, implementation of peer review for risk 
     analysis.
       (b) Special Consultations on Import-Sensitive Products.--
     Section 2104(b)(2)(A)(ii)(II) of the Bipartisan Trade 
     Promotion Authority Act of 2002 (19 U.S.C. 
     3804(b)(2)(A)(ii)(II)) is amended--
       (1) by striking ``whether the products so identified'' and 
     inserting ``whether--
       ``(aa) the products so identified''; and
       (2) by adding at the end the following:
       ``(bb) any fruits or vegetables so identified are subject 
     to or likely to be subject to unjustified sanitary or 
     phytosanitary restrictions, including restrictions not based 
     on scientific principles in contravention of the Uruguay 
     Round Agreements, as determined by the United States Trade 
     Representative Technical Advisory Committee for Trade in 
     Fruits and Vegetables of the Department of Agriculture; 
     and''.
       (c) Effective Date.--The amendments made by subsection (b) 
     apply with respect to the initiation of negotiations to enter 
     into any trade agreement that is subject to section 2103(b) 
     of the Bipartisan Trade Promotion Authority Act of 2002 (19 
     U.S.C. 3803(b)) on or after the date of the enactment of this 
     Act.

                PART IV--SPECIALTY CROPS COMPETITIVENESS

     SEC. 1841. SPECIALTY CROP BLOCK GRANTS.

       (a) Extension of Program.--Section 101(a) of the Specialty 
     Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public 
     Law 108-465) is amended by striking ``2009'' and inserting 
     ``2012''.
       (b) Availability of Funds.--Section 101 of the Specialty 
     Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public 
     Law 108-465) is amended by striking subsection (i) and 
     inserting the following:
       ``(i) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture shall make grants 
     under this section, using--
       ``(1) $60,000,000 for fiscal year 2008;
       ``(2) $65,000,000 for fiscal year 2009;
       ``(3) $70,000,000 for fiscal year 2010;
       ``(4) $75,000,000 for fiscal year 2011; and
       ``(5) $0 for fiscal year 2012.''.
       (c) Conforming Amendments.--Section 101 of the Specialty 
     Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public 
     Law 108-465) is amended--
       (1) in subsection (a), by striking ``Subject to the 
     appropriation of funds to carry out this section'' and 
     inserting ``Using the funds made available under subsection 
     (i)'';
       (2) in subsection (b), by striking ``appropriated pursuant 
     to the authorization of appropriations in'' and inserting 
     ``made available under'';
       (3) by striking subsection (c) and inserting the following:
       ``(c) Minimum Grant Amount.--Notwithstanding subsection 
     (b), each State shall receive a grant under this section for 
     each fiscal year in an amount that is at least \1/2\ of 1 
     percent of the total amount of funding made available to 
     carry out this section for the fiscal year.'';
       (4) by redesignating subsection (i) as subsection (j); and
       (5) by inserting after subsection (h) the following:
       ``(i) Reallocation.--The Secretary may reallocate to other 
     States any amounts made available under this section that are 
     not obligated or expended by a date determined by the 
     Secretary.''.
       (d) Definition of Specialty Crop.--Section 3 of the 
     Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 
     note; Public Law 108-465) is amended by striking paragraph 
     (1) and inserting the following:
       ``(1) Specialty crop.--The term `specialty crop' means 
     fruits, vegetables, tree nuts, dried fruits, nursery crops, 
     floriculture, and horticulture, including turfgrass sod and 
     herbal crops.''.
       (e) Definition of State.--Section 3(2) of the Specialty 
     Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public 
     Law 108-465) is amended by striking ``and the Commonwealth of 
     Puerto Rico'' and inserting ``the Commonwealth of Puerto 
     Rico, Guam, American Samoa, the United States Virgin Islands, 
     and the Commonwealth of the Northern Mariana Islands''.

     SEC. 1842. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY 
                   CROPS.

       Title II of the Specialty Crops Competitiveness Act of 2004 
     (Public Law 108-465; 118 Stat. 3884) is amended by adding at 
     the end the following:

     ``SEC. 204. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY 
                   CROPS.

       ``(a) In General.--The Secretary of Agriculture may make 
     grants under this section to an eligible entity described in 
     subsection (b)--
       ``(1) to improve the cost-effective movement of specialty 
     crops to local, regional, national, and international 
     markets; and
       ``(2) to address regional intermodal transportation 
     deficiencies that adversely affect the movement of specialty 
     crops to markets inside or outside the United States.
       ``(b) Eligible Entities.--Grants may be made under this 
     section to--
       ``(1) a State or local government;
       ``(2) a grower cooperative;
       ``(3) a State or regional producer or shipper organization;
       ``(4) a combination of entities described in paragraphs (1) 
     through (3); or
       ``(5) other entities, as determined by the Secretary.
       ``(c) Matching Funds.--As a condition of the receipt of a 
     grant under this section, the recipient of a grant under this 
     section shall contribute an amount of non-Federal funds 
     toward the project for which the grant is provided that is at 
     least equal to the amount of grant funds received by the 
     recipient under this section.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.''.

     SEC. 1843. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.

       Title II of the Specialty Crops Competitiveness Act of 2004 
     (Public Law 108-465; 118 Stat. 3884) (as amended by section 
     1842) is amended by adding at the end the following:

     ``SEC. 205. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.

       ``(a) Definitions.--In this section:
       ``(1) Center.--The term `Center' means the healthy food 
     enterprise development center established under subsection 
     (b).
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) a nonprofit organization;
       ``(B) a cooperative;
       ``(C) a business;
       ``(D) an agricultural producer;
       ``(E) an academic institution;
       ``(F) an individual; and
       ``(G) such other entities as the Secretary may designate.
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(4) Underserved community.--The term `underserved 
     community' means a community (including an urban or rural 
     community

[[Page 29242]]

     and an Indian tribal community) that, as determined by the 
     Secretary, has--
       ``(A) limited access to affordable, healthy foods, 
     including fresh fruits and vegetables;
       ``(B) a high incidence of a diet-related disease (including 
     obesity) as compared to the national average;
       ``(C) a high rate of hunger or food insecurity; or
       ``(D) severe or persistent poverty.
       ``(b) Center.--The Secretary, acting through the 
     Agricultural Marketing Service, shall offer to enter into a 
     contract with a nonprofit organization to establish and 
     support a healthy food enterprise development center to 
     increase access to healthy, affordable foods, such as fresh 
     fruit and vegetables, particularly for school-aged children 
     and individuals in low-income communities.
       ``(c) Activities.--
       ``(1) Purpose.--The purpose of the Center is to increase 
     access to healthy affordable foods, including locally 
     produced agricultural products, to underserved communities.
       ``(2) Technical assistance and information.--The Center 
     shall collect, develop, and provide technical assistance and 
     information to small and mid-sized agricultural producers, 
     food wholesalers and retailers, schools, and other 
     individuals and entities regarding best practices and the 
     availability of assistance for aggregating, storing, 
     processing, and marketing locally produced agricultural 
     products and increasing the availability of the products in 
     underserved communities.
       ``(d) Authority to Subgrant.--The Center may provide 
     subgrants to eligible entities to carry out feasibility 
     studies to establish businesses to carry out the purposes of 
     this section.
       ``(e) Priority.--In providing technical assistance and 
     grants under subsections (c)(2) and (d), the Center shall 
     give priority to applications that have components that 
     will--
       ``(1) benefit underserved communities; and
       ``(2) develop market opportunities for small and mid-sized 
     farm and ranch operations.
       ``(f) Report.--For each fiscal year for which the nonprofit 
     organization described in subsection (b) receives funds, the 
     organization shall submit to the Secretary a report 
     describing the activities carried out in the previous fiscal 
     year, including--
       ``(1) a description of technical assistance provided;
       ``(2) the total number and a description of the subgrants 
     provided under subsection (d);
       ``(3) a complete listing of cases in which the activities 
     of the Center have resulted in increased access to healthy, 
     affordable foods, such as fresh fruit and vegetables, 
     particularly for school-aged children and individuals in low-
     income communities; and
       ``(4) a determination of whether the activities identified 
     in paragraph (3) are sustained in the years following the 
     initial provision of technical assistance and subgrants under 
     this section.
       ``(g) Competitive Award Process.--The Secretary shall use a 
     competitive process to award funds to establish the Center.
       ``(h) Funding.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary to carry out this section--
       ``(1) $1,000,000 for fiscal year 2009; and
       ``(2) $2,000,000 for each of fiscal years 2010 through 
     2012.''.

                         PART V--MISCELLANEOUS

     SEC. 1851. CLEAN PLANT NETWORK.

       (a) In General.--The Secretary shall establish a program to 
     be known as the ``National Clean Plant Network'' (referred to 
     in this section as the ``Program'').
       (b) Requirements.--Under the Program, the Secretary shall 
     establish a network of clean plant centers for diagnostic and 
     pathogen elimination services to--
       (1) produce clean propagative plant material; and
       (2) maintain blocks of pathogen-tested plant material in 
     sites located throughout the United States.
       (c) Availability of Clean Plant Source Material.--Clean 
     plant source material may be made available to--
       (1) a State for a certified plant program of the State; and
       (2) private nurseries and producers.
       (d) Consultation and Collaboration.--In carrying out the 
     Program, the Secretary shall--
       (1) consult with State departments of agriculture and land 
     grant universities; and
       (2) to the extent practicable and with input from the 
     appropriate State officials and industry representatives, use 
     existing Federal or State facilities to serve as clean plant 
     centers.
       (e) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out the Program 
     $4,000,000 for each of fiscal years 2008 through 2012.

     SEC. 1852. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.

       (a) In General.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall make payments to 
     producers of the 2007 crop of asparagus for market loss 
     resulting from imports during the 2004 through 2007 crop 
     years.
       (b) Payment Rate.--The payment rate for a payment under 
     this section shall be based on the reduction in revenue 
     received by asparagus producers associated with imports 
     during the 2004 through 2007 crop years.
       (c) Payment Quantity.--The payment quantity for asparagus 
     for which the producers on a farm are eligible for payments 
     under this section shall be equal to the average quantity of 
     the 2003 crop of asparagus produced by producers on the farm.
       (d) Funding.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall make available $15,000,000 of the funds of the 
     Commodity Credit Corporation to carry out a program to 
     provide market loss payments to producers of asparagus under 
     this section.
       (2) Allocation.--Of the amount made available under 
     paragraph (1), the Secretary shall use--
       (A) $7,500,000 to make payments to producers of asparagus 
     for the fresh market; and
       (B) $7,500,000 to make payments to producers of asparagus 
     for the processed or frozen market.

     SEC. 1853. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER 
                   INFORMATION.

       (a) Regions and Members.--Section 1925(b)(2) of the 
     Mushroom Promotion, Research, and Consumer Information Act of 
     1990 (7 U.S.C. 6104(b)(2)) is amended--
       (1) in subparagraph (B), by striking ``4 regions'' and 
     inserting ``3 regions'';
       (2) in subparagraph (D), by striking ``35,000,000 pounds'' 
     and inserting ``50,000,000 pounds''; and
       (3) by striking subparagraph (E), and inserting the 
     following:
       ``(E) Additional members.--In addition to the members 
     appointed pursuant to paragraph (1), and subject to the 9-
     member limitation on members on the Council provided in that 
     paragraph, the Secretary shall appoint additional members to 
     the Council from a region that attains additional pounds of 
     production of mushrooms as follows:
       ``(i) If the annual production of the region is greater 
     than 110,000,000 pounds, but not more than 180,000,000 
     pounds, the region shall be represented by 1 additional 
     member.
       ``(ii) If the annual production of the region is greater 
     than 180,000,000 pounds, but not more than 260,000,000 
     pounds, the region shall be represented by 2 additional 
     members.
       ``(iii) If the annual production of the region is greater 
     than 260,000,000 pounds, the region shall be represented by 3 
     additional members.''.
       (b) Powers and Duties of Council.--Section 1925(c) of the 
     Mushroom Promotion, Research, and Consumer Information Act of 
     1990 (7 U.S.C. 6104(c)) is amended--
       (1) by redesignating paragraphs (6), (7), and (8) as 
     paragraphs (7), (8), and (9), respectively; and
       (2) by inserting after paragraph (5) the following:
       ``(6) to develop food safety programs, including good 
     agricultural practices and good handling practices or related 
     activities for mushrooms;''.

     SEC. 1854. NATIONAL HONEY BOARD.

       Section 7(c) of the Honey Research, Promotion, and Consumer 
     Information Act (7 U.S.C. 4606(c)) is amended by adding at 
     the end the following:
       ``(12) Referendum requirement.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, subject to subparagraph (B), the order providing for the 
     establishment and operation of the Honey Board in effect on 
     the date of enactment of this paragraph shall continue in 
     force, and the Secretary shall not schedule or conduct any 
     referendum on the continuation or termination of the order, 
     until the Secretary first conducts, at the earliest 
     practicable date, concurrent referenda among all eligible 
     producers, importers, packers, and handlers of honey for the 
     purpose of ascertaining whether eligible producers, 
     importers, packers, and handlers of honey approve of 1 or 
     more orders to establish successor marketing boards for 
     honey.
       ``(B) Requirements.--In conducting concurrent referenda 
     under subparagraph (A), the Secretary shall ensure that--
       ``(i) a referendum of United States honey producers for the 
     establishment of a marketing board solely for United States 
     honey producers is included in the process; and
       ``(ii) the rights and interests of honey producers, 
     importers, packers, and handlers of honey are protected in 
     the transition to any new marketing board.''.

     SEC. 1855. IDENTIFICATION OF HONEY.

       Section 203(h) of the Agricultural Marketing Act of 1946 (7 
     U.S.C. 1622(h)) is amended--
       (1) by designating the first through sixth sentences as 
     paragraphs (1), (2)(A), (2)(B), (3), (4), and (5), 
     respectively; and
       (2) by adding at the end the following:
       ``(6) Identification of honey.--The use of a label or 
     advertising material on, or in conjunction with, packaged 
     honey that bears any official certificate of quality, grade 
     mark or statement, continuous inspection mark or statement, 
     sampling mark or statement, or any combination of the 
     certificates, marks, or statements of the Department of 
     Agriculture shall be considered a deceptive practice that is 
     prohibited under this Act unless there appears legibly and 
     permanently in close proximity to the certificate, mark, or 
     statement, and in at least a comparable size, the 1 or more 
     names of the 1 or more countries of origin of the lot or 
     container of

[[Page 29243]]

     honey, preceded by `Product of' or other words of similar 
     meaning.''.

     SEC. 1856. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR 
                   GRADES AND STANDARDS AND OTHER PURPOSES.

       (a) In General.--The Secretary shall initiate procedures 
     under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
     reenacted with amendments by the Agricultural Marketing 
     Agreement Act of 1937, to determine whether it would be 
     appropriate to establish a Federal marketing order for Hass 
     avocados relating to grades and standards and for other 
     purposes under that Act.
       (b) Expedited Procedures.--
       (1) Proposal for an order.--An organization of domestic 
     avocado producers in existence on the date of enactment of 
     this Act may request the issuance of, and submit to the 
     Secretary a proposal for, an order described in subsection 
     (a).
       (2) Publication of proposal.--Not later than 60 days after 
     the date on which the Secretary receives a proposed order 
     under paragraph (1), the Secretary shall initiate procedures 
     described in subsection (a) to determine whether the proposed 
     order should proceed.
       (c) Effective Date.--Any order issued under this section 
     shall become effective not later than 15 months after the 
     date on which the Secretary initiates procedures under the 
     Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937.

                      Subtitle G--Risk Management

     SEC. 1901. DEFINITION OF ORGANIC CROP.

       Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 
     1502(b)) is amended--
       (1) by redesignating paragraphs (7) and (8) as paragraphs 
     (8) and (9), respectively; and
       (2) by inserting after paragraph (6) the following:
       ``(7) Organic crop.--The term `organic crop' means an 
     agricultural commodity that is organically produced 
     consistent with section 2103 of the Organic Foods Production 
     Act of 1990 (7 U.S.C. 6502).''.

     SEC. 1902. GENERAL POWERS.

       (a) In General.--Section 506 of the Federal Crop Insurance 
     Act (7 U.S.C. 1506) is amended--
       (1) in the first sentence of subsection (d), by striking 
     ``The Corporation'' and inserting ``Subject to section 
     508(j)(2)(A), the Corporation''; and
       (2) by striking subsection (n).
       (b) Conforming Amendments.--
       (1) Section 506 of the Federal Crop Insurance Act (7 U.S.C. 
     1506) is amended by redesignating subsections (o), (p), and 
     (q) as subsections (n), (o), and (p), respectively.
       (2) Section 521 of the Federal Crop Insurance Act (7 U.S.C. 
     1521) is amended by striking the last sentence.

     SEC. 1903. REDUCTION IN LOSS RATIO.

       (a) Projected Loss Ratio.--Subsection (n)(2) of section 506 
     of the Federal Crop Insurance Act (7 U.S.C. 1506) (as 
     redesignated by section 1902(b)(1)) is amended--
       (1) in the paragraph heading, by striking ``as of october 
     1, 1998'';
       (2) by striking ``, on and after October 1, 1998,''; and
       (3) by striking ``1.075'' and inserting ``1.0''.
       (b) Premiums Required.--Section 508(d)(1) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(d)(1)) is amended by 
     striking ``not greater than'' and all that follows and 
     inserting ``not greater than--
       ``(A) 1.1 through September 30, 1998;
       ``(B) 1.075 for the period beginning October 1, 1998, and 
     ending on the date of enactment of the Food and Energy 
     Security Act of 2007; and
       ``(C) 1.0 on and after the date of enactment of that 
     Act.''.

     SEC. 1904. CONTROLLED BUSINESS INSURANCE.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a) is amended by adding at the end the following:
       ``(9) Commissions.--
       ``(A) Definition of immediate family.--In this paragraph, 
     the term `immediate family' means a person's father, mother, 
     stepfather, stepmother, brother, sister, stepbrother, 
     stepsister, son, daughter, stepson, stepdaughter, 
     grandparent, grandson, granddaughter, father-in-law, mother-
     in-law, brother-in-law, sister-in-law, son-in-law, daughter-
     in-law, the spouse of the foregoing, and the person's spouse.
       ``(B) Prohibition.--No person may receive a commission or 
     share of a commission for any policy or plan of insurance 
     offered under this Act in which the person has a substantial 
     beneficial interest or in which a member of the person's 
     immediate family has a substantial beneficial interest if, in 
     a calendar year, the aggregate of the commissions exceeds 30 
     percent of the aggregate of all commissions received by the 
     person for any policy or plan of insurance offered under this 
     Act.
       ``(C) Reporting.--On the completion of the reinsurance 
     year, any person that received a commission or share of a 
     commission for any policy or plan of insurance offered under 
     this Act in the prior calendar year shall certify to 
     applicable approved insurance providers that the person 
     received the commissions in compliance with this paragraph.
       ``(D) Sanctions.--The requirements and sanctions prescribed 
     in section 515(h) shall apply to the prosecution of a 
     violation of this paragraph.
       ``(E) Applicability.--
       ``(i) In general.--Sanctions for violations under this 
     paragraph shall only apply to the person directly responsible 
     for the certification required under subparagraph (C) or the 
     failure to comply with the requirements of this paragraph.
       ``(ii) Prohibition.--No sanctions shall apply with respect 
     to the policy or plans of insurance upon which commissions 
     are received, including the reinsurance for those policies or 
     plans.''.

     SEC. 1905. ADMINISTRATIVE FEE.

       Section 508(b)(5) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(b)(5)) is amended--
       (1) in subparagraph (A), by striking ``$100'' and inserting 
     ``$200''; and
       (2) in subparagraph (B)--
       (A) by striking ``Payment on behalf of producers'' and 
     inserting ``Payment of catastrophic risk protection fee on 
     behalf of producers'';
       (B) in clause (i)--
       (i) by striking ``or other payment''; and
       (ii) by striking ``with catastrophic risk protection or 
     additional coverage'' and inserting ``through the payment of 
     catastrophic risk protection administrative fees'';
       (C) by striking clauses (ii) and (vi);
       (D) by redesignating clauses (iii), (iv), and (v) as 
     clauses (ii), (iii), and (iv), respectively;
       (E) in clause (iii) (as so redesignated), by striking ``A 
     policy or plan of insurance'' and inserting ``Catastrophic 
     risk protection coverage''; and
       (F) in clause (iv) (as so redesignated)--
       (i) by striking ``or other arrangement under this 
     subparagraph''; and
       (ii) by striking ``additional''.

     SEC. 1906. TIME FOR PAYMENT.

       Section 508 of the Federal Crop Insurance Act (7 U.S.C. 
     1508) is amended--
       (1) in subsection (d), by adding at the end the following:
       ``(4) Time for payment.--Effective beginning with the 2012 
     reinsurance year, a producer that obtains a policy or plan of 
     insurance under this title shall submit the required premium 
     not later than September 30 of the year for which the plan or 
     policy of insurance was obtained.''; and
       (2) in subsection (k)(4), by adding at the end the 
     following:
       ``(D) Time for reimbursement.--Effective beginning with the 
     2012 reinsurance year, the Corporation shall reimburse 
     approved insurance providers and agents for the allowable 
     administrative and operating costs of the providers and 
     agents as soon as practicable after October 1 (but not later 
     than October 31) of the reinsurance year for which 
     reimbursements are earned.''.

     SEC. 1907. SURCHARGE PROHIBITION.

       Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(d)) (as amended by section 1906(1)) is amended by adding 
     at the end the following:
       ``(5) Surcharge prohibition.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Corporation may not require producers to pay a premium 
     surcharge for using scientifically-sound sustainable and 
     organic farming practices and systems.
       ``(B) Exception.--
       ``(i) In general.--A surcharge may be required for 
     individual organic crops on the basis of significant, 
     consistent, and systemic increased risk factors (including 
     loss history) demonstrated by published cropping system 
     research (as applied to crop types and regions) and other 
     relevant sources of information.
       ``(ii) Consultation.--The Corporation shall evaluate the 
     reliability of information described in clause (i) in 
     consultation with independent experts in the field.''.

     SEC. 1908. PREMIUM REDUCTION PLAN.

       Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 
     1508(e)) is amended by striking paragraph (3) and inserting 
     the following:
       ``(3) Discount study.--
       ``(A) In general.--The Secretary shall commission an entity 
     independent of the crop insurance industry (with expertise 
     that includes traditional crop insurance) to study the 
     feasibility of permitting approved insurance providers to 
     provide discounts to producers purchasing crop insurance 
     coverage without undermining the viability of the Federal 
     crop insurance program.
       ``(B) Components.--The study should include--
       ``(i) an evaluation of the operation of a premium reduction 
     plan that examines--

       ``(I) the clarity, efficiency, and effectiveness of the 
     statutory language and related regulations;
       ``(II) whether the regulations frustrated the goal of 
     offering producers upfront, predictable, and reliable premium 
     discount payments; and
       ``(III) whether the regulations provided for reasonable, 
     cost-effective oversight by the Corporation of premium 
     discounts offered by approved insurance providers, 
     including--

       ``(aa) whether the savings were generated from verifiable 
     cost efficiencies adequate to offset the cost of discounts 
     paid; and
       ``(bb) whether appropriate control was exercised to prevent 
     approved insurance providers from preferentially offering the 
     discount to producers of certain agricultural

[[Page 29244]]

     commodities, in certain regions, or in specific size 
     categories;
       ``(ii) examination of the impact on producers, the crop 
     insurance industry, and profitability from offering 
     discounted crop insurance to producers;
       ``(iii) examination of implications for industry 
     concentration from offering discounted crop insurance to 
     producers;
       ``(iv) an examination of the desirability and feasibility 
     of allowing other forms of price competition in the Federal 
     crop insurance program;
       ``(v) a review of the history of commissions paid by crop 
     insurance providers; and
       ``(vi) recommendations on--

       ``(I) potential changes to this title that would address 
     the deficiencies in past efforts to provide discounted crop 
     insurance to producers,
       ``(II) whether approved insurance providers should be 
     allowed to draw on both administrative and operating 
     reimbursement and underwriting gains to provide discounted 
     crop insurance to producers; and
       ``(III) any other action that could increase competition in 
     the crop insurance industry that will benefit producers but 
     not undermine the viability of the Federal crop insurance 
     program.

       ``(C) Request for proposals.--In developing the request for 
     proposals for the study, the Secretary shall consult with 
     parties in the crop insurance industry (including producers 
     and approved insurance providers and agents, including 
     providers and agents with experience selling discount crop 
     insurance products).
       ``(D) Review of study.--The independent entity selected by 
     Secretary under subparagraph (A) shall seek comments from 
     interested stakeholders before finalizing the report of the 
     entity.
       ``(E) Report.--Not later than 18 months after the date of 
     enactment of the Food and Energy Security Act of 2007, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that describes 
     the results and recommendations of the study.''.

     SEC. 1909. DENIAL OF CLAIMS.

       Section 508(j)(2)(A) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(j)(2)(A)) is amended by inserting ``on behalf of 
     the Corporation'' after ``approved provider''.

     SEC. 1910. MEASUREMENT OF FARM-STORED COMMODITIES.

       Section 508(j) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(j)) is amended by adding at the end the following:
       ``(5) Measurement of farm-stored commodities.--Beginning 
     with the 2009 crop year, for the purpose of determining the 
     amount of any insured production loss sustained by a producer 
     and the amount of any indemnity to be paid under a plan of 
     insurance--
       ``(A) a producer may elect, at the expense of the producer, 
     to have the Farm Service Agency measure the quantity of the 
     commodity; and
       ``(B) the results of the measurement shall be used as the 
     evidence of the quantity of the commodity that was 
     produced.''.

     SEC. 1911. REIMBURSEMENT RATE.

       Section 508(k)(4) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(k)(4)) (as amended by section 1906(2)) is 
     amended--
       (1) in subparagraph (A), by striking ``Except as provided 
     in subparagraph (B)'' and inserting ``Except as otherwise 
     provided in this paragraph''; and
       (2) by adding at the end the following:
       ``(E) Reimbursement rate reduction.--For each of the 2009 
     and subsequent reinsurance years, the reimbursement rates for 
     administrative and operating costs shall be 2 percentage 
     points below the rates in effect as of the date of enactment 
     of the Food and Energy Security Act of 2007 for all crop 
     insurance policies used to define loss ratio, except that the 
     reduction shall not apply in a reinsurance year to the total 
     premium written in a State in which the State loss ratio is 
     greater than 1.2.
       ``(F) Reimbursement rate for area policies and plans of 
     insurance.--Notwithstanding subparagraphs (A) through (E), 
     for each of the 2009 and subsequent reinsurance years, the 
     reimbursement rate for area policies and plans of insurance 
     shall be 17 percent of the premium used to define loss ratio 
     for that reinsurance year.''.

     SEC. 1912. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

       Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(k)) is amended by adding at the end the following:
       ``(8) Renegotiation of standard reinsurance agreement.--
       ``(A) In general.--Notwithstanding section 536 of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 1506 note; Public Law 105-185) and section 148 
     of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 
     1506 note; Public Law 106-224), the Corporation may 
     renegotiate the financial terms and conditions of each 
     Standard Reinsurance Agreement--
       ``(i) following the reinsurance year ending June 30, 2012;
       ``(ii) once during each period of 5 reinsurance years 
     thereafter; and
       ``(iii) subject to subparagraph (B), in any case in which 
     the approved insurance providers, as a whole, experience 
     unexpected adverse circumstances, as determined by the 
     Secretary.
       ``(B) Notification requirement.--If the Corporation 
     renegotiates a Standard Reinsurance Agreement under 
     subparagraph (A)(iii), the Corporation shall notify the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate of the renegotiation.
       ``(C) Consultation.--The approved insurance providers may 
     confer with each other and collectively with the Corporation 
     during any renegotiation under subparagraph (A).''.

     SEC. 1913. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR 
                   UNDERWRITING GAINS.

       Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(k)) (as amended by section 1912) is amended by adding at 
     the end the following:
       ``(9) Due date for payment of underwriting gains.--
     Effective beginning with the 2011 reinsurance year, the 
     Corporation shall make payments for underwriting gains under 
     this title on--
       ``(A) for the 2011 reinsurance year, October 1, 2012; and
       ``(B) for each reinsurance year thereafter, October 1 of 
     the following calendar year.''.

     SEC. 1914. ACCESS TO DATA MINING INFORMATION.

       (a) In General.--Section 515(j)(2) of the Federal Crop 
     Insurance Act (7 U.S.C. 1515(j)(2)) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(A) In general.--The Secretary''; and
       (2) by adding at the end the following:
       ``(B) Access to data mining information.--
       ``(i) In general.--The Secretary shall establish a fee-for-
     access program under which approved insurance providers pay 
     to the Secretary a user fee in exchange for access to the 
     data mining system established under subparagraph (A) for the 
     purpose of assisting in fraud and abuse detection.
       ``(ii) Prohibition.--

       ``(I) In general.--Except as provided in subclause (II), 
     the Corporation shall not impose a requirement on approved 
     insurance providers to access the data mining system 
     established under subparagraph (A).
       ``(II) Access without fee.--If the Corporation requires 
     approved insurance providers to access the data mining system 
     established under subparagraph (A), access will be provided 
     without charge to the extent necessary to fulfill the 
     requirements.

       ``(iii) Access limitation.--In establishing the program 
     under clause (i), the Secretary shall ensure that an approved 
     insurance provider has access only to information relating to 
     the policies or plans of insurance for which the approved 
     insurance provider provides insurance coverage, including any 
     information relating to--

       ``(I) information of agents and adjusters relating to 
     policies for which the approved insurance provider provides 
     coverage;
       ``(II) the other policies or plans of an insured that are 
     insured through another approved insurance providers; and
       ``(III) the policies or plans of an insured for prior crop 
     insurance years.''.

       (b) Insurance Fund.--Section 516 of the Federal Crop 
     Insurance Act (7 U.S.C. 1516) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(3) Data mining system.--The Corporation shall use 
     amounts deposited in the insurance fund established under 
     subsection (c) from fees collected under section 515(j)(2)(B) 
     to administer and carry out improvements to the data mining 
     system under that section.''; and
       (2) in subsection (c)(1)--
       (A) by striking ``and civil'' and inserting ``civil''; and
       (B) by inserting ``and fees collected under section 
     515(j)(2)(B)(i),'' after ``section 515(h),''.

     SEC. 1915. PRODUCER ELIGIBILITY.

       Section 520(2) of the Federal Crop Insurance Act (7 U.S.C. 
     1520(2)) is amended by inserting ``or is a person who raises 
     livestock owned by other persons (that is not covered by 
     insurance under this title by another person)'' after 
     ``sharecropper''.

     SEC. 1916. CONTRACTS FOR ADDITIONAL CROP POLICIES.

       Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 
     1522) is amended--
       (1) by redesignating paragraph (10) as paragraph (14); and
       (2) by inserting after paragraph (9) the following:
       ``(10) Energy crop insurance policy.--
       ``(A) Definition of dedicated energy crop.--In this 
     subsection, the term `dedicated energy crop' means an annual 
     or perennial crop that--
       ``(i) is grown expressly for the purpose of producing a 
     feedstock for renewable biofuel, renewable electricity, or 
     bio-based products; and
       ``(ii) is not typically used for food, feed, or fiber.
       ``(B) Authority.--The Corporation shall offer to enter into 
     1 or more contracts with qualified entities to carry out 
     research and development regarding a policy to insure 
     dedicated energy crops.

[[Page 29245]]

       ``(C) Research and development.--Research and development 
     described in subparagraph (B) shall evaluate the 
     effectiveness of risk management tools for the production of 
     dedicated energy crops, including policies and plans of 
     insurance that--
       ``(i) are based on market prices and yields;
       ``(ii) to the extent that insufficient data exist to 
     develop a policy based on market prices and yields, evaluate 
     the policies and plans of insurance based on the use of 
     weather or rainfall indices to protect the interests of crop 
     producers; and
       ``(iii) provide protection for production or revenue 
     losses, or both.
       ``(11) Aquaculture insurance policy.--
       ``(A) Definition of aquaculture.--In this subsection:
       ``(i) In general.--The term `aquaculture' means the 
     propagation and rearing of aquatic species in controlled or 
     selected environments, including shellfish cultivation on 
     grants or leased bottom and ocean ranching.
       ``(ii) Exclusion.--The term `aquaculture' does not include 
     the private ocean ranching of Pacific salmon for profit in 
     any State in which private ocean ranching of Pacific salmon 
     is prohibited by any law (including regulations).
       ``(B) Authority.--The Corporation shall offer to enter into 
     1 or more contracts with qualified entities to carry out 
     research and development regarding a policy to insure 
     aquaculture operations.
       ``(C) Research and development.--Research and development 
     described in subparagraph (B) shall evaluate the 
     effectiveness of risk management tools for the production of 
     fish and other seafood in aquaculture operations, including 
     policies and plans of insurance that--
       ``(i) are based on market prices and yields;
       ``(ii) to the extent that insufficient data exist to 
     develop a policy based on market prices and yields, evaluate 
     how best to incorporate insuring of aquaculture operations 
     into existing policies covering adjusted gross revenue; and
       ``(iii) provide protection for production or revenue 
     losses, or both.
       ``(12) Organic crop production coverage improvements.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this paragraph, the Corporation shall offer 
     to enter into 1 or more contracts with qualified entities for 
     the development of improvements in Federal crop insurance 
     policies covering organic crops.
       ``(B) Price election.--
       ``(i) In general.--The contracts under subparagraph (A) 
     shall include the development of procedures (including any 
     associated changes in policy terms or materials required for 
     implementation of the procedures) to offer producers of 
     organic crops a price election that would reflect the actual 
     retail or wholesale prices, as appropriate, received by 
     producers for organic crops, as established using data 
     collected and maintained by the Agricultural Marketing 
     Service.
       ``(ii) Deadline.--The development of the procedures 
     required under clause (i) shall be completed not later than 
     the date necessary to allow the Corporation to offer the 
     price election--

       ``(I) beginning in the 2009 reinsurance year for organic 
     crops with adequate data available; and
       ``(II) subsequently for additional organic crops as data 
     collection for those organic crops is sufficient, as 
     determined by the Corporation.

       ``(13) Skiprow cropping practices.--
       ``(A) In general.--The Corporation shall offer to enter 
     into a contract with a qualified entity to carry out research 
     into needed modifications of policies to insure corn and 
     sorghum produced in the Central Great Plains (as determined 
     by the Agricultural Research Service) through use of skiprow 
     cropping practices.
       ``(B) Research.--Research described in subparagraph (A) 
     shall--
       ``(i) review existing research on skiprow cropping 
     practices and actual production history of producers using 
     skiprow cropping practices; and
       ``(ii) evaluate the effectiveness of risk management tools 
     for producers using skiprow cropping practices, including--

       ``(I) the appropriateness of rules in existence as of the 
     date of enactment of this paragraph relating to the 
     determination of acreage planted in skiprow patterns; and
       ``(II) whether policies for crops produced through skiprow 
     cropping practices reflect actual production capabilities.''.

     SEC. 1917. RESEARCH AND DEVELOPMENT.

       (a) Reimbursement Authorized.--Section 522(b) of the 
     Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by 
     striking paragraph (1) and inserting the following:
       ``(1) Research and development reimbursement.--The 
     Corporation shall provide a payment to reimburse an applicant 
     for research and development costs directly related to a 
     policy that--
       ``(A) is submitted to, and approved by, the Board pursuant 
     to a FCIC reimbursement grant under paragraph (7); or
       ``(B) is--
       ``(i) submitted to the Board and approved by the Board 
     under section 508(h) for reinsurance; and
       ``(ii) if applicable, offered for sale to producers.''.
       (b) FCIC Reimbursement Grants.--Section 522(b) of the 
     Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by 
     adding at the end the following:
       ``(7) FCIC reimbursement grants.--
       ``(A) Grants authorized.--The Corporation shall provide 
     FCIC reimbursement grants to persons (referred to in this 
     paragraph as `submitters') proposing to prepare for 
     submission to the Board crop insurance policies and 
     provisions under subparagraphs (A) and (B) of section 
     508(h)(1), that apply and are approved for the FCIC 
     reimbursement grants under this paragraph.
       ``(B) Submission of application.--
       ``(i) In general.--The Board shall receive and consider 
     applications for FCIC reimbursement grants at least once each 
     year.
       ``(ii) Requirements.--An application to receive a FCIC 
     reimbursement grant from the Corporation shall consist of 
     such materials as the Board may require, including--

       ``(I) a concept paper that describes the proposal in 
     sufficient detail for the Board to determine whether the 
     proposal satisfies the requirements of subparagraph (C); and
       ``(II) a description of --

       ``(aa) the need for the product, including an assessment of 
     marketability and expected demand among affected producers;
       ``(bb) support from producers, producer organizations, 
     lenders, or other interested parties; and
       ``(cc) the impact the product would have on producers and 
     on the crop insurance delivery system; and

       ``(III) a statement that no products are offered by the 
     private sector that provide the same benefits and risk 
     management services as the proposal;
       ``(IV) a summary of data sources available that demonstrate 
     that the product can reasonably be developed and properly 
     rated; and
       ``(V) an identification of the risks the proposed product 
     will cover and an explanation of how the identified risks are 
     insurable under this title.

       ``(C) Approval conditions.--
       ``(i) In general.--A majority vote of the Board shall be 
     required to approve an application for a FCIC reimbursement 
     grant.
       ``(ii) Required findings.--The Board shall approve the 
     application if the Board finds that--

       ``(I) the proposal contained in the application--

       ``(aa) provides coverage to a crop or region not 
     traditionally served by the Federal crop insurance program;
       ``(bb) provides crop insurance coverage in a significantly 
     improved form;
       ``(cc) addresses a recognized flaw or problem in the 
     Federal crop insurance program or an existing product;
       ``(dd) introduces a significant new concept or innovation 
     to the Federal crop insurance program; or
       ``(ee) provides coverage or benefits not available from the 
     private sector;

       ``(II) the submitter demonstrates the necessary 
     qualifications to complete the project successfully in a 
     timely manner with high quality;
       ``(III) the proposal is in the interests of producers and 
     can reasonably be expected to be actuarially appropriate and 
     function as intended;
       ``(IV) the Board determines that the Corporation has 
     sufficient available funding to award the FCIC reimbursement 
     grant; and
       ``(V) the proposed budget and timetable are reasonable.

       ``(D) Participation.--
       ``(i) In general.--In reviewing proposals under this 
     paragraph, the Board may use the services of persons that the 
     Board determines appropriate to carry out expert review in 
     accordance with section 508(h).
       ``(ii) Confidentiality.--All proposals submitted under this 
     paragraph shall be treated as confidential in accordance with 
     section 508(h)(4).
       ``(E) Entering into agreement.--Upon approval of an 
     application, the Board shall offer to enter into an agreement 
     with the submitter for the development of a formal submission 
     that meets the requirements for a complete submission 
     established by the Board under section 508(h).
       ``(F) Feasibility studies.--
       ``(i) In general.--In appropriate cases, the Corporation 
     may structure the FCIC reimbursement grant to require, as an 
     initial step within the overall process, the submitter to 
     complete a feasibility study, and report the results of the 
     study to the Corporation, prior to proceeding with further 
     development.
       ``(ii) Monitoring.--The Corporation may require such other 
     reports as the Corporation determines necessary to monitor 
     the development efforts.
       ``(G) Rates.--Payment for work performed by the submitter 
     under this paragraph shall be based on rates determined by 
     the Corporation for products--
       ``(i) submitted under section 508(h); or
       ``(ii) contracted by the Corporation under subsection (c).
       ``(H) Termination.--
       ``(i) In general.--The Corporation or the submitter may 
     terminate any FCIC reimbursement grant at any time for just 
     cause.
       ``(ii) Reimbursement.--If the Corporation or the submitter 
     terminates the FCIC reimbursement grant before final approval 
     of the

[[Page 29246]]

     product covered by the grant, the submitter shall be entitled 
     to--

       ``(I) reimbursement of all eligible costs incurred to that 
     point; or
       ``(II) in the case of a fixed rate agreement, payment of an 
     appropriate percentage, as determined by the Corporation.

       ``(iii) Denial.--If the submitter terminates development 
     without just cause, the Corporation may deny reimbursement or 
     recover any reimbursement already made.
       ``(I) Consideration of products.--The Board shall consider 
     any product developed under this paragraph and submitted to 
     the Board under the rules the Board has established for 
     products submitted under section 508(h).''.
       (c) Conforming Amendment.--Section 523(b)(10) of the 
     Federal Crop Insurance Act (7 U.S.C. 1523(b)(10)) is amended 
     by striking ``(other than research and development costs 
     covered by section 522)''.

     SEC. 1918. FUNDING FROM INSURANCE FUND.

       Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 
     1522(e)) is amended--
       (1) in paragraph (1), by striking ``$10,000,000'' and all 
     that follows through the end of the paragraph and inserting 
     ``$7,500,000 for fiscal year 2008 and each subsequent fiscal 
     year'';
       (2) in paragraph (2)(A), by striking ``$20,000,000 for'' 
     and all that follows through ``year 2004'' and inserting 
     ``$12,500,000 for fiscal year 2008''; and
       (3) in paragraph (3), by striking ``the Corporation may 
     use'' and all that follows through the end of the paragraph 
     and inserting ``the Corporation may use--
       ``(A) not more than $5,000,000 for each fiscal year to 
     improve program integrity, including by--
       ``(i) increasing compliance-related training;
       ``(ii) improving analysis tools and technology regarding 
     compliance;
       ``(iii) use of information technology, as determined by the 
     Corporation;
       ``(iv) identifying and using innovative compliance 
     strategies; and
       ``(B) any excess amounts to carry out other activities 
     authorized under this section.''.

     SEC. 1919. CAMELINA PILOT PROGRAM.

       (a) In General.--Section 523 of the Federal Crop Insurance 
     Act (7 U.S.C. 1523) is amended by adding at the end the 
     following:
       ``(f) Camelina Pilot Program.--
       ``(1) In general.--Beginning with the 2008 crop year, the 
     Corporation shall establish a pilot program under which 
     producers or processors of camelina may propose for approval 
     by the Board policies or plans of insurance for camelina, in 
     accordance with section 508(h).
       ``(2) Determination by board.--The Board shall approve a 
     policy or plan of insurance proposed under paragraph (1) if, 
     as determined by the Board, the policy or plan of insurance--
       ``(A) protects the interests of producers;
       ``(B) is actuarially sound; and
       ``(C) meets the requirements of this title.''.
       (b) Noninsured Crop Assistance Program.--Section 196(a)(2) 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (7 U.S.C. 7333(a)(2)) is amended by adding at the end the 
     following:
       ``(D) Camelina.--
       ``(i) In general.--For each of crop years 2008 through 
     2011, the Secretary shall consider camelina to be an eligible 
     crop for purposes of the noninsured crop disaster assistance 
     program under this section.
       ``(ii) Limitation.--Producers that are eligible to purchase 
     camelina crop insurance, including camelina crop insurance 
     under a pilot program, shall not be eligible for assistance 
     under this section.''.

     SEC. 1920. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS OR 
                   RANCHERS.

       Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1524(a)) is amended--
       (1) in paragraph (1), by striking ``paragraph (4)'' and 
     inserting ``paragraph (5)'';
       (2) by redesignating paragraph (4) as paragraph (5); and
       (3) by inserting after paragraph (3) the following:
       ``(4) Requirements.--In carrying out the programs 
     established under paragraphs (2) and (3), the Secretary shall 
     place special emphasis on risk management strategies, 
     education, and outreach specifically targeted at--
       ``(A) beginning farmers or ranchers;
       ``(B) immigrant farmers or ranchers that are attempting to 
     become established producers in the United States;
       ``(C) socially disadvantaged farmers or ranchers;
       ``(D) farmers or ranchers that--
       ``(i) are preparing to retire; and
       ``(ii) are using transition strategies to help new farmers 
     or ranchers get started; and
       ``(E) new or established farmers or ranchers that are 
     converting production and marketing systems to pursue new 
     markets.''.

     SEC. 1921. AGRICULTURAL MANAGEMENT ASSISTANCE.

       Section 524(b)(4) of the Federal Crop Insurance Act (7 
     U.S.C. 1524(b)(4)) is amended by adding at end the following:
       ``(C) Cost-sharing.--The Secretary may provide matching 
     funds to any State described in paragraph (1) that 
     appropriates a portion of the budget of the State to provide 
     financial assistance for producer-paid premiums for crop 
     insurance policies reinsured by the Corporation.''.

     SEC. 1922. CROP INSURANCE MEDIATION.

       Section 275 of the Department of Agriculture Reorganization 
     Act of 1994 (7 U.S.C. 6995) is amended--
       (1) by striking ``If an officer'' and inserting the 
     following:
       ``(a) In General.--If an officer'';
       (2) by striking ``With respect to'' and inserting the 
     following:
       ``(b) Farm Service Agency.--With respect to'';
       (3) by striking ``If a mediation''; and inserting the 
     following:
       ``(c) Mediation.--If a mediation''; and
       (4) in subsection (c) (as so designated)--
       (A) by striking ``participant shall be offered'' and 
     inserting ``participant shall--
       ``(1) be offered''; and
       (B) by striking the period at the end and inserting the 
     following: ``; and
       ``(2) to the maximum extent practicable, be allowed to use 
     both informal agency review and mediation to resolve disputes 
     under that title.''.

     SEC. 1923. DROUGHT COVERAGE FOR AQUACULTURE UNDER NONINSURED 
                   CROP ASSISTANCE PROGRAM.

       Section 196(c)(2) of the Federal Agriculture Improvement 
     and Reform Act of 1996 (7 U.S.C. 7333(c)(2)) is amended--
       (1) by striking ``On making'' and inserting the following:
       ``(A) In general.--On making''; and
       (2) by adding at the end the following:
       ``(B) Aquaculture producers.--On making a determination 
     described in subsection (a)(3) for aquaculture producers, the 
     Secretary shall provide assistance under this section to 
     aquaculture producers from all losses related to drought.''.

     SEC. 1924. INCREASE IN SERVICE FEES FOR NONINSURED CROP 
                   ASSISTANCE PROGRAM.

       Section 196(k)(1) of the Federal Agriculture Improvement 
     and Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is amended--
       (1) in subparagraph (A), by striking ``$100'' and inserting 
     ``$200''; and
       (2) in subparagraph (B)--
       (A) by striking ``$300'' and inserting ``$600''; and
       (B) by striking ``$900'' and inserting ``$1,500''.

     SEC. 1925. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.

       Section 9001(d) of the U.S. Troop Readiness, Veterans' 
     Care, Katrina Recovery, and Iraq Accountability 
     Appropriations Act, 2007 (Public Law 110-28; 121 Stat. 211) 
     is amended--
       (1) by redesignating paragraph (8) as paragraph (9); and
       (2) by inserting after paragraph (7) the following:
       ``(8) Sweet potatoes.--
       ``(A) Data.--In the case of sweet potatoes, any data 
     obtained under a pilot program carried out by the Risk 
     Management Agency shall not be considered for the purpose of 
     determining the quantity of production under the crop 
     disaster assistance program established under this section.
       ``(B) Extension of deadline.--If this paragraph is not 
     implemented before the sign-up deadline for the crop disaster 
     assistance program established under this section, the 
     Secretary shall extend the deadline for producers of sweet 
     potatoes to permit sign-up for the program in accordance with 
     this paragraph.''.

     SEC. 1926. PERENNIAL CROP REPORT.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a 
     report containing details about activities and administrative 
     options of the Federal Crop Insurance Corporation and Risk 
     Management Agency that address issues relating to--
       (1) declining yields on the actual production histories of 
     producers; and
       (2) declining and variable yields for perennial crops, 
     including pecans.

                         TITLE II--CONSERVATION

                        Subtitle A--Definitions

     SEC. 2001. DEFINITIONS.

       Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 
     3801(a)) is amended--
       (1) by redesignating paragraphs (2) through (11), (12) 
     through (15), and (16), (17), and (18) as paragraphs (3) 
     through (12), (15) through (18), and (20), (22), and (23), 
     respectively;
       (2) by inserting after paragraph (1) the following:
       ``(2) Beginning farmer or rancher.--The term `beginning 
     farmer or rancher' has, to the maximum extent practicable, 
     the meaning given the term in section 343(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a)), except that the Secretary may include in the 
     definition of the term--
       ``(A) a fair and reasonable test of net worth; and
       ``(B) such other criteria as the Secretary determines to be 
     appropriate.'';
       (3) by inserting after paragraph (12) (as redesignated by 
     paragraph (1)) the following:
       ``(13) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).

[[Page 29247]]

       ``(14) Nonindustrial private forest land.--The term 
     `nonindustrial private forest land' means rural land, as 
     determined by the Secretary, that--
       ``(A) has existing tree cover or is suitable for growing 
     trees; and
       ``(B) is owned by any nonindustrial private individual, 
     group, association, corporation, Indian tribe, or other 
     private legal entity that has definitive decisionmaking 
     authority over the land.'';
       (4) by inserting after paragraph (18) (as redesignated by 
     paragraph (1)) the following:
       ``(19) Socially disadvantaged farmer or rancher.--The term 
     `socially disadvantaged farmer or rancher' has the meaning 
     given the term in section 355(e) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2003(e)).''; and
       (5) by inserting after paragraph (20) (as redesignated by 
     paragraph (1)) the following:
       ``(21) Technical assistance.--
       ``(A) In general.--The term `technical assistance' means 
     technical expertise, information, and tools necessary for the 
     conservation of natural resources on land active in 
     agricultural, forestry, or related uses.
       ``(B) Inclusions.--The term `technical assistance' 
     includes--
       ``(i) technical services provided directly to farmers, 
     ranchers, and other eligible entities, such as conservation 
     planning, technical consultation, and assistance with design 
     and implementation of conservation practices; and
       ``(ii) technical infrastructure, including activities, 
     processes, tools, and agency functions needed to support 
     delivery of technical services, such as technical standards, 
     resource inventories, training, data, technology, monitoring, 
     and effects analyses.''.

             Subtitle B--Highly Erodible Land Conservation

     SEC. 2101. REVIEW OF GOOD FAITH DETERMINATIONS; EXEMPTIONS.

       Section 1212 of the Food Security Act of 1985 (16 U.S.C. 
     3812) is amended by striking subsection (f) and inserting the 
     following:
       ``(f) Graduated Penalties.--
       ``(1) Ineligibility.--No person shall become ineligible 
     under section 1211 for program loans, payments, and benefits 
     as a result of the failure of the person to actively apply a 
     conservation plan, if the Secretary determines that the 
     person has acted in good faith and without an intent to 
     violate this subtitle.
       ``(2) Eligible reviewers.--A determination of the 
     Secretary, or a designee of the Secretary, under paragraph 
     (1) shall be reviewed by the applicable--
       ``(A) State Executive Director, with the technical 
     concurrence of the State Conservationist; or
       ``(B) district director, with the technical concurrence of 
     the area conservationist.
       ``(3) Period for implementation.--A person who meets the 
     requirements of paragraph (1) shall be allowed a reasonable 
     period of time, as determined by the Secretary, but not to 
     exceed 1 year, during which to implement the measures and 
     practices necessary to be considered to be actively applying 
     the conservation plan of the person.
       ``(4) Penalties.--
       ``(A) Application.--This paragraph applies if the Secretary 
     determines that--
       ``(i) a person who has failed to comply with section 1211 
     with respect to highly erodible cropland, and has acted in 
     good faith and without an intent to violate section 1211; or
       ``(ii) the violation--

       ``(I) is technical and minor in nature; and
       ``(II) has a minimal effect on the erosion control purposes 
     of the conservation plan applicable to the land on which the 
     violation has occurred.

       ``(B) Reduction.--If this paragraph applies under 
     subparagraph (A), the Secretary shall, in lieu of applying 
     the ineligibility provisions of section 1211, reduce program 
     benefits described in section 1211 that the producer would 
     otherwise be eligible to receive in a crop year by an amount 
     commensurate with the seriousness of the violation, as 
     determined by the Secretary.
       ``(5) Subsequent crop years.--Any person whose benefits are 
     reduced for any crop year under this subsection shall 
     continue to be eligible for all of the benefits described in 
     section 1211 for any subsequent crop year if, prior to the 
     beginning of the subsequent crop year, the Secretary 
     determines that the person is actively applying a 
     conservation plan according to the schedule specified in the 
     plan.''.

                    Subtitle C--Wetland Conservation

     SEC. 2201. REVIEW OF GOOD FAITH DETERMINATIONS.

       Section 1222(h) of the Food Security Act of 1985 (16 U.S.C. 
     3822(h)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3);
       (2) by inserting after paragraph (1) the following:
       ``(2) Eligible reviewers.--A determination of the 
     Secretary, or a designee of the Secretary, under paragraph 
     (1) shall be reviewed by the applicable--
       ``(A) State Executive Director, with the technical 
     concurrence of the State Conservationist; or
       ``(B) district director, with the technical concurrence of 
     the area conservationist.''; and
       (3) in paragraph (3) (as redesignated by paragraph (1)), by 
     inserting ``be'' before ``actively''.

        Subtitle D--Agricultural Resources Conservation Program

           CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT

      Subchapter A--Comprehensive Conservation Enhancement Program

     SEC. 2301. REAUTHORIZATION AND EXPANSION OF PROGRAMS COVERED.

       (a) In General.--Section 1230 of the Food Security Act of 
     1985 (16 U.S.C. 3830) is amended to read as follows:

     ``SEC. 1230. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--During the 1996 through 2012 fiscal 
     years, the Secretary shall establish a comprehensive 
     conservation enhancement program (referred to in this section 
     as `CCEP') to be implemented through contracts and the 
     acquisition of easements to assist owners and operators of 
     farms, ranches, and nonindustrial private forestland to 
     conserve and enhance soil, water, and related natural 
     resources, including grazing land, wetland, and wildlife 
     habitat.
       ``(2) Means.--The Secretary shall carry out the CCEP by--
       ``(A) providing for the long-term protection of 
     environmentally-sensitive land; and
       ``(B) providing technical and financial assistance to 
     farmers, ranchers, and nonindustrial private forest 
     landowners--
       ``(i) to improve the management and operation of the farms, 
     ranches, and private nonindustrial forest land; and
       ``(ii) to reconcile productivity and profitability with 
     protection and enhancement of the environment;
       ``(C) reducing administrative burdens and streamlining 
     application and planning procedures to encourage producer 
     participation; and
       ``(D) providing opportunities to leverage Federal 
     conservation investments through innovative partnerships with 
     governmental agencies, education institutions, producer 
     groups, and other nongovernmental organizations.
       ``(3) Programs.--The CCEP shall consist of--
       ``(A) the conservation reserve program established under 
     subchapter B;
       ``(B) the wetlands reserve program established under 
     subchapter C; and
       ``(C) the healthy forests reserve program established under 
     subchapter D.
       ``(b) Contracts and Enrollments.--
       ``(1) In general.--In carrying out the CCEP, the Secretary 
     shall enter into contracts with owners and operators and 
     acquire interests in land through easements from owners, as 
     provided in this chapter.
       ``(2) Prior enrollments.--Acreage enrolled in the 
     conservation reserve program, wetlands reserve program, or 
     healthy forests reserve program prior to the date of 
     enactment of the Food and Energy Security Act of 2007 shall 
     be considered to be placed into the CCEP.
       ``(c) Administration.--
       ``(1) Limitations.--
       ``(A) In general.--The Secretary shall not enroll more than 
     25 percent of the cropland in any county in the programs 
     administered under subchapters B and C of this chapter.
       ``(B) Easements.--Within the limit described in 
     subparagraph (A), not more than 10 percent of the land 
     described in that subparagraph may be subject to an easement 
     acquired under subchapter C of this chapter.
       ``(C) Exclusion.--Subparagraphs (A) and (B) shall not apply 
     to acres enrolled in the special conservation reserve 
     enhancement program described in section 1234(f)(3).
       ``(D) Exceptions.--The Secretary may exceed the limitation 
     in subparagraph (A) if the Secretary determines that--
       ``(i)(I) the action would not adversely affect the local 
     economy of a county; and
       ``(II) operators in the county are having difficulties 
     complying with conservation plans implemented under section 
     1212; or
       ``(ii)(I) the acreage to be enrolled could not be used for 
     an agricultural purpose as a result of a State or local law, 
     order, or regulation prohibiting water use for agricultural 
     production; and
       ``(II) enrollment in the program would benefit the acreage 
     enrolled or land adjacent to the acreage enrolled.
       ``(E) Shelterbelts and windbreaks.--The limitations 
     established under this paragraph shall not apply to cropland 
     that is subject to an easement under chapter 1 or 3 that is 
     used for the establishment of shelterbelts and windbreaks.
       ``(F) Enrollment.--Not later than 180 days after the date 
     of a request from a landowner to enroll acreage described in 
     subparagraph (D)(ii) in the program, the Secretary shall 
     enroll the acreage.
       ``(2) Tenant protection.--Except for a person who is a 
     tenant on land that is subject to a conservation reserve 
     contract that has been extended by the Secretary, the 
     Secretary shall provide adequate safeguards to protect the 
     interests of tenants and sharecroppers, including provisions 
     for sharing, on a fair and equitable basis, in payments under 
     the programs established under this subtitle and subtitles B 
     and C.
       ``(3) Provision of technical assistance by other sources.--

[[Page 29248]]

       ``(A) In general.--In the preparation and application of a 
     conservation compliance plan under subtitle B or similar plan 
     required as a condition for assistance from the Department of 
     Agriculture, the Secretary shall permit persons to secure 
     technical assistance from approved sources, as determined by 
     the Secretary, other than the Natural Resources Conservation 
     Service.
       ``(B) Rejection.--If the Secretary rejects a technical 
     determination made by a source described in subparagraph (A), 
     the basis of the determination of the Secretary shall be 
     supported by documented evidence.
       ``(4) Regulations.--Not later than 90 days after the date 
     of enactment of the Food and Energy Security Act of 2007, the 
     Secretary shall promulgate regulations to implement the 
     conservation reserve and wetlands reserve programs 
     established under this chapter.''.
       (b) Conforming Amendments.--
       (1) Section 1243 of the Food Security Act of 1985 (16 
     U.S.C. 3843) is repealed.
       (2) Section 1222(g) of the Food Security Act of 1985 (16 
     U.S.C. 3822(g)) is amended by striking ``1243'' and inserting 
     ``1230(c)''.
       (3) Section 1231(k)(3)(C)(i) of the Food Security Act of 
     1985 (16 U.S.C. 3831(k)(3)(C)(i)) is amended by striking 
     ``1243(b)'' and inserting ``1230(c)(1)''.

                   Subchapter B--Conservation Reserve

     SEC. 2311. CONSERVATION RESERVE PROGRAM.

       (a) In General.--Section 1231(a) of the Food Security Act 
     of 1985 (16 U.S.C. 3831(a)) is amended--
       (1) by striking ``2007'' and inserting ``2012''; and
       (2) by striking ``and wildlife'' and inserting ``wildlife, 
     and pollinator habitat''.
       (b) Eligible Land.--Section 1231(b) of the Food Security 
     Act of 1985 (16 U.S.C. 3831(b)) is amended--
       (1) in paragraph (1)(B), by striking the period at the end 
     and inserting a semicolon;
       (2) in paragraph (4)--
       (A) in subparagraph (C), by striking ``; or'' and inserting 
     a semicolon;
       (B) in subparagraph (D), by striking ``and'' at the end and 
     inserting ``or''; and
       (C) in subparagraph (E), by inserting ``in the case of 
     alfalfa or other forage crops,'' before ``enrollment'';
       (3) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; and
       (4) by adding at the end the following:
       ``(6) marginal pasture land or hay land that is otherwise 
     ineligible, if the land--
       ``(A) is to be devoted to native vegetation appropriate to 
     the ecological site; and
       ``(B) would contribute to the restoration of a long-leaf 
     pine forest or other declining forest ecosystem, as defined 
     by the Secretary; or
       ``(7) land that is enrolled in the flooded farmland program 
     established under section 1235B.''.
       (c) Enrollment.--Section 1231(d) of the Food Security Act 
     of 1985 (16 U.S.C. 3831(d)) is amended by striking ``up to'' 
     and all that follows through ``2007'' and inserting ``up to 
     39,200,000 acres in the conservation reserve at any 1 time 
     during the 2008 through 2012''.
       (d) Conservation Priority Areas.--Section 1231(f)(1) of the 
     Food Security Act of 1985 (16 U.S.C. 3831(f)(1)) is amended--
       (1) by striking ``(Pennsylvania, Maryland, and Virginia)''; 
     and
       (2) by inserting ``the Prairie Pothole Region, the Grand 
     Lake St. Mary's Watershed, the Eastern Snake Plain Aquifer,'' 
     after ``Sound Region,''.
       (e) Pilot Program for Enrollment of Wetland and Buffer 
     Acreage in Conservation Reserve.--Section 1231 of the Food 
     Security Act of 1985 (16 U.S.C. 3831) is amended by striking 
     subsection (h) and inserting the following:
       ``(h) Pilot Program for Enrollment of Wetland, Shallow 
     Water Areas, and Buffer Acreage in Conservation Reserve.--
       ``(1) Program.--
       ``(A) In general.--During the 2008 through 2012 calendar 
     years, the Secretary shall carry out a program in each State 
     under which the Secretary shall enroll eligible acreage 
     described in paragraph (2).
       ``(B) Participation among states.--The Secretary shall 
     ensure, to the maximum extent practicable, that owners and 
     operators in each State have an equitable opportunity to 
     participate in the pilot program established under this 
     subsection.
       ``(2) Eligible acreage.--
       ``(A) In general.--Subject to subparagraphs (B) through 
     (E), an owner or operator may enroll in the conservation 
     reserve under this subsection--
       ``(i)(I) a wetland (including a converted wetland described 
     in section 1222(b)(1)(A)) that had a cropping history during 
     at least 4 of the immediately preceding 6 crop years; or
       ``(II) a shallow water area that was devoted to a 
     commercial pond-raised aquaculture operation any year during 
     the period of calendar years 2002 through 2007; and
       ``(ii) buffer acreage that--

       ``(I) is contiguous to a wetland or shallow water area 
     described in clause (i);
       ``(II) is used to protect the wetland or shallow water area 
     described in clause (i); and
       ``(III) is of such width as the Secretary determines is 
     necessary to protect the wetland or shallow water area 
     described in clause (i) or to enhance the wildlife benefits, 
     taking into consideration and accommodating the farming 
     practices (including the straightening of boundaries to 
     accommodate machinery) used with respect to the cropland that 
     surrounds the wetland or shallow water area.

       ``(B) Exclusions.--Except for a shallow water area 
     described in paragraph (2)(A)(i), an owner or operator may 
     not enroll in the conservation reserve under this 
     subsection--
       ``(i) any wetland, or land on a floodplain, that is, or is 
     adjacent to, a perennial riverine system wetland identified 
     on the final national wetland inventory map of the Secretary 
     of the Interior; or
       ``(ii) in the case of an area that is not covered by the 
     final national inventory map, any wetland, or land on a 
     floodplain, that is adjacent to a perennial stream identified 
     on a 1-24,000 scale map of the United States Geological 
     Survey.
       ``(C) Program limitations.--
       ``(i) In general.--The Secretary may enroll in the 
     conservation reserve under this subsection not more than--

       ``(I) 100,000 acres in any 1 State referred to in paragraph 
     (1); and
       ``(II) not more than a total of 1,000,000 acres.

       ``(ii) Relationship to program maximum.--Subject to clause 
     (iii), for the purposes of subsection (d), any acreage 
     enrolled in the conservation reserve under this subsection 
     shall be considered acres maintained in the conservation 
     reserve.
       ``(iii) Relationship to other enrolled acreage.--Acreage 
     enrolled under this subsection shall not affect for any 
     fiscal year the quantity of--

       ``(I) acreage enrolled to establish conservation buffers as 
     part of the program announced on March 24, 1998 (63 Fed. Reg. 
     14109); or
       ``(II) acreage enrolled into the conservation reserve 
     enhancement program announced on May 27, 1998 (63 Fed. Reg. 
     28965).

       ``(iv) Review; potential increase in enrollment acreage.--
     Not later than 3 years after the date of enactment of the 
     Food and Energy Security Act of 2007, the Secretary shall--

       ``(I) conduct a review of the program under this subsection 
     with respect to each State that has enrolled land in the 
     program; and
       ``(II) notwithstanding clause (i)(I), increase the number 
     of acres that may be enrolled by a State under clause (i)(I) 
     to not more than 150,000 acres, as determined by the 
     Secretary.

       ``(D) Owner or operator limitations.--
       ``(i) Wetland.--

       ``(I) In general.--Except for a shallow water area 
     described in paragraph (2)(A)(i), the maximum size of any 
     wetland described in subparagraph (A)(i) of an owner or 
     operator enrolled in the conservation reserve under this 
     subsection shall be 40 contiguous acres.
       ``(II) Coverage.--All acres described in subclause (I) 
     (including acres that are ineligible for payment) shall be 
     covered by the conservation contract.

       ``(ii) Buffer acreage.--The maximum size of any buffer 
     acreage described in subparagraph (A)(ii) of an owner or 
     operator enrolled in the conservation reserve under this 
     subsection shall be determined by the Secretary in 
     consultation with the State Technical Committee.
       ``(iii) Tracts.--Except for a shallow water area described 
     in paragraph (2)(A)(i), the maximum size of any eligible 
     acreage described in subparagraph (A) in a tract (as 
     determined by the Secretary) of an owner or operator enrolled 
     in the conservation reserve under this subsection shall be 40 
     acres.
       ``(3) Duties of owners and operators.--Under a contract 
     entered into under this subsection, during the term of the 
     contract, an owner or operator of a farm or ranch shall 
     agree--
       ``(A) to restore the hydrology of the wetland within the 
     eligible acreage to the maximum extent practicable, as 
     determined by the Secretary;
       ``(B) to establish vegetative cover (which may include 
     emerging vegetation in water) on the eligible acreage, as 
     determined by the Secretary;
       ``(C) to a general prohibition of commercial use of the 
     enrolled land; and
       ``(D) to carry out other duties described in section 1232.
       ``(4) Duties of the secretary.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), in return for a contract entered into by an owner or 
     operator under this subsection, the Secretary shall make 
     payments based on rental rates for cropland and provide 
     assistance to the owner or operator in accordance with 
     sections 1233 and 1234.
       ``(B) Continuous signup.--The Secretary shall use 
     continuous signup under section 1234(c)(2)(B) to determine 
     the acceptability of contract offers and the amount of rental 
     payments under this subsection.
       ``(C) Incentives.--The amounts payable to owners and 
     operators in the form of rental payments under contracts 
     entered into under this subsection shall reflect incentives 
     that are provided to owners and operators to enroll 
     filterstrips in the conservation reserve under section 
     1234.''.
       (f) Balance of Natural Resource Purposes.--Section 1231(j) 
     of the Food Security Act of 1985 (16 U.S.C. 3831(j)) is 
     amended by

[[Page 29249]]

     striking ``and wildlife'' and inserting ``wildlife, and 
     pollinator''.
       (g) Duties of Participants.--Section 1232(a) of the Food 
     Security Act of 1985 (16 U.S.C. 3832(a)) is amended--
       (1) in paragraph (4)--
       (A) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       (B) by inserting before subparagraph (B) (as so 
     redesignated) the following:
       ``(A) approved vegetative cover shall encourage the 
     planting of native species and restoration of 
     biodiversity;'';
       (2) by redesignating paragraphs (5) through (10) as 
     paragraphs (6) through (11), respectively; and
       (3) by inserting after paragraph (4) the following:
       ``(5) to undertake active management on the land as needed 
     throughout the term of the contract to implement the 
     conservation plan;''.
       (h) Managed Harvesting and Grazing.--Section 1232(a)(7) of 
     the Food Security Act of 1985 (16 U.S.C. 3832(a)(7)) is 
     amended--
       (1) in the matter preceding subparagraph (A), by inserting 
     ``and brood rearing'' after ``habitat during nesting''; and
       (2) in subparagraph (A), by striking ``biomass)'' and 
     inserting ``biomass and prescribed grazing for the control of 
     invasive species), if such activity is permitted and 
     consistent with the conservation plan described in subsection 
     (b)(1)(A))''; and
       (i) Conservation Plans.--Section 1232(b)(1)(A) of the Food 
     Security Act of 1985 (16 U.S.C. 3832(b)(1)(A)) is amended by 
     striking ``contract; and'' and inserting the following: 
     ``contract that are--
       ``(i) compatible with the conservation and improvement of 
     soil, water, and wildlife and wildlife habitat;
       ``(ii) clearly described and apply throughout the duration 
     of the contract;
       ``(iii) actively managed by the owner or operator that 
     entered into the contract; and
       ``(iv) consistent with local active management conservation 
     measures and practices, as determined by the Secretary; 
     and''.
       (j) Acceptance of Contract Offers.--Section 1234(c) of the 
     Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended--
       (1) by striking paragraph (3) and inserting the following:
       ``(3) Acceptance of contract offers.--
       ``(A) Evaluation of offers.--In determining the 
     acceptability of contract offers, the Secretary may take into 
     consideration the extent to which enrollment of the land that 
     is the subject of the contract offer would improve soil 
     resources, water quality, pollinator, fish, or wildlife 
     habitat, or provide other environmental benefits.
       ``(B) Local preference.--In determining the acceptability 
     of contract offers for new enrollments if, as determined by 
     the Secretary, the land would provide at least equivalent 
     conservation benefits to land under competing offers, the 
     Secretary shall, to the maximum extent practicable, accept an 
     offer from an owner or operator that is a resident of the 
     county in which the land is located or of a contiguous 
     county.''; and
       (2) by adding at the end the following:
       ``(5) Rental rates.--
       ``(A) Annual estimates.--Not later than 1 year after the 
     date of enactment of this paragraph, the Secretary (acting 
     through the National Agricultural Statistics Service) shall 
     conduct an annual survey of per acre estimates of county 
     average market dryland and irrigated cash rental rates for 
     cropland and pastureland in all counties or equivalent 
     subdivisions within each State that have 20,000 acres or more 
     of cropland and pastureland.
       ``(B) Public availability of estimates.--The estimates 
     derived from the annual survey conducted under subparagraph 
     (A) shall be maintained on a website of the Department of 
     Agriculture for use by the general public.''.
       (k) Early Termination by Owner or Operator.--Section 
     1235(e)(1) of the Food Security Act of 1985 (16 U.S.C. 
     3835(e)(1)) is amended by striking subparagraph (A) and 
     inserting the following:
       ``(A) In general.--The Secretary shall allow a participant 
     to terminate a conservation reserve contract at any time if, 
     as determined by the Secretary--
       ``(i) the participant entered into a contract under this 
     subchapter before January 1, 1995, and the contract has been 
     in effect for at least 5 years; or
       ``(ii) in the case of a participant who is disabled (as 
     defined in section 72(m)(7) of the Internal Revenue Code of 
     1986) or retired from farming or ranching, the participant 
     has endured financial hardship as a result of the taxation of 
     rental payments received.''.

     SEC. 2312. FLOODED FARMLAND PROGRAM.

       Subchapter B of chapter 1 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3831a et seq.) is 
     amended by adding at the end the following:

     ``SEC. 1235B. FLOODED FARMLAND PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Closed basin lake or pothole.--The term `closed basin 
     lake or pothole' means a naturally occurring lake, pond, 
     pothole, or group of potholes within a tract that--
       ``(A) covered, on average, at least 5 acres in surface area 
     during the preceding 3 crop years, as determined by the 
     Secretary; and
       ``(B) has no natural outlet.
       ``(2) Tract.--The term `tract' has the meaning given the 
     term by the Secretary.
       ``(b) Program.--
       ``(1) In general.--Notwithstanding any other provision of 
     law (including regulations), as part of the conservation 
     reserve program established under this subchapter, the 
     Secretary shall offer to enter into contracts under which the 
     Secretary shall permit the enrollment in the conservation 
     reserve of eligible cropland and grazing land that has been 
     flooded by the natural overflow of a closed basin lake or 
     pothole located within the Prairie Pothole Region of the 
     northern Great Plains priority area (as determined by the 
     Secretary, by regulation).
       ``(2) Extensions.--The Secretary may offer to extend a 
     contract entered into under paragraph (1) if the Secretary 
     determines that conditions persist that make cropland or 
     grazing land covered by the contract and eligible for entry 
     into the program under this section.
       ``(c) Continuous Signup.--The Secretary shall offer the 
     program under this section through continuous signup under 
     this subchapter.
       ``(d) Eligibility.--
       ``(1) In general.--To be eligible to enter into a contract 
     under subsection (b), the owner shall own land that, as 
     determined by the Secretary--
       ``(A) during the 3 crop years preceding entry into the 
     contract, was rendered incapable of use for the production of 
     an agricultural commodity or for grazing purposes; and
       ``(B) prior to the natural overflow of a closed basin lake 
     or pothole caused by a period of precipitation in excess of 
     historical patterns, had been consistently used for the 
     production of crops or as grazing land.
       ``(2) Inclusions.--Land described in paragraph (1) shall 
     include--
       ``(A) land that has been flooded as the result of the 
     natural overflow of a closed basin lake or pothole;
       ``(B) land that has been rendered inaccessible due to 
     flooding as the result of the natural overflow of a closed 
     basin lake or pothole; and
       ``(C) a reasonable quantity of additional land adjoining 
     the flooded land that would enhance the conservation or 
     wildlife value of the tract, as determined by the Secretary.
       ``(3) Administration.--The Secretary may establish--
       ``(A) reasonable minimum acreage levels for individual 
     parcels of land that may be included in a contract entered 
     into under this section; and
       ``(B) the location and area of adjoining flooded land that 
     may be included in a contract entered into under this 
     section.
       ``(e) Payments.--
       ``(1) In general.--Subject to paragraph (2), the rate of an 
     annual rental payment under this section, as determined by 
     the Secretary--
       ``(A) shall be based on the rental rate under this 
     subchapter for cropland, and an appropriate rental rate for 
     pastureland; and
       ``(B) may be reduced by up to 25 percent, based on the 
     ratio of upland associated with the enrollment of the flooded 
     land.
       ``(2) Exclusions.--During the term of a contract entered 
     into under this section, an owner shall not be eligible to 
     participate in or receive benefits for land that is included 
     in the contract under--
       ``(A) the Federal crop insurance program established under 
     the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);
       ``(B) the noninsured crop assistance program established 
     under section 196 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7333); or
       ``(C) any Federal agricultural crop disaster assistance 
     program.
       ``(f) Relationship to Agricultural Commodity Programs.--
       ``(1) In general.--Subject to paragraph (2), the Secretary, 
     by regulation, shall provide for the preservation of cropland 
     base, allotment history, and payment yields applicable to 
     land that was rendered incapable of use for the production of 
     an agricultural commodity or for grazing purposes as the 
     result of the natural overflow of a closed basin lake or 
     pothole.
       ``(2) Termination of contract.--On termination of a 
     contract under this section, the Secretary shall adjust the 
     cropland base, allotment history, and payment yields for land 
     covered by the contract to ensure equitable treatment of the 
     land relative to program payment yields of comparable land in 
     the county that was not flooded as a result of the natural 
     overflow of a closed basin lake or pothole and was capable of 
     remaining in agricultural production.
       ``(g) Use of Land.--An owner that has entered into a 
     contract with the Secretary under this section shall take 
     such actions as are necessary to avoid degrading any wildlife 
     habitat on land covered by the contract that has naturally 
     developed as a result of the natural overflow of a closed 
     basin lake or pothole.''.

     SEC. 2313. WILDLIFE HABITAT PROGRAM.

       Subchapter B of chapter 1 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3831a et seq.) (as 
     amended by section 2312) is amended by adding at the end the 
     following:

[[Page 29250]]



     ``SEC. 1235C. WILDLIFE HABITAT PROGRAM.

       ``(a) In General.--As part of the conservation reserve 
     program established under this subchapter, the Secretary 
     shall carry out a program to provide to owners and operators 
     who have entered into contracts under this subchapter and 
     established softwood pine stands, for each of fiscal years 
     2008 through 2012, assistance to carry out, on the acreage of 
     the owner or operator enrolled in the program under this 
     subchapter, activities that improve the condition of the 
     enrolled land for the benefit of wildlife.
       ``(b) Scope of Program.--In carrying out the program under 
     this section, the Secretary shall determine--
       ``(1) the amount and rate of payments (including incentive 
     payments and cost-sharing payments) to be made to owners and 
     operators who participate in the program to ensure the 
     participation of those owners and operators;
       ``(2) the areas in each of the States in which owners and 
     operators referred to in subsection (a) are located that 
     should be given priority under the program, based on the need 
     in those areas for changes in the condition of land to 
     benefit wildlife; and
       ``(3) the management strategies and practices (including 
     thinning, burning, seeding, establishing wildlife food plots, 
     and such other practices that have benefits for wildlife as 
     are approved by the Secretary) that may be carried out by 
     owners and operators under the program.
       ``(c) Agreements.--
       ``(1) In general.--An owner or operator described in 
     subsection (a) that seeks to receive assistance under this 
     section shall enter into an agreement with the Secretary 
     that--
       ``(A) describes the management strategies and practices 
     referred to in subsection (b)(3) that will be carried out by 
     the owner or operator under the agreement;
       ``(B) describes measures to be taken by the owner or 
     operator to ensure active but flexible management of acreage 
     covered by the agreement;
       ``(C) requires the owner or operator to submit to periodic 
     monitoring and evaluation by wildlife or forestry agencies of 
     the State in which land covered by the agreement is located; 
     and
       ``(D) contains such other terms or conditions as the 
     Secretary may require.
       ``(2) Term; inclusion in contract.--An agreement entered 
     into under this section shall have a term of not more than 5 
     years.
       ``(d) Partnerships.--In carrying out this section, the 
     Secretary may establish or identify and, as appropriate, 
     require owners and operators participating in the program 
     under this section to work cooperatively with, partnerships 
     among the Secretary and State, local, and nongovernmental 
     organizations.
       ``(e) Technical Assistance and Cost Sharing.--The Secretary 
     may provide to owners and operators participating in the 
     program under this section, and members of partnerships 
     described in subsection (d)--
       ``(1) technical assistance for use in carrying out an 
     activity covered by an agreement described in subsection (c); 
     and
       ``(2) a payment for use in covering a percentage of the 
     costs of carrying out each such activity that does not exceed 
     the applicable amount and rate determined by the Secretary 
     under subsection (b)(1).
       ``(f) Termination of Program.--The program under this 
     section shall terminate on September 30, 2011.''.

                 Subchapter C--Wetlands Reserve Program

     SEC. 2321. WETLANDS RESERVE PROGRAM.

       Section 1237 of the Food Security Act of 1985 (16 U.S.C. 
     3837) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Enrollment Conditions.--
       ``(1) Annual enrollment.--To the maximum extent 
     practicable, the Secretary shall enroll 250,000 acres in each 
     fiscal year, with no enrollments beginning in fiscal year 
     2013.
       ``(2) Methods of enrollment.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall enroll acreage into the wetlands reserve 
     program through the use of--
       ``(i) permanent easements;
       ``(ii) 30-year easements;
       ``(iii) restoration cost-share agreements; or
       ``(iv) any combination of the options described in clauses 
     (i) through (iii).
       ``(B) Acreage owned by indian tribes.--In the case of 
     acreage owned by an Indian tribe, the Secretary shall enroll 
     acreage into the wetlands reserve program through the use 
     of--
       ``(i) a 30-year contract (the value of which shall be 
     equivalent to the value of a 30-year easement);
       ``(ii) restoration cost-share agreements; or
       ``(iii) any combination of the options described in clauses 
     (i) and (ii).''; and
       (2) in subsection (c), by striking ``2007 calendar'' and 
     inserting ``2012 fiscal''.

     SEC. 2322. EASEMENTS AND AGREEMENTS.

       (a) Terms of Easement.--Section 1237A(b)(2)(B) of the Food 
     Security Act of 1985 (16 U.S.C. 3837a(b)(2)(B)) is amended--
       (1) in clause (i), by striking ``or'' at the end;
       (2) in clause (ii), by striking ``; and'' and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(iii) to meet habitat needs of specific wildlife species; 
     and''.
       (b) Compensation.--Section 1237A(f) of the Food Security 
     Act of 1985 (16 U.S.C. 3837a(f)) is amended--
       (1) in the first sentence--
       (A) by striking ``Compensation'' and inserting the 
     following:
       ``(1) In general.--Compensation''; and
       (B) by striking ``agreed to'' and all that follows through 
     ``encumbered by the easement'' and inserting ``determined 
     under paragraph (4)'';
       (2) in the second sentence, by striking ``Lands'' and 
     inserting the following:
       ``(2) Bids.--Land'';
       (3) by striking the third sentence and inserting the 
     following:
       ``(3) Payments.--Compensation may be provided in not more 
     than 30 annual payments of equal or unequal size, as agreed 
     to by the owner and the Secretary''; and
       (4) by adding at the end the following:
       ``(4) Method for determination of amount of compensation.--
     Effective on the date of enactment of this paragraph, the 
     Secretary shall pay the lowest amount of compensation for a 
     conservation easement, as determined by comparison of--
       ``(A) the fair market value of the land based on--
       ``(i) the Uniform Standards of Professional Appraisal 
     Practices; or
       ``(ii) an area-wide market analysis or survey, as 
     determined by the Secretary;
       ``(B) a geographical cap, as established through a process 
     prescribed in regulations promulgated by the Secretary; and
       ``(C) the offer made by the landowner.''.
       (c) Wetlands Reserve Enhancement Program.--Section 1237A of 
     the Food Security Act of 1985 (16 U.S.C. 3837a) is amended by 
     adding at the end the following:
       ``(h) Wetlands Reserve Enhancement Program.--
       ``(1) In general.--The Secretary may enter into 1 or more 
     agreements with a State (including a political subdivision or 
     agency of a State), nongovernmental organization, or Indian 
     tribe to carry out a special wetlands reserve enhancement 
     program that the Secretary determines would advance the 
     purposes of this subchapter.
       ``(2) Reserved rights.--Under the wetlands reserve 
     enhancement program, the Secretary may use unique wetlands 
     reserve agreements that may include certain compatible uses 
     as reserved rights in the warranty easement deed restriction, 
     if using those agreements is determined by the Secretary to 
     be--
       ``(A) consistent with the long-term wetland protection and 
     enhancement goals for which the easement was established; and
       ``(B) in accordance with a conservation plan.''.
       (d) Report.--
       (1) In general.--Not later than January 1, 2010, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that evaluates 
     the implications of the long-term nature of conservation 
     easements granted under section 1237A of the Food Security 
     Act of 1985 (16 U.S.C. 3837a) on resources of the Department 
     of Agriculture.
       (2) Inclusions.--The report shall include--
       (A) data relating to the number and location of 
     conservation easements granted under that section that the 
     Secretary holds or has a significant role in monitoring or 
     managing;
       (B) an assessment of the extent to which the oversight of 
     the conservation easement agreements impacts the availability 
     of resources, including technical assistance;
       (C) an assessment of the uses and value of agreements with 
     partner organizations; and
       (D) any other relevant information relating to costs or 
     other effects that would be helpful to the Committees.

     SEC. 2323. PAYMENTS.

       Section 1237D(c) of the Food Security Act of 1985 (16 
     U.S.C. 3837d(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``The total'' and inserting ``Subject to 
     section 1244(i), the total''
       (B) by striking ``easement payments'' and inserting 
     ``payments'';
       (C) by striking ``person'' and inserting ``individual''; 
     and
       (D) by inserting ``or under 30-year contracts or 
     restoration agreements'' before the period at the end; and
       (2) in paragraph (3)--
       (A) by striking ``Easement payments'' and inserting 
     ``Payments''; and
       (B) by striking ``the Food, Agriculture, Conservation, and 
     Trade Act of 1990, or the Agricultural Act of 1949 (7 U.S.C. 
     1421 et seq.)'' and inserting ``the Federal Agriculture 
     Improvement and Reform Act of 1996 (Public Law 104-127; 110 
     Stat. 888), or the Farm Security and Rural Investment Act of 
     2002 (Public Law 107-171; 116 Stat. 134)''.

             Subchapter D--Healthy Forests Reserve Program

     SEC. 2331. HEALTHY FORESTS RESERVE PROGRAM.

       (a) In General.--Chapter 1 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) is 
     amended by adding at the end the following:

[[Page 29251]]



            ``Subchapter D--Healthy Forests Reserve Program

     ``SEC. 1237M. ESTABLISHMENT OF HEALTHY FORESTS RESERVE 
                   PROGRAM.

       ``(a) Establishment.--The Secretary shall establish the 
     healthy forests reserve program for the purpose of restoring 
     and enhancing forest ecosystems--
       ``(1) to promote the recovery of threatened and endangered 
     species;
       ``(2) to improve biodiversity; and
       ``(3) to enhance carbon sequestration.
       ``(b) Coordination.--The Secretary shall carry out the 
     healthy forests reserve program in coordination with the 
     Secretary of the Interior and the Secretary of Commerce.

     ``SEC. 1237N. ELIGIBILITY AND ENROLLMENT OF LANDS IN PROGRAM.

       ``(a) In General.--The Secretary, in coordination with the 
     Secretary of the Interior and the Secretary of Commerce, 
     shall describe and define forest ecosystems that are eligible 
     for enrollment in the healthy forests reserve program.
       ``(b) Eligibility.--To be eligible for enrollment in the 
     healthy forests reserve program, land shall be--
       ``(1) private land the enrollment of which will restore, 
     enhance, or otherwise measurably increase the likelihood of 
     recovery of a species listed as endangered or threatened 
     under section 4 of the Endangered Species Act of 1973 (16 
     U.S.C. 1533); and
       ``(2) private land the enrollment of which will restore, 
     enhance, or otherwise measurably improve the well-being of 
     species that--
       ``(A) are not listed as endangered or threatened under 
     section 4 of the Endangered Species Act of 1973 (16 U.S.C. 
     1533); but
       ``(B) are candidates for such listing, State-listed 
     species, or special concern species.
       ``(c) Other Considerations.--In enrolling land that 
     satisfies the criteria under subsection (b), the Secretary 
     shall give additional consideration to land the enrollment of 
     which will--
       ``(1) improve biological diversity; and
       ``(2) increase carbon sequestration.
       ``(d) Enrollment by Willing Owners.--The Secretary shall 
     enroll land in the healthy forests reserve program only with 
     the consent of the owner of the land.
       ``(e) Methods of Enrollment.--
       ``(1) In general.--Land may be enrolled in the healthy 
     forests reserve program in accordance with--
       ``(A) a 10-year cost-share agreement;
       ``(B) a 30-year easement; or
       ``(C) a permanent easement.
       ``(2) Proportion.--The extent to which each enrollment 
     method is used shall be based on the approximate proportion 
     of owner interest expressed in that method in comparison to 
     the other methods.
       ``(3) Acreage owned by indian tribes.--In the case of 
     acreage owned by an Indian tribe, the Secretary may enroll 
     acreage into the healthy forests reserve program through the 
     use of--
       ``(A) a 30-year contract (the value of which shall be 
     equivalent to the value of a 30-year easement);
       ``(B) a 10-year cost-share agreement; or
       ``(C) any combination of the options described in 
     subparagraphs (A) and (B).
       ``(f) Enrollment Priority.--
       ``(1) Species.--The Secretary shall give priority to the 
     enrollment of land that provides the greatest conservation 
     benefit to--
       ``(A) primarily, species listed as endangered or threatened 
     under section 4 of the Endangered Species Act of 1973 (16 
     U.S.C. 1533); and
       ``(B) secondarily, species that--
       ``(i) are not listed as endangered or threatened under 
     section 4 of the Endangered Species Act of 1973 (16 U.S.C. 
     1533); but
       ``(ii) are candidates for such listing, State-listed 
     species, or special concern species.
       ``(2) Cost-effectiveness.--The Secretary shall also 
     consider the cost-effectiveness of each agreement or 
     easement, and associated restoration plans, so as to maximize 
     the environmental benefits per dollar expended.

     ``SEC. 1237O. RESTORATION PLANS.

       ``(a) In General.--Land enrolled in the healthy forests 
     reserve program shall be subject to a restoration plan, to be 
     developed jointly by the landowner and the Secretary, in 
     coordination with the Secretary of Interior.
       ``(b) Practices.--The restoration plan shall require such 
     restoration practices as are necessary to restore and enhance 
     habitat for--
       ``(1) species listed as endangered or threatened under 
     section 4 of the Endangered Species Act of 1973 (16 U.S.C. 
     1533); and
       ``(2) animal or plant species before the species reach 
     threatened or endangered status, such as candidate, State-
     listed species, and special concern species.

     ``SEC. 1237P. FINANCIAL ASSISTANCE.

       ``(a) Permanent Easements.--In the case of land enrolled in 
     the healthy forests reserve program using a permanent 
     easement, the Secretary shall pay to the owner of the land an 
     amount equal to not less than 75 percent, nor more than 100 
     percent, of (as determined by the Secretary)--
       ``(1) the fair market value of the enrolled land during the 
     period the land is subject to the easement, less the fair 
     market value of the land encumbered by the easement; and
       ``(2) the actual costs of the approved conservation 
     practices or the average cost of approved practices carried 
     out on the land during the period in which the land is 
     subject to the easement.
       ``(b) 30-Year Easement or Contract.--In the case of land 
     enrolled in the healthy forests reserve program using a 30-
     year easement or contract, the Secretary shall pay the owner 
     of the land an amount equal to not more than (as determined 
     by the Secretary)--
       ``(1) 75 percent of the fair market value of the land, less 
     the fair market value of the land encumbered by the easement 
     or contract; and
       ``(2) 75 percent of the actual costs of the approved 
     conservation practices or 75 percent of the average cost of 
     approved practices.
       ``(c) 10-Year Agreement.--In the case of land enrolled in 
     the healthy forests reserve program using a 10-year cost-
     share agreement, the Secretary shall pay the owner of the 
     land an amount equal to not more than (as determined by the 
     Secretary)--
       ``(1) 50 percent of the actual costs of the approved 
     conservation practices; or
       ``(2) 50 percent of the average cost of approved practices.
       ``(d) Acceptance of Contributions.--The Secretary may 
     accept and use contributions of non-Federal funds to make 
     payments under this section.

     ``SEC. 1237Q. TECHNICAL ASSISTANCE.

       ``(a) In General.--The Secretary shall provide landowners 
     with technical assistance to assist the owners in complying 
     with the terms of plans (as included in agreements or 
     easements) under the healthy forests reserve program.
       ``(b) Technical Service Providers.--The Secretary may 
     request the services of, and enter into cooperative 
     agreements with, individuals or entities certified as 
     technical service providers under section 1242, to assist the 
     Secretary in providing technical assistance necessary to 
     develop and implement the healthy forests reserve program.

     ``SEC. 1237R. PROTECTIONS AND MEASURES.

       ``(a) Protections.--In the case of a landowner that enrolls 
     land in the program and whose conservation activities result 
     in a net conservation benefit for listed, candidate, or other 
     species, the Secretary shall make available to the landowner 
     safe harbor or similar assurances and protection under--
       ``(1) section 7(b)(4) of the Endangered Species Act of 1973 
     (16 U.S.C. 1536(b)(4)); or
       ``(2) section 10(a)(1) of that Act (16 U.S.C. 1539(a)(1)).
       ``(b) Measures.--If protection under subsection (a) 
     requires the taking of measures that are in addition to the 
     measures covered by the applicable restoration plan agreed to 
     under section 1237O, the cost of the additional measures, as 
     well as the cost of any permit, shall be considered part of 
     the restoration plan for purposes of financial assistance 
     under section 1237P.

     ``SEC. 1237S. INVOLVEMENT BY OTHER AGENCIES AND 
                   ORGANIZATIONS.

       ``In carrying out this subchapter, the Secretary may 
     consult with--
       ``(1) nonindustrial private forest landowners;
       ``(2) other Federal agencies;
       ``(3) State fish and wildlife agencies;
       ``(4) State forestry agencies;
       ``(5) State environmental quality agencies;
       ``(6) other State conservation agencies; and
       ``(7) nonprofit conservation organizations.

     ``SEC. 1237T. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subchapter such sums as are necessary for each of fiscal 
     years 2008 through 2012.''.
       (b) Conforming Amendments.--The Healthy Forests Restoration 
     Act of 2003 (16 U.S.C. 6501 et seq.) is amended--
       (1) by striking title V (16 U.S.C. 6571 et seq.); and
       (2) by redesignating title VI and section 601 (16 U.S.C. 
     6591) as title V and section 501, respectively.

        CHAPTER 2--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM

                    Subchapter A--General Provisions

     SEC. 2341. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.

       Subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.) is amended by adding at the end the 
     following:

       ``CHAPTER 6--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM

      ``Subchapter A--Comprehensive Stewardship Incentives Program

     ``SEC. 1240T. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary shall establish a 
     comprehensive stewardship incentives program (referred to in 
     this chapter as `CSIP') to--
       ``(A) promote coordinated efforts within conservation 
     programs in this chapter to address resources of concern, as 
     identified at the local level;
       ``(B) encourage the adoption of conservation practices, 
     activities and management measures; and
       ``(C) promote agricultural production and environmental 
     quality as compatible goals.
       ``(2) Means.--The Secretary shall carry out CSIP by--

[[Page 29252]]

       ``(A) identifying resources of concern at a local level as 
     described in subsection (b)(4);
       ``(B) entering into contracts with owners and operators of 
     agricultural and nonindustrial private forest land to--
       ``(i) address natural resource concerns;
       ``(ii) meet regulatory requirements; or
       ``(iii) achieve and maintain new conservation practices, 
     activities and management measures; and
       ``(C) providing technical assistance.
       ``(3) Programs.--CSIP shall consist of--
       ``(A) the conservation stewardship program; and
       ``(B) the environmental quality incentives program.
       ``(4) Definition of resource of concern.--In this chapter, 
     the term `resource of concern' means--
       ``(A) a specific resource concern on agricultural or 
     nonindustrial private forest land that--
       ``(i) is identified by the Secretary in accordance with 
     subsection (b)(4);
       ``(ii) represents a significant conservation concern in the 
     State to which agricultural activities are contributing; and
       ``(iii) is likely to be addressed successfully through the 
     implementation of conservation practices, activities, and 
     management measures by owners and operators of agricultural 
     and nonindustrial private forest land; or
       ``(B) a specific resource concern on agricultural or 
     nonindustrial private forest land that is the subject of 
     mandatory environmental requirements that apply to a producer 
     under Federal, State, or local law.
       ``(b) Administration.--
       ``(1) In general.--In carrying out CSIP, the Secretary 
     shall ensure that the conservation programs under this 
     chapter are managed in a coordinated manner.
       ``(2) Plans.--The Secretary shall, to the maximum extent 
     practicable, avoid duplication in the conservation plans 
     required under this chapter and comparable conservation and 
     regulatory programs, including a permit acquired under an 
     approved water or air quality regulatory program.
       ``(3) Tenant protection.--The Secretary shall provide 
     adequate safeguards to protect the interests of tenants and 
     sharecroppers, including provision for sharing, on a fair and 
     equitable basis, in payments under the programs established 
     under this chapter.
       ``(4) Identification of resources of concern.--
       ``(A) In general.--The Secretary shall ensure that 
     resources of concern are identified at the State level in 
     consultation with the State Technical Committee.
       ``(B) Limitation.--The Secretary shall identify not more 
     than 5 resources of concern in a particular watershed or 
     other appropriate region or area within a State.
       ``(5) Regulations.--Not later than 180 days after the date 
     of enactment of the Food and Energy Security Act of 2007 the 
     Secretary shall issue regulations to implement the programs 
     established under this chapter.

            ``Subchapter B--Conservation Stewardship Program

     ``SEC. 1240U. PURPOSES.

       ``The purpose of the conservation stewardship program is to 
     promote agricultural production and environmental quality as 
     compatible goals, and to optimize environmental benefits, by 
     assisting producers--
       ``(1) in promoting conservation and improving resources of 
     concern (including soil, water, and energy conservation, 
     soil, water, and air quality, biodiversity, fish, wildlife 
     and pollinator habitat, and related resources of concern, as 
     defined by the Secretary) by providing flexible assistance to 
     install, improve, and maintain conservation systems, 
     practices, activities, and management measures on 
     agricultural land (including cropland, grazing land, and 
     wetland) while sustaining production of food and fiber;
       ``(2) in making beneficial, cost-effective changes to 
     conservation systems, practices, activities, and management 
     measures carried out on agricultural and forest land relating 
     to--
       ``(A) cropping systems;
       ``(B) grazing management systems;
       ``(C) nutrient management associated with livestock and 
     crops;
       ``(D) forest management;
       ``(E) fuels management;
       ``(F) integrated pest management;
       ``(G) irrigation management;
       ``(H) invasive species management;
       ``(I) energy conservation; or
       ``(J) other management-intensive issues;
       ``(3) in complying with Federal, State, tribal, and local 
     requirements concerning--
       ``(A) soil, water, and air quality;
       ``(B) fish, wildlife, and pollinator habitat; and
       ``(C) surface water and groundwater conservation;
       ``(4) in avoiding, to the maximum extent practicable, the 
     need for resource and regulatory programs by protecting 
     resources of concern and meeting environmental quality 
     criteria established by Federal, State, tribal, and local 
     agencies; and
       ``(5) by encouraging, consolidating, and streamlining 
     conservation planning and regulatory compliance processes to 
     reduce administrative burdens on producers and the cost of 
     achieving environmental goals.

     ``SEC. 1240V. DEFINITIONS.

       ``In this chapter:
       ``(1) Comprehensive conservation plan.--The term 
     `comprehensive conservation plan' means a plan produced by 
     following the planning process outlined in the applicable 
     National Planning Procedures Handbook of the Department of 
     Agriculture with regard to all applicable resources of 
     concern.
       ``(2) Contract offer.--The term `contract offer' means an 
     application submitted by a producer that seeks to address 1 
     or more resources of concern with the assistance of the 
     program.
       ``(3) Enhancement payment.--The term `enhancement payment' 
     means a payment described in section 1240X(d).
       ``(4) Eligible land.--The term `eligible land' means land 
     described in section 1240X(b).
       ``(5) Livestock.--The term `livestock' means dairy cattle, 
     beef cattle, laying hens, broilers, turkeys, swine, sheep, 
     goats, ducks, ratites, shellfish, alpacas, bison, catfish, 
     managed pollinators, and such other animals and fish as are 
     determined by the Secretary.
       ``(6) Management intensity.--The term `management 
     intensity' means the degree, scope, and comprehensiveness of 
     conservation systems, practices, activities, or management 
     measures adopted by a producer to improve and sustain the 
     condition of a resource of concern.
       ``(7) Payment.--The term `payment' means financial 
     assistance provided to a producer under the program to 
     compensate the producers for incurred costs associated with 
     planning, materials, installation, labor, management, 
     maintenance, technical assistance, and training, the value of 
     risk, and income forgone by the producer, as applicable, 
     including--
       ``(A) enhancement payments;
       ``(B) CSP supplemental payments; and
       ``(C) other payments provided under this chapter.
       ``(8) Practice.--
       ``(A) In general.--The term `practice' means 1 or more 
     measures that improve or sustain a resource of concern.
       ``(B) Inclusions.--The term `practice' includes--
       ``(i) structural measures, vegetative measures, and land 
     management measures, as determined by the Secretary; and
       ``(ii) planning activities needed to improve or sustain a 
     resource of concern, including implementation of--

       ``(I) a comprehensive conservation plan; and
       ``(II) a comprehensive nutrient management plan.

       ``(9) Producer.--The term `producer' means an individual 
     who is an owner, operator, landlord, tenant, or sharecropper 
     that--
       ``(A) derives income from, and controls, the production or 
     management of an agricultural commodity, livestock, or 
     nonindustrial forest land regardless of ownership;
       ``(B) shares in the risk of producing any crop or 
     livestock; and
       ``(C)(i) is entitled to share in the crop or livestock 
     available for marketing from a farm (or would have shared had 
     the crop or livestock been produced); or
       ``(ii) is a custom feeder or contract grower.
       ``(10) Program.--The term `program' means the conservation 
     stewardship program established under this chapter.
       ``(11) Resource-conserving crop.--The term `resource-
     conserving crop' means--
       ``(A) a perennial grass;
       ``(B) a legume grown for use as forage, seed for planting, 
     or green manure;
       ``(C) a legume-grass mixture;
       ``(D) a small grain grown in combination with a grass or 
     legume, whether interseeded or planted in succession;
       ``(E) a winter annual oilseed crop that provides soil 
     protection; and
       ``(F) such other plantings as the Secretary determines to 
     be appropriate for a particular area.
       ``(12) Resource-conserving crop rotation.--The term 
     `resource-conserving crop rotation' means a crop rotation 
     that--
       ``(A) includes at least 1 resource-conserving crop;
       ``(B) reduces erosion;
       ``(C) improves soil fertility and tilth;
       ``(D) interrupts pest cycles; and
       ``(E) in applicable areas, reduces depletion of soil 
     moisture (or otherwise reduces the need for irrigation).
       ``(13) Resource-specific indices.--The term `resource-
     specific indices' means indices developed by the Secretary 
     that measure or estimate the expected level of resource and 
     environmental outcomes of the conservation systems, 
     practices, activities, and management measures employed by a 
     producer to address a resource of concern on an agricultural 
     operation.
       ``(14) Stewardship contract.--The term `stewardship 
     contract' means a contract entered into under the 
     conservation stewardship program to carry out the programs 
     and activities described in this chapter.
       ``(15) Stewardship threshold.--The term `stewardship 
     threshold' means the level of natural resource conservation 
     and environmental management required, as determined by the 
     Secretary--
       ``(A) to maintain, conserve, and improve the quality or 
     quantity of a resource of concern reflecting at a minimum, 
     the resource

[[Page 29253]]

     management system quality criteria described in the handbooks 
     of the Natural Resource Conservation Service, if available 
     and appropriate; or
       ``(B) in the case of a resource of concern that is the 
     subject of a Federal, State, or local regulatory requirement, 
     to meet the higher of--
       ``(i) the standards that are established by the requirement 
     for the resource of concern; or
       ``(ii) standards reflecting the resource management system 
     quality criteria described in the handbooks of the Natural 
     Resource Conservation Service, if available and appropriate.

     ``SEC. 1240W. ESTABLISHMENT OF PROGRAM.

       ``The Secretary shall establish and, for each of fiscal 
     years 2008 through 2012, carry out a conservation stewardship 
     program to assist producers in improving environmental 
     quality by addressing resources of concern in a comprehensive 
     manner through--
       ``(1) the addition of conservation systems, practices, 
     activities, and management measures; and
       ``(2) the active management, maintenance, and improvement 
     of existing, and adoption of new, conservation systems, 
     practices, activities, and management measures.

     ``SEC. 1240X. ELIGIBILITY.

       ``(a) Eligible Producers.--
       ``(1) General program eligibility.--To be eligible to 
     participate in the conservation stewardship program, a 
     producer shall--
       ``(A) submit to the Secretary for approval a contract offer 
     to participate in the program;
       ``(B) agree to receive technical services, either directly 
     from the Secretary or, at the option of the producer, from an 
     approved third party under section 1242(b)(3);
       ``(C) enter into a contract with the Secretary, as 
     described in subsection (c); and
       ``(D) demonstrate to the satisfaction of the Secretary that 
     the producer--
       ``(i) is addressing resources of concern relating to both 
     soil and water to at least the stewardship threshold; and
       ``(ii) is adequately addressing other resources of concern 
     applicable to the agricultural operation, as determined by 
     the Secretary.
       ``(b) Eligible Land.--
       ``(1) In general.--Except as provided in paragraph (2), 
     private agricultural land that is eligible for enrollment in 
     the program includes--
       ``(A) cropland (including vineyards and orchards);
       ``(B) pasture land;
       ``(C) rangeland;
       ``(D) other agricultural land used for the production of 
     livestock;
       ``(E) land used for agroforestry;
       ``(F) land used for aquaculture;
       ``(G) riparian areas adjacent to otherwise eligible land;
       ``(H) land under the jurisdiction of an Indian tribe (as 
     determined by the Secretary);
       ``(I) public land, if failure to enroll the land in the 
     program would defeat the purposes of the program on private 
     land that is an integral part of the operation enrolled or 
     offered to be enrolled in the program by the producer;
       ``(J) State and school owned land that is under the 
     effective control of a producer; and
       ``(K) other agricultural land (including cropped woodland 
     and marshes) that the Secretary determines is vulnerable to 
     serious threats to resources of concern.
       ``(2) Exclusions.--
       ``(A) Land enrolled in other conservation programs.--The 
     following land is not eligible for enrollment in the program:
       ``(i) Land enrolled in the conservation reserve program 
     under subchapter B of chapter 1.
       ``(ii) Land enrolled in the wetlands reserve program 
     established under subchapter C of chapter 1.
       ``(B) Conversion to cropland.--With regard to the program, 
     land used for crop production after May 13, 2002, that had 
     not been planted, considered to be planted, or devoted to 
     crop production for at least 4 of the 6 years preceding that 
     date (except for land enrolled in the conservation reserve 
     program or that has been maintained using long-term crop 
     rotation practices, as determined by the Secretary) shall not 
     be the basis for any payment under the program.
       ``(3) Economic uses.--The Secretary shall not restrict 
     economic uses of land covered by a program contract 
     (including buffers and other partial field conservation 
     practices) that comply with the agreement and comprehensive 
     conservation plan, or other applicable law.
       ``(c) Contract Requirements and Provisions.--
       ``(1) In general.--After a determination by the Secretary 
     that a producer is eligible to participate in the program, 
     and on acceptance of the contract offer of the producer, the 
     Secretary shall enter into a contract with the producer to 
     enroll the land to be covered by the contract.
       ``(2) Agricultural operations.--All acres of all 
     agricultural operations, whether or not contiguous, that are 
     under the effective control of a producer within a particular 
     watershed or region (or in a contiguous watershed or region) 
     of a State and constitute a cohesive management unit, as 
     determined by the Secretary, at the time the producer enters 
     into a stewardship contract shall be covered by the 
     stewardship contract, other than land the producer has 
     enrolled in the conservation reserve program or the wetlands 
     reserve program.
       ``(3) Resources of concern.--Each stewardship contract 
     shall, at a minimum, meet or exceed the stewardship threshold 
     for at least 1 additional resource of concern by the end of 
     the stewardship contract through--
       ``(A) the installation and adoption of additional 
     conservation systems, practices, activities, or management 
     measures; and
       ``(B) the active management and improvement of conservation 
     systems, practices, activities, and management measures in 
     place at the operation of the producer at the time the 
     contract offer is accepted by the Secretary.
       ``(4) Terms.--A contract entered into under paragraph (1) 
     shall--
       ``(A) describe the land covered by the contract;
       ``(B) describe the practices or technical services from an 
     approved third party, to be implemented on eligible land of 
     the producer;
       ``(C) state the amount of payments (determined in 
     accordance with subsection (f)) the Secretary agrees to make 
     to the producer each year of the contract;
       ``(D) describe existing conservation systems, practices, 
     activities, and management measures the producer agrees to 
     maintain, manage, and improve during the term of the 
     stewardship contract in order to meet and exceed the 
     appropriate stewardship threshold for the resources of 
     concern;
       ``(E) describe the additional conservation systems, 
     practices, activities, and management measures the producer 
     agrees to plan, install, maintain, and manage during the term 
     of the stewardship contract in order to meet and exceed the 
     appropriate stewardship threshold for the appropriate 
     resource or resources of concern;
       ``(F) if applicable, describe the on-farm conservation 
     research, demonstration, training, or pilot project 
     activities the producer agrees to undertake during the term 
     of the contract;
       ``(G) if applicable, describe the on-farm monitoring and 
     evaluation activities the producer agrees to undertake during 
     the term of the contract relating to--
       ``(i) a comprehensive conservation plan; or
       ``(ii) conservation systems, practices, activities, and 
     management measures; and
       ``(H) include such other provisions as the Secretary 
     determines are necessary to ensure that the purposes of the 
     program are achieved.
       ``(5) On-farm research, demonstration, training, or pilot 
     projects.--The Secretary may approve a stewardship contract 
     that includes--
       ``(A) on-farm conservation research, demonstration, and 
     training activities; and
       ``(B) pilot projects for evaluation of new technologies or 
     innovative conservation practices.
       ``(6) Duration.--A contract under this chapter shall have a 
     term of 5 years.
       ``(7) Evaluation of contract offers.--In evaluating 
     contract offers made by producers to enter into contracts 
     under the program, the Secretary shall--
       ``(A) prioritize applications based on--
       ``(i) the level of conservation treatment on all resources 
     of concern at the time of application, based on the initial 
     scores received by the producer on applicable resource-
     specific indices;
       ``(ii) the degree to which the proposed conservation 
     treatment effectively increases the level of performance on 
     applicable resource-specific indices or the level of 
     management intensity with which the producer addresses the 
     designated resources of concern;
       ``(iii) the extent to which all resources of concern will 
     exceed the stewardship threshold level by the end of the 
     contract period;
       ``(iv) the extent to which resources of concern in addition 
     to resources of concern will be addressed to meet and exceed 
     the stewardship threshold level by the end of the contract 
     period;
       ``(v) the extent to which the producer proposes to address 
     the goals and objectives of State, regional, and national 
     fish and wildlife conservation plans and initiatives;
       ``(vi) whether the proposed conservation treatment reflects 
     the multiple natural resource and environmental benefits of 
     conservation-based farming systems, including resource-
     conserving crop rotations, advanced integrated pest 
     management, and managed rotational grazing; and
       ``(vii) whether the application includes land transitioning 
     out of the conservation reserve program, on the condition 
     that the land is maintained in a grass-based system and would 
     help meet habitat needs for fish and wildlife;
       ``(B) evaluate the extent to which the anticipated 
     environmental benefits from the contract would be provided in 
     the most cost-effective manner, relative to other similarly 
     beneficial contract offers;
       ``(C) reward higher levels of environmental performance and 
     management intensity;
       ``(D) develop criteria for use in evaluating applications 
     that will ensure that national, State, and local conservation 
     priorities are effectively addressed;

[[Page 29254]]

       ``(E) evaluate the extent to which the environmental 
     benefits expected to result from the contract complement 
     other conservation efforts in the watershed or region; and
       ``(F) provide opportunities to agricultural producers that 
     have not previously participated in Federal conservation 
     programs, including beginning farmers and ranchers and 
     socially disadvantaged farmers and ranchers.
       ``(8) Termination of contracts.--
       ``(A) In general.--
       ``(i) Voluntary termination.--The producer may terminate a 
     contract entered into with the Secretary under this chapter 
     if the Secretary determines that the termination is in the 
     public interest.
       ``(ii) Involuntary termination.--The Secretary may 
     terminate a contract under this chapter if the Secretary 
     determines that the producer violated the contract.
       ``(B) Repayment.--If a contract is terminated, the 
     Secretary may--
       ``(i) allow the producer to retain payments already 
     received under the contract if--

       ``(I) the producer has complied with the terms and 
     conditions of the contract; and
       ``(II) the Secretary determines that allowing the producer 
     to retain the payments is consistent with the purposes of the 
     program;

       ``(ii) require repayment, in whole or in part, of payments 
     already received; and
       ``(iii) assess liquidated damages, if doing so is 
     consistent with the purposes of the program.
       ``(C) Transfer or change of interest in land subject to a 
     contract.--
       ``(i) In general.--Except as provided in clause (ii), the 
     transfer, or change in the interest, of a producer in land 
     subject to a contract under this chapter shall result in the 
     termination of the contract.
       ``(ii) Transfer of duties and rights.--Clause (i) shall not 
     apply if--

       ``(I) within a reasonable period of time (as determined by 
     the Secretary) after the date of the transfer or change in 
     the interest in land, the transferee of the land provides 
     written notice to the Secretary that all duties and rights 
     under the contract have been transferred to, and assumed by, 
     the transferee; and
       ``(II) the transferee meets the eligibility requirements of 
     this subchapter.

       ``(9) Modification.--
       ``(A) In general.--The Secretary may allow a producer to 
     modify a contract before the expiration of the contract if 
     the Secretary determines that failure to modify the contract 
     would significantly interfere with achieving the purposes of 
     the program.
       ``(B) Participation in other programs.--If appropriate 
     payment reductions and other adjustments (as determined by 
     the Secretary) are made to the contract of a producer, the 
     producer may remove land enrolled in the conservation 
     stewardship program for enrollment in the conservation 
     reserve program, wetlands reserve program, or other 
     conservation programs, as determined by the Secretary.
       ``(C) Changes in size of operation.--The Secretary shall 
     allow a producer to modify a stewardship contract before the 
     expiration of the stewardship contract if the agricultural 
     operation of the producer has reduced or enlarged in size to 
     reflect the new acreage total.
       ``(D) New acreage.--With respect to acreage added to the 
     agricultural operation of a producer after entering into a 
     stewardship contract, a producer may elect to not add the 
     acreage to the stewardship contract during the term of the 
     current stewardship contract, except that such additional 
     acreage shall be included in any contract renewal.
       ``(E) Changes in production.--The Secretary shall allow a 
     producer to modify a stewardship contract before the 
     expiration of the stewardship contract if--
       ``(i) the producer has a change in production that requires 
     a change to scheduled conservation practices and activities; 
     and
       ``(ii) the Secretary determines that--

       ``(I) all relevant conservation standards will be 
     maintained or improved; and
       ``(II) there is no increase in total payment under the 
     stewardship contract.

       ``(10) Effect of noncompliance due to circumstances beyond 
     the control of producer.--The Secretary shall include in each 
     contract a provision to ensure that a producer shall not be 
     considered in violation of the contract for failure to comply 
     with the contract due to circumstances beyond the control of 
     the producer, including a disaster or related weather, pest, 
     disease, or other similar condition, as determined by the 
     Secretary.
       ``(11) Coordination with organic certification.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this chapter, the Secretary shall establish a 
     transparent and producer-friendly means by which producers 
     may coordinate and simultaneously certify eligibility under--
       ``(i) a stewardship contract; and
       ``(ii) the national organic production program established 
     under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 
     et seq.).
       ``(B) Programmatic considerations.--The Secretary shall 
     identify and implement programmatic considerations, including 
     conservation systems, practices, activities, and management 
     measures, technical assistance, evaluation of contract 
     offers, enhancement payments, on-farm research, 
     demonstration, training, and pilot projects, and data 
     management, through which to maximize the purposes of the 
     program by enrolling producers who are certified under the 
     national organic production program established under the 
     Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).
       ``(12) Renewal.--At the end of a stewardship contract of a 
     producer, the Secretary shall allow the producer to renew the 
     stewardship contract for an additional 5-year period if the 
     producer--
       ``(A) demonstrates compliance with the terms of the 
     existing contract, including a demonstration that the 
     producer has complied with the schedule for the 
     implementation of additional conservation systems, practices, 
     activities, and management measures included in the 
     stewardship contract and is addressing the designated 
     resources of concern to a level that meets and exceeds the 
     stewardship threshold; and
       ``(B) agrees to implement and maintain such additional 
     conservation practices and activities as the Secretary 
     determines to be necessary and feasible to achieve higher 
     levels of performance on applicable resource-specific indices 
     or higher levels of management intensity with which the 
     producer addresses the resources of concern.
       ``(d) Enhancement Payments.--
       ``(1) Lower payments.--In evaluating applications and 
     making payments under this chapter, the Secretary shall not 
     assign a higher priority to any application because the 
     applicant is willing to accept a lower payment than the 
     applicant would otherwise be entitled to receive.
       ``(2) Evaluation of contract offers.--Nothing in this 
     subsection relieves the Secretary of the obligation, in 
     evaluating applications for payments, to evaluate and 
     prioritize the applications in accordance with subsection 
     (e)(4)), including the requirement for contracts to be cost-
     effective.
       ``(3) Lowest-cost alternatives.--In determining the 
     eligibility of a conservation system, practice, activity, or 
     management measure for a payment under this subsection, the 
     Secretary shall require, to the maximum extent practicable, 
     that the lowest-cost alternatives be used to achieve the 
     purposes of the contract, as determined by the Secretary.
       ``(4) Method of payment.--Payments under this subsection 
     shall be made in such amounts and in accordance with such 
     time schedule as is agreed on and specified in the contract.
       ``(5) Activities qualifying for payments.--
       ``(A) In general.--To receive an enhancement payment under 
     this subsection, a producer shall agree--
       ``(i) to implement additional conservation systems, 
     practices, activities, and management measures and maintain, 
     manage, and improve existing conservation systems, practices, 
     activities, and management measures in order to maintain and 
     improve the level of performance of the producer, as 
     determined by applicable resource-specific indices, or the 
     level of management intensity of the producer with respect to 
     resources of concern in order to meet and exceed the 
     stewardship threshold for resources of concern; and
       ``(ii) to maintain, and make available to the Secretary at 
     such times as the Secretary may request, appropriate records 
     demonstrating the effective and timely implementation of the 
     stewardship contract.
       ``(B) Compensation.--Subject to subparagraph (C), the 
     Secretary shall provide an enhancement payment to a producer 
     to compensate the producer for--
       ``(i) ongoing implementation, active management, and 
     maintenance of conservation systems, practices, activities, 
     and management measures in place on the operation of the 
     producer at the time the contract offer of the producer is 
     accepted; and
       ``(ii) installation and adoption of additional conservation 
     systems, practices, activities, and management measures or 
     improvements to conservation systems, practices, activities, 
     and management measures in place on the operation of the 
     producer at the time the contract offer is accepted.
       ``(C) Adjustments.--A payment under subparagraph (B) shall 
     be adjusted to reflect--
       ``(i) management intensity; or
       ``(ii) resource-specific indices, in a case in which those 
     indices have been developed and implemented.
       ``(D) On-farm research, demonstration, training, and pilot 
     project payments.--The Secretary shall provide an additional 
     enhancement payment to a producer who opts to participate as 
     part of the stewardship contract in an on-farm conservation 
     research, demonstration, training or pilot project certified 
     by the Secretary to compensate the producer for the cost of 
     participation.
       ``(E) Restriction on structural practices.--For purposes of 
     the conservation stewardship program, structural practices 
     shall be eligible for payment only if the structural 
     practices are integrated with and essential to support site-
     specific management activities that are part of an 
     implemented management system designed to address 1 or more 
     resources of concern.
       ``(6) Exclusions.--An enhancement payment to a producer 
     under this subsection shall not be provided for the design, 
     construction, or maintenance of animal waste

[[Page 29255]]

     storage or treatment facilities or associated waste transport 
     or transfer devices for animal feeding operations.
       ``(7) Timing of payments.--
       ``(A) In general.--The Secretary shall make enhancement 
     payments as soon as practicable after October 1 of each 
     fiscal year.
       ``(B) Additional systems, practices, activities, and 
     management measures.--The Secretary shall make enhancement 
     payments to compensate producers for installation and 
     adoption of additional conservation systems, practices, 
     activities, and management measures or improvements to 
     existing conservation systems, practices, activities, and 
     management measures at the time at which the systems, 
     practices, activities, and measures or improvements are 
     installed and adopted.
       ``(8) Research, demonstration, training, and pilot project 
     payment limitations.--An enhancement payment for research, 
     demonstration, training and pilot projects may not exceed 
     $25,000 for each 5-year term of the stewardship contract 
     (excluding funding arrangements with federally recognized 
     Indian tribes or Alaska Native Corporations).
       ``(e) CSP Supplemental Payments.--
       ``(1) In general.--The Secretary shall provide additional 
     payments to producers that, in participating in the 
     conservation stewardship program, agree to adopt resource-
     conserving crop rotations to achieve optimal crop rotations 
     as appropriate for the land of the producers.
       ``(2) Optimal crop rotations.--The Secretary shall 
     determine whether a resource-conserving crop rotation is an 
     optimal crop rotation eligible for additional payments under 
     paragraph (1), based on whether the resource-conserving crop 
     rotation is designed to optimize natural resource 
     conservation and production benefits, including--
       ``(A) increased efficiencies in pesticide, fertilizer, and 
     energy use; and
       ``(B) improved disease management.
       ``(3) Eligibility.--To be eligible to receive a payment 
     described in paragraph (1), a producer shall agree to adopt 
     and maintain optimal resource-conserving crop rotations for 
     the term of the contract.
       ``(4) Rate.--The Secretary shall provide payments under 
     this subsection at a rate that encourages producers to adopt 
     optimal resource-conserving crop rotations.
       ``(f) Limitation on Payments.--Subject to section 1244(i), 
     an individual or entity may not receive, directly or 
     indirectly, payments under this subchapter that, in the 
     aggregate, exceed $240,000 for all contracts entered into 
     under the conservation stewardship program during any 6-year 
     period.
       ``(g) Duties of Producers.--In order to receive assistance 
     under this chapter, a producer shall--
       ``(1) implement the terms of the contract approved by the 
     Secretary;
       ``(2) not conduct any practices on the covered land that 
     would defeat the purposes of the program;
       ``(3) on the violation of a term or condition of the 
     contract at any time the producer has control of the land--
       ``(A) if the Secretary determines that the violation 
     warrants termination of the contract--
       ``(i) forfeit all rights to receive payments under the 
     contract; and
       ``(ii) refund to the Secretary all or a portion of the 
     payments received by the owner or operator under the 
     contract, including any interest on the payments or 
     liquidated damages, as determined by the Secretary;
       ``(B) if the Secretary determines that the violation does 
     not warrant termination of the contract, refund to the 
     Secretary, or accept adjustments to, the payments provided to 
     the owner or operator, as the Secretary determines to be 
     appropriate; or
       ``(C) comply with a combination of the remedies authorized 
     by subparagraphs (A) and (B), as the Secretary determines to 
     be appropriate;
       ``(4) on the transfer of the right and interest of the 
     producer in land subject to the contract (unless the 
     transferee of the right and interest agrees with the 
     Secretary to assume all obligations of the contract) refund 
     any cost-share payments, incentive payments, and stewardship 
     payments received under the program, as determined by the 
     Secretary;
       ``(5) supply information as required by the Secretary to 
     determine compliance with the contract and requirements of 
     the program; and
       ``(6) comply with such additional provisions as the 
     Secretary determines are necessary to carry out the contract.
       ``(h) Duties of Secretary.--
       ``(1) In general.--To achieve the conservation and 
     environmental goals of a contract under this chapter, to the 
     extent appropriate, the Secretary shall--
       ``(A) provide to a producer information and training to aid 
     in implementation of the conservation systems, practices, 
     activities, and management measures covered by the contract;
       ``(B) develop agreements with governmental agencies, 
     nonprofit organizations, and private entities to facilitate 
     the provision of technical and administrative assistance and 
     services;
       ``(C) make the program available to eligible producers on a 
     continuous enrollment basis;
       ``(D) when identifying biodiversity or fish and wildlife as 
     a resource of concern for a particular watershed or other 
     appropriate region or area within a State, ensure that the 
     identification--
       ``(i) is specific with respect to particular species or 
     habitat; and
       ``(ii) would further the goals and objectives of State, 
     regional, and national fish and wildlife conservation plans 
     and initiatives;
       ``(E) provide technical assistance and payments for each of 
     fiscal years 2008 through 2012;
       ``(F) maintain contract and payment data relating to the 
     conservation stewardship program in a manner that provides 
     detailed and segmented data and allows for quantification of 
     the amount of payments made to producers for--
       ``(i) the installation and adoption of additional 
     conservation systems, practices, activities, or management 
     measures;
       ``(ii) participating in research, demonstration, training, 
     and pilot projects;
       ``(iii) the development, monitoring, and evaluation of 
     comprehensive conservation plans; and
       ``(iv) the maintenance and active management of 
     conservation systems, practices, activities, and management 
     measures, and the improvement of conservation practices, in 
     place on the operation of the producer on the date on which 
     the contract offer is accepted by the Secretary;
       ``(G) develop resource-specific indices for purposes of 
     determining eligibility and payments; and
       ``(H) establish and publicize design protocols and 
     application procedures for individual producer and 
     collaborative on-farm research, demonstration, training, and 
     pilot projects.
       ``(2) Specialty crop producers.--The Secretary shall ensure 
     that outreach and technical assistance are available and 
     program specifications are appropriate to enable specialty 
     crop producers to participate in the conservation stewardship 
     program.
       ``(3) Additional requirements.--For the period beginning on 
     the date of enactment of this chapter and ending on September 
     30, 2017, with respect to eligible land of producers 
     participating in the program, the Secretary shall--
       ``(A) to the maximum extent practicable, enroll an 
     additional 13,273,000 acres for each fiscal year, but not to 
     exceed 79,638,000 acres;
       ``(B) implement the program nationwide to make the program 
     available to producers meeting the eligibility requirements 
     in each county;
       ``(C) to the maximum extent practicable, manage the program 
     to achieve a national average annual cost per acre of $19, 
     which shall include the costs of all financial assistance, 
     technical assistance, and any other expenses associated with 
     enrollment or participation in the program of those acres; 
     and
       ``(D) establish a minimum contract value, to ensure equity 
     for small acreage farms, including specialty crop and organic 
     producers.
       ``(i) Acre Allocation.--
       ``(1) Initial allocations to states.--In making allocations 
     of acres to States to enroll in the conservation stewardship 
     program, to the maximum extent practicable, the Secretary 
     shall allocate to each State a number of acres equal to the 
     proportion that--
       ``(A) the number of acres of eligible land in the State; 
     bears to
       ``(B) the number of acres of eligible land in all States.
       ``(2) Minimum acre allocation.--Of the acres allocated for 
     each fiscal year, no State shall have allocated fewer than 
     the lesser of--
       ``(A) 20,000 acres; or
       ``(B) 2.2 percent of the number of acres of eligible land 
     in the State.
       ``(3) Reallocation to states.--For any fiscal year, acres 
     not obligated under this subsection by a date determined by 
     the Secretary through rulemaking shall be reallocated to each 
     State that--
       ``(A) has obligated 100 percent of the initial allocation 
     of the State; and
       ``(B) requests additional acres.

     ``SEC. 1240Y. REGULATIONS.

       ``Not later than 180 days after the date of enactment of 
     this chapter, the Secretary shall promulgate such regulations 
     as are necessary to carry out the program, including 
     regulations that--
       ``(1) provide for adequate safeguards to protect the 
     interests of tenants and sharecroppers, including provision 
     for sharing payments, on a fair and equitable basis;
       ``(2) prescribe such other rules as the Secretary 
     determines to be necessary to ensure a fair and reasonable 
     application of the program; and
       ``(3) to the maximum extent practicable, eliminate 
     duplication of planning activities under the program and 
     comparable conservation programs.''.

         Subchapter B--Environmental Quality Incentives Program

     SEC. 2351. PURPOSES.

       Section 1240 of the Food Security Act of 1985 (16 U.S.C. 
     3839aa) is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     forest management,'' after ``agricultural production'';

[[Page 29256]]

       (2) in paragraph (3)--
       (A) by inserting ``, forest land,'' after ``grazing land''; 
     and
       (B) by inserting ``pollinators,'' after ``wetland),''; and
       (3) in paragraph (4)--
       (A) by inserting ``fuels management, forest management,'' 
     after ``grazing management,''; and
       (B) by inserting ``and forested'' after ``agricultural''.

     SEC. 2352. DEFINITIONS.

       (a) Eligible Land.--Section 1240A(2) of the Food Security 
     Act of 1985 (16 U.S.C. 3838aa-1(2)) is amended--
       (1) in subparagraph (A), by striking ``commodities or 
     livestock'' and inserting ``commodities, livestock, or 
     forest-related products''; and
       (2) in subparagraph (B)--
       (A) by striking clause (v) and inserting the following:
       ``(v) nonindustrial private forest land;'';
       (B) by redesignating clause (vi) as clause (vii); and
       (C) by inserting after clause (v) the following:
       ``(vi) land used for pond-raised aquaculture production; 
     and''.
       (b) Land Management Practice.--Section 1240A(3) of the Food 
     Security Act of 1985 (16 U.S.C. 3838aa-1(3)) is amended--
       (1) by striking ``The term'' and inserting the following:
       ``(A) In general.--The term'';
       (2) by inserting ``fuels management, forest management,'' 
     after ``grazing management''; and
       (3) by adding at the end the following:
       ``(B) Forest management.--For purposes of subparagraph (A), 
     forest management practices may include activities that the 
     Secretary determines are necessary--
       ``(i) to improve water, soil, or air quality;
       ``(ii) to restore forest biodiversity;
       ``(iii) to control invasive species;
       ``(iv) to improve wildlife habitat; or
       ``(v) to achieve conservation priorities identified in an 
     applicable forest resource assessment and plan.''.
       (c) Practice.--Section 1240A(5) of the Food Security Act of 
     1985 (16 U.S.C. 3838aa-1(5)) is amended by inserting 
     ``conservation planning practices,'' after ``land management 
     practices,''.
       (d) Custom Feeding Business.--Section 1240A of the Food 
     Security Act of 1985 (16 U.S.C. 3838aa-1) is amended--
       (1) by redesignating paragraph (6) as paragraph (7); and
       (2) by inserting after paragraph (5) the following:
       ``(6) Producer.--The term `producer' includes a custom 
     feeding business and a contract grower or finisher.''.
       (e) Structural Practice.--Paragraph (7)(A) of section 1240A 
     of the Food Security Act of 1985 (16 U.S.C. 3838aa-1) (as 
     redesignated by subsection (d)(1)) is amended by inserting 
     ``firebreak, fuelbreak,'' after ``constructed wetland,''.

     SEC. 2353. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL 
                   QUALITY INCENTIVES PROGRAM.

       (a) Establishment.--Section 1240B(a) of the Food Security 
     Act of 1985 (16 U.S.C. 3839aa-2(a)) is amended--
       (1) in paragraph (1), by striking ``2010'' and inserting 
     ``2012''; and
       (2) in paragraph (2)(B), by inserting ``conservation plan 
     or'' after ``develops a''.
       (b) Practices and Term.--Section 1240B(b) of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-2(b)) is amended--
       (1) in paragraph (1), by inserting ``conservation planning 
     practices,'' after ``land management practices,''; and
       (2) in paragraph (2)(B), by striking ``10'' and inserting 
     ``5''.
       (c) Establishment and Administration.--Section 1240B of the 
     Food Security Act of 1985 (16 U.S.C. 3839aa-2) is amended--
       (1) by striking subsection (c);
       (2) in subsection (d)--
       (A) in paragraph (2), by striking subparagraph (A) and 
     inserting the following:
       ``(A) Socially disadvantaged farmers or ranchers and 
     beginning farmers or ranchers.--
       ``(i) In general.--In the case of a producer that is a 
     socially disadvantaged farmer or rancher or a beginning 
     farmer or rancher, the Secretary may increase the amount that 
     would otherwise be provided to the producer under paragraph 
     (1) to--

       ``(I) not more than 90 percent; and
       ``(II) not less than 15 percent above the otherwise 
     applicable rate.

       ``(ii) Advance payments.--Not more than 30 percent of the 
     amount determined under clause (i) may be provided in advance 
     for the purpose of purchasing materials or contracting.'';
       (B) by striking paragraph (3) and inserting the following:
       ``(3) Other payments.--A producer shall not be eligible for 
     cost-share payments for practices on eligible land under the 
     program if the producer receives cost-share payments or other 
     benefits for the same practice on the same land under another 
     program.''; and
       (C) by adding at the end the following:
       ``(4) Guaranteed loan eligibility.--Notwithstanding section 
     333(1) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1983(1)), with respect to the cost of a loan, a 
     producer with an application that meets the standards for a 
     cost-share payment under this subsection but that is not 
     approved by the Secretary shall receive priority 
     consideration for a guaranteed loan under section 304 of that 
     Act (7 U.S.C. 1924).'';
       (3) in subsection (e), by striking paragraph (2) and 
     inserting the following:
       ``(2) Special rule.--In determining the amount and rate of 
     incentive payments, the Secretary may accord great 
     significance to a practice that promotes residue, nutrient, 
     air quality, pest, or predator deterrence, including 
     practices to deter predator species protected under the 
     Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), gray 
     wolves, grizzly bears, and black bears.'';
       (4) in subsection (g), by striking ``2007'' and inserting 
     ``2012'';
       (5) by redesignating subsections (d) through (h) as 
     subsections (c) through (g), respectively; and
       (6) by adding at the end the following:
       ``(h) Water Conservation or Irrigation Efficiency 
     Practice.--
       ``(1) In general.--The Secretary may provide technical 
     assistance, cost-share payments, and incentive payments to a 
     producer for a water conservation or irrigation practice.
       ``(2) Priority.--In providing assistance and payments to 
     producers for a water conservation or irrigation practice, 
     the Secretary may give priority to applications in which--
       ``(A) there is an improvement in surface flows or a 
     reduction in the use of groundwater in the agricultural 
     operation of the producer, consistent with the law of the 
     State in which the operation of the producer is located; or
       ``(B) the producer agrees not to use any associated water 
     savings to bring new land, other than incidental land needed 
     for efficient operations, under irrigated production, unless 
     the producer is participating in a watershed-wide project 
     that will effectively conserve water, as determined by the 
     Secretary.''.

     SEC. 2354. EVALUATION OF OFFERS AND PAYMENTS.

       Section 1240C of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-3) is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following:
       ``(2) improve conservation practices in place on the 
     operation of the producer at the time the contract offer is 
     accepted; and''.

     SEC. 2355. DUTIES OF PRODUCERS.

       Section 1240D(2) of the Food Security Act of 1985 (16 
     U.S.C. 3839aa-4(2)) is amended by striking ``farm or ranch'' 
     and inserting ``farm, ranch, or forest land''.

     SEC. 2356. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

       Section 1240E(a) of the Food Security Act of 1985 (16 
     U.S.C. 3839aa-5(a)) is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     or an entity described in section 1244(e) acting on behalf of 
     producers,'' after ``producer'';
       (2) in paragraph (2), by striking ``and'' after the 
     semicolon at the end;
       (3) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(4) in the case of forest land, is consistent with a 
     forest management plan that is approved by the Secretary, 
     which may include--
       ``(A) a forest stewardship plan described in section 5 of 
     the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
     2103a);
       ``(B) another practice plan approved by the State forester; 
     or
       ``(C) another plan determined appropriate by the 
     Secretary.''.

     SEC. 2357. LIMITATION ON PAYMENTS.

       Section 1240G of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-7) is amended--
       (1) by striking ``An individual'' and inserting ``(a) In 
     General.--Subject to section 1244(i), an individual''; and
       (2) by adding at the end the following:
       ``(b) Producer Organizations.--In the case of an entity 
     described in section 1244(e), the limitation established 
     under this section shall apply to each participating producer 
     and not to the entity described in section 1244(e).''.

     SEC. 2358. CONSERVATION INNOVATION GRANTS.

       Section 1240H of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-8) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) In General.--The Secretary may pay the cost of 
     competitive grants that leverage Federal investment in 
     environmental enhancement and protection through the program 
     by--
       ``(1) stimulating the development of innovative 
     technologies; and
       ``(2) transferring those technologies to agricultural and 
     nonindustrial private forest land in production.''; and
       (2) in subsection (b), by striking paragraph (2) and 
     inserting the following:
       ``(2)(A) implement innovative conservation technologies, 
     such as market systems for pollution reduction and practices 
     for the storing of carbon in the soil;

[[Page 29257]]

       ``(B) provide a mechanism for transferring those 
     technologies to agricultural and nonindustrial private forest 
     land in production; and
       ``(C) increase environmental and resource conservation 
     benefits through specialty crop production; and''.

     SEC. 2359. GROUND AND SURFACE WATER CONSERVATION.

       Section 1240I of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-9) is amended to read as follows:

     ``SEC. 1240I. GROUND AND SURFACE WATER CONSERVATION.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to improve irrigation systems;
       ``(2) to enhance irrigation efficiencies;
       ``(3) to assist producers in converting to--
       ``(A) the production of less water-intensive agricultural 
     commodities; or
       ``(B) dryland farming;
       ``(4) to improve water storage capabilities through 
     measures such as water banking and groundwater recharge and 
     other related activities;
       ``(5) to mitigate the effects of drought;
       ``(6) to enhance fish and wildlife habitat associated with 
     irrigation systems, including pivot corners and areas with 
     irregular boundaries;
       ``(7) to conduct resource condition assessment and modeling 
     relating to water conservation;
       ``(8) to assist producers in developing water conservation 
     plans; and
       ``(9) to promote any other measures that improve 
     groundwater and surface water conservation, as determined by 
     the Secretary.
       ``(b) Definitions.--In this section:
       ``(1) Partner.--
       ``(A) In general.--The term `partner' means an entity that 
     enters into a partnership agreement with the Secretary to 
     carry out water conservation activities on a regional scale.
       ``(B) Inclusions.--The term `partner' includes--
       ``(i) an agricultural or silvicultural producer association 
     or other group of producers;
       ``(ii) a State or unit of local government, including an 
     irrigation company and a water district and canal company; or
       ``(iii) a federally recognized Indian tribe.
       ``(2) Partnership agreement.--The term `partnership 
     agreement' means a cooperative or contribution agreement 
     entered into between the Secretary and a partner.
       ``(3) Regional water conservation activity.--The term 
     `regional water conservation activity' means a water 
     conservation activity carried out on a regional or other 
     appropriate level, as determined by the Secretary, to benefit 
     agricultural land.
       ``(c) Establishment.--In carrying out the program under 
     this chapter, the Secretary shall promote ground and surface 
     water conservation--
       ``(1) by providing cost-share assistance and incentive 
     payments to producers to carry out water conservation 
     activities with respect to the agricultural operations of 
     producers; and
       ``(2) by working cooperatively with partners, in accordance 
     with subsection (d), on a regional level to benefit working 
     agricultural land.
       ``(d) Partnership Agreements.--
       ``(1) In general.--The Secretary may enter into partnership 
     agreements to meet the objectives of the program under this 
     chapter.
       ``(2) Applications.--An application to the Secretary to 
     enter into an agreement under paragraph (1) shall include--
       ``(A) a description of--
       ``(i) the geographical area;
       ``(ii) the current conditions;
       ``(iii) the water conservation objectives to be achieved; 
     and
       ``(iv) the expected level of participation by producers;
       ``(B) a description of the partners collaborating to 
     achieve the project objectives and the roles, 
     responsibilities, and capabilities of each partner;
       ``(C) a description of--
       ``(i) the program resources requested from the Secretary; 
     and
       ``(ii) the non-Federal resources that will be leveraged by 
     the Federal contribution; and
       ``(D) other such elements as the Secretary considers 
     necessary to adequately evaluate and competitively select 
     applications for award.
       ``(e) Duties of the Secretary.--
       ``(1) Water conservation activities by producers.--The 
     Secretary shall select water conservation projects proposed 
     by producers according to applicable requirements under the 
     environmental quality incentives program established under 
     this chapter.
       ``(2) Regional water conservation activities.--
       ``(A) Competitive process.--The Secretary shall conduct a 
     competitive process to select the regional water conservation 
     activities for funding under this section.
       ``(B) Public availability.--In carrying out the process, 
     the Secretary shall make public the criteria used in 
     evaluating applications.
       ``(C) Priority.--The Secretary may give a higher priority 
     to proposals from partners that--
       ``(i) include high percentages of agricultural land and 
     producers in a region or other appropriate area;
       ``(ii) result in high levels of on-the-ground water 
     conservation activities;
       ``(iii) significantly enhance agricultural activity and 
     related economic development;
       ``(iv) allow for monitoring and evaluation; and
       ``(v) assist producers in meeting Federal, State and local 
     regulatory requirements.
       ``(D) Administration.--The Secretary shall ensure that 
     resources made available for regional water conservation 
     activities under this section are delivered in accordance 
     with applicable program rules.
       ``(f) Eastern Snake Plain Aquifer Pilot.--
       ``(1) In general.--Of amounts made available under 
     subsection (h), the Secretary shall reserve $2,000,000, to 
     remain available until expended, for regional water 
     conservation activities in the Eastern Snake Aquifer Region.
       ``(2) Approval.--The Secretary may approve regional water 
     conservation activities under this subsection that address, 
     in whole or in part, water quality issues.
       ``(g) Consistency With State Law.--Any water conservation 
     activity conducted under this section shall be consistent 
     with applicable State water law.
       ``(h) Funding.--
       ``(1) Availability of funds.--Of the funds of the Commodity 
     Credit Corporation, in addition to amounts made available 
     under section 1241(a) to carry out this chapter, the 
     Secretary shall use $60,000,000 for each of fiscal years 2008 
     through 2012.
       ``(2) Limitation.--None of the funds made available for 
     regional water conservation activities under this section may 
     be used to pay for the administrative expenses of 
     partners.''.

     SEC. 2360. ORGANIC CONVERSION.

       The Food Security Act of 1985 is amended by inserting after 
     section 1240I (16 U.S.C. 3839aa-9) the following:

     ``SEC. 1240J. ORGANIC CONVERSION.

       ``(a) Definitions.--In this section:
       ``(1) National organic program.--The term `national organic 
     program' means the national organic program established under 
     the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. 
     seq.).
       ``(2) Organic system plan.--The term `organic system plan' 
     means an organic plan approved under the national organic 
     program.
       ``(b) Establishment.--Under the environmental quality 
     incentives program established under this chapter, not later 
     than 180 days after the date of enactment of this section, 
     the Secretary shall establish a program under which the 
     Secretary shall provide cost-share and incentive payments to 
     producers to promote conservation practices and activities 
     for production systems undergoing conversion on some or all 
     of the operations of the producer to organic production in 
     accordance with the Organic Foods Production Act of 1990 (7 
     U.S.C. 6501 et seq.).
       ``(c) Organic Conversion Cost-Share and Incentive 
     Payments.--The Secretary shall provide organic conversion 
     cost-share and incentive payments to producers that--
       ``(1) are converting to organic production systems, 
     including producers with existing certified organic 
     production for conversion to organic production of land and 
     livestock not previously certified organic; and
       ``(2) enter into contracts with the Secretary for eligible 
     practices and activities described in subsection (d).
       ``(d) Eligible Practices and Activities.--Producers may use 
     funds made available under subsection (c) for--
       ``(1) practices and activities during conversion to 
     certified organic production that--
       ``(A) are required by, or consistent with, an approved 
     organic system plan; and
       ``(B) protect resources of concern, as identified by the 
     Secretary;
       ``(2) technical services, including the costs of developing 
     an approved organic system plan; and
       ``(3) such other measures as the Secretary determines to be 
     appropriate and consistent with an approved organic system 
     plan.
       ``(e) Eligible Producers.--To be eligible to receive cost-
     share and incentive payments under this section, a producer 
     shall agree--
       ``(1) to develop and carry out conservation and 
     environmental activities that--
       ``(A) are required by, or consistent with, an approved 
     organic system plan; and
       ``(B) protect resources of concern, as identified by the 
     Secretary;
       ``(2) to receive technical and educational assistance from 
     the Secretary or from an organization, institute, or 
     consultant with a cooperative agreement with the Secretary 
     relating to--
       ``(A) the development of an organic system plan and the 
     implementation of conservation practices and activities that 
     are part of an organic system plan; or
       ``(B) other aspects of an organic system plan, including 
     marketing, credit, business, and risk management plans; and
       ``(3) to submit annual verification by a certifying entity 
     accredited by the Secretary to determine the compliance of 
     the producer with organic certification requirements.
       ``(f) Term.--A contract under this section shall have a 
     term of--
       ``(1) not less than 3 years; and
       ``(2) not more than 4 years.

[[Page 29258]]

       ``(g) Limitations on Payments.--As part of the payment 
     limitation described in section 1240G, an individual or 
     entity may not receive, directly or indirectly, cost-share or 
     incentive payments under this section--
       ``(1) for a period of more than 4 years; or
       ``(2) that, in the aggregate and exclusive of technical 
     assistance, exceed--
       ``(A) $20,000 per year; or
       ``(B) a total amount of $80,000.
       ``(h) Termination of Contracts.--The Secretary may cancel 
     or otherwise nullify a contract entered into under this 
     section if the Secretary determines the producers are not 
     pursuing organic certification.''.

     SEC. 2361. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.

       The Food Security Act of 1985 is amended by inserting after 
     section 1240J (as added by section 2360) the following:

     ``SEC. 1240K. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.

       ``(a) Definition of Chesapeake Bay Watershed.--In this 
     section, the term `Chesapeake Bay watershed' includes all 
     tributaries, backwaters, and side channels (including 
     watersheds) draining into the Chesapeake Bay.
       ``(b) Establishment.--The Secretary shall use the 
     authorities granted under the environmental quality 
     incentives program established under this chapter to address 
     natural resource concerns relating to agricultural and 
     nonindustrial private forest land in the Chesapeake Bay 
     watershed.
       ``(c) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use $165,000,000 to carry 
     out this section for the period of fiscal years 2008 through 
     2012.''.

                     CHAPTER 3--FARMLAND PROTECTION

               Subchapter A--Farmland Protection Program

     SEC. 2371. FARMLAND PROTECTION PROGRAM.

