[House Report 110-627]
[From the U.S. Government Publishing Office]





110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-627

======================================================================



               FOOD, CONSERVATION, AND ENERGY ACT OF 2008

                               ----------                              

                           CONFERENCE REPORT

                              TO ACCOMPANY

                               H.R. 2419




                  May 13, 2008.--Ordered to be printed






               FOOD, CONSERVATION, AND ENERGY ACT OF 2008






110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-627
_______________________________________________________________________

                                     


               FOOD, CONSERVATION, AND ENERGY ACT OF 2008

                               __________

                           CONFERENCE REPORT

                              TO ACCOMPANY

                               H.R. 2419




                  May 13, 2008.--Ordered to be printed





110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-627

======================================================================



 
               FOOD, CONSERVATION, AND ENERGY ACT OF 2008

                                _______
                                

                  May 13, 2008.--Ordered to be printed

                                _______
                                

Mr. Peterson of Minnesota, from the committee of conference, submitted 
                             the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2419]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the Senate to the bill (H. R. 
2419), to provide for the continuation of agricultural programs 
through fiscal year 2012, and for other purposes, having met, 
after full and free conference, have agreed to recommend and do 
recommend to their respective Houses as follows:
    That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
    In lieu of the matter proposed to be inserted by the Senate 
amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Food, 
Conservation, and Energy Act of 2008''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:

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

                       TITLE I--COMMODITY PROGRAMS

Sec. 1001. Definitions.

        Subtitle A--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Base acres.
Sec. 1102. Payment yields.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Average crop revenue election program.
Sec. 1106. Producer agreement required as condition of provision of 
          payments.
Sec. 1107. Planting flexibility.
Sec. 1108. Special rule for long grain and medium grain rice.
Sec. 1109. Period of effectiveness.

   Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

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

                           Subtitle C--Peanuts

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

                            Subtitle D--Sugar

Sec. 1401. Sugar program.
Sec. 1402. United States membership in the International Sugar 
          Organization.
Sec. 1403. Flexible marketing allotments for sugar.
Sec. 1404. Storage facility loans.
Sec. 1405. Commodity Credit Corporation storage payments.

                            Subtitle E--Dairy

Sec. 1501. Dairy product price support program.
Sec. 1502. Dairy forward pricing program.
Sec. 1503. Dairy export incentive program.
Sec. 1504. Revision of Federal marketing order amendment procedures.
Sec. 1505. Dairy indemnity program.
Sec. 1506. Milk income loss contract program.
Sec. 1507. Dairy promotion and research program.
Sec. 1508. Report on Department of Agriculture reporting procedures for 
          nonfat dry milk.
Sec. 1509. Federal Milk Marketing Order Review Commission.
Sec. 1510. Mandatory reporting of dairy commodities.

                       Subtitle F--Administration

Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Availability of quality incentive payments for covered 
          oilseed producers.
Sec. 1606. Personal liability of producers for deficiencies.
Sec. 1607. Extension of existing administrative authority regarding 
          loans.
Sec. 1608. Assignment of payments.
Sec. 1609. Tracking of benefits.
Sec. 1610. Government publication of cotton price forecasts.
Sec. 1611. Prevention of deceased individuals receiving payments under 
          farm commodity programs.
Sec. 1612. Hard white wheat development program.
Sec. 1613. Durum wheat quality program.
Sec. 1614. Storage facility loans.
Sec. 1615. State, county, and area committees.
Sec. 1616. Prohibition on charging certain fees.
Sec. 1617. Signature authority.
Sec. 1618. Modernization of Farm Service Agency.
Sec. 1619. Information gathering.
Sec. 1620. Leasing of office space.
Sec. 1621. Geographically disadvantaged farmers and ranchers.
Sec. 1622. Implementation.
Sec. 1623. Repeals.

                         TITLE II--CONSERVATION

      Subtitle A--Definitions and Highly Erodible Land and Wetland 
                              Conservation

Sec. 2001. Definitions relating to conservation title of Food Security 
          Act of 1985.
Sec. 2002. Review of good faith determinations related to highly 
          erodible land conservation.
Sec. 2003. Review of good faith determinations related to wetland 
          conservation.

                Subtitle B--Conservation Reserve Program

Sec. 2101. Extension of conservation reserve program.
Sec. 2102. Land eligible for enrollment in conservation reserve.
Sec. 2103. Maximum enrollment of acreage in conservation reserve.
Sec. 2104. Designation of conservation priority areas.
Sec. 2105. Treatment of multi-year grasses and legumes.
Sec. 2106. Revised pilot program for enrollment of wetland and buffer 
          acreage in conservation reserve.
Sec. 2107. Additional duty of participants under conservation reserve 
          contracts.
Sec. 2108. Managed haying, grazing, or other commercial use of forage on 
          enrolled land and installation of wind turbines.
Sec. 2109. Cost sharing payments relating to trees, windbreaks, 
          shelterbelts, and wildlife corridors.
Sec. 2110. Evaluation and acceptance of contract offers, annual rental 
          payments, and payment limitations.
Sec. 2111. Conservation reserve program transition incentives for 
          beginning farmers or ranchers and socially disadvantaged 
          farmers or ranchers.

                  Subtitle C--Wetlands Reserve Program

Sec. 2201. Establishment and purpose of wetlands reserve program.
Sec. 2202. Maximum enrollment and enrollment methods.
Sec. 2203. Duration of wetlands reserve program and lands eligible for 
          enrollment.
Sec. 2204. Terms of wetlands reserve program easements.
Sec. 2205. Compensation for easements under wetlands reserve program.
Sec. 2206. Wetlands reserve enhancement program and reserved rights 
          pilot program.
Sec. 2207. Duties of Secretary of Agriculture under wetlands reserve 
          program.
Sec. 2208. Payment limitations under wetlands reserve contracts and 
          agreements.
Sec. 2209. Repeal of payment limitations exception for State agreements 
          for wetlands reserve enhancement.
Sec. 2210. Report on implications of long-term nature of conservation 
          easements.

              Subtitle D--Conservation Stewardship Program

Sec. 2301. Conservation stewardship program.

          Subtitle E--Farmland Protection and Grassland Reserve

Sec. 2401. Farmland protection program.
Sec. 2402. Farm viability program.
Sec. 2403. Grassland reserve program.

          Subtitle F--Environmental Quality Incentives Program

Sec. 2501. Purposes of environmental quality incentives program.
Sec. 2502. Definitions.
Sec. 2503. Establishment and administration of environmental quality 
          incentives program.
Sec. 2504. Evaluation of applications.
Sec. 2505. Duties of producers under environmental quality incentives 
          program.
Sec. 2506. Environmental quality incentives program plan.
Sec. 2507. Duties of the Secretary.
Sec. 2508. Limitation on environmental quality incentives program 
          payments.
Sec. 2509. Conservation innovation grants and payments.
Sec. 2510. Agricultural water enhancement program.

Subtitle G--Other Conservation Programs of the Food Security Act of 1985

Sec. 2601. Conservation of private grazing land.
Sec. 2602. Wildlife habitat incentive program.
Sec. 2603. Grassroots source water protection program.
Sec. 2604. Great Lakes Basin Program for soil erosion and sediment 
          control.
Sec. 2605. Chesapeake Bay watershed program.
Sec. 2606. Voluntary public access and habitat incentive program.

     Subtitle H--Funding and Administration of Conservation Programs

Sec. 2701. Funding of conservation programs under Food Security Act of 
          1985.
Sec. 2702. Authority to accept contributions to support conservation 
          programs.
Sec. 2703. Regional equity and flexibility.
Sec. 2704. Assistance to certain farmers and ranchers to improve their 
          access to conservation programs.
Sec. 2705. Report regarding enrollments and assistance under 
          conservation programs.
Sec. 2706. Delivery of conservation technical assistance.
Sec. 2707. Cooperative conservation partnership initiative.
Sec. 2708. Administrative requirements for conservation programs.
Sec. 2709. Environmental services markets.
Sec. 2710. Agriculture conservation experienced services program.
Sec. 2711. Establishment of State technical committees and their 
          responsibilities.

           Subtitle I--Conservation Programs Under Other Laws

Sec. 2801. Agricultural management assistance program.
Sec. 2802. Technical assistance under Soil Conservation and Domestic 
          Allotment Act.
Sec. 2803. Small watershed rehabilitation program.
Sec. 2804. Amendments to Soil and Water Resources Conservation Act of 
          1977.
Sec. 2805. Resource Conservation and Development Program.
Sec. 2806. Use of funds in Basin Funds for salinity control activities 
          upstream of Imperial Dam.
Sec. 2807. Desert terminal lakes.

            Subtitle J--Miscellaneous Conservation Provisions

Sec. 2901. High Plains water study.
Sec. 2902. Naming of National Plant Materials Center at Beltsville, 
          Maryland, in honor of Norman A. Berg.
Sec. 2903. Transition.
Sec. 2904. Regulations.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

Sec. 3001. Short title.
Sec. 3002. United States policy.
Sec. 3003. Food aid to developing countries.
Sec. 3004. Trade and development assistance.
Sec. 3005. Agreements regarding eligible countries and private entities.
Sec. 3006. Use of local currency payments.
Sec. 3007. General authority.
Sec. 3008. Provision of agricultural commodities.
Sec. 3009. Generation and use of currencies by private voluntary 
          organizations and cooperatives.
Sec. 3010. Levels of assistance.
Sec. 3011. Food Aid Consultative Group.
Sec. 3012. Administration.
Sec. 3013. Assistance for stockpiling and rapid transportation, 
          delivery, and distribution of shelf-stable prepackaged foods.
Sec. 3014. General authorities and requirements.
Sec. 3015. Definitions.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Consolidation and modification of annual reports regarding 
          agricultural trade issues.
Sec. 3019. Expiration of assistance.
Sec. 3020. Authorization of appropriations.
Sec. 3021. Minimum level of nonemergency food assistance.
Sec. 3022. Coordination of foreign assistance programs.
Sec. 3023. Micronutrient fortification programs.
Sec. 3024. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

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

Sec. 3101. Export credit guarantee program.
Sec. 3102. Market access program.
Sec. 3103. Export enhancement program.
Sec. 3104. Foreign market development cooperator program.
Sec. 3105. Food for Progress Act of 1985.
Sec. 3106. McGovern-Dole International Food for Education and Child 
          Nutrition Program.

                        Subtitle C--Miscellaneous

Sec. 3201. Bill Emerson Humanitarian Trust.
Sec. 3202. Global Crop Diversity Trust.
Sec. 3203. Technical assistance for specialty crops.
Sec. 3204. Emerging markets and facility guarantee loan program.
Sec. 3205. Consultative Group to Eliminate the Use of Child Labor and 
          Forced Labor in Imported Agricultural Products.
Sec. 3206. Local and regional food aid procurement projects.

                       Subtitle D--Softwood Lumber

Sec. 3301. Softwood lumber.

                           TITLE IV--NUTRITION

                     Subtitle A--Food Stamp Program

             PART I--Renaming of Food Stamp Act and Program

Sec. 4001. Renaming of Food Stamp Act and program.
Sec. 4002. Conforming amendments.

                      PART II--Benefit Improvements

Sec. 4101. Exclusion of certain military payments from income.
Sec. 4102. Strengthening the food purchasing power of low-income 
          Americans.
Sec. 4103. Supporting working families with child care expenses.
Sec. 4104. Asset indexation, education, and retirement accounts.
Sec. 4105. Facilitating simplified reporting.
Sec. 4106. Transitional benefits option.
Sec. 4107. Increasing the minimum benefit.
Sec. 4108. Employment, training, and job retention.

                      PART III--Program Operations

Sec. 4111. Nutrition education.
Sec. 4112. Technical clarification regarding eligibility.
Sec. 4113. Clarification of split issuance.
Sec. 4114. Accrual of benefits.
Sec. 4115. Issuance and use of program benefits.
Sec. 4116. Review of major changes in program design.
Sec. 4117. Civil rights compliance.
Sec. 4118. Codification of access rules.
Sec. 4119. State option for telephonic signature.
Sec. 4120. Privacy protections.
Sec. 4121. Preservation of access and payment accuracy.
Sec. 4122. Funding of employment and training programs.

                       PART IV--Program Integrity

Sec. 4131. Eligibility disqualification.
Sec. 4132. Civil penalties and disqualification of retail food stores 
          and wholesale food concerns.
Sec. 4133. Major systems failures.

                          PART V--Miscellaneous

Sec. 4141. Pilot projects to evaluate health and nutrition promotion in 
          the supplemental nutrition assistance program.
Sec. 4142. Study on comparable access to supplemental nutrition 
          assistance for Puerto Rico.

                 Subtitle B--Food Distribution Programs

                PART I--Emergency Food Assistance Program

Sec. 4201. Emergency food assistance.
Sec. 4202. Emergency food program infrastructure grants.

        PART II--Food Distribution Program on Indian Reservations

Sec. 4211. Assessing the nutritional value of the FDPIR food package.

              PART III--Commodity Supplemental Food Program

Sec. 4221. Commodity supplemental food program.

            PART IV--Senior Farmers' Market Nutrition Program

Sec. 4231. Senior farmers' market nutrition program.