       (a) Definitions.--Section 1238H of the Food Security Act of 
     1985 (16 U.S.C. 3838h) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) any agency of any State or local government or an 
     Indian tribe (including a farmland protection board or land 
     resource council established under State law); or
       ``(B) any organization that--
       ``(i) is organized for, and at all times since the 
     formation of the organization has been operated principally 
     for, 1 or more of the conservation purposes specified in 
     clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of 
     the Internal Revenue Code of 1986;
       ``(ii) is an organization described in section 501(c)(3) of 
     that Code that is exempt from taxation under section 501(a) 
     of that Code; and
       ``(iii) is--

       ``(I) described in paragraph (1) or (2) of section 509(a) 
     of that Code; or
       ``(II) described in section 509(a)(3), and is controlled by 
     an organization described in section 509(a)(2), of that 
     Code.''; and

       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking clauses (i) and (ii) 
     and inserting the following:
       ``(i) has prime, unique, or other productive soil;
       ``(ii) contains historical or archaeological resources; or
       ``(iii) furthers a State or local policy consistent with 
     the purposes of the program.''; and
       (B) in subparagraph (B)--
       (i) in clause (iv), by striking ``and'' at the end;
       (ii) by striking clause (v) and inserting the following:
       ``(v) forest land that--

       ``(I) contributes to the economic viability of an 
     agricultural operation; or
       ``(II) serves as a buffer to protect an agricultural 
     operation from development; and

       ``(vi) land that is incidental to land described in clauses 
     (i) through (v), if the incidental land is determined by the 
     Secretary to be necessary for the efficient administration of 
     a conservation easement.''.
       (b) Farmland Protection.--Section 1238I of the Food 
     Security Act of 1985 (16 U.S.C. 3838i) is amended--
       (1) in subsection (a), by striking ``purchase conservation 
     easements'' and all the follows through the end of the 
     subsection and inserting ``enter into cooperative agreements 
     with eligible entities for the eligible entities to purchase 
     permanent conservation easements or other interests in 
     eligible land for the purpose of protecting the agricultural 
     use and related conservation values of the land by limiting 
     incompatible nonagricultural uses of the land.'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (e) and (f), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Terms and Conditions for Cooperative Agreements.--
       ``(1) In general.--The Secretary shall establish the terms 
     and conditions of any cooperative agreement entered into 
     under this subchapter under which the eligible entity shall 
     use funds provided by the Secretary.
       ``(2) Minimum requirements.--A cooperative agreement shall, 
     at a minimum--
       ``(A) specify the qualifications of the eligible entity to 
     carry out the responsibilities of the eligible entity under 
     the program, including acquisition and management policies 
     and procedures that ensure the long-term integrity of the 
     conservation easement protections;
       ``(B) subject to subparagraph (C), identify a specific 
     project or a range of projects funded under the agreement;
       ``(C) allow, upon mutual agreement of the parties, 
     substitution of qualified projects that are identified at the 
     time of substitution;
       ``(D) specify the manner in which the eligible entity will 
     evaluate and report the use of funds to the Secretary;
       ``(E) allow the eligible entity flexibility to use the 
     terms and conditions of the eligible entity for conservation 
     easements and other purchases of interests in land, except 
     that--
       ``(i) subject to clause (ii), each easement shall include a 
     limitation on the total quantity of impervious surface of not 
     more than--

       ``(I) 20 percent of the first 10 acres;
       ``(II) 5 percent of the next 90 acres; and
       ``(III) 1 percent of any additional acres; and

       ``(ii) the Secretary may waive a limitation under clause 
     (i) after a determination by the Secretary that the eligible 
     entity has in place a requirement that provides 
     substantially-similar protection consistent with agricultural 
     activities regarding the impervious surfaces to be allowed 
     for any conservation easement or other interest in land 
     purchases using funds provided under the program;
       ``(F) require appraisals of acquired interests in eligible 
     land that comply with, at the option of the eligible entity--
       ``(i) the Uniform Standards of Professional Appraisal 
     Practice; or
       ``(ii) other industry-approved standard, as determined by 
     the Secretary; and
       ``(G) allow as part of the share of the eligible entity of 
     the cost to purchase a conservation easement or other 
     interest in eligible land described in subsection (a), that 
     an eligible entity may include a charitable donation or 
     qualified conservation contribution (as defined by section 
     170(h) of the Internal Revenue Code of 1986), from the 
     private landowner from which the conservation easement will 
     be purchased.
       ``(c) Cost Sharing.--
       ``(1) In general.--Subject to paragraphs (2) and (3), the 
     Secretary may provide a share of the purchase price of a 
     conservation easement or other interest in land acquired by 
     an eligible entity under the program.
       ``(2) Maximum amount of fair market value.--The Secretary 
     shall not pay more than 50 percent of the appraised fair 
     market value of the acquisition under this subsection.
       ``(3) Minimum share by eligible entity.--The eligible 
     entity shall be required to provide a share of the cost under 
     this subsection in an amount that is not less than the lesser 
     of--
       ``(A) \1/2\ of the purchase price of the acquisition;
       ``(B) if the landowner has made a donation of 25 percent or 
     less of the appraised fair market value of the acquisition, 
     an amount that, when combined with the donation, equals the 
     amount of the payment by the Secretary; or
       ``(C) if the landowner has made a donation of more than 25 
     percent of the appraised fair market value of the 
     acquisition, \1/3\ of the purchase price of the acquisition.
       ``(d) Protection of Federal Investment.--
       ``(1) In general.--The Secretary shall ensure that the 
     terms of an easement acquired by the eligible entity provides 
     protection for the Federal investment through an executory 
     limitation by the Federal Government.
       ``(2) Relationship to federal acquisition of real 
     property.--The inclusion of a Federal executory limitation 
     described in paragraph (1) shall--
       ``(A) not be considered the Federal acquisition of real 
     property; and
       ``(B) not trigger any Federal appraisal or other real 
     property requirements, including the Federal standards and 
     procedures for land acquisition.''; and
       (4) in subsection (f) (as redesignated by paragraph (2)), 
     by striking ``Cost Sharing.--'' and all that follows through 
     ``Bidding down.--'' and inserting ``Bidding Down.--''.

                Subchapter B--Grassland Reserve Program

     SEC. 2381. GRASSLAND RESERVE PROGRAM.

       Subchapter C of chapter 2 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3838n et seq.) is 
     amended to read as follows:

               ``Subchapter C--Grassland Reserve Program

     ``SEC. 1238N. DEFINITIONS.

       ``In this subchapter:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) any agency of any State or local government or an 
     Indian tribe (including a farmland protection board or land 
     resource council established under State law); or
       ``(B) any organization that--
       ``(i) is organized for, and at all times since the 
     formation of the organization has been operated principally 
     for, 1 or more of the conservation purposes specified in 
     clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of 
     the Internal Revenue Code of 1986;

[[Page 29259]]

       ``(ii) is an organization described in section 501(c)(3) of 
     that Code that is exempt from taxation under section 501(a) 
     of that Code; and
       ``(iii) is--

       ``(I) described in paragraph (1) or (2) of section 509(a) 
     of that Code; or
       ``(II) described in section 509(a)(3), and is controlled by 
     an organization described in section 509(a)(2), of that Code.

       ``(2) Eligible land.--The term `eligible land' means 
     private land that--
       ``(A) is grassland, rangeland, land that contains forbs, or 
     shrub land (including improved rangeland and pastureland) for 
     which grazing is the predominant use;
       ``(B) is located in an area that has been historically 
     dominated by grassland, forbs, or shrub land, and the land 
     potentially could provide habitat for animal or plant 
     populations of significant ecological value if the land--
       ``(i) is retained in the current use of the land;
       ``(ii) is restored to a natural condition;
       ``(iii) contains historical or archeological resources;
       ``(iv) would further the goals and objectives of State, 
     regional, and national fish, and wildlife conservation plans 
     and initiatives; or
       ``(v) is incidental to land described in clauses (i) 
     through (iv), if the incidental land is determined by the 
     Secretary to be necessary for the efficient administration of 
     an agreement or conservation easement.
       ``(3) Permanent conservation easement.--The term `permanent 
     conservation easement' means a conservation easement that 
     is--
       ``(A) a permanent easement; or
       ``(B) in a State that imposes a maximum duration for 
     easements, an easement for the maximum duration allowed under 
     State law.

     ``SEC. 1238O. GRASSLAND RESERVE PROGRAM.

       ``(a) Establishment.--The Secretary shall establish and 
     carry out a grassland reserve program through which the 
     Secretary shall provide payments and technical assistance to 
     landowners to assist in restoring and conserving eligible 
     land described in section 1238N(2).
       ``(b) Enrollment of Land.--
       ``(1) In general.--The Secretary may enroll eligible land 
     in the program through--
       ``(A) an easement or contract described in paragraph (2); 
     or
       ``(B) a cooperative agreement with an eligible entity.
       ``(2) Options.--Eligible land enrolled in the program shall 
     be subject to--
       ``(A) a 30-year contract;
       ``(B) a 30-year conservation easement; or
       ``(C) a permanent conservation easement.
       ``(3) Enrollment of conservation reserve acreage.--
       ``(A) In general.--Eligible land enrolled in the 
     conservation reserve program established under subchapter B 
     of chapter 1 may be enrolled into permanent conservation 
     easements under this subchapter if--
       ``(i) the Secretary determines that the eligible land--

       ``(I) is of high ecological value; and
       ``(II) would be under significant threat of conversion to 
     other uses if the conservation reserve program contract were 
     terminated; and

       ``(ii) the landowner agrees to the enrollment.
       ``(B) Maximum enrollment.--The number of acres of 
     conservation reserve program land enrolled under this 
     paragraph in a calendar year shall not exceed the number of 
     acres that could be funded by 10 percent of the total amount 
     of funds available for this section for a fiscal year.
       ``(C) Prohibition on duplicate payments.--Eligible land 
     enrolled in the program shall no longer be eligible for 
     payments under the conservation reserve program.
       ``(c) Restoration Agreements.--The Secretary may enter into 
     a restoration agreement with a landowner, as determined 
     appropriate by the Secretary.
       ``(d) Conservation Easement Title.--The title holder of a 
     conservation easement obtained under this subchapter may be--
       ``(1) the Secretary; or
       ``(2) an eligible entity.

     ``SEC. 1238P. DUTIES.

       ``(a) Duties of Landowners.--
       ``(1) In general.--To become eligible to enroll eligible 
     land through the grant of a conservation easement, the 
     landowner shall--
       ``(A) create and record an appropriate deed restriction in 
     accordance with applicable State law;
       ``(B) provide proof of clear title to the underlying fee 
     interest in the eligible land that is subject of the 
     conservation easement;
       ``(C) provide a written statement of consent to the 
     easement signed by persons holding a security interest or any 
     vested interest in the land;
       ``(D) grant the conservation easement to the Secretary or 
     an eligible entity; and
       ``(E) comply with the terms of the conservation easement 
     and any associated restoration agreement.
       ``(2) Restoration agreement.--If a restoration agreement is 
     required by the Secretary, the landowner shall develop and 
     implement a restoration plan.
       ``(b) Duties of Secretary.--
       ``(1) Evaluation of offers.--
       ``(A) In general.--The Secretary shall establish criteria 
     to evaluate and rank applications for easements and contracts 
     under this subchapter.
       ``(B) Considerations.--In establishing the criteria, the 
     Secretary shall emphasize support for--
       ``(i) grazing operations;
       ``(ii) plant and animal biodiversity;
       ``(iii) grassland, land that contains forbs, and shrubland 
     under the greatest threat of conversion; and
       ``(iv) other considerations, as determined by the 
     Secretary.
       ``(C) Priority.--In evaluating offers under this 
     subchapter, the Secretary may give priority to applications 
     that--
       ``(i) include a cash contribution from the eligible entity 
     submitting the application; or
       ``(ii) leverage resources from other sources.
       ``(2) Compensation.--
       ``(A) In general.--
       ``(i) Easements and contracts.--In return for the granting 
     of an easement, the Secretary shall provide to the landowner 
     an amount that is equal to--

       ``(I) in the case of a permanent easement, the fair market 
     value of the land less the grazing value of the land 
     encumbered by the easement; and
       ``(II) in the case of a 30-year easement or 30-year 
     contract, 30 percent of the fair market value of the land 
     less the grazing value of the land for the period during 
     which the land is encumbered by the easement.

       ``(ii) Restoration agreements.--In making cost-share 
     payments for restoration agreements, the Secretary shall make 
     payments to the landowner--

       ``(I) in the case of a permanent easement, in an amount 
     that is not less than 90, but not more than 100, percent of 
     the eligible costs; and
       ``(II) in the case of a 30-year easement or 30-year 
     contract, in an amount that is not less than 50, but not more 
     than 75, percent of the eligible costs.

       ``(B) Delivery of payments.--
       ``(i) Payment schedule.--Except as otherwise provided in 
     this subchapter, payments may be provided pursuant to an 
     easement, contract, or other agreement, in not more than 30 
     annual payments, and in an equal or unequal amounts, as 
     agreed to by the Secretary and the landowner.
       ``(ii) Payments to others.--If an owner that is entitled to 
     a payment under this subchapter dies, becomes incompetent, is 
     otherwise unable to receive the payment, or is succeeded by 
     another person who renders or completes the required 
     performance, the Secretary shall make the payment, in 
     accordance with regulations promulgated by the Secretary and 
     without regard to any other provision of law, in such manner 
     as the Secretary determines is fair and reasonable after 
     considering all the circumstances.
       ``(3) Technical assistance.--If a restoration agreement is 
     required by the Secretary, the Secretary shall provide 
     technical assistance to comply with the terms and conditions 
     of the restoration agreement.

     ``SEC. 1238Q. TERMS AND CONDITIONS.

       ``(a) Terms and Conditions of Easement or Contracts.--An 
     easement or contract under this subchapter shall--
       ``(1) permit--
       ``(A) common grazing practices, including maintenance and 
     necessary cultural practices, on the land in a manner that is 
     consistent with maintaining the viability of grassland, forb, 
     and shrub species appropriate to that locality;
       ``(B) haying, mowing, or harvesting for seed production, 
     subject to appropriate restrictions during the nesting season 
     for birds in the local area that are in significant decline 
     or are conserved in accordance with Federal or State law, as 
     determined by the State Conservationist; and
       ``(C) fire presuppression, rehabilitation, and construction 
     of fire breaks and fences (including placement of the posts 
     necessary for fences);
       ``(2) prohibit--
       ``(A) the production of crops (other than hay), fruit 
     trees, vineyards, or any other agricultural commodity that is 
     inconsistent with maintaining grazing land; and
       ``(B) except as permitted under a restoration plan, the 
     conduct of any other activity that would be inconsistent with 
     maintaining grazing land covered by the easement or 
     agreement; and
       ``(3) include such additional provisions as the Secretary 
     determines are appropriate to carry out or facilitate the 
     administration of this subchapter.
       ``(b) Terms and Conditions of Cooperative Agreements.--
       ``(1) In general.--The Secretary shall establish the terms 
     and conditions of any cooperative agreement entered into 
     under this subchapter under which the eligible entity shall 
     use funds provided by the Secretary.
       ``(2) Minimum requirements.--A cooperative agreement shall, 
     at a minimum--
       ``(A) specify the qualification of the eligible entity to 
     carry out the responsibilities of the eligible entity under 
     the program, including acquisition, monitoring, enforcement, 
     and management policies and procedures that ensure the long-
     term integrity of the conservation easement protections;

[[Page 29260]]

       ``(B) subject to subparagraph (C), identify a specific 
     project or a range of projects funded under the agreement;
       ``(C) allow, upon mutual agreement of the parties, 
     substitution of qualified projects that are identified at the 
     time of substitution;
       ``(D) specify the manner in which the eligible entity will 
     evaluate and report the use of funds to the Secretary;
       ``(E) allow the eligible entity flexibility to develop and 
     use terms and conditions for conservation easements and other 
     purchases of interest in eligible land, if the Secretary 
     finds the terms and conditions consistent with the purposes 
     of the program and adequate to achieve and permit effective 
     enforcement of the conservation purposes of the conservation 
     easements or other interests;
       ``(F) require appraisals of acquired interests in eligible 
     land that comply with a method approved by industry;
       ``(G) if applicable, allow as part of the share of the 
     eligible entity of the cost to purchase a conservation 
     easement or other interest in eligible land described in 
     section 1238O(b), that an eligible entity may include a 
     charitable donation or qualified conservation contribution 
     (as defined by section 170(h) of the Internal Revenue Code of 
     1986), from the private landowner for which the conservation 
     easement will be purchased; and
       ``(H) provide for a schedule of payments to an eligible 
     entity, as agreed to by the Secretary and the eligible 
     entity, over a term of not to exceed 30 years.
       ``(3) Protection of federal investment.--
       ``(A) In general.--The Secretary shall ensure that the 
     terms of an easement acquired by the eligible entity provides 
     protection for the Federal investment through an executory 
     limitation by the Federal government.
       ``(B) Relationship to federal acquisition of real 
     property.--The inclusion of an executory limitation described 
     in subparagraph (A) shall--
       ``(i) not be considered the Federal acquisition of real 
     property; and
       ``(ii) not trigger any Federal appraisal or other real 
     property requirements, including the Federal standards and 
     procedures for land acquisition.
       ``(C) Terms of restoration agreement.--A restoration 
     agreement shall contain--
       ``(i) a statement of the conservation measures and 
     practices that will be undertaken in regard to the eligible 
     land subject to the conservation easement;
       ``(ii) restrictions on the use of the eligible land subject 
     to the conservation easement; and
       ``(iii) a statement of the respective duties of the 
     Secretary, landowner, and eligible entity, as appropriate.
       ``(c) Violation.--If a violation occurs of the terms or 
     conditions of a conservation easement, contract, cooperative 
     agreement or restoration agreement entered into under this 
     section--
       ``(1) the conservation easement, contract, cooperative 
     agreement, or restoration agreement shall remain in force; 
     and
       ``(2) the Secretary may require the owner or entity 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.''.

                 CHAPTER 4--OTHER CONSERVATION PROGRAMS

     SEC. 2391. CONSERVATION SECURITY PROGRAM.

       Subchapter A of chapter 2 of subtitle D of title XII of the 
     Food Security Act of 1985 is amended by adding after section 
     1238C (16 U.S.C. 3838c) the following:

     ``SEC. 1238D. PERIOD OF EFFECTIVENESS.

       ``(a) In General.--This subchapter, and the terms and 
     conditions of the conservation security program, shall 
     continue to apply to conservation security contracts entered 
     into as of the date before the date of enactment of this 
     section.
       ``(b) Payments.--The Secretary shall make payments under 
     this subchapter with respect to conservation security 
     contracts described in subsection (a) during the term of the 
     contracts.
       ``(c) Prohibition on New Contracts.--A conservation 
     security contract may not be entered into or renewed under 
     this subchapter as of the date of enactment of this section.
       ``(d) Limitation.--A contract described in subsection (a) 
     may not be administered under the regulations issued under 
     section 1240Y.''.

     SEC. 2392. CONSERVATION OF PRIVATE GRAZING LAND.

       Section 1240M(e) of the Food Security Act of 1985 (16 
     U.S.C. 3839bb(e)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 2393. REAUTHORIZATION OF WILDLIFE HABITAT INCENTIVE 
                   PROGRAM.

       Section 1240N of the Food Security Act of 1985 (16 U.S.C. 
     3839bb-1) is amended--
       (1) in subsection (b)--
       (A) in the subsection heading, by striking ``Cost-Share'';
       (B) in paragraph (1), by inserting ``and incentive'' after 
     ``cost-share''; and
       (C) in paragraph (2)(B), by striking ``15 percent'' and 
     inserting ``25 percent''; and
       (2) by adding at the end the following:
       ``(d) Fish and Wildlife Conservation Plans and 
     Initiatives.--In carrying out this section, the Secretary 
     shall give priority to projects that would further the goals 
     and objectives of State, regional, and national fish and 
     wildlife conservation plans and initiatives.
       ``(e) Duration of Program.--Using funds made available 
     under section 1241(a)(7), the Secretary shall carry out the 
     program during each of fiscal years 2008 through 2012.''.

     SEC. 2394. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

       Section 1240O of the Food Security Act of 1985 (16 U.S.C. 
     3839bb-2) is amended by striking subsection (b) and inserting 
     the following:
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $20,000,000 for 
     each of fiscal years 2008 through 2012.''.

     SEC. 2395. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND 
                   SEDIMENT CONTROL.

       Section 1240P(c) of the Food Security Act of 1985 (16 
     U.S.C. 3839bb-3(c)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 2396. FARM VIABILITY PROGRAM.

       Section 1238J(b) of the Food Security Act of 1985 (16 
     U.S.C. 3838j(b)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 2397. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.

       Chapter 5 of subtitle D of title XII of the Food Security 
     Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by adding 
     at the end the following:

     ``SEC. 1240Q. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.

       ``(a) Establishment.--The Secretary shall establish and 
     carry out a demonstration program in not less than 30 small 
     watersheds in States of the Upper Mississippi River basin to 
     identify and promote the most cost-effective and efficient 
     approaches to reducing the loss of nutrients to surface 
     waters.
       ``(b) Purpose.--The demonstration program shall demonstrate 
     in small watersheds performance-based and market-based 
     approaches--
       ``(1) to reduce the loss of nutrients to surface waters 
     from agricultural land; and
       ``(2) to monitor the cost-effectiveness of management 
     practices designed to reduce the loss of nutrients to surface 
     waters from agricultural land.
       ``(c) Partnerships.--In carrying out this section, the 
     Secretary may establish or identify, as appropriate, 
     partnerships to select the watersheds and to encourage 
     cooperative effort among the Secretary and State, local, and 
     nongovernmental organizations.
       ``(d) Selection of Small Watersheds.--In selecting small 
     watersheds for participation in the program, the Secretary 
     shall consider the extent to which--
       ``(1) reducing nutrient losses to surface water in the 
     small watershed would be likely to result in measurable 
     improvements in water quality in the small watershed;
       ``(2) a demonstration project would use innovative 
     approaches to attract a high level of producer participation 
     in the small watershed to ensure success;
       ``(3) a demonstration project could be implemented through 
     a third party, including a producer organization, farmer 
     cooperative, conservation district, water utility, agency of 
     State or local government, conservation organization, or 
     other organization with appropriate expertise;
       ``(4) a demonstration project would leverage funding from 
     State, local, and private sources;
       ``(5) a demonstration project would demonstrate market-
     based approaches to nutrient losses to surface waters;
       ``(6) baseline data related to water quality and 
     agricultural practices and contributions from nonagricultural 
     sources as relevant in the small watershed has been collected 
     or could be readily collected; and
       ``(7) water quality monitoring infrastructure is in place 
     or could reasonably be put in place in the small watershed.
       ``(e) Use of Funds.--
       ``(1) In general.--Funding provided for the program under 
     subsection(f) shall be used in not less than 30 small 
     watersheds--
       ``(A) to provide technical assistance;
       ``(B) to provide and assess financial incentives to 
     agricultural producers implementing conservation practices 
     that reduce nutrient losses to surface waters;
       ``(C) to monitor the performance and costs of alternative 
     nutrient management techniques, including soil tests, stalk 
     tests, cover crops, soil amendments, buffers, and tillage 
     practices; and
       ``(D) to share the cost of data collection, monitoring, and 
     analysis.
       ``(2) Prohibition.--None of the funds made available to 
     carry out the program for each fiscal year may be used for 
     administrative expenses.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 2398. EMERGENCY LANDSCAPE RESTORATION PROGRAM.

       (a) In General.--Chapter 5 of subtitle D of the Food 
     Security Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended 
     by section 2386) is amended by adding at the end the 
     following:

[[Page 29261]]



     ``SEC. 1240R. EMERGENCY LANDSCAPE RESTORATION PROGRAM.

       ``(a) Definition of Eligible Recipient.--In this section, 
     the term `eligible recipient' means--
       ``(1) an organization that is eligible for technical 
     assistance and cost-share payments under this section and 
     assists working agricultural land and nonindustrial private 
     forest land, including--
       ``(A) a community-based association; and
       ``(B) a city, county, or regional government, including a 
     watershed council and a conservation district; and
       ``(2) an individual who is eligible for technical 
     assistance and cost-share payments under this section, 
     including--
       ``(A) a producer;
       ``(B) a rancher;
       ``(C) an operator;
       ``(D) a nonindustrial private forest landowner; and
       ``(E) a landlord on working agricultural land.
       ``(b) Purpose.--The purpose of the emergency landscape 
     restoration program is to rehabilitate watersheds, 
     nonindustrial private forest land, and working agricultural 
     land adversely affected by natural catastrophic events, by--
       ``(1) providing a source of assistance for restoration of 
     the land back to a productive state;
       ``(2) preventing further impairment of land and water, 
     including prevention through the purchase of floodplain 
     easements; and
       ``(3) providing further protection of natural resources.
       ``(c) Establishment.--The Secretary, acting through the 
     Natural Resources Conservation Service, shall carry out an 
     emergency landscape restoration program under which technical 
     assistance and cost-share payments are made available to 
     eligible recipients to carry out remedial activities to 
     restore landscapes damaged by--
       ``(1) fire;
       ``(2) drought;
       ``(3) flood;
       ``(4) hurricane force or excessive winds;
       ``(5) ice storms or blizzards; or
       ``(6) other resource-impacting natural events, as 
     determined by the Secretary.
       ``(d) Prioritization.--The Secretary shall provide the 
     highest priority for those activities that protect human 
     health and safety.
       ``(e) Technical Assistance and Cost-Share Payments.--
       ``(1) In general.--The Secretary shall provide technical 
     assistance and cost-share payments in amounts of up to 75 
     percent of the cost of remedial activities described in 
     paragraph (2) to rehabilitate watersheds, nonindustrial 
     private forest land, and working agricultural land.
       ``(2) Remedial activities.--Remedial activities that are 
     eligible for technical assistance and cost-share payments 
     under this section include--
       ``(A) removal of debris from streams, agricultural land, 
     and nonindustrial forest land, including--
       ``(i) the restoration of natural hydrology; and
       ``(ii) the removal of barriers for aquatic species;;
       ``(B) restoration of destabilized streambanks;
       ``(C) establishment of cover on critically eroding land;
       ``(D) restoration of fences;
       ``(E) construction of conservation structures;
       ``(F) provision of water for livestock in drought 
     situations;
       ``(G) rehabilitation of farm or ranch land;
       ``(H) restoration of damaged nonindustrial private forest 
     land, including--
       ``(i) the removal of damaged standing trees and downed 
     timber; and
       ``(ii) site preparation, tree planting, direct seeding, and 
     firebreaks;
       ``(I) the carrying out of emergency water conservation 
     measures;
       ``(J) restoration of wildlife habitat and corridors;
       ``(K) livestock carcass removal and disposal; and
       ``(L) such other remedial activities as are determined by 
     the Secretary.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section such sums as are necessary for each of fiscal 
     years 2008 through 2012, to remain available until expended.
       ``(g) Temporary Administration of Emergency Landscape 
     Restoration Program.--
       ``(1) In general.--During the period beginning on the date 
     of enactment of this section and ending on the termination 
     date described in paragraph (2), to ensure that technical 
     assistance, cost-share payments, and other payments continue 
     to be administered in an orderly manner until the date on 
     which final regulations are promulgated to implement the 
     emergency landscape restoration program, the Secretary shall, 
     to the extent the terms and conditions of the programs 
     described in clauses (i) and (ii) of subparagraph (A) are 
     consistent with the emergency landscape restoration program, 
     continue to--
       ``(A) provide technical assistance, cost-share payments, 
     and other payments under the terms and conditions of--
       ``(i) the emergency conservation program established under 
     title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 
     2201 et seq.); and
       ``(ii) the emergency watershed protection program 
     established under section 403 of the Agricultural Credit Act 
     of 1978 (16 U.S.C. 2203); and
       ``(B) use for those purposes--
       ``(i) any funds made available under those programs; and
       ``(ii) as the Secretary determines to be necessary, any 
     funds made available to carry out the emergency landscape 
     restoration program.
       ``(2) Termination of authority.--The authority of the 
     Secretary to carry out paragraph (1) shall terminate on the 
     effective date of final regulations to implement the 
     emergency landscape restoration program.''.
       (b) Conforming Amendments.--
       (1) Effective on the effective date of final regulations to 
     implement the emergency landscape restoration program under 
     section 1240R of the Food Security Act of 1985 (as added by 
     subsection (a)), title IV of the Agricultural Credit Act of 
     1978 (16 U.S.C. 2201 et seq.) is repealed.
       (2) Section 1211(a)(3)(C) of the Food Security Act of 1985 
     (16 U.S.C. 3811(a)(3)(C)) is amended by inserting ``section 
     1240R or'' after ``a payment under''.
       (3) Section 1221(b)(3)(C) of the Food Security Act of 1985 
     (16 U.S.C. 3821(b)(3)(C)) is amended by inserting ``section 
     1240R or'' after ``A payment under''.

     SEC. 2399. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE 
                   PROGRAM.

       Chapter 5 of subtitle D of title XII of the Food Security 
     Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended by section 
     2387(a)) is amended by adding at the end the following:

     ``SEC. 1240S. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE 
                   PROGRAM.

       ``(a) In General.--The Secretary shall establish a 
     voluntary public access program under which States and tribal 
     governments may apply for grants to encourage owners and 
     operators of privately-held farm, ranch, and forest land to 
     voluntarily make that land available for access by the public 
     for wildlife-dependent recreation, including hunting or 
     fishing under programs administered by the States and tribal 
     governments.
       ``(b) Applications.--In submitting applications for a grant 
     under the program, a State or tribal government shall 
     describe--
       ``(1) the benefits that the State or tribal government 
     intends to achieve by encouraging public access to private 
     farm and ranch land for--
       ``(A) hunting and fishing; and
       ``(B) to the maximum extent practicable, other recreational 
     purposes; and
       ``(2) the methods that will be used to achieve those 
     benefits.
       ``(c) Priority.--In approving applications and awarding 
     grants under the program, the Secretary shall give priority 
     to States and tribal governments that propose--
       ``(1) to maximize participation by offering a program the 
     terms of which are likely to meet with widespread acceptance 
     among landowners;
       ``(2) to ensure that land enrolled under the State or 
     tribal government program has appropriate wildlife habitat;
       ``(3) to strengthen wildlife habitat improvement efforts on 
     land enrolled in a special conservation reserve enhancement 
     program described in section 1234(f)(3) by providing 
     incentives to increase public hunting and other recreational 
     access on that land;
       ``(4) to use additional Federal, State, tribal government, 
     or private resources in carrying out the program; and
       ``(5) to make available to the public the location of land 
     enrolled.
       ``(d) Relationship to Other Laws.--Nothing in this section 
     preempts a State or tribal government law (including any 
     State or tribal government liability law).
       ``(e) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.''.

                 Subtitle E--Funding and Administration

     SEC. 2401. FUNDING AND ADMINISTRATION.

       Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
     3841(a)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``2007'' and inserting ``2012''; and
       (2) by striking paragraphs (3) through (7) and inserting 
     the following:
       ``(3) The conservation security program under subchapter A 
     of chapter 2, using $2,317,000,000 to administer contracts 
     entered into as of the day before the date of enactment of 
     the Food and Energy Security Act of 2007, to remain available 
     until expended.
       ``(4) The conservation stewardship program under subchapter 
     B of chapter 6.
       ``(5) The farmland protection program under subchapter B of 
     chapter 2, using, to the maximum extent practicable, 
     $97,000,000 for each of fiscal years 2008 through 2012.
       ``(6) The grassland reserve program under subchapter C of 
     chapter 2, using, to the maximum extent practicable, 
     $240,000,000 for the period of fiscal years 2008 through 
     2012.
       ``(7) The environmental quality incentives program under 
     chapter 4, using, to the maximum extent practicable--
       ``(A) $1,270,000,000 for each of fiscal years 2008 and 
     2009; and
       ``(B) $1,300,000,000 for each of fiscal years 2010 through 
     2012.
       ``(8) The wildlife habitat incentives program under section 
     1240N, using, to the maximum extent practicable, $85,000,000 
     for each of fiscal years 2008 through 2012.

[[Page 29262]]

       ``(9) The voluntary public access program under section 
     1240S, using, to the maximum extent practicable, $20,000,000 
     in each of fiscal years 2008 through 2012.''.

     SEC. 2402. REGIONAL EQUITY.

       Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
     3841) is amended by striking subsection (d) and inserting the 
     following:
       ``(d) Regional Equity.--
       ``(1) In general.--Before April 1 of each fiscal year, the 
     Secretary shall give priority for funding under the 
     conservation programs under subtitle D and the agricultural 
     management assistance program under section 524(b) of the 
     Federal Crop Insurance Act (7 U.S.C. 1524(b)) (excluding the 
     conservation reserve program under subchapter B of chapter 1 
     and the wetlands reserve program under subchapter C of 
     chapter 1) to approved applications in any State that has not 
     received, for the fiscal year, an aggregate amount of at 
     least $15,000,000 for those conservation programs.
       ``(e) Specific Funding Allocations.--In determining the 
     specific funding allocations for each State under paragraph 
     (1), the Secretary shall consider the respective demand for 
     each program in each State.
       ``(f) Allocations Review and Update.--
       ``(1) Review.--Not later than January 1, 2012, the 
     Secretary shall conduct a review of conservation program 
     allocation formulas to determine the sufficiency of the 
     formulas in accounting for State-level economic factors, 
     level of agricultural infrastructure, or related factors that 
     affect conservation program costs.
       ``(2) Update.--The Secretary shall improve conservation 
     program allocation formulas as necessary to ensure that the 
     formulas adequately reflect the costs of carrying out the 
     conservation programs.''.

     SEC. 2403. CONSERVATION ACCESS.

       Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
     3841) (as amended by section 2402) is amended by adding at 
     the end the following:
       ``(g) Conservation Access.--
       ``(1) Assistance to eligible farmers or ranchers.--
       ``(A) Definition of eligible farmer or rancher.--In this 
     paragraph, the term `eligible farmer or rancher' means a 
     farmer or rancher that, as determined by the Secretary--
       ``(i) derives or expects to derive more than 50 percent of 
     the annual income of the farmer or rancher from agriculture 
     (not including payments under the conservation reserve 
     program established under subchapter B of chapter 1 of 
     subtitle D); and
       ``(ii) is--

       ``(I) a beginning farmer or rancher (as defined in section 
     343 of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1991)), except that in determining whether the farmer 
     or rancher qualifies as a beginning farmer or rancher, the 
     Secretary may--

       ``(aa) employ a fair and reasonable test of net worth; and
       ``(bb) use such other criteria as the Secretary determines 
     to be appropriate; or

       ``(II) a socially disadvantaged farmer or rancher (as 
     defined in section 355(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2003(e)).

       ``(B) Assistance.--In the case of each program described in 
     subsection (a), except as provided in paragraph (2), for each 
     fiscal year in which funding is made available for the 
     program, 10 percent of the funds available for the fiscal 
     year shall be used by the Secretary to assist eligible 
     farmers or ranchers.
       ``(2) Acreage programs.--In the case of the conservation 
     reserve and wetlands reserve programs, 10 percent of the 
     acreage authorized to be enrolled in any fiscal year shall be 
     used to assist eligible farmers or ranchers.
       ``(3) Repooling.--In any fiscal year, amounts not obligated 
     under this subsection by a date determined by the Secretary 
     shall be available for payments and technical assistance to 
     all persons eligible for payments or technical assistance in 
     that fiscal year under the program for which the amounts were 
     originally made available under this title.
       ``(4) Conservation innovation grants.--Funding under 
     paragraph (1) for conservation innovation grants under 
     section 1240H may, in addition to purposes described in 
     subsection (b) of that section, be used for--
       ``(A) technology transfer;
       ``(B) farmer-to-farmer workshops; and
       ``(C) demonstrations of innovative conservation practices.
       ``(5) Technical assistance.--The Secretary shall offer, to 
     the maximum extent practicable, higher levels of technical 
     assistance to beginning farmers or ranchers and socially 
     disadvantaged farmers or ranchers than are otherwise made 
     available to producers participating in programs under this 
     title.
       ``(6) Cooperative agreements.--The Secretary may develop 
     and implement cooperative agreements with entities (including 
     government agencies, extension entities, nongovernmental and 
     community-based organizations, and educational institutions) 
     with expertise in addressing the needs of beginning farmers 
     or ranchers and socially disadvantaged farmers or ranchers to 
     provide technical assistance, comprehensive conservation 
     planning education, and sustainable agriculture training.''.

     SEC. 2404. DELIVERY OF TECHNICAL ASSISTANCE.

       Section 1242 of the Food Security Act of 1985 (16 U.S.C. 
     3842) is amended to read as follows:

     ``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

       ``(a) Definition of Eligible Participant.--In this section, 
     the term `eligible participant' means--
       ``(1) an agricultural producer;
       ``(2) an eligible entity;
       ``(3) an eligible landowner; and
       ``(4) an interested organization.
       ``(b) Purpose.--The purpose of technical assistance 
     authorized by this title is to provide eligible participants 
     with consistent, science-based, site-specific practices 
     designed to achieve conservation objectives on land active in 
     agricultural, forestry, or related uses.
       ``(c) Provision of Technical Assistance.--The Secretary 
     shall provide technical assistance under this title to an 
     eligible participant--
       ``(1) directly;
       ``(2) through a contract or agreement with a third-party 
     provider; or
       ``(3) at the option of the eligible participant, through a 
     payment, as determined by the Secretary, to the eligible 
     participant for an approved third-party provider, if 
     available.
       ``(d) Certification of Third-Party Providers.--
       ``(1) In general.--The Secretary shall continue to carry 
     out the technical service provider program established under 
     regulations promulgated under subsection (b)(1) (as in 
     existence on the day before the date of enactment of this 
     subsection).
       ``(2) Purpose.--The purpose of the technical service 
     provider program shall be to increase the availability and 
     range of technical expertise available to farmers, ranchers, 
     and eligible landowners to plan and implement conservation 
     measures.
       ``(3) Expertise.--In promulgating regulations to carry out 
     this subsection, the Secretary shall--
       ``(A) ensure that persons with expertise in the technical 
     aspects of conservation planning, watershed planning, and 
     environmental engineering (including commercial entities, 
     nonprofit entities, State or local governments or agencies, 
     and other Federal agencies) are eligible to become approved 
     providers of the technical assistance; and
       ``(B) to the maximum extent practicable--
       ``(i) provide national criteria for the certification of 
     technical service providers; and
       ``(ii) approve any unique certification standards 
     established at the State level.
       ``(4) System administration.--
       ``(A) Funding.--Effective for fiscal year 2008 and each 
     subsequent fiscal year, funds of the Commodity Credit 
     Corporation that are made available to carry out each of the 
     programs specified in section 1241 shall be available for the 
     provision of technical assistance from third-party providers 
     under this section.
       ``(B) Contract term.--A contract under this section shall 
     have a term that--
       ``(i) at a minimum, is equal to the period--

       ``(I) beginning on the date on which the contract is 
     entered into; and
       ``(II) ending on the date that is 1 year after the date on 
     which all activities in the contract have been completed;

       ``(ii) does not exceed 3 years; and
       ``(iii) can be renewed, as determined by the Secretary.
       ``(C) Review of certification requirements.--Not later than 
     1 year after the date of enactment of this subsection, the 
     Secretary shall--
       ``(i) review certification requirements for third-party 
     providers; and
       ``(ii) make any adjustments considered necessary by the 
     Secretary to improve participation.
       ``(D) Eligible activities.--The Secretary may include in 
     activities eligible for payment to a third-party provider--
       ``(i) education and outreach to eligible participants; and
       ``(ii) administrative services necessary to support 
     conservation program implementation.
       ``(e) Availability of Technical Services.--
       ``(1) Availability.--
       ``(A) In general.--In carrying out the programs under this 
     title and the agricultural management assistance program 
     under section 524 of the Federal Crop Insurance Act (7 U.S.C. 
     1524), the Secretary shall make technical services available 
     to all eligible participants who are installing an eligible 
     practice.
       ``(B) Technical service contracts.--In any case in which 
     financial assistance is not requested or is not provided 
     under subparagraph (A), the Secretary may enter into a 
     technical service contract with the applicable eligible 
     participant for the purposes of assisting in the planning, 
     design, or installation of an eligible practice.
       ``(2) Review of conservation practice standards.--
       ``(A) In general.--The Secretary shall--
       ``(i) review conservation practice standards, including 
     engineering design specifications, in effect on the date of 
     enactment of this subsection;
       ``(ii) ensure, to the maximum extent practicable, the 
     completeness and relevance of

[[Page 29263]]

     the standards to local agricultural, forestry, and natural 
     resource needs, including specialty crops, native and managed 
     pollinators, bioenergy crop production, forestry, and such 
     other needs as are determined by the Secretary; and
       ``(iii) ensure that the standards provide for the optimal 
     balance between meeting site-specific conservation needs and 
     minimizing risks of design failure and associated costs of 
     construction and installation.
       ``(B) Consultation.--In conducting the assessment under 
     subparagraph (A), the Secretary shall consult with 
     agricultural producers, crop consultants, cooperative 
     extension and land grant universities, nongovernmental 
     organizations, and other qualified entities.
       ``(C) Expedited revision of standards.--If the Secretary 
     determines under subparagraph (A) that revisions to the 
     conservation practice standards, including engineering design 
     specifications, are necessary, the Secretary shall establish 
     an administrative process for expediting the revisions.
       ``(3) Addressing concerns of speciality crop, organic, and 
     precision agriculture producers.--
       ``(A) In general.--The Secretary shall--
       ``(i) to the maximum extent practicable, fully incorporate 
     specialty crop production, organic crop production, and 
     precision agriculture into the conservation practice 
     standards; and
       ``(ii) provide for the appropriate range of conservation 
     practices and resource mitigation measures available to 
     specialty crop, organic, and precision agriculture producers.
       ``(B) Availability of adequate technical assistance.--
       ``(i) In general.--The Secretary shall ensure that adequate 
     technical assistance is available for the implementation of 
     conservation practices by specialty crop, organic, and 
     precision agriculture producers through Federal conservation 
     programs.
       ``(ii) Requirements.--In carrying out clause (i), the 
     Secretary shall develop--

       ``(I) programs that meet specific needs of specialty crop, 
     organic, and precision agriculture producers through 
     cooperative agreements with other agencies and 
     nongovernmental organizations; and
       ``(II) program specifications that allow for innovative 
     approaches to engage local resources in providing technical 
     assistance for planning and implementation of conservation 
     practices.''.

     SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 
                   PROGRAMS.

       (a) Streamlined Application Process.--Section 1244 of the 
     Food Security Act of 1985 (16 U.S.C. 3844) is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following:
       ``(b) Streamlined Application Process.--
       ``(1) In general.--In carrying out each conservation 
     program under this title, the Secretary shall ensure that the 
     application process used by producers and landowners is 
     streamlined to minimize complexity and eliminate redundancy.
       ``(2) Review and streamlining.--
       ``(A) Review.--The Secretary shall carry out a review of 
     the application forms and processes for each conservation 
     program covered by this subsection.
       ``(B) Streamlining.--On completion of the review the 
     Secretary shall revise application forms and processes, as 
     necessary, to ensure that--
       ``(i) all required application information is essential for 
     the efficient, effective, and accountable implementation of 
     conservation programs;
       ``(ii) conservation program applicants are not required to 
     provide information that is readily available to the 
     Secretary through existing information systems of the 
     Department of Agriculture;
       ``(iii) information provided by the applicant is managed 
     and delivered efficiently for use in all stages of the 
     application process, or for multiple applications; and
       ``(iv) information technology is used effectively to 
     minimize data and information input requirements.
       ``(3) Implementation and notification.--Not later than 1 
     year after the date of enactment of the Food and Energy 
     Security Act of 2007, the Secretary shall submit to Congress 
     a written notification of completion of the requirements of 
     this subsection.''.
       (b) Administration.--Section 1244 of the Food Security Act 
     of 1985 (16 U.S.C. 3844) (as amended by subsection (a)) is 
     amended by adding at the end the following:
       ``(d) Cooperation Regarding Protection.--In the case of a 
     landowner who enrolls land in a conservation program 
     authorized under this title that results in a net 
     conservation benefit for a listed, candidate, or other 
     species, the Secretary shall cooperate at the request of the 
     landowner with the Secretary of the Interior and the 
     Secretary of Commerce, as appropriate, to make available to 
     the landowner safe harbor or similar assurances and 
     protections under sections 7(b)(4) and 10(a), as applicable, 
     of the Endangered Species Act of 1973 (16 U.S.C. 1536(b)(4), 
     1539(a)).
       ``(e) Eligibility of Producer Organizations.--
       ``(1) In general.--In carrying out a conservation program 
     administered by the Secretary, the Secretary shall accept 
     applications from, and shall provide cost-share and incentive 
     payments and other assistance to, producers who elect to 
     apply through an organization that represents producers and 
     of which producers make up a majority of the governing body, 
     if the Secretary determines that--
       ``(A) the full objective of the proposed activity, 
     practice, or plan cannot be realized without the 
     participation of all or substantially all of the producers in 
     the affected area; and
       ``(B) the benefits achieved through the proposed activity, 
     practice, or plan are likely to be greater and to be 
     delivered more cost-effectively if provided through a single 
     organization with related conservation expertise and 
     management experience.
       ``(2) Limitation.--Any applicable payment limitation shall 
     apply to each participating producer and not to the 
     organization described in paragraph (1).
       ``(f) Partnerships and Cooperation.--
       ``(1) In general.--In carrying out a program under subtitle 
     D, the Secretary may designate special projects, as 
     recommended if appropriate by the State Executive Director of 
     the Conservationist, after consultation with the State 
     technical committee, to enhance assistance provided to 
     multiple producers to address conservation issues relating to 
     agricultural and nonindustrial private forest management and 
     production.
       ``(2) Purposes.--The purposes of special projects carried 
     out under this subsection shall be to achieve statewide or 
     regional conservation objectives by--
       ``(A) encouraging producers to cooperate in the 
     installation and maintenance of conservation practices that 
     affect multiple agricultural operations;
       ``(B) encouraging producers to cooperate in meeting 
     applicable Federal, State, and local regulatory requirements 
     regarding natural resources and the environment;
       ``(C) encouraging producers to share information and 
     technical and financial resources;
       ``(D) facilitating cumulative conservation benefits in 
     geographic areas; and
       ``(E) promoting the development and demonstration of 
     innovative conservation methods.
       ``(3) Eligible partners.--State and local government 
     entities (including irrigation and water districts and canal 
     companies), Indian tribes, farmer cooperatives, institutions 
     of higher education, nongovernmental organizations, and 
     producer associations shall be eligible to apply under this 
     subsection.
       ``(4) Special project application.--To apply for 
     designation under paragraph (1), partners shall submit an 
     application to the Secretary that includes--
       ``(A) a description of the geographic area, the current 
     conditions, the conservation objectives to be achieved 
     through the special project, and the expected level of 
     participation by agricultural and nonindustrial private 
     forest landowners;
       ``(B) a description of the partners collaborating to 
     achieve the project objectives and the roles, 
     responsibilities, and capabilities of the partners;
       ``(C) a description of the program resources requested from 
     the Secretary, in relevant units, and the non-Federal 
     resources that will be leveraged by the Federal contribution; 
     and
       ``(D) such other information as the Secretary considers 
     necessary.
       ``(5) Duties of the secretary.--
       ``(A) In general.--The Secretary shall enter into multiyear 
     agreements with partners to facilitate the delivery of 
     conservation program resources in a manner to achieve the 
     purposes described in paragraph (2).
       ``(B) Project selection.--
       ``(i) In general.--The Secretary shall conduct a 
     competitive process to select projects funded under this 
     subsection.
       ``(ii) Factors considered.--In conducting the process 
     described in clause (i), the Secretary shall make public 
     factors to be considered in evaluating applications.
       ``(iii) Priority.--The Secretary may give priority to 
     applications based on the highest percentage of--

       ``(I) producers involved;
       ``(II) on-the-ground conservation to be implemented;
       ``(III) non-Federal resources to be leveraged; and
       ``(IV) other factors, as determined by the Secretary.

       ``(C) Technical and financial assistance.--The Secretary 
     and partners shall provide appropriate technical and 
     financial assistance to producers participating in a special 
     project in an amount determined by the Secretary to be 
     necessary to achieve the purposes described in paragraph (2).
       ``(D) Flexibility.--The Secretary may adjust elements of 
     the programs under this title to better reflect unique local 
     circumstances and purposes, if the Secretary determines that 
     such adjustments are necessary to achieve the purposes of 
     this subsection.
       ``(E) Administration.--
       ``(i) In general.--The Secretary shall ensure that 
     resources made available under this subsection are delivered 
     in accordance with applicable program rules.

[[Page 29264]]

       ``(ii) Additional requirements.--The Secretary may 
     establish additional requirements beyond applicable program 
     rules in order to effectively implement this subsection.
       ``(6) Special rules applicable to regional water 
     enhancement projects.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Eligible partner.--The term `eligible partner' 
     means--

       ``(I) an eligible partner identified in paragraph (3); and
       ``(II) a water or wastewater agency of a State.

       ``(ii) Eligible project.--

       ``(I) In general.--The term `eligible project' means a 
     project that is specifically targeted to improve water 
     quality or quantity in an area.
       ``(II) Inclusions.--The term `eligible project' includes a 
     project that involves--

       ``(aa) resource condition assessment and modeling;
       ``(bb) water quality, water quantity, or water conservation 
     plan development;
       ``(cc) management system and environmental monitoring and 
     evaluation;
       ``(dd) cost-share restoration or enhancement;
       ``(ee) incentive payments for land management practices;
       ``(ff) easement purchases;
       ``(gg) conservation contracts with landowners;
       ``(hh) improved irrigation systems;
       ``(ii) water banking and other forms of water transactions;
       ``(jj) groundwater recharge;
       ``(kk) stormwater capture; and
       ``(ll) other water-related activities that the Secretary 
     determines will help to achieve the water quality or water 
     quantity benefits identified in the agreement in subparagraph 
     (E) on land described in paragraph (1).
       ``(B) Regional water enhancement procedures.--With respect 
     to proposals for eligible projects by eligible partners, the 
     Secretary shall establish specific procedures (to be known 
     collectively as `regional water enhancement procedures') in 
     accordance with this paragraph.
       ``(C) Means.--Regional water enhancement activities in a 
     particular region shall be carried out through a combination 
     of--
       ``(i) multiyear agreements between the Secretary and 
     eligible partners;
       ``(ii) other regional water enhancement activities carried 
     out by the Secretary; and
       ``(iii) regional water enhancement activities carried out 
     by eligible partners through other means.
       ``(D) Multiyear agreements with eligible partners.--
       ``(i) Solicitation of proposals.--Not later than 90 days 
     after the date of enactment of this subsection, the Secretary 
     shall invite prospective eligible partners to submit 
     proposals for regional water enhancement projects.
       ``(ii) Elements of proposals.--To be eligible for 
     consideration for participation in the program, a proposal 
     submitted by an eligible partner shall include--

       ``(I) identification of the exact geographic area for which 
     the partnership is proposed, which may be based on--

       ``(aa) a watershed (or portion of a watershed);
       ``(bb) an irrigation, water, or drainage district;
       ``(cc) the service area of an irrigation water delivery 
     entity; or
       ``(dd) some other geographic area with characteristics that 
     make the area suitable for landscape-wide program 
     implementation;

       ``(II) identification of the water quality or water 
     quantity issues that are of concern in the area;
       ``(III) a method for determining a baseline assessment of 
     water quality, water quantity, and other related resource 
     conditions in the region;
       ``(IV) a detailed description of the proposed water quality 
     or water quantity improvement activities to be undertaken in 
     the area, including an estimated timeline and program 
     resources for every activity; and
       ``(V) a description of the performance measures to be used 
     to gauge the effectiveness of the water quality or water 
     quantity improvement activities.

       ``(iii) Selection of proposals.--The Secretary shall award 
     multiyear agreements competitively, with priority given, as 
     determined by the Secretary, to selecting proposals that--

       ``(I) have the highest likelihood of improving the water 
     quality or quantity issues of concern for the area;
       ``(II) involve multiple stakeholders and will ensure the 
     highest level of participation by producers and landowners in 
     the area through performance incentives to encourage adoption 
     of specific practices in specific locations;
       ``(III) will result in the inclusion of the highest 
     percentage of working agricultural land in the area;
       ``(IV) will result in the highest percentage of on-the-
     ground activities as compared to administrative costs;
       ``(V) will provide the greatest contribution to sustaining 
     or enhancing agricultural or silvicultural production in the 
     area; and
       ``(VI) include performance measures that will allow post-
     activity conditions to be satisfactorily measured to gauge 
     overall effectiveness.

       ``(iv) Duration.--

       ``(I) In general.--Multiyear agreements under this 
     subsection shall be for a period not to exceed 5 years.
       ``(II) Early termination.--The Secretary may terminate a 
     multiyear agreement before the end of the agreement if the 
     Secretary determines that performance measures are not being 
     met.

       ``(E) Agreements.--Not later than 30 days after the date on 
     which the Secretary awards an agreement under subparagraph 
     (D), the Secretary shall enter into an agreement with the 
     eligible partner that, at a minimum, contains--
       ``(i) a description of the respective duties and 
     responsibilities of the Secretary and the eligible partner in 
     carrying out the activities in the area; and
       ``(ii) the criteria that the Secretary will use to evaluate 
     the overall effectiveness of the regional water enhancement 
     activities funded by the multiyear agreement in improving the 
     water quality or quantity conditions of the region relative 
     to the performance measures in the proposal.
       ``(F) Contracts with other parties.--An agreement awarded 
     under subparagraph (D) may provide for the use of third-party 
     providers (including other eligible partners) to undertake 
     specific regional water enhancement activities in a region on 
     a contractual basis with the Secretary or the eligible 
     partner.
       ``(G) Consultation with other agencies.--With respect to 
     areas in which a Federal or State agency is, or will be, 
     undertaking other water quality or quantity-related 
     activities, the Secretary and the eligible partner may 
     consult with the Federal or State agency in order to--
       ``(i) coordinate activities;
       ``(ii) avoid duplication; and
       ``(iii) ensure that water quality or quantity improvements 
     attributable to the other activities are taken into account 
     in the evaluation of the Secretary under subparagraph 
     (E)(ii).
       ``(H) Relationship to other programs.--The Secretary shall 
     ensure that, to the extent that producers and landowners are 
     individually participating in other programs under subtitle D 
     in a region in which a regional water enhancement project is 
     in effect, any improvements to water quality or water 
     quantity attributable to the individual participation are 
     included in the evaluation criteria developed under 
     subparagraph (E)(ii).
       ``(I) Consistency with state law.--Any water quality or 
     water quantity improvement activity undertaken under this 
     paragraph shall be consistent with State water laws.
       ``(7) Funding.--
       ``(A) In general.--The Secretary shall use not more than 5 
     percent of the funds made available for conservation programs 
     under subtitle D for each fiscal year under section 1241(a) 
     to carry out activities that are authorized under this 
     subsection.
       ``(B) Partners.--Overhead or administrative costs of 
     partners may not be covered by funds provided through this 
     subsection.
       ``(C) Unused funding.--Any funds made available for a 
     fiscal year under subparagraph (A) that are not obligated by 
     April 1 of the fiscal year may be used to carry out other 
     activities under conservation programs under subtitle D 
     during the fiscal year in which the funding becomes 
     available.
       ``(g) Accuracy of Payments.--Immediately after the date of 
     enactment of this subsection, the Secretary shall implement 
     policies and procedures to ensure proper payment of farm 
     program benefits to producers participating in conservation 
     easement programs and correct other management deficiencies 
     identified in Report No. 50099-11-SF issued by the Department 
     of Agriculture Office of Inspector General in August 2007.
       ``(h) Compliance and Performance.--For each conservation 
     program under this title, the Secretary shall develop 
     procedures--
       ``(1) to monitor compliance with program requirements by 
     landowners and eligible entities;
       ``(2) to measure program performance;
       ``(3) to demonstrate whether the long-term conservation 
     benefits of the program are being achieved; and
       ``(4) to coordinate activities described in this subsection 
     with the national conservation program authorized under 
     section 5 of the Soil and Water Resources Conservation Act of 
     1977 (16 U.S.C. 2004).
       ``(i) Direct Attribution of Payments.--In implementing 
     payment limitations for any program under this title, the 
     Secretary shall issue such regulations as are necessary to 
     ensure that the total amount of payments are attributed to an 
     individual by taking into account the direct and indirect 
     ownership interests of the individual in an entity that is 
     eligible to receive the payments.''.
       (c) Conforming Amendments.--Section 1234 of the Food 
     Security Act of 1985 (16 U.S.C. 3834) is amended--
       (1) in subsection (d)(3)(B), by striking ``(f)(4)'' and 
     inserting ``(f)(3)''; and
       (2) in subsection (f)--
       (A) in paragraph (1)--
       (i) by striking ``The total'' and inserting ``Subject to 
     section 1244(i), the total''; and
       (ii) by striking ``a person'' and inserting ``an 
     individual'';

[[Page 29265]]

       (B) by striking paragraph (2); and
       (C) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.

     SEC. 2406. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES 
                   MARKETS.

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

     ``SEC. 1245. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES 
                   MARKETS.

       ``(a) Framework.--
       ``(1) In general.--The Secretary shall establish a 
     framework to facilitate the participation of farmers, 
     ranchers, and forest landowners in emerging environmental 
     services markets.
       ``(2) Process.--In carrying out paragraph (1), the 
     Secretary shall use a collaborative process that includes 
     representatives of--
       ``(A) farm, ranch, and forestry interests;
       ``(B) financial institutions involved in environmental 
     services trading;
       ``(C) institutions of higher education with relevant 
     expertise or experience;
       ``(D) nongovernmental organizations with relevant expertise 
     or experience;
       ``(E) government agencies of relevant jurisdiction, 
     including--
       ``(i) the Department of Commerce;
       ``(ii) the Department of Energy;
       ``(iii) the Department of the Interior;
       ``(iv) the Department of Transportation;
       ``(v) the Environmental Protection Agency; and
       ``(vi) the Corps of Engineers; and
       ``(F) other appropriate interests, as determined by the 
     Secretary.
       ``(3) Requirements.--
       ``(A) Definition of standard.--In this paragraph, the term 
     `standard' means a technical guideline that outlines 
     accepted, science-based methods to quantify the environmental 
     services benefits from agricultural and forest conservation 
     and land management practices, as determined by the 
     Secretary.
       ``(B) Framework requirements.--In establishing the 
     framework under paragraph (1), the Secretary shall--
       ``(i) establish uniform standards;
       ``(ii) design accounting procedures to quantify 
     environmental services benefits that would assist farmers, 
     ranchers, and forest landowners in using the uniform 
     standards to establish certifications, as defined in emerging 
     environmental services markets;
       ``(iii) establish--

       ``(I) a protocol to report environmental services benefits; 
     and
       ``(II) a registry to report and maintain the benefits for 
     future use in emerging environmental services markets; and

       ``(iv) establish a process to verify that a farmer, 
     rancher, or forest landowner that reports and maintains an 
     environmental services benefit in the registry described in 
     clause (iii)(II) has implemented the reported conservation or 
     land management activity.
       ``(C) Third-party service providers.--In developing the 
     process described in subparagraph (B)(iv), the Secretary 
     shall consider the role of third-party service providers.
       ``(4) Coordination.--The Secretary shall coordinate and 
     leverage activities in existence on the date of enactment of 
     this section in agriculture and forestry relating to emerging 
     environmental services markets.
       ``(5) Priority.--In establishing the framework under this 
     subsection, the Secretary shall give priority to providing 
     assistance to farmers, ranchers, and forest landowners 
     participating in carbon markets.
       ``(b) Authority To Delegate.--The Secretary may delegate 
     any responsibility under this section to a relevant agency or 
     office, as determined by the Secretary.
       ``(c) Reports to Congress.--
       ``(1) Status of collaborative process.--Not later than 90 
     days after the date of enactment of this section, the 
     Secretary shall provide to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate 
     information on the status of the collaborative process under 
     subsection (a)(2).
       ``(2) Interim report.--Not later than 180 days after the 
     date of enactment of this section, the Secretary shall submit 
     to the committees of Congress described in paragraph (1) an 
     interim report that--
       ``(A) describes the adequacy of existing research and 
     methods to quantify environmental services benefits;
       ``(B) proposes methods--
       ``(i) to establish technical guidelines, accounting 
     procedures, and reporting protocols; and
       ``(ii) to structure the registry; and
       ``(C) includes recommendations for actions to remove 
     barriers for farmers, ranchers, and forest landowners to 
     participation, reporting, registration, and verification 
     relating to environmental services markets.
       ``(3) Final report.--Not later than 18 months after the 
     date of enactment of this section, the Secretary shall submit 
     to the committees of Congress described in paragraph (1) a 
     report that describes--
       ``(A) the progress of the Secretary in meeting the 
     requirements described in subsection (a)(3)(B);
       ``(B) the rates of participation of farmers, ranchers, and 
     forest landowners in emerging environmental services markets; 
     and
       ``(C) any recommendations of the Secretary relating to 
     reauthorization of this section.
       ``(d) Funding.--There are authorized to be appropriated to 
     the Secretary to carry out this section such sums as are 
     necessary for each of fiscal years 2008 through 2012.''.

                 Subtitle F--State Technical Committees

     SEC. 2501. STATE TECHNICAL COMMITTEES.

       (a) Standards.--Section 1261 of the Food Security Act of 
     1985 (16 U.S.C. 3861(c)) is amended by striking subsection 
     (b) and inserting the following:
       ``(b) Standards.--Not later than 180 days after the date of 
     enactment of the Food and Energy Security Act of 2007, the 
     Secretary shall develop--
       ``(1) standard operating procedures to standardize the 
     operations of State technical committees; and
       ``(2) standards to be used by the State technical 
     committees in the development of technical guidelines under 
     section 1262(b) for the implementation of the conservation 
     provisions of this title.''.
       (b) Composition.--Section 1261(c) of the Food Security Act 
     of 1985 (16 U.S.C. 3861(c)) is amended--
       (1) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) the Natural Resources Conservation Service;
       ``(2) the Farm Service Agency;'';
       (2) by striking paragraph (5) and inserting the following:
       ``(5) Rural Development agencies;'';
       (3) in paragraph (11), by striking ``and'' at the end;
       (4) in paragraph (12), by striking the period at the end 
     and inserting ``; and''; and
       (5) by adding at the end the following:
       ``(13) nonindustrial private forest land owners.''.
       (c) FACA Requirements.--Section 1262(e) of the Food 
     Security Act of 1985 (16 U.S.C. 3862(e)) is amended--
       (1) by striking ``The committees'' and inserting the 
     following:
       ``(1) In general.--The committees''; and
       (2) by adding at the end the following:
       ``(2) Local working groups.--For purposes of the Federal 
     Advisory Committee Act (5 U.S.C. App.), any local working 
     group established under this subtitle shall be considered to 
     be a subcommittee of the applicable State technical 
     committee.''.

                     Subtitle G--Other Authorities

     SEC. 2601. AGRICULTURAL MANAGEMENT ASSISTANCE.

       Section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 
     1524(b)) is amended--
       (1) in paragraph (1), by inserting ``Idaho'' after 
     ``Delaware''; and
       (2) in paragraph (4)(B), by striking ``2007'' each place it 
     appears and inserting ``2012''.

     SEC. 2602. AGRICULTURE CONSERVATION EXPERIENCED SERVICES 
                   PROGRAM.

       The Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 6901 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 307. AGRICULTURE CONSERVATION EXPERIENCED SERVICES 
                   PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--Notwithstanding any other provision of 
     law relating to Federal grants, cooperative agreements, or 
     contracts, there is established in the Department the 
     agriculture conservation experienced services program 
     (referred to in this section as the `ACE program').
       ``(2) Authorization.--Under the ACE program, the Secretary 
     may offer to enter into agreements with nonprofit private 
     agencies and organizations eligible to receive grants for the 
     applicable fiscal year under title V of the Older Americans 
     Act of 1965 (42 U.S.C. 3056 et seq.) to use the talents of 
     individuals who are age 55 or older, to provide conservation 
     technical assistance in support of the administration of 
     conservation-related programs and authorities administered by 
     the Secretary.
       ``(3) Funding.--Agreements described in paragraph (2) may 
     be carried out using funds made available to carry out--
       ``(A) the environmental quality incentives program of the 
     comprehensive stewardship incentives program established 
     under subchapter A of chapter 6 of subtitle D of title XII of 
     the Food Security Act of 1985;
       ``(B) the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590a et seq.); or
       ``(C) title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056).
       ``(b) Determination.--Prior to entering into an agreement 
     described in subsection (a)(2), the Secretary shall determine 
     that the agreement would not--
       ``(1) result in the displacement of individuals employed by 
     the Department, including partial displacement through 
     reduction of nonovertime hours, wages, or employment 
     benefits;
       ``(2) result in the use of an individual covered by this 
     section for a job or function in a case in which a Federal 
     employee is in a layoff status from the same or a 
     substantially-equivalent job or function with the Department; 
     or
       ``(3) affect existing contracts for services.
       ``(c) Technical Assistance.--The Secretary may make 
     available to individuals providing technical assistance under 
     an agreement authorized by this section appropriate 
     conservation technical tools, including the use of agency 
     vehicles necessary to carry out technical assistance in 
     support of

[[Page 29266]]

     the conservation-related programs affected by the ACE 
     program.''.

     SEC. 2603. TECHNICAL ASSISTANCE.

       (a) Soil Conservation and Domestic Allotment Act.--
       (1) Prevention of soil erosion.--
       (A) In general.--The first section of the Soil Conservation 
     and Domestic Allotment Act (16 U.S.C. 590a) is amended--
       (i) by striking ``That it'' and inserting the following:

     ``SECTION 1. PURPOSE.

       ``It''; and
       (ii) in the matter preceding paragraph (1), by striking 
     ``and thereby to preserve natural resources,'' and inserting 
     ``to preserve soil, water, and related resources, promote 
     soil and water quality,''.
       (B) Policies and purposes.--Section 7(a)(1) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 
     590g(a)(1)) is amended by striking ``fertility'' and 
     inserting ``and water quality and related resources''.
       (2) Definitions.--Section 10 of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590j) is amended to read as 
     follows:

     ``SEC. 10. DEFINITIONS.

       ``In this Act:
       ``(1) Agricultural commodity.--The term `agricultural 
     commodity' means--
       ``(A) an agricultural commodity; and
       ``(B) any regional or market classification, type, or grade 
     of an agricultural commodity.
       ``(2) Technical assistance.--
       ``(A) In general.--The term `technical assistance' means 
     technical expertise, information, and tools necessary for the 
     conservation of natural resources on land active in 
     agricultural, forestry, or related uses.
       ``(B) Inclusions.--The term `technical assistance' 
     includes--
       ``(i) technical services provided directly to farmers, 
     ranchers, and other eligible entities, such as conservation 
     planning, technical consultation, and assistance with design 
     and implementation of conservation practices; and
       ``(ii) technical infrastructure, including activities, 
     processes, tools, and agency functions needed to support 
     delivery of technical services, such as technical standards, 
     resource inventories, training, data, technology, monitoring, 
     and effects analyses.''.
       (b) Soil and Water Resources Conservation Act of 1977.--
       (1) Congressional findings.--Section 2 of the Soil and 
     Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is 
     amended--
       (A) in paragraph (2), by striking ``base, of the'' and 
     inserting ``base of the''; and
       (B) in paragraph (3), by striking ``(3)'' and all that 
     follows through ``Since individual'' and inserting the 
     following:
       ``(3) Appraisal and inventory of resources, assessment and 
     inventory of conservation needs, evaluation of the effects of 
     conservation practices, and analyses of alternative 
     conservation programs are basic to effective soil, water, and 
     related natural resource conservation.
       ``(4) Since individual''.
       (2) Continuing appraisal of soil, water, and related 
     resources.--Section 5 of the Soil and Water Resources 
     Conservation Act of 1977 (16 U.S.C. 2004) is amended--
       (A) in subsection (a)--
       (i) in paragraph (5), by striking ``and'' at the end;
       (ii) in paragraph (6), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(7) data on conservation plans, conservation practices 
     planned or implemented, environmental outcomes, economic 
     costs, and related matters under conservation programs 
     administered by the Secretary.'';
       (B) by redesignating subsection (d) as subsection (e);
       (C) by inserting after subsection (c) the following:
       ``(d) Evaluation of Appraisal.--In conducting the appraisal 
     described in subsection (a), the Secretary shall concurrently 
     solicit and evaluate recommendations for improving the 
     appraisal, including the content, scope, process, 
     participation in, and other elements of the appraisal, as 
     determined by the Secretary.''; and
       (D) in subsection (e) (as redesignated by subparagraph 
     (B)), by striking ``December 31, 1979'' and all that follows 
     through ``December 31, 2005'' and inserting ``December 31, 
     2010, December 31, 2015, December 31, 2020, and December 31, 
     2025''.
       (3) Soil and water conservation program.--Section 6 of the 
     Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 
     2005) is amended--
       (A) by redesignating subsection (b) as subsection (d);
       (B) by inserting after subsection (a) the following:
       ``(b) Evaluation of Existing Conservation Programs.--In 
     evaluating existing conservation programs, the Secretary 
     shall emphasize demonstration, innovation, and monitoring of 
     specific program components in order to encourage further 
     development and adoption of practices and performance-based 
     standards.
       ``(c) Improvement to Program.--In developing a national 
     soil and water conservation program under subsection (a), the 
     Secretary shall solicit and evaluate recommendations for 
     improving the program, including the content, scope, process, 
     participation in, and other elements of the program, as 
     determined by the Secretary.''; and
       (C) in subsection (d) (as redesignated by subparagraph 
     (A)), by striking ``December 31, 1979'' and all that follows 
     through ``December 31, 2007'' and inserting ``December 31, 
     2011, December 31, 2016, December 31, 2021, and December 31, 
     2026''.
       (4) Reports to congress.--Section 7 of the Soil and Water 
     Resources Conservation Act of 1977 (16 U.S.C. 2006) is 
     amended to read as follows:

     ``SEC. 7. REPORTS TO CONGRESS.

       ``(a) Appraisal.--Not later than the date on which Congress 
     convenes in 2011, 2016, 2021, and 2026, the President shall 
     transmit to the Speaker of the House of Representatives and 
     the President of the Senate the appraisal developed under 
     section 5 and completed prior to the end of the previous 
     year.
       ``(b) Program and Statement of Policy.--Not later than the 
     date on which Congress convenes in 2012, 2017, 2022, and 
     2027, the President shall transmit to the Speaker of the 
     House of Representatives and the President of the Senate--
       ``(1) the initial program or updated program developed 
     under section 6 and completed prior to the end of the 
     previous year;
       ``(2) a detailed statement of policy regarding soil and 
     water conservation activities of the Department of 
     Agriculture; and
       ``(3) a special evaluation of the status, conditions, and 
     trends of soil quality on cropland in the United States that 
     addresses the challenges and opportunities for reducing soil 
     erosion to tolerance levels.
       ``(c) Improvements to Appraisal and Program.--Not later 
     than the date on which Congress convenes in 2012, the 
     Secretary shall submit to the Speaker of the House of 
     Representatives and the President of the Senate a report 
     describing the plans of the Department of Agriculture for 
     improving the resource appraisal and national conservation 
     program required under this Act, based on the recommendations 
     received under sections 5(d) and 6(c).''.
       (5) Termination of program.--Section 10 of the Soil and 
     Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is 
     amended by striking ``2008'' and inserting ``2028''.

     SEC. 2604. SMALL WATERSHED REHABILITATION PROGRAM.

       Section 14 of the Watershed Protection and Flood Prevention 
     Act (16 U.S.C. 1012) is amended by striking subsection (h) 
     and inserting the following:
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.''.

     SEC. 2605. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

       (a) Locally Led Planning Process.--Section 1528 of the 
     Agriculture and Food Act of 1981 (16 U.S.C. 3451) is 
     amended--
       (1) in paragraph (1), in the matter preceding subparagraph 
     (A), by striking ``planning process'' and inserting ``locally 
     led planning process'';
       (2) by redesignating paragraphs (8) and (9) as paragraphs 
     (9) and (8), respectively, and moving those paragraphs so as 
     to appear in numerical order;
       (3) in paragraph (8) (as so redesignated)--
       (A) by striking ``(8) Planning process'' and inserting 
     ``(8) Locally led planning process''; and
       (B) by striking ``council'' and inserting ``locally led 
     council''.
       (b) Authorized Technical Assistance.--Section 1528(13) of 
     the Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is 
     amended by striking subparagraphs (C) and (D) and inserting 
     the following:
       ``(C) providing assistance for the implementation of area 
     plans and projects; and
       ``(D) providing services that involve the resources of 
     Department of Agriculture programs in a local community, as 
     defined in the locally led planning process.''.
       (c) Improved Provision of Technical Assistance.--Section 
     1531 of the Agriculture and Food Act of 1981 (16 U.S.C. 3454) 
     is amended--
       (1) by redesignating paragraphs (1) through (4) as clauses 
     (i) through (iv), respectively, and indenting appropriately;
       (2) by striking ``In carrying'' and inserting the 
     following:
       ``(1) In general.--In carrying''; and
       (3) by adding at the end the following:
       ``(b) Coordinator.--
       ``(1) In general.--To improve the provision of technical 
     assistance to councils under this subtitle, the Secretary 
     shall designate for each council an individual to be the 
     coordinator for the council.
       ``(2) Responsibility.--A coordinator for a council shall be 
     directly responsible for the provision of technical 
     assistance to the council.''.
       (d) Program Evaluation.--Section 1534 of the Agriculture 
     and Food Act of 1981 (16 U.S.C. 3457) is repealed.

     SEC. 2606. NATIONAL NATURAL RESOURCES CONSERVATION 
                   FOUNDATION.

       (a) Advisory Functions.--Section 353 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 
     5802) is amended--
       (1) in subsection (b)(3), by striking ``agencies'' and 
     inserting ``agencies, individuals,''; and

[[Page 29267]]

       (2) by adding at the end the following:
       ``(d) Advisory Functions.--Notwithstanding the requirements 
     of the Federal Advisory Committee Act (5 U.S.C. App.), the 
     Foundation may provide advice and recommendations to the 
     Secretary.''.
       (b) Gifts, Devises, and Bequests of Personal Property.--
     Section 354 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (16 U.S.C. 5803) is amended by adding at the end 
     the following:
       ``(h) Gifts, Devises, and Bequests of Personal Property.--
       ``(1) In general.--Prior to the appointment and initial 
     meeting of the members of the Board and after the initial 
     meeting of the Board, the Secretary may, on behalf of the 
     Foundation--
       ``(A) accept, receive, and hold nonmonetary gifts, devises, 
     or bequests of personal property; and
       ``(B) accept and receive monetary gifts, devises, or 
     bequests.
       ``(2) Held in trust.--Gifts, devises, or bequests of 
     monetary and nonmonetary personal property shall--
       ``(A) be held in trust for the Foundation; and
       ``(B) shall not be--
       ``(i) considered gifts to the United States; or
       ``(ii) used for the benefit of the United States.
       ``(3) Treasury account.--The Secretary shall deposit 
     monetary gifts, devises, and bequests to the Foundation in a 
     special interest-bearing account in the Treasury of the 
     United States.
       ``(4) Initial gifts, devises, and bequests.--
       ``(A) In general.--The Secretary may use initial gifts, 
     devises, or bequests received prior to the first meeting of 
     the Board for any necessary expenses and activities related 
     to the first meeting of the Board.
       ``(B) Transfer.--Except with respect to any amounts 
     expended under subparagraph (A), the Secretary shall, at the 
     first meeting of the Board, transfer to the Foundation all 
     gifts, devises, or bequests received prior to the first 
     meeting of the Board.''.
       (c) Officers and Employees.--Section 355(b)(1) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (16 
     U.S.C. 5804(b)(1)) is amended--
       (1) by striking ``Foundation--'' and all that follows 
     through ``shall not,'' in subparagraph (A) and inserting 
     ``Foundation shall not'';
       (2) by striking ``employee; and'' and inserting 
     ``employee.''; and
       (3) by striking subparagraph (B).
       (d) Contracts and Agreements.--Section 356 of the Federal 
     Agriculture Improvement Reform Act of 1996 (16 U.S.C. 5805) 
     is amended--
       (1) in subsection (c)(7), by striking ``State or local'' 
     and inserting ``Federal, State, or local''; and
       (2) in subsection (d)(2)--
       (A) by striking ``A gift'' and inserting the following:
       ``(A) In general.--A gift''; and
       (B) by adding at the end the following:
       ``(B) Tax status.--A gift, devise, or bequest to the 
     Foundation shall be treated as a gift, devise, or bequest to 
     an organization exempt from taxation under section 501(c)(3) 
     of the Internal Revenue Code of 1986.''.
       (e) Administrative Services and Support.--Section 356 of 
     the Federal Agriculture Improvement Reform Act of 1996 (16 
     U.S.C. 5806) is amended by striking ``1996 through 1998'' and 
     inserting ``2008 through 2012.''.

     SEC. 2607. DESERT TERMINAL LAKES.

       Section 2507 of the Farm Security and Rural Investment Act 
     of 2002 (43 U.S.C. 2211 note; Public Law 107-171) is 
     amended--
       (1) by striking ``(a)'' and all that follows through ``the 
     Secretary of Agriculture'' and inserting the following: 
     ``Subject to paragraph (1) of section 207 of Public Law 108-7 
     (117 Stat. 146), notwithstanding paragraph (3) of that 
     section, on the date of enactment of the Food and Energy 
     Security Act of 2007, the Secretary of Agriculture''; and
       (2) by striking subsection (b).

     SEC. 2608. CROP INSURANCE INELIGIBILITY RELATING TO CROP 
                   PRODUCTION ON NATIVE SOD.

       (a) Federal Crop Insurance.--Section 508 of the Federal 
     Crop Insurance Act (7 U.S.C. 1508) is amended by adding at 
     the end the following:
       ``(o) Crop Insurance Ineligibility Relating to Crop 
     Production on Native Sod.--
       ``(1) Definition of native sod.--In this subsection, the 
     term `native sod' means land--
       ``(A) on which the plant cover is composed principally of 
     native grasses, grasslike plants, forbs, or shrubs suitable 
     for grazing and browsing; and
       ``(B) that has never been used for production of an 
     agricultural commodity.
       ``(2) Ineligibility.--Native sod acreage on which an 
     agricultural commodity is planted for which a policy or plan 
     of insurance is available under this title shall be 
     ineligible for benefits under this Act.''.
       (b) Noninsured Crop Disaster Assistance.--Section 196(a) of 
     the Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7333(a)) is amended by adding at the end the 
     following:
       ``(4) Program ineligibility relating to crop production on 
     native sod.--
       ``(A) Definition of native sod.--In this paragraph, the 
     term `native sod' means land--
       ``(i) on which the plant cover is composed principally of 
     native grasses, grasslike plants, forbs, or shrubs suitable 
     for grazing and browsing; and
       ``(ii) that has never been used for production of an 
     agricultural commodity.
       ``(B) Ineligibility.--Native sod acreage on which an 
     agricultural commodity is planted for which a policy or plan 
     of Federal crop insurance is available shall be ineligible 
     for benefits under this section.''.
       (c) Cropland Report.--
       (1) Baseline.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes the cropland acreage in each 
     county and State, and the change in cropland acreage from the 
     preceding year in each county and State, beginning with 
     calendar year 1995 and including that information for the 
     most recent year for which that information is available.
       (2) Annual updates.--Not later than January 1, 2008, and 
     each January 1 thereafter through January 1, 2012, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that 
     describes--
       (A) the cropland acreage in each county and State as of the 
     date of submission of the report; and
       (B) the change in cropland acreage from the preceding year 
     in each county and State.

     SEC. 2609. HIGH PLAINS WATER STUDY.

       Notwithstanding any other provision of this Act, no person 
     shall become ineligible for any program benefits under this 
     Act or an amendment made by this Act solely as a result of 
     participating in a 1-time study of recharge potential for the 
     Ogallala Aquifer in the High Plains of the State of Texas.

     SEC. 2610. PAYMENT OF EXPENSES.

       Section 17(d) of the Federal Insecticide, Fungicide, and 
     Rodenticide Act (7 U.S.C. 136o(d)) is amended--
       (1) by striking ``The Administrator'' and inserting the 
     following:
       ``(1) In general.--The Administrator''; and
       (2) by adding at the end the following:
       ``(2) Department of state expenses.--Any expenses incurred 
     by an employee of the Environmental Protection Agency who 
     participates in any international technical, economic, or 
     policy review board, committee, or other official body that 
     is meeting in relation to an international treaty shall be 
     paid by the Department of State.''.

     SEC. 2611. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL 
                   ACTIVITIES UPSTREAM OF IMPERIAL DAM.

       (a) In General.--Section 202(a) of the Colorado River Basin 
     Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding 
     at the end the following:
       ``(7) Basin states program.--
       ``(A) In general.--A Basin States Program that the 
     Secretary, acting through the Bureau of Reclamation, shall 
     implement to carry out salinity control activities in the 
     Colorado River Basin using funds made available under section 
     205(f).
       ``(B) Assistance.--The Secretary, in consultation with the 
     Colorado River Basin Salinity Control Advisory Council, shall 
     carry out this paragraph using funds described in 
     subparagraph (A) directly or by providing grants, grant 
     commitments, or advance funds to Federal or non-Federal 
     entities under such terms and conditions as the Secretary may 
     require.
       ``(C) Activities.--Funds described in subparagraph (A) 
     shall be used to carry out, as determined by the Secretary--
       ``(i) cost-effective measures and associated works to 
     reduce salinity from saline springs, leaking wells, 
     irrigation sources, industrial sources, erosion of public and 
     private land, or other sources;
       ``(ii) operation and maintenance of salinity control 
     features constructed under the Colorado River Basin salinity 
     control program; and
       ``(iii) studies, planning, and administration of salinity 
     control activities.
       ``(D) Report.--
       ``(i) In general.--Not later than 30 days before 
     implementing the program established under this paragraph, 
     the Secretary shall submit to the appropriate committees of 
     Congress a planning report that describes the proposed 
     implementation of the program.
       ``(ii) Implementation.--The Secretary may not expend funds 
     to implement the program established under this paragraph 
     before the expiration of the 30-day period beginning on the 
     date on which the Secretary submits the report, or any 
     revision to the report, under clause (i).''.
       (b) Conforming Amendments.--
       (1) Section 202 of the Colorado River Basin Salinity 
     Control Act (43 U.S.C. 1592) is amended--
       (A) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``program'' and inserting ``programs''; and
       (B) in subsection (b)(4)--

[[Page 29268]]

       (i) by striking ``program'' and inserting ``programs''; and
       (ii) by striking ``and (6)'' and inserting ``(6), and 
     (7)''.
       (2) Section 205 of the Colorado River Basin Salinity 
     Control Act (43 U.S.C. 1595) is amended by striking 
     subsection (f) and inserting the following:
       ``(f) Upfront Cost Share.--
       ``(1) In general.--Effective beginning on the date of 
     enactment of this paragraph, subject to paragraph (3), the 
     cost share obligations required by this section shall be met 
     through an upfront cost share from the Basin Funds, in the 
     same proportions as the cost allocations required under 
     subsection (a), as provided in paragraph (2).
       ``(2) Basin states program.--The Secretary shall expend the 
     required cost share funds described in paragraph (1) through 
     the Basin States Program for salinity control activities 
     established under section 202(a)(7).
       ``(3) Existing salinity control activities.--The cost share 
     contribution required by this section shall continue to be 
     met through repayment in a manner consistent with this 
     section for all salinity control activities for which 
     repayment was commenced prior to the date of enactment of 
     this paragraph.''.

     SEC. 2612. GREAT LAKES COMMISSION.

       (a) In General.--The Secretary, in consultation with the 
     Great Lakes Commission created by article IV of the Great 
     Lakes Basin Compact (Public Law 90-419; 82 Stat. 415), and in 
     cooperation with the Administrator of the Environmental 
     Protection Agency and the Secretary of the Army, may carry 
     out the Great Lakes basin program for soil erosion and 
     sediment control (referred to in this section as the 
     ``program'') to assist in implementing the recommendations of 
     the Great Lakes Regional Collaboration Strategy to Restore 
     and Protect the Great Lakes.
       (b) Assistance.--In carrying out the program, the Secretary 
     may--
       (1) provide project demonstration grants, provide technical 
     assistance, and carry out information and education programs 
     to improve water quality in the Great Lakes basin by reducing 
     soil erosion and improving sediment control; and
       (2) provide a priority for projects and activities that--
       (A) directly reduce soil erosion or improve sediment 
     control;
       (B) reduce soil loss in degraded rural watersheds; or
       (C) improve hydrologic conditions in urban watersheds.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2007 through 2012.

     SEC. 2613. TECHNICAL CORRECTIONS TO THE FEDERAL INSECTICIDE, 
                   FUNGICIDE, AND RODENTICIDE ACT.

       (a) Pesticide Registration Service Fees.--Section 33 of the 
     Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
     136w-8) is amended--
       (1) in subsection (b)(7)--
       (A) in subparagraph (D)--
       (i) by striking clause (i) and inserting the following:
       ``(i) In general.--The Administrator may exempt from, or 
     waive a portion of, the registration service fee for an 
     application for minor uses for a pesticide.''; and
       (ii) in clause (ii), by inserting ``or exemption'' after 
     ``waiver''; and
       (B) in subparagraph (E)--
       (i) in the paragraph heading, by striking ``Waiver'' and 
     inserting ``Exemption'';
       (ii) by striking ``waive the registration service fee for 
     an application'' and inserting ``exempt an application from 
     the registration service fee''; and
       (iii) in clause (ii), by striking ``waiver'' and inserting 
     ``exemption''; and
       (2) in subsection (m)(2), by striking ``2008'' each place 
     it appears and inserting ``2012''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on October 1, 2007.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

     SEC. 3001. SHORT TITLE.

       (a) In General.--Section 1 of the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691 note; 
     104 Stat. 3633) is amended by striking ``Agricultural Trade 
     Development and Assistance Act of 1954'' and inserting ``Food 
     for Peace Act''.
       (b) Conforming Amendments.--
       (1) In general.--Each provision of law described in 
     paragraph (2) is amended--
       (A) by striking ``Agricultural Trade Development and 
     Assistance Act of 1954'' each place it appears and inserting 
     ``Food for Peace Act''; and
       (B) in each section heading, by striking ``AGRICULTURAL 
     TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954'' each place it 
     appears and inserting ``FOOD FOR PEACE ACT''.
       (2) Provisions of law.--The provisions of law referred to 
     in paragraph (1) are the following:
       (A) The Agriculture and Food Act of 1981 (Public Law 97-98; 
     95 Stat. 1213).
       (B) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
       (C) Section 9(a) of the Military Construction Codification 
     Act (7 U.S.C. 1704c).
       (D) Section 201 of the Africa: Seeds of Hope Act of 1998 (7 
     U.S.C. 1721 note; Public Law 105-385).
       (E) The Bill Emerson Humanitarian Trust Act (7 U.S.C. 
     1736f-1 et seq.).
       (F) The Food for Progress Act of 1985 (7 U.S.C. 1736o).
       (G) Section 3107 of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 1736o-1).
       (H) Sections 605B and 606C of the Act of August 28, 1954 
     (commonly known as the ``Agricultural Act of 1954'') (7 
     U.S.C. 1765b, 1766b).
       (I) Section 206 of the Agricultural Act of 1956 (7 U.S.C. 
     1856).
       (J) The Agricultural Competitiveness and Trade Act of 1988 
     (7 U.S.C. 5201 et seq.).
       (K) The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et 
     seq.).
       (L) The Export-Import Bank Act of 1945 (12 U.S.C. 635 et 
     seq.).
       (M) Section 301 of title 13, United States Code.
       (N) Section 8 of the Endangered Species Act of 1973 (16 
     U.S.C. 1537).
       (O) Section 604 of the Enterprise for the Americas Act of 
     1992 (22 U.S.C. 2077).
       (P) Section 5 of the International Health Research Act of 
     1960 (22 U.S.C. 2103).
       (Q) The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
     seq.).
       (R) The Horn of Africa Recovery and Food Security Act (22 
     U.S.C. 2151 note; Public Law 102-274).
       (S) Section 105 of the Mutual Educational and Cultural 
     Exchange Act of 1961 (22 U.S.C. 2455).
       (T) Section 35 of the Foreign Military Sales Act (22 U.S.C. 
     2775).
       (U) The Support for East European Democracy (SEED) Act of 
     1989 (22 U.S.C. 5401 et seq.).
       (V) Section 1707 of the Cuban Democracy Act of 1992 (22 
     U.S.C. 6006).
       (W) The Cuban Liberty and Democratic Solidarity (LIBERTAD) 
     Act of 1996 (22 U.S.C. 6021 et seq.).
       (X) Section 902 of the Trade Sanctions Reform and Export 
     Enhancement Act of 2000 (22 U.S.C. 7201).
       (Y) Chapter 553 of title 46, United State Code.
       (Z) Section 4 of the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98c).
       (AA) The Food, Agriculture, Conservation, and Trade Act of 
     1990 (Public Law 101-624; 104 Stat. 3359).
       (BB) Section 738 of the Agriculture, Rural Development, 
     Food and Drug Administration, and Related Agencies 
     Appropriations Act, 2001 (Public Law 106-387; 114 Stat 1549A-
     34).
       (c) References.--Any reference in any Federal, State, 
     tribal, or local law (including regulations) to the 
     ``Agricultural Trade Development and Assistance Act of 1954'' 
     shall be considered to be a reference to the ``Food for Peace 
     Act''.

     SEC. 3002. UNITED STATES POLICY.

       Section 2 of the Food for Peace Act (7 U.S.C. 1691) is 
     amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.

     SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

       Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b)) 
     is amended by striking ``(b)'' and all that follows through 
     paragraph (1) and inserting the following:
       ``(b) Sense of Congress.--It is the sense of Congress 
     that--
       ``(1) in negotiations with other countries at the Food Aid 
     Convention, the World Trade Organization, the United Nations 
     Food and Agriculture Organization, and other appropriate 
     venues, the President shall--
       ``(A) seek commitments of higher levels of food aid by 
     donors in order to meet the legitimate needs of developing 
     countries;
       ``(B) ensure, to the maximum extent practicable, that 
     humanitarian nongovernmental organizations, recipient country 
     governments, charitable bodies, and international 
     organizations shall continue--
       ``(i) to be eligible to receive resources based on 
     assessments of need conducted by those organizations and 
     entities; and
       ``(ii) to implement food aid programs in agreements with 
     donor countries; and
       ``(C) ensure, to the maximum extent practicable, that 
     options for providing food aid for emergency and 
     nonemergency, or chronic, needs shall not be subject to 
     limitation, including in-kind commodities, provision of funds 
     for commodity procurement, and monetization of commodities, 
     on the condition that the provision of those commodities or 
     funds--
       ``(i) is based on assessments of need and intended to 
     benefit the food security of or otherwise assist recipients, 
     and
       ``(ii) is provided in a manner that avoids disincentives to 
     local agricultural production and marketing and with minimal 
     potential for disruption of commercial markets; and''.

     SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

       (a) Title I of the Food for Peace Act (7 U.S.C. 1701 et 
     seq.) is amended in the title heading, by striking ``TRADE 
     AND DEVELOPMENT ASSISTANCE'' and inserting ``ECONOMIC 
     ASSISTANCE AND FOOD SECURITY''.

[[Page 29269]]

       (b) Section 101 of the Food for Peace Act (7 U.S.C. 1701) 
     is amended in the section heading, by striking ``TRADE AND 
     DEVELOPMENT ASSISTANCE'' and inserting ``ECONOMIC ASSISTANCE 
     AND FOOD SECURITY''.

     SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND 
                   PRIVATE ENTITIES.

       Section 102 of the Food for Peace Act (7 U.S.C. 1702) is 
     amended--
       (1) in subsection (a)--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively; and
       (2) by striking subsection (c).

     SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

       Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c)) 
     is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     through agreements with recipient governments, private 
     voluntary organizations, and cooperatives,'' after 
     ``developing country'';
       (2) in paragraph (2)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(E) the improvement of the trade capacity of the 
     recipient country.'';
       (3) by striking paragraphs (1), (3), (4), (5), and (6); and
       (4) by redesignating paragraphs (2), (7), (8), and (9) as 
     paragraphs (1), (2), (3), and (4), respectively.

     SEC. 3007. GENERAL AUTHORITY.

       Section 201 of the Food for Peace Act (7 U.S.C. 1721) is 
     amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) address famine and respond to emergency food needs 
     arising from man-made and natural disasters;'';
       (2) in paragraph (5), by inserting ``food security and 
     support'' after ``promote''; and
       (3) by striking paragraph (6) and inserting the following:
       ``(6) protect livelihoods, provide safety nets for food 
     insecure populations, and encourage participation in 
     educational, training, and other productive activities.''.

     SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

       Section 202 of the Food for Peace Act (7 U.S.C. 1722) is 
     amended--
       (1) in subsection (b)(2), by striking ``may not deny a 
     request for funds'' and inserting ``may not use as a sole 
     rationale for denying a request for funds'';
       (2) in subsection (e)(1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``Of the funds made available in'' and 
     inserting ``Of the total amount of funds made available from 
     all sources for''; and
       (ii) by striking ``not less than 5 percent nor more than 10 
     percent'' and inserting ``not less than 7.5 percent'';
       (B) in subparagraph (A), by striking ``and'' at the end;
       (C) by striking subparagraph (B) and inserting the 
     following:
       ``(B) meeting specific administrative, management, 
     personnel, programmatic, and operational activities, and 
     internal transportation and distribution costs for carrying 
     out new and existing programs in foreign countries under this 
     title; and''
       (D) by adding at the end the following:
       ``(C) improving and implementing methodologies for food aid 
     programs, including needs assessments, monitoring, and 
     evaluation.''; and
       (3) by striking subsection (h) and inserting the following:
       ``(h) Food Aid Quality.--
       ``(1) In general.--The Administrator shall use funds made 
     available for fiscal year 2008 and subsequent fiscal years to 
     carry out this title--
       ``(A) to assess the types and quality of agricultural 
     commodities and products donated for food aid;
       ``(B) to adjust products and formulations as necessary to 
     cost-effectively meet nutrient needs of target populations; 
     and
       ``(C) to pretest prototypes.
       ``(2) Administration.--The Administrator--
       ``(A) shall carry out this subsection in consultation with 
     and through an independent entity with proven impartial 
     expertise in food aid commodity quality enhancements;
       ``(B) may enter into contracts to obtain the services of 
     such an entity; and
       ``(C) shall consult with the Food Aid Consultative Group on 
     how to carry out this subsection.
       ``(3) Reports.--The Administrator shall submit to the 
     Committees on Agriculture and Foreign Affairs of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate--
       ``(A) a report that describes the activities of the 
     Administrator in carrying out paragraph (1) for fiscal year 
     2008; and
       ``(B) an annual report that describes the progress of the 
     Administrator in addressing food aid quality issues.''.

     SEC. 3009. MICROENTERPRISE ACTIVITIES.

       Section 203(d)(2) of the Food for Peace Act (7 
     U.S.C.1723(d)(2)) is amended by inserting ``, including 
     activities involving microenterprise and village banking,'' 
     after ``other developmental activities''.

     SEC. 3010. LEVELS OF ASSISTANCE.

       Section 204(a)(1) of the Food for Peace Act (7 U.S.C. 
     1724(a)(1)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 3011. FOOD AID CONSULTATIVE GROUP.

       Section 205 of the Food for Peace Act (7 U.S.C. 1725) is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) in paragraph (6), by striking the period and inserting 
     ``; and''; and
       (C) by inserting at the end the following:
       ``(7) representatives from the maritime transportation 
     sector involved in transporting agricultural commodities 
     overseas for programs under this Act.'';
       (2) in subsection (d)--
       (A) by striking ``In preparing'' and inserting the 
     following:
       ``(1) In general.--In preparing'';
       (B) by striking ``The Administrator'' and inserting the 
     following:
       ``(2) Biannual consultation.--The Administrator''; and
       (C) by adding at the end the following:
       ``(3) Consultation for draft regulations.--In addition to 
     the meetings required under paragraph (2), the Administrator 
     shall consult and meet with the Group--
       ``(A) before issuing the draft regulations to carry out the 
     program described in section 209; and
       ``(B) during the public comment period relating to those 
     draft regulations.''; and
       (3) in subsection (f), by striking ``2007'' and inserting 
     ``2012''.

     SEC. 3012. ADMINISTRATION.

       Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is 
     amended--
       (1) in subsection (a)(3), by striking ``must be met for the 
     approval of such proposal'' and inserting ``should be 
     considered for a proposal in a future fiscal year'';
       (2) in subsection (c), by striking paragraph (3);
       (3) by striking subsection (d) and inserting the following:
       ``(d) Timely Provision of Commodities.--The Administrator, 
     in consultation with the Secretary, shall develop procedures 
     that ensure expedited processing of commodity call forwards 
     in order to provide commodities overseas in a timely manner 
     and to the extent feasible, according to planned delivery 
     schedules.'';
       (4) in subsection (e)(2), by striking ``December 1'' and 
     inserting ``June 1''; and
       (5) by adding at the end the following:
       ``(f) Program Oversight.--
       ``(1) In general.--Funds made available to carry out this 
     title may be used to pay the expenses of the United States 
     Agency for International Development associated with program 
     monitoring, evaluation, assessments, food aid data 
     collection, and food aid information management and commodity 
     reporting systems.
       ``(2) Contract authority.--
       ``(A) In general.--Subject to subparagraphs (B) and (C) and 
     notwithstanding any other provision of law, in carrying out 
     administrative and management activities related to the 
     implementation of programs under this title, the 
     Administrator may contract with 1 or more individuals for 
     personal service to be performed in recipient countries or 
     neighboring countries.
       ``(B) Prohibition.--Individuals contracting with the 
     Administrator under subparagraph (A) shall not be considered 
     to be employees of the United States Government for the 
     purpose of any law administered by the Office of Personnel 
     Management.
       ``(C) Personal service.--Subparagraph (A) does not limit 
     the ability of the Administrator to contract with individuals 
     for personal service under section 202(a).
       ``(g) Indirect Support Costs to the World Food Program of 
     the United Nations.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, in providing assistance under this title, the 
     Administrator may make contributions to the World Food 
     Program of the United Nations to the extent that the 
     contributions are made in accordance with the rules and 
     regulations of that program for indirect cost rates.
       ``(2) Report.--The Administrator shall submit the 
     Committees on Agriculture and Foreign Affairs of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate an annual report on the level of 
     the contribution and the reasons for the level.
       ``(h) Indirect Support Costs to Cooperating Sponsors.--
     Notwithstanding any other provision of law, the Administrator 
     may pay to a private voluntary organization or cooperative 
     indirect costs associated with any funds received or 
     generated for programs, costs, or activities under this 
     title, on the condition that the indirect costs are 
     consistent with Office of Management and Budget cost 
     principles.
       ``(i) Project Reporting.--
       ``(1) In general.--In submitting project reports to the 
     Administrator, a private voluntary organization or 
     cooperative shall provide a copy of the report in such form 
     as is necessary for the report to be displayed for public use 
     on the website of the United States Agency for International 
     Development.

[[Page 29270]]

       ``(2) Confidential information.--An organization or 
     cooperative described in paragraph (1) may omit any 
     confidential information from the copy of the report 
     submitted for public display under that paragraph.''.

     SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID 
                   TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF 
                   SHELF-STABLE PREPACKAGED FOODS.

       Section 208(f) of the Food for Peace Act (7 U.S.C. 
     1726b(f)) is amended--
       (1) by striking ``$3,000,000'' and inserting 
     ``$8,000,000''; and
       (2) by striking ``2007'' and inserting ``2012''.

     SEC. 3014. PILOT PROGRAM FOR LOCAL PURCHASE.

       Title II of the Food for Peace Act (7 U.S.C. 1721 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 209. PILOT PROGRAM FOR LOCAL PURCHASE.

       ``(a) Definitions.--In this section:
       ``(1) Eligible commodity.--Notwithstanding section 402(2), 
     the term `eligible commodity' means an agricultural 
     commodity, or the product of an agricultural commodity, that 
     is produced in--
       ``(A) the recipient country;
       ``(B) a low-income, developing country near the recipient 
     country; or
       ``(C) Africa.
       ``(2) Eligible organization.--The term `eligible 
     organization' means--
       ``(A) an organization that is--
       ``(i) described in section 202(d); and
       ``(ii) subject to guidelines promulgated to carry out this 
     section, including United States audit requirements that are 
     applicable to non-governmental organizations; or
       ``(B) an intergovernmental organization, if the 
     organization agrees to be subject to all requirements of this 
     section, including any regulations promulgated or guidelines 
     issued by the Administrator to carry out this section.
       ``(3) Pilot program.--The term `pilot program' means the 
     pilot program established under subsection (b).
       ``(b) Establishment.--Notwithstanding section 407(c)(1)(A), 
     the Administrator, in consultation with the Secretary, shall 
     establish a field-based pilot program for local and regional 
     purchases of eligible commodities in accordance with this 
     section.
       ``(c) Purposes.--Eligible commodities under the pilot 
     program shall be used solely--
       ``(1) to address severe food shortages caused by sudden 
     events, including--
       ``(A) earthquakes, floods, and other unforeseen crises; or
       ``(B) human-made crises, such as conflicts;
       ``(2) to prevent or anticipate increasing food scarcity as 
     the result of slow-onset events, such as drought, crop 
     failures, pests, economic shocks, and diseases that result in 
     an erosion of the capacity of communities and vulnerable 
     populations to meet food needs;
       ``(3) to address recovery, resettlement, and reconstruction 
     following 1 or more disasters or emergencies described in 
     paragraph (1) or (2); and
       ``(4) to protect and improve livelihoods and food security, 
     provide safety nets for food insecure or undernourished 
     populations, and encourage participation in education and 
     other productive activities.
       ``(d) Procurement.--Subject to subsections (a), (b), (f), 
     and (h) of section 403, eligible commodities under the pilot 
     program shall for emergency situations be procured through 
     the most effective 1 or more approaches or methodologies that 
     are likely to expedite the provision of food aid to affected 
     populations.
       ``(e) Review of Prior Local Cash Purchase Experience.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, the Administrator shall initiate 
     the process to commission an external review of local cash 
     purchase projects conducted before the date of enactment of 
     this section by other donor countries, private voluntary 
     organizations, and the World Food Program of the United 
     Nations.
       ``(2) Use of review.--The Administrator shall use the 
     results of the review to develop--
       ``(A) proposed guidelines under subsection (j); and
       ``(B) requests for applications under subsection (f).
       ``(3) Report.--Not later than 270 days after the date of 
     enactment of this section, the Administrator shall submit to 
     the Committees on Agriculture and Foreign Affairs of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report containing the 
     results of the review.
       ``(f) Grants to Eligible Organizations.--
       ``(1) In general.--After the promulgation of final 
     guidelines under subsection (j), the Administrator may seek 
     applications from and provide grants to eligible 
     organizations to carry out the pilot program.
       ``(2) Completion requirement.--As a condition of receiving 
     a grant under the pilot program, an eligible organization 
     shall agree--
       ``(A) to complete all projects funded through the grant not 
     later than September 30, 2011; and
       ``(B) to provide information about the results of the 
     project in accordance with subsection (i).
       ``(3) Other requirements.--Other requirements for 
     submission of proposals for consideration under this title 
     shall apply to the submission of an application for a grant 
     under this section.
       ``(g) Project Diversity.--In selecting projects to fund 
     under the pilot program, the Administrator shall select a 
     diversity of projects, including--
       ``(1) at least 1 project for each of the situations 
     described in subsection (c);
       ``(2) at least 1 project carried out jointly with a project 
     using agricultural commodities produced in the United States 
     under this title;
       ``(3) at least 1 project carried out jointly with a project 
     funded through grassroots efforts by agricultural producers 
     through eligible United States organizations;
       ``(4) projects in both food surplus and food deficit 
     regions, using regional procurement for food deficit regions; 
     and
       ``(5) projects in diverse geographical regions, with most, 
     but not all, projects located in Africa.
       ``(h) Information Required in Applications.--In submitting 
     an application under this section, an eligible organization 
     shall--
       ``(1) request funding for up to 3 years; and
       ``(2) include in the application--
       ``(A) a description of the target population through a 
     needs assessment and sufficient information to demonstrate 
     that the situation is a situation described in subsection 
     (c);
       ``(B) an assurance that the local or regional procurement--
       ``(i) is likely to expedite the provision of food aid to 
     the affected population; and
       ``(ii) would meet the requirements of subsection (d);
       ``(C) a description of--
       ``(i) the quantities and types of eligible commodities that 
     would be procured;
       ``(ii) the rationale for selecting those eligible 
     commodities; and
       ``(iii) how the eligible commodities could be procured and 
     delivered in a timely manner;
       ``(D) an analysis of the potential impact of the purchase 
     of eligible commodities on the production, pricing, and 
     marketing of the same and similar agricultural commodities in 
     the country and localities in which the purchase will take 
     place;
       ``(E) a description of food quality and safety assurance 
     measures; and
       ``(F) a monitoring and evaluation plan that ensures 
     collection of sufficient data--
       ``(i) to determine the full cost of procurement, delivery, 
     and administration;
       ``(ii) to report on the agricultural production, marketing, 
     and price impact of the local or regional purchases, 
     including the impact on low-income consumers; and
       ``(iii) to provide sufficient information to support the 
     completion of the report described in subsection (i).
       ``(i) Independent Evaluation and Report.--
       ``(1) In general.--The Administrator shall--
       ``(A) arrange for an independent evaluation of the pilot 
     program; and
       ``(B) provide access to all records and reports for the 
     completion of the evaluation.
       ``(2) Report.--Not later than 4 years after the date of 
     enactment of this section, the Administrator shall submit to 
     the Committees on Agriculture and Foreign Affairs of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that--
       ``(A) includes the analysis and findings of the independent 
     evaluation;
       ``(B) assesses whether the requirements of this section 
     have been met;
       ``(C) describes for each of the relevant markets in which 
     the commodities were purchased--
       ``(i) prevailing and historic supply, demand, and price 
     movements;
       ``(ii) impact on producer and consumer prices;
       ``(iii) government market interferences and other donor 
     activities that may have affected the supply and demand in 
     the area in which the local or regional purchase took place; 
     and
       ``(iv) the quantities and types of eligible commodities 
     procured in each market, the time frame for procurement, and 
     the complete costs of the procurement (including procurement, 
     storage, handling, transportation, and administrative costs);
       ``(D) assesses the impact of different methodologies and 
     approaches on local and regional agricultural producers 
     (including large and small producers), markets, low-income 
     consumers, and program recipients;
       ``(E) assesses the time elapsed from initiation of the 
     procurement process to delivery;
       ``(F) compares different methodologies used in terms of--
       ``(i) the benefits to local agriculture;
       ``(ii) the impact on markets and consumers;
       ``(iii) the time for procurement and delivery;
       ``(iv) quality and safety assurances; and
       ``(v) implementation costs; and
       ``(G) to the extent adequate information is available, 
     includes a comparison of the different methodologies used by 
     other donors to

[[Page 29271]]

     make local and regional purchases, including purchases 
     conducted through the World Food Program of the United 
     Nations.
       ``(j) Guidelines.--Prior to approving projects or the 
     procurement of eligible commodities under this section, not 
     later than 1 year after the date of enactment of this 
     section, the Administrator shall issue guidelines to carry 
     out this section.
       ``(k) Authorization of Appropriations.--
       ``(1) In general.--Subject to paragraph (2), for each of 
     fiscal years 2008 through 2011, the Administrator may use to 
     carry out this section not more than $25,000,000 of funds 
     made available to carry out this title, to remain available 
     until expended.
       ``(2) Limitation.--No funds may be made available to carry 
     out the pilot program unless the minimum tonnage requirements 
     of section 204(a) are met.''.

     SEC. 3015. GENERAL AUTHORITIES AND REQUIREMENTS.

       (a) In General.--Section 401 of the Food for Peace Act (7 
     U.S.C. 1731) is amended--
       (1) by striking subsection (a);
       (2) redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively; and
       (3) in subsection (b) (as so redesignated), by striking 
     ``(b)(1)'' and inserting ``(a)(1)''.
       (b) Conforming Amendments.--
       (1) Section 406(a) of the Food for Peace Act (7 U.S.C. 
     1736(a)) is amended by striking ``(that have been determined 
     to be available under section 401(a))''.
       (2) Subsection (e)(1) of the Food for Progress Act of 1985 
     (7 U.S.C. 1736o(e)(1)) is amended by striking ``determined to 
     be available under section 401 of the Food for Peace Act''.

     SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

       Section 406(b)(2) of the Food for Peace Act (7 U.S.C. 
     1736(b)(2)) is amended by inserting ``, including the costs 
     of carrying out section 415'' before the semicolon.

     SEC. 3017. ADMINISTRATIVE PROVISIONS.

       Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is 
     amended--
       (1) in subsection (c)(4)--
       (A) by striking ``2007'' and inserting ``2012'';
       (B) by striking ``$2,000,000'' and inserting 
     ``$4,000,000''; and
       (C) by adding at the end the following:
       ``(5) Nonemergency or multiyear agreements.--Annual 
     resource requests for ongoing nonemergency or multiyear 
     agreements under title II shall be finalized not later than 
     October 1 of the fiscal year in which the agricultural 
     commodities will be shipped under the agreement.''; and
       (2) in subsection (f)--
       (A) in paragraph (2)--
       (i) in subparagraph (B), by inserting ``, and the amount of 
     funds, tonnage levels, and types of activities for 
     nonemergency programs under title II'' before the semicolon;
       (ii) in subparagraph (C), by inserting ``, and a general 
     description of the projects and activities implemented'' 
     before the semicolon; and
       (iii) in subparagraph (D), by striking ``achieving food 
     security'' and inserting ``reducing food insecurity''; and
       (B) in paragraph (3)--
       (i) by striking ``shall submit'' and inserting the 
     following: ``shall--
       ``(A) submit'';
       (ii) by striking ``January 15'' and inserting ``April 1''; 
     and
       (iii) by striking ``of the Senate''. and inserting the 
     following: ``of the Senate; and
       ``(B) make the reports available to the public by 
     electronic and other means.''.

     SEC. 3018. EXPIRATION DATE.

       Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is 
     amended by striking ``2007'' and inserting ``2012''.

     SEC. 3019. AUTHORIZATION OF APPROPRIATIONS.

       Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is 
     amended by striking subsection (b) and inserting the 
     following:
       ``(b) Minimum Level of Nonemergency Food Assistance.--For 
     each of fiscal years 2008 through 2012, of the amounts made 
     available to carry out emergency and nonemergency food 
     assistance programs under title II, not less than 
     $600,000,000 for each of those fiscal years shall be 
     obligated and expended for nonemergency food assistance 
     programs under title II.''.

     SEC. 3020. MICRONUTRIENT FORTIFICATION PROGRAMS.

       Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``Not later than 
     September 30, 2003, the Administrator, in consultation with 
     the Secretary'' and inserting ``Not later than September 30, 
     2008, the Secretary, in consultation with the 
     Administrator''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by adding ``and'' after the 
     semicolon at the end; and
       (ii) by striking subparagraphs (B) and (C) and inserting 
     the following:
       ``(B) assess and apply technologies and systems to improve 
     and ensure the quality, shelf life, bioavailability, and 
     safety of fortified food aid agricultural commodities, and 
     products of those agricultural commodities, that are provided 
     to developing countries, using recommendations included in 
     the report entitled `Micronutrient Compliance Review of 
     Fortified Public Law 480 Commodities', published in October 
     2001, with implementation by an independent entity with 
     proven impartial experience and expertise in food aid 
     commodity quality enhancements.'';
       (2) by striking subsection (b) and redesignating 
     subsections (c) and (d) as subsections (b) and (c), 
     respectively; and
       (3) in subsection (c) (as redesignated by paragraph (2), by 
     striking ``2007'' and inserting ``2012''.

     SEC. 3021. GERMPLASM CONSERVATION.

       Title IV of the Food for Peace Act (7 U.S.C. 1731 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 417. GERMPLASM CONSERVATION.

       ``(a) Contribution.--The Administrator of the United States 
     Agency for International Development shall contribute funds 
     to endow the Global Crop Diversity Trust (referred to in this 
     section as the `Trust') to assist in the conservation of 
     genetic diversity in food crops through the collection and 
     storage of the germplasm of food crops in a manner that 
     provides for--
       ``(1) the maintenance and storage of seed collections;
       ``(2) the documentation and cataloguing of the genetics and 
     characteristics of conserved seeds to ensure efficient 
     reference for researchers, plant breeders, and the public;
       ``(3) building the capacity of seed collection in 
     developing countries;
       ``(4) making information regarding crop genetic data 
     publicly available for researchers, plant breeders, and the 
     public (including through the provision of an accessible 
     Internet website);
       ``(5) the operation and maintenance of a back-up facility 
     in which are stored duplicate samples of seeds, in the case 
     of natural or man-made disasters; and
       ``(6) oversight designed to ensure international 
     coordination of those actions and efficient, public 
     accessibility to that diversity through a cost-effective 
     system.
       ``(b) United States Contribution Limit.--The aggregate 
     contributions of funds of the Federal Government provided to 
     the Trust shall not exceed 25 percent of the total of the 
     funds contributed to the Trust from all sources.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $60,000,000 for 
     the period of fiscal years 2008 through 2012.''.

     SEC. 3022. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER 
                   PROGRAM.

       Section 501 of the Food for Peace Act (7 U.S.C. 1737) is 
     amended by striking ``2007'' each place it appears and 
     inserting ``2012''.

    Subtitle B--Agricultural Trade Act of 1978 and Related Statutes

     SEC. 3101. NONGOVERNMENTAL ORGANIZATION PARTICIPATION IN THE 
                   RESOLUTION OF TRADE DISPUTES.

       Section 104 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5604) is amended--
       (1) by striking ``The Secretary shall'' and inserting the 
     following:
       ``(a) In General.--The Secretary shall''; and
       (2) by adding at the end the following:
       ``(b) Nongovernmental Organization Participation in the 
     Resolution of Trade Disputes.--The Secretary shall permit 
     United States nongovernmental organizations to participate as 
     part of the United States delegation attending formal 
     sessions of dispute resolution panels involving United States 
     agriculture under the auspices of the World Trade 
     Organization if--
       ``(1) the 1 or more other members of the World Trade 
     Organization involved in the dispute are expected to include 
     private sector representatives in the delegations of the 
     members to the sessions;
       ``(2) the United States nongovernmental organization has 
     submitted public comments through the Federal Register that 
     support the position of the United States Government in the 
     case; and
       ``(3) the United States nongovernmental organization will 
     provide for representation at the session a cleared adviser 
     who is a member of the agricultural policy advisory committee 
     or an agricultural technical advisory committee established 
     under the Federal Advisory Committee Act (5 U.S.C. App.).''.

     SEC. 3102. EXPORT CREDIT GUARANTEE PROGRAM.

       (a) Repeal of Supplier Credit Guarantee Program and 
     Intermediate Export Credit Guarantee Program.--Section 202 of 
     the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``The Commodity'' and 
     inserting ``Subject to paragraph (2), the Commodity''; and
       (B) by striking paragraphs (2) and (3) and inserting the 
     following:
       ``(2) Tenure.--Beginning with the 2013 fiscal year, credit 
     terms described in paragraph (1) may not exceed a 180-day 
     period.'';
       (2) by striking subsections (b) and (c);
       (3) by redesignating subsections (d) through (l) as 
     subsections (b) through (j), respectively; and
       (4) by adding at the end the following:
       ``(k) Administration.--
       ``(1) Definition of long term.--In this subsection, the 
     term `long term' means a period of 10 or more years.
       ``(2) Guarantees.--In administering the export credit 
     guarantees authorized under this section, the Secretary 
     shall--

[[Page 29272]]

       ``(A) maximize the export sales of agricultural 
     commodities;
       ``(B) maximize the export credit guarantees that are made 
     available and used during the course of a fiscal year;
       ``(C) develop an approach to risk evaluation that 
     facilitates accurate country risk designations and timely 
     adjustments to the designations (on an ongoing basis) in 
     response to material changes in country risk conditions, with 
     ongoing opportunity for input and evaluation from the private 
     sector;
       ``(D) adjust risk-based guarantees as necessary to ensure 
     program effectiveness and United States competitiveness; and
       ``(E) work with industry to ensure that risk-based fees 
     associated with the guarantees cover, but do not exceed, the 
     operating costs and losses over the long term.''.
       (b) Conforming Amendments.--The Agricultural Trade Act of 
     1978 is amended--
       (1) in section 202 (7 U.S.C. 5622)--
       (A) in subsection (b)(4) (as redesignated by subsection 
     (a)(3)), by striking ``, consistent with the provisions of 
     subsection (c)'';
       (B) in subsection (d) (as redesignated by subsection 
     (a)(3))--
       (i) by striking ``(1)'' and all that follows through ``The 
     Commodity'' and inserting ``The Commodity''; and
       (ii) by striking paragraph (2); and
       (C) in subsection (g)(2) (as redesignated by subsection 
     (a)(3)), by striking ``subsections (a) and (b)'' and 
     inserting ``subsection (a)''; and
       (2) in section 211, by striking subsection (b) and 
     inserting the following:
       ``(b) Export Credit Guarantee Programs.--The Commodity 
     Credit Corporation shall make available for each of fiscal 
     years 1996 through 2012 not less than $5,500,000,000 in 
     credit guarantees under section 202(a).''.

     SEC. 3103. MARKET ACCESS PROGRAM.

       (a) Organic Commodities.--Section 203(a) of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5623(a)) is amended 
     by inserting after ``agricultural commodities'' the 
     following: ``(including commodities that are organically 
     produced (as defined in section 2103 of the Organic Foods 
     Production Act of 1990 (7 U.S.C. 6502)))''.
       (b) Funding.--Section 211(c)(1)(A) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by 
     striking ``, and $200,000,000 for each of fiscal years 2006 
     and 2007'' and inserting ``$200,000,000 for each of fiscal 
     years 2006 and 2007, $210,000,000 for fiscal year 2008, 
     $220,000,000 for fiscal year 2009, $230,000,000 for fiscal 
     year 2010, $240,000,000 for fiscal year 2011, and 
     $200,000,000 for fiscal year 2012 and each subsequent fiscal 
     year''.

     SEC. 3104. EXPORT ENHANCEMENT PROGRAM.

       (a) In General.--Section 301 of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5651) is repealed.
       (b) Conforming Amendments.--The Agricultural Trade Act of 
     1978 is amended--
       (1) in title III, by striking the title heading and 
     inserting the following:

                  ``TITLE III--BARRIERS TO EXPORTS'';

       (2) by redesignating section 302 as section 301;
       (3) by striking section 303;
       (4) in section 401 (7 U.S.C. 5661)--
       (A) in subsection (a), by striking ``section 201, 202, or 
     301'' and inserting ``section 201 or 202''; and
       (B) in subsection (b), by striking ``sections 201, 202, and 
     301'' and inserting ``sections 201 and 202''; and
       (5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking 
     ``sections 201, 202, 203, and 301'' and inserting ``sections 
     201, 202, and 203''.

     SEC. 3105. VOLUNTARY CERTIFICATION OF CHILD LABOR STATUS OF 
                   AGRICULTURAL IMPORTS.

       Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5674) is amended by adding at the end the following:
       ``(d) Reducing Child Labor and Forced Labor.--
       ``(1) Definitions.--In this subsection:
       ``(A) Child labor.--The term `child labor' means the worst 
     forms of child labor as defined in International Labor 
     Convention 182, the Convention Concerning the Prohibition and 
     Immediate Action for the Elimination of the Worst Forms of 
     Child Labor, done at Geneva on June 17, 1999.
       ``(B) Forced labor.--The term `forced labor' means all work 
     or service--
       ``(i) that is exacted from any individual under menace of 
     any penalty for non-performance of the work or service, and 
     for which the individual does not offer himself or herself 
     voluntarily, by coercion, debt bondage, involuntary servitude 
     (as those terms are defined in section 103 of the Trafficking 
     Victims Protection Act of 2000 (22 U.S.C. 7102)); and
       ``(ii) by 1 or more individuals who, at the time of 
     production, were being subjected to a severe form of 
     trafficking in persons (as that term is defined in that 
     section).
       ``(2) Development of standard set of practices.--
       ``(A) In general.--The Secretary, in coordination with the 
     Secretary of Labor, shall develop a standard set of practices 
     for the production of agricultural commodities that are 
     imported, sold, or marketed in the United States in order to 
     reduce the likelihood that the agricultural commodities are 
     produced with the use of forced labor or child labor.
       ``(B) Requirement.--The standard set of practices shall be 
     developed in accordance with the requirements of the 
     Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et 
     seq.).
       ``(3) Requirements.--Not later than 3 years after the date 
     of enactment of this subsection, the Secretary shall, with 
     respect to the standard set of practices developed under 
     paragraph (2), promulgate proposed regulations that shall, at 
     a minimum, establish a voluntary certification program to 
     enforce this subsection by--
       ``(A) requiring agricultural commodity traceability and 
     inspection at all stages of the supply chain;
       ``(B) allowing for multistakeholder participation in the 
     certification process;
       ``(C) providing for annual onsite inspection by a 
     certifying agent, who shall be certified in accordance with 
     the International Organization for Standardization Guide 65, 
     of each affected worksite and handling operation;
       ``(D) incorporating a comprehensive conflict of interest 
     policy for certifying agents, in accordance with section 
     2116(h) of the Organic Foods Production Act of 1990 (7 U.S.C. 
     6515(h)); and
       ``(E) providing an anonymous grievance procedure that--
       ``(i) is accessible by third parties to allow for the 
     identification of new or continuing violations of the 
     regulations; and
       ``(ii) provides protections for whistleblowers.
       ``(4) Reporting requirement.--Not later than 180 days after 
     the date of enactment of this subsection, and annually 
     thereafter, the Secretary shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate, a 
     report on the development and implementation of the standard 
     set of practices under this subsection.''.

     SEC. 3106. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       Section 703(a) of the Agricultural Trade Act of 1978 (7 
     U.S.C. 5723(a)) is amended by striking ``amount of 
     $34,500,000 for each of fiscal years 2002 through 2007'' and 
     inserting ``amount of--
       ``(1) $39,500,000 for each of fiscal years 2008 and 2009;
       ``(2) $44,500,000 for fiscal year 2010; and
       ``(3) $34,500,000 for fiscal year 2011 and each subsequent 
     fiscal year.''.

     SEC. 3107. FOOD FOR PROGRESS ACT OF 1985.

       The Food for Progress Act of 1985 (7 U.S.C. 1736o) is 
     amended--
       (1) by striking ``2007'' each place it appears and 
     inserting ``2012'';
       (2) in subsection (b)(5)--
       (A) by striking subparagraphs (A), (B), and (F);
       (B) in subparagraph (D), by inserting ``and'' after the 
     semicolon;
       (C) in subparagraph (E), by striking ``; and'' and 
     inserting a period; and
       (D) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (A), (B), and (C), respectively; and
       (3) in subsection (f), by striking paragraph (3) and 
     inserting the following:
       ``(3) Funding limitations.--With respect to eligible 
     commodities made available under section 416(b) of the 
     Agricultural Act of 1949 (42 U.S.C. 1431(b)), unless 
     authorized in advance in appropriation Acts--
       ``(A) for each of fiscal years 2008 through 2010, no funds 
     of the Corporation in excess of $48,000,000 (exclusive of the 
     cost of eligible commodities) may be used to carry out this 
     section; and
       ``(B) for fiscal year 2011 and each fiscal year thereafter, 
     no funds of the Corporation in excess of $40,000,000 
     (exclusive of the cost of eligible commodities) may be used 
     to carry out this section.''.

     SEC. 3108. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND 
                   CHILD NUTRITION PROGRAM.

       Section 3107 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 1736o-1) is amended--
       (1) in subsection (b), by inserting ``in the Department of 
     Agriculture'' after ``establish a program'';
       (2) in subsections (c)(2)(B), (f)(1), (h), (i), and (l)(1) 
     by striking ``President'' each place it appears and inserting 
     ``Secretary'';
       (3) in subsection (d), by striking ``The President shall 
     designate 1 or more Federal agencies'' and inserting ``The 
     Secretary shall'';
       (4) in paragraph (f)(2), by striking ``implementing 
     agency'' and inserting ``Secretary''; and
       (5) in subsection (l)(2), by striking ``such sums'' and all 
     that follows through ``2007'' and inserting ``$300,000,000 
     for each of fiscal years 2008 through 2012''.

                       Subtitle C--Miscellaneous

     SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

       Section 302 of the Bill Emerson Humanitarian Trust Act (7 
     U.S.C. 1736f-1) is amended--
       (1) in subsection (a), by striking ``a trust stock'' and 
     all that follows through the end of the subsection and 
     inserting the following: ``a trust of commodities, for use as 
     described in subsection (c), to consist of--
       ``(1) quantities equivalent to not more than 4,000,000 
     metric tons of commodities; or
       ``(2) any combination of funds and commodities equivalent 
     to not more than 4,000,000 metric tons of commodities.'';

[[Page 29273]]

       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (B)--

       (I) by striking ``replenish'' each place it appears and 
     inserting ``reimburse''; and
       (II) by striking ``replenished'' and inserting 
     ``reimbursed''; and

       (ii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) funds made available--
       ``(i) under paragraph (2)(B);
       ``(ii) as a result of an exchange of any commodity held in 
     the trust for an equivalent amount of funds from--

       ``(I) the Agricultural Trade Development and Assistance Act 
     of 1954 (7 U.S.C. 1691 et seq.);
       ``(II) the McGovern-Dole International Food for Education 
     and Child Nutrition Program established under section 3107 of 
     the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     1736o-1); or
       ``(III) the market, if the Secretary determines that such a 
     sale of the commodity on the market will not unduly disrupt 
     domestic markets; and

       ``(iii) in the course of management of the trust or to 
     maximize the value of the trust, in accordance with 
     subsection (d)(3).''; and
       (B) in paragraph (2)(B)--
       (i) in the matter preceding clause (i), by striking 
     ``replenish'' and inserting ``reimburse'';
       (ii) in clause (i)--

       (I) by striking ``2007'' each place it appears and 
     inserting ``2012'';
       (II) by striking ``(c)(2)'' and inserting ``(c)(1)''; and
       (III) by striking ``and'' at the end;

       (iii) in clause (ii), by striking the period at the end and 
     inserting ``; or''; and
       (iv) by adding at the end the following:
       ``(iii) from funds accrued through the management of the 
     trust under subsection (d).'';
       (3) in subsection (c)--
       (A) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Releases for emergency assistance.--
       ``(A) Definition of emergency.--
       ``(i) In general.--In this paragraph, the term `emergency' 
     means an urgent situation--

       ``(I) in which there is clear evidence that an event or 
     series of events described in clause (ii) has occurred--

       ``(aa) that causes human suffering or imminently threatens 
     human lives or livelihoods; and
       ``(bb) for which a government concerned has not the means 
     to remedy; or

       ``(II) created by a demonstrably abnormal event or series 
     of events that produces dislocation in the lives of residents 
     of a country or region of a country on an exceptional scale.

       ``(ii) Event or series of events.--An event or series of 
     events referred to in clause (i) includes 1 or more of--

       ``(I) a sudden calamity, such as an earthquake, flood, 
     locust infestation, or similar unforeseen disaster;
       ``(II) a human-made emergency resulting in--

       ``(aa) a significant influx of refugees;
       ``(bb) the internal displacement of populations; or
       ``(cc) the suffering of otherwise affected populations;

       ``(III) food scarcity conditions caused by slow-onset 
     events, such as drought, crop failure, pest infestation, and 
     disease, that result in an erosion of the ability of 
     communities and vulnerable populations to meet food needs; 
     and
       ``(IV) severe food access or availability conditions 
     resulting from sudden economic shocks, market failure, or 
     economic collapse, that result in an erosion of the ability 
     of communities and vulnerable populations to meet food needs.

       ``(B) Releases.--
       ``(i) In general.--Any funds or commodities held in the 
     trust may be released to provide assistance under title II of 
     the Food for Peace Act (7 U.S.C. 1721 et seq.)--

       ``(I) to meet emergency needs, including during the period 
     immediately preceding the emergency;
       ``(II) to respond to an emergency; or
       ``(III) for recovery and rehabilitation after an emergency.

       ``(ii) Procedure.--Subject to subparagraph (B), a release 
     under clause (i) shall be carried out in the same manner, and 
     pursuant to the same authority as provided in title II of 
     that Act.
       ``(C) Insufficiency of other funds.--The funds and 
     commodities held in the trust shall be made immediately 
     available on a determination by the Administrator that funds 
     available for emergency needs under title II of that Act (7 
     U.S.C. 1721 et seq.) for a fiscal year are insufficient to 
     meet emergency needs during the fiscal year.''; and
       (B) by redesignating paragraphs (3) through (5) as 
     paragraphs (2) through (4), respectively;
       (4) in subsection (d)--
       (A) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and indenting 
     the subparagraphs appropriately;
       (B) by striking the subsection designation and heading and 
     all that follows through ``provide--'' and inserting the 
     following:
       ``(d) Management of Trust.--
       ``(1) In general.--The Secretary shall provide for the 
     management of eligible commodities and funds held in the 
     trust in a manner that is consistent with maximizing the 
     value of the trust, as determined by the Secretary.
       ``(2) Eligible commodities.--The Secretary shall provide--
     '';
       (C) in paragraph (2) (as redesignated by subparagraph 
     (B))--
       (i) in subparagraph (B) (as redesignated by subparagraph 
     (A)), by striking ``and'' at the end;
       (ii) in subparagraph (C) (as redesignated by subparagraph 
     (A)), by striking the period at the end and inserting ``; 
     and''; and
       (iii) by adding at the end the following:
       ``(D) for the management of price risks associated with 
     commodities held or potentially held in the trust.''; and
       (D) by adding at the end the following:
       ``(3) Funds.--
       ``(A) Requirement.--The Secretary shall maximize the value 
     of funds held in the trust, to the maximum extent 
     practicable.
       ``(B) Releases on emergency.--If any commodity is released 
     from the trust in the case of an emergency under subsection 
     (c), the Secretary shall transfer to the trust funds of the 
     Commodity Credit Corporation in an amount equal to, as 
     determined by the Secretary, the amount of storage charges 
     that will be saved by Commodity Credit Corporation due to the 
     emergency release.
       ``(C) Exchanges.--If any commodity held in the trust is 
     exchanged for funds under subsection (b)(1)(D)(ii)--
       ``(i) the funds shall be held in the trust until the date 
     on which the funds are released in the case of an emergency 
     under subsection (c); and
       ``(ii) the Secretary shall transfer to the trust funds of 
     the Commodity Credit Corporation in an amount equal to, as 
     determined by the Secretary, the amount of storage charges 
     that will be saved by Commodity Credit Corporation due to the 
     exchange.
       ``(D) Investment.--The Secretary--
       ``(i) may invest funds held in the trust in any short-term 
     obligation of the United States or any other low-risk short-
     term instrument or security insured by the Federal Government 
     in which a regulated insurance company may invest under the 
     laws of the District of Columbia; and
       ``(ii) shall not invest any funds held in the trust in real 
     estate.'';
       (5) in subsection (f)(2)(A), by striking ``replenish'' and 
     inserting ``reimburse''; and
       (6) in subsection (h)--
       (A) in paragraph (1), by striking ``replenish'' and 
     inserting ``reimburse''; and
       (B) in each of paragraphs (1) and (2), by striking ``2007'' 
     each place it appears and inserting ``2012''.

     SEC. 3202. EMERGING MARKETS AND FACILITY GUARANTEE LOAN 
                   PROGRAM.

       Section 1542 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is 
     amended--
       (1) in subsection (a), by striking ``2007'' and inserting 
     ``2012'';
       (2) in subsection (b)--
       (A) in the first sentence, by redesignating paragraphs (1) 
     and (2) as subparagraphs (A) and (B), respectively, and 
     indenting appropriately;
       (B) by striking ``A portion'' and inserting the following:
       ``(1) In general.--A portion'';
       (C) in the second sentence, by striking ``The Commodity 
     Credit Corporation'' and inserting the following:
       ``(2) Priority.--The Commodity Credit Corporation''; and
       (D) by adding at the end the following:
       ``(3) Construction waiver.--The Secretary may waive any 
     applicable requirements relating to the use of United States 
     goods in the construction of a proposed facility, if the 
     Secretary determines that--
       ``(A) goods from the United States are not available; or
       ``(B) the use of goods from the United States is not 
     practicable.
       ``(4) Term of guarantee.--A facility payment guarantee 
     under this subsection shall be for a term that is not more 
     than the lesser of--
       ``(A) the term of the depreciation schedule of the facility 
     assisted; or
       ``(B) 20 years.''; and
       (3) in subsection (d)(1)(A)(i) by striking ``2007'' and 
     inserting ``2012''.

     SEC. 3203. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

       Section 1543A(d) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5679(d)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 3204. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE 
                   DISPUTES.

       (a) In General.--The Secretary may provide monitoring, 
     analytic support, and other technical assistance to limited 
     resource persons that are involved in trading agricultural 
     commodities, as determined by the Secretary, to reduce trade 
     barriers to the persons.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

[[Page 29274]]



                      TITLE IV--NUTRITION PROGRAMS

                 Subtitle A--Food and Nutrition Program

                 PART I--RENAMING OF FOOD STAMP PROGRAM

     SEC. 4001. RENAMING OF FOOD STAMP PROGRAM.

       (a) Short Title.--The first section of the Food Stamp Act 
     of 1977 (7 U.S.C. 2011 note; Public Law 88-525) is amended by 
     striking ``Food Stamp Act of 1977'' and inserting ``Food and 
     Nutrition Act of 2007''.
       (b) Program.--The Food and Nutrition Act of 2007 (7 U.S.C. 
     2011 et seq.) (as amended by subsection (a)) is amended by 
     striking ``food stamp program'' each place it appears and 
     inserting ``food and nutrition program''.

                  PART II--IMPROVING PROGRAM BENEFITS

     SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM 
                   INCOME.

       Section 5(d) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2014(d)) is amended--
       (1) by striking ``(d) Household'' and inserting ``(d) 
     Exclusions From Income.--Household'';
       (2) by striking ``only (1) any'' and inserting ``only--
       ``(1) any'';
       (3) by indenting each of paragraphs (2) through (18) so as 
     to align with the margin of paragraph (1) (as amended by 
     paragraph (1));
       (4) by striking the comma at the end of each of paragraphs 
     (1) through (16) and inserting a semicolon;
       (5) in paragraph (3)--
       (A) by striking ``like (A) awarded'' and inserting ``like--
       ``(A) awarded'';
       (B) by striking ``thereof, (B) to'' and inserting 
     ``thereof;
       ``(B) to''; and
       (C) by striking ``program, and (C) to'' and inserting 
     ``program; and
       ``(C) to'';
       (6) in paragraph (11), by striking ``)), or (B) a'' and 
     inserting ``)); or
       ``(B) a'';
       (7) in paragraph (17), by striking ``, and'' at the end and 
     inserting a semicolon;
       (8) in paragraph (18), by striking the period at the end 
     and inserting ``; and''; and
       (9) by adding at the end the following:
       ``(19) any additional payment under chapter 5 of title 37, 
     United States Code, or otherwise designated by the Secretary 
     to be appropriate for exclusion under this paragraph, that is 
     received by or from a member of the United States Armed 
     Forces deployed to a designated combat zone, if the 
     additional pay--
       ``(A) is the result of deployment to or service in a combat 
     zone; and
       ``(B) was not received immediately prior to serving in a 
     combat zone.''.

     SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-
                   INCOME AMERICANS.

       Section 5(e)(1) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2014(e)(1)) is amended--
       (1) in subparagraph (A)(ii), by striking ``not less than 
     $134'' and all that follows through the end of the clause and 
     inserting the following: ``not less than--

       ``(I) for fiscal year 2008, $140, $239, $197, and $123, 
     respectively; and
       ``(II) for fiscal year 2009 and each fiscal year 
     thereafter, an amount that is equal to the amount from the 
     previous fiscal year adjusted to the nearest lower dollar 
     increment to reflect changes for the 12-month period ending 
     on the preceding June 30 in the Consumer Price Index for All 
     Urban Consumers published by the Bureau of Labor Statistics 
     of the Department of Labor, for items other than food.'';

       (2) in subparagraph (B)(ii), by striking ``not less than 
     $269'' and all that follows through the end of the clause and 
     inserting the following: ``not less than--

       ``(I) for fiscal year 2008, $281; and
       ``(II) for fiscal year 2009 and each fiscal year 
     thereafter, an amount that is equal to the amount from the 
     previous fiscal year adjusted to the nearest lower dollar 
     increment to reflect changes for the 12-month period ending 
     on the preceding June 30 in the Consumer Price Index for All 
     Urban Consumers published by the Bureau of Labor Statistics 
     of the Department of Labor, for items other than food.''; and

       (3) by adding at the end the following:
       ``(C) Requirement.--Each adjustment under subparagraphs 
     (A)(ii)(II) and (B)(ii)(II) shall be based on the unrounded 
     amount for the prior 12-month period.''.

     SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE 
                   EXPENSES.

       Section 5(e)(3)(A) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2014(e)(3)(A)) is amended by striking ``, the maximum 
     allowable level of which shall be $200 per month for each 
     dependent child under 2 years of age and $175 per month for 
     each other dependent,''.

     SEC. 4104. ENCOURAGING RETIREMENT AND EDUCATION SAVINGS AMONG 
                   FOOD STAMP RECIPIENTS.

       (a) Allowable Financial Resources.--Section 5(g) of the 
     Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) is 
     amended--
       (1) by striking ``(g)(1) The Secretary'' and inserting the 
     following:
       ``(g) Allowable Financial Resources.--
       ``(1) Total amount.--
       ``(A) In general.--The Secretary'';
       (2) in subparagraph (A) (as designated by paragraph (1))--
       (A) by striking ``$2,000'' and inserting ``$3,500 (as 
     adjusted in accordance with subparagraph (B))''; and
       (B) by striking ``$3,000'' and inserting ``$4,500 (as 
     adjusted in accordance with subparagraph (B))''; and
       (3) by adding at the end the following:
       ``(B) Adjustment for inflation.--
       ``(i) In general.--Beginning on October 1, 2007, and each 
     October 1 thereafter, the amounts in subparagraph (A) shall 
     be adjusted and rounded down to the nearest $250 to reflect 
     changes for the 12-month period ending the preceding June in 
     the Consumer Price Index for All Urban Consumers published by 
     the Bureau of Labor Statistics of the Department of Labor.
       ``(ii) Requirement.--Each adjustment under clause (i) shall 
     be based on the unrounded amount for the prior 12-month 
     period.''.
       (b) Exclusion of Retirement Accounts From Allowable 
     Financial Resources.--
       (1) In general.--Section 5(g)(2)(B)(v) of the Food and 
     Nutrition Act of 2007 (7 U.S.C. 2014(g)(2)(B)(v)) is amended 
     by striking ``or retirement account (including an individual 
     account)'' and inserting ``account''.
       (2) Mandatory and discretionary exclusions.--Section 5(g) 
     of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) is 
     amended by adding at the end the following:
       ``(7) Exclusion of retirement accounts from allowable 
     financial resources.--
       ``(A) Mandatory exclusions.--The Secretary shall exclude 
     from financial resources under this subsection the value of--
       ``(i) any funds in a plan, contract, or account, described 
     in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 
     501(c)(18) of the Internal Revenue Code of 1986 and the value 
     of funds in a Federal Thrift Savings Plan account as provided 
     in section 8439 of title 5, United States Code; and
       ``(ii) any retirement program or account included in any 
     successor or similar provision that may be enacted and 
     determined to be exempt from tax under the Internal Revenue 
     Code of 1986.
       ``(B) Discretionary exclusions.--The Secretary may exclude 
     from financial resources under this subsection the value of 
     any other retirement plans, contracts, or accounts (as 
     determined by the Secretary).''.
       (c) Exclusion of Education Accounts From Allowable 
     Financial Resources.--Section 5(g) of the Food and Nutrition 
     Act of 2007 (7 U.S.C. 2014(g)) (as amended by subsection (b)) 
     is amended by adding at the end the following:
       ``(8) Exclusion of education accounts from allowable 
     financial resources.--
       ``(A) Mandatory exclusions.--The Secretary shall exclude 
     from financial resources under this subsection the value of 
     any funds in a qualified tuition program described in section 
     529 of the Internal Revenue Code of 1986 or in a Coverdell 
     education savings account under section 530 of that Code.
       ``(B) Discretionary exclusions.--The Secretary may exclude 
     from financial resources under this subsection the value of 
     any other education programs, contracts, or accounts (as 
     determined by the Secretary).''.

     SEC. 4105. FACILITATING SIMPLIFIED REPORTING.

       Section 6(c)(1)(A) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2015(c)(1)(A)) is amended--
       (1) by striking ``reporting by'' and inserting 
     ``reporting'';
       (2) in clause (i), by inserting ``for periods shorter than 
     4 months by'' before ``migrant'';
       (3) in clause (ii), by inserting ``for periods shorter than 
     4 months by'' before ``households''; and
       (4) in clause (iii), by inserting ``for periods shorter 
     than 1 year by'' before ``households''.

     SEC. 4106. ACCRUAL OF BENEFITS.

       Section 7(i) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2016(i)) is amended by adding at the end the 
     following:
       ``(12) Recovering electronic benefits.--
       ``(A) In general.--A State agency shall establish a 
     procedure for recovering electronic benefits from the account 
     of a household due to inactivity.
       ``(B) Benefit storage.--A State agency may store recovered 
     electronic benefits off-line in accordance with subparagraph 
     (D), if the household has not accessed the account after 6 
     months.
       ``(C) Benefit expunging.--A State agency shall expunge 
     benefits that have not been accessed by a household after a 
     period of 12 months.
       ``(D) Notice.--A State agency shall--
       ``(i) send notice to a household the benefits of which are 
     stored under subparagraph (B); and
       ``(ii) not later than 48 hours after request by the 
     household, make the stored benefits available to the 
     household.''.

     SEC. 4107. ELIGIBILITY FOR UNEMPLOYED ADULTS.

       (a) In General.--Section 6(o) of the Food and Nutrition Act 
     of 2007 (7 U.S.C. 2015(o)) is amended--
       (1) in paragraph (2), in the matter preceding subparagraph 
     (A) by striking ``3 months'' and inserting ``6 months''; and
       (2) in paragraph (5), by striking subparagraph (C).

[[Page 29275]]

       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on October 1, 2008.

     SEC. 4108. TRANSITIONAL BENEFITS OPTION.

       Section 11(s)(1) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2020(s)(1)) is amended--
       (1) by striking ``benefits to a household''; and inserting 
     ``benefits--
       ``(A) to a household'';
       (2) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(B) at the option of the State, to a household with 
     children that ceases to receive cash assistance under a 
     State-funded public assistance program.''.

     SEC. 4109. MINIMUM BENEFIT.

       (a) In General.--Section 8(a) of the Food and Nutrition Act 
     of 2007 (7 U.S.C. 2017(a)) is amended by striking ``$10 per 
     month'' and inserting ``10 percent of the thrifty food plan 
     for a household containing 1 member''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on October 1, 2008.

     SEC. 4110. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
                   ASSISTANCE PROGRAM.

       (a) In General.--Section 27(a) of the Food and Nutrition 
     Act of 2007 (7 U.S.C. 2036(a)) is amended--
       (1) by striking ``(a) Purchase of Commodities'' and all 
     that follows through ``through 2007'' and inserting the 
     following:
       ``(a) Purchase of Commodities.--
       ``(1) In general.--Subject to paragraph (2), for fiscal 
     year 2008 and each fiscal year thereafter''; and
       (2) by adding at the end the following:
       ``(2) Amounts.--In addition to the amounts made available 
     under paragraph (1), for fiscal year 2008 and each fiscal 
     year thereafter, from amounts made available to carry out 
     this Act, the Secretary shall use to carry out this 
     subsection $110,000,000.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on the date of enactment of this Act.

                 PART III--IMPROVING PROGRAM OPERATIONS

     SEC. 4201. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

       Section 6(k) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2015(k)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately;
       (2) by striking ``No member'' and inserting the following:
       ``(1) In general.--No member''; and
       (3) by adding at the end the following:
       ``(2) Procedures.--The Secretary shall issue consistent 
     procedures--
       ``(A) to define the terms `fleeing' and `actively seeking' 
     for purposes of this subsection; and
       ``(B) to ensure that State agencies use consistent 
     procedures that disqualify individuals whom law enforcement 
     authorities are actively seeking for the purpose of holding 
     criminal proceedings against the individual.''.

     SEC. 4202. ISSUANCE AND USE OF PROGRAM BENEFITS.

       (a) In General.--Section 7 of the Food and Nutrition Act of 
     2007 (7 U.S.C. 2016) is amended--
       (1) by striking the section designation and heading and all 
     that follows through ``subsection (j)) shall be'' and 
     inserting the following:

     ``SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.

       ``(a) In General.--Except as provided in subsection (i), 
     EBT cards shall be'';
       (2) in subsection (b)--
       (A) by striking ``(b) Coupons'' and inserting the 
     following:
       ``(b) Use.--Benefits''; and
       (B) by striking the second proviso;
       (3) in subsection (c)--
       (A) by striking ``(c) Coupons'' and inserting the 
     following:
       ``(c) Design.--
       ``(1) In general.--EBT cards'';
       (B) in the first sentence, by striking ``and define their 
     denomination''; and
       (C) by striking the second sentence and inserting the 
     following:
       ``(2) Prohibition.--The name of any public official shall 
     not appear on any EBT card.'';
       (4) by striking subsection (d);
       (5) in subsection (e)--
       (A) by striking ``coupons'' each place it appears and 
     inserting ``benefits''; and
       (B) by striking ``coupon issuers'' each place it appears 
     and inserting ``benefit issuers'';
       (6) in subsection (f)--
       (A) by striking ``coupons'' each place it appears and 
     inserting ``benefits'';
       (B) by striking ``coupon issuer'' and inserting ``benefit 
     issuers'';
       (C) by striking ``section 11(e)(20)'' and inserting 
     ``section 11(e)(19).''; and
       (D) by striking ``and allotments'';
       (7) by striking subsection (g) and inserting the following:
       ``(g) Alternative Benefit Delivery.--
       ``(1) In general.--If the Secretary determines, in 
     consultation with the Inspector General of the Department of 
     Agriculture, that it would improve the integrity of the food 
     and nutrition program, the Secretary shall require a State 
     agency to issue or deliver benefits using alternative 
     methods.
       ``(2) No imposition of costs.--The cost of documents or 
     systems that may be required by this subsection may not be 
     imposed upon a retail food store participating in the food 
     and nutrition program.
       ``(3) Devaluation and termination of issuance of paper 
     coupons.--
       ``(A) Coupon issuance.--Effective on the date of enactment 
     of the Food and Energy Security Act of 2007, no State shall 
     issue any coupon, stamp, certificate, or authorization card 
     to a household that receives food and nutrition benefits 
     under this Act.
       ``(B) Ebt cards.--Effective beginning on the date that is 1 
     year after the date of enactment of the Food and Energy 
     Security Act of 2007, only an EBT card issued under 
     subsection (i) shall be eligible for exchange at any retail 
     food store.
       ``(C) De-obligation of coupons.--Coupons not redeemed 
     during the 1-year period beginning on the date of enactment 
     of the Food and Energy Security Act of 2007 shall--
       ``(i) no longer be an obligation of the Federal Government; 
     and
       ``(ii) not be redeemable.'';
       (8) in subsection (h)(1), by striking ``coupons'' and 
     inserting ``benefits'';
       (9) in subsection (j)--
       (A) in paragraph (2)(A)(ii), by striking ``printing, 
     shipping, and redeeming coupons'' and inserting ``issuing and 
     redeeming benefits''; and
       (B) in paragraph (5), by striking ``coupon'' and inserting 
     ``benefit'';
       (10) in subsection (k)--
       (A) by striking ``coupons in the form of'' each place it 
     appears and inserting ``program benefits in the form of'';
       (B) by striking ``a coupon issued in the form of'' each 
     place it appears and inserting ``program benefits in the form 
     of''; and
       (C) in subparagraph (A), by striking ``subsection 
     (i)(11)(A)'' and inserting ``subsection (h)(11)(A)''; and
       (11) by redesignating subsections (e) through (k) as 
     subsections (d) through (j), respectively.
       (b) Conforming Amendments.--
       (1) Section 3 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2012) is amended--
       (A) in subsection (a), by striking ``coupons'' and 
     inserting ``benefits'';
       (B) by striking subsection (b) and inserting the following:
       ``(b) Benefit.--The term `benefit' means the value of food 
     and nutrition assistance provided to a household by means 
     of--
       ``(1) an electronic benefit transfer under section 7(i); or
       ``(2) other means of providing assistance, as determined by 
     the Secretary.'';
       (C) in subsection (c), in the first sentence, by striking 
     ``authorization cards'' and inserting ``benefits'';
       (D) in subsection (d), by striking ``or access device'' and 
     all that follows through the end of the subsection and 
     inserting a period;
       (E) in subsection (e)--
       (i) by striking ``(e) `Coupon issuer' means'' and inserting 
     the following:
       ``(e) Benefit Issuer.--The term `benefit issuer' means''; 
     and
       (ii) by striking ``coupons'' and inserting ``benefits'';
       (F) in subsection (g)(7), by striking ``subsection (r)'' 
     and inserting ``subsection (j)'';
       (G) in subsection (i)(5)--
       (i) in subparagraph (B), by striking ``subsection (r)'' and 
     inserting ``subsection (j)''; and
       (ii) in subparagraph (D), by striking ``coupons'' and 
     inserting ``benefits'';
       (H) in subsection (j), by striking ``(as that term is 
     defined in subsection (p))'';
       (I) in subsection (k)--
       (i) in paragraph (1)(A), by striking ``subsection (u)(1)'' 
     and inserting ``subsection (r)(1)'';
       (ii) in paragraph (2), by striking ``subsections (g)(3), 
     (4), (5), (7), (8), and (9) of this section'' and inserting 
     ``paragraphs (3), (4), (5), (7), (8), and (9) of subsection 
     (k)''; and
       (iii) in paragraph (3), by striking ``subsection (g)(6) of 
     this section'' and inserting ``subsection (k)(6)'';
       (J) in subsection (t), by inserting ``, including point of 
     sale devices,'' after ``other means of access'';
       (K) in subsection (u), by striking ``(as defined in 
     subsection (g))''; and
       (L) by adding at the end the following:
       ``(v) EBT Card.--The term `EBT card' means an electronic 
     benefit transfer card issued under section 7(i).''; and
       (M) by redesignating subsections (a) through (v) as 
     subsections (b), (d), (f), (g), (e), (h), (k), (l), (n), (o), 
     (p), (q), (s), (t), (u), (v), (c), (j), (m), (a), (r), and 
     (i), respectively, and moving so as to appear in alphabetical 
     order.
       (2) Section 4(a) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2013(a)) is amended--
       (A) by striking ``coupons'' each place it appears and 
     inserting ``benefits''; and
       (B) by striking ``Coupons issued'' and inserting ``benefits 
     issued''.
       (3) Section 5 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2014) is amended--
       (A) in subsection (a), by striking ``section 3(i)(4)'' and 
     inserting ``section 3(n)(4)'';
       (B) in subsection (h)(3)(B), in the second sentence, by 
     striking ``section 7(i)'' and inserting ``section 7(h)''; and
       (C) in subsection (i)(2)(E), by striking ``, as defined in 
     section 3(i) of this Act,''.
       (4) Section 6 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2015) is amended--
       (A) in subsection (b)(1)--

[[Page 29276]]

       (i) in subparagraph (B), by striking ``coupons or 
     authorization cards'' and inserting ``program benefits''; and
       (ii) by striking ``coupons'' each place it appears and 
     inserting ``benefits''; and
       (B) in subsection (d)(4)(L), by striking ``section 
     11(e)(22)'' and inserting ``section 11(e)(19)''.
       (5) Section 7(f) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2016(f)) is amended by striking ``including any 
     losses'' and all that follows through ``section 11(e)(20),''.
       (6) Section 8 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2017) is amended--
       (A) in subsection (b), by striking ``, whether through 
     coupons, access devices, or otherwise''; and
       (B) in subsections (e)(1) and (f), by striking ``section 
     3(i)(5)'' each place it appears and inserting ``section 
     3(n)(5)''.
       (7) Section 9 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2018) is amended--
       (A) by striking ``coupons'' each place it appears and 
     inserting ``benefits'';
       (B) in subsection (a)--
       (i) in paragraph (1), by striking ``coupon business'' and 
     inserting ``benefit transactions''; and
       (ii) by striking paragraph (3) and inserting the following:
       ``(3) Authorization periods.--The Secretary shall establish 
     specific time periods during which authorization to accept 
     and redeem benefits shall be valid under the food and 
     nutrition program.''; and
       (C) in subsection (g), by striking ``section 3(g)(9)'' and 
     inserting ``section 3(k)(9)''.
       (8) Section 10 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2019) is amended--
       (A) by striking the section designation and heading and all 
     that follows through ``Regulations'' and inserting the 
     following:

     ``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.

       ``Regulations'';
       (B) by striking ``section 3(k)(4) of this Act'' and 
     inserting ``section 3(p)(4)'';
       (C) by striking ``section 7(i)'' and inserting ``section 
     7(h)''; and
       (D) by striking ``coupons'' each place it appears and 
     inserting ``benefits''.
       (9) Section 11 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2020) is amended--
       (A) in subsection (d)--
       (i) by striking ``section 3(n)(1) of this Act'' each place 
     it appears and inserting ``section 3(t)(1)''; and
       (ii) by striking ``section 3(n)(2) of this Act'' each place 
     it appears and inserting ``section 3(t)(2)'';
       (B) in subsection (e)--
       (i) in paragraph (8)(E), by striking ``paragraph (16) or 
     (20)(B)'' and inserting ``paragraph (15) or (18)(B)'';
       (ii) by striking paragraphs (15) and (19);
       (iii) by redesignating paragraphs (16) through (18) and 
     (20) through (25) as paragraphs (15) through (17) and (18) 
     through (23), respectively; and
       (iv) in paragraph (17) (as so redesignated), by striking 
     ``(described in section 3(n)(1) of this Act)'' and inserting 
     ``described in section 3(t)(1)'';
       (C) in subsection (h), by striking ``coupon or coupons'' 
     and inserting ``benefits'';
       (D) by striking ``coupon'' each place it appears and 
     inserting ``benefit'';
       (E) by striking ``coupons'' each place it appears and 
     inserting ``benefits'';
       (F) in subsection (q), by striking ``section 11(e)(20)(B)'' 
     and inserting ``subsection (e)(18)(B)''
       (10) Section 13 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2022) is amended by striking ``coupons'' each place it 
     appears and inserting ``benefits''.
       (11) Section 15 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2024) is amended--
       (A) in subsection (a), by striking ``coupons'' and 
     inserting ``benefits'';
       (B) in subsection (b)(1)--
       (i) by striking ``coupons, authorization cards, or access 
     devices'' each place it appears and inserting ``benefits'';
       (ii) by striking ``coupons or authorization cards'' and 
     inserting ``benefits''; and
       (iii) by striking ``access device'' each place it appears 
     and inserting ``benefit'';
       (C) in subsection (c), by striking ``coupons'' each place 
     it appears and inserting ``benefits'';
       (D) in subsection (d), by striking ``Coupons'' and 
     inserting ``Benefits'';
       (E) by striking subsections (e) and (f);
       (F) by redesignating subsections (g) and (h) as subsections 
     (e) and (f), respectively; and
       (G) in subsection (e) (as so redesignated), by striking 
     ``coupon, authorization cards or access devices'' and 
     inserting ``benefits''.
       (12) Section 16(a) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2025(a)) is amended by striking ``coupons'' each place 
     it appears and inserting ``benefits''.
       (13) Section 17 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2026) is amended--
       (A) in subsection (a)(2), by striking ``coupon'' and 
     inserting ``benefit'';
       (B) in subsection (b)(1)--
       (i) in subparagraph (B)--

       (I) in clause (iv)--

       (aa) in subclause (I), inserting ``or otherwise providing 
     benefits in a form not restricted to the purchase of food'' 
     after ``of cash'';
       (bb) in subclause (III)(aa), by striking ``section 3(i)'' 
     and inserting ``section 3(n)''; and
       (cc) in subclause (VII), by striking ``section 7(j)'' and 
     inserting ``section 7(i)''; and

       (II) in clause (v)--

       (aa) by striking ``countersigned food coupons or similar''; 
     and
       (bb) by striking ``food coupons'' and inserting ``EBT 
     cards''; and
       (ii) in subparagraph (C)(i)(I), by striking ``coupons'' and 
     inserting ``EBT cards'';
       (C) in subsection (f), by striking ``section 7(g)(2)'' and 
     inserting ``section 7(f)(2)''; and
       (D) in subsection (j), by striking ``coupon'' and inserting 
     ``benefit''.
       (14) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 
     of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking 
     ``section 3(o)(4)'' and inserting ``section 3(u)(4)''.
       (15) Section 21 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2030) is amended--
       (A) in subsection (b)(2)(G)(i), by striking ``and (19)'' 
     and inserting ``(and (17)'';
       (B) in subsection (d)(3), by striking ``food coupons'' and 
     inserting ``EBT cards''; and
       (C) by striking ``coupons'' each place it appears and 
     inserting ``EBT cards''.
       (16) Section 22 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2031) is amended--
       (A) by striking ``food coupons'' each place it appears and 
     inserting ``benefits'';
       (B) by striking ``coupons'' each place it appears and 
     inserting ``benefits''; and
       (C) in subsection (g)(1)(A), by striking ``coupon'' and 
     inserting ``benefits''.
       (17) Section 26(f)(3) of the Food and Nutrition Act of 2007 
     (7 U.S.C. 2035(f)(3)) is amended--
       (A) in subparagraph (A), by striking ``subsections (a) 
     through (g)'' and inserting ``subsections (a) through (f)''; 
     and
       (B) in subparagraph (E), by striking ``(16), (18), (20), 
     (24), and (25)'' and inserting ``(15), (17), (18), (22), and 
     (23)''.
       (c) Conforming Cross-References.--
       (1) In general.--
       (A) Use of terms.--Each provision of law described in 
     subparagraph (B) is amended (as applicable)--
       (i) by striking ``coupons'' each place it appears and 
     inserting ``benefits'';
       (ii) by striking ``coupon'' each place it appears and 
     inserting ``benefit'';
       (iii) by striking ``food coupons'' each place it appears 
     and inserting ``benefits'';
       (iv) in each section heading, by striking ``FOOD COUPONS'' 
     each place it appears and inserting ``BENEFITS'';
       (v) by striking ``food stamp coupon'' each place it appears 
     and inserting ``benefit''; and
       (vi) by striking ``food stamps'' each place it appears and 
     inserting ``benefits''.
       (B) Provisions of law.--The provisions of law referred to 
     in subparagraph (A) are the following:
       (i) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note; 
     107 Stat. 2418).
       (ii) Section 1956(c)(7)(D) of title 18, United States Code.
       (iii) Titles II through XIX of the Social Security Act (42 
     U.S.C. 401 et seq.).
       (iv) Section 401(b)(3) of the Social Security Amendments of 
     1972 (42 U.S.C. 1382e note; Public Law 92-603).
       (v) The Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       (vi) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 
     8011(d)(2)(A)(i)(II)).
       (2) Definition references.--
       (A) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note; 
     107 Stat. 2418) is amended by striking ``section 3(k)(1)'' 
     and inserting ``section 3(p)(1)''.
       (B) Section 205 of the Food Stamp Program Improvements Act 
     of 1994 (7 U.S.C. 2012 note; Public Law 103-225) is amended 
     by striking ``section 3(k) of such Act (as amended by section 
     201)'' and inserting ``section 3(p) of that Act''.
       (C) Section 115 of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) is 
     amended--
       (i) by striking ``section 3(h)'' each place it appears and 
     inserting ``section 3(l)''; and
       (ii) in subsection (e)(2), by striking ``section 3(m)'' and 
     inserting ``section 3(s)''.
       (D) Section 402(a) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)) is 
     amended--
       (i) in paragraph (2)(F)(ii), by striking ``section 3(r)'' 
     and inserting ``section 3(j)''; and
       (ii) in paragraph (3)(B), by striking ``section 3(h)'' and 
     inserting ``section 3(l)''.
       (E) Section 3803(c)(2)(C)(vii) of title 31, United States 
     Code, is amended by striking ``section 3(h)'' and inserting 
     ``section 3(l)''.
       (F) Section 303(d)(4) of the Social Security Act (42 U.S.C. 
     503(d)(4)) is amended by striking ``section 3(n)(1)'' and 
     inserting ``section 3(t)(1)''.
       (G) Section 404 of the Social Security Act (42 U.S.C. 604) 
     is amended by striking ``section 3(h)'' each place it appears 
     and inserting ``section 3(l)''.
       (H) Section 531 of the Social Security Act (42 U.S.C. 654) 
     is amended by striking ``section 3(h)'' each place it appears 
     and inserting ``section 3(l)''.
       (I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 
     8011(d)(2)(A)(i)(II)) is amended by striking ``(as defined in 
     section 3(e) of such Act)''.
       (d) References.--Any reference in any Federal, State, 
     tribal, or local law (including regulations) to a ``coupon'', 
     ``authorization

[[Page 29277]]

     card'', or other access device provided under the Food and 
     Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) shall be 
     considered to be a reference to a ``benefit'' provided under 
     that Act.

     SEC. 4203. CLARIFICATION OF SPLIT ISSUANCE.

       Section 7(h) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2016(h)) is amended by striking paragraph (2) and 
     inserting the following:
       ``(2) Requirements.--
       ``(A) In general.--Any procedure established under 
     paragraph (1) shall--
       ``(i) not reduce the allotment of any household for any 
     period; and
       ``(ii) ensure that no household experiences an interval 
     between issuances of more than 40 days.
       ``(B) Multiple issuances.--The procedure may include 
     issuing benefits to a household in more than 1 issuance only 
     when a benefit correction is necessary.''.

     SEC. 4204. STATE OPTION FOR TELEPHONIC SIGNATURE.

       Section 11(e)(2)(C) of the Food and Nutrition Act of 2007 
     (7 U.S.C. 2020(e)(2)(C)) is amended--
       (1) by striking ``Nothing in this Act'' and inserting the 
     following:
       ``(C) Electronic and automated systems.--
       ``(i) In general.--Nothing in this Act''; and
       (2) by adding at the end the following:
       ``(ii) State option for telephonic signature.--A State 
     agency may establish a system by which an applicant household 
     may sign an application through a recorded verbal assent over 
     the telephone.
       ``(iii) Requirements.--A system established under clause 
     (ii) shall--

       ``(I) record for future reference the verbal assent of the 
     household member and the information to which assent was 
     given;
       ``(II) include effective safeguards against impersonation, 
     identity theft, and invasions of privacy;
       ``(III) not deny or interfere with the right of the 
     household to apply in writing;
       ``(IV) promptly provide to the household member a written 
     copy of the completed application, with instructions for a 
     simple procedure for correcting any errors or omissions;
       ``(V) comply with paragraph (1)(B);
       ``(VI) satisfy all requirements for a signature on an 
     application under this Act and other laws applicable to the 
     food and nutrition program, with the date on which the 
     household member provides verbal assent considered as the 
     date of application for all purposes; and
       ``(VII) comply with such other standards as the Secretary 
     may establish.''.

     SEC. 4205. PRIVACY PROTECTIONS.

       Section 11(e)(8) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2020(e)(8)) is amended--
       (1) in the matter preceding subparagraph (A)--
       (A) by striking ``limit'' and inserting ``prohibit''; and
       (B) by striking ``to persons'' and all that follows through 
     ``State programs'';
       (2) by redesignating subparagraphs (A) through (E) as 
     subparagraphs (B) through (F), respectively;
       (3) by inserting before subparagraph (B) (as so 
     redesignated) the following:
       ``(A) the safeguards shall permit--
       ``(i) the disclosure of such information to persons 
     directly connected with the administration or enforcement of 
     the provisions of this Act, regulations issued pursuant to 
     this Act, Federal assistance programs, or federally-assisted 
     State programs; and
       ``(ii) the subsequent use of the information by persons 
     described in clause (i) only for such administration or 
     enforcement;''; and
       (4) in subparagraph (F) (as so redesignated) by inserting 
     ``or subsection (u)'' before the semicolon at the end.

     SEC. 4206. STUDY ON COMPARABLE ACCESS TO FOOD AND NUTRITION 
                   ASSISTANCE FOR PUERTO RICO.

       (a) In General.--The Secretary shall carry out a study of 
     the feasibility and effects of including the Commonwealth of 
     Puerto Rico in the definition of the term ``State'' under 
     section 3 of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2012), in lieu of providing block grants under section 19 of 
     that Act (7 U.S.C. 2028).
       (b) Inclusions.--The study shall include--
       (1) an assessment of the administrative, financial 
     management, and other changes that would be necessary for the 
     Commonwealth to establish a comparable food and nutrition 
     program, including compliance with appropriate program rules 
     under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et 
     seq,), such as--
       (A) benefit levels under section 3(o) of that Act (7 U.S.C. 
     3012(o));
       (B) income eligibility standards under sections 5(c) and 6 
     of that Act (7 U.S.C. 2014(c), 2015); and
       (C) deduction levels under section 5(e) of that Act (7 
     U.S.C. 2014(e));
       (2) an estimate of the impact on Federal and Commonwealth 
     benefit and administrative costs;
       (3) an assessment of the impact of the program on low-
     income Puerto Ricans, as compared to the program under 
     section 19 of that Act (7 U.S.C. 2028);
       (4) such other matters as the Secretary considers to be 
     appropriate.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes the results of the study 
     conducted under this section.
       (d) Funding.--
       (1) In general.--On October 1, 2008, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out this 
     section $1,000,000, to remain available until expended.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation. 

     SEC. 4207. CIVIL RIGHTS COMPLIANCE.

       Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2020) is amended by striking subsection (c) and inserting the 
     following:
       ``(c) Civil Rights Compliance.--
       ``(1) In general.--In the certification of applicant 
     households for the food and nutrition program, there shall be 
     no discrimination by reason of race, sex, religious creed, 
     national origin, or political affiliation.
       ``(2) Relation to other laws.--The administration of the 
     program by a State agency shall be consistent with the rights 
     of households under the following laws (including 
     implementing regulations):
       ``(A) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
     seq.).
       ``(B) Section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 794).
       ``(C) The Americans with Disabilities Act of 1990 (42 
     U.S.C. 12101 et seq.).
       ``(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.).''.

     SEC. 4208. EMPLOYMENT, TRAINING, AND JOB RETENTION.

       Section 6(d)(4) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2015(d)(4)) is amended--
       (1) in subparagraph (B)--
       (A) by redesignating clause (vii) as clause (viii); and
       (B) by inserting after clause (vi) the following:
       ``(vii) Programs intended to ensure job retention by 
     providing job retention services, if the job retention 
     services are provided for a period of not more than 90 days 
     after an individual who received employment and training 
     services under this paragraph gains employment.''; and
       (2) in subparagraph (F), by adding at the end the 
     following:
       ``(iii) Any individual voluntarily electing to participate 
     in a program under this paragraph shall not be subject to the 
     limitations described in clauses (i) and (ii).''.

     SEC. 4209. CODIFICATION OF ACCESS RULES.

       Section 11(e)(1)) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2020(e)(1)) is amended--
       (1) by striking ``shall (A) at'' and inserting ``shall--
       ``(A) at''; and
       (2) by striking ``and (B) use'' and inserting ``and
       ``(B) comply with regulations of the Secretary requiring 
     the use of''.

     SEC. 4210. EXPANDING THE USE OF EBT CARDS AT FARMERS' 
                   MARKETS.

       (a) In General.--For each of fiscal years 2008 through 
     2010, the Secretary shall make grants to pay 100 percent of 
     the costs of eligible entities approved by the Secretary to 
     carry out projects to expand the number of farmers' markets 
     that accept EBT cards by--
       (1) providing equipment and training necessary for farmers' 
     markets to accept EBT cards;
       (2) educating and providing technical assistance to farmers 
     and farmers' market operators about the process and benefits 
     of accepting EBT cards; or
       (3) other activities considered to be appropriate by the 
     Secretary.
       (b) Limitation.--A grant under this section--
       (1) may not be made for the ongoing cost of carrying out 
     any project; and
       (2) shall only be provided to eligible entities that 
     demonstrate a plan to continue to provide EBT card access at 
     1 or more farmers' markets following the receipt of the 
     grant.
       (c) Eligible Entities.--To be eligible to receive a grant 
     under this section, an entity shall be--
       (1) a State agency administering the food and nutrition 
     program established under the Food and Nutrition Act of 2007 
     (7 U.S.C. 2011 et seq.);
       (2) a State agency or local government; or
       (3) a private nonprofit entity that coordinates farmers' 
     markets in a State in cooperation with a State or local 
     government.
       (d) Selection of Eligible Entities.--The Secretary--
       (1) shall develop criteria to select eligible entities to 
     receive grants under this section; and
       (2) may give preference to any eligible entity that 
     consists of a partnership between a government entity and a 
     nongovernmental entity.
       (e) Mandatory Funding.--
       (1) In general.--On October 1, 2007, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary of Agriculture to 
     carry out this section $5,000,000, to remain available until 
     expended.

[[Page 29278]]

       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

     SEC. 4211. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

       Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2020) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) State Responsibility.--
       ``(1) In general.--The State agency of each participating 
     State shall have responsibility for certifying applicant 
     households and issuing EBT cards.
       ``(2) Local administration.--The responsibility of the 
     agency of the State government shall not be affected by 
     whether the program is operated on a State-administered or 
     county-administered basis, as provided under section 3(t)(1).
       ``(3) Records.--
       ``(A) In general.--Each State agency shall keep such 
     records as may be necessary to determine whether the program 
     is being conducted in compliance with this Act (including 
     regulations issued under this Act).
       ``(B) Inspection and audit.--Records described in 
     subparagraph (A) shall--
       ``(i) be available for inspection and audit at any 
     reasonable time;
       ``(ii) subject to subsection (e)(8), be available for 
     review in any action filed by a household to enforce any 
     provision of this Act (including regulations issued under 
     this Act); and
       ``(iii) be preserved for such period of not less than 3 
     years as may be specified in regulations.
       ``(4) Review of major changes in program design.--
       ``(A) In general.--The Secretary shall develop standards 
     for identifying major changes in the operations of a State 
     agency, including--
       ``(i) large or substantially-increased numbers of low-
     income households that do not live in reasonable proximity to 
     an office performing the major functions described in 
     subsection (e);
       ``(ii) substantial increases in reliance on automated 
     systems for the performance of responsibilities previously 
     performed by personnel described in subsection (e)(6)(B);
       ``(iii) changes that potentially increase the difficulty of 
     reporting information under subsection (e) or section 6(c); 
     and
       ``(iv) changes that may disproportionately increase the 
     burdens on any of the types of households described in 
     subsection (e)(2)(A).
       ``(B) Notification.--If a State agency implements a major 
     change in operations, the State agency shall--
       ``(i) notify the Secretary; and
       ``(ii) collect such information as the Secretary shall 
     require to identify and correct any adverse effects on 
     program integrity or access, including access by any of the 
     types of households described in subsection (e)(2)(A).''.

     SEC. 4212. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

       Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2025) is amended by striking subsection (g) and inserting the 
     following:
       ``(g) Cost Sharing for Computerization.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the Secretary is authorized to pay to each State agency 
     the amount provided under subsection (a)(6) for the costs 
     incurred by the State agency in the planning, design, 
     development, or installation of 1 or more automatic data 
     processing and information retrieval systems that the 
     Secretary determines--
       ``(A) would assist in meeting the requirements of this Act;
       ``(B) meet such conditions as the Secretary prescribes;
       ``(C) are likely to provide more efficient and effective 
     administration of the food and nutrition program;
       ``(D) would be compatible with other systems used in the 
     administration of State programs, including the program 
     funded under part A of title IV of the Social Security Act 
     (42 U.S.C. 601 et seq.);
       ``(E) would be tested adequately before and after 
     implementation, including through pilot projects in limited 
     areas for major systems changes as determined under rules 
     promulgated by the Secretary, data from which shall be 
     thoroughly evaluated before the Secretary approves the system 
     to be implemented more broadly; and
       ``(F) would be operated in accordance with an adequate plan 
     for--
       ``(i) continuous updating to reflect changed policy and 
     circumstances; and
       ``(ii) testing the effect of the system on access for 
     eligible households and on payment accuracy.
       ``(2) Limitation.--The Secretary shall not make payments to 
     a State agency under paragraph (1) to the extent that the 
     State agency--
       ``(A) is reimbursed for the costs under any other Federal 
     program; or
       ``(B) uses the systems for purposes not connected with the 
     food and nutrition program.''.

     SEC. 4213. NUTRITION EDUCATION.

       (a) Authority to Provide Nutrition Education.--Section 4(a) 
     of the Food and Nutrition Act of 2007 (7 U.S.C. 2013(a)) is 
     amended in the first sentence by inserting ``and through an 
     approved State plan, nutrition education'' after ``an 
     allotment''.
       (b) Implementation.--Section 11 of the Food and Nutrition 
     Act of 2007 (7 U.S.C. 2020(f) is amended by striking 
     subsection (f) and inserting the following:
       ``(f) Nutrition Education.--
       ``(1) In general.--State agencies may implement a nutrition 
     education program for individuals eligible for program 
     benefits that promotes healthy food choices consistent with 
     the most recent Dietary Guidelines for Americans published 
     under section 301 of the National Nutrition Monitoring and 
     Related Research Act of 1990 (7 U.S.C. 5341).
       ``(2) Delivery of nutrition education.--State agencies may 
     deliver nutrition education directly to eligible persons or 
     through agreements with the Cooperative State Research, 
     Education, and Extension Service, including through the 
     expanded food and nutrition education under section 3(d) of 
     the Act of May 8, 1914 (7 U.S.C. 343(d)), and other State and 
     community health and nutrition providers and organizations.
       ``(3) Nutrition education state plans.--
       ``(A) In general.--A State agency that elects to provide 
     nutrition education under this subsection shall submit a 
     nutrition education State plan to the Secretary for approval.
       ``(B) Requirements.--The plan shall--
       ``(i) identify the uses of the funding for local projects; 
     and
       ``(ii) conform to standards established by the Secretary 
     through regulations or guidance.
       ``(C) Reimbursement.--State costs for providing nutrition 
     education under this subsection shall be reimbursed pursuant 
     to section 16(a).
       ``(4) Notification.--To the maximum extent practicable, 
     State agencies shall notify applicants, participants, and 
     eligible program participants of the availability of 
     nutrition education under this subsection.''.

                  PART IV--IMPROVING PROGRAM INTEGRITY

     SEC. 4301. MAJOR SYSTEMS FAILURES.

       (a) In General.--Section 13(b) of the Food and Nutrition 
     Act of 2007 (7 U.S.C. 2022(b)) is amended by adding at the 
     end the following:
       ``(5) Over issuances caused by systemic state errors.--
       ``(A) In general.--If the Secretary determines that a State 
     agency over issued benefits to a substantial number of 
     households in a fiscal year as a result of a major systemic 
     error by the State agency, as determined by the Secretary, 
     the Secretary may prohibit the State agency from collecting 
     these over issuances from some or all households.
       ``(B) Procedures.--
       ``(i) Information reporting by states.--Every State agency 
     shall provide to the Secretary all information requested by 
     the Secretary concerning the issuance of benefits to 
     households by the State agency in the applicable fiscal year.
       ``(ii) Final determination.--After reviewing relevant 
     information provided by a State agency, the Secretary shall 
     make a final determination--

       ``(I) whether the State agency over issued benefits to a 
     substantial number of households as a result of a systemic 
     error in the applicable fiscal year; and
       ``(II) as to the amount of the over issuance in the 
     applicable fiscal year for which the State agency is liable.

       ``(iii) Establishing a claim.--Upon determining under 
     clause (ii) that a State agency has over issued benefits to 
     households due to a major systemic error determined under 
     subparagraph (A), the Secretary shall establish a claim 
     against the State agency equal to the value of the over 
     issuance caused by the systemic error.
       ``(iv) Administrative and judicial review.--Administrative 
     and judicial review, as provided in section 14, shall apply 
     to the final determinations by the Secretary under clause 
     (ii).
       ``(v) Remission to the secretary.--

       ``(I) Determination not appealed.--If the determination of 
     the Secretary under clause (ii) is not appealed, the State 
     agency shall, as soon as practicable, remit to the Secretary 
     the dollar amount specified in the claim under clause (iii).
       ``(II) Determination appealed.--If the determination of the 
     Secretary under clause (ii) is appealed, upon completion of 
     administrative and judicial review under clause (iv), and a 
     finding of liability on the part of the State, the appealing 
     State agency shall, as soon as practicable, remit to the 
     Secretary a dollar amount subject to the finding of the 
     administrative and judicial review.

       ``(vi) Alternative method of collection.--

       ``(I) In general.--If a State agency fails to make a 
     payment under clause (v) within a reasonable period of time, 
     as determined by the Secretary, the Secretary may reduce any 
     amount due to the State agency under any other provision of 
     this Act by the amount due.
       ``(II) Accrual of interest.--During the period of time 
     determined by the Secretary to be reasonable under subclause 
     (I), interest in the amount owed shall not accrue.

       ``(vii) Limitation.--Any liability amount established under 
     section 16(c)(1)(C) shall be reduced by the amount of the 
     claim established under this subparagraph.''.

[[Page 29279]]

       (b) Conforming Amendment.--Section 14(a)(6) of the Food and 
     Nutrition Act of 2007 (7 U.S.C. 2023(a)(6)) is amended by 
     striking ``pursuant to section'' and inserting ``pursuant to 
     section 13(b)(5) and''.

     SEC. 4302. PERFORMANCE STANDARDS FOR BIOMETRIC IDENTIFICATION 
                   TECHNOLOGY.

       Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2025) is amended by adding at the end the following:
       ``(l) Performance Standards for Biometric Identification 
     Technology.--
       ``(1) Definition of biometric identification technology.--
     In this subsection, the term `biometric identification 
     technology' means a technology that provides an automated 
     method to identify an individual based on physical 
     characteristics, such as fingerprints or retinal scans.
       ``(2) Administrative funds.--The Secretary may not pay a 
     State agency any amount for administrative costs for the 
     development, purchase, administration, or other costs 
     associated with the use of biometric identification 
     technology unless the State agency has, under such terms and 
     conditions as the Secretary considers appropriate--
       ``(A) provided to the Secretary an analysis of the cost-
     effectiveness of the use of the proposed biometric 
     identification technology to detect fraud in carrying out the 
     food and nutrition program;
       ``(B) demonstrated to the Secretary that the analysis is--
       ``(i) statistically valid; and
       ``(ii) based on appropriate and valid assumptions for the 
     households served by the food and nutrition program;
       ``(C) demonstrated to the Secretary that--
       ``(i) the proposed biometric identification technology is 
     cost-effective in reducing fraud; and
       ``(ii) there are no other technologies or fraud-detection 
     methods that are at least as cost-effective in carrying out 
     the purposes of the proposed biometric identification system; 
     and
       ``(D) demonstrated to the Secretary that no information 
     produced by or used in the biometric information technology 
     system will be made available or used for any purpose other 
     than a purpose allowed under section 11(e)(8).
       ``(3) Standards.--The Secretary shall establish uniform 
     standards for the evaluation of cost-effectiveness analyses 
     submitted to the Secretary under paragraph (2).''.

     SEC. 4303. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL 
                   FOOD STORES AND WHOLESALE FOOD CONCERNS.

       Section 12 of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2021) is amended--
       (1) by striking the section designation and heading and all 
     that follows through the end of subsection (a) and inserting 
     the following:

     ``SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL 
                   FOOD STORES AND WHOLESALE FOOD CONCERNS.

       ``(a) Disqualification.--
       ``(1) In general.--An approved retail food store or 
     wholesale food concern that violates a provision of this Act 
     or a regulation under this Act may be--
       ``(A) disqualified for a specified period of time from 
     further participation in the food and nutrition program; or
       ``(B) assessed a civil penalty of up to $100,000 for each 
     violation.
       ``(2) Regulations.--Regulations promulgated under this Act 
     shall provide criteria for the finding of a violation of, the 
     suspension or disqualification of, and the assessment of a 
     civil penalty against, a retail food store or wholesale food 
     concern on the basis of evidence that may include facts 
     established through on-site investigations, inconsistent 
     redemption data, or evidence obtained through a transaction 
     report under an electronic benefit transfer system.'';
       (2) in subsection (b)--
       (A) by striking ``(b) Disqualification'' and inserting the 
     following:
       ``(b) Period of Disqualification.--Subject to subsection 
     (c), a disqualification'';
       (B) in paragraph (1), by striking ``of no less than six 
     months nor more than five years'' and inserting ``not to 
     exceed 5 years'';
       (C) in paragraph (2), by striking ``of no less than twelve 
     months nor more than ten years'' and inserting ``not to 
     exceed 10 years'';
       (D) in paragraph (3)(B)--
       (i) by inserting ``or a finding of the unauthorized 
     redemption, use, transfer, acquisition, alteration, or 
     possession of EBT cards'' after ``concern'' the first place 
     it appears; and
       (ii) by striking ``civil money penalties'' and inserting 
     ``civil penalties''; and
       (E) by striking ``civil money penalty'' each place it 
     appears and inserting ``civil penalty'';
       (3) in subsection (c)--
       (A) by striking ``(c) The action'' and inserting the 
     following:
       ``(c) Civil Penalty and Review of Disqualification and 
     Penalty Determinations.--
       ``(1) Civil penalty.--In addition to a disqualification 
     under this section, the Secretary may assess a civil penalty 
     in an amount not to exceed $100,000 for each violation.
       ``(2) Review.--The action''; and
       (B) in paragraph (2) (as designated by subparagraph (A)), 
     by striking ``civil money penalty'' and inserting ``civil 
     penalty'';
       (4) in subsection (d)--
       (A) by striking ``(d)'' and all that follows through ``. 
     The Secretary shall'' and inserting the following:
       ``(d) Conditions of Authorization.--
       ``(1) In general.--As a condition of authorization to 
     accept and redeem benefits, the Secretary may require a 
     retail food store or wholesale food concern that, pursuant to 
     subsection (a), has been disqualified for more than 180 days, 
     or has been subjected to a civil penalty in lieu of a 
     disqualification period of more than 180 days, to furnish a 
     collateral bond or irrevocable letter of credit for a period 
     of not more than 5 years to cover the value of benefits that 
     the store or concern may in the future accept and redeem in 
     violation of this Act.
       ``(2) Collateral.--The Secretary also may require a retail 
     food store or wholesale food concern that has been sanctioned 
     for a violation and incurs a subsequent sanction regardless 
     of the length of the disqualification period to submit a 
     collateral bond or irrevocable letter of credit.
       ``(3) Bond requirements.--The Secretary shall'';
       (B) by striking ``If the Secretary finds'' and inserting 
     the following
       ``(4) Forfeiture.--If the Secretary finds''; and
       (C) by striking ``Such store or concern'' and inserting the 
     following:
       ``(5) Hearing.--A store or concern described in paragraph 
     (4)'';
       (5) in subsection (e), by striking ``civil money penalty'' 
     each place it appears and inserting ``civil penalty''; and
       (6) by adding at the end the following:
       ``(h) Flagrant Violations.--
       ``(1) In general.--The Secretary, in consultation with the 
     Inspector General of the Department of Agriculture, shall 
     establish procedures under which the processing of program 
     benefit redemptions for a retail food store or wholesale food 
     concern may be immediately suspended pending administrative 
     action to disqualify the retail food store or wholesale food 
     concern.
       ``(2) Requirements.--Under the procedures described in 
     paragraph (1), if the Secretary, in consultation with the 
     Inspector General, determines that a retail food store or 
     wholesale food concern is engaged in flagrant violations of 
     this Act (including regulations promulgated under this Act), 
     unsettled program benefits that have been redeemed by the 
     retail food store or wholesale food concern--
       ``(A) may be suspended; and
       ``(B)(i) if the program disqualification is upheld, may be 
     subject to forfeiture pursuant to subsection (g); or
       ``(ii) if the program disqualification is not upheld, shall 
     be released to the retail food store or wholesale food 
     concern.
       ``(3) No liability for interest.--The Secretary shall not 
     be liable for the value of any interest on funds suspended 
     under this subsection.''.

     SEC. 4304. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

       (a) In General.--Section 16(h)(1)(A) of the Food and 
     Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)(A)) is amended in 
     subparagraph (A), by striking ``to remain available until 
     expended'' and inserting ``to remain available for 2 fiscal 
     years''.
       (b) Rescission of Funds.--Notwithstanding any other 
     provision of law, funds provided under section 16(h)(1)(A) of 
     the Food and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)(A)) 
     for any fiscal year before the fiscal year beginning October 
     1, 2007, shall be rescinded on the date of enactment of this 
     Act, unless obligated by a State agency before that date.

     SEC. 4305. ELIGIBILITY DISQUALIFICATION.

       Section 6 of the Food and Nutrition Assistance Act of 2007 
     (7 U.S.C. 2015) is amended by adding at the end the 
     following:
       ``(p) Disqualification for Obtaining Cash by Destroying 
     Food and Collecting Deposits.--Any person who has been found 
     by a State or Federal court or administrative agency or in a 
     hearing under subsection (b) to have intentionally obtained 
     cash by purchasing products with food and nutrition benefits 
     that have containers that require return deposits, discarding 
     the product, and returning the container for the deposit 
     amount shall be ineligible for benefits under this Act for 
     such period of time as the Secretary shall prescribe by 
     regulation.
       ``(q) Disqualification for Sale of Food Purchased With Food 
     and Nutrition Benefits.--Subject to any requirements 
     established by the Secretary, any person who has been found 
     by a State or Federal court or administrative agency or in a 
     hearing under subsection (b) to have intentionally sold any 
     food that was purchased using food and nutrition benefits 
     shall be ineligible for benefits under this Act for such 
     period of time as the Secretary shall prescribe by 
     regulation.''.

                         PART V--MISCELLANEOUS

     SEC. 4401. DEFINITION OF STAPLE FOODS.

       Subsection (r) of section 3 of the Food and Nutrition Act 
     of 2007 (7 U.S.C. 2012) (as redesignated by section 
     4202(b)(1)(M)) is amended--

[[Page 29280]]

       (1) by striking ``(r)(1) Except'' and inserting the 
     following:
       ``(r) Staple Foods.--
       ``(1) In general.--Except''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Exceptions.--The term `staple foods' does not include 
     accessory food items, such as coffee, tea, cocoa, carbonate 
     and uncarbonated drinks, candy, condiments, and spices, or 
     dietary supplements.
       ``(3) Depth of stock.--The Secretary may issue regulations 
     to define depth of stock to ensure that stocks of staple 
     foods are available on a continuous basis.''.

     SEC. 4402. ACCESSORY FOOD ITEMS.

       Section 9(a) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2018(a)) is amended by adding at the end the 
     following:
       ``(4) Accessory food items.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this paragraph, the Secretary shall promulgate 
     proposed regulations providing that a dietary supplement 
     shall not be considered an accessory food item unless the 
     dietary supplement--
       ``(i) contains folic acid or calcium in accordance with 
     sections 101.72 and 101.79 of title 21, Code of Federal 
     Regulations (as in effect on the date of enactment of this 
     paragraph); and
       ``(ii) is a multivitamin-mineral supplement that--

       ``(I) provides at least \2/3\ of the essential vitamins and 
     minerals at 100 percent of the daily value levels, as 
     determined by the Food and Drug Administration; and
       ``(II) does not exceed the daily upper limit for those 
     nutrients for which an established daily upper limit has been 
     determined by the Institute of Medicine of the National 
     Academy of Sciences.

       ``(B) Final regulations.--Not later than 2 years after the 
     date of enactment of this paragraph, the Secretary shall 
     promulgate final regulations in accordance with subparagraph 
     (A).
       ``(C) Purchase of dietary supplements.--No dietary 
     supplements may be purchased using benefits under this Act 
     until the earlier of--
       ``(i) the date on which the Secretary promulgates final 
     regulations under subparagraph (B); or
       ``(ii) the date on which the Secretary certifies a 
     voluntary system of labeling for the ready and accurate 
     identification of eligible dietary supplements, as developed 
     by the Secretary in consultation with the dietary supplement 
     industry and dietary supplement retailers.''.

     SEC. 4403. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION 
                   PROMOTION IN THE FOOD AND NUTRITION PROGRAM.

       Section 17 of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2026) is amended by adding at the end the following:
       ``(k) Pilot Projects to Evaluate Health and Nutrition 
     Promotion in the Food and Nutrition Program.--
       ``(1) In general.--The Secretary shall carry out, under 
     such terms and conditions as the Secretary considers to be 
     appropriate, pilot projects to develop and test methods--
       ``(A) of using the food and nutrition program to improve 
     the dietary and health status of households participating in 
     the food and nutrition program; and
       ``(B) to reduce overweight, obesity, and associated co-
     morbidities in the United States.
       ``(2) Projects.--Pilot projects carried out under paragraph 
     (1) may include projects to determine whether healthier food 
     purchases by and healthier diets among households 
     participating in the food and nutrition program result from 
     projects that--
       ``(A) increase the food and nutrition assistance purchasing 
     power of the participating households by providing increased 
     food and nutrition assistance benefit allotments to the 
     participating households;
       ``(B) increase access to farmers markets by participating 
     households through the electronic redemption of food and 
     nutrition assistance at the farmers markets;
       ``(C) provide incentives to authorized food and nutrition 
     program vendors to increase the availability of healthy foods 
     to participating households;
       ``(D) subject authorized food and nutrition program vendors 
     to stricter vendor requirements with respect to carrying and 
     stocking healthy foods;
       ``(E) provide incentives at the point of purchase to 
     encourage participating households to purchase fruits, 
     vegetables, or other healthy foods; or
       ``(F) provide to participating households integrated 
     communication and education programs, including the provision 
     of funding for a portion of a school based nutrition 
     coordinator to implement a broad nutrition action plan and 
     parent nutrition education programs in elementary schools, 
     separately or in combination with pilot projects carried out 
     under subparagraphs (A) through (E).
       ``(3) Duration.--A pilot project carried out under this 
     subsection shall have a term of not more than 5 years.
       ``(4) Evaluations and reports.--
       ``(A) Evaluations.--
       ``(i) Independent evaluation.--

       ``(I) In general.--The Secretary shall provide for an 
     independent evaluation of each pilot project under this 
     subsection that measures the impact of the pilot program on 
     health and nutrition as described in paragraph (1).
       ``(II) Requirement.--The independent evaluation under 
     subclause (I) shall use rigorous methodologies, particularly 
     random assignment or other methods that are capable of 
     producing scientifically-valid information regarding which 
     activities are effective.

       ``(ii) Costs.--The Secretary may use funds provided to 
     carry out this section to pay costs associated with 
     monitoring and evaluating each pilot project.
       ``(B) Reports.--Not later than 90 days after the last day 
     of fiscal year 2008 and each fiscal year thereafter until the 
     completion of the last evaluation under subparagraph (A), the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that includes 
     a description of--
       ``(i) the status of each pilot project;
       ``(ii) the results of the evaluation completed during the 
     previous fiscal year; and
       ``(iii) to the maximum extent practicable--

       ``(I) the impact of the pilot project on appropriate 
     health, nutrition, and associated behavioral outcomes among 
     households participating in the pilot project;
       ``(II) baseline information relevant to the stated goals 
     and desired outcomes of the pilot project; and
       ``(III) equivalent information about similar or identical 
     measures among control or comparison groups that did not 
     participate in the pilot project.

       ``(5) Funding.--
       ``(A) In general.--Out of any funds made available under 
     section 18, the Secretary shall use $50,000,000 to carry out 
     this section, to remain available until expended.
       ``(B) Use of funds.--Of funds made available under 
     subparagraph (A), the Secretary shall use not more than 
     $25,000,000 to carry out a pilot project described in 
     paragraph (2)(E).''.

     SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY 
                   LELAND INTERNATIONAL HUNGER FELLOWS.

       (a) In General.--The Food and Nutrition Act of 2007 (7 
     U.S.C. 2011 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 28. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY 
                   LELAND INTERNATIONAL HUNGER FELLOWS.

       ``(a) Short Title.--This section may be cited as the `Bill 
     Emerson National Hunger Fellows and Mickey Leland 
     International Hunger Fellows Program Act of 2007'.
       ``(b) Findings.--Congress finds that--
       ``(1) there is a critical need for compassionate 
     individuals who are committed to assisting people who suffer 
     from hunger to initiate and administer solutions to the 
     hunger problem;
       ``(2) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated--
       ``(A) his commitment to solving the problem of hunger in a 
     bipartisan manner;
       ``(B) his commitment to public service; and
       ``(C) his great affection for the institution and ideals of 
     the United States Congress;
       ``(3) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, 
     demonstrated--
       ``(A) his compassion for those in need;
       ``(B) his high regard for public service; and
       ``(C) his lively exercise of political talents;
       ``(4) the special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all;
       ``(5) these 2 outstanding leaders maintained a special bond 
     of friendship regardless of political affiliation and worked 
     together to encourage future leaders to recognize and provide 
     service to others; and
       ``(6) it is especially appropriate to honor the memory of 
     Mr. Emerson and Mr. Leland by creating a fellowship program 
     to develop and train the future leaders of the United States 
     to pursue careers in humanitarian service.
       ``(c) Definitions.--In this subsection:
       ``(1) Director.--The term `Director' means the head of the 
     Congressional Hunger Center.
       ``(2) Fellow.--The term `fellow' means--
       ``(A) a Bill Emerson Hunger Fellow; or
       ``(B) Mickey Leland Hunger Fellow
       ``(3) Fellowship programs.--The term `Fellowship Programs' 
     means the Bill Emerson National Hunger Fellowship Program and 
     the Mickey Leland International Hunger Fellowship Program 
     established under subsection (d)(1).
       ``(d) Fellowship Programs.--
       ``(1) In general.--There is established the Bill Emerson 
     National Hunger Fellowship Program and the Mickey Leland 
     International Hunger Fellowship Program.
       ``(2) Purposes.--
       ``(A) In general.--The purposes of the Fellowship Programs 
     are--
       ``(i) to encourage future leaders of the United States--

       ``(I) to pursue careers in humanitarian and public service;
       ``(II) to recognize the needs of low-income people and 
     hungry people;
       ``(III) to provide assistance to people in need; and
       ``(IV) to seek public policy solutions to the challenges of 
     hunger and poverty;

[[Page 29281]]

       ``(ii) to provide training and development opportunities 
     for such leaders through placement in programs operated by 
     appropriate organizations or entities; and
       ``(iii) to increase awareness of the importance of public 
     service.
       ``(B) Bill emerson hunger fellowship program.--The purpose 
     of the Bill Emerson Hunger Fellowship Program is to address 
     hunger and poverty in the United States.
       ``(C) Mickey leland hunger fellowship program.--The purpose 
     of the Mickey Leland Hunger Fellowship Program is to address 
     international hunger and other humanitarian needs.
       ``(3) Administration.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall offer to enter into a contract with the 
     Congressional Hunger Center to administer the Fellowship 
     Programs.
       ``(B) Terms of contract.--The terms of the contract entered 
     into under subparagraph (A), including the length of the 
     contract and provisions for the alteration or termination of 
     the contract, shall be determined by the Secretary in 
     accordance with this section.
       ``(e) Fellowships.--
       ``(1) In general.--The Director shall make available Bill 
     Emerson Hunger Fellowships and Mickey Leland Hunger 
     Fellowships in accordance with this subsection.
       ``(2) Curriculum.--
       ``(A) In general.--The Fellowship Programs shall provide 
     experience and training to develop the skills necessary to 
     train fellows to carry out the purposes described in 
     subsection (d)(2), including--
       ``(i) training in direct service programs for the hungry 
     and other anti-hunger programs in conjunction with community-
     based organizations through a program of field placement; and
       ``(ii) providing experience in policy development through 
     placement in a governmental entity or nongovernmental, 
     nonprofit, or private sector organization.
       ``(B) Work plan.--To carry out subparagraph (A) and assist 
     in the evaluation of the fellowships under paragraph (6), the 
     Director shall, for each fellow, approve a work plan that 
     identifies the target objectives for the fellow in the 
     fellowship, including specific duties and responsibilities 
     relating to those objectives.
       ``(3) Period of fellowship.--
       ``(A) Bill emerson hunger fellow.--A Bill Emerson Hunger 
     Fellowship awarded under this section shall be for not more 
     than 15 months.
       ``(B) Mickey leland hunger fellow.--A Mickey Leland Hunger 
     Fellowship awarded under this section shall be for not more 
     than 2 years.
       ``(4) Selection of fellows.--
       ``(A) In general.--Fellowships shall be awarded pursuant to 
     a nationwide competition established by the Director.
       ``(B) Qualifications.--A successful program applicant shall 
     be an individual who has demonstrated--
       ``(i) an intent to pursue a career in humanitarian services 
     and outstanding potential for such a career;
       ``(ii) leadership potential or actual leadership 
     experience;
       ``(iii) diverse life experience;
       ``(iv) proficient writing and speaking skills;
       ``(v) an ability to live in poor or diverse communities; 
     and
       ``(vi) such other attributes as are considered to be 
     appropriate by the Director.
       ``(5) Amount of award.--
       ``(A) In general.--A fellow shall receive--
       ``(i) a living allowance during the term of the Fellowship; 
     and
       ``(ii) subject to subparagraph (B), an end-of-service 
     award.
       ``(B) Requirement for successful completion of 
     fellowship.--Each fellow shall be entitled to receive an end-
     of-service award at an appropriate rate for each month of 
     satisfactory service completed, as determined by the 
     Director.
       ``(C) Terms of fellowship.--A fellow shall not be 
     considered an employee of--
       ``(i) the Department of Agriculture;
       ``(ii) the Congressional Hunger Center; or
       ``(iii) a host agency in the field or policy placement of 
     the fellow.
       ``(D) Recognition of fellowship award.--
       ``(i) Emerson fellow.--An individual awarded a fellowship 
     from the Bill Emerson Hunger Fellowship shall be known as an 
     `Emerson Fellow'.
       ``(ii) Leland fellow.--An individual awarded a fellowship 
     from the Mickey Leland Hunger Fellowship shall be known as a 
     `Leland Fellow'.
       ``(6) Evaluations and audits.--Under terms stipulated in 
     the contract entered into under subsection (d)(3), the 
     Director shall--
       ``(A) conduct periodic evaluations of the Fellowship 
     Programs; and
       ``(B) arrange for annual independent financial audits of 
     expenditures under the Fellowship Programs.
       ``(f) Authority.--
       ``(1) In general.--Subject to paragraph (2), in carrying 
     out this section, the Director may solicit, accept, use, and 
     dispose of gifts, bequests, or devises of services or 
     property, both real and personal, for the purpose of 
     facilitating the work of the Fellowship Programs.
       ``(2) Limitation.--Gifts, bequests, or devises of money and 
     proceeds from sales of other property received as gifts, 
     bequests, or devises shall be used exclusively for the 
     purposes of the Fellowship Programs.
       ``(g) Report.--The Director shall annually submit to the 
     Secretary of Agriculture, the Committee on Agriculture of the 
     House of Representatives, and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that--
       ``(1) describes the activities and expenditures of the 
     Fellowship Programs during the preceding fiscal year, 
     including expenditures made from funds made available under 
     subsection (h); and
       ``(2) includes the results of evaluations and audits 
     required by subsection (f).
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     are necessary to carry out this section, to remain available 
     until expended.''.
       (b) Repeal.--Section 4404 of the Farm Security and Rural 
     Investment Act of 2002 (2 U.S.C. 1161) is repealed.

     SEC. 4405. HUNGER-FREE COMMUNITIES.

       (a) Definitions.--In this section:
       (1) Domestic hunger goal.--The term ``domestic hunger 
     goal'' means--
       (A) the goal of reducing hunger in the United States to at 
     or below 2 percent by 2010; or
       (B) the goal of reducing food insecurity in the United 
     States to at or below 6 percent by 2010.
       (2) Emergency feeding organization.--The term ``emergency 
     feeding organization'' has the meaning given the term in 
     section 201A of the Emergency Food Assistance Act of 1983 (7 
     U.S.C. 7501).
       (3) Food security.--The term ``food security'' means the 
     state in which an individual has access to enough food for an 
     active, healthy life.
       (4) Hunger-free communities goal.--The term ``hunger-free 
     communities goal'' means any of the 14 goals described in the 
     H. Con. Res. 302 (102nd Congress).
       (b) Hunger Reports.--
       (1) Study.--
       (A) Timeline.--
       (i) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall conduct a study of 
     major matters relating to the problem of hunger in the United 
     States, as determined by the Secretary.
       (ii) Update.--Not later than 5 years after the date on 
     which the study under clause (i) is conducted, the Secretary 
     shall update the study.
       (B) Matters to be assessed.--The matters to be assessed by 
     the Secretary in the study and update under this paragraph 
     shall include--
       (i) data on hunger and food insecurity in the United 
     States;
       (ii) measures carried out during the previous year by 
     Federal, State, and local governments to achieve domestic 
     hunger goals and hunger-free communities goals; and
       (iii) measures that could be carried out by Federal, State, 
     and local governments to achieve domestic hunger goals and 
     hunger-free communities goals.
       (2) Recommendations.--The Secretary shall develop 
     recommendations on--
       (A) removing obstacles to achieving domestic hunger goals 
     and hunger-free communities goals; and
       (B) otherwise reducing domestic hunger.
       (3) Report.--The Secretary shall submit to the President 
     and Congress--
       (A) not later than 1 year after the date of enactment of 
     this Act, a report that contains--
       (i) a detailed statement of the results of the study, or 
     the most recent update to the study, conducted under 
     paragraph (1)(A); and
       (ii) the most recent recommendations of the Secretary under 
     paragraph (2); and
       (B) not later than 5 years after the date of submission of 
     the report under subparagraph (A), an update of the report.
       (c) Hunger-Free Communities Collaborative Grants.--
       (1) Definition of eligible entity.--In this subsection, the 
     term ``eligible entity'' means a public food program service 
     provider or a nonprofit organization, including but not 
     limited to an emergency feeding organization, that 
     demonstrates the organization has collaborated, or will 
     collaborate, with 1 or more local partner organizations to 
     achieve at least 1 hunger-free communities goal.
       (2) Program authorized.--
       (A) In general.--The Secretary shall use not more than 55 
     percent of any funds made available under subsection (f) to 
     make grants to eligible entities to pay the Federal share of 
     the costs of an activity described in paragraph (4).
       (B) Federal share.--The Federal share of the cost of 
     carrying out an activity under this subsection shall not 
     exceed 80 percent.
       (C) Non-federal share.--
       (i) Calculation.--The non-Federal share of the cost of an 
     activity under this subsection may be provided in cash or in 
     kind, fairly evaluated, including facilities, equipment, or 
     services.
       (ii) Sources.--Any entity may provide the non-Federal share 
     of the cost of an activity under this subsection through a 
     State government, a local government, or a private source.

[[Page 29282]]

       (3) Application.--
       (A) In general.--To receive a grant under this subsection, 
     an eligible entity shall submit an application to the 
     Secretary at the time and in the manner and accompanied by 
     any information the Secretary may require.
       (B) Contents.--Each application submitted under 
     subparagraph (A) shall--
       (i) identify any activity described in paragraph (4) that 
     the grant will be used to fund;
       (ii) describe the means by which an activity identified 
     under clause (i) will reduce hunger in the community of the 
     eligible entity;
       (iii) list any partner organizations of the eligible entity 
     that will participate in an activity funded by the grant;
       (iv) describe any agreement between a partner organization 
     and the eligible entity necessary to carry out an activity 
     funded by the grant; and
       (v) if an assessment described in paragraph (4)(A) has been 
     performed, include--

       (I) a summary of that assessment; and
       (II) information regarding the means by which the grant 
     will help reduce hunger in the community of the eligible 
     entity.

       (C) Priority.--In making grants under this subsection, the 
     Secretary shall give priority to eligible entities that--
       (i) demonstrate in the application of the eligible entity 
     that the eligible entity makes collaborative efforts to 
     reduce hunger in the community of the eligible entity; and
       (ii)(I) serve communities in which the rates of food 
     insecurity, hunger, poverty, or unemployment are demonstrably 
     higher than national average rates;
       (II) provide evidence of long-term efforts to reduce hunger 
     in the community;
       (III) provide evidence of public support for the efforts of 
     the eligible entity; or
       (IV) demonstrate in the application of the eligible entity 
     a commitment to achieving more than 1 hunger-free communities 
     goal.
       (4) Use of funds.--
       (A) Assessment of hunger in the community.--
       (i) In general.--An eligible entity in a community that has 
     not performed an assessment described in clause (ii) may use 
     a grant received under this subsection to perform the 
     assessment for the community.
       (ii) Assessment.--The assessment referred to in clause (ii) 
     shall include--

       (I) an analysis of the problem of hunger in the community 
     served by the eligible entity;
       (II) an evaluation of any facility and any equipment used 
     to achieve a hunger-free communities goal in the community;
       (III) an analysis of the effectiveness and extent of 
     service of existing nutrition programs and emergency feeding 
     organizations; and
       (IV) a plan to achieve any other hunger-free communities 
     goal in the community.

       (B) Activities.--An eligible entity in a community that has 
     submitted an assessment to the Secretary shall use a grant 
     received under this subsection for any fiscal year for 
     activities of the eligible entity, including--
       (i) meeting the immediate needs of people in the community 
     served by the eligible entity who experience hunger by--

       (I) distributing food;
       (II) providing community outreach; or
       (III) improving access to food as part of a comprehensive 
     service;

       (ii) developing new resources and strategies to help reduce 
     hunger in the community;
       (iii) establishing a program to achieve a hunger-free 
     communities goal in the community, including--

       (I) a program to prevent, monitor, and treat children in 
     the community experiencing hunger or poor nutrition; or
       (II) a program to provide information to people in the 
     community on hunger, domestic hunger goals, and hunger-free 
     communities goals; and

       (iv) establishing a program to provide food and nutrition 
     services as part of a coordinated community-based 
     comprehensive service.
       (d) Hunger-Free Communities Infrastructure Grants.--
       (1) Definition of eligible entity.--In this subsection, the 
     term ``eligible entity'' means an emergency feeding 
     organization (as defined in section 201A(4) of the Emergency 
     Food Assistance Act of 1983 (7 U.S.C. 7501(4))).
       (2) Program authorized.--
       (A) In general.--The Secretary shall use not more than 45 
     percent of any funds made available under subsection (f) to 
     make grants to eligible entities to pay the Federal share of 
     the costs of an activity described in paragraph (4).
       (B) Federal share.--The Federal share of the cost of 
     carrying out an activity under this subsection shall not 
     exceed 80 percent.
       (3) Application.--
       (A) In general.--To receive a grant under this subsection, 
     an eligible entity shall submit an application to the 
     Secretary at the time and in the manner and accompanied by 
     any information the Secretary may require.
       (B) Contents.--Each application submitted under 
     subparagraph (A) shall--
       (i) identify any activity described in paragraph (4) that 
     the grant will be used to fund; and
       (ii) describe the means by which an activity identified 
     under clause (i) will reduce hunger in the community of the 
     eligible entity.
       (C) Priority.--In making grants under this subsection, the 
     Secretary shall give priority to eligible entities the 
     applications of which demonstrate 2 or more of the following:
       (i) The eligible entity serves a community in which the 
     rates of food insecurity, hunger, poverty, or unemployment 
     are demonstrably higher than national average rates.
       (ii) The eligible entity serves a community that has 
     carried out long-term efforts to reduce hunger in the 
     community.
       (iii) The eligible entity serves a community that provides 
     public support for the efforts of the eligible entity.
       (iv) The eligible entity is committed to achieving more 
     than 1 hunger-free communities goal.
       (4) Use of funds.--An eligible entity shall use a grant 
     received under this subsection for any fiscal year to carry 
     out activities of the eligible entity, including--
       (A) constructing, expanding, or repairing a facility or 
     equipment to support hunger relief agencies in the community;
       (B) assisting an emergency feeding organization in the 
     community in obtaining locally-produced produce and protein 
     products; and
       (C) assisting an emergency feeding organization in the 
     community to process and serve wild game.
       (e) Report.--If funds are made available under subsection 
     (f), not later than September 30, 2012, the Secretary shall 
     submit to Congress a report describing--
       (1) each grant made under this section, including--
       (A) a description of any activity funded by such a grant; 
     and
       (B) the degree of success of each activity funded by such a 
     grant in achieving hunger-free communities goals; and
       (2) the degree of success of all activities funded by 
     grants under this section in achieving domestic hunger goals.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 2008 through 2012.

     SEC. 4406. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING 
                   PROGRAM BENEFITS FOR FREE SCHOOL MEALS.

       (a) In General.--Not later than June 30 of each year, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that assesses 
     the effectiveness of each State in enrolling school-aged 
     children in households receiving program benefits under the 
     Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) 
     (referred to in this section as ``program benefits'') for 
     free school meals using direct certification.
       (b) Specific Measures.--The assessment of the Secretary of 
     the performance of each State shall include--
       (1) an estimate of the number of school-aged children, by 
     State, who were members of a household receiving program 
     benefits at any time in July, August, or September of the 
     prior year;
       (2) an estimate of the number of school-aged children, by 
     State, who were directly certified as eligible for free 
     lunches under the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1751 et seq.), based on receipt of program 
     benefits, as of October 1 of the prior year; and
       (3) an estimate of the number of school-aged children, by 
     State, who were members of a household receiving program 
     benefits at any time in July, August, or September of the 
     prior year who were not candidates for direct certification 
     because on October 1 of the prior year the children attended 
     a school operating under the special assistance provisions of 
     section 11(a)(1) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1759a) that is not operating in a base 
     year.
       (c) Performance Innovations.--The report of the Secretary 
     shall describe best practices from States with the best 
     performance or the most improved performance from the 
     previous year.

      Subtitle B--Food Distribution Program on Indian Reservations

     SEC. 4501. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD 
                   PACKAGE.

       (a) In General.--Section 4 of the Food and Nutrition Act of 
     2007 (7 U.S.C. 2013) is amended by striking subsection (b) 
     and inserting the following:
       ``(b) Food Distribution Program on Indian Reservations.--
       ``(1) In general.--Distribution of commodities, with or 
     without the food and nutrition program, shall be made 
     whenever a request for concurrent or separate food program 
     operations, respectively, is made by a tribal organization.
       ``(2) Administration.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), in 
     the event of distribution on all or part of an Indian 
     reservation, the appropriate agency of the State government 
     in the area involved shall be responsible for the 
     distribution.
       ``(B) Administration by tribal organization.--If the 
     Secretary determines that a tribal organization is capable of 
     effectively and efficiently administering a distribution

[[Page 29283]]

     described in paragraph (1), then the tribal organization 
     shall administer the distribution.
       ``(C) Prohibition.--The Secretary shall not approve any 
     plan for a distribution described in paragraph (1) that 
     permits any household on any Indian reservation to 
     participate simultaneously in the food and nutrition program 
     and the distribution of federally donated foods.
       ``(3) Disqualified participants.--An individual who is 
     disqualified from participation in the food distribution 
     program on Indian reservations under this subsection is not 
     eligible to participate in the food and nutrition program 
     under this Act.
       ``(4) Administrative costs.--The Secretary is authorized to 
     pay such amounts for administrative costs and distribution 
     costs on Indian reservations as the Secretary finds necessary 
     for effective administration of such distribution by a State 
     agency or tribal organization.
       ``(5) Bison meat.--Subject to the availability of 
     appropriations, the Secretary may purchase bison meat for 
     recipients of food distributed under this subsection, 
     including bison meat from--
       ``(A) Native American bison producers; and
       ``(B) producer-owned cooperatives of bison ranchers.
       ``(6) Traditional food fund.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Secretary shall establish a fund for use 
     in purchasing traditional foods for recipients of food 
     distributed under this subsection.
       ``(B) Survey.--In carrying out this paragraph, the 
     Secretary shall--
       ``(i) survey participants of the food distribution program 
     on Indian reservations established under this subsection to 
     determine which traditional foods are most desired by those 
     participants; and
       ``(ii) purchase or offer to purchase those traditional 
     foods that may be procured cost-effectively.
       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this 
     paragraph $5,000,000 for each of fiscal years 2008 through 
     2012.''.
       (b) FDPIR Food Package.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary of Agriculture 
     shall submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that describes--
       (1) how the Secretary derives the process for determining 
     the food package under the food distribution program on 
     Indian reservations established under section 4(b) of the 
     Food and Nutrition Act of 2007 (7 U.S.C. 2013(b)) (referred 
     to in this subsection as the ``food package'');
       (2) the extent to which the food package--
       (A) addresses the nutritional needs of low-income Americans 
     compared to the food and nutrition program, particularly for 
     very low-income households;
       (B) conforms (or fails to conform) to the 2005 Dietary 
     Guidelines for Americans published under section 301 of the 
     National Nutrition Monitoring and Related Research Act of 
     1990 (7 U.S.C. 5341);
       (C) addresses (or fails to address) the nutritional and 
     health challenges that are specific to Native Americans; and
       (D) is limited by distribution costs or challenges of 
     infrastructure;
       (3) any plans of the Secretary to revise and update the 
     food package to conform with the most recent Dietary 
     Guidelines for Americans, including any costs associated with 
     the planned changes; and
       (4) if the Secretary does not plan changes to the food 
     package, the rationale of the Secretary for retaining the 
     food package.

  Subtitle C--Administration of Emergency Food Assistance Program and 
                  Commodity Supplemental Food Program

     SEC. 4601. EMERGENCY FOOD ASSISTANCE.

       (a) State Plan.--Section 202A of the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7503) is amended by striking 
     subsection (a) and inserting the following:
       ``(a) Plans.--To receive commodities under this Act, every 
     3 years, a State shall submit to the Secretary an operation 
     and administration plan for the provision of assistance under 
     this Act.''.
       (b) Donated Wild Game.--Section 204(a)(1) of the Emergency 
     Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended 
     in the first sentence by inserting ``and donated wild game'' 
     before the period at the end.

     SEC. 4602. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

       Section 5 of the Agriculture and Consumer Protection Act of 
     1973 (7 U.S.C. 612c note; Public Law 93-86) is amended by 
     striking subsection (g) and inserting the following:
       ``(g) Prohibition.--Notwithstanding any other provision of 
     law (including regulations), the Secretary may not require a 
     State or local agency to prioritize assistance to a 
     particular group of individuals that are--
       ``(1) low-income persons aged 60 and older; or
       ``(2) women, infants, and children.''.

          Subtitle D--Senior Farmers' Market Nutrition Program

     SEC. 4701. EXCLUSION OF BENEFITS IN DETERMINING ELIGIBILITY 
                   FOR OTHER PROGRAMS.

       (a) In General.--Section 4402 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 3007) is amended--
       (1) in subsection (a), by striking ``each of fiscal years 
     2003 through 2007'' and inserting ``fiscal year 2008 and each 
     fiscal year thereafter'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (e), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Additional Funds.--In addition to the amounts made 
     available under subsection (a), for fiscal year 2008 and each 
     fiscal year thereafter, of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture shall use 
     $10,000,000 to expand the program established under this 
     section.''; and
       (4) by inserting after subsection (c) (as redesignated by 
     paragraph (2)) the following:
       ``(d) Exclusion of Benefits in Determining Eligibility for 
     Other Programs.--The value of any benefit provided under the 
     program under this section shall not be taken into 
     consideration in determining the eligibility of an individual 
     for any other Federal or State assistance program.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on the date of enactment of this Act.

     SEC. 4702. PROHIBITION ON COLLECTION OF SALES TAX.

       Section 4402 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 3007) is amended by inserting after 
     subsection (d) (as added by section 4701(a)(4)) the 
     following:
       ``(e) Prohibition on Collection of Sales Tax.--A State that 
     collects any sales tax on the purchase of food using a 
     benefit provided under the program under this section shall 
     not be eligible to participate in the program.''.

    Subtitle E--Reauthorization of Federal Food Assistance Programs

     SEC. 4801. FOOD AND NUTRITION PROGRAM.

       (a) Grants for Simple Application and Eligibility 
     Determination Systems and Improved Access to Benefits.--
     Section 11(t)(1) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2020(t)(1)) is amended by striking ``For each of 
     fiscal years 2003 through 2007'' and inserting ``For fiscal 
     year 2008 and each fiscal year thereafter''.
       (b) Funding of Employment and Training Programs.--Section 
     16(h)(1) of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2025(h)(1)) is amended--
       (1) in subparagraph (A)(vii), by striking ``for each of 
     fiscal years 2002 through 2007'' and inserting ``for fiscal 
     year 2008 and each fiscal year thereafter''; and
       (2) in subparagraph (E)(i), by striking ``for each of 
     fiscal years 2002 through 2007'' and inserting ``for fiscal 
     year 2008 and each fiscal year thereafter''.
       (c) Reductions in Payments for Administrative Costs.--
     Section 16(k)(3) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2025(k)(3)) is amended--
       (1) in the first sentence of subparagraph (A), by striking 
     ``for each of fiscal years 1999 through 2007'' and inserting 
     ``for fiscal year 2008 and each fiscal year thereafter''; and
       (2) in subparagraph (B)(ii), by striking ``through fiscal 
     year 2007''.
       (d) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) 
     of the Food and Nutrition Act of 2007 (7 U.S.C. 
     2026(b)(1)(B(vi)) is amended by striking ``through October 1, 
     2007''.
       (e) Authorization of Appropriations.--Section 18(a)(1) of 
     the Food and Nutrition Act of 2007 (7 U.S.C. 2027(a)(1)) is 
     amended in the first sentence by striking ``for each of the 
     fiscal years 2003 through 2007'' and inserting ``for fiscal 
     year 2008 and each fiscal year thereafter''.
       (f) Consolidated Block Grants for Puerto Rico and American 
     Samoa.--Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 
     of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) by striking ``for each 
     of fiscal years 2004 through 2007'' and inserting ``for 
     fiscal year 2008 and each fiscal year thereafter''.
       (g) Assistance for Community Food Projects.--Section 25 of 
     the Food and Nutrition Act of 2007 (7 U.S.C. 2034) is 
     amended--
       (1) in subsection (b)(2), by striking subparagraph (B) and 
     inserting the following:
       ``(B) $10,000,000 for each of fiscal years 2008 through 
     2012.''; and
       (2) in subsection (h)(4), by striking ``2007'' and 
     inserting ``2012''.

     SEC. 4802. COMMODITY DISTRIBUTION.

       (a) Emergency Food Assistance.--Section 204(a)(1) of the 
     Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 
     is amended in the first sentence by striking ``$60,000,000 
     for each of the fiscal years 2003 through 2007'' and 
     inserting ``$100,000,000 for fiscal year 2008 and each fiscal 
     year thereafter''.
       (b) Commodity Distribution Program.--Section 4(a) of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) is amended in the first sentence 
     by striking ``years 1991 through 2007'' and inserting ``year 
     2008 and each fiscal year thereafter''.
       (c) Commodity Supplemental Food Program.--Section 5 of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``each of fiscal years 
     2003 through 2007'' and inserting ``fiscal year 2008 and each 
     fiscal year thereafter''; and

[[Page 29284]]

       (B) in paragraph (2)(B), by striking ``(B) Fiscal years 
     2004 through 2007.--'' and all that follows through ``2007'' 
     and inserting the following:
       ``(B) Subsequent fiscal years.--For fiscal year 2004 and 
     each subsequent fiscal year''; and
       (2) in subsection (d)(2), by striking ``each of the fiscal 
     years 1991 through 2007'' and inserting ``fiscal year 2008 
     and each fiscal year thereafter''.
       (d) Distribution of Surplus Commodities to Special 
     Nutrition Projects.--Section 1114(a)(2)(A) of the Agriculture 
     and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the 
     first sentence by striking ``2007'' and inserting ``2012''.

     SEC. 4803. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

       Section 4403(f) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 3171 note; Public Law 107-171) is 
     amended by striking ``2007'' and inserting ``2012''.

                       Subtitle F--Miscellaneous

     SEC. 4901. PURCHASES OF LOCALLY GROWN FRUITS AND VEGETABLES.

       Section 9(j) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(j)) is amended to read as follows:
       ``(j) Purchases of Locally Grown Fruits and Vegetables.--
     The Secretary shall--
       ``(1) encourage institutions receiving funds under this Act 
     and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
     to purchase locally grown fruits and vegetables, to the 
     maximum extent practicable and appropriate;
       ``(2) advise institutions participating in a program 
     described in paragraph (1) of the policy described in that 
     paragraph and post information concerning the policy on the 
     website maintained by the Secretary; and
       ``(3) allow institutions receiving funds under this Act and 
     the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
     including the Department of Defense, to use a geographic 
     preference for the procurement of locally grown fruits and 
     vegetables.''.

     SEC. 4902. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.

       Section 18(i) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1769(i)) is amended--
       (1) in paragraph (1)(C), by inserting ``promotes healthy 
     food education in the school curriculum and'' before 
     ``incorporates'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following:
       ``(2) Administration.--In providing grants under this 
     subsection, the Secretary shall give priority to projects 
     that can be replicated in schools.''.

     SEC. 4903. FRESH FRUIT AND VEGETABLE PROGRAM.

       (a) In General.--The Richard B. Russell National School 
     Lunch Act is amended by inserting after section 18 (42 U.S.C. 
     1769) the following:

     ``SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM.

       ``(a) In General.--For the school year beginning July 2008 
     and each subsequent school year, the Secretary shall provide 
     grants to States to carry out a program to make free fresh 
     fruits and vegetables available in elementary schools 
     (referred to in this section as the `program').
       ``(b) Program.--A school participating in the program shall 
     make free fresh fruits and vegetables available to students 
     throughout the school day (or at such other times as are 
     considered appropriate by the Secretary) in 1 or more areas 
     designated by the school.
       ``(c) Funding to States.--
       ``(1) Minimum grant.--The Secretary shall provide to each 
     of the 50 States and the District of Columbia an annual grant 
     in an amount equal to 1 percent of the funds made available 
     for a fiscal year to carry out the program.
       ``(2) Additional funding.--Of the funds remaining after 
     grants are made under paragraph (1), the Secretary shall 
     allocate additional funds to each State that is operating a 
     school lunch program under section 4 based on the proportion 
     that--
       ``(A) the population of the State; bears to
       ``(B) the population of the United States.
       ``(d) Selection of Schools.--
       ``(1) In general.--In selecting schools to participate in 
     the program, each State shall--
       ``(A) ensure that each school chosen to participate in the 
     program is a school--
       ``(i) except as provided in paragraph (2), in which not 
     less than 50 percent of the students are eligible for free or 
     reduced price meals under this Act; and
       ``(ii) that submits an application in accordance with 
     subparagraph (C); and
       ``(B) to the maximum extent practicable, give the highest 
     priority to schools with the highest proportion of children 
     who are eligible for free or reduced price meals under this 
     Act;
       ``(C) solicit applications from interested schools that 
     include--
       ``(i) information pertaining to the percentage of students 
     enrolled in the school submitting the application who are 
     eligible for free or reduced price school lunches under this 
     Act;
       ``(ii) a certification of support for participation in the 
     program signed by the school food manager, the school 
     principal, and the district superintendent (or equivalent 
     positions, as determined by the school); and
       ``(iii) such other information as may be requested by the 
     Secretary;
       ``(D) give priority to schools that submit a plan for 
     implementation of the program that includes a partnership 
     with 1 or more entities that provide non-Federal resources 
     (including entities representing the fruit and vegetable 
     industry) for--
       ``(i) the acquisition, handling, promotion, or distribution 
     of fresh and dried fruits and fresh vegetables; or
       ``(ii) other support that contributes to the purposes of 
     the program;
       ``(E) give priority to schools that provide evidence of 
     efforts to integrate activities carried out under this 
     section with other efforts to promote sound health and 
     nutrition, reduce overweight and obesity, or promote physical 
     activity; and
       ``(F) ensure that each school selected is an elementary 
     school.
       ``(2) Exception.--Clause (i) of paragraph (1)(A) shall not 
     apply to a State if the State does not have a sufficient 
     number of schools that meet the requirement of that clause.
       ``(3) Consortia.--A consortia of schools may apply for 
     funding under this section.
       ``(e) Notice of Availability.--To be eligible to 
     participate in the program, a school shall widely publicize 
     within the school the availability of free fresh fruits and 
     vegetables under the program.
       ``(f) Per-Student Grant.--The per-student grant provided to 
     a school under this section shall be--
       ``(1) determined by a State agency; and
       ``(2) not less than $50, nor more than $75, annually.
       ``(g) Limitation.--To the maximum extent practicable, each 
     State agency shall ensure that in making available to 
     students the fruits and vegetables provided under this 
     section, schools participating in the program offer the 
     fruits and vegetables separately from meals otherwise 
     provided at the school under this Act or the Child Nutrition 
     Act of 1966 (42 U.S.C. 1771 et seq.).
       ``(h) Schools on Indian Reservations.--The Secretary shall 
     ensure that not less than 100 of the schools chosen to 
     participate in the program are schools operated on Indian 
     reservations.
       ``(i) Evaluation and Reports.--
       ``(1) In general.--The Secretary shall conduct an 
     evaluation of the program, including a determination as to 
     whether children experienced, as a result of participating in 
     the program--
       ``(A) increased consumption of fruits and vegetables;
       ``(B) other dietary changes, such as decreased consumption 
     of less nutritious foods; and
       ``(C) such other outcomes as are considered appropriate by 
     the Secretary.
       ``(2) Report.--Not later than September 30, 2011, the 
     Secretary shall submit to the Committee on Education and 
     Labor of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, a report 
     that describes the results of the evaluation under paragraph 
     (1).
       ``(j) Funding.--
       ``(1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary to carry out this section--
       ``(A) on October 1, 2007, $225,000,000; and
       ``(B) on October 1, 2008, and each October 1 thereafter, 
     the amount made available for the preceding fiscal year, as 
     adjusted to reflect changes for the 12-month period ending 
     the preceding June 30 in the Consumer Price Index for All 
     Urban Consumers published by the Bureau of Labor Statistics 
     of the Department of Labor, for items other than food.
       ``(2) Evaluation funding.--On October 1, 2007, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out the evaluation required under subsection (i), 
     $3,000,000, to remain available until expended.
       ``(3) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section any funds transferred for that purpose, without 
     further appropriation.
       ``(4) Authorization of appropriations.--In addition to any 
     other amounts made available to carry out this section, there 
     are authorized to be appropriated such sums as are necessary 
     to expand the program established under this section.
       ``(5) Administrative costs.--Of funds made available to 
     carry out this section for a fiscal year, the Secretary may 
     use not more than $500,000 for the administrative costs of 
     carrying out the program.
       ``(6) Reallocation.--
       ``(A) Among states.--The Secretary may reallocate any 
     amounts made available to carry out this section that are not 
     obligated or expended by a date determined by the Secretary.
       ``(B) Within states.--A State that receives a grant under 
     this section may reallocate any amounts made available under 
     the grant that are not obligated or expended by a date 
     determined by the Secretary.''.
       (b) Conforming Amendments.--Section 18 of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1769) is 
     amended--

[[Page 29285]]

       (1) by striking subsection (g); and
       (2) by redesignating subsections (h) through (k) as 
     subsections (g) through (j), respectively.

     SEC. 4904. BUY AMERICAN REQUIREMENTS.

       (a) Findings.--Congress finds that--
       (1) Federal law requires that commodities and products 
     purchased with Federal funds be, to the maximum extent 
     practicable, of domestic origin;
       (2) Federal Buy American statutory requirements seek to 
     ensure that purchases made with Federal funds benefit 
     domestic producers; and
       (3) the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.) requires the use of domestic food 
     products for all meals served under the school lunch program, 
     including food products purchased with local funds.
       (b) Buy American Statutory Requirements.--It is the sense 
     of Congress that the Secretary should undertake training, 
     guidance, and enforcement of the various Buy American 
     statutory requirements and regulations in effect on the date 
     of enactment of this Act, including requirements of--
       (1) the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.); and
       (2) the Department of Defense fresh fruit and vegetable 
     distribution program.

     SEC. 4905. MINIMUM PURCHASES OF FRUITS, VEGETABLES, AND NUTS 
                   THROUGH SECTION 32 TO SUPPORT DOMESTIC 
                   NUTRITION ASSISTANCE PROGRAMS.

       (a) Minimum Funding for Purchases of Fruits, Vegetables, 
     and Nuts.--In lieu of the purchases of fruits, vegetables, 
     and nuts required by section 10603 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 612c-4), the Secretary 
     shall purchase fruits, vegetables, and nuts for the purpose 
     of providing nutritious foods for use in domestic nutrition 
     assistance programs, using, of the funds made available under 
     section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), the 
     following amounts:
       (1) $390,000,000 for fiscal year 2008.
       (2) $393,000,000 for fiscal year 2009.
       (3) $399,000,000 for fiscal year 2010.
       (4) $403,000,000 for fiscal year 2011.
       (5) $406,000,000 for fiscal year 2012 and each fiscal year 
     thereafter.
       (b) Form of Purchases.--Fruits, vegetables, and nuts may be 
     purchased under this section in frozen, canned, dried, or 
     fresh form.
       (c) Value-Added Products.--The Secretary may offer value-
     added products containing fruits, vegetables, or nuts under 
     this section, taking into consideration--
       (1) whether demand exists for the value-added product; and
       (2) the interests of entities that receive fruits, 
     vegetables, and nuts under this section.

     SEC. 4906. CONFORMING AMENDMENTS TO RENAMING OF FOOD STAMP 
                   PROGRAM.

       (a) In General.--
       (1) Section 4 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2013) is amended in the section heading by striking 
     ``food stamp program'' and inserting ``food and nutrition 
     program''.
       (2) Section 5(h)(2)(A) of the Food and Nutrition Act of 
     2007 (7 U.S.C. 2014(h)(2)(A)) is amended by striking ``Food 
     Stamp Disaster Task Force'' and inserting ``Food and 
     Nutrition Disaster Task Force''.
       (3) Section 6 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2015) is amended--
       (A) in subsection (d)(3), by striking ``eligible for food 
     stamps'' and inserting ``eligible to receive food and 
     nutrition assistance'';
       (B) in subsection (g), by striking ``food stamps'' and 
     inserting ``food and nutrition assistance'';
       (C) in subsection (j), in the subsection heading, by 
     striking ``Food Stamp'' and inserting ``Food and Nutrition''; 
     and
       (D) in subsection (o)--
       (i) in paragraph (2), by striking ``food stamp benefits'' 
     and inserting ``food and nutrition assistance''; and
       (ii) in paragraph (6)--

       (I) in subparagraph (A)--

       (aa) in clause (i), by striking ``food stamps'' and 
     inserting ``food and nutrition assistance''; and
       (bb) in clause (ii)--
       (AA) in the matter preceding subclause (I), by striking ``a 
     food stamp recipient'' and inserting ``a member of a 
     household that receives food and nutrition assistance''; and
       (BB) by striking ``food stamp benefits'' each place it 
     appears and inserting ``food and nutrition assistance''; and

       (II) in subparagraphs (D) and (E), by striking ``food stamp 
     recipients'' each place it appears and inserting ``members of 
     households that receive food and nutrition assistance''.

       (4) Section 7 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2016) (as amended by section 4202(a)(11)) is amended--
       (A) in subsection (h)--
       (i) in paragraph (3)(B)(ii), by striking ``food stamp 
     households'' and inserting ``households receiving food and 
     nutrition assistance''; and
       (ii) in paragraph (7), by striking ``food stamp issuance'' 
     and inserting ``food and nutrition assistance issuance''; and
       (B) in subsection (j)--
       (i) in paragraph (2), by striking ``food stamp benefits'' 
     and inserting ``food and nutrition assistance benefits''; and
       (ii) in paragraph (3), by striking ``food stamp retail'' 
     and inserting ``food and nutrition assistance retail''.
       (5) Section 9(b)(1) of that Food and Nutrition Act of 2007 
     (7 U.S.C. 2018(b)(1)) is amended by striking ``food stamp 
     households'' and inserting ``households that receive food and 
     nutrition assistance''.
       (6) Section 11 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2020) (as amended by section 4202(b)(9)(B)(III)) is 
     amended--
       (A) in subsection (e)--
       (i) in paragraph (2)--

       (I) in subparagraph (A), by striking ``food stamp offices'' 
     and inserting ``food and nutrition assistance offices''; and
       (II) in subparagraph (B)--

       (aa) in clause (iii), by striking ``food stamp office'' and 
     inserting ``food and nutrition assistance office'';
       (bb) in clause (v)(II), by striking ``food stamps'' and 
     inserting ``food and nutrition assistance''; and
       (cc) in clause (vii), by striking ``food stamp offices'' 
     and inserting ``food and nutrition assistance offices'';
       (ii) in paragraph (14), by striking ``food stamps'' and 
     inserting ``food and nutrition assistance'';
       (iii) in paragraph (15), by striking ``food stamps'' and 
     inserting ``food and nutrition assistance''; and
       (iv) in paragraph (23)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``Simplified Food Stamp Program'' and inserting ``Simplified 
     Food and Nutrition Assistance Program''; and
       (II) in subparagraph (A), by striking ``food stamp 
     benefits'' and inserting ``food and nutrition assistance'';

       (B) in subsection (k), by striking ``may issue, upon 
     request by the State agency, food stamps'' and inserting 
     ``may provide, on request by the State agency, food and 
     nutrition assistance'';
       (C) in subsection (l), by striking ``food stamp 
     participation'' and inserting ``food and nutrition program 
     participation'';
       (D) in subsections (q) and (r), in the subsection headings, 
     by striking ``Food Stamps'' each place it appears and 
     inserting ``Food and Nutrition Assistance'';
       (E) in subsection (s), by striking ``food stamp benefits'' 
     each place it appears and inserting ``food and nutrition 
     assistance''; and
       (F) in subsection (t)(1)--
       (i) in subparagraph (A), by striking ``food stamp 
     application'' and inserting ``food and nutrition assistance 
     application''; and
       (ii) in subparagraph (B), by striking ``food stamp 
     benefits'' and inserting ``food and nutrition assistance''.
       (7) Section 14(b) of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2023(b)) is amended by striking ``food stamp 
     allotments'' and inserting ``food and nutrition assistance''.
       (8) Section 16 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2025) is amended--
       (A) in subsection (a)(4), by striking ``food stamp 
     informational activities'' and inserting ``informational 
     activities relating to the food and nutrition program'';
       (B) in subsection (c)(9)(C), by striking ``food stamp 
     caseload'' and inserting ``the caseload under the food and 
     nutrition program''; and
       (C) in subsection (h)(1)(E)(i), by striking ``food stamp 
     recipients'' and inserting ``households receiving food and 
     nutrition assistance''.
       (9) Section 17 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2026) is amended--
       (A) in subsection (a)(2), by striking ``food stamp 
     benefits'' each place it appears and inserting ``food and 
     nutrition assistance benefits'';
       (B) in subsection (b)--
       (i) in paragraph (1)--

       (I) in subparagraph (A), by striking ``food stamp 
     benefits'' and inserting ``food and nutrition assistance''; 
     and
       (II) in subparagraph (B)--

       (aa) in clause (ii)(II), by striking ``food stamp 
     recipients'' and inserting ``food and nutrition assistance 
     recipients'';
       (bb) in clause (iii)(I), by striking ``the State's food 
     stamp households'' and inserting ``the number of households 
     in the State receiving food and nutrition assistance''; and
       (cc) in clause (iv)(IV)(bb), by striking ``food stamp 
     deductions'' and inserting ``food and nutrition assistance 
     deductions'';
       (ii) in paragraph (2), by striking ``food stamp benefits'' 
     and inserting ``food and nutrition assistance''; and
       (iii) in paragraph (3)--

       (I) in subparagraph (A), by striking ``food stamp 
     employment'' and inserting ``food and nutrition program 
     employment'';
       (II) in subparagraph (B), by striking ``food stamp 
     recipients'' and inserting ``food and nutrition assistance 
     recipients'';
       (III) in subparagraph (C), by striking ``food stamps'' and 
     inserting ``food and nutrition assistance''; and
       (IV) in subparagraph (D), by striking ``food stamp 
     benefits'' and inserting ``food and nutrition assistance 
     benefits'';

       (C) in subsection (c), by striking ``food stamps'' and 
     inserting ``food and nutrition assistance'';
       (D) in subsection (d)--
       (i) in paragraph (1)(B), by striking ``food stamp 
     benefits'' and inserting ``food and nutrition assistance'';
       (ii) in paragraph (2)--

[[Page 29286]]

       (I) in subparagraph (A), by striking ``food stamp 
     allotments'' each place it appears and inserting ``food and 
     nutrition assistance''; and
       (II) in subparagraph (C)(ii), by striking ``food stamp 
     benefit'' and inserting ``food and nutrition assistance''; 
     and

       (iii) in paragraph (3)(E), by striking ``food stamp 
     benefits'' and inserting ``food and nutrition assistance'';
       (E) in subsections (e) and (f), by striking ``food stamp 
     benefits'' each place it appears and inserting ``food and 
     nutrition assistance'';
       (F) in subsection (g), in the first sentence, by striking 
     ``receipt of food stamp'' and inserting ``receipt of food and 
     nutrition assistance''; and
       (G) in subsection (j), by striking ``food stamp agencies'' 
     and inserting ``food and nutrition program agencies''.
       (10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act 
     of 2007 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking 
     ``food stamps'' and inserting ``food and nutrition 
     assistance''.
       (11) Section 21(d)(3) of the Food and Nutrition Act of 2007 
     (7 U.S.C. 2030(d)(3)) is amended by striking ``food stamp 
     benefits'' and inserting ``food and nutrition assistance''.
       (12) Section 22 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2031) is amended--
       (A) in the section heading, by striking ``food stamp 
     portion of minnesota family investment plan'' and inserting 
     ``food and nutrition assistance portion of minnesota family 
     investment project'';
       (B) in subsections (b)(12) and (d)(3), by striking ``the 
     Food Stamp Act, as amended,'' each place it appears and 
     inserting ``this Act''; and
       (C) in subsection (g)(1), by striking ``the Food Stamp Act 
     of 1977 (7 U.S.C. 2011 et seq.)'' and inserting ``this Act''.
       (13) Section 26 of the Food and Nutrition Act of 2007 (7 
     U.S.C. 2035) is amended--
       (A) in the section heading, by striking ``simplified food 
     stamp program'' and inserting ``simplified food and nutrition 
     program''; and
       (B) in subsection (b), by striking ``simplified food stamp 
     program'' and inserting ``simplified food and nutrition 
     program''.
       (b) Conforming Cross-References.--
       (1) In general.--Each provision of law described in 
     paragraph (2) is amended (as applicable)--
       (A) by striking ``food stamp program'' each place it 
     appears and inserting ``food and nutrition program'';
       (B) by striking ``Food Stamp Act of 1977'' each place it 
     appears and inserting ``Food and Nutrition Act of 2007'';
       (C) by striking ``Food Stamp Act'' each place it appears 
     and inserting ``Food and Nutrition Act of 2007'';
       (D) by striking ``food stamp'' each place it appears and 
     inserting ``food and nutrition assistance'';
       (E) by striking ``food stamps'' each place it appears and 
     inserting ``food and nutrition assistance'';
       (F) in each applicable title, subtitle, chapter, 
     subchapter, and section heading, by striking ``FOOD STAMP'' 
     each place it appears and inserting ``FOOD AND NUTRITION 
     ASSISTANCE'';
       (G) in each applicable subsection and appropriations 
     heading, by striking ``FOOD STAMP'' each place it appears and 
     inserting ``FOOD AND NUTRITION ASSISTANCE'';
       (H) in each applicable heading other than a title, 
     subtitle, chapter, subchapter, section, subsection, or 
     appropriations heading, by striking ``food stamp'' each place 
     it appears and inserting ``food and nutrition assistance'';
       (I) in each applicable title, subtitle, chapter, 
     subchapter, and section heading, by striking ``food stamps'' 
     each place it appears and inserting ``food and nutrition 
     assistance'';
       (J) in each applicable subsection and appropriations 
     heading, by striking ``Food Stamps'' each place it appears 
     and inserting ``Food and Nutrition Assistance''; and
       (K) in each applicable heading other than a title, 
     subtitle, chapter, subchapter, section, subsection, or 
     appropriations heading, by striking ``food stamps'' each 
     place it appears and inserting ``food and nutrition 
     assistance''.
       (2) Provisions of law.--The provisions of law referred to 
     in paragraph (1) are the following:
       (A) The Hunger Prevention Act of 1988 (Public Law 100-435; 
     102 Stat. 1645).
       (B) The Food Stamp Program Improvements Act of 1994 (Public 
     Law 103-225; 108 Stat. 106).
       (C) Title IV of the Farm Security and Rural Investment Act 
     of 2002 (Public Law 107-171; 116 Stat. 305).
       (D) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note).
       (E) Section 807(b) of the Stewart B. McKinney Homeless 
     Assistance Act (7 U.S.C. 2014 note; Public Law 100-77).
       (F) The Electronic Benefit Transfer Interoperability and 
     Portability Act of 2000 (Public Law 106-171; 114 Stat. 3).
       (G) Section 502(b) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 2025 note; Public 
     Law 105-185).
       (H) The National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.).
       (I) The Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7501 et seq.).
       (J) The Immigration and Nationality Act (8 U.S.C. 1101 et 
     seq.).
       (K) Section 8119 of the Department of Defense 
     Appropriations Act, 1999 (10 U.S.C. 113 note; Public Law 105-
     262).
       (L) The Armored Car Industry Reciprocity Act of 1993 (15 
     U.S.C. 5901 et seq.).
       (M) Title 18, United States Code.
       (N) The Higher Education Act of 1965 (20 U.S.C. 1001 et 
     seq.).
       (O) The Internal Revenue Code of 1986.
       (P) Section 650 of the Treasury and General Government 
     Appropriations Act, 2000 (26 U.S.C. 7801 note; Public Law 
     106-58).
       (Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.).
       (R) The Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
     seq.).
       (S) Title 31, United States Code.
       (T) Title 37, United States Code.
       (U) The Public Health Service Act (42 U.S.C. 201 et seq.).
       (V) Titles II through XIX of the Social Security Act (42 
     U.S.C. 401 et seq.).
       (W) Section 406 of the Family Support Act of 1988 (Public 
     Law 100-485; 102 Stat. 2400).
       (X) Section 232 of the Social Security Act Amendments of 
     1994 (42 U.S.C. 1314a).
       (Y) The United States Housing Act of 1937 (42 U.S.C. 1437 
     et seq.).
       (Z) The Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.).
       (AA) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.).
       (BB) The Older Americans Act of 1965 (42 U.S.C. 3001 et 
     seq.).
       (CC) Section 208 of the Intergovernmental Personnel Act of 
     1970 (42 U.S.C. 4728).
       (DD) The Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       (EE) The Low-Income Home Energy Assistance Act of 1981 (42 
     U.S.C. 8621 et seq.).
       (FF) Section 658K of the Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858i).
       (GG) The Alaska Native Claims Settlement Act (43 U.S.C. 
     1601 et seq.).
       (HH) Public Law 95-348 (92 Stat. 487).
       (II) The Agriculture and Food Act of 1981 (Public Law 97-
     98; 95 Stat. 1213).
       (JJ) The Disaster Assistance Act of 1988 (Public Law 100-
     387; 102 Stat. 924).
       (KK) The Food, Agriculture, Conservation, and Trade Act of 
     1990 (Public Law 101-624; 104 Stat. 3359).
       (LL) The Cranston-Gonzalez National Affordable Housing Act 
     (Public Law 101-625; 104 Stat. 4079).
       (MM) Section 388 of the Persian Gulf Conflict Supplemental 
     Authorization and Personnel Benefits Act of 1991 (Public Law 
     102-25; 105 Stat. 98).
       (NN) The Food, Agriculture, Conservation, and Trade Act 
     Amendments of 1991 (Public Law 102-237; 105 Stat. 1818).
       (OO) The Act of March 26, 1992 (Public Law 102-265; 106 
     Stat. 90).
       (PP) Public Law 105-379 (112 Stat. 3399).
       (QQ) Section 101(c) of the Emergency Supplemental Act, 2000 
     (Public Law 106-246; 114 Stat. 528).
       (c) References.--Any reference in any Federal, State, 
     tribal, or local law (including regulations) to the ``food 
     stamp program'' established under the Food and Nutrition Act 
     of 2007 (7 U.S.C. 2011 et seq.) shall be considered to be a 
     reference to the ``food and nutrition program'' established 
     under that Act.

     SEC. 4907. EFFECTIVE AND IMPLEMENTATION DATES.

       (a) General Effective Date.--Except as otherwise provided 
     in this title, this title and the amendments made by this 
     title take effect on April 1, 2008.
       (b) Implementation of Improvements to Program Benefits.--
       (1) In general.--A State agency may implement the 
     amendments made by part II of subtitle A beginning on a date 
     (as determined by the State agency) during the period 
     beginning on April 1, 2008, and ending on October 1, 2008.
       (2) Certification period.--At the option of a State agency, 
     the State agency may implement 1 or more of the amendments 
     made by sections 4103 and 4104 for a certification period 
     that begins not earlier than the implementation date 
     determined by the State under paragraph (1).

     SEC. 4908. APPLICATION.

       (a) In General.--Notwithstanding any other provision of 
     this title or amendments made by this title, the amendments 
     made by the provisions described in subsection (b) shall be 
     in effect during the period beginning on the date of 
     enactment of this Act (or such other effective date as is 
     otherwise provided in this title) and ending on September 30, 
     2012.
       (b) Provisions.--The provisions referred to in subsection 
     (a) are--
       (1) section 4101;
       (2) section 4102;
       (3) section 4103;
       (4) section 4104;
       (5) section 4107;
       (6) section 4108;
       (7) section 4109;
       (8) section 4110(a)(2);
       (9) section 4208;
       (10) section 4701(a)(3);

[[Page 29287]]

       (11) section 4801(g); and
       (12) section 4903.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

     SEC. 5001. DIRECT LOANS.

       Section 302 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1922) is amended--
       (1) by striking the section designation and heading and all 
     that follows through ``(a) The Secretary is authorized to'' 
     and inserting the following:

     ``SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.

       ``(a) In General.--The Secretary may''; and
       (2) in subsection (a)(2), by inserting ``, taking into 
     consideration all farming experience of the applicant, 
     without regard to any lapse between farming experiences'' 
     after ``farming operations''.

     SEC. 5002. PURPOSES OF LOANS.

       Section 303(a)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1923(a)(1)) is amended--
       (1) in subparagraph (D), by striking ``or'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(F) refinancing guaranteed farm ownership loans of 
     qualified beginning farmers and ranchers under this subtitle 
     that were used to carry out purposes described in 
     subparagraphs (A) through (E).''.

     SEC. 5003. SOIL AND WATER CONSERVATION AND PROTECTION.

       Section 304 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1924) is amended--
       (1) in subsection (a)--
       (A) in paragraph (4), by inserting ``or conversion to a 
     certified organic farm in accordance with the Organic Foods 
     Production Act of 1990 (7 U.S.C. 6501 et seq.)'' after 
     ``systems'';
       (B) in paragraph (5), by striking ``and'' at the end;
       (C) by redesignating paragraph (6) as paragraph (7); and
       (D) by inserting after paragraph (5) the following:
       ``(6) the implementation of 1 or more practices under the 
     environmental quality section of the comprehensive 
     stewardship incentives program established under subchapter A 
     of chapter 6 of subtitle D of title XII of the Food Security 
     Act of 1985; and''; and
       (2) by striking subsections (b) and (c) and inserting the 
     following:
       ``(b) Priority.--In making or guaranteeing loans under this 
     section, the Secretary shall give priority to--
       ``(1) qualified beginning farmers or ranchers and socially 
     disadvantaged farmers or ranchers;
       ``(2) owners or tenants who use the loans to convert to 
     sustainable or organic agricultural production systems;
       ``(3) producers who use the loans to build conservation 
     structures or establish conservation practices to comply with 
     section 1212 of the Food Security Act of 1985 (16 U.S.C. 
     3812); and
       ``(4) producers who have a certification from the Natural 
     Resources Conservation Service issued pursuant to section 
     1240B(d) of the Food Security Act of 1985.''.

     SEC. 5004. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

       Section 305(a)(2) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1925(a)(2)) is amended by striking 
     ``$200,000'' and inserting ``$300,000''.

     SEC. 5005. DOWN PAYMENT LOAN PROGRAM.

       Section 310E of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1935) is amended--
       (1) in subsection (a)(1), by inserting ``and socially 
     disadvantaged farmers and ranchers'' after ``ranchers'';
       (2) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Principal.--
       ``(A) Purchase price of $500,000 or less.--Each loan made 
     under this section for a purchase price that is $500,000 or 
     less, shall be in an amount that does not exceed 45 percent 
     of the lesser of--
       ``(i) the purchase price; or
       ``(ii) the appraised value of the farm or ranch to be 
     acquired.
       ``(B) Purchase price greater than $500,000.--Each loan made 
     under this section for a purchase price that is greater than 
     $500,000, shall be in an amount that does not exceed 45 
     percent of the lesser of--
       ``(i) $500,000; or
       ``(ii) the appraised value of the farm or ranch to be 
     acquired.'';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Interest rate.--The interest rate on any loan made by 
     the Secretary under this section shall be a rate equal to the 
     greater of--
       ``(A) the difference obtained by subtracting 400 basis 
     points from the interest rate for regular farm ownership 
     loans under this subtitle; or
       ``(B) 2 percent.''; and
       (C) in paragraph (3), by striking ``15'' and inserting 
     ``20'';
       (3) in subsection (c)--
       (A) in paragraph (1), by striking ``10 percent'' and 
     inserting ``5 percent'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2); and
       (D) in subparagraph (B) of paragraph (2) (as so 
     redesignated), by striking ``15-year'' and inserting ``20-
     year''; and
       (4) in subsection (d)--
       (A) in paragraph (3), by striking the ``and'' at the end;
       (B) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(5) establish annual performance goals to promote the use 
     of the down payment loan program and other joint financing 
     participation loans as the preferred choice for direct real 
     estate loans made by any lender to a qualified beginning 
     farmer or rancher or socially disadvantaged farmer or 
     rancher.''.

     SEC. 5006. BEGINNING FARMER OR RANCHER CONTRACT LAND SALES 
                   PROGRAM.

       Section 310F of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1936) is amended to read as follows:

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

       ``(a) In General.--Subject to subsection (c), the Secretary 
     shall, in accordance with each condition described in 
     subsection (b), provide a prompt payment guarantee for any 
     loan made by a private seller of farmland or ranch land to a 
     qualified beginning farmer or rancher on a contract land sale 
     basis.
       ``(b) Conditions for Guarantee.--To receive a guarantee for 
     a loan by the Secretary under subsection (a)--
       ``(1) the qualified beginning farmer or rancher shall--
       ``(A) on the date on which the contract land sale that is 
     the subject of the loan is complete, own and operate the 
     farmland or ranch land that is the subject of the contract 
     land sale;
       ``(B) on the date on which the contract land sale that is 
     the subject of the loan is commenced--
       ``(i) have a credit history that--

       ``(I) includes a record of satisfactory debt repayment, as 
     determined by the Secretary; and
       ``(II) is acceptable to the Secretary; and

       ``(ii) demonstrate to the Secretary that the qualified 
     beginning farmer or rancher is unable to obtain sufficient 
     credit without a guarantee to finance any actual need of the 
     qualified beginning farmer or rancher at a reasonable rate or 
     term;
       ``(2) the loan made by the private seller of farmland or 
     ranch land to the qualified beginning farmer or rancher on a 
     contract land sale basis shall meet applicable underwriting 
     criteria, as determined by the Secretary; and
       ``(3) to carry out the loan--
       ``(A) a commercial lending institution shall agree to serve 
     as an escrow agent; or
       ``(B) the private seller of farmland or ranch land, in 
     cooperation with the qualified beginning farmer or rancher, 
     shall use an appropriate alternate arrangement, as determined 
     by the Secretary.
       ``(c) Limitations.--
       ``(1) Down payment.--The Secretary shall not guarantee a 
     loan made by a private seller of farmland or ranch land to a 
     qualified beginning farmer or rancher under subsection (a) if 
     the contribution of the qualified beginning farmer or rancher 
     to the down payment for the farmland or ranch land that is 
     the subject of the contract land sale would be an amount less 
     than 5 percent of the purchase price of the farmland or ranch 
     land.
       ``(2) Maximum purchase price.--The Secretary shall not 
     guarantee a loan made by a private seller of farmland or 
     ranch land to a qualified beginning farmer or rancher under 
     subsection (a) if the purchase price or the appraisal value 
     of the farmland or ranch land that is the subject of the 
     contract land sale is an amount greater than $500,000.
       ``(d) Period of Guarantee.--The Secretary shall guarantee a 
     loan made by a private seller of farmland or ranch land to a 
     qualified beginning farmer or rancher under subsection (a) 
     for a 10-year period beginning on the date on which the 
     Secretary guarantees the loan.
       ``(e) Prompt Payment Guarantee.--The Secretary shall 
     provide to a private seller of farmland or ranch land who 
     makes a loan to a qualified beginning farmer or rancher that 
     is guaranteed by the Secretary, a prompt payment guarantee, 
     which shall cover--
       ``(1) 3 amortized annual installments; or
       ``(2) an amount equal to 3 annual installments (including 
     an amount equal to the total cost of any tax and insurance 
     incurred during the period covered by the annual 
     installments).''.

                      Subtitle B--Operating Loans

     SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.

       Section 311 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1941) is amended--
       (1) by striking the section designation and all that 
     follows through ``(a) The Secretary is authorized to'' and 
     inserting the following:

     ``SEC. 311. PERSONS ELIGIBLE FOR LOANS.

       ``(a) In General.--The Secretary may'';
       (2) in subsection (a)(2), by inserting ``, taking into 
     consideration all farming experience of the applicant, 
     without regard to any lapse between farming experiences'' 
     after ``farming operations''; and
       (3) in subsection (c)(1)(C), by striking ``6'' and 
     inserting ``7''.

[[Page 29288]]



     SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

       Section 313(a)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1943(a)(1)) is amended by striking 
     ``$200,000'' and inserting ``$300,000''.

     SEC. 5103. LIMITATION ON PERIOD BORROWERS ARE ELIGIBLE FOR 
                   GUARANTEED ASSISTANCE.

       Section 319 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1949) is repealed.

                 Subtitle C--Administrative Provisions

     SEC. 5201. BEGINNING FARMER AND RANCHER INDIVIDUAL 
                   DEVELOPMENT ACCOUNTS PILOT PROGRAM.

       The Consolidated Farm and Rural Development Act is amended 
     by adding after section 333A (7 U.S.C. 1983a) the following:

     ``SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL 
                   DEVELOPMENT ACCOUNTS PILOT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Demonstration program.--The term `demonstration 
     program' means a demonstration program carried out by a 
     qualified entity under the pilot program established in 
     subsection (b)(1).
       ``(2) Eligible participant.--The term `eligible 
     participant' means a qualified beginning farmer or rancher 
     that--
       ``(A) lacks significant financial resources or assets; and
       ``(B) has an income that is less than--
       ``(i) 80 percent of the median income of the area in which 
     the eligible participant is located; or
       ``(ii) 200 percent of the most recent annual Federal 
     Poverty Income Guidelines published by the Department of 
     Health and Human Services for that area.
       ``(3) Individual development account.--The term `individual 
     development account' means a savings account described in 
     subsection (b)(4)(A).
       ``(4) Qualified entity.--
       ``(A) In general.--The term `qualified entity' means--
       ``(i) 1 or more organizations--

       ``(I) described in section 501(c)(3) of the Internal 
     Revenue Code of 1986; and
       ``(II) exempt from taxation under section 501(a) of such 
     Code; or

       ``(ii) a State, local, or tribal government submitting an 
     application jointly with an organization described in clause 
     (i).
       ``(B) No prohibition on collaboration.--An organization 
     described in subparagraph (A)(i) may collaborate with a 
     financial institution or for-profit community development 
     corporation to carry out the purposes of this section.
       ``(b) Pilot Program.--
       ``(1) In general.--The Secretary shall establish a pilot 
     program to be known as the `New Farmer Individual Development 
     Accounts Pilot Program' under which the Secretary shall work 
     through qualified entities to establish demonstration 
     programs--
       ``(A) of at least 5 years in duration; and
       ``(B) in at least 15 States.
       ``(2) Coordination.--The Secretary shall operate the pilot 
     program through, and in coordination with the farm loan 
     programs of, the Farm Service Agency.
       ``(3) Reserve funds.--
       ``(A) In general.--Each demonstration program shall 
     establish a reserve fund consisting of a non-Federal match of 
     25 percent of the total amount of the grant awarded to the 
     demonstration program under this section.
       ``(B) Federal funds.--After a demonstration program has 
     deposited in the reserve fund the non-Federal matching funds 
     described in subparagraph (A), the Secretary shall provide to 
     the demonstration program for deposit in the reserve fund the 
     total amount of the grant awarded under this section.
       ``(C) Use of funds.--Of funds deposited in a reserve fund 
     under subparagraphs (A) and (B), a demonstration program--
       ``(i) may use up to 20 percent for administrative expenses; 
     and
       ``(ii) shall use the remainder to make matching awards 
     described in paragraph (4)(B)(ii)(I).
       ``(D) Interest.--Any interest earned on amounts in a 
     reserve fund established under subparagraph (A) may be used 
     as additional matching funds for, or to administer, the 
     demonstration program.
       ``(E) Guidance.--The Secretary shall implement guidance 
     regarding the investment requirements of reserve funds 
     established under this paragraph.
       ``(4) Individual development accounts.--
       ``(A) In general.--A qualified entity receiving a grant 
     under this section shall establish and administer an 
     individual development account for each eligible participant.
       ``(B) Contract requirements.--To be eligible to receive 
     funds under this section from a qualified entity, each 
     eligible participant shall enter into a contract with a 
     qualified entity under which--
       ``(i) the eligible participant shall agree--

       ``(I) to deposit a certain amount of funds of the eligible 
     participant in a personal savings account, as prescribed by 
     the contractual agreement between the eligible participant 
     and the qualified entity; and
       ``(II) to use the funds described in subclause (I) only for 
     1 or more eligible expenditures described in paragraph 
     (5)(A); and

       ``(ii) the qualified entity shall agree--

       ``(I) to deposit not later than 1 month after a deposit 
     described in clause (i)(I) at least a 100-percent, and up to 
     a 300-percent, match of that amount into the individual 
     development account established for the eligible participant;
       ``(II) with uses of funds proposed by the eligible 
     participant; and
       ``(III) to complete qualified financial training.

       ``(C) Limitation.--
       ``(i) In general.--A qualified entity administering a 
     demonstration program may provide not more than $9,000 for 
     each fiscal year in matching funds to any eligible 
     participant.
       ``(ii) Treatment of amount.--An amount provided under 
     clause (i) shall not be considered to be a gift or loan for 
     mortgage purposes.
       ``(D) Interest.--Any interest earned on amounts in an 
     individual development account shall be compounded with 
     amounts otherwise deposited in the individual development 
     account.
       ``(5) Eligible expenditures.--
       ``(A) In general.--An eligible expenditure described in 
     this subparagraph is an expenditure--
       ``(i) to purchase farmland or make a down payment on an 
     accepted purchase offer for farmland;
       ``(ii) to make mortgage payments for up to 180 days after 
     the date of purchase of farmland;
       ``(iii) to purchase farm equipment or production, storage, 
     or marketing infrastructure or buy into an existing value-
     added business;
       ``(iv) to purchase breeding stock or fruit or nut trees or 
     trees to harvest for timber;
       ``(v) to pay training or mentorship expenses to facilitate 
     specific entrepreneurial agricultural activities; and
       ``(vi) for other similar expenditures, as determined by the 
     Secretary.
       ``(B) Timing.--
       ``(i) In general.--An eligible expenditure may be made at 
     any time during the 2-year period beginning on the date on 
     which the last matching funds are provided under paragraph 
     (4)(B)(ii)(I).
       ``(ii) Unexpended funds.--Funds remaining in an individual 
     development account after the period described in clause (i) 
     shall revert to the reserve fund of the demonstration 
     program.
       ``(C) Prohibition.--An eligible participant that uses funds 
     in an individual development account for an eligible 
     expenditure described in subparagraph (A)(viii) shall not be 
     eligible to receive funds for a substantially similar purpose 
     (as determined by the Secretary) under the national organic 
     program established under the Organic Foods Production Act of 
     1990 (7 U.S.C. 6501 et seq.).
       ``(c) Applications.--
       ``(1) Announcement of demonstration programs.--Not later 
     than 180 days after the date of enactment of this section, 
     the Secretary shall--
       ``(A) publicly announce the availability of funding under 
     this section for demonstration programs; and
       ``(B) ensure that applications to carry out demonstration 
     programs are widely available to qualified entities.
       ``(2) Submission.--Not later than 270 days after the date 
     of enactment of this section, a qualified entity may submit 
     to the Secretary an application to carry out a demonstration 
     program.
       ``(3) Criteria.--In considering whether to approve an 
     application to carry out a demonstration program, the 
     Secretary shall assess--
       ``(A) the degree to which the demonstration program 
     described in the application is likely to aid eligible 
     participants in successfully pursuing new farming 
     opportunities;
       ``(B) the experience and ability of the qualified entity to 
     responsibly administer the project;
       ``(C) the experience and ability of the qualified entity in 
     recruiting, educating, and assisting eligible participants to 
     increase economic independence and pursue or advance farming 
     opportunities;
       ``(D) the aggregate amount of direct funds from non-Federal 
     public sector and private sources that are formally committed 
     to the demonstration program as matching contributions;
       ``(E) the adequacy of the plan for providing information 
     relevant to an evaluation of the demonstration program; and
       ``(F) such other factors as the Secretary considers to be 
     appropriate.
       ``(4) Preferences.--In considering an application to 
     conduct a demonstration program under this part, the 
     Secretary shall give preference to an application from a 
     qualified entity that demonstrates--
       ``(A) a track record of serving clients targeted by the 
     program, including, as appropriate, socially disadvantaged 
     farmers and ranchers; and
       ``(B) expertise in dealing with financial management 
     aspects of farming.
       ``(5) Approval.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this section, in accordance with this section, 
     the Secretary shall, on a competitive basis, approve such 
     applications to conduct demonstration

[[Page 29289]]

     programs as the Secretary considers appropriate.
       ``(B) Diversity.--The Secretary shall ensure, to the 
     maximum extent practicable, that approved applications 
     involve demonstration programs for a range of geographic 
     areas and diverse populations.
       ``(6) Term of authority.--If the Secretary approves an 
     application to carry out a demonstration program, the 
     Secretary shall authorize the applying qualified entity to 
     carry out the project for a period of 5 years, plus an 
     additional 2 years for the making of eligible expenditures in 
     accordance with subsection (b)(5)(B).
       ``(d) Grant Authority.--
       ``(1) In general.--For each year during which a 
     demonstration program is carried out under this section, the 
     Secretary shall make a grant to the qualified entity 
     authorized to carry out the demonstration program.
       ``(2) Maximum amount of grants.--The aggregate amount of 
     grant funds provided to a demonstration program carried out 
     under this section shall not exceed $300,000.
       ``(e) Reports.--
       ``(1) Annual progress reports.--
       ``(A) In general.--Not later than 60 days after the end of 
     the calendar year in which the Secretary authorizes a 
     qualified entity to carry out a demonstration program, and 
     annually thereafter until the conclusion of the demonstration 
     program, the qualified entity shall prepare an annual report 
     that includes, for the period covered by the report--
       ``(i) an evaluation of the progress of the demonstration 
     program;
       ``(ii) information about the demonstration program and 
     eligible participants;
       ``(iii) the number and characteristics of individuals that 
     have made 1 or more deposits into an individual development 
     account;
       ``(iv) the amounts in the reserve fund established with 
     respect to the program;
       ``(v) the amounts deposited in the individual development 
     accounts;
       ``(vi) the amounts withdrawn from the individual 
     development accounts and the purposes for which the amounts 
     were withdrawn;
       ``(vii) the balances remaining in the individual 
     development accounts;
       ``(viii) such other information as the Secretary may 
     require.
       ``(B) Submission of reports.--A qualified entity shall 
     submit each report required under subparagraph (A) to the 
     Secretary.
       ``(2) Reports by the secretary.--Not later than 1 year 
     after the date on which all demonstration programs under this 
     section are concluded, the Secretary shall submit to Congress 
     a final report that describes the results and findings of all 
     reports and evaluations carried out under this section.
       ``(f) Regulations.--In carrying out this section, the 
     Secretary may promulgate regulations to ensure that the 
     program includes provisions for--
       ``(1) the termination of demonstration programs;
       ``(2) control of the reserve funds in the case of such a 
     termination;
       ``(3) transfer of demonstration programs to other qualified 
     entities; and
       ``(4) remissions from a reserve fund to the Secretary in a 
     case in which a demonstration program is terminated without 
     transfer to a new qualified entity.
       ``(g) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2008 through 2012.
       ``(2) Administration and training.--Of the total funds made 
     available under paragraph (1) and in addition to any other 
     available funds, not more than 10 percent may be used by the 
     Secretary--
       ``(A) to administer the pilot program; and
       ``(B) to provide training, or hire 1 or more consultants to 
     provide training, to instruct qualified entities in carrying 
     out demonstration programs, including payment of reasonable 
     costs incurred with respect to that training for--
       ``(i) staff or consultant travel;
       ``(ii) lodging;
       ``(iii) meals; and
       ``(iv) materials.''.

     SEC. 5202. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES.

       (a) Inventory Sales Preferences.--Section 335(c) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1985(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B)--
       (i) in the subparagraph heading, by inserting ``; socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (ii) in clause (i), by inserting `` or a socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (iii) in clause (ii), by inserting ``or socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (iv) in clause (iii), by inserting ``or a socially 
     disadvantaged farmer or rancher'' after ``or rancher''; and
       (v) in clause (iv), by inserting ``and socially 
     disadvantaged farmers and ranchers'' after ``and ranchers''; 
     and
       (B) in subparagraph (C), by inserting ``or a socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (2) in paragraph (5)(B)--
       (A) in clause (i)--
       (i) in the clause heading, by inserting ``; socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (ii) by inserting ``or a socially disadvantaged farmer or 
     rancher'' after ``a beginning farmer or rancher''; and
       (iii) by inserting ``or the socially disadvantaged farmer 
     or rancher'' after ``the beginning farmer or rancher''; and
       (B) in clause (ii)--
       (i) in the matter preceding subclause (I), by inserting 
     ``or a socially disadvantaged farmer or rancher'' after ``or 
     rancher''; and
       (ii) in subclause (II), by inserting ``or the socially 
     disadvantaged farmer or rancher'' after ``or rancher''; and
       (3) in paragraph (6)--
       (A) in subparagraph (A), by inserting ``or a socially 
     disadvantaged farmer or rancher'' after ``or rancher''; and
       (B) in subparagraph (C)--
       (i) in clause (i)(I), by inserting ``and socially 
     disadvantaged farmers and ranchers'' after ``and ranchers''; 
     and
       (ii) in clause (ii), by inserting ``or socially 
     disadvantaged farmers or ranchers'' after ``or ranchers''.
       (b) Loan Fund Set-Asides.--Section 346(b)(2) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1994(b)(2)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i)--
       (i) in subclause (I), by striking ``70 percent'' and 
     inserting ``an amount that is not less than 75 percent of the 
     total amount''; and
       (ii) in subclause (II)--

       (I) in the subclause heading, by inserting ``; joint 
     financing arrangements'' after ``payment loans'';
       (II) by striking ``60 percent'' and inserting ``an amount 
     not less than \2/3\ of the amount''; and
       (III) by inserting ``and joint financing arrangements under 
     section 307(a)(3)(D)'' after ``section 310E''; and

       (B) in clause (ii)(III), by striking ``2003 through 2007, 
     35 percent'' and inserting ``2008 through 2012, an amount 
     that is not less than 50 percent of the total amount''; and
       (2) in subparagraph (B)(i), by striking ``25 percent'' and 
     inserting ``an amount that is not less than 40 percent of the 
     total amount''.

     SEC. 5203. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
                   OF CREDIT.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act is amended by inserting after section 344 (7 U.S.C. 1992) 
     the following:

     ``SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
                   OF CREDIT.

       ``(a) In General.--In making or insuring a farm loan under 
     subtitle A or B, the Secretary shall establish a plan and 
     promulgate regulations (including performance criteria) that 
     promote the goal of transitioning borrowers to private 
     commercial credit and other sources of credit in the shortest 
     practicable period of time.
       ``(b) Coordination.--In carrying out this section, the 
     Secretary shall integrate and coordinate the transition 
     policy described in subsection (a) with--
       ``(1) the borrower training program established by section 
     359;
       ``(2) the loan assessment process established by section 
     360;
       ``(3) the supervised credit requirement established by 
     section 361;
       ``(4) the market placement program established by section 
     362; and
       ``(5) other appropriate programs and authorities, as 
     determined by the Secretary.''.

     SEC. 5204. LOAN AUTHORIZATION LEVELS.

       Section 346(b)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1994(b)(1)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``$3,796,000,000 for each of fiscal years 2003 through 2007'' 
     and inserting ``$4,226,000,000 for each of fiscal years 2008 
     through 2012''; and
       (2) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking 
     ``$770,000,000'' and inserting ``$1,200,000,000'';
       (B) in clause (i), by striking ``$205,000,000'' and 
     inserting ``$350,000,000''; and
       (C) in clause (ii), by striking ``$565,000,000'' and 
     inserting ``$850,000,000''.

     SEC. 5205. INTEREST RATE REDUCTION PROGRAM.

       Section 351(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1999(a)) is amended--
       (1) in the subsection heading, by inserting ``and 
     Availability'' after ``Establishment'';
       (2) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) Establishment.--The Secretary''; and
       (3) by adding at the end the following:
       ``(2) Availability.--The program established under 
     paragraph (1) shall be available with respect to new 
     guaranteed operating loans or guaranteed operating loans 
     restructured under this title after the date of enactment of 
     this paragraph that meet the requirements of subsection 
     (b).''.

[[Page 29290]]



     SEC. 5206. DEFERRAL OF SHARED APPRECIATION RECAPTURE 
                   AMORTIZATION.

       Section 353(e)(7)(D) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2001(e)(7)(D)) is amended--
       (1) in the subparagraph heading, by inserting ``and 
     deferral'' after ``Reamortization''; and
       (2) in clause (ii)--
       (A) by redesignating subclause (II) as subclause (III); and
       (B) by inserting after subclause (I) the following:

       ``(II) Term of deferral.--The term of a deferral under this 
     subparagraph shall not exceed 1 year.''.

     SEC. 5207. RURAL DEVELOPMENT, HOUSING, AND FARM LOAN PROGRAM 
                   ACTIVITIES.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act is amended by inserting after section 364 (7 U.S.C. 
     2006f) the following:

     ``SEC. 365. RURAL DEVELOPMENT, HOUSING, AND FARM LOAN PROGRAM 
                   ACTIVITIES.

       ``The Secretary may not complete a study of, or enter into 
     a contract with a private party to carry out, without 
     specific authorization in a subsequent Act of Congress, a 
     competitive sourcing activity of the Secretary, including 
     support personnel of the Department of Agriculture, relating 
     to rural development, housing, or farm loan programs.''.

                        Subtitle D--Farm Credit

     SEC. 5301. AUTHORITY TO PASS ALONG COST OF INSURANCE 
                   PREMIUMS.

       (a) In General.--Section 1.12(b) of the Farm Credit Act of 
     1971 (12 U.S.C. 2020(b)) is amended--
       (1) in the first sentence, by striking ``Each Farm'' and 
     inserting the following;
       ``(1) In general.--Each Farm''; and
       (2) by striking the second sentence and inserting the 
     following:
       ``(2) Computation.--The assessment on any association or 
     other financing institution described in paragraph (1) for 
     any period shall be computed in an equitable manner, as 
     determined by the Corporation.''.
       (b) Rules and Regulations.--Section 5.58(10) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2277a-7(10)) is amended by 
     inserting ``and section 1.12(b)'' after ``part''.

     SEC. 5302. TECHNICAL CORRECTION.

       Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C. 
     2124(b)) is amended in the first sentence by striking ``per'' 
     and inserting ``par''.

     SEC. 5303. CONFIRMATION OF CHAIRMAN.

       Section 5.8(a) of the Farm Credit Act of 1971 (12 U.S.C. 
     2242(a)) is amended in the fifth sentence by inserting ``by 
     and with the advice and consent of the Senate,'' after 
     ``designated by the President,''.

     SEC. 5304. PREMIUMS.

       (a) Amount in Fund Not Exceeding Secure Base Amount.--
     Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 
     2277a--4(a)) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``paragraph (2)'' and inserting ``paragraph 
     (3)''; and
       (ii) by striking ``annual'' ; and
       (B) by striking subparagraphs (A) through (D) and inserting 
     the following:
       ``(A) the average outstanding insured obligations issued by 
     the bank for the calendar year, after deducting from the 
     obligations the percentages of the guaranteed portions of 
     loans and investments described in paragraph (2), multiplied 
     by 0.0020; and
       ``(B) the product obtained by multiplying--
       ``(i) the sum of--

       ``(I) the average principal outstanding for the calendar 
     year on loans made by the bank that are in nonaccrual status; 
     and
       ``(II) the average amount outstanding for the calendar year 
     of other-than-temporarily impaired investments made by the 
     bank; by

       ``(ii) 0.0010.'';
       (2) by striking paragraph (4);
       (3) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) Deductions from average outstanding insured 
     obligations.--The average outstanding insured obligations 
     issued by the bank for the calendar year referred to in 
     paragraph (1)(A) shall be reduced by deducting from the 
     obligations the sum of (as determined by the Corporation)--
       ``(A) 90 percent of each of --
       ``(i) the average principal outstanding for the calendar 
     year on the guaranteed portions of Federal government-
     guaranteed loans made by the bank that are in accrual status; 
     and
       ``(ii) the average amount outstanding for the calendar year 
     of the guaranteed portions of Federal government-guaranteed 
     investments made by the bank that are not permanently 
     impaired; and
       ``(B) 80 percent of each of--
       ``(i) the average principal outstanding for the calendar 
     year on the guaranteed portions of State government-
     guaranteed loans made by the bank that are in accrual status; 
     and
       ``(ii) the average amount outstanding for the calendar year 
     of the guaranteed portions of State government-guaranteed 
     investments made by the bank that are not permanently 
     impaired.'';
       (5) in paragraph (3) (as redesignated by paragraph (3)), by 
     striking ``annual''; and
       (6) in paragraph (4) (as redesignated by paragraph (3))--
       (A) in the paragraph heading, by inserting ``or 
     investments'' after ``loans''; and
       (B) in the matter preceding subparagraph (A), by striking 
     ``As used'' and all that follows through ``guaranteed--'' and 
     inserting ``In this section, the term ``government-
     guaranteed'', when applied to a loan or an investment, means 
     a loan, credit, or investment, or portion of a loan, credit, 
     or investments, that is guaranteed--''.
       (b) Amount in Fund Exceeding Secure Base Amount.--Section 
     5.55(b) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(b)) 
     is amended by striking ``annual''.
       (c) Secure Base Amount.--Section 5.55(c) of the Farm Credit 
     Act of 1971 (12 U.S.C. 2277a-4(c)) is amended--
       (1) by striking ``For purposes'' and inserting the 
     following:
       ``(1) In general.--For purposes'';
       (2) by striking ``(adjusted downward'' and all that follows 
     through ``by the Corporation)'' and inserting ``(as adjusted 
     under paragraph (2))''; and
       (3) by adding at the end the following:
       ``(2) Adjustment.--The aggregate outstanding insured 
     obligations of all insured System banks under paragraph (1) 
     shall be adjusted downward to exclude an amount equal to the 
     sum of (as determined by the Corporation)--
       ``(A) 90 percent of each of--
       ``(i) the guaranteed portions of principal outstanding on 
     Federal government-guaranteed loans in accrual status made by 
     the banks; and
       ``(ii) the guaranteed portions of the amount of Federal 
     government-guaranteed investments made by the banks that are 
     not permanently impaired; and
       ``(B) 80 percent of each of--
       ``(i) the guaranteed portions of principal outstanding on 
     State government-guaranteed loans in accrual status made by 
     the banks; and
       ``(ii) the guaranteed portions of the amount of State 
     government-guaranteed investments made by the banks that are 
     not permanently impaired.''.
       (d) Determination of Loan and Investment Amounts.--Section 
     5.55(d) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(d)) 
     is amended--
       (1) in the paragraph heading, by striking ``Principal 
     Outstanding'' and inserting ``Loan and Investment Amounts'';
       (2) in the matter preceding paragraph (1), by striking 
     ``For the purpose'' and all that follows through ``made--'' 
     and inserting ``For the purpose of subsections (a) and (c), 
     the principal outstanding on all loans made by an insured 
     System bank, and the amount outstanding on all investments 
     made by an insured System bank, shall be determined based 
     on--'';
       (3) by inserting ``all loans or investments made'' before 
     ``by'' the first place it appears in each of paragraph (1), 
     (2), and (3); and
       (4) in paragraphs (1) and (2), by inserting ``or 
     investments'' after ``that is able to make such loans'' each 
     place it appears.
       (e) Allocation to System Institutions of Excess Reserves.--
     Section 5.55(e) of the Farm Credit Act of 1971 (12 U.S.C. 
     2277a-4(e)) is amended--
       (1) in paragraph (3), by striking ``the average secure base 
     amount for the calendar year (as calculated on an average 
     daily balance basis)'' and inserting ``the secure base 
     amount'';
       (2) in paragraph (4), by striking subparagraph (B) and 
     inserting the following:
       ``(B) there shall be credited to the Allocated Insurance 
     Reserves Account of each insured System bank an amount that 
     bears the same ratio to the total amount (less any amount 
     credited under subparagraph (A)) as--
       ``(i) the average principal outstanding for the calendar 
     year on insured obligations issued by the bank (after 
     deducting from the principal the percentages of the 
     guaranteed portions of loans and investments described in 
     subsection (a)(2)); bears to
       ``(ii) the average principal outstanding for the calendar 
     year on insured obligations issued by all insured System 
     banks (after deducting from the principal the percentages of 
     the guaranteed portions of loans and investments described in 
     subsection (a)(2)).''; and
       (3) in paragraph (6)--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i), by striking 
     ``beginning more'' and all that follows through ``January 1, 
     2005'';
       (ii) by striking clause (i) and inserting the following:
       ``(i) subject to subparagraph (D), pay to each insured 
     System bank, in a manner determined by the Corporation, an 
     amount equal to the balance in the Allocated Insurance 
     Reserves Account of the System bank; and''; and
       (iii) in clause (ii)--

       (I) by striking ``subparagraphs (C), (E), and (F)'' and 
     inserting ``subparagraphs (C) and (E)''; and
       (II) by striking ``, of the lesser of--'' and all that 
     follows through the end of subclause (II)

[[Page 29291]]

     and inserting ``at the time of the termination of the 
     Financial Assistance Corporation, of the balance in the 
     Allocated Insurance Reserves Account established under 
     paragraph (1)(B).'';

       (B) in subparagraph (C)--
       (i) in clause (i), by striking ``(in addition to the 
     amounts described in subparagraph (F)(ii))''; and
       (ii) by striking clause (ii) and inserting the following:
       ``(iii) Termination of account.--On disbursement of amount 
     equal to $56,000,000, the Corporation shall--

       ``(I) close the Account established under paragraph (1)(B); 
     and
       ``(II) transfer any remaining funds in the Account to the 
     remaining Allocated Insurance Reserves Accounts in accordance 
     with paragraph (4)(B) for the calendar year in which the 
     transfer occurs.''.

       (C) by striking subparagraph (F).

     SEC. 5305. CERTIFICATION OF PREMIUMS.

       (a) Filing Certified Statement.--Section 5.56 of the Farm 
     Credit Act of 1971 (12 U.S.C. 2277a-5) is amended by striking 
     subsection (a) and inserting the following:
       ``(a) Filing Certified Statement.--On a date to be 
     determined in the sole discretion of the Board of Directors 
     of the Corporation, each insured System bank that became 
     insured before the beginning of the period for which premiums 
     are being assessed (referred to in this section as the 
     `period') shall file with the Corporation a certified 
     statement showing--
       ``(1) the average outstanding insured obligations for the 
     period issued by the bank;
       ``(2)(A) the average principal outstanding for the period 
     on the guaranteed portion of Federal government-guaranteed 
     loans that are in accrual status; and
       ``(B) the average amount outstanding for the period of 
     Federal government-guaranteed investments that are not 
     permanently impaired (as defined in section 5.55(a)(4));
       ``(3)(A) the average principal outstanding for the period 
     on State government-guaranteed loans that are in accrual 
     status; and
       ``(B) the average amount outstanding for the period of 
     State government-guaranteed investments that are not 
     permanently impaired (as defined in section 5.55(a)(4));
       ``(4)(A) the average principal outstanding for the period 
     on loans that are in nonaccrual status; and
       ``(B) the average amount outstanding for the period of 
     other-than-temporarily impaired investments; and
       ``(5) the amount of the premium due the Corporation from 
     the bank for the period.''.
       (b) Premium Payments.--Section 5.56 of the Farm Credit Act 
     of 1971 (12 U.S.C. 2277a-5(c)) is amended by striking 
     subsection (c) and inserting the following:
       ``(c) Premium Payments.--
       ``(1) In general.--Except as provided in paragraph (2), 
     each insured System bank shall pay to the Corporation the 
     premium payments required under subsection (a), not more 
     frequently than once in each calendar quarter, in such manner 
     and at such 1 or more times as the Board of Directors shall 
     prescribe.
       ``(2) Premium amount.--The amount of the premium shall be 
     established not later than 60 days after filing the certified 
     statement specifying the amount of the premium.''.
       (c) Subsequent Premium Payments.--Section 5.56 of the Farm 
     Credit Act of 1971 (12 U.S.C. 2277a-5) is amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsection (e) as subsection (d).

     SEC. 5306. RURAL UTILITY LOANS.

       (a) Definition of Qualified Loan.--Section 8.0(9) of the 
     Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended--
       (1) in subparagraph (A)(iii), by striking ``or'' at the 
     end;
       (2) in subparagraph (B)(ii), by striking the period at the 
     end and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) that is a loan, or an interest in a loan, for an 
     electric or telephone facility by a cooperative lender to a 
     borrower that has received, or is eligible to receive, a loan 
     under the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
     seq.).''.
       (b) Guarantee of Qualified Loans.--Section 8.6(a)(1) of the 
     Farm Credit Act of 1971 (12 U.S.C. 2279aa-6(a)(1)) is amended 
     by inserting ``applicable'' before ``standards'' each place 
     it appears in subparagraphs (A) and (B)(i).
       (c) Standards for Qualified Loans.--Section 8.8 of the Farm 
     Credit Act of 1971 (12 U.S.C. 2279aa-8) is amended--
       (1) in subsection (a)--
       (A) by striking the first sentence and inserting the 
     following:
       ``(1) In general.--The Corporation shall establish 
     underwriting, security appraisal, and repayment standards for 
     qualified loans taking into account the nature, risk profile, 
     and other differences between different categories of 
     qualified loans.
       ``(2) Supervision, examination, and report of condition.--
     The standards shall be subject to the authorities of the Farm 
     Credit Administration under section 8.11.''; and
       (B) in the last sentence, by striking ``In establishing'' 
     and inserting the following:
       ``(3) Mortgage loans.--In establishing'';
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``with respect to loans secured by agricultural real estate'' 
     after ``subsection (a)''; and
       (B) in paragraph (5)--
       (i) by striking ``borrower'' the first place it appears and 
     inserting ``farmer or rancher''; and
       (ii) by striking ``site'' and inserting ``farm or ranch'';
       (3) in subsection (c)(1), by inserting ``secured by 
     agricultural real estate'' after ``A loan'';
       (4) by striking subsection (d); and
       (5) by redesignating subsection (e) as subsection (d).
       (d) Risk-Based Capital Levels.--Section 8.32(a)(1) of the 
     Farm Credit Act of 1971 (12 U.S.C. 2279bb-1(a)(1)) is 
     amended--
       (1) by striking ``With respect'' and inserting the 
     following:
       ``(A) In general.--With respect''; and
       (2) by adding at the end the following:
       ``(B) Rural utility loans.--With respect to securities 
     representing an interest in, or obligation backed by, a pool 
     of qualified loans described in section 8.0(9)(C) owned or 
     guaranteed by the Corporation, losses occur at a rate of 
     default and severity reasonably related to risks in electric 
     and telephone facility loans (as applicable), as determined 
     by the Director.''.

     SEC. 5307. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN 
                   DISTRICT ASSOCIATIONS.

       (a) In General.--The Farm Credit Act of 1971 is amended by 
     inserting after section 7.6 (12 U.S.C. 2279b) the following:

     ``SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN 
                   DISTRICT ASSOCIATIONS.

       ``(a) Equalization of Loan-Making Powers.--
       ``(1) In general.--
       ``(A) Federal land bank or credit association.--Subject to 
     paragraph (2), any association that under its charter has 
     title II lending authority and that owns, is owned by, or is 
     under common ownership with, a Federal land bank association 
     authorized as of January 1, 2007, to make long-term loans 
     under title I in the geographic area described in subsection 
     (b) may make short- and intermediate-term loans and otherwise 
     operate as a production credit association under title II in 
     the geographic area.
       ``(B) Production credit associations.--Subject to paragraph 
     (2), any association that under its charter has title I 
     lending authority and that owns, is owned by, or is under 
     common ownership with, a production credit association 
     authorized as of January 1, 2007, to make short- and 
     intermediate-term loans under title II in the geographic area 
     described in subsection (b) may make long-term loans and 
     otherwise operate as a Federal land bank association or 
     Federal land credit association under title I in the 
     geographic area.
       ``(C) Farm credit bank.--The Farm Credit Bank with which 
     any association had a written financing agreement as of 
     January 1, 2007, may make loans and extend other similar 
     financial assistance with respect to, and may purchase, any 
     loans made under the new authority provided under 
     subparagraph (A) or (B) by an association that owns, is owned 
     by, or is under common ownership with, the association.
       ``(2) Required approvals.--An association may exercise the 
     additional authority provided for in paragraph (1) only after 
     the exercise of the authority is approved by--
       ``(A) the board of directors of the association; and
       ``(B) a majority of the voting stockholders of the 
     association (or, if the association is a subsidiary of 
     another association, the voting stockholders of the parent 
     association) voting, in person or by proxy, at a duly 
     authorized meeting of stockholders.
       ``(b) Applicability.--This section applies only to 
     associations the chartered territory of which is in the 
     geographic area served by the Federal intermediate credit 
     bank that merged with a Farm Credit Bank under section 
     410(e)(1) of the Agricultural Credit Act of 1987 (12 U.S.C. 
     2011 note; Public Law 100-233).''.
       (b) Charter Amendments.--Section 5.17(a) of the Farm Credit 
     Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the 
     end the following:
       ``(15)(A) Approve amendments to the charters of 
     institutions of the Farm Credit System to implement the 
     equalization of loan-making powers of a Farm Credit System 
     association under section 7.7.
       ``(B) Amendments described in subparagraph (A) to the 
     charters of an association and the related Farm Credit Bank 
     shall be approved by the Farm Credit Administration on the 
     date on which the Farm Credit Administration receives all 
     approvals required by section 7.7(a)(2).''.
       (c) Conforming Amendments.--
       (1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12 
     U.S.C. 2252(a)(2)) is amended--
       (A) by striking ``(2)(A)'' and inserting ``(2)''; and
       (B) by striking subparagraphs (B) and (C).
       (2) Section 410(e)(1)(A)(iii) of the Agricultural Credit 
     Act of 1987 (12 U.S.C. 2011 note; Public Law 100-233) is 
     amended by inserting ``(other than section 7.7 of that Act)'' 
     after ``(12 U.S.C. 2001 et seq.)''.
       (3) Section 401(b) of the Farm Credit Banks and 
     Associations Safety and Soundness Act

[[Page 29292]]

     of 1992 (12 U.S.C. 2011 note; Public Law 102-552) is 
     amended--
       (A) by inserting ``(other than section 7.7 of the Farm 
     Credit Act of 1971)'' after ``provision of law''; and
       (B) by striking ``, subject to such limitations'' and all 
     that follows through the end of the paragraph and inserting a 
     period.
       (d) Effective Date.--The amendments made by this section 
     take effect on January 1, 2009.

                       Subtitle E--Miscellaneous

     SEC. 5401. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

       The first section of Public Law 91-229 (25 U.S.C. 488) is 
     amended--
       (1) by striking ``That the Secretary'' and inserting the 
     following:

     ``SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

       ``(a) In General.--The Secretary''; and
       (2) by adding at the end the following:
       ``(b) Highly Fractionated Land.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     of Agriculture may make and insure loans in accordance with 
     section 309 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1929) to eligible purchasers of highly 
     fractionated land pursuant to section 205(c) of the Indian 
     Land Consolidation Act (25 U.S.C. 2204(c)).
       ``(2) Exclusion.--Section 4 shall not apply to trust land, 
     restricted tribal land, or tribal corporation land that is 
     mortgaged in accordance with paragraph (1).''.

     SEC. 5402. DETERMINATION ON MERITS OF PIGFORD CLAIMS.