            Subtitle C--Child Nutrition and Related Programs

Sec. 4301. State performance on enrolling children receiving program 
          benefits for free school meals.
Sec. 4302. Purchases of locally produced foods.
Sec. 4303. Healthy food education and program replicability.
Sec. 4304. Fresh fruit and vegetable program.
Sec. 4305. Whole grain products.
Sec. 4306. Buy American requirements.
Sec. 4307. Survey of foods purchased by school food authorities.

                        Subtitle D--Miscellaneous

Sec. 4401. Bill Emerson National Hunger Fellows and Mickey Leland 
          International Hunger Fellows.
Sec. 4402. Assistance for community food projects.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404. Section 32 funds for purchase of fruits, vegetables, and nuts 
          to support domestic nutrition assistance programs.
Sec. 4405. Hunger-free communities.
Sec. 4406. Reauthorization of Federal food assistance programs.
Sec. 4407. Effective and implementation dates.

                             TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Direct loans.
Sec. 5002. Conservation loan and loan guarantee program.
Sec. 5003. Limitations on amount of farm ownership loans.
Sec. 5004. Down payment loan program.
Sec. 5005. Beginning farmer or rancher and socially disadvantaged farmer 
          or rancher contract land sales program.

                       Subtitle B--Operating Loans

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

                       Subtitle C--Emergency Loans

Sec. 5201. Eligibility of equine farmers and ranchers for emergency 
          loans.

                  Subtitle D--Administrative Provisions

Sec. 5301. Beginning farmer and rancher individual development accounts 
          pilot program.
Sec. 5302. Inventory sales preferences; loan fund set-asides.
Sec. 5303. Loan authorization levels.
Sec. 5304. Transition to private commercial or other sources of credit.
Sec. 5305. Extension of the right of first refusal to reacquire 
          homestead property to immediate family members of borrower-
          owner.
Sec. 5306. Rural development and farm loan program activities.

                         Subtitle E--Farm Credit

Sec. 5401. Farm Credit System Insurance Corporation.
Sec. 5402. Technical correction.
Sec. 5403. Bank for cooperatives voting stock.
Sec. 5404. Premiums.
Sec. 5405. Certification of premiums.
Sec. 5406. Rural utility loans.
Sec. 5407. Equalization of loan-making powers of certain district 
          associations.

                        Subtitle F--Miscellaneous

Sec. 5501. Loans to purchasers of highly fractioned land.

                       TITLE VI--RURAL DEVELOPMENT

         Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. SEARCH grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facility grants, loans, and loan guarantees.
Sec. 6005. Community facility grants to advance broadband.
Sec. 6006. Rural water and wastewater circuit rider program.
Sec. 6007. Tribal College and University essential community facilities.
Sec. 6008. Emergency and imminent community water assistance grant 
          program.
Sec. 6009. Water systems for rural and native villages in Alaska.
Sec. 6010. Grants to nonprofit organizations to finance the 
          construction, refurbishing, and servicing of individually-
          owned household water well systems in rural areas for 
          individuals with low or moderate incomes.
Sec. 6011. Interest rates for water and waste disposal facilities loans.
Sec. 6012. Cooperative equity security guarantee.
Sec. 6013. Rural cooperative development grants.
Sec. 6014. Grants to broadcasting systems.
Sec. 6015. Locally or regionally produced agricultural food products.
Sec. 6016. Appropriate technology transfer for rural areas.
Sec. 6017. Rural economic area partnership zones.
Sec. 6018. Definitions.
Sec. 6019. National rural development partnership.
Sec. 6020. Historic barn preservation.
Sec. 6021. Grants for NOAA weather radio transmitters.
Sec. 6022. Rural microentrepreneur assistance program.
Sec. 6023. Grants for expansion of employment opportunities for 
          individuals with disabilities in rural areas.
Sec. 6024. Health care services.
Sec. 6025. Delta Regional Authority.
Sec. 6026. Northern Great Plains Regional Authority.
Sec. 6027. Rural Business Investment Program.
Sec. 6028. Rural Collaborative Investment Program.
Sec. 6029. Funding of pending rural development loan and grant 
          applications.

              Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Energy efficiency programs.
Sec. 6102. Reinstatement of Rural Utility Services direct lending.
Sec. 6103. Deferment of payments to allow loans for improved energy 
          efficiency and demand reduction and for energy efficiency and 
          use audits.
Sec. 6104. Rural electrification assistance.
Sec. 6105. Substantially underserved trust areas.
Sec. 6106. Guarantees for bonds and notes issued for electrification or 
          telephone purposes.
Sec. 6107. Expansion of 911 access.
Sec. 6108. Electric loans for renewable energy.
Sec. 6109. Bonding requirements.
Sec. 6110. Access to broadband telecommunications services in rural 
          areas.
Sec. 6111. National Center for Rural Telecommunications Assessment.
Sec. 6112. Comprehensive rural broadband strategy.
Sec. 6113. Study on rural electric power generation.

                        Subtitle C--Miscellaneous

Sec. 6201. Distance learning and telemedicine.
Sec. 6202. Value-added agricultural market development program grants.
Sec. 6203. Agriculture innovation center demonstration program.
Sec. 6204. Rural firefighters and emergency medical service assistance 
          program.
Sec. 6205. Insurance of loans for housing and related facilities for 
          domestic farm labor.
Sec. 6206. Study of rural transportation issues.

                 Subtitle D--Housing Assistance Council

Sec. 6301. Short title.
Sec. 6302. Assistance to Housing Assistance Council.
Sec. 6303. Audits and reports.
Sec. 6304. Persons not lawfully present in the United States.
Sec. 6305. Limitation on use of authorized amounts.

                 TITLE VII--RESEARCH AND RELATED MATTERS

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

Sec. 7101. Definitions.
Sec. 7102. National Agricultural Research, Extension, Education, and 
          Economics Advisory Board.
Sec. 7103. Specialty crop committee report.
Sec. 7104. Renewable energy committee.
Sec. 7105. Veterinary medicine loan repayment.
Sec. 7106. Eligibility of University of the District of Columbia for 
          grants and fellowships for food and agricultural sciences 
          education.
Sec. 7107. Grants to 1890 schools to expand extension capacity.
Sec. 7108. Expansion of food and agricultural sciences awards.
Sec. 7109. Grants and fellowships for food and agricultural sciences 
          education.
Sec. 7110. Grants for research on production and marketing of alcohols 
          and industrial hydrocarbons from agricultural commodities and 
          forest products.
Sec. 7111. Policy research centers.
Sec. 7112. Education grants to Alaska Native-serving institutions and 
          Native Hawaiian-serving institutions.
Sec. 7113. Emphasis of human nutrition initiative.
Sec. 7114. Human nutrition intervention and health promotion research 
          program.
Sec. 7115. Pilot research program to combine medical and agricultural 
          research.
Sec. 7116. Nutrition education program.
Sec. 7117. Continuing animal health and disease research programs.
Sec. 7118. Cooperation among eligible institutions.
Sec. 7119. Appropriations for research on national or regional problems.
Sec. 7120. Animal health and disease research program.
Sec. 7121. Authorization level for extension at 1890 land-grant 
          colleges.
Sec. 7122. Authorization level for agricultural research at 1890 land-
          grant colleges.
Sec. 7123. Grants to upgrade agricultural and food sciences facilities 
          at 1890 land-grant colleges, including Tuskegee University.
Sec. 7124. Grants to upgrade agriculture and food sciences facilities at 
          the District of Columbia land-grant university.
Sec. 7125. Grants to upgrade agriculture and food sciences facilities 
          and equipment at insular area land-grant institutions.
Sec. 7126. National research and training virtual centers.
Sec. 7127. Matching funds requirement for research and extension 
          activities of 1890 institutions.
Sec. 7128. Hispanic-serving institutions.
Sec. 7129. Hispanic-serving agricultural colleges and universities.
Sec. 7130. International agricultural research, extension, and 
          education.
Sec. 7131. Competitive grants for international agricultural science and 
          education programs.
Sec. 7132. Administration.
Sec. 7133. Research equipment grants.
Sec. 7134. University research.
Sec. 7135. Extension Service.
Sec. 7136. Supplemental and alternative crops.
Sec. 7137. New Era Rural Technology Program.
Sec. 7138. Capacity building grants for NLGCA Institutions.
Sec. 7139. Borlaug international agricultural science and technology 
          fellowship program.
Sec. 7140. Aquaculture assistance programs.
Sec. 7141. Rangeland research grants.
Sec. 7142. Special authorization for biosecurity planning and response.
Sec. 7143. Resident instruction and distance education grants program 
          for insular area institutions of higher education.

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

Sec. 7201. National genetics resources program.
Sec. 7202. National Agricultural Weather Information System.
Sec. 7203. Partnerships.
Sec. 7204. High-priority research and extension areas.
Sec. 7205. Nutrient management research and extension initiative.
Sec. 7206. Organic Agriculture Research and Extension Initiative.
Sec. 7207. Agricultural bioenergy feedstock and energy efficiency 
          research and extension initiative.
Sec. 7208. Farm business management and benchmarking.
Sec. 7209. Agricultural telecommunications program.
Sec. 7210. Assistive technology program for farmers with disabilities.
Sec. 7211. Research on honey bee diseases.
Sec. 7212. National Rural Information Center Clearinghouse.

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

Sec. 7301. Peer and merit review.
Sec. 7302. Partnerships for high-value agricultural product quality 
          research.
Sec. 7303. Precision agriculture.
Sec. 7304. Biobased products.
Sec. 7305. Thomas Jefferson Initiative for Crop Diversification.
Sec. 7306. Integrated research, education, and extension competitive 
          grants program.
Sec. 7307. Fusarium graminearum grants.
Sec. 7308. Bovine Johne's disease control program.
Sec. 7309. Grants for youth organizations.
Sec. 7310. Agricultural biotechnology research and development for 
          developing countries.
Sec. 7311. Specialty crop research initiative.
Sec. 7312. Food animal residue avoidance database program.
Sec. 7313. Office of pest management policy.

                         Subtitle D--Other Laws

Sec. 7401. Critical Agricultural Materials Act.
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7403. Smith-Lever Act.
Sec. 7404. Hatch Act of 1887.
Sec. 7405. Agricultural Experiment Station Research Facilities Act.
Sec. 7406. Agriculture and food research initiative.
Sec. 7407. Agricultural Risk Protection Act of 2000.
Sec. 7408. Exchange or sale authority.
Sec. 7409. Enhanced use lease authority pilot program.
Sec. 7410. Beginning farmer and rancher development program.
Sec. 7411. Public education regarding use of biotechnology in producing 
          food for human consumption.
Sec. 7412. McIntire-Stennis Cooperative Forestry Act.
Sec. 7413. Renewable Resources Extension Act of 1978.
Sec. 7414. National Aquaculture Act of 1980.
Sec. 7415. Construction of Chinese Garden at the National Arboretum.
Sec. 7416. National Agricultural Research, Extension, and Teaching 
          Policy Act Amendments of 1985.
Sec. 7417. Eligibility of University of the District of Columbia for 
          certain land-grant university assistance.

                        Subtitle E--Miscellaneous

                       PART I--General Provisions

Sec. 7501. Definitions.
Sec. 7502. Grazinglands research laboratory.
Sec. 7503. Fort Reno Science Park Research Facility.
Sec. 7504. Roadmap.
Sec. 7505. Review of plan of work requirements.
Sec. 7506. Budget submission and funding.

               PART II--Research, Education, and Economics

Sec. 7511. Research, education, and economics.

                PART III--New Grant and Research Programs

Sec. 7521. Research and education grants for the study of antibiotic-
          resistant bacteria.
Sec. 7522. Farm and ranch stress assistance network.
Sec. 7523. Seed distribution.
Sec. 7524. Live virus foot and mouth disease research.
Sec. 7525. Natural products research program.
Sec. 7526. Sun grant program.
Sec. 7527. Study and report on food deserts.
Sec. 7528. Demonstration project authority for temporary positions.
Sec. 7529. Agricultural and rural transportation research and education.

                          TITLE VIII--FORESTRY

  Subtitle A--Amendments to Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Long-term State-wide assessments and strategies for forest 
          resources.
Sec. 8003. Community forest and open space conservation program.
Sec. 8004. Assistance to the Federated States of Micronesia, the 
          Republic of the Marshall Islands, and the Republic of Palau.
Sec. 8005. Changes to Forest Resource Coordinating Committee.
Sec. 8006. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8007. Competition in programs under Cooperative Forestry Assistance 
          Act of 1978.
Sec. 8008. Competitive allocation of funds for cooperative forest 
          innovation partnership projects.

         Subtitle B--Cultural and Heritage Cooperation Authority

Sec. 8101. Purposes.
Sec. 8102. Definitions.
Sec. 8103. Reburial of human remains and cultural items.
Sec. 8104. Temporary closure for traditional and cultural purposes.
Sec. 8105. Forest products for traditional and cultural purposes.
Sec. 8106. Prohibition on disclosure.
Sec. 8107. Severability and savings provisions.

          Subtitle C--Amendments to Other Forestry-Related Laws

Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Emergency forest restoration program.
Sec. 8204. Prevention of illegal logging practices.
Sec. 8205. Healthy forests reserve program.

     Subtitle D--Boundary Adjustments and Land Conveyance Provisions

Sec. 8301. Green Mountain National Forest boundary adjustment.
Sec. 8302. Land conveyances, Chihuahuan Desert Nature Park, New Mexico, 
          and George Washington National Forest, Virginia.
Sec. 8303. Sale and exchange of National Forest System land, Vermont.