       (a) Definitions.--In this section:
       (1) Consent decree.--The term ``consent decree'' means the 
     consent decree in the case of Pigford v. Glickman, approved 
     by the United States District Court for the District of 
     Columbia on April 14, 1999.
       (2) Pigford claim.--The term ``Pigford claim'' means a 
     discrimination complaint, as defined by section 1(h) of the 
     consent decree and documented under section 5(b) of the 
     consent decree.
       (3) Pigford claimant.--The term ``Pigford claimant'' means 
     an individual who previously submitted a late-filing request 
     under section 5(g) of the consent decree.
       (b) Determination on Merits.--Any Pigford claimant who has 
     not previously obtained a determination on the merits of a 
     Pigford claim may, in a civil action brought in the United 
     States District Court for the District of Columbia, obtain 
     that determination.
       (c) Limitation.--
       (1) In general.--Subject to paragraph (2), all payments or 
     debt relief (including any limitation on foreclosure under 
     subsection (g)) shall be made exclusively from funds made 
     available under subsection (h).
       (2) Maximum amount.--The total amount of payments and debt 
     relief pursuant to an action commenced under subsection (b) 
     shall not exceed $100,000,000.
       (d) Intent of Congress as to Remedial Nature of Section.--
     It is the intent of Congress that this section be liberally 
     construed so as to effectuate its remedial purpose of giving 
     a full determination on the merits for each Pigford claim 
     denied that determination.
       (e) Loan Data.--
       (1) Report to person submitting petition.--Not later than 
     60 days after the Secretary receives notice of a complaint 
     filed by a claimant under subsection (b), the Secretary shall 
     provide to the claimant a report on farm credit loans made 
     within the claimant's county or adjacent county by the 
     Department during the period beginning on January 1 of the 
     year preceding the year or years covered by the complaint and 
     ending on December 31 of year following such year or years. 
     Such report shall contain information on all persons whose 
     application for a loan was accepted, including--
       (A) the race of the applicant;
       (B) the date of application;
       (C) the date of the loan decision;
       (D) the location of the office making the loan decision; 
     and
       (E) all data relevant to the process of deciding on the 
     loan.
       (2) No personally identifiable information.--The reports 
     provided pursuant to paragraph (1) shall not contain any 
     information that would identify any person that applied for a 
     loan from the Department of Agriculture.
       (f) Expedited Resolutions Authorized.--Any person filing a 
     complaint under this Act for discrimination in the 
     application for, or making or servicing of, a farm loan, at 
     his or her discretion, may seek liquidated damages of 
     $50,000, discharge of the debt that was incurred under, or 
     affected by, the discrimination that is the subject of the 
     person's complaint, and a tax payment in the amount equal to 
     25 percent of the liquidated damages and loan principal 
     discharged, in which case--
       (1) if only such damages, debt discharge, and tax payment 
     are sought, the complainant shall be able to prove his or her 
     case by substantial evidence (as defined in section 1(l) of 
     the consent decree); and
       (2) the court shall decide the case based on a review of 
     documents submitted by the complainant and defendant relevant 
     to the issues of liability and damages.
       (g) Limitation on Foreclosures.--Notwithstanding any other 
     provision of law, the Secretary may not begin acceleration on 
     or foreclosure of a loan if the borrower is a Pigford 
     claimant and, in an appropriate administrative proceeding, 
     makes a prima facie case that the foreclosure is related to a 
     Pigford claim.
       (h) Funding.--
       (1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available for payments 
     and debt relief in satisfaction of claims against the United 
     States under subsection (b) and for any actions under 
     subsection (g) $100,000,000 for fiscal year 2008, to remain 
     available until expended.
       (2) Authorization of appropriations.--In addition to funds 
     made available under paragraph (1), there are authorized to 
     be appropriated such sums as are necessary to carry out this 
     section.

     SEC. 5403. SENSE OF THE SENATE RELATING TO CLAIMS BROUGHT BY 
                   SOCIALLY DISADVANTAGED FARMERS OR RANCHERS.

       It is the sense of the Senate that the Secretary should 
     resolve all claims and class actions brought against the 
     Department of Agriculture by socially disadvantaged farmers 
     or ranchers (as defined in section 355(e) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 2003(e)), including 
     Native American, Hispanic, and female farmers or ranchers, 
     based on racial, ethnic, or gender discrimination in farm 
     program participation in an expeditious and just manner.

     SEC. 5404. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR 
                   EMERGENCY LOANS.

       Section 321(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1961(a)) is amended--
       (1) in paragraph (1), by striking ``farmers, ranchers'' and 
     inserting ``farmers or ranchers (including equine farmers or 
     ranchers)''; and
       (2) in paragraph (2)(A), by striking ``farming, ranching,'' 
     and inserting ``farming or ranching (including equine farming 
     or ranching)''.

               TITLE VI--RURAL DEVELOPMENT AND INVESTMENT

        Subtitle A--Consolidated Farm and Rural Development Act

     SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY 
                   GRANTS.

       Section 306(a)(2)(B)(vii) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is 
     amended, by striking ``2007'' and inserting ``2012''.

     SEC. 6002. RURAL BUSINESS OPPORTUNITY GRANTS.

       Section 306(a)(11)(D) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 6003. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN 
                   GUARANTEES.

       Section 306(a)(19) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(19)) is amended by striking 
     subparagraph (C) and inserting the following:
       ``(C) Child day care facilities.--
       ``(i) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use for the costs of grants, 
     loans, and loan guarantees to pay the Federal share of the 
     cost of developing and constructing day care facilities for 
     children in rural areas, as determined by the Secretary, 
     $40,000,000 for fiscal year 2008, to remain available until 
     expended.
       ``(ii) Relationship to other funding and authorities.--The 
     funds and authorities made available under this subparagraph 
     shall be in addition to other funds and authorities relating 
     to development and construction of rural day care 
     facilities.''.

     SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

       Section 306(a)(22) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(22)) is amended--
       (1) in subparagraph (B), by striking ``2002 (115 Stat. 
     719)'' and inserting ``2008''; and
       (2) in subparagraph (C), by striking ``$15,000,000 for 
     fiscal year 2003'' and inserting ``$20,000,000 for fiscal 
     year 2008''.

     SEC. 6005. MULTIJURISDICTIONAL REGIONAL PLANNING 
                   ORGANIZATIONS.

       Section 306(a)(23)(E) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(23)(E)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 6006. RURAL HOSPITAL LOANS AND LOAN GUARANTEES.

       Section 306(a)(24) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(24)) is amended by adding 
     at the end the following:
       ``(C) Rural hospitals.--
       ``(i) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use for the costs of loans 
     and loan guarantees to pay the Federal share of the cost of 
     rehabilitating or improving hospitals that have not more than 
     100 acute beds in rural areas, as determined by the 
     Secretary, $50,000,000 for fiscal year 2008, to remain 
     available until expended.
       ``(ii) Priority.--In making loans and loan guarantees under 
     this subparagraph, the Secretary shall give priority to 
     hospitals for--

       ``(I) the provision of facilities to improve and install 
     patient care, health quality outcomes, and health information 
     technology, including computer hardware and software,

[[Page 29293]]

     equipment for electronic medical records, handheld computer 
     technology, and equipment that improves interoperability; or
       ``(II) the acquisition of equipment and software purchased 
     collectively in a cost effective manner to address technology 
     needs.

       ``(iii) Relationship to other funding and authorities.--The 
     funds and authorities made available under this subparagraph 
     shall be in addition to other funds and authorities relating 
     to rehabilitation and improvement of hospitals described in 
     clause (i).''.

     SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
                   FACILITIES.

       Section 306(a)(25) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(25)) is amended--
       (1) in subparagraph (B)(ii), by striking ``75 percent'' and 
     inserting ``95 percent''; and
       (2) in subparagraph (C), by striking ``2007'' and inserting 
     ``2012''.

     SEC. 6008. COMMUNITY FACILITY LOANS AND GRANTS FOR FREELY 
                   ASSOCIATED STATES AND OUTLYING AREAS.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) is amended by adding at 
     the end the following:
       ``(26) Community facility loans and grants for freely 
     associated states and outlying areas.--
       ``(A) In general.--Subject to subparagraph (B), of the 
     amount that is made available for each fiscal year for each 
     of the community facility loan and grant programs established 
     under paragraphs (1), (19), (20), (21), and (25), the 
     Secretary shall allocate 0.5 percent of the amount for making 
     loans or grants (as applicable) under the program to eligible 
     entities that are located in freely associated States or 
     outlying areas (as those terms are defined in section 1121(c) 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6331(c)) that are subject to the jurisdiction of the 
     United States and are otherwise covered by this Act.
       ``(B) Reallocation.--If the Secretary determines that a 
     sufficient number of applications for loans or grants for a 
     program described in subparagraph (A) have not been received 
     from eligible entities for a fiscal year during the 180-day 
     period beginning on October 1 of the fiscal year, the 
     Secretary shall reallocate any unused funds to make loans or 
     grants (as applicable) under the program to eligible entities 
     that are located in States.''.

     SEC. 6009. PRIORITY FOR COMMUNITY FACILITY LOAN AND GRANT 
                   PROJECTS WITH HIGH NON-FEDERAL SHARE.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     6008) is amended by adding at the end the following:
       ``(27) Priority for community facility loan and grant 
     projects with high non-federal share.--In carrying out the 
     community facility loan and grant programs established under 
     paragraphs (1), (19), (20), (21), and (25), the Secretary 
     shall give priority to projects that will be carried out with 
     a non-Federal share of funds that is substantially greater 
     than the minimum requirement, as determined by the Secretary 
     by regulation.''.

     SEC. 6010. SEARCH GRANTS.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     6009) is amended by adding at the end the following:
       ``(28) Applications filed by eligible communities.--
       ``(A) Eligible community.--In this paragraph, the term 
     `eligible community' means a community that, as determined by 
     the Secretary--
       ``(i) has a population of 2,500 or fewer inhabitants; and
       ``(ii) is financially distressed.
       ``(B) Applications.--In the case of water and waste 
     disposal and wastewater facilities grant programs authorized 
     under this title, the Secretary may accept applications from 
     eligible communities for grants for feasibility study, 
     design, and technical assistance.
       ``(C) Terms.--
       ``(i) In general.--Except as provided in clause (ii), the 
     terms of the grant programs described in subparagraph (B) 
     shall apply to the applications described in that 
     subparagraph.
       ``(ii) Exceptions.--Grants made pursuant to applications 
     described in subparagraph (B)--

       ``(I) shall fund up to 100 percent of eligible project 
     costs; and
       ``(II) shall be subject to the least documentation 
     requirements practicable.

       ``(iii) Processing.--The Secretary shall process 
     applications received under subparagraph (B) in the same 
     manner as other similar grant applications.
       ``(D) Funding.--In addition to any other funds made 
     available for technical assistance, the Secretary may use to 
     carry out this paragraph not more than 4 percent of the total 
     amount of funds made available for a fiscal year for water, 
     waste disposal, and essential community facilities.''.

     SEC. 6011. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE 
                   GRANT PROGRAM.

       Section 306A(i)(2) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926a(i)(2)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 6012. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                   ALASKA.

       Section 306D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1926d) is amended--
       (1) in subsection (a)--
       (A) by striking ``make grants to the State'' and inserting 
     ``make grants to--
       ``(1) the State'';
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(2) the Denali Commission to improve solid waste disposal 
     sites that are contaminating, or threaten to contaminate, 
     rural drinking water supplies in the State of Alaska.'';
       (2) in subsection (b), by striking ``the State of Alaska'' 
     and inserting ``a grantee'';
       (3) in subsection (c)--
       (A) in the subsection heading by striking ``With the State 
     of Alaska''; and
       (B) by striking ``the State of Alaska'' and inserting ``the 
     appropriate grantee under subsection (a)''; and
       (4) in subsection (d)(1), by striking ``2007'' and 
     inserting ``2012''.

     SEC. 6013. GRANTS TO DEVELOP WELLS IN RURAL AREAS.

       (a) Grants to Nonprofit Organizations to Finance the 
     Construction, Refurbishing, and Servicing of Individually-
     Owned Household Water Well Systems in Rural Areas for 
     Individuals With Low or Moderate Incomes.--Section 306E(d) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1926e(d)) is amended by striking ``2007'' and inserting 
     ``2012''.
       (b) Grants to Develop Area Wells in Isolated Areas.--
     Subtitle A of the Consolidated Farm and Rural Development Act 
     is amended by inserting after section 306E (7 U.S.C. 1926e) 
     the following:

     ``SEC. 306F. GRANTS TO DEVELOP AREA WELLS IN ISOLATED AREAS.

       ``(a) Definition of Isolated Area.--In this section, the 
     term `isolated area' means an area--
       ``(1) in which the development of a traditional water 
     system is not financially practical due to--
       ``(A) the distances or geography of the area; and
       ``(B) the limited number of households present to be 
     served; and
       ``(2) that is not part of a city of more than 1,000 
     inhabitants.
       ``(b) Grants.--The Secretary may make grants to nonprofit 
     organizations to develop and construct household, shared, and 
     community water wells in isolated rural areas.
       ``(c) Priority in Awarding Grants.--In awarding grants 
     under this section, the Secretary shall give priority to 
     applicants that have demonstrated experience in developing 
     safe and similar projects including household, shared, and 
     community wells in rural areas.
       ``(d) Requirements.--
       ``(1) In general.--As a condition on receipt of a grant 
     under this section, the water from wells funded under this 
     section shall be tested annually for water quality, as 
     determined by the Secretary.
       ``(2) Results.--The results of tests under paragraph (1) 
     shall be made available to--
       ``(A) the users of the wells; and
       ``(B) the appropriate State agency.
       ``(e) Limitation.--The amount of a grant under this section 
     shall not exceed the lesser of--
       ``(1) $50,000; or
       ``(2) the amount that is 75 percent of the cost of a single 
     well and associated system.
       ``(f) Prohibition.--The Secretary may not award grants 
     under this section in any area in which a majority of the 
     users of a proposed well have a household income that is 
     greater than the nonmetropolitan median household income of 
     the State or territory, as determined by the Secretary.
       ``(g) Administrative Expenses.--Not more than 10 percent of 
     the amount of a grant made under this section may be used to 
     pay administrative expenses associated with providing project 
     assistance, as determined by the Secretary.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2008 through 2012.''.

     SEC. 6014. COOPERATIVE EQUITY SECURITY GUARANTEE.

       Section 310B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) is amended--
       (1) in the first sentence of subsection (a), by inserting 
     ``and private investment funds that invest primarily in 
     cooperative organizations'' after ``or nonprofit''; and
       (2) in subsection (g)--
       (A) in paragraph (1), by inserting``, including guarantees 
     described in paragraph (3)(A)(ii)'' before the period at the 
     end;
       (B) in paragraph (3)(A)--
       (i) by striking ``(A) In general.--The Secretary'' and 
     inserting the following:
       ``(A) Eligibility.--
       ``(i) In general.--The Secretary''; and
       (ii) by adding at the end the following:
       ``(ii) Equity.--The Secretary may guarantee a loan made for 
     the purchase of preferred stock or similar equity issued by a 
     cooperative organization or a fund that invests primarily in 
     cooperative organizations, if

[[Page 29294]]

     the guarantee significantly benefits 1 or more entities 
     eligible for assistance under subsection (a)(1), as 
     determined by the Secretary.''; and
       (C) in paragraph (8)(A)(ii), by striking ``a project--'' 
     and all that follows through the end of subclause (II) and 
     inserting ``a project that--

       ``(I)(aa) is in a rural area; and
       ``(bb) provides for the value-added processing of 
     agricultural commodities; or
       ``(II) significantly benefits 1 or more entities eligible 
     for assistance under subsection (a)(1), as determined by the 
     Secretary.''.

     SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.

       (a) Eligibility.--Section 310B(e)(5) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1932(e)(5)) is 
     amended--
       (1) in subparagraph (A), by striking ``a nationally 
     coordinated, regionally or State-wide operated project'' and 
     inserting ``activities to promote and assist the development 
     of cooperatively- and mutually-owned businesses'';
       (2) in subparagraph (B), by inserting ``to promote and 
     assist the development of cooperatively- and mutually-owned 
     businesses'' before the semicolon;
       (3) by striking subparagraph (D);
       (4) by redesignating subparagraph (E) as subparagraph (D);
       (5) in subparagraph (D) (as so redesignated), by striking 
     ``and'' at the end;
       (6) by inserting after subparagraph (D) (as so 
     redesignated) the following:
       ``(E) demonstrate a commitment to--
       ``(i) networking with and sharing the results of the 
     efforts of the center with other cooperative development 
     centers and other organizations involved in rural economic 
     development efforts; and
       ``(ii) developing multiorganization and multistate 
     approaches to addressing the cooperative and economic 
     development needs of rural areas; and'';
       (7) in subparagraph (F), by striking ``providing greater 
     than'' and inserting ``providing''.
       (b) Authority to Award Multiyear Grants.--Section 310B(e) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1932(e)) is amended by striking paragraph (6) and inserting 
     the following:
       ``(6) Grant period.--
       ``(A) In general.--A grant awarded to a center that has 
     received no prior funding under this subsection shall be made 
     for a period of 1 year.
       ``(B) Multiyear grants.--If the Secretary determines it to 
     be in the best interest of the program, the Secretary shall 
     award grants for a period of more than 1 year, but not more 
     than 3 years, to a center that has successfully met the goals 
     described in paragraph (3) in providing services under this 
     subsection, as determined by the Secretary.''.
       (c) Authority to Extend Grant Period.--Section 310B(e) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1932(e)) is amended--
       (1) by redesignating paragraphs (7), (8), and (9) as 
     paragraphs (8), (9), and (12), respectively; and
       (2) inserting after paragraph (6) the following:
       ``(7) Authority to extend grant period.--The Secretary may 
     extend for 1 additional 12-month period the period in which a 
     grantee may use a grant made under this subsection.''.
       (d) Cooperative Research Program.--Section 310B(e) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1932(e)) is amended by inserting after paragraph (9) (as 
     redesignated by subsection (c)(1)) the following:
       ``(10) Cooperative research program.--The Secretary shall 
     enter into a cooperative research agreement with 1 or more 
     qualified academic institutions in each fiscal year to 
     conduct research on the national economic effects of all 
     types of cooperatives.''.
       (e) Addressing Needs of Minority Communities.--Section 
     310B(e) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1932(e)) is amended by inserting after paragraph (10) 
     (as added by subsection (d)) the following:
       ``(11) Addressing needs of minority communities.--
       ``(A) Definition of socially disadvantaged.--In this 
     paragraph, the term `socially disadvantaged' has the meaning 
     given the term in section 355(e).
       ``(B) Reservation of funds.--
       ``(i) In general.--If the total amount appropriated under 
     paragraph (12) for a fiscal year exceeds $7,500,000, the 
     Secretary shall reserve an amount equal to 20 percent of the 
     total amount appropriated for grants for cooperative 
     development centers, individual cooperatives, or groups of 
     cooperatives that serve socially disadvantaged communities, a 
     majority of the boards of directors or governing boards of 
     which are comprised of socially disadvantaged individuals.
       ``(ii) Insufficient applications.--To the extent that the 
     Secretary determines that funds reserved under clause (i) 
     would not be used for grants described in that clause due to 
     insufficient applications for the grants, the Secretary shall 
     use the funds as otherwise authorized by this subsection.''.
       (f) Authorization of Appropriations.--Paragraph (12) of 
     section 310B(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(e)) (as redesignated by 
     subsection (c)(1)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.

       Section 310B(f)(3) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(f)(3)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 6017. LOCALLY-PRODUCED AGRICULTURAL FOOD PRODUCTS.

       Section 310B(g) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(g)) is amended by adding at 
     the end the following:
       ``(9) Locally-produced agricultural food products.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Locally-produced agricultural food product.--The term 
     `locally-produced agricultural food product' means any 
     agricultural product raised, produced, and distributed in--

       ``(I) the locality or region in which the final 
     agricultural product is marketed, so that the total distance 
     that the agricultural product is transported is less than 300 
     miles from the origin of the agricultural product; or
       ``(II) the State in which the agricultural product is 
     produced.

       ``(ii) Underserved community.--The term `underserved 
     community' means a community (including an urban or rural 
     community and an Indian tribal community) that has, as 
     determined by the Secretary--

       ``(I) limited access to affordable, healthy foods, 
     including fresh fruits and vegetables, in grocery retail 
     stores or farmer-to-consumer direct markets or a high 
     incidence of a diet-related disease as compared to the 
     national average, including obesity; and
       ``(II) a high rate of hunger or food insecurity or a high 
     poverty rate.

       ``(B) Loan and loan guarantee program.--
       ``(i) In general.--The Secretary, acting through the 
     Administrator of the Rural Business-Cooperative Service in 
     coordination with the Administration of the Agricultural 
     Marketing Service, shall make or guarantee loans to 
     individuals, cooperatives, businesses, and other entities to 
     establish and facilitate enterprises that process, 
     distribute, aggregate, store, and market locally-produced 
     agricultural food products.
       ``(ii) Requirement.--The recipient of a loan or loan 
     guarantee under clause (i) shall agree to make a reasonable 
     effort, as determined by the Secretary, to work with retail 
     and institutional facilities to which the recipient sells 
     locally-produced agricultural food products to inform the 
     consumers of the retail or institutional facilities that the 
     consumers are purchasing or consuming locally-produced 
     agricultural food products.
       ``(iii) Priority.--In making or guaranteeing a loan under 
     clause (i), the Secretary shall give priority to--

       ``(I) projects that support community development and farm 
     and ranch income by marketing, distributing, storing, 
     aggregating, or processing a locally-produced agricultural 
     food product; and
       ``(II) projects that have components benefitting 
     underserved communities.

       ``(iv) Retail or institutional facilities.--The Secretary 
     may allow recipients of loans or loan guarantees under clause 
     (i) to provide up to $250,000 in loan or loan guarantee funds 
     per retail or institutional facility for an underserved 
     community in a rural or nonrural area to help retail 
     facilities--

       ``(I) to modify and update the facilities to accommodate 
     locally-produced agricultural food products; and
       ``(II) to provide outreach to consumers about the sale of 
     locally-produced agricultural food products.

       ``(v) Reports.--Not later than 1 year after the date of 
     enactment of this paragraph and annually thereafter, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that describes 
     projects carried out using loans or loan guarantees made 
     under clause (i), including--

       ``(I) the characteristics of the communities served by the 
     projects; and
       ``(II) benefits of the projects.

       ``(vi) Reservation of funds.--

       ``(I) In general.--For each of fiscal years 2008 through 
     2012, the Secretary shall reserve not less than 5 percent of 
     the funds made available to carry out this subsection to 
     carry out this subparagraph.
       ``(II) Availability of funds.--Funds reserved under 
     subclause (I) for a fiscal year shall be reserved until April 
     1 of the fiscal year.''.

     SEC. 6018. CENTER FOR HEALTHY FOOD ACCESS AND ENTERPRISE 
                   DEVELOPMENT.

       Paragraph (9) of section 310B(g) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1932(g)) (as added by 
     section 6017) is amended by adding at the end the following:
       ``(C) Center for healthy food access and enterprise 
     development.--
       ``(i) In general.--The Secretary, acting through the 
     Agricultural Marketing Service, shall establish and support a 
     Center for Healthy Food Access and Enterprise Development.
       ``(ii) Duties.--The Center established under clause (i) 
     shall contract with 1 or more

[[Page 29295]]

     nonprofit entities to provide technical assistance and 
     disseminate information to food wholesalers and retailers 
     concerning best practices for the aggregating, storage, 
     processing, and marketing of locally-produced agricultural 
     food products.
       ``(iii) Deadline.--The Secretary shall establish the Center 
     not later than 180 days after the date on which funds are 
     made available under clause (iv).
       ``(iv) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subparagraph 
     $1,000,000 for each of fiscal years 2008 through 2012.''.

     SEC. 6019. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.

       Section 310B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) is amended by adding at the end the 
     following:
       ``(i) Appropriate Technology Transfer for Rural Areas 
     Program.--
       ``(1) Definition of national nonprofit agricultural 
     assistance institution.--In this subsection, the term 
     `national nonprofit agricultural assistance institution' 
     means an organization that--
       ``(A) is described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 and exempt from taxation under 501(a) of 
     that Code;
       ``(B) has staff and offices in multiple regions of the 
     United States;
       ``(C) has experience and expertise in operating national 
     sustainable agriculture technical assistance programs; and
       ``(D) provides the technical assistance through toll-free 
     hotlines, 1 or more websites, publications, and workshops.
       ``(2) Establishment.--The Secretary shall establish a 
     national appropriate technology transfer for rural areas 
     program to assist agricultural producers that are seeking 
     information to help the agricultural producers--
       ``(A) reduce input costs;
       ``(B) conserve energy resources;
       ``(C) diversify operations through new energy crops and 
     energy generation facilities; and
       ``(D) expand markets for the agricultural commodities 
     produced by the producers through use of practices involving 
     sustainable agriculture.
       ``(3) Implementation.--
       ``(A) In general.--The Secretary shall carry out the 
     program under this subsection by making a grant to, or 
     offering to enter into a cooperative agreement with, a 
     national nonprofit agricultural assistance organization.
       ``(B) Grant amount.--A grant made, or cooperative agreement 
     entered into, under subparagraph (A) shall provide 100 
     percent of the cost of providing information described in 
     paragraph (2).
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     $5,000,000 for each of fiscal years 2008 through 2012.''.

     SEC. 6020. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

       Section 310B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) (as amended by section 6019) is amended 
     by adding at the end the following:
       ``(j) Rural Economic Area Partnership Zones.--For the 
     period beginning on the date of enactment of this subsection 
     and ending on September 30, 2012, the Secretary shall carry 
     out rural economic area partnership zones in the States of 
     New York, North Dakota, and Vermont, in accordance with the 
     terms and conditions contained in the memorandums of 
     agreement entered into by the Secretary for the rural 
     economic area partnership zones, except as otherwise provided 
     in this subsection.''.

     SEC. 6021. DEFINITIONS.

       (a) Rural Area.--Section 343(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1991(a)) is amended by 
     striking paragraph (13) and inserting the following:
       ``(13) Rural and rural area.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     the terms `rural' and `rural area' mean any area other than--
       ``(i) a city or town that has a population of greater than 
     50,000 inhabitants, except that, for all activities under 
     programs in the rural development mission area within the 
     areas of the County of Honolulu, Hawaii, and the Commonwealth 
     of Puerto Rico, the Secretary may designate any portion of 
     the areas as a rural area or eligible rural community that 
     the Secretary determines is not urban in character, other 
     than any area included in the Honolulu Census Designated 
     Place or the San Juan Census Designated Place;
       ``(ii) any urbanized area (as defined by the Bureau of the 
     Census) contiguous and adjacent to a city or town described 
     in clause (i); and
       ``(iii) any collection of census blocks contiguous to each 
     other (as defined by the Bureau of the Census) that--

       ``(I) is adjacent to a city or town described in clause (i) 
     or an urbanized area described in clause (ii); and
       ``(II) has a housing density that the Secretary estimates 
     is greater than 200 housing units per square mile, except 
     that an applicant may appeal the estimate based on actual 
     data for the area.

       ``(B) Water and waste disposal grants and direct and 
     guaranteed loans.--For the purpose of water and waste 
     disposal grants and direct and guaranteed loans provided 
     under paragraphs (1), (2), and (24) of section 306(a), the 
     terms `rural' and `rural area' mean any area other than--
       ``(i) an area described in clause (i), (ii), or (iii) of 
     subparagraph (A); and
       ``(ii) a city, town, or unincorporated area that has a 
     population of greater than 10,000 inhabitants.
       ``(C) Community facility loans and grants.--For the purpose 
     of community facility direct and guaranteed loans and grants 
     under paragraphs (1), (19), (20), (21), and (24) of section 
     306(a), the terms `rural' and `rural area' mean any area 
     other than--
       ``(i) an area described in clause (i), (ii), or (iii) of 
     subparagraph (A); and
       ``(ii) a city, town, or unincorporated area that has a 
     population of greater than 20,000 inhabitants.''.
       (b) Additional Terms.--Section 343(a) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1991(a)) is amended 
     by adding at the end the following:
       ``(14) Sustainable agriculture.--The term `sustainable 
     agriculture' means an integrated system of plant and animal 
     production practices having a site-specific application that 
     will, over the long-term--
       ``(A) satisfy human food and fiber needs;
       ``(B) enhance environmental quality and the natural 
     resource base upon which the agriculture economy depends;
       ``(C) make the most efficient use of nonrenewable resources 
     and on-farm resources and integrate, where appropriate, 
     natural biological cycles and controls;
       ``(D) sustain the economic viability of farm operations; 
     and
       ``(E) enhance the quality of life for farmers and society 
     as a whole.
       ``(15) Technical assistance.--The term `technical 
     assistance' means managerial, financial, operational, and 
     scientific analysis and consultation to assist an individual 
     or entity (including a borrower or potential borrower under 
     this title)--
       ``(A) to identify and evaluate practices, approaches, 
     problems, opportunities, or solutions; and
       ``(B) to assist in the planning, implementation, 
     management, operation, marketing, or maintenance of projects 
     authorized under this title.''.

     SEC. 6022. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (as amended by section 5207) is amended by inserting 
     after section 365 the following:

     ``SEC. 366. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(2) Low- or moderate-income individual.--The term `low- 
     or moderate-income individual' means an individual with an 
     income (adjusted for family size) of not more than 80 percent 
     of the national median income.
       ``(3) Microcredit.--The term `microcredit' means a business 
     loan or loan guarantee of not more than $50,000 that is 
     provided to a rural microenterprise.
       ``(4) Microenterprise development organization.--The term 
     `microenterprise development organization' means an 
     organization that--
       ``(A) is--
       ``(i) a nonprofit entity;
       ``(ii) an Indian tribe, the tribal government of which 
     certifies to the Secretary that no microenterprise 
     development organization or microenterprise development 
     program exists under the jurisdiction of the Indian tribe; or
       ``(iii) for the purpose of subsection (b), a public 
     institution of higher education;
       ``(B) provides training and technical assistance to rural 
     microenterprises;
       ``(C) facilitates access to capital or another service 
     described in subsection (b) for rural microenterprises; and
       ``(D) has a demonstrated record of delivering services to 
     economically disadvantaged microenterprises, or an effective 
     plan to develop a program to deliver microenterprise services 
     to rural microenterprises effectively, as determined by the 
     Secretary.
       ``(5) Rural capacity building service.--The term `rural 
     capacity building service' means a service provided to an 
     organization that--
       ``(A) is, or is in the process of becoming, a 
     microenterprise development organization; and
       ``(B) serves rural areas for the purpose of enhancing the 
     ability of the organization to provide training, technical 
     assistance, and other services relating to rural development.
       ``(6) Rural microenterprise.--
       ``(A) In general.--The term `rural microenterprise' means 
     an individual described in subparagraph (B) who is unable to 
     obtain sufficient training, technical assistance, or 
     microcredit other than under this section, as determined by 
     the Secretary.
       ``(B) Description.--An individual described in this 
     subparagraph is--
       ``(i) a self-employed individual located in a rural area; 
     or
       ``(ii) an owner and operator, or prospective owner and 
     operator, of a business entity located in a rural area with 
     not more than 10 full-time-equivalent employees.
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting

[[Page 29296]]

     through the Rural Business-Cooperative Service.
       ``(b) Rural Microenterprise Program.--
       ``(1) Establishment.--The Secretary shall establish a rural 
     microenterprise program.
       ``(2) Purpose.--The purpose of the rural microenterprise 
     program shall be to provide low- or moderate-income 
     individuals with--
       ``(A) the skills necessary to establish new rural 
     microenterprises; and
       ``(B) continuing technical and financial assistance as 
     individuals and business starting or operating rural 
     microenterprises.
       ``(3) Grants.--
       ``(A) In general.--The Secretary may make a grant under the 
     rural microenterprise program to microenterprise development 
     organizations--
       ``(i) to provide training, operational support, business 
     planning assistance, market development assistance, and other 
     related services to rural microenterprises, with an emphasis 
     on rural microenterprises that --

       ``(I) are composed of low- or moderate-income individuals; 
     or
       ``(II) are in areas that have lost population;

       ``(ii) to assist in researching and developing the best 
     practices in delivering training, technical assistance, and 
     microcredit to rural microenterprises; and
       ``(iii) to carry out such other projects and activities as 
     the Secretary determines to be consistent with the purposes 
     of this section.
       ``(B) Diversity.--In making grants under this paragraph, 
     the Secretary shall ensure, to the maximum extent 
     practicable, that grant recipients include microenterprise 
     development organizations--
       ``(i) of varying sizes; and
       ``(ii) that serve racially- and ethnically-diverse 
     populations.
       ``(C) Cost sharing.--
       ``(i) Federal share.--The Federal share of the cost of a 
     project carried out using funds from a grant made under this 
     paragraph shall be 75 percent.
       ``(ii) Form of non-federal share.--The non-Federal share of 
     the cost of a project described in clause (i) may be 
     provided--

       ``(I) in cash (including through fees, grants (including 
     community development block grants), and gifts); or
       ``(II) as in-kind contributions.

       ``(4) Rural microloan program.--
       ``(A) Establishment.--In carrying out the rural 
     microenterprise program, the Secretary may carry out a rural 
     microloan program.
       ``(B) Purpose.--The purpose of the rural microloan program 
     shall be to provide technical and financial assistance to 
     rural microenterprises that--
       ``(i) are composed of low- or moderate-income individuals; 
     or
       ``(ii) are in areas that have lost population.
       ``(C) Authority of secretary.--In carrying out the rural 
     microloan program, the Secretary may--
       ``(i) make direct loans to microentrerprise development 
     organizations for the purpose of making fixed interest rate 
     microloans to startup, newly established, and growing rural 
     microenterprises; and
       ``(ii) in conjunction with those loans, provide technical 
     assistance grants in accordance with subparagraph (E) to 
     those microentrerprise development organizations.
       ``(D) Loan duration; interest rates; conditions.--
       ``(i) Loan duration.--A direct loan made by the Secretary 
     under this paragraph shall be for a term not to exceed 20 
     years.
       ``(ii) Applicable interest rate.--A direct loan made by the 
     Secretary under this paragraph shall bear an annual interest 
     rate of 1 percent.
       ``(iii) Loan loss reserve fund.--The Secretary shall 
     require each microentrerprise development organization that 
     receives a direct loan under this paragraph to--

       ``(I) establish a loan loss reserve fund; and
       ``(II) maintain the reserve fund in an amount equal to at 
     least 5 percent of the outstanding balance of such loans owed 
     by the microentrerprise development organization, until all 
     obligations owed to the Secretary under this paragraph are 
     repaid.

       ``(iv) Deferral of interest and principal.--The Secretary 
     shall permit the deferral of payments on principal and 
     interest due on a loan made under this paragraph during the 
     2-year period beginning on the date on which the loan is 
     made.
       ``(E) Technical assistance grant amounts.--
       ``(i) In general.--Except as otherwise provided in this 
     section, each microentrerprise development organization that 
     receives a direct loan under this paragraph shall be eligible 
     to receive a technical assistance grant to provide marketing, 
     management, and technical assistance to rural 
     microenterprises that are borrowers or potential borrowers 
     under this subsection.
       ``(ii) Maximum amount of technical assistance grant for 
     microenterprise development organizations.--Each 
     microenterprise development organization that receives a 
     direct loan under this paragraph shall receive an annual 
     technical assistance grant in an amount equal to not more 
     than 25 percent of the total outstanding balance of 
     microloans made by the microenterprise development 
     organization under this paragraph, as of the date of 
     provision of the technical assistance grant.
       ``(iii) Matching requirement.--

       ``(I) In general.--As a condition of any grant made to a 
     microentrerprise development organization under this 
     subparagraph, the Secretary shall require the 
     microentrerprise development organization to match not less 
     than 15 percent of the total amount of the grant.
       ``(II) Form of non-federal share.--The non-Federal share of 
     the cost of a project described in subclause (I) may be 
     provided--

       ``(aa) in cash; or
       ``(bb) as indirect costs or in-kind contributions.
       ``(c) Administrative Expenses.--Not more than 10 percent of 
     a grant received by a microentrerprise development 
     organization for a fiscal year under this section may be used 
     to pay administrative expenses.
       ``(d) Funding.--
       ``(1) Mandatory funding.--
       ``(A) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section $40,000,000 for fiscal year 2008, to remain available 
     until expended.
       ``(B) Allocation of funds.--Of the amount made available by 
     subparagraph (A) for fiscal year 2008--
       ``(i) not less than $25,000,000 shall be available for use 
     in carrying out subsection (b)(3); and
       ``(ii) not less than $15,000,000 shall be available for use 
     in carrying out subsection (b)(4), of which not more than 
     $7,000,000 shall be used for the cost of direct loans.
       ``(2) Authorization of appropriations.--In addition to 
     amounts made available under paragraph (1), there are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2009 through 
     2012.''.

     SEC. 6023. ARTISANAL CHEESE CENTERS.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act is amended by inserting after section 366 (as added by 
     section 6022) the following:

     ``SEC. 367. ARTISANAL CHEESE CENTERS.

       ``(a) In General.--The Secretary shall establish artisanal 
     cheese centers to provide educational and technical 
     assistance relating to the manufacture and marketing of 
     artisanal cheese by small- and medium-sized producers and 
     businesses.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as are necessary to carry out 
     this section for each of fiscal years 2008 through 2012.''.

     SEC. 6024. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

       Section 378 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2008m) is amended--
       (1) in subsection (g)(1), by striking ``2007'' and 
     inserting ``2012''; and
       (2) in subsection (h), by striking ``the date that is 5 
     years after the date of enactment of this section'' and 
     inserting ``September 30, 2012''.

     SEC. 6025. HISTORIC BARN PRESERVATION.

       Section 379A(c) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008o(c)) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Eligible projects.--
       ``(A) In general.--A grant under this subsection may be 
     made to an eligible applicant for a project--
       ``(i) to rehabilitate or repair a historic barn;
       ``(ii) to preserve a historic barn; and
       ``(iii) to identify, document, survey, and conduct research 
     on a historic barn or historic farm structure to develop and 
     evaluate appropriate techniques or best practices for 
     protecting historic barns.
       ``(B) Priority.--The Secretary shall give the highest 
     funding priority to grants for projects described in 
     subparagraph (A)(iii).''; and
       (2) in paragraph (4), by striking ``2007'' and inserting 
     ``2012''.

     SEC. 6026. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

       Section 379B(d) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008p(d)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 6027. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES 
                   AND TO TRAIN FARM WORKERS IN SPECIALIZED SKILLS 
                   NECESSARY FOR HIGHER VALUE CROPS.

       Section 379C(c) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008q(c)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 6028. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES 
                   FOR INDIVIDUALS WITH DISABILITIES IN RURAL 
                   AREAS.

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

     ``SEC. 379E. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES 
                   FOR INDIVIDUALS WITH DISABILITIES IN RURAL 
                   AREAS.

       ``(a) Definitions.--In this section:
       ``(1) Individual with a disability.--The term `individual 
     with a disability' means an individual with a disability (as 
     defined in section 3 of the Americans with Disabilities Act 
     of 1990 (42 U.S.C. 12102)).

[[Page 29297]]

       ``(2) Individuals with disabilities.--The term `individuals 
     with disabilities' means more than 1 individual with a 
     disability.
       ``(b) Grants.--The Secretary shall make grants to nonprofit 
     organizations, or to a consortium of nonprofit organizations, 
     to expand and enhance employment opportunities for 
     individuals with disabilities in rural areas.
       ``(c) Eligibility.--To be eligible to receive a grant under 
     this section, a nonprofit organization or consortium of 
     nonprofit organizations shall have--
       ``(1) a significant focus on serving the needs of 
     individuals with disabilities;
       ``(2) demonstrated knowledge and expertise in--
       ``(A) employment of individuals with disabilities; and
       ``(B) advising private entities on accessibility issues 
     involving individuals with disabilities;
       ``(3) expertise in removing barriers to employment for 
     individuals with disabilities, including access to 
     transportation, assistive technology, and other 
     accommodations;
       ``(4) existing relationships with national organizations 
     focused primarily on the needs of rural areas;
       ``(5) affiliates in a majority of the States; and
       ``(6) a close working relationship with the Department of 
     Agriculture.
       ``(d) Uses.--A grant received under this section may be 
     used only to expand or enhance--
       ``(1) employment opportunities for individuals with 
     disabilities in rural areas by developing national technical 
     assistance and education resources to assist small businesses 
     in a rural area to recruit, hire, accommodate, and employ 
     individuals with disabilities; and
       ``(2) self-employment and entrepreneurship opportunities 
     for individuals with disabilities in a rural area.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,000,000 for 
     each of fiscal years 2008 through 2012.''.

     SEC. 6029. DELTA REGIONAL AUTHORITY.

       (a) Health Care Services.--Section 382C of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 2009aa-2) is amended 
     by adding at the end the following:
       ``(c) Health Care Services.--
       ``(1) In general.--Subject to the availability of 
     appropriated funds, the Secretary may award a grant to the 
     Delta Health Alliance for the development of health care 
     services, health education programs, and health care job 
     training programs fields, and for the development and 
     expansion of public health-related facilities, in the 
     Mississippi Delta region to address longstanding and unmet 
     health needs in the Mississippi Delta region.
       ``(2) Use.--As a condition of the receipt of the grant, the 
     Delta Health Alliance shall use the grant to fund projects 
     and activities described in paragraph (1), based on input 
     solicited from local governments, public health care 
     providers, and other entities in the Mississippi Delta 
     region.
       ``(3) Federal interest in property.--Notwithstanding any 
     other provision of law, with respect to the use of grant 
     funds provided under this subsection for a project involving 
     the construction or major alteration of property, the Federal 
     interest in the property shall terminate on the earlier of--
       ``(A) the date that is 1 year after the date of the 
     completion of the project; or
       ``(B) the date on which the Federal Government is 
     compensated for the proportionate interest of the Federal 
     Government in the property, if the use of the property 
     changes or the property is transferred or sold.''.
       (b) Authorization of Appropriations.--Section 382M(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009aa-12(a)) is amended by striking ``2007'' and inserting 
     ``2012''.
       (c) Termination of Authority.--Section 382N of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
     13) is amended by striking ``2007'' and inserting ``2012''.
       (d) Delta Region Agricultural Economic Development.--
     Section 379D(b) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008r(b)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 6030. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

       (a) Establishment.--Section 383B of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 2009bb-1) is amended--
       (1) in subsection (a), by adding at the end the following:
       ``(4) Failure to confirm.--
       ``(A) Federal member.--Notwithstanding any other provision 
     of this section, if a Federal member described in paragraph 
     (2)(A) has not been confirmed by the Senate by not later than 
     180 days after the date of enactment of this paragraph, the 
     Authority may organize and operate without the Federal 
     member.
       ``(B) Indian chairperson.--Notwithstanding any other 
     provision of this section, if a chairperson of an Indian 
     Tribe described in paragraph (2)(C) has not been confirmed by 
     the Senate by not later than 180 days after the date of 
     enactment of this paragraph, the leaders of the Indian tribes 
     in the region may select that member.'';
       (2) in subsection (d)--
       (A) in paragraph (1), by striking ``to establish priorities 
     and'' and inserting ``for multistate cooperation to advance 
     the economic and social well-being of the region and to''
       (B) in paragraph (3), by striking ``local development 
     districts,'' and inserting ``regional and local development 
     districts or organizations, regional boards established under 
     subtitle I,'';
       (C) in paragraph (4), by striking ``cooperation;'' and 
     inserting ``cooperation for--
       ``(i) renewable energy development and transmission;
       ``(ii) transportation planning and economic development;
       ``(iii) information technology;
       ``(iv) movement of freight and individuals within the 
     region;
       ``(v) federally-funded research at institutions of higher 
     education; and
       ``(vi) conservation land management;'';
       (D) by striking paragraph (6) and inserting the following:
       ``(6) enhance the capacity of, and provide support for, 
     multistate development and research organizations, local 
     development organizations and districts, and resource 
     conservation districts in the region;''; and
       (E) in paragraph (7), by inserting ``renewable energy,'' 
     after ``commercial,''.
       (3) in subsection (f)(2), by striking ``the Federal 
     cochairperson'' and inserting ``a cochairperson'';
       (4) in subsection (g)(1), by striking subparagraphs (A) 
     through (C) and inserting the following:
       ``(A) for each of fiscal years 2008 and 2009, 100 percent;
       ``(B) for fiscal year 2010, 75 percent; and
       ``(C) for fiscal year 2011 and each fiscal year thereafter, 
     50 percent.''.
       (b) Interstate Cooperation for Economic Opportunity and 
     Efficiency.--
       (1) In general.--Subtitle G of the Consolidated Farm and 
     Rural Development Act is amended--
       (A) by redesignating sections 383C through 383N (7 U.S.C. 
     2009bb-2 through 2009bb-13) as sections 383D through 383O, 
     respectively; and
       (B) by inserting after section 383B (7 U.S.C. 2009bb-1) the 
     following:

     ``SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY 
                   AND EFFICIENCY.

       ``(a) In General.--The Authority shall provide assistance 
     to States in developing regional plans to address multistate 
     economic issues, including plans--
       ``(1) to develop a regional transmission system for 
     movement of renewable energy to markets outside the region,
       ``(2) to assist in the harmonization of transportation 
     policies and regulations that impact the interstate movement 
     of goods and individuals, including the establishment of a 
     Northern Great Plains Regional Transportation Working Group;
       ``(3) to encourage and support interstate collaboration on 
     federally-funded research that is in the national interest; 
     and
       ``(4) to establish a Regional Working Group on Agriculture 
     Development and Transportation.
       ``(b) Economic Issues.--The multistate economic issues 
     referred to in subsection (a) shall include--
       ``(1) renewable energy development and transmission;
       ``(2) transportation planning and economic development;
       ``(3) information technology;
       ``(4) movement of freight and individuals within the 
     region;
       ``(5) federally-funded research at institutions of higher 
     education; and
       ``(6) conservation land management.''.
       (2) Conforming amendments.--
       (A) Section 383B(c)(3)(B) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2009bb-1(c)(3)(B)) is amended 
     by striking ``383I'' and inserting ``383J''.
       (B) Section 383D(a) of the Consolidated Farm and Rural 
     Development Act (as redesignated by paragraph (1)(A)) is 
     amended by striking ``383I'' and inserting ``383J''.
       (C) Section 383E of the Consolidated Farm and Rural 
     Development Act (as so redesignated) is amended--
       (i) in subsection (b)(1), by striking ``383F(b)'' and 
     inserting ``383G(b)''; and
       (ii) in subsection (c)(2)(A), by striking ``383I'' and 
     inserting ``383J''.
       (D) Section 383G of the Consolidated Farm and Rural 
     Development Act (as so redesignated) is amended--
       (i) in subsection (b)--

       (I) in paragraph (1), by striking ``383M'' and inserting 
     ``383N''; and
       (II) in paragraph (2), by striking ``383D(b)'' and 
     inserting ``383E(b)'';

       (ii) in subsection (c)(2)(A), by striking ``383E(b)'' and 
     inserting ``383F(b)''; and
       (iii) in subsection (d)--

       (I) by striking ``383M'' and inserting ``383N''; and

       (II) by striking ``383C(a)'' and inserting ``383D(a)''.

       (E) Section 383J(c)(2) of the Consolidated Farm and Rural 
     Development Act (as so redesignated) is amended by striking 
     ``383H'' and inserting ``383I''.
       (c) Economic and Community Development Grants.--Section 
     383D of the Consolidated Farm and Rural Development Act (as 
     redesignated by subsection (b)(1)(A)) is amended--
       (1) in subsection (a)--

[[Page 29298]]

       (A) in paragraph (1), by striking ``transportation and 
     telecommunication'' and inserting ``transportation, renewable 
     energy transmission, and telecommunication''; and
       (B) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (1), respectively, and moving those paragraphs so as 
     to appear in numerical order; and
       (2) in subsection (b)(2), by striking ``the activities in 
     the following order or priority'' and inserting ``the 
     following activities''.
       (d) Supplements to Federal Grant Programs.--Section 383E(a) 
     of the Consolidated Farm and Rural Development Act (as 
     redesignated by subsection (b)(1)(A)) is amended by striking 
     ``, including local development districts,''.
       (e) Multistate and Local Development Districts and 
     Organizations and Northern Great Plains Inc.--Section 383F of 
     the Consolidated Farm and Rural Development Act (as 
     redesignated by subsection (b)(1)(A)) is amended--
       (1) by striking the section heading and inserting 
     ``MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND 
     ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.'';
       (2) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Definition of Multistate and Local Development 
     District or Organization.--In this section, the term 
     `multistate and local development district or organization' 
     means an entity--
       ``(1) that--
       ``(A) is a planning district in existence on the date of 
     enactment of this subtitle that is recognized by the Economic 
     Development Administration of the Department of Commerce; or
       ``(B) is--
       ``(i) organized and operated in a manner that ensures 
     broad-based community participation and an effective 
     opportunity for other nonprofit groups to contribute to the 
     development and implementation of programs in the region;
       ``(ii) a nonprofit incorporated body organized or chartered 
     under the law of the State in which the entity is located;
       ``(iii) a nonprofit agency or instrumentality of a State or 
     local government;
       ``(iv) a public organization established before the date of 
     enactment of this subtitle under State law for creation of 
     multijurisdictional, area-wide planning organizations;
       ``(v) a nonprofit agency or instrumentality of a State that 
     was established for the purpose of assisting with multistate 
     cooperation; or
       ``(vi) a nonprofit association or combination of bodies, 
     agencies, and instrumentalities described in clauses (ii) 
     through (v); and
       ``(2) that has not, as certified by the Federal 
     cochairperson--
       ``(A) inappropriately used Federal grant funds from any 
     Federal source; or
       ``(B) appointed an officer who, during the period in which 
     another entity inappropriately used Federal grant funds from 
     any Federal source, was an officer of the other entity.
       ``(b) Grants to Multistate, Local, or Regional Development 
     Districts and Organizations.--
       ``(1) In general.--The Authority may make grants for 
     administrative expenses under this section to multistate, 
     local, and regional development districts and organizations.
       ``(2) Conditions for grants.--
       ``(A) Maximum amount.--The amount of any grant awarded 
     under paragraph (1) shall not exceed 80 percent of the 
     administrative expenses of the regional or local development 
     district or organization receiving the grant.
       ``(B) Maximum period.--No grant described in paragraph (1) 
     shall be awarded for a period greater than 3 years.
       ``(3) Local share.--The contributions of a regional or 
     local development district or organization for administrative 
     expenses may be in cash or in kind, fairly evaluated, 
     including space, equipment, and services.''; and
       (3) in subsection (c)--
       (A) by striking ``Duties'' and inserting ``Authorities''; 
     and
       (B) in the matter preceding paragraph (1), by striking 
     ``shall'' and inserting ``may''.
       (f) Distressed Counties and Areas and Nondistressed 
     Counties.--Section 383G of the Consolidated Farm and Rural 
     Development Act (as redesignated by subsection (b)(1)(A)) is 
     amended--
       (1) in subsection (b)(1), by striking ``75'' and inserting 
     ``50'';
       (2) by striking subsection (c);
       (3) by redesignating subsection (d) as subsection (c); and
       (4) in subsection (c) (as so redesignated)--
       (A) in the subsection heading, by inserting ``, Renewable 
     Energy,'' after ``Telecommunication,''; and
       (B) by inserting ``, renewable energy,'' after 
     ``telecommunication,''.
       (g) Development Planning Process.--Section 383H of the 
     Consolidated Farm and Rural Development Act (as redesignated 
     by subsection (b)(1)(A)) is amended--
       (1) in subsection (c)(1), by striking subparagraph (A) and 
     inserting the following:
       ``(A) multistate, regional, and local development districts 
     and organizations; and''; and
       (2) in subsection (d)(1), by striking ``State and local 
     development districts'' and inserting ``multistate, regional, 
     and local development districts and organizations''.
       (h) Program Development Criteria.--Section 383I(a)(1) of 
     the Consolidated Farm and Rural Development Act (as 
     redesignated by subsection (b)(1)(A)) is amended by inserting 
     ``multistate or'' before ``regional''.
       (i) Authorization of Appropriations.--Section 383N(a) of 
     the Consolidated Farm and Rural Development Act (as 
     redesignated by subsection (b)(1)(A)) is amended by striking 
     ``2002 through 2007'' and inserting ``2008 through 2012''.
       (j) Termination of Authority.--Section 383O of the 
     Consolidated Farm and Rural Development Act (as redesignated 
     by subsection (b)(1)(A)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 6031. RURAL BUSINESS INVESTMENT PROGRAM.

       (a) Issuance and Guarantee of Trust Certificates.--Section 
     384F of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 2009cc-5) is amended--
       (1) in subsection (a)(1), by inserting ``, including an 
     investment pool created entirely by such bank or savings 
     association'' before the period at the end;
       (2) in subsection (b)(3)(A), by striking ``In the event'' 
     and inserting the following:
       ``(i) Authority to prepay.--A debenture may be prepaid at 
     any time without penalty.
       ``(ii) Reduction of guarantee.--Subject to clause (i), 
     if''; and
       (3) in subsection (e), by adding at the end the following:
       ``(6) Distributions.--
       ``(A) In general.--The Secretary shall authorize 
     distributions to investors for unrealized income from a 
     debenture.
       ``(B) Treatment.--Distributions made by a rural business 
     investment company to an investor of private capital in the 
     rural business investment company for the purpose of covering 
     the tax liability of the investor resulting from unrealized 
     income of the rural business investment company shall not 
     require the repayment of a debenture.''.
       (b) Fees.--Section 384G of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2009cc-6) is amended--
       (1) in subsection (a), by striking ``such fees as the 
     Secretary considers appropriate'' and inserting ``a fee that 
     does not exceed $500'';
       (2) in subsection (b), by striking ``approved by the 
     Secretary'' and inserting ``that does not exceed $500''; and
       (3) in subsection (c)--
       (A) in paragraph (1), by striking ``The'' and inserting 
     ``Except as provided in paragraph (3), the'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' at the end;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) shall not exceed $500 for any fee collected under 
     this subsection.''; and
       (C) by adding at the end the following:
       ``(3) Prohibition on collection of certain fees.--In the 
     case of a license described in paragraph (1) that was 
     approved before July 1, 2007, the Secretary shall not collect 
     any fees due on or after the date of enactment of this 
     paragraph.''.
       (c) Rural Business Investment Companies.--Section 384I(c) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009cc-8(c)) is amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following:
       ``(3) Time frame.--Each rural business investment company 
     shall have a period of 2 years to meet the capital 
     requirements of this subsection.''.
       (d) Financial Institution Investments.--Section 384J of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-
     9) is amended by striking subsection (c).
       (e) Contracting of Functions.--Section 384Q of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-
     16) is repealed.
       (f) Funding.--The Consolidated Farm and Rural Development 
     Act is amended by striking section 384S (7 U.S.C. 2009cc-18) 
     and inserting the following:

     ``SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 6032. RURAL COLLABORATIVE INVESTMENT PROGRAM.

       Subtitle I of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2009dd et seq.) is amended to read as follows:

          ``Subtitle I--Rural Collaborative Investment Program

     ``SEC. 385A. PURPOSE.

       ``The purpose of this subtitle is to establish a regional 
     rural collaborative investment program--
       ``(1) to provide rural regions with a flexible investment 
     vehicle, allowing for local control with Federal oversight, 
     assistance, and accountability;
       ``(2) to provide rural regions with incentives and 
     resources to develop and implement comprehensive strategies 
     for achieving regional competitiveness, innovation, and 
     prosperity;
       ``(3) to foster multisector community and economic 
     development collaborations that

[[Page 29299]]

     will optimize the asset-based competitive advantages of rural 
     regions with particular emphasis on innovation, 
     entrepreneurship, and the creation of quality jobs;
       ``(4) to foster collaborations necessary to provide the 
     professional technical expertise, institutional capacity, and 
     economies of scale that are essential for the long-term 
     competitiveness of rural regions; and
       ``(5) to better use Department of Agriculture and other 
     Federal, State, and local governmental resources, and to 
     leverage those resources with private, nonprofit, and 
     philanthropic investments, to achieve measurable community 
     and economic prosperity, growth, and sustainability.

     ``SEC. 385B. DEFINITIONS.

       ``In this subtitle:
       ``(1) Benchmark.--The term `benchmark' means an annual set 
     of goals and performance measures established for the purpose 
     of assessing performance in meeting a regional investment 
     strategy of a Regional Board.
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) National board.--The term `National Board' means the 
     National Rural Investment Board established under section 
     385C(c).
       ``(4) National institute.--The term `National Institute' 
     means the National Institute on Regional Rural 
     Competitiveness and Entrepreneurship established under 
     section 385C(b)(2).
       ``(5) Regional board.--The term `Regional Board' means a 
     Regional Rural Investment Board described in section 385D(a).
       ``(6) Regional innovation grant.--The term `regional 
     innovation grant' means a grant made by the Secretary to a 
     certified Regional Board under section 385F.
       ``(7) Regional investment strategy grant.--The term 
     `regional investment strategy grant' means a grant made by 
     the Secretary to a certified Regional Board under section 
     385E.

     ``SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL 
                   COLLABORATIVE INVESTMENT PROGRAM.

       ``(a) Establishment.--The Secretary shall establish a Rural 
     Collaborative Investment Program to support comprehensive 
     regional investment strategies for achieving rural 
     competitiveness.
       ``(b) Duties of Secretary.--In carrying out this subtitle, 
     the Secretary shall--
       ``(1) appoint and provide administrative and program 
     support to the National Board;
       ``(2) establish a national institute, to be known as the 
     `National Institute on Regional Rural Competitiveness and 
     Entrepreneurship', to provide technical assistance to the 
     Secretary and the National Board regarding regional 
     competitiveness and rural entrepreneurship, including 
     technical assistance for--
       ``(A) the development of rigorous analytic programs to 
     assist Regional Boards in determining the challenges and 
     opportunities that need to be addressed to receive the 
     greatest regional competitive advantage;
       ``(B) the provision of support for best practices developed 
     by the Regional Boards;
       ``(C) the establishment of programs to support the 
     development of appropriate governance and leadership skills 
     in the applicable regions; and
       ``(D) the evaluation of the progress and performance of the 
     Regional Boards in achieving benchmarks established in a 
     regional investment strategy;
       ``(3) work with the National Board to develop a national 
     rural investment plan, which shall--
       ``(A) create a framework to encourage and support a more 
     collaborative and targeted rural investment portfolio in the 
     United States;
       ``(B) establish the Rural Philanthropic Initiative, to work 
     with rural communities to create and enhance the pool of 
     permanent philanthropic resources committed to rural 
     community and economic development;
       ``(C) cooperate with the Regional Boards and State and 
     local governments, organizations, and entities to ensure 
     investment strategies are developed that take into 
     consideration existing rural assets; and
       ``(D) encourage the organization of Regional Boards;
       ``(4) certify the eligibility of Regional Boards to receive 
     regional investment strategy grants and regional innovation 
     grants;
       ``(5) provide grants for Regional Boards to develop and 
     implement regional investment strategies;
       ``(6) provide technical assistance to Regional Boards on 
     issues, best practices, and emerging trends relating to rural 
     development, in cooperation with the National Rural 
     Investment Board; and
       ``(7) provide analytic and programmatic support for 
     regional rural competitiveness through the National 
     Institute, including--
       ``(A) programs to assist Regional Boards in determining the 
     challenges and opportunities that must be addressed to 
     receive the greatest regional competitive advantage;
       ``(B) support for best practices development by the 
     regional investment boards;
       ``(C) programs to support the development of appropriate 
     governance and leadership skills in the region; and
       ``(D) a review and annual evaluation of the performance of 
     the Regional Boards (including progress in achieving 
     benchmarks established in a regional investment strategy) in 
     an annual report submitted to--
       ``(i) the Committee on Agriculture of the House of 
     Representatives; and
       ``(ii) the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate.
       ``(c) National Rural Investment Board.--The Secretary shall 
     establish within the Department of Agriculture a board to be 
     known as the `National Rural Investment Board'.
       ``(d) Duties of National Board.--The National Board shall--
       ``(1) not later than 180 days after the date of 
     establishment of the National Board, develop rules relating 
     to the operation of the National Board;
       ``(2) provide advice to the Secretary and subsequently 
     review the design, development, and execution of the National 
     Rural Investment Plan;
       ``(3) provide advice to Regional Boards on issues, best 
     practices, and emerging trends relating to rural development; 
     and
       ``(4) provide advice to the Secretary and the National 
     Institute on the development and execution of the program 
     under this subtitle.
       ``(e) Membership.--
       ``(1) In general.--The National Board shall consist of 14 
     members appointed by the Secretary not later than 180 days 
     after the date of enactment of the Food and Energy Security 
     Act of 2007.
       ``(2) Supervision.--The National Board shall be subject to 
     the general supervision and direction of the Secretary.
       ``(3) Sectors represented.--The National Board shall 
     consist of representatives from each of--
       ``(A) nationally recognized entrepreneurship organizations;
       ``(B) regional strategy and development organizations;
       ``(C) community-based organizations;
       ``(D) elected members of county and municipal governments;
       ``(E) elected members of State legislatures;
       ``(F) primary, secondary, and higher education, job skills 
     training, and workforce development institutions;
       ``(G) the rural philanthropic community;
       ``(H) financial, lending, venture capital, 
     entrepreneurship, and other related institutions;
       ``(I) private sector business organizations, including 
     chambers of commerce and other for-profit business interests;
       ``(J) Indian tribes; and
       ``(K) cooperative organizations.
       ``(4) Selection of members.--
       ``(A) In general.--In selecting members of the National 
     Board, the Secretary shall consider recommendations made by--
       ``(i) the chairman and ranking member of each of the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate;
       ``(ii) the Majority Leader and Minority Leader of the 
     Senate; and
       ``(iii) the Speaker and Minority Leader of the House of 
     Representatives.
       ``(B) Ex-officio members.--In consultation with the 
     chairman and ranking member of each of the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate, the 
     Secretary may appoint not more than 3 other officers or 
     employees of the Executive Branch to serve as ex-officio, 
     non-voting members of the National Board.
       ``(5) Term of office.--
       ``(A) In general.--Subject to subparagraph (B), the term of 
     office of a member of the National Board appointed under 
     paragraph (1)(A) shall be for a period of not more than 4 
     years.
       ``(B) Staggered terms.--The members of the National Board 
     shall be appointed to serve staggered terms.
       ``(6) Initial appointments.--Not later than 120 days after 
     the date of enactment of the Food and Energy Security Act of 
     2007, the Secretary shall appoint the initial members of the 
     National Board.
       ``(7) Vacancies.--A vacancy on the National Board shall be 
     filled in the same manner as the original appointment.
       ``(8) Compensation.--A member of the National Board shall 
     receive no compensation for service on the National Board, 
     but shall be reimbursed for related travel and other expenses 
     incurred in carrying out the duties of the member of the 
     National Board in accordance with section 5702 and 5703 of 
     title 5, United States Code.
       ``(9) Chairperson.--The National Board shall select a 
     chairperson from among the members of the National Board.
       ``(10) Federal status.--For purposes of Federal law, a 
     member of the National Board shall be considered a special 
     Government employee (as defined in section 202(a) of title 
     18, United States Code).
       ``(f) Administrative Support.--The Secretary, on a 
     reimbursable basis from funds made available under section 
     385H(b)(3), may provide such administrative support to the 
     National Board as the Secretary determines is necessary to 
     carry out the duties of the National Board.

     ``SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.

       ``(a) In General.--A Regional Rural Investment Board shall 
     be a multijurisdictional and multisectoral group that--

[[Page 29300]]

       ``(1) represents the long-term economic, community, and 
     cultural interests of a region;
       ``(2) is certified by the Secretary to establish a rural 
     investment strategy and compete for regional innovation 
     grants;
       ``(3) is composed of residents of a region that are broadly 
     representative of diverse public, nonprofit, and private 
     sector interests in investment in the region, including (to 
     the maximum extent practicable) representatives of--
       ``(A) units of local government (including 
     multijurisdictional units of local government);
       ``(B) nonprofit community-based development organizations, 
     including community development financial institutions and 
     community development corporations;
       ``(C) agricultural, natural resource, and other asset-based 
     related industries;
       ``(D) in the case of regions with federally recognized 
     Indian tribes, Indian tribes;
       ``(E) regional development organizations;
       ``(F) private business organizations, including chambers of 
     commerce;
       ``(G)(i) institutions of higher education (as defined in 
     section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1001(a)));
       ``(ii) tribally controlled colleges or universities (as 
     defined in section 2(a) of Tribally Controlled College or 
     University Assistance Act of 1978 (25 U.S.C. 1801(a))); and
       ``(iii) tribal technical institutions;
       ``(H) workforce and job training organizations;
       ``(I) other entities and organizations, as determined by 
     the Regional Board;
       ``(J) cooperatives; and
       ``(K) consortia of entities and organizations described in 
     subparagraphs (A) through (J);
       ``(4) represents a region inhabited by--
       ``(A) more than 25,000 individuals, as determined in the 
     latest available decennial census conducted under section 
     141(a) of title 13, United States Code; or
       ``(B) in the case of a region with a population density of 
     less than 2 individuals per square mile, at least 10,000 
     individuals, as determined in that latest available decennial 
     census;
       ``(5) has a membership of which not less than 25 percent, 
     nor more than 40 percent, represents--
       ``(A) units of local government and Indian tribes described 
     in subparagraphs (A) and (D) of paragraph (3);
       ``(B) nonprofit community and economic development 
     organizations and institutions of higher education described 
     in subparagraphs (B) and (G) of paragraph (3); or
       ``(C) private business (including chambers of commerce and 
     cooperatives) and agricultural, natural resource, and other 
     asset-based related industries described in subparagraphs (C) 
     and (F) of paragraph (3);
       ``(6) has a membership that may include an officer or 
     employee of a Federal or State agency, serving as an ex-
     officio, nonvoting member of the Regional Board to represent 
     the agency; and
       ``(7) has organizational documents that demonstrate that 
     the Regional Board shall--
       ``(A) create a collaborative, inclusive public-private 
     strategy process;
       ``(B) develop, and submit to the Secretary for approval, a 
     regional investment strategy that meets the requirements of 
     section 385E, with benchmarks--
       ``(i) to promote investment in rural areas through the use 
     of grants made available under this subtitle; and
       ``(ii) to provide financial and technical assistance to 
     promote a broad-based regional development program aimed at 
     increasing and diversifying economic growth, improved 
     community facilities, and improved quality of life;
       ``(C) implement the approved regional investment strategy;
       ``(D) provide annual reports to the Secretary and the 
     National Board on progress made in achieving the benchmarks 
     of the regional investment strategy, including an annual 
     financial statement; and
       ``(E) select a non-Federal organization (such as a regional 
     development organization) in the local area served by the 
     Regional Board that has previous experience in the management 
     of Federal funds to serve as fiscal manager of any funds of 
     the Regional Board.
       ``(b) Urban Areas.--A resident of an urban area may serve 
     as an ex-officio member of a Regional Board.
       ``(c) Duties.--A Regional Board shall--
       ``(1) create a collaborative and inclusive planning process 
     for public-private investment within a region;
       ``(2) develop, and submit to the Secretary for approval, a 
     regional investment strategy;
       ``(3) develop approaches that will create permanent 
     resources for philanthropic giving in the region, to the 
     maximum extent practicable;
       ``(4) implement an approved strategy; and
       ``(5) provide annual reports to the Secretary and the 
     National Board on progress made in achieving the strategy, 
     including an annual financial statement.

     ``SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.

       ``(a) In General.--The Secretary shall make regional 
     investment strategy grants available to Regional Boards for 
     use in developing, implementing, and maintaining regional 
     investment strategies.
       ``(b) Regional Investment Strategy.--A regional investment 
     strategy shall provide--
       ``(1) an assessment of the competitive advantage of a 
     region, including--
       ``(A) an analysis of the economic conditions of the region;
       ``(B) an assessment of the current economic performance of 
     the region;
       ``(C) a background overview of the population, geography, 
     workforce, transportation system, resources, environment, and 
     infrastructure needs of the region; and
       ``(D) such other pertinent information as the Secretary may 
     request;
       ``(2) an analysis of regional economic and community 
     development challenges and opportunities, including--
       ``(A) incorporation of relevant material from other 
     government-sponsored or supported plans and consistency with 
     applicable State, regional, and local workforce investment 
     strategies or comprehensive economic development plans; and
       ``(B) an identification of past, present, and projected 
     Federal and State economic and community development 
     investments in the region;
       ``(3) a section describing goals and objectives necessary 
     to solve regional competitiveness challenges and meet the 
     potential of the region;
       ``(4) an overview of resources available in the region for 
     use in--
       ``(A) establishing regional goals and objectives;
       ``(B) developing and implementing a regional action 
     strategy;
       ``(C) identifying investment priorities and funding 
     sources; and
       ``(D) identifying lead organizations to execute portions of 
     the strategy;
       ``(5) an analysis of the current state of collaborative 
     public, private, and nonprofit participation and investment, 
     and of the strategic roles of public, private, and nonprofit 
     entities in the development and implementation of the 
     regional investment strategy;
       ``(6) a section identifying and prioritizing vital 
     projects, programs, and activities for consideration by the 
     Secretary, including--
       ``(A) other potential funding sources; and
       ``(B) recommendations for leveraging past and potential 
     investments;
       ``(7) a plan of action to implement the goals and 
     objectives of the regional investment strategy;
       ``(8) a list of performance measures to be used to evaluate 
     the implementation of the regional investment strategy, 
     including--
       ``(A) the number and quality of jobs, including self-
     employment, created during implementation of the regional 
     rural investment strategy;
       ``(B) the number and types of investments made in the 
     region;
       ``(C) the growth in public, private, and nonprofit 
     investment in the human, community, and economic assets of 
     the region;
       ``(D) changes in per capita income and the rate of 
     unemployment; and
       ``(E) other changes in the economic environment of the 
     region;
       ``(9) a section outlining the methodology for use in 
     integrating the regional investment strategy with the 
     economic priorities of the State; and
       ``(10) such other information as the Secretary determines 
     to be appropriate.
       ``(c) Maximum Amount of Grant.--A regional investment 
     strategy grant shall not exceed $150,000.
       ``(d) Cost Sharing.--
       ``(1) In general.--Subject to paragraph (2), of the share 
     of the costs of developing, maintaining, evaluating, 
     implementing, and reporting with respect to a regional 
     investment strategy funded by a grant under this section--
       ``(A) not more than 40 percent may be paid using funds from 
     the grant; and
       ``(B) the remaining share shall be provided by the 
     applicable Regional Board or other eligible grantee.
       ``(2) Form.--A Regional Board or other eligible grantee 
     shall pay the share described in paragraph (1)(B) in the form 
     of cash, services, materials, or other in-kind contributions, 
     on the condition that not more than 50 percent of that share 
     is provided in the form of services, materials, and other in-
     kind contributions.

     ``SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM.

       ``(a) Grants.--
       ``(1) In general.--The Secretary shall provide, on a 
     competitive basis, regional innovation grants to Regional 
     Boards for use in implementing projects and initiatives that 
     are identified in a regional rural investment strategy 
     approved under section 385E.
       ``(2) Timing.--After October 1, 2008, the Secretary shall 
     provide awards under this section on a quarterly funding 
     cycle.
       ``(b) Eligibility.--For a Regional Board to receive a 
     regional innovation grant, the Secretary shall determine 
     that--
       ``(1) the regional rural investment strategy of a Regional 
     Board has been reviewed by the National Board prior to 
     approval by the Secretary;
       ``(2) the management and organizational structure of the 
     Regional Board is sufficient to oversee grant projects, 
     including management of Federal funds; and
       ``(3) the Regional Board has a plan to achieve, to the 
     maximum extent practicable,

[[Page 29301]]

     the performance-based benchmarks of the project in the 
     regional rural investment strategy of the Regional Board.
       ``(c) Limitations.--
       ``(1) Amount received.--A Regional Board may not receive 
     more than $6,000,000 in regional innovation grants under this 
     section during any 5-year period.
       ``(2) Determination of amount.--The Secretary shall 
     determine the amount of a regional innovation grant based 
     on--
       ``(A) the needs of the region being addressed by the 
     applicable regional rural investment strategy consistent with 
     the purposes described in subsection (f)(2); and
       ``(B) the size of the geographical area of the region.
       ``(3) Geographic diversity.--The Secretary shall ensure 
     that not more than 10 percent of funding made available under 
     this section is provided to Regional Boards in any State.
       ``(d) Cost-Sharing.--
       ``(1) Limitation.--Subject to paragraph (2), the amount of 
     a grant made under this section shall not exceed 50 percent 
     of the cost of the project.
       ``(2) Waiver of grantee share.--The Secretary may waive the 
     limitation in paragraph (1) under special circumstances, as 
     determined by the Secretary, including--
       ``(A) a sudden or severe economic dislocation;
       ``(B) significant chronic unemployment or poverty;
       ``(C) a natural disaster; or
       ``(D) other severe economic, social, or cultural duress.
       ``(3) Other federal assistance.--For the purpose of 
     determining cost-share limitations for any other Federal 
     program, funds provided under this section shall be 
     considered to be non-Federal funds.
       ``(e) Preferences.--In providing regional innovation grants 
     under this section, the Secretary shall give--
       ``(1) a high priority to strategies that demonstrate 
     significant leverage of capital and quality job creation; and
       ``(2) a preference to an application proposing projects and 
     initiatives that would--
       ``(A) advance the overall regional competitiveness of a 
     region;
       ``(B) address the priorities of a regional rural investment 
     strategy, including priorities that--
       ``(i) promote cross-sector collaboration, public-private 
     partnerships, or the provision of collaborative gap financing 
     or seed capital for program implementation;
       ``(ii) exhibit collaborative innovation and 
     entrepreneurship, particularly within a public-private 
     partnership; and
       ``(iii) represent a broad coalition of interests described 
     in section 385D(a);
       ``(C) include a strategy to leverage public non-Federal and 
     private funds and existing assets, including agricultural 
     assets, natural assets, and public infrastructure, with 
     substantial emphasis placed on the existence of real 
     financial commitments to leverage the available funds;
       ``(D) create quality jobs;
       ``(E) enhance the role, relevance, and leveraging potential 
     of community and regional foundations in support of regional 
     investment strategies;
       ``(F) demonstrate a history, or involve organizations with 
     a history, of successful leveraging of capital for economic 
     development and public purposes;
       ``(G) address gaps in existing basic services, including 
     technology, within a region;
       ``(H) address economic diversification, including 
     agricultural and non-agriculturally based economies, within a 
     regional framework;
       ``(I) improve the overall quality of life in the region 
     (including with respect to education, health care, housing, 
     recreation, and arts and culture);
       ``(J) enhance the potential to expand economic development 
     successes across diverse stakeholder groups within the 
     region;
       ``(K) include an effective working relationship with 1 or 
     more institutions of higher education, tribally controlled 
     colleges or universities, or tribal technical institutions; 
     or
       ``(L) help to meet the other regional competitiveness needs 
     identified by a Regional Board.
       ``(f) Uses.--
       ``(1) Leverage.--A Regional Board shall prioritize projects 
     and initiatives carried out using funds from a regional 
     innovation grant provided under this section, based in part 
     on the degree to which members of the Regional Board are able 
     to leverage additional funds for the implementation of the 
     projects.
       ``(2) Purposes.--A Regional Board may use a regional 
     innovation grant--
       ``(A) to support the development of critical infrastructure 
     (including technology deployment and services) necessary to 
     facilitate the competitiveness of a region;
       ``(B) to provide assistance to entities within the region 
     that provide essential public and community services;
       ``(C) to enhance the value-added production, marketing, and 
     use of agricultural and natural resources within the region, 
     including activities relating to renewable and alternative 
     energy production and usage;
       ``(D) to assist with entrepreneurship, job training, 
     workforce development, housing, educational, or other quality 
     of life services or needs, relating to the development and 
     maintenance of strong local and regional economies;
       ``(E) to assist in the development of unique new 
     collaborations that link public, private, and philanthropic 
     resources, including community foundations;
       ``(F) to provide support for business and entrepreneurial 
     investment, strategy, expansion, and development, including 
     feasibility strategies, technical assistance, peer networks, 
     and business development funds;
       ``(G) to carry out other broad activities relating to 
     strengthening the economic competitiveness of the region; and
       ``(H) to provide matching funds to enable community 
     foundations located within the region to build endowments 
     which provide permanent philanthropic resources to implement 
     a regional investment strategy.
       ``(3) Availability of funds.--The funds made available to a 
     Regional Board or any other eligible grantee through a 
     regional innovation grant shall remain available for the 7-
     year period beginning on the date on which the award is 
     provided, on the condition that the Regional Board or other 
     grantee continues to be certified by the Secretary as making 
     adequate progress toward achieving established benchmarks.
       ``(g) Cost Sharing.--
       ``(1) Waiver of grantee share.--The Secretary may waive the 
     share of a grantee of the costs of a project funded by a 
     regional innovation grant under this section if the Secretary 
     determines that such a waiver is appropriate, including with 
     respect to special circumstances within tribal regions, in 
     the event an area experiences--
       ``(A) a sudden or severe economic dislocation;
       ``(B) significant chronic unemployment or poverty;
       ``(C) a natural disaster; or
       ``(D) other severe economic, social, or cultural duress.
       ``(2) Other federal programs.--For the purpose of 
     determining cost-sharing requirements for any other Federal 
     program, funds provided as a regional innovation grant under 
     this section shall be considered to be non-Federal funds.
       ``(h) Noncompliance.--If a Regional Board or other eligible 
     grantee fails to comply with any requirement relating to the 
     use of funds provided under this section, the Secretary may--
       ``(1) take such actions as are necessary to obtain 
     reimbursement of unused grant funds; and
       ``(2) reprogram the recaptured funds for purposes relating 
     to implementation of this subtitle.
       ``(i) Priority to Areas With Awards and Approved 
     Strategies.--
       ``(1) In general.--Subject to paragraph (3), in providing 
     rural development assistance under other programs, the 
     Secretary shall give a high priority to areas that receive 
     innovation grants under this section.
       ``(2) Consultation.--The Secretary shall consult with the 
     heads of other Federal agencies to promote the development of 
     priorities similar to those described in paragraph (1).
       ``(3) Exclusion of certain programs.--Paragraph (1) shall 
     not apply to the provision of rural development assistance 
     under any program relating to basic health, safety, or 
     infrastructure, including broadband deployment or minimum 
     environmental needs.

     ``SEC. 385G. RURAL ENDOWMENT LOANS PROGRAM.

       ``(a) In General.--The Secretary may provide long-term 
     loans to eligible community foundations to assist in the 
     implementation of regional investment strategies.
       ``(b) Eligible Community Foundations.--To be eligible to 
     receive a loan under this section, a community foundation 
     shall--
       ``(1) be located in an area that is covered by a regional 
     investment strategy;
       ``(2) match the amount of the loan with an amount that is 
     at least 250 percent of the amount of the loan; and
       ``(3) use the loan and the matching amount to carry out the 
     regional investment strategy targeted to community and 
     economic development, including through the development of 
     community foundation endowments.
       ``(c) Terms.--A loan made under this section shall--
       ``(1) have a term of not less than 10, nor more than 20, 
     years;
       ``(2) bear an interest rate of 1 percent per annum; and
       ``(3) be subject to such other terms and conditions as are 
     determined appropriate by the Secretary.

     ``SEC. 385H. FUNDING.

       ``(a) In General.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use $135,000,000 to carry 
     out this subtitle, to remain available until expended.
       ``(b) Use by Secretary.--Of the amounts made available to 
     the Secretary under subsection (a), the Secretary shall use--
       ``(1) $15,000,000 to be provided for regional investment 
     strategy grants to Regional Boards under section 385E;
       ``(2) $110,000,000 to provide innovation grants to Regional 
     Boards under section 385F and for the cost of rural endowment 
     loans under section 385G;
       ``(3) $5,000,000 for fiscal year 2008 to administer the 
     duties of the National Board, to remain available until 
     expended; and

[[Page 29302]]

       ``(4) $5,000,000 for fiscal year 2008 to administer the 
     National Institute, to remain available until expended.
       ``(c) Authorization of Appropriations.--In addition to 
     funds otherwise made available to carry out this subtitle, 
     there are authorized to be appropriated to the Secretary such 
     sums as are necessary to carry out this subtitle.''.

     SEC. 6033. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND 
                   GRANT APPLICATIONS.

       (a) Definition of Application.--In this section, the term 
     ``application'' does not include an application for a loan or 
     grant that, as of the date of enactment of this Act, is in 
     the preapplication phase of consideration under regulations 
     of the Secretary in effect on the date of enactment of this 
     Act.
       (b) Use of Funds.--Subject to subsection (c), the Secretary 
     shall use funds made available under subsection (d) to 
     provide funds for applications that are pending on the date 
     of enactment of this Act for--
       (1) water or waste disposal grants or direct loans under 
     paragraph (1) or (2) of section 306(a) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1926(a)); and
       (2) emergency community water assistance grants under 
     section 306A of that Act (7 U.S.C. 1926a).
       (c) Limitations.--
       (1) Appropriated amounts.--Funds made available under this 
     section shall be available to the Secretary to provide funds 
     for applications for loans and grants described in subsection 
     (b) that are pending on the date of enactment of this Act 
     only to the extent that funds for the loans and grants 
     appropriated in the annual appropriations Act for fiscal year 
     2007 have been exhausted.
       (2) Program requirements.--The Secretary may use funds made 
     available under this section to provide funds for a pending 
     application for a loan or grant described in subsection (b) 
     only if the Secretary processes, reviews, and approves the 
     application in accordance with regulations in effect on the 
     date of enactment of this Act.
       (3) Priority.--In providing funding under this section for 
     pending applications for loans or grants described in 
     subsection (b), the Secretary shall provide funding in the 
     following order of priority (until funds made available under 
     this section are exhausted):
       (A) Pending applications for water systems.
       (B) Pending applications for waste disposal systems.
       (4) Individual states.--In allocating funds made available 
     under subsection (d), the Secretary shall use not more 5 
     percent of the funds for pending applications for loans or 
     grants described in subsection (b) that are made in any 
     individual State.
       (d) Funding.--Notwithstanding any other provision of law, 
     of the funds of the Commodity Credit Corporation, the 
     Secretary shall use to carry out this section $135,000,000, 
     to remain available until expended.

             Subtitle B--Rural Electrification Act of 1936

     SEC. 6101. ENERGY EFFICIENCY PROGRAMS.

       Sections 2(a) and 4 of the Rural Electrification Act of 
     1936 (7 U.S.C. 902(a), 904) are amended by inserting 
     ``efficiency and'' before ``conservation'' each place it 
     appears.

     SEC. 6102. LOANS AND GRANTS FOR ELECTRIC GENERATION AND 
                   TRANSMISSION.

       (a) In General.--Section 4 of the Rural Electrification Act 
     of 1936 (7 U.S.C. 904) is amended in the first sentence by 
     striking ``authorized and empowered, from the sums 
     hereinbefore authorized, to'' and inserting ``shall''.
       (b) Rural Communities With Extremely High Energy Costs.--
     Section 19(a) of the Rural Electrification Act of 1936 (7 
     U.S.C. 918a(a)) is amended in the matter preceding paragraph 
     (1) by striking ``may'' and inserting ``shall''.

     SEC. 6103. FEES FOR ELECTRIFICATION BASELOAD GENERATION LOAN 
                   GUARANTEES.

       The Rural Electrification Act of 1936 is amended by 
     inserting after section 4 (7 U.S.C. 904) the following:

     ``SEC. 5. FEES FOR ELECTRIFICATION BASELOAD GENERATION LOAN 
                   GUARANTEES.

       ``(a) In General.--For electrification baseload generation 
     loan guarantees, the Secretary shall, at the request of the 
     borrower, charge an upfront fee to cover the costs of the 
     loan guarantee.
       ``(b) Fee.--
       ``(1) In general.--The fee described in subsection (a) for 
     a loan guarantee shall be at least equal to the costs of the 
     loan guarantee (within the meaning of section 502(5)(C) of 
     the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
       ``(2) Separate fee.--The Secretary may establish a separate 
     fee for each loan.
       ``(c) Eligibility.--To be eligible for an electrification 
     baseload generation loan guarantee under this section, a 
     borrower shall--
       ``(1) provide a rating of the loan, exclusive of the 
     Federal guarantee, by an organization identified by the 
     Securities and Exchange Commission as a nationally recognized 
     statistical rating organization that determines that the loan 
     has at least a AA rating, or equivalent rating, as determined 
     by the Secretary; or
       ``(2) obtain insurance or a guarantee for the full and 
     timely repayment of principal and interest on the loan from 
     an entity that has at least an AA or equivalent rating by a 
     nationally recognized statistical rating organization.
       ``(d) Limitation.--Funds received from a borrower to pay 
     for the fees described in this section shall not be derived 
     from a loan or other debt obligation that is made or 
     guaranteed by the Federal Government.''.

     SEC. 6104. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED 
                   ENERGY EFFICIENCY AND DEMAND REDUCTION.

       Section 12 of the Rural Electrification Act of 1936 (7 
     U.S.C. 912) is amended by adding at the end the following:
       ``(c) Deferment of Payments to Allows Loans for Improved 
     Energy Efficiency and Demand Reduction.--
       ``(1) In general.--The Secretary shall allow borrowers to 
     defer payment of principal and interest on any direct loan 
     made under this Act to enable the borrower to make loans to 
     residential, commercial, and industrial consumers to install 
     energy efficient measures or devices that reduce the demand 
     on electric systems.
       ``(2) Amount.--The total amount of a deferment under this 
     subsection shall not exceed the sum of the principal and 
     interest on the loans made to a customer of the borrower, as 
     determined by the Secretary.
       ``(3) Term.--The term of a deferment under this subsection 
     shall not exceed 60 months.''.

     SEC. 6105. RURAL ELECTRIFICATION ASSISTANCE.

       Section 13 of the Rural Electrification Act of 1936 (7 
     U.S.C. 913) is amended to read as follows:

     ``SEC. 13. DEFINITIONS.

       ``In this Act:
       ``(1) Farm.--The term `farm' means a farm, as defined by 
     the Bureau of the Census.
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) Rural area.--
       ``(A) In general.--Except as provided otherwise in this 
     Act, the term `rural area' means the farm and nonfarm 
     population of--
       ``(i) any area described in section 343(a)(13)(A) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a)(13)(A)); and
       ``(ii) any area within a service area of a borrower for 
     which a borrower has an outstanding loan made under titles I 
     through V as of the date of enactment of this paragraph.
       ``(B) Rural broadband access.--For the purpose of loans and 
     loan guarantees made under section 601, the term `rural area' 
     has the meaning given the term in section 343(a)(13)(C) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a)(13)(C)).
       ``(4) Territory.--The term `territory' includes any insular 
     possession of the United States.
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.''.

     SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   ELECTRIFICATION OR TELEPHONE PURPOSES.

       Section 313A of the Rural Electrification Act of 1936 (7 
     U.S.C. 940c-1) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``for electrification'' 
     and all that follows through the end and inserting ``for 
     eligible electrification or telephone purposes consistent 
     with this Act.''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Annual amount.--The total amount of guarantees 
     provided by the Secretary under this section during a fiscal 
     year shall not exceed $1,000,000,000, subject to the 
     availability of funds under subsection (e).'';
       (2) in subsection (c), by striking paragraphs (2) and (3) 
     and inserting the following:
       ``(2) Amount.--
       ``(A) In general.--The amount of the annual fee paid for 
     the guarantee of a bond or note under this section shall be 
     equal to 30 basis points of the amount of the unpaid 
     principal of the bond or note guaranteed under this section.
       ``(B) Prohibition.--Except as otherwise provided in this 
     subsection and subsection (e)(2), no other fees shall be 
     assessed.
       ``(3) Payment.--
       ``(A) In general.--A lender shall pay the fees required 
     under this subsection on a semiannual basis.
       ``(B) Structured schedule.--The Secretary shall, with the 
     consent of the lender, structure the schedule for payment of 
     the fee to ensure that sufficient funds are available to pay 
     the subsidy costs for note or bond guarantees as provided for 
     in subsection (e)(2).''; and
       (3) in subsection (f), by striking ``2007'' and inserting 
     ``2012''.

     SEC. 6107. EXPANSION OF 911 ACCESS.

       Section 315 of the Rural Electrification Act of 1936 (7 
     U.S.C. 940e) is amended to read as follows:

     ``SEC. 315. EXPANSION OF 911 ACCESS.

       ``(a) In General.--Subject to such terms and conditions as 
     the Secretary may prescribe, the Secretary may make loans 
     under this title to entities eligible to borrow from the 
     Rural Utilities Service, emergency communications equipment 
     providers, State or local governments, Indian tribes (as 
     defined

[[Page 29303]]

     in section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b)), or other public entities 
     for facilities and equipment to expand or improve--
       ``(1) 911 access;
       ``(2) integrated interoperable emergency communications, 
     including multiuse networks that--
       ``(A) serve rural areas; and
       ``(B) provide commercial services or transportation 
     information services in addition to emergency communications 
     services;
       ``(3) homeland security communications;
       ``(4) transportation safety communications; or
       ``(5) location technologies used outside an urbanized area.
       ``(b) Loan Security.--Government-imposed fees related to 
     emergency communications (including State or local 911 fees) 
     may be considered to be security for a loan under this 
     section.
       ``(c) Regulations.--The Secretary shall--
       ``(1) not later than 90 days after the date of enactment of 
     this subsection, promulgate proposed regulations to carry out 
     this section; and
       ``(2) not later than 90 days after the publication of 
     proposed rules to carry out this section, adopt final rules.
       ``(d) Authorization of Appropriations.--The Secretary shall 
     use to make loans under this section any funds otherwise made 
     available for telephone or broadband loans for each of fiscal 
     years 2007 through 2012.''.

     SEC. 6108. ELECTRIC LOANS TO RURAL ELECTRIC COOPERATIVES.

       Title III of the Rural Electrification Act of 1936 is 
     amended by inserting after section 316 (7 U.S.C. 940f) the 
     following:

     ``SEC. 317. ELECTRIC LOANS TO RURAL ELECTRIC COOPERATIVES.

       ``(a) Definition of Renewable Energy Source.--In this 
     section, the term `renewable energy source' has the meaning 
     given the term `qualified energy resources' in section 
     45(c)(1) of the Internal Revenue Code of 1986.
       ``(b) Loans.--In addition to any other funds or authorities 
     otherwise made available under this Act, the Secretary may 
     make electric loans under this title for--
       ``(1) electric generation from renewable energy resources 
     for resale to rural and nonrural residents; and
       ``(2) transmission lines principally for the purpose of 
     wheeling power from 1 or more renewable energy sources.
       ``(c) Rate.--The rate of a loan under this section shall be 
     equal to the average tax-exempt municipal bond rate of 
     similar maturities.''.

     SEC. 6109. AGENCY PROCEDURES.

       Title III of the Rural Electrification Act of 1936 is 
     amended by inserting after section 317 (as added by section 
     6108) the following:

     ``SEC. 318. AGENCY PROCEDURES.

       ``(a) Customer Service.--The Secretary shall ensure that 
     loan applicants under this Act are contacted at least once 
     each month by the Rural Utilities Service regarding the 
     status of any pending loan applications.
       ``(b) Financial Need.--The Secretary shall ensure that--
       ``(1) an applicant for any grant program administered by 
     the Rural Utilities Service has an opportunity to present 
     special economic circumstances in support of the grant, such 
     as the high cost of living, out migration, low levels of 
     employment, weather damage, or environmental loss; and
       ``(2) the special economic circumstances presented by the 
     applicant are considered in determining the financial need of 
     the applicant.
       ``(c) Mobile Digital Wireless.--To facilitate the 
     transition from analog wireless service to digital mobile 
     wireless service, the Secretary may adjust population 
     limitations under this Act related to digital mobile wireless 
     service up to the level permitted under section 601.
       ``(d) Bonding Requirements.--The Secretary shall review the 
     bonding requirements for all programs administered by the 
     Rural Utilities Service under this Act to ensure that bonds 
     are not required if--
       ``(1) the interests of the Secretary are adequately 
     protected by product warranties; or
       ``(2) the costs or conditions associated with a bond exceed 
     the benefit of the bond to the Secretary.''.

     SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN 
                   RURAL AREAS.

       (a) In General.--Section 601 of the Rural Electrification 
     Act of 1936 (7 U.S.C. 950bb) is amended to read as follows:

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

       ``(a) Purpose.--The purpose of this section is to provide 
     loans and loan guarantees to provide funds for the costs of 
     the construction, improvement, and acquisition of facilities 
     and equipment for broadband service in rural areas.
       ``(b) Definition of Broadband Service.--In this section:
       ``(1) In general.--The term `broadband service' means any 
     technology identified by the Secretary as having the capacity 
     to transmit data to enable a subscriber to the service to 
     originate and receive high-quality voice, data, graphics, and 
     video.
       ``(2) Mobile broadband.--The term `broadband service' 
     includes any service described in paragraph (1) that is 
     provided over a licensed spectrum through the use of a mobile 
     station or receiver communicating with a land station or 
     other mobile stations communicating among themselves.
       ``(c) Loans and Loan Guarantees.--
       ``(1) In general.--The Secretary shall make or guarantee 
     loans to eligible entities described in subsection (d) to 
     provide funds for the construction, improvement, or 
     acquisition of facilities and equipment for the provision of 
     broadband service in rural areas.
       ``(2) Priority.--In making or guaranteeing loans under 
     paragraph (1), the Secretary shall give the highest priority 
     to applicants that offer to provide broadband service to the 
     greatest proportion of households that, prior to the 
     provision of the service, had no terrestrial broadband 
     service provider.
       ``(3) Offer of service.--For purposes of this section, a 
     provider shall be considered to offer broadband service in a 
     rural area if the provider makes the broadband service 
     available to households in the rural area at not more than 
     average prices as compared to the prices at which similar 
     services are made available in the nearest urban area, as 
     determined by the Secretary.
       ``(d) Eligible Entities.--
       ``(1) Requirements.--
       ``(A) In general.--To be eligible to obtain a loan or loan 
     guarantee under this section, an entity shall--
       ``(i) have the ability to furnish, improve, or extend a 
     broadband service to a rural area;
       ``(ii) submit to the Secretary a proposal that meets the 
     requirements of this section for a project to offer to 
     provide service to at least 25 percent of households in a 
     specified rural area that, as of the date on which the 
     proposal is submitted, are not offered broadband service by a 
     terrestrial broadband service provider; and
       ``(iii) agree to complete buildout of the broadband service 
     described in the proposal not later than 3 years after the 
     date on which a loan or loan guarantee under this section is 
     received.
       ``(B) Prohibition.--In carrying out this section, the 
     Secretary may not make a loan or loan guarantee for a project 
     in any specific area in which broadband service is offered by 
     3 or more terrestrial service providers that offer services 
     that are comparable to the services proposed by the 
     applicant.
       ``(C) Equity and market survey requirements.--
       ``(i) In general.--The Secretary may require an entity to 
     provide a cost share in an amount not to exceed 10 percent of 
     the amount of the loan or loan guarantee requested in the 
     application of the entity.
       ``(ii) Credit.--Recurring revenues of an entity, including 
     broadband service client revenues, may be credited toward the 
     cost share required under clause (i).
       ``(iii) Market survey.--

       ``(I) In general.--The Secretary may require an entity that 
     proposes to have a subscriber projection of more than 20 
     percent of the broadband service market in a rural area to 
     submit to the Secretary a market survey.
       ``(II) Less than 20 percent.--The Secretary may not require 
     an entity that proposes to have a subscriber projection of 
     less than 20 percent of the broadband service market in a 
     rural area to submit to the Secretary a market survey.

       ``(2) State and local governments and indian tribes.--
     Subject to paragraph (1), a State or local government 
     (including any agency, subdivision, or instrumentality 
     thereof (including consortia thereof)) and an Indian tribe 
     shall be eligible for a loan or loan guarantee under this 
     section to provide broadband services to a rural area.
       ``(3) Adequacy of security.--The Secretary shall ensure 
     that the type, amount, and method of security used to secure 
     any loan or loan guarantee provided under this section is 
     commensurate to the risk involved with the loan or loan 
     guarantee, particularly if the loan or loan guarantee is 
     issued to a financially-healthy, strong, and stable entity.
       ``(4) Limitation.--No entity (including subsidiaries of an 
     entity) may acquire more than 20 percent of the resources of 
     the program under this section in any fiscal year, as 
     determined by the Secretary.
       ``(5) Notice requirement.--The Secretary shall include a 
     notice of applications under this section on the website of 
     the Secretary for a period of not less than 90 days.
       ``(6) Proposal information.--
       ``(A) Public access.--The Secretary shall make available on 
     the website of the Secretary during the consideration of a 
     loan by the Secretary--
       ``(i) the name of the applicant;
       ``(ii) a description and geographical representation of the 
     proposed area of broadband service;
       ``(iii) a geographical representation and numerical 
     estimate of the households that have no terrestrial broadband 
     service offered in the proposed service area of the project; 
     and
       ``(iv) such other relevant information that the Secretary 
     determines to be appropriate.
       ``(B) Proprietary information.--In making information 
     available relating to a loan proposal as described in 
     subparagraph (A), the Secretary shall not make available 
     information that is proprietary (within the meaning of 
     section 552(b)(4) of title 5, United States Code) to the 
     business interests of the loan applicant.

[[Page 29304]]

       ``(7) Timeline.--The Secretary shall establish a timeline 
     on the website for the Secretary for tracking applications 
     received under this section.
       ``(8) Additional information and determination.--
       ``(A) Prompt processing of applications.--
       ``(i) In general.--The Secretary shall establish, by 
     regulation, procedures to ensure prompt processing of loan 
     and loan guarantee applications under this section.
       ``(ii) Time limits.--Subject to clause (iii), the 
     regulations shall establish general time limits for action by 
     the Secretary and applicant response.
       ``(iii) Extensions.--The Secretary may grant an extension 
     for a time limit established under clause (ii).
       ``(iv) Annual reports.--The Secretary shall publish an 
     annual report that--

       ``(I) describes processing times for loan and loan 
     guarantee applications under this section; and
       ``(II) provides an explanation for any processing time 
     extensions required by the Secretary.

       ``(B) Additional information.--Not later than 60 days after 
     the date on which an applicant submits an application, the 
     Secretary shall request any additional information required 
     for the application to be complete.
       ``(C) Determination.--Not later than 180 days after the 
     date on which an applicant submits a completed application, 
     the Secretary shall make a determination of whether to 
     approve the application.
       ``(9) Loan closing.--Not later than 45 days after the date 
     on which the Secretary approves an application, documents 
     necessary for the closing of the loan or loan guarantee shall 
     be provided to applicant.
       ``(10) Fund disbursement.--Not later than 10 business days 
     after the date of the receipt of valid documentation 
     requesting disbursement of the approved, closed loan, the 
     disbursement of loan funds shall occur.
       ``(11) Preapplication process.--The Secretary shall 
     establish an optional preapplication process under which an 
     applicant may apply to the Rural Utilities Service for a 
     binding determination of area eligibility prior to preparing 
     a full loan application.
       ``(12) Pending applications.--An application for a loan or 
     loan guarantee under this section, or a petition for 
     reconsideration of a decision on such an application, that is 
     pending on the date of enactment of this paragraph shall be 
     considered under eligibility and feasibility criteria that 
     are no less favorable to the applicant than the criteria in 
     effect on the original date of submission of the application.
       ``(e) Broadband Service.--
       ``(1) In general.--The Secretary shall, from time to time 
     as advances in technology warrant, review and recommend 
     modifications of rate-of-data transmission criteria for 
     purposes of the identification of broadband service 
     technologies under subsection (b).
       ``(2) Prohibition.--The Secretary shall not establish 
     requirements for bandwidth or speed that have the effect of 
     precluding the use of evolving technologies appropriate for 
     rural areas outside rural communities.
       ``(f) Technological Neutrality.--For purposes of 
     determining whether to make a loan or loan guarantee for a 
     project under this section, the Secretary shall use criteria 
     that are technologically neutral.
       ``(g) Terms and Conditions for Loans and Loan Guarantees.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a loan or loan guarantee under subsection (c) shall--
       ``(A) bear interest at an annual rate of, as determined by 
     the Secretary--
       ``(i) in the case of a direct loan, the lower of--

       ``(I) the cost of borrowing to the Department of the 
     Treasury for obligations of comparable maturity; or
       ``(II) 4 percent; and

       ``(ii) in the case of a guaranteed loan, the current 
     applicable market rate for a loan of comparable maturity; and
       ``(B) except as provided in paragraph (2), have a term not 
     to exceed the useful life of the assets constructed, 
     improved, or acquired with the proceeds of the loan or 
     extension of credit.
       ``(2) Term of loan exception.--A loan or loan guarantee 
     under subsection (c) may have a term not to exceed 30 years 
     if the Secretary determines that the loan security is 
     sufficient.
       ``(3) Recurring revenue.--The Secretary shall consider the 
     recurring revenues of the entity at the time of application 
     in determining an adequate level of credit support.
       ``(h) Use of Loan Proceeds to Refinance Loans for 
     Deployment of Broadband Service.--Notwithstanding any other 
     provision of this Act, the proceeds of any loan made or 
     guaranteed by the Secretary under this Act may be used by the 
     recipient of the loan for the purpose of refinancing an 
     outstanding obligation of the recipient on another 
     telecommunications-related loan made under this Act if the 
     use of the proceeds for that purpose will further the 
     construction, improvement, or acquisition of facilities and 
     equipment for the provision of broadband service in rural 
     areas.
       ``(i) Reports.--Not later than 1 year after the date of 
     enactment of the Food and Energy Security Act of 2007, and 
     biennially thereafter, the Administrator shall submit to 
     Congress a report that--
       ``(1) describes the ways in which the Administrator 
     determines under subsection (b)(1) that a service enables a 
     subscriber to originate and receive high-quality voice, data, 
     graphics, and video; and
       ``(2) provides a detailed list of services that have been 
     granted assistance under this section.
       ``(j) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $25,000,000 for each of fiscal years 2008 through 2012.
       ``(2) Allocation of funds.--
       ``(A) In general.--From amounts made available for each 
     fiscal year under this subsection, the Secretary shall--
       ``(i) establish a national reserve for loans and loan 
     guarantees to eligible entities in States under this section; 
     and
       ``(ii) allocate amounts in the reserve to each State for 
     each fiscal year for loans and loan guarantees to eligible 
     entities in the State.
       ``(B) Amount.--Based on information available from the most 
     recent decennial census, the amount of an allocation made to 
     a State for a fiscal year under subparagraph (A) shall bear 
     the same ratio to the amount of allocations made for all 
     States for the fiscal year as--
       ``(i) the number of communities with a population of 2,500 
     inhabitants or less in the State; bears to
       ``(ii) the number of communities with a population of 2,500 
     inhabitants or less in all States.
       ``(C) Unobligated amounts.--Any amounts in the reserve 
     established for a State for a fiscal year under subparagraph 
     (B) that are not obligated by April 1 of the fiscal year 
     shall be available to the Secretary to make loans and loan 
     guarantees under this section to eligible entities in any 
     State, as determined by the Secretary.
       ``(k) Termination of Authority.--No loan or loan guarantee 
     may be made under this section after September 30, 2012.''.
       (b) National Center for Rural Telecommunications 
     Assessment.--Title VI of Rural Electrification Act of 1936 (7 
     U.S.C. 950bb et seq.) is amended by adding at the end the 
     following:

     ``SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS 
                   ASSESSMENT.

       ``(a) Establishment of Center.--The Secretary shall 
     designate a National Center for Rural Telecommunications 
     Assessment (referred to in this section as the `Center').
       ``(b) Criteria.--In designating the Center, the Secretary 
     shall ensure that--
       ``(1) the Center is an entity with a focus on rural policy 
     research and a minimum of 5 years experience in rural 
     telecommunications research and assessment;
       ``(2) the Center is capable of assessing broadband services 
     in rural areas; and
       ``(3) the Center has significant experience with other 
     rural economic development centers and organizations in the 
     assessment of rural policies and formulation of policy 
     solutions at the local, State, and Federal levels.
       ``(c) Duties.--The Center shall--
       ``(1) assess the effectiveness of programs under this 
     section in increasing broadband availability and use in rural 
     areas, especially in those rural communities identified by 
     the Secretary as having no service before award of a 
     broadband loan or loan guarantee under section 601(c);
       ``(2) develop assessments of broadband availability in 
     rural areas, working with existing rural development centers 
     selected by the Center;
       ``(3) identify policies and initiatives at the local, 
     State, and Federal level that have increased broadband 
     availability and use in rural areas;
       ``(4) conduct national studies of rural households and 
     businesses focusing on the adoption of, barriers to, and use 
     of broadband services, with specific attention addressing the 
     economic, social and educational consequences of 
     inaccessibility to affordable broadband services;
       ``(5) provide reports to the public on the activities 
     carried out and funded under this section; and
       ``(6) conduct studies and provide recommendations to local, 
     State, and Federal policymakers on effective strategies to 
     bring affordable broadband services to rural citizens 
     residing outside of the municipal boundaries of rural cities 
     and towns.
       ``(d) Reporting Requirements.--Not later than December 1, 
     2008, and each year thereafter through December 1, 2012, the 
     Center shall submit to the Secretary a report that--
       ``(1) describes the activities of the Center, the results 
     of research carried out by the Center, and any additional 
     information for the preceding fiscal year that the Secretary 
     may request; and
       ``(2) includes--
       ``(A) assessments of the programs carried out under this 
     section and section 601;
       ``(B) annual assessments on the effects of the policy 
     initiatives identified under subsection (c)(3); and
       ``(C) results from the national studies of rural households 
     and businesses conducted under subsection (c)(4).

[[Page 29305]]

       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $1,000,000 for each of fiscal years 2008 through 2012.''.
       (c) Regulations.--The Secretary may promulgate such 
     regulations as are necessary to implement the amendments made 
     by this section.

     SEC. 6111. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

       The Rural Electrification Act of 1936 is amended by 
     inserting after section 306E (7 U.S.C. 936e) the following:

     ``SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

       ``(a) Definitions.--In this section:
       ``(1) Substantially underserved trust area.--The term 
     `substantially underserved trust area' means a community in 
     `trust land' (as defined in section 3765 of title 38, United 
     States Code) in which more than 20 percent of the residents 
     do not have modern, affordable, or reliable utility services, 
     as determined by the Secretary.
       ``(2) Utility service.--The term `utility service' means 
     electric, telecommunications, broadband, or water service.
       ``(b) Initiative.--The Secretary, in consultation with 
     local governments and Federal agencies, may implement an 
     initiative to identify and improve the availability and 
     quality of utility services in communities in substantially 
     underserved trust areas.
       ``(c) Authority of Secretary.--In carrying out subsection 
     (b), the Secretary--
       ``(1) may make available from loan or loan guarantee 
     programs administered by the Rural Utilities Service to 
     qualified utilities or applicants financing with an interest 
     rate as low as 2 percent, and extended repayment terms, for 
     use in facilitating improved utility service in substantially 
     underserved trust areas;
       ``(2) may waive nonduplication restrictions, matching fund 
     requirements, credit support requirements, or other 
     regulations from any loan or grant program administered by 
     the Rural Utilities Service to facilitate the construction, 
     acquisition, or improvement of infrastructure used to deliver 
     affordable utility services to substantially underserved 
     trust areas;
       ``(3) may assign the highest funding priority to projects 
     in substantially underserved trust areas;
       ``(4) shall make any loan or loan guarantee found to be 
     financially feasible to provide service to substantially 
     underserved trust areas; and
       ``(5) may conduct research and participate in regulatory 
     proceedings to recommend policy changes to enhance utility 
     service in substantially underserved trust areas.
       ``(d) Report.--Not later than 1 year after the date of 
     enactment of this section and annually thereafter, the 
     Secretary shall submit to Congress a report that describes--
       ``(1) the progress of the initiative implemented under 
     subsection (b); and
       ``(2) recommendations for any regulatory or legislative 
     changes that would be appropriate to improve services to 
     substantially underserved trust areas.''.

     SEC. 6112. STUDY OF FEDERAL ASSISTANCE FOR BROADBAND 
                   INFRASTRUCTURE.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of--
       (1) how the Rural Utilities Service takes into account 
     economic factors in the decisionmaking process of the Service 
     in allocating Federal broadband benefits;
       (2) what other considerations the Rural Utilities Service 
     takes into account in making benefit awards;
       (3) what economic forces prompt Rural Utilities Service 
     broadband loan applicants to seek Federal funding rather than 
     relying on the private market alone;
       (4) how awards made by the Rural Utilities Service of 
     Federal benefits impact the expansion of broadband 
     infrastructure by the private sector; and
       (5) what changes to Federal policy are needed to further 
     encourage technology expansion by private broadband service 
     providers.
       (b) Report.--Not later than 30 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that describes 
     the results of the study conducted under subsection (a), 
     including any findings and recommendations.

                   Subtitle C--Connect the Nation Act

     SEC. 6201. SHORT TITLE.

       This subtitle may be cited as the ``Connect the Nation 
     Act''.

     SEC. 6202. GRANTS TO ENCOURAGE STATE INITIATIVES TO IMPROVE 
                   BROADBAND SERVICE.

       (a) Definitions.--In this section:
       (1)  Broadband service.--The term ``broadband service'' 
     means any service that connects the public to the Internet 
     with a data transmission-rate equivalent that is at least 200 
     kilobits per second or 200,000 bits per second, or any 
     successor transmission-rate established by the Federal 
     Communications Commission for broadband, in at least 1 
     direction.
       (2) Eligible entity.--The term ``eligible entity'' means a 
     nonprofit organization that, in conjunction with State 
     agencies and private sector partners, carries out an 
     initiative under the section to identify and track the 
     availability and adoption of broadband services within 
     States.
       (3) Nonprofit organization.--The term ``nonprofit 
     organization'' means an organization that--
       (A) is described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 and exempt from tax under section 501(a) 
     of that Code;
       (B) has net earnings that do not inure to the benefit of 
     any member, founder, contributor, or individual associated 
     with the organization;
       (C) has an established record of competence and working 
     with public and private sectors to accomplish widescale 
     deployment and adoption of broadband services and information 
     technology; and
       (D) has a board of directors that does not have a majority 
     of individuals who are employed by, or otherwise associated 
     with, any Federal, State, or local government or agency.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (b) Program.--The Secretary shall award grants to eligible 
     entities to pay the Federal share of the cost of the 
     development and implementation of statewide initiatives to 
     identify and track the availability and adoption of broadband 
     services within States.
       (c) Purposes.--The purpose of a grant made this section 
     shall be--
       (1) to ensure, to the maximum extent practicable, that all 
     citizens and businesses in States have access to affordable 
     and reliable broadband service;
       (2) to promote improved technology literacy, increased 
     computer ownership, and home broadband use among those 
     citizens and businesses;
       (3) to establish and empower local grassroots technology 
     teams in States to plan for improved technology use across 
     multiple community sectors; and
       (4) to establish and sustain an environment that supports 
     broadband services and information technology investment.
       (d)  Eligibility.--To be eligible to receive a grant for an 
     initiative under this section, an eligible entity shall--
       (1) submit an application to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may require; and
       (2) provide matching non-Federal funds in an amount that is 
     equal to not less than 20 percent of the total cost of the 
     initiative.
       (e) Competitive Basis.--Grants under this section shall be 
     awarded on a competitive basis.
       (f) Peer Review.--
       (1) In general.--The Secretary shall require technical and 
     scientific peer review of applications for grants under this 
     section.
       (2) Review procedures.--The Secretary shall require that 
     any technical and scientific peer review group--
       (A) be provided a written description of the grant to be 
     reviewed;
       (B) provide the results of any review by the group to the 
     Secretary; and
       (C) certify that the group will enter into such voluntary 
     nondisclosure agreements as are necessary to prevent the 
     unauthorized disclosure of confidential and propriety 
     information provided by broadband service providers in 
     connection with projects funded by a grant under this 
     section.
       (g) Use of Funds.--A grant awarded to an eligible entity 
     under this section shall be used--
       (1) to provide a baseline assessment of broadband service 
     deployment in 1 or more participating States;
       (2) to identify and track--
       (A) areas in the participating States that have low levels 
     of broadband service deployment;
       (B) the rate at which individuals and businesses adopt 
     broadband service and other related information technology 
     services; and
       (C) possible suppliers of the services;
       (3) to identify barriers to the adoption by individuals and 
     businesses of broadband service and related information 
     technology services, including whether--
       (A) the demand for the services is absent; and
       (B) the supply for the services is capable of meeting the 
     demand for the services;
       (4) to create and facilitate in each county or designated 
     region in the participating States a local technology 
     planning team--
       (A) with members representing a cross section of 
     communities, including representatives of business, 
     telecommunications labor organizations, K-12 education, 
     health care, libraries, higher education, community-based 
     organizations, local government, tourism, parks and 
     recreation, and agriculture; and
       (B) that shall--
       (i) benchmark technology use across relevant community 
     sectors;
       (ii) set goals for improved technology use within each 
     sector; and
       (iii) develop a tactical business plan for achieving the 
     goals of the team, with specific recommendations for online 
     application development and demand creation;
       (5) to work collaboratively with broadband service 
     providers and information technology companies to encourage 
     deployment and use, especially in unserved, underserved,

[[Page 29306]]

     and rural areas, through the use of local demand aggregation, 
     mapping analysis, and the creation of market intelligence to 
     improve the business case for providers to deploy;
       (6) to establish programs to improve computer ownership and 
     Internet access for unserved, underserved, and rural 
     populations;
       (7) to collect and analyze detailed market data concerning 
     the use and demand for broadband service and related 
     information technology services;
       (8) to facilitate information exchange regarding the use 
     and demand for broadband services between public and private 
     sectors; and
       (9) to create within the participating States a geographic 
     inventory map of broadband service that shall--
       (A) identify gaps in the service through a method of 
     geographic information system mapping of service availability 
     at the census block level; and
       (B) provide a baseline assessment of statewide broadband 
     deployment in terms of households with high-speed 
     availability.
       (h) Participation Limitation.--For each participating 
     State, an eligible entity may not receive a new grant under 
     this section to carry out the activities described in 
     subsection (g) within the participating State if the eligible 
     entity obtained prior grant awards under this section to 
     carry out the same activities in the participating State for 
     each of the previous 4 fiscal years.
       (i) Report.--Each recipient of a grant under this section 
     shall submit to the Secretary a report describing the use of 
     the funds provided by the grant.
       (j) No Regulatory Authority.--Nothing in this section 
     provides any public or private entity with any regulatory 
     jurisdiction or oversight authority over providers of 
     broadband services or information technology.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $40,000,000 for 
     each of fiscal years 2008 through 2012.

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

     SEC. 6301. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

       Section 1670(e) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5923(e)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 6302. TELEMEDICINE, LIBRARY CONNECTIVITY, PUBLIC 
                   TELEVISION, AND DISTANCE LEARNING SERVICES IN 
                   RURAL AREAS.

       (a) In General.--Chapter 1 of subtitle D of title XXII of 
     the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 950aaa et seq.) is amended in the chapter heading by 
     striking ``AND DISTANCE LEARNING'' and inserting ``, LIBRARY 
     CONNECTIVITY, PUBLIC TELEVISION, AND DISTANCE LEARNING''.
       (b) Purpose.--Section 2331 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa) is 
     amended by striking ``telemedicine services and distance 
     learning'' and inserting ``telemedicine services, library 
     connectivity, and distance learning''.
       (c) Definitions.--Section 2332 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-1) is 
     amended--
       (1) by redesignating paragraphs (1) through (3) as 
     paragraphs (2) through (4), respectively; and
       (2) by inserting before paragraph (2) (as so redesignated) 
     the following:
       ``(1) Connectivity.--The term `connectivity' means the 
     ability to use a range of high-speed digital services or 
     networks.''.
       (d) Telemedicine, Library Connectivity, and Distance 
     Learning Services in Rural Areas.--Section 2333 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     950aaa-2) is amended--
       (1) in the section heading, by striking ``AND DISTANCE 
     LEARNING'' and inserting ``, LIBRARY CONNECTIVITY, PUBLIC 
     TELEVISION, AND DISTANCE LEARNING'';
       (2) in subsection (a), by striking ``construction of 
     facilities and systems to provide telemedicine services and 
     distance learning services'' and inserting ``construction and 
     use of facilities and systems to provide telemedicine 
     services, library connectivity, distance learning services, 
     and public television station digital conversion'';
       (3) in subsection (b), by striking paragraph (2) and 
     inserting the following:
       ``(2) Form.--The Secretary shall establish by notice the 
     amount of the financial assistance available to applicants in 
     the form of grants, costs of money loans, combinations of 
     grants and loans, or other financial assistance so as to--
       ``(A)(i) further the purposes of this chapter; and
       ``(ii) in the case of loans, result in the maximum feasible 
     repayment to the Federal Government of the loan; and
       ``(B) to ensure that funds made available to carry out this 
     chapter are used to the maximum extent practicable to assist 
     useful and needed projects.'';
       (4) in subsection (c)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``financial assistance'' and inserting ``assistance in the 
     form of grants'';
       (ii) in subparagraph (A), by striking ``and'' at the end;
       (iii) in subparagraph (B)--

       (I) by striking ``service or distance'' and inserting 
     ``services, library connectivity services, public television 
     station digital conversion, or distance'';
       (II) by striking the period at the end and inserting a 
     semicolon; and
       (III) by adding at the end the following:

       ``(C) libraries or library support organizations;
       ``(D) public television stations and the parent 
     organizations of public television stations; and
       ``(E) schools, libraries, and other facilities operated by 
     the Bureau of Indian Affairs or the Indian Health Service.'';
       (B) in paragraph (4), by striking ``services or distance'' 
     and inserting ``service, library connectivity, public 
     television station digital conversion, or distance''; and
       (C) by adding at the end the following:
       ``(5) Public television grants.--The Secretary shall 
     establish a separate competitive process to determine the 
     allocation of grants under this chapter to public television 
     stations.'';
       (5) in subsection (d)--
       (A) in the matter preceding paragraph (1), by inserting ``1 
     or more of'' after ``considering'';
       (B) in paragraph (12), by striking ``and'' at the end;
       (C) by redesignating paragraph (13) as paragraph (14); and
       (D) by inserting after paragraph (12) the following:
       ``(13) the cost and availability of high-speed network 
     access; and'';
       (6) by striking subsection (f) and inserting the following:
       ``(f) Use of Funds.--Financial assistance provided under 
     this chapter shall be used for--
       ``(1) the development, acquisition, and digital 
     distribution of instructional programming to rural users;
       ``(2) the development and acquisition, through lease or 
     purchase, of computer hardware and software, audio and visual 
     equipment, computer network components, telecommunications 
     terminal equipment, telecommunications transmission 
     facilities, data terminal equipment, or interactive video 
     equipment, teleconferencing equipment, or other facilities 
     that would further telemedicine services, library 
     connectivity, or distance learning services;
       ``(3) the provision of technical assistance and instruction 
     for the development or use of the programming, equipment, or 
     facilities referred to in paragraphs (1) and (2);
       ``(4) the acquisition of high-speed network transmission 
     equipment or services that would not otherwise be available 
     or affordable to the applicant;
       ``(5) costs relating to the coordination and collaboration 
     among and between libraries on connectivity and universal 
     service initiatives, or the development of multi-library 
     connectivity plans that benefit rural users; or
       ``(6) other uses that are consistent with this chapter, as 
     determined by the Secretary.''; and
       (7) in subsection (i)--
       (A) in paragraph (1), by striking ``telemedicine or 
     distance'' and inserting ``telemedicine, library 
     connectivity, public television station digital conversion, 
     or distance''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``telemedicine or 
     distance'' and inserting ``telemedicine, library 
     connectivity, or distance''; and
       (ii) in subparagraph (B), by inserting ``nonproprietary 
     information contained in'' before ``the applications''.
       (e) Administration.--Section 2334 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-3) is 
     amended--
       (1) in subsection (a), by striking ``services or distance'' 
     and inserting ``services, library connectivity, or 
     distance''; and
       (2) in subsection (d), by striking ``or distance learning'' 
     and all that follows through the end of the subsection and 
     inserting ``, library connectivity, or distance learning 
     services through telecommunications in rural areas.''.
       (f) Authorization of Appropriations.--Section 2335A of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 950aaa-5) is amended by striking ``2007'' and 
     inserting ``2012''.
       (g) Conforming Amendment.--Section 1(b) of Public Law 102-
     551 (7 U.S.C. 950aaa note; Public Law 102-551) is amended by 
     striking ``2007'' and inserting ``2012''.

                       Subtitle E--Miscellaneous

     SEC. 6401. VALUE-ADDED AGRICULTURAL PRODUCT MARKET 
                   DEVELOPMENT GRANTS.

       (a) Definitions.--Section 231 of the Agricultural Risk 
     Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
     224) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Definitions.--In this section:
       ``(1) Assisting organization.--The term `assisting 
     organization' means a nonprofit organization, institution of 
     higher education, or units of government with expertise, as 
     determined by the Secretary, to assist eligible producers and 
     entities described in subsection (b)(1) through--

[[Page 29307]]

       ``(A) the provision of market research, training, or 
     technical assistance; or
       ``(B) the development of supply networks for value-added 
     products that strengthen the profitability of small and mid-
     sized family farms.
       ``(2) Technical assistance.--The term `technical 
     assistance' means managerial, financial, operational, and 
     scientific analysis and consultation to assist an individual 
     or entity (including a recipient or potential recipient of a 
     grant under this section)--
       ``(A) to identify and evaluate practices, approaches, 
     problems, opportunities, or solutions; and
       ``(B) to assist in the planning, implementation, 
     management, operation, marketing, or maintenance of projects 
     authorized under this section.
       ``(3) Value-added agricultural product.--
       ``(A) In general.--The term `value-added agricultural 
     product' means any agricultural commodity or product that--
       ``(i)(I) has undergone a change in physical state;
       ``(II) was produced in a manner that enhances the value of 
     the agricultural commodity or product, as demonstrated 
     through a business plan that shows the enhanced value, as 
     determined by the Secretary; or
       ``(III) is physically segregated in a manner that results 
     in the enhancement of the value of the agricultural commodity 
     or product; and
       ``(ii) as a result of the change in physical state or the 
     manner in which the agricultural commodity or product was 
     produced, marketed, or segregated--

       ``(I) the customer base for the agricultural commodity or 
     product has been expanded; and
       ``(II) a greater portion of the revenue derived from the 
     marketing, processing, or physical segregation of the 
     agricultural commodity or product is available to the 
     producer of the commodity or product.

       ``(B) Inclusion.--The term `value-added agricultural 
     products' includes--
       ``(i) farm- or ranch-based renewable energy, including the 
     sale of E-85 fuel; and
       ``(ii) the aggregation and marketing of locally-produced 
     agricultural food products.''.
       (b) Grant Program.--Section 231(b) of the Agricultural Risk 
     Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
     224) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A), by striking ``exceed $500,000'' 
     and inserting ``exceed--
       ``(i) $300,000 in the case of grants including working 
     capital; and
       ``(ii) $100,000 in the case of all other grants.''; and
       (B) by adding at the end the following:
       ``(C) Research, training, technical assistance, and 
     outreach.--The amount of grant funds provided to an assisting 
     organization for a fiscal year may not exceed 10 percent of 
     the total amount of funds that are used to make grants for 
     the fiscal year under this subsection.'';
       (2) in paragraph (3)--
       (A) in subparagraph (A), by striking ``or'' at the end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(C) to conduct market research, provide training and 
     technical assistance, develop supply networks, or provide 
     program outreach.''; and
       (3) by striking paragraph (4) and inserting the following:
       ``(4) Term.--A grant under this section shall have a term 
     that does not exceed 3 years.
       ``(5) Simplified application.--The Secretary shall offer a 
     simplified application form and process for project proposals 
     requesting less than $50,000.
       ``(6) Priority.--
       ``(A) In general.--In awarding grants, the Secretary shall 
     give the priority to projects that--
       ``(i) contribute to increasing opportunities for beginning 
     farmers or ranchers, socially disadvantaged farmers or 
     ranchers, and operators of small- and medium-sized farms and 
     ranches that are not larger than family farms; and
       ``(ii) support new ventures that do not have well-
     established markets or product development staffs and 
     budgets, including the development of local food systems and 
     the development of infrastructure to support local food 
     systems.
       ``(B) Participation.--To the maximum extent practicable, 
     the Secretary shall provide grants to projects that provide 
     training and outreach activities in areas that have, as 
     determined by the Secretary, received relatively fewer grants 
     than other areas.
       ``(7) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection for each of fiscal years 2008 
     through 2012.''.

     SEC. 6402. STUDY OF RAILROAD ISSUES.

       (a) In General.--The Secretary, in coordination with the 
     Secretary of Transportation, shall conduct a study of 
     railroad issues regarding the movement of agricultural 
     products, domestically-produced renewable fuels, and 
     domestically-produced resources for the production of 
     electricity in rural areas of the United States and for 
     economic development in rural areas of the United States.
       (b) Issue.--In conducting the study, the Secretary shall 
     include an examination of--
       (1) the importance of freight railroads to--
       (A) the delivery of equipment, seed, fertilizer, and other 
     products that are important to the development of 
     agricultural commodities and products;
       (B) the movement of agricultural commodities and products 
     to market; and
       (C) the delivery of ethanol and other renewable fuels;
       (2) the sufficiency in rural areas of the United States 
     of--
       (A) railroad capacity;
       (B) competition in the railroad system; and
       (C) the reliability of rail service; and
       (3) the accessibility to rail customers in rural areas of 
     the United States to Federal processes for the resolution of 
     rail customer grievances with the railroads.
       (c) Report.--Not later than 270 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that describes--
       (1) the results of the study conducted under this section; 
     and
       (2) the recommendations of the Secretary for new Federal 
     policies to address any problems identified by the study.

     SEC. 6403. INSURANCE OF LOANS FOR HOUSING AND RELATED 
                   FACILITIES FOR DOMESTIC FARM LABOR.

       Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C. 
     1484(f)(3)) is amended by striking ``or the handling of such 
     commodities in the unprocessed stage'' and inserting ``, the 
     handling of agricultural or aquacultural commodities in the 
     unprocessed stage, or the processing of agricultural or 
     aquacultural commodities''.

                TITLE VII--RESEARCH AND RELATED MATTERS

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

     SEC. 7001. DEFINITIONS.

       Section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is 
     amended--
       (1) in paragraph (4)--
       (A) by redesignating subparagraphs (A) through (E) as 
     clauses (i) through (v), respectively;
       (B) by striking ``(4) The terms'' and inserting the 
     following:
       ``(4) College and university.--
       ``(A) In general.--The terms''; and
       (C) by adding at the end the following:
       ``(B) Inclusions.--The terms `college' and `university' 
     include a research foundation maintained by a college or 
     university described in subparagraph (A).'';
       (2) by redesignating paragraphs (6) through (8), (9) 
     through (14), (15), and (16) as paragraphs (7) through (9), 
     (11) through (16), (19), and (6), respectively, and moving 
     the paragraphs so as to appear in alphabetical order;
       (3) by inserting after paragraph (9) (as redesignated by 
     paragraph (2)) the following:
       ``(10) Hispanic-serving agricultural colleges and 
     universities.--The term `Hispanic-serving agricultural 
     colleges and universities' means a college or university 
     that--
       ``(A) qualifies as a Hispanic-serving institution; and
       ``(B) offers associate, bachelor's, or other accredited 
     degree programs in agriculture-related fields.''; and
       (4) by striking paragraph (11) (as so redesignated) and 
     inserting the following:
       ``(11) Hispanic-serving institution.--The term `Hispanic-
     serving institution' has the meaning given the term in 
     section 502(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1101a(a)).''.

     SEC. 7002. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   EDUCATION, AND ECONOMICS ADVISORY BOARD.

       Section 1408(h) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7003. VETERINARY MEDICINE LOAN REPAYMENT.

       Section 1415A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3151a) 
     is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following:
       ``(d) Regulations.--Not later than 270 days after the date 
     of enactment of the Food and Energy Security Act of 2007, the 
     Secretary shall promulgate regulations to carry out this 
     section.''.

     SEC. 7004. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF 
                   COLUMBIA FOR GRANTS AND FELLOWSHIPS FOR FOOD 
                   AND AGRICULTURAL SCIENCES EDUCATION.

       Section 1417 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is 
     amended--
       (1) in the matter preceding paragraph (1) of subsection 
     (b), by inserting ``(including the University of the District 
     of Columbia)'' after ``land-grant colleges and 
     universities''; and
       (2) in subsection (d)(2), by inserting ``(including the 
     University of the District of Columbia)'' after 
     ``universities''.

[[Page 29308]]



     SEC. 7005. GRANTS TO 1890 INSTITUTIONS TO EXPAND EXTENSION 
                   CAPACITY.

       Section 1417(b)(4) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3152(b)(4)) is amended by striking ``teaching and research'' 
     and inserting ``teaching, research, and extension''.

     SEC. 7006. EXPANSION OF FOOD AND AGRICULTURAL SCIENCES 
                   AWARDS.

       Section 1417(i) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(i)) 
     is amended--
       (1) in the subsection heading, by striking ``Teaching 
     Awards '' and ``Teaching, Extension, and Research Awards''; 
     and
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Establishment.--
       ``(A) In general.--The Secretary shall establish a National 
     Food and Agricultural Sciences Teaching, Extension, and 
     Research Awards program to recognize and promote excellence 
     in teaching, extension, and research in the food and 
     agricultural sciences at a college or university.
       ``(B) Minimum requirement.--The Secretary shall make at 
     least 1 cash award in each fiscal year to a nominee selected 
     by the Secretary for excellence in each of the areas of 
     teaching, extension, and research of food and agricultural 
     science at a college or university.''.

     SEC. 7007. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
                   SCIENCES EDUCATION.

       (a) Education Teaching Programs.--Section 1417(j) of the 
     National Agricultural Research, Extension and Teaching Policy 
     Act of 1977 (7 U.S.C. 3152(j)) is amended--
       (1) in the subsection heading, by striking ``and 2-Year 
     Postsecondary Education Teaching Programs'' and inserting ``, 
     2-Year Postsecondary Education, and Agriculture in the K-12 
     Classroom''; and
       (2) in paragraph (3)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``and institutions of higher education that award an 
     associate's degree'' and inserting ``, institutions of higher 
     education that award an associate's degree, other 
     institutions of higher education, and nonprofit 
     organizations'';
       (B) in subparagraph (E), by striking ``and'' at the end;
       (C) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (D) by adding at the end the following:
       ``(G) to support current agriculture in the classroom 
     programs for grades K-12.''.
       (b) Authorization of Appropriations.--Section 1417(l) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3152(l)) is amended by striking 
     ``2007'' and inserting ``2012''.
       (c) Report.--Section 1417 of the National Agricultural 
     Research, Extension and Teaching Policy Act of 1977 (7 U.S.C. 
     3152) is amended--
       (1) by redesignating subsection (l) as subsection (m); and
       (2) by inserting after subsection (k) the following:
       ``(l) Report.--The Secretary shall submit an annual report 
     to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate describing the distribution of 
     funds used to implement teaching programs under subsection 
     (j).''.

     SEC. 7008. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF 
                   ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                   AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

       Section 1419(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7009. POLICY RESEARCH CENTERS.

       Section 1419A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is 
     amended--
       (1) in subsection (b), by inserting ``(including the Food 
     Agricultural Policy Research Institute, the Agricultural and 
     Food Policy Center, the Rural Policy Research Institute, and 
     the Community Vitality Center)'' after ``research 
     institutions and organizations''; and
       (2) in subsection (d), by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7010. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION 
                   RESEARCH PROGRAM.

       Section 1424(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7011. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
                   AGRICULTURAL RESEARCH.

       Section 1424A(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3174a(d)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7012. NUTRITION EDUCATION PROGRAM.

       (a) Definitions.--Section 1425 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3175) is amended--
       (1) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (2) by striking the section heading and ``Sec. 1425.'' and 
     inserting the following:

     ``SEC. 1425. NUTRITION EDUCATION PROGRAM.

       ``(a) Definitions.--In this section, the terms `1862 
     Institution' and `1890 Institution' have the meaning given 
     those terms in section 2 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 
     7601).'';
       (3) in subsection (b) (as redesignated by paragraph (1)), 
     by striking ``The Secretary'' and inserting the following:
       ``(b) Establishment.--The Secretary''; and
       (4) in subsection (c) (as so redesignated), by striking 
     ``In order to enable'' and inserting the following:
       ``(c) Employment and Training.--To enable''.
       (b) Funding to 1862, 1890, and Insular Area Institutions.--
     Subsection (d) of section 1425 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3175) (as redesignated by subsection (a)(1)) is 
     amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``Beginning'' and inserting the following:
       ``(d) Allocation of Funding.--Beginning''; and
       (2) in paragraph (2), by striking subparagraph (B) and 
     inserting the following:
       ``(B) Notwithstanding section 3(d)(2) of the Act of May 8, 
     1914 (7 U.S.C. 343(d)(2)), the remainder shall be allocated 
     among the States as follows:
       ``(i) $100,000 shall be distributed to each 1862 and 1890 
     land-grant college and university.
       ``(ii)(I) Subject to subclause (II), of the remainder, 10 
     percent for fiscal year 2008, 11 percent for fiscal year 
     2009, 12 percent for fiscal year 2010, 13 percent for fiscal 
     year 2011, 14 percent for fiscal year 2012, and 15 percent 
     for each fiscal year thereafter, shall be distributed among 
     the 1890 Institutions, to be allocated to each 1890 
     Institution in an amount that bears the same ratio to the 
     total amount to be allocated under this clause as--

       ``(aa) the population living at or below 125 percent of the 
     income poverty guidelines (as prescribed by the Office of 
     Management and Budget and as adjusted pursuant to section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) in the State in which the 1890 Institution is 
     located; bears to
       ``(bb) the total population living at or below 125 percent 
     of the income poverty guidelines in all States that have 1890 
     Institutions, as determined by the last preceding decennial 
     census at the time each such additional amount is first 
     appropriated.

       ``(II) The total amount allocated under this clause shall 
     not exceed the amount of the funds appropriated for the 
     conduct of the expanded food and nutrition education program 
     for the fiscal year that are in excess of the amount 
     appropriated for the conduct of the program for fiscal year 
     2007.
       ``(iii)(I) Subject to subclauses (II) and (III), the 
     remainder shall be allocated to the 1860 institution in each 
     State (including the appropriate insular area institution and 
     the University of the District of Columbia) in an amount that 
     bears the same ratio to the total amount to be allocated 
     under this subparagraph as--

       ``(aa) the population of the State living at or below 125 
     percent of the income poverty guidelines prescribed by the 
     Office of Management and Budget (adjusted pursuant to section 
     673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 
     U.S.C. 9902(2))); bears to
       ``(bb) the total population of all the States living at or 
     below 125 percent of the income poverty guidelines, as 
     determined by the last preceding decennial census at the time 
     each such additional amount is first appropriated.

       ``(II) The total amount allocated under this clause to the 
     University of the District of Columbia shall not exceed the 
     amount described in clause (ii)(II), reduced by the amount 
     allocated to the University of the District of Columbia under 
     clause (ii).
       ``(III) Nothing in this clause precludes the Secretary from 
     developing educational materials and programs for persons in 
     income ranges above the level designated in this clause.''.
       (c) Authorization of Appropriations.--Subsection (d)(3) of 
     section 1425 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175) 
     (as redesignated by subsection (a)(1)) is amended--
       (1) by striking ``There is'' and inserting the following:
       ``(3) Authorization of appropriations.--There is''; and
       (2) by striking ``$83,000,000 for each of fiscal years 1996 
     through 2007'' and inserting ``$90,000,000 for each of fiscal 
     years 2008 through 2012''.
       (d) Conforming Amendment.--Section 1588(b) of the Food 
     Security Act of 1985 (7 U.S.C. 3175e(b)) is amended by 
     striking ``section 1425(c)(2)'' and inserting ``section 
     1425(d)(2)''.
       (e) Effective Date.--The amendments made by this section 
     take effect on October 1, 2007.

[[Page 29309]]



     SEC. 7013. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH 
                   PROGRAMS.

       Section 1433(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) 
     is amended in the first sentence by striking ``2007'' and 
     inserting ``2012''.

     SEC. 7014. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR 
                   REGIONAL PROBLEMS.

       Section 1434(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7015. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM.

       Section 1434(b) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(b)) 
     is amended by inserting after ``universities'' the following: 
     ``(including 1890 Institutions (as defined in section 2 of 
     the Agricultural Research, Extension, and Education Reform 
     Act of 1998 (7 U.S.C. 7601)))''.

     SEC. 7016. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-
                   GRANT COLLEGES.

       Section 1444(a)(2) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3221(a)(2)) is amended by striking ``15 percent'' and 
     inserting ``20 percent''.

     SEC. 7017. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT 
                   1890 LAND-GRANT COLLEGES.

       Section 1445(a)(2) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222(a)(2)) is amended by striking ``25 percent'' and 
     inserting ``30 percent''.

     SEC. 7018. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
                   FACILITIES AT 1890 LAND-GRANT COLLEGES, 
                   INCLUDING TUSKEGEE UNIVERSITY.

       Section 1447(b) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222b(b)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7019. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
                   FACILITIES AT THE DISTRICT OF COLUMBIA LAND 
                   GRANT UNIVERSITY.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1447 
     (7 U.S.C. 3222b) the following:

     ``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
                   FACILITIES AT THE DISTRICT OF COLUMBIA LAND 
                   GRANT UNIVERSITY.

       ``(a) Purpose.--It is the intent of Congress to assist the 
     land grant university in the District of Columbia established 
     under section 208 of the District of Columbia Public 
     Postsecondary Education Reorganization Act (Public Law 93-
     471; 88 Stat. 1428) in efforts to acquire, alter, or repair 
     facilities or relevant equipment necessary for conducting 
     agricultural research.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $750,000 for each of fiscal years 2008 through 2012.''.

     SEC. 7020. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

       Section 1448 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) 
     is amended by striking ``2007'' each place it appears in 
     subsections (a)(1) and (f) and inserting ``2012''.

     SEC. 7021. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND 
                   EXTENSION ACTIVITIES OF 1890 INSTITUTIONS.

       Section 1449(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222d(c)) is amended in the first sentence by striking 
     ``2007'' and inserting ``2012.''.

     SEC. 7022. HISPANIC-SERVING INSTITUTIONS.

       Section 1455 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241) is 
     amended--
       (1) in subsection (a) by striking ``(or grants without 
     regard to any requirement for competition)'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``of consortia'';
       (B) in paragraph (3), by striking ``, beginning with the 
     mentoring of students'' and all that follows through 
     ``doctoral degree''; and
       (C) in paragraph (4)--
       (i) by striking ``2 or more''; and
       (ii) by striking ``, or between Hispanic-serving'' and all 
     that follows through ``the private sector,''; and
       (3) in subsection (c)--
       (A) by striking ``$20,000,000'' and inserting 
     ``$40,000,000''; and
       (B) by striking ``2007'' and inserting ``2012''.

     SEC. 7023. HISPANIC-SERVING AGRICULTURAL COLLEGES AND 
                   UNIVERSITIES.

       (a) In General.--The National Agricultural Research, 
     Extension and Teaching Policy Act of 1977 is amended by 
     inserting after section 1455 (7 U.S.C. 3241) the following:

     ``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND 
                   UNIVERSITIES.

       ``(a) Definition of Endowment Fund.--In this section, the 
     term `endowment fund' means the Hispanic-Serving Agricultural 
     Colleges and Universities Fund established under subsection 
     (b).
       ``(b) Endowment.--
       ``(1) In general.--The Secretary of the Treasury shall 
     establish in accordance with this subsection a Hispanic-
     Serving Agricultural Colleges and Universities Fund.
       ``(2) Agreements.--The Secretary of the Treasury may enter 
     into such agreements as are necessary to carry out this 
     subsection.
       ``(3) Deposit to the endowment fund.--The Secretary of the 
     Treasury shall deposit in the endowment fund any--
       ``(A) amounts made available through Acts of 
     appropriations, which shall be the endowment fund corpus; and
       ``(B) interest earned on the endowment fund corpus.
       ``(4) Investments.--The Secretary of the Treasury shall 
     invest the endowment fund corpus and income in interest-
     bearing obligations of the United States.
       ``(5) Withdrawals and expenditures.--
       ``(A) Corpus.--The Secretary of the Treasury may not make a 
     withdrawal or expenditure from the endowment fund corpus.
       ``(B) Withdrawals.--On September 30, 2008, and each 
     September 30 thereafter, the Secretary of the Treasury shall 
     withdraw the amount of the income from the endowment fund for 
     the fiscal year and warrant the funds to the Secretary of 
     Agriculture who, after making adjustments for the cost of 
     administering the endowment fund, shall distribute the 
     adjusted income as follows:
       ``(i) 60 percent shall be distributed among the Hispanic-
     serving agricultural colleges and universities on a pro rata 
     basis based on the Hispanic enrollment count of each 
     institution.
       ``(ii) 40 percent shall be distributed in equal shares to 
     the Hispanic-serving agricultural colleges and universities.
       ``(6) Endowments.--Amounts made available under this 
     subsection shall be held and considered to be granted to 
     Hispanic-serving agricultural colleges and universities to 
     establish an endowment in accordance with this subsection.
       ``(7) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     are necessary to carry out this subsection for fiscal year 
     2008 and each fiscal year thereafter.
       ``(c) Authorization for Annual Payments.--
       ``(1) In general.--For fiscal year 2008 and each fiscal 
     year thereafter, there are authorized to be appropriated to 
     the Department of Agriculture to carry out this subsection an 
     amount equal to the product obtained by multiplying--
       ``(A) $80,000; by
       ``(B) the number of Hispanic-serving agricultural colleges 
     and universities.
       ``(2) Payments.--For fiscal year 2008 and each fiscal year 
     thereafter, the Secretary of the Treasury shall pay to the 
     treasurer of each Hispanic-Serving agricultural college and 
     university an amount equal to--
       ``(A) the total amount made available by appropriations 
     under subparagraph (A); divided by
       ``(B) the number of Hispanic-serving agricultural colleges 
     and universities.
       ``(3) Use of funds.--
       ``(A) In general.--Amounts authorized to be appropriated 
     under this subsection shall be used in the same manner as is 
     prescribed for colleges under the Act of August 30, 1890 
     (commonly known as the `Second Morrill Act') (7 U.S.C. 321 et 
     seq.).
       ``(B) Relationship to other law.--Except as otherwise 
     provided in this subsection, the requirements of that Act 
     shall apply to Hispanic-serving agricultural colleges and 
     universities under this section.
       ``(d) Institutional Capacity-Building Grants.--
       ``(1) In general.--For fiscal year 2008 and each fiscal 
     year thereafter, the Secretary shall make grants to assist 
     Hispanic-serving agricultural colleges and universities in 
     institutional capacity building (not including alteration, 
     repair, renovation, or construction of buildings).
       ``(2) Criteria for institutional capacity-building 
     grants.--
       ``(A) Requirements for grants.--The Secretary shall make 
     grants under this subsection on the basis of a competitive 
     application process under which Hispanic-serving agricultural 
     colleges and universities may submit applications to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(B) Demonstration of need.--
       ``(i) In general.--As part of an application for a grant 
     under this subsection, the Secretary shall require the 
     applicant to demonstrate need for the grant, as determined by 
     the Secretary.
       ``(ii) Other sources of funding.--The Secretary may award a 
     grant under this subsection only to an applicant that 
     demonstrates a failure to obtain funding for a project after 
     making a reasonable effort to otherwise obtain the funding.
       ``(C) Payment of non-federal share.--A grant awarded under 
     this subsection shall be made only if the recipient of the 
     grant pays a non-Federal share in an amount that is specified 
     by the Secretary and based on assessed institutional needs.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     are necessary to carry out this subsection for fiscal year 
     2008 and each fiscal year thereafter.
       ``(e) Competitive Grants Program.--
       ``(1) In general.--The Secretary shall establish a 
     competitive grants program to fund

[[Page 29310]]

     fundamental and applied research at Hispanic-serving 
     agricultural colleges and universities in agriculture, human 
     nutrition, food science, bioenergy, and environmental 
     science.
       ``(2) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     are necessary to carry out this subsection for fiscal year 
     2008 and each fiscal year thereafter.''.
       (b) Extension.--Section 3 of the Smith-Lever Act (7 U.S.C. 
     343) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(4) Annual appropriation for hispanic-serving 
     agricultural colleges and universities.--
       ``(A) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     are necessary to carry out this paragraph for fiscal year 
     2008 and each fiscal year thereafter.
       ``(B) Additional amount.--Amounts made available under this 
     paragraph shall be in addition to any other amounts made 
     available under this section to States, the Commonwealth of 
     Puerto Rico, or any other territory or possession of the 
     United States.
       ``(C) Administration.--Amounts made available under this 
     paragraph shall be--
       ``(i) distributed on the basis of a competitive application 
     process to be developed and implemented by the Secretary and 
     paid by the Secretary to the State institutions established 
     in accordance with the Act of July 2, 1862 (commonly known as 
     the `First Morrill Act') (7 U.S.C. 301 et seq.); and
       ``(ii) administered by State institutions through 
     cooperative agreements with the Hispanic-serving agricultural 
     colleges and universities (as defined in section 1456 of the 
     National Agricultural Research, Extension and Teaching Policy 
     Act of 1977) in the State in accordance with regulations 
     promulgated by the Secretary.''; and
       (2) in subsection (f)--
       (A) in the subsection heading, by inserting ``and Hispanic-
     Serving Agricultural Colleges and Universities'' after ``1994 
     Institutions''; and
       (B) by striking ``pursuant to subsection (b)(3)'' and 
     inserting ``or Hispanic-serving agricultural colleges and 
     universities in accordance with paragraphs (3) and (4) of 
     subsection (b)''.

     SEC. 7024. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   AND EDUCATION.

       Section 1458(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) 
     is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (B), by adding ``and'' at the end; and
       (C) by adding at the end the following:
       ``(C) giving priority to those institutions with existing 
     memoranda of understanding, agreements, or other formal ties 
     to United States institutions, or Federal or State 
     agencies;'';
       (2) in paragraph (3), by inserting ``Hispanic-serving 
     agricultural colleges and universities,'' after 
     ``universities,'';
       (3) in paragraph (7)(A), by striking ``and land-grant 
     colleges and universities'' and inserting ``, land-grant 
     colleges and universities, and Hispanic-serving agricultural 
     colleges and universities'';
       (4) in paragraph (9)--
       (A) in subparagraph (A), by striking ``or other colleges 
     and universities'' and inserting ``, Hispanic-serving 
     agricultural colleges and universities, or other colleges and 
     universities''; and
       (B) in subparagraph (D), by striking ``and'' at the end;
       (5) in paragraph (10), by striking the period at the end 
     and inserting ``; and''; and
       (6) by adding at the end the following:
       ``(11) establish a program for the purpose of providing 
     fellowships to United States or foreign students to study at 
     foreign agricultural colleges and universities working under 
     agreements provided for under paragraph (3).''.

     SEC. 7025. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL 
                   SCIENCE AND EDUCATION PROGRAMS.

       Section 1459A(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3292b(c)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7026. INDIRECT COSTS.

       Section 1462(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310(a)) 
     is amended by striking ``shall not exceed 19 percent'' and 
     inserting ``shall be the negotiated indirect rate of cost 
     established for an institution by the appropriate Federal 
     audit agency for the institution, not to exceed 30 percent''.

     SEC. 7027. RESEARCH EQUIPMENT GRANTS.

       Section 1462A(e) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3310a(e)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7028. UNIVERSITY RESEARCH.

       Section 1463 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
     amended by striking ``2007'' each place it appears in 
     subsections (a) and (b) and inserting ``2012''.

     SEC. 7029. EXTENSION SERVICE.

       Section 1464 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
     amended by striking ``2007'' and inserting ``2012''.

     SEC. 7030. SUPPLEMENTAL AND ALTERNATIVE CROPS.

       Section 1473D(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3319d(a)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7031. AQUACULTURE RESEARCH FACILITIES.

       (a) Fish Disease Program.--Section 1475(f) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3322(f)) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (2) by adding at the end the following:
       ``(2) Viral hemorrhagic septicemia.--
       ``(A) In general.--The study of viral hemorrhagic 
     septicemia (referred to in this paragraph as `VHS') and VHS 
     management shall be considered an area of priority research 
     under this subsection.
       ``(B) Consultation.--
       ``(i) In general.--The Secretary shall consult with 
     appropriate directors of State natural resource management 
     and agriculture agencies in areas that are VHS positive as of 
     the date of enactment of this paragraph to develop and 
     implement a comprehensive set of priorities for managing VHS, 
     including providing funds for research into the spread and 
     control of the disease, surveillance, monitoring, risk 
     evaluation, enforcement, screening, education and outreach, 
     and management.
       ``(ii) Consideration.--The Secretary shall provide special 
     consideration to the recommendations of the directors 
     described in clause (i) in the development of the VHS 
     priorities.''.
       (b) Authorization of Appropriations.--Section 1477 of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3324) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7032. RANGELAND RESEARCH.

       (a) Grants.--Section 1480(a) of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3333(a)) is amended--
       (1) in paragraph (1), by striking ``; and'' and inserting a 
     semicolon;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) pilot programs to coordinate and conduct 
     collaborative projects to address natural resources 
     management issues and facilitate the collection of 
     information and analysis to provide Federal and State 
     agencies, private landowners, and the public with information 
     to allow for improved management of public and private 
     rangeland.''.
       (b) Matching Requirements.--Section 1480(b)(2) of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3333(b)(2)) is amended by 
     striking ``subsection (a)(2)'' and inserting ``paragraph (2) 
     or (3) of subsection (a)''.
       (c) Authorization of Appropriations.--Section 1483(a) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7033. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND 
                   RESPONSE.

       Section 1484(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7034. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS 
                   PROGRAM FOR INSULAR AREA INSTITUTIONS OF HIGHER 
                   EDUCATION.

       (a) Distance Education Grants for Insular Areas.--Section 
     1490(f) of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by 
     striking ``2007'' and inserting ``2012''.
       (b) Resident Instruction Grants for Insular Areas.--Section 
     1491 of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3363) is amended--
       (1) by redesignating subsection (e) as subsection (c); and
       (2) in subsection (c) (as so redesignated), by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7035. FARM MANAGEMENT TRAINING AND PUBLIC FARM 
                   BENCHMARKING DATABASE.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 is amended by 
     inserting after section 1467 (7 U.S.C. 3313) the following:

     ``SEC. 1468. FARM MANAGEMENT TRAINING AND PUBLIC FARM 
                   BENCHMARKING DATABASE.

       ``(a) Definitions.--In this section:
       ``(1) Benchmark, benchmarking.--The term `benchmark' or 
     `benchmarking' means the process of comparing the performance 
     of an agricultural enterprise against the performance of 
     other similar enterprises, through the use of comparable and 
     reliable data, in order to identify business management 
     strengths, weaknesses, and steps necessary

[[Page 29311]]

     to improve management performance and business profitability.
       ``(2) Farm management association.--The term `farm 
     management association' means a public or nonprofit 
     organization or educational program--
       ``(A) the purpose of which is to assist farmers, ranchers, 
     and other agricultural operators to improve financial 
     management and business profitability by providing training 
     on farm financial planning and analysis, record keeping, and 
     other farm management topics; and
       ``(B) that is affiliated with a land-grant college or 
     university, other institution of higher education, or 
     nonprofit entity.
       ``(3) National farm management center.--The term `National 
     Farm Management Center' means a land-grant college or 
     university that, as determined by the Secretary--
       ``(A) has collaborative partnerships with more than 5 farm 
     management associations that are representative of 
     agricultural diversity in multiple regions of the United 
     States;
       ``(B) has maintained and continues to maintain farm 
     financial analysis software applicable to the production and 
     management of a wide range of crop and livestock agricultural 
     commodities (including some organic commodities);
       ``(C) has established procedures that enable producers--
       ``(i) to benchmark the farms of the producers against peer 
     groups; and
       ``(ii) to query the benchmarking database by location, farm 
     type, farm size, and commodity at the overall business and 
     individual enterprise levels; and
       ``(D) has provided and continues to provide public online 
     access to farm and ranch financial benchmarking databases.
       ``(b) Establishment.--
       ``(1) In general.--The Secretary shall establish a National 
     Farm Management Center to improve the farm management 
     knowledge and skills of individuals directly involved in 
     production agriculture through--
       ``(A) participation in a farm management education and 
     training program; and
       ``(B) direct access to a public farm benchmarking database.
       ``(2) Proposals.--The Secretary shall request proposals 
     from appropriate land-grant colleges and universities for the 
     establishment of a National Farm Management Center in 
     accordance with this section.
       ``(3) Requirements.--The National Farm Management Center 
     established under paragraph (1) shall--
       ``(A) coordinate standardized financial analysis 
     methodologies for use by farmers, ranchers, other 
     agricultural operators, and farm management associations;
       ``(B) provide the software tools necessary for farm 
     management associations, farmers, ranchers, and other 
     agricultural operators to perform the necessary financial 
     analyses, including the benchmarking of individual 
     enterprises; and
       ``(C) develop and maintain a national farm financial 
     database to facilitate those financial analyses and 
     benchmarking that is available online to farmers, ranchers, 
     other agricultural operators, farm management associations, 
     and the public.
       ``(c) Administrative Expenses.--Not more than 8 percent of 
     the funds made available to carry out this section may be 
     used for the payment of administrative expenses of the 
     Department of Agriculture in carrying out this section.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 7036. TROPICAL AND SUBTROPICAL AGRICULTURAL RESEARCH.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 1473E. TROPICAL AND SUBTROPICAL AGRICULTURAL RESEARCH.

       ``(a) Definition of Caribbean and Pacific Basins.--In this 
     section, the term `Caribbean and Pacific basins', means--
       ``(1) the States of Florida and Hawaii;
       ``(2) the Commonwealth of Puerto Rico;
       ``(3) the United States Virgin Islands;
       ``(4) Guam;
       ``(5) American Samoa;
       ``(6) the Commonwealth of the Northern Mariana Islands;
       ``(7) the Federated States of Micronesia;
       ``(8) the Republic of the Marshall Islands; and
       ``(9) the Republic of Palau.
       ``(b) Establishment.--The Secretary shall establish a 
     program, to be known as the `Tropical and Subtropical 
     Agricultural Research Program', to sustain the agriculture 
     and environment of the Caribbean and Pacific basins, by 
     supporting the full range of research relating to food and 
     agricultural sciences in the Caribbean and Pacific basins, 
     with an emphasis on--
       ``(1) pest management;
       ``(2) deterring introduction and establishment of invasive 
     species;
       ``(3) enhancing existing and developing new tropical and 
     subtropical agricultural products; and
       ``(4) expanding value-added agriculture in tropical and 
     subtropical ecosystems.
       ``(c) Grants.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall provide grants to be awarded competitively to 
     support tropical and subtropical agricultural research in the 
     Caribbean and Pacific basins.
       ``(2) Eligible entities.--To be eligible to receive a 
     grant, an entity shall be a land-grant college or university, 
     or affiliated with a land-grant college or university, that 
     is located in any region of the Caribbean and Pacific basin.
       ``(3) Requirements.--
       ``(A) Equal amounts.--The total amount of grants provided 
     under this subsection shall be equally divided between the 
     Caribbean and Pacific basins, as determined by the Secretary.
       ``(B) Research infrastructure and capability priority.--In 
     providing grants under this subsection, the Secretary shall 
     give priority to projects of eligible entities that--
       ``(i) expand the infrastructure and capability of the 
     region of the eligible entity;
       ``(ii) scientifically and culturally address regional 
     agricultural and environmental challenges; and
       ``(iii) sustain agriculture in the region of the eligible 
     entity.
       ``(C) Term.--The term of a grant provided under this 
     subsection shall not exceed 5 years.
       ``(D) Prohibitions.--A grant provided under this subsection 
     shall not be used for the planning, repair, rehabilitation, 
     acquisition, or construction of any building or facility.
       ``(d) Funding.--
       ``(1) Set-aside.--Not less than 25 percent of the funds 
     made available to carry out this section during a fiscal year 
     shall be used to support programs and services that--
       ``(A) address the pest management needs of a region in the 
     Caribbean and Pacific basins; or
       ``(B) minimize the impact to a region in the Caribbean and 
     Pacific basins of invasive species.
       ``(2) Administrative costs.--The Secretary shall use not 
     more than 4 percent of the funds made available under 
     subsection (e) for administrative costs incurred by the 
     Secretary in carrying out this section.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section such sums as are necessary for each of fiscal 
     years 2008 through 2012.''.

     SEC. 7037. REGIONAL CENTERS OF EXCELLENCE.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7036) is amended by adding at 
     the end the following:

     ``SEC. 1473F. REGIONAL CENTERS OF EXCELLENCE.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to authorize regional centers of excellence for 
     specific agricultural commodities; and
       ``(2) to develop a national, coordinated program of 
     research, teaching, and extension for commodities that will--
       ``(A) be cost effective by reducing duplicative efforts 
     regarding research, teaching, and extension;
       ``(B) leverage available resources by using public/private 
     partnerships among industry groups, institutions of higher 
     education, and the Federal Government;
       ``(C) increase the economic returns to agricultural 
     commodity industries by identifying, attracting, and 
     directing funds to high-priority industry issues; and
       ``(D) more effectively disseminate industry issue solutions 
     to target audiences through web-based extension information, 
     instructional courses, and educational or training modules.
       ``(b) Definitions.--In this section:
       ``(1) Agricultural commodity.--The term `agricultural 
     commodity' has the meaning given the term in section 513 of 
     the Commodity Promotion, Research, and Information Act of 
     1996 (7 U.S.C. 7412).
       ``(2) Land-grant colleges and universities.--The term 
     `land-grant colleges and universities' means--
       ``(A) 1862 Institutions (as defined in section 2 of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7601));
       ``(B) 1890 Institutions (as defined in section 2 of that 
     Act); and
       ``(C) 1994 Institutions (as defined in section 2 of that 
     Act).
       ``(c) Establishment.--
       ``(1) Original composition.--The Secretary shall establish 
     regional centers of excellence for specific agricultural 
     commodities that are each comprised of--
       ``(A) a lead land-grant college or university; and
       ``(B) 1 or more member land-grant colleges and universities 
     that provide financial support to the regional center of 
     excellence.
       ``(2) Board of directors.--Each regional center of 
     excellence shall be administered by a board of directors 
     consisting of 15 members, as determined by the lead and 
     member land-grant colleges and universities of the center.
       ``(3) Additional directors and institutions.--Each board of 
     directors of a regional center of excellence may--
       ``(A) designate additional land-grant colleges and 
     universities as members of the center; and

[[Page 29312]]

       ``(B) designate representatives of the additional land-
     grant colleges and universities and agriculture industry 
     groups to be additional members of the board of directors.
       ``(d) Programs.--Each regional center of excellence shall 
     achieve the purposes of this section through--
       ``(1) research initiatives focused on issues pertaining to 
     the specific agricultural commodity;
       ``(2) teaching initiatives at lead and member land-grant 
     colleges and universities to provide intensive education 
     relating to the specific agricultural commodity; and
       ``(3) extension initiatives focusing on an internet-based 
     information gateway to provide for relevant information 
     development, warehousing, and delivery.
       ``(e) Funding.--
       ``(1) In general.--Each regional center of excellence shall 
     be funded through the use of--
       ``(A) grants made by the Secretary; and
       ``(B) matching funds provided by land-grant colleges and 
     universities and agriculture industry groups.
       ``(2) Process.--The board of directors of each regional 
     center of excellence shall have the responsibility for 
     submitting grant proposals to the Secretary to carry out the 
     research, education, and extension program activities 
     described in subsection (d).
       ``(3) Term of grant.--The term of a grant under this 
     subsection may not exceed 5 years.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2008 through 
     2012.''.

     SEC. 7038. NATIONAL DROUGHT MITIGATION CENTER.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7037) is amended by adding at 
     the end the following:

     ``SEC. 1473G. NATIONAL DROUGHT MITIGATION CENTER.

       ``(a) In General.--The Secretary shall offer to enter into 
     an agreement with the National Drought Mitigation Center, 
     under which the Center shall--
       ``(1) continue to produce the United States Drought 
     Monitor;
       ``(2) maintain a clearinghouse and internet portal on 
     drought; and
       ``(3) develop new drought mitigation and preparedness 
     strategies, responses, models, and methodologies for the 
     agricultural community.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each fiscal year.''.

     SEC. 7039. AGRICULTURAL DEVELOPMENT IN THE AMERICAN-PACIFIC 
                   REGION.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7038) is amended by adding at 
     the end the following:

     ``SEC. 1473H. AGRICULTURAL DEVELOPMENT IN THE AMERICAN-
                   PACIFIC REGION.

       ``(a) Definitions.--In this section:
       ``(1) American-pacific region.--The term `American-Pacific 
     region' means the region encompassing--
       ``(A) American Samoa;
       ``(B) Guam;
       ``(C) the Commonwealth of the Northern Mariana Islands;
       ``(D) the Federated States of Micronesia;
       ``(E) the Republic of the Marshall Islands;
       ``(F) the Republic of Palau;
       ``(G) the State of Hawaii; and
       ``(H) the State of Alaska.
       ``(2) Consortium.--The term `consortium' means a 
     collaborative group that--
       ``(A) is composed of each eligible institution; and
       ``(B) submits to the Secretary an application for a grant 
     under subsection (b)(2).
       ``(3) Eligible institution.--The term `eligible 
     institution' means a land-grant college or university that is 
     located in the American-Pacific region.
       ``(b) Agricultural Development in the American Pacific 
     Grants.--
       ``(1) In general.--The Secretary may make grants to a 
     consortium of eligible institutions to carry out integrated 
     research, extension, and instruction programs in support of 
     food and agricultural sciences.
       ``(2) Application.--To receive a grant under paragraph (1), 
     a consortium of eligible institutions shall submit to the 
     Secretary an application that includes--
       ``(A) for each eligible institution, a description of each 
     objective, procedure, and proposed use of funds relating to 
     any funds provided by the Secretary to the consortium under 
     paragraph (1); and
       ``(B) the method of allocation proposed by the consortium 
     to distribute to each eligible institution any funds provided 
     by the Secretary to the consortium under paragraph (1).
       ``(3) Use of funds.--
       ``(A) In general.--An eligible institution that receives 
     funds through a grant under paragraph (1) shall use the 
     funds--
       ``(i) to acquire the equipment, instrumentation, networking 
     capability, hardware and software, digital network 
     technology, and infrastructure required to integrate 
     research, extension, and instruction programs in the 
     American-Pacific region;
       ``(ii) to develop and provide support for conducting 
     research, extension, and instruction programs in support of 
     food and agricultural sciences relevant to the American-
     Pacific region, with special emphasis on--

       ``(I) the management of pests; and
       ``(II) the control of the spread of invasive alien species; 
     and

       ``(iii) to provide leadership development to 
     administrators, faculty, and staff of the eligible 
     institution with responsibility for programs relating to 
     agricultural research, extension, and instruction.
       ``(B) Prohibited uses.--An eligible institution that 
     receives funds through a grant under paragraph (1) may not 
     use the funds for any cost relating to the planning, 
     acquisition, construction, rehabilitation, or repair of any 
     building or facility of the eligible institution.
       ``(4) Grant term.--A grant under paragraph (1) shall have a 
     term of not more than 5 years.
       ``(5) Administration.--
       ``(A) Authority of secretary.--The Secretary may carry out 
     this section in a manner that recognizes the different needs 
     of, and opportunities for, each eligible institution.
       ``(B) Administrative costs.--The Secretary shall use not 
     more than 4 percent of the amount appropriated under 
     subsection (d) for a fiscal year to pay administrative costs 
     incurred in carrying out this section.
       ``(c) No Effect on Distribution of Funds.--Nothing in this 
     section affects any basis for distribution of funds by a 
     formula in existence on the date of enactment of this section 
     relating to--
       ``(1) the Federated States of Micronesia;
       ``(2) the Republic of the Marshall Islands; or
       ``(3) the Republic of Palau.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.''.

     SEC. 7040. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND 
                   TECHNOLOGY FELLOWSHIP PROGRAM.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7039) is amended by adding at 
     the end the following:

     ``SEC. 1473I. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND 
                   TECHNOLOGY FELLOWSHIP PROGRAM.

       ``(a) Fellowship Program.--
       ``(1) In general.--The Secretary shall establish a 
     fellowship program, to be known as the `Borlaug International 
     Agricultural Science and Technology Fellowship Program,' to 
     provide fellowships for scientific training and study in the 
     United States to individuals from eligible countries (as 
     described in subsection (b)) who specialize in agricultural 
     education, research, and extension.
       ``(2) Programs.--The Secretary shall carry out the 
     fellowship program by implementing 3 programs designed to 
     assist individual fellowship recipients, including--
       ``(A) a graduate studies program in agriculture to assist 
     individuals who participate in graduate agricultural degree 
     training at a United States institution;
       ``(B) an individual career improvement program to assist 
     agricultural scientists from developing countries in 
     upgrading skills and understanding in agricultural science 
     and technology; and
       ``(C) a Borlaug agricultural policy executive leadership 
     course to assist senior agricultural policy makers from 
     eligible countries, with an initial focus on individuals from 
     sub-Saharan Africa and the newly independent states of the 
     former Soviet Union.
       ``(b) Eligible Countries.--An eligible country is a 
     developing country, as determined by the Secretary using a 
     gross national income per capita test selected by the 
     Secretary.
       ``(c) Purpose of Fellowships.--A fellowship provided under 
     this section shall--
       ``(1) promote food security and economic growth in eligible 
     countries by--
       ``(A) educating a new generation of agricultural 
     scientists;
       ``(B) increasing scientific knowledge and collaborative 
     research to improve agricultural productivity; and
       ``(C) extending that knowledge to users and intermediaries 
     in the marketplace; and
       ``(2) shall support--
       ``(A) training and collaborative research opportunities 
     through exchanges for entry level international agricultural 
     research scientists, faculty, and policymakers from eligible 
     countries;
       ``(B) collaborative research to improve agricultural 
     productivity;
       ``(C) the transfer of new science and agricultural 
     technologies to strengthen agricultural practice; and
       ``(D) the reduction of barriers to technology adoption.
       ``(d) Fellowship Recipients.--
       ``(1) Eligible candidates.--The Secretary may provide 
     fellowships under this section to individuals from eligible 
     countries who specialize in or have experience in 
     agricultural education, research, extension, or related 
     fields, including--

[[Page 29313]]

       ``(A) individuals from the public and private sectors; and
       ``(B) private agricultural producers.
       ``(2) Candidate identification.--The Secretary shall use 
     the expertise of United States land grant colleges and 
     universities and similar universities, international 
     organizations working in agricultural research and outreach, 
     and national agricultural research organizations to help 
     identify program candidates for fellowships under this 
     section from the public and private sectors of eligible 
     countries.
       ``(e) Use of Fellowships.--A fellowship provided under this 
     section shall be used--
       ``(1) to promote collaborative programs among agricultural 
     professionals of eligible countries, agricultural 
     professionals of the United States, the international 
     agricultural research system, and, as appropriate, United 
     States entities conducting research; and
       ``(2) to support fellowship recipients through programs 
     described in subsection (a)(2).
       ``(f) Program Implementation.--The Secretary shall provide 
     for the management, coordination, evaluation, and monitoring 
     of the overall Borlaug International Agricultural Science and 
     Technology Fellowship Program and for the individual programs 
     described in subsection (a)(2), except that the Secretary may 
     contract out to 1 or more collaborating universities the 
     management of 1 or more of the fellowship programs.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section, to remain available until 
     expended.''.

     SEC. 7041. NEW ERA RURAL TECHNOLOGY PROGRAM.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7040) is amended by adding at 
     the end the following:

     ``SEC. 1473J. NEW ERA RURAL TECHNOLOGY PROGRAM.

       ``(a) Definition of Rural Community College.--In this 
     section, the term `rural community college' means an 
     institution of higher education that--
       ``(1) admits as regular students individuals who--
       ``(A) are beyond the age of compulsory school attendance in 
     the State in which the institution is located; and
       ``(B) have the ability to benefit from the training offered 
     by the institution, in accordance with criteria established 
     by the Secretary;
       ``(2) does not provide an educational program for which it 
     awards a bachelor's degree or an equivalent degree;
       ``(3)(A) provides an educational program of not less than 2 
     years that is acceptable for full credit toward such a 
     degree; or
       ``(B) offers a 2-year program in engineering, technology, 
     mathematics, or the physical, chemical or biological sciences 
     that is designed to prepare a student to work as a technician 
     or at the semiprofessional level in engineering, scientific, 
     or other technological fields requiring the understanding and 
     application of basic engineering, scientific, or mathematical 
     principles of knowledge; and
       ``(4) is located in a rural area (as defined in section 
     343(a) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1991(a)).
       ``(b) Program.--
       ``(1) In general.--The Secretary shall establish a program, 
     to be known as the `New Era Rural Technology Program', under 
     which the Secretary shall make grants available for 
     technology development, applied research, and training to aid 
     in the development of an agriculture-based renewable energy 
     workforce.
       ``(2) Fields.--In making grants under the program, the 
     Secretary shall support the fields of--
       ``(A) bioenergy;
       ``(B) pulp and paper manufacturing; and
       ``(C) agriculture-based renewable energy resources.
       ``(c) Eligibility.--To be eligible to receive a grant under 
     this section, an entity shall--
       ``(1) be a rural community college or advanced 
     technological center (as determined by the Secretary), in 
     existence on the date of the enactment of this section, that 
     participates in agricultural or bioenergy research and 
     applied research;
       ``(2) have a proven record of development and 
     implementation of programs to meet the needs of students, 
     educators, business, and industry to supply the agriculture-
     based, renewable energy, or pulp and paper manufacturing 
     fields with certified technicians, as determined by the 
     Secretary; and
       ``(3) have the ability to leverage existing partnerships 
     and occupational outreach and training programs for secondary 
     schools, 4-year institutions, and relevant nonprofit 
     organizations.
       ``(d) Grant Priority.--In making grants under this section, 
     the Secretary shall give preference to rural community 
     colleges working in partnership--
       ``(1) to improve information sharing capacity; and
       ``(2) to maximize the ability of eligible recipients to 
     meet the purposes of this section.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.''.

     SEC. 7042. FARM AND RANCH STRESS ASSISTANCE NETWORK.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7041) is amended by adding at 
     the end the following:

     ``SEC. 1473K. FARM AND RANCH STRESS ASSISTANCE NETWORK.

       ``(a) In General.--The Secretary, in cooperation with the 
     Secretary of Health and Human Services, shall establish a 
     network, to be known as the `Farm and Ranch Stress Assistance 
     Network' (referred to in this section as the `Network').
       ``(b) Purpose.--The purpose the network shall be to provide 
     behavioral health programs to participants in the 
     agricultural sector in the United States.
       ``(c) Grants.--The Secretary, in collaboration with the 
     extension service at the National Institute of Food and 
     Agriculture, shall provide grants on a competitive basis to 
     States and nonprofit organizations for use in carrying out 
     pilot projects to achieve the purpose of the Network.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.''.

     SEC. 7043. RURAL ENTREPRENEURSHIP AND ENTERPRISE FACILITATION 
                   PROGRAM.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7042) is amended by adding at 
     the end the following:

     ``SEC. 1473L. RURAL ENTREPRENEURSHIP AND ENTERPRISE 
                   FACILITATION PROGRAM.

       ``(a) Definition of Regional Rural Development Center.--In 
     this section, the term `regional rural development center' 
     means--
       ``(1) the North Central Regional Center for Rural 
     Development (or a designee);
       ``(2) the Northeast Regional Center for Rural Development 
     (or a designee);
       ``(3) the Southern Rural Development Center (or a 
     designee); and
       ``(4) the Western Rural Development Center (or a designee).
       ``(b) Projects.--The Secretary shall carry out research, 
     extension, and education projects to obtain data, convey 
     knowledge, and develop skills through projects that--
       ``(1) transfer practical, reliable, and timely information 
     to rural entrepreneurs and rural entrepreneurial development 
     organizations concerning business management, business 
     planning, microenterprise, marketing, entrepreneurial 
     education and training, and the development of local and 
     regional entrepreneurial systems in rural areas and rural 
     communities;
       ``(2) provide education, training, and technical assistance 
     to newly-operational and growing rural businesses;
       ``(3) improve access to diverse sources of capital, such as 
     microenterprise loans and venture capital;
       ``(4) determine the best methods to train entrepreneurs 
     with respect to preparing business plans, recordkeeping, tax 
     rules, financial management, and general business practices;
       ``(5) promote entrepreneurship among--
       ``(A) rural youth, minority, and immigrant populations;
       ``(B) women; and
       ``(C) low- and moderate-income rural residents;
       ``(6) create networks of entrepreneurial support through 
     partnerships among rural entrepreneurs, local business 
     communities, all levels of government, nonprofit 
     organizations, colleges and universities, and other sectors;
       ``(7) study and facilitate entrepreneurial development 
     systems that best align with the unique needs and strengths 
     of particular rural areas and communities; and
       ``(8) explore promising strategies for building an 
     integrated system of program delivery to rural entrepreneurs.
       ``(c) Agreements.--To carry out projects under subsection 
     (b), the Secretary shall provide grants to--
       ``(1) land-grant colleges and universities, including 
     cooperative extension services, agricultural experiment 
     stations, and regional rural development centers;
       ``(2) other colleges and universities;
       ``(3) community, junior, technical, and vocational colleges 
     and other 2-year institutions of higher education, and post-
     secondary business and commerce schools;
       ``(4) elementary schools and secondary schools;
       ``(5) nonprofit organizations; and
       ``(6) Federal, State, local, and tribal governmental 
     entities.
       ``(d) Selection and Priority of Projects.--
       ``(1) In general.--In selecting projects to be carried out 
     under this section, the Secretary shall take into 
     consideration--
       ``(A) the relevance of the project to the purposes of this 
     section;
       ``(B) the appropriateness of the design of the project;
       ``(C) the likelihood of achieving the objectives of the 
     project; and

[[Page 29314]]

       ``(D) the national or regional applicability of the 
     findings and outcomes of the project.
       ``(2) Priority.--In carrying out projects under this 
     section, the Secretary shall give priority to projects that--
       ``(A) enhance widespread access to entrepreneurial 
     education, including access to such education in community-
     based settings for low- and moderate-income entrepreneurs and 
     potential entrepreneurs;
       ``(B) closely coordinate research and education activities, 
     including outreach education efforts;
       ``(C) indicate the manner in which the findings of the 
     project will be made readily usable to rural entrepreneurs 
     and to rural community leaders;
       ``(D) maximize the involvement and cooperation of rural 
     entrepreneurs; and
       ``(E) involve cooperation and partnerships between rural 
     entrepreneurs, nonprofit organizations, entrepreneurial 
     development organizations, educational institutions at all 
     levels, and government agencies at all levels.
       ``(e) Competitive Basis.--Grants under this section shall 
     be awarded on a competitive basis, in accordance with such 
     criteria as the national administrative council established 
     under subsection (j)(1) may establish.
       ``(f) Term.--The term of a grant provided under this 
     section shall be not more than 5 years.
       ``(g) Limitation.--Not more than 20 percent of the total 
     amount of grants provided under this section shall be 
     provided to projects in which cooperative extension services 
     are involved as the sole or lead entity of the project.
       ``(h) Diversification of Research, Extension, and Education 
     Projects.--The Secretary shall carry out projects under this 
     section in areas that the Secretary determines to be broadly 
     representative of the diversity of the rural areas of the 
     United States, and of rural entrepreneurship in the United 
     States, including entrepreneurship involving youth, minority 
     populations, microenterprise, and women, with a focus on 
     nonagricultural businesses or food and agriculturally-based 
     businesses, but not direct agriculture production.
       ``(i) Administration.--The Secretary shall administer 
     projects carried out under this section acting through the 
     Administrator of the National Institute of Food and 
     Agriculture.
       ``(j) National Administrative Council.--
       ``(1) Establishment.--The Secretary shall establish, in 
     accordance with this subsection, a national administrative 
     council to assist the Secretary in carrying out this section.
       ``(2) Membership.--The membership of the national 
     administrative council shall include--
       ``(A) qualified representatives of entities with 
     demonstrable expertise relating to rural entrepreneurship, 
     including representatives of--
       ``(i) the Cooperative State Research, Education, and 
     Extension Service;
       ``(ii) the Rural Business-Cooperative Service;
       ``(iii) the Small Business Administration;
       ``(iv) regional rural development centers;
       ``(v) nonprofit organizations;
       ``(vi) regional and State agencies;
       ``(vii) cooperative extension services;
       ``(viii) colleges and universities;
       ``(ix) philanthropic organizations; and
       ``(x) Indian tribal governments;
       ``(B) self-employed rural entrepreneurs and owners of rural 
     small businesses;
       ``(C) elementary and secondary educators that demonstrate 
     experience in rural entrepreneurship; and
       ``(D) other persons with experience relating to rural 
     entrepreneurship and the impact of rural entrepreneurship on 
     rural communities.
       ``(3) Responsibilities.--In collaboration with the 
     Secretary, the national administrative council established 
     under this subsection shall--
       ``(A) promote the projects carried out under this section;
       ``(B) establish goals and criteria for the selection of 
     projects under this section;
       ``(C)(i) appoint a technical committee to evaluate project 
     proposals to be considered by the council; and
       ``(ii) make recommendations of the technical committee to 
     the Secretary; and
       ``(D) prepare and make publicly available an annual report 
     relating to each applicable project carried out under this 
     section, including a review of projects carried out during 
     the preceding year.
       ``(4) Conflict of interest.--A member of the national 
     administrative council or a technical committee shall not 
     participate in any determination relating to, or 
     recommendation of, a project proposed to be carried out under 
     this section if the member has had any business interest 
     (including the provision of consulting services) in the 
     project or the organization submitting the application.
       ``(k) Authorization for Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of the fiscal years 2008 
     through 2012.''.

     SEC. 7044. SEED DISTRIBUTION.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7043) is amended by adding at 
     the end the following:

     ``SEC. 1473M. SEED DISTRIBUTION.

       ``(a) Establishment.--The Secretary shall establish a 
     program, to be known as the `seed distribution program', 
     under which the Secretary shall provide a grant to a 
     nonprofit organization selected under subsection (c) to carry 
     out a seed distribution program to administer and maintain 
     the distribution of vegetable seeds donated by commercial 
     seed companies.
       ``(b) Purpose.--The purpose of the seed distribution 
     program under this section shall be to distribute vegetable 
     seeds donated by commercial seed companies.
       ``(c) Selection of Nonprofit Organizations.--
       ``(1) In general.--The nonprofit organization selected to 
     receive a grant under subsection (a) shall demonstrate to the 
     satisfaction of the Secretary that the organization--
       ``(A) has expertise regarding distribution of vegetable 
     seeds donated by commercial seed companies; and
       ``(B) has the ability to achieve the purpose of the seed 
     distribution program.
       ``(2) Priority.--In selecting a nonprofit organization for 
     purposes of this section, the Secretary shall give priority 
     to a nonprofit organization that, as of the date of 
     selection, carries out an activity to benefit underserved 
     communities, such as communities that experience--
       ``(A) limited access to affordable fresh vegetables;
       ``(B) a high rate of hunger or food insecurity; or
       ``(C) severe or persistent poverty.
       ``(d) Requirement.--The nonprofit organization selected 
     under this section shall ensure that seeds donated by 
     commercial seed companies are distributed free-of-charge to 
     appropriate--
       ``(1) individuals;
       ``(2) groups;
       ``(3) institutions;
       ``(4) governmental and nongovernmental organizations; and
       ``(5) such other entities as the Secretary may designate.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.''.

     SEC. 7045. FARM AND RANCH SAFETY.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7044) is amended by adding at 
     the end the following:

     ``SEC. 1473N. FARM AND RANCH SAFETY.

       ``(a) In General.--The Secretary shall establish a program, 
     to be known as the `agricultural safety program', under which 
     the Secretary shall provide grants to eligible entities to 
     carry out projects to decrease the incidence of injury and 
     death on farms and ranches.
       ``(b) Eligible Entities.--To be eligible to receive a grant 
     under this section, an entity shall be--
       ``(1) a nonprofit organization;
       ``(2) a land-grant college or university (including a 
     cooperative extension service);
       ``(3) a minority-serving institution;
       ``(4) a 2-year or 4-year institution of higher education; 
     or
       ``(5) such other entity as the Secretary may designate.
       ``(c) Eligible Projects.--An eligible entity shall use a 
     grant received under this section only to carry out--
       ``(1) a project at least 1 component of which emphasizes--
       ``(A) preventative service through on-site farm or ranch 
     safety reviews;
       ``(B) outreach and dissemination of farm safety research 
     and interventions to agricultural employers, employees, 
     youth, farm and ranch families, seasonal workers, or other 
     individuals; or
       ``(C) agricultural safety education and training; and
       ``(2) other appropriate activities, as determined by the 
     Secretary;
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.''.

     SEC. 7046. WOMEN AND MINORITIES IN STEM FIELDS.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7045) is amended by adding at 
     the end the following:

     ``SEC. 1473O. WOMEN AND MINORITIES IN STEM FIELDS.

       ``(a) Establishment.--The Secretary shall establish a 
     program under which the Secretary, in coordination with 
     applicable Federal, State, and local programs, shall provide 
     grants to eligible institutions to increase, to the maximum 
     extent practicable, participation by women and 
     underrepresented minorities from rural areas (as defined in 
     section 343(a) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1991(a))), in science, technology, engineering, 
     and mathematics fields (referred to in this section as `STEM 
     fields').

[[Page 29315]]

       ``(b) Activities.--In carrying out the program established 
     under subsection (a), the Secretary shall--
       ``(1) implement multitrack technology career advancement 
     training programs and provide related services to engage, and 
     encourage participation by, women and underrepresented 
     minorities in STEM fields;
       ``(2) develop and administer training programs for 
     educators, career counselors, and industry representatives in 
     recruitment and retention strategies to increase and retain 
     women and underrepresented minority students and job entrants 
     into STEM fields; and
       ``(3) support education-to-workforce programs for women and 
     underrepresented minorities to provide counseling, job 
     shadowing, mentoring, and internship opportunities to guide 
     participants in the academic, training, and work experience 
     needed for STEM careers.
       ``(c) Institutions.--
       ``(1) Grants.--The Secretary shall carry out the program 
     under this section at such institutions as the Secretary 
     determines to be appropriate by providing grants, on a 
     competitive basis, to the institutions.
       ``(2) Priority.--In providing grants under paragraph (1), 
     the Secretary shall give priority, to the maximum extent 
     practicable, to institutions carrying out continuing programs 
     funded by the Secretary.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.''.

     SEC. 7047. NATURAL PRODUCTS RESEARCH PROGRAM.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7046) is amended by adding at 
     the end the following:

     ``SEC. 1473P. NATURAL PRODUCTS RESEARCH PROGRAM.

       ``(a) In General.--The Secretary shall establish a natural 
     products research program.
       ``(b) Duties.--In carrying out the program established 
     under subsection (a), the Secretary shall coordinate research 
     relating to natural products, including--
       ``(1) research to improve human health and agricultural 
     productivity through the discovery, development, and 
     commercialization of pharmaceuticals and agrichemicals from 
     bioactive natural products, including products from plant, 
     marine, and microbial sources;
       ``(2) research to characterize the botanical sources, 
     production, chemistry, and biological properties of plant-
     derived natural products important for agriculture and 
     medicine; and
       ``(3) other research priorities identified by the 
     Secretary.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2008 through 
     2012.''.

     SEC. 7048. INTERNATIONAL ANTI-HUNGER AND NUTRITION PROGRAM.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7047) is amended by adding at 
     the end the following:

     ``SEC. 1473Q. INTERNATIONAL ANTI-HUNGER AND NUTRITION.

       ``(a) In General.--The Secretary shall provide support to 
     established nonprofit organizations that focus on promoting 
     research concerning--
       ``(1) anti-hunger and improved nutrition efforts 
     internationally; and
       ``(2) increased quantity, quality, and availability of 
     food.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000 for 
     each of fiscal years 2008 through 2012.''.

     SEC. 7049. CONSORTIUM FOR AGRICULTURAL AND RURAL 
                   TRANSPORTATION RESEARCH AND EDUCATION.

       Subtitle K of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
     seq.) (as amended by section 7048) is amended by adding at 
     the end the following:

     ``SEC. 1473R. CONSORTIUM FOR AGRICULTURAL AND RURAL 
                   TRANSPORTATION RESEARCH AND EDUCATION.

       ``(a) In General.--Subject to the availability of 
     appropriations to carry out this section, the Secretary, 
     acting through the Agricultural Marketing Service, shall 
     award grants to the Consortium for Agricultural and Rural 
     Transportation Research and Education for the purpose of 
     funding prospective, independent research, education, and 
     technology transfer activities.
       ``(b) Activities.--Activities funded with grants made under 
     subsection (a) shall focus on critical rural and agricultural 
     transportation and logistics issues facing agricultural 
     producers and other rural businesses, including--
       ``(1) issues relating to the relationship between renewable 
     fuels and transportation;
       ``(2) export promotion issues based on transportation 
     strategies for rural areas;
       ``(3) transportation and rural business facility planning 
     and location issues;
       ``(4) transportation management and supply chain management 
     support issues;
       ``(5) rural road planning and finance issues;
       ``(6) advanced transportation technology applications in a 
     rural area; and
       ``(7) creation of a national agricultural marketing and 
     rural business transportation database.
       ``(c) Report.--Not later than September 30, 2011, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that--
       ``(1) describes the activities of Consortium for 
     Agricultural and Rural Transportation Research and Education 
     that have been funded through grants made under this section; 
     and
       ``(2) contains recommendations about the grant program.
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $19,000,000 for each of fiscal 
     years 2008 through 2012.
       ``(2) Administrative expenses.--Of the total amount made 
     available under paragraph (1), not more than $1,000,000 may 
     be used by the Agricultural Marketing Service for 
     administrative expenses incurred in carrying out this 
     section.''.

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

     SEC. 7101. NATIONAL GENETIC RESOURCES PROGRAM.

       (a) In General.--Section 1632 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5841) is 
     amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Purpose.--The program is established for the purpose 
     of--
       ``(1) maintaining and enhancing a program providing for the 
     collection, preservation, and dissemination of plant, animal, 
     and microbial genetic material of importance to food and 
     agriculture production in the United States; and
       ``(2) undertaking long-term research on plant and animal 
     breeding and disease resistance.''; and
       (2) in subsection (d)--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) by redesignating paragraph (6) as paragraph (7); and
       (C) by inserting after paragraph (5) the following:
       ``(6) in conjunction with national programs for plant and 
     animal genetic resources, undertake long-term research on 
     plant and animal breeding, including the development of 
     varieties adapted to sustainable and organic farming systems, 
     and disease resistance; and''.
       (b) Authorization of Appropriations.--Section 1635(b) of 
     the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 5844(b)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7102. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

       Section 1672 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925) is amended--
       (1) in subsection (e), by adding at the end the following:
       ``(46) Colony collapse disorder and pollinator research 
     program.--Research and extension grants may be made to--
       ``(A) survey and collect data on bee colony production and 
     health;
       ``(B) investigate pollinator biology, immunology, ecology, 
     genomics, and bioinformatics;
       ``(C) conduct research on various factors that may be 
     contributing to or associated with colony collapse disorder, 
     and other serious threats to the health of honey bees and 
     other pollinators, including--
       ``(i) parasites and pathogens of pollinators; and
       ``(ii) the sublethal effects of insecticides, herbicides, 
     and fungicides on honey bees and native and managed 
     pollinators;
       ``(D) develop mitigative and preventative measures to 
     improve native and managed pollinator health; and
       ``(E) promote the health of honey bees and native 
     pollinators through habitat conservation and best management 
     practices.
       ``(47) Marine shrimp farming program.--Research and 
     extension grants may be made to establish a research program 
     to advance and maintain a domestic shrimp farming industry in 
     the United States.
       ``(48) Cranberry research program.--Research and extension 
     grants may be made to study new technologies to assist 
     cranberry growers in complying with Federal and State 
     environmental regulations, increase cranberry production, 
     develop new growing techniques, establish more efficient 
     growing methodologies, and educate farmers about sustainable 
     growth practices.
       ``(49) Turfgrass research initiative.--Research and 
     extension grants may be made to study the production of 
     turfgrass (including the use of water, fertilizer, 
     pesticides, fossil fuels, and machinery for turf 
     establishment and maintenance) and environmental protection 
     and enhancement relating to turfgrass production.
       ``(50) Pesticide safety research initiative.--Research 
     grants may be made to study pesticide safety for migrant and 
     seasonal agricultural workers, including research on 
     increased risks of cancer or birth

[[Page 29316]]

     defects among migrant or seasonal farmworkers and their 
     children, identification of objective biological indicators, 
     and development of inexpensive clinical tests to enable 
     clinicians to diagnose overexposure to pesticides, and 
     development of field-level tests to determine when pesticide-
     treated fields are safe to reenter to perform hand labor 
     activities.
       ``(51) Swine genome project.--Research grants may be made 
     under this section to conduct swine genome research and to 
     map the swine genome.
       ``(52) High plains aquifer region.--Research and extension 
     grants may be made to carry out interdisciplinary research 
     relating to diminishing water levels and increased demand for 
     water in the High Plains aquifer region encompassing the 
     States of Colorado, Kansas, Nebraska, New Mexico, Oklahoma, 
     South Dakota, Texas, and Wyoming.
       ``(53) Cellulosic feedstock transportation and delivery 
     initiative.--Research and extension grants may be made to 
     study new technologies for the economic post-harvest 
     densification, handling, transportation, and delivery of 
     cellulosic feedstocks for bioenergy conversion.
       ``(54) Deer initiative.--Research and extension grants may 
     be made to support collaborative research focusing on the 
     development of viable strategies for the prevention, 
     diagnosis, and treatment of infectious, parasitic, and toxic 
     diseases of farmed deer and the mapping of the deer genome.
       ``(55) Pasture-based beef systems for appalachia research 
     initiative.--Research and extension grants may be made to 
     land-grant institutions--
       ``(A) to study the development of forage sequences and 
     combinations for cow-calf, heifer development, stocker, and 
     finishing systems;
       ``(B) to deliver optimal nutritive value for efficient 
     production of cattle for pasture finishing;
       ``(C) to optimize forage systems to produce pasture 
     finished beef that is acceptable to consumers;
       ``(D) to develop a 12-month production and marketing model 
     cycle for forage-fed beef; and
       ``(E) to assess the effect of forage quality on 
     reproductive fitness and related measures.''; and
       (2) in subsection (h), by striking ``2007'' and inserting 
     ``2012, of which $20,000,000 shall be used for each fiscal 
     year to make grants described in subsection (e)(46)''.

     SEC. 7103. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672A of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925a) is amended--
       (1) by redesignating subsection (g) as subsection (f); and
       (2) in subsection (f) (as so redesignated), by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7104. ORGANIC AGRICULTURE RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672B of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925b) is amended by striking 
     subsection (e) and inserting the following:
       ``(e) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section $16,000,000 for each of fiscal years 2008 through 
     2012, to remain available until expended.''.

     SEC. 7105. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

       Section 1673(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7106. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 
                   DISABILITIES.

       Section 1680(c)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7107. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

       Section 2381(e) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 
     ``2007'' and inserting ``2012''.

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

     SEC. 7201. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD 
                   SYSTEMS.

       (a) Funding.--Section 401(b) of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 
     7621(b)) is amended by striking paragraph (3) and inserting 
     the following:
       ``(3) Other funding.--
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $200,000,000 for 
     each of fiscal years 2008 through 2012.
       ``(B) Shortage of funds.--Notwithstanding any other 
     provision of law, during any year for which funds are not 
     made available under this subsection, the Secretary shall use 
     not less than 80 percent of the funds made available for 
     competitive mission-linked systems research grants under 
     section 2(b)(10)(B) of the Competitive, Special, and 
     Facilities Research Grant Act (7 U.S.C. 450i(b)(10)(B)) to 
     carry out a competitive grant program under the same terms 
     and conditions as are provided under this section.''.
       (b) Purposes.--Section 401(c) of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 
     7621(c)) is amended--
       (1) in paragraph (1)(D), by striking ``policy''; and
       (2) in paragraph (2)--
       (A) by striking subparagraphs (A) and (D);
       (B) by redesignating subparagraphs (B), (C), (E), and (F) 
     as subparagraphs (A), (B), (F), and (G), respectively;
       (C) by inserting after subparagraph (B) the following:
       ``(C) sustainable and renewable agriculture-based energy 
     production options and policies;
       ``(D) environmental services and outcome-based conservation 
     programs and markets;
       ``(E) agricultural and rural entrepreneurship and business 
     and community development, including farming and ranching 
     opportunities for beginning farmers or ranchers;''; and
       (D) in subparagraph (F) (as redesignated by subparagraph 
     (B))--
       (i) by inserting ``and environmental'' after ``natural 
     resource''; and
       (ii) by inserting ``agro-ecosystems and'' after 
     ``including''; and
       (E) in subparagraph (G) (as redesignated by subparagraph 
     (B))--
       (i) by striking ``including the viability'' and inserting 
     the following: ``including--
       ``(i) the viability''; and
       (ii) by striking ``operations.'' and inserting the 
     following: ``operations;
       ``(ii) farm transition options for retiring farmers or 
     ranchers; and
       ``(iii) farm transfer and entry alternatives for beginning 
     or socially-disadvantaged farmers or ranchers.''.

     SEC. 7202. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT 
                   QUALITY RESEARCH.

       Section 402(g) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7203. PRECISION AGRICULTURE.

       Section 403(i)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is 
     amended by striking ``2007'' and inserting ``2012''.

     SEC. 7204. BIOBASED PRODUCTS.

       (a) Pilot Project.--Section 404(e)(2) of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7624(e)(2)) is amended by striking ``2007'' and 
     inserting ``2012''.
       (b) Authorization of Appropriations.--Section 404(h) of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7624(h)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 7205. THOMAS JEFFERSON INITIATIVE FOR CROP 
                   DIVERSIFICATION.

       Section 405(h) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7206. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION 
                   COMPETITIVE GRANTS PROGRAM.

       Section 406(f) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7207. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, 
                   TRITICALE, AND BARLEY CAUSED BY FUSARIUM 
                   GRAMINEARUM OR BY TILLETIA INDICA.

       Section 408(e) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7208. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

       Section 409(b) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7209. GRANTS FOR YOUTH ORGANIZATIONS.

       Section 410(c) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7630(c)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7210. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND 
                   DEVELOPMENT FOR DEVELOPING COUNTRIES.

       Section 411(c) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7211. SPECIALTY CROP RESEARCH INITIATIVE.

       Title IV of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.

       ``(a) Definitions.--In this section:
       ``(1) Initiative.--The term `Initiative' means the 
     specialty crop research initiative established by subsection 
     (b).
       ``(2) Specialty crop.--The term `specialty crop' has the 
     meaning given the term in section 3 of the Specialty Crops 
     Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 
     108-465).
       ``(b) Establishment.--There is established within the 
     Department a specialty crop research initiative.
       ``(c) Purpose.--The purpose of the Initiative shall be to 
     address the critical needs of the specialty crop industry by 
     providing science-based tools to address needs of specific 
     crops and regions, including--

[[Page 29317]]

       ``(1) fundamental and applied work in plant breeding, 
     genetics, and genomics to improve crop characteristics, such 
     as--
       ``(A) product appearance, quality, taste, yield, and shelf 
     life;
       ``(B) environmental responses and tolerances;
       ``(C) plant-nutrient uptake efficiency resulting in 
     improved nutrient management;
       ``(D) pest and disease management, including resilience to 
     pests and diseases resulting in reduced application 
     management strategies; and
       ``(E) enhanced phytonutrient content;
       ``(2) efforts to prevent, identify, control, or eradicate 
     invasive species;
       ``(3) methods of improving agricultural production by 
     developing more technologically-efficient and effective 
     applications of water, nutrients, and pesticides to reduce 
     energy use;
       ``(4) new innovations and technology to enhance 
     mechanization and reduce reliance on labor;
       ``(5) methods of improving production efficiency, 
     productivity, sustainability, and profitability over the long 
     term;
       ``(6) methods to prevent, control, and respond to human 
     pathogen contamination of specialty crops, including fresh-
     cut produce; and
       ``(7) efforts relating to optimizing the production of 
     organic specialty crops.
       ``(d) Eligible Entities.--The Secretary may carry out the 
     Initiative through--
       ``(1) Federal agencies;
       ``(2) national laboratories;
       ``(3) institutions of higher education;
       ``(4) research institutions and organizations;
       ``(5) private organizations and corporations;
       ``(6) State agricultural experiment stations; and
       ``(7) individuals.
       ``(e) Research Projects.--In carrying out this section, the 
     Secretary may--
       ``(1) carry out research; and
       ``(2) award grants on a competitive basis.
       ``(f) Priorities.--In making grants under this section, the 
     Secretary shall provide a higher priority to projects that--
       ``(1) are multistate, multi-institutional, or 
     multidisciplinary; and
       ``(2) include explicit mechanisms to communicate usable 
     results to producers and the public.
       ``(g) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section $16,000,000 for each of fiscal years 2008 through 
     2012, to remain available until expended.''.

     SEC. 7212. OFFICE OF PEST MANAGEMENT POLICY.

       (a) In General.--Section 614(b) of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7653(b)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``Department'' and inserting ``Office of the Chief 
     Economist'';
       (2) in paragraph (1), by striking ``the development and 
     coordination'' and inserting ``the development, coordination, 
     and representation''; and
       (3) in paragraph (3), by striking ``assisting other 
     agencies of the Department in fulfilling their'' and 
     inserting ``enabling the Secretary to fulfill the 
     statutory''.
       (b) Authorization of Appropriations.--Section 614(f) of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7653(f)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 7213. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

       Section 604 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7642) is amended by 
     adding at the end the following:
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,500,000 for 
     each of fiscal years 2008 through 2012.''.

                         Subtitle D--Other Laws

     SEC. 7301. CRITICAL AGRICULTURAL MATERIALS ACT.

       Section 16(a) of the Critical Agricultural Materials Act (7 
     U.S.C. 178n(a)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7302. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 
                   1994.

       (a) Definition of 1994 Institutions.--Section 532 of the 
     Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
     301 note; Public Law 103-382) is amended by adding at the end 
     the following:
       ``(34) Ilisagvik College.''.
       (b) Endowment for 1994 Institutions.--Section 533(b) of the 
     Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
     301 note; Public Law 103-382) is amended in the first 
     sentence by striking ``2007'' and inserting ``2012''.
       (c) Institutional Capacity Building Grants.--Section 535 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382) is amended by striking 
     ``2007'' each place it appears and inserting ``2012''.
       (d) Research Grants.--Section 536(c) of the Equity in 
     Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
     Public Law 103-382) is amended in the first sentence by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7303. SMITH-LEVER ACT.

       (a) Children, Youth, and Families Education and Research 
     Network Program.--Section 3 of the Smith-Lever Act (7 U.S.C. 
     343) is amended by adding at the end the following:
       ``(k) Children, Youth, and Families Education and Research 
     Network Program.--Notwithstanding section 3(d)(2) of the Act 
     of May 8, 1914 (7 U.S.C. 343(d)(2)), in carrying out the 
     children, youth, and families education and research network 
     program using amounts made available under subsection (d), 
     the Secretary shall include 1890 Institutions (as defined in 
     section 2 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7601)) as eligible 
     program applicants and participants.''.
       (b) Elimination of the Governor's Report Requirement for 
     Extension Activities.--Section 5 of the Smith-Lever Act (7 
     U.S.C. 345) is amended by striking the third sentence.

     SEC. 7304. HATCH ACT OF 1887.

       (a) District of Columbia.--Section 3(d)(4) of the Hatch Act 
     of 1887 (7 U.S.C. 361c(d)(4)) is amended--
       (1) in the paragraph heading, by inserting ``and the 
     district of columbia'' after ``areas'';
       (2) in subparagraph (A)--
       (A) by inserting ``and the District of Columbia'' after 
     ``United States''; and
       (B) by inserting ``and the District of Columbia'' after 
     ``respectively,''; and
       (3) in subparagraph (B), by inserting ``or the District of 
     Columbia'' after ``area''.
       (b) Elimination of Penalty Mail Authorities.--
       (1) In general.--Section 6 of the Hatch Act of 1887 (7 
     U.S.C. 361f) is amended in the first sentence by striking 
     ``under penalty indicia:'' and all that follows through the 
     end of the sentence and inserting a period.
       (2) Conforming amendments in other laws.--
       (A) National agricultural research, extension, and teaching 
     policy act of 1977.--
       (i) Section 1444(f) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(f)) 
     is amended by striking ``under penalty indicia:'' and all 
     that follows through the end of the sentence and inserting a 
     period.
       (ii) Section 1445(e) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(e)) 
     is amended by striking ``under penalty indicia:'' and all 
     that follows through the end of the sentence and inserting a 
     period.
       (B) Other provisions.--Section 3202(a) of title 39, United 
     States Code, is amended--
       (i) in paragraph (1)--

       (I) in subparagraph (D), by adding ``and'' at the end;
       (II) in subparagraph (E), by striking ``sections; and'' and 
     inserting ``sections.''; and
       (III) by striking subparagraph (F);

       (ii) in paragraph (2), by adding ``and'' at the end;
       (iii) in paragraph (3) by striking ``thereof; and'' and 
     inserting ``thereof.''; and
       (iv) by striking paragraph (4).

     SEC. 7305. RESEARCH FACILITIES ACT.

       Section 6(a) of the Research Facilities Act (7 U.S.C. 
     390d(a)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7306. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 
                   TEACHING POLICY ACT AMENDMENTS OF 1985.

       Section 1431 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1556) is amended by striking ``2007'' 
     and inserting ``2012''.

     SEC. 7307. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH 
                   GRANT ACT.

       The Competitive, Special, and Facilities Research Grant Act 
     (7 U.S.C. 450i) is amended in subsection (b)--
       (1) in paragraph (2)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``in the areas'' and all that follows 
     through ``needs shall be'' and inserting ``, as''; and
       (ii) by striking ``year.'' and inserting ``year, relating 
     to--'';
       (B) in subparagraph (E), by striking ``and'' at the end and 
     inserting ``; agricultural genomics and biotechnology, 
     including the application of genomics and bioinformatics 
     tools to develop traits in plants and animals (translational 
     genomics);'';
       (C) in subparagraph (F), by striking the period at the end 
     and inserting ``, including areas of concern to beginning 
     farmers or ranchers; and''; and
       (D) by adding at the end the following:
       ``(G) classical plant and animal breeding, including 
     cultivar and breed development, selection theory, applied 
     quantitative genetics, breeding for organic and sustainable 
     systems, breeding for improved nutritional and eating 
     quality, breeding for improved local adaptation to biotic 
     stress, abiotic stress, and climate change, and participatory 
     breeding with farmers and end users.'';
       (2) in paragraph (4)--
       (A) by striking ``The'' and inserting the following:
       ``(A) In general.--Subject to subparagraph (B), the''; and
       (B) by adding at the end the following:
       ``(B) Classical plant and animal breeding.--

[[Page 29318]]

       ``(i) Term.--The term of a competitive grant relating to 
     classical plant and animal breeding under paragraph (2)(G) 
     shall not exceed 10 years.
       ``(ii) Availability.--Funds made available for a fiscal 
     year for a competitive grant relating to classical plant and 
     animal breeding under paragraph (2)(G) shall remain available 
     until expended to pay for obligations incurred in that fiscal 
     year.''; and
       (3) in paragraph (10), by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7308. EDUCATION GRANTS TO ALASKA NATIVE SERVING 
                   INSTITUTIONS AND NATIVE HAWAIIAN SERVING 
                   INSTITUTIONS.

       Section 759 of the Agriculture, Rural Development, Food and 
     Drug Administration, and Related Agencies Appropriations Act, 
     2000 (7 U.S.C. 3242) is amended--
       (1) in subsection (a)(3), by striking ``2006'' and 
     inserting ``2012''; and
       (2) in subsection (b)--
       (A) in paragraph (2)(A), by inserting before the semicolon 
     at the end the following: ``, including permitting consortia 
     to designate fiscal agents for the members of the consortia 
     and to allocate among the members funds made available under 
     this section''; and
       (B) in paragraph (3), by striking ``2006'' and inserting 
     ``2012''.

     SEC. 7309. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

       (a) Grants.--Section 7405(c) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (I), by inserting ``, including energy 
     conservation and efficiency'' after ``assistance''; and
       (B) in subparagraph (K), by inserting ``, including 
     transition to organic and other source-verified and value-
     added alternative production and marketing systems'' after 
     ``strategies'';
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Maximum term and size of grant.--
       ``(A) In general.--A grant under this subsection shall--
       ``(i) have a term that is not more than 3 years; and
       ``(ii) be in an amount that is not more than $250,000 a 
     year.
       ``(B) Consecutive grants.--An eligible recipient may 
     receive consecutive grants under this subsection.'';
       (3) by redesignating paragraphs (5) through (7) as 
     paragraphs (9) through (11), respectively;
       (4) by inserting after paragraph (4) the following:
       ``(5) Evaluation criteria.--In making grants under this 
     subsection, the Secretary shall evaluate--
       ``(A) relevancy;
       ``(B) technical merit;
       ``(C) achievability;
       ``(D) the expertise and track record of 1 or more 
     applicants;
       ``(E) the adequacy of plans for the participatory 
     evaluation process, outcome-based reporting, and the 
     communication of findings and results beyond the immediate 
     target audience; and
       ``(F) other appropriate factors, as determined by the 
     Secretary.
       ``(6) Regional balance.--In making grants under this 
     subsection, the Secretary shall, to the maximum extent 
     practicable, ensure geographic diversity.
       ``(7) Organic conversion.--The Secretary may make grants 
     under this subsection to support projects that provide 
     comprehensive technical assistance to beginning farmers or 
     ranchers who are in the process of converting to certified 
     organic production.
       ``(8) Priority.--In making grants under this subsection, 
     the Secretary shall give priority to partnerships and 
     collaborations that are led by or include non-governmental 
     and community-based organizations with expertise in new 
     farmer training and outreach.''; and
       (5) in paragraph (9) (as redesignated by paragraph (3))--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period and adding 
     ``; and''; and
       (C) by adding at the end the following:
       ``(D) refugee or immigrant beginning farmers or ranchers''.
       (b) Education Teams.--Section 7405(d)(2) of the Farm 
     Security and Rural Investment At of 2002 (7 U.S.C. 
     3319f(d)(2)) is amended by inserting ``, including 
     sustainable and organic farming production and marketing 
     methods'' before the period at the end.
       (c) Stakeholder Input.--Section 7405(f) of the Farm 
     Security and Rural Investment At of 2002 (7 U.S.C. 3319f(f)) 
     is amended--
       (1) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and indenting 
     appropriately;
       (2) by striking ``In carrying out'' and inserting the 
     following:
       ``(1) In general.--In carrying out''; and
       (3) by adding at the end the following:
       ``(2) Review panels.--In forming review panels to evaluate 
     proposals submitted under this section, the Secretary shall 
     include individuals from the categories described in 
     paragraph (1).''.
       (d) Funding.--Section 7405 of the Farm Security and Rural 
     Investment At of 2002 (7 U.S.C. 3319f) is amended by striking 
     subsection (h) and inserting the following:
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $30,000,000 for 
     each of fiscal years 2002 through 2012.''.

     SEC. 7310. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

       Section 2 of Public Law 87-788 (commonly known as the 
     ``McIntire-Stennis Cooperative Forestry Act'') (16 U.S.C. 
     582a-1) is amended by inserting ``and 1890 Institutions (as 
     defined in section 2 of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7601)),'' before 
     ``and (b)''.

     SEC. 7311. NATIONAL AQUACULTURE ACT OF 1980.

       Section 10 of the National Aquaculture Act of 1980 (16 
     U.S.C. 2809) is amended by striking ``2007'' each place it 
     appears and inserting ``2012''.

     SEC. 7312. NATIONAL ARBORETUM.

       The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is 
     amended by adding at the end the following:

     ``SEC. 7. CONSTRUCTION OF A CHINESE GARDEN AT NATIONAL 
                   ARBORETUM.

       ``A Chinese Garden may be constructed at the National 
     Arboretum established under this Act with--
       ``(1) funds accepted under section 5;
       ``(2) authorities provided to the Secretary of Agriculture 
     under section 6; and
       ``(3) appropriations made for this purpose.''.

     SEC. 7313. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF 
                   COLUMBIA FOR CERTAIN LAND-GRANT UNIVERSITY 
                   ASSISTANCE.

       Section 208 of the District of Columbia Public 
     Postsecondary Education Reorganization Act (Public Law 93-
     471; 88 Stat. 1428) is amended--
       (1) in subsection (b)(2), by striking ``, except'' and all 
     that follows through the period and inserting a period; and
       (2) in subsection (c)--
       (A) by striking ``section 3'' each place it appears and 
     inserting ``section 3(c)''; and
       (B) by striking ``Such sums may be used to pay'' and all 
     that follows through ``work.''.

     SEC. 7314. EXCHANGE OR SALE AUTHORITY.

       Title III of the Department of Agriculture Reorganization 
     Act of 1994 is amended by adding after section 307 (7 U.S.C. 
     2204 note; Public Law 103-354) (as amended by section 2602) 
     the following:

     ``SEC. 308. EXCHANGE OR SALE AUTHORITY.

       ``(a) Definition of Qualified Items of Personal Property.--
     In this section, the term `qualified items of personal 
     property' means--
       ``(1) animals;
       ``(2) animal products;
       ``(3) plants; and
       ``(4) plant products.
       ``(b) General Authority.--Except as provided in subsection 
     (c), notwithstanding chapter 5 of subtitle I of title 40, 
     United States Code, the Secretary of Agriculture, acting 
     through the Under Secretary for Research, Education, and 
     Economics, in managing personal property for the purpose of 
     carrying out the research functions of the Department of 
     Agriculture, may exchange, sell, or otherwise dispose of any 
     qualified items of personal property, including by way of 
     public auction, and may retain and apply the sale or other 
     proceeds, without further appropriation, in whole or in 
     partial payment--
       ``(1) to acquire any qualified items of personal property; 
     or
       ``(2) to offset costs related to the maintenance, care, or 
     feeding of any qualified items of personal property.
       ``(c) Exception.--Subsection (b) does not apply to the free 
     dissemination of new varieties of seeds and germ plasm in 
     accordance with section 520 of the Revised Statutes (commonly 
     known as the `Department of Agriculture Organic Act of 1862') 
     (7 U.S.C. 2201).''.

     SEC. 7315. CARBON CYCLE RESEARCH.

       (a) In General.--To the extent funds are made available, 
     the Secretary shall provide a grant to the Consortium for 
     Agricultural Soils Mitigation of Greenhouse Gases, acting 
     through Kansas State University, to develop, analyze, and 
     implement, through the land grant universities described in 
     subsection (b), carbon cycle and greenhouse gas management 
     research at the national, regional, and local levels.
       (b) Land Grant Universities.--The land grant universities 
     referred to in subsection (a) are--
       (1) Colorado State University;
       (2) Iowa State University;
       (3) Kansas State University;
       (4) Michigan State University;
       (5) Montana State University;
       (6) Purdue University;
       (7) Ohio State University;
       (8) Texas A&M University; and
       (9) University of Nebraska.
       (c) Use.--Land grant universities described in subsection 
     (b) shall use funds made available under this section--
       (1) to conduct research to improve the scientific basis of 
     using land management practices to increase soil carbon 
     sequestration, including research on the use of new 
     technologies to increase carbon cycle effectiveness, such as 
     biotechnology and nanotechnology;

[[Page 29319]]

       (2) to conduct research on management of other greenhouse 
     gases in the agricultural sector;
       (3) to enter into partnerships to identify, develop, and 
     evaluate agricultural best practices, including partnerships 
     between--
       (A) Federal, State, or private entities; and
       (B) the Department of Agriculture;
       (4) to develop necessary computer models to predict and 
     assess the carbon cycle;
       (5) to estimate and develop mechanisms to measure carbon 
     levels made available as a result of--
       (A) voluntary Federal conservation programs;
       (B) private and Federal forests; and
       (C) other land uses;
       (6) to develop outreach programs, in coordination with 
     Extension Services, to share information on carbon cycle and 
     agricultural best practices that is useful to agricultural 
     producers; and
       (7) to collaborate with the Great Plains Regional Earth 
     Science Application Center to develop a space-based carbon 
     cycle remote sensing technology program--
       (A) to provide, on a near-continual basis, a real-time and 
     comprehensive view of vegetation conditions;
       (B) to assess and model agricultural carbon sequestration; 
     and
       (C) to develop commercial products.
       (d) Cooperative Research.--
       (1) In general.--Subject to the availability of 
     appropriations, the Secretary, in cooperation with 
     departments and agencies participating in the U.S. Global 
     Change Research Program and eligible entities, may carry out 
     research to promote understanding of--
       (A) the flux of carbon in soils and plants (including 
     trees); and
       (B) the exchange of other greenhouse gases from 
     agriculture.
       (2) Eligible entities.--Research under this subsection may 
     be carried out through the competitive awarding of grants and 
     cooperative agreements to colleges and universities (as 
     defined in section 1404 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3103)).
       (3) Cooperative research purposes.--Research conducted 
     under this subsection shall encourage collaboration among 
     scientists with expertise in the areas of soil science, 
     agronomy, agricultural economics, forestry, and other 
     agricultural sciences to focus on--
       (A) developing data addressing carbon losses and gains in 
     soils and plants (including trees) and the exchange of 
     methane and nitrous oxide from agriculture;
       (B) understanding how agricultural and forestry practices 
     affect the sequestration of carbon in soils and plants 
     (including trees) and the exchange of other greenhouse gases, 
     including the effects of new technologies such as 
     biotechnology and nanotechnology;
       (C) developing cost-effective means of measuring and 
     monitoring changes in carbon pools in soils and plants 
     (including trees), including computer models;
       (D) evaluating the linkage between Federal conservation 
     programs and carbon sequestration;
       (E) developing methods, including remote sensing, to 
     measure the exchange of carbon and other greenhouse gases 
     sequestered, and to evaluate leakage, performance, and 
     permanence issues; and
       (F) assessing the applicability of the results of research 
     conducted under this subsection for developing methods to 
     account for the impact of agricultural activities (including 
     forestry) on the exchange of greenhouse gases.
       (e) Extension Projects.--
       (1) In general.--The Secretary, in cooperation with 
     departments and agencies participating in the U.S. Global 
     Change Research Program and local extension agents, experts 
     from institutions of higher education that offer a curriculum 
     in agricultural and biological sciences, and other local 
     agricultural or conservation organizations, may implement 
     extension projects (including on-farm projects with direct 
     involvement of agricultural producers) that combine 
     measurement tools and modeling techniques into integrated 
     packages to monitor the carbon sequestering benefits of 
     conservation practices and the exchange of greenhouse gas 
     emissions from agriculture that demonstrate the feasibility 
     of methods of measuring and monitoring--
       (A) changes in carbon content and other carbon pools in 
     soils and plants (including trees); and
       (B) the exchange of other greenhouse gases.
       (2) Education and outreach.--The Secretary shall make 
     available to agricultural producers, private forest 
     landowners, and appropriate State agencies in each State 
     information concerning--
       (A) the results of projects under this subsection;
       (B) the manner in which the methods used in the projects 
     might be applicable to the operations of the agricultural 
     producers, private forest landowners, and State agencies; and
       (C) information on how agricultural producers and private 
     forest landowners can participate in carbon credit and 
     greenhouse gas trading system.
       (f) Repeal.--Section 221 of the Agricultural Risk 
     Protection Act of 2000 (7 U.S.C. 6711) is repealed.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2008 through 2012.

         Subtitle E--National Institute of Food and Agriculture

     SEC. 7401. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

       (a) In General.--Subtitle F of the Department of 
     Agriculture Reorganization Act of 1994 is amended by adding 
     after section 252 (7 U.S.C. 6972) the following:

     ``SEC. 253. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

       ``(a) Definitions.--In this section:
       ``(1) Advisory board.--The term `Advisory Board' means the 
     National Agricultural Research, Extension, Education, and 
     Economics Advisory Board established under section 1408 of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3123).
       ``(2) Competitive program.--The term `competitive program' 
     means each of the following agricultural research, extension, 
     education, and related programs for which the Secretary has 
     administrative or other authority as of the day before the 
     date of enactment of this section:
       ``(A) The competitive grant program established under 
     section 2(b) of the Competitive, Special, and Facilities 
     Research Grant Act (7 U.S.C. 450i(b)), commonly known as the 
     `National Research Initiative Competitive Grants Program'.
       ``(B) The program providing competitive grants for risk 
     management education established under section 524(a)(3) of 
     the Federal Crop Insurance Act (7 U.S.C. 1524(a)(3)).
       ``(C) The program providing community food project 
     competitive grants established under section 25 of the Food 
     Stamp Act of 1977 (7 U.S.C. 2034).
       ``(D) Each grant program established under section 2501 of 
     the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 2279) providing outreach and assistance for socially 
     disadvantaged farmers and ranchers.
       ``(E) The program providing grants under section 1417(b)(1) 
     of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(1)), commonly 
     known as `Higher Education Challenge Grants'.
       ``(F) The program providing grants and related assistance 
     established under section 1417(b)(5) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3152(b)(5)) commonly known as the `Higher 
     Education Multicultural Scholars Program'.
       ``(G) The program providing food and agricultural sciences 
     national needs graduate and postgraduate fellowship grants 
     established under section 1417(b)(6) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3152(b)(6)).
       ``(H) The program providing grants under section 1417(j) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3152(j)), commonly known as 
     `Institution Challenge Grants'.
       ``(I) The program providing grants for Hispanic-serving 
     institutions established under section 1455 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3241).
       ``(J) The program providing competitive grants for 
     international agricultural science and education programs 
     under section 1459A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b).
       ``(K) The program of agricultural development in the 
     American-Pacific region established under section 1473H of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977.
       ``(L) The research and extension projects carried out under 
     section 1621 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5811), commonly known as the 
     `Sustainable Agriculture Research and Education program'.
       ``(M) The biotechnology risk assessment research program 
     established under section 1668 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5921).
       ``(N) The organic agriculture research and extension 
     initiative established under section 1672B of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5925b).
       ``(O) The Initiative for Future Agriculture and Food 
     Systems established under section 401 of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7621).
       ``(P) The integrated research, education, and extension 
     competitive grants program established under section 406 of 
     the Agricultural Research, Extension, and Education Reform 
     Act of 1998 (7 U.S.C. 7626).
       ``(Q) The Small Business Innovation Research Program 
     established under section 9 of the Small Business Act (15 
     U.S.C. 638).
       ``(R) The specialty crop research initiative under section 
     412 of the Agricultural Research, Extension, and Education 
     Reform Act of 1998.
       ``(S) The administration and management of the regional 
     bioenergy crop research program carried out under section 
     9012 of the Farm Security and Rural Investment Act of 2002.

[[Page 29320]]

       ``(T) Other programs, including any programs added by 
     amendments made by title VII of the Food and Energy Security 
     Act of 2007 that are competitive programs, as determined by 
     the Secretary.
       ``(3) Director.--The term `Director' means the Director of 
     the Institute.
       ``(4) Infrastructure program.--The term `infrastructure 
     program' means each of the following agricultural research, 
     extension, education, and related programs for which the 
     Secretary has administrative or other authority as of the day 
     before the date of enactment of this section:
       ``(A) Each program providing funding to any of the 1994 
     Institutions under sections 533, 534(a), and 535 of the 
     Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
     301 note; Public Law 103-382) (commonly known as `financial 
     assistance, technical assistance, and endowments to tribal 
     colleges and Navajo Community College').
       ``(B) The program established under section 536 of the 
     Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
     301 note; Public Law 103-382) providing research grants for 
     1994 institutions.
       ``(C) Each program established under subsections (b), (c), 
     and (d) of section 3 of the Smith-Lever Act (7 U.S.C. 343).
       ``(D) Each program established under the Hatch Act of 1887 
     (7 U.S.C. 361a et seq.).
       ``(E) Each program established under section 1417(b)(4) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3152(b)(4)), including grant 
     programs under that section (commonly known as the `1890 
     Institution Teaching and Research Capacity Building Grants 
     Program').
       ``(F) The animal health and disease research program 
     established under subtitle E of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3191 et seq.).
       ``(G) Each extension program available to 1890 Institutions 
     established under sections 1444 and 1464 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3221, 3312).
       ``(H) The program established under section 1445 of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3222) (commonly known as the 
     `Evans-Allen Program').
       ``(I) The program providing grants to upgrade agricultural 
     and food sciences facilities at 1890 Institutions established 
     under section 1447 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b).
       ``(J) The program providing distance education grants for 
     insular areas established under section 1490 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3362).
       ``(K) The program providing resident instruction grants for 
     insular areas established under section 1491 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3363).
       ``(L) Each program available to 1890 Institutions 
     established under section 406 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7626).
       ``(M) The program providing competitive extension grants to 
     eligible 1994 Institutions under section 1464 of National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3312) and the Equity in Educational Land-Grant 
     Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301 note) 
     established under section 406 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7626).
       ``(N) Each research and development and related program 
     established under Public Law 87-788 (commonly known as the 
     `McIntire-Stennis Cooperative Forestry Act') (16 U.S.C. 582a 
     et seq.).
       ``(O) Each program established under the Renewable 
     Resources Extension Act of 1978 (16 U.S.C. 1671 et seq.).
       ``(P) Each program providing funding to Hispanic-serving 
     agricultural colleges under section 1456 of the National 
     Agricultural Research, Extension and Teaching Policy Act of 
     1977.
       ``(Q) The administration and management of the farm energy 
     education and technical assistance program carried out under 
     section 9005 of the Farm Security and Rural Investment Act of 
     2002.
       ``(R) Other programs, including any programs added by 
     amendments made by title VII of the Food and Energy Security 
     Act of 2007 that are infrastructure programs, as determined 
     by the Secretary.
       ``(5) Institute.--The term `Institute' means the National 
     Institute of Food and Agriculture established by subsection 
     (b)(1)(A).
       ``(b) Establishment of National Institute for Food and 
     Agriculture.--
       ``(1) Establishment.--
       ``(A) In general.--There is established within the 
     Department an agency to be known as the `National Institute 
     of Food and Agriculture'.
       ``(B) Location.--The location of the Institute shall be in 
     Washington, District of Columbia, as determined by the 
     Secretary.
       ``(C) Members.--The Institute shall consist of--
       ``(i) the Director;
       ``(ii) the individual offices established under subsection 
     (e); and
       ``(iii) the staff and employees of National Institute for 
     Food and Agriculture.
       ``(2) Transfer of authorities.--There are transferred to 
     the Institute the authorities (including all budget 
     authorities and personnel), duties, obligations, and related 
     legal and administrative functions prescribed by law or 
     otherwise granted to the Secretary, the Department, or any 
     other agency or official of the Department under--
       ``(A) the infrastructure programs;
       ``(B) the competitive programs;
       ``(C) the research, education, economic, cooperative State 
     research programs, cooperative extension and education 
     programs, international programs, and other functions and 
     authorities delegated by the Secretary to the Administrator 
     of the Cooperative State Research, Education, and Extension 
     Service pursuant to section 2.66 of title 7, Code of Federal 
     Regulations (or successor regulations); and
       ``(D) any and all other authorities administered by the 
     Administrator of the Cooperative State Research, Education, 
     and Extension Service.
       ``(3) Consolidation of authorities.--To carry out this Act, 
     in accordance with the transfer and continuation of the 
     authorities, budgetary functions, and personnel resources 
     under this subsection, the administrative entity within the 
     Department known as the Cooperative State Research, 
     Education, and Extension Service shall terminate on the 
     earlier of--
       ``(A) October 1, 2008; or
       ``(B) such earlier date as the Director determines to be 
     appropriate.
       ``(c) Director.--
       ``(1) In general.--The Institute shall be headed by a 
     Director, who shall be an individual who is--
       ``(A) a distinguished scientist; and
       ``(B) appointed by the President, by and with the advice 
     and consent of the Senate.
       ``(2) Term.--The Director shall serve for a single, 6-year 
     term.
       ``(3) Supervision.--The Director shall report directly to 
     the Secretary.
       ``(4) Compensation.--The Director shall receive basic pay 
     at the rate provided for level II of the Executive Schedule 
     under section 5513 of title 5, United States Code.
       ``(5) Authority and responsibilities of director.--
       ``(A) In general.--Except as otherwise specifically 
     provided in this section, the Director shall--
       ``(i) exercise all of the authority provided to the 
     Institute by this section;
       ``(ii) formulate programs in accordance with policies 
     adopted by the Institute;
       ``(iii) establish offices within the Institute;
       ``(iv) establish procedures for the peer review of research 
     funded by the Institute;
       ``(v) establish procedures for the provision and 
     administration of grants by the Institute in accordance with 
     this section;
       ``(vi) assess the personnel needs of agricultural research 
     in the areas supported by the Institute, and, if determined 
     to be appropriate by the Director, for other areas of food 
     and agricultural research;
       ``(vii) plan programs that will help meet agricultural 
     personnel needs in the future, including portable fellowship 
     and training programs in fundamental agricultural research 
     and fundamental science; and
       ``(viii) consult regularly with the National Agricultural 
     Research, Extension, Education, and Economics Advisory Board.
       ``(B) Finality of actions.--An action taken by the Director 
     in accordance with this section shall be final and binding 
     upon the Institute.
       ``(C) Delegation and redelegation of functions.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Director may, from time to time and as the Director considers 
     to be appropriate, authorize the performance by any other 
     officer, agency, or employee of the Institute of any of the 
     functions of the Director under this section.
       ``(ii) Contracts, grants, and other arrangements.--The 
     Director may enter into contracts and other arrangements, and 
     provide grants, in accordance with this section.
       ``(iii) Formulation of programs.--The formulation of 
     programs in accordance with the policies of the Institute 
     shall be carried out by the Director.
       ``(6) Staff.--The Director shall recruit and hire such 
     senior staff and other personnel as are necessary to assist 
     the Director in carrying out this section.
       ``(7) Reporting and consultation.--The Director shall--
       ``(A) periodically report to the Secretary with respect to 
     activities carried out by the Institute; and
       ``(B) consult regularly with the Secretary to ensure, to 
     the maximum extent practicable, that--
       ``(i) research of the Institute is relevant to agriculture 
     in the United States and otherwise serves the national 
     interest; and
       ``(ii) the research of the Institute supplements and 
     enhances, and does not replace, research conducted or funded 
     by--

       ``(I) other agencies of the Department;
       ``(II) the National Science Foundation; or
       ``(III) the National Institutes of Health.

       ``(d) Powers.--
       ``(1) In general.--The Institute shall have such authority 
     as is necessary to carry out this section, including the 
     authority--

[[Page 29321]]

       ``(A) to promulgate such regulations as the Institute 
     considers to be necessary for governance of operations, 
     organization, and personnel;
       ``(B) to make such expenditures as are necessary to carry 
     out this section;
       ``(C) to enter into contracts or other arrangements, or 
     modifications of contracts or other arrangements--
       ``(i) to provide for the conduct, by organizations or 
     individuals in the United States (including other agencies of 
     the Department, Federal agencies, and agencies of foreign 
     countries), of such agricultural research or related 
     activities as the Institute considers to be necessary to 
     carry out this section; and
       ``(ii) for the conduct of such specific agricultural 
     research as is in the national interest or is otherwise of 
     critical importance, as determined by the Secretary, with the 
     concurrence of the Institute;
       ``(D) to make advance, progress, and other payments 
     relating to research and scientific activities without regard 
     to subsections (a) and (b) of section 3324 of title 31, 
     United States Code;
       ``(E) to receive and use donated funds, if the funds are 
     donated without restriction other than that the funds be used 
     in furtherance of 1 or more of the purposes of the Institute;
       ``(F) to publish or arrange for the publication of research 
     and scientific information to further the full dissemination 
     of information of scientific value consistent with the 
     national interest, without regard to section 501 of title 44, 
     United States Code;
       ``(G)(i) to accept and use the services of voluntary and 
     uncompensated personnel; and
       ``(ii) to provide such transportation and subsistence as 
     are authorized by section 5703 of title 5, United States 
     Code, for individuals serving without compensation;
       ``(H) to prescribe, with the approval of the Comptroller 
     General of the United States, the extent to which vouchers 
     for funds expended under contracts for scientific or 
     engineering research shall be subject to itemization or 
     substantiation prior to payment, without regard to the 
     limitations of other laws relating to the expenditure and 
     accounting of public funds;
       ``(I) to reimburse the Secretary, and the heads of other 
     Federal agencies, for the performance of any activity that 
     the Institute is authorized to conduct; and
       ``(J) to enter into contracts, at the request of the 
     Secretary, for the carrying out of such specific agricultural 
     research as is in the national interest or otherwise of 
     critical importance, as determined by the Secretary, with the 
     consent of the Institute.
       ``(2) Transfer of research funds of other departments or 
     agencies.--Funds available to the Secretary, or any other 
     department or agency of the Federal Government, for 
     agricultural or scientific research shall be--
       ``(A) available for transfer, with the approval of the 
     Secretary or the head of the other appropriate department or 
     agency involved, in whole or in part, to the Institute for 
     use in providing grants in accordance with the purposes for 
     which the funds were made available; and
       ``(B) if so transferred, expendable by the Institute for 
     those purposes.
       ``(e) Offices.--
       ``(1) Establishment of offices.--
       ``(A) Office of the agricultural research, extension, and 
     education network.--
       ``(i) Establishment.--The Director shall establish within 
     the Institute an Office of the Agricultural Research, 
     Extension, and Education Network (referred to in this 
     subparagraph as the `Office').
       ``(ii) Duties.--At the discretion of the Director, the 
     Office shall have responsibility for all infrastructure 
     programs.
       ``(B) Office of competitive programs for fundamental 
     research.--
       ``(i) Definition of fundamental research.--In this 
     subparagraph, the term `fundamental research' means research 
     that--

       ``(I) is directed toward greater knowledge or understanding 
     of the fundamental aspects of phenomena and has the potential 
     for broad, rather than specific, application; and
       ``(II) has an effect on agriculture, food, nutrition, human 
     health, or another purpose of this section.

       ``(ii) Establishment.--The Director shall establish within 
     the Institute an Office of Competitive Programs for 
     Fundamental Research (referred to in this subparagraph as the 
     `Office').
       ``(iii) Duties.--At the discretion of the Director, the 
     Office shall have responsibility for all competitive programs 
     relating to fundamental research.
       ``(C) Office of competitive programs for applied 
     research.--
       ``(i) Definition of applied research.--In this 
     subparagraph, the term `applied research' means research that 
     expands on the findings of fundamental research to uncover 
     practical ways in which new knowledge can be advanced to 
     benefit individuals and society.
       ``(ii) Establishment.--The Director shall establish within 
     the Institute an Office of Competitive Programs for Applied 
     Research (referred to in this subparagraph as the `Office').
       ``(iii) Duties.--At the discretion of the Director, the 
     Office shall have responsibility for all competitive programs 
     relating to applied research.
       ``(D) Office of competitive programs for education and 
     other purposes.--
       ``(i) Establishment.--The Director shall establish within 
     the Institute an Office of Competitive Programs for Education 
     and Other Purposes (referred to in this subparagraph as the 
     `Office')
       ``(ii) Duties.--At the discretion of the Director, the 
     Office shall have responsibility for all competitive programs 
     that provide education fellowships and other education-
     related grants.
       ``(2) Competitive programs for fundamental and applied 
     research.--
       ``(A) Definition of a competitive program for fundamental 
     and applied research.--In this paragraph, the term 
     `competitive program for fundamental and applied research' 
     means--
       ``(i) the competitive grant program established under 
     section 2 of the Competitive, Special, and Facilities 
     Research Grant Act (7 U.S.C. 450i), commonly known as the 
     `National Research Initiative Competitive Grants Program'; 
     and
       ``(ii) any other competitive program within the Institute 
     that funds both fundamental and applied research, as 
     determined by the Director.
       ``(B) Program allocations.--For purposes of determining 
     which Office established under paragraph (1) should have 
     primary responsibility for administering grants under a 
     competitive program for fundamental and applied research, the 
     Director shall--
       ``(i) determine whether the grant under the competitive 
     program for fundamental and applied research is principally 
     related to fundamental or applied research; and
       ``(ii) assign the grant to the appropriate Office.
       ``(3) Responsibility of the director.--The Director shall 
     ensure that the Offices established under paragraph (1) 
     coordinate with each other Office for maximum efficiency.
       ``(f) Reporting.--The Director shall submit to the 
     Secretary, the Committee on Agriculture and the Committee on 
     Appropriations of the House of Representatives, and the 
     Committee on Agriculture, Nutrition, and Forestry and the 
     Committee on Appropriations of the Senate--
       ``(1) not later than 1 year after the date of establishment 
     of the Institute, and biennially thereafter, a comprehensive 
     report that--
       ``(A) describes the research funded and other activities 
     carried out by the Institute during the period covered by the 
     report; and
       ``(B) describes each contract or other arrangement that the 
     Institute has entered into, each grant awarded to the 
     Institute, and each other action of the Director taken, under 
     subsection (c)(5)(C)(ii); and
       ``(2) not later than 1 year after the date of establishment 
     of the Institute, and annually thereafter, a report that 
     describes the allocation and use of funds under subsection 
     (g)(2) of section 401 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7621).
       ``(g) Funding.--
       ``(1) In general.--In addition to funds otherwise 
     appropriated to carry out each program administered by the 
     Institute, there are authorized to be appropriated such sums 
     as are necessary to carry out this section for each fiscal 
     year.
       ``(2) Allocation.--Funding made available under paragraph 
     (1) shall be allocated according to recommendations contained 
     in the roadmap described in section 309(c)(1)(A).''.
       (b) National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977.--Section 1408(b) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3123(b)) is amended--
       (1) in paragraph (1), by striking ``31 members'' and 
     inserting ``24 members'';
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Membership categories.--The Advisory Board shall 
     consist of members from each of the following categories:
       ``(A) 1 member representing a national farm organization.
       ``(B) 1 member representing farm cooperatives.
       ``(C) 1 member actively engaged in the production of a food 
     animal commodity.
       ``(D) 1 member actively engaged in the production of a 
     plant commodity.
       ``(E) 1 member actively engaged in aquaculture.
       ``(F) 1 member representing a national food animal science 
     society.
       ``(G) 1 member representing a national crop, soil, 
     agronomy, horticulture, plant pathology, or weed science 
     society.
       ``(H) 1 member representing a national food science 
     organization.
       ``(I) 1 member representing a national human health 
     association.
       ``(J) 1 member representing a national nutritional science 
     society.
       ``(K) 1 member representing the land-grant colleges and 
     universities eligible to receive funds under the Act of July 
     2, 1862 (7 U.S.C. 301 et seq.).
       ``(L) 1 member representing the land-grant colleges and 
     universities eligible to receive funds under the Act of 
     August 30, 1890 (7

[[Page 29322]]

     U.S.C. 321 et seq.), including Tuskegee University.
       ``(M) 1 member representing the 1994 Institutions (as 
     defined in section 532 of the Equity in Educational Land-
     Grant Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301 
     note)).
       ``(N) 1 member representing Hispanic-serving institutions.
       ``(O) 1 member representing the American Colleges of 
     Veterinary Medicine.
       ``(P) 1 member engaged in the transportation of food and 
     agricultural products to domestic and foreign markets.
       ``(Q) 1 member representing food retailing and marketing 
     interests.
       ``(R) 1 member representing food and fiber processors.
       ``(S) 1 member actively engaged in rural economic 
     development.
       ``(T) 1 member representing a national consumer interest 
     group.
       ``(U) 1 member representing a national forestry group.
       ``(V) 1 member representing a national conservation or 
     natural resource group.
       ``(W) 1 member representing private sector organizations 
     involved in international development.
       ``(X) 1 member representing a national social science 
     association.''; and
       (3) in paragraph (4), by striking ``the Administrator of 
     the Cooperative State Research, Education, and Extension 
     Service'' and inserting ``the Director of the National 
     Institute of Food and Agriculture''.
       (c) Conforming Amendments.--
       (1) Section 296(b) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
       (A) in paragraph (4), by striking ``or'' at the end;
       (B) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(6) the authority of the Secretary relating to the 
     National Institute of Food and Agriculture under section 253; 
     or''.
       (2) The National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 is amended--
       (A) in section 1424A(b) (7 U.S.C. 3174a(b)), by striking 
     ``the Cooperative State Research, Education, and Extension 
     Service'' and inserting ``the National Institute of Food and 
     Agriculture''; and
       (B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)), by 
     striking ``the Cooperative State Research, Education, and 
     Extension Service'' and inserting ``the National Institute of 
     Food and Agriculture''.
       (3) Section 522(d)(2) of the Federal Crop Insurance Act (7 
     U.S.C. 1522(d)(2)) is amended by striking ``the Cooperative 
     State Research, Education, and Extension Service'' and 
     inserting ``the National Institute of Food and Agriculture''.
       (4) Section 524(a) of the Federal Crop Insurance Act (7 
     U.S.C. 1524(a)) is amended in each of paragraphs (1)(B) and 
     (3)(A) by striking ``the Cooperative State Research, 
     Education, and Extension Service'' each place it appears and 
     inserting ``the National Institute of Food and Agriculture''.
       (5) Section 306(a)(11)(C) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1926(a)(11)(C)) is amended by 
     striking ``the Cooperative State Research, Education, and 
     Extension Service'' and inserting ``the National Institute of 
     Food and Agriculture''.
       (6) Section 704 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 2006 (7 U.S.C. 2209b), is amended by striking 
     ``Cooperative State Research, Education, and Extension 
     Service'' and inserting ``the National Institute of Food and 
     Agriculture''.
       (7) Section 7404(b)(1)(B) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107-
     171) is amended by striking clause (vi) and inserting the 
     following:
       ``(vi) the National Institute of Food and Agriculture.''.
       (8) Section 1499(c) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5506(c)) is amended by 
     striking ``the Cooperative State Research Service'' and 
     inserting ``the National Institute of Food and Agriculture''.
       (9) Section 1622 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5812) is amended--
       (A) in subsection (a)(1), by striking ``the Cooperative 
     State Research Service'' and inserting ``the National 
     Institute of Food and Agriculture''; and
       (B) in subsection (b)(1), by striking subparagraph (B) and 
     inserting the following:
       ``(B) the National Institute of Food and Agriculture;''.
       (10) Section 1668(b) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5921(b)) is 
     amended by striking ``Cooperative State Research, Education, 
     and Extension Service and the Agricultural Research Service'' 
     and inserting ``the National Institute of Food and 
     Agriculture''.
       (11) Section 1670(a)(4) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is 
     amended by striking ``the Administrator of the Cooperative 
     State Research, Education, and Extension Service'' and 
     inserting ``the Director of the National Institute of Food 
     and Agriculture''.
       (12) Section 537 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7446) is amended in each of 
     subsections (a)(2) and (b)(3)(B)(i) by striking ``Cooperative 
     State Research, Education, and Extension Service'' and 
     inserting ``the National Institute of Food and Agriculture''.
       (13) Section 103(a) of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 
     7613(a)) is amended--
       (A) in the subsection heading, by striking ``Cooperative 
     State Research, Education, and Extension Service'' and 
     inserting ``National Institute of Food and Agriculture''; and
       (B) in each of paragraphs (1) and (2)(A), by striking ``the 
     Cooperative State Research, Education, and Extension 
     Service'' and inserting ``the National Institute of Food and 
     Agriculture''.
       (14) Section 401(f)(5) of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 
     7621(f)(5)) is amended by striking ``the Cooperative State 
     Research, Education, and Extension Service'' and inserting 
     ``the National Institute of Food and Agriculture''.
       (15) Section 407(c) of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 
     7627(c)) is amended by striking ``the Cooperative State 
     Research, Education, and Extension Service'' and inserting 
     ``the National Institute of Food and Agriculture''.
       (16) Section 410(a) of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 
     7630(a)) is amended by striking ``the Administrator of the 
     Cooperative State Research, Education, and Extension 
     Service'' and inserting ``the Director of the National 
     Institute of Food and Agriculture''.
       (17) Section 307(g)(5) of the Agricultural Risk Protection 
     Act of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking 
     ``Administrator of the Cooperative State Research, Education, 
     and Extension Service'' and inserting ``the Director of the 
     National Institute of Food and Agriculture''.
       (18) Section 6(b) of the Cooperative Forestry Assistance 
     Act of 1978 (16 U.S.C. 2103b(b)) is amended by striking ``the 
     Cooperative State Research, Education, and Extension Service, 
     may provide technical, financial, and related assistance to 
     State foresters, equivalent State officials, or Cooperative 
     Extension officials'' and inserting ``the National Institute 
     of Food and Agriculture, may provide technical, financial and 
     related assistance to State foresters, equivalent State 
     officials, and Institute officials''.
       (19) Section 19 of the Cooperative Forestry Assistance Act 
     of 1978 (16 U.S.C. 2113) is amended in subsections (a)(2) and 
     (b)(1)(B)(i), by striking ``Extension Service,'' each place 
     it appears and inserting ``National Institute of Food and 
     Agriculture,''.
       (20) Section 105(a) of the Africa: Seeds of Hope Act of 
     1998 (22 U.S.C. 2293 note; Public Law 105-385) is amended by 
     striking ``the Cooperative State Research, Education, and 
     Extension Service (CSREES)'' and inserting ``the National 
     Institute of Food and Agriculture''.
       (21) Section 307(a)(4) of the National Aeronautic and Space 
     Administration Authorization Act of 2005 (42 U.S.C. 
     16657(a)(4)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) the program and structure of, peer review process of, 
     management of conflicts of interest by, compensation of 
     reviewers of, and the effects of compensation on reviewer 
     efficiency and quality within, the National Institute of Food 
     and Agriculture of the Department of Agriculture;''.

     SEC. 7402. COORDINATION OF AGRICULTURAL RESEARCH SERVICE AND 
                   NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

       Title III of the Department of Agriculture Reorganization 
     Act of 1994 is amended by adding after section 308 (as added 
     by section 7314) the following:

     ``SEC. 309. COORDINATION OF AGRICULTURAL RESEARCH SERVICE AND 
                   NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

       ``(a) In General.--The Undersecretary for Research, 
     Education, and Economics shall coordinate the programs under 
     the authority of the Administrator of the Agricultural 
     Research Service and the Director of the National Institute 
     of Food and Agriculture, and the staff of the Administrator 
     and the Director, including national program leaders, shall 
     meet on a regular basis to--
       ``(1) increase coordination and integration of research 
     programs at the Agricultural Research Service and the 
     research, extension, and education programs of the National 
     Institute of Food and Agriculture;
       ``(2) coordinate responses to emerging issues;
       ``(3) minimize duplication of work and resources at the 
     staff level of each agency;
       ``(4) use the extension and education program to deliver 
     knowledge to stakeholders;
       ``(5) address critical needs facing agriculture; and
       ``(6) focus the research, extension, and education funding 
     strategy of the Department.
       ``(b) Reports.--Not later than 270 days after the date of 
     enactment of this section, and annually thereafter, the 
     Secretary shall submit to the Committee on Agriculture of

[[Page 29323]]

     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     describing efforts to increase coordination between the 
     Agricultural Research Service and the National Institute for 
     Food and Agriculture.
       ``(c) Roadmap.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Secretary, acting through 
     the Under Secretary for Research, Education, and Economics 
     shall--
       ``(A) prepare a roadmap for agricultural research, 
     extension, and education that--
       ``(i) identifies major opportunities and gaps in 
     agricultural research, extension, and education that no 
     single entity in the Department would be able to carry out 
     individually, but that is necessary to carry out agricultural 
     research;
       ``(ii) involves--

       ``(I) stakeholders from across the Federal Government;
       ``(II) stakeholders from across the full array of 
     nongovernmental entities; and
       ``(III) the National Agricultural Research, Extension, 
     Education, and Economics Advisory Board established under 
     section 1408 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123);

       ``(iii) incorporates roadmaps for agricultural research 
     made publicly available by other Federal entities, agencies, 
     or offices; and
       ``(iv) describes recommended funding levels for areas of 
     agricultural research, extension, and education, including--

       ``(I) competitive programs; and
       ``(II) infrastructure programs, with attention to the 
     future growth needs of small 1862 Institutions, 1890 
     Institutions, and 1994 Institutions (as those terms are 
     defined in section 2 of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7601)), Hispanic-
     serving agricultural colleges (as defined in section 1456(a) 
     of the National Agricultural Research, Extension and Teaching 
     Policy Act of 1977), and any other public college or 
     university that is not such an institution or college but 
     that offers a baccalaureate or higher degree in the study of 
     agriculture;

       ``(B) use the roadmap to set the research, extension, and 
     education agenda of the Department; and
       ``(C) submit a description of the roadmap to the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       ``(2) Implementation.--The Secretary, acting through the 
     Under Secretary, shall implement, to the maximum extent 
     practicable, the roadmap.
       ``(3) Funding.--There are authorized to be appropriated 
     such sums as are necessary to carry out this subsection.''.

                       Subtitle F--Miscellaneous

     SEC. 7501. JOINT NUTRITION MONITORING AND RELATED RESEARCH 
                   ACTIVITIES.

       The Secretary and the Secretary of Health and Human 
     Services shall continue to provide jointly for national 
     nutrition monitoring and related research activities carried 
     out as of the date of enactment of this Act--
       (1) to collect continuous data relating to diet, health, 
     physical activity, and knowledge about diet and health, using 
     a nationally-representative sample;
       (2) to periodically collect data described in paragraph (1) 
     on special at-risk populations, as identified by the 
     Secretaries;
       (3) to distribute information on health, nutrition, the 
     environment, and physical activity to the public in a timely 
     manner;
       (4) to analyze new data as the data becomes available;
       (5) to continuously update food composition tables; and
       (6) to research and develop data collection methods and 
     standards.

     SEC. 7502. DEMONSTRATION PROJECT AUTHORITY FOR TEMPORARY 
                   POSITIONS.

       Notwithstanding section 4703(d)(1) of title 5, United 
     States Code, the amendment to the personnel management 
     demonstration project established in the Department of 
     Agriculture (67 Fed. Reg. 70776 (2002)), shall become 
     effective upon the date of enactment of this Act and shall 
     remain in effect unless modified by law.

     SEC. 7503. REVIEW OF PLAN OF WORK REQUIREMENTS.

       (a) Review.--The Secretary of Agriculture (referred to in 
     this section as the ``Secretary'') shall work with university 
     partners in extension and research to review and identify 
     measures to streamline the submission, reporting under, and 
     implementation of plan of work requirements including 
     requirements under--
       (1) sections 1444(d) and 1445(c) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3221(d), 3222(c));
       (2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); and
       (3) section 4 of the Smith-Lever Act (7 U.S.C. 344).
       (b) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report describing the results of the review 
     conducted under subsection (a).
       (2) Inclusions.--The report shall include recommendations--
       (A) to reduce the administrative burden and workload on 
     institutions associated with plan of work compliance while 
     meeting the reporting needs of the Department of Agriculture 
     for input, output, and outcome indicators;
       (B) to streamline the submission and reporting requirements 
     of the plan of work so that the plan of work is of practical 
     utility to both the Department of Agriculture and the 
     institutions; and
       (C) for any legislative changes necessary to carry out the 
     plan of work improvements.
       (c) Consultation.--In carrying out this section, the 
     Secretary shall consult with land-grant colleges and 
     universities (as defined in section 1404 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3103)).

     SEC. 7504. STUDY AND REPORT ON ACCESS TO NUTRITIOUS FOODS.

       (a) In General.--The Secretary shall carry out a study of, 
     and prepare a report on, areas in the United States with 
     limited access to affordable and nutritious food, with a 
     particular focus on predominantly lower-income neighborhoods 
     and communities.
       (b) Contents.--The study and report shall--
       (1) assess the incidence and prevalence of areas with 
     limited access to affordable and nutritious food in the 
     United States;
       (2) identify--
       (A) characteristics and factors causing and influencing 
     those areas; and
       (B) the effect on local populations of limited access to 
     affordable and nutritious food; and
       (3) develop recommendations for addressing the causes and 
     influences of those areas through measures including--
       (A) community and economic development initiatives;
       (B) incentives for retail food market development, 
     including supermarkets, small grocery stores, and farmers' 
     markets; and
       (C) improvements to Federal food assistance and nutrition 
     education programs.
       (c) Coordination With Other Agencies and Organizations.--
     The Secretary shall conduct the study under this section in 
     coordination and consultation with--
       (1) the Secretary of Health and Human Services;
       (2) the Administrator of the Small Business Administration;
       (3) the Institute of Medicine; and
       (4) representatives of appropriate businesses, academic 
     institutions, and nonprofit and faith-based organizations.
       (d) Report to Congress.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary shall submit the 
     report prepared under this section, including the findings 
     and recommendations described in subsection (b), to--
       (1) the Committee on Agriculture of the House of 
     Representatives; and
       (2) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate.

                          TITLE VIII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

     SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST 
                   CONSERVATION.

       Section 2 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2101) is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Priorities.--In allocating funds appropriated or 
     otherwise made available under this Act, the Secretary shall 
     focus on the following national private forest conservation 
     priorities:
       ``(1) Conserving and managing working forest landscapes for 
     multiple values and uses.
       ``(2) Protecting forests from threats to forest and forest 
     health, including unnaturally large wildfires, hurricanes, 
     tornadoes, windstorms, snow or ice storms, flooding, drought, 
     invasive species, insect or disease outbreak, or development, 
     and restoring appropriate forest structures and ecological 
     processes in response to such threats.
       ``(3) Enhancing public benefits from private forests, 
     including air and water quality, forest products, forestry-
     related jobs, production of renewable energy, wildlife, 
     enhanced biodiversity, the establishment or maintenance of 
     wildlife corridors and wildlife habitat, and recreation.
       ``(d) Reporting Requirement.--Not later than September 30, 
     2011, the Secretary shall submit to Congress a report 
     describing how funding was used under this Act to address the 
     national priorities specified in subsection (c) and the 
     outcomes achieved in meeting the national priorities.''.

     SEC. 8002. COMMUNITY FOREST AND OPEN SPACE CONSERVATION 
                   PROGRAM.

       (a) Findings.--Congress finds that--
       (1) the Forest Service projects that, by calendar year 
     2030, approximately 44,000,000 acres of privately-owned 
     forest land will be developed throughout the United States;
       (2) public access to parcels of privately-owned forest land 
     for outdoor recreational

[[Page 29324]]

     activities, including hunting, fishing, and trapping, has 
     declined and, as a result, participation in those activities 
     has also declined in cases in which public access is not 
     secured;
       (3) rising rates of obesity and other public health 
     problems relating to the inactivity of the citizens of the 
     United States have been shown to be ameliorated by improving 
     public access to safe and attractive areas for outdoor 
     recreation;
       (4) in rapidly-growing communities of all sizes throughout 
     the United States, remaining parcels of forest land play an 
     essential role in protecting public water supplies;
       (5) forest parcels owned by local governmental entities and 
     nonprofit organizations are providing important demonstration 
     sites for private landowners to learn forest management 
     techniques;
       (6) throughout the United States, communities of diverse 
     types and sizes are deriving significant financial and 
     community benefits from managing forest land owned by local 
     governmental entities for timber and other forest products; 
     and
       (7) there is an urgent need for local governmental entities 
     to be able to leverage financial resources in order to 
     purchase important parcels of privately-owned forest land as 
     the parcels are offered for sale.
       (b) Community Forest and Open Space Conservation Program.--
     The Cooperative Forestry Assistance Act of 1978 is amended by 
     inserting after section 7 (16 U.S.C. 2103c) the following:

     ``SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION 
                   PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means a 
     local governmental entity, Indian tribe, or nonprofit 
     organization that owns or acquires a parcel under the 
     program.
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) Local governmental entity.--The term `local 
     governmental entity' includes any municipal government, 
     county government, or other local government body with 
     jurisdiction over local land use decisions.
       ``(4) Nonprofit organization.--The term `nonprofit 
     organization' means any organization that--
       ``(A) is described in section 170(h)(3) of the Internal 
     Revenue Code of 1986; and
       ``(B) operates in accordance with 1 or more of the purposes 
     specified in section 170(h)(4)(A) of that Code.
       ``(5) Program.--The term `Program' means the community 
     forest and open space conservation program established under 
     subsection (b).
       ``(6) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Chief of the Forest 
     Service.
       ``(b) Establishment.--The Secretary shall establish a 
     program, to be known as the `community forest and open space 
     conservation program'.
       ``(c) Grant Program.--
       ``(1) In general.--The Secretary may award grants to 
     eligible entities to acquire private forest land, to be owned 
     in fee simple, that--
       ``(A) are threatened by conversion to nonforest uses; and
       ``(B) provide public benefits to communities, including--
       ``(i) economic benefits through sustainable forest 
     management;
       ``(ii) environmental benefits, including clean water and 
     wildlife habitat;
       ``(iii) benefits from forest-based educational programs, 
     including vocational education programs in forestry;
       ``(iv) benefits from serving as models of effectively-
     managed effective forest stewardship for private landowners; 
     and
       ``(v) recreational benefits, including hunting and fishing.
       ``(2) Federal cost share.--An eligible entity may receive a 
     grant under the Program in an amount equal to not more than 
     50 percent of the cost of acquiring 1 or more parcels, as 
     determined by the Secretary.
       ``(3) Non-federal share.--As a condition of receipt of the 
     grant, an eligible entity that receives a grant under the 
     Program shall provide, in cash, donation, or in kind, a non-
     Federal matching share in an amount that is at least equal to 
     the amount of the grant received.
       ``(4) Appraisal of parcels.--To determine the non-Federal 
     share of the cost of a parcel of privately-owned forest land 
     under paragraph (2), an eligible entity shall require 
     appraisals of the land that comply with the Uniform Appraisal 
     Standards for Federal Land Acquisitions developed by the 
     Interagency Land Acquisition Conference.
       ``(5) Application.--An eligible entity that seeks to 
     receive a grant under the Program shall submit to the State 
     forester or equivalent official (or in the case of an 
     eligible entity that is an Indian tribe, an equivalent 
     official of the Indian tribe) an application that includes--
       ``(A) a description of the land to be acquired;
       ``(B) a forest plan that provides--
       ``(i) a description of community benefits to be achieved 
     from the acquisition of the private forest land; and
       ``(ii) an explanation of the manner in which any private 
     forest land to be acquired using funds from the grant will be 
     managed; and
       ``(C) such other relevant information as the Secretary may 
     require.
       ``(6) Effect on trust land.--
       ``(A) Ineligibility.--The Secretary shall not provide a 
     grant under the Program for any project on land held in trust 
     by the United States (including Indian reservations and 
     allotment land).
       ``(B) Acquired land.--No land acquired using a grant 
     provided under the Program shall be converted to land held in 
     trust by the United States on behalf of any Indian tribe.
       ``(7) Applications to secretary.--The State forester or 
     equivalent official (or in the case of an eligible entity 
     that is an Indian tribe, an equivalent official of the Indian 
     tribe) shall submit to the Secretary a list that includes a 
     description of each project submitted by an eligible entity 
     at such times and in such form as the Secretary shall 
     prescribe.
       ``(d) Duties of Eligible Entity.--An eligible entity--
       ``(1) shall provide public access to, and manage, forest 
     land acquired with a grant under this section in a manner 
     that is consistent with the purposes for which the land was 
     acquired under the Program; and
       ``(2) shall not convert the property to other uses.
       ``(e) Prohibited Uses.--
       ``(1) In general.--Subject to paragraphs (2) and (3), an 
     eligible entity that acquires a parcel under the Program 
     shall not sell the parcel or convert the parcel to nonforest 
     use.
       ``(2) Reimbursement of funds.--An eligible entity that 
     sells or converts to nonforest use a parcel acquired under 
     the Program shall pay to the Federal Government an amount 
     equal to the greater of the current sale price, or current 
     appraised value, of the parcel.
       ``(3) Loss of eligibility.--An eligible entity that sells 
     or converts a parcel acquired under the Program shall not be 
     eligible for additional grants under the Program.
       ``(f) State Administration and Technical Assistance.--To 
     assist model stewardship of parcels acquired under the 
     Program, the Secretary may allocate not more than 10 percent 
     of all funds made available to carry out the Program for each 
     fiscal year to State foresters or equivalent officials 
     (including an equivalent official of an Indian tribe) for 
     Program administration and technical assistance.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 8003. FEDERAL, STATE, AND LOCAL COORDINATION AND 
                   COOPERATION.

       Section 19(b)(2)(D) of the Cooperative Forestry Assistance 
     Act of 1978 (16 U.S.C. 2113(b)(2)(D)) is amended by inserting 
     ``except for projects submitted by an Indian tribe,'' before 
     ``make recommendations''.

     SEC. 8004. COMPREHENSIVE STATEWIDE FOREST PLANNING.

       The Cooperative Forestry Assistance Act of 1978 is 
     amended--
       (1) by redesignating section 20 (16 U.S.C. 2114) as section 
     22; and
       (2) by inserting after section 19 (16 U.S.C. 2113) the 
     following:

     ``SEC. 20. COMPREHENSIVE STATEWIDE FOREST PLANNING.

       ``(a) Establishment.--The Secretary shall establish a 
     comprehensive statewide forest planning program under which 
     the Secretary shall provide financial and technical 
     assistance to States for use in the development and 
     implementation of statewide forest resource assessments and 
     plans.
       ``(b) Statewide Forest Resource Assessment and Plan.--For a 
     State to be eligible to receive funds under this Act, not 
     later than 2 years after the date of enactment of the Food 
     and Energy Security Act of 2007, the State Forester of the 
     State, or an equivalent State official, shall develop a 
     statewide forest resource assessment and plan that, at a 
     minimum--
       ``(1) identifies each critical forest resource area in the 
     State described in section 2(c);
       ``(2) to the maximum extent practicable--
       ``(A) incorporates any forest management plan of the State 
     in existence on the date of enactment of this section;
       ``(B) addresses the needs of the region, without regard to 
     the borders of each State of the region (or the political 
     subdivisions of each State of the region);
       ``(C) provides a comprehensive statewide plan (including 
     the opportunity for public participation in the development 
     of the statewide plan) for--
       ``(i) managing the forest land in the State;
       ``(ii) achieving the national priorities specified in 
     section 2(c)(2);
       ``(iii) monitoring the forest land in the State; and
       ``(iv) administering any forestry-related Federal, State, 
     or private grants awarded to the State under this section or 
     any other provisions of law; and
       ``(D) includes a multiyear, integrated forest management 
     strategy that provides a management framework for--
       ``(i) the administration of each applicable program of the 
     State; and

[[Page 29325]]

       ``(ii) the use of any funds made available for the 
     management of the forest land in the State; and
       ``(3) is determined by the Secretary to be sufficient to 
     satisfy all relevant State planning and assessment 
     requirements under this Act.
       ``(c) Coordination.--In developing the statewide assessment 
     and plan under subsection (b), the State Forester or 
     equivalent State official shall--
       ``(1) coordinate with--
       ``(A) the State Forest Stewardship Coordination Committee 
     established for the State under section 19(b);
       ``(B) the State wildlife agency, with respect to strategies 
     contained in the State wildlife action plans;
       ``(C) the State Technical Committee; and
       ``(D) applicable Federal land management agencies; and
       ``(2) for purposes of the Forest Legacy Program under 
     section 7, work cooperatively with the State lead agency 
     designated by the Governor.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each fiscal year.''.

     SEC. 8005. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA, 
                   THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE 
                   REPUBLIC OF PALAU.

       Section 13(d)(1) of the Cooperative Forestry Assistance Act 
     of 1978 (16 U.S.C. 2109(d)(1)) is amended by striking ``the 
     Trust Territory of the Pacific Islands,'' and inserting ``the 
     Federated States of Micronesia, the Republic of the Marshall 
     Islands, the Republic of Palau,''.

        Subtitle B--Tribal-Forest Service Cooperative Relations

     SEC. 8101. DEFINITIONS.

       In this subtitle:
       (1) Indian.--The term ``Indian'' means an individual who is 
     a member of an Indian tribe.
       (2) Indian tribe.--The term ``Indian tribe''--
       (A) for purposes of title I, has the meaning given the term 
     in section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b); and
       (B) for purposes of title II, means any Indian or Alaska 
     Native tribe, band, nation, pueblo, village, or other 
     community the name of which is included on a list published 
     by the Secretary of the Interior pursuant to section 104 of 
     the Federally Recognized Indian Tribe List Act of 1994 (25 
     U.S.C. 479a-1).
       (3) National forest system.--The term ``National Forest 
     System'' has the meaning given the term in section 11(a) of 
     the Forest and Rangeland Renewable Resources Planning Act of 
     1974 (16 U.S.C. 1609(a)).

     PART I--COLLABORATION BETWEEN INDIAN TRIBES AND FOREST SERVICE

     SEC. 8111. FOREST LEGACY PROGRAM.

       (a) Participation by Indian Tribes.--Section 7 of the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103c) 
     is amended--
       (1) in subsection (a), in the first sentence, by inserting 
     ``, including Indian tribes,'' after ``government'';
       (2) in subsection (b), by inserting ``or programs of Indian 
     tribes'' after ``regional programs'';
       (3) in subsection (f), in the second sentence, by striking 
     ``other appropriate State or regional natural resource 
     management agency'' and inserting ``other appropriate natural 
     resource management agency of a State, region, or Indian 
     tribe'';
       (4) in subsection (h)(2), by inserting ``, including an 
     Indian tribe'' before the period at the end; and
       (5) in subsection (j)(2), in the first sentence, by 
     inserting ``including Indian tribes,'' after ``governmental 
     units,''.
       (b) Optional State and Tribal Grants.--Section 7(l ) of the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
     2103c(l)) is amended--
       (1) in the subsection heading, by inserting ``and Tribal'' 
     after ``State'';
       (2) by redesignating paragraph (3) as paragraph (4); and
       (3) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Definition of indian tribe.--In this subsection, the 
     term `Indian tribe' has the meaning given the term in section 
     4 of the Indian Self-Determination and Education Assistance 
     Act (25 U.S.C. 450b).
       ``(2) Grants.--On request of a participating State or 
     Indian tribe, the Secretary shall provide a grant to the 
     State or Indian tribe to carry out the Forest Legacy Program 
     in the State or with the Indian tribe.
       ``(3) Administration.--If a State or Indian tribe elects to 
     receive a grant under this subsection--
       ``(A) the Secretary shall use a portion of the funds made 
     available under subsection (m), as determined by the 
     Secretary, to provide a grant to the State or Indian tribe; 
     and
       ``(B) the State or Indian tribe shall use the grant to 
     carry out the Forest Legacy Program in the State or with the 
     Indian tribe, including through acquisition by the State or 
     Indian tribe of land and interests in land.
       ``(4) Effect on trust land.--
       ``(A) Ineligibility.--The Secretary shall not provide a 
     grant under this subsection for any project on land held in 
     trust by the United States (including Indian reservations and 
     allotment land).
       ``(B) Acquired land.--No land acquired using a grant 
     provided under this subsection shall be converted to land 
     held in trust by the United States on behalf of any Indian 
     tribe.''.
       (c) Conforming Amendments.--Section 7(j)(1) of the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
     2103c(j)(1)) is amended by striking the first sentence and 
     inserting the following: ``Fair market value shall be paid 
     for any property interest acquired (other than by donation) 
     under this section.''.

     SEC. 8112. FORESTRY AND RESOURCE MANAGEMENT ASSISTANCE FOR 
                   INDIAN TRIBES.

       (a) Definition of Eligible Indian Land.--In this section, 
     the term ``eligible Indian land'' means, with respect to each 
     participating Indian tribe--
       (1) trust land located within the boundaries of the 
     reservation of the Indian tribe;
       (2) land owned in fee by the Indian tribe; and
       (3) trust land located outside the boundaries of the 
     reservation of the Indian tribe that is eligible for use for 
     land programs of the Indian tribe.
       (b) Authority to Provide Assistance.--The Secretary may 
     provide financial, technical, educational, and related 
     assistance to any Indian tribe for--
       (1) tribal consultation and coordination with the Forest 
     Service on issues relating to--
       (A) access and use by members of the Indian tribe to 
     National Forest System land and resources for traditional, 
     religious, and cultural purposes;
       (B) coordinated or cooperative management of resources 
     shared by the Forest Service and the Indian tribe; or
       (C) the provision of tribal traditional, cultural, or other 
     expertise or knowledge;
       (2) projects and activities for conservation education and 
     awareness with respect to forest land or grassland that is 
     eligible Indian land; and
       (3) technical assistance for forest resources planning, 
     management, and conservation on eligible Indian land.
       (c) Requirements.--
       (1) In general.--During any fiscal year, an Indian tribe 
     may participate in only 1 approved activity that receives 
     assistance under--
       (A) subsection (b)(3); or
       (B) the forest stewardship program under section 5 of the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
     2103a).
       (d) Implementation.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations to implement subsection (b), including rules for 
     determining the distribution of assistance under that 
     subsection.
       (2) Consultation.--In developing regulations pursuant to 
     paragraph (1), the Secretary shall conduct full, open, and 
     substantive consultation with Indian tribal governments and 
     other representatives of Indian tribes.
       (e) Coordination With Secretary of Interior.--In carrying 
     out this section, the Secretary shall coordinate with the 
     Secretary of the Interior to ensure that activities under 
     subsection (b)--
       (1) do not conflict with Indian tribal programs provided by 
     the Department of the Interior; and
       (2) achieve the goals established by the affected Indian 
     tribes.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

          PART II--CULTURAL AND HERITAGE COOPERATION AUTHORITY

     SEC. 8121. PURPOSES.

       The purposes of this part are--
       (1) to authorize the reburial of human remains and cultural 
     items, including human remains and cultural items repatriated 
     under the Native American Graves Protection and Repatriation 
     Act (25 U.S.C. 3001 et seq.), on National Forest System land;
       (2) to prevent the unauthorized disclosure of information 
     regarding reburial sites, including--
       (A) the quantity and identity of human remains and cultural 
     items on the sites; and
       (B) the location of the sites;
       (3) to authorize the Secretary to ensure access to National 
     Forest System land, to the maximum extent practicable, by 
     Indians and Indian tribes for traditional and cultural 
     purposes;
       (4) to authorize the Secretary to provide forest products 
     free of charge to Indian tribes for traditional and cultural 
     purposes;
       (5) to authorize the Secretary to protect the 
     confidentiality of certain information, including information 
     that is culturally sensitive to Indian tribes;
       (6) to increase the availability of Forest Service programs 
     and resources to Indian tribes in support of the policy of 
     the United States to promote tribal sovereignty and self-
     determination; and
       (7) to strengthen support for the policy of the United 
     States of protecting and preserving the traditional, 
     cultural, and ceremonial rites and practices of Indian 
     tribes,

[[Page 29326]]

     in accordance with Public Law 95-341 (commonly known as the 
     ``American Indian Religious Freedom Act'') (42 U.S.C. 1996).

     SEC. 8122. DEFINITIONS.

       In this part:
       (1) Adjacent site.--The term ``adjacent site'' means a site 
     that borders a boundary line of National Forest system land.
       (2) Cultural items.--
       (A) In general.--The term ``cultural items'' has the 
     meaning given the term in section 2 of the Native American 
     Graves Protection and Repatriation Act (25 U.S.C. 3001).
       (B) Exception.--The term ``cultural items'' does not 
     include human remains.
       (3) Human remains.--The term ``human remains'' means the 
     physical remains of the body of a person of Indian ancestry.
       (4) Lineal descendant.--The term ``lineal descendant'' 
     means an individual that can trace, directly and without 
     interruption, the ancestry of the individual through the 
     traditional kinship system of an Indian tribe, or through the 
     common law system of descent, to a known Indian, the human 
     remains, funerary objects, or other sacred objects of whom 
     are claimed by the individual.
       (5) Reburial site.--The term ``reburial site'' means a 
     discrete physical location at which cultural items or human 
     remains are reburied.
       (6) Traditional and cultural purpose.--The term 
     ``traditional and cultural purpose'', with respect to a 
     definable use, area, or practice, means that the use, area, 
     or practice is identified by an Indian tribe as traditional 
     or cultural because of the long-established significance or 
     ceremonial nature of the use, area, or practice to the Indian 
     tribe.

     SEC. 8123. REBURIAL OF HUMAN REMAINS AND CULTURAL ITEMS.

       (a) Reburial Sites.--In consultation with an affected 
     Indian tribe or lineal descendant, the Secretary may 
     authorize the use of National Forest System land by the 
     Indian tribe or lineal descendant for the reburial of human 
     remains or cultural items in the possession of the Indian 
     tribe or lineal descendant that have been disinterred from 
     National Forest System land or an adjacent site.
       (b) Reburial.--With the consent of the affected Indian 
     tribe or lineal descendent, the Secretary may recover and 
     rebury, at Federal expense or using other available funds, 
     human remains and cultural items described in subsection (a) 
     at the National Forest System land identified under that 
     subsection.
       (c) Authorization of Use.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     may authorize such uses on reburial sites or adjacent sites 
     as the Secretary determines to be necessary for management of 
     the National Forest System.
       (2) Avoidance of adverse impacts.--In carrying out 
     paragraph (1), the Secretary shall avoid adverse impacts to 
     cultural items and human remains, to the maximum extent 
     practicable.

     SEC. 8124. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL 
                   PURPOSES.

       (a) Recognition of Historic Use.--The Secretary shall, to 
     the maximum extent practicable, ensure access to National 
     Forest System land by Indians for traditional and cultural 
     purposes, in accordance with subsection (b), in recognition 
     of the historic use by Indians of National Forest System 
     land.
       (b) Closing Land From Public Access.--
       (1) In general.--On receipt of a request from an Indian 
     tribe, the Secretary may temporarily close from public access 
     specifically designated National Forest System land to 
     protect the privacy of tribal activities for traditional and 
     cultural purposes.
       (2) Limitation.--A closure of National Forest System land 
     under paragraph (1) shall affect the smallest practicable 
     area for the minimum period necessary for activities of the 
     applicable Indian tribe.
       (3) Consistency.--Access by Indian tribes to National 
     Forest System land under this subsection shall be consistent 
     with the purposes of Public Law 95-341 (commonly known as the 
     ``American Indian Religious Freedom Act'') (42 U.S.C. 1996).

     SEC. 8125. FOREST PRODUCTS FOR TRADITIONAL AND CULTURAL 
                   PURPOSES.

       (a) In General.--Notwithstanding section 14 of the National 
     Forest Management Act of 1976 (16 U.S.C. 472a), the Secretary 
     may provide free of charge to Indian tribes any trees, 
     portions of trees, or forest products from National Forest 
     System land for traditional and cultural purposes.
       (b) Prohibition.--Trees, portions of trees, or forest 
     products provided under subsection (a) may not be used for 
     commercial purposes.

     SEC. 8126. PROHIBITION ON DISCLOSURE.

       (a) Nondisclosure of Information.--
       (1) In general.--The Secretary shall not disclose under 
     section 552 of title 5, United States Code (commonly known as 
     the ``Freedom of Information Act''), any information relating 
     to--
       (A) subject to subsection (b)(l), human remains or cultural 
     items reburied on National Forest System land under section 
     8123; or
       (B) subject to subsection (b)(2), resources, cultural 
     items, uses, or activities that--
       (i) have a traditional and cultural purpose; and
       (ii) are provided to the Secretary by an Indian or Indian 
     tribe under an express expectation of confidentiality in the 
     context of forest and rangeland research activities carried 
     out under the authority of the Forest Service.
       (2) Limitations on disclosure.--Subject to subsection 
     (b)(2), the Secretary shall not be required to disclose 
     information under section 552 of title 5, United States Code 
     (commonly known as the ``Freedom of Information Act''), 
     concerning the identity, use, or specific location in the 
     National Forest System of--
       (A) a site or resource used for traditional and cultural 
     purposes by an Indian tribe; or
       (B) any cultural items not covered under section 8123.
       (b) Limited Release of Information.--
       (1) Reburial.--The Secretary may disclose information 
     described in subsection (a)(l)(A) if, before the disclosure, 
     the Secretary--
       (A) consults with an affected Indian tribe or lineal 
     descendent;
       (B) determines that disclosure of the information--
       (i) would advance the purposes of this part; and
       (ii) is necessary to protect the human remains or cultural 
     items from harm, theft, or destruction; and
       (C) attempts to mitigate any adverse impacts identified by 
     an Indian tribe or lineal descendant that reasonably could be 
     expected to result from disclosure of the information.
       (2) Other information.--The Secretary may disclose 
     information described under paragraph (1)(B) or (2) of 
     subsection if the Secretary determines that disclosure of the 
     information to the public--
       (A) would advance the purposes of this part;
       (B) would not create an unreasonable risk of harm, theft, 
     or destruction of the resource, site, or object, including 
     individual organic or inorganic specimens; and
       (C) would be consistent with other applicable laws.

     SEC. 8127. SEVERABILITY AND SAVINGS PROVISIONS.

       (a) Severability.--If any provision of this part, or the 
     application of any provision of this part to any person or 
     circumstance, is held invalid, the application of such 
     provision or circumstance and the remainder of this part 
     shall not be affected thereby.
       (b) Savings.--Nothing in this part--
       (1) diminishes or expands the trust responsibility of the 
     United States to Indian tribes, or any legal obligation or 
     remedy resulting from that responsibility;
       (2) alters, abridges, repeals, or affects any valid 
     agreement between the Forest Service and an Indian tribe;
       (3) alters, abridges, diminishes, repeals, or affects any 
     reserved or other right of an Indian tribe; or
       (4) alters, abridges, diminishes, repeals, or affects any 
     other valid existing right relating to National Forest System 
     land or other public land.

                  Subtitle C--Amendments to Other Laws

     SEC. 8201. RENEWABLE RESOURCES EXTENSION ACTIVITIES.

       (a) Authorization of Appropriations.--Section 6 of the 
     Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
     amended in the first sentence by striking ``2007'' and 
     inserting ``2012''.
       (b) Termination Date.--Section 8 of the Renewable Resources 
     Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-
     306) is amended by striking ``2007'' and inserting ``2012''.

     SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

       Section 2405(d) of the Global Climate Change Prevention Act 
     of 1990 (7 U.S.C. 6704(d)) is amended by striking ``2007'' 
     and inserting ``2012''.

                            TITLE IX--ENERGY

     SEC. 9001. ENERGY.

       Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is amended to read as follows:

                           ``TITLE IX--ENERGY

     ``SEC. 9001. DEFINITIONS.

       ``Except as otherwise provided, in this title:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Advisory committee.--The term `Advisory Committee' 
     means the Biomass Research and Development Technical Advisory 
     Committee established by section 9008(d)(1).
       ``(3) Advanced biofuel.--
       ``(A) In general.--The term `advanced biofuel' means fuel 
     derived from renewable biomass other than corn starch.
       ``(B) Inclusions.--The term `advanced biofuel' includes--
       ``(i) biofuel derived from cellulose, hemicellulose, or 
     lignin;
       ``(ii) biofuel derived from sugar and starch (other than 
     ethanol derived from corn starch);
       ``(iii) biofuel derived from waste material, including crop 
     residue, other vegetative waste material, animal waste, food 
     waste, and yard waste;
       ``(iv) diesel-equivalent fuel derived from renewable 
     biomass, including vegetable oil and animal fat;
       ``(v) biogas (including landfill gas and sewage waste 
     treatment gas) produced through the conversion of organic 
     matter from renewable biomass;

[[Page 29327]]

       ``(vi) butanol or other alcohols produced through the 
     conversion of organic matter from renewable biomass; and
       ``(vii) other fuel derived from cellulosic biomass.
       ``(4) Biobased product.--The term `biobased product' means 
     a product determined by the Secretary to be a commercial or 
     industrial product (other than food or feed) that is--
       ``(A) composed, in whole or in significant part, of 
     biological products, including renewable domestic 
     agricultural materials and forestry materials; or
       ``(B) an intermediate ingredient or feedstock.
       ``(5) Biofuel.--The term `biofuel' means a fuel derived 
     from renewable biomass.
       ``(6) Biomass conversion facility.--The term `biomass 
     conversion facility' means a facility that converts or 
     proposes to convert renewable biomass into--
       ``(A) heat;
       ``(B) power;
       ``(C) biobased products; or
       ``(D) advanced biofuels.
       ``(7) Biorefinery.--The term `biorefinery' means equipment 
     and processes that--
       ``(A) convert renewable biomass into biofuels and biobased 
     products; and
       ``(B) may produce electricity.
       ``(8) Board.--The term `Board' means the Biomass Research 
     and Development Board established by section 9008(c).
       ``(9) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(10) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 102(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1002(a)).
       ``(11) Intermediate ingredient or feedstock.--The term 
     `intermediate ingredient or feedstock' means a material or 
     compound made in whole or in significant part from biological 
     products, including renewable agricultural materials 
     (including plant, animal, and marine materials) or forestry 
     materials, that are subsequently used to make a more complex 
     compound or product.
       ``(12) Renewable biomass.--The term `renewable biomass' 
     means--
       ``(A) materials, pre-commercial thinnings, or removed 
     exotic species that--
       ``(i) are byproducts of preventive treatments (such as 
     trees, wood, brush, thinnings, chips, and slash), that are 
     removed--

       ``(I) to reduce hazardous fuels;
       ``(II) to reduce or contain disease or insect infestation; 
     or
       ``(III) to restore ecosystem health;

       ``(ii) would not otherwise be used for higher-value 
     products; and
       ``(iii) are harvested from National Forest System land or 
     public lands (as defined in section 103 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1702)), in 
     accordance with--

       ``(I) Federal and State law;
       ``(II) applicable land management plans; and
       ``(III) the requirements for old-growth maintenance, 
     restoration, and management direction of paragraphs (2), (3), 
     and (4) of subsection (e) of section 102 of the Healthy 
     Forests Restoration Act of 2003 (16 U.S.C. 6512) and the 
     requirements for large-tree retention of subsection (f) of 
     that section; or

       ``(B) any organic matter that is available on a renewable 
     or recurring basis from non-Federal land or land belonging to 
     an Indian or Indian tribe that is held in trust by the United 
     States or subject to a restriction against alienation imposed 
     by the United States, including--
       ``(i) renewable plant material, including--

       ``(I) feed grains;
       ``(II) other agricultural commodities;
       ``(III) other plants and trees; and
       ``(IV) algae; and

       ``(ii) waste material, including--

       ``(I) crop residue;
       ``(II) other vegetative waste material (including wood 
     waste and wood residues);
       ``(III) animal waste and byproducts (including fats, oils, 
     greases, and manure);
       ``(IV) construction waste; and
       ``(V) food waste and yard waste.

       ``(13) Renewable energy.--The term `renewable energy' means 
     energy derived from--
       ``(A) a wind, solar, renewable biomass, ocean (including 
     tidal, wave, current, and thermal), geothermal, or 
     hydroelectric source; or
       ``(B) hydrogen derived from renewable biomass or water 
     using an energy source described in subparagraph (A).
       ``(14) Rural area.--Except as otherwise provided in this 
     title, the term `rural area' has the meaning given the term 
     in section 343(a)(13)(A) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1991(a)(13)(A)).
       ``(15) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.

     ``SEC. 9002. BIOBASED MARKETS PROGRAM.

       ``(a) Federal Procurement of Biobased Products.--
       ``(1) Definition of procuring agency.--In this subsection, 
     the term `procuring agency' means--
       ``(A) any Federal agency that is using Federal funds for 
     procurement; or
       ``(B) a person that is a party to a contract with any 
     Federal agency, with respect to work performed under such a 
     contract.
       ``(2) Application of section.--Except as provided in 
     paragraph (3), each procuring agency shall comply with this 
     subsection (including any regulations issued under this 
     subsection), with respect to any purchase or acquisition of a 
     procurement item for which--
       ``(A) the purchase price of the item exceeds $10,000; or
       ``(B) the quantity of the items or of functionally-
     equivalent items purchased or acquired during the preceding 
     fiscal year was at least $10,000.
       ``(3) Procurement preference.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     after the date specified in applicable guidelines prepared 
     pursuant to paragraph (5), each procuring agency that 
     procures any items designated in the guidelines and items 
     containing designated biobased intermediate ingredients and 
     feedstocks shall, in making procurement decisions (consistent 
     with maintaining a satisfactory level of competition, 
     considering the guidelines), give preference to items that--
       ``(i) are composed of the highest percentage of biobased 
     products practicable;
       ``(ii) are composed of at least 5 percent of intermediate 
     ingredients and feedstocks (or a lesser percentage that the 
     Secretary determines to be appropriate) as designated by the 
     Secretary; or
       ``(iii) comply with the regulations issued under section 
     103 of Public Law 100-556 (42 U.S.C. 6914b-1).
       ``(B) Flexibility.--Notwithstanding subparagraph (A), a 
     procuring agency may decide not to procure items described in 
     that subparagraph if the procuring agency determines that the 
     items--
       ``(i) are not reasonably available within a reasonable 
     period of time;
       ``(ii) fail to meet--

       ``(I) the performance standards set forth in the applicable 
     specifications; or
       ``(II) the reasonable performance standards of the 
     procuring agencies; or

       ``(iii) are available only at an unreasonable price.
       ``(C) Certification.--After the date specified in any 
     applicable guidelines prepared pursuant to paragraph (5), 
     contracting offices shall require that, with respect to 
     biobased products, vendors certify that the biobased products 
     to be used in the performance of the contract will comply 
     with the applicable specifications or other contractual 
     requirements.
       ``(4) Specifications.--Each Federal agency that has the 
     responsibility for drafting or reviewing procurement 
     specifications shall, not later than 1 year after the date of 
     publication of applicable guidelines under paragraph (5), or 
     as otherwise specified in the guidelines, ensure that the 
     specifications require the use of biobased products 
     consistent with this subsection.
       ``(5) Guidelines.--
       ``(A) In general.--The Secretary, after consultation with 
     the Administrator, the Administrator of General Services, and 
     the Secretary of Commerce (acting through the Director of the 
     National Institute of Standards and Technology), shall 
     prepare, and from time to time revise, guidelines for the use 
     of procuring agencies in complying with the requirements of 
     this subsection.
       ``(B) Requirements.--The guidelines under this paragraph 
     shall--
       ``(i) designate those items that are or can be produced 
     with biobased products (including biobased products for which 
     there is only a single product or manufacturer in the 
     category) and the procurement of which by procuring agencies 
     will carry out the objectives of this subsection;
       ``(ii) designate those intermediate ingredients and 
     feedstocks and finished products that contain significant 
     portions of biobased materials or components the procurement 
     of which by procuring agencies will carry out the objectives 
     of this subsection;
       ``(iii) set forth recommended practices with respect to the 
     procurement of biobased products and items containing such 
     materials and with respect to certification by vendors of the 
     percentage of biobased products used;
       ``(iv) provide information as to the availability, relative 
     price, performance, and environmental and public health 
     benefits, of such materials and items; and
       ``(v) automatically designate those items that are composed 
     of materials and items designated pursuant to paragraph (3), 
     if the content of the final product exceeds 50 percent 
     (unless the Secretary determines a different composition 
     percentage).
       ``(C) Information provided.--Information provided pursuant 
     to subparagraph (B)(iv) with respect to a material or item 
     shall be considered to be provided for another item made with 
     the same material or item.
       ``(D) Prohibition.--Guidelines issued under this paragraph 
     may not require a manufacturer or vendor of biobased 
     products, as a condition of the purchase of biobased products 
     from the manufacturer or vendor, to provide to procuring 
     agencies more data than would be required to be provided by 
     other manufacturers or vendors offering products for sale to 
     a procuring agency,

[[Page 29328]]

     other than data confirming the biobased content of a product.
       ``(E) State procurement.--Not later than 180 days after the 
     date of enactment of this section, the Secretary shall offer 
     procurement system models that States may use for the 
     procurement of biobased products by the States.
       ``(6) Administration.--
       ``(A) Office of federal procurement policy.--The Office of 
     Federal Procurement Policy, in cooperation with the 
     Secretary, shall--
       ``(i) coordinate the implementation of this subsection with 
     other policies for Federal procurement;
       ``(ii) annually collect the information required to be 
     reported under subparagraph (B) and make the information 
     publicly available;
       ``(iii) take a leading role in conducting proactive 
     research to inform and promote the adoption of and compliance 
     with procurement requirements for biobased products by 
     Federal agencies; and
       ``(iv) not less than once every 2 years, submit to Congress 
     a report that--

       ``(I) describes the progress made in carrying out this 
     subsection, including agency compliance with paragraph (4); 
     and
       ``(II) contains a summary of the information reported 
     pursuant to subparagraph (B).

       ``(B) Other agencies.--To assist the Office of Federal 
     Procurement Policy in carrying out subparagraph (A)--
       ``(i) each procuring agency shall submit each year to the 
     Office of Federal Procurement Policy, to the maximum extent 
     practicable, information concerning--

       ``(I) actions taken to implement paragraphs (3), (4), and 
     (7);
       ``(II) the results of the annual review and monitoring 
     program established under paragraph (7)(B)(iii);
       ``(III) the number and dollar value of contracts entered 
     into during the year that include the direct procurement of 
     biobased products;
       ``(IV) the number of service and construction (including 
     renovations and modernizations) contracts entered into during 
     the year that include language on the use of biobased 
     products; and
       ``(V) the types and dollar value of biobased products 
     actually used by contractors in carrying out service and 
     construction (including renovations and modernizations) 
     contracts during the previous year; and

       ``(ii) the General Services Administration and the Defense 
     Logistics Agency shall submit each year to the Office of 
     Federal Procurement Policy, to the maximum extent 
     practicable, information concerning the types and dollar 
     value of biobased products purchased by procuring agencies 
     through GSA Advantage!, the Federal Supply Schedule, and the 
     Defense Logistic Agency (including the DoD EMall).
       ``(7) Procurement program.--
       ``(A) In general.--Not later than 1 year after the date of 
     publication of applicable guidelines under paragraph (5), 
     each Federal agency shall develop a procurement program 
     that--
       ``(i) will ensure that items composed of biobased products 
     will be purchased to the maximum extent practicable; and
       ``(ii) is consistent with applicable provisions of Federal 
     procurement law.
       ``(B) Minimum requirements.--Each procurement program 
     required under this paragraph shall, at a minimum, contain--
       ``(i) a biobased products preference program;
       ``(ii) an agency promotion program to promote the 
     preference program adopted under clause (i); and
       ``(iii) annual review and monitoring of the effectiveness 
     of the procurement program of the agency.
       ``(C) Consideration.--
       ``(i) In general.--In developing a preference program, an 
     agency shall--

       ``(I) consider the options described in clauses (ii) and 
     (iii); and
       ``(II) adopt 1 of the options, or a substantially 
     equivalent alternative, for inclusion in the procurement 
     program.

       ``(ii) Case-by-case policy development.--

       ``(I) In general.--Subject to paragraph (3)(B), except as 
     provided in subclause (II), in developing a preference 
     program, an agency shall consider a policy of awarding 
     contracts to the vendor offering an item composed of the 
     highest percentage of biobased products practicable.
       ``(II) Certain contracts allowed.--Subject to paragraph 
     (3)(B), an agency may make an award to a vendor offering 
     items with less than the maximum biobased products content.

       ``(iii) Minimum content standards.--In developing a 
     preference program, an agency shall consider minimum biobased 
     products content specifications that are established in a 
     manner that ensures that the biobased products content 
     required is consistent with this subsection, without 
     violating paragraph (3)(B).
       ``(b) Labeling.--
       ``(1) In general.--The Secretary, in consultation with the 
     Administrator, shall establish a voluntary program under 
     which the Secretary authorizes producers of biobased products 
     to use the label `USDA Certified Biobased Product'.
       ``(2) Eligibility criteria.--
       ``(A) Criteria.--
       ``(i) In general.--Not later than 90 days after the date of 
     the enactment of this section, except as provided in clause 
     (ii), the Secretary, in consultation with the Administrator 
     and representatives from small and large businesses, 
     academia, other Federal agencies, and such other persons as 
     the Secretary considers appropriate, shall issue criteria (as 
     of the date of enactment of this section) for determining 
     which products may qualify to receive the label under 
     paragraph (1).
       ``(ii) Exception.--Clause (i) shall not apply to final 
     criteria that have been issued (as of the date of enactment 
     of this section) by the Secretary.
       ``(B) Requirements.--Criteria issued under subparagraph 
     (A)--
       ``(i) shall encourage the purchase of products with the 
     maximum biobased content;
       ``(ii) shall provide that the Secretary may designate as 
     biobased for the purposes of the voluntary program 
     established under this subsection finished products that 
     contain significant portions of biobased materials or 
     components; and
       ``(iii) to the maximum extent practicable, should be 
     consistent with the guidelines issued under subsection 
     (a)(5).
       ``(3) Use of label.--The Secretary shall ensure that the 
     label referred to in paragraph (1) is used only on products 
     that meet the criteria issued pursuant to paragraph (2).
       ``(4) Recognition.--The Secretary shall--
       ``(A) establish a voluntary program to recognize Federal 
     agencies and private entities that use a substantial amount 
     of biobased products; and
       ``(B) encourage Federal agencies to establish incentives 
     programs to recognize Federal employees or contractors that 
     make exceptional contributions to the expanded use of 
     biobased products.
       ``(c) Limitation.--Nothing in this section (other than 
     subsections (f), (g), and (h)) shall apply to the procurement 
     of motor vehicle fuels, heating oil, or electricity.
       ``(d) Inclusion.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of the Food and Energy Security Act of 2007, the 
     Architect of the Capitol, the Sergeant at Arms of the Senate, 
     and the Chief Administrative Officer of the House of 
     Representatives shall establish procedures that apply the 
     requirements of this section to procurement for the Capitol 
     Complex.
       ``(2) Annual showcase.--Beginning in calendar year 2008, 
     the Secretary shall sponsor or otherwise support, consistent 
     with applicable Federal laws (including regulations), an 
     annual exposition at which entities may display and 
     demonstrate biobased products.
       ``(e) Testing of Biobased Products.--
       ``(1) In general.--The Secretary may establish 1 or more 
     national testing centers for biobased products to verify 
     performance standards, biobased contents, and other product 
     characteristics.
       ``(2) Requirement.--In establishing 1 or more national 
     testing centers under paragraph (1), the Secretary shall give 
     preference to entities that have established capabilities and 
     experience in the testing of biobased materials and products.
       ``(f) Bioenergy and Other Biobased Products Education and 
     Awareness Campaign.--
       ``(1) In general.--The Secretary in consultation with the 
     Secretary of Energy, shall establish a program to make 
     competitive grants to eligible entities to carry out broad-
     based education and public awareness campaigns relating to 
     bioenergy (including biofuels but excluding biodiesel) and 
     other biobased products.
       ``(2) Eligible entities.--An entity eligible to receive a 
     grant described in paragraph (1) is an entity that has 
     demonstrated a knowledge of bioenergy (including biofuels but 
     excluding biodiesel) and other biobased products and is--
       ``(A) a State energy or agricultural office;
       ``(B) a regional, State-based, or tribal energy 
     organization;
       ``(C) a land-grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) 
     or other institution of higher education;
       ``(D) a rural electric cooperative or utility;
       ``(E) a nonprofit organization, including an agricultural 
     trade association, resource conservation and development 
     district, and energy service provider;
       ``(F) a State environmental quality office; or
       ``(G) any other similar entity, other than a Federal agency 
     or for-profit entity, as determined by the Secretary.
       ``(g) Reports.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section and each year thereafter, the 
     Secretary shall submit to Congress a report on the 
     implementation of this section.
       ``(2) Contents.--The report shall include--
       ``(A) a comprehensive management plan that establishes 
     tasks, milestones, and timelines, organizational roles and 
     responsibilities, and funding allocations for fully 
     implementing this section; and
       ``(B) information on the status of implementation of--

[[Page 29329]]

       ``(i) item designations (including designation of 
     intermediate ingredients and feedstocks); and
       ``(ii) the voluntary labeling program established under 
     subsection (b).
       ``(h) Funding.--
       ``(1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use, to the maximum extent 
     practicable, $3,000,000 for each of fiscal years 2008 through 
     2012--
       ``(A) to continue mandatory funding for biobased products 
     testing as required to carry out this section; and
       ``(B) to carry out the bioenergy education and awareness 
     campaign under subsection (f).
       ``(2) Authorization of appropriations.--In addition to any 
     other funds made available to carry out this section, there 
     are authorized to be appropriated to carry out this section 
     such sums as are necessary for each of fiscal years 2008 
     through 2012.
       ``(3) Priority.--At the discretion of the Secretary, the 
     Secretary may give priority to the testing of products for 
     which private sector firms provide cost sharing for the 
     testing.