                  Subtitle E--Miscellaneous Provisions

Sec. 8401. Qualifying timber contract options.
Sec. 8402. Hispanic-serving institution agricultural land national 
          resources leadership program.

                            TITLE IX--ENERGY

Sec. 9001. Energy.
Sec. 9002. Biofuels infrastructure study.
Sec. 9003. Renewable fertilizer study.

              TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

Sec. 10001. Definitions.

           Subtitle A--Horticulture Marketing and Information

Sec. 10101. Independent evaluation of Department of Agriculture 
          commodity purchase process.
Sec. 10102. Quality requirements for clementines.
Sec. 10103. Inclusion of specialty crops in census of agriculture.
Sec. 10104. Mushroom promotion, research, and consumer information.
Sec. 10105. Food safety education initiatives.
Sec. 10106. Farmers' market promotion program.
Sec. 10107. Specialty crops market news allocation.
Sec. 10108. Expedited marketing order for Hass avocados for grades and 
          standards and other purposes.
Sec. 10109. Specialty crop block grants.

                 Subtitle B--Pest and Disease Management

Sec. 10201. Plant pest and disease management and disaster prevention.
Sec. 10202. National Clean Plant Network.
Sec. 10203. Plant protection.
Sec. 10204. Regulations to improve management and oversight of certain 
          regulated articles.
Sec. 10205. Pest and Disease Revolving Loan Fund.
Sec. 10206. Cooperative agreements relating to plant pest and disease 
          prevention activities.

                     Subtitle C--Organic Agriculture

Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data initiatives.
Sec. 10303. National Organic Program.

                        Subtitle D--Miscellaneous

Sec. 10401. National Honey Board.
Sec. 10402. Identification of honey.
Sec. 10403. Grant program to improve movement of specialty crops.
Sec. 10404. Market loss assistance for asparagus producers.

                           TITLE XI--LIVESTOCK

Sec. 11001. Livestock mandatory reporting.
Sec. 11002. Country of origin labeling.
Sec. 11003. Agricultural Fair Practices Act of 1967 definitions.
Sec. 11004. Annual report.
Sec. 11005. Production contracts.
Sec. 11006. Regulations.
Sec. 11007. Sense of Congress regarding pseudorabies eradication 
          program.
Sec. 11008. Sense of Congress regarding the cattle fever tick 
          eradication program.
Sec. 11009. National Sheep Industry Improvement Center.
Sec. 11010. Trichinae certification program.
Sec. 11011. Low pathogenic diseases.
Sec. 11012. Animal protection.
Sec. 11013. National Aquatic Animal Health Plan.
Sec. 11014. Study on bioenergy operations.
Sec. 11015. Interstate shipment of meat and poultry inspected by Federal 
          and State agencies for certain small establishments.
Sec. 11016. Inspection and grading.
Sec. 11017. Food safety improvement.

       TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS

           Subtitle A--Crop Insurance and Disaster Assistance

Sec. 12001. Definition of organic crop.
Sec. 12002. General powers.
Sec. 12003. Reduction in loss ratio.
Sec. 12004. Premiums adjustments.
Sec. 12005. Controlled business insurance.
Sec. 12006. Administrative fee.
Sec. 12007. Time for payment.
Sec. 12008. Catastrophic coverage reimbursement rate.
Sec. 12009. Grain sorghum price election.
Sec. 12010. Premium reduction authority.
Sec. 12011. Enterprise and whole farm units.
Sec. 12012. Payment of portion of premium for area revenue plans.
Sec. 12013. Denial of claims.
Sec. 12014. Settlement of crop insurance claims on farm-stored 
          production.
Sec. 12015. Time for reimbursement.
Sec. 12016. Reimbursement rate.
Sec. 12017. Renegotiation of Standard Reinsurance Agreement.
Sec. 12018. Change in due date for Corporation payments for underwriting 
          gains.
Sec. 12019. Malting barley.
Sec. 12020. Crop production on native sod.
Sec. 12021. Information management.
Sec. 12022. Research and development.
Sec. 12023. Contracts for additional policies and studies.
Sec. 12024. Funding from insurance fund.
Sec. 12025. Pilot programs.
Sec. 12026. Risk management education for beginning farmers or ranchers.
Sec. 12027. Coverage for aquaculture under noninsured crop assistance 
          program.
Sec. 12028. Increase in service fees for noninsured crop assistance 
          program.
Sec. 12029. Determination of certain sweet potato production.
Sec. 12030. Declining yield report.
Sec. 12031. Definition of basic unit.
Sec. 12032. Crop insurance mediation.
Sec. 12033. Supplemental agricultural disaster assistance.
Sec. 12034. Fisheries disaster assistance.

            Subtitle B--Small Business Disaster Loan Program

Sec. 12051. Short title.
Sec. 12052. Definitions.

                 PART I--Disaster Planning and Response

Sec. 12061. Economic injury disaster loans to nonprofits.
Sec. 12062. Coordination of disaster assistance programs with FEMA.
Sec. 12063. Public awareness of disaster declaration and application 
          periods.
Sec. 12064. Consistency between administration regulations and standard 
          operating procedures.
Sec. 12065. Increasing collateral requirements.
Sec. 12066. Processing disaster loans.
Sec. 12067. Information tracking and follow-up system.
Sec. 12068. Increased deferment period.
Sec. 12069. Disaster processing redundancy.
Sec. 12070. Net earnings clauses prohibited.
Sec. 12071. Economic injury disaster loans in cases of ice storms and 
          blizzards.
Sec. 12072. Development and implementation of major disaster response 
          plan.
Sec. 12073. Disaster planning responsibilities.
Sec. 12074. Assignment of employees of the office of disaster assistance 
          and disaster cadre.
Sec. 12075. Comprehensive disaster response plan.
Sec. 12076. Plans to secure sufficient office space.
Sec. 12077. Applicants that have become a major source of employment due 
          to changed economic circumstances.
Sec. 12078. Disaster loan amounts.
Sec. 12079. Small business bonding threshold.

                        PART II--Disaster Lending

Sec. 12081. Eligibility for additional disaster assistance.
Sec. 12082. Additional economic injury disaster loan assistance.
Sec. 12083. Private disaster loans.
Sec. 12084. Immediate Disaster Assistance program.
Sec. 12085. Expedited disaster assistance loan program.
Sec. 12086. Gulf Coast Disaster Loan Refinancing Program.

                         PART III--Miscellaneous

Sec. 12091. Reports on disaster assistance.

                      TITLE XIII--COMMODITY FUTURES

Sec. 13001. Short title.

                     Subtitle A--General Provisions

Sec. 13101. Commission authority over agreements, contracts or 
          transactions in foreign currency.
Sec. 13102. Anti-fraud authority over principal-to-principal 
          transactions.
Sec. 13103. Criminal and civil penalties.
Sec. 13104. Authorization of appropriations.
Sec. 13105. Technical and conforming amendments.
Sec. 13106. Portfolio margining and security index issues.

 Subtitle B--Significant Price Discovery Contracts on Exempt Commercial 
                                 Markets

Sec. 13201. Significant price discovery contracts.
Sec. 13202. Large trader reporting.
Sec. 13203. Conforming amendments.
Sec. 13204. Effective date.

                        TITLE XIV--MISCELLANEOUS

   Subtitle A--Socially Disadvantaged Producers and Limited Resource 
                                Producers

Sec. 14001. Improved program delivery by Department of Agriculture on 
          Indian reservations.
Sec. 14002. Foreclosure.
Sec. 14003. Receipt for service or denial of service from certain 
          Department of Agriculture agencies.
Sec. 14004. Outreach and technical assistance for socially disadvantaged 
          farmers or ranchers.
Sec. 14005. Accurate documentation in the Census of Agriculture and 
          certain studies.
Sec. 14006. Transparency and accountability for socially disadvantaged 
          farmers or ranchers.
Sec. 14007. Oversight and compliance.
Sec. 14008. Minority Farmer Advisory Committee.
Sec. 14009. National Appeals Division.
Sec. 14010. Report of civil rights complaints, resolutions, and actions.
Sec. 14011. Sense of Congress relating to claims brought by socially 
          disadvantaged farmers or ranchers.
Sec. 14012. Determination on merits of Pigford claims.
Sec. 14013. Office of Advocacy and Outreach.

                    Subtitle B--Agricultural Security

Sec. 14101. Short title.
Sec. 14102. Definitions.

                    Chapter 1--Agricultural Security

Sec. 14111. Office of Homeland Security.
Sec. 14112. Agricultural biosecurity communication center.
Sec. 14113. Assistance to build local capacity in agricultural 
          biosecurity planning, preparedness, and response.

                       Chapter 2--Other Provisions

Sec. 14121. Research and development of agricultural countermeasures.
Sec. 14122. Agricultural biosecurity grant program.

               Subtitle C--Other Miscellaneous Provisions

Sec. 14201. Cotton classification services.
Sec. 14202. Designation of States for cotton research and promotion.
Sec. 14203. Grants to reduce production of methamphetamines from 
          anhydrous ammonia.
Sec. 14204. Grants to improve supply, stability, safety, and training of 
          agricultural labor force.
Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978.
Sec. 14206. Report on stored quantities of propane.
Sec. 14207. Prohibitions on dog fighting ventures.
Sec. 14208. Department of Agriculture conference transparency.
Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act 
          amendments.
Sec. 14210. Importation of live dogs.
Sec. 14211. Permanent debarment from participation in Department of 
          Agriculture programs for fraud.
Sec. 14212. Prohibition on closure or relocation of county offices for 
          the Farm Service Agency.
Sec. 14213. USDA Graduate School.
Sec. 14214. Fines for violations of the Animal Welfare Act.
Sec. 14215. Definition of central filing system.
Sec. 14216. Consideration of proposed recommendations of study on use of 
          cats and dogs in Federal research.
Sec. 14217. Regional economic and infrastructure development.
Sec. 14218. Coordinator for chronically underserved rural areas.
Sec. 14219. Elimination of statute of limitations applicable to 
          collection of debt by administrative offset.
Sec. 14220. Availability of excess and surplus computers in rural areas.
Sec. 14221. Repeal of section 3068 of the Water Resources Development 
          Act of 2007.
Sec. 14222. Domestic food assistance programs.
Sec. 14223. Technical correction.

                   TITLE XV--TRADE AND TAX PROVISIONS

Sec. 15001. Short title; etc.

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

Sec. 15101. Supplemental agricultural disaster assistance.

         Subtitle B--Revenue Provisions for Agriculture Programs

Sec. 15201. Customs User Fees.
Sec. 15202. Time for payment of corporate estimated taxes.

                       Subtitle C--Tax Provisions

                          PART I--Conservation

           subpart a--land and species preservation provisions

Sec. 15301. Exclusion of conservation reserve program payments from SECA 
          tax for certain individuals.
Sec. 15302. Two-year extension of special rule encouraging contributions 
          of capital gain real property for conservation purposes.
Sec. 15303. Deduction for endangered species recovery expenditures.

                      subpart b--timber provisions

Sec. 15311. Temporary reduction in rate of tax on qualified timber gain 
          of corporations.
Sec. 15312. Timber REIT modernization.
Sec. 15313. Mineral royalty income qualifying income for timber REITs.
Sec. 15314. Modification of taxable REIT subsidiary asset test for 
          timber REITs.
Sec. 15315. Safe harbor for timber property.
Sec. 15316. Qualified forestry conservation bonds.

                       PART II--Energy Provisions

                      subpart a--cellulosic biofuel

Sec. 15321. Credit for production of cellulosic biofuel.
Sec. 15322. Comprehensive study of biofuels.

                      subpart b--revenue provisions

Sec. 15331. Modification of alcohol credit.
Sec. 15332. Calculation of volume of alcohol for fuel credits.
Sec. 15333. Ethanol tariff extension.
Sec. 15334. Limitations on duty drawback on certain imported ethanol.

                    PART III--Agricultural Provisions

Sec. 15341. Increase in loan limits on agricultural bonds.
Sec. 15342. Allowance of section 1031 treatment for exchanges involving 
          certain mutual ditch, reservoir, or irrigation company stock.
Sec. 15343. Agricultural chemicals security credit.
Sec. 15344. 3-year depreciation for race horses that are 2 years old or 
          younger.
Sec. 15345. Temporary tax relief for Kiowa County, Kansas and 
          surrounding area.
Sec. 15346. Competitive certification awards modification authority.

                    PART IV--Other Revenue Provisions

Sec. 15351. Limitation on excess farm losses of certain taxpayers.
Sec. 15352. Modification to optional method of computing net earnings 
          from self-employment.
Sec. 15353. Information reporting for Commodity Credit Corporation 
          transactions.

                  PART V--Protection of Social Security

Sec. 15361. Protection of social security.

                      Subtitle D--Trade Provisions

               PART I--Extension of Certain Trade Benefits

Sec. 15401. Short title.
Sec. 15402. Benefits for apparel and other textile articles.
Sec. 15403. Labor Ombudsman and technical assistance improvement and 
          compliance needs assessment and remediation program.
Sec. 15404. Petition process.
Sec. 15405. Conditions regarding enforcement of circumvention.
Sec. 15406. Presidential proclamation authority.
Sec. 15407. Regulations and procedures.
Sec. 15408. Extension of CBTPA.
Sec. 15409. Sense of Congress on interpretation of textile and apparel 
          provisions for Haiti.
Sec. 15410. Sense of Congress on trade mission to Haiti.
Sec. 15411. Sense of Congress on visa systems.
Sec. 15412. Effective date.

                 PART II--Miscellaneous Trade Provisions

Sec. 15421. Unused merchandise drawback.
Sec. 15422. Requirements relating to determination of transaction value 
          of imported merchandise.

SEC. 2. DEFINITION OF SECRETARY.

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

                      TITLE I--COMMODITY PROGRAMS

SEC. 1001. DEFINITIONS.

    In this title (other than subtitle C):
            (1) Average crop revenue election payment.--The 
        term ``average crop revenue election payment'' means a 
        payment made to producers on a farm under section 1105.
            (2) Base acres.--
                    (A) In general.--The term ``base acres'', 
                with respect to a covered commodity on a farm, 
                means the number of acres established under 
                section 1101 of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 7911) as in 
                effect on September 30, 2007, subject to any 
                adjustment under section 1101 of this Act.
                    (B) Peanuts.--The term ``base acres for 
                peanuts'' has the meaning given the term in 
                section 1301.
            (3) Counter-cyclical payment.--The term ``counter-
        cyclical payment'' means a payment made to producers on 
        a farm under section 1104.
            (4) Covered commodity.--The term ``covered 
        commodity'' means wheat, corn, grain sorghum, barley, 
        oats, upland cotton, long grain rice, medium grain 
        rice, pulse crops, soybeans, and other oilseeds.
            (5) Direct payment.--The term ``direct payment'' 
        means a payment made to producers on a farm under 
        section 1103.
            (6) Effective price.--The term ``effective price'', 
        with respect to a covered commodity for a crop year, 
        means the price calculated by the Secretary under 
        section 1104 to determine whether counter-cyclical 
        payments are required to be made for that crop year.
            (7) Extra long staple cotton.--The term ``extra 
        long staple cotton'' means cotton that--
                    (A) is produced from pure strain varieties 
                of the Barbadense species or any hybrid of the 
                species, or other similar types of extra long 
                staple cotton, designated by the Secretary, 
                having characteristics needed for various end 
                uses for which United States upland cotton is 
                not suitable and grown in irrigated cotton-
                growing regions of the United States designated 
                by the Secretary or other areas designated by 
                the Secretary as suitable for the production of 
                the varieties or types; and
                    (B) is ginned on a roller-type gin or, if 
                authorized by the Secretary, ginned on another 
                type gin for experimental purposes.
            (8) Loan commodity.--The term ``loan commodity'' 
        means wheat, corn, grain sorghum, barley, oats, upland 
        cotton, extra long staple cotton, long grain rice, 
        medium grain rice, soybeans, other oilseeds, graded 
        wool, nongraded wool, mohair, honey, dry peas, lentils, 
        small chickpeas, and large chickpeas.
            (9) Medium grain rice.--The term ``medium grain 
        rice'' includes short grain rice.
            (10) Other oilseed.--The term ``other oilseed'' 
        means a crop of sunflower seed, rapeseed, canola, 
        safflower, flaxseed, mustard seed, crambe, sesame seed, 
        or any oilseed designated by the Secretary.
            (11) Payment acres.--The term ``payment acres'' 
        means, in the case of direct payments and counter-
        cyclical payments--
                    (A) except as provided in subparagraph (B), 
                85 percent of the base acres of a covered 
                commodity on a farm on which direct payments or 
                counter-cyclical payments are made; and
                    (B) in the case of direct payments for each 
                of the 2009 through 2011 crop years, 83.3 
                percent of the base acres for the covered 
                commodity on a farm on which direct payments 
                are made.
            (12) Payment yield.--The term ``payment yield'' 
        means the yield established for direct payments and the 
        yield established for counter-cyclical payments under 
        section 1102 of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 7912) as in effect on September 
        30, 2007, or under section 1102 of this Act, for a farm 
        for a covered commodity.
            (13) Producer.--
                    (A) In general.--The term ``producer'' 
                means an owner, operator, landlord, tenant, or 
                sharecropper that shares in the risk of 
                producing a crop and is entitled to share in 
                the crop available for marketing from the farm, 
                or would have shared had the crop been 
                produced.
                    (B) Hybrid seed.--In determining whether a 
                grower of hybrid seed is a producer, the 
                Secretary shall--
                            (i) not take into consideration the 
                        existence of a hybrid seed contract; 
                        and
                            (ii) ensure that program 
                        requirements do not adversely affect 
                        the ability of the grower to receive a 
                        payment under this title.
            (14) Pulse crop.--The term ``pulse crop'' means dry 
        peas, lentils, small chickpeas, and large chickpeas.
            (15) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of 
                the United States.
            (16) Target price.--The term ``target price'' means 
        the price per bushel, pound, or hundredweight (or other 
        appropriate unit) of a covered commodity used to 
        determine the payment rate for counter-cyclical 
        payments.
            (17) United states.--The term ``United States'', 
        when used in a geographical sense, means all of the 
        States.
            (18) United states premium factor.--The term 
        ``United States Premium Factor'' means the percentage 
        by which the difference in the United States loan 
        schedule premiums for Strict Middling (SM) 1\1/8\-inch 
        upland cotton and for Middling (M) 1\3/32\-inch upland 
        cotton exceeds the difference in the applicable 
        premiums for comparable international qualities.

       Subtitle A--Direct Payments and Counter-Cyclical Payments

SEC. 1101. BASE ACRES.

    (a) Adjustment of Base Acres.--
            (1) In general.--The Secretary shall provide for an 
        adjustment, as appropriate, in the base acres for 
        covered commodities for a farm whenever any of the 
        following circumstances occurs:
                    (A) A conservation reserve contract entered 
                into under section 1231 of the Food Security 
                Act of 1985 (16 U.S.C. 3831) with respect to 
                the farm expires or is voluntarily terminated, 
                or was terminated or expired during the period 
                beginning on October 1, 2007, and ending on the 
                date of enactment of this Act.
                    (B) Cropland is released from coverage 
                under a conservation reserve contract by the 
                Secretary, or was released during the period 
                beginning on October 1, 2007, and ending on the 
                date of enactment of this Act.
                    (C) The producer has eligible pulse crop 
                acreage, which shall be determined in the same 
                manner as eligible oilseed acreage under 
                section 1101(a)(2) of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 
                7911(a)(2)).
                    (D) The producer has eligible oilseed 
                acreage as the result of the Secretary 
                designating additional oilseeds, which shall be 
                determined in the same manner as eligible 
                oilseed acreage under section 1101(a)(2) of the 
                Farm Security and Rural Investment Act of 2002 
                (7 U.S.C. 7911(a)(2)).
            (2) Special conservation reserve acreage payment 
        rules.--For the crop year in which a base acres 
        adjustment under subparagraph (A) or (B) of paragraph 
        (1) is first made, the owner of the farm shall elect to 
        receive either direct payments and counter-cyclical 
        payments with respect to the acreage added to the farm 
        under this subsection or a prorated payment under the 
        conservation reserve contract, but not both.
    (b) Prevention of Excess Base Acres.--
            (1) Required reduction.--If the sum of the base 
        acres for a farm, together with the acreage described 
        in paragraph (2) exceeds the actual cropland acreage of 
        the farm, the Secretary shall reduce the base acres for 
        1 or more covered commodities for the farm or the base 
        acres for peanuts for the farm so that the sum of the 
        base acres and acreage described in paragraph (2) does 
        not exceed the actual cropland acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), 
        the Secretary shall include the following:
                    (A) Any base acres for peanuts for the 
                farm.
                    (B) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands 
                reserve program under chapter 1 of subtitle D 
                of title XII of the Food Security Act of 1985 
                (16 U.S.C. 3830 et seq.).
                    (C) Any other acreage on the farm enrolled 
                in a Federal conservation program for which 
                payments are made in exchange for not producing 
                an agricultural commodity on the acreage.
                    (D) Any eligible pulse crop acreage, which 
                shall be determined in the same manner as 
                eligible oilseed acreage under section 
                1101(a)(2) of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
                    (E) If the Secretary designates additional 
                oilseeds, any eligible oilseed acreage, which 
                shall be determined in the same manner as 
                eligible oilseed acreage under section 
                1101(a)(2) of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
            (3) Selection of acres.--The Secretary shall give 
        the owner of the farm the opportunity to select the 
        base acres for a covered commodity or the base acres 
        for peanuts for the farm against which the reduction 
        required by paragraph (1) will be made.
            (4) Exception for double-cropped acreage.--In 
        applying paragraph (1), the Secretary shall make an 
        exception in the case of double cropping, as determined 
        by the Secretary.
            (5) Coordinated application of requirements.--The 
        Secretary shall take into account section 1302(b) when 
        applying the requirements of this subsection.
    (c) Reduction in Base Acres.--
            (1) Reduction at option of owner.--
                    (A) In general.--The owner of a farm may 
                reduce, at any time, the base acres for any 
                covered commodity for the farm.
                    (B) Effect of reduction.--A reduction under 
                subparagraph (A) shall be permanent and made in 
                a manner prescribed by the Secretary.
            (2) Required action by secretary.--
                    (A) In general.--The Secretary shall 
                proportionately reduce base acres on a farm for 
                covered commodities for land that has been 
                subdivided and developed for multiple 
                residential units or other nonfarming uses if 
                the size of the tracts and the density of the 
                subdivision is such that the land is unlikely 
                to return to the previous agricultural use, 
                unless the producers on the farm demonstrate 
                that the land--
                            (i) remains devoted to commercial 
                        agricultural production; or
                            (ii) is likely to be returned to 
                        the previous agricultural use.
                    (B) Requirement.--The Secretary shall 
                establish procedures to identify land described 
                in subparagraph (A).
            (3) Review and report.--Each year, to ensure, to 
        the maximum extent practicable, that payments are 
        received only by producers, the Secretary shall submit 
        to Congress a report that describes the results of the 
        actions taken under paragraph (2).
    (d) Treatment of Farms With Limited Base Acres.--
            (1) Prohibition on payments.--Except as provided in 
        paragraph (2) and notwithstanding any other provision 
        of this title, a producer on a farm may not receive 
        direct payments, counter-cyclical payments, or average 
        crop revenue election payments if the sum of the base 
        acres of the farm is 10 acres or less, as determined by 
        the Secretary.
            (2) Exceptions.--Paragraph (1) shall not apply to a 
        farm owned by--
                    (A) a socially disadvantaged farmer or 
                rancher (as defined in section 355(e) of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 2003(e)); or
                    (B) a limited resource farmer or rancher, 
                as defined by the Secretary.
            (3) Data collection and publication.--The Secretary 
        shall--
                    (A) collect and publish segregated data and 
                survey information about the farm profiles, 
                utilization of land, and crop production; and
                    (B) perform an evaluation on the supply and 
                price of fruits and vegetables based on the 
                effects of suspension of base acres under this 
                section.

SEC. 1102. PAYMENT YIELDS.

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

SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

    (a) Payment Required.--For each of the 2008 through 2012 
crop years of each covered commodity (other than pulse crops), 
the Secretary shall make direct payments to producers on farms 
for which base acres and payment yields are established.
    (b) Payment Rate.--Except as provided in section 1105, the 
payment rates used to make direct payments with respect to 
covered commodities for a crop year shall be as follows:
            (1) Wheat, $0.52 per bushel.
            (2) Corn, $0.28 per bushel.
            (3) Grain sorghum, $0.35 per bushel.
            (4) Barley, $0.24 per bushel.
            (5) Oats, $0.024 per bushel.
            (6) Upland cotton, $0.0667 per pound.
            (7) Long grain rice, $2.35 per hundredweight.
            (8) Medium grain rice, $2.35 per hundredweight.
            (9) Soybeans, $0.44 per bushel.
            (10) Other oilseeds, $0.80 per hundredweight.
    (c) Payment Amount.--The amount of the direct payment to be 
paid to the producers on a farm for a covered commodity for a 
crop year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres of the covered commodity on 
        the farm.
            (3) The payment yield for the covered commodity for 
        the farm.
    (d) Time for Payment.--
            (1) In general.--Except as provided in paragraph 
        (2), in the case of each of the 2008 through 2012 crop 
        years, the Secretary may not make direct payments 
        before October 1 of the calendar year in which the crop 
        of the covered commodity is harvested.
            (2) Advance payments.--
                    (A) Option.--
                            (i) In general.--At the option of 
                        the producers on a farm, the Secretary 
                        shall pay in advance up to 22 percent 
                        of the direct payment for a covered 
                        commodity for any of the 2008 through 
                        2011 crop years to the producers on a 
                        farm.
                            (ii) 2008 crop year.--If the 
                        producers on a farm elect to receive 
                        advance direct payments under clause 
                        (i) for a covered commodity for the 
                        2008 crop year, as soon as practicable 
                        after the election, the Secretary shall 
                        make the advance direct payment to the 
                        producers on the farm.
                    (B) Month.--
                            (i) Selection.--Subject to clauses 
                        (ii) and (iii), the producers on a farm 
                        shall select the month during which the 
                        advance payment for a crop year will be 
                        made.
                            (ii) Options.--The month selected 
                        may be any month during the period--
                                    (I) beginning on December 1 
                                of the calendar year before the 
                                calendar year in which the crop 
                                of the covered commodity is 
                                harvested; and
                                    (II) ending during the 
                                month within which the direct 
                                payment would otherwise be 
                                made.
                            (iii) Change.--The producers on a 
                        farm may change the selected month for 
                        a subsequent advance payment by 
                        providing advance notice to the 
                        Secretary.
            (3) Repayment of advance payments.--If a producer 
        on a farm that receives an advance direct payment for a 
        crop year ceases to be a producer on that farm, or the 
        extent to which the producer shares in the risk of 
        producing a crop changes, before the date the remainder 
        of the direct payment is made, the producer shall be 
        responsible for repaying the Secretary the applicable 
        amount of the advance payment, as determined by the 
        Secretary.

SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    (a) Payment Required.--Except as provided in section 1105, 
for each of the 2008 through 2012 crop years for each covered 
commodity, the Secretary shall make counter-cyclical payments 
to producers on farms for which payment yields and base acres 
are established with respect to the covered commodity if the 
Secretary determines that the effective price for the covered 
commodity is less than the target price for the covered 
commodity.
    (b) Effective Price.--
            (1) Covered commodities other than rice.--Except as 
        provided in paragraph (2), for purposes of subsection 
        (a), the effective price for a covered commodity is 
        equal to the sum of the following:
                    (A) The higher of the following:
                            (i) The national average market 
                        price received by producers during the 
                        12-month marketing year for the covered 
                        commodity, as determined by the 
                        Secretary.
                            (ii) The national average loan rate 
                        for a marketing assistance loan for the 
                        covered commodity in effect for the 
                        applicable period under subtitle B.
                    (B) The payment rate in effect for the 
                covered commodity under section 1103 for the 
                purpose of making direct payments with respect 
                to the covered commodity.
            (2) Rice.--In the case of long grain rice and 
        medium grain rice, for purposes of subsection (a), the 
        effective price for each type or class of rice is equal 
        to the sum of the following:
                    (A) The higher of the following:
                            (i) The national average market 
                        price received by producers during the 
                        12-month marketing year for the type or 
                        class of rice, as determined by the 
                        Secretary.
                            (ii) The national average loan rate 
                        for a marketing assistance loan for the 
                        type or class of rice in effect for the 
                        applicable period under subtitle B.
                    (B) The payment rate in effect for the type 
                or class of rice under section 1103 for the 
                purpose of making direct payments with respect 
                to the type or class of rice.
    (c) Target Price.--
            (1) 2008 crop year.--For purposes of the 2008 crop 
        year, the target prices for covered commodities shall 
        be as follows:
                    (A) Wheat, $3.92 per bushel.
                    (B) Corn, $2.63 per bushel.
                    (C) Grain sorghum, $2.57 per bushel.
                    (D) Barley, $2.24 per bushel.
                    (E) Oats, $1.44 per bushel.
                    (F) Upland cotton, $0.7125 per pound.
                    (G) Long grain rice, $10.50 per 
                hundredweight.
                    (H) Medium grain rice, $10.50 per 
                hundredweight.
                    (I) Soybeans, $5.80 per bushel.
                    (J) Other oilseeds, $10.10 per 
                hundredweight.
            (2) 2009 crop year.--For purposes of the 2009 crop 
        year, the target prices for covered commodities shall 
        be as follows:
                    (A) Wheat, $3.92 per bushel.
                    (B) Corn, $2.63 per bushel.
                    (C) Grain sorghum, $2.57 per bushel.
                    (D) Barley, $2.24 per bushel.
                    (E) Oats, $1.44 per bushel.
                    (F) Upland cotton, $0.7125 per pound.
                    (G) Long grain rice, $10.50 per 
                hundredweight.
                    (H) Medium grain rice, $10.50 per 
                hundredweight.
                    (I) Soybeans, $5.80 per bushel.
                    (J) Other oilseeds, $10.10 per 
                hundredweight.
                    (K) Dry peas, $8.32 per hundredweight.
                    (L) Lentils, $12.81 per hundredweight.
                    (M) Small chickpeas, $10.36 per 
                hundredweight.
                    (N) Large chickpeas, $12.81 per 
                hundredweight.
            (3) Subsequent crop years.--For purposes of each of 
        the 2010 through 2012 crop years, the target prices for 
        covered commodities shall be as follows:
                    (A) Wheat, $4.17 per bushel.
                    (B) Corn, $2.63 per bushel.
                    (C) Grain sorghum, $2.63 per bushel.
                    (D) Barley, $2.63 per bushel.
                    (E) Oats, $1.79 per bushel.
                    (F) Upland cotton, $0.7125 per pound.
                    (G) Long grain rice, $10.50 per 
                hundredweight.
                    (H) Medium grain rice, $10.50 per 
                hundredweight.
                    (I) Soybeans, $6.00 per bushel.
                    (J) Other oilseeds, $12.68 per 
                hundredweight.
                    (K) Dry peas, $8.32 per hundredweight.
                    (L) Lentils, $12.81 per hundredweight.
                    (M) Small chickpeas, $10.36 per 
                hundredweight.
                    (N) Large chickpeas, $12.81 per 
                hundredweight.
    (d) Payment Rate.--The payment rate used to make counter-
cyclical payments with respect to a covered commodity for a 
crop year shall be equal to the difference between--
            (1) the target price for the covered commodity; and
            (2) the effective price determined under subsection 
        (b) for the covered commodity.
    (e) Payment Amount.--If counter-cyclical payments are 
required to be paid under this section for any of the 2008 
through 2012 crop years of a covered commodity, the amount of 
the counter-cyclical payment to be paid to the producers on a 
farm for that crop year shall be equal to the product of the 
following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres of the covered commodity on 
        the farm.
            (3) The payment yield for the covered commodity for 
        the farm.
    (f) Time for Payments.--
            (1) General rule.--Except as provided in paragraph 
        (2), if the Secretary determines under subsection (a) 
        that counter-cyclical payments are required to be made 
        under this section for the crop of a covered commodity, 
        beginning October 1, or as soon as practicable 
        thereafter, after the end of the marketing year for the 
        covered commodity, the Secretary shall make the 
        counter-cyclical payments for the crop.
            (2) Availability of partial payments.--
                    (A) In general.--If, before the end of the 
                12-month marketing year for a covered 
                commodity, the Secretary estimates that 
                counter-cyclical payments will be required for 
                the crop of the covered commodity, the 
                Secretary shall give producers on a farm the 
                option to receive partial payments of the 
                counter-cyclical payment projected to be made 
                for that crop of the covered commodity.
                    (B) Election.--
                            (i) In general.--The Secretary 
                        shall allow producers on a farm to make 
                        an election to receive partial payments 
                        for a covered commodity under 
                        subparagraph (A) at any time but not 
                        later than 60 days prior to the end of 
                        the marketing year for that covered 
                        commodity.
                            (ii) Date of issuance.--The 
                        Secretary shall issue the partial 
                        payment after the date of an 
                        announcement by the Secretary but not 
                        later than 30 days prior to the end of 
                        the marketing year.
            (3) Time for partial payments.--When the Secretary 
        makes partial payments for a covered commodity for any 
        of the 2008 through 2010 crop years--
                    (A) the first partial payment shall be made 
                after completion of the first 180 days of the 
                marketing year for the covered commodity; and
                    (B) the final partial payment shall be made 
                beginning October 1, or as soon as practicable 
                thereafter, after the end of the applicable 
                marketing year for the covered commodity.
            (4) Amount of partial payment.--
                    (A) First partial payment.--For each of the 
                2008 through 2010 crops of a covered commodity, 
                the first partial payment under paragraph (3) 
                to the producers on a farm may not exceed 40 
                percent of the projected counter-cyclical 
                payment for the covered commodity for the crop 
                year, as determined by the Secretary.
                    (B) Final payment.--The final payment for a 
                covered commodity for a crop year shall be 
                equal to the difference between--
                            (i) the actual counter-cyclical 
                        payment to be made to the producers for 
                        the covered commodity for that crop 
                        year; and
                            (ii) the amount of the partial 
                        payment made to the producers under 
                        subparagraph (A).
            (5) Repayment.--The producers on a farm that 
        receive a partial payment under this subsection for a 
        crop year shall repay to the Secretary the amount, if 
        any, by which the total of the partial payments exceed 
        the actual counter-cyclical payment to be made for the 
        covered commodity for that crop year.

SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM.