     ``SEC. 9003. BIODIESEL FUEL EDUCATION.

       ``(a) Purpose.--The purpose of this section is to educate 
     potential users about the proper use and benefits of 
     biodiesel.
       ``(b) Establishment.--The Secretary shall, under such terms 
     and conditions as are appropriate, make grants to eligible 
     entities to educate governmental and private entities that 
     operate vehicle fleets, oil refiners, automotive companies, 
     owners and operators of watercraft fleets, other interested 
     entities (as determined by the Secretary), and the public 
     about the benefits of biodiesel fuel use.
       ``(c) Eligible Entities.--To receive a grant under 
     subsection (b), an entity shall--
       ``(1) be a nonprofit organization or institution of higher 
     education (as defined in section 101 of the Higher Education 
     Act of 1965 (20 U.S.C. 1001));
       ``(2) have demonstrated knowledge of biodiesel fuel 
     production, use, or distribution; and
       ``(3) have demonstrated the ability to conduct educational 
     and technical support programs.
       ``(d) Consultation.--In carrying out this section, the 
     Secretary shall consult with the Secretary of Energy.
       ``(e) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section, to the maximum extent practicable, $2,000,000 for 
     each of fiscal years 2008 through 2012.

     ``SEC. 9004. BIOMASS CROP TRANSITION.

       ``(a) Definitions.--In this section:
       ``(1) Eligible crop.--The term `eligible crop' means a crop 
     of renewable biomass.
       ``(2) Eligible participant.--The term `eligible 
     participant' means an agricultural producer or forest land 
     owner--
       ``(A) that is establishing 1 or more eligible crops on 
     private land to be used in the production of advanced 
     biofuels, other biobased products, heat, or power from a 
     biomass conversion facility;
       ``(B) that has a financial commitment from a biomass 
     conversion facility, including a proposed biomass conversion 
     facility that is economically viable, as determined by the 
     Secretary, to purchase the eligible crops; and
       ``(C) the production operation of which is in such 
     proximity to the biomass conversion facility described in 
     subparagraph (B) as to make delivery of the eligible crops to 
     that location economically practicable.
       ``(b) Biomass Crop Transition Assistance.--
       ``(1) Establishment of program.--The Secretary shall 
     establish a program to provide transitional assistance for 
     the establishment and production of eligible crops to be used 
     in the production of advanced biofuels, other biobased 
     products, heat, or power from a biomass conversion facility.
       ``(2) Exclusion.--An agricultural producer shall not be 
     eligible for assistance under paragraph (1) for the 
     establishment and production of--
       ``(A) any crop that is eligible for benefits under title I 
     of the Food and Energy Security Act of 2007; or
       ``(B) an annual crop.
       ``(3) Contracts.--
       ``(A) In general.--The Secretary shall enter into contracts 
     with eligible participants and entities described in 
     subparagraph (B) to provide transitional assistance payments 
     to eligible participants.
       ``(B) Contracts with member entities.--The Secretary may 
     enter into 1 or more contracts with farmer-owned 
     cooperatives, agricultural trade associations, or other 
     similar entities on behalf of producer members that meet the 
     requirements of, and elect to be treated as, eligible 
     participants if the contract would offer greater efficiency 
     in administration of the program.
       ``(C) Requirements.--Under a contract described in 
     subparagraph (A), an eligible participant shall be required, 
     as determined by the Secretary--
       ``(i) to produce 1 or more eligible crops;
       ``(ii) to develop and actively apply a conservation plan 
     that meets the requirements for highly erodible land 
     conservation and wetlands conservation as established under 
     subtitles B and C of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3811 et seq.); and
       ``(iii) to use such conservation practices as are 
     necessary, where appropriate--

       ``(I) to advance the goals and objectives of State, 
     regional, and national fish and wildlife conservation plans 
     and initiatives; and
       ``(II) to comply with mandatory environmental requirements 
     for a producer under Federal, State, and local law.

       ``(4) Payments.--
       ``(A) First year.--During the first year of the contract, 
     the Secretary shall make a payment to an eligible participant 
     in an amount that covers the cost of establishing 1 or more 
     eligible crops.
       ``(B) Subsequent years.--During any subsequent year of the 
     contract, the Secretary shall make incentive payments to an 
     eligible participant in an amount determined by the Secretary 
     to encourage the eligible participant to produce renewable 
     biomass.
       ``(c) Assistance for Production of Annual Crop of Renewable 
     Biomass.--
       ``(1) In general.--The Secretary may provide assistance to 
     eligible participants to plant an annual crop of renewable 
     biomass for use in a biomass conversion facility in the form 
     of--
       ``(A) technical assistance; and
       ``(B) cost-share assistance for the cost of establishing an 
     annual crop of renewable biomass.
       ``(2) Exclusion.--An agricultural producer shall not be 
     eligible for assistance under paragraph (1) for the 
     establishment of any crop that is eligible for benefits under 
     title I of the Food and Energy Security Act of 2007.
       ``(3) Compliance.--Eligible participants receiving 
     assistance under paragraph (1)(B) shall develop and actively 
     apply a conservation plan that meets the requirements for 
     highly erodible land conservation and wetlands conservation 
     as established under subtitles B and C of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3811 et seq.).
       ``(d) Assistance for Collection, Harvest, Storage, and 
     Transport of Renewable Biomass.--
       ``(1) Establishment of program.--The Secretary shall 
     establish a program to provide assistance to eligible 
     participants for collecting, harvesting, storing, and 
     transporting eligible crops to be used in the production of 
     advanced biofuels, biobased products, heat, or power from a 
     biomass conversion facility.
       ``(2) Payments.--
       ``(A) In general.--An eligible participant shall receive 
     payments under this subsection for each ton of eligible crop 
     delivered to a biomass conversion facility, based on a fixed 
     rate to be established by the Secretary in accordance with 
     subparagraph (B).
       ``(B) Fixed rate.--The Secretary shall establish a fixed 
     payment rate for purposes of subparagraph (A) to reflect--
       ``(i) the estimated cost of collecting, harvesting, 
     storing, and transporting the applicable eligible crop; and
       ``(ii) such other factors as the Secretary determines to be 
     appropriate.
       ``(e) Best Practices.--
       ``(1) Recordkeeping.--Each eligible participant, and each 
     biomass conversion facility contracting with the eligible 
     participant, shall maintain and make available to the 
     Secretary, at such times as the Secretary may request, 
     appropriate records of methods used for activities for which 
     payment is received under this section.
       ``(2) Information sharing.--From the records maintained 
     under subparagraph (A), the Secretary shall maintain, and 
     make available to the public, information regarding--
       ``(A) the production potential (including evaluation of the 
     environmental benefits) of a variety of eligible crops; and
       ``(B) best practices for producing, collecting, harvesting, 
     storing, and transporting eligible crops to be used in the 
     production of advanced biofuels.
       ``(f) Funding.--
       ``(1) Biomass crop transition assistance.--Of the funds of 
     the Commodity Credit Corporation, the Secretary shall use to 
     carry out subsections (b) and (c) $130,000,000 for fiscal 
     year 2008, to remain available until expended.
       ``(2) Assistance for collection, harvest, storage, and 
     transport of renewable biomass.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall make 
     available to carry out subsection (d) $10,000,000 for each of 
     fiscal years 2009 through 2011, to remain available until 
     expended.

     ``SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.

       ``(a) Purpose.--The purpose of this section is to assist in 
     the development of new or emerging technologies for the use 
     of renewable biomass or other sources of renewable energy--
       ``(1) to develop advanced biofuels;
       ``(2) to increase the energy independence of the United 
     States by promoting the replacement of energy generated from 
     fossil fuels with energy generated from a renewable energy 
     source;
       ``(3) to promote resource conservation, public health, and 
     the environment;
       ``(4) to diversify markets for raw agricultural and 
     forestry products, and agriculture waste material; and
       ``(5) to create jobs and enhance the economic development 
     of the rural economy.

[[Page 29330]]

       ``(b) Definition of Repower.--In this section, the term 
     `repower' means to substitute the production of heat or power 
     from a fossil fuel source with heat or power from sources of 
     renewable energy.
       ``(c) Assistance.--
       ``(1) In general.--The Secretary shall make available to 
     eligible entities described in subsection (d)--
       ``(A) grants to assist in paying the costs of--
       ``(i) development and construction of pilot- and 
     demonstration-scale biorefineries intended to demonstrate the 
     commercial viability of 1 or more processes for converting 
     renewable biomass to advanced biofuels;
       ``(ii) repowering a biomass conversion facility, power 
     plant, or manufacturing facility, in whole or in part; or
       ``(iii) conducting a study to determine the feasibility of 
     repowering a biomass conversion facility, power plant, or 
     manufacturing facility, in whole or in part; and
       ``(B) guarantees for loans made to fund--
       ``(i) the development and construction of commercial-scale 
     biorefineries; or
       ``(ii) the repowering of a biomass conversion facility, 
     power plant, or manufacturing facility, in whole or in part.
       ``(2) Preference.--In selecting projects to receive grants 
     and loan guarantees under this section, the Secretary shall 
     give preference to projects that receive or will receive 
     financial support from the State in which the project is 
     carried out.
       ``(d) Eligible Entities.--An eligible entity under this 
     section is--
       ``(1) an individual;
       ``(2) a corporation;
       ``(3) a farm cooperative;
       ``(4) a rural electric cooperative or public power entity;
       ``(5) an association of agricultural producers;
       ``(6) a State or local energy agency or office;
       ``(7) an Indian tribe;
       ``(8) a consortium comprised of any individuals or entities 
     described in any of paragraphs (1) through (7); or
       ``(9) any other similar entity, as determined by the 
     Secretary.
       ``(e) Grants.--
       ``(1) In general.--The Secretary shall award grants under 
     subsection (c)(1)(A) on a competitive basis.
       ``(2) Selection criteria.--
       ``(A) Grants for development and construction of pilot and 
     demonstration scale biorefineries.--
       ``(i) In general.--In awarding grants for development and 
     construction of pilot and demonstration scale biorefineries 
     under subsection (c)(1)(A)(i), the Secretary shall select 
     projects based on the likelihood that the projects will 
     demonstrate the commercial viability of a new or emerging 
     process for converting renewable biomass into advanced 
     biofuels.
       ``(ii) Factors.--The factors to be considered under clause 
     (i) may include--

       ``(I) the potential market for 1 or more products;
       ``(II) the level of financial participation by the 
     applicants;
       ``(III) the availability of adequate funding from other 
     sources;
       ``(IV) the participation of producer associations and 
     cooperatives;
       ``(V) the beneficial impact on resource conservation, 
     public health, and the environment;
       ``(VI) the timeframe in which the project will be 
     operational;
       ``(VII) the potential for rural economic development;
       ``(VIII) the participation of multiple eligible entities; 
     and
       ``(IX) the potential for developing advanced industrial 
     biotechnology approaches.

       ``(B) Grants for repowering.--In selecting projects to 
     receive grants for repowering under clauses (ii) and (iii) of 
     subsection (c)(1)(A), the Secretary shall consider--
       ``(i) the change in energy efficiency that would result 
     from the proposed repowering of the eligible entity;
       ``(ii) the reduction in fossil fuel use that would result 
     from the proposed repowering; and
       ``(iii) the volume of renewable biomass located in such 
     proximity to the eligible entity as to make local sourcing of 
     feedstock economically practicable.
       ``(3) Cost sharing.--
       ``(A) Limits.--
       ``(i) Development and construction of pilot and 
     demonstration scale biorefineries.--The amount of a grant 
     awarded for development and construction of a biorefinery 
     under subsection (c)(1)(A)(i) shall not exceed 50 percent of 
     the cost of the project.
       ``(ii) Repowering.--The amount of a grant awarded for 
     repowering under subsection (c)(1)(A)(ii) shall not exceed 20 
     percent of the cost of the project.
       ``(iii) Feasibility study for repowering.--The amount of a 
     grant awarded for a feasibility study for repowering under 
     subsection (c)(1)(A)(iii) shall not exceed an amount equal to 
     the lesser of--

       ``(I) an amount equal to 50 percent of the total cost of 
     conducting the feasibility study; and
       ``(II) $150,000.

       ``(B) Form of grantee share.--
       ``(i) In general.--The grantee share of the cost of a 
     project may be made in the form of cash or the provision of 
     services, material, or other in-kind contributions.
       ``(ii) Limitation.--The amount of the grantee share of the 
     cost of a project that is made in the form of the provision 
     of services, material, or other in-kind contributions shall 
     not exceed 15 percent of the amount of the grantee share 
     determined under subparagraph (A).
       ``(f) Loan Guarantees.--
       ``(1) Conditions.--As a condition of making a loan 
     guarantee under subsection (c)(1)(B), the Secretary shall 
     require--
       ``(A) demonstration of binding commitments to cover, from 
     sources other than Federal funds, at least 20 percent of the 
     total cost of the project described in the application;
       ``(B) in the case of a new or emerging technology, 
     demonstration that the project design has been validated 
     through a technical review and subsequent operation of a 
     pilot or demonstration scale facility that can be scaled up 
     to commercial size; and
       ``(C) demonstration that the applicant provided 
     opportunities to local investors (as determined by the 
     Secretary) to participate in the financing or ownership of 
     the biorefinery.
       ``(2) Local ownership.--The Secretary shall give preference 
     under subsection (c)(1)(B) to applications for projects with 
     significant local ownership.
       ``(3) Approval.--Not later than 90 days after the Secretary 
     receives an application for a loan guarantee under subsection 
     (c)(1)(B), the Secretary shall approve or disapprove the 
     application.
       ``(4) Limitations.--
       ``(A) Maximum amount of loan guaranteed.--
       ``(i) Commercial-scale biorefineries.--Subject to clause 
     (iii), the principal amount of a loan guaranteed under 
     subsection (c)(1)(B)(i) may not exceed $250,000,000.
       ``(ii) Repowering.--Subject to clause (iii), the principal 
     amount of a loan guaranteed under subsection (c)(1)(B)(ii) 
     may not exceed $70,000,000.
       ``(iii) Relationship to other federal funding.--The amount 
     of a loan guaranteed under subsection (c)(1)(B) shall be 
     reduced by the amount of other Federal funding that the 
     entity receives for the same project.
       ``(B) Maximum percentage of loan guaranteed.--A loan 
     guaranteed under subsection (c)(1)(B) shall be in an amount 
     not to exceed 80 percent of the project costs, as determined 
     by the Secretary.
       ``(C) Authority to guarantee entire amount of the loan.--
     The Secretary may guarantee up to 100 percent of the 
     principal and interest due on a loan guaranteed under 
     subsection (c)(1)(B).
       ``(g) Consultation.--In carrying out this section, the 
     Secretary shall consult with the Secretary of Energy.
       ``(h) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use for the cost of grants 
     and loan guarantees to carry out this section $300,000,000 
     for fiscal year 2008, to remain available until expended.

     ``SEC. 9006. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

       ``(a) Definition of Eligible Producer.--In this section, 
     the term `eligible producer' means a producer of advanced 
     biofuels.
       ``(b) Payments.--The Secretary shall make payments to 
     eligible producers to encourage increased purchases of 
     renewable biomass for the purpose of expanding production of, 
     and supporting new production capacity for, advanced 
     biofuels.
       ``(c) Contracts.--To receive a payment, an eligible 
     producer shall--
       ``(1) enter into a contract with the Secretary to increase 
     production of advanced biofuels for 1 or more fiscal years; 
     and
       ``(2) submit to the Secretary such records as the Secretary 
     may require as evidence of increased purchase and use of 
     renewable biomass for the production of advanced biofuels.
       ``(d) Basis for Payments.--The Secretary shall make 
     payments under this section to eligible producers based on--
       ``(1) the level of production by the eligible producer of 
     an advanced biofuel;
       ``(2) the price of each renewable biomass feedstock used 
     for production of the advanced biofuel;
       ``(3) the net nonrenewable energy content of the advanced 
     biofuel, if sufficient data is available, as determined by 
     the Secretary; and
       ``(4) other appropriate factors, as determined by the 
     Secretary.
       ``(e) Overpayments.--If the total amount of payments that 
     an eligible producer receives for a fiscal year under this 
     section exceeds the amount that the eligible producer should 
     have received, the eligible producer shall repay the amount 
     of the overpayment to the Secretary, with interest (as 
     determined by the Secretary).
       ``(f) Limitations.--
       ``(1) Equitable distribution.--The Secretary may limit the 
     amount of payments that may be received by a single eligible 
     producer under this section in order to distribute the total 
     amount of funding available in an equitable manner.
       ``(2) Ineligibility.--An eligible producer that claims a 
     credit allowed under section

[[Page 29331]]

     40(a)(3), 40(a)(4), or 40A(a)(3) of the Internal Revenue Code 
     of 1986 shall not be eligible to receive payments under 
     subsection (d).
       ``(3) Refining capacity.--An eligible producer may not use 
     any funds received under this section for an advanced biofuel 
     production facility or other fuel refinery the total refining 
     capacity of which is more than 150,000,000 gallons per year.
       ``(g) Other Requirements.--To receive a payment under this 
     section, an eligible producer shall meet any other 
     requirements of Federal and State law (including regulations) 
     applicable to the production of advanced biofuels.
       ``(h) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section $245,000,000 for the period of fiscal years 2008 
     through 2012, to remain available until expended.

     ``SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

       ``(a) Establishment.--The Secretary, in consultation with 
     the Secretary of Energy, shall establish a Rural Energy for 
     America Program to promote energy efficiency and renewable 
     energy development for agricultural producers, cooperatives, 
     rural small businesses, and other similar entities through--
       ``(1) grants for energy audits and renewable energy 
     development assistance;
       ``(2) financial assistance for energy efficiency 
     improvements and renewable energy systems; and
       ``(3) financial assistance for facilities to convert animal 
     manure to energy.
       ``(b) Energy Audits and Renewable Energy Development 
     Assistance.--
       ``(1) In general.--The Secretary shall make competitive 
     grants to eligible entities to provide assistance to 
     agricultural producers and rural small businesses--
       ``(A) to become more energy efficient; and
       ``(B) to use renewable energy technology and resources.
       ``(2) Eligible entities.--An eligible entity under this 
     subsection is--
       ``(A) a State agency;
       ``(B) a regional, State-based, or tribal energy 
     organization;
       ``(C) a land-grant college or university or other 
     institution of higher education;
       ``(D) a rural electric cooperative or public power entity;
       ``(E) a nonprofit organization; and
       ``(F) any other similar entity, as determined by the 
     Secretary.
       ``(3) Merit review.--
       ``(A) Merit review process.--The Secretary shall establish 
     a merit review process to review applications for grants 
     under paragraph (1) that uses the expertise of other Federal 
     agencies, industry, and nongovernmental organizations.
       ``(B) Selection criteria.--In reviewing applications of 
     eligible entities to receive grants under paragraph (1), the 
     Secretary shall consider--
       ``(i) the ability and expertise of the eligible entity in 
     providing professional energy audits and renewable energy 
     assessments;
       ``(ii) the geographic scope of the program proposed by the 
     eligible entity in relation to the identified need;
       ``(iii) the number of agricultural producers and rural 
     small businesses to be assisted by the program;
       ``(iv) the potential for energy savings and environmental 
     and public health benefits resulting from the program; and
       ``(v) the plan of the eligible entity for providing 
     information to agricultural producers and rural small 
     businesses on the benefits of energy efficiency and renewable 
     energy development.
       ``(4) Use of grant funds.--
       ``(A) Required uses.--A recipient of a grant under 
     paragraph (1) shall use the grant funds to conduct and 
     promote energy audits for agricultural producers and rural 
     small businesses to provide recommendations on how to improve 
     energy efficiency and use renewable energy technology and 
     resources.
       ``(B) Permitted uses.--In addition to the uses described in 
     subparagraph (A), a recipient of a grant may use the grant 
     funds to make agricultural producers and rural small 
     businesses aware of--
       ``(i) financial assistance under subsection (c); and
       ``(ii) other Federal, State, and local financial assistance 
     programs for which the agricultural producers and rural small 
     businesses may be eligible.
       ``(5) Cost sharing.--A recipient of a grant under paragraph 
     (1) that conducts an energy audit for an agricultural 
     producer or rural small business under paragraph (4)(A) shall 
     require that, as a condition of the energy audit, the 
     agricultural producer or rural small business pay at least 25 
     percent of the cost of the energy audit, which shall be 
     retained by the eligible entity for the cost of the energy 
     audit.
       ``(c) Financial Assistance for Energy Efficiency 
     Improvements and Renewable Energy Systems.--
       ``(1) In general.--In addition to any similar authority, 
     the Secretary shall provide loan guarantees, grants, and 
     production-based incentives to agricultural producers and 
     rural small businesses--
       ``(A) to purchase renewable energy systems, including 
     systems that may be used to produce and sell electricity; and
       ``(B) to make energy efficiency improvements.
       ``(2) Award considerations.--In determining the amount of a 
     grant, loan guarantee, or production-based incentive provided 
     under this section, the Secretary shall take into 
     consideration, as applicable--
       ``(A) the type of renewable energy system to be purchased;
       ``(B) the estimated quantity of energy to be generated by 
     the renewable energy system;
       ``(C) the expected environmental benefits of the renewable 
     energy system;
       ``(D) the quantity of energy savings expected to be derived 
     from the activity, as demonstrated by an energy audit 
     comparable to an energy audit under subsection (b);
       ``(E) the estimated period of time for the energy savings 
     generated by the activity to equal the cost of the activity;
       ``(F) the expected energy efficiency of the renewable 
     energy system; and
       ``(G) other appropriate factors.
       ``(3) Feasibility studies.--
       ``(A) In general.--The Secretary may provide assistance in 
     the form of grants to an agricultural producer or rural small 
     business to conduct a feasibility study for a project for 
     which assistance may be provided under this subsection.
       ``(B) Limitation.--The Secretary shall use not more than 10 
     percent of the funds made available to carry out this 
     subsection to provide assistance described in subparagraph 
     (A).
       ``(C) Avoidance of duplicative assistance.--An entity shall 
     be ineligible to receive assistance to carry out a 
     feasibility study for a project under this paragraph if the 
     entity has received Federal or State assistance for a 
     feasibility study for the project.
       ``(4) Limits.--
       ``(A) Grants.--The amount of a grant under this subsection 
     shall not exceed 25 percent of the cost of the activity 
     carried out using funds from the grant.
       ``(B) Loan guarantees.--
       ``(i) Maximum amount.--The amount of a loan guaranteed 
     under this subsection shall not exceed $25,000,000.
       ``(ii) Maximum percentage.--A loan guaranteed under this 
     subsection shall not exceed 75 percent of the cost of the 
     activity carried out using funds from the loan.
       ``(5) Production-based incentive payments in lieu of 
     grants.--
       ``(A) In general.--In addition to the authority under 
     subsection (b), to encourage the production of electricity 
     from renewable energy systems, the Secretary, on receipt of a 
     request of an eligible applicant under this section, shall 
     make production-based incentive payments to the applicant in 
     lieu of a grant.
       ``(B) Contingency.--A payment under subparagraph (A) shall 
     be contingent on documented energy production and sales by 
     the renewable energy system of the eligible applicant to a 
     third party.
       ``(C) Limitation.--The total net present value of a 
     production-based incentive payment under this paragraph shall 
     not exceed the lesser of--
       ``(i) an amount equal to 25 percent of the eligible project 
     costs, as determined by the Secretary; and
       ``(ii) such other limit as the Secretary may establish, by 
     rule or guidance.
       ``(d) Financial Assistance for Facilities to Convert Animal 
     Manure to Energy.--
       ``(1) Definition of animal manure.--In this subsection, the 
     term `animal manure' means agricultural livestock excrement, 
     including litter, wood shavings, straw, rice hulls, bedding 
     material, and other materials incidentally collected with the 
     manure.
       ``(2) Grants and loan guarantees.--The Secretary shall make 
     grants and loan guarantees to eligible entities on a 
     competitive basis for the installation, operation, and 
     evaluation of facilities described in paragraph (4).
       ``(3) Eligible entities.--To be eligible to receive a grant 
     or loan guarantee under this subsection, an entity shall be--
       ``(A) an agricultural producer;
       ``(B) a rural small business;
       ``(C) a rural cooperative; or
       ``(D) any other similar entity, as determined by the 
     Secretary.
       ``(4) Eligible facilities.--
       ``(A) In general.--Subject to subparagraphs (B) through 
     (E), an eligible entity may receive a grant or loan guarantee 
     under this subsection for the installation, first-year 
     operation, and evaluation of an on-farm or community facility 
     (such as a digester or power generator using manure for fuel) 
     the primary function of which is to convert animal manure 
     into a useful form of energy (including gaseous or liquid 
     fuel or electricity).
       ``(B) Subsystems included.--Funds from a grant and loan 
     guarantee under subparagraph (A) may be used for systems that 
     support an on-farm or community facility described in that 
     subparagraph, which may include feedstock gathering systems 
     and gas piping systems.
       ``(C) Conversion of renewable biomass.--An eligible entity 
     may use a grant or loan guarantee provided under this 
     subsection to convert renewable biomass other than animal 
     manure (such as waste materials from food processing 
     facilities and other green

[[Page 29332]]

     wastes) into energy at a facility if the majority of 
     materials converted into energy at the facility is animal 
     manure.
       ``(D) Development and demonstration of new technologies.--
     An eligible entity may use a grant or loan guarantee provided 
     under this subsection for the installation, demonstration, 
     and first 2 years of operation of an on-farm or community 
     facility that uses manure-to-energy technologies--
       ``(i) that are not in commercial use, as determined by the 
     Secretary; and
       ``(ii) for which sufficient research has been conducted for 
     the Secretary to determine that the technology is 
     commercially viable.
       ``(5) Selection of eligible entities.--In selecting 
     applications for grants and loan guarantees under this 
     subsection, the Secretary shall consider--
       ``(A) the quality of energy produced; and
       ``(B) the projected net energy conversion efficiency, which 
     shall be equal to the quotient obtained by dividing--
       ``(i) the energy output of the eligible facility; by
       ``(ii) the sum of--

       ``(I) the energy content of animal manure at the point of 
     collection; and
       ``(II) the energy consumed in facility operations, 
     including feedstock transportation;

       ``(C) environmental issues, including potential positive 
     and negative impacts on water quality, air quality, odor 
     emissions, pathogens, and soil quality resulting from--
       ``(i) the use and conversion of animal manure into energy;
       ``(ii) the installation and operation of the facility; and
       ``(iii) the disposal of any waste products (including 
     effluent) from the facility;
       ``(D) the net impact of the facility and any waste from the 
     facility on greenhouse gas emissions, based on the estimated 
     emissions from manure storage systems in use before the 
     installation of the manure-to-energy facility;
       ``(E) diversity factors, including diversity of--
       ``(i) sizes of projects supported; and
       ``(ii) geographic locations; and
       ``(F) the proposed project costs and levels of grants or 
     loan guarantees requested.
       ``(6) Amount.--
       ``(A) Grants.--
       ``(i) Smaller projects.--In the case of a project with a 
     total eligible cost (as described in paragraph (4)) of not 
     more than $500,000, the amount of a grant made under this 
     subsection shall not exceed 50 percent of the total eligible 
     cost.
       ``(ii) Larger projects.--In the case of a project with a 
     total eligible cost (as described in paragraph (4)) of more 
     than $500,000, the amount of a grant made under this 
     subsection shall not exceed the greater of--

       ``(I) $250,000; or
       ``(II) 25 percent of the total eligible cost.

       ``(iii) Maximum.--In no case shall the amount of a grant 
     made under this section exceed $2,000,000.
       ``(B) Loan guarantees.--The principal amount and interest 
     of a loan guaranteed under this subsection may not exceed the 
     lesser of--
       ``(i) 80 percent of the difference between--

       ``(I) the total cost to install and operate the eligible 
     facility for the first year, as determined by the Secretary; 
     and
       ``(II) the amount of any Federal, State, and local funds 
     received to support the eligible facility; and

       ``(ii) $25,000,000.
       ``(7) Prohibition.--A grant or loan guarantee may not be 
     provided for a project under this subsection that also 
     receives assistance under subsection (b) or (c).
       ``(e) Role of State Rural Development Director.--
       ``(1) Outreach and availability of information.--
       ``(A) Outreach.--A State rural development director, acting 
     through local rural development offices, shall provide 
     outreach regarding the availability of financial assistance 
     under this section.
       ``(B) Availability of information.--A State rural 
     development director shall make available information 
     relating to the availability of financial assistance under 
     this section at all local rural development, Farm Service 
     Agency, and Natural Resources Conservation Service offices.
       ``(2) Application review.--Applications for assistance 
     under this section shall be reviewed by the appropriate State 
     rural development director.
       ``(f) Small Projects.--
       ``(1) Application and review process.--The Secretary shall 
     develop a streamlined application and expedited review 
     process for project applicants seeking less than $20,000 
     under this section.
       ``(2) Percentage of funds.--Not less than 20 percent of the 
     funds made available under subsection (k)(1) shall be made 
     available to make grants under this section in an amount of 
     less than $20,000.
       ``(g) Preference.--In selecting projects to receive grants 
     under this section, the Secretary shall give preference to 
     projects that receive or will receive financial support from 
     the State in which the project is carried out.
       ``(h) Rural Energy Star.--The Secretary, in coordination 
     with the Administrator and the Secretary of Energy, shall 
     extend the Energy Star program established by section 324A of 
     the Energy Policy and Conservation Act (42 U.S.C. 6294a) to 
     include a Rural Energy Star component to promote the 
     development and use of energy-efficient equipment and 
     facilities in the agricultural sector.
       ``(i) Reports.--Not later than 4 years after the date of 
     enactment of the Food and Energy Security Act of 2007, the 
     Secretary shall submit to Congress a report on the 
     implementation of this section, including the outcomes 
     achieved by projects funded under this section.
       ``(j) Funding.--
       ``(1) Commodity credit corporation.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall make 
     available $230,000,000 to carry out subsections (c) and (d) 
     for fiscal year 2008, to remain available until expended, of 
     which not less than 15 percent shall be used to carry out 
     subsection (d).
       ``(2) Authorization of appropriations.--In addition to any 
     other funds made available to carry out this section, there 
     are authorized to be appropriated such sums as are necessary 
     to carry out this section for each of fiscal years 2008 
     through 2012.

     ``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

       ``(a) Definitions.--In this section:
       ``(1) Biobased product.--The term `biobased product' 
     means--
       ``(A) an industrial product (including chemicals, 
     materials, and polymers) produced from biomass; and
       ``(B) a commercial or industrial product (including animal 
     feed and electric power) derived in connection with the 
     conversion of biomass to fuel.
       ``(2) Demonstration.--The term `demonstration' means 
     demonstration of technology in a pilot plant or semi-works 
     scale facility.
       ``(3) Initiative.--The term `Initiative' means the Biomass 
     Research and Development Initiative established under 
     subsection (e).
       ``(4) National laboratory.--The term `National Laboratory' 
     has the meaning given that term in section 2 of the Energy 
     Policy Act of 2005 (42 U.S.C. 15801).
       ``(5) Point of contact.--The term `point of contact' means 
     a point of contact designated under this section.
       ``(b) Cooperation and Coordination in Biomass Research and 
     Development.--
       ``(1) In general.--The Secretary of Agriculture and the 
     Secretary of Energy shall cooperate with respect to, and 
     coordinate, policies and procedures that promote research and 
     development leading to the production of biofuels and 
     biobased products.
       ``(2) Points of contact.--
       ``(A) In general.--To coordinate research and development 
     programs and activities relating to biofuels and biobased 
     products that are carried out by their respective 
     departments--
       ``(i) the Secretary of Agriculture shall designate, as the 
     point of contact for the Department of Agriculture, an 
     officer of the Department of Agriculture appointed by the 
     President to a position in the Department before the date of 
     the designation, by and with the advice and consent of the 
     Senate; and
       ``(ii) the Secretary of Energy shall designate, as the 
     point of contact for the Department of Energy, an officer of 
     the Department of Energy appointed by the President to a 
     position in the Department before the date of the 
     designation, by and with the advice and consent of the 
     Senate.
       ``(B) Duties.--The points of contact shall jointly--
       ``(i) assist in arranging interlaboratory and site-specific 
     supplemental agreements for research and development projects 
     relating to biofuels and biobased products;
       ``(ii) serve as cochairpersons of the Board;
       ``(iii) administer the Initiative; and
       ``(iv) respond in writing to each recommendation of the 
     Advisory Committee made under subsection (d).
       ``(c) Biomass Research and Development Board.--
       ``(1) Establishment.--There is established the Biomass 
     Research and Development Board, which shall supersede the 
     Interagency Council on Biobased Products and Bioenergy 
     established by Executive Order No. 13134 (7 U.S.C. 8101 
     note), to coordinate programs within and among departments 
     and agencies of the Federal Government for the purpose of 
     promoting the use of biofuels and biobased products by--
       ``(A) maximizing the benefits deriving from Federal grants 
     and assistance; and
       ``(B) bringing coherence to Federal strategic planning.
       ``(2) Membership.--The Board shall consist of--
       ``(A) the point of contact of the Department of Energy 
     designated under subsection (b)(2)(A)(ii), who shall serve as 
     cochairperson of the Board;
       ``(B) the point of contact of the Department of Agriculture 
     designated under subsection (b)(2)(A)(i), who shall serve as 
     cochairperson of the Board;
       ``(C) a senior officer of each of the Department of the 
     Interior, the Environmental Protection Agency, the National 
     Science Foundation, and the Office of Science and Technology 
     Policy, each of whom shall--

[[Page 29333]]

       ``(i) be appointed by the head of the respective agency; 
     and
       ``(ii) have a rank that is equivalent to the rank of the 
     points of contact; and
       ``(D) at the option of the Secretary of Agriculture and the 
     Secretary of Energy, other members appointed by the 
     Secretaries (after consultation with the members described in 
     subparagraphs (A) through (C)).
       ``(3) Duties.--The Board shall--
       ``(A) coordinate research and development activities 
     relating to biofuels and biobased products--
       ``(i) between the Department of Agriculture and the 
     Department of Energy; and
       ``(ii) with other departments and agencies of the Federal 
     Government;
       ``(B) provide recommendations to the points of contact 
     concerning administration of this title;
       ``(C) ensure that--
       ``(i) solicitations are open and competitive with awards 
     made annually; and
       ``(ii) objectives and evaluation criteria of the 
     solicitations are clearly stated and minimally prescriptive, 
     with no areas of special interest; and
       ``(D) ensure that the panel of scientific and technical 
     peers assembled under subsection (e) to review proposals is 
     composed predominantly of independent experts selected from 
     outside the Departments of Agriculture and Energy.
       ``(4) Funding.--Each agency represented on the Board is 
     encouraged to provide funds for any purpose under this 
     section.
       ``(5) Meetings.--The Board shall meet at least quarterly to 
     enable the Board to carry out the duties of the Board under 
     paragraph (3).
       ``(d) Biomass Research and Development Technical Advisory 
     Committee.--
       ``(1) Establishment.--There is established the Biomass 
     Research and Development Technical Advisory Committee, which 
     shall supersede the Advisory Committee on Biobased Products 
     and Bioenergy established by Executive Order No. 13134 (7 
     U.S.C. 8101 note)--
       ``(A) to advise the Secretary of Energy, the Secretary of 
     Agriculture, and the points of contact concerning--
       ``(i) the distribution of funding;
       ``(ii) the technical focus and direction of requests for 
     proposals issued under the Initiative; and
       ``(iii) procedures for reviewing and evaluating the 
     proposals;
       ``(B) to facilitate consultations and partnerships among 
     Federal and State agencies, agricultural producers, industry, 
     consumers, the research community, and other interested 
     groups to carry out program activities relating to the 
     Initiative; and
       ``(C) to evaluate and perform strategic planning on program 
     activities relating to the Initiative.
       ``(2) Membership.--
       ``(A) In general.--The Advisory Committee shall consist 
     of--
       ``(i) an individual affiliated with the biofuels industry;
       ``(ii) an individual affiliated with the biobased 
     industrial and commercial products industry;
       ``(iii) an individual affiliated with an institution of 
     higher education who has expertise in biofuels and biobased 
     products;
       ``(iv) 2 prominent engineers or scientists from government 
     or academia who have expertise in biofuels and biobased 
     products;
       ``(v) an individual affiliated with a commodity trade 
     association;
       ``(vi) 2 individuals affiliated with an environmental or 
     conservation organization;
       ``(vii) an individual associated with State government who 
     has expertise in biofuels and biobased products;
       ``(viii) an individual with expertise in energy and 
     environmental analysis;
       ``(ix) an individual with expertise in the economics of 
     biofuels and biobased products;
       ``(x) an individual with expertise in agricultural 
     economics;
       ``(xi) an individual with expertise in plant biology and 
     biomass feedstock development; and
       ``(xii) at the option of the points of contact, other 
     members.
       ``(B) Appointment.--The members of the Advisory Committee 
     shall be appointed by the points of contact.
       ``(3) Duties.--The Advisory Committee shall--
       ``(A) advise the points of contact with respect to the 
     Initiative; and
       ``(B) evaluate whether, and make recommendations in writing 
     to the Board to ensure that--
       ``(i) funds authorized for the Initiative are distributed 
     and used in a manner that is consistent with the objectives, 
     purposes, and considerations of the Initiative;
       ``(ii) solicitations are open and competitive with awards 
     made annually and that objectives and evaluation criteria of 
     the solicitations are clearly stated and minimally 
     prescriptive, with no areas of special interest;
       ``(iii) the points of contact are funding proposals under 
     this title that are selected on the basis of merit, as 
     determined by an independent panel of scientific and 
     technical peers predominantly from outside the Departments of 
     Agriculture and Energy; and
       ``(iv) activities under this section are carried out in 
     accordance with this section.
       ``(4) Coordination.--To avoid duplication of effort, the 
     Advisory Committee shall coordinate the activities of the 
     Advisory Committee with activities of other Federal advisory 
     committees working in related areas.
       ``(5) Meetings.--The Advisory Committee shall meet at least 
     quarterly to enable the Advisory Committee to carry out the 
     duties of the Advisory Committee.
       ``(6) Terms.--Members of the Advisory Committee shall be 
     appointed for a term of 3 years.
       ``(e) Biomass Research and Development Initiative.--
       ``(1) In general.--The Secretary of Agriculture and the 
     Secretary of Energy, acting through their respective points 
     of contact and in consultation with the Board, shall 
     establish and carry out a Biomass Research and Development 
     Initiative under which competitively awarded grants, 
     contracts, and financial assistance are provided to, or 
     entered into with, eligible entities to carry out research 
     on, and development and demonstration of, biofuels and 
     biobased products, and the methods, practices, and 
     technologies, for the production of the fuels and product.
       ``(2) Objectives.--The objectives of the Initiative are to 
     develop--
       ``(A) technologies and processes necessary for abundant 
     commercial production of biofuels at prices competitive with 
     fossil fuels;
       ``(B) high-value biobased products--
       ``(i) to enhance the economic viability of biofuels and 
     bioenergy;
       ``(ii) as substitutes for petroleum-based feedstocks and 
     products; and
       ``(iii) to enhance the value of coproducts produced using 
     the technologies and processes; and
       ``(C) a diversity of sustainable domestic sources of 
     renewable biomass for conversion to biofuels, bioenergy, and 
     biobased products.
       ``(3) Purposes.--The purposes of the Initiative are--
       ``(A) to increase the energy security of the United States;
       ``(B) to create jobs and enhance the economic development 
     of the rural economy;
       ``(C) to enhance the environment and public health; and
       ``(D) to diversify markets for raw agricultural and 
     forestry products.
       ``(4) Technical areas.--To advance the objectives and 
     purposes of the Initiative, the Secretary of Agriculture and 
     the Secretary of Energy, in consultation with the 
     Administrator of the Environmental Protection Agency and 
     heads of other appropriate departments and agencies (referred 
     to in this subsection as the `Secretaries'), shall direct 
     research, development, and demonstration toward--
       ``(A) feedstocks and feedstock systems relevant to 
     production of raw materials for conversion to biofuels and 
     biobased products, including--
       ``(i) development of advanced and dedicated crops with 
     desired features, including enhanced productivity, broader 
     site range, low requirements for chemical inputs, and 
     enhanced processing;
       ``(ii) advanced crop production methods to achieve the 
     features described in clause (i) and suitable assay 
     techniques for those features;
       ``(iii) feedstock harvest, handling, transport, and 
     storage;
       ``(iv) strategies for integrating feedstock production into 
     existing managed land; and
       ``(v) improving the value and quality of coproducts, 
     including material used for animal feeding;
       ``(B) development of cost-effective technologies for the 
     use of cellulosic biomass in the production of biofuels and 
     biobased products, including--
       ``(i) pretreatment in combination with enzymatic or 
     microbial hydrolysis;
       ``(ii) thermochemical approaches, including gasification 
     and pyrolysis; and
       ``(iii) self-processing crops that express enzymes capable 
     of degrading cellulosic biomass;
       ``(C) product diversification through technologies relevant 
     to production of a range of biobased products (including 
     chemicals, animal feeds, and cogenerated power) that 
     eventually can increase the feasibility of fuel production in 
     a biorefinery, including--
       ``(i) catalytic processing, including thermochemical fuel 
     production;
       ``(ii) metabolic engineering, enzyme engineering, and 
     fermentation systems for biological production of desired 
     products, coproducts, or cogeneration of power;
       ``(iii) product recovery;
       ``(iv) power production technologies;
       ``(v) integration into existing renewable biomass 
     processing facilities, including starch ethanol plants, sugar 
     processing or refining plants, paper mills, and power plants;
       ``(vi) enhancement of products and coproducts, including 
     dried distillers grains; and
       ``(vii) technologies that allow for cost-effective harvest, 
     handling, transport, and storage; and
       ``(D) analysis that provides strategic guidance for the 
     application of renewable biomass technologies in accordance 
     with realization of improved sustainability and environmental 
     quality, cost effectiveness, security, and rural economic 
     development, usually featuring system-wide approaches, 
     including the harvest, handling, transport, and storage of 
     renewable biomass.

[[Page 29334]]

       ``(5) Additional considerations.--Within the technical 
     areas described in paragraph (4), and in addition to 
     advancing the purposes described in paragraph (3) and the 
     objectives described in paragraph (2), the Secretaries shall 
     support research and development--
       ``(A) to create continuously expanding opportunities for 
     participants in existing biofuels production by seeking 
     synergies and continuity with current technologies and 
     practices, such as improvements in dried distillers grains 
     and other biofuel production coproducts for use as bridge 
     feedstocks;
       ``(B) to maximize the environmental, economic, and social 
     benefits of production of biofuels and biobased products on a 
     large scale through life-cycle economic and environmental 
     analysis and other means; and
       ``(C) to assess the potential of Federal land and land 
     management programs as feedstock resources for biofuels and 
     biobased products, consistent with the integrity of soil and 
     water resources and with other environmental considerations.
       ``(6) Eligible entities.--To be eligible for a grant, 
     contract, or assistance under this subsection, an applicant 
     shall be--
       ``(A) an institution of higher education;
       ``(B) a National Laboratory;
       ``(C) a Federal research agency;
       ``(D) a State research agency;
       ``(E) a private sector entity;
       ``(F) a nonprofit organization; or
       ``(G) a consortium of 2 or more entities described in 
     subparagraphs (A) through (F).
       ``(7) Administration.--
       ``(A) In general.--After consultation with the Board, the 
     points of contact shall--
       ``(i) publish annually 1 or more joint requests for 
     proposals for grants, contracts, and assistance under this 
     subsection;
       ``(ii) require that grants, contracts, and assistance under 
     this section be awarded competitively, on the basis of merit, 
     after the establishment of procedures that provide for 
     scientific peer review by an independent panel of scientific 
     and technical peers;
       ``(iii) give partial preference to applications that--

       ``(I) involve a consortia of experts from multiple 
     institutions;
       ``(II) encourage the integration of disciplines and 
     application of the best technical resources; and
       ``(III) increase the geographic diversity of demonstration 
     projects; and

       ``(iv) require that not less than 15 percent of funds made 
     available to carry out this section is used for research and 
     development relating to each of the technical areas described 
     in paragraph (4).
       ``(B) Matching funds.--
       ``(i) In general.--The non-Federal share of the cost of a 
     demonstration project under this section shall be not less 
     than 20 percent.
       ``(ii) Commercial applications.--The non-Federal share of 
     the cost of a commercial application project under this 
     section shall be not less than 50 percent.
       ``(C) Technology and information transfer to agricultural 
     users.--The Administrator of the National Institute of Food 
     and Agriculture and the Chief of the Natural Resources 
     Conservation Service shall ensure that applicable research 
     results and technologies from the Initiative are--
       ``(i) adapted, made available, and disseminated through 
     those services, as appropriate; and
       ``(ii) included in the best practices database established 
     under section 220 of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6920).
       ``(f) Administrative Support and Funds.--
       ``(1) In general.--To the extent administrative support and 
     funds are not provided by other agencies under paragraph (2), 
     the Secretary of Energy and the Secretary of Agriculture may 
     provide such administrative support and funds of the 
     Department of Energy and the Department of Agriculture to the 
     Board and the Advisory Committee as are necessary to enable 
     the Board and the Advisory Committee to carry out their 
     duties under this section.
       ``(2) Other agencies.--The heads of the agencies referred 
     to in subsection (c)(2)(C), and the other members of the 
     Board appointed under subsection (c)(2)(D), may, and are 
     encouraged to, provide administrative support and funds of 
     their respective agencies to the Board and the Advisory 
     Committee.
       ``(3) Limitation.--Not more than 4 percent of the amount 
     made available for each fiscal year under subsection (h) may 
     be used to pay the administrative costs of carrying out this 
     section.
       ``(g) Reports.--
       ``(1) Annual reports.--For each fiscal year for which funds 
     are made available to carry out this section, the Secretary 
     of Energy and the Secretary of Agriculture shall jointly 
     submit to Congress a detailed report on--
       ``(A) the status and progress of the Initiative, including 
     a report from the Advisory Committee on whether funds 
     appropriated for the Initiative have been distributed and 
     used in a manner that--
       ``(i) is consistent with the objectives, purposes, and 
     additional considerations described in paragraphs (2) through 
     (5) of subsection (e);
       ``(ii) uses the set of criteria established in the initial 
     report submitted under title III of the Agricultural Risk 
     Protection Act of 2000 (7 U.S.C. 7624 note; Public Law 106-
     224) (as in effect on the date before the date of enactment 
     of the Food and Energy Security Act of 2007); and
       ``(iii) takes into account any recommendations that have 
     been made by the Advisory Committee;
       ``(B) the general status of cooperation and research and 
     development efforts carried out at each agency with respect 
     to biofuels and biobased products, including a report from 
     the Advisory Committee on whether the points of contact are 
     funding proposals that are selected under subsection 
     (d)(3)(B)(iii); and
       ``(C) the plans of the Secretary of Energy and the 
     Secretary of Agriculture for addressing concerns raised in 
     the report, including concerns raised by the Advisory 
     Committee.
       ``(2) Updates.--The Secretary of Agriculture and the 
     Secretary of Energy shall update the Vision and Roadmap 
     documents prepared for Federal biomass research and 
     development activities.
       ``(h) Funding.--
       ``(1) Commodity credit corporation funds.--Of the funds of 
     the Commodity Credit Corporation, the Secretary of 
     Agriculture, to the maximum extent practicable, shall use to 
     carry out this section, to remain available until expended--
       ``(A) $15,000,000 for fiscal year 2008;
       ``(B) $25,000,000 for fiscal year 2009; and
       ``(C) $35,000,000 for fiscal year 2010.
       ``(2) Additional funding.--In addition to amounts described 
     in paragraph (1), there is authorized to be appropriated to 
     carry out this section $85,000,000 for each of fiscal years 
     2008 through 2012.

     ``SEC. 9009. SUN GRANT PROGRAM.

       ``(a) Purposes.--The purposes of the programs established 
     under this section are--
       ``(1) to enhance national energy security through the 
     development, distribution, and implementation of biobased 
     energy technologies;
       ``(2) to promote diversification in, and the environmental 
     sustainability of, agricultural production in the United 
     States through biobased energy and product technologies;
       ``(3) to promote economic diversification in rural areas of 
     the United States through biobased energy and product 
     technologies; and
       ``(4) to enhance the efficiency of bioenergy and biomass 
     research and development programs through improved 
     coordination and collaboration between the Department of 
     Agriculture, the Department of Energy, and the land-grant 
     colleges and universities.
       ``(b) Definition of Land-Grant Colleges and Universities.--
     The term `land-grant colleges and universities' means--
       ``(1) 1862 Institutions (as defined in section 2 of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7601));
       ``(2) 1890 Institutions (as defined in section 2 of that 
     Act) and West Virginia State College; and
       ``(3) 1994 Institutions (as defined in section 2 of that 
     Act).
       ``(c) Establishment.--To carry out the purposes described 
     in subsection (a), the Secretary shall provide grants to sun 
     grant centers specified in subsection (d).
       ``(d) Grants to Centers.--The Secretary shall use amounts 
     made available for a fiscal year under subsection (j) to 
     provide a grants in equal amounts to each of the following 
     sun grant centers:
       ``(1) North-central center.--A north-central sun grant 
     center at South Dakota State University for the region 
     composed of the States of Illinois, Indiana, Iowa, Minnesota, 
     Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and 
     Wyoming.
       ``(2) Southeastern center.--A southeastern sun grant center 
     at the University of Tennessee at Knoxville for the region 
     composed of--
       ``(A) the States of Alabama, Florida, Georgia, Kentucky, 
     Mississippi, North Carolina, South Carolina, Tennessee, and 
     Virginia;
       ``(B) the Commonwealth of Puerto Rico; and
       ``(C) the United States Virgin Islands.
       ``(3) South-central center.--A south-central sun grant 
     center at Oklahoma State University for the region composed 
     of the States of Arkansas, Colorado, Kansas, Louisiana, 
     Missouri, New Mexico, Oklahoma, and Texas.
       ``(4) Western center.--A western sun grant center at Oregon 
     State University for the region composed of--
       ``(A) the States of Alaska, Arizona, California, Hawaii, 
     Idaho, Nevada, Oregon, Utah, and Washington; and
       ``(B) territories and possessions of the United States 
     (other than the territories referred to in subparagraphs (B) 
     and (C) of paragraph (2)).
       ``(5) Northeastern center.--A northeastern sun grant center 
     at Cornell University for the region composed of the States 
     of Connecticut, Delaware, Massachusetts, Maryland, Maine, 
     Michigan, New Hampshire, New Jersey, New York, Ohio, 
     Pennsylvania, Rhode Island, Vermont, and West Virginia.
       ``(6) Western insular pacific subcenter.--A western insular 
     Pacific subcenter at the University of Hawaii for the region 
     composed of the State of Alaska, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Federated

[[Page 29335]]

     States of Micronesia, the Republic of the Marshall Islands, 
     and the Republic of Palau.
       ``(e) Use of Funds.--
       ``(1) Centers of excellence.--Of the amount of funds that 
     are made available for a fiscal year to a sun grant center 
     under subsection (d), the center shall use not more than 25 
     percent of the amount to support excellence in science, 
     engineering, and economics at the center to promote the 
     purposes described in subsection (a) through the State 
     agricultural experiment station, cooperative extension 
     services, and relevant educational programs of the 
     university.
       ``(2) Grants to land-grant colleges and universities.--
       ``(A) In general.--The sun grant center established for a 
     region shall use the funds that remain available for a fiscal 
     year after expenditures made under paragraph (1) to provide 
     competitive grants to land-grant colleges and universities in 
     the region of the sun grant center to conduct, consistent 
     with the purposes described in subsection (a), multi-
     institutional and multistate--
       ``(i) research, extension, and educational programs on 
     technology development; and
       ``(ii) integrated research, extension, and educational 
     programs on technology implementation.
       ``(B) Programs.--Of the amount of funds that are used to 
     provide grants for a fiscal year under subparagraph (A), the 
     center shall use--
       ``(i) not less than 30 percent of the funds to carry out 
     programs described in subparagraph (A)(i); and
       ``(ii) not less than 30 percent of the funds to carry out 
     programs described in subparagraph (A)(ii).
       ``(3) Indirect costs.--A sun grant center may not recover 
     the indirect costs of making grants under paragraph (2) to 
     other land-grant colleges and universities.
       ``(f) Plan.--
       ``(1) In general.--Subject to the availability of funds 
     under subsection (j), in cooperation with other land-grant 
     colleges and universities and private industry in accordance 
     with paragraph (2), the sun grant centers shall jointly 
     develop and submit to the Secretary, for approval, a plan for 
     addressing at the State and regional levels the bioenergy, 
     biomass, and gasification research priorities of the 
     Department of Agriculture and the Department of Energy for 
     the making of grants under paragraphs (1) and (2) of 
     subsection (e).
       ``(2) Gasification coordination.--
       ``(A) In general.--In developing the plan under paragraph 
     (1) with respect to gasification research, the sun grant 
     centers identified in paragraphs (1) and (2) of subsection 
     (d) shall coordinate with land grant colleges and 
     universities in their respective regions that have ongoing 
     research activities with respect to the research.
       ``(B) Funding.--Funds made available under subsection (d) 
     to the sun grant center identified in subsection (e)(2) shall 
     be available to carry out planning coordination under 
     paragraph (1) of this subsection.
       ``(g) Grants to Other Land-Grant Colleges and 
     Universities.--
       ``(1) Priority for grants.--In making grants under 
     subsection (e)(2), a sun grant center shall give a higher 
     priority to programs that are consistent with the plan 
     approved by the Secretary under subsection (f).
       ``(2) Term of grants.--The term of a grant provided by a 
     sun grant center under subsection (e)(2) shall not exceed 5 
     years.
       ``(h) Grant Information Analysis Center.--The sun grant 
     centers shall maintain a Sun Grant Information Analysis 
     Center at the sun grant center specified in subsection (d)(1) 
     to provide sun grant centers analysis and data management 
     support.
       ``(i) Annual Reports.--Not later than 90 days after the end 
     of a year for which a sun grant center receives a grant under 
     subsection (d), the sun grant center shall submit to the 
     Secretary a report that describes the policies, priorities, 
     and operations of the program carried out by the center 
     during the year, including a description of progress made in 
     facilitating the priorities described in subsection (f).
       ``(j) Funding.--
       ``(1) Commodity credit corporation.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall use to 
     carry out this section, to remain available until expended--
       ``(A) $5,000,000 for fiscal year 2008;
       ``(B) $10,000,000 for fiscal year 2009; and
       ``(C) $10,000,000 for fiscal year 2010.
       ``(2) Authorization of appropriations.--
       ``(A) In general.--In addition to any other funds made 
     available to carry out this section, there is authorized to 
     be appropriated to carry out this section $70,000,000 for 
     each of fiscal years 2008 through 2012.
       ``(B) Grant information analysis center.--Of amounts made 
     available under subparagraph (A), not more than $4,000,000 
     for each fiscal year shall be made available to carry out 
     subsection (h).

     ``SEC. 9010. REGIONAL BIOMASS CROP EXPERIMENTS.

       ``(a) Purpose.--The purpose of this section is to initiate 
     multi-region side-by-side crop experiments to provide a sound 
     knowledge base on all aspects of the production of biomass 
     energy crops, including crop species, nutrient requirements, 
     management practices, environmental impacts, greenhouse gas 
     implications, and economics.
       ``(b) Crop Experiments.--
       ``(1) In general.--The Secretary, in consultation with the 
     Board, based on the recommendations of the Advisory 
     Committee, shall award 10 competitive grants to land-grant 
     colleges and universities (as defined in section 1404 of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3103)) to establish regional 
     biomass crop research experiments (including experiments 
     involving annuals, perennials, and woody biomass species).
       ``(2) Selection of grant recipients.--Grant recipients 
     shall be selected on the basis of applications submitted in 
     accordance with guidelines issued by the Secretary.
       ``(3) Selection criteria.--In selecting grant recipients, 
     the Secretary shall consider--
       ``(A) the capabilities and experience of the applicant in 
     conducting side-by-side crop experiments;
       ``(B) the range of species types and cropping practices 
     proposed for study;
       ``(C) the quality of the proposed crop experiment plan;
       ``(D) the commitment of the applicant of adequate acreage 
     and necessary resources for, and continued participation in, 
     the crop experiments;
       ``(E) the need for regional diversity among the 10 
     institutions selected; and
       ``(F) such other factors as the Secretary may determine.
       ``(c) Grants.--The Secretary shall make a grant to each 
     land-grant college or university selected under subsection 
     (b) in the amount of--
       ``(1) $1,000,000 for fiscal year 2008;
       ``(2) $2,000,000 for fiscal year 2009; and
       ``(3) $1,000,000 for fiscal year 2010.
       ``(d) Coordination.--The Secretary shall coordinate with 
     participants under this section--
       ``(1) to provide coordination regarding biomass crop 
     research approaches; and
       ``(2) to ensure coordination between biomass crop research 
     activities carried out by land-grant colleges and 
     universities under this section and by sun grant centers 
     under section 9009.
       ``(e) Funding.--
       ``(1) Commodity credit corporation.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall use to 
     carry out this section, to remain available until expended--
       ``(A) $10,000,000 for fiscal year 2008;
       ``(B) $20,000,000 for fiscal year 2009; and
       ``(C) $10,000,000 for fiscal year 2010.
       ``(2) Authorization of appropriations.--In addition to any 
     other funds made available to carry out this section, there 
     are authorized to be appropriated such sums are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2012.

     ``SEC. 9011. BIOCHAR RESEARCH, DEVELOPMENT, AND 
                   DEMONSTRATION.

       ``(a) Purpose.--The purpose of this section is to support 
     research, development, and demonstration of biochar as a 
     coproduct of bioenergy production, as a soil enhancement 
     practice, and as a carbon management strategy.
       ``(b) Definition of Biochar.--In this section, the term 
     `biochar' means charcoal or biomass-derived black carbon that 
     is added to soil to improve soil fertility, nutrient 
     retention, and carbon content.
       ``(c) Grants.--The Secretary shall award competitive grants 
     to eligible entities to support biochar research, 
     development, and demonstration projects on multiple scales, 
     including laboratory biochar research and field trials, and 
     biochar systems on a single farm scale, local community 
     scale, and agricultural cooperative scale.
       ``(d) Eligible Entities.--To be eligible to receive a grant 
     under this section, an entity shall be an eligible entity 
     described in section 9005(d).
       ``(e) Areas of Biochar Research, Development, and 
     Demonstration.--In carrying out this section, the Secretary 
     shall solicit proposals for activities that include--
       ``(1) the installation and use of biochar production 
     systems, including pyrolysis and thermocombustion systems, 
     and the integration of biochar production with bioenergy and 
     bioproducts production;
       ``(2) the study of agronomic effects of biochar usage in 
     soils, including plant growth and yield effects for different 
     application rates and soil types, and implications for water 
     and fertilizer needs;
       ``(3) biochar characterization, including analysis of 
     physical properties, chemical structure, product consistency 
     and quality, and the impacts of those properties on the soil-
     conditioning effects of biochar in different soil types;
       ``(4) the study of effects of the use of biochar on the 
     carbon content of soils, with an emphasis on the potential 
     for biochar applications to sequester carbon;
       ``(5) the study of effects of biochar on greenhouse gas 
     emissions relating to crop production, including nitrous 
     oxide and carbon dioxide emissions from cropland;
       ``(6) the study of the integration of renewable energy and 
     bioenergy production with biochar production;
       ``(7) the study of the economics of biochar production and 
     use, including considerations

[[Page 29336]]

     of feedstock competition, synergies of coproduction with 
     bioenergy, the value of soil enhancements, and the value of 
     soil carbon sequestration; and
       ``(8) such other topics as are identified by the Secretary.
       ``(f) Funding.--There is authorized to be appropriated to 
     carry out this section $3,000,000 for each of fiscal years 
     2008 through 2012.

     ``SEC. 9012. RENEWABLE WOODY BIOMASS FOR ENERGY.

       ``(a) In General.--The Secretary, acting through the Chief 
     of the Forest Service (referred to in this section as the 
     `Secretary'), shall conduct a competitive research, 
     technology development, and technology application program to 
     encourage the use of renewable woody biomass for energy.
       ``(b) Eligible Entities.--Entities eligible to compete 
     under the program shall include--
       ``(1) the Forest Service (through Research and 
     Development);
       ``(2) other Federal agencies;
       ``(3) State and local governments;
       ``(4) federally recognized Indian tribes;
       ``(5) colleges and universities; and
       ``(6) private entities.
       ``(c) Priority for Project Selection.--The Secretary shall 
     give priority under the program to projects that--
       ``(1) develop technology and techniques to use low-value 
     woody biomass sources, such as byproducts of forest health 
     treatments and hazardous fuels reduction, for the production 
     of energy;
       ``(2) develop processes that integrate production of energy 
     from woody biomass into biorefineries or other existing 
     manufacturing streams;
       ``(3) develop new transportation fuels from woody biomass; 
     and
       ``(4) improve the growth and yield of trees intended for 
     renewable energy production.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2008 through 2012.

     ``SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Community wood energy plan.--The term `community wood 
     energy plan' means a plan that identifies how local forests 
     can be accessed in a sustainable manner to help meet the wood 
     supply needs of a community wood energy system.
       ``(2) Community wood energy system.--
       ``(A) In general.--The term `community wood energy system' 
     means an energy system that--
       ``(i) services schools, town halls, libraries, and other 
     public buildings; and
       ``(ii) uses woody biomass as the primary fuel.
       ``(B) Inclusions.--The term `community wood energy system' 
     includes single facility central heating, district heating, 
     combined heat and energy systems, and other related biomass 
     energy systems.
       ``(b) Grant Program.--
       ``(1) In general.--The Secretary, acting through the Chief 
     of the Forest Service, shall establish a program to be known 
     as the `Community Wood Energy Program' to provide--
       ``(A) grants of up to $50,000 to State and local 
     governments (or designees)--
       ``(i) to conduct feasibility studies related to community 
     wood energy plans; and
       ``(ii) to develop community wood energy plans; and
       ``(B) competitive grants to State and local governments--
       ``(i) to acquire or upgrade community wood energy systems 
     for public buildings; and
       ``(ii) to implement a community wood energy plan.
       ``(2) Considerations.--In selecting applicants for grants 
     under paragraph (1)(B), the Secretary shall consider--
       ``(A) the energy efficiency of the proposed system; and
       ``(B) other conservation and environmental criteria that 
     the Secretary considers appropriate.
       ``(c) Community Wood Energy Plan.--
       ``(1) In general.--A State or local government that 
     receives a grant under subsection (b)(1)(A), shall use the 
     grant, and the technical assistance of the State forester, to 
     create a community wood energy plan to meet the wood supply 
     needs of the community wood energy system, in a sustainable 
     manner, that the State or local government proposes to 
     purchase under this section.
       ``(2) Use of plan.--A State or local government applying to 
     receive a competitive grant described in subsection (b)(1)(B) 
     shall submit to the Secretary as part of the grant 
     application the applicable community wood energy plan 
     described in paragraph (1).
       ``(3) Requirement.--To be included in a community wood 
     energy plan, property shall be subject to a forest management 
     plan.
       ``(d) Use in Public Buildings.--A State or local government 
     that receives a grant under subsection (b)(1)(B) shall use a 
     community wood energy system acquired, in whole or in part, 
     with the use of the grant funds for primary use in a public 
     facility owned by the State or local government.
       ``(e) Limitation.--A community wood energy system acquired 
     with grant funds provided under subsection (b)(1)(B) shall 
     not exceed an output of--
       ``(1) 50,000,000 Btu per hour for heating; and
       ``(2) 2 megawatts for electric power production.
       ``(f) Matching Funds.--A State or local government that 
     receives a grant under subsection (b) shall contribute an 
     amount of non-Federal funds towards the feasibility study, 
     development of the community wood energy plan, or acquisition 
     of the community wood energy systems that is at least equal 
     to the amount of grant funds received by the State or local 
     government under that subsection.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2008 through 2012.

     ``SEC. 9014. RURAL ENERGY SYSTEMS RENEWAL.

       ``(a) Purpose.--The purpose of this section is to establish 
     a Federal program--
       ``(1) to encourage communities in rural areas of the United 
     States to establish energy systems renewal strategies for 
     their communities;
       ``(2) to provide the information, analysis assistance, and 
     guidance that the communities need; and
       ``(3) to provide financial resources to partially fund the 
     costs of carrying out community energy systems renewal 
     projects.
       ``(b) Program Authority.--The Secretary shall establish and 
     carry out a program of competitive grants to support 
     communities in rural areas in carrying out rural energy 
     systems renewal projects.
       ``(c) Use of Grants.--A community may use a grant provided 
     under this section to carry out a project--
       ``(1) to conduct an energy assessment that assesses total 
     energy usage by all members and activities of the community, 
     including an assessment of--
       ``(A) energy used in community facilities, including energy 
     for heating, cooling, lighting, and all other building and 
     facility uses;
       ``(B) energy used in transportation by community members;
       ``(C) current sources and types of energy used;
       ``(D) energy embedded in other materials and products;
       ``(E) the major impacts of the energy usage (including the 
     impact on the quantity of oil imported, total costs, the 
     environment, and greenhouse gas emissions); and
       ``(F) such other activities as are determined appropriate 
     by the community, consistent with the purposes described in 
     subsection (a);
       ``(2) to formulate and analyze ideas for reducing 
     conventional energy usage and greenhouse gas emissions by the 
     community, including reduction of energy usage through--
       ``(A) housing insulation, automatic controls on lighting 
     and electronics, zone energy usage, and home energy 
     conservation practices;
       ``(B) transportation alternatives, vehicle options, transit 
     options, transportation conservation, and walk- and bike-to-
     school programs;
       ``(C) community configuration alternatives to provide 
     pedestrian access to regular services; and
       ``(D) community options for alternative energy systems 
     (including alternative fuels, photovoltaic electricity, wind 
     energy, geothermal heat pump systems, and combined heat and 
     power);
       ``(3) to formulate and implement community strategies for 
     reducing conventional energy usage and greenhouse gas 
     emissions by the community;
       ``(4) to conduct assessments and to track and record the 
     results of energy system changes; and
       ``(5) to train rural community energy professionals to 
     provide expert support to community energy systems renewal 
     projects.
       ``(d) Federal Share.--The Federal cost of carrying out a 
     project under this section shall be 50 percent of the total 
     cost of the project.
       ``(e) Administration.--The Secretary shall--
       ``(1) issue, an annual basis, requests for proposals from 
     communities in rural areas for energy systems renewal 
     projects; and
       ``(2) establish criteria for program participation and 
     evaluation of projects carried out under this section, 
     including criteria based on--
       ``(A) the quality of the renewal projects proposed;
       ``(B) the probability of success of the community in 
     meeting the energy systems renewal goals of the community;
       ``(C) the projected energy savings (including oil savings) 
     resulting from the proposed projects; and
       ``(D) projected greenhouse gas emission reductions 
     resulting from the proposed projects.
       ``(f) Technical Assistance.--The Secretary, in consultation 
     with the Secretary of Energy, shall--
       ``(1) develop, and provide through the National Institute 
     of Food and Agriculture or State Energy Offices, information 
     and tools that communities in rural areas can use--
       ``(A) to assess the current energy systems of the 
     communities, including sources, uses, and impacts;
       ``(B) to identify and evaluate options for changes;
       ``(C) to develop strategies and plans for changes; and

[[Page 29337]]

       ``(D) to implement changes and assess the impact of the 
     changes; and
       ``(2) provide technical assistance and support to 
     communities in rural areas that receive grants under this 
     section to assist the communities in carrying out projects 
     under this section.
       ``(g) Report.--Not later than December 31, 2011, and 
     biennially thereafter, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that documents the best practices and 
     approaches used by communities in rural areas that receive 
     funds under this section.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to make grants under this 
     section $5,000,000 for each of fiscal years 2008 through 
     2012.

     ``SEC. 9015. VOLUNTARY RENEWABLE BIOMASS CERTIFICATION 
                   PROGRAM.

       ``(a) Establishment.--The Secretary, in consultation with 
     Administrator, shall establish a voluntary program to certify 
     renewable biomass that meets sustainable growing standards 
     designed--
       ``(1) to reduce greenhouse gases and improve soil carbon 
     content;
       ``(2) to protect wildlife habitat, and
       ``(3) to protect air, soil, and water quality.
       ``(b) Voluntary Certification Requirements.--To qualify for 
     certification under the program established under subsection 
     (a), a biomass crop shall be inspected and certified as 
     meeting the standards adopted under subsection (c) by an 
     inspector designated under subsection (d).
       ``(c) Production Standards.--
       ``(1) In general.--The Secretary shall adopt standards for 
     the certification of renewable biomass under subsection (b) 
     that will apply to those producers who elect to participate 
     in the voluntary certification program.
       ``(2) Requirement.--The standards under paragraph (1) shall 
     provide measurement of a numerical reduction in greenhouse 
     gases, improvement to soil carbon content, and reduction in 
     soil and water pollutants, based on the recommendations of an 
     advisory committee jointly established by the Secretary and 
     the Administrator.
       ``(d) Inspectors.--The Secretary shall designate inspectors 
     that the Secretary determines are qualified to carry out 
     inspections and certifications under subsection (b) in order 
     to certify renewable biomass under this section.
       ``(e) Designation.--A product produced from renewable 
     biomass that is certified under this section may be 
     designated as having been produced from certified renewable 
     biomass if--
       ``(1) the producer of the product verifies that the product 
     was produced from renewable biomass; and
       ``(2) the verification includes a copy of the certification 
     obtained in accordance with subsection (b).

     ``SEC. 9016. ADMINISTRATION.

       ``The Secretary shall designate an entity within the 
     Department of Agriculture to--
       ``(1) provide oversight and coordination of all activities 
     relating to renewable energy and biobased product development 
     within the Department;
       ``(2) act as a liaison between the Department and other 
     Federal, State, and local agencies to ensure coordination 
     among activities relating to renewable energy and biobased 
     product development;
       ``(3) assist agriculture researchers by evaluating the 
     market potential of new biobased products in the initial 
     phase of development;
       ``(4) collect and disseminate information relating to 
     renewable energy and biobased product development programs, 
     including research, within the Federal Government; and
       ``(5) establish and maintain a public database of best 
     practices to facilitate information sharing relating to--
       ``(A) renewable energy and biobased product development 
     from programs under this title and other programs; and
       ``(B) best practices for producing, collecting, harvesting, 
     storing, and transporting crops of renewable biomass, as 
     described under section 9004(d)(3)(B) of the Farm Security 
     and Rural Investment Act of 2002.

     ``SEC. 9017. BIOFUELS INFRASTRUCTURE STUDY.

       ``(a) In General.--The Secretary, in collaboration with the 
     Secretary of Energy, the Administrator, and the Secretary of 
     Transportation, shall--
       ``(1) conduct an assessment of the infrastructure needs for 
     expanding the domestic production, transport, and marketing 
     of biofuels and bioenergy;
       ``(2) formulate recommendations for infrastructure 
     development needs and approaches; and
       ``(3) submit to the appropriate committees of Congress a 
     report describing the assessment and recommendations.
       ``(b) Infrastructure Areas.--In carrying out subsection 
     (a), the Secretary shall consider--
       ``(1) biofuel transport and delivery infrastructure issues, 
     including shipment by rail or pipeline or barge;
       ``(2) biofuel storage needs;
       ``(3) biomass feedstock delivery needs, including adequacy 
     of rural roads;
       ``(4) biomass feedstock storage needs;
       ``(5) water resource needs, including water requirements 
     for biorefineries; and
       ``(6) such other infrastructure issues as the Secretary may 
     determine.
       ``(c) Considerations.--In carrying out subsection (a), the 
     Secretary shall consider--
       ``(1) estimated future biofuels production levels of--
       ``(A) 20,000,000,000 gallons per year to 40,000,000,000 
     gallons per year by 2020; and
       ``(B) 50,000,000,000 gallons per year to 75,000,000,000 
     gallons per year by 2030;
       ``(2) the feasibility of shipping biofuels through existing 
     pipelines;
       ``(3) the development of new biofuels pipelines, including 
     siting, financing, timing, and other economic issues;
       ``(4) the environmental implications of alternative 
     approaches to infrastructure development; and
       ``(5) the resource use and conservation characteristics of 
     alternative approaches to infrastructure development.
       ``(d) Implementation.--In carrying out this section, the 
     Secretary--
       ``(1) shall consult with individuals and entities with 
     interest or expertise in the areas described in subsections 
     (b) and (c); and
       ``(2) may issue a solicitation for a competition to select 
     a contractor to support the Secretary.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000 for 
     each of fiscal years 2008 and 2009.

     ``SEC. 9018. RURAL NITROGEN FERTILIZER STUDY.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to assess the feasibility of producing nitrogen 
     fertilizer from renewable energy resources in rural areas; 
     and
       ``(2) to formulate recommendations for a program to promote 
     rural nitrogen fertilizer production from renewable energy 
     resources in the future.
       ``(b) Study.--The Secretary shall--
       ``(1) conduct a study to assess and summarize the current 
     state of knowledge regarding the potential for the production 
     of nitrogen fertilizer from renewable energy sources in rural 
     areas;
       ``(2) identify the critical challenges to commercialization 
     of rural production of nitrogen fertilizer from renewables; 
     and
       ``(3) not later than 270 days after the date of enactment 
     of this section, submit to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     that summarizes the results of the activities described in 
     paragraphs (1) and (2).
       ``(c) Needs.--
       ``(1) In general.--Based on the results of the study 
     described in subsection (b), the Secretary shall identify the 
     critical needs to commercializing the rural production of 
     nitrogen fertilizer from renewables, including--
       ``(A) identifying alternative processes for renewables-to-
     nitrogen fertilizer production;
       ``(B) identifying efficiency improvements that are 
     necessary for each component of renewables-to-nitrogen 
     fertilizer production processes to produce cost-competitive 
     nitrogen fertilizer;
       ``(C) identifying research and technology priorities for 
     the most promising technologies;
       ``(D) identifying economic analyses needed to better 
     understand the commercial potential of rural nitrogen 
     production from renewables;
       ``(E) identifying additional challenges impeding 
     commercialization, including--
       ``(i) cost competition from nitrogen fertilizer produced 
     using natural gas and coal;
       ``(ii) modifications or expansion needed to the currently-
     installed nitrogen fertilizer (anhydrous ammonia) pipeline 
     and storage tank system to enable interconnection of on-farm 
     or rural renewables-to-nitrogen fertilizer systems;
       ``(iii) impact on nitrogen fertilizer (anhydrous ammonia) 
     transportation infrastructure and safety regulations;
       ``(iv) supply of competitively-priced renewable 
     electricity; and
       ``(v) impacts on domestic water supplies; and
       ``(F) determining greenhouse gas reduction benefits of 
     producing nitrogen fertilizer from renewable energy.
       ``(d) Program Recommendations.--As part of the report 
     described in subsection (b)(3) and based on the needs 
     identified in subsection (c), the Secretary shall provide 
     recommendations on--
       ``(1) the establishment of a research, development, and 
     demonstration program to support commercialization of rural 
     nitrogen production using renewables;
       ``(2) the appropriate contents of the program;
       ``(3) the appropriate approach to implementing the program, 
     including participants and funding plans; and
       ``(4) legislation to support commercialization of rural 
     nitrogen production using renewables.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to

[[Page 29338]]

     carry out this section $1,000,000 for fiscal year 2008.

     ``SEC. 9019. STUDY OF LIFE-CYCLE ANALYSIS OF BIOFUELS.

       ``(a) In General.--The Secretary, in consultation with the 
     Secretary of Energy and the Administrator, shall conduct a 
     study of--
       ``(1) published methods for evaluating the lifecycle 
     greenhouse gas emissions of conventional fuels and biofuels; 
     and
       ``(2) methods for performing simplified, streamlined 
     lifecycle analyses of the greenhouse gas emissions of 
     conventional fuels and biofuels.
       ``(b) Report.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes the results of the study 
     conducted under subsection (a), including recommendations for 
     a method for performing a simplified, streamlined lifecycle 
     analysis of the greenhouse gas emissions of biofuels and 
     fossil fuels that includes--
       ``(1) greenhouse gas emissions relating to the production, 
     extraction, transportation, storage, and waste disposal of 
     the fuels and the feedstocks of the fuels, including the 
     greenhouse gases associated with electrical and thermal 
     energy inputs;
       ``(2) greenhouse gas emissions relating to the 
     distribution, marketing, and use of the fuels; and
       ``(3) to the maximum extent practicable, direct and 
     indirect greenhouse gas emissions from changes in land use 
     and land cover that occur domestically or internationally as 
     a result of biofuel feedstock production.
       ``(c) Update.--Not later than 2 years after the date on 
     which the Secretary submits the report under subsection (b), 
     the Secretary shall submit to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate an update 
     containing recommendations for an improved method for 
     conducting lifecycle analysis of the greenhouse gas emissions 
     of biofuels and fossil fuels that takes into account advances 
     in the understanding of the emissions.

     ``SEC. 9020. E-85 FUEL PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) E-85 fuel.--The term `E-85 fuel' means a blend of 
     gasoline at least 85 percent (or any other percentage, but 
     not less than 70 percent, as determined by the Secretary, by 
     rule, to provide for requirements relating to cold start, 
     safety, or vehicle functions) of the content of which is 
     derived from ethanol.
       ``(2) Eligible facility.--The term `eligible facility' 
     means an ethanol production facility, the majority ownership 
     of which is comprised of agricultural producers.
       ``(b) Program.--The Secretary shall make grants under this 
     section to eligible facilities--
       ``(1) to install E-85 fuel infrastructure, including 
     infrastructure necessary--
       ``(A) for the direct retail sale of E-85 fuel, including E-
     85 fuel pumps and storage tanks; and
       ``(B) to directly market E-85 fuel to gas retailers, 
     including in-line blending equipment, pumps, storage tanks, 
     and load-out equipment; and
       ``(2) to provide subgrants to direct retailers of E-85 fuel 
     that are located in a rural area (as defined in section 
     343(a) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1991(a))) for the purpose of installing E-85 fuel 
     infrastructure for the direct retail sale of E-85 fuel, 
     including E-85 fuel pumps and storage tanks.
       ``(c) Cost Sharing.--
       ``(1) Grants.--The amount of a grant under this section 
     shall be equal to 20 percent of the total costs of the 
     installation of the E-85 fuel infrastructure, as determined 
     by the Secretary.
       ``(2) Relationship to other federal funding.--The amount of 
     a grant that an eligible facility receives under this section 
     shall be reduced by the amount of other Federal funding that 
     the eligible facility receives for the same purpose, as 
     determined by the Secretary.
       ``(3) Limitation.--Not more than 70 percent of the total 
     costs of E-85 fuel infrastructure provided assistance under 
     this section shall be provided by the Federal Government and 
     State and local governments.
       ``(d) Authorization of Appropriations.--Subject to the 
     availability of appropriations, there is authorized to be 
     appropriated to carry out this section $20,000,000 for the 
     period of fiscal years 2008 through 2012, to remain available 
     until expended.

     ``SEC. 9021. RESEARCH AND DEVELOPMENT OF RENEWABLE ENERGY.

       ``(a) In General.--The Secretary, in conjunction with the 
     Colorado Renewable Energy Collaboratory, shall carry out a 
     research and development program relating to renewable 
     energy--
       ``(1) to conduct research on and develop high-quality 
     energy crops that--
       ``(A) have high energy production values;
       ``(B) are cost efficient for producers and refiners;
       ``(C) are well suited to high yields with minimal inputs in 
     arid and semiarid regions; and
       ``(D) are regionally appropriate;
       ``(2) to conduct research on and develop biorefining and 
     biofuels through multidisciplinary research, including 
     research relating to--
       ``(A) biochemical engineering;
       ``(B) process engineering;
       ``(C) thermochemical engineering;
       ``(D) product engineering; and
       ``(E) systems engineering;
       ``(3) to develop cost-effective methods for the harvesting, 
     handling, transport, and storage of cellulosic biomass 
     feedstocks;
       ``(4) to conduct research on and develop fertilizers from 
     biobased sources other than hydrocarbon fuels;
       ``(5) to develop energy- and water-efficient irrigation 
     systems;
       ``(6) to research and develop water-efficient biofuel 
     production technologies;
       ``(7) to research and develop additional biobased products;
       ``(8) in cooperation with the Department of Energy and the 
     Department of Defense, to develop storage and conversion 
     technologies for wind- and solar-generated power for small-
     scale and utility-scale generation facilities; and
       ``(9) in cooperation with the Department of Energy, to 
     research fuel cell technologies for use in farm, ranch, and 
     rural applications.
       ``(b) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $5,000,000 for each of fiscal years 
     2008 through 2012, to remain available until expended.
       ``(2) Additional funds.--In addition to funds made 
     available under paragraph (1), there are authorized to be 
     appropriated--
       ``(A) $110,000,000 to the Under Secretary for Research, 
     Education, and Economics, acting through the Agricultural 
     Research Service, for cellulosic biofuel research for each of 
     fiscal years 2008 through 2012; and
       ``(B) $110,000,000 to the Secretary and the Secretary of 
     Energy for the development of smaller-scale biorefineries and 
     biofuel plants for each of fiscal years 2008 through 2012.

     ``SEC. 9022. NORTHEAST DAIRY NUTRIENT MANAGEMENT AND ENERGY 
                   DEVELOPMENT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Consortium.--The term `consortium' means a 
     collaboration of land-grant colleges or universities in the 
     Northeast region that have programs devoted to dairy manure 
     nutrient management and energy conversion from dairy manure.
       ``(2) Land-grant colleges and universities.--The term 
     `land-grant colleges and universities' has the meaning given 
     the term in section 1404 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3103)).
       ``(3) Northeast region.--The term `Northeast region' means 
     the States of Connecticut, Delaware, Massachusetts, Maryland, 
     Maine, New Hampshire, New Jersey, New York, Pennsylvania, 
     Rhode Island, Vermont, and West Virginia.
       ``(4) Program.--The term `program' means the dairy nutrient 
     management and energy development program established under 
     subsection (b).
       ``(b) Establishment.--The Secretary shall establish a dairy 
     nutrient management and energy development program under 
     which the Secretary shall provide funds to the consortium to 
     carry out multistate, integrated research, extension, and 
     demonstration projects for nutrient management and energy 
     development in the Northeast Region.
       ``(c) Steering Committee.--
       ``(1) In general.--The consortium shall establish a 
     steering committee to administer the program.
       ``(2) Chairperson.--For each calendar year, or for such 
     other period as the consortium determines to be appropriate, 
     the consortium shall select a chairperson of the steering 
     committee in a manner that ensures that each member of the 
     consortium is represented by a chairperson on a rotating 
     basis.
       ``(3) Board.--
       ``(A) In general.--The steering committee shall establish a 
     board of directors to assist in the administration of the 
     program.
       ``(B) Composition.--The board shall consist of 
     representatives of--
       ``(i) dairy cooperatives and other producer groups;
       ``(ii) State departments of agriculture;
       ``(iii) conservation organizations; and
       ``(iv) other appropriate Federal and State agencies.
       ``(d) Use of Funds.--
       ``(1) Administrative costs.--The consortium may use not 
     more than 10 percent of the total amount of funds provided to 
     the consortium under this section to pay the administrative 
     costs of the program.
       ``(2) Grant program.--
       ``(A) In general.--The consortium shall use the amounts 
     provided under this section to provide grants to applicants, 
     including dairy cooperatives, producers and producer groups, 
     State departments of agriculture and other appropriate State 
     agencies, and institutions of higher education, to carry out 
     integrated research, extension, and demonstration projects in 
     the Northeast region to address manure nutrient management 
     and energy development.
       ``(B) Applications.--The steering committee established 
     under subsection (c)(1), in coordination with the board 
     established by

[[Page 29339]]

     the steering committee, shall annually publish 1 or more 
     requests to receive applications for grants under this 
     paragraph.
       ``(C) Selection.--
       ``(i) In general.--The board of the steering committee 
     shall select applications submitted under subparagraph (B) 
     for grants under this paragraph--

       ``(I) on a competitive basis;
       ``(II) in accordance with such priority technical areas and 
     distribution requirements as the steering committee may 
     establish; and
       ``(III) in a manner that ensures, to the maximum extent 
     practicable, that an equal quantity of resources is provided 
     to each member of the consortium.

       ``(ii) Review.--Before selecting any application under 
     clause (i), the board shall ensure that the program proposed 
     in the application is subject to a merit review by an 
     independent panel of scientific experts with experience 
     relating to the program.
       ``(iii) Priority.--In selecting applications under clause 
     (i), the board shall give priority to applications for 
     programs that--

       ``(I) include multiorganizational partnerships, especially 
     partnerships that include producers; and
       ``(II) attract the most current and applicable science for 
     nutrient management and energy development that can be 
     applied in the Northeast region.

       ``(D) Cost sharing.--An applicant that receives a grant 
     under this paragraph shall provide not less than 20 percent 
     of the cost of the project carried out by the applicant.
       ``(e) Availability of Results.--The consortium shall ensure 
     that the results of each project carried out pursuant to the 
     program are made publicly available.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.

     ``SEC. 9023. FUTURE FARMSTEADS PROGRAM.

       ``(a) Establishment.--The Secretary shall establish a 
     program to equip, in each of 5 regions of the United States 
     chosen to represent different farming practices, a farm house 
     and its surrounding fields, facilities, and forested areas 
     with technologies to--
       ``(1) improve farm energy production and energy use 
     efficiencies;
       ``(2) provide working examples to farmers; and
       ``(3) serve as an education, demonstration, and research 
     facility that will teach graduate students whose focus of 
     research is related to either renewable energy or energy 
     conservation technologies.
       ``(b) Goals.--The goals of the program established under 
     subsection (a) shall be to--
       ``(1) advance farm energy use efficiencies and the on-farm 
     production of renewable energies, along with advanced 
     communication and control technologies with the latest in 
     energy capture and conversion techniques, thereby enhancing 
     rural energy independence and creating new revenues for rural 
     economies;
       ``(2) accelerate private sector and university research 
     into the efficient on-farm production of renewable fuels and 
     help educate the farming industry, students, and the general 
     public; and
       ``(3) accelerate energy independence, including the 
     production and the conservation of renewable energies on 
     farms.
       ``(c) Collaboration Partners.--The program under this 
     section shall be carried out in partnership with regional 
     land grant institutions, agricultural commodity commissions, 
     biofuels companies, sensor and controls companies, and 
     internet technology companies.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 9002. SENSE OF THE SENATE CONCERNING HIGHER LEVELS OF 
                   ETHANOL BLENDED GASOLINE.

       (a) Findings.--The Senate finds that, as of the date of 
     enactment of this Act--
       (1) annual ethanol production capacity totals 6,800,000,000 
     gallons;
       (2) current and planned construction of ethanol refineries 
     will likely increase annual ethanol production capacity to 
     12,000,000,000 to 13,000,000,000 gallons by December 31, 
     2009;
       (3) under existing regulations, only gasoline blended with 
     up to 10 percent ethanol (commonly known as ``E-10'') may be 
     consumed by nonflexible fuel vehicles;
       (4) the total market demand for E-10--
       (A) is limited to 10 percent of domestic motor fuel 
     consumption; and
       (B) is further constrained by State-administered 
     reformulated gasoline regulations and regional infrastructure 
     constraints;
       (5) beyond the market demand for E-10, insufficient E-85 
     infrastructure exists to absorb the increased ethanol 
     production beyond 12,000,000,000 to 13,000,000,000 gallons in 
     the short term;
       (6) the approval of intermediate blends of ethanol-blended 
     gasoline, such as E-13, E-15, E-20, and higher blends, is 
     critical to the uninterrupted growth of the United States 
     biofuels industry; and
       (7) maintaining the growth of the United States biofuels 
     industry is a matter of national security and sustainable 
     economic growth.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Secretary should--
       (1) collaborate with the Secretary of Energy, the Secretary 
     of Transportation, and the Administrator of the Environmental 
     Protection Agency in conducting a study of the economic and 
     environmental effects of intermediate blends of ethanol in 
     United States fuel supply;
       (2) ensure that the approval of intermediate blends of 
     ethanol occurs after the appropriate tests have successfully 
     concluded proving the drivability, compatibility, emissions, 
     durability, and health effects of higher blends of ethanol-
     blended gasoline; and
       (3) ensure that the approval of intermediate blends of 
     ethanol-blended gasoline occurs by not later than 1 year 
     after the date of enactment of this Act.

     SEC. 9003. CONFORMING AMENDMENTS.

       (a) Biomass Research and Development Act of 2000.--Title 
     III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 
     7624 note; Public Law 106-224) is repealed.
       (b) Marketing Program for Biobased Products.--
       (1) Implementation.--
       (A) In general.--The Secretary shall continue to carry out 
     the designation and labeling of biobased products in 
     accordance with section 9002 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8102) as in effect on the 
     day before the date of enactment of this Act until the date 
     on which the Secretary is able to begin carrying out section 
     9002(a) of that Act (as amended by section 9001), which shall 
     begin not later than 90 days after the date of enactment of 
     this Act.
       (B) Existing listings.--Biobased products designated and 
     labeled under section 9002 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8102) as in effect on the 
     day before the date of enactment of this Act shall continue 
     to be considered designated and labeled biobased products 
     after the date of enactment of this Act.
       (C) Proposed item designations.--Notwithstanding any other 
     provision of this Act or an amendment made by this Act, the 
     Secretary shall have the authority to finalize the listings 
     of any item proposed (prior to the date of enactment of this 
     Act) to be designated in accordance with section 9002 of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8102) as in effect on the day before the date of enactment of 
     this Act.
       (2) Bioenergy education and awareness campaign.--Section 
     947 of the Energy Policy Act of 2005 (42 U.S.C. 16256) is 
     repealed.

     TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS

                         Subtitle A--Marketing

     SEC. 10001. LIVESTOCK MANDATORY REPORTING.

       (a) Mandatory Reporting for Swine.--Section 232(c)(3) of 
     the Agricultural Marketing Act of 1946 (7 U.S.C. 1635j(c)(3)) 
     is amended--
       (1) in subparagraph (A), by striking ``2:00 p.m.'' and 
     inserting ``3:00 p.m.''; and
       (2) in subparagraph (B), by striking ``3:00 p.m.'' and 
     inserting ``4:00 p.m.''.
       (b) Mandatory Packer Reporting of Pork Products Sales.--
       (1) In general.--Section 232 of the Agricultural Marketing 
     Act of 1946 (7 U.S.C. 1635j) is amended by adding at the end 
     the following:
       ``(f) Mandatory Packer Reporting of Pork Products Sales.--
       ``(1) In general.--Beginning not earlier than the date on 
     which the report under section 10001(b)(2)(C) of the Food and 
     Energy Security Act of 2007 is submitted, the Secretary may 
     require the corporate officers or officially designated 
     representative of each packer processing plant to report to 
     the Secretary at least twice each reporting day (not less 
     than once before, and once after, 12:00 noon Central Time) 
     information on total pork products sales, including price and 
     volume information as specified by the Secretary.
       ``(2) Publication.--The Secretary shall make available to 
     the public any information required to be reported under 
     subparagraph (A) (including information on pork cuts and 
     retail-ready pork products) not less than twice each 
     reporting day.''.
       (2) Study and report.--
       (A) Study.--The Secretary shall conduct a study on the 
     effects of requiring packer processing plants to report to 
     the Secretary information on total pork products sales 
     (including price and volume information), including--
       (i) the positive or negative economic effects on producers 
     and consumers; and
       (ii) the effects of a confidentiality requirement on 
     mandatory reporting.
       (B) Information.--The Secretary may collect such 
     information as is necessary to enable the Secretary to 
     conduct the study required under subparagraph (A).
       (C) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report on the results of the study conducted under 
     subparagraph (A).
       (c) Publication of Information on Retail Purchase Prices 
     for Representative Meat Products.--Section 257(a) of the 
     Agricultural Marketing Act of 1946 (7 U.S.C. 1636f(a)) is 
     amended by inserting ``and continuing not less than each 
     month thereafter'' after ``this subtitle''.

[[Page 29340]]



     SEC. 10002. GRADING AND INSPECTION.

       (a) Grading.--Section 203 of the Agricultural Marketing Act 
     of 1946 (7 U.S.C. 1622) is amended--
       (1) by redesignating subsection (n) as subsection (o); and
       (2) by inserting after subsection (m) the following:
       ``(n) Grading Program.--To establish, within the 
     Agricultural Marketing Service, a voluntary grading program 
     for farm-raised animals described in section 10806(a)(1) of 
     the Farm Security and Rural Investment Act of 2002 (21 U.S.C. 
     321d(a)(1)).''.
       (b) Amenable Species.--Section 1(w) of the Federal Meat 
     Inspection Act (21 U.S.C. 601(w)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following:
       ``(2) farm-raised animals described in section 10806(a)(1) 
     of the Farm Security and Rural Investment Act of 2002 (21 
     U.S.C. 321d(a)(1)); and''.
       (c) Existing Activities.--The Secretary shall ensure, to 
     the maximum extent practicable, that nothing in an amendment 
     made by this section duplicates or impedes any of the food 
     safety activities conducted by the Department of Commerce or 
     the Food and Drug Administration.

     SEC. 10003. COUNTRY OF ORIGIN LABELING.

       Subtitle D of the Agricultural Marketing Act of 1946 (7 
     U.S.C. 1638 et seq.) is amended--
       (1) in section 281(2)(A)--
       (A) in clause (v), by striking ``and'';
       (B) in clause (vi), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(vii) meat produced from goats; and
       ``(viii) macadamia nuts.'';
       (2) in section 282--
       (A) in subsection (a), by striking paragraphs (2) and (3) 
     and inserting the following:
       ``(2) Designation of country of origin for beef, lamb, 
     pork, and goat meat.--
       ``(A) United states country of origin.--A retailer of a 
     covered commodity that is beef, lamb, pork, or goat meat may 
     designate the covered commodity as exclusively having a 
     United States country of origin only if the covered commodity 
     is derived from an animal that was--
       ``(i) exclusively born, raised, and slaughtered in the 
     United States;
       ``(ii) born and raised in Alaska or Hawaii and transported 
     for a period of not more than 60 days through Canada to the 
     United States and slaughtered in the United States; or
       ``(iii) present in the United States on or before January 
     1, 2008, and once present in the United States, remained 
     continuously in the United States.
       ``(B) Multiple countries of origin.--
       ``(i) In general.--A retailer of a covered commodity that 
     is beef, lamb, pork, or goat meat that is derived from an 
     animal that is--

       ``(I) not exclusively born, raised, and slaughtered in the 
     United States,
       ``(II) born, raised, or slaughtered in the United States, 
     and
       ``(III) not imported into the United States for immediate 
     slaughter,

     may designate the country of origin of such covered commodity 
     as all of the countries in which the animal may have been 
     born, raised, or slaughtered.
       ``(ii) Relation to general requirement.--Nothing in this 
     subparagraph alters the mandatory requirement to inform 
     consumers of the country of origin of covered commodities 
     under paragraph (1).
       ``(C) Imported for immediate slaughter.--A retailer of a 
     covered commodity that is beef, lamb, pork, or goat meat that 
     is derived from an animal that is imported into the United 
     States for immediate slaughter shall designate the origin of 
     such covered commodity as--
       ``(i) the country from which the animal was imported; and
       ``(ii) the United States.
       ``(D) Foreign country of origin.--A retailer of a covered 
     commodity that is beef, lamb, pork, or goat meat that is 
     derived from an animal that is not born, raised, or 
     slaughtered in the United States shall designate a country 
     other than the United States as the country of origin of such 
     commodity.
       ``(E) Ground beef, pork, lamb, and goat.--The notice of 
     country of origin for ground beef, ground pork, ground lamb, 
     or ground goat shall include--
       ``(i) a list of all countries of origin of such ground 
     beef, ground pork, ground lamb, or ground goat; or
       ``(ii) a list of all reasonably possible countries of 
     origin of such ground beef, ground pork, ground lamb, or 
     ground goat.
       ``(3) Designation of country of origin for fish.--
       ``(A) In general.--A retailer of a covered commodity that 
     is farm-raised fish or wild fish may designate the covered 
     commodity as having a United States country of origin only if 
     the covered commodity--
       ``(i) in the case of farm-raised fish, is hatched, raised, 
     harvested, and processed in the United States; and
       ``(ii) in the case of wild fish, is--

       ``(I) harvested in the United States, a territory of the 
     United States, or a State, or by a vessel that is documented 
     under chapter 121 of title 46, United States Code, or 
     registered in the United States; and
       ``(II) processed in the United States, a territory of the 
     United States, or a State, including the waters thereof.

       ``(B) Designation of wild fish and farm-raised fish.--The 
     notice of country of origin for wild fish and farm-raised 
     fish shall distinguish between wild fish and farm-raised 
     fish.
       ``(4) Designation of country of origin for perishable 
     agricultural commodities, peanuts, and macadamia nuts.--
       ``(A) In general.--A retailer of a covered commodity that 
     is a perishable agricultural commodity, peanut, or macadamia 
     nut may designate the covered commodity as having a United 
     States country of origin only if the covered commodity is 
     exclusively produced in the United States.
       ``(B) State, region, locality of the united states.--With 
     respect to a covered commodity that is a perishable 
     agricultural commodity produced exclusively in the United 
     States, designation by a retailer of the State, region, or 
     locality of the United States where such commodity was 
     produced shall be sufficient to identify the United States as 
     the country of origin.''; and
       (B) by striking subsection (d) and inserting the following:
       ``(d) Audit Verification System.--
       ``(1) In general.--The Secretary may conduct an audit of 
     any person that prepares, stores, handles, or distributes a 
     covered commodity for retail sale to verify compliance with 
     this subtitle (including the regulations promulgated under 
     section 284(b)).
       ``(2) Record requirements.--
       ``(A) In general.--A person subject to an audit under 
     paragraph (1) shall provide the Secretary with verification 
     of the country of origin of covered commodities. Records 
     maintained in the course of the normal conduct of the 
     business of such person, including animal health papers, 
     import or customs documents, or producer affidavits, may 
     serve as such verification.
       ``(B) Prohibition on requirement of additional records.--
     The Secretary may not require a person that prepares, stores, 
     handles, or distributes a covered commodity to maintain a 
     record of the country of origin of a covered commodity other 
     than those maintained in the course of the normal conduct of 
     the business of such person.'';
       (3) in section 283--
       (A) by striking subsections (a) and (c);
       (B) by redesignating subsection (b) as subsection (a);
       (C) in subsection (a) (as so redesignated), by striking 
     ``retailer'' and inserting ``retailer or person engaged in 
     the business of supplying a covered commodity to a 
     retailer''; and
       (D) by adding at the end the following new subsection:
       ``(b) Fines.--If, on completion of the 30-day period 
     described in subsection (a)(2), the Secretary determines that 
     the retailer or person engaged in the business of supplying a 
     covered commodity to a retailer has--
       ``(1) not made a good faith effort to comply with section 
     282, and
       ``(2) continues to willfully violate section 282 with 
     respect to the violation about which the retailer or person 
     received notification under subsection (a)(1),

     after providing notice and an opportunity for a hearing 
     before the Secretary with respect to the violation, the 
     Secretary may fine the retailer or person in an amount of not 
     more than $1,000 for each violation.''.

                Subtitle B--Agricultural Fair Practices

     SEC. 10101. DEFINITIONS.

       Section 3 of the Agricultural Fair Practices Act of 1967 (7 
     U.S.C. 2302) is amended--
       (1) by striking ``When used in this Act--'' and inserting 
     ``In this Act:'';
       (2) in subsection (a)--
       (A) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively; and
       (B) in subparagraph (D) (as so redesignated), by striking 
     ``clause (1), (2), or (3) of this paragraph'' and inserting 
     ``subparagraphs (A), (B), or (C)'';
       (3) by striking subsection (d);
       (4) by redesignating subsections (a), (b), (c), and (e) as 
     paragraphs (3), (4), (2), (1), respectively, indenting 
     appropriately, and moving those paragraphs so as to appear in 
     numerical order;
       (5) in each paragraph (as so redesignated) that does not 
     have a heading, by inserting a heading, in the same style as 
     the heading in the amendment made by paragraph (6), the text 
     of which is comprised of the term defined in the paragraph;
       (6) in paragraph (2) (as so redesignated)--
       (A) by striking ``The term `association of producers' 
     means'' and inserting the following:
       ``(2) Association of producers.--
       ``(A) In general.--The term `association of producers' 
     means''; and
       (B) by adding at the end the following:
       ``(B) Inclusion.--The term `association of producers' 
     includes an organization of agricultural producers dedicated 
     to promoting the common interest and general welfare of 
     producers of agricultural products.''; and
       (7) by adding at the end the following:
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.''.

[[Page 29341]]



     SEC. 10102. PROHIBITED PRACTICES.

       Section 4 of the Agricultural Fair Practices of 1967 (7 
     U.S.C. 2303) is amended--
       (1) by redesignating subsections (a), (b), (c), (d), (e), 
     and (f) as paragraphs (1), (2), (3), (4), (5), and (7), 
     respectively, and indenting appropriately;
       (2) in paragraph (1) (as so redesignated)--
       (A) by striking ``join and belong'' each place it appears 
     and inserting ``form, join, and belong''; and
       (B) by striking ``joining or belonging'' and inserting 
     ``forming, joining, or belonging''; and
       (3) by inserting after paragraph (5) (as so redesignated) 
     the following:
       ``(6) To fail to bargain in good faith with an association 
     of producers; or''.

     SEC. 10103. ENFORCEMENT.

       The Agricultural Fair Practices Act of 1967 is amended--
       (1) by striking sections 5 and 6 (7 U.S.C. 2304, 2305); and
       (2) by inserting after section 4 the following:

     ``SEC. 5. ENFORCEMENT.

       ``(a) Civil Actions by the Secretary Against Handlers.--In 
     any case in which the Secretary has reasonable cause to 
     believe that a handler or group of handlers has engaged in 
     any act or practice that violates this Act, the Secretary may 
     bring a civil action in United States district court by 
     filing a complaint requesting preventive relief, including an 
     application for a permanent or temporary injunction, 
     restraining order, or other order, against the handler.
       ``(b) Civil Actions Against Handlers.--
       ``(1) Preventive relief.--
       ``(A) In general.--In any case in which any handler has 
     engaged, or there are reasonable grounds to believe that any 
     handler is about to engage, in any act or practice prohibited 
     by this Act, a civil action for preventive relief, including 
     an application for a permanent or temporary injunction, 
     restraining order, or other order, may be instituted by the 
     person aggrieved in United States district court.
       ``(B) Security.--The court may provide that no restraining 
     order or preliminary injunction shall issue unless security 
     is provided by the applicant, in such sum as the court 
     determines to be appropriate, for the payment of such costs 
     and damages as may be incurred or suffered by any party that 
     is found to have been wrongfully enjoined or restrained.
       ``(2) Damages.--
       ``(A) In general.--Any person injured in the business or 
     property of the person by reason of any violation of, or 
     combination or conspiracy to violate, this Act may bring a 
     civil action in United States district court to recover--
       ``(i) damages sustained by the person as a result of the 
     violation; and
       ``(ii) any additional penalty that the court may allow, but 
     not more than $1,000 per violation.
       ``(B) Limitation on actions.--A civil action under 
     subparagraph (A) shall be barred unless commenced within 4 
     years after the cause of action accrues.
       ``(3) Attorneys' fees.--In any action commenced under 
     paragraph (1) or (2), any person that has violated this Act 
     shall be liable to any person injured as a result of the 
     violation for the full amount of the damages sustained as a 
     result of the violation, including costs of the litigation 
     and reasonable attorneys' fees.
       ``(c) Jurisdiction of District Courts.--The district courts 
     of the United States shall--
       ``(1) have jurisdiction of proceedings instituted pursuant 
     to this section; and
       ``(2) exercise that jurisdiction without regard to whether 
     the aggrieved party shall have exhausted any administrative 
     or other remedies that may be provided by law.
       ``(d) Liability for Acts of Agents.--In the construction 
     and enforcement of this Act, the act, omission, or failure of 
     any officer, agent, or person acting for or employed by any 
     other person within the scope of the employment or office of 
     the officer, agent, or person, shall be considered to be the 
     act, omission, or failure of the other person.
       ``(e) Relationship to State Law.--Nothing in this Act--
       ``(1) changes or modifies State law in effect on the date 
     of enactment of this subsection; or
       ``(2) deprives a State court of jurisdiction.''.

     SEC. 10104. RULES AND REGULATIONS.

       The Agricultural Fair Practices Act of 1967 is amended by 
     inserting after section 5 (as added by section 10103) the 
     following:

     ``SEC. 6. RULES AND REGULATIONS.

       ``The Secretary may promulgate such rules and regulations 
     as are necessary to carry out this Act, including rules or 
     regulations necessary to clarify what constitutes fair and 
     normal dealing for purposes of the selection of customers by 
     handlers.''.

                   Subtitle C--Packers and Stockyards

     SEC. 10201. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.

       (a) In General.--The Packers and Stockyards Act, 1921 (7 
     U.S.C. 181 et seq.) is amended--
       (1) by striking the title I heading and all that follows 
     through ``This Act'' and inserting the following:

                     ``TITLE I--GENERAL PROVISIONS

                       ``Subtitle A--Definitions

     ``SEC. 1. SHORT TITLE.

       ``This Act''; and
       (2) by inserting after section 2 (7 U.S.C. 183) the 
     following:

       ``Subtitle B--Special Counsel for Agricultural Competition

     ``SEC. 11. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.

       ``(a) Establishment.--
       ``(1) In general.--There is established within the 
     Department of Agriculture an office to be known as the 
     `Office of Special Counsel for Agricultural Competition' 
     (referred to in this section as the `Office').
       ``(2) Duties.--The Office shall--
       ``(A) have responsibility for all duties and functions of 
     the Packers and Stockyards programs of the Department of 
     Agriculture;
       ``(B) investigate and prosecute violations of this Act and 
     the Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et 
     seq.);
       ``(C) serve as a liaison between, and act in consultation 
     with, the Department of Agriculture, the Department of 
     Justice, and the Federal Trade Commission with respect to 
     competition and trade practices in the food and agricultural 
     sector; and
       ``(D) maintain a staff of attorneys and other professionals 
     with the appropriate expertise.
       ``(b) Special Counsel for Agricultural Competition.--
       ``(1) In general.--The Office shall be headed by the 
     Special Counsel for Agricultural Competition (referred to in 
     this section as the `Special Counsel'), who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       ``(2) Independence of special authority.--
       ``(A) In general.--The Special Counsel shall report to and 
     be under the general supervision of the Secretary.
       ``(B) Direction, control, and support.--The Special Counsel 
     shall be free from the direction and control of any person in 
     the Department of Agriculture other than the Secretary.
       ``(C) Prohibition on delegation.--The Secretary may not 
     delegate any duty described in subsection (a)(2) to any other 
     officer or employee of the Department other than the Special 
     Counsel.
       ``(D) Reporting requirement.--
       ``(i) In general.--Twice each year, the Special Counsel 
     shall submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that shall include, for 
     the relevant reporting period, a description of--

       ``(I) the number of complaints that the Special Counsel has 
     received and closed;
       ``(II)(aa) the number of investigations and civil and 
     administrative actions that the Special Counsel has 
     initiated, carried out, and completed, including the number 
     of notices given to regulated entities for violations of this 
     Act or the Agricultural Fair Practices Act of 1967 (7 U.S.C. 
     2301 et seq.);
       ``(bb) the number and types of decisions agreed to; and
       ``(cc) the number of stipulation agreements; and
       ``(III) the number of investigations and civil and 
     administrative actions that the Secretary objected to or 
     prohibited from being carried out, and the stated purpose of 
     the Secretary for each objection or prohibition.

       ``(ii) Requirement.--The basis for each complaint, 
     investigation, or civil or administrative action described in 
     a report under clause (i) shall--

       ``(I) be organized by species; and
       ``(II) indicate if the complaint, investigation, or civil 
     or administration action was for anti-competitive, unfair, or 
     deceptive practices under this Act or was a violation of the 
     Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et 
     seq.).

       ``(E) Removal.--
       ``(i) In general.--The Special Counsel may be removed from 
     office by the President.
       ``(ii) Communication.--The President shall communicate the 
     reasons for any such removal to both Houses of Congress.
       ``(3) Prosecutorial authority.--Subject to paragraph (4), 
     the Special Counsel may commence, defend, or intervene in, 
     and supervise the litigation of, any civil or administrative 
     action authorized under this Act or the Agricultural Fair 
     Practices Act of 1967 (7 U.S.C. 2301 et seq.).
       ``(4) Procedure for exercise of authority to litigate or 
     appeal.--
       ``(A) In general.--Prior to commencing, defending, or 
     intervening in any civil action under this Act or the 
     Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et 
     seq.), the Special Counsel shall give written notification 
     to, and attempt to consult with, the Attorney General with 
     respect to the proposed action.
       ``(B) Failure to respond.--If, not later than 45 days after 
     the date of provision of notification under subparagraph (A), 
     the Attorney General has failed to commence, defend, or 
     intervene in the proposed action, the Special Counsel may 
     commence, defend, or intervene in, and supervise the 
     litigation of, the action and any appeal of the action in the 
     name of the Special Counsel.

[[Page 29342]]

       ``(C) Authority of attorney general to intervene.--Nothing 
     in this paragraph precludes the Attorney General from 
     intervening on behalf of the United States in any civil 
     action under this Act or the Agricultural Fair Practices Act 
     of 1967 (7 U.S.C. 2301 et seq.), or in any appeal of such 
     action, as may be otherwise provided by law.
       ``(c) Relationship to Other Provisions.--Nothing in this 
     section modifies or otherwise effects subsections (a) and (b) 
     of section 406.''.
       (b) Conforming Amendment.--Section 5315 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Special Counsel for Agricultural Competition.''.

     SEC. 10202. INVESTIGATION OF LIVE POULTRY DEALERS.

       (a) Removal of Poultry Slaughter Requirement From 
     Definitions.--Section 2(a) of the Packers and Stockyards Act, 
     1921 (7 U.S.C. 182(a)), is amended--
       (1) by striking paragraph (8) and inserting the following:
       ``(8) Poultry grower.--
       ``(A) In general.--The term `poultry grower' means any 
     person engaged in the business of raising or caring for live 
     poultry under a poultry growing arrangement, regardless of 
     whether the poultry is owned by the person or by another 
     person.
       ``(B) Exclusion.--The term `poultry grower' does not 
     include an employee of the owner of live poultry described in 
     subparagraph (A).'';
       (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 
     accordance with the instructions of another person''; 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 the Packers and 
     Stockyards Act, 1921 (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 the Packers and Stockyards 
     Act, 1921 (7 U.S.C. 228a), is amended in the first sentence 
     by striking ``on account of poultry'' and inserting ``on 
     account of poultry or poultry care''.
       (d) Violations by Live Poultry Dealers.--
       (1) Penalty.--Section 203(b) of the Packers and Stockyards 
     Act, 1921 (7 U.S.C. 193(b)) is amended in the third sentence 
     by striking ``$10,000'' and inserting ``$22,000''.
       (2) Repeals.--Sections 411, 412, and 413 of the Packers and 
     Stockyards Act, 1921 (7 U.S.C. 228b-2, 228b-3, 228b-4)), are 
     repealed.

     SEC. 10203. PRODUCTION CONTRACTS.

       (a) Definitions.--Section 2(a) of the Packers and 
     Stockyards Act, 1921 (7 U.S.C. 182(a)) is amended--
       (1) by striking ``When used in this Act--'' and inserting 
     ``In this Act:'';
       (2) by striking paragraph (1);
       (3) by redesignating paragraphs (2), (3), (4), (5), (6), 
     (7), (8), (9), (10), (11), (12), (13), and (14) as paragraphs 
     (15), (6), (8), (9), (10), (13), (11), (12), (7), (2), (16), 
     (17), and (18), respectively, indenting appropriately, and 
     moving those paragraphs so as to appear in numerical order;
       (4) in each paragraph (as so redesignated) that does not 
     have a heading, by inserting a heading, in the same style as 
     the heading in the amendment made by paragraph (5), the text 
     of which is comprised of the term defined in the paragraph;
       (5) by inserting before paragraph (2) (as so designated) 
     the following:
       ``(1) Capital investment.--The term `capital investment' 
     means an investment in--
       ``(A) a structure, such as a building or manure storage 
     structure; or
       ``(B) machinery or equipment associated with producing 
     livestock or poultry that has a useful life of more than 1 
     year.'';
       (6) by inserting after paragraph (2) (as so redesignated) 
     the following:
       ``(3) Contractor.--
       ``(A) In general.--The term `contractor' means a person 
     that, in accordance with a production contract, obtains 
     livestock or poultry that is produced by a contract producer.
       ``(B) Inclusions.--The term `contractor' includes--
       ``(i) a live poultry dealer; and
       ``(ii) a swine contractor.
       ``(4) Contract producer.--
       ``(A) In general.--The term `contract producer' means a 
     producer that produces livestock or poultry under a 
     production contract.
       ``(B) Inclusions.--The term `contract producer' includes--
       ``(i) a poultry grower; and
       ``(ii) a swine production contract grower.
       ``(5) Investment requirement.--The term `investment 
     requirement' means--
       ``(A) a provision in a production contract that requires a 
     contract producer to make a capital investment associated 
     with producing livestock or poultry that, but for the 
     production contract, the contract producer would not have 
     made; or
       ``(B) a representation by a contractor that results in a 
     contract producer making a capital investment.''; and
       (7) by inserting after paragraph (13) (as so redesignated) 
     the following:
       ``(14) Production contract.--
       ``(A) In general.--The term `production contract' means a 
     written agreement that provides for--
       ``(i) the production of livestock or poultry by a contract 
     producer; or
       ``(ii) the provision of a management service relating to 
     the production of livestock or poultry by a contract 
     producer.
       ``(B) Inclusions.--The term `production contract' 
     includes--
       ``(i) a poultry growing arrangement;
       ``(ii) a swine production contract;
       ``(iii) any other contract between a contractor and a 
     contract producer for the production of livestock or poultry; 
     and
       ``(iv) a contract between a live poultry dealer and poultry 
     grower, swine contractor and swine production contract 
     grower, or contractor and contract producer for the provision 
     of a management service in the production of livestock or 
     poultry.''.
       (b) Prohibitions Involving Production Contracts.--Title II 
     of the Packers and Stockyards Act, 1921 (7 U.S.C. 198 et 
     seq.), is amended by adding at the end the following:

     ``SEC. 208. PRODUCTION CONTRACTS.

       ``(a) Right of Contract Producers to Cancel Production 
     Contracts.--
       ``(1) In general.--A contract producer may cancel a 
     production contract by mailing a cancellation notice to the 
     contractor not later than the later of--
       ``(A) the date that is 3 business days after the date on 
     which the production contract is executed; or
       ``(B) any cancellation date specified in the production 
     contract.
       ``(2) Disclosure.--A production contract shall clearly 
     disclose--
       ``(A) the right of the contract producer to cancel the 
     production contract;
       ``(B) the method by which the contract producer may cancel 
     the production contract; and
       ``(C) the deadline for canceling the production contract.
       ``(b) Production Contracts Involving Investment 
     Requirements.--
       ``(1) Applicability.--This subsection applies only to a 
     production contract between a contract producer and a 
     contractor if the contract producer detrimentally relied on a 
     representation by the contractor or a provision in the 
     production contract that resulted in the contract producer 
     making a capital investment of $100,000 or more.
       ``(2) Restrictions on contract termination.--
       ``(A) Notice of termination.--Except as provided in 
     subparagraph (C), a contractor shall not terminate or cancel 
     a production contract unless the contractor provides the 
     contract producer with written notice of the intention of the 
     contractor to terminate or cancel the production contract at 
     least 90 days before the effective date of the termination or 
     cancellation.
       ``(B) Requirements.--The written notice required under 
     subparagraph (A) shall include alleged causes of the 
     termination.
       ``(C) Exceptions.--A contractor may terminate or cancel a 
     production contract at any time without notice as required 
     under subparagraph (A) if the basis for the termination or 
     cancellation is--
       ``(i) a voluntary abandonment of the contractual 
     relationship by the contract producer, such as a failure of 
     the contract producer to substantially perform under the 
     production contract;
       ``(ii) the conviction of the contract producer of an 
     offense of fraud or theft committed against the contractor;
       ``(iii) the natural end of the production contract in 
     accordance with the terms of the production contract; or
       ``(iv) because the well-being of the livestock or poultry 
     subject to the contract is in jeopardy once under the care of 
     the contract producer.
       ``(D) Right to cure.--
       ``(i) In general.--If, not later than 90 days after the 
     date on which the contract producer receives written notice 
     under subparagraph (A), the contract producer remedies each 
     cause of the breach of contract alleged in the written 
     notice, the contractor may not terminate or cancel a 
     production contract under this paragraph.
       ``(ii) No admission of breach.--The remedy or attempt to 
     remedy the causes for the breach of contract by the contract 
     producer under clause (i) does not constitute an admission of 
     breach of contract.
       ``(c) Additional Capital Investments in Production 
     Contracts.--
       ``(1) In general.--A contractor shall not require a 
     contract producer to make additional capital investments in 
     connection with a production contract that exceed the initial 
     investment requirements of the production contract.
       ``(2) Exceptions.--Notwithstanding paragraph (1), a 
     contractor may require additional capital investments if--
       ``(A)(i) the additional capital investments are offset by 
     reasonable additional consideration, including compensation 
     or a modification to the terms of the production contract; 
     and
       ``(ii) the contract producer agrees in writing that there 
     is acceptable and satisfactory

[[Page 29343]]

     consideration for the additional capital investment; or
       ``(B) without the additional capital investments the well-
     being of the livestock or poultry subject to the contract 
     would be in jeopardy.
       ``(d) No Effect on State Law.--Nothing in this section 
     preempts or otherwise affects any State law relating to 
     production contracts that establishes a requirement or 
     standard that is more stringent than a requirement or 
     standard under this section.

     ``SEC. 209. CHOICE OF LAW, JURISDICTION, AND VENUE.

       ``(a) Choice of Law.--Any provision in a livestock or 
     poultry production or marketing contract requiring the 
     application of the law of a State other than the State in 
     which the production occurs is void and unenforceable.
       ``(b) Jurisdiction.--A packer, live poultry dealer, or 
     swine contractor that enters into a production or marketing 
     contract with a producer shall be subject to personal 
     jurisdiction in the State in which the production occurs.
       ``(c) Venue.--Venue shall be determined on the basis of the 
     location of the production, unless the producer selects a 
     venue that is otherwise permitted by law.
       ``(d) Application.--This section shall apply to any 
     production or marketing contract entered into, amended, 
     altered, modified, renewed, or extended after the date of 
     enactment of this section.

     ``SEC. 210. ARBITRATION.

       ``(a) In General.--If a livestock or poultry contract 
     provides for the use of arbitration to resolve a controversy 
     under the livestock or poultry contract, arbitration may be 
     used to settle the controversy only if, after the controversy 
     arises, both parties consent in writing to use arbitration to 
     settle the controversy.
       ``(b) Application.--Subsection (a) shall apply to any 
     contract entered into, amended, altered, modified, renewed, 
     or extended after the date of enactment of this section.''.

     SEC. 10204. RIGHT TO DISCUSS TERMS OF CONTRACT.

       Section 10503(b) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 229b(b)) is amended--
       (1) in paragraph (6), by striking ``or'' at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(8) a business associate of the party; or
       ``(9) a neighbor of the party or other producer.''.

     SEC. 10205. ATTORNEYS' FEES.

       Section 308(a) of the Packers and Stockyards Act, 1921 (7 
     U.S.C. 209(a)) is amended by inserting before the period at 
     the end the following: ``and for the costs of the litigation, 
     including reasonable attorneys' fees''.

     SEC. 10206. APPOINTMENT OF OUTSIDE COUNSEL.

       Section 407 of the Packers and Stockyards Act, 1921 (7 
     U.S.C. 228), is amended--
       (1) in subsection (a), by inserting ``obtain the services 
     of attorneys who are not employees of the Federal 
     Government,'' before ``and make such expenditures''; and
       (2) in subsection (c), by striking ``Senate Committee on 
     Agriculture and Forestry'' and inserting ``the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate''.

     SEC. 10207. PROHIBITION ON PACKERS OWNING, FEEDING, OR 
                   CONTROLLING LIVESTOCK.

       (a) In General.--Section 202 of the Packers and Stockyards 
     Act, 1921 (7 U.S.C. 192), is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following:
       ``(f) Own or feed livestock directly, through a subsidiary, 
     or through an arrangement that gives the packer operational, 
     managerial, or supervisory control over the livestock, or 
     over the farming operation that produces the livestock, to 
     such an extent that the producer is no longer materially 
     participating in the management of the operation with respect 
     to the production of the livestock, except that this 
     subsection shall not apply to--
       ``(1) an arrangement entered into within 14 days (excluding 
     any Saturday or Sunday) before slaughter of the livestock by 
     a packer, a person acting through the packer, or a person 
     that directly or indirectly controls, or is controlled by or 
     under common control with, the packer;
       ``(2) a cooperative or entity owned by a cooperative, if a 
     majority of the ownership interest in the cooperative is held 
     by active cooperative members that--
       ``(A) own, feed, or control livestock; and
       ``(B) provide the livestock to the cooperative for 
     slaughter;
       ``(3) a packer that is not required to report to the 
     Secretary on each reporting day (as defined in section 212 of 
     the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a)) 
     information on the price and quantity of livestock purchased 
     by the packer; or
       ``(4) a packer that owns 1 livestock processing plant; 
     or''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by subsection (a) take effect on the date of enactment 
     of this Act.
       (2) Transition rules.--In the case of a packer that on the 
     date of enactment of this Act owns, feeds, or controls 
     livestock intended for slaughter in violation of section 
     202(f) of the Packers and Stockyards Act, 1921 (as amended by 
     subsection (a)), the amendments made by subsection (a) apply 
     to the packer--
       (A) in the case of a packer of swine, beginning on the date 
     that is 18 months after the date of enactment of this Act; 
     and
       (B) in the case of a packer of any other type of livestock, 
     beginning as soon as practicable, but not later than 180 
     days, after the date of enactment of this Act, as determined 
     by the Secretary.

     SEC. 10208. REGULATIONS.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate regulations to implement the amendments made by 
     this title, including--
       (1) regulations providing a definition of the term 
     ``unreasonable preference or advantage'' for purposes of 
     section 202(b) of the Packers and Stockyards Act, 1921 (7 
     U.S.C. 192(b)); and
       (2) regulations requiring live poultry dealers to provide 
     written notice to poultry growers if the live poultry dealer 
     imposes an extended layout period in excess of 30 days, prior 
     to removal of the previous flock.
       (b) Requirements.--Regulations promulgated pursuant to 
     subsection (a)(1) relating to unreasonable preference or 
     advantage shall strictly prohibit any preferences or 
     advantages based on the volume of business, except for 
     preferences or advantages that reflect actual, verifiable 
     lower costs (including transportation or other costs), as 
     determined by the Secretary, of procuring livestock from 
     larger-volume producers.

                      Subtitle D--Related Programs

     SEC. 10301. SENSE OF CONGRESS REGARDING PSEUDORABIES 
                   ERADICATION PROGRAM.

       It is the sense of Congress that--
       (1) the Secretary should recognize the threat that feral 
     swine pose to the domestic swine population and the entire 
     livestock industry;
       (2) keeping the United States commercial swine herd free of 
     pseudorabies is essential to maintaining and growing pork 
     export markets;
       (3) pseudorabies surveillance funding is necessary to 
     assist the swine industry in the monitoring, surveillance, 
     and eradication of pseudorabies, including the monitoring and 
     surveillance of other diseases effecting swine production and 
     trade; and
       (4) pseudorabies eradication is a high priority that the 
     Secretary should carry out under the Animal Health Protection 
     Act (7 U.S.C. 8301 et seq.).

     SEC. 10302. SENSE OF CONGRESS REGARDING CATTLE FEVER TICK 
                   ERADICATION PROGRAM.

       It is the sense of Congress that--
       (1) the cattle fever tick and the southern cattle tick are 
     vectors of the causal agent of babesiosis, a severe and often 
     fatal disease of cattle; and
       (2) implementing a national strategic plan for the cattle 
     fever tick eradication program is a high priority that the 
     Secretary should carry out--
       (A) to prevent the entry of cattle fever ticks into the 
     United States;
       (B) to enhance and maintain an effective surveillance 
     program to rapidly detect any fever tick incursions; and
       (C) to research, identify, and procure the tools and 
     knowledge necessary to prevent and eradicate cattle ticks in 
     the United States.

     SEC. 10303. NATIONAL SHEEP AND GOAT INDUSTRY IMPROVEMENT 
                   CENTER.

       (a) Name Change.--Section 375 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2008j) is amended--
       (1) in the section heading, by inserting ``AND GOAT'' after 
     ``NATIONAL SHEEP''; and
       (2) by inserting ``and Goat'' after ``National Sheep'' each 
     place it appears.
       (b) Funding.--Section 375(e)(6) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 2008j(e)(6)) is amended 
     by striking subparagraphs (B) and (C) and inserting the 
     following:
       ``(B) Mandatory funding.--Of the funds of the Commodity 
     Credit Corporation, the Secretary shall use to carry out this 
     section $1,000,000 for fiscal year 2008, to remain available 
     until expended.
       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $10,000,000 for each of fiscal years 2008 through 2012.''.
       (c) Repeal of Requirement to Privatize Revolving Fund.--
       (1) In general.--Section 375 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2008j) is amended by striking 
     subsection (j).
       (2) Effective date.--The amendment made by paragraph (1) 
     takes effect on May 1, 2007.

     SEC. 10304. TRICHINAE CERTIFICATION PROGRAM.

       Section 10409 of the Animal Health Protection Act (7 U.S.C. 
     8308) is amended by adding at the end the following:
       ``(c) Trichinae Certification Program.--

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       ``(1) Establishment.--Not later than 60 days after the date 
     of enactment of this subsection, the Secretary shall issue 
     final regulations to implement a trichinae certification 
     program.
       ``(2) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out the program 
     $1,250,000 for each of fiscal years 2008 through 2012.''.

     SEC. 10305. PROTECTION OF INFORMATION IN THE ANIMAL 
                   IDENTIFICATION SYSTEM.

       The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is 
     amended--
       (1) by redesignating sections 10416 through 10418 as 
     sections 10417 through 10419, respectively; and
       (2) by inserting after section 10415 the following:

     ``SEC. 10416. DISCLOSURE OF INFORMATION UNDER A NATIONAL 
                   ANIMAL IDENTIFICATION SYSTEM.

       ``(a) Definition of National Animal Identification 
     System.--In this section, the term `national animal 
     identification system' means a system for identifying or 
     tracing animals that is established by the Secretary.
       ``(b) Protection From Disclosure.--
       ``(1) In general.--Information obtained through a national 
     animal identification system shall not be disclosed except as 
     provided in this section.
       ``(2) Use.--Use of information described in paragraph (1) 
     by any individual or entity except as otherwise provided in 
     this section shall be considered a violation of this Act.
       ``(3) Waiver of privilege of protection.--The provision of 
     information to a national animal identification system under 
     this section or the disclosure of information pursuant to 
     this section shall not constitute a waiver of any applicable 
     privilege or protection under Federal law, including 
     protection of trade secrets.
       ``(c) Limited Release of Information.--The Secretary may 
     disclose information obtained through a national animal 
     identification system if--
       ``(1) the Secretary determines that livestock may be 
     threatened by a disease or pest;
       ``(2) the release of the information is related to an 
     action the Secretary may take under this subtitle; and
       ``(3) the Secretary determines that the disclosure of the 
     information to a government entity or person is necessary to 
     assist the Secretary in carrying out this subtitle or a 
     national animal identification system.
       ``(d) Required Disclosure of Information.--The Secretary 
     shall disclose information obtained through a national animal 
     identification system regarding particular animals to--
       ``(1) the person that owns or controls the animals, if the 
     person requests the information in writing;
       ``(2) the State Department of Agriculture for the purpose 
     of protection of animal health;
       ``(3) the Attorney General for the purpose of law 
     enforcement;
       ``(4) the Secretary of Homeland Security for the purpose of 
     homeland security;
       ``(5) the Secretary of Health and Human Services for the 
     purpose of protecting public health;
       ``(6) an entity pursuant to an order of a court of 
     competent jurisdiction; and
       ``(7) the government of a foreign country if disclosure of 
     the information is necessary to trace animals that pose a 
     disease or pest threat to livestock or a danger to human 
     health, as determined by the Secretary.
       ``(e) Disclosure Under State or Local Law.--Any information 
     relating to animal identification that a State or local 
     government obtains from the Secretary shall not be made 
     available by the State or local government pursuant to any 
     State or local law requiring disclosure of information or 
     records to the public.
       ``(f) Reporting Requirement.--To disclose information under 
     this section, the Secretary shall--
       ``(1) certify that the disclosure was necessary under this 
     section; and
       ``(2) submit to the Committee on Agriculture of the House 
     of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a copy of the 
     certification.''.

     SEC. 10306. LOW PATHOGENIC AVIAN INFLUENZA.

       Sec. 10407(d)(2) of the Animal Health Protection Act (7 
     U.S.C. 8306(d)(2)) is amended--
       (1) in subparagraph (A), by striking ``subparagraphs (B) 
     and (C),'' and inserting ``subparagraphs (B), (C), and 
     (D),'';
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following:
       ``(C) Low pathogenic avian influenza.--
       ``(i) Definition of eligible costs.--In this subparagraph, 
     the term `eligible costs' means costs determined eligible for 
     indemnity under part 56 of title 9, Code of Federal 
     Regulations, as in effect on the date of enactment of this 
     clause.
       ``(ii) Indemnities.--Subject to subparagraphs (B) and (D), 
     compensation to any owner or contract grower of poultry 
     participating in the voluntary control program for low 
     pathogenic avian influenza under the National Poultry 
     Improvement Plan, and payments to cooperating State agencies, 
     shall be made in an amount equal to 100 percent of the 
     eligible costs.''.

     SEC. 10307. STUDY ON BIOENERGY OPERATIONS.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary, acting through the Office of the Chief 
     Economist, 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 potential economic issues (including potential 
     costs) associated with animal manure used in normal 
     agricultural operations and as a feedstock in bioenergy 
     production.

     SEC. 10308. SENSE OF THE SENATE ON INDEMNIFICATION OF 
                   LIVESTOCK PRODUCERS.

       It is the sense of the Senate that the Secretary should 
     partner with the private insurance industry to implement an 
     approach for expediting the indemnification of livestock 
     producers in the case of catastrophic disease outbreaks.

                        TITLE XI--MISCELLANEOUS

                   Subtitle A--Agricultural Security

     SEC. 11011. DEFINITIONS.

       In this subtitle:
       (1) Agent.--The term ``agent'' means a nuclear, biological, 
     or chemical substance that causes an agricultural disease.
       (2) Agricultural biosecurity.--The term ``agricultural 
     biosecurity'' means protection from an agent that poses a 
     threat to--
       (A) plant or animal health;
       (B) public health, with respect to direct exposure to an 
     agricultural disease; or
       (C) the environment, with respect to agriculture 
     facilities, farmland, air, and water in the immediate 
     vicinity of an area associated with an agricultural disease 
     or outbreak.
       (3) Agricultural countermeasure.--
       (A) In general.--The term ``agricultural countermeasure'' 
     means a product, practice, or technology that is intended to 
     enhance or maintain the agricultural biosecurity of the 
     United States.
       (B) Exclusions.--The term ``agricultural countermeasure'' 
     does not include any product, practice, or technology used 
     solely for human medical incidents or public health 
     emergencies not related to agriculture.
       (4) Agricultural disease.--The term ``agricultural 
     disease'' has the meaning given the term by the Secretary.
       (5) Agricultural disease emergency.--The term 
     ``agricultural disease emergency'' means an incident of 
     agricultural disease in which the Secretary, the Secretary of 
     Homeland Security, the Secretary of Health and Human 
     Services, the Administrator of the Environmental Protection 
     Agency (or the heads of other applicable Federal departments 
     or agencies), as appropriate, determines that prompt action 
     is needed to prevent significant damage to people, plants, or 
     animals.
       (6) Agriculture.--The term ``agriculture'' means--
       (A) the science and practice of activities relating to 
     food, feed, fiber, and energy production, processing, 
     marketing, distribution, use, and trade;
       (B) nutrition, food science and engineering, and 
     agricultural economics;
       (C) forestry, wildlife science, fishery science, 
     aquaculture, floriculture, veterinary medicine, and other 
     related natural resource sciences; and
       (D) research and development activities relating to plant- 
     and animal-based products.
       (7) Agroterrorist act.--The term ``agroterrorist act'' 
     means an act that--
       (A) causes or attempts to cause--
       (i) damage to agriculture; or
       (ii) injury to a person associated with agriculture; and
       (B) is committed--
       (i) to intimidate or coerce; or
       (ii) to disrupt the agricultural industry.
       (8) Animal.--The term ``animal'' means any member of the 
     animal kingdom (except a human).
       (9) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (10) Development.--The term ``development'' means--
       (A) research leading to the identification of products or 
     technologies intended for use as agricultural 
     countermeasures;
       (B) the formulation, production, and subsequent 
     modification of those products or technologies;
       (C) the conduct of preclinical and clinical studies;
       (D) the conduct of field, efficacy, and safety studies;
       (E) the preparation of an application for marketing 
     approval for submission to applicable agencies; and
       (F) other actions taken by an applicable agency in a case 
     in which an agricultural countermeasure is procured or used 
     prior to issuance of a license or other form of approval.
       (11) Director.--The term ``Director'' means the Director 
     for Homeland Security of the Department appointed under 
     section 11022(d)(2).
       (12) HSPD-5.--The term ``HSPD-5'' means the Homeland 
     Security Presidential Directive 5, dated February 28, 2003 
     (relating to a comprehensive national incident management 
     system).
       (13) HSPD-7.--The term ``HSPD-7'' means the Homeland 
     Security Presidential Directive 7, dated December 17, 2003 
     (relating to a

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     national policy for Federal departments and agencies to 
     identify and prioritize critical infrastructure and key 
     resources and to protect the infrastructure and resources 
     from terrorist attacks).
       (14) HSPD-8.--The term ``HSPD-8'' means the Homeland 
     Security Presidential Directive 8, dated December 17, 2003 
     (relating to the establishment of a national policy to 
     strengthen the preparedness of the United States to prevent 
     and respond to domestic terrorist attacks, major disasters, 
     and other emergencies).
       (15) HSPD-9.--The term ``HSPD-9'' means the Homeland 
     Security Presidential Directive 9, dated January 30, 2004 
     (relating to the establishment of a national policy to defend 
     the agriculture and food system against terrorist attacks, 
     major disasters, and other emergencies).
       (16) HSPD-10.--The term ``HSPD-10'' means the Homeland 
     Security Presidential Directive 10, dated April 28, 2004 
     (relating to the establishment of a national policy relating 
     to the biodefense of the United States).
       (17) Office.--The term ``Office'' means the Office of 
     Homeland Security of the Department established by section 
     11022(d)(1).
       (18) Other applicable federal departments or agencies.--The 
     term ``other applicable Federal departments or agencies'' 
     means Federal departments or agencies that have a role, as 
     determined by the Secretary of Homeland Security, in 
     determining the need for prompt action against an 
     agricultural disease emergency, including--
       (A) the Executive departments identified in section 101 of 
     title 5, United States Code;
       (B) government corporations (as defined in section 103 of 
     title 5, United States Code); and
       (C) independent establishments (as defined in section 
     104(1) of title 5, United States Code).
       (19) Plant.--
       (A) In general.--The term ``plant'' means any plant 
     (including any plant part) for or capable of propagation.
       (B) Inclusions.--The term ``plant'' includes--
       (i) a tree;
       (ii) a tissue culture;
       (iii) a plantlet culture;
       (iv) pollen;
       (v) a shrub;
       (vi) a vine;
       (vii) a cutting;
       (viii) a graft;
       (ix) a scion;
       (x) a bud;
       (xi) a bulb;
       (xii) a root; and
       (xiii) a seed.
       (20) Qualified agricultural countermeasure.--The term 
     ``qualified agricultural countermeasure'' means an 
     agricultural countermeasure that the Secretary, in 
     consultation with the Secretary of Homeland Security, 
     determines to be a priority in order to address an 
     agricultural biosecurity threat from--
       (A) an agent placed on the Select Agents and Toxins list of 
     the Department;
       (B) an agent placed on the Plant Protection and Quarantine 
     Select Agents and Toxins list of the Department; or
       (C) an applicable agent placed on the Overlap Select Agents 
     and Toxins list of the Department and the Department of 
     Health and Human Services, in accordance with--
       (i) part 331 of title 7, Code of Federal Regulations; and
       (ii) part 121 of title 9, Code of Federal Regulations.
       (21) Routine agricultural disease event.--The term 
     ``routine agricultural disease event'' has the meaning given 
     the term by the Secretary.

         PART I--GENERAL AUTHORITY AND INTERAGENCY COORDINATION

     SEC. 11021. POLICY.

       (a) Effect of Part.--Nothing in this part alters or 
     otherwise impedes--
       (1) any authority of the Department or other applicable 
     Federal departments and agencies to perform the 
     responsibilities provided to the Department or other 
     applicable Federal departments and agencies pursuant to 
     Federal law; or
       (2) the ability of the Secretary to carry out this part.
       (b) Cooperation.--The Secretary shall cooperate with the 
     Secretary of Homeland Security with respect to the 
     responsibilities of the Secretary of Homeland Security and 
     applicable presidential guidance, including HSPD-5, HSPD-7, 
     HSPD-8, HSPD-9, and HSPD-10.

     SEC. 11022. INTERAGENCY COORDINATION.

       (a) Leadership.--The Secretary of Homeland Security shall 
     serve as the principal Federal official to lead, coordinate, 
     and integrate, to the maximum extent practicable, efforts by 
     Federal departments and agencies, State, local, and tribal 
     governments, and the private sector to enhance the protection 
     of critical infrastructure and key resources of the 
     agriculture and food system.
       (b) Sector-Specific Agency.--
       (1) In general.--In accordance with guidance provided by 
     the Secretary of Homeland Security under subsection (a)--
       (A) the Secretary shall serve as the sector-specific lead 
     official on efforts described in subsection (a) relating to 
     agriculture, agricultural disease, meat, poultry, and egg 
     food products, and for efforts relating to authorities 
     pursuant to the Animal Health Protection Act (7 U.S.C. 8301 
     et seq.) and the Plant Protection Act (7 U.S.C. 7701 et 
     seq.); and
       (B) the Secretary shall work in coordination with the 
     Secretary of Health and Human Services during any incident 
     relating to a zoonotic disease in which the applicable agent 
     originated--
       (i) as an agricultural disease; or
       (ii) from a plant or animal population directly related to 
     agriculture.
       (2) Effect of subsection.--Nothing in this subsection 
     impedes any authority of the Secretary of Homeland Security 
     as the principal Federal official for domestic incident 
     management pursuant to HSPD-5.
       (c) Coordination of Response.--
       (1) Routine agricultural disease events.--To the maximum 
     extent practicable, the Secretary shall work in consultation 
     with the Secretary of Homeland Security in response to any 
     routine domestic incident relating to a potential or actual 
     agricultural disease.
       (2) Agricultural biosecurity threats.--If a routine 
     domestic incident of agricultural disease is determined by 
     the Secretary or the Secretary of Homeland Security to pose a 
     significant threat to the agricultural biosecurity of the 
     United States, the Secretary of Homeland Security shall serve 
     as the principal Federal official to lead and coordinate the 
     appropriate Federal response to the incident.
       (d) Office of Homeland Security.--
       (1) Establishment.--There is established in the Department 
     the Office of Homeland Security.
       (2) Director.--The Secretary shall appoint as the head of 
     the Office a Director for Homeland Security.
       (3) Responsibilities.--The Director shall be responsible 
     for--
       (A) coordinating all homeland security activities of the 
     Department, including integration and coordination, in 
     consultation with the Office of Emergency Management and 
     Homeland Security of the Animal and Plant Health Inspection 
     Service and the Office of Food Defense and Emergency Response 
     of the Food Safety and Inspection Service, of interagency 
     emergency response plans for--
       (i) agricultural disease emergencies;
       (ii) agroterrorist acts; or
       (iii) other threats to agricultural biosecurity;
       (B) acting as the primary liaison on behalf of the 
     Department with other Federal agencies on coordination 
     efforts and interagency activities pertaining to agricultural 
     biosecurity;
       (C) advising the Secretary on policies, regulations, 
     processes, budget, and actions pertaining to homeland 
     security; and
       (D) providing to State and local government officials 
     timely updates and actionable information about threats, 
     incidents, potential protective measures, and best practices 
     relevant to homeland security issues in agriculture.
       (4) Agricultural biosecurity communication center.--
       (A) Establishment.--The Secretary shall establish in the 
     Department a central communication center--
       (i) to collect and disseminate information regarding, and 
     prepare for, agricultural disease emergencies, agroterrorist 
     acts, and other threats to agricultural biosecurity; and
       (ii) to coordinate the activities described in clause (i) 
     among agencies and offices within the Department.
       (B) Response.--Any response by the Secretary to an 
     agricultural threat to agricultural biosecurity shall be 
     carried out under the direction of the Secretary of Homeland 
     Security, in accordance with subsection (c).
       (C) Authority of the secretary.--In establishing the 
     central communication center under subparagraph (A), the 
     Secretary may use the existing resources and infrastructure 
     of the Emergency Operations Center of the Animal and Plant 
     Health Inspection Service located in Riverdale, Maryland.
       (D) Relation to existing department of homeland security 
     communication systems.--
       (i) Consistency and coordination.--The center established 
     under subparagraph (A) shall, to the maximum extent 
     practicable, share and coordinate the dissemination of timely 
     information with--

       (I) the National Operations Center and the National 
     Coordinating Center of the Department of Homeland Security; 
     and
       (II) other appropriate Federal communication systems, as 
     determined by the Secretary of Homeland Security.

       (ii) Avoiding redundancies.--Nothing in this paragraph 
     impedes, conflicts with, or duplicates any activity carried 
     out by--

       (I) the National Biosurveillance Integration Center of the 
     Department of Homeland Security;
       (II) the National Response Coordination Center of the 
     Department of Homeland Security;
       (III) the National Infrastructure Coordination Center of 
     the Department of Homeland Security; or
       (IV) any other communication system under the authority of 
     the Secretary of Homeland Security.

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       (E) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary to carry out this subsection for each of fiscal 
     years 2008 through 2012.

     SEC. 11023. SUBMISSION OF INTEGRATED FOOD DEFENSE PLAN.

       Consistent with HSPD-9, the Secretary, the Secretary of 
     Homeland Security, and the Secretary of Health and Human 
     Services shall submit to the President and Congress an 
     integrated plan for the defense of the food system of the 
     United States.

     SEC. 11024. TRANSFER OF CERTAIN AGRICULTURAL INSPECTION 
                   FUNCTIONS OF DEPARTMENT.