    (a) Availability and Election of Alternative Approach.--
            (1) Availability of average crop revenue election 
        payments.--As an alternative to receiving counter-
        cyclical payments under section 1104 or 1304 and in 
        exchange for a 20-percent reduction in direct payments 
        under section 1103 or 1303 and a 30-percent reduction 
        in marketing assistance loan rates under section 1202 
        or 1307, with respect to all covered commodities and 
        peanuts on a farm, during each of the 2009, 2010, 2011, 
        and 2012 crop years, the Secretary shall give the 
        producers on the farm an opportunity to make an 
        irrevocable election to instead receive average crop 
        revenue election (referred to in this section as 
        ``ACRE'') payments under this section for the initial 
        crop year for which the election is made through the 
        2012 crop year.
            (2) Limitation.--
                    (A) In general.--The total number of 
                planted acres for which the producers on a farm 
                may receive ACRE payments under this section 
                may not exceed the total base acreage for all 
                covered commodities and peanuts on the farm.
                    (B) Election.--If the total number of 
                planted acres to all covered commodities and 
                peanuts of the producers on a farm exceeds the 
                total base acreage of the farm, the producers 
                on the farm may choose which planted acres to 
                enroll in the program under this section.
            (3) Election; time for election.--
                    (A) In general.--The Secretary shall 
                provide notice to producers regarding the 
                opportunity to make each of the elections 
                described in paragraph (1).
                    (B) Notice requirements.--The notice shall 
                include--
                            (i) notice of the opportunity of 
                        the producers on a farm to make the 
                        election; and
                            (ii) information regarding the 
                        manner in which the election must be 
                        made and the time periods and manner in 
                        which notice of the election must be 
                        submitted to the Secretary.
            (4) Election deadline.--Within the time period and 
        in the manner prescribed pursuant to paragraph (3), all 
        of the producers on a farm shall submit to the 
        Secretary notice of an election made under paragraph 
        (1).
            (5) Effect of failure to make election.--If all of 
        the producers on a farm fail to make an election under 
        paragraph (1), make different elections under paragraph 
        (1), or fail to timely notify the Secretary of the 
        election made, as required by paragraph (4), all of the 
        producers on the farm shall be deemed to have made the 
        election to receive counter-cyclical payments under 
        section 1104 or 1304 for all covered commodities and 
        peanuts on the farm, and to otherwise not have made the 
        election described in paragraph (1), for the applicable 
        crop years.
    (b) Payments Required.--
            (1) In general.--In the case of producers on a farm 
        who make an election under subsection (a) to receive 
        ACRE payments for any of the 2009 through 2012 crop 
        years for all covered commodities and peanuts, the 
        Secretary shall make ACRE payments available to the 
        producers on a farm in accordance with this subsection.
            (2) ACRE payment.--
                    (A) In general.--Subject to paragraph (3), 
                in the case of producers on a farm described in 
                paragraph (1), the Secretary shall make ACRE 
                payments available to the producers on a farm 
                for each crop year if--
                            (i) the actual State revenue for 
                        the crop year for the covered commodity 
                        or peanuts in the State determined 
                        under subsection (c); is less than
                            (ii) the ACRE program guarantee for 
                        the crop year for the covered commodity 
                        or peanuts in the State determined 
                        under subsection (d).
                    (B) Individual loss.--The Secretary shall 
                make ACRE payments available to the producers 
                on a farm in a State for a crop year only if 
                (as determined by the Secretary)--
                            (i) the actual farm revenue for the 
                        crop year for the covered commodity or 
                        peanuts, as determined under subsection 
                        (e); is less than
                            (ii) the farm ACRE benchmark 
                        revenue for the crop year for the 
                        covered commodity or peanuts, as 
                        determined under subsection (f).
            (3) Time for payments.--In the case of each of the 
        2009 through 2012 crop years, the Secretary shall make 
        ACRE payments beginning October 1, or as soon as 
        practicable thereafter, after the end of the applicable 
        marketing year for the covered commodity or peanuts.
    (c) Actual State Revenue.--
            (1) In general.--For purposes of subsection 
        (b)(2)(A), the amount of the actual State revenue for a 
        crop year of a covered commodity or peanuts shall equal 
        the product obtained by multiplying--
                    (A) the actual State yield for each planted 
                acre for the crop year for the covered 
                commodity or peanuts determined under paragraph 
                (2); and
                    (B) the national average market price for 
                the crop year for the covered commodity or 
                peanuts determined under paragraph (3).
            (2) Actual state yield.--For purposes of paragraph 
        (1)(A), the actual State yield for each planted acre 
        for a crop year for a covered commodity or peanuts in a 
        State shall equal (as determined by the Secretary)--
                    (A) the quantity of the covered commodity 
                or peanuts that is produced in the State during 
                the crop year; divided by
                    (B) the number of acres that are planted to 
                the covered commodity or peanuts in the State 
                during the crop year.
            (3) National average market price.--For purposes of 
        paragraph (1)(B), the national average market price for 
        a crop year for a covered commodity or peanuts in a 
        State shall equal the greater of--
                    (A) the national average market price 
                received by producers during the 12-month 
                marketing year for the covered commodity or 
                peanuts, as determined by the Secretary; or
                    (B) the marketing assistance loan rate for 
                the covered commodity or peanuts under section 
                1202 or 1307, as reduced under subsection 
                (a)(1).
    (d) ACRE Program Guarantee.--
            (1) Amount.--
                    (A) In general.--For purposes of subsection 
                (b)(2)(A) and subject to subparagraph (B), the 
                ACRE program guarantee for a crop year for a 
                covered commodity or peanuts in a State shall 
                equal 90 percent of the product obtained by 
                multiplying--
                            (i) the benchmark State yield for 
                        each planted acre for the crop year for 
                        the covered commodity or peanuts in a 
                        State determined under paragraph (2); 
                        and
                            (ii) the ACRE program guarantee 
                        price for the crop year for the covered 
                        commodity or peanuts determined under 
                        paragraph (3).
                    (B) Minimum and maximum guarantee.--In the 
                case of each of the 2010 through 2012 crop 
                years, the ACRE program guarantee for a crop 
                year for a covered commodity or peanuts under 
                subparagraph (A) shall not decrease or increase 
                more than 10 percent from the guarantee for the 
                preceding crop year.
            (2) Benchmark state yield.--
                    (A) In general.--For purposes of paragraph 
                (1)(A)(i), subject to subparagraph (B), the 
                benchmark State yield for each planted acre for 
                a crop year for a covered commodity or peanuts 
                in a State shall equal the average yield per 
                planted acre for the covered commodity or 
                peanuts in the State for the most recent 5 crop 
                year yields, excluding each of the crop years 
                with the highest and lowest yields, using 
                National Agricultural Statistics Service data.
                    (B) Assigned yield.--If the Secretary 
                cannot establish the benchmark State yield for 
                each planted acre for a crop year for a covered 
                commodity or peanuts in a State in accordance 
                with subparagraph (A) or if the yield 
                determined under subparagraph (A) is an 
                unrepresentative average yield for the State 
                (as determined by the Secretary), the Secretary 
                shall assign a benchmark State yield for each 
                planted acre for the crop year for the covered 
                commodity or peanuts in the State on the basis 
                of--
                            (i) previous average yields for a 
                        period of 5 crop years, excluding each 
                        of the crop years with the highest and 
                        lowest yields; or
                            (ii) benchmark State yields for 
                        planted acres for the crop year for the 
                        covered commodity or peanuts in similar 
                        States.
            (3) ACRE program guarantee price.--For purposes of 
        paragraph (1)(A)(ii), the ACRE program guarantee price 
        for a crop year for a covered commodity or peanuts in a 
        State shall be the simple average of the national 
        average market price received by producers of the 
        covered commodity or peanuts for the most recent 2 crop 
        years, as determined by the Secretary.
            (4) States with irrigated and nonirrigated land.--
        In the case of a State in which at least 25 percent of 
        the acreage planted to a covered commodity or peanuts 
        in the State is irrigated and at least 25 percent of 
        the acreage planted to the covered commodity or peanuts 
        in the State is not irrigated, the Secretary shall 
        calculate a separate ACRE program guarantee for the 
        irrigated and nonirrigated areas of the State for the 
        covered commodity or peanuts.
    (e) Actual Farm Revenue.--For purposes of subsection 
(b)(2)(B)(i), the amount of the actual farm revenue for a crop 
year for a covered commodity or peanuts shall equal the amount 
determined by multiplying--
            (1) the actual yield for the covered commodity or 
        peanuts of the producers on the farm; and
            (2) the national average market price for the crop 
        year for the covered commodity or peanuts determined 
        under subsection (c)(3).
    (f) Farm ACRE Benchmark Revenue.--For purposes of 
subsection (b)(2)(B)(ii), the farm ACRE benchmark revenue for 
the crop year for a covered commodity or peanuts shall equal 
the sum obtained by adding--
            (1) the amount determined by multiplying--
                    (A) the average yield per planted acre for 
                the covered commodity or peanuts of the 
                producers on the farm for the most recent 5 
                crop years, excluding each of the crop years 
                with the highest and lowest yields; and
                    (B) the ACRE program guarantee price for 
                the applicable crop year for the covered 
                commodity or peanuts in a State determined 
                under subsection (d)(3); and
            (2) the amount of the per acre crop insurance 
        premium required to be paid by the producers on the 
        farm for the applicable crop year for the covered 
        commodity or peanuts on the farm.
    (g) Payment Amount.--If ACRE payments are required to be 
paid for any of the 2009 through 2012 crop years of a covered 
commodity or peanuts under this section, the amount of the ACRE 
payment to be paid to the producers on the farm for the crop 
year under this section shall be equal to the product obtained 
by multiplying--
            (1) the lesser of--
                    (A) the difference between--
                            (i) the ACRE program guarantee for 
                        the crop year for the covered commodity 
                        or peanuts in the State determined 
                        under subsection (d); and
                            (ii) the actual State revenue from 
                        the crop year for the covered commodity 
                        or peanuts in the State determined 
                        under subsection (c); and
                    (B) 25 percent of the ACRE program 
                guarantee for the crop year for the covered 
                commodity or peanuts in the State determined 
                under subsection (d);
            (2)(A) for each of the 2009 through 2011 crop 
        years, 83.3 percent of the acreage planted or 
        considered planted to the covered commodity or peanuts 
        for harvest on the farm in the crop year; and
            (B) for the 2012 crop year, 85 percent of the 
        acreage planted or considered planted to the covered 
        commodity or peanuts for harvest on the farm in the 
        crop year; and
            (3) the quotient obtained by dividing--
                    (A) the average yield per planted acre for 
                the covered commodity or peanuts of the 
                producers on the farm for the most recent 5 
                crop years, excluding each of the crop years 
                with the highest and lowest yields; by
                    (B) the benchmark State yield for the crop 
                year, as determined under subsection (d)(2).

SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF 
                    PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm 
        may receive direct payments, counter-cyclical payments, 
        or average crop revenue election payments with respect 
        to the farm, the producers shall agree, during the crop 
        year for which the payments are made and in exchange 
        for the payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3811 
                et seq.);
                    (B) to comply with applicable wetland 
                protection requirements under subtitle C of 
                title XII of that Act (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 1107;
                    (D) to use the land on the farm, in a 
                quantity equal to the attributable base acres 
                for the farm and any base acres for peanuts for 
                the farm under subtitle C, for an agricultural 
                or conserving use, and not for a 
                nonagricultural commercial, industrial, or 
                residential use, as determined by the 
                Secretary; and
                    (E) to effectively control noxious weeds 
                and otherwise maintain the land in accordance 
                with sound agricultural practices, as 
                determined by the Secretary, if the 
                agricultural or conserving use involves the 
                noncultivation of any portion of the land 
                referred to in subparagraph (D).
            (2) Compliance.--The Secretary may issue such rules 
        as the Secretary considers necessary to ensure producer 
        compliance with the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee 
        or owner, the Secretary may modify the requirements of 
        this subsection if the modifications are consistent 
        with the objectives of this subsection, as determined 
        by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--
                    (A) In general.--Except as provided in 
                paragraph (2), a transfer of (or change in) the 
                interest of the producers on a farm in base 
                acres for which direct payments or counter-
                cyclical payments are made, or on which average 
                crop revenue election payments are based, shall 
                result in the termination of the direct 
                payments, counter-cyclical payments, or average 
                crop revenue election payments to the extent 
                the payments are made or based on the base 
                acres, unless the transferee or owner of the 
                acreage agrees to assume all obligations under 
                subsection (a).
                    (B) Effective date.--The termination shall 
                take effect on the date determined by the 
                Secretary.
            (2) Exception.--If a producer entitled to a direct 
        payment, counter-cyclical payment, or average crop 
        revenue election payment dies, becomes incompetent, or 
        is otherwise unable to receive the payment, the 
        Secretary shall make the payment, in accordance with 
        rules issued by the Secretary.
    (c) Reports.--
            (1) Acreage reports.--As a condition on the receipt 
        of any benefits under this subtitle or subtitle B, the 
        Secretary shall require producers on a farm to submit 
        to the Secretary annual acreage reports with respect to 
        all cropland on the farm.
            (2) Production reports.--As a condition on the 
        receipt of any benefits under this subtitle or subtitle 
        B, the Secretary shall require producers on a farm that 
        receive payments under section 1105 to submit to the 
        Secretary annual production reports with respect to all 
        covered commodities and peanuts produced on the farm.
            (3) Penalties.--No penalty with respect to benefits 
        under this subtitle or subtitle B shall be assessed 
        against the producers on a farm for an inaccurate 
        acreage or production report unless the producers on 
        the farm knowingly and willfully falsified the acreage 
        or production report.
    (d) Tenants and Sharecroppers.--In carrying out this 
subtitle, the Secretary shall provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for 
the sharing of direct payments, counter-cyclical payments, or 
average crop revenue election payments among the producers on a 
farm on a fair and equitable basis.

SEC. 1107. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any 
commodity or crop may be planted on base acres on a farm.
    (b) Limitations Regarding Certain Commodities.--
            (1) General limitation.--The planting of an 
        agricultural commodity specified in paragraph (3) shall 
        be prohibited on base acres unless the commodity, if 
        planted, is destroyed before harvest.
            (2) Treatment of trees and other perennials.--The 
        planting of an agricultural commodity specified in 
        paragraph (3) that is produced on a tree or other 
        perennial plant shall be prohibited on base acres.
            (3) Covered agricultural commodities.--Paragraphs 
        (1) and (2) apply to the following agricultural 
        commodities:
                    (A) Fruits.
                    (B) Vegetables (other than mung beans and 
                pulse crops).
                    (C) Wild rice.
    (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) 
shall not limit the planting of an agricultural commodity 
specified in paragraph (3) of that subsection--
            (1) in any region in which there is a history of 
        double-cropping of covered commodities with 
        agricultural commodities specified in subsection 
        (b)(3), as determined by the Secretary, in which case 
        the double-cropping shall be permitted;
            (2) on a farm that the Secretary determines has a 
        history of planting agricultural commodities specified 
        in subsection (b)(3) on base acres, except that direct 
        payments and counter-cyclical payments shall be reduced 
        by an acre for each acre planted to such an 
        agricultural commodity; or
            (3) by the producers on a farm that the Secretary 
        determines has an established planting history of a 
        specific agricultural commodity specified in subsection 
        (b)(3), except that--
                    (A) the quantity planted may not exceed the 
                average annual planting history of such 
                agricultural commodity by the producers on the 
                farm in the 1991 through 1995 or 1998 through 
                2001 crop years (excluding any crop year in 
                which no plantings were made), as determined by 
                the Secretary; and
                    (B) direct payments and counter-cyclical 
                payments shall be reduced by an acre for each 
                acre planted to such agricultural commodity.
    (d) Planting Transferability Pilot Project.--
            (1) Pilot project authorized.--Notwithstanding 
        paragraphs (1) and (2) of subsection (b) and in 
        addition to the exceptions provided in subsection (c), 
        the Secretary shall carry out a pilot project to permit 
        the planting of cucumbers, green peas, lima beans, 
        pumpkins, snap beans, sweet corn, and tomatoes grown 
        for processing on base acres during each of the 2009 
        through 2012 crop years.
            (2) Pilot project states and acres.--The number of 
        base acres eligible during each crop year for the pilot 
        project under paragraph (1) shall be--
                    (A) 9,000 acres in the State of Illinois;
                    (B) 9,000 acres in the State of Indiana;
                    (C) 1,000 acres in the State of Iowa;
                    (D) 9,000 acres in the State of Michigan;
                    (E) 34,000 acres in the State of Minnesota;
                    (F) 4,000 acres in the State of Ohio; and
                    (G) 9,000 acres in the State of Wisconsin.
            (3) Contract and management requirements.--To be 
        eligible for selection to participate in the pilot 
        project, the producers on a farm shall--
                    (A) demonstrate to the Secretary that the 
                producers on the farm have entered into a 
                contract to produce a crop of a commodity 
                specified in paragraph (1) for processing;
                    (B) agree to produce the crop as part of a 
                program of crop rotation on the farm to achieve 
                agronomic and pest and disease management 
                benefits; and
                    (C) provide evidence of the disposition of 
                the crop.
            (4) Temporary reduction in base acres.--The base 
        acres on a farm for a crop year shall be reduced by an 
        acre for each acre planted under the pilot program.
            (5) Duration of reductions.--The reduction in the 
        base acres of a farm for a crop year under paragraph 
        (4) shall expire at the end of the crop year.
            (6) Recalculation of base acres.--
                    (A) In general.--If the Secretary 
                recalculates base acres for a farm while the 
                farm is included in the pilot project, the 
                planting and production of a crop of a 
                commodity specified in paragraph (1) on base 
                acres for which a temporary reduction was made 
                under this section shall be considered to be 
                the same as the planting and production of a 
                covered commodity.
                    (B) Prohibition.--Nothing in this paragraph 
                provides authority for the Secretary to 
                recalculate base acres for a farm.
            (7) Pilot impact evaluation.--
                    (A) In general.--The Secretary shall 
                periodically evaluate the pilot project 
                conducted under this subsection to determine 
                the effects of the pilot project on the supply 
                and price of--
                            (i) fresh fruits and vegetables; 
                        and
                            (ii) fruits and vegetables for 
                        processing.
                    (B) Determination.--An evaluation under 
                subparagraph (A) shall include a determination 
                as to whether--
                            (i) producers of fresh fruits and 
                        vegetables are being negatively 
                        impacted; and
                            (ii) existing production capacities 
                        are being supplanted.
                    (C) Report.--As soon as practicable after 
                conducting an evaluation under subparagraph 
                (A), the Secretary shall submit to the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate a report that describes the results of 
                the evaluation.

SEC. 1108. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.

    (a) Calculation Method.--Subject to subsections (b) and 
(c), for the purposes of determining the amount of the counter-
cyclical payments to be paid to the producers on a farm for 
long grain rice and medium grain rice under section 1104, the 
base acres of rice on the farm shall be apportioned using the 
4-year average of the percentages of acreage planted in the 
applicable State to long grain rice and medium grain rice 
during the 2003 through 2006 crop years, as determined by the 
Secretary.
    (b) Producer Election.--As an alternative to the 
calculation method described in subsection (a), the Secretary 
shall provide producers on a farm the opportunity to elect to 
apportion rice base acres on the farm using the 4-year average 
of--
            (1) the percentages of acreage planted on the farm 
        to long grain rice and medium grain rice during the 
        2003 through 2006 crop years;
            (2) the percentages of any acreage on the farm that 
        the producers were prevented from planting to long 
        grain rice and medium grain rice during the 2003 
        through 2006 crop years because of drought, flood, 
        other natural disaster, or other condition beyond the 
        control of the producers, as determined by the 
        Secretary; and
            (3) in the case of a crop year for which a producer 
        on a farm elected not to plant to long grain and medium 
        grain rice during the 2003 through 2006 crop years, the 
        percentages of acreage planted in the applicable State 
        to long grain rice and medium grain rice, as determined 
        by the Secretary.
    (c) Limitation.--In carrying out this section, the 
Secretary shall use the same total base acres, payment acres, 
and payment yields established with respect to rice under 
sections 1101 and 1102 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7911, 7912), as in effect on 
September 30, 2007, subject to any adjustment under section 
1101 of this Act.

SEC. 1109. PERIOD OF EFFECTIVENESS.

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

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

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

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2008 through 
        2012 crops of each loan commodity, the Secretary shall 
        make available to producers on a farm nonrecourse 
        marketing assistance loans for loan commodities 
        produced on the farm.
            (2) Terms and conditions.--The marketing assistance 
        loans shall be made under terms and conditions that are 
        prescribed by the Secretary and at the loan rate 
        established under section 1202 for the loan commodity.
    (b) Eligible Production.--The producers on a farm shall be 
eligible for a marketing assistance loan under subsection (a) 
for any quantity of a loan commodity produced on the farm.
    (c) Compliance With Conservation and Wetlands 
Requirements.--As a condition of the receipt of a marketing 
assistance loan under subsection (a), the producer shall comply 
with applicable conservation requirements under subtitle B of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.) and applicable wetland protection requirements under 
subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.) 
during the term of the loan.

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

    (a) 2008 Crop Year.--For purposes of the 2008 crop year, 
the loan rate for a marketing assistance loan under section 
1201 for a loan commodity shall be equal to the following:
            (1) In the case of wheat, $2.75 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.85 per bushel.
            (5) In the case of oats, $1.33 per bushel.
            (6) In the case of base quality of upland cotton, 
        $0.52 per pound.
            (7) In the case of extra long staple cotton, 
        $0.7977 per pound.
            (8) In the case of long grain rice, $6.50 per 
        hundredweight.
            (9) In the case of medium grain rice, $6.50 per 
        hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $9.30 per 
        hundredweight for each of the following kinds of 
        oilseeds:
                    (A) Sunflower seed.
                    (B) Rapeseed.
                    (C) Canola.
                    (D) Safflower.
                    (E) Flaxseed.
                    (F) Mustard seed.
                    (G) Crambe.
                    (H) Sesame seed.
                    (I) Other oilseeds designated by the 
                Secretary.
            (12) In the case of dry peas, $6.22 per 
        hundredweight.
            (13) In the case of lentils, $11.72 per 
        hundredweight.
            (14) In the case of small chickpeas, $7.43 per 
        hundredweight.
            (15) In the case of graded wool, $1.00 per pound.
            (16) In the case of nongraded wool, $0.40 per 
        pound.
            (17) In the case of mohair, $4.20 per pound.
            (18) In the case of honey, $0.60 per pound.
    (b) 2009 Crop Year.--Except as provided in section 1105, 
for purposes of the 2009 crop year, the loan rate for a 
marketing assistance loan under section 1201 for a loan 
commodity shall be equal to the following:
            (1) In the case of wheat, $2.75 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.85 per bushel.
            (5) In the case of oats, $1.33 per bushel.
            (6) In the case of base quality of upland cotton, 
        $0.52 per pound.
            (7) In the case of extra long staple cotton, 
        $0.7977 per pound.
            (8) In the case of long grain rice, $6.50 per 
        hundredweight.
            (9) In the case of medium grain rice, $6.50 per 
        hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $9.30 per 
        hundredweight for each of the following kinds of 
        oilseeds:
                    (A) Sunflower seed.
                    (B) Rapeseed.
                    (C) Canola.
                    (D) Safflower.
                    (E) Flaxseed.
                    (F) Mustard seed.
                    (G) Crambe.
                    (H) Sesame seed.
                    (I) Other oilseeds designated by the 
                Secretary.
            (12) In the case of dry peas, $5.40 per 
        hundredweight.
            (13) In the case of lentils, $11.28 per 
        hundredweight.
            (14) In the case of small chickpeas, $7.43 per 
        hundredweight.
            (15) In the case of large chickpeas, $11.28 per 
        hundredweight.
            (16) In the case of graded wool, $1.00 per pound.
            (17) In the case of nongraded wool, $0.40 per 
        pound.
            (18) In the case of mohair, $4.20 per pound.
            (19) In the case of honey, $0.60 per pound.
    (c) 2010 Through 2012 Crop Years.--Except as provided in 
section 1105, for purposes of each of the 2010 through 2012 
crop years, the loan rate for a marketing assistance loan under 
section 1201 for a loan commodity shall be equal to the 
following:
            (1) In the case of wheat, $2.94 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.95 per bushel.
            (5) In the case of oats, $1.39 per bushel.
            (6) In the case of base quality of upland cotton, 
        $0.52 per pound.
            (7) In the case of extra long staple cotton, 
        $0.7977 per pound.
            (8) In the case of long grain rice, $6.50 per 
        hundredweight.
            (9) In the case of medium grain rice, $6.50 per 
        hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $10.09 per 
        hundredweight for each of the following kinds of 
        oilseeds:
                    (A) Sunflower seed.
                    (B) Rapeseed.
                    (C) Canola.
                    (D) Safflower.
                    (E) Flaxseed.
                    (F) Mustard seed.
                    (G) Crambe.
                    (H) Sesame seed.
                    (I) Other oilseeds designated by the 
                Secretary.
            (12) In the case of dry peas, $5.40 per 
        hundredweight.
            (13) In the case of lentils, $11.28 per 
        hundredweight.
            (14) In the case of small chickpeas, $7.43 per 
        hundredweight.
            (15) In the case of large chickpeas, $11.28 per 
        hundredweight.
            (16) In the case of graded wool, $1.15 per pound.
            (17) In the case of nongraded wool, $0.40 per 
        pound.
            (18) In the case of mohair, $4.20 per pound.
            (19) In the case of honey, $0.69 per pound.
    (d) Single County Loan Rate for Other Oilseeds.--The 
Secretary shall establish a single loan rate in each county for 
each kind of other oilseeds described in subsections (a)(11), 
(b)(11), and (c)(11).

SEC. 1203. TERM OF LOANS.

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

SEC. 1204. REPAYMENT OF LOANS.

    (a) General Rule.--The Secretary shall permit the producers 
on a farm to repay a marketing assistance loan under section 
1201 for a loan commodity (other than upland cotton, long grain 
rice, medium grain rice, extra long staple cotton, and 
confectionery and each other kind of sunflower seed (other than 
oil sunflower seed)) at a rate that is the lesser of--
            (1) the loan rate established for the commodity 
        under section 1202, plus interest (determined in 
        accordance with section 163 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7283));
            (2) a rate (as determined by the Secretary) that--
                    (A) is calculated based on average market 
                prices for the loan commodity during the 
                preceding 30-day period; and
                    (B) will minimize discrepancies in 
                marketing loan benefits across State boundaries 
                and across county boundaries; or
            (3) a rate that the Secretary may develop using 
        alternative methods for calculating a repayment rate 
        for a loan commodity that the Secretary determines 
        will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of 
                the commodity by the Federal Government;
                    (C) minimize the cost incurred by the 
                Federal Government in storing the commodity;
                    (D) allow the commodity produced in the 
                United States to be marketed freely and 
                competitively, both domestically and 
                internationally; and
                    (E) minimize discrepancies in marketing 
                loan benefits across State boundaries and 
                across county boundaries.
    (b) Repayment Rates for Upland Cotton, Long Grain Rice, and 
Medium Grain Rice.--The Secretary shall permit producers to 
repay a marketing assistance loan under section 1201 for upland 
cotton, long grain rice, and medium grain rice at a rate that 
is the lesser of--
            (1) the loan rate established for the commodity 
        under section 1202, plus interest (determined in 
        accordance with section 163 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or
            (2) the prevailing world market price for the 
        commodity, as determined and adjusted by the Secretary 
        in accordance with this section.
    (c) Repayment Rates for Extra Long Staple Cotton.--
Repayment of a marketing assistance loan for extra long staple 
cotton shall be at the loan rate established for the commodity 
under section 1202, plus interest (determined in accordance 
with section 163 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7283)).
    (d) Prevailing World Market Price.--For purposes of this 
section and section 1207, the Secretary shall prescribe by 
regulation--
            (1) a formula to determine the prevailing world 
        market price for each of upland cotton, long grain 
        rice, and medium grain rice; and
            (2) a mechanism by which the Secretary shall 
        announce periodically those prevailing world market 
        prices.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton, Long Grain Rice, and Medium Grain Rice.--
            (1) Rice.--The prevailing world market price for 
        long grain rice and medium grain rice determined under 
        subsection (d) shall be adjusted to United States 
        quality and location.
            (2) Cotton.--The prevailing world market price for 
        upland cotton determined under subsection (d)--
                    (A) shall be adjusted to United States 
                quality and location, with the adjustment to 
                include--
                            (i) a reduction equal to any United 
                        States Premium Factor for upland cotton 
                        of a quality higher than Middling (M) 
                        1\3/32\-inch; and
                            (ii) the average costs to market 
                        the commodity, including average 
                        transportation costs, as determined by 
                        the Secretary; and
                    (B) may be further adjusted, during the 
                period beginning on the date of enactment of 
                this Act and ending on July 31, 2013, if the 
                Secretary determines the adjustment is 
                necessary to--
                            (i) minimize potential loan 
                        forfeitures;
                            (ii) minimize the accumulation of 
                        stocks of upland cotton by the Federal 
                        Government;
                            (iii) ensure that upland cotton 
                        produced in the United States can be 
                        marketed freely and competitively, both 
                        domestically and internationally; and
                            (iv) ensure an appropriate 
                        transition between current-crop and 
                        forward-crop price quotations, except 
                        that the Secretary may use forward-crop 
                        price quotations prior to July 31 of a 
                        marketing year only if--
                                    (I) there are insufficient 
                                current-crop price quotations; 
                                and
                                    (II) the forward-crop price 
                                quotation is the lowest such 
                                quotation available.
            (3) Guidelines for additional adjustments.--In 
        making adjustments under this subsection, the Secretary 
        shall establish a mechanism for determining and 
        announcing the adjustments in order to avoid undue 
        disruption in the United States market.
    (f) Repayment Rates for Confectionery and Other Kinds of 
Sunflower Seeds.--The Secretary shall permit the producers on a 
farm to repay a marketing assistance loan under section 1201 
for confectionery and each other kind of sunflower seed (other 
than oil sunflower seed) at a rate that is the lesser of--
            (1) the loan rate established for the commodity 
        under section 1202, plus interest (determined in 
        accordance with section 163 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or
            (2) the repayment rate established for oil 
        sunflower seed.
    (g) Payment of Cotton Storage Costs.--
            (1) 2008 through 2011 crop years.--Effective for 
        each of the 2008 through 2011 crop years, the Secretary 
        shall provide cotton storage payments in the same 
        manner, and at the same rates as the Secretary provided 
        storage payments for the 2006 crop of cotton, except 
        that the rates shall be reduced by 10 percent.
            (2) Subsequent crop years.--Beginning with the 2012 
        crop year, the Secretary shall provide cotton storage 
        payments in the same manner, and at the same rates as 
        the Secretary provided storage payments for the 2006 
        crop of cotton, except that the rates shall be reduced 
        by 20 percent.
    (h) Authority to Temporarily Adjust Repayment Rates.--
            (1) Adjustment authority.--In the event of a severe 
        disruption to marketing, transportation, or related 
        infrastructure, the Secretary may modify the repayment 
        rate otherwise applicable under this section for 
        marketing assistance loans under section 1201 for a 
        loan commodity.
            (2) Duration.--Any adjustment made under paragraph 
        (1) in the repayment rate for marketing assistance 
        loans for a loan commodity shall be in effect on a 
        short-term and temporary basis, as determined by the 
        Secretary.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