       (a) Definition of Function.--In this section, the term 
     ``function'' does not include any quarantine activity carried 
     out under the laws specified in subsection (c).
       (b) Transfer of Agricultural Import and Entry Inspection 
     Functions.--There shall be transferred to the Secretary of 
     Homeland Security the functions of the Secretary relating to 
     agricultural import and entry inspection activities under the 
     laws specified in subsection (c).
       (c) Covered Animal and Plant Protection Laws.--The laws 
     referred to in subsection (a) are the following:
       (1) The eighth paragraph under the heading ``Bureau of 
     animal industry'' in the Act of March 4, 1913 (commonly known 
     as the ``Virus-Serum-Toxin Act'') (21 U.S.C. 151 et seq.).
       (2) Section 1 of the Act of August 31, 1922 (commonly known 
     as the ``Honeybee Act'') (7 U.S.C. 281).
       (3) Title III of the Federal Seed Act (7 U.S.C. 1581 et 
     seq.).
       (4) The Plant Protection Act (7 U.S.C. 7701 et seq.).
       (5) The Animal Health Protection Act (7 U.S.C. 8301 et 
     seq.).
       (6) The Lacey Act Amendments of 1981 (16 U.S.C. 3371 et 
     seq.).
       (7) Section 11 of the Endangered Species Act of 1973 (16 
     U.S.C. 1540).
       (d) Coordination of Regulations.--
       (1) Compliance with department regulations.--The authority 
     transferred pursuant to subsection (b) shall be exercised by 
     the Secretary of Homeland Security in accordance with the 
     regulations, policies, and procedures issued by the Secretary 
     regarding the administration of the laws specified in 
     subsection (c).
       (2) Rulemaking coordination.--The Secretary shall 
     coordinate with the Secretary of Homeland Security in any 
     case in which the Secretary prescribes regulations, policies, 
     or procedures for administering the functions transferred 
     under subsection (b) under a law specified in subsection (c).
       (3) Effective administration.--The Secretary of Homeland 
     Security, in consultation with the Secretary, may issue such 
     directives and guidelines as are necessary to ensure the 
     effective use of personnel of the Department of Homeland 
     Security to carry out the functions transferred pursuant to 
     subsection (b).
       (e) Transfer Agreement.--
       (1) Agreement.--
       (A) In general.--Before the end of the transition period 
     (as defined in section 1501 of the Homeland Security Act of 
     2002 (6 U.S.C. 541)), the Secretary and the Secretary of 
     Homeland Security shall enter into an agreement to effectuate 
     the transfer of functions required by subsection (b).
       (B) Revision.--The Secretary and the Secretary of Homeland 
     Security may jointly revise the agreement as necessary after 
     that transition period.
       (2) Required terms.--The agreement required by this 
     subsection shall specifically address the following:
       (A) The supervision by the Secretary of the training of 
     employees of the Secretary of Homeland Security to carry out 
     the functions transferred pursuant to subsection (b).
       (B) The transfer of funds to the Secretary of Homeland 
     Security under subsection (f).
       (3) Cooperation and reciprocity.--The Secretary and the 
     Secretary of Homeland Security may include as part of the 
     agreement the following:
       (A) Authority for the Secretary of Homeland Security to 
     perform functions delegated to the Animal and Plant Health 
     Inspection Service of the Department regarding the protection 
     of domestic livestock and plants, but not transferred to the 
     Secretary of Homeland Security pursuant to subsection (b).
       (B) Authority for the Secretary to use employees of the 
     Department of Homeland Security to carry out authorities 
     delegated to the Animal and Plant Health Inspection Service 
     regarding the protection of domestic livestock and plants.
       (f) Periodic Transfer of Funds to Department of Homeland 
     Security.--
       (1) Transfer of funds.--Out of funds collected by fees 
     authorized under sections 2508 and 2509 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C. 
     136, 136a), the Secretary shall transfer, from time to time 
     in accordance with the agreement under subsection (e), to the 
     Secretary of Homeland Security funds for activities carried 
     out by the Secretary of Homeland Security for which the fees 
     were collected.
       (2) Limitation.--The proportion of fees collected pursuant 
     to those sections that are transferred to the Secretary of 
     Homeland Security under this subsection may not exceed the 
     proportion of the costs incurred by the Secretary of Homeland 
     Security to all costs incurred to carry out activities funded 
     by the fees.
       (g) Transfer of Department Employees.--Not later than the 
     completion of the transition period (as defined in section 
     1501 of the Homeland Security Act of 2002 (6 U.S.C. 541)), 
     the Secretary shall transfer to the Secretary of Homeland 
     Security not more than 3,200 full-time equivalent positions 
     of the Department.
       (h) Effect of Transfer.--
       (1) Existing authority.--Nothing in the transfer of 
     functions under subsection (b) preempts any authority of the 
     Department as described in section 11022(b)(1).
       (2) Limitation on transfer.--
       (A) Imports.--The Secretary shall retain responsibility for 
     all other activities of the Agricultural Quarantine and 
     Inspection Program regarding imports, including activities 
     relating to--
       (i) preclearance of commodities;
       (ii) trade protocol verification;
       (iii) fumigation;
       (iv) quarantine;
       (v) diagnosis;
       (vi) eradication;
       (vii) indemnification; and
       (viii) other sanitary and phytosanitary measures carried 
     out pursuant to the Animal Health Protection Act (7 U.S.C. 
     8301 et seq.) and the Plant Protection Act (7 U.S.C. 7701 et 
     seq.).
       (B) Export, interstate, and intrastate activities.--The 
     Department shall retain responsibility for all functions 
     regarding export, interstate, and intrastate activities.
       (C) Training.--The Department shall retain responsibility 
     for all agricultural inspection training.
       (i) Conforming Amendment.--Section 421 of the Homeland 
     Security Act of 2002 (6 U.S.C. 231) is amended by striking 
     ``sec. 421'' and all that follows through ``(h) Protection of 
     Inspection Animals.--Title V'' and inserting the following:

     ``SEC. 421. PROTECTION OF INSPECTION ANIMALS.

       ``Title V''.

    PART II--AGRICULTURAL QUARANTINE INSPECTION PROGRAM IMPROVEMENT

     SEC. 11031. DEFINITIONS.

       In this part:
       (1) Program.--The term ``program'' means the agricultural 
     quarantine inspection program.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, acting through the Administrator of the 
     Animal and Plant Health Inspection Service.

     SEC. 11032. JOINT TASK FORCE.

       (a) Establishment.--Not later than 30 days after the date 
     of enactment of this Act, the Secretary and the Secretary of 
     Homeland Security shall establish a Joint Task Force to 
     provide coordinated central planning for the program.
       (b) Composition.--The Joint Task Force shall be composed of 
     employees of the Animal and Plant Health Inspection Service 
     and Customs and Border Protection of the Department of 
     Homeland Security, appointed by the Secretary and the 
     Secretary of Homeland Security, respectively.
       (c) Duties.--The Joint Task Force shall--
       (1) prepare, and not less than biannually revise as 
     necessary, a strategic plan for the program;
       (2) establish performance measures that accurately gauge 
     the success of the program;
       (3) establish annual operating goals and plans for the 
     program at national, regional, and port levels;
       (4) establish and regularly revise as necessary a training 
     program to ensure that all employees of Customs and Border 
     Protection involved in agricultural inspection and quarantine 
     activities have the skills, knowledge, and abilities 
     necessary to protect the agricultural biosecurity of the 
     United States;
       (5) ensure effective and regular communications with all 
     stakeholders under the program;
       (6) maintain effective and regular communication between 
     the Animal and Plant Health Inspection Service and Customs 
     and Border Protection in carrying out the program;
       (7) establish and carry out mechanisms to collect data to 
     inform program planning and decisionmaking under the program;
       (8) ensure access for employees of the Animal and Plant 
     Health Inspection Service who, as determined by the 
     Secretary, in consultation with the Secretary of Homeland 
     Security--
       (A) have met all applicable Customs and Border Protection 
     security-related requirements; and
       (B) to adequately perform the duties of the employees, 
     require access to--
       (i) each secure area of any terminal for screening 
     passengers or cargo; and
       (ii) each database relating to cargo manifests or any 
     databases that may relate to the program;
       (9) ensure the ability of the program to operate in case of 
     emergencies; and
       (10) establish a quality assurance program for the program, 
     with performance standards and regular reviews of each port 
     of entry to determine compliance with the quality standards.

[[Page 29347]]



     SEC. 11033. ADVISORY BOARD.

       (a) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary and the Secretary of 
     Homeland Security shall establish a board to be known as the 
     ``Agricultural Quarantine Inspection Program Advisory Board'' 
     (referred to in this section as the ``Advisory Board'').
       (b) Membership.--
       (1) In general.--The Advisory Board shall consist of 11 
     members representing the Federal Government, State 
     governments, and stakeholders, including--
       (A) 2 members representing the Department, appointed by the 
     Secretary, who shall serve as cochairperson of the Advisory 
     Board;
       (B) 1 member representing the Department of Homeland 
     Security, appointed by the Secretary of Homeland Security, 
     who shall serve as cochairperson of the Advisory Board;
       (C) 1 member representing Customs and Border Protection 
     agriculture specialists, appointed by the Secretary of 
     Homeland Security, who shall serve as cochairperson of the 
     Advisory Board;
       (D) 1 member representing the National Plant Board, 
     appointed by the Secretary based on nominations submitted by 
     the Board;
       (E) 1 member representing the United States Animal Health 
     Association, appointed by the Secretary based on 1 or more 
     nominations submitted by the Association;
       (F) 1 member representing the National Association of State 
     Departments of Agriculture, appointed by the Secretary based 
     on 1 or more nominations submitted by the Association;
       (G) 2 members representing stakeholders of organizations, 
     associations, societies, councils, federations, groups, and 
     companies, appointed by the Secretary from 2 or more 
     nominations submitted by the stakeholders; and
       (H) 2 members representing stakeholders of organizations, 
     associations, societies, councils, federations, groups, and 
     companies, appointed by the Secretary of Homeland Security 
     from 2 or more nominations submitted by the stakeholders.
       (2) Terms of service.--The term of a member of the Advisory 
     Board shall be 2 years, except that, of the members initially 
     appointed to the Board, the term of \1/2\ of the members (as 
     determined jointly by the Secretary and the Secretary of 
     Homeland Security) shall be 1 year.
       (c) Duties.--The Advisory Board shall--
       (1) advise the Secretary and the Secretary of Homeland 
     Security--
       (A) on policies and other issues related to the mission of 
     the program; and
       (B) on appropriate mechanisms to ensure that interested 
     stakeholders in the agriculture industry, State and local 
     governments, and the general public have formal opportunities 
     to provide comments on the program; and
       (2) in the case of the cochairpersons of the Advisory 
     Board--
       (A) coordinate the advice and concerns of the members of 
     the Advisory Board; and
       (B) at least twice a year, submit the views of the Advisory 
     Board to the Secretary and the Secretary of Homeland 
     Security.
       (d) Meetings.--The meetings of the Advisory Board shall 
     take place at least twice a year, with the option of 
     conducting the meetings in Washington, District of Columbia, 
     and a Customs and Border Protection port on an alternating 
     basis.

     SEC. 11034. REPORTS TO CONGRESS.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, and annually thereafter through 
     September 30, 2012, the Administrator of the Animal and Plant 
     Health Inspection Service and the Commissioner of Customs and 
     Border Protection, shall jointly submit to the committees 
     described in subsection (b) a report on--
       (1) the resource needs for import and entry agricultural 
     inspections, including the number of inspectors required;
       (2) the adequacy of inspection and monitoring procedures 
     and facilities in the United States;
       (3) new and emerging technologies and practices, including 
     recommendations regarding the technologies and practices, to 
     improve import and entry agricultural inspections; and
       (4) questions or concerns raised by the Joint Task Force 
     established under section 11032 and by the Agricultural 
     Quarantine Inspection Program Advisory Board established 
     under section 11033.
       (b) Committees.--The Secretary and the Secretary of 
     Homeland Security shall jointly submit the report required 
     under subsection (a) to--
       (1) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate;
       (2) the Committee on Agriculture of the House of 
     Representatives;
       (3) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (4) the Committee on Homeland Security of the House of 
     Representatives.
       (c) Satisfaction of Requirement.--The Administrator of the 
     Animal and Plant Health Inspection Service and the 
     Commissioner of Customs and Border Protection may satisfy the 
     reporting requirement described in subsection (a) by 
     submitting to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a copy of each relevant provision 
     relating to appropriations or authorization requests for the 
     applicable fiscal year.

     SEC. 11035. PORT RISK COMMITTEES.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary and the Secretary of 
     Homeland Security shall jointly create Port Risk Committees 
     to service the agriculture mission for each port of entry 
     into the United States that the Secretary of Homeland 
     Security, in consultation with the Secretary, determines to 
     be appropriate.
       (b) Membership.--Each Committee may include representatives 
     from--
       (1) the Animal and Plant Health Inspection Service, 
     appointed by the Secretary;
       (2) Customs and Border Protection, appointed by the 
     Secretary of Homeland Security;
       (3) the Department of Health and Human Services, appointed 
     by the Secretary of Health and Human Services;
       (4) State and local governments, appointed jointly by the 
     Secretary, the Secretary of Homeland Security, and the 
     Secretary of Health and Human Services; and
       (5) other stakeholders, appointed jointly by the Secretary, 
     the Secretary of Homeland Security, and the Secretary of 
     Health and Human Services, who shall--
       (A) act as nonvoting members of the Committee; and
       (B) only observe and provide information and comments with 
     respect to activities of the Committee.
       (c) Duties.--Each Committee shall examine issues affecting 
     the local port of entry of the Committee to determine actions 
     necessary to mitigate risks of threats to the agricultural 
     biosecurity of the United States.
       (d) Report.--The Committees shall report regularly to 
     regional-level officials of the Animal and Plant Health 
     Inspection Service and to field office officials of Customs 
     and Border Protection.

     SEC. 11036. EMERGENCY RESPONSE PLANNING AT PORTS OF ENTRY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary and the Secretary of 
     Homeland Security shall develop a comprehensive plan to 
     identify and deploy trained and certified personnel in 
     emergency response activities.
       (b) Plan.--The plan shall include a strategy for rapid 
     identification and deployment of resources and a standard 
     operating procedure to implement when significant 
     agricultural pests and diseases are detected at ports of 
     entry.
       (c) Continuity of Operations Plans.--The Secretary and the 
     Secretary of Homeland Security, acting through Customs and 
     Border Protection, shall coordinate and share national 
     continuity of operations plans and plans for ports of entry.

     SEC. 11037. PLANT PEST IDENTIFICATION JOINT PLAN.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary and the Secretary of 
     Homeland Security shall prepare a joint plan to establish 
     standards of service for--
       (1) plant pest and disease identification;
       (2) inspection techniques training; and
       (3) discard authority.
       (b) Contents.--The plan shall--
       (1) formalize plant pest and disease identification and 
     inspection training of Customs and Border Protection 
     agriculture specialists for all pathways, including 
     conveyances, passengers, cargo, mail, and rail; and
       (2) establish performance-related criteria for the 
     appropriate Department of Homeland Security personnel to 
     enable enhanced discard authority and improve plant pest and 
     disease interception.

     SEC. 11038. LIAISON OFFICER POSITIONS.

       (a) Customs and Border Protection.--
       (1) In general.--The Secretary shall establish a program 
     liaison officer position who is physically located in the 
     same building as the highest ranking Customs and Border 
     Protection official with primary responsibility for the 
     agricultural inspection functions of Customs and Border 
     Protection.
       (2) Employee.--The liaison officer shall be an employee of 
     the Animal and Plant Health Inspection Service.
       (3) Space and staff.--Customs and Border Protection shall 
     provide appropriate space for the liaison officer and 
     commensurate support staff.
       (4) Expenses.--The Secretary shall bear all costs for 
     salary, benefits, and other expenses of the liaison officer.
       (b) Animal and Plant Health Inspection Service.--
       (1) In general.--The Secretary, acting through Customs and 
     Border Protection, shall establish a program liaison officer 
     position who is physically located in the same building as 
     the highest ranking Animal and Plant Health Inspection 
     Service official with primary responsibility for the 
     agricultural inspection functions of the Service.
       (2) Employee.--The liaison officer shall be an employee of 
     Customs and Border Protection.
       (3) Space and staff.--The Animal and Plant Health 
     Inspection Service shall provide appropriate space for the 
     liaison officer and commensurate support staff.
       (4) Expenses.--Customs and Border Protection shall bear all 
     costs for salary, benefits, and other expenses of the liaison 
     officer.

[[Page 29348]]

       (c) Communications.--The liaison officers shall ensure 
     daily communication between designated officials of the 
     Animal and Plant Health Inspection Service and Customs and 
     Border Protection.

                        PART III--MISCELLANEOUS

     SEC. 11041. DESIGNATION AND EXPEDITED REVIEW AND APPROVAL OF 
                   QUALIFIED AGRICULTURAL COUNTERMEASURES.

       (a) Designation of Certain Agricultural Countermeasures.--
     The Secretary and the Secretary of Homeland Security, in 
     coordination with the Secretary of Health and Human Services, 
     the Administrator of the Environmental Protection Agency, and 
     the heads of other applicable Federal departments or 
     agencies, and in consultation with the Director of the Office 
     of Science and Technology Policy in the Executive Office of 
     the President, shall designate a list of qualified 
     agricultural countermeasures to protect against the 
     intentional introduction or natural occurrence of 
     agricultural disease emergencies.
       (b) Expedited Review and Approval of Qualified 
     Countermeasures.--A qualified agricultural countermeasure 
     designated under subsection (a) shall be--
       (1) granted expedited review for approval; and
       (2) if the qualified agricultural countermeasure meets the 
     requirements for approval under that expedited review 
     process, promptly approved by the appropriate Federal 
     department or agency for use or further testing.
       (c) Delisting of Agriculture Countermeasures.--The 
     Secretary and the Secretary of Homeland Security, in 
     coordination with the Secretary of Health and Human Services, 
     the Administrator of the Environmental Protection Agency, and 
     the heads of other applicable Federal departments or 
     agencies, and in consultation with the Director of the Office 
     of Science and Technology Policy in the Executive Office of 
     the President, may delist qualified agricultural 
     countermeasures that are no longer effective in maintaining 
     or enhancing the agricultural biosecurity of the United 
     States.

     SEC. 11042. AGRICULTURAL DISEASE EMERGENCY DETECTION AND 
                   RESPONSE.

       (a) Emergency Determination.--
       (1) In general.--The Secretary of Homeland Security, in 
     consultation with the Secretary and the Secretary of Health 
     and Human Services, shall--
       (A) assess potential vulnerabilities to the agricultural 
     biosecurity of the United States; and
       (B) determine the incidence or outbreak of which 
     agricultural diseases would constitute an emergency--
       (i) to identify respective interagency priorities; and
       (ii) to assist the Department of Homeland Security to 
     establish biological threat awareness capacities pursuant to 
     HSPD-9 and HSPD-10.
       (2) Notification by other federal entities.--On a 
     determination by the Secretary of Homeland Security under 
     paragraph (1)(B), each Federal department and agency shall 
     notify the Secretary of Homeland Security, the Secretary, and 
     the Secretary of Health and Human Services of specific 
     emergency procedures to be deployed in the event of an 
     outbreak of an agricultural disease, including--
       (A) any regulations promulgated to address the outbreak; 
     and
       (B) a timetable for implementation of the regulations.
       (3) Information sharing.--The Secretary of Homeland 
     Security may make notifications under paragraph (2) available 
     to the Secretary, in order for the Secretary to meet the 
     incident management activities and goals set forth in the 
     Food and Agriculture Incident Annex of the National Response 
     Plan.
       (4) State and local coordination.--On receipt by the 
     Secretary of Homeland Security of notification of special 
     emergency procedures required by other Federal departments or 
     agencies, the Secretary of Homeland Security, in consultation 
     with the Secretary and the Secretary of Health and Human 
     Services, shall--
       (A) notify State, local, and tribal governments, as 
     appropriate, of the emergency procedures; and
       (B) institute test exercises to determine the effectiveness 
     of the emergency procedures in geographical areas of 
     significance, as determined by the Secretary of Homeland 
     Security, in consultation with Secretary.
       (b) Disease Detection.--The Secretary and the Secretary of 
     Homeland Security shall--
       (1) develop and deploy an advanced surveillance system to 
     detect entry into the United States of agricultural 
     biological threat agents that are likely to cause an 
     agricultural disease emergency;
       (2) develop national and international standards and 
     implementation guidelines to be used in monitoring those 
     agricultural biological threat agents;
       (3) enhance animal and plant health laboratory networks in 
     existence as of the date of enactment of this Act to increase 
     the diagnostic capability for detecting those biological 
     threat agents; and
       (4) integrate the data and information obtained through the 
     activities carried out under paragraphs (1) through (3) with 
     the National Biosurveillance Integration Center of the 
     Department of Homeland Security.
       (c) Onsite Rapid Diagnostic Tools.--
       (1) Development.--The Secretary, in consultation with the 
     Secretary of Homeland Security and the Secretary of Health 
     and Human Services, shall develop onsite rapid diagnostic 
     tools to enable rapid diagnosis of incidents of agricultural 
     diseases that would constitute an agricultural disease 
     emergency at the site of the incident or outbreak.
       (2) Validation testing of tools.--In developing on-site 
     rapid diagnostic tools under paragraph (1), the Secretary, in 
     consultation with the Secretary of Homeland Security and the 
     Secretary of Health and Human Services, shall conduct 
     validation testing to ensure that each tool--
       (A) identifies the agent for which the tool was developed; 
     and
       (B) will function properly if administered in the field by 
     persons with varying levels of expertise in diagnostic 
     testing, zoonotic disease surveillance, or agricultural 
     disease emergencies.
       (d) Emergency Response.--
       (1) In general.--The Secretary shall work with State 
     agriculture departments to ensure a coordinated response with 
     State and local agencies responsible for early agricultural 
     disease detection and control.
       (2) Evaluation.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall prepare and submit 
     to the appropriate committees of Congress an evaluation of 
     the current staff, budgets, and capabilities of regional 
     coordinators of the Animal and Plant Health Inspection 
     Service to identify areas of potential vulnerability or 
     additional resource needs for emergency response capabilities 
     in specific geographical areas.
       (e) Best Practices.--
       (1) Agricultural biosecurity task force.--The Secretary 
     shall establish in the Department an agricultural biosecurity 
     task force to identify best practices for use in carrying out 
     a State or regional agricultural biosecurity program.
       (2) Information available.--The Secretary, in coordination 
     with the Secretary of Homeland Security, shall make available 
     information regarding best practices for use in implementing 
     a State or regional agricultural biosecurity program, 
     including training exercises for emergency response providers 
     and animal and plant disease specialists.
       (f) Foreign Animal Disease as Prerequisite for Veterinarian 
     Accreditation.--The Secretary shall require candidates for 
     veterinarian accreditation from the Department to receive 
     training in foreign animal disease detection and response.

     SEC. 11043. NATIONAL PLANT DISEASE RECOVERY SYSTEM AND 
                   NATIONAL VETERINARY STOCKPILE.

       (a) National Plant Disease Recovery System.--
       (1) Establishment.--The Secretary, in coordination with the 
     Secretary of Homeland Security, and in consultation with the 
     Secretary of Health and Human Services and the Administrator 
     of the Environmental Protection Agency, shall work with State 
     and local governments and the private sector to establish a 
     national plant disease recovery system to be used to respond 
     to an outbreak of plant disease that poses a significant 
     threat to agricultural biosecurity.
       (2) Requirements.--The national plant disease recovery 
     system shall include agricultural countermeasures to be made 
     available within a single growing season for crops of 
     particular economic significance, as determined by the 
     Secretary, in coordination with the Secretary of Homeland 
     Security.
       (b) National Veterinary Stockpile.--The Secretary, in 
     coordination with the Secretary of Homeland Security, and in 
     consultation with the Secretary of Health and Human Services 
     and the Administrator of the Environmental Protection Agency, 
     shall work with State and local governments and the private 
     sector to establish a national veterinary stockpile, which 
     shall be used by the Secretary, in coordination with the 
     Secretary of Homeland Security--
       (1) to make agricultural countermeasures available to any 
     State veterinarian not later than 24 hours after submission 
     of an official request for assistance by the State 
     veterinarian, unless the Secretary and the Secretary of 
     Homeland Security cannot accommodate such a request due to an 
     emergency; and
       (2) to leverage, where appropriate, the mechanisms and 
     infrastructure of the Strategic National Stockpile.

     SEC. 11044. RESEARCH AND DEVELOPMENT OF AGRICULTURAL 
                   COUNTERMEASURES.

       (a) Grant Program.--
       (1) In general.--The Secretary shall establish a grant 
     program to stimulate basic and applied research and 
     development activity for qualified agricultural 
     countermeasures.
       (2) Competitive grants.--In carrying out this section, the 
     Secretary shall develop a process through which to award 
     grants on a competitive basis.
       (3) Waiver in emergencies.--The Secretary may waive the 
     requirement in paragraph (2), if--
       (A) the Secretary has declared a plant or animal disease 
     emergency under the Plant

[[Page 29349]]

     Protection Act (7 U.S.C. 7701 et seq.) or the Animal Health 
     Protection Act (7 U.S.C. 8301 et seq.); and
       (B) the waiver would lead to the rapid development of a 
     qualified agricultural countermeasure, as determined by the 
     Secretary.
       (b) Use of Foreign Disease Permissible.--The Secretary 
     shall permit the use of foreign animal and plant disease 
     agents, and accompanying data, in research and development 
     activities funded under this section if the Secretary 
     determines that the diseases or data are necessary to 
     demonstrate the safety and efficacy of an agricultural 
     countermeasure in development.
       (c) Coordination on Advanced Development.--The Secretary 
     shall ensure that the Secretary of Homeland Security is 
     provided information, on a quarterly basis, describing each 
     grant provided by the Secretary for the purpose of 
     facilitating the acceleration and expansion of the advanced 
     development of agricultural countermeasures.
       (d) Scope.--Nothing in this section impedes the ability of 
     the Secretary of Homeland Security to administer grants for 
     basic and applied research and advanced development 
     activities for qualified agricultural countermeasures.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 2008 through 2012.

     SEC. 11045. VETERINARY WORKFORCE GRANT PROGRAM.

       (a) In General.--The Secretary shall establish a grant 
     program to increase the number of veterinarians trained in 
     agricultural biosecurity.
       (b) Considerations for Funding Awarded.--The Secretary 
     shall establish procedures to ensure that grants are 
     competitively awarded under the program based on--
       (1) the ability of an applicant to increase the number of 
     veterinarians who are trained in agricultural biosecurity 
     practice areas determined by the Secretary;
       (2) the ability of an applicant to increase research 
     capacity in areas of agricultural biosecurity determined by 
     the Secretary to be a priority; or
       (3) any other consideration the Secretary determines to be 
     appropriate.
       (c) Use of Funds.--Amounts received under this section may 
     be used by a grantee to pay--
       (1) costs associated with construction and the acquisition 
     of equipment, and other capital costs relating to the 
     expansion of schools of veterinary medicine, departments of 
     comparative medicine, departments of veterinary science, or 
     entities offering residency training programs; or
       (2) capital costs associated with the expansion of academic 
     programs that offer postgraduate training for veterinarians 
     or concurrent training for veterinary students in specific 
     areas of specialization.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary to carry out this section for each of fiscal years 
     2008 through 2012.

     SEC. 11046. ASSISTANCE TO BUILD LOCAL CAPACITY IN 
                   AGRICULTURAL BIOSECURITY PLANNING, 
                   PREPAREDNESS, AND RESPONSE.

       (a) Advanced Training Programs.--
       (1) Grant assistance.--The Secretary shall provide grant 
     assistance to support the development and expansion of 
     advanced training programs in agricultural biosecurity 
     planning and response for food science professionals and 
     veterinarians.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary to carry out this subsection for each of fiscal 
     years 2008 through 2012.
       (b) Assessment of Response Capability.--
       (1) Grant and loan assistance.--The Secretary shall provide 
     grant and low-interest loan assistance to States for use in 
     assessing agricultural disease response capability.
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $25,000,000 
     for each of fiscal years 2008 through 2012.

     SEC. 11047. BORDER INSPECTIONS OF AGRICULTURAL PRODUCTS.

       (a) Inspection.--
       (1) In general.--The Secretary of Homeland Security, in 
     consultation with the Secretary and the Secretary of Health 
     and Human Services, shall coordinate with Federal 
     intelligence officials to identify agricultural products that 
     are imported from countries that have known capabilities to 
     carry out an agroterrorist act.
       (2) Priority.--
       (A) In general.--Agricultural products imported from 
     countries described in paragraph (1) shall be given priority 
     status in the inspection process.
       (B) Effect of threats.--If a credible and specific threat 
     of an intended agroterrorist act is identified by Federal 
     intelligence officials, each border inspection of a product 
     that could be a pathway for the agroterrorist act shall be 
     intensified.
       (b) Coordination in Border Inspection.--In conducting 
     inspections of agricultural products at the border, the 
     Secretary, the Secretary of Homeland Security, and the 
     Secretary of Health and Human Services shall use a compatible 
     communication system in order to better coordinate the 
     inspection process.

     SEC. 11048. LIVE VIRUS OF FOOT AND MOUTH DISEASE RESEARCH.

       (a) In General.--The Secretary shall issue a permit 
     required under section 12 of the Act of May 29, 1884 (21 
     U.S.C. 113a) to the Secretary of Homeland Security for work 
     on the live virus of foot and mouth disease at the National 
     Bio and Agro-Defense Laboratory (referred to in this section 
     as the ``NBAF'').
       (b) Limitation.--The permit shall be valid unless the 
     Secretary finds that the study of live foot and mouth disease 
     virus at the NBAF is not being carried out in accordance with 
     the regulations issued by the Secretary pursuant to the 
     Agricultural Bioterrorism Protection Act of 2002 (7 U.S.C. 
     8401 et seq.).
       (c) Authority.--The suspension, revocation, or other 
     impairment of the permit issued under this section--
       (1) shall be made by the Secretary; and
       (2) is a nondelegable function.

                       Subtitle B--Other Programs

     SEC. 11051. FORECLOSURE.

       (a) In General.--Section 307 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1927) is amended by adding at 
     the end the following:
       ``(f) Moratorium.--
       ``(1) In general.--Effective beginning on the date of 
     enactment of this subsection, there shall be in effect a 
     moratorium on all loan acceleration and foreclosure 
     proceedings instituted by the Department for any case in 
     which--
       ``(A) there is pending against the Department a claim of 
     discrimination by a farmer or rancher related to a loan 
     acceleration or foreclosure; or
       ``(B) a farmer or rancher files a claim of discrimination 
     against the Department related to a loan acceleration or 
     foreclosure.
       ``(2) Waiver of interest and offsets.--During the period of 
     the moratorium, the Secretary shall waive the accrual of 
     interest and offsets on all loans made under this subtitle 
     for which loan acceleration or foreclosure proceedings have 
     been instituted as described in paragraph (1).
       ``(3) Termination of moratorium.--The moratorium shall 
     terminate with respect to a claim of discrimination by a 
     farmer or rancher on the earlier of--
       ``(A) the date the Secretary resolves the claim; or
       ``(B) if the farmer or rancher appeals the decision of the 
     Secretary on the claim to a court of competent jurisdiction, 
     the date that the court renders a final decision on the 
     claim.
       ``(4) Failure to prevail.--If a farmer or rancher does not 
     prevail on a claim of discrimination described in paragraph 
     (1), the farmer or rancher shall be liable for any interest 
     and offsets that accrued during the period that the loan was 
     in abeyance.''.
       (b) Foreclosure Report.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Inspector General of the 
     Department of Agriculture (referred to in this subsection as 
     the ``Inspector General'') shall determine whether decisions 
     of the Department to implement foreclosure proceedings with 
     respect to loans made under subtitle A of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1922 et seq.) to 
     socially disadvantaged farmers or ranchers during the 5-year 
     period preceding the date of enactment of this Act were 
     consistent and in conformity with the applicable laws 
     (including regulations) governing loan foreclosures.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Inspector General shall submit to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report that describes the determination of the 
     Inspector General under paragraph (1).

     SEC. 11052. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 
                   DISADVANTAGED FARMERS AND RANCHERS.

       (a) In General.--Section 2501 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279)) is 
     amended--
       (1) in subsection (a)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Requirements.--The outreach and technical assistance 
     program under paragraph (1) shall be used exclusively--
       ``(A) to enhance coordination of the outreach, technical 
     assistance, and education efforts authorized under 
     agriculture programs; and
       ``(B) to assist the Secretary in--
       ``(i) reaching socially disadvantaged farmers and ranchers 
     and prospective socially disadvantaged farmers and ranchers 
     in a culturally and linguistically appropriate manner; and
       ``(ii) improving the participation of those farmers and 
     ranchers in Department programs, as determined under section 
     2501A.'';
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``entity to provide 
     information'' and inserting ``entity that has demonstrated an 
     ability to carry out the requirements described in paragraph 
     (2) to provide outreach''; and
       (ii) by adding at the end the following:
       ``(D) Renewal of contracts.--The Secretary may provide for 
     renewal of a grant, contract, or other agreement under this 
     section with an eligible entity that--

[[Page 29350]]

       ``(i) has previously received funding under this section;
       ``(ii) has demonstrated an ability to carry out the 
     requirements described in paragraph (2); and
       ``(iii) demonstrates to the satisfaction of the Secretary 
     that the entity will continue to fulfill the purposes of this 
     section.
       ``(E) Review of proposals.--Notwithstanding subparagraph 
     (D), the Secretary shall promulgate a regulation to establish 
     criteria for the review process for grants and cooperative 
     agreements (including multiyear grants), which shall include 
     a review eligible entities on an individual basis.
       ``(F) Report.--The Secretary shall submit to Congress, and 
     make publically available, an annual report that describes--
       ``(i) the accomplishments of the program under this 
     section; and
       ``(ii) any gaps or problems in service delivery as reported 
     by grantees.''; and
       (C) in paragraph (4)--
       (i) by striking subparagraph (A), and inserting the 
     following:
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $50,000,000 
     for each of fiscal years 2008 through 2012.''; and
       (ii) by adding at the end the following:
       ``(C) Limitation on use of funds for administrative 
     expenses.--Not more than 5 percent of the amounts made 
     available under this paragraph for a fiscal year may be used 
     for expenses related to administering the program under this 
     section.''; and
       (2) in subsection (e)(5)(A)--
       (A) in clause (i), by striking ``has demonstrated 
     experience in'' and inserting ``has a reputation for, and has 
     demonstrated experience in,''; and
       (B) in clause (ii)--
       (i) by inserting ``and on behalf of'' before ``socially''; 
     and
       (ii) by striking ``2-year'' and inserting ``3-year''.
       (b) Coordination With Outreach.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall develop a plan to 
     join and relocate--
       (A) the outreach and technical assistance program 
     established under section 2501 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279); and
       (B) the Office of Outreach of the Department of 
     Agriculture.
       (2) Consultation.--In preparing the plan under paragraph 
     (1), the Secretary shall, in consultation with eligible 
     entities under section 2501 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279)--
       (A) decide the most appropriate permanent location for the 
     programs described in paragraph (1); and
       (B) locate both programs together at that location.
       (3) Report.--After the relocation described in this 
     subsection is completed, the Secretary shall submit to 
     Congress a report that includes information describing the 
     new location of the programs.

     SEC. 11053. ADDITIONAL CONTRACTING AUTHORITY.

       Section 2501(a)(3) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 2279(a)(3)) (as amended by 
     section 11052(a)(1)(B)(ii)) is amended by adding at the end 
     the following:
       ``(G) Additional contracting authority.--
       ``(i) In general.--The Secretary shall provide to the 
     Office of Outreach of the Department of Agriculture, the 
     Natural Resources Conservation Service, the Farm Service 
     Agency, the Risk Management Agency, the Forest Service, the 
     Food Safety and Inspection Service, and such other agencies 
     and programs as the Secretary determines to be necessary, the 
     authority to make grants and enter into contracts and 
     cooperative agreements with community-based organizations 
     that meet the definition of an eligible entity under 
     subsection (e).
       ``(ii) Matching funds.--The Secretary is not required to 
     require matching funds for a grant made, or a contract or 
     cooperative agreement entered into, under this subparagraph.
       ``(iii) Interagency funding.--Notwithstanding any other 
     provision of law (including regulations), any Federal agency 
     may participate in any grant made, or contract or cooperative 
     agreement entered into, under this subsection by contributing 
     funds, if the head of the agency determines that the 
     objectives of the grant, contract, or cooperative agreement 
     will further the authorized programs of the contributing 
     agency.''.

     SEC. 11054. IMPROVED PROGRAM DELIVERY BY THE DEPARTMENT OF 
                   AGRICULTURE ON INDIAN RESERVATIONS.

       Section 2501(g)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended by 
     striking the second sentence.

     SEC. 11055. ACCURATE DOCUMENTATION IN THE CENSUS OF 
                   AGRICULTURE AND CERTAIN STUDIES.

       Section 2501 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 2279) is amended by adding at the 
     end the following:
       ``(h) Accurate Documentation.--The Secretary shall ensure, 
     to the maximum extent practicable, that the Census of 
     Agriculture and studies carried out by the Economic Research 
     Service accurately document the number, location, and 
     economic contributions of socially disadvantaged farmers and 
     ranchers in agricultural production.''.

     SEC. 11056. IMPROVED DATA REQUIREMENTS.

       Section 2501A of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 2279-1) is amended by striking 
     subsection (c) and inserting the following:
       ``(c) Compilation of Program Participation Data.--
       ``(1) Annual requirement.--For each county and State in the 
     United States, the Secretary of Agriculture (referred to in 
     this section as the `Secretary') shall annually compile 
     program application and participation rate data regarding 
     socially disadvantaged farmers and ranchers by computing for 
     each program of the Department of Agriculture that serves 
     agricultural producers or landowners--
       ``(A) raw numbers of applicants and participants by race, 
     ethnicity, and gender, subject to appropriate privacy 
     protections, as determined by the Secretary; and
       ``(B) the application and participation rate, by race, 
     ethnicity, and gender, as a percentage of the total 
     participation rate of all agricultural producers and 
     landowners.
       ``(2) Authority to collect data.--The heads of the agencies 
     of the Department of Agriculture shall collect and transmit 
     to the Secretary any data, including data on race, gender, 
     and ethnicity, that the Secretary determines to be necessary 
     to carry out paragraph (1).
       ``(3) Report.--Using the technologies and systems of the 
     National Agricultural Statistics Service, the Secretary shall 
     compile and present the data required under paragraph (1) for 
     each program described in that paragraph in a manner that 
     includes the raw numbers and participation rates for--
       ``(A) the entire United States;
       ``(B) each State; and
       ``(C) each county in each State.
       ``(d) Limitations on Use of Data.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall not disclose the names or individual data of 
     any program participant.
       ``(2) Authorized uses.--The data under this section shall 
     be used exclusively for the purposes described in subsection 
     (a).
       ``(3) Limitation.--Except as otherwise provided, the data 
     under this section shall not be used for the evaluation of 
     individual applications for assistance.''.

     SEC. 11057. RECEIPT FOR SERVICE OR DENIAL OF SERVICE.

       Section 2501A of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 2279-1) (as amended by section 
     11056) is amended by adding at the end the following:
       ``(e) Receipt for Service or Denial of Service.--In any 
     case in which a farmer or rancher, or a prospective farmer or 
     rancher, in person or in writing, requests from the Farm 
     Service Agency or the Natural Resources Conservation Service 
     of the Department of Agriculture any benefit or service 
     offered by the Department to agricultural producers or 
     landowners, and at the time of the request requests a 
     receipt, the Secretary of Agriculture shall issue, on the 
     date of the request, a receipt to the farmer or rancher, or 
     prospective farmer or rancher, that contains--
       ``(1) the date, place, and subject of the request; and
       ``(2) the action taken, not taken, or recommended to the 
     farmer or rancher or prospective farmer or rancher.''.

     SEC. 11058. NATIONAL APPEALS DIVISION.

       Section 280 of the Department of Agriculture Reorganization 
     Act of 1994 (7 U.S.C. 7000) is amended--
       (1) by striking ``On the return'' and inserting the 
     following:
       ``(a) In General.--On the return''; and
       (2) by adding at the end the following:
       ``(b) Reports.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this subsection, and every 180 days 
     thereafter, the head of each agency shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate, and publish on the website of the Department, a 
     report that includes--
       ``(A) a description of all cases returned to the agency 
     during the period covered by the report pursuant to a final 
     determination of the Division;
       ``(B) the status of implementation of each final 
     determination; and
       ``(C) if the final determination has not been implemented--
       ``(i) the reason that the final determination has not been 
     implemented; and
       ``(ii) the projected date of implementation of the final 
     determination.
       ``(2) Updates.--Each month, the head of each agency shall 
     publish on the website of the Department any updates to the 
     reports submitted under paragraph (1).''.

     SEC. 11059. FARMWORKER COORDINATOR.

       (a) In General.--Subtitle B of title II of the Department 
     of Agriculture Reorganization Act of 1994 is amended by 
     inserting after section 226A (7 U.S.C. 6933) the following:

     ``SEC. 226B. FARMWORKER COORDINATOR.

       ``(a) Establishment.--The Secretary shall establish within 
     the Department the position

[[Page 29351]]

     of Farmworker Coordinator (referred to in this section as the 
     `Coordinator').
       ``(b) Duties.--The Secretary shall delegate to the 
     Coordinator responsibility for--
       ``(1) assisting in administering the program established by 
     section 2281 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (42 U.S.C. 5177a);
       ``(2) serving as a liaison to community-based nonprofit 
     organizations that represent and have demonstrated experience 
     serving low-income migrant and seasonal farmworkers;
       ``(3) coordinating with the Department, other Federal 
     agencies, and State and local governments to ensure that 
     farmworker needs are assessed and met during declared 
     disasters and other emergencies;
       ``(4) consulting with the Office of Small Farm 
     Coordination, Office of Outreach, Outreach Coordinators, and 
     other entities to better integrate farmworker perspectives, 
     concerns, and interests into the ongoing programs of the 
     Department;
       ``(5) consulting with appropriate institutions on research, 
     program improvements, or agricultural education opportunities 
     that assist low-income and migrant seasonal farmworkers; and
       ``(6) ensuring that farmworkers have access to services and 
     support to enter agriculture as producers.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
       (b) Conforming Amendment.--Section 296(b) of the Department 
     of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) 
     (as amended by section 7401(c)(1)) is amended by adding at 
     the end the following:
       ``(7) the authority of the Secretary to establish in the 
     Department a position of Farmworker Coordinator in accordance 
     with section 226B.''.

     SEC. 11060. CONGRESSIONAL BIPARTISAN FOOD SAFETY COMMISSION.

       (a) Commission.--
       (1) Establishment.--
       (A) In general.--There is established a commission to be 
     known as the ``Congressional Bipartisan Food Safety 
     Commission'' (referred to in this section as the 
     ``Commission'').
       (B) Purpose.--The purpose of the Commission shall be to act 
     in a bipartisan, consensus-driven fashion--
       (i) to review the food safety system of the United States;
       (ii) to prepare a report that--

       (I) summarizes information about the food safety system as 
     in effect as of the date of enactment of this Act; and
       (II) makes recommendations on ways--

       (aa) to modernize the food safety system of the United 
     States;
       (bb) to harmonize and update food safety statutes;
       (cc) to improve Federal, State, local, and interagency 
     coordination of food safety personnel, activities, budgets, 
     and leadership;
       (dd) to best allocate scarce resources according to risk;
       (ee) to ensure that regulations, directives, guidance, and 
     other standards and requirements are based on best-available 
     science and technology;
       (ff) to emphasize preventative rather than reactive 
     strategies; and
       (gg) to provide to Federal agencies funding mechanisms 
     necessary to effectively carry out food safety 
     responsibilities; and
       (iii) to draft specific statutory language, including 
     detailed summaries of the language and budget 
     recommendations, that would implement the recommendations of 
     the Commission.
       (2) Membership.--
       (A) Composition.--The Commission shall be composed of 19 
     members.
       (B) Eligibility.--Members of the Commission shall--
       (i) have specialized training, education, or significant 
     experience in at least 1 of the areas of--

       (I) food safety research;
       (II) food safety law and policy; and
       (III) program design and implementation;

       (ii) consist of--

       (I) the Secretary of Agriculture (or a designee);
       (II) the Secretary of Health and Human Services (or a 
     designee);
       (III) 1 Member of the House of Representatives; and
       (IV) 1 Member of the Senate; and
       (V) 15 additional members that include, to the maximum 
     extent practicable, representatives of--

       (aa) consumer organizations;
       (bb) agricultural and livestock production;
       (cc) public health professionals;
       (dd) State regulators;
       (ee) Federal employees; and
       (ff) the livestock and food manufacturing and processing 
     industry.
       (C) Appointments.--
       (i) In general.--The appointment of the members of the 
     Commission shall be made not later than 60 days after the 
     date of enactment of this Act.
       (ii) Certain appointments.--Of the members of the 
     Commission described in subparagraph (B)(ii)(V)--

       (I) 2 shall be appointed by the President;
       (II) 7 shall be appointed by a working group consisting 
     of--

       (aa) the Chairman of each of the Committee on Agriculture, 
     Nutrition, and Forestry and the Committee on Health, 
     Education, Labor, and Pensions of the Senate;
       (bb) the Chairman of each of the Committee on Agriculture 
     and the Committee on Energy and Commerce of the House of 
     Representatives;
       (cc) the Speaker of the House of Representatives; and
       (dd) the Majority Leader of the Senate; and

       (III) 6 shall be appointed by a working group consisting 
     of--

       (aa) the Ranking Member of each of the Committees described 
     in items (aa) and (bb) of subclause (II);
       (bb) the Minority Leader of the House of Representatives; 
     and
       (cc) the Minority Leader of the Senate.
       (D) Term.--A member of the Commission shall be appointed 
     for the life of the Commission.
       (E) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (3) Meetings.--
       (A) Initial meeting.--Except as provided in subparagraph 
     (B), the initial meeting of the Commission shall be conducted 
     in Washington, District of Columbia, not later than 30 days 
     after the date of appointment of the final member of the 
     Commission under paragraph (2)(C).
       (B) Meeting for partial appointment.--If, as of the date 
     that is 90 days after the date of enactment of this Act, all 
     members of the Commission have not been appointed under 
     paragraph (2)(C), but at least 8 members have been appointed, 
     the Commission may hold the initial meeting of the 
     Commission.
       (C) Other meetings.--The Commission shall--
       (i) hold a series of at least 5 stakeholder meetings to 
     solicit public comment, including--

       (I) at least 1 stakeholder meeting, to be held in 
     Washington, District of Columbia; and
       (II) at least 4 stakeholder meetings, to be held in various 
     regions of the United States; and

       (ii) meet at the call of--

       (I) the Chairperson;
       (II) the Vice-Chairperson; or
       (III) a majority of the members of the Commission.

       (D) Public participation; information.--To the maximum 
     extent practicable--
       (i) each meeting of the Commission shall be open to the 
     public; and
       (ii) all information from a meeting of the Commission shall 
     be recorded and made available to the public.
       (E) Quorum.--With respect to meetings of the Commission--
       (i) a majority of the members of the Commission shall 
     constitute a quorum for the conduct of business of the 
     Commission; but
       (ii) for the purpose of a stakeholder meeting described in 
     subparagraph (C)(i), 4 or more members of the Commission 
     shall constitute a quorum.
       (F) Facilitator.--The Commission shall contract with a 
     nonpolitical, disinterested third-party entity to serve as a 
     meeting facilitator.
       (4) Chairperson and vice-chairperson.--At the initial 
     meeting of the Commission, the members of the Commission 
     shall select from among the members a Chairperson and Vice-
     Chairperson of the Commission.
       (b) Duties.--
       (1) Recommendations.--The Commission shall review and 
     consider the statutes, studies, and reports described in 
     paragraph (2) for the purpose of understanding the food 
     safety system of the United States in existence as of the 
     date of enactment of this Act.
       (2) Statutes, studies, and reports.--The statutes, studies, 
     and reports referred to in paragraph (1) are--
       (A) with respect with respect to laws administered by the 
     Secretary of Agriculture--
       (i) the Federal Seed Act (7 U.S.C. 1551 et seq.);
       (ii) the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 
     et seq.);
       (iii) the Animal Health Protection Act (7 U.S.C. 8301 et 
     seq.);
       (iv) the Lacey Act Amendments of 1981 (16 U.S.C. 3371 et 
     seq.);
       (v) the Poultry Products Inspection Act (21 U.S.C. 451 et 
     seq.);
       (vi) the Federal Meat Inspection Act (21 U.S.C. 601 et 
     seq.); and
       (vii) the Egg Products Inspection Act (21 U.S.C. 1031 et 
     seq.);
       (B) with respect to laws administered by the Secretary of 
     the Treasury, the Federal Alcohol Administration Act (27 
     U.S.C. 201 et seq.);
       (C) with respect to laws administered by the Federal Trade 
     Commission, the Act of September 26, 1914 (15 U.S.C. 41 et 
     seq.);
       (D) with respect to laws administered by the Secretary of 
     Health and Human Services--
       (i) chapters I through IV of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 301 et seq.);
       (ii) the Public Health Service Act (42 U.S.C. 201 et seq.);

[[Page 29352]]

       (iii) the Import Milk Act (21 U.S.C. 141 et seq.);
       (iv) the Food Additives Amendment of 1958 (Public Law 85-
     929; 52 Stat. 1041);
       (v) the Fair Packaging and Labeling Act (Public Law 89-755; 
     80 Stat. 1296);
       (vi) the Infant Formula Act of 1980 (21 U.S.C. 301 note; 
     Public Law 96-359);
       (vii) the Pesticide Monitoring Improvements Act of 1988 
     (Public Law 100-418; 102 Stat. 1411);
       (viii) the Nutrition Labeling and Education Act of 1990 (21 
     U.S.C. 301 note; Public Law 101-535);
       (ix) the Food and Drug Administration Modernization Act of 
     1997 (21 U.S.C. 301 note; Public Law 105-115); and
       (x) the Public Health Security and Bioterrorism 
     Preparedness and Response Act of 2002 (21 U.S.C. 201 note; 
     Public Law 107-188);
       (E) with respect to laws administered by the Attorney 
     General, the Federal Anti-Tampering Act (18 U.S.C. 1365 note; 
     Public Law 98-127);
       (F) with respect to laws administered by the Administrator 
     of the Environmental Protection Agency--
       (i) the Federal Insecticide, Fungicide, and Rodenticide Act 
     (7 U.S.C. 136 et seq.);
       (ii) the Food Quality Protection Act of 1996 (7 U.S.C. 136 
     note; Public Law 104-170);
       (iii) the Toxic Substances Control Act (15 U.S.C. 2601 et 
     seq.); and
       (iv) the Safe Drinking Water Act of 1974 (42 U.S.C. 201 
     note; Public Law 93-523); and
       (G) with respect to laws administered by the Secretary of 
     Transportation, chapter 57 of subtitle II of title 49, United 
     States Code (relating to sanitary food transportation); and
       (H) with respect to Government studies on food safety--
       (i) the report of the National Academies of Science 
     entitled ``Ensuring Safe Food from Production to 
     Consumption'' and dated 1998;
       (ii) the report of the National Academies of Science 
     entitled ``Scientific Criteria to Ensure Safe Food'' and 
     dated 2003;
       (iii) reports of the Office of the Inspector General of the 
     Department of Agriculture, including--

       (I) report 24601-0008-CH, entitled ``Egg Products 
     Processing Inspection'' and dated September 18, 2007;
       (II) report 24005-1-AT, entitled ``Food Safety and 
     Inspection Service - State Meat and Poultry Inspection 
     Programs'' and dated September 27, 2006;
       (III) report 24601-06-CH, entitled ``Food Safety and 
     Inspection Service's In-Plant Performance System'' and dated 
     March 28, 2006;
       (IV) report 24601-05-AT, entitled ``Hazard Analysis and 
     Critical Control Point Implementation at Very Small Plants'' 
     and dated June 24, 2005;
       (V) report 24601-04-HY, entitled ``Food Safety and 
     Inspection Service Oversight of the 2004 Recall by Quaker 
     Maid Meats, Inc.'' and dated May 18, 2005;
       (VI) report 24501-01-FM, entitled ``Food Safety and 
     Inspection Service Application Controls--Performance Based 
     Inspection System'' and dated November 24, 2004;
       (VII) report 24601-03-CH, entitled ``Food Safety and 
     Inspection Service Use of Food Safety Information'' and dated 
     September 30, 2004;
       (VIII) report 24601-03-HY, entitled ``Food Safety and 
     Inspection Service Effectiveness Checks for the 2002 
     Pilgrim's Pride Recall'' and dated June 29, 2004;
       (IX) report 24601-02-HY, entitled ``Food Safety and 
     Inspection Service Oversight of the Listeria Outbreak in the 
     Northeastern United States'' and dated June 9, 2004;
       (X) report 24099-05-HY, entitled ``Food Safety and 
     Inspection Service Imported Meat and Poultry Equivalence 
     Determinations Phase III'' and dated December 29, 2003;
       (XI) report 24601-2-KC, entitled ``Food Safety and 
     Inspection Service--Oversight of Production Process and 
     Recall at Conagra Plant (Establishment 969)'' and dated 
     September 30, 2003;
       (XII) report 24601-1-Ch, entitled ``Laboratory Testing Of 
     Meat And Poultry Products'' and dated June 21, 2000;
       (XIII) report 24001-3-At, 24601-1-Ch, 24099-3-Hy, 24601-4-
     At, entitled ``Food Safety and Inspection Service: HACCP 
     Implementation, Pathogen Testing Program, Foreign Country 
     Equivalency, Compliance Activities'' and dated June 21, 2000; 
     and
       (XIV) report 24001-3-At, entitled ``Implementation of the 
     Hazard Analysis and Critical Control Point System'' and dated 
     June 21, 2000; and

       (I) with respect to reports prepared by the Government 
     Accountability Office, the reports designated--
       (i) GAO-05-212;
       (ii) GAO-02-47T;
       (iii) GAO/T-RCED-94-223;
       (iv) GAO/RCED-99-80;
       (v) GAO/T-RCED-98-191;
       (vi) GAO/RCED-98-103;
       (vii) GAO-07-785T;
       (viii) GAO-05-51;
       (ix) GAO/T-RCED-94-311;
       (x) GAO/RCED-92-152;
       (xi) GAO/T-RCED-99-232;
       (xii) GAO/T-RCED-98-271;
       (xiii) GAO-07-449T;
       (xiv) GAO-05-213;
       (xv) GAO-04-588T;
       (xvi) GAO/RCED-00-255;
       (xvii) GAO/RCED-00-195; and
       (xviii) GAO/T-RCED-99-256.
       (3) Report.--Not later than 360 days after the date on 
     which the Commission first meets, the Commission shall submit 
     to the President and Congress a report that includes the 
     report and summaries, statutory language recommendations, and 
     budget recommendations described in clauses (ii) and (iii) of 
     subsection (a)(1)(B).
       (c) Powers of the Commission.--
       (1) Hearings.--The Commission or, at the direction of the 
     Commission, any member of the Commission, may, for the 
     purpose of carrying out this section--
       (A) hold such hearings, meet and act at such times and 
     places, take such testimony, receive such evidence, and 
     administer such oaths; and
       (B) require the attendance and testimony of such witnesses 
     and the production of such books, records, correspondence, 
     memoranda, papers, documents, tapes, and materials;

     as the Commission or member considers advisable.
       (2) Information from federal agencies.--
       (A) In general.--The Commission may secure directly, from 
     any Federal agency, such information as the Commission 
     considers necessary to carry out this section.
       (B) Provision of information.--
       (i) In general.--Subject to subparagraph (C), on the 
     request of the Commission, the head of a Federal agency 
     described in subparagraph (A) shall expeditiously furnish 
     information requested by the Commission to the Commission.
       (ii) Administration.--The furnishing of information by a 
     Federal agency to the Commission shall not be considered a 
     waiver of any exemption available to the agency under section 
     552 of title 5, United States Code.
       (C) Information to be kept confidential.--For purposes of 
     section 1905 of title 18, United States Code--
       (i) the Commission shall be considered an agency of the 
     Federal Government; and
       (ii) any individual employed by an individual, entity, or 
     organization that is a party to a contract with the 
     Commission under this section shall be considered an employee 
     of the Commission.
       (d) Commission Personnel Matters.--
       (1) Members.--
       (A) Non-federal employees.--A member of the Commission who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (B) Federal employees.--A member of the Commission who is 
     an officer or employee of the Federal Government shall serve 
     without compensation in addition to the compensation received 
     for the services of the member as an officer or employee of 
     the Federal Government.
       (C) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (2) Staff.--
       (A) Executive director.--Not later than 30 days after the 
     Chairperson and Vice-Chairperson of the Commission are 
     selected under subsection (a)(4), the Chairperson and Vice-
     Chairperson shall jointly select an individual to serve as 
     executive director of the Commission.
       (B) Additional staff.--The Chairperson of the Commission 
     may, without regard to the civil service laws (including 
     regulations), appoint and terminate the appointment of such 
     other additional personnel as are necessary to enable the 
     Commission to perform the duties of the Commission.
       (C) Confirmation of executive director.--The employment of 
     an executive director under this paragraph shall be subject 
     to confirmation by the Commission.
       (D) Compensation.--
       (i) In general.--Except as provided in clause (ii), the 
     Chairperson of the Commission may fix the compensation of the 
     executive director and other personnel without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates.
       (ii) Maximum rate of pay.--The rate of pay for the 
     executive director and other personnel shall not exceed the 
     rate payable for level II of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (3) Detail of federal government employees.--
       (A) In general.--An employee of the Federal Government may 
     be detailed to the Commission, without reimbursement, for 
     such period of time as is permitted by law.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (4) Procurement of temporary and intermittent services.--
     The Chairperson, Vice-Chairperson, and executive director of 
     the

[[Page 29353]]

     Commission may procure temporary and intermittent services in 
     accordance with section 3109(b) of title 5, United States 
     Code, at rates for individuals that do not exceed the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level IV of the Executive Schedule under section 5316 of that 
     title.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (f) Termination.--The Commission shall terminate on the 
     date that is 60 days after the date on which the Commission 
     submits the report under subsection (b)(2).

     SEC. 11061. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND 
                   SEASONAL FARMWORKERS.

       Section 2281 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (42 U.S.C. 5177a) is amended to read as 
     follows:

     ``SEC. 2281. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT 
                   AND SEASONAL FARMWORKERS.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means a 
     public agency, community-based organization, or network of 
     community-based organizations with tax-exempt status under 
     section 501(c)(3) of the Internal Revenue Code of 1986, that 
     has at least 5 years of demonstrated experience in 
     representing and providing emergency services to low-income 
     migrant or seasonal farmworkers
       ``(2) Low-income migrant or seasonal farmworker.--The term 
     `low-income migrant or seasonal farmworker' means an 
     individual--
       ``(A) who has, during any consecutive 12-month period 
     within the preceding 24-month period, performed farm work for 
     wages;
       ``(B) who has received not less than \1/2\ of the total 
     income of the individual from, or been employed at least \1/
     2\ of total work time in, farm work; and
       ``(C) whose annual family income during the 12-month period 
     described in paragraph (1) does not exceed the higher of, as 
     determined by the Secretary--
       ``(i) 185 percent of the most recent annual Federal Poverty 
     Income Guidelines published by the Department of Health and 
     Human Services; or
       ``(ii) 70 percent of the lower living standard income 
     level.
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(b) Grants Available.--The Secretary may make grants to 
     eligible entities if the Secretary determines that a local, 
     State, or national emergency or disaster has caused low-
     income migrant or seasonal farmworkers--
       ``(1) to lose income;
       ``(2) to be unable to work; or
       ``(3) to stay home or return home in anticipation of work 
     shortages.
       ``(c) Use of Funds.--As a condition of receiving a grant 
     under subsection (b), an eligible entity shall use the grant 
     to provide emergency services to low-income migrant or 
     seasonal farmworkers, with a focus on--
       ``(1) assistance that allows low-income migrant or seasonal 
     farmworkers to meet or access other resources to meet short-
     term emergency family needs for food, clothing, employment, 
     transportation, and housing;
       ``(2) assistance that allows low-income and migrant 
     seasonal farmworkers to remain in a disaster area; and
       ``(3) such other priorities that the Secretary determines 
     to be appropriate.
       ``(d) Disaster Fund.--
       ``(1) In general.--The Secretary shall maintain a disaster 
     fund of $2,000,000 to be used for immediate assistance for 
     events described in subsection (b).
       ``(2) Funding.--There are authorized to be appropriated to 
     the Secretary such sums as are necessary to maintain the 
     disaster fund at $2,000,000 for each of fiscal years 2008 
     through 2012.''.

     SEC. 11062. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES 
                   FROM ANHYDROUS AMMONIA.

       (a) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means--
       (A) a producer of agricultural commodities;
       (B) a cooperative association, a majority of the members of 
     which produce or process agricultural commodities; or
       (C) a person in the trade or business of--
       (i) selling an agricultural product (including an 
     agricultural chemical) at retail, predominantly to farmers 
     and ranchers; or
       (ii) aerial and ground application of an agricultural 
     chemical.
       (2) Nurse tank.--The term ``nurse tank'' shall be 
     considered to be a cargo tank (within the meaning of section 
     173.315(m) of title 49, Code of Federal Regulations, as in 
     effect as of the date of the enactment of this Act).
       (b) Grant Authority.--The Secretary may make a grant to an 
     eligible entity to enable the eligible entity to obtain and 
     add to an anhydrous ammonia fertilizer nurse tank a physical 
     lock or a substance to reduce the amount of methamphetamine 
     that can be produced from any anhydrous ammonia removed from 
     the nurse tank.
       (c) Grant Amount.--The amount of a grant made under this 
     section to an eligible entity shall be the product obtained 
     by multiplying--
       (1) an amount not less than $40 and not more than $60, as 
     determined by the Secretary; and
       (2) the number of fertilizer nurse tanks of the eligible 
     entity.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to make grants under this 
     section $15,000,000 for the period of fiscal years 2008 
     through 2012.

     SEC. 11063. INVASIVE SPECIES MANAGEMENT, HAWAII.

       (a) Definitions.--In this section:
       (1) Secretaries.--The term ``Secretaries'' means--
       (A) the Secretary of the Interior;
       (B) the Secretary of Agriculture; and
       (C) the Secretary of Homeland Security.
       (2) Secretary concerned.--The term ``Secretary concerned'' 
     means--
       (A) the Secretary of the Interior, with respect to matters 
     under the jurisdiction of the Department of the Interior;
       (B) the Secretary of Agriculture, with respect to matters 
     under the jurisdiction of the Department of Agriculture; and
       (C) the Secretary of Homeland Security, with respect to 
     matters under the jurisdiction of the Department of Homeland 
     Security.
       (3) State.--The term ``State'' means the State of Hawaii.
       (b) Controlling Introduction and Spread of Invasive Species 
     and Diseases in the State.--
       (1) Consultation and cooperation.--The Secretaries 
     concerned shall--
       (A) with respect to restricting the introduction or 
     movement of invasive species and diseases into the State, 
     consult and cooperate with the State; and
       (B) in carrying out the activities described in this 
     subsection, consult and cooperate with appropriate agencies 
     and officers with experience relating to quarantine 
     procedures, natural resources, conservation, and law 
     enforcement of--
       (i) the Department of Homeland Security;
       (ii) the Department of Commerce;
       (iii) the United States Treasury; and
       (iv) the State.
       (2) Development of collaborative federal and state 
     procedures.--The Secretaries, in collaboration with the 
     State, shall--
       (A) develop procedures to minimize the introduction of 
     invasive species into the State; and
       (B) submit to Congress annual reports describing progress 
     made and results achieved in carrying out the procedures.
       (3) Expedited consideration of state and local control 
     proposals.--
       (A) Expedited process.--Not later than 1 year after the 
     date of enactment of this Act, the Secretaries shall 
     establish an expedited process for the State and political 
     subdivisions of the State under which the State and political 
     subdivisions may, through the submission of an application, 
     seek approval of the Secretary concerned to impose a general 
     or specific prohibition or restriction on the introduction or 
     movement of invasive species or diseases from domestic or 
     foreign locations to the State that is in addition to the 
     applicable prohibition or restriction imposed by the 
     Secretary concerned.
       (B) Review period.--Not later than 60 days after the date 
     of receipt by the Secretary concerned of an application under 
     subparagraph (A) that the Secretary concerned determines to 
     be a completed application, the Secretary concerned shall--
       (i) review the completed application;
       (ii) assess each potential risk with respect to the 
     completed application; and
       (iii) approve or disapprove the completed application.
       (4) Response to emergency threats.--
       (A) In general.--The State may carry out an emergency 
     action to impose a prohibition or restriction on the entry of 
     an invasive species or disease that is in addition to the 
     applicable prohibition or restriction imposed by the 
     Secretary concerned if--
       (i) the State has submitted to the Secretary concerned a 
     completed application under paragraph (3) that is pending 
     approval by the Secretary concerned; and
       (ii) an emergency or imminent threat from an invasive 
     species or disease occurs in the State during the period in 
     which the completed application described in clause (i) is 
     pending approval by the Secretary concerned.
       (B) Notice.--Before carrying out an emergency action under 
     subparagraph (A), the State shall provide written notice to 
     the Secretary concerned.
       (C) Period of emergency action.--If, by the date that is 10 
     days after the date of receipt of a written notice under 
     subparagraph (B), the Secretary concerned does not object to 
     the emergency action that is the subject of the notice, the 
     State may carry out the emergency action during the 60-day 
     period beginning on that date.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretaries such sums as are 
     necessary to carry out this section for each of fiscal years 
     2008 through 2012.

[[Page 29354]]



     SEC. 11064. OVERSIGHT AND COMPLIANCE.

       The Secretary, acting through the Assistant Secretary for 
     Civil Rights of the Department of Agriculture, shall use the 
     reports described in subsection (c) of section 2501A of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 2279-1) (as amended by section 11056) in the conduct 
     of oversight and evaluation of civil rights compliance.

     SEC. 11065. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS, 
                   AND ACTIONS.

       Each year, the Secretary shall--
       (1) prepare a report that describes, for each agency of the 
     Department of Agriculture--
       (A) the number of civil rights complaints filed that relate 
     to the agency, including whether a complaint is a program 
     complaint or an employment complaint;
       (B) the length of time the agency took to process each 
     civil rights complaint;
       (C) the number of proceedings brought against the agency, 
     including the number of complaints described in paragraph (1) 
     that were resolved with a finding of discrimination; and
       (D) the number and type of personnel actions taken by the 
     agency following resolution of civil rights complaints;
       (2) submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a copy of the report; and
       (3) make the report available to the public by posting the 
     report on the website of the Department.

     SEC. 11066. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND 
                   TRAINING OF AGRICULTURAL LABOR FORCE.

       (a) Definition of Eligible Entity.--In this section, the 
     term ``eligible entity'' means a nonprofit, community-based 
     organization, or a consortium of nonprofit, community-based 
     organizations, agricultural labor organizations, farmer or 
     rancher cooperatives, and public entities, that has the 
     capacity (including demonstrated experience in providing 
     training, housing, or emergency services to migrant and 
     seasonal farmworkers) to assist agricultural employers and 
     farmworkers with improvements in the supply, stability, 
     safety, and training of the agricultural labor force.
       (b) Grants.--
       (1) In general.--The Secretary may provide grants to 
     eligible entities for use in providing services to assist 
     farmworkers in securing, retaining, upgrading, or returning 
     from agricultural jobs.
       (2) Eligible services.--The services referred to in 
     paragraph (1) include--
       (A) agricultural upgrading and cross training;
       (B) the provision of agricultural labor market information;
       (C) transportation;
       (D) short-term housing, including housing for unaccompanied 
     farmworkers and at migrant rest stops;
       (E) travelers' aid;
       (F) workplace literacy and assistance with English as a 
     second language;
       (G) health and safety instruction, including ways of 
     safeguarding the food supply of the United States; and
       (H) limited emergency and financial assistance, in cases in 
     which the Secretary determines that a national, State, or 
     local emergency or disaster has caused migrant or seasonal 
     farmworkers to lose income or employment.
       (3) Emergency assistance.--Any emergency services provided 
     using funds from a grant in accordance with paragraph 
     (2)(H)--
       (A) shall be consistent with section 2281 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (as amended 
     by section 11061);
       (B) shall be focused on assistance to allow low-income 
     farmworkers and their families to meet short-term needs for 
     such food, clothing, employment, transportation, and housing 
     as are necessary to regain employment or return home; and
       (C) may include such other types of assistance as the 
     Secretary determines to be appropriate.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section for each of fiscal years 2008 through 2012.

     SEC. 11067. INTERSTATE SHIPMENT OF MEAT AND POULTRY INSPECTED 
                   BY FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL 
                   ESTABLISHMENTS.

       (a) Meat and Meat Products.--The Federal Meat Inspection 
     Act (21 U.S.C. 601 et seq.) is amended by adding at the end 
     the following:

          ``TITLE V--INSPECTIONS BY FEDERAL AND STATE AGENCIES

     ``SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL 
                   AND STATE AGENCIES FOR CERTAIN SMALL 
                   ESTABLISHMENTS.

       ``(a) Definitions.--
       ``(1) Appropriate state agency.--The term `appropriate 
     State agency' means a State agency described in section 
     301(b).
       ``(2) Designated personnel.--The term `designated 
     personnel' means inspection personnel of a State agency that 
     have undergone all necessary inspection training and 
     certification to assist the Secretary in the administration 
     and enforcement of this Act, including regulations.
       ``(3) Eligible establishment.--The term `eligible 
     establishment' means an establishment that is in compliance 
     with--
       ``(A) the State inspection program of the State in which 
     the establishment is located; and
       ``(B) this Act.
       ``(4) Meat item.--The term `meat item' means--
       ``(A) a portion of meat; and
       ``(B) a meat food product.
       ``(5) Selected establishment.--The term `selected 
     establishment' means an eligible establishment that is 
     selected by the Secretary, in coordination with the 
     appropriate State agency of the State in which the eligible 
     establishment is located, under subsection (b) to ship 
     carcasses, portions of carcasses, and meat items in 
     interstate commerce.
       ``(b) Authority of Secretary to Allow Shipments.--
       ``(1) In general.--Subject to paragraph (2), the Secretary, 
     in coordination with the appropriate State agency of the 
     State in which an establishment is located, may select the 
     establishment to ship carcasses, portions of carcasses, and 
     meat items in interstate commerce, and place on each carcass, 
     portion of a carcass, and meat item shipped in interstate 
     commerce a Federal mark, stamp, tag, or label of inspection, 
     if the establishment--
       ``(A) is an eligible establishment; and
       ``(B) is located in a State that has designated personnel 
     to inspect the eligible establishment.
       ``(2) Prohibited establishments.--In carrying out paragraph 
     (1), the Secretary, in coordination with an appropriate State 
     agency, shall not select an establishment that--
       ``(A) on average, employs more than 25 employees (including 
     supervisory and nonsupervisory employees), as defined by the 
     Secretary;
       ``(B) as of the date of enactment of this section, ships in 
     interstate commerce carcasses, portions of carcasses, or meat 
     items that are inspected by the Secretary in accordance with 
     this Act;
       ``(C)(i) is a Federal establishment;
       ``(ii) was a Federal establishment that was reorganized on 
     a later date under the same name or a different name or 
     person by the person, firm, or corporation that controlled 
     the establishment as of the date of enactment of this 
     section; or
       ``(iii) was a State establishment as of the date of 
     enactment of this section that--
       ``(I) as of the date of enactment of this section, employed 
     more than 25 employees; and
       ``(II) was reorganized on a later date by the person, firm, 
     or corporation that controlled the establishment as of the 
     date of enactment of this section;
       ``(D) is in violation of this Act;
       ``(E) is located in a State that does not have a State 
     inspection program; or
       ``(F) is the subject of a transition carried out in 
     accordance with a procedure developed by the Secretary under 
     paragraph (3)(A).
       ``(3) Establishments that employ more than 25 employees.--
       ``(A) Development of procedure.--The Secretary may develop 
     a procedure to transition to a Federal establishment any 
     establishment under this section that, on average, 
     consistently employs more than 25 employees.
       ``(B) Eligibility of certain establishments.--
       ``(i) In general.--A State establishment that employs more 
     than 25 employees but less than 35 employees as of the date 
     of enactment of this section may be selected as a selected 
     establishment under this subsection.
       ``(ii) Procedures.--A State establishment shall be subject 
     to the procedures established under subparagraph (A) 
     beginning on the date that is 3 years after the effective 
     date described in subsection (j).
       ``(c) Reimbursement of State Costs.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall reimburse a State for costs related to the 
     inspection of selected establishments in the State in 
     accordance with Federal requirements in an amount of not less 
     than 60 percent of eligible State costs.
       ``(2) Microbiological verification testing.--The Secretary 
     may reimburse a State for 100 percent of eligible State costs 
     relating to the inspection of selected establishments in the 
     State, if the State provides additional microbiological 
     verification testing of the selected establishments, using 
     standards under this Act, that is in excess of the typical 
     verification testing frequency of the Federal Government with 
     respect to Federal establishments.
       ``(d) Coordination Between Federal and State Agencies.--
       ``(1) In general.--The Secretary shall designate an 
     employee of the Federal Government as State coordinator for 
     each appropriate State agency--
       ``(A) to provide oversight and enforcement of this title; 
     and
       ``(B) to oversee the training and inspection activities of 
     designated personnel of the State agency.
       ``(2) Supervision.--A State coordinator shall be under the 
     direct supervision of the Secretary.

[[Page 29355]]

       ``(3) Duties of state coordinator.--
       ``(A) In general.--A State coordinator shall visit selected 
     establishments with a frequency that is appropriate to ensure 
     that selected establishments are operating in a manner that 
     is consistent with this Act (including regulations and 
     policies under this Act).
       ``(B) Quarterly reports.--A State coordinator shall, on a 
     quarterly basis, submit to the Secretary a report that 
     describes the status of each selected establishment that is 
     under the jurisdiction of the State coordinator with respect 
     to the level of compliance of each selected establishment 
     with the requirements of this Act.
       ``(C) Immediate notification requirement.--If a State 
     coordinator determines that any selected establishment that 
     is under the jurisdiction of the State coordinator is in 
     violation of any requirement of this Act, the State 
     coordinator shall--
       ``(i) immediately notify the Secretary of the violation; 
     and
       ``(ii) deselect the selected establishment or suspend 
     inspection at the selected establishment.
       ``(4) Performance evaluations.--Performance evaluations of 
     State coordinators designated under this subsection shall be 
     conducted by the Secretary as part of the Federal agency 
     management control system.
       ``(e) Audits.--
       ``(1) Periodic audits conducted by inspector general of the 
     department of agriculture.--Not later than 2 years after the 
     effective date described in subsection (j), and not less 
     often than every 2 years thereafter, the Inspector General of 
     the Department of Agriculture shall conduct an audit of each 
     activity taken by the Secretary under this section for the 
     period covered by the audit to determine compliance with this 
     section.
       ``(2) Audit conducted by comptroller general of the united 
     states.--Not earlier than 3 years, nor later than 5 years, 
     after the date of enactment of this section, the Comptroller 
     General of the United States shall conduct an audit of the 
     implementation of this section to determine--
       ``(A) the effectiveness of the implementation of this 
     section; and
       ``(B) the number of selected establishments selected by the 
     Secretary under this section.
       ``(f) Inspection Training Division.--
       ``(1) Establishment.--Not later than 180 days after the 
     effective date described in subsection (j), the Secretary 
     shall establish in the Food Safety and Inspection Service of 
     the Department of Agriculture an inspection training division 
     to coordinate the initiatives of any other appropriate agency 
     of the Department of Agriculture to provide--
       ``(A) outreach, education, and training to very small or 
     certain small establishments (as defined by the Secretary); 
     and
       ``(B) grants to appropriate State agencies to provide 
     outreach, technical assistance, education, and training to 
     very small or certain small establishments (as defined by the 
     Secretary).
       ``(2) Personnel.--The inspection training division shall be 
     comprised of individuals that, as determined by the 
     Secretary--
       ``(A) are of a quantity sufficient to carry out the duties 
     of the inspection training division; and
       ``(B) possess appropriate qualifications and expertise 
     relating to the duties of the inspection training division.
       ``(g) Transition Grants.--The Secretary may provide grants 
     to appropriate State agencies to assist the appropriate State 
     agencies in helping establishments covered by title III to 
     transition to selected establishments.
       ``(h) Violations.--Any selected establishment that the 
     Secretary determines to be in violation of any requirement of 
     this Act shall be transitioned to a Federal establishment in 
     accordance with a procedure developed by the Secretary under 
     subsection (b)(3)(A).
       ``(i) Effect.--Nothing in this section limits the 
     jurisdiction of the Secretary with respect to the regulation 
     of meat and meat products under this Act.
       ``(j) Effective Date.--
       ``(1) In general.--This section takes effect on the date on 
     which the Secretary, after providing a period of public 
     comment (including through the conduct of public meetings or 
     hearings), promulgates final regulations to carry out this 
     section.
       ``(2) Requirement.--Not later than 18 months after the date 
     of enactment of this section, the Secretary shall promulgate 
     final regulations in accordance with paragraph (1).''.
       (b) Poultry and Poultry Products.--The Poultry Products 
     Inspection Act (21 U.S.C. 451 et seq.) is amended by adding 
     at the end the following:

     ``SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY 
                   FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL 
                   ESTABLISHMENTS.

       ``(a) Definitions.--
       ``(1) Appropriate state agency.--The term `appropriate 
     State agency' means a State agency described in section 
     5(a)(1).
       ``(2) Designated personnel.--The term `designated 
     personnel' means inspection personnel of a State agency that 
     have undergone all necessary inspection training and 
     certification to assist the Secretary in the administration 
     and enforcement of this Act, including regulations.
       ``(3) Eligible establishment.--The term `eligible 
     establishment' means an establishment that is in compliance 
     with--
       ``(A) the State inspection program of the State in which 
     the establishment is located; and
       ``(B) this Act.
       ``(4) Poultry item.--The term `poultry item' means--
       ``(A) a portion of poultry; and
       ``(B) a poultry product.
       ``(5) Selected establishment.--The term `selected 
     establishment' means an eligible establishment that is 
     selected by the Secretary, in coordination with the 
     appropriate State agency of the State in which the eligible 
     establishment is located, under subsection (b) to ship 
     poultry items in interstate commerce.
       ``(b) Authority of Secretary to Allow Shipments.--
       ``(1) In general.--Subject to paragraph (2), the Secretary, 
     in coordination with the appropriate State agency of the 
     State in which an establishment is located, may select the 
     establishment to ship poultry items in interstate commerce, 
     and place on each poultry item shipped in interstate commerce 
     a Federal mark, stamp, tag, or label of inspection, if the 
     establishment--
       ``(A) is an eligible establishment; and
       ``(B) is located in a State that has designated personnel 
     to inspect the eligible establishment.
       ``(2) Prohibited establishments.--In carrying out paragraph 
     (1), the Secretary, in coordination with an appropriate State 
     agency, shall not select an establishment that--
       ``(A) on average, employs more than 25 employees (including 
     supervisory and nonsupervisory employees), as defined by the 
     Secretary;
       ``(B) as of the date of enactment of this section, ships in 
     interstate commerce carcasses, poultry items that are 
     inspected by the Secretary in accordance with this Act;
       ``(C)(i) is a Federal establishment;
       ``(ii) was a Federal establishment as of the date of 
     enactment of this section, and was reorganized on a later 
     date under the same name or a different name or person by the 
     person, firm, or corporation that controlled the 
     establishment as of the date of enactment of this section; or
       ``(iii) was a State establishment as of the date of 
     enactment of this section that--
       ``(I) as of the date of enactment of this section, employed 
     more than 25 employees; and
       ``(II) was reorganized on a later date by the person, firm, 
     or corporation that controlled the establishment as of the 
     date of enactment of this section;
       ``(D) is in violation of this Act;
       ``(E) is located in a State that does not have a State 
     inspection program; or
       ``(F) is the subject of a transition carried out in 
     accordance with a procedure developed by the Secretary under 
     paragraph (3)(A).
       ``(3) Establishments that employ more than 25 employees.--
       ``(A) Development of procedure.--The Secretary may develop 
     a procedure to transition to a Federal establishment any 
     establishment under this section that, on average, 
     consistently employs more than 25 employees.
       ``(B) Eligibility of certain establishments.--
       ``(i) In general.--A State establishment that employs more 
     than 25 employees but less than 35 employees as of the date 
     of enactment of this section may be selected as a selected 
     establishment under this subsection.
       ``(ii) Procedures.--A State establishment shall be subject 
     to the procedures established under subparagraph (A) 
     beginning on the date that is 3 years after the effective 
     date described in subsection (i).
       ``(c) Reimbursement of State Costs.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall reimburse a State for costs related to the 
     inspection of selected establishments in the State in 
     accordance with Federal requirements in an amount of not less 
     than 60 percent of eligible State costs.
       ``(2) Microbiological verification testing.--The Secretary 
     may reimburse a State for 100 percent of eligible State costs 
     relating to the inspection of selected establishments in the 
     State, if the State provides additional microbiological 
     verification testing of the selected establishments, using 
     standards under this Act, that is in excess of the typical 
     verification testing frequency of the Federal Government with 
     respect to Federal establishments.
       ``(d) Coordination Between Federal and State Agencies.--
       ``(1) In general.--The Secretary shall designate an 
     employee of the Federal Government as State coordinator for 
     each appropriate State agency--
       ``(A) to provide oversight and enforcement of this section; 
     and
       ``(B) to oversee the training and inspection activities of 
     designated personnel of the State agency.
       ``(2) Supervision.--A State coordinator shall be under the 
     direct supervision of the Secretary.
       ``(3) Duties of state coordinator.--

[[Page 29356]]

       ``(A) In general.--A State coordinator shall visit selected 
     establishments with a frequency that is appropriate to ensure 
     that selected establishments are operating in a manner that 
     is consistent with this Act (including regulations and 
     policies under this Act).
       ``(B) Quarterly reports.--A State coordinator shall, on a 
     quarterly basis, submit to the Secretary a report that 
     describes the status of each selected establishment that is 
     under the jurisdiction of the State coordinator with respect 
     to the level of compliance of each selected establishment 
     with the requirements of this Act.
       ``(C) Immediate notification requirement.--If a State 
     coordinator determines that any selected establishment that 
     is under the jurisdiction of the State coordinator is in 
     violation of any requirement of this Act, the State 
     coordinator shall--
       ``(i) immediately notify the Secretary of the violation; 
     and
       ``(ii) deselect the selected establishment or suspend 
     inspection at the selected establishment.
       ``(4) Performance evaluations.--Performance evaluations of 
     State coordinators designated under this subsection shall be 
     conducted by the Secretary as part of the Federal agency 
     management control system.
       ``(e) Audits.--
       ``(1) Periodic audits conducted by inspector general of the 
     department of agriculture.--Not later than 2 years after the 
     effective date described in subsection (i), and not less 
     often than every 2 years thereafter, the Inspector General of 
     the Department of Agriculture shall conduct an audit of each 
     activity taken by the Secretary under this section for the 
     period covered by the audit to determine compliance with this 
     section.
       ``(2) Audit conducted by comptroller general of the united 
     states.--Not earlier than 3 years, nor later than 5 years, 
     after the date of enactment of this section, the Comptroller 
     General of the United States shall conduct an audit of the 
     implementation of this section to determine--
       ``(A) the effectiveness of the implementation of this 
     section; and
       ``(B) the number of selected establishments selected by the 
     Secretary under this section.
       ``(f) Transition Grants.--The Secretary may provide grants 
     to appropriate State agencies to assist the appropriate State 
     agencies in helping establishments covered by this Act to 
     transition to selected establishments.
       ``(g) Violations.--Any selected establishment that the 
     Secretary determines to be in violation of any requirement of 
     this Act shall be transitioned to a Federal establishment in 
     accordance with a procedure developed by the Secretary under 
     subsection (b)(3)(A).
       ``(h) Effect.--Nothing in this section limits the 
     jurisdiction of the Secretary with respect to the regulation 
     of poultry and poultry products under this Act.
       ``(i) Effective Date.--
       ``(1) In general.--This section takes effect on the date on 
     which the Secretary, after providing a period of public 
     comment (including through the conduct of public meetings or 
     hearings), promulgates final regulations to carry out this 
     section.
       ``(2) Requirement.--Not later than 18 months after the date 
     of enactment of this section, the Secretary shall promulgate 
     final regulations in accordance with paragraph (1).''.

     SEC. 11068. PREVENTION AND INVESTIGATION OF PAYMENT AND FRAUD 
                   AND ERROR.

       Section 1113 of the Right to Financial Privacy Act of 1978 
     (12 U.S.C. 3413) is amended by striking subsection (k) and 
     inserting the following:
       ``(k) Disclosure Necessary for Proper Administration of 
     Programs of Certain Government Authorities.--
       ``(1) Disclosure to government authorities.--Nothing in 
     this title shall apply to the disclosure by the financial 
     institution of the financial records of any customer to the 
     Department of the Treasury, the Social Security 
     Administration, the Railroad Retirement Board, or any other 
     Government authority that certifies, disburses, or collects 
     payments, when the disclosure of such information is 
     necessary to, and such information is used solely for the 
     purposes of--
       ``(A) the proper administration of section 1441 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 1441);
       ``(B) the proper administration of title II of the Social 
     Security Act (42 U.S.C. 401 et seq.);
       ``(C) the proper administration of the Railroad Retirement 
     Act of 1974 (45 U.S.C. 231 et seq.);
       ``(D) the verification of the identify of any person in 
     connection with the issuance of a Federal payment or 
     collection of funds by a Government authority; or
       ``(E) the investigation or recovery of an improper Federal 
     payment or collection of funds, or an improperly negotiated 
     Treasury check.
       ``(2) Limitations on subsequent disclosure.--
     Notwithstanding any other provision of law, any request 
     authorized by paragraph (1), and the information contained 
     therein, may be used by the financial institution and its 
     agents solely for the purpose of providing the customer's 
     financial records to the Government authority requesting the 
     information and shall be barred from redisclosure by the 
     financial institution or its agents. Any Government authority 
     receiving information pursuant to paragraph (1) may not 
     disclose or use the information except for the purposes set 
     forth in such paragraph.''.

     SEC. 11069. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE 
                   TO COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.

       (a) Elimination.--Section 3716 of title 31, United States 
     Code, is amended by striking subsection (e) and inserting the 
     following:
       ``(e)(1) Notwithstanding any other provision of law, 
     regulation, or administrative limitation, no limitation on 
     the period within which an offset may be initiated or taken 
     pursuant to this section shall be effective.
       ``(2) This section does not apply when a statute explicitly 
     prohibits using administrative offset or setoff to collect 
     the claim or type of claim involved.''.
       (b) Application of Amendment.--The amendment made by 
     subsection (a) shall apply to any debt outstanding on or 
     after the date of the enactment of this Act.

     SEC. 11070. STORED QUANTITIES OF PROPANE.

       Section 550(a) of the Department of Homeland Security 
     Appropriations Act, 2007 (6 U.S.C. 121 note; Public Law 109-
     295), is amended by striking ``Commission.'' and inserting 
     the following:

     ``Commission: Provided further, That the Secretary shall not 
     apply interim or final regulations relating to stored 
     threshold quantities of propane for sale, storage, or use on 
     homestead property, agricultural operations, or small 
     business concerns (as defined in section 3 of the Small 
     Business Act (15 U.S.C. 632)) that are located in rural areas 
     (as defined in section 520 of the Housing Act of 1949 (42 
     U.S.C. 1490)), unless the Secretary submits to Congress a 
     report describing an immediate or imminent threat against 
     such a stored quantity of propane: Provided further, That 
     nothing in this section exempts the Secretary from 
     implementing any interim or final regulation relating to 
     stored threshold quantities of propane for sale, use, or 
     storage in an area that is not a rural areas (as so 
     defined).''.

     SEC. 11071. CLOSURE OF CERTAIN COUNTY FSA OFFICES.

       (a) Definition of Critical Access County FSA Office.--
       (1) In general.--In this section, the term ``critical 
     access county FSA office'' means an office of the Farm 
     Service Agency that, during the period described in paragraph 
     (2), is--
       (A) proposed to be closed;
       (B) proposed to be closed with the closure delayed until 
     after January 1, 2008, due to additional review pursuant to 
     the third proviso of matter under the heading ``salaries and 
     expenses'' under the heading ``Farm Service Agency'' of the 
     Agriculture, Rural Development, Food and Drug Administration, 
     and Related Agencies Appropriations Act, 2006 (Public Law 
     109-97; 119 Stat. 2131); or
       (C) included on a list of critical access county FSA 
     offices determined in accordance with that Act and submitted 
     to the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate by the Secretary on October 24, 2007.
       (2) Description of period.--The period referred to in 
     paragraph (1) is the period beginning on November 10, 2005, 
     and ending on December 31, 2007.
       (3) Exception.--The term ``critical access county FSA 
     office'' does not include any office of the Farm Service 
     Agency that--
       (A) is located not more than 20 miles from another office 
     of the Farm Service Agency, unless the office is located 
     within an identified limited-resource area consisting of at 
     least 4 contiguous high-poverty counties; or
       (B) employs no full-time equivalent employees as of the 
     date of enactment of this Act.
       (b) Extension of Period of Operation.--
       (1) In general.--Notwithstanding any other provision of 
     law, except as provided in paragraph (3), none of the funds 
     made available to the Secretary by any Act may be used to pay 
     the salaries or expenses of any officer or employee of the 
     Department of Agriculture to close any critical access county 
     FSA office during the period beginning on November 1, 2007, 
     and ending on September 30, 2012.
       (2) Number of employees.--
       (A) In general.--Subject to subparagraphs (B) and (C), the 
     Secretary shall ensure that each critical access county FSA 
     office in each State maintains a staff level of not less than 
     3 full-time equivalent employees during the period described 
     in paragraph (1).
       (B) Staffing flexibility.--Notwithstanding subparagraph (A) 
     and subject to subparagraph (C), an employee required to meet 
     the staff level of a critical access county FSA office in a 
     State as described in subparagraph (A) may be employed at any 
     other county office of the Farm Service Agency in that State, 
     as the Secretary determines to be appropriate.
       (C) Minimum staffing level.--A critical access county FSA 
     office shall be staffed by not less than 1 full-time 
     equivalent employee during the period described in paragraph 
     (1).
       (3) Exception.--The Secretary may close a critical access 
     county FSA office only on

[[Page 29357]]

     concurrence in the determination to close the critical access 
     county FSA office by--
       (A) Congress; and
       (B) the applicable State Farm Service Agency committee.

                  TITLE XII--TRADE AND TAX PROVISIONS

     SEC. 12001. SHORT TITLE; ETC.

       (a) Short Title.--This title may be cited as the 
     ``Heartland, Habitat, Harvest, and Horticulture Act of 
     2007''.
       (b) Amendments to 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

  Subtitle A--Supplemental Agricultural Disaster Assistance From the 
                 Agriculture Disaster Relief Trust Fund

     SEC. 12101. SUPPLEMENTAL AGRICULTURE DISASTER ASSISTANCE.

       (a) In General.--The Trade Act of 1974 (19 U.S.C. 2101 et 
     seq.) is amended by adding at the end the following:

        ``TITLE IX--SUPPLEMENTAL AGRICULTURE DISASTER ASSISTANCE

     ``SEC. 901. PERMANENT AUTHORITY FOR SUPPLEMENTAL REVENUE 
                   ASSISTANCE.

       ``(a) Definitions.--In this section:
       ``(1) Actual production history yield.--The term `actual 
     production history yield' means the weighted average actual 
     production history for each insurable commodity or 
     noninsurable commodity, as calculated under the Federal Crop 
     Insurance Act (7 U.S.C. 1501 et seq.) or the noninsured crop 
     disaster assistance program, respectively.
       ``(2) Counter-cyclical program payment yield.--The term 
     `counter-cyclical program payment yield' means the weighted 
     average payment yield established under section 1102 of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     7912).
       ``(3) Disaster county.--
       ``(A) In general.--The term `disaster county' means a 
     county included in the geographic area covered by a 
     qualifying natural disaster declaration.
       ``(B) Inclusion.--The term `disaster county' includes--
       ``(i) a county contiguous to a county described in 
     subparagraph (A); and
       ``(ii) any farm in which, during a calendar year, the total 
     loss of production of the farm relating to weather is greater 
     than 50 percent of the normal production of the farm, as 
     determined by the Secretary.
       ``(4) Eligible producer on a farm.--
       ``(A) In general.--The term `eligible producer on a farm' 
     means an individual or entity described in subparagraph (B) 
     that, as determined by the Secretary, assumes the production 
     and market risks associated with the agricultural production 
     of crops or livestock.
       ``(B) Description.--An individual or entity referred to in 
     subparagraph (A) is--
       ``(i) a citizen of the United States;
       ``(ii) a resident alien;
       ``(iii) a partnership of citizens of the United States; or
       ``(iv) a corporation, limited liability corporation, or 
     other farm organizational structure organized under State 
     law.
       ``(5) Farm.--
       ``(A) In general.--The term `farm' means, in relation to an 
     eligible producer on a farm, the sum of all crop acreage in 
     all counties that --
       ``(i) is used for grazing by the eligible producer; or
       ``(ii) is planted or intended to be planted for harvest by 
     the eligible producer.
       ``(B) Aquaculture.--In the case of aquaculture, the term 
     `farm' means, in relation to an eligible producer on a farm, 
     all fish being produced in all counties that are intended to 
     be harvested for sale by the eligible producer.
       ``(C) Honey.--In the case of honey, the term `farm' means, 
     in relation to an eligible producer on a farm, all bees and 
     beehives in all counties that are intended to be harvested 
     for a honey crop by the eligible producer.
       ``(6) Farm-raised fish.--The term `farm-raised fish' means 
     any aquatic species (including any species of finfish, 
     mollusk, crustacean, or other aquatic invertebrate, 
     amphibian, reptile, or aquatic plant) that is propagated and 
     reared in a controlled or semicontrolled environment.
       ``(7) Insurable commodity.--The term `insurable commodity' 
     means an agricultural commodity (excluding livestock) for 
     which the producer on a farm is eligible to obtain a policy 
     or plan of insurance under the Federal Crop Insurance Act (7 
     U.S.C. 1501 et seq.).
       ``(8) Livestock.--The term `livestock' includes--
       ``(A) cattle (including dairy cattle);
       ``(B) bison;
       ``(C) poultry;
       ``(D) sheep;
       ``(E) swine;
       ``(F) horses; and
       ``(G) other livestock, as determined by the Secretary.
       ``(9) Moving 5-year olympic average county yield.--The term 
     `moving 5-year Olympic average county yield' means the 
     weighted average yield obtained from the 5 most recent years 
     of yield data provided by the National Agriculture Statistics 
     Service obtained from data after dropping the highest and the 
     lowest yields.
       ``(10) Noninsurable commodity.--The term `noninsurable 
     commodity' means a crop for which the eligible producers on a 
     farm are eligible to obtain assistance under the noninsured 
     crop assistance program.
       ``(11) Noninsured crop assistance program.--The term 
     `noninsured crop assistance program' means the program 
     carried out under section 196 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333).
       ``(12) Qualifying natural disaster declaration.--The term 
     `qualifying natural disaster declaration' means a natural 
     disaster declared by the Secretary for production losses 
     under section 321(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1961(a)).
       ``(13) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(14) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia;
       ``(C) the Commonwealth of Puerto Rico; and
       ``(D) any other territory or possession of the United 
     States.
       ``(15) Trust fund.--The term `Trust Fund' means the 
     Agriculture Disaster Relief Trust Fund established under 
     section 902.
       ``(16) United states.--The term `United States' when used 
     in a geographical sense, means all of the States.
       ``(b) Supplemental Revenue Assistance Payments.--
       ``(1) In general.--The Secretary shall use such sums as are 
     necessary from the Trust Fund to make crop disaster 
     assistance payments to eligible producers on farms in 
     disaster counties that have incurred crop production losses 
     or crop quality losses, or both, during the crop year.
       ``(2) Amount.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall provide crop disaster assistance payments 
     under this section to an eligible producer on a farm in an 
     amount equal to 52 percent of the difference between--
       ``(i) the disaster assistance program guarantee, as 
     described in paragraph (3); and
       ``(ii) the total farm revenue for a farm, as described in 
     paragraph (4).
       ``(B) Limitation.--The disaster assistance program 
     guarantee for a crop used to calculate the payments for a 
     farm under subparagraph (A)(i) may not be greater than 90 
     percent of the sum of the expected revenue, as described in 
     paragraph (5) for each of the crops on a farm, as determined 
     by the Secretary.
       ``(3) Supplemental revenue assistance program guarantee.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the supplemental assistance program guarantee 
     shall be the sum obtained by adding--
       ``(i) for each insurable commodity on the farm, the product 
     obtained by multiplying--

       ``(I) the greatest of--

       ``(aa) the actual production history yield;
       ``(bb) 90 percent of the moving 5-year Olympic average 
     county yield; and
       ``(cc) the counter-cyclical program payment yield for each 
     crop;

       ``(II) the percentage of the crop insurance yield 
     guarantee;
       ``(III) the percentage of crop insurance price elected by 
     the eligible producer;
       ``(IV) the crop insurance price; and
       ``(V) 115 percent; and

       ``(ii) for each noninsurable commodity on a farm, the 
     product obtained by multiplying--

       ``(I) the weighted noninsured crop assistance program yield 
     guarantee;
       ``(II) except as provided in subparagraph (B), 100 percent 
     of the noninsured crop assistance program established price; 
     and
       ``(III) 115 percent.

       ``(B) Supplemental buy-up noninsured assistance program.--
     Beginning on the date that the Secretary makes available 
     supplemental buy-up coverage under the noninsured assistance 
     program in accordance with subsection (h), the percentage 
     described in subclause (II) of subparagraph (A)(ii) shall be 
     equal to the percentage of the noninsured assistance program 
     price guarantee elected by the producer.
       ``(C) Adjustment insurance guarantee.--Notwithstanding 
     subparagraph (A), in the case of an insurable commodity for 
     which a plan of insurance provides for an adjustment in the 
     guarantee, such as in the case of prevented planting, the 
     adjusted insurance guarantee shall be the basis for 
     determining the disaster assistance program guarantee for the 
     insurable commodity.
       ``(D) Adjusted assistance level.--Notwithstanding 
     subparagraph (A), in the case of a noninsurable commodity for 
     which the noninsured crop assistance program provides for an 
     adjustment in the level of assistance, such as in the case of 
     prevented harvesting, the adjusted assistance level shall be 
     the basis for determining the disaster assistance program 
     guarantee for the noninsurable commodity.
       ``(E) Equitable treatment for non-yield based policies.--
     The Secretary shall establish equitable treatment for non-
     yield based policies and plans of insurance, such as the

[[Page 29358]]

     Adjusted Gross Revenue Lite insurance program.
       ``(F) Public managed land.--Notwithstanding subparagraph 
     (A), if rangeland is managed by a Federal agency and the 
     carrying capacity of the managed rangeland is reduced as a 
     result of a disaster in the preceding year that was the basis 
     for a qualifying natural disaster declaration--
       ``(i) the calculation for the supplemental assistance 
     program guarantee determined under subparagraph (A) as the 
     guarantee applies to the managed rangeland shall be not less 
     than 75 percent of the guarantee for the preceding year; and
       ``(ii) the requirement for a designation by the Secretary 
     for the current year is waived.
       ``(4) Farm revenue.--
       ``(A) In general.--For purposes of this subsection, the 
     total farm revenue for a farm, shall equal the sum obtained 
     by adding--
       ``(i) the estimated actual value for grazing and for each 
     crop produced on a farm by using the product obtained by 
     multiplying--

       ``(I) the actual crop acreage grazed or harvested by an 
     eligible producer on a farm;
       ``(II) the estimated actual yield of the grazing land or 
     crop production; and
       ``(III) subject to subparagraphs (B) and (C), the average 
     market price received or value of the production during the 
     first 5 months of the marketing year for the county in which 
     the farm or portion of a farm is located;

       ``(ii) 20 percent of amount of any direct payments made to 
     the producer under section 1103 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7913) or of any fixed 
     direct payments made at the election of the producer in lieu 
     of that section or a subsequent section;
       ``(iii) the amount of payments for prevented planting on a 
     farm;
       ``(iv) the amount of crop insurance indemnities received by 
     an eligible producer on a farm for each crop on a farm, 
     including indemnities for grazing losses;
       ``(v) the amount of payments an eligible producer on a farm 
     received under the noninsured crop assistance program for 
     each crop on a farm, including grazing losses; and
       ``(vi) the value of any other natural disaster assistance 
     payments provided by the Federal Government to an eligible 
     producer on a farm for each crop on a farm for the same loss 
     for which the eligible producer is seeking assistance.
       ``(B) Adjustment.--The Secretary shall adjust the average 
     market price received by the eligible producer on a farm--
       ``(i) to reflect the average quality discounts applied to 
     the local or regional market price of a crop, hay, or forage 
     due to a reduction in the intrinsic characteristics of the 
     production resulting from adverse weather, as determined 
     annually by the State office of the Farm Service Agency; and
       ``(ii) to account for a crop the value of which is reduced 
     due to excess moisture resulting from a disaster-related 
     condition.
       ``(C) Maximum amount for certain crops.--With respect to a 
     crop for which an eligible producer on a farm receives 
     assistance under the noninsured crop assistance program, the 
     average market price received or value of the production 
     during the first 5 months of the marketing year for the 
     county in which the farm or portion of a farm is located 
     shall be an amount not more than 100 percent of the price of 
     the crop established under the noninsured crop assistance 
     program.
       ``(5) Expected revenue.--The expected revenue for each crop 
     on a farm shall equal the sum obtained by adding--
       ``(A) the expected value of grazing;
       ``(B) the product obtained by multiplying--
       ``(i) the greatest of--

       ``(I) the actual production history yield of the eligible 
     producer on a farm;
       ``(II) the moving 5-year Olympic average county yield; and
       ``(III) the counter-cyclical program payment yield;

       ``(ii) the acreage planted or intended to be planted for 
     each crop; and
       ``(iii) 100 percent of the insurance price guarantee; and
       ``(C) the product obtained by multiplying--
       ``(i) 100 percent of the noninsured crop assistance program 
     yield; and
       ``(ii) 100 percent of the noninsured crop assistance 
     program price for each of the crops on a farm.
       ``(c) Livestock Indemnity Payments.--
       ``(1) In general.--The Secretary shall use such sums as are 
     necessary from the Trust Fund to make livestock indemnity 
     payments to eligible producers on farms that have incurred 
     livestock death losses in excess of the normal mortality due 
     to adverse weather, as determined by the Secretary, during 
     the calendar year, including losses due to hurricanes, 
     floods, blizzards, disease, wildfires, extreme heat, and 
     extreme cold.
       ``(2) Payment rates.--Indemnity payments to an eligible 
     producer on a farm under paragraph (1) shall be made at a 
     rate of 75 percent of the market value of the applicable 
     livestock on the day before the date of death of the 
     livestock, as determined by the Secretary.
       ``(d) Emergency Assistance for Livestock, Honey Bees, and 
     Farm-Raised Fish.--
       ``(1) In general.--The Secretary shall use up to 
     $35,000,000 per year from the Trust Fund to provide emergency 
     relief to eligible producers of livestock, honey bees, and 
     farm-raised fish to aid in the reduction of losses due to 
     adverse weather or other environmental conditions, such as 
     blizzards and wildfires, as determined by the Secretary, that 
     are not covered under the authority of the Secretary to make 
     qualifying natural disaster declarations.
       ``(2) Use of funds.--Funds made available under this 
     subsection shall be used to reduce losses caused by feed or 
     water shortages, disease, or other factors as determined by 
     the Secretary.
       ``(3) Availability of funds.--Any funds made available 
     under this subsection and not used in a crop year shall 
     remain available until expended.
       ``(e) Tree Assistance Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible orchardist.--The term `eligible orchardist' 
     means a person that--
       ``(i) produces annual crops from trees for commercial 
     purposes; or
       ``(ii) produces nursery, ornamental, fruit, nut, or 
     Christmas trees for commercial sale.
       ``(B) Natural disaster.--The term `natural disaster' means 
     plant disease, insect infestation, drought, fire, freeze, 
     flood, earthquake, lightning, or other occurrence, as 
     determined by the Secretary.
       ``(C) Tree.--The term `tree' includes a tree, bush, and 
     vine.
       ``(2) Eligibility.--
       ``(A) Loss.--Subject to subparagraph (B), the Secretary 
     shall provide assistance under paragraph (3) to eligible 
     orchardists that planted trees for commercial purposes but 
     lost the trees as a result of a natural disaster, as 
     determined by the Secretary.
       ``(B) Limitation.--An eligible orchardist shall qualify for 
     assistance under subparagraph (A) only if the tree mortality 
     of the eligible orchardist, as a result of damaging weather 
     or related condition, exceeds 15 percent (adjusted for normal 
     mortality).
       ``(3) Assistance.--The assistance provided by the Secretary 
     to eligible orchardists for losses described in paragraph (2) 
     shall consist of--
       ``(A)(i) reimbursement of 75 percent of the cost of 
     replanting trees lost due to a natural disaster, as 
     determined by the Secretary, in excess of 15 percent 
     mortality (adjusted for normal mortality); or
       ``(ii) at the option of the Secretary, sufficient seedlings 
     to reestablish a stand; and
       ``(B) reimbursement of 50 percent of the cost of pruning, 
     removal, and other costs incurred by an eligible orchardist 
     to salvage existing trees or, in the case of tree mortality, 
     to prepare the land to replant trees as a result of damage or 
     tree mortality due to a natural disaster, as determined by 
     the Secretary, in excess of 15 percent damage or mortality 
     (adjusted for normal tree damage and mortality).
       ``(f) Plant Pest and Disease Management and Disaster 
     Prevention.--
       ``(1) Definitions.--In this subsection:
       ``(A) Early plant pest detection and surveillance.--The 
     term `early plant pest detection and surveillance' means the 
     full range of activities undertaken to find newly introduced 
     plant pests, whether the plant pests are new to the United 
     States or new to certain areas of the United States, before--
       ``(i) the plant pests become established; or
       ``(ii) the plant pest infestations become too large and 
     costly to eradicate or control.
       ``(B) Plant pest.--The term `plant pest' has the meaning 
     given such term in section 403 of the Plant Protection Act (7 
     U.S.C. 7702).
       ``(C) Specialty crop.--The term `specialty crop' has the 
     meaning given the term in section 3 of the Specialty Crops 
     Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 
     108-465).
       ``(D) State department of agriculture.--The term `State 
     department of agriculture' means an agency of a State that 
     has a legal responsibility to perform early plant pest 
     detection and surveillance activities.
       ``(2) Early plant pest detection and surveillance 
     improvement program.--
       ``(A) Cooperative agreements.--The Secretary shall enter 
     into a cooperative agreement with each State department of 
     agriculture that agrees to conduct early plant pest detection 
     and surveillance activities.
       ``(B) Consultation.--In carrying out this paragraph, the 
     Secretary shall consult with--
       ``(i) the National Plant Board;
       ``(ii) the National Association of State Departments of 
     Agriculture; and
       ``(iii) stakeholders.
       ``(C) Funds under agreements.--Each State department of 
     agriculture with which the Secretary enters into a 
     cooperative agreement under this paragraph shall receive 
     funding for each of fiscal years 2008 through 2012 in an 
     amount to be determined by the Secretary.
       ``(D) Use of funds.--
       ``(i) Plant pest detection and surveillance activities.--A 
     State department of agriculture that receives funds under 
     this paragraph shall use the funds to carry out early plant 
     pest detection and surveillance activities to prevent the 
     introduction of a plant pest or facilitate the eradication of 
     a plant pest, pursuant to a cooperative agreement.
       ``(ii) Subagreements.--Nothing in this paragraph prevents a 
     State department of

[[Page 29359]]

     agriculture from using funds received under subparagraph (C) 
     to enter into subagreements with political subdivisions of 
     the State that have legal responsibilities relating to 
     agricultural plant pest and disease surveillance.
       ``(iii) Non-federal share.--The non-Federal share of the 
     cost of carrying out a cooperative agreement under this 
     section may be provided in-kind, including through provision 
     of such indirect costs of the cooperative agreement as the 
     Secretary considers to be appropriate.
       ``(E) Special funding considerations.--The Secretary shall 
     provide funds to a State department of agriculture if the 
     Secretary determines that--
       ``(i) the State department of agriculture is in a State 
     that has a high risk of being affected by 1 or more plant 
     pests; and
       ``(ii) the early plant pest detection and surveillance 
     activities supported with the funds will likely--

       ``(I) prevent the introduction and establishment of plant 
     pests; and
       ``(II) provide a comprehensive approach to compliment 
     Federal detection efforts.

       ``(F) Reporting requirement.--Not later than 180 days after 
     the date of completion of an early plant pest detection and 
     surveillance activity conducted by a State department of 
     agriculture using funds provided under this subsection, the 
     State department of agriculture shall submit to the Secretary 
     a report that describes the purposes and results of the 
     activities.
       ``(3) Threat identification and mitigation program.--
       ``(A) Establishment.--The Secretary, acting through the 
     Administrator of the Animal and Plant Health Inspection 
     Service (referred to in this section as the `Secretary'), 
     shall establish a threat identification and mitigation 
     program to determine and prioritize foreign threats to the 
     domestic production of crops.
       ``(B) Requirements.--In conducting the program established 
     under subparagraph (A), the Secretary shall--
       ``(i) consult with the Director of the Center for Plant 
     Health Science and Technology;
       ``(ii) conduct, in partnership with States, early plant 
     pest detection and surveillance activities;
       ``(iii) develop risk assessments of the potential threat to 
     the agricultural industry of the United States from foreign 
     sources;
       ``(iv) collaborate with the National Plant Board on the 
     matters described in subparagraph (C);
       ``(v) implement action plans developed under subparagraph 
     (C)(ii)(I) immediately after development of the action 
     plans--

       ``(I) to test the effectiveness of the action plans; and
       ``(II) to assist in preventing the introduction and 
     widespread dissemination of new foreign and domestic plant 
     pest and disease threats in the United States; and

       ``(vi) as appropriate, consult with, and use the expertise 
     of, the Administrator of the Agricultural Research Service in 
     the development of plant pest and disease detection, control, 
     and eradication strategies.
       ``(C) Matters described.--The matters described in this 
     subparagraph are--
       ``(i) the prioritization of foreign threats to the 
     agricultural industry; and
       ``(ii) the development, in consultation with State 
     departments of agriculture and other State or regional 
     resource partnerships, of--

       ``(I) action plans that effectively address the foreign 
     threats, including pathway analysis, offshore mitigation 
     measures, and comprehensive exclusion measures at ports of 
     entry and other key distribution centers; and
       ``(II) strategies to employ if a foreign plant pest or 
     disease is introduced;

       ``(D) Reports.--Not later than 1 year after the date of 
     enactment of this paragraph, and annually thereafter, the 
     Secretary shall update and submit to Congress the priority 
     list and action plans described in subparagraph (C), 
     including an accounting of funds expended on the action 
     plans.
       ``(4) Specialty crop certification and risk management 
     systems.--The Secretary shall provide funds and technical 
     assistance to specialty crop growers, organizations 
     representing specialty crop growers, and State and local 
     agencies working with specialty crop growers and 
     organizations for the development and implementation of--
       ``(A) audit-based certification systems, such as best 
     management practices--
       ``(i) to address plant pests; and
       ``(ii) to mitigate the risk of plant pests in the movement 
     of plants and plant products; and
       ``(B) nursery plant pest risk management systems, in 
     collaboration with the nursery industry, research 
     institutions, and other appropriate entities--
       ``(i) to enable growers to identify and prioritize nursery 
     plant pests and diseases of regulatory significance;
       ``(ii) to prevent the introduction, establishment, and 
     spread of those plant pests and diseases; and
       ``(iii) to reduce the risk of, mitigate, and eradicate 
     those plant pests and diseases.
       ``(5) Funding.--The Secretary shall use from the Trust Fund 
     to carry out this subsection--
       ``(A) $10,000,000 for fiscal year 2008;
       ``(B) $25,000,000 for fiscal year 2009;
       ``(C) $40,000,000 for fiscal year 2010;
       ``(D) $50,000,000 for fiscal year 2011; and
       ``(E) $64,000,000 for fiscal year 2012.
       ``(g) Risk Management Purchase Requirement.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the eligible producers on a farm shall not be 
     eligible for assistance under this section with respect to 
     losses to an insurable commodity or noninsurable commodity if 
     the eligible producers on the farm--
       ``(A) in the case of an insurable commodity, did not obtain 
     a policy or plan of insurance for the insurable commodity 
     under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
     (excluding a crop insurance pilot program under that Act) for 
     the crop incurring the losses; or
       ``(B) in the case of a noninsurable commodity, did not file 
     the required paperwork, and pay the administrative fee by the 
     applicable State filing deadline, for the noninsurable 
     commodity under the noninsured crop assistance program for 
     the crop incurring the losses.
       ``(2) Minimum.--To be considered to have obtained insurance 
     under paragraph (1), an eligible producer on a farm shall 
     have obtained a policy or plan of insurance with not less 
     than 50 percent yield coverage at 55 percent of the insurable 
     price for each crop grazed, planted, or intended to be 
     planted for harvest on a whole farm.
       ``(3) Waiver.--With respect to eligible producers that are 
     limited resource, minority, or beginning farmers or ranchers, 
     as determined by the Secretary, the Secretary may--
       ``(A) waive paragraph (1); and
       ``(B) provide disaster assistance under this section at a 
     level that the Secretary determines to be equitable and 
     appropriate.
       ``(4) Equitable relief.--The Secretary may provide 
     equitable relief to eligible producers on a farm that 
     unintentionally fail to meet the requirements of paragraph 
     (1) for 1 or more crops on a farm on a case-by-case basis, as 
     determined by the Secretary.
       ``(h) Supplemental Buy-up Noninsured Assistance Program.--
       ``(1) In general.--The Secretary shall establish a program 
     under which eligible producers on a farm may purchase under 
     the noninsured crop assistance program additional yield and 
     price coverage for a crop, including a forage, hay, or honey 
     crop, of--
       ``(A) 60 or 65 percent (as elected by the producers on the 
     farm) of the yield established for the crop under the 
     program; and
       ``(B) 100 percent of the price established for the crop 
     under the program.
       ``(2) Fees.--The Secretary shall establish and collect fees 
     from eligible producers on a farm participating in the 
     program established under paragraph (1) to offset all of the 
     costs of the program, as determined by the Secretary.
       ``(i) Payment Limitations.--
       ``(1) In general.--The total amount of disaster assistance 
     that an eligible producer on a farm may receive under this 
     section may not exceed $100,000.
       ``(2) AGI limitation.--Section 1001D of the Food Security 
     Act of 1985 (7 U.S.C. 1308-3a or any successor provision) 
     shall apply with respect to assistance provided under this 
     section.
       ``(j) Period of Effectiveness.--This section shall be 
     effective only for losses that are incurred as the result of 
     a disaster, adverse weather, or other environmental condition 
     that occurs on or before September 30, 2012, as determined by 
     the Secretary.

     ``SEC. 902. AGRICULTURE DISASTER RELIEF TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `Agriculture Disaster Relief Trust Fund', consisting of such 
     amounts as may be appropriated or credited to such Trust Fund 
     as provided in this section.
       ``(b) Transfer to Trust Fund.--
       ``(1) In general.--There are appropriated to the 
     Agriculture Disaster Relief Trust Fund amounts equivalent to 
     3.34 percent of the amounts received in the general fund of 
     the Treasury of the United States during fiscal years 2008 
     through 2012 attributable to the duties collected on articles 
     entered, or withdrawn from warehouse, for consumption under 
     the Harmonized Tariff Schedule of the United States.
       ``(2) Amounts based on estimates.--The amounts appropriated 
     under this section shall be transferred at least monthly from 
     the general fund of the Treasury of the United States to the 
     Agriculture Disaster Relief Trust Fund on the basis of 
     estimates made by the Secretary of the Treasury. Proper 
     adjustments shall be made in the amounts subsequently 
     transferred to the extent prior estimates were in excess of 
     or less than the amounts required to be transferred.
       ``(c) Administration.--
       ``(1) Reports.--The Secretary of the Treasury shall be the 
     trustee of the Agriculture Disaster Relief Trust Fund and 
     shall submit an annual report to Congress each year on the 
     financial condition and the results of the operations of such 
     Trust Fund during the preceding fiscal year and on its 
     expected condition and operations during the 5 fiscal years 
     succeeding such fiscal year. Such report shall be printed as 
     a House document of the session of Congress to which the 
     report is made.

[[Page 29360]]

       ``(2) Investment.--
       ``(A) In general.--The Secretary of the Treasury shall 
     invest such portion of the Agriculture Disaster Relief Trust 
     Fund as is not in his judgment required to meet current 
     withdrawals. Such investments may be made only in interest 
     bearing obligations of the United States. For such purpose, 
     such obligations may be acquired--
       ``(i) on original issue at the issue price, or
       ``(ii) by purchase of outstanding obligations at the market 
     price.
       ``(B) Sale of obligations.--Any obligation acquired by the 
     Agriculture Disaster Relief Trust Fund may be sold by the 
     Secretary of the Treasury at the market price.
       ``(C) Interest on certain proceeds.--The interest on, and 
     the proceeds from the sale or redemption of, any obligations 
     held in the Agriculture Disaster Relief Trust Fund shall be 
     credited to and form a part of such Trust Fund.
       ``(d) Expenditures From Trust Fund.--Amounts in the 
     Agriculture Disaster Relief Trust Fund shall be available for 
     the purposes of making expenditures to meet those obligations 
     of the United States incurred under section 901.
       ``(e) Authority to Borrow.--
       ``(1) In general.--There are authorized to be appropriated, 
     and are appropriated, to the Agriculture Disaster Relief 
     Trust Fund, as repayable advances, such sums as may be 
     necessary to carry out the purposes of such Trust Fund.
       ``(2) Repayment of advances.--
       ``(A) In general.--Advances made to the Agriculture 
     Disaster Relief Trust Fund shall be repaid, and interest on 
     such advances shall be paid, to the general fund of the 
     Treasury when the Secretary determines that moneys are 
     available for such purposes in such Trust Fund.
       ``(B) Rate of interest.--Interest on advances made pursuant 
     to this subsection shall be--
       ``(i) at a rate determined by the Secretary of the Treasury 
     (as of the close of the calendar month preceding the month in 
     which the advance is made) to be equal to the current average 
     market yield on outstanding marketable obligations of the 
     United States with remaining periods to maturity comparable 
     to the anticipated period during which the advance will be 
     outstanding, and
       ``(ii) compounded annually.''.
       (b) Technical Provisions Relating to the Plant Protection 
     Act.--
       (1) Section 442(c) of the Plant Protection Act (7 U.S.C. 
     7772(c)) is amended by striking ``of longer than 60 days''.
       (2) Congress disapproves the rule submitted by the 
     Secretary of Agriculture relating to cost-sharing for animal 
     and plant health emergency programs (68 Fed. Reg. 40541 
     (2003)), and such rule shall have no force or effect.

                  Subtitle B--Conservation Provisions

            PART I--LAND AND SPECIES PRESERVATION PROVISIONS

     SEC. 12201. CONSERVATION RESERVE TAX CREDIT.

       (a) Allowance of Credit.--
       (1) In general.--Subpart B of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 30D. CONSERVATION RESERVE CREDIT.

       ``(a) In General.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the rental value of any land enrolled in 
     the conservation reserve program.
       ``(b) Limitations.--
       ``(1) Limitation based on amount of tax.--The credit 
     allowed under this section for any taxable year shall not 
     exceed the excess of--
       ``(A) the regular tax liability for the taxable year 
     reduced by the sum of the credits allowable under subpart A 
     and sections 27, 30, 30B, and 30C, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(2) Limitation based on allocated portion of national 
     limitation.--The credit allowed under subsection (a) for any 
     taxpayer for any taxable year shall not exceed the excess 
     of--
       ``(A) the amount of the national credit limitation 
     allocated to such taxpayer under subsection (c) for the 
     fiscal year in which such taxable year ends and all prior 
     fiscal years, over
       ``(B) the credit allowed under subsection (a) for all prior 
     taxable years.
       ``(c) Conservation Reserve Credit Limitation.--
       ``(1) In general.--There is a conservation reserve credit 
     limitation for each fiscal year of the United States. Such 
     limitation is--
       ``(A) $750,000,000 for each of fiscal years 2009 through 
     2012, and
       ``(B) zero thereafter.
       ``(2) Allocation.--
       ``(A) In general.--The Secretary, in consultation with the 
     Secretary of Agriculture, shall allocate the conservation 
     reserve credit limitation to taxpayers--
       ``(i) who are owners or operators of land enrolled in the 
     conservation reserve program, and
       ``(ii) who have made an election under section 1234(c)(6) 
     of the Food Security Act of 1985 to receive an allocation 
     under this paragraph in lieu of a rental payment for such 
     year under 1233(2) of such Act.
       ``(B) Allocation limitation.--The Secretary may not 
     allocate more than $50,000 to any 1 taxpayer for any fiscal 
     year.
       ``(3) Carryforward of limitation.--
       ``(A) In general.--If for any fiscal year the limitation 
     under paragraph (1) (after the application of this paragraph) 
     exceeds the amount allocated to all eligible taxpayers for 
     such fiscal year, the limitation amount for the following 
     fiscal year shall be increased by the amount of such excess.
       ``(B) Special rule for 2012.--Notwithstanding subparagraph 
     (A), no amount of the conservation reserve credit limitation 
     may be carried to any fiscal year following fiscal year 2012.
       ``(d) Carryforward.--If the amount of the credit allowable 
     under subsection (a) for any taxpayer for any taxable year 
     (determined without regard to subsection (b)(1)) exceeds the 
     limitation under subsection (b)(1), such excess may be 
     carried forward to the succeeding taxable year and added to 
     the credit allowable under subsection (a) for such succeeding 
     taxable year.
       ``(e) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Conservation reserve program.--For purposes of this 
     subsection, the term `conservation reserve program' means the 
     conservation reserve program established under subchapter B 
     of chapter 1 of subtitle D of title XII of the Food Security 
     Act of 1985.
       ``(2) Denial of double benefit.--No deduction or other 
     credit shall be allowed under this chapter for any amount 
     with respect to which a credit is allowed under subsection 
     (a).
       ``(3) Recapture of allocation.--If a taxpayer terminates a 
     contract under the conservation reserve program before the 
     end of the fiscal year with respect to which an allocation 
     under subsection (c)(2) is made, the Secretary shall 
     recapture the amount of the credit allowed under this section 
     which bears the same ratio to the amount so allocated as the 
     number of days in the fiscal year during which the contract 
     was not in effect bears to 365.
       ``(4) Treatment of credit under income tax and self-
     employment income tax.--For purposes of this chapter and 
     chapter 2, the amount of any credit received under this 
     section shall not be treated as income.''.
       (2) Clerical amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 30C the 
     following new item:

``Sec. 30D. Conservation reserve credit.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
       (b) Conforming Amendments to the Food Security Act of 
     1985.--
       (1) Election to receive tax credits in lieu of payments.--
     Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 
     3834(c)), as amended by this Act, is amended by adding at the 
     end the following new paragraph:
       ``(6) Election to receive tax credits in lieu of 
     payments.--
       ``(A) In general.--In lieu of an annual rental payment for 
     any year, an owner or operator with land enrolled under the 
     program established under this subchapter may elect to 
     receive for such year an allocation of tax credits under 
     section 30D(c)(2) of the Internal Revenue Code of 1986.
       ``(B) Election.--Any election under this paragraph shall be 
     made in such form and at such time as the Secretary shall 
     prescribe and shall apply to all contracts of the owner or 
     operator under this subchapter.
       ``(C) Limitation.--Any election under this paragraph shall 
     not apply with respect to payments under the emergency 
     forestry conservation reserve program under section 
     1231(k).''.
       (2) Payment limitation.--Paragraph (1) of section 1234(e) 
     of such Act (16 U.S.C. 3834(e)(1)) is amended by inserting 
     ``and allocations of tax credits under section 30D(c)(2) of 
     the Internal Revenue Code of 1986'' after ``in-kind 
     commodities''.

     SEC. 12202. EXCLUSION OF CONSERVATION RESERVE PROGRAM 
                   PAYMENTS FROM SECA TAX FOR CERTAIN INDIVIDUALS.

       (a) Internal Revenue Code.--Section 1402(a)(1) (defining 
     net earnings from self-employment) is amended by inserting 
     ``, and including payments under section 1233(2) of the Food 
     Security Act of 1985 (16 U.S.C. 3833(2)) to individuals 
     receiving benefits under section 202 or 223 of the Social 
     Security Act'' after ``crop shares''.
       (b) Social Security Act.--Section 211(a)(1) of the Social 
     Security Act is amended by inserting ``, and including 
     payments under section 1233(2) of the Food Security Act of 
     1985 (16 U.S.C. 3833(2)) to individuals receiving benefits 
     under section 202 or 223'' after ``crop shares''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to payments made after December 31, 2007.

     SEC. 12203. PERMANENT EXTENSION OF SPECIAL RULE ENCOURAGING 
                   CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY FOR 
                   CONSERVATION PURPOSES.

       (a) In General.--
       (1) Individuals.--Subparagraph (E) of section 170(b)(1) 
     (relating to contributions of qualified conservation 
     contributions) is amended by striking clause (vi).

[[Page 29361]]

       (2) Corporations.--Subparagraph (B) of section 170(b)(2) 
     (relating to qualified conservation contributions by certain 
     corporate farmers and ranchers) is amended by striking clause 
     (iii).
       (b) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2007.

     SEC. 12204. TAX CREDIT FOR RECOVERY AND RESTORATION OF 
                   ENDANGERED SPECIES.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1, as amended by this Act, is amended by adding at 
     the end the following new section:

     ``SEC. 30E. ENDANGERED SPECIES RECOVERY AND RESTORATION 
                   CREDIT.

       ``(a) In General.--In the case of an eligible taxpayer, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to the sum 
     of--
       ``(1) the habitat protection easement credit, plus
       ``(2) the habitat restoration credit.
       ``(b) Limitation.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxpayer for any taxable year shall not exceed the 
     endangered species recovery credit limitation allocated to 
     the eligible taxpayer under subsection (f) for the calendar 
     year in which the taxpayer's taxable year ends.
       ``(2) Carryforwards.--
       ``(A) In general.--If the amount of the credit allowable 
     under subsection (a) for any taxpayer for any taxable year 
     (determined without regard to paragraph (1)) exceeds the 
     endangered species recovery credit limitation allocated under 
     subsection (f) to such taxpayer for the calendar year in 
     which the taxpayer's taxable year ends, such excess may be 
     carried forward to the next taxable year for which an 
     allocation is made to such taxpayer under subsection (f). Any 
     amount carried to another taxable year under this 
     subparagraph shall be treated as added to the credit 
     allowable under subsection (a)(1) or (a)(2), whichever is 
     appropriate, for such taxable year.
       ``(B) Carryforward of allocation amount.--If the amount of 
     the endangered species recovery credit limitation allocated 
     to a taxpayer for any calendar year under subsection (f) 
     exceeds the amount of the credit allowed to the taxpayer 
     under subsection (a) for the taxable year ending in such 
     calendar year, such excess may be carried forward to the next 
     taxable year of the taxpayer. Any amount carried to another 
     taxable year under this subparagraph shall be treated as 
     allocated to the taxpayer for use in such taxable year under 
     subsection (f).
       ``(c) Eligible Taxpayer; Qualified Agreements.--For 
     purposes of this section--
       ``(1) In general.--The term `eligible taxpayer' means--
       ``(A) a taxpayer who--
       ``(i) owns real property which contains the habitat of a 
     qualified species, and
       ``(ii) enters into a qualified perpetual habitat protection 
     agreement, a qualified 30-year habitat protection agreement, 
     or a qualified habitat protection agreement with respect to 
     such real property, and
       ``(B) any other taxpayer who--
       ``(i) is a party to a qualified perpetual habitat 
     protection agreement, a qualified 30-year habitat protection 
     agreement, or a qualified habitat protection agreement, and
       ``(ii) as part of any such agreement, agrees to assume 
     responsibility for costs paid or incurred as a result of 
     implementing such agreement.
       ``(2) Qualified perpetual habitat protection agreement.--
     The term `qualified perpetual habitat protection agreement' 
     means an agreement--
       ``(A) under which a taxpayer described in paragraph (1)(A) 
     grants to the appropriate Secretary, the Secretary of 
     Agriculture, the Secretary of Defense, or a State an easement 
     in perpetuity for the protection of the habitat of a 
     qualified species, and
       ``(B) which meets the requirements of paragraph (5).
       ``(3) Qualified 30-year habitat protection agreement.--The 
     term `qualified 30-year habitat protection agreement' means 
     an agreement not described in paragraph (2)--
       ``(A) under which a taxpayer described in paragraph (1)(A) 
     grants to the appropriate Secretary, the Secretary of 
     Agriculture, the Secretary of Defense, or a State an easement 
     for a period of 30 years or greater for the protection of the 
     habitat of a qualified species, and
       ``(B) which meets the requirements of paragraph (5).
       ``(4) Qualified habitat protection agreement.--The term 
     `qualified habitat protection agreement' means an agreement--
       ``(A) under which a taxpayer described in paragraph (1)(A) 
     enters into an agreement not described in paragraph (2) or 
     (3) with the appropriate Secretary, the Secretary of 
     Agriculture, the Secretary of Defense, or a State to protect 
     the habitat of a qualified species for a specified period of 
     time, and
       ``(B) which meets the requirements of paragraph (5).
       ``(5) Requirements.--An agreement meets the requirements of 
     this paragraph if the agreement--
       ``(A) is consistent with any recovery plan which is 
     applicable and which has been approved for a qualified 
     species under section 4 of the Endangered Species Act of 
     1973,
       ``(B) includes a habitat management plan agreed to by the 
     appropriate Secretary and the eligible taxpayer, and
       ``(C) requires that technical assistance with respect to 
     the duties under the habitat management plan be provided to 
     the taxpayer by the appropriate Secretary or an entity 
     approved by the appropriate Secretary.
       ``(d) Habitat Protection Easement Credit.--
       ``(1) In general.--For purposes of subsection (a)(1), the 
     habitat protection easement credit for any taxable year is an 
     amount equal to--
       ``(A) in the case of a taxpayer described in subsection 
     (c)(1)(A) who has entered into a qualified perpetual habitat 
     protection agreement during such taxable year, 100 percent of 
     the excess (if any) of--
       ``(i) the fair market value of the real property with 
     respect to which the qualified perpetual habitat protection 
     agreement is made, determined on the day before such 
     agreement is entered into, over
       ``(ii) the fair market value of such property, determined 
     on the day after such agreement is entered into,
       ``(B) in the case of a taxpayer described in subsection 
     (c)(1)(A) who has entered into a qualified 30-year habitat 
     protection agreement during such taxable year, 75 percent of 
     such excess, and
       ``(C) in the case of any other taxpayer, zero.
       ``(2) Reduction for amount received for easement.--The 
     amount determined under paragraph (1) shall be reduced by any 
     amount received by the taxpayer in connection with the 
     easement.
       ``(3) Limitation based on amount of tax.--The credit 
     allowed under subsection (a)(1) for any taxable year shall 
     not exceed the sum of--
       ``(A) the taxpayer's regular tax liability for the taxable 
     year reduced by the sum of the credits allowable under 
     subpart A and sections 27, 30, 30B, 30C, and 30D, and
       ``(B) the tax imposed by section 55(a) for the taxable 
     year.
       ``(4) Carryforward of unused credit.--If the credit 
     allowable under subsection (a)(1) for any taxable year 
     exceeds the limitation imposed by paragraph (3) for such 
     taxable year, such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a)(1) for such succeeding taxable year.
       ``(5) Qualified appraisals required.--No amount shall be 
     taken into account under this subsection unless the eligible 
     taxpayer includes with the taxpayer's return for the taxable 
     year a qualified appraisal (within the meaning of section 
     170(f)(11)(E)) of the real property.
       ``(e) Habitat Restoration Credit.--
       ``(1) In general.--For purposes of subsection (a)(2), the 
     habitat restoration credit for any taxable year shall be an 
     amount equal to--
       ``(A) in the case of a qualified perpetual habitat 
     protection agreement, 100 percent of the costs paid or 
     incurred by an eligible taxpayer during such taxable year 
     pursuant to the habitat management plan under such agreement,
       ``(B) in the case of a qualified 30-year habitat protection 
     agreement, 75 percent of the costs paid or incurred by an 
     eligible taxpayer during such taxable year pursuant to the 
     habitat management plan under such agreement, and
       ``(C) in the case of a qualified habitat protection 
     agreement, 50 percent of the costs paid or incurred by an 
     eligible taxpayer during such taxable year pursuant to the 
     habitat management plan under such agreement.
       ``(2) Limitation based on amount of tax.--The credit 
     allowed under subsection (a)(2) for any taxable year shall 
     not exceed the excess (if any) of--
       ``(A) the regular tax liability for the taxable year 
     reduced by the sum of the credits allowable under subpart A, 
     sections 27, 30, 30B, 30C, 30D, and subsection (a)(1), over
       ``(B) the tentative minimum tax for the taxable year.
       ``(3) Carryforward of unused credit.--If the credit 
     allowable under subsection (a)(2) for any taxable year 
     exceeds the limitation imposed by paragraph (2) for such 
     taxable year, such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a)(2) for such succeeding taxable year.
       ``(4) Special rules.--
       ``(A) Certain costs not included.--No amount shall be taken 
     into account with respect to any cost which is paid or 
     incurred by a taxpayer to comply with any requirement of a 
     Federal, State, or local government (other than costs 
     required under an agreement described in subsection (c)).
       ``(B) Subsidized financing.--For purposes of paragraph (1), 
     the amount of costs paid or incurred by an eligible taxpayer 
     pursuant to any habitat management plan described in 
     subsection (c)(5)(B) shall be reduced by the amount of any 
     financing provided under any Federal or State program a 
     principal purpose of which is to subsidize financing for the 
     conservation of the habitat of a qualified species.
       ``(f) Endangered Species Recovery Credit Limitation.--

[[Page 29362]]

       ``(1) In general.--There is an endangered species recovery 
     credit limitation for each calendar year. Such limitation is 
     --
       ``(A) for 2008, 2009, 2010, 2011, and 2012--
       ``(i) with respect to allocations described in paragraph 
     (2)(A)--

       ``(I) $5,000,000 with respect to qualified perpetual 
     habitat protection agreements,
       ``(II) $2,000,000 with respect to qualified 30-year habitat 
     protection agreements, and
       ``(III) $1,000,000 with respect to qualified habitat 
     protection agreements, and

       ``(ii) with respect to allocations described in paragraph 
     (2)(B)--

       ``(I) $290,000,000 with respect to qualified perpetual 
     habitat protection agreements,
       ``(II) $55,000,000 with respect to qualified 30-year 
     habitat protection agreements, and
       ``(III) $35,000,000 with respect to qualified habitat 
     protection agreements, and

       ``(B) except as provided in paragraph (3), zero thereafter.
       ``(2) Allocation of limitation.--
       ``(A) Allocations in coordination with the secretary of 
     agriculture.--The limitations described in paragraph 
     (1)(A)(i) shall be allocated to eligible taxpayers by the 
     Secretary in consultation with the Secretary of Agriculture.
       ``(B) Other allocations.--
       ``(i) In general.--The limitations described in paragraph 
     (1)(A)(ii) shall be allocated to eligible taxpayers in 
     consultation with the Secretary of the Interior and the 
     Secretary of Commerce.
       ``(ii) Establishment of allocation program.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary, in consultation with the Secretary of the Interior 
     and the Secretary of Commerce, shall, by regulation, 
     establish a program to process applications from eligible 
     taxpayers and to determine how to best allocate the credit 
     limitations under clause (i) taking into account the 
     considerations described in clause (iii).
       ``(iii) Considerations.--In accepting applications to make 
     allocations to eligible taxpayers under this section, 
     priority shall be given to taxpayers with agreements--

       ``(I) relating to habitats that will significantly increase 
     the likelihood of recovering and delisting a species as an 
     endangered species or a threatened species (as defined under 
     section 2 of the Endangered Species Act of 1973),
       ``(II) that are cost-effective and maximize the benefits to 
     a qualified species per dollar expended,
       ``(III) relating to habitats of species which have a 
     federally approved recovery plan pursuant to section 4 of the 
     Endangered Species Act of 1973,
       ``(IV) relating to habitats with the potential to 
     contribute significantly to the improvement of the status of 
     a qualified species,
       ``(V) relating to habitats with the potential to contribute 
     significantly to the eradication or control of invasive 
     species that are imperiling a qualified species,
       ``(VI) with habitat management plans that will manage 
     multiple qualified species,
       ``(VII) with habitat management plans that will create 
     adjacent or proximate habitat for the recovery of a qualified 
     species,
       ``(VIII) relating to habitats for qualified species with an 
     urgent need for protection,
       ``(IX) with habitat management plans that assist in 
     preventing the listing of a species as endangered or 
     threatened under the Endangered Species Act of 1973 or a 
     similar State law,
       ``(X) with habitat management plans that may resolve 
     conflicts between the protection of qualified species and 
     otherwise lawful human activities, and
       ``(XI) with habitat management plans that may resolve 
     conflicts between the protection of a qualified species and 
     military training or other military operations.

       ``(3) Carryover of unused limitation.--If for any calendar 
     year any of the limitations under paragraph (1) (after the 
     application of this paragraph) exceeds the amount allocated 
     to eligible taxpayers for such calendar year, such limitation 
     amount for the following calendar year shall be increased by 
     the amount of such excess.
       ``(g) Other Definitions and Special Rules.--
       ``(1) Appropriate secretary.--The term `appropriate 
     Secretary' has the meaning given to the term `Secretary' 
     under section 3(15) of the Endangered Species Act of 1973.
       ``(2) Habitat management plan.--The term `habitat 
     management plan' means, with respect to any habitat, a plan 
     which--
       ``(A) identifies one or more qualified species to which the 
     plan applies,
       ``(B) is designed to--
       ``(i) restore or enhance the habitat of the qualified 
     species, or
       ``(ii) reduce threats to the qualified species through the 
     management of the habitat,
       ``(C) describes the current condition of the habitat to be 
     restored or enhanced,
       ``(D) describes the threats to the qualified species that 
     are intended to be reduced through the plan,
       ``(E) describes the management practices to be undertaken 
     by the taxpayer,
       ``(F) provides a schedule of deadlines for undertaking such 
     management practices and the expected responses of the 
     habitat and the species,
       ``(G) requires monitoring of the management practices and 
     the status of the qualified species and its habitat, and
       ``(H) describes the technical assistance to be provided to 
     the taxpayer and identifies the entity that will provide such 
     assistance.
       ``(3) Qualified species.--The term `qualified species' 
     means--
       ``(A) any species listed as an endangered species or 
     threatened species under the Endangered Species Act of 1973, 
     or
       ``(B) any species for which a finding has been made under 
     section 4(b)(3) of the Endangered Species Act of 1973 that 
     listing under such Act may be warranted.
       ``(4) Taking.--The term `taking' has the meaning given to 
     such term under the Endangered Species Act of 1973.
       ``(5) Reduction in basis.--For purposes of this subtitle--
       ``(A) Habitat protection easement credit.--The basis of any 
     property for which a credit is allowed under subsection 
     (a)(1) shall be reduced by the amount of basis which is 
     allocated, under regulations prescribed by the Secretary, to 
     the easement granted as part of a qualified perpetual habitat 
     protection agreement or a qualified 30-year habitat 
     protection agreement.
       ``(B) Habitat restoration credit.--If a credit is allowed 
     under subsection (a)(2) for any expenditure with respect to 
     any property, the increase in the basis of such property 
     which would (but for this subparagraph) result from such 
     expenditure shall be reduced by the amount of the credit so 
     allowed.
       ``(6) Denial of double benefit.--No deduction or other 
     credit shall be allowed under this chapter for any amount 
     with respect to which a credit is allowed under subsection 
     (a).
       ``(7) Certification.--No credit shall be allowed under 
     subsection (a) unless the appropriate Secretary certifies 
     that any agreement described in subsection (c) will 
     contribute to the recovery of a qualified species.
       ``(8) Request for authorization of incidental takings.--The 
     Secretary shall request the appropriate Secretary to consider 
     whether to authorize under the Endangered Species Act of 1973 
     takings by an eligible taxpayer of a qualified species to 
     which an agreement described in subsection (c) relates if the 
     takings are incidental to--
       ``(A) the restoration, enhancement, or management of the 
     habitat pursuant to the habitat management plan under the 
     agreement, or
       ``(B) the use of the property to which the agreement 
     pertains at any time after the expiration of the easement or 
     the specified period described in subsection (c)(4)(A), but 
     only if such use will leave the qualified species at least as 
     well off on the property as it was before the agreement was 
     made.
       ``(9) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit under any credit 
     allowable under subsection (a) if the Secretary determines 
     that--
       ``(A) the taxpayer has failed to carry out the duties of 
     the taxpayer under the terms of a qualified perpetual habitat 
     protection agreement, a qualified 30-year habitat protection 
     agreement, or a qualified habitat protection agreement, and
       ``(B) there are no other available means to remediate such 
     failure.''.
       (b) GAO Study.--
       (1) In general.--The Comptroller General of the United 
     States shall undertake a study on the effectiveness of the 
     credit allowed under section 30E of the Internal Revenue Code 
     of 1986 (as added by this Act).
       (2) Issues to be studied.--The study under paragraph (1) 
     shall--
       (A) evaluate--
       (i) the contributions that habitat management plans 
     established under such credit have made in restoring or 
     enhancing species habitat and reducing threats to species, 
     and
       (ii) the implementation of the credit allocation program 
     established in section 30E(f)(2) of such Code (as so added), 
     and
       (B) include recommendations for improving the effectiveness 
     of such credit.
       (3) Reports.--
       (A) Interim report.--Not later than 3 years after the date 
     of the enactment of this Act, the Comptroller General of the 
     United States shall submit to Congress an interim report on 
     the study conducted under paragraph (1).
       (B) Final report.--Not later than 5 years after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to Congress a final report on the 
     study conducted under paragraph (1).
       (c) Conforming Amendments.--
       (1) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (36), by striking the period at the end of 
     paragraph (37) and inserting ``, and'', and by inserting 
     after paragraph (37) the following new paragraph:
       ``(38) to the extent provided in section 30E(g)(5).''.
       (2) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by inserting after the item relating to section 30D the 
     following new item:

``Sec. 30E. Endangered species recovery and restoration credit.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

[[Page 29363]]



     SEC. 12205. DEDUCTION FOR ENDANGERED SPECIES RECOVERY 
                   EXPENDITURES.

       (a) Deduction for Endangered Species Recovery 
     Expenditures.--
       (1) In general.--Paragraph (1) of section 175(c) (relating 
     to definitions) is amended by inserting after the first 
     sentence the following new sentence: ``Such term shall 
     include expenditures paid or incurred for the purpose of 
     achieving site-specific management actions recommended in 
     recovery plans approved pursuant to the Endangered Species 
     Act of 1973.''.
       (2) Conforming amendments.--
       (A) Section 175 is amended by inserting ``, or for 
     endangered species recovery'' after ``prevention of erosion 
     of land used in farming'' each place it appears in 
     subsections (a) and (c).
       (B) The heading of section 175 is amended by inserting ``; 
     endangered species recovery expenditures'' before the period.
       (C) The item relating to section 175 in the table of 
     sections for part VI of subchapter B of chapter 1 is amended 
     by inserting ``; endangered species recovery expenditures'' 
     before the period.
       (b) Limitations.--Paragraph (3) of section 175(c) (relating 
     to additional limitations) is amended--
       (1) in the heading, by inserting ``or endangered species 
     recovery plan'' after ``conservation plan'', and
       (2) in subparagraph (A)(i), by inserting ``or the recovery 
     plan approved pursuant to the Endangered Species Act of 
     1973'' after ``Department of Agriculture''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures paid or incurred after the date 
     of the enactment of this Act.

     SEC. 12206. EXCLUSION FOR CERTAIN PAYMENTS AND PROGRAMS 
                   RELATING TO FISH AND WILDLIFE.

       (a) In General.--Subsection (a) of section 126 (relating to 
     certain cost-sharing payments) is amended by redesignating 
     paragraph (10) as paragraph (13) and by inserting after 
     paragraph (9) the following new paragraphs:
       ``(10) The Partners for Fish and Wildlife Program 
     authorized by the Partners for Fish and Wildlife Act.
       ``(11) The Landowner Incentive Program, the State Wildlife 
     Grants Program, and the Private Stewardship Grants Program 
     authorized by the Fish and Wildlife Act of 1956.
       ``(12) The Forest Health Protection Program and the program 
     related to integrated pest management authorized by the 
     Cooperative Forestry Assistance Act of 1978.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to payments received after the date of the 
     enactment of this Act.

     SEC. 12207. CREDIT FOR EASEMENTS GRANTED UNDER CERTAIN 
                   DEPARTMENT OF AGRICULTURE CONSERVATION 
                   PROGRAMS.

       (a) In General.--
       (1) Allowance of credit.--Subpart B of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by adding at the end the following new section:

     ``SEC. 30F. AGRICULTURE CONSERVATION EASEMENT CREDIT.

       ``(a) In General.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the sum of--
       ``(1) the wetlands reserve conservation credit, plus
       ``(2) the grassland reserve conservation credit.
       ``(b) Limitations.--
       ``(1) Limitation based on amount of tax.--The credit 
     allowed under this section for any taxable year shall not 
     exceed the excess of--
       ``(A) the regular tax liability for the taxable year 
     reduced by the sum of the credits allowable under subpart A 
     and sections 27, 30, 30B, 30C, 30D, 30E(a)(1), and 30E(a)(2), 
     over
       ``(B) the tentative minimum tax for the taxable year.
       ``(2) Limitation based on allocated portion of national 
     limitation.--The credit allowed under subsection (a) for any 
     taxpayer for any taxable year shall not exceed the excess 
     of--
       ``(A) the amount of the national credit limitation 
     allocated to such taxpayer under subsection (e) for such 
     taxable year and all prior taxable years, over
       ``(B) the credit allowed under subsection (a) for all prior 
     taxable years.
       ``(c) Wetlands Reserve Conservation Credit.--
       ``(1) In general.--For purposes of subsection (a)(1), in 
     the case of a wetlands reserve eligible taxpayer, the 
     wetlands reserve conservation credit for any taxable year is 
     an amount equal to the applicable percentage of the wetlands 
     reserve easement value.
       ``(2) Wetlands reserve eligible taxpayer.--For purposes of 
     this section, the term `wetlands reserve eligible taxpayer' 
     means any taxpayer who--
       ``(A) has granted an easement to the Secretary of 
     Agriculture under the wetlands reserve program, and
       ``(B) who has made an election under section 1237A(f)(5) of 
     the Food Security Act of 1985 to receive an allocation under 
     subsection (e)(2) in lieu of a payment under section 
     1237A(f)(1) of such Act.
       ``(3) Applicable percentage.--For purposes paragraph (1), 
     the term `applicable percentage' means the percentage equal 
     to--
       ``(A) 100 percent, minus
       ``(B) the highest percentage of tax which would apply under 
     section 1 or 11 with respect to the taxpayer if the taxable 
     income of the taxpayer were increased by an amount equal to 
     the wetlands reserve easement value.
       ``(4) Wetlands reserve easement value.--For purposes of 
     this section, the term `wetlands reserve easement value' 
     means the lesser of--
       ``(A) the product of--
       ``(i) the wetlands reserve geographic area rate for the 
     area in which the real property to which the easement 
     pertains is located, and
       ``(ii) the number of acres to which the easement applies, 
     or
       ``(B) the value of any payment to which the taxpayer would 
     be entitled with respect to such easement under section 
     1237A(f)(1) of the Food Security Act of 1985 if the taxpayer 
     had not made an election under section 1237A(f)(5) of such 
     Act.
       ``(5) Wetlands reserve geographic area rate.--For purposes 
     of paragraph (4)(A)(i), the wetlands reserve geographic area 
     rate with respect to any geographic area shall be the rate 
     per acre, determined by the Secretary in consultation with 
     the Secretary of Agriculture, appropriate for easements 
     granted under the wetlands reserve program in such area.
       ``(d) Grassland Reserve Conservation Credit.--
       ``(1) In general.--For purposes of subsection (a)(2), in 
     the case of any grassland reserve eligible taxpayer, the 
     grassland reserve conservation credit for any taxable year is 
     an amount equal to the applicable percentage of the grassland 
     reserve easement value.
       ``(2) Grassland reserve eligible taxpayer.--For purposes of 
     this section, the term `grassland reserve eligible taxpayer' 
     means any taxpayer who--
       ``(A) has granted an easement under the grassland reserve 
     program to an eligible easement holder, and
       ``(B) who has made an election under section 1238P(b)(2)(C) 
     of the Food Security Act of 1985 to receive an allocation 
     under subsection (e)(2) in lieu of a payment under section 
     1238P(b)(2)(A)(i) of such Act.
       ``(3) Applicable percentage.--For purposes paragraph (1), 
     the term `applicable percentage' means the percentage equal 
     to--
       ``(A) 100 percent, minus
       ``(B) the highest percentage of tax which would apply under 
     section 1 or 11 with respect to the taxpayer if the taxable 
     income of the taxpayer were increased by an amount equal to 
     the grassland reserve easement value.
       ``(4) Grassland reserve easement value.--For purposes of 
     this section, the term `grassland reserve easement value' 
     means--
       ``(A) in the case of a permanent conservation easement 
     (within the meaning of section 1238N(3) of the Food Security 
     Act of 1985), the lesser of--
       ``(i) the product of--

       ``(I) the grassland reserve program geographic area rate 
     for the area in which the real property to which the easement 
     pertains is located, and
       ``(II) the number of acres to which the easement applies, 
     or

       ``(ii) the value of any payment to which the taxpayer would 
     be entitled in return for such easement under section 
     1238P(b)(2)(A)(i)(I) of the Food Security Act of 1985 if the 
     taxpayer had not made an election under section 
     1238P(b)(2)(C) of such Act, and
       ``(B) in the case of a 30-year conservation easement 
     (within the meaning of section 1238O(b)(2) of such Act), the 
     lesser of--
       ``(i) 30 percent of the lesser of the amount determined 
     under clause (i) or (ii) of subparagraph (A), or
       ``(ii) the value of any payment to which the taxpayer would 
     be entitled in return for such easement under section 
     1238P(b)(1)(A)(i)(II) of such Act if the taxpayer had not 
     made an election under section 1238P(b)(2)(C) of such Act.
       ``(5) Grassland reserve geographic area rate.--For purposes 
     of paragraph (4)(A)(i)(I), the grassland reserve geographic 
     area rate with respect to any geographic area shall be the 
     rate, determined by the Secretary in consultation with the 
     Secretary of Agriculture, appropriate for easements granted 
     under the grassland reserve program in such area.
       ``(e) National Conservation Credit Limitation.--
       ``(1) In general.--The aggregate credits allowed under 
     subsection (a) for all taxpayers shall not exceed 
     $1,000,000,000.
       ``(2) Allocation.--The Secretary, in consultation with the 
     Secretary of Agriculture, shall allocate the credit 
     limitation under paragraph (1) to taxpayers who--
       ``(A) have granted an easement--
       ``(i) to the Secretary of Agriculture under the wetlands 
     reserve program, or
       ``(ii) to an eligible easement holder under the grassland 
     reserve program, and
       ``(B) make an election under such program to receive an 
     allocation under this paragraph in lieu of a payment under 
     such program.

[[Page 29364]]

       ``(3) Limitation on allocation.--No amount of the credit 
     limitation may be allocated to any taxpayer for any taxable 
     year which ends after September 30, 2012.
       ``(f) Carryforward.--If the amount of the credit allowable 
     under subsection (a) for any taxpayer for any taxable year 
     (determined without regard to subsection (b)(1)) exceeds the 
     limitation under subsection (b)(1), such excess may be 
     carried forward to the succeeding taxable year and added to 
     the credit allowable under subsection (a) for such succeeding 
     taxable year.
       ``(g) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Wetlands reserve program.--The term `wetlands reserve 
     program' means the wetlands reserve program established under 
     subchapter C of chapter 1 of subtitle D of title XII of the 
     Food Security Act of 1985.
       ``(2) Grassland reserve program.--The term `grassland 
     reserve program' means the grassland reserve program 
     established under subchapter C of chapter 2 of subtitle D of 
     title XII of the Food Security Act of 1985.
       ``(3) Eligible easement holder.--The term `eligible 
     easement holder' means the Secretary of Agriculture or a 
     State.
       ``(4) Denial of double benefit.--No deduction or other 
     credit shall be allowed under this chapter for any amount 
     with respect to which a credit is allowed under subsection 
     (a).
       ``(5) Reduction in basis.--For purposes of this subtitle, 
     the basis of any property for which a credit is allowed under 
     subsection (a) shall be reduced by the amount of basis which 
     is allocated, under regulations prescribed by the Secretary, 
     to the easement granted under the wetlands reserve program or 
     the grassland reserve program.
       ``(6) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) if the Secretary, in consultation with 
     the Secretary of Agriculture, determines that--
       ``(A) the eligible taxpayer has failed to carry out the 
     duties of the taxpayer under the terms of the easement, and
       ``(B) there are no other available means to remediate such 
     failure.''.
       (2) Conforming amendments.--
       (A) Section 1016(a), as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (37), by striking 
     the period at the end of paragraph (38) and inserting ``, 
     and'', and by inserting after paragraph (38) the following 
     new paragraph:
       ``(39) to the extent provided in section 30F(g)(5).''.
       (B) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by inserting after the item relating to section 30E the 
     following new item:

``Sec. 30F. Agriculture conservation easement credit.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to easements granted after September 30, 2007, in 
     taxable years ending after such date.
       (b) Conforming Amendments to the Food Security Act of 
     1985.--
       (1) Wetlands reserve program.--Section 1237A(f) of the Food 
     Security Act of 1985 (16 U.S.C. 3837a(f)), as amended by this 
     Act, is amended by adding at the end the following new 
     paragraph:
       ``(5) Election to receive tax credits in lieu of 
     payments.--
       ``(A) In general.--In lieu of a payment in cash under 
     paragraph (1), the landowner may elect to receive an 
     allocation of tax credits under section 30E(e)(2) of the 
     Internal Revenue Code of 1986.
       ``(B) Limitation.--No election may be made under this 
     paragraph with respect to payments to a landowner under a 
     special wetlands reserve enhancement program described in 
     subsection (h).''.
       (2) Grassland reserve program.--Section 1238P(b)(2) of the 
     Food Security Act of 1985 (16 U.S.C. 3838p(b)(2)) is amended 
     by adding at the end the following new subparagraph:
       ``(C) Election to receive tax credits in lieu of certain 
     payments.--In lieu of a payment in return for a permanent 
     conservation easement under subparagraph (A)(i)(I) or a 30-
     year conservation easement under subparagraph (A)(i)(II), the 
     landowner may elect to receive an allocation of tax credits 
     under section 30E(e)(2) of the Internal Revenue Code of 
     1986.''.

                       PART II--TIMBER PROVISIONS

     SEC. 12211. FOREST CONSERVATION BONDS.

       (a) Tax-Exempt Bond Financing.--
       (1) In general.--For purposes of the Internal Revenue Code 
     of 1986, any qualified forest conservation bond shall be 
     treated as an exempt facility bond under section 142 of such 
     Code.
       (2) Qualified forest conservation bond.--For purposes of 
     this section, the term ``qualified forest conservation bond'' 
     means any bond issued as part of an issue if--
       (A) 95 percent or more of the net proceeds (as defined in 
     section 150(a)(3) of such Code) of such issue are to be used 
     for qualified project costs, and
       (B) such bond is issued before the date which is 36 months 
     after the date of the enactment of this Act.
       (3) Limitation on aggregate amount issued.--
       (A) In general.--The maximum aggregate face amount of bonds 
     which may be issued under this subsection shall not exceed 
     $1,500,000,000 for all projects (excluding refunding bonds).
       (B) Enforcement of limitation.--An issue shall not be 
     treated as an issue described in paragraph (2) if the 
     aggregate face amount of bonds issued pursuant to such issue 
     for any qualified projects costs (when added to the aggregate 
     face amount of bonds previously so issued for such costs) 
     exceeds the amount allocated under subparagraph (C).
       (C) Initial allocation of limitation.--The limitation 
     described in subparagraph (A) shall be allocated by the 
     Secretary of the Treasury among qualified organizations as 
     follows:
       (i) 35 percent for qualified project costs with respect to 
     the cost of acquisition by any qualified organization in the 
     Pacific Northwest region.
       (ii) 30 percent for qualified project costs with respect to 
     the cost of acquisition by any qualified organization in the 
     Western region.
       (iii) 17.5 percent for qualified project costs with respect 
     to the cost of acquisition by any qualified organization in 
     the Southeast region.
       (iv) 17.5 percent for qualified project costs with respect 
     to the cost of acquisition by any qualified organization in 
     the Northeast region.
       (D) Secondary allocation procedure.--If for the period 
     ending on the last day of the 24th month after the date of 
     the enactment of this Act, the limitation amount for any 
     region under subparagraph (C) exceeds the amount of bonds 
     allocated by the Secretary of the Treasury during such 
     period, the Secretary of the Treasury may allocate such 
     excess among qualified organizations in any other region in 
     such manner as the Secretary of the Treasury determines 
     appropriate.
       (E) Regions.--For purposes of this paragraph--
       (i) Pacific northwest region.--The term ``Pacific Northwest 
     region'' means Region 6 as defined by the United States 
     Forest Service of the Department of Agriculture under section 
     200.2 of title 36, Code of Federal Regulations.
       (ii) Western region.--The term ``Western region'' means 
     Regions 1, 2, 3, 4, 5, and 10 (as so defined).
       (iii) Southeast region.--The term ``Southeast region'' 
     means Region 8 (as so defined).
       (iv) Northeast region.--The term ``Northeast region'' means 
     Region 9 (as so defined).
       (4) Qualified project costs.--For purposes of this 
     subsection, the term ``qualified project costs'' means the 
     costs of acquisition by a qualified organization from an 
     unrelated person of forests and forest land which, at the 
     time of acquisition or immediately thereafter, are subject to 
     a conservation restriction described in subsection (c)(2).
       (5) Special rules.--In applying the Internal Revenue Code 
     of 1986 to any qualified forest conservation bond, the 
     following modifications shall apply:
       (A) Section 146 of such Code (relating to volume cap) shall 
     not apply.
       (B) For purposes of section 147(b) of such Code (relating 
     to maturity may not exceed 120 percent of economic life), the 
     land and standing timber acquired with proceeds of qualified 
     forest conservation bonds shall have an economic life of 35 
     years.
       (C) Subsections (c) and (d) of section 147 of such Code 
     (relating to limitations on acquisition of land and existing 
     property) shall not apply.
       (6) Treatment of current refunding bonds.--Paragraphs 
     (2)(B) and (3) shall not apply to any bond (or series of 
     bonds) issued to refund a qualified forest conservation bond 
     issued before the date which is 36 months after the date of 
     the enactment of this Act, if--
       (A) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       (B) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       (C) the net proceeds of the refunding bond are used to 
     redeem the refunded bond not later than 90 days after the 
     date of the issuance of the refunding bond.

     For purposes of subparagraph (A), average maturity shall be 
     determined in accordance with section 147(b)(2)(A) of such 
     Code.
       (7) Effective date.--This subsection shall apply to 
     obligations issued on or after the date which is 180 days 
     after the date of the enactment of this Act.
       (b) Items From Qualified Harvesting Activities Not Subject 
     to Tax or Taken Into Account.--
       (1) In general.--Income, gains, deductions, losses, or 
     credits from a qualified harvesting activity conducted by a 
     qualified organization shall not be subject to tax or taken 
     into account under subtitle A of the Internal Revenue Code of 
     1986.
       (2) Limitation.--The amount of income excluded from gross 
     income under paragraph (1) for any taxable year shall not 
     exceed the amount used by the qualified organization to make 
     debt service payments during such taxable year for qualified 
     forest conservation bonds.
       (3) Qualified harvesting activity.--For purposes of 
     paragraph (1)--

[[Page 29365]]

       (A) In general.--The term ``qualified harvesting activity'' 
     means the sale, lease, or harvesting, of standing timber--
       (i) on land owned by a qualified organization which was 
     acquired with proceeds of qualified forest conservation 
     bonds, and
       (ii) pursuant to a qualified conservation plan adopted by 
     the qualified organization.
       (B) Exceptions.--
       (i) Cessation as qualified organization.--The term 
     ``qualified harvesting activity'' shall not include any sale, 
     lease, or harvesting for any period during which the 
     organization ceases to qualify as a qualified organization.
       (ii) Exceeding limits on harvesting.--The term ``qualified 
     harvesting activity'' shall not include any sale, lease, or 
     harvesting of standing timber on land acquired with proceeds 
     of qualified forest conservation bonds to the extent that--

       (I) the average annual area of timber harvested from such 
     land exceeds 2.5 percent of the total area of such land, or
       (II) the quantity of timber removed from such land exceeds 
     the quantity which can be removed from such land annually in 
     perpetuity on a sustained-yield basis with respect to such 
     land.

     The limitations under subclauses (I) and (II) shall not apply 
     to post-fire restoration and rehabilitation or sanitation 
     harvesting of timber stands which are substantially damaged 
     by fire, windthrow, or other catastrophes, or which are in 
     imminent danger from insect or disease attack.
       (4) Termination.--This subsection shall not apply to any 
     qualified harvesting activity of a qualified organization 
     occurring after the date on which--
       (A) there is no outstanding qualified forest conservation 
     bond with respect to such qualified organization, or
       (B) any such bond ceases to be a tax-exempt bond.
       (5) Partial recapture of benefits if harvesting limit 
     exceeded.--If, as of the date that this subsection ceases to 
     apply under paragraph (4)(B), the average annual area of 
     timber harvested from the land exceeds the requirement of 
     subclause (I) or (II) of paragraph (3)(B)(ii), the tax 
     imposed by chapter 1 of the Internal Revenue Code of 1986 
     shall be increased, under rules prescribed by the Secretary 
     of the Treasury, by the sum of the tax benefits attributable 
     to such excess and interest at the underpayment rate under 
     section 6621 of such Code for the period of the underpayment.
       (c) Definitions.--For purposes of this section--
       (1) Qualified conservation plan.--The term ``qualified 
     conservation plan'' means a multiple land use program or plan 
     which--
       (A) is designed and administered primarily for the purposes 
     of protecting and enhancing wildlife and fish, timber, scenic 
     attributes, recreation, and soil and water quality of the 
     forest and forest land,
       (B) mandates that conservation of forest and forest land is 
     the single-most significant use of the forest and forest 
     land, and
       (C) requires that timber harvesting be consistent with--
       (i) restoring and maintaining reference conditions for the 
     region's ecotype,
       (ii) restoring and maintaining a representative sample of 
     young, mid, and late successional forest age classes,
       (iii) maintaining or restoring the resources' ecological 
     health for purposes of preventing damage from fire, insect, 
     or disease,
       (iv) maintaining or enhancing wildlife or fish habitat, or
       (v) enhancing research opportunities in sustainable 
     renewable resource uses.
       (2) Conservation restriction.--The conservation restriction 
     described in this paragraph is a restriction which--
       (A) is granted in perpetuity to an unrelated person which 
     is described in section 170(h)(3) of such Code and which, in 
     the case of a nongovernmental unit, is organized and operated 
     for conservation purposes,
       (B) meets the requirements of clause (ii) or (iii)(II) of 
     section 170(h)(4)(A) of such Code,
       (C) obligates the qualified organization to pay the costs 
     incurred by the holder of the conservation restriction in 
     monitoring compliance with such restriction, and
       (D) requires an increasing level of conservation benefits 
     to be provided whenever circumstances allow it.
       (3) Qualified organization.--The term ``qualified 
     organization'' means a nonprofit organization--
       (A) substantially all the activities of which are 
     charitable, scientific, or educational, including acquiring, 
     protecting, restoring, managing, and developing forest lands 
     and other renewable resources for the long-term charitable, 
     educational, scientific, and public benefit,
       (B) which periodically conducts educational programs 
     designed to inform the public of environmentally sensitive 
     forestry management and conservation techniques,
       (C) which has at all times a board of directors--
       (i) at least 20 percent of the members of which are 
     representatives of the conservation community,
       (ii) at least 20 percent of the members of which are public 
     officials, and
       (iii) not more than one-third of the members of which are 
     individuals who are or were at any time within 5 years before 
     the beginning of a term of membership on the board, an 
     employee of, independent contractor with respect to, officer 
     of, director of, or held a material financial interest in, a 
     commercial forest products enterprise with which the 
     qualified organization has a contractual or other financial 
     arrangement,
       (D) the bylaws of which require at least two-thirds of the 
     members of the board of directors to vote affirmatively to 
     approve the qualified conservation plan and any change 
     thereto, and
       (E) upon dissolution, is required to dedicate its assets 
     to--
       (i) an organization described in section 501(c)(3) of such 
     Code which is organized and operated for conservation 
     purposes, or
       (ii) a governmental unit described in section 170(c)(1) of 
     such Code.
       (4) Unrelated person.--The term ``unrelated person'' means 
     a person who is not a related person.
       (5) Related person.--A person shall be treated as related 
     to another person if--
       (A) such person bears a relationship to such other person 
     described in section 267(b) (determined without regard to 
     paragraph (9) thereof), or 707(b)(1), of such Code, 
     determined by substituting ``25 percent'' for ``50 percent'' 
     each place it appears therein, and
       (B) in the case such other person is a non-profit 
     organization, if such person controls directly or indirectly 
     more than 25 percent of the governing body of such 
     organization.

     SEC. 12212. DEDUCTION FOR QUALIFIED TIMBER GAIN.

       (a) In General.--Part I of subchapter P of chapter 1 is 
     amended by adding at the end the following new section:

     ``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.

       ``(a) In General.--In the case of a taxpayer which elects 
     the application of this section for a taxable year, there 
     shall be allowed a deduction against gross income in an 
     amount equal to 60 percent of the lesser of--
       ``(1) the taxpayer's qualified timber gain for such year, 
     or
       ``(2) the taxpayer's net capital gain for such year.
       ``(b) Qualified Timber Gain.--For purposes of this section, 
     the term `qualified timber gain' means, with respect to any 
     taxpayer for any taxable year, the excess (if any) of--
       ``(1) the sum of the taxpayer's gains described in 
     subsections (a) and (b) of section 631 for such year, over
       ``(2) the sum of the taxpayer's losses described in such 
     subsections for such year.
       ``(c) Special Rules for Pass-Thru Entities.--
       ``(1) In the case of any qualified timber gain of a pass-
     thru entity (as defined in section 1(h)(10)) other than a 
     real estate investment trust, the election under this section 
     shall be made separately by each taxpayer subject to tax on 
     such gain.
       ``(2) In the case of any qualified timber gain of a real 
     estate investment trust, the election under this section 
     shall be made by the real estate investment trust.
       ``(d) Election.--An election under this section may be made 
     only with respect to the first taxable year beginning after 
     the date of the enactment of this section.''.
       (b) Coordination With Maximum Capital Gains Rates.--
       (1) Taxpayers other than corporations.--Paragraph (2) of 
     section 1(h) is amended to read as follows:
       ``(2) Reduction of net capital gain.--For purposes of this 
     subsection, the net capital gain for any taxable year shall 
     be reduced (but not below zero) by the sum of--
       ``(A) the amount which the taxpayer takes into account as 
     investment income under section 163(d)(4)(B)(iii), and
       ``(B) in the case of a taxable year with respect to which 
     an election is in effect under section 1203, the lesser of--
       ``(i) the amount described in paragraph (1) of section 
     1203(a), or
       ``(ii) the amount described in paragraph (2) of such 
     section.''.
       (2) Corporations.--Section 1201 is amended by redesignating 
     subsection (b) as subsection (c) and inserting after 
     subsection (a) the following new subsection:
       ``(b) Qualified Timber Gain Not Taken Into Account.--For 
     purposes of this section, in the case of a corporation with 
     respect to which an election is in effect under section 1203, 
     the net capital gain for any taxable year shall be reduced 
     (but not below zero) by the corporation's qualified timber 
     gain (as defined in section 1203(b)).''.
       (c) Deduction Allowed Whether or Not Individual Itemizes 
     Other Deductions.--Subsection (a) of section 62 is amended by 
     inserting before the last sentence the following new 
     paragraph:
       ``(22) Qualified timber gains.--The deduction allowed by 
     section 1203.''.
       (d) Deduction Allowed in Computing Adjusted Current 
     Earnings.--Subparagraph (C) of section 56(g)(4) is amended by 
     adding at the end the following new clause:
       ``(vii) Deduction for qualified timber gain.--Clause (i) 
     shall not apply to any deduction allowed under section 
     1203.''.
       (e) Deduction Allowed in Computing Taxable Income of 
     Electing Small Business Trusts.--Subparagraph (C) of section 
     641(c)(2) is amended by inserting after clause (iii) the 
     following new clause:

[[Page 29366]]

       ``(iv) The deduction allowed under section 1203.''.
       (f) Treatment of Qualified Timber Gain of Real Estate 
     Investment Trusts.--Paragraph (3) of section 857(b) is 
     amended by inserting after subparagraph (F) the following new 
     subparagraph:
       ``(G) Treatment of qualified timber gain.--For purposes of 
     this part, in the case of a real estate investment trust with 
     respect to which an election is in effect under section 
     1203--
       ``(i) Reduction of net capital gain.--The net capital gain 
     of the real estate investment trust for any taxable year 
     shall be reduced (but not below zero) by the real estate 
     investment trust's qualified timber gain (as defined in 
     section 1203(b)).
       ``(ii) Adjustment to shareholder's basis attributable to 
     deduction for qualified timber gains.--

       ``(I) In general.--The adjusted basis of shares in the 
     hands of the shareholder shall be increased by the amount of 
     the deduction allowable under section 1203(a) as provided in 
     subclauses (II) and (III).
       ``(II) Allocation of basis increase for distributions made 
     during taxable year.--For any taxable year of a real estate 
     investment trust for which an election is in effect under 
     section 1203, in the case of a distribution made with respect 
     to shares during such taxable year of amounts attributable to 
     the deduction allowable under section 1203(a), the adjusted 
     basis of such shares shall be increased by the amount of such 
     distributions.
       ``(III) Allocation of excess.--If the deduction allowable 
     under section 1203(a) for a taxable year exceeds the amount 
     of distributions described in subclause (II), the excess 
     shall be allocated to every shareholder of the real estate 
     investment trust at the close of the trust's taxable year in 
     the same manner as if a distribution of such excess were made 
     with respect to such shares.
       ``(IV) Designations.--To the extent provided in 
     regulations, a real estate investment trust shall designate 
     the amounts described in subclauses (II) and (III) in a 
     manner similar to the designations provided with respect to 
     capital gains described in subparagraphs (C) and (D).
       ``(V) Definitions.--As used in this subparagraph, the terms 
     `share' and `shareholder' shall include beneficial interests 
     and holders of beneficial interests, respectively.

       ``(iii) Earnings and profits deduction for qualified timber 
     gains.--The deduction allowable under section 1203(a) for a 
     taxable year shall be allowed as a deduction in computing the 
     earnings and profits of the real estate investment trust for 
     such taxable year. The earnings and profits of any such 
     shareholder which is a corporation shall be appropriately 
     adjusted in accordance with regulations prescribed by the 
     Secretary.''.
       (g) Loss Attributable to Basis Adjustment for Deduction for 
     Qualified Timber Gain of Real Estate Investment Trusts.--
       (1) Section 857(b)(8) is amended by redesignating 
     subparagraphs (B) and (C) as subparagraphs (C) and (D), 
     respectively, and by inserting after subparagraph (A) the 
     following new subparagraph:
       ``(B) Loss attributable to basis adjustment for deduction 
     for qualified timber gain.--If--
       ``(i) a shareholder of a real estate investment trust 
     receives a basis adjustment provided under subsection 
     (b)(3)(G)(ii), and
       ``(ii) the taxpayer has held such share or interest for 6 
     months or less,

     then any loss on the sale or exchange of such share or 
     interest shall, to the extent of the amount described in 
     clause (i), be disallowed.''.
       (2) Subparagraph (D) of section 857(b)(8), as redesignated 
     by paragraph (1), is amended by striking ``subparagraph (A)'' 
     and inserting ``subparagraphs (A) and (B)''.
       (h) Conforming Amendments.--
       (1) Subparagraph (B) of section 172(d)(2) is amended to 
     read as follows:
       ``(B) the exclusion under section 1202, and the deduction 
     under section 1203, shall not be allowed.''.
       (2) Paragraph (4) of section 642(c) is amended by striking 
     the first sentence and inserting ``To the extent that the 
     amount otherwise allowable as a deduction under this 
     subsection consists of gain described in section 1202(a) or 
     qualified timber gain (as defined in section 1203(b)), proper 
     adjustment shall be made for any exclusion allowable to the 
     estate or trust under section 1202 and for any deduction 
     allowable to the estate or trust under section 1203.''
       (3) Paragraph (3) of section 643(a) is amended by striking 
     the last sentence and inserting ``The exclusion under section 
     1202 and the deduction under section 1203 shall not be taken 
     into account.''.
       (4) Subparagraph (C) of section 643(a)(6) is amended to 
     read as follows:
       ``(C) Paragraph (3) shall not apply to a foreign trust. In 
     the case of such a trust--
       ``(i) there shall be included gains from the sale or 
     exchange of capital assets, reduced by losses from such sales 
     or exchanges to the extent such losses do not exceed gains 
     from such sales or exchanges, and
       ``(ii) the deduction under section 1203 shall not be taken 
     into account.''.
       (5) Paragraph (4) of section 691(c) is amended by inserting 
     ``1203,'' after ``1202,''.
       (6) Paragraph (2) of section 871(a) is amended by inserting 
     ``or 1203,'' after ``1202,''.
       (7) The table of sections for part I of subchapter P of 
     chapter 1 is amended by adding at the end the following new 
     item:

``Sec. 1203. Deduction for qualified timber gain.''.
       (i) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 12213. EXCISE TAX NOT APPLICABLE TO SECTION 1203 
                   DEDUCTION OF REAL ESTATE INVESTMENT TRUSTS.

       (a) In General.--
       (1) Ordinary income.--Subparagraph (B) of section 
     4981(e)(1) is amended to read as follows:
       ``(B) by not taking into account--
       ``(i) any gain or loss from the sale or exchange of capital 
     assets (determined without regard to any reduction that would 
     be applied for purposes of section 857(b)(3)(G)(i)), and
       ``(ii) any deduction allowable under section 1203, and''.
       (2) Capital gain net income.--Section 4981(e)(2) is amended 
     by adding at the end the following new subparagraph:
       ``(D) Qualified timber gain.--The amount determined under 
     subparagraph (A) shall be determined without regard to any 
     reduction that would be applied for purposes of section 
     857(b)(3)(G)(i) but shall be reduced for any deduction 
     allowable under section 1203 for such calendar year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 12214. TIMBER REIT MODERNIZATION.

       (a) In General.--Section 856(c)(5) is amended by adding 
     after subparagraph (G) the following new subparagraph:
       ``(H) Treatment of timber gains.--
       ``(i) In general.--Gain from the sale of real property 
     described in paragraph (2)(D) and (3)(C) shall include gain 
     which is--

       ``(I) recognized by an election under section 631(a) from 
     timber owned by the real estate investment trust, the cutting 
     of which is provided by a taxable REIT subsidiary of the real 
     estate investment trust;
       ``(II) recognized under section 631(b); or
       ``(III) income which would constitute gain under subclause 
     (I) or (II) but for the failure to meet the 1-year holding 
     period requirement.

       ``(ii) Special rules.--

       ``(I) For purposes of this subtitle, cut timber, the gain 
     of which is recognized by a real estate investment trust 
     pursuant to an election under section 631(a) described in 
     clause (i)(I) or so much of clause (i)(III) as relates to 
     clause (i)(I), shall be deemed to be sold to the taxable REIT 
     subsidiary of the real estate investment trust on the first 
     day of the taxable year.
       ``(II) For purposes of this subtitle, income described in 
     this subparagraph shall not be treated as gain from the sale 
     of property described in section 1221(a)(1).

       ``(iii) Termination.--This subparagraph shall not apply to 
     dispositions after the termination date.''.
       (b) Termination Date.--Subsection (c) of section 856 is 
     amended by adding at the end the following new paragraph:
       ``(8) Termination date.--For purposes of this subsection, 
     the term `termination date' means the last day of the first 
     taxable year beginning after the date of the enactment of 
     this paragraph.''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to dispositions in taxable years beginning after 
     the date of the enactment of this Act.

     SEC. 12215. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR 
                   TIMBER REITS.

       (a) In General.--Section 856(c)(2) is amended by striking 
     ``and'' at the end of subparagraph (G), by inserting ``and'' 
     at the end of subparagraph (H), and by adding after 
     subparagraph (H) the following new subparagraph:
       ``(I) mineral royalty income earned in the first taxable 
     year beginning after the date of the enactment of this 
     subparagraph from real property owned by a timber real estate 
     investment trust held, or once held, in connection with the 
     trade or business of producing timber by such real estate 
     investment trust;''.
       (b) Timber Real Estate Investment Trust.--Section 
     856(c)(5), as amended by this Act, is amended by adding after 
     subparagraph (H) the following new subparagraph:
       ``(I) Timber real estate investment trust.--The term 
     `timber real estate investment trust' means a real estate 
     investment trust in which more than 50 percent in value of 
     its total assets consists of real property held in connection 
     with the trade or business of producing timber.''.
       (c) Effective Date.--The amendments by this section shall 
     apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 12216. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET 
                   TEST FOR TIMBER REITS.

       (a) In General.--Section 856(c)(4)(B)(ii) is amended by 
     inserting ``(in the case of a quarter which closes on or 
     before the termination date, 25 percent in the case of a 
     timber real estate investment trust)'' after ``not more than 
     20 percent of the value of its total assets is represented by 
     securities of one or more taxable REIT subsidiaries''.

[[Page 29367]]

       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 12217. SAFE HARBOR FOR TIMBER PROPERTY.

       (a) In General.--Section 857(b)(6) (relating to income from 
     prohibited transactions) is amended by adding at the end the 
     following new subparagraph:
       ``(G) Special rules for sales to qualified organizations.--
       ``(i) In general.--In the case of sale of a real estate 
     asset (as defined in section 856(c)(5)(B)) to a qualified 
     organization (as defined in section 170(h)(3)) exclusively 
     for conservation purposes (within the meaning of section 
     170(h)(1)(C)), subparagraph (D) shall be applied--

       ``(I) by substituting `2 years' for `4 years' in clause 
     (i), and
       ``(II) by substituting `2-year period' for `4-year period' 
     in clauses (ii) and (iii).

       ``(ii) Termination.--This subparagraph shall not apply to 
     sales after the termination date.''.
       (b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is 
     amended by inserting ``or, in the case of a sale on or before 
     the termination date, a taxable REIT subsidiary'' after 
     ``independent contractor (as defined in section 856(d)(3)) 
     from whom the trust itself does not derive or receive any 
     income''.
       (c) Sales That Are Not Prohibited Transactions.--Section 
     857(b)(6), as amended by subsection (a), is amended by adding 
     at the end the following new subparagraph:
       ``(H) Sales of property that are not a prohibited 
     transaction.--In the case of a sale on or before the 
     termination date, the sale of property which is not a 
     prohibited transaction through application of subparagraph 
     (D) shall be considered property held for investment or for 
     use in a trade or business and not property described in 
     section 1221(a)(1) for all purposes of this subtitle.''.
       (d) Termination Date.--Section 857(b)(6), as amended by 
     subsections (a) and (c), is amended by adding at the end the 
     following new subparagraph:
       ``(I) Termination date.--For purposes of this paragraph, 
     the term `termination date' means the last day of the first 
     taxable year beginning after the date of the enactment of 
     this subparagraph.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to dispositions in taxable years beginning after 
     the date of the enactment of this Act.

                     Subtitle C--Energy Provisions

                     PART I--ELECTRICITY GENERATION

     SEC. 12301. CREDIT FOR RESIDENTIAL AND BUSINESS WIND 
                   PROPERTY.

       (a) Residential Wind Property.--
       (1) In general.--Section 25D(a) (relating to allowance of 
     credit) is amended by striking ``and'' at the end of 
     paragraph (2), by striking the period at the end of paragraph 
     (3) and inserting ``, and'', and by adding at the end the 
     following new paragraph:
       ``(4) 30 percent of the qualified small wind energy 
     property expenditures made by the taxpayer during such 
     year.''.
       (2) Limitation.--Section 25D(b)(1) (relating to maximum 
     credit) is amended by striking ``and'' at the end of 
     subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(D) $4,000 with respect to any qualified small wind 
     energy property expenditures.''.
       (3) Qualified small wind energy property expenditures.--
       (A) In general.--Section 25D(d) (relating to definitions) 
     is amended by adding at the end the following new paragraph:
       ``(4) Qualified small wind energy property expenditure.--
     The term `qualified small wind energy property expenditure' 
     means an expenditure for qualified small wind energy property 
     (as defined in section 48(c)(3)(A)) installed on or in 
     connection with a dwelling unit located in the United States 
     and used as a residence by the taxpayer.''.
       (B) No double benefit.--Section 45(d)(1) (relating to wind 
     facility) is amended by adding at the end the following new 
     sentence: ``Such term shall not include any facility with 
     respect to which any qualified small wind energy property 
     expenditure (as defined in subsection (d)(4) of section 25D) 
     is taken into account in determining the credit under such 
     section.''.
       (4) Maximum expenditures in case of joint occupancy.--
     Section 25D(e)(4)(A) (relating to maximum expenditures) is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(iv) $1,667 in the case of wind turbines for which 
     qualified small wind energy property expenditures are 
     made.''.
       (b) Business Wind Property.--
       (1) In general.--Section 48(a)(3)(A) (defining energy 
     property) is amended by striking ``or'' at the end of clause 
     (iii), by adding ``or'' at the end of clause (iv), and by 
     inserting after clause (iv) the following new clause:
       ``(v) qualified small wind energy property,''.
       (2) 30 percent credit.--Section 48(a)(2)(A)(i) is amended 
     by striking ``and'' at the end of subclause (II) and by 
     inserting after subclause (III) the following new subclause:

       ``(IV) qualified small wind energy property, and''.

       (3) Qualified small wind energy property.--Section 48(c) is 
     amended--
       (A) by inserting ``; Qualified Small Wind Energy Property'' 
     after ``Qualified Microturbine Property'' in the heading,
       (B) by striking ``For purposes of this subsection'' and 
     inserting ``For purposes of this section'',
       (C) by striking ``paragraph (1)'' in paragraphs (1)(B) and 
     (2)(B) and inserting ``subsection (a)(1)'', and
       (D) by adding at the end the following new paragraph:
       ``(3) Qualified small wind energy property.--
       ``(A) In general.--The term `qualified small wind energy 
     property' means property which uses a qualifying small wind 
     turbine to generate electricity.
       ``(B) Limitation.--In the case of qualified small wind 
     energy property placed in service during the taxable year, 
     the credit otherwise determined under subsection (a)(1) for 
     such year with respect to such property shall not exceed 
     $4,000 with respect to any taxpayer.
       ``(C) Qualifying small wind turbine.--The term `qualifying 
     small wind turbine' means a wind turbine which--
       ``(i) has a nameplate capacity of not more than 100 
     kilowatts, and
       ``(ii) meets the performance standards of the American Wind 
     Energy Association.
       ``(D) Termination.--The term `qualified small wind energy 
     property' shall not include any property for any period after 
     December 31, 2008.''.
       (4) Conforming amendment.--Section 48(a)(1) is amended by 
     striking ``paragraphs (1)(B) and (2)(B)'' and inserting 
     ``paragraphs (1)(B), (2)(B), and (3)(B)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures after December 31, 2007.

     SEC. 12302. LANDOWNER INCENTIVE TO ENCOURAGE ELECTRIC 
                   TRANSMISSION BUILD-OUT.

       (a) In General.--Part III of subchapter B of chapter 1 
     (relating to items specifically excluded from gross income) 
     is amended by inserting after section 139A the following new 
     section:

     ``SEC. 139B. ELECTRIC TRANSMISSION EASEMENT PAYMENTS.

       ``(a) In General.--Gross income shall not include any 
     qualified electric transmission easement payment.
       ``(b) Qualified Electric Transmission Easement Payment.--
     For purposes of this section, the term `qualified electric 
     transmission payment' means any payment which is made--
       ``(1) by an electric utility or electric transmission 
     entity pursuant to an easement or other agreement granted by 
     the payee (or any predecessor of such payee), and
       ``(2) for the right of such entity (or any successors of 
     such entity) to locate on such payee's property transmission 
     lines and equipment used to transmit electricity at 230 or 
     more kilovolts, primarily from qualified facilities described 
     in section 45(d) (without regard to any placed in service 
     date or the last sentence of paragraph (4) thereof) or energy 
     property (as defined in section 48(a)(3)) placed in service 
     after the date of the enactment of this section.
       ``(c) No Increase in Basis.--Notwithstanding any other 
     provision of this subtitle, no increase in the basis or 
     adjusted basis of any property shall result from any amount 
     excluded under this subsection with respect to such property.
       ``(d) Denial of Double Benefit.--Notwithstanding any other 
     provision of this subtitle, no deduction or credit shall be 
     allowed (to the person for whose benefit a qualified electric 
     transmission easement payment is made) for, or by reason of, 
     any expenditure to the extent of the amount excluded under 
     this section with respect to such expenditure.''.
       (b) Clerical Amendment.--The table of sections for such 
     part III is amended by inserting after the item relating to 
     section 139A the following new item:

``Sec. 139B. Electric transmission easement payments.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to payments received after the date of the 
     enactment of this Act.

     SEC. 12303. EXCEPTION TO REDUCTION OF RENEWABLE ELECTRICITY 
                   CREDIT.

       (a) In General.--Section 45(b)(3) (relating to credit 
     reduced for grants, tax-exempt bonds, subsidized energy 
     financing, and other credits) is amended by adding after the 
     last sentence the following: ``This paragraph shall not apply 
     with respect to any loans, loan guarantees, or grants issued 
     by the Secretary of Agriculture under authority granted by 
     section 9006 of the Farm Security and Rural Investment Act of 
     2002.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to facilities placed in service after the date of 
     the enactment of this Act.

                         PART II--ALCOHOL FUEL

     SEC. 12311. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC 
                   BIOMASS ALCOHOL FUEL PLANT PROPERTY.

       (a) In General.--Paragraph (3) of section 168(l) (relating 
     to special allowance for cellulosic biomass ethanol plant 
     property) is amended to read as follows:

[[Page 29368]]

       ``(3) Cellulosic biomass alcohol.--For purposes of this 
     subsection, the term `cellulosic biomass alcohol' means any 
     alcohol produced from any lignocellulosic or hemicellulosic 
     matter that is available on a renewable or recurring 
     basis.''.
       (b) Conforming Amendments.--
       (1) Subsection (l) of section 168 is amended by striking 
     ``cellulosic biomass ethanol'' each place it appears and 
     inserting ``cellulosic biomass alcohol''.
       (2) The heading of section 168(l) is amended by striking 
     ``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic 
     Biomass Alcohol''.
       (3) The heading of paragraph (2) of section 168(l) is 
     amended by striking ``cellulosic biomass ethanol'' and 
     inserting ``cellulosic biomass alcohol''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 12312. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS 
                   ALCOHOL.

       (a) In General.--Subsection (a) of section 40 (relating to 
     alcohol used as fuel) is amended by striking ``plus'' at the 
     end of paragraph (2), by striking the period at the end of 
     paragraph (3) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(4) the small cellulosic alcohol producer credit.''.
       (b) Small Cellulosic Alcohol Producer Credit.--
       (1) In general.--Subsection (b) of section 40 is amended by 
     adding at the end the following new paragraph:
       ``(6) Small cellulosic alcohol producer credit.--
       ``(A) In general.--In addition to any other credit allowed 
     under this section, there shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the applicable amount for each gallon of 
     not more than 60,000,000 gallons of qualified cellulosic 
     alcohol production.
       ``(B) Applicable amount.--For purposes of subparagraph (A), 
     the applicable amount means the excess of--
       ``(i) $1.28, over
       ``(ii) the sum of--

       ``(I) the amount of the credit in effect for alcohol which 
     is ethanol under subsection (b)(1) (without regard to 
     subsection (b)(3)) at the time of the qualified cellulosic 
     alcohol production, plus
       ``(II) the amount of the credit in effect under subsection 
     (b)(4) at the time of such production.

       ``(C) Qualified cellulosic alcohol production.--For 
     purposes of this section, the term `qualified cellulosic 
     alcohol production' means any cellulosic biomass alcohol 
     which is produced by an eligible small cellulosic alcohol 
     producer and which during the taxable year--
       ``(i) is sold by the taxpayer to another person--

       ``(I) for use by such other person in the production of a 
     qualified alcohol mixture in such other person's trade or 
     business (other than casual off-farm production),
       ``(II) for use by such other person as a fuel in a trade or 
     business, or
       ``(III) who sells such cellulosic biomass alcohol at retail 
     to another person and places such cellulosic biomass alcohol 
     in the fuel tank of such other person, or

       ``(ii) is used or sold by the taxpayer for any purpose 
     described in clause (i).
       ``(D) Additional distillation excluded.--The qualified 
     cellulosic alcohol production of any taxpayer for any taxable 
     year shall not include any alcohol which is purchased by the 
     taxpayer and with respect to which such producer increases 
     the proof of the alcohol by additional distillation.
       ``(E) Application of paragraph.--This paragraph shall apply 
     with respect to qualified cellulosic alcohol production after 
     December 31, 2007, and before April 1, 2015.''.
       (2) Termination date not to apply.--Subsection (e) of 
     section 40 (relating to termination) is amended--
       (A) by inserting ``or subsection (b)(6)(E)'' after ``by 
     reason of paragraph (1)'' in paragraph (2), and
       (B) by adding at the end the following new paragraph:
       ``(3) Exception for small cellulosic alcohol producer 
     credit.--Paragraph (1) shall not apply to the portion of the 
     credit allowed under this section by reason of subsection 
     (a)(4).''.
       (c) Eligible Small Cellulosic Alcohol Producer.--Section 40 
     is amended by adding at the end the following new subsection:
       ``(i) Definitions and Special Rules for Small Cellulosic 
     Alcohol Producer.--For purposes of this section--
       ``(1) In general.--The term `eligible small cellulosic 
     alcohol producer' means a person, who at all times during the 
     taxable year, has a productive capacity for cellulosic 
     biomass alcohol not in excess of 60,000,000 gallons.
       ``(2) Cellulosic biomass alcohol.--
       ``(A) In general.--The term `cellulosic biomass alcohol' 
     has the meaning given such term under section 168(l)(3), but 
     does not include any alcohol with a proof of less than 150.
       ``(B) Determination of proof.--The determination of the 
     proof of any alcohol shall be made without regard to any 
     added denaturants.
       ``(3) Aggregation rule.--For purposes of the 60,000,000 
     gallon limitation under paragraph (1) and subsection 
     (b)(6)(A), all members of the same controlled group of 
     corporations (within the meaning of section 267(f)) and all 
     persons under common control (within the meaning of section 
     52(b) but determined by treating an interest of more than 50 
     percent as a controlling interest) shall be treated as 1 
     person.
       ``(4) Partnership, s corporations, and other pass-thru 
     entities.--In the case of a partnership, trust, S 
     corporation, or other pass-thru entity, the limitation 
     contained in paragraph (1) shall be applied at the entity 
     level and at the partner or similar level.
       ``(5)  Allocation.--For purposes of this subsection, in the 
     case of a facility in which more than 1 person has an 
     interest, productive capacity shall be allocated among such 
     persons in such manner as the Secretary may prescribe.
       ``(6) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary to prevent the credit 
     provided for in subsection (a)(4) from directly or indirectly 
     benefitting any person with a direct or indirect productive 
     capacity of more than 60,000,000 gallons of cellulosic 
     biomass alcohol during the taxable year.
       ``(7) Allocation of small cellulosic producer credit to 
     patrons of cooperative.--Rules similar to the rules under 
     subsection (g)(6) shall apply for purposes of this 
     subsection.''.
       (d) Alcohol Not Used as a Fuel, etc.--
       (1) In general.--Paragraph (3) of section 40(d) is amended 
     by redesignating subparagraph (D) as subparagraph (E) and by 
     inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) Small cellulosic alcohol producer credit.--If--
       ``(i) any credit is allowed under subsection (a)(4), and
       ``(ii) any person does not use such fuel for a purpose 
     described in subsection (b)(6)(C),

     then there is hereby imposed on such person a tax equal to 
     the applicable amount for each gallon of such cellulosic 
     biomass alcohol.''.
       (2) Conforming amendments.--
       (A) Subparagraph (C) of section 40(d)(3) is amended by 
     striking ``producer'' in the heading and inserting ``small 
     ethanol producer''.
       (B) Subparagraph (E) of section 40(d)(3), as redesignated 
     by paragraph (1), is amended by striking ``or (C)'' and 
     inserting ``(C), or (D)''.
       (e) Alcohol Produced in the United States.--Section 40(d), 
     as amended by this section, is amended by adding at the end 
     the following new paragraph:
       ``(6) Special rule for small cellulosic alcohol 
     producers.--No small cellulosic alcohol producer credit shall 
     be determined under subsection (a) with respect to any 
     alcohol unless such alcohol is produced in the United 
     States.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to fuel produced after December 31, 2007.

     SEC. 12313. EXTENSION OF SMALL ETHANOL PRODUCER CREDIT.

       Paragraph (1) of section 40(e) (relating to termination) is 
     amended--
       (1) in subparagraph (A), by inserting ``(December 31, 2012, 
     in the case of the credit allowed by reason of subsection 
     (a)(3))'' after ``December 31, 2010'', and
       (2) in subparagraph (B), by inserting ``(January 1, 2013, 
     in the case of the credit allowed by reason of subsection 
     (a)(3))'' after ``January 1, 2011''.

     SEC. 12314. CREDIT FOR PRODUCERS OF FOSSIL FREE ALCOHOL.

       (a) In General.--Subsection (a) of section 40 (relating to 
     alcohol used as fuel), as amended by this Act, is amended by 
     striking ``plus'' at the end of paragraph (3), by striking 
     the period at the end of paragraph (4) and inserting ``, 
     plus'', and by adding at the end the following new paragraph:
       ``(5) the small fossil free alcohol producer credit.''.
       (b) Small Fossil Free Alcohol Producer Credit.--Subsection 
     (b) of section 40, as amended by this Act, is amended by 
     adding at the end the following new paragraph:
       ``(7) Small fossil free alcohol producer credit.--
       ``(A) In general.--In addition to any other credit allowed 
     under this section, there shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to 10 cents for each gallon of not more than 
     60,000,000 gallons of qualified fossil free alcohol 
     production.
       ``(B) Qualified fossil free alcohol production.--For 
     purposes of this section, the term `qualified fossil free 
     alcohol production' means alcohol which is produced by an 
     eligible small fossil free alcohol producer at a fossil free 
     alcohol production facility and which during the taxable 
     year--
       ``(i) is sold by the taxpayer to another person--

       ``(I) for use by such other person in the production of a 
     qualified alcohol mixture in such other person's trade or 
     business (other than casual off-farm production),
       ``(II) for use by such other person as a fuel in a trade or 
     business, or
       ``(III) who sells such alcohol at retail to another person 
     and places such alcohol in the fuel tank of such other 
     person, or

[[Page 29369]]

       ``(ii) is used or sold by the taxpayer for any purpose 
     described in clause (i).
       ``(C) Additional distillation excluded.--The qualified 
     fossil free alcohol production of any taxpayer for any 
     taxable year shall not include any alcohol which is purchased 
     by the taxpayer and with respect to which such producer 
     increases the proof of the alcohol by additional 
     distillation.''.
       (c) Eligible Small Fossil Free Alcohol Producer.--Section 
     40, as amended by this Act, is amended by adding at the end 
     the following new subsection:
       ``(j) Definitions and Special Rules for Small Fossil Free 
     Alcohol Producer.--For purposes of this section--
       ``(1) In general.--The term `eligible small fossil free 
     alcohol producer' means a person, who at all times during the 
     taxable year, has a productive capacity for alcohol from all 
     fossil free alcohol production facilities of the taxpayer 
     which is not in excess of 60,000,000 gallons.
       ``(2) Fossil free alcohol production facility.--The term 
     `fossil free alcohol production facility' means any facility 
     at which 90 percent of the energy used in the production of 
     alcohol is produced from biomass (as defined in section 
     45K(c)(3)).
       ``(3) Aggregation rule.--For purposes of the 60,000,000 
     gallon limitation under paragraph (1) and subsection 
     (b)(7)(A), all members of the same controlled group of 
     corporations (within the meaning of section 267(f)) and all 
     persons under common control (within the meaning of section 
     52(b) but determined by treating an interest of more than 50 
     percent as a controlling interest) shall be treated as 1 
     person.
       ``(4) Partnership, s corporations, and other pass-thru 
     entities.--In the case of a partnership, trust, S 
     corporation, or other pass-thru entity, the limitation 
     contained in paragraph (1) shall be applied at the entity 
     level and at the partner or similar level.
       ``(5)  Allocation.--For purposes of this subsection, in the 
     case of a facility in which more than 1 person has an 
     interest, productive capacity shall be allocated among such 
     persons in such manner as the Secretary may prescribe.
       ``(6) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary to prevent the credit 
     provided for in subsection (a)(5) from directly or indirectly 
     benefitting any person with a direct or indirect productive 
     capacity of more than 60,000,000 gallons of alcohol from 
     fossil free alcohol production facilities during the taxable 
     year.
       ``(7) Allocation of small fossil free alcohol producer 
     credit to patrons of cooperative.--Rules similar to the rules 
     under subsection (g)(6) shall apply for purposes of this 
     subsection.''.
       (d) Alcohol Not Used as a Fuel, etc.--
       (1) In general.--Paragraph (3) of section 40(d), as amended 
     by this Act, is amended by redesignating subparagraph (E) as 
     subparagraph (F) and by inserting after subparagraph (D) the 
     following new subparagraph:
       ``(E) Small fossil free alcohol producer credit.--If--
       ``(i) any credit is allowed under subsection (a)(5), and
       ``(ii) any person does not use such fuel for a purpose 
     described in subsection (b)(7)(B),

     then there is hereby imposed on such person a tax equal to 10 
     cents for each gallon of such alcohol.''.
       (2) Conforming amendment.--Subparagraph (F) of section 
     40(d)(3), as redesignated by paragraph (1) and amended by 
     this Act, is amended by striking ``or (D)'' and inserting 
     ``(D), or (E)''.
       (e) Alcohol Produced in the United States.--Section 
     40(d)(6), as added by section 312 of this Act, is amended--
       (1) by inserting ``or small fossil free alcohol producer 
     credit'' after ``cellulosic alcohol producer credit'', and
       (2) by inserting ``and fossil free'' after ``cellulosic'' 
     in the heading.
       (f) Termination.--Paragraph (1) of section 40(e), as 
     amended by this Act, is amended--
       (1) in subparagraph (A), by inserting ``, and December 31, 
     2011, in the case of the credit allowed by reason of 
     subsection (a)(5)'' after ``subsection (a)(3)'', and
       (2) in subparagraph (B), by inserting ``, and January 1, 
     2012, in the case of the credit allowed by reason of 
     subsection (a)(5)'' after ``subsection (a)(3)''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to fuel produced after December 31, 2007.

     SEC. 12315. MODIFICATION OF ALCOHOL CREDIT.

       (a) Income Tax Credit.--Subsection (h) of section 40 
     (relating to reduced credit for ethanol blenders) is amended 
     by adding at the end the following new paragraph:
       ``(3) Reduced amount after sale of 7,500,000,000 gallons.--
       ``(A) In general.--In the case of any calendar year 
     beginning after the date described in subparagraph (B), the 
     last row in the table in paragraph (2) shall be applied by 
     substituting `46 cents' for `51 cents'.
       ``(B) Date described.--The date described in this 
     subparagraph is the first date on which 7,500,000,000 gallons 
     of ethanol (including cellulosic ethanol) have been produced 
     in or imported into the United States after the date of the 
     enactment of this paragraph, as certified by the Secretary, 
     in consultation with the Administrator of the Environmental 
     Protection Agency.''.
       (b) Excise Tax Credit.--
       (1) In general.--Paragraph (2) of section 6426(b) (relating 
     to alcohol fuel mixture credit) is amended by adding at the 
     end the following new subparagraph:
       ``(C) Reduced amount after sale of 7,500,000,000 gallons.--
     In the case of any alcohol fuel mixture produced in a 
     calendar year beginning after the date described in section 
     40(h)(3)(B), subparagraph (A) shall be applied by 
     substituting `46 cents' for `51 cents'.''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     6426(b)(2) is amended by striking ``subparagraph (B)'' and 
     inserting ``subparagraphs (B) and (C)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 12316. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL 
                   CREDITS.

       (a) In General.--Paragraph (4) of section 40(d) (relating 
     to volume of alcohol) is amended by striking ``the volume of 
     alcohol'' and all that follows and inserting ``the volume of 
     alcohol shall not include any denaturant added to such 
     alcohol.''.
       (b) Conforming Amendment for Excise Tax Credit.--Section 
     6426(b) (relating to alcohol fuel mixture credit) is amended 
     by redesignating paragraph (5) as paragraph (6) and by 
     inserting after paragraph (4) the following new paragraph:
       ``(5) Volume of alcohol.--For purposes of determining under 
     subsection (a) the number of gallons of alcohol with respect 
     to which a credit is allowable under subsection (a), the 
     volume of alcohol shall not include any denaturant added to 
     such alcohol.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2007.

     SEC. 12317. ETHANOL TARIFF EXTENSION.

       Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff 
     Schedule of the United States are each amended in the 
     effective period column by striking ``1/1/2009'' and 
     inserting ``1/1/2011''.

     SEC. 12318. LIMITATIONS ON, AND REDUCTIONS OF, DUTY DRAWBACK 
                   ON CERTAIN IMPORTED ETHANOL.

       (a) In General.--Section 313(p) of the Tariff Act of 1930 
     (19 U.S.C. 1313(p)) is amended by adding at the end the 
     following new paragraph:
       ``(5) Special rules for ethyl alcohol.--For purposes of 
     this subsection, an exported article that does not contain 
     ethyl alcohol or a mixture of ethyl alcohol shall not be 
     treated as the same kind and quality as a qualified article 
     that does contain ethyl alcohol or a mixture of ethyl 
     alcohol.''.
       (b) Limitations on, and Reductions of, Drawbacks.--Section 
     313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended by 
     adding at the end the following new subsection:
       ``(z) Limitations on, and Reductions of, Drawbacks.--
       ``(1) Limitations.--
       ``(A) In general.--Ethyl alcohol or mixture containing 
     ethyl alcohol described in subparagraph (B) may be treated as 
     being of the same kind and quality under subsection (b) of 
     this section or may be treated as being commercially 
     interchangeable with any other ethyl alcohol or mixture 
     containing ethyl alcohol under subsection (j)(2) of this 
     section, only if the other ethyl alcohol or mixture--
       ``(i) if imported, is subject to the additional duty under 
     subheading 9901.00.50 of the Harmonized Tariff Schedule of 
     the United States; or
       ``(ii) if domestic, is suitable for use as a fuel or in a 
     mixture to be used as a fuel as described in such subheading 
     9901.00.50.
       ``(B) Ethyl alcohol or mixture containing ethyl alcohol 
     described.--Ethyl alcohol or mixture containing ethyl alcohol 
     described in this subparagraph means--
       ``(i) ethyl alcohol classifiable under subheading 
     2207.10.60 or 2207.20.00 of the Harmonized Tariff Schedule of 
     the United States, or
       ``(ii) a mixture containing ethyl alcohol classifiable 
     under heading 2710 or 3824 of the Harmonized Tariff Schedule 
     of the United States,
     which, if imported would be subject to additional duty under 
     subheading 9901.00.50 of such Schedule.
       ``(2) Reduction of drawback.--For purposes of subsections 
     (b), (j)(2), and (p) of this section, the amount of the 
     refund as drawback under this section shall be reduced by an 
     amount equal to any Federal tax credit or refund of any 
     Federal tax paid on the merchandise with respect to which the 
     drawback is claimed.''.
       (c) Effective Date.--The amendments made by this section 
     apply to articles exported on or after the date that is 15 
     days after the date of the enactment of this Act.

             PART III--BIODIESEL AND RENEWABLE DIESEL FUEL

     SEC. 12321. EXTENSION AND MODIFICATION OF CREDIT FOR 
                   BIODIESEL AND RENEWABLE DIESEL USED AS FUEL.

       (a) Extension.--
       (1) Income tax credits for biodiesel and renewable diesel 
     and small agri-biodiesel producer credit.--Section 40A(g) 
     (relating to termination) is amended by striking ``December 
     31, 2008'' and inserting ``December 31, 2010 (December 31, 
     2012, in the case of the credit allowed by reason of 
     subsection (a)(3))''.

[[Page 29370]]

       (2) Excise tax credit.--Section 6426(c)(6) (relating to 
     termination) is amended by striking ``2008'' and inserting 
     ``2010''.
       (3) Fuels not used for taxable purposes.--Section 
     6427(e)(5)(B) (relating to termination) is amended by 
     striking ``2008'' and inserting ``2010''.
       (b) Modification of Credit for Renewable Diesel.--Section 
     40A(f) (relating to renewable diesel) is amended by adding at 
     the end the following new paragraph:
       ``(4) Special rule for co-processed renewable diesel.--In 
     the case of a taxpayer which produces renewable diesel 
     through the co-processing of biomass and petroleum at any 
     facility, this subsection shall not apply to so much of the 
     renewable diesel produced at such facility and sold or used 
     during the taxable year in a mixture described in subsection 
     (b)(1)(B) as exceeds 60,000,000 gallons.''.
       (c) Modification Relating to Definition of Agri-
     Biodiesel.--Paragraph (2) of section 40A(d) (relating to 
     agri-biodiesel) is amended by striking ``and mustard seeds'' 
     and inserting ``mustard seeds, and camelina''.
       (d) Effective Dates.--The amendments made by this section 
     shall apply to fuel sold or used after the date of the 
     enactment of this Act.

     SEC. 12322. TREATMENT OF QUALIFIED ALCOHOL FUEL MIXTURES AND 
                   QUALIFIED BIODIESEL FUEL MIXTURES AS TAXABLE 
                   FUELS.

       (a) In General.--
       (1) Qualified alcohol fuel mixtures.--Paragraph (2) of 
     section 4083(a) (relating to gasoline) is amended--
       (A) by striking ``and'' at the end of subparagraph (A),
       (B) by redesignating subparagraph (B) as subparagraph (C), 
     and
       (C) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) includes any qualified mixture (as defined in section 
     40(b)(1)(B)), and''.
       (2) Qualified biodiesel fuel mixtures.--Subparagraph (A) of 
     section 4083(a)(3) (relating to diesel fuel) is amended by 
     striking ``and'' at the end of clause (ii), by redesignating 
     clause (iii) as clause (iv), and inserting after clause (ii) 
     the following new clause:
       ``(iii) any qualified biodiesel mixture (as defined in 
     section 40A(b)(1)(B)), and''.
       (b) Modification of Biodiesel Certification Requirement.--
     Paragraph (4) of section 40A(b) is amended by striking 
     ``which identifies'' and all that follows and inserting 
     ``which--
       ``(A) identifies the product produced and the percentage of 
     biodiesel and agri-biodiesel in the product, and
       ``(B) documents that the biodiesel was independently tested 
     and meets the requirements of ASTM D6751.''.
       (c) Information Reporting Requirement for Producers of 
     Qualified Mixtures.--Section 4101(d) (relating to information 
     reporting) is amended to read as follows:
       ``(d) Information Reporting.--The Secretary--
       ``(1) may require--
       ``(A) information reporting by any person registered under 
     this section, and
       ``(B) information reporting by such other persons as the 
     Secretary deems necessary to carry out this part, and
       ``(2) shall require information reporting by any person 
     registered under this section and producing any qualified 
     mixture (as defined in section 40(b)(1)(B)) or any qualified 
     biodiesel mixture (as defined in section 40A(b)(1)(B)).

     Any person who is required to report under this subsection 
     and who has 25 or more reportable transactions in a month 
     shall file such report in electronic format.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuels removed, entered, or sold after December 
     31, 2007.

                       PART IV--ALTERNATIVE FUEL

     SEC. 12331. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL 
                   CREDIT.

       (a) Extension.--
       (1) Alternative fuel credit.--Paragraph (4) of section 
     6426(d) (relating to alternative fuel credit) is amended by 
     striking ``September 30, 2009'' and inserting ``December 31, 
     2010''.
       (2) Alternative fuel mixture credit.--Paragraph (3) of 
     section 6426(e) (relating to alternative fuel mixture credit) 
     is amended by striking ``September 30, 2009'' and inserting 
     ``December 31, 2010''.
       (3) Payments.--Subparagraph (C) of section 6427(e)(5) 
     (relating to termination) is amended by striking ``September 
     30, 2009'' and inserting ``December 31, 2010''.
       (b) Modifications.--
       (1) Alternative fuel to include compressed or liquified 
     biomass gas.--Paragraph (2) of section 6426(d) (relating to 
     alternative fuel credit) is amended by striking ``and'' at 
     the end of subparagraph (E), by redesignating subparagraph 
     (F) as subparagraph (G), and by inserting after subparagraph 
     (E) the following new subparagraph:
       ``(F) compressed or liquefied biomass gas, and''.
       (2) Credit allowed for aviation use of fuel.--Paragraph (1) 
     of section 6426(d) is amended by inserting ``sold by the 
     taxpayer for use as a fuel in aviation,'' after 
     ``motorboat,''.
       (c) Carbon Capture Requirement for Certain Fuels.--
       (1) In general.--Subsection (d) of section 6426, as amended 
     by subsection (a), is amended by redesignating paragraph (4) 
     as paragraph (5) and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Carbon capture requirement.--
       ``(A) In general.--The requirements of this paragraph are 
     met if the fuel is certified, under such procedures as 
     required by the Secretary, as having been derived from coal 
     produced at a gasification facility which separates and 
     sequesters not less than the applicable percentage of such 
     facility's total carbon dioxide emissions.
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage is--
       ``(i) 50 percent in the case of fuel produced after the 
     date of the enactment of this paragraph and on or before the 
     earlier of--

       ``(I) the date the Secretary makes a determination under 
     subparagraph (C), or
       ``(II) December 30, 2010, and

       ``(ii) 75 percent in the case of fuel produced after the 
     date on which the applicable percentage under clause (i) 
     ceases to apply.
       ``(C) Determination to increase applicable percentage 
     before december 31, 2010.--If the Secretary, after 
     considering the recommendations of the Carbon Sequestration 
     Capability Panel, finds that the applicable percentage under 
     subparagraph (B) should be 75 percent for fuel produced 
     before December 31, 2010, the Secretary shall make a 
     determination under this subparagraph. Any determination made 
     under this subparagraph shall be made not later than 30 days 
     after the Secretary receives from the Carbon Sequestration 
     Panel the report required under section 331(c)(3)(D) of the 
     Heartland, Habitat, Harvest, and Horticulture Act of 2007.''.
       (2) Conforming amendment.--Subparagraph (E) of section 
     6426(d)(2) is amended by inserting ``which meets the 
     requirements of paragraph (4) and which is'' after ``any 
     liquid fuel''.
       (3) Carbon sequestration capability panel.--
       (A) Establishment of panel.--There is established a panel 
     to be known as the ``Carbon Sequestration Capability Panel'' 
     (hereafter in this paragraph referred to as the ``Panel'').
       (B) Membership.--The Panel shall be composed of--
       (i) 1 representative from the National Academy of Sciences,
       (ii) 1 representative from the University of Kentucky 
     Center for Applied Energy Research, and
       (iii) 1 individual appointed jointly by the representatives 
     under clauses (i) and (ii).
       (C) Study.--The Panel shall study the appropriate 
     percentage of carbon dioxide for separation and sequestration 
     under section 6426(d)(4) of the Internal Revenue Code of 1986 
     consistent with the purposes of such section. The panel shall 
     consider whether it is feasible to separate and sequester 75 
     percent of the carbon dioxide emissions of a facility, 
     including costs and other factors associated with separating 
     and sequestering such percentage of carbon dioxide emissions.
       (D) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Panel shall report to the 
     Secretary of Treasury, the Committee on Finance of the 
     Senate, and the Committee on Ways and Means of the House of 
     Representatives on the study under subparagraph (C).
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after the date of the 
     enactment of this Act.

     SEC. 12332. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING 
                   PROPERTY CREDIT.

       Paragraph (2) of section 30C(g) (relating to termination) 
     is amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.

                  Subtitle D--Agricultural Provisions

     SEC. 12401. INCREASE IN LOAN LIMITS ON AGRICULTURAL BONDS.

       (a) In General.--Subparagraph (A) of section 147(c)(2) 
     (relating to exception for first-time farmers) is amended by 
     striking ``$250,000'' and inserting ``$450,000''.
       (b) Inflation Adjustment.--Section 147(c)(2) is amended by 
     adding at the end the following new subparagraph:
       ``(H) Adjustments for inflation.--In the case of any 
     calendar year after 2008, the dollar amount in subparagraph 
     (A) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2007' for `calendar year 1992' in 
     subparagraph (B) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $100, such amount shall be rounded to the 
     nearest multiple of $100.''.
       (c) Modification of Substantial Farmland Definition.--
     Section 147(c)(2)(E) (defining substantial farmland) is 
     amended by striking ``unless'' and all that follows through 
     the period and inserting ``unless such parcel is smaller than 
     30 percent of the median size of a farm in the county in 
     which such parcel is located.''.
       (d) Conforming Amendment.--Section 147(c)(2)(C)(i)(II) is 
     amended by striking ``$250,000'' and inserting ``the amount 
     in effect under subparagraph (A)''.

[[Page 29371]]

       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 12402. MODIFICATION OF INSTALLMENT SALE RULES FOR 
                   CERTAIN FARM PROPERTY.

       (a) In General.--Section 453(i) (relating to recognition of 
     recapture income in year of disposition) is amended by adding 
     at the end the following new paragraph:
       ``(3) Exception for certain farm property.--Paragraph (1) 
     shall not apply to any installment sale of any single purpose 
     agricultural or horticultural structure or any tree or vine 
     bearing fruit or nuts eligible for classification as 10-year 
     property under section 168(e)(3)(D).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to installment sales occurring after the date of 
     the enactment of this Act.

     SEC. 12403. ALLOWANCE OF SECTION 1031 TREATMENT FOR EXCHANGES 
                   INVOLVING CERTAIN MUTUAL DITCH, RESERVOIR, OR 
                   IRRIGATION COMPANY STOCK.

       (a) In General.--Section 1031 (relating to exchange of 
     property held for productive use or investment) is amended by 
     adding at the end the following new subsection:
       ``(i) Special Rules for Mutual Ditch, Reservoir, or 
     Irrigation Company Stock.--For purposes of subsection 
     (a)(2)(B), the term `stocks' shall not include shares in a 
     mutual ditch, reservoir, or irrigation company if at the time 
     of the exchange--
       ``(1) the mutual ditch, reservoir, or irrigation company is 
     an organization described in section 501(c)(12)(A) 
     (determined without regard to the percentage of its income 
     that is collected from its members for the purpose of meeting 
     losses and expenses), and
       ``(2) the shares in such company have been recognized by 
     the highest court of the State in which such company was 
     organized or by applicable State statute as constituting or 
     representing real property or an interest in real 
     property.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to exchanges completed after the date of the 
     enactment of this Act.

     SEC. 12404. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

       (a) In General.--Subpart H of part IV of subchapter A of 
     chapter 1 (relating to credits against tax) is amended by 
     adding at the end the following new section:

     ``SEC. 54A. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a rural renaissance bond on 1 or more credit allowance 
     dates of the bond occurring during any taxable year, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to the sum of 
     the credits determined under subsection (b) with respect to 
     such dates.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a rural renaissance bond is 25 percent of the annual 
     credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any rural renaissance bond is the product of--
       ``(A) the credit rate determined by the Secretary under 
     paragraph (3) for the day on which such bond was sold, 
     multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Determination.--For purposes of paragraph (2), with 
     respect to any rural renaissance bond, the Secretary shall 
     determine daily or caused to be determined daily a credit 
     rate which shall apply to the first day on which there is a 
     binding, written contract for the sale or exchange of the 
     bond. The credit rate for any day is the credit rate which 
     the Secretary or the Secretary's designee estimates will 
     permit the issuance of rural renaissance bonds with a 
     specified maturity or redemption date without discount and 
     without interest cost to the qualified issuer.
       ``(4) Credit allowance date.--For purposes of this section, 
     the term `credit allowance date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.
     Such term also includes the last day on which the bond is 
     outstanding.
       ``(5) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed or matures.
       ``(c) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for any taxable year shall not 
     exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(2) the sum of the credits allowable under this part 
     (other than subpart C, section 1400N(l), and this section).
       ``(d) Rural Renaissance Bond.--For purposes of this 
     section--
       ``(1) In general.--The term `rural renaissance bond' means 
     any bond issued as part of an issue if--
       ``(A) the bond is issued by a qualified issuer pursuant to 
     an allocation by the Secretary to such issuer of a portion of 
     the national rural renaissance bond limitation under 
     subsection (f)(2),
       ``(B) 95 percent or more of the proceeds from the sale of 
     such issue are to be used for capital expenditures incurred 
     by qualified borrowers for 1 or more qualified projects,
       ``(C) the qualified issuer designates such bond for 
     purposes of this section and the bond is in registered form,
       ``(D) the issue meets the requirements of subsection (h), 
     and
       ``(E) such bond is not a federally guaranteed bond (within 
     the meaning of section 149(b)(2)).
       ``(2) Qualified project; special use rules.--
       ``(A) In general.--The term `qualified project' means 1 or 
     more projects described in subparagraph (B) located in a 
     rural area.
       ``(B) Projects described.--A project described in this 
     subparagraph is a project eligible for assistance under--
       ``(i) the utilities programs described in section 
     381E(d)(2) of the Consolidated Farm and Rural Development Act 
     (7 U.S.C. 2009d(d)(2)),
       ``(ii) the distance learning or telemedicine programs 
     authorized pursuant to chapter 1 of subtitle D of title XXIII 
     of the Food, Agriculture, Conservation, and Trade Act of 1990 
     (7 U.S.C. 950aaa et seq.),
       ``(iii) the rural electric programs authorized pursuant to 
     the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.),
       ``(iv) the rural telephone programs authorized pursuant to 
     the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.),
       ``(v) the broadband access programs authorized pursuant to 
     title VI of the Rural Electrification Act of 1936 (7 U.S.C. 
     950bb et seq.), and
       ``(vi) the rural community facility programs as described 
     in section 381E(d)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2009d(d)(1)).
       ``(C) Refinancing rules.--For purposes of paragraph (1)(B), 
     a qualified project may be refinanced with proceeds of a 
     rural renaissance bond only if the indebtedness being 
     refinanced (including any obligation directly or indirectly 
     refinanced by such indebtedness) was originally incurred by a 
     qualified borrower after the date of the enactment of this 
     section.
       ``(D) Reimbursement.--For purposes of paragraph (1)(B), a 
     rural renaissance bond may be issued to reimburse a qualified 
     borrower for amounts paid after the date of the enactment of 
     this section with respect to a qualified project, but only 
     if--
       ``(i) prior to the payment of the original expenditure, the 
     qualified borrower declared its intent to reimburse such 
     expenditure with the proceeds of a rural renaissance bond,
       ``(ii) not later than 60 days after payment of the original 
     expenditure, the qualified issuer adopts an official intent 
     to reimburse the original expenditure with such proceeds, and
       ``(iii) the reimbursement is made not later than 18 months 
     after the date the original expenditure is paid.
       ``(E) Treatment of changes in use.--For purposes of 
     paragraph (1)(B), the proceeds of an issue shall not be 
     treated as used for a qualified project to the extent that a 
     qualified borrower or qualified issuer takes any action 
     within its control which causes such proceeds not to be used 
     for a qualified project. The Secretary shall prescribe 
     regulations specifying remedial actions that may be taken 
     (including conditions to taking such remedial actions) to 
     prevent an action described in the preceding sentence from 
     causing a bond to fail to be a rural renaissance bond.
       ``(F) Treatment of other subsidies.--For purposes of 
     subparagraph (B), a qualified project does not include any 
     portion of a project financed by grants or subsidized 
     financing provided (directly or indirectly) under a Federal 
     program, including any State or local obligation used to 
     provide financing for such portion the interest on which is 
     exempt from tax under section 103.
       ``(e) Maturity Limitations.--
       ``(1) Duration of term.--A bond shall not be treated as a 
     rural renaissance bond if the maturity of such bond exceeds 
     the maximum term determined by the Secretary under paragraph 
     (2) with respect to such bond.
       ``(2) Maximum term.--During each calendar month, the 
     Secretary shall determine the maximum term permitted under 
     this paragraph for bonds issued during the following calendar 
     month. Such maximum term shall be the term which the 
     Secretary estimates will result in the present value of the 
     obligation to repay the principal on the bond being equal to 
     50 percent of the face amount of such bond. Such present 
     value shall be determined without regard to the requirements 
     of paragraph (3) and using as a discount rate the average 
     annual interest rate of tax-exempt obligations having a term 
     of 10 years or more which are issued during the month. If the 
     term as so determined is not a multiple

[[Page 29372]]

     of a whole year, such term shall be rounded to the next 
     highest whole year.
       ``(3) Ratable principal amortization required.--A bond 
     shall not be treated as a rural renaissance bond unless it is 
     part of an issue which provides for an equal amount of 
     principal to be paid by the qualified issuer during each 
     calendar year that the issue is outstanding.
       ``(f) Limitation on Amount of Bonds Designated.--
       ``(1) National limitation.--There is a national rural 
     renaissance bond limitation of $400,000,000.
       ``(2) Allocation by secretary.--
       ``(A) In general.--In accordance with subparagraph (B), the 
     Secretary shall allocate the amount described in paragraph 
     (1) among at least 20 qualified projects, or such lesser 
     number of qualified projects with proper applications filed 
     after 12 months after the adoption of the selection process 
     under subparagraph (B).
       ``(B) Selection process.--In consultation with the 
     Secretary of Agriculture, the Secretary shall adopt a process 
     to select projects described in subparagraph (A). Under such 
     process, the Secretary shall not allocate more than 15 
     percent of the allocation under subparagraph (A) to qualified 
     projects within a single State.
       ``(g) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(h) Special Rules Relating to Expenditures.--
       ``(1) In general.--An issue shall be treated as meeting the 
     requirements of this subsection if, as of the date of 
     issuance, the qualified issuer reasonably expects--
       ``(A) at least 95 percent of the proceeds from the sale of 
     the issue are to be spent for 1 or more qualified projects 
     within the 5-year period beginning on the date of issuance of 
     the rural renaissance bond,
       ``(B) a binding commitment with a third party to spend at 
     least 10 percent of the proceeds from the sale of the issue 
     will be incurred within the 6-month period beginning on the 
     date of issuance of the rural renaissance bond or, in the 
     case of a rural renaissance bond the proceeds of which are to 
     be loaned to 2 or more qualified borrowers, such binding 
     commitment will be incurred within the 6-month period 
     beginning on the date of the loan of such proceeds to a 
     qualified borrower, and
       ``(C) such projects will be completed with due diligence 
     and the proceeds from the sale of the issue will be spent 
     with due diligence.
       ``(2) Extension of period.--Upon submission of a request 
     prior to the expiration of the period described in paragraph 
     (1)(A), the Secretary may extend such period if the qualified 
     issuer establishes that the failure to satisfy the 5-year 
     requirement is due to reasonable cause and the related 
     projects will continue to proceed with due diligence.
       ``(3) Failure to spend required amount of bond proceeds 
     within 5 years.--To the extent that less than 95 percent of 
     the proceeds of such issue are expended by the close of the 
     5-year period beginning on the date of issuance (or if an 
     extension has been obtained under paragraph (2), by the close 
     of the extended period), the qualified issuer shall redeem 
     all of the nonqualified bonds within 90 days after the end of 
     such period. For purposes of this paragraph, the amount of 
     the nonqualified bonds required to be redeemed shall be 
     determined in the same manner as under section 142.
       ``(i) Special Rules Relating to Arbitrage.--A bond which is 
     part of an issue shall not be treated as a rural renaissance 
     bond unless, with respect to the issue of which the bond is a 
     part, the qualified issuer satisfies the arbitrage 
     requirements of section 148 with respect to proceeds of the 
     issue.
       ``(j) Definitions and Special Rules Relating to Issuers and 
     Borrowers.--For purposes of this section--
       ``(1) Qualified issuer.--The term `qualified issuer' 
     means--
       ``(A) a rural renaissance bond lender,
       ``(B) a cooperative electric company, or
       ``(C) a governmental body.
       ``(2) Qualified borrower.--The term `qualified borrower' 
     means--
       ``(A) a mutual or cooperative electric company described in 
     section 501(c)(12) or 1381(a)(2)(C), or
       ``(B) a governmental body.
       ``(3) Rural renaissance bond lender.--The term `rural 
     renaissance bond lender' means a lender which is a 
     cooperative which is owned by, or has outstanding loans to, 
     100 or more cooperative electric companies and is in 
     existence on February 1, 2002, and shall include any 
     affiliated entity which is controlled by such lender.
       ``(4) Cooperative electric company.--The term `cooperative 
     electric company' means a mutual or cooperative electric 
     company described in section 501(c)(12) or section 
     1381(a)(2)(C), or a not-for-profit electric utility which has 
     received a loan or loan guarantee under the Rural 
     Electrification Act.
       ``(5) Governmental body.--The term `governmental body' 
     means any State, territory, possession of the United States, 
     the District of Columbia, Indian tribal government, and any 
     political subdivision thereof.
       ``(k) Special Rules Relating to Pool Bonds.--No portion of 
     a pooled financing bond may be allocable to loan unless the 
     borrower has entered into a written loan commitment for such 
     portion prior to the issue date of such issue.
       ``(l) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) Pooled financing bond.--The term `pooled financing 
     bond' shall have the meaning given such term by section 
     149(f)(4)(A).
       ``(3) Rural area.--The term `rural area' shall have the 
     meaning given such term by section 1393(a)(2).
       ``(4) Partnership; s corporation; and other pass-thru 
     entities.--
       ``(A) In general.--Under regulations prescribed by the 
     Secretary, in the case of a partnership, trust, S 
     corporation, or other pass-thru entity, rules similar to the 
     rules of section 41(g) shall apply with respect to the credit 
     allowable under subsection (a).
       ``(B) No basis adjustment.--In the case of a bond held by a 
     partnership or an S corporation, rules similar to the rules 
     under section 1397E(i) shall apply.
       ``(5) Bonds held by regulated investment companies.--If any 
     rural renaissance bond is held by a regulated investment 
     company, the credit determined under subsection (a) shall be 
     allowed to shareholders of such company under procedures 
     prescribed by the Secretary.
       ``(6) Reporting.--Issuers of rural renaissance bonds shall 
     submit reports similar to the reports required under section 
     149(e).
       ``(7) Termination.--This section shall not apply with 
     respect to any bond issued after December 31, 2008.''.
       (b) Reporting.--Subsection (d) of section 6049 (relating to 
     returns regarding payments of interest) is amended by adding 
     at the end the following new paragraph:
       ``(9) Reporting of credit on rural renaissance bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54A(g) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54A(b)(4)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A), subsection (b)(4) shall be 
     applied without regard to subparagraphs (A), (H), (I), (J), 
     (K), and (L)(i) of such subsection.
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (c) Conforming Amendments.--
       (1) The table of sections for subpart H of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 54A. Credit to holders of rural renaissance bonds.''.
       (2) Section 54(c)(2) is amended by inserting ``section 
     54A,'' after ``subpart C,''.
       (d) Issuance of Regulations.--The Secretary of Treasury 
     shall issue regulations required under section 54A (as added 
     by this section) not later than 120 days after the date of 
     the enactment of this Act.
       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 12405. AGRICULTURAL CHEMICALS SECURITY CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.

       ``(a) In General.--For purposes of section 38, in the case 
     of an eligible agricultural business, the agricultural 
     chemicals security credit determined under this section for 
     the taxable year is 30 percent of the qualified security 
     expenditures for the taxable year.
       ``(b) Facility Limitation.--The amount of the credit 
     determined under subsection (a) with respect to any facility 
     for any taxable year shall not exceed--
       ``(1) $100,000, reduced by
       ``(2) the aggregate amount of credits determined under 
     subsection (a) with respect to such facility for the 5 prior 
     taxable years.
       ``(c) Annual Limitation.--The amount of the credit 
     determined under subsection (a) with respect to any taxpayer 
     for any taxable year shall not exceed $2,000,000.
       ``(d) Qualified Chemical Security Expenditure.--For 
     purposes of this section, the term `qualified chemical 
     security expenditure' means, with respect to any eligible 
     agricultural business for any taxable year, any amount paid 
     or incurred by such business during such taxable year for--
       ``(1) employee security training and background checks,
       ``(2) limitation and prevention of access to controls of 
     specified agricultural chemicals stored at the facility,
       ``(3) tagging, locking tank valves, and chemical additives 
     to prevent the theft of specified agricultural chemicals or 
     to render such chemicals unfit for illegal use,
       ``(4) protection of the perimeter of specified agricultural 
     chemicals,

[[Page 29373]]

       ``(5) installation of security lighting, cameras, recording 
     equipment, and intrusion detection sensors,
       ``(6) implementation of measures to increase computer or 
     computer network security,
       ``(7) conducting a security vulnerability assessment,
       ``(8) implementing a site security plan, and
       ``(9) such other measures for the protection of specified 
     agricultural chemicals as the Secretary may identify in 
     regulation.
     Amounts described in the preceding sentence shall be taken 
     into account only to the extent that such amounts are paid or 
     incurred for the purpose of protecting specified agricultural 
     chemicals.
       ``(e) Eligible Agricultural Business.--For purposes of this 
     section, the term `eligible agricultural business' means any 
     person in the trade or business of--
       ``(1) selling agricultural products, including specified 
     agricultural chemicals, at retail predominantly to farmers 
     and ranchers, or
       ``(2) manufacturing, formulating, distributing, or aerially 
     applying specified agricultural chemicals.
       ``(f) Specified Agricultural Chemical.--For purposes of 
     this section, the term `specified agricultural chemical' 
     means--
       ``(1) any fertilizer commonly used in agricultural 
     operations which is listed under--
       ``(A) section 302(a)(2) of the Emergency Planning and 
     Community Right-to-Know Act of 1986,
       ``(B) section 101 of part 172 of title 49, Code of Federal 
     Regulations, or
       ``(C) part 126, 127, or 154 of title 33, Code of Federal 
     Regulations, and
       ``(2) any pesticide (as defined in section 2(u) of the 
     Federal Insecticide, Fungicide, and Rodenticide Act), 
     including all active and inert ingredients thereof, which is 
     customarily used on crops grown for food, feed, or fiber.
       ``(g) Controlled Groups.--Rules similar to the rules of 
     paragraphs (1) and (2) of section 41(f) shall apply for 
     purposes of this section.
       ``(h) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section, including regulations which--
       ``(1) provide for the proper treatment of amounts which are 
     paid or incurred for purpose of protecting any specified 
     agricultural chemical and for other purposes, and
       ``(2) provide for the treatment of related properties as 
     one facility for purposes of subsection (b).
       ``(i) Termination.--This section shall not apply to any 
     amount paid or incurred after December 31, 2012.''.
       (b) Credit Allowed as Part of General Business Credit.--
     Section 38(b) is amended by striking ``plus'' at the end of 
     paragraph (30), by striking the period at the end of 
     paragraph (31) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(32) in the case of an eligible agricultural business (as 
     defined in section 45O(e)), the agricultural chemicals 
     security credit determined under section 45O(a).''.
       (c) Denial of Double Benefit.--Section 280C is amended by 
     adding at the end the following new subsection:
       ``(f) Credit for Security of Agricultural Chemicals.--No 
     deduction shall be allowed for that portion of the expenses 
     otherwise allowable as a deduction taken into account in 
     determining the credit under section 45O for the taxable year 
     which is equal to the amount of the credit determined for 
     such taxable year under section 45O(a).''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45O. Agricultural chemicals security credit.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.

     SEC. 12406. CREDIT FOR DRUG SAFETY AND EFFECTIVENESS TESTING 
                   FOR MINOR ANIMAL SPECIES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits), as amended 
     by this Act, is amended by adding at the end the following 
     new section:

     ``SEC. 45P. DRUG SAFETY AND EFFECTIVENESS TESTING FOR MINOR 
                   ANIMAL SPECIES.

       ``(a) Allowance of Credit.--For purposes of section 38, in 
     the case of an eligible taxpayer, the drug safety and 
     effectiveness testing for minor animal species credit 
     determined under this section for the taxable year shall be 
     an amount equal to 50 percent of the qualified safety and 
     effectiveness testing expenses paid or incurred by the 
     taxpayer during the taxable year.
       ``(b) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' any taxpayer--
       ``(1) which--
       ``(A) applies for the designation of a new animal drug for 
     use on a minor animal species under section 573 of the 
     Federal Food, Drug, and Cosmetic Act, or
       ``(B) owns animals which are the subject of safety and 
     effectiveness testing, and
       ``(2) which elects the application of this section for the 
     taxable year.
       ``(c) Qualified Safety and Effectiveness Testing 
     Expenses.--For purposes of this section--
       ``(1) In general.--The term `qualified safety and 
     effectiveness testing expenses' means the sum of the 
     following amounts which are paid or incurred by the eligible 
     taxpayer during the taxable year in carrying on any trade or 
     business of such taxpayer:
       ``(A) In-house safety and effectiveness testing expenses.
       ``(B) Contract safety and effectiveness testing expenses.
     Such term does not include any amount to the extent such 
     amount is funded by any grant, contract, or otherwise by 
     another person (or any governmental entity).
       ``(2) In-house safety and effectiveness testing expenses.--
       ``(A) In general.--The term `in-house safety and 
     effectiveness testing expenses' means--
       ``(i) any wages paid or incurred to an employee for 
     qualified services performed by such employee,
       ``(ii) any amount paid or incurred for supplies used in the 
     conduct of safety and effectiveness testing, and
       ``(iii) under regulations prescribed by the Secretary, any 
     amount paid or incurred to another person for the right to 
     use computers in the conduct of safety and effectiveness 
     testing.
     Clause (iii) shall not apply to any amount to the extent that 
     the taxpayer (or any person with whom the taxpayer must 
     aggregate expenditures under rules specified under subsection 
     (f)(2)) receives or accrues any amount from any other person 
     for the right to use substantially identical personal 
     property.
       ``(B) Qualified services.--The term `qualified services' 
     means services consisting of--
       ``(i) engaging in safety and effectiveness testing, or
       ``(ii) engaging in the direct supervision or direct support 
     of such testing.
     If substantially all of the services performed by an 
     individual for the taxpayer during the taxable year consists 
     of services meeting the requirements of clause (i) or (ii), 
     the term `qualified services' means all of the services 
     performed by such individual for the taxpayer during the 
     taxable year.
       ``(C) Wages and supplies.--The terms `wages' and `supplies' 
     have the meanings given such terms by section 41(b).
       ``(3) Contract safety and effectiveness testing expenses.--
       ``(A) In general.--The term `contract safety and 
     effectiveness testing expenses' means any amount paid or 
     incurred by the taxpayer to any person (other than an 
     employee of the taxpayer) for safety and effectiveness 
     testing.
       ``(B) Prepaid amounts.--If any contract safety and 
     effectiveness testing expenses paid or incurred during any 
     taxable year are attributable to safety and effectiveness 
     testing to be conducted after the close of such taxable year, 
     such amount shall be treated as paid or incurred during the 
     period during which the safety and effectiveness testing is 
     conducted.
       ``(d) Safety and Effectiveness Testing.--For purposes of 
     this section--
       ``(1) In general.--The term `safety and effectiveness 
     testing' means any testing which--
       ``(A) is related to the use of a new animal drug for use on 
     a minor animal species for which it was designated under 
     section 573 of the Federal Food, Drug, and Cosmetic Act,
       ``(B) is carried out under an exemption for such new animal 
     drug under section 512(j) of such Act (or regulations issued 
     under such section),
       ``(C) occurs--
       ``(i) after the date on which the application for 
     designation of such new animal drug under section 573 of such 
     Act is filed, and
       ``(ii) before the date on which such application is 
     approved under section 512(c) of such Act, and
       ``(D) which is conducted by or on behalf of an eligible 
     taxpayer.
       ``(2) Minor animal species.--
       ``(A) In general.--The term `minor animal species' means 
     animals, other than humans, which are not major animal 
     species.
       ``(B) Major animal species.--The term `major animal 
     species' means cattle, horses, swine, chickens, turkeys, 
     dogs, cats, and any other species as determined by the 
     Secretary, after consultation with the Secretary of 
     Agriculture.
       ``(e) Treatment of Qualified Safety and Effectiveness 
     Testing Expenses.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     qualified safety and effectiveness testing expenses for a 
     taxable year to which an election under this section applies 
     shall not be taken into account for purposes of determining 
     the credit allowable under section 41 for such taxable year.
       ``(2) Treated as base period research expenses.--Any 
     qualified safe and effectiveness testing expenses for any 
     taxable year which are qualified research expenses (within 
     the meaning of section 41(b)) shall be taken into account in 
     determining base period research expenses for purposes of 
     applying section 41 to subsequent taxable years.

[[Page 29374]]

       ``(f) Special Rules.--
       ``(1) Limitation.--No credit shall be allowed under this 
     section with respect to any safety and effectiveness testing 
     conducted by a corporation to which an election under section 
     936 applies.
       ``(2) Aggregation of expenditures and allocations of 
     credit.--Rules similar to the rules of paragraphs (1) and (2) 
     of section 41(f) and section 41(g) shall apply for purposes 
     of this section.''.
       (b) Credit Allowed as Part of General Business Credit.--
     Section 38(b), as amended by this Act, is amended by striking 
     ``plus'' at the end of paragraph (31), by striking the period 
     at the end of paragraph (32) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(33) the drug safety and effectiveness testing for minor 
     animal species credit determined under section 45P(a).''.
       (c) Denial of Double Benefit.--Section 280C, as amended by 
     this Act, is amended by adding at the end the following new 
     subsection:
       ``(g) Drug Safety and Effectiveness Testing for Minor 
     Animal Species Credit.--
       ``(1) In general.--No deduction shall be allowed for that 
     portion of the qualified safety and effectiveness testing 
     expenses (as defined in section 45P(c)(1)) otherwise 
     allowable as a deduction for the taxable year which is equal 
     to the amount of the credit determined for such taxable year 
     under section 45P(a).
       ``(2) Similar rule where taxpayer capitalizes rather than 
     deducts expenses.--If--
       ``(A) the amount of the credit determined for the taxable 
     year under section 45P(a), exceeds
       ``(B) the amount allowable as a deduction for such taxable 
     year for qualified safety and effectiveness testing expenses 
     (determined without regard to paragraph (1)),
     the amount chargeable to capital account for the taxable year 
     for such expenses shall be reduced by the amount of such 
     excess.
       ``(3) Controlled groups.--Paragraph (3) of subsection (b) 
     shall apply for purposes of this subsection.''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by this 
     Act, is amended by adding at the end the following new item:

``Sec. 45P. Drug safety and effectiveness testing for minor animal 
              species.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.

     SEC. 12407. CERTAIN FARMING BUSINESS MACHINERY AND EQUIPMENT 
                   TREATED AS 5-YEAR PROPERTY.

       (a) In General.--Section 168(e)(3)(B) (defining 5-year 
     property) is amended by striking ``and'' at the end of clause 
     (v), by striking the period at the end of clause (vi)(III) 
     and inserting ``, and'', and by inserting after clause (vi) 
     the following new clause:
       ``(vii) any machinery or equipment (other than any grain 
     bin, cotton ginning asset, fence, or other land improvement) 
     which is used in a farming business (as defined in section 
     263A(e)(4)), the original use of which commences with the 
     taxpayer after the date of the enactment of this clause, and 
     which is placed in service before January 1, 2010.''.
       (b) Alternative System.--The table contained in section 
     168(g)(3)(B) (relating to special rule for certain property 
     assigned to classes) is amended by inserting after the item 
     relating to subparagraph (B)(iii) the following:

  ``(B)(vii)......................................................10''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 12408. EXPENSING OF BROADBAND INTERNET ACCESS 
                   EXPENDITURES.

       (a) In General.--Part VI of subchapter B of chapter 1 
     (relating to itemized deductions for individuals and 
     corporations) is amended by inserting after section 190 the 
     following new section:

     ``SEC. 191. BROADBAND EXPENDITURES.

       ``(a) Treatment of Expenditures.--
       ``(1) In general.--A taxpayer may elect to treat any 
     qualified broadband expenditure which is paid or incurred by 
     the taxpayer as an expense which is not chargeable to a 
     capital account. Any expenditure which is so treated shall be 
     allowed as a deduction.
       ``(2) Election.--An election under paragraph (1) shall be 
     made at such time and in such manner as the Secretary may 
     prescribe by regulation.
       ``(b) Qualified Broadband Expenditures.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified broadband 
     expenditure' means, with respect to any taxable year, any 
     direct or indirect costs incurred after the date of the 
     enactment of this section, and on or before the first 
     December 31 which is 3 years after such date, and properly 
     taken into account with respect to--
       ``(A) the purchase or installation of qualified equipment 
     (including any upgrades thereto), and
       ``(B) the connection of such qualified equipment to any 
     qualified subscriber.
       ``(2) Certain satellite expenditures excluded.--Such term 
     shall not include any costs incurred with respect to the 
     launching of any satellite equipment.
       ``(3) Leased equipment.--Such term shall include so much of 
     the purchase price paid by the lessor of qualified equipment 
     subject to a lease described in subsection (c)(2)(B) as is 
     attributable to expenditures incurred by the lessee which 
     would otherwise be described in paragraph (1).
       ``(4) Limitation with regard to current generation 
     broadband services.--Only 50 percent of the amounts taken 
     into account under paragraph (1) with respect to qualified 
     equipment through which current generation broadband services 
     are provided shall be treated as qualified broadband 
     expenditures.
       ``(c) When Expenditures Taken Into Account.--For purposes 
     of this section--
       ``(1) In general.--Qualified broadband expenditures with 
     respect to qualified equipment shall be taken into account 
     with respect to the first taxable year in which--
       ``(A) current generation broadband services are provided 
     through such equipment to qualified subscribers, or
       ``(B) next generation broadband services are provided 
     through such equipment to qualified subscribers.
       ``(2) Limitation.--
       ``(A) In general.--Qualified expenditures shall be taken 
     into account under paragraph (1) only with respect to 
     qualified equipment--
       ``(i) the original use of which commences with the 
     taxpayer, and
       ``(ii) which is placed in service after the date of the 
     enactment of this Act.
       ``(B) Sale-leasebacks.--For purposes of subparagraph (A), 
     if property--
       ``(i) is originally placed in service after the date of the 
     enactment of this Act by any person, and
       ``(ii) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,
     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in clause (ii).
       ``(d) Special Allocation Rules.--
       ``(1) Current generation broadband services.--For purposes 
     of determining the amount of qualified broadband expenditures 
     under subsection (a)(1) with respect to qualified equipment 
     through which current generation broadband services are 
     provided, if the qualified equipment is capable of serving 
     both qualified subscribers and other subscribers, the 
     qualified broadband expenditures shall be multiplied by a 
     fraction--
       ``(A) the numerator of which is the sum of the number of 
     potential qualified subscribers within the rural areas and 
     the underserved areas which the equipment is capable of 
     serving with current generation broadband services, and
       ``(B) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with current generation broadband 
     services.
       ``(2) Next generation broadband services.--For purposes of 
     determining the amount of qualified broadband expenditures 
     under subsection (a)(1) with respect to qualified equipment 
     through which next generation broadband services are 
     provided, if the qualified equipment is capable of serving 
     both qualified subscribers and other subscribers, the 
     qualified broadband expenditures shall be multiplied by a 
     fraction--
       ``(A) the numerator of which is the sum of--
       ``(i) the number of potential qualified subscribers within 
     the rural areas and underserved areas, plus
       ``(ii) the number of potential qualified subscribers within 
     the area consisting only of residential subscribers not 
     described in clause (i),
     which the equipment is capable of serving with next 
     generation broadband services, and
       ``(B) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with next generation broadband services.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Antenna.--The term `antenna' means any device used to 
     transmit or receive signals through the electromagnetic 
     spectrum, including satellite equipment.
       ``(2) Cable operator.--The term `cable operator' has the 
     meaning given such term by section 602(5) of the 
     Communications Act of 1934 (47 U.S.C. 522(5)).
       ``(3) Commercial mobile service carrier.--The term 
     `commercial mobile service carrier' means any person 
     authorized to provide commercial mobile radio service as 
     defined in section 20.3 of title 47, Code of Federal 
     Regulations.
       ``(4) Current generation broadband service.--The term 
     `current generation broadband service' means the transmission 
     of signals at a rate of at least 5,000,000 bits per second to 
     the subscriber and at least 1,000,000 bits per second from 
     the subscriber.
       ``(5) Multiplexing or demultiplexing.--The term 
     `multiplexing' means the transmission of 2 or more signals 
     over a single channel, and the term `demultiplexing' means 
     the separation of 2 or more signals previously combined by 
     compatible multiplexing equipment.
       ``(6) Next generation broadband service.--The term `next 
     generation broadband

[[Page 29375]]

     service' means the transmission of signals at a rate of at 
     least 100,000,000 bits per second to the subscriber and at 
     least 20,000,000 bits per second from the subscriber.
       ``(7) Nonresidential subscriber.--The term `nonresidential 
     subscriber' means any person who purchases broadband services 
     which are delivered to the permanent place of business of 
     such person.
       ``(8) Open video system operator.--The term `open video 
     system operator' means any person authorized to provide 
     service under section 653 of the Communications Act of 1934 
     (47 U.S.C. 573).
       ``(9) Other wireless carrier.--The term `other wireless 
     carrier' means any person (other than a telecommunications 
     carrier, commercial mobile service carrier, cable operator, 
     open video system operator, or satellite carrier) providing 
     current generation broadband services or next generation 
     broadband service to subscribers through the radio 
     transmission of energy.
       ``(10) Packet switching.--The term `packet switching' means 
     controlling or routing the path of any digitized transmission 
     signal which is assembled into packets or cells.
       ``(11) Provider.--The term `provider' means, with respect 
     to any qualified equipment--
       ``(A) a cable operator,
       ``(B) a commercial mobile service carrier,
       ``(C) an open video system operator,
       ``(D) a satellite carrier,
       ``(E) a telecommunications carrier, or
       ``(F) any other wireless carrier,
     providing current generation broadband services or next 
     generation broadband services to subscribers through such 
     qualified equipment.
       ``(12) Provision of services.--A provider shall be treated 
     as providing services to 1 or more subscribers if--
       ``(A) such a subscriber has been passed by the provider's 
     equipment and can be connected to such equipment for a 
     standard connection fee,
       ``(B) the provider is physically able to deliver current 
     generation broadband services or next generation broadband 
     services, as applicable, to such a subscriber without making 
     more than an insignificant investment with respect to such 
     subscriber,
       ``(C) the provider has made reasonable efforts to make such 
     subscribers aware of the availability of such services,
       ``(D) such services have been purchased by 1 or more such 
     subscribers, and
       ``(E) such services are made available to such subscribers 
     at average prices comparable to those at which the provider 
     makes available similar services in any areas in which the 
     provider makes available such services.
       ``(13) Qualified equipment.--
       ``(A) In general.--The term `qualified equipment' means 
     equipment which provides current generation broadband 
     services or next generation broadband services--
       ``(i) at least a majority of the time during periods of 
     maximum demand to each subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no deduction is allowed under 
     subsection (a)(1).
       ``(B) Only certain investment taken into account.--Except 
     as provided in subparagraph (C) or (D), equipment shall be 
     taken into account under subparagraph (A) only to the extent 
     it--
       ``(i) extends from the last point of switching to the 
     outside of the unit, building, dwelling, or office owned or 
     leased by a subscriber in the case of a telecommunications 
     carrier or broadband-over-powerline operator,
       ``(ii) extends from the customer side of the mobile 
     telephone switching office to a transmission/receive antenna 
     (including such antenna) owned or leased by a subscriber in 
     the case of a commercial mobile service carrier,
       ``(iii) extends from the customer side of the headend to 
     the outside of the unit, building, dwelling, or office owned 
     or leased by a subscriber in the case of a cable operator or 
     open video system operator, or
       ``(iv) extends from a transmission/receive antenna 
     (including such antenna) which transmits and receives signals 
     to or from multiple subscribers, to a transmission/receive 
     antenna (including such antenna) on the outside of the unit, 
     building, dwelling, or office owned or leased by a subscriber 
     in the case of a satellite carrier or other wireless carrier, 
     unless such other wireless carrier is also a 
     telecommunications carrier.
       ``(C) Packet switching equipment.--Packet switching 
     equipment, regardless of location, shall be taken into 
     account under subparagraph (A) only if it is deployed in 
     connection with equipment described in subparagraph (B) and 
     is uniquely designed to perform the function of packet 
     switching for current generation broadband services or next 
     generation broadband services, but only if such packet 
     switching is the last in a series of such functions performed 
     in the transmission of a signal to a subscriber or the first 
     in a series of such functions performed in the transmission 
     of a signal from a subscriber.
       ``(D) Multiplexing and demultiplexing equipment.--
     Multiplexing and demultiplexing equipment shall be taken into 
     account under subparagraph (A) only to the extent it is 
     deployed in connection with equipment described in 
     subparagraph (B) and is uniquely designed to perform the 
     function of multiplexing and demultiplexing packets or cells 
     of data and making associated application adaptions, but only 
     if such multiplexing or demultiplexing equipment is located 
     between packet switching equipment described in subparagraph 
     (C) and the subscriber's premises.
       ``(14) Qualified subscriber.--The term `qualified 
     subscriber' means--
       ``(A) with respect to the provision of current generation 
     broadband services--
       ``(i) any nonresidential subscriber maintaining a permanent 
     place of business in a rural area or underserved area, or
       ``(ii) any residential subscriber residing in a dwelling 
     located in a rural area or underserved area which is not a 
     saturated market, and
       ``(B) with respect to the provision of next generation 
     broadband services--
       ``(i) any nonresidential subscriber maintaining a permanent 
     place of business in a rural area or underserved area, or
       ``(ii) any residential subscriber.
       ``(15) Residential subscriber.--The term `residential 
     subscriber' means any individual who purchases broadband 
     services which are delivered to such individual's dwelling.
       ``(16) Rural area.--The term `rural area' means any census 
     tract which--
       ``(A) is not within 10 miles of any incorporated or census 
     designated place containing more than 25,000 people, and
       ``(B) is not within a county or county equivalent which has 
     an overall population density of more than 500 people per 
     square mile of land.
       ``(17) Rural subscriber.--The term `rural subscriber' means 
     any residential subscriber residing in a dwelling located in 
     a rural area or nonresidential subscriber maintaining a 
     permanent place of business located in a rural area.
       ``(18) Satellite carrier.--The term `satellite carrier' 
     means any person using the facilities of a satellite or 
     satellite service licensed by the Federal Communications 
     Commission and operating in the Fixed-Satellite Service under 
     part 25 of title 47 of the Code of Federal Regulations or the 
     Direct Broadcast Satellite Service under part 100 of title 47 
     of such Code to establish and operate a channel of 
     communications for distribution of signals, and owning or 
     leasing a capacity or service on a satellite in order to 
     provide such point-to-multipoint distribution.
       ``(19) Saturated market.--The term `saturated market' means 
     any census tract in which, as of the date of the enactment of 
     this section--
       ``(A) current generation broadband services have been 
     provided by a single provider to 85 percent or more of the 
     total number of potential residential subscribers residing in 
     dwellings located within such census tract, and
       ``(B) such services can be utilized--
       ``(i) at least a majority of the time during periods of 
     maximum demand by each such subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no deduction is allowed under 
     subsection (a)(1).
       ``(20) Subscriber.--The term `subscriber' means any person 
     who purchases current generation broadband services or next 
     generation broadband services.
       ``(21) Telecommunications carrier.--The term 
     `telecommunications carrier' has the meaning given such term 
     by section 3(44) of the Communications Act of 1934 (47 U.S.C. 
     153(44)), but--
       ``(A) includes all members of an affiliated group of which 
     a telecommunications carrier is a member, and
       ``(B) does not include a commercial mobile service carrier.
       ``(22) Total potential subscriber population.--The term 
     `total potential subscriber population' means, with respect 
     to any area and based on the most recent census data, the 
     total number of potential residential subscribers residing in 
     dwellings located in such area and potential nonresidential 
     subscribers maintaining permanent places of business located 
     in such area.
       ``(23) Underserved area.--The term `underserved area' 
     means--
       ``(A) any census tract which is located in--
       ``(i) an empowerment zone or enterprise community 
     designated under section 1391, or
       ``(ii) the District of Columbia Enterprise Zone established 
     under section 1400, or
       ``(B) any census tract--
       ``(i) the poverty level of which is at least 30 percent 
     (based on the most recent census data), and
       ``(ii) the median family income of which does not exceed--

       ``(I) in the case of a census tract located in a 
     metropolitan statistical area, 70 percent of the greater of 
     the metropolitan area median family income or the statewide 
     median family income, and
       ``(II) in the case of a census tract located in a 
     nonmetropolitan statistical area, 70 percent of the 
     nonmetropolitan statewide median family income.

       ``(24) Underserved subscriber.--The term `underserved 
     subscriber' means any residential subscriber residing in a 
     dwelling located

[[Page 29376]]

     in an underserved area or nonresidential subscriber 
     maintaining a permanent place of business located in an 
     underserved area.
       ``(f) Special Rules.--
       ``(1) Property used outside the united states, etc., not 
     qualified.--No expenditures shall be taken into account under 
     subsection (a)(1) with respect to the portion of the cost of 
     any property referred to in section 50(b) or with respect to 
     the portion of the cost of any property specified in an 
     election under section 179.
       ``(2) Basis reduction.--
       ``(A) In general.--For purposes of this title, the basis of 
     any property shall be reduced by the portion of the cost of 
     such property taken into account under subsection (a)(1).
       ``(B) Ordinary income recapture.--For purposes of section 
     1245, the amount of the deduction allowable under subsection 
     (a)(1) with respect to any property which is of a character 
     subject to the allowance for depreciation shall be treated as 
     a deduction allowed for depreciation under section 167.
       ``(3) Coordination with section 38.--No credit shall be 
     allowed under section 38 with respect to any amount for which 
     a deduction is allowed under subsection (a)(1).''.
       (b) Special Rule for Mutual or Cooperative Telephone 
     Companies.--Section 512(b) (relating to modifications) is 
     amended by adding at the end the following new paragraph:
       ``(20) Special rule for mutual or cooperative telephone 
     companies.--A mutual or cooperative telephone company which 
     for the taxable year satisfies the requirements of section 
     501(c)(12)(A) may elect to reduce its unrelated business 
     taxable income for such year, if any, by an amount that does 
     not exceed the qualified broadband expenditures which would 
     be taken into account under section 191 for such year by such 
     company if such company was not exempt from taxation. Any 
     amount which is allowed as a deduction under this paragraph 
     shall not be allowed as a deduction under section 191 and the 
     basis of any property to which this paragraph applies shall 
     be reduced under section 1016(a)(40).''.
       (c) Conforming Amendments.--
       (1) Section 263(a)(1) (relating to capital expenditures) is 
     amended by striking ``or'' at the end of subparagraph (J), by 
     striking the period at the end of subparagraph (K) and 
     inserting ``, or'', and by adding at the end the following 
     new subparagraph:
       ``(L) expenditures for which a deduction is allowed under 
     section 191.''.
       (2) Section 1016(a), as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (38), by striking 
     the period at the end of paragraph (39) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(40) to the extent provided in section 191(f)(2).''.
       (3) The table of sections for part VI of subchapter A of 
     chapter 1 is amended by inserting after the item relating to 
     section 190 the following new item:

``Sec. 191. Broadband expenditures.''.
       (d) Designation of Census Tracts.--
       (1) In general.--The Secretary of the Treasury shall, not 
     later than 90 days after the date of the enactment of this 
     Act, designate and publish those census tracts meeting the 
     criteria described in paragraphs (16), (22), and (23) of 
     section 191(e) of the Internal Revenue Code of 1986 (as added 
     by this section). In making such designations, the Secretary 
     of the Treasury shall consult with such other departments and 
     agencies as the Secretary determines appropriate.
       (2) Saturated market.--
       (A) In general.--For purposes of designating and publishing 
     those census tracts meeting the criteria described in 
     subsection (e)(19) of such section 191--
       (i) the Secretary of the Treasury shall prescribe not later 
     than 30 days after the date of the enactment of this Act the 
     form upon which any provider which takes the position that it 
     meets such criteria with respect to any census tract shall 
     submit a list of such census tracts (and any other 
     information required by the Secretary) not later than 60 days 
     after the date of the publication of such form, and
       (ii) the Secretary of the Treasury shall publish an 
     aggregate list of such census tracts and the applicable 
     providers not later than 30 days after the last date such 
     submissions are allowed under clause (i).
       (B) No subsequent lists required.--The Secretary of the 
     Treasury shall not be required to publish any list of census 
     tracts meeting such criteria subsequent to the list described 
     in subparagraph (A)(ii).
       (e) Other Regulatory Matters.--
       (1) Prohibition.--No Federal or State agency or 
     instrumentality shall adopt regulations or ratemaking 
     procedures that would have the effect of eliminating or 
     reducing any deduction or portion thereof allowed under 
     section 191 of the Internal Revenue Code of 1986 (as added by 
     this section) or otherwise subverting the purpose of this 
     section.
       (2) Treasury regulatory authority.--It is the intent of 
     Congress in providing the election to deduct qualified 
     broadband expenditures under section 191 of the Internal 
     Revenue Code of 1986 (as added by this section) to provide 
     incentives for the purchase, installation, and connection of 
     equipment and facilities offering expanded broadband access 
     to the Internet for users in certain low income and rural 
     areas of the United States, as well as to residential users 
     nationwide, in a manner that maintains competitive neutrality 
     among the various classes of providers of broadband services. 
     Accordingly, the Secretary of the Treasury shall prescribe 
     such regulations as may be necessary or appropriate to carry 
     out the purposes of section 191 of such Code, including--
       (A) regulations to determine how and when a taxpayer that 
     incurs qualified broadband expenditures satisfies the 
     requirements of section 191 of such Code to provide broadband 
     services, and
       (B) regulations describing the information, records, and 
     data taxpayers are required to provide the Secretary to 
     substantiate compliance with the requirements of section 191 
     of such Code.

     SEC. 12409. CREDIT FOR ENERGY EFFICIENT MOTORS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits), as amended 
     by this Act, is amended by inserting at the end the following 
     new section:

     ``SEC. 45Q. CREDIT FOR ENERGY EFFICIENT MOTORS.

       ``(a) In General.--For purposes of section 38, the energy 
     efficient motors credit determined under this section for any 
     taxable year is an amount equal to the lesser of --
       ``(1) $15 per horsepower generated by qualified energy 
     efficient motors the original use of which begins with the 
     taxpayer during such taxable year, or
       ``(2) $1,250,000.
       ``(b) Qualified Energy Efficient Motor.--The term 
     `qualified energy efficient motor' means a general- or 
     definite-purpose electric motor of 500 horsepower or less 
     which meets or exceeds the efficiency levels specified in 
     Tables 12-12 or 12-13 of the National Electrical 
     Manufacturers Association MG-1 (2006).
       ``(c) Special Rules.--
       ``(1) Basis reduction.--The basis of any property for which 
     a credit is allowable under subsection (a) shall be reduced 
     by the amount of such credit.
       ``(2) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit.
       ``(3) Property used outside united states, etc., certain 
     depreciable property not qualified.--No credit shall be 
     allowed under subsection (a) with respect to any property 
     referred to in section 50(b) or with respect to the portion 
     of the cost of any property taken into account under section 
     179.
       ``(d) Termination.--This section shall not apply to any 
     property placed in service after the date which is 3 years 
     after the date of the enactment of this section.''.
       (b) Credit Allowed as Part of General Business Credit.--
     Section 38(b), as amended by this Act, is amended by striking 
     ``plus'' at the end of paragraph (32), by striking the period 
     at the end of paragraph (33) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(34) the credit for energy efficient motors determined 
     under section 45Q(a).''.
       (c) Conforming Amendments.--
       (1) Section 1016(a), as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (39), by striking 
     the period at the end of paragraph (40) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(41) to the extent provided in section 45Q(c)(1).''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by adding at the end the following new item:

``Sec. 45Q. Credit for energy efficient motors.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

                     Subtitle E--Revenue Provisions

                PART I--MISCELLANEOUS REVENUE PROVISIONS

     SEC. 12501. LIMITATION ON FARMING LOSSES OF CERTAIN 
                   TAXPAYERS.

       (a) In General.--Section 461 (relating to general rule for 
     taxable year of deduction) is amended by adding at the end 
     the following new subsection:
       ``(j) Limitation on Farming Losses of Certain Taxpayers.--
       ``(1) In general.--If an applicable taxpayer has a farming 
     loss for the taxable year, such loss shall be allowed for 
     such taxable year only to the extent such loss does not 
     exceed $200,000.
       ``(2) Farming loss.--For purposes of this subsection, the 
     term `farming loss' means the excess of the deductions of the 
     taxpayer for the taxable year which are attributable to 
     farming businesses (as defined in section 263A(e)(4)) of such 
     taxpayer over income or gain of such taxpayer for the taxable 
     year which is attributable to such deductions.
       ``(3) Disallowed loss carried to next year.--Any loss which 
     is disallowed under paragraph (1) shall be treated as a 
     deduction of the taxpayer attributable to farming businesses 
     in the next taxable year.

[[Page 29377]]

       ``(4) Applicable taxpayer.--For purposes of this 
     subsection, the term `applicable taxpayer' means, with 
     respect to any taxable year, any individual, partnership, 
     estate, or trust which receives--
       ``(A) benefits under subtitle A or B of title I of the Food 
     and Energy Security Act of 2007 in such taxable year, or
       ``(B) Commodity Credit Corporation loans in such taxable 
     year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 12502. MODIFICATION TO OPTIONAL METHOD OF COMPUTING NET 
                   EARNINGS FROM SELF-EMPLOYMENT.

       (a) Amendments to the Internal Revenue Code of 1986.--
       (1) In general.--The matter following paragraph (17) of 
     section 1402(a) is amended--
       (A) by striking ``$2,400'' each place it appears and 
     inserting ``the upper limit'', and
       (B) by striking ``$1,600'' each place it appears and 
     inserting ``the lower limit''.
       (2) Definitions.--Section 1402 is amended by adding at the 
     end the following new subsection:
       ``(l) Upper and Lower Limits.--For purposes of subsection 
     (a)--
       ``(1) Lower limit.--The lower limit for any taxable year is 
     the sum of the amounts required under section 213(d) of the 
     Social Security Act for a quarter of coverage in effect with 
     respect to each calendar quarter ending with or within such 
     taxable year.
       ``(2) Upper limit.--The upper limit for any taxable year is 
     the amount equal to 150 percent of the lower limit for such 
     taxable year.''.
       (b) Amendments to the Social Security Act.--
       (1) In general.--The matter following paragraph (16) of 
     section 211(a) of the Social Security Act is amended--
       (A) by striking ``$2,400'' each place it appears and 
     inserting ``the upper limit'', and
       (B) by striking ``$1,600'' each place it appears and 
     inserting ``the lower limit''.
       (2) Definitions.--Section 211 of such Act is amended by 
     adding at the end the following new subsection:

                        ``Upper and Lower Limits

       ``(k) For purposes of subsection (a)--
       ``(1) The lower limit for any taxable year is the sum of 
     the amounts required under section 213(d) for a quarter of 
     coverage in effect with respect to each calendar quarter 
     ending with or within such taxable year.
       ``(2) The upper limit for any taxable year is the amount 
     equal to 150 percent of the lower limit for such taxable 
     year.''.
       (3) Conforming amendment.--Section 212 of such Act is 
     amended--
       (A) in subsection (b), by striking ``For'' and inserting 
     ``Except as provided in subsection (c), for''; and
       (B) by adding at the end the following new subsection:
       ``(c) For the purpose of determining average indexed 
     monthly earnings, average monthly wage, and quarters of 
     coverage in the case of any individual who elects the option 
     described in clause (ii) or (iv) in the matter following 
     section 211(a)(16) for any taxable year that does not begin 
     with or during a particular calendar year and end with or 
     during such year, the self-employment income of such 
     individual deemed to be derived during such taxable year 
     shall be allocated to the two calendar years, portions of 
     which are included within such taxable year, in the same 
     proportion to the total of such deemed self-employment income 
     as the sum of the amounts applicable under section 213(d) for 
     the calendar quarters ending with or within each such 
     calendar year bears to the lower limit for such taxable year 
     specified in section 211(k)(1).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 12503. INFORMATION REPORTING FOR COMMODITY CREDIT 
                   CORPORATION TRANSACTIONS.

       (a) In General.--Subpart A of part III of subchapter A of 
     chapter 61 (relating to information concerning persons 
     subject to special provisions) is amended by inserting after 
     section 6039I the following new section:

     ``SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO COMMODITY 
                   CREDIT CORPORATION TRANSACTIONS.

       ``(a) Requirement of Reporting.--The Commodity Credit 
     Corporation, through the Secretary of Agriculture, shall make 
     a return, according to the forms and regulations prescribed 
     by the Secretary of the Treasury, setting forth any market 
     gain realized by a taxpayer during the taxable year in 
     relation to the repayment of a loan issued by the Commodity 
     Credit Corporation, without regard to the manner in which 
     such loan was repaid.
       ``(b) Statements to Be Furnished to Persons With Respect to 
     Whom Information Is Required.--The Secretary of Agriculture 
     shall furnish to each person whose name is required to be set 
     forth in a return required under subsection (a) a written 
     statement showing the amount of market gain reported in such 
     return.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part III of subchapter A of chapter 61 is amended by 
     inserting after the item relating to section 6039I the 
     following new item:

``Sec. 6039J. Information reporting with respect to Commodity Credit 
              Corporation transactions.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to loans repaid on or after January 1, 2007.

     SEC. 12504. MODIFICATION OF SECTION 1031 TREATMENT FOR 
                   CERTAIN REAL ESTATE.

       (a) In General.--Section 1031 (relating to exchange of 
     property held for productive use or investment), as amended 
     by this Act, is amended by adding at the end the following 
     new subsection:
       ``(j) Special Rule for Agricultural Real Property.--
       ``(1) In general.--Unimproved agricultural real property 
     and improved real property are not property of a like kind.
       ``(2) Unimproved agricultural real property.--For purposes 
     of this subsection, the term `unimproved agricultural real 
     property' means real property--
       ``(A) which is unimproved;
       ``(B) which is used for farming purposes (within the 
     meaning of section 2032A(e)(5)); and
       ``(C) with respect to which a taxpayer receives, in the 
     taxable year in which an exchange of such property is made, 
     any benefits under subtitle A or B of title I of the Food and 
     Energy Security Act of 2007 or Commodity Credit Corporation 
     loans.
       ``(3) Exception.--Paragraph (1) shall not apply with 
     respect to any unimproved agricultural real property which, 
     not later than the date of the exchange, is permanently 
     retired from any program under which any payment, loan, or 
     benefit described in paragraph (2)(C) is made.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to exchanges completed after the date of the 
     enactment of this Act.

     SEC. 12505. MODIFICATION OF EFFECTIVE DATE OF LEASING 
                   PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF 
                   2004.

       (a) Leases to Foreign Entities.--Section 849(b) of the 
     American Jobs Creation Act of 2004 is amended by adding at 
     the end the following new paragraph:
       ``(5) Leases to foreign entities.--In the case of tax-
     exempt use property leased to a tax-exempt entity which is a 
     foreign person or entity, the amendments made by this part 
     shall apply to taxable years beginning after December 31, 
     2006, with respect to leases entered into on or before March 
     12, 2004.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the enactment of the 
     American Jobs Creation Act of 2004.

     SEC. 12506. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under subparagraph (B) of section 401(1) of 
     the Tax Increase Prevention and Reconciliation Act of 2005 in 
     effect on the date of the enactment of this Act is increased 
     by 7.00 percentage points.

     SEC. 12507. INELIGIBILITY OF COLLECTIBLES FOR NONTAXABLE LIKE 
                   KIND EXCHANGE TREATMENT.

       (a) In General.--Section 1031(a)(2) (relating to exception) 
     is amended by striking ``or'' at the end of subparagraph (E), 
     by striking the period at the end of subparagraph (F) and 
     inserting ``, or'', and by inserting after subparagraph (F) 
     the following new subparagraph:
       ``(G) collectibles (as defined in section 408(m)(2)).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to exchanges completed after the date of the 
     enactment of this Act.

     SEC. 12508. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES, 
                   AND OTHER AMOUNTS.

       (a) In General.--Subsection (f) of section 162 (relating to 
     trade or business expenses) is amended to read as follows:
       ``(f) Fines, Penalties, and Other Amounts.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     deduction otherwise allowable shall be allowed under this 
     chapter for any amount paid or incurred (whether by suit, 
     agreement, or otherwise) to, or at the direction of, a 
     government or entity described in paragraph (4) in relation 
     to--
       ``(A) the violation of any law, or
       ``(B) an investigation or inquiry into the potential 
     violation of any law which is initiated by such government or 
     entity.
       ``(2) Exception for amounts constituting restitution or 
     paid to come into compliance with law.--Paragraph (1) shall 
     not apply to any amount which--
       ``(A) the taxpayer establishes--
       ``(i) constitutes restitution (or remediation of property) 
     for damage or harm caused by, or which may be caused by, the 
     violation of any law or the potential violation of any law, 
     or
       ``(ii) is paid to come into compliance with any law which 
     was violated or involved in the investigation or inquiry, and
       ``(B) is identified as an amount described in clause (i) or 
     (ii) of subparagraph (A), as the case may be, in the court 
     order or settlement agreement, except that the requirement of 
     this subparagraph shall not apply in the case of any 
     settlement agreement which requires the taxpayer to pay or 
     incur an amount not greater than $1,000,000.

[[Page 29378]]

     A taxpayer shall not meet the requirements of subparagraph 
     (A) solely by reason of an identification under subparagraph 
     (B). This paragraph shall not apply to any amount paid or 
     incurred as reimbursement to the government or entity for the 
     costs of any investigation or litigation unless such amount 
     is paid or incurred for a cost or fee regularly charged for 
     any routine audit or other customary review performed by the 
     government or entity.
       ``(3) Exception for amounts paid or incurred as the result 
     of certain court orders.--Paragraph (1) shall not apply to 
     any amount paid or incurred by order of a court in a suit in 
     which no government or entity described in paragraph (4) is a 
     party.
       ``(4) Certain nongovernmental regulatory entities.--An 
     entity is described in this paragraph if it is--
       ``(A) a nongovernmental entity which exercises self-
     regulatory powers (including imposing sanctions) in 
     connection with a qualified board or exchange (as defined in 
     section 1256(g)(7)), or
       ``(B) to the extent provided in regulations, a 
     nongovernmental entity which exercises self-regulatory powers 
     (including imposing sanctions) as part of performing an 
     essential governmental function.
       ``(5) Exception for taxes due.--Paragraph (1) shall not 
     apply to any amount paid or incurred as taxes due.''.
       (b) Reporting of Deductible Amounts.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 is amended by inserting after section 6050V the 
     following new section:

     ``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES, 
                   PENALTIES, AND OTHER AMOUNTS.

       ``(a) Requirement of Reporting.--
       ``(1) In general.--The appropriate official of any 
     government or entity which is described in section 162(f)(4) 
     which is involved in a suit or agreement described in 
     paragraph (2) shall make a return in such form as determined 
     by the Secretary setting forth--
       ``(A) the amount required to be paid as a result of the 
     suit or agreement to which paragraph (1) of section 162(f) 
     applies,
       ``(B) any amount required to be paid as a result of the 
     suit or agreement which constitutes restitution or 
     remediation of property, and
       ``(C) any amount required to be paid as a result of the 
     suit or agreement for the purpose of coming into compliance 
     with any law which was violated or involved in the 
     investigation or inquiry.
       ``(2) Suit or agreement described.--
       ``(A) In general.--A suit or agreement is described in this 
     paragraph if--
       ``(i) it is--

       ``(I) a suit with respect to a violation of any law over 
     which the government or entity has authority and with respect 
     to which there has been a court order, or
       ``(II) an agreement which is entered into with respect to a 
     violation of any law over which the government or entity has 
     authority, or with respect to an investigation or inquiry by 
     the government or entity into the potential violation of any 
     law over which such government or entity has authority, and

       ``(ii) the aggregate amount involved in all court orders 
     and agreements with respect to the violation, investigation, 
     or inquiry is $600 or more.
       ``(B) Adjustment of reporting threshold.--The Secretary may 
     adjust the $600 amount in subparagraph (A)(ii) as necessary 
     in order to ensure the efficient administration of the 
     internal revenue laws.
       ``(3) Time of filing.--The return required under this 
     subsection shall be filed not later than--
       ``(A) 30 days after the date on which a court order is 
     issued with respect to the suit or the date the agreement is 
     entered into, as the case may be, or
       ``(B) the date specified by the Secretary.
       ``(b) Statements To Be Furnished to Individuals Involved in 
     the Settlement.--Every person required to make a return under 
     subsection (a) shall furnish to each person who is a party to 
     the suit or agreement a written statement showing--
       ``(1) the name of the government or entity, and
       ``(2) the information supplied to the Secretary under 
     subsection (a)(1).
     The written statement required under the preceding sentence 
     shall be furnished to the person at the same time the 
     government or entity provides the Secretary with the 
     information required under subsection (a).
       ``(c) Appropriate Official Defined.--For purposes of this 
     section, the term `appropriate official' means the officer or 
     employee having control of the suit, investigation, or 
     inquiry or the person appropriately designated for purposes 
     of this section.''.
       (2) Conforming amendment.--The table of sections for 
     subpart B of part III of subchapter A of chapter 61 is 
     amended by inserting after the item relating to section 6050V 
     the following new item:

``Sec. 6050W. Information with respect to certain fines, penalties, and 
              other amounts''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred on or after the date 
     of the enactment of this Act, except that such amendments 
     shall not apply to amounts paid or incurred under any binding 
     order or agreement entered into before such date. Such 
     exception shall not apply to an order or agreement requiring 
     court approval unless the approval was obtained before such 
     date.

     SEC. 12509. INCREASE IN INFORMATION RETURN PENALTIES.

       (a) Failure To File Correct Information Returns.--
       (1) In general.--Section 6721(a)(1) is amended--
       (A) by striking ``$50'' and inserting ``$250'', and
       (B) by striking ``$250,000'' and inserting ``$3,000,000''.
       (2) Reduction where correction in specified period.--
       (A) Correction within 30 days.--Section 6721(b)(1) is 
     amended--
       (i) by striking ``$15'' and inserting ``$50'',
       (ii) by striking ``$50'' and inserting ``$250'', and
       (iii) by striking ``$75,000'' and inserting ``$500,000''.
       (B) Failures corrected on or before august 1.--Section 
     6721(b)(2) is amended--
       (i) by striking ``$30'' and inserting ``$100'',
       (ii) by striking ``$50'' and inserting ``$250'', and
       (iii) by striking ``$150,000'' and inserting 
     ``$1,500,000''.
       (3) Lower limitation for persons with gross receipts of not 
     more than $5,000,000.--Section 6721(d)(1) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``$100,000'' and inserting ``$1,000,000'', 
     and
       (ii) by striking ``$250,000'' and inserting ``$3,000,000'',
       (B) in subparagraph (B)--
       (i) by striking ``$25,000'' and inserting ``$175,000'', and
       (ii) by striking ``$75,000'' and inserting ``$500,000'', 
     and
       (C) in subparagraph (C)--
       (i) by striking ``$50,000'' and inserting ``$500,000'', and
       (ii) by striking ``$150,000'' and inserting ``$1,500,000''.
       (4) Penalty in case of intentional disregard.--Section 
     6721(e) is amended--
       (A) by striking ``$100'' in paragraph (2) and inserting 
     ``$500'',
       (B) by striking ``$250,000'' in paragraph (3)(A) and 
     inserting ``$3,000,000''.
       (b) Failure to Furnish Correct Payee Statements.--
       (1) In general.--Section 6722(a) is amended--
       (A) by striking ``$50'' and inserting ``$250'', and
       (B) by striking ``$100,000'' and inserting ``$1,000,000''.
       (2) Penalty in case of intentional disregard.--Section 
     6722(c) is amended--
       (A) by striking ``$100'' in paragraph (1) and inserting 
     ``$500'', and
       (B) by striking ``$100,000'' in paragraph (2)(A) and 
     inserting ``$1,000,000''.
       (c) Failure To Comply With Other Information Reporting 
     Requirements.--Section 6723 is amended--
       (1) by striking ``$50'' and inserting ``$250'', and
       (2) by striking ``$100,000'' and inserting ``$1,000,000''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to information returns required to 
     be filed on or after January 1, 2008.

                  PART II--ECONOMIC SUBSTANCE DOCTRINE

     SEC. 12511. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (p) as subsection (q) and by inserting after 
     subsection (o) the following new subsection:
       ``(p) Clarification of Economic Substance Doctrine; Etc.--
       ``(1) General rules.--
       ``(A) In general.--In any case in which a court determines 
     that the economic substance doctrine is relevant for purposes 
     of this title to a transaction (or series of transactions), 
     such transaction (or series of transactions) shall have 
     economic substance only if the requirements of this paragraph 
     are met.
       ``(B) Definition of economic substance.--For purposes of 
     subparagraph (A)--
       ``(i) In general.--A transaction has economic substance 
     only if--

       ``(I) the transaction changes in a meaningful way (apart 
     from Federal tax effects) the taxpayer's economic position, 
     and
       ``(II) subject to clause (iii), the taxpayer has a 
     substantial purpose (other than a Federal tax purpose) for 
     entering into such transaction.

       ``(ii) Special rule where taxpayer relies on profit 
     potential.--A transaction shall not be treated as having 
     economic substance solely by reason of having a potential for 
     profit unless the present value of the reasonably expected 
     pre-Federal tax profit from the transaction is substantial in 
     relation to the present value of the expected net Federal tax 
     benefits that would be allowed if the transaction were 
     respected. In determining pre-Federal tax profit, there shall 
     be taken into account fees and other transaction expenses and 
     to the extent provided by the Secretary, foreign taxes.
       ``(iii) Special rules for determining whether non-federal 
     tax purpose.--For purposes of clause (i)(II)--

[[Page 29379]]

       ``(I) a purpose of achieving a financial accounting benefit 
     shall not be taken into account in determining whether a 
     transaction has a substantial purpose (other than a Federal 
     tax purpose) if the origin of such financial accounting 
     benefit is a reduction of Federal tax, and
       ``(II) the taxpayer shall not be treated as having a 
     substantial purpose (other than a Federal tax purpose) with 
     respect to a transaction if the only such purpose is the 
     reduction of non-Federal taxes and the transaction will 
     result in a reduction of Federal taxes substantially equal 
     to, or greater than, the reduction in non-Federal taxes 
     because of similarities between the laws imposing the taxes.

       ``(2) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Exception for personal transactions of individuals.--
     In the case of an individual, this subsection shall apply 
     only to transactions entered into in connection with a trade 
     or business or an activity engaged in for the production of 
     income.
       ``(3) Other provisions not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law or provision of this title, 
     and the requirements of this subsection shall be construed as 
     being in addition to any such other rule of law or provision 
     of this title.
       ``(4) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection. Such regulations may include 
     exemptions from the application of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 12512. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       (a) In General.--Subchapter A of chapter 68 is amended by 
     inserting after section 6662A the following new section:

     ``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       ``(a) Imposition of Penalty.--If a taxpayer has an 
     noneconomic substance transaction understatement for any 
     taxable year, there shall be added to the tax an amount equal 
     to 30 percent of the amount of such understatement.
       ``(b) Reduction of Penalty for Disclosed Transactions.--
     Subsection (a) shall be applied by substituting `20 percent' 
     for `30 percent' with respect to the portion of any 
     noneconomic substance transaction understatement with respect 
     to which the relevant facts affecting the tax treatment of 
     the item are adequately disclosed in the return or a 
     statement attached to the return.
       ``(c) Noneconomic Substance Transaction Understatement.--
     For purposes of this section--
       ``(1) In general.--The term `noneconomic substance 
     transaction understatement' means any amount which would be 
     an understatement under section 6662A(b)(1) if section 6662A 
     were applied by taking into account items attributable to 
     noneconomic substance transactions rather than items to which 
     section 6662A would apply without regard to this paragraph.
       ``(2) Noneconomic substance transaction.--The term 
     `noneconomic substance transaction' means any transaction if 
     there is a lack of economic substance (within the meaning of 
     section 7701(p)(1)(B)) for the transaction giving rise to the 
     claimed benefit.
       ``(d) Rules Applicable to Assertion, Compromise, and 
     Collection of Penalty.--
       ``(1) In general.--Only the Chief Counsel for the Internal 
     Revenue Service may assert a penalty imposed under this 
     section or may compromise all or any portion of such penalty. 
     The Chief Counsel may delegate the authority under this 
     paragraph only to an individual holding the position of chief 
     of a branch within the Office of the Chief Counsel for the 
     Internal Revenue Service.
       ``(2) Specific requirements.--
       ``(A) Assertion of penalty.--The Chief Counsel for the 
     Internal Revenue Service (or the Chief Counsel's delegate 
     under paragraph (1)) shall not assert a penalty imposed under 
     this section unless, before the assertion of the penalty, the 
     taxpayer is provided--
       ``(i) a notice of intent to assert the penalty, and
       ``(ii) an opportunity to provide to the Commissioner (or 
     the Chief Counsel's delegate under paragraph (1)) a written 
     response to the proposed penalty within a reasonable period 
     of time after such notice.
       ``(B) Compromise of penalty.--A compromise shall not result 
     in a reduction in the penalty imposed by this section in an 
     amount greater than the amount which bears the same ratio to 
     the amount of the penalty determined without regard to the 
     compromise as--
       ``(i) the reduction under the compromise in the noneconomic 
     substance transaction understatement to which the penalty 
     relates, bears to
       ``(ii) the amount of the noneconomic substance transaction 
     understatement determined without regard to the compromise.
       ``(3) Rules relating to relevancy requirement.--
       ``(A) Determination of relevance by chief counsel.--The 
     Chief Counsel for the Internal Revenue Service (or the Chief 
     Counsel's delegate under paragraph (1)) may assert, 
     compromise, or collect a penalty imposed by this section with 
     respect to a noneconomic substance transaction even if there 
     has not been a court determination that the economic 
     substance doctrine was relevant for purposes of this title to 
     the transaction if the Chief Counsel (or delegate) determines 
     that either was so relevant.
       ``(B) Final order of court.--If there is a final order of a 
     court that determines that the economic substance doctrine 
     was not relevant for purposes of this title to a transaction 
     (or series of transactions), any penalty imposed under this 
     section with respect to the transaction (or series of 
     transactions) shall be rescinded.
       ``(4) Applicable rules.--The rules of paragraphs (2) and 
     (3) of section 6707A(d) shall apply to a compromise under 
     paragraph (1).
       ``(e) Coordination With Other Penalties.--Except as 
     otherwise provided in this part, the penalty imposed by this 
     section shall be in addition to any other penalty imposed by 
     this title.
       ``(f) Cross References.--

    ``(1) For coordination of penalty with understatements under 
      section 6662 and other special rules, see section 6662A(e).
    ``(2) For reporting of penalty imposed under this section to the 
      Securities and Exchange Commission, see section 6707A(e).''.
       (b) Coordination With Other Understatements and 
     Penalties.--
       (1) The second sentence of section 6662(d)(2)(A) is amended 
     by inserting ``and without regard to items with respect to 
     which a penalty is imposed by section 6662B'' before the 
     period at the end.
       (2) Subsection (e) of section 6662A is amended--
       (A) in paragraph (1), by inserting ``and noneconomic 
     substance transaction understatements'' after ``reportable 
     transaction understatements'' both places it appears,
       (B) in paragraph (2)(A)--
       (i) by inserting ``6662B or'' before ``6663'' in the text, 
     and
       (ii) by striking ``penalty'' in the heading and inserting 
     ``and economic substance penalties'',
       (C) in paragraph (2)(B)--
       (i) by inserting ``and section 6662B'' after ``This 
     section'', and
       (ii) by striking ``penalty'' in the heading and inserting 
     ``and economic substance penalties'',
       (D) in paragraph (3), by inserting ``or noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'', and
       (E) by adding at the end the following new paragraph:
       ``(4) Noneconomic substance transaction understatement.--
     For purposes of this subsection, the term `noneconomic 
     substance transaction understatement' has the meaning given 
     such term by section 6662B(c).''.
       (3) Subsection (e) of section 6707A is amended--
       (A) by striking ``or'' at the end of subparagraph (B), and
       (B) by striking subparagraph (C) and inserting the 
     following new subparagraphs:
       ``(C) is required to pay a penalty under section 6662B with 
     respect to any noneconomic substance transaction, or
       ``(D) is required to pay a penalty under section 6662(h) 
     with respect to any transaction and would (but for section 
     6662A(e)(2)(B)) have been subject to penalty under section 
     6662A at a rate prescribed under section 6662A(c) or to 
     penalty under section 6662B,''.
       (c) Clerical Amendment.--The table of sections for part II 
     of subchapter A of chapter 68 is amended by inserting after 
     the item relating to section 6662A the following new item:

``Sec. 6662B. Penalty for understatements attributable to transactions 
              lacking economic substance, etc.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 12513. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS 
                   ATTRIBUTABLE TO NONECONOMIC SUBSTANCE 
                   TRANSACTIONS.

       (a) In General.--Section 163(m) (relating to interest on 
     unpaid taxes attributable to nondisclosed reportable 
     transactions) is amended--
       (1) by striking ``attributable'' and all that follows and 
     inserting the following: ``attributable to--

[[Page 29380]]

       ``(1) the portion of any reportable transaction 
     understatement (as defined in section 6662A(b)) with respect 
     to which the requirement of section 6664(d)(2)(A) is not met, 
     or
       ``(2) any noneconomic substance transaction understatement 
     (as defined in section 6662B(c)).'', and
       (2) by inserting ``and Noneconomic Substance Transactions'' 
     in the heading thereof after ``Transactions''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act in taxable years ending after such date.

               Subtitle F--Protection of Social Security

     SEC. 12601. PROTECTION OF SOCIAL SECURITY.

       To ensure that the assets of the trust funds established 
     under section 201 of the Social Security Act (42 U.S.C. 401) 
     are not reduced as a result of the enactment of this Act, the 
     Secretary of the Treasury shall transfer annually from the 
     general revenues of the Federal Government to those trust 
     funds the following amounts:
       (1) For fiscal year 2009, $86,000,000.
       (2) For fiscal year 2010, $90,000,000.
       (3) For fiscal year 2011, $88,000,000.
       (4) For fiscal year 2012, $88,000,000.
       (5) For fiscal year 2013, $5,000,000.
       (6) For fiscal year 2014, $5,000,000.
       (7) For fiscal year 2015, $4,000,000.
       (8) For each fiscal year after fiscal year 2015, 
     $2,000,000.
                                 ______
                                 
  SA 3501. Mr. BARRASSO (for himself, Mr. Craig, and Mr. Crapo) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2419, to provide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes; which was ordered to lie on 
the table; as follows:

       Section 7307 is amended by striking the matter preceding 
     paragraph (1) and inserting the following:
       (a) Competitive Grants.--The Competitive, Special, and 
     Facilities Research Grant Act (7 U.S.C. 450i) is amended in 
     subsection (b)--
       Section 7307 is amended by adding at the end the following:
       (b) National Research Support Project-7.--The Competitive, 
     Special, and Facilities Research Grant Act (7 U.S.C. 450i) is 
     amended by adding at the end the following:
       ``(l) National Research Support Project-7.--
       ``(1) Definitions.--In this subsection:
       ``(A) Project.--The term `project' means the project 
     established by the Secretary under paragraph (2).
       ``(B) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(2) Establishment.--The Secretary shall establish the 
     National Research Support Project-7--
       ``(A) to assist in the registration or reregistration of 
     minor use animal drugs;
       ``(B) to identify the animal drug needs for--
       ``(i) minor species; and
       ``(ii) minor uses in major species;
       ``(C) to generate and disseminate data to ensure the safe, 
     effective, and lawful use of drugs to be used primarily for 
     the therapy or reproductive management of minor animal 
     species; and
       ``(D) to facilitate the approval of drugs for minor 
     species, and minor uses in major species, by the Center for 
     Veterinary Medicine of the Food and Drug Administration.
       ``(3) Administration of project.--
       ``(A) National research support project-7.--The Secretary 
     shall carry out the project in accordance with each purpose 
     and principle of the National Research Support Project-7 
     carried out by the Administrator of the Cooperative State 
     Research, Education, and Extension Service as of the day 
     before the date of enactment of this subsection.
       ``(B) Consultation with other entities.--The Secretary 
     shall carry out the project in consultation with--
       ``(i) the Commissioner of Food and Drugs;
       ``(ii) State agricultural experiment stations;
       ``(iii) institutions of higher education;
       ``(iv) private entities; and
       ``(v) any other interested individual or entity.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection.''.

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