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

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

    (a) Eligible Producers.--
            (1) In general.--Effective for the 2008 through 
        2012 crop years, in the case of a producer that would 
        be eligible for a loan deficiency payment under section 
        1205 for wheat, barley, or oats, but that elects to use 
        acreage planted to the wheat, barley, or oats for the 
        grazing of livestock, the Secretary shall make a 
        payment to the producer under this section if the 
        producer enters into an agreement with the Secretary to 
        forgo any other harvesting of the wheat, barley, or 
        oats on that acreage.
            (2) Grazing of triticale acreage.--Effective for 
        the 2008 through 2012 crop years, with respect to a 
        producer on a farm that uses acreage planted to 
        triticale for the grazing of livestock, the Secretary 
        shall make a payment to the producer under this section 
        if the producer enters into an agreement with the 
        Secretary to forgo any other harvesting of triticale on 
        that acreage.
    (b) Payment Amount.--
            (1) In general.--The amount of a payment made under 
        this section to a producer on a farm described in 
        subsection (a)(1) shall be equal to the amount 
        determined by multiplying--
                    (A) the loan deficiency payment rate 
                determined under section 1205(c) in effect, as 
                of the date of the agreement, for the county in 
                which the farm is located; by
                    (B) the payment quantity determined by 
                multiplying--
                            (i) the quantity of the grazed 
                        acreage on the farm with respect to 
                        which the producer elects to forgo 
                        harvesting of wheat, barley, or oats; 
                        and
                            (ii) the payment yield in effect 
                        for the calculation of direct payments 
                        under subtitle A with respect to that 
                        loan commodity on the farm or, in the 
                        case of a farm without a payment yield 
                        for that loan commodity, an appropriate 
                        yield established by the Secretary in a 
                        manner consistent with section 1102 of 
                        the Farm Security and Rural Investment 
                        Act of 2002 (7 U.S.C. 7912).
            (2) Grazing of triticale acreage.--The amount of a 
        payment made under this section to a producer on a farm 
        described in subsection (a)(2) shall be equal to the 
        amount determined by multiplying--
                    (A) the loan deficiency payment rate 
                determined under section 1205(c) in effect for 
                wheat, as of the date of the agreement, for the 
                county in which the farm is located; by
                    (B) the payment quantity determined by 
                multiplying--
                            (i) the quantity of the grazed 
                        acreage on the farm with respect to 
                        which the producer elects to forgo 
                        harvesting of triticale; and
                            (ii) the payment yield in effect 
                        for the calculation of direct payments 
                        under subtitle A with respect to wheat 
                        on the farm or, in the case of a farm 
                        without a payment yield for wheat, an 
                        appropriate yield established by the 
                        Secretary in a manner consistent with 
                        section 1102 of the Farm Security and 
                        Rural Investment Act of 2002 (7 U.S.C. 
                        7912).
    (c) Time, Manner, and Availability of Payment.--
            (1) Time and manner.--A payment under this section 
        shall be made at the same time and in the same manner 
        as loan deficiency payments are made under section 
        1205.
            (2) Availability.--
                    (A) In general.--The Secretary shall 
                establish an availability period for the 
                payments authorized by this section.
                    (B) Certain commodities.--In the case of 
                wheat, barley, and oats, the availability 
                period shall be consistent with the 
                availability period for the commodity 
                established by the Secretary for marketing 
                assistance loans authorized by this subtitle.
    (d) Prohibition on Crop Insurance Indemnity or Noninsured 
Crop Assistance.--A 2008 through 2012 crop of wheat, barley, 
oats, or triticale planted on acreage that a producer elects, 
in the agreement required by subsection (a), to use for the 
grazing of livestock in lieu of any other harvesting of the 
crop shall not be eligible for an indemnity under a policy or 
plan of insurance authorized under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under 
section 196 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333).

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

    (a) Special Import Quota.--
            (1) Definition of special import quota.--In this 
        subsection, the term ``special import quota'' means a 
        quantity of imports that is not subject to the over-
        quota tariff rate of a tariff-rate quota.
            (2) Establishment.--
                    (A) In general.--The President shall carry 
                out an import quota program during the period 
                beginning on the date of enactment of this Act 
                through July 31, 2013, as provided in this 
                subsection.
                    (B) Program requirements.--Whenever the 
                Secretary determines and announces that for any 
                consecutive 4-week period, the Friday through 
                Thursday average price quotation for the 
                lowest-priced United States growth, as quoted 
                for Middling (M) 1\3/32\-inch cotton, delivered 
                to a definable and significant international 
                market, as determined by the Secretary, exceeds 
                the prevailing world market price, there shall 
                immediately be in effect a special import 
                quota.
            (3) Quantity.--The quota shall be equal to 1 week's 
        consumption of cotton by domestic mills at the 
        seasonally adjusted average rate of the most recent 3 
        months for which data are available.
            (4) Application.--The quota shall apply to upland 
        cotton purchased not later than 90 days after the date 
        of the Secretary's announcement under paragraph (2) and 
        entered into the United States not later than 180 days 
        after that date.
            (5) Overlap.--A special quota period may be 
        established that overlaps any existing quota period if 
        required by paragraph (2), except that a special quota 
        period may not be established under this subsection if 
        a quota period has been established under subsection 
        (b).
            (6) Preferential tariff treatment.--The quantity 
        under a special import quota shall be considered to be 
        an in-quota quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin 
                Economic Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade 
                Preference Act (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 
                (19 U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized 
                Tariff Schedule.
            (7) Limitation.--The quantity of cotton entered 
        into the United States during any marketing year under 
        the special import quota established under this 
        subsection may not exceed the equivalent of 10 week's 
        consumption of upland cotton by domestic mills at the 
        seasonally adjusted average rate of the 3 months 
        immediately preceding the first special import quota 
        established in any marketing year.
    (b) Limited Global Import Quota for Upland Cotton.--
            (1) Definitions.--In this subsection:
                    (A) Supply.--The term ``supply'' means, 
                using the latest official data of the Bureau of 
                the Census, the Department of Agriculture, and 
                the Department of the Treasury--
                            (i) the carry-over of upland cotton 
                        at the beginning of the marketing year 
                        (adjusted to 480-pound bales) in which 
                        the quota is established;
                            (ii) production of the current 
                        crop; and
                            (iii) imports to the latest date 
                        available during the marketing year.
                    (B) Demand.--The term ``demand'' means--
                            (i) the average seasonally adjusted 
                        annual rate of domestic mill 
                        consumption of cotton during the most 
                        recent 3 months for which data are 
                        available; and
                            (ii) the larger of--
                                    (I) average exports of 
                                upland cotton during the 
                                preceding 6 marketing years; or
                                    (II) cumulative exports of 
                                upland cotton plus outstanding 
                                export sales for the marketing 
                                year in which the quota is 
                                established.
                    (C) Limited global import quota.--The term 
                ``limited global import quota'' means a 
                quantity of imports that is not subject to the 
                over-quota tariff rate of a tariff-rate quota.
            (2) Program.--The President shall carry out an 
        import quota program that provides that whenever the 
        Secretary determines and announces that the average 
        price of the base quality of upland cotton, as 
        determined by the Secretary, in the designated spot 
        markets for a month exceeded 130 percent of the average 
        price of the quality of cotton in the markets for the 
        preceding 36 months, notwithstanding any other 
        provision of law, there shall immediately be in effect 
        a limited global import quota subject to the following 
        conditions:
                    (A) Quantity.--The quantity of the quota 
                shall be equal to 21 days of domestic mill 
                consumption of upland cotton at the seasonally 
                adjusted average rate of the most recent 3 
                months for which data are available or as 
                estimated by the Secretary.
                    (B) Quantity if prior quota.--If a quota 
                has been established under this subsection 
                during the preceding 12 months, the quantity of 
                the quota next established under this 
                subsection shall be the smaller of 21 days of 
                domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to 
                increase the supply to 130 percent of the 
                demand.
                    (C) Preferential tariff treatment.--The 
                quantity under a limited global import quota 
                shall be considered to be an in-quota quantity 
                for purposes of--
                            (i) section 213(d) of the Caribbean 
                        Basin Economic Recovery Act (19 U.S.C. 
                        2703(d));
                            (ii) section 204 of the Andean 
                        Trade Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade 
                        Act of 1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Quota entry period.--When a quota is 
                established under this subsection, cotton may 
                be entered under the quota during the 90-day 
                period beginning on the date the quota is 
                established by the Secretary.
            (3) No overlap.--Notwithstanding paragraph (2), a 
        quota period may not be established that overlaps an 
        existing quota period or a special quota period 
        established under subsection (a).
    (c) Economic Adjustment Assistance to Users of Upland 
Cotton.--
            (1) In general.--Subject to paragraph (2), the 
        Secretary shall, on a monthly basis, provide economic 
        adjustment assistance to domestic users of upland 
        cotton in the form of payments for all documented use 
        of that upland cotton during the previous monthly 
        period regardless of the origin of the upland cotton.
            (2) Value of assistance.--
                    (A) Beginning period.--During the period 
                beginning on August 1, 2008, and ending on July 
                31, 2012, the value of the assistance provided 
                under paragraph (1) shall be 4 cents per pound.
                    (B) Subsequent period.--Effective beginning 
                on August 1, 2012, the value of the assistance 
                provided under paragraph (1) shall be 3 cents 
                per pound.
            (3) Allowable purposes.--Economic adjustment 
        assistance under this subsection shall be made 
        available only to domestic users of upland cotton that 
        certify that the assistance shall be used only to 
        acquire, construct, install, modernize, develop, 
        convert, or expand land, plant, buildings, equipment, 
        facilities, or machinery.
            (4) Review or audit.--The Secretary may conduct 
        such review or audit of the records of a domestic user 
        under this subsection as the Secretary determines 
        necessary to carry out this subsection.
            (5) Improper use of assistance.--If the Secretary 
        determines, after a review or audit of the records of 
        the domestic user, that economic adjustment assistance 
        under this subsection was not used for the purposes 
        specified in paragraph (3), the domestic user shall 
        be--
                    (A) liable to repay the assistance to the 
                Secretary, plus interest, as determined by the 
                Secretary; and
                    (B) ineligible to receive assistance under 
                this subsection for a period of 1 year 
                following the determination of the Secretary.

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

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

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

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

SEC. 1210. ADJUSTMENTS OF LOANS.

    (a) Adjustment Authority.--Subject to subsection (e), the 
Secretary may make appropriate adjustments in the loan rates 
for any loan commodity (other than cotton) for differences in 
grade, type, quality, location, and other factors.
    (b) Manner of Adjustment.--The adjustments under subsection 
(a) shall, to the maximum extent practicable, be made in such a 
manner that the average loan level for the commodity will, on 
the basis of the anticipated incidence of the factors, be equal 
to the level of support determined in accordance with this 
subtitle and subtitles B through E.
    (c) Adjustment on County Basis.--
            (1) In general.--The Secretary may establish loan 
        rates for a crop for producers in individual counties 
        in a manner that results in the lowest loan rate being 
        95 percent of the national average loan rate, if those 
        loan rates do not result in an increase in outlays.
            (2) Prohibition.--Adjustments under this subsection 
        shall not result in an increase in the national average 
        loan rate for any year.
    (d) Adjustment in Loan Rate for Cotton.--
            (1) In general.--The Secretary may make appropriate 
        adjustments in the loan rate for cotton for differences 
        in quality factors.
            (2) Revisions to quality adjustments for upland 
        cotton.--
                    (A) In general.--Not later than 180 days 
                after the date of enactment of this Act, the 
                Secretary shall implement revisions in the 
                administration of the marketing assistance loan 
                program for upland cotton to more accurately 
                and efficiently reflect market values for 
                upland cotton.
                    (B) Mandatory revisions.--Revisions under 
                subparagraph (A) shall include--
                            (i) the elimination of warehouse 
                        location differentials;
                            (ii) the establishment of 
                        differentials for the various quality 
                        factors and staple lengths of cotton 
                        based on a 3-year, weighted moving 
                        average of the weighted designated spot 
                        market regions, as determined by 
                        regional production;
                            (iii) the elimination of any 
                        artificial split in the premium or 
                        discount between upland cotton with a 
                        32 or 33 staple length due to 
                        micronaire; and
                            (iv) a mechanism to ensure that no 
                        premium or discount is established that 
                        exceeds the premium or discount 
                        associated with a leaf grade that is 1 
                        better than the applicable color grade.
                    (C) Discretionary revisions.--Revisions 
                under subparagraph (A) may include--
                            (i) the use of non-spot market 
                        price data, in addition to spot market 
                        price data, that would enhance the 
                        accuracy of the price information used 
                        in determining quality adjustments 
                        under this subsection;
                            (ii) adjustments in the premiums or 
                        discounts associated with upland cotton 
                        with a staple length of 33 or above due 
                        to micronaire with the goal of 
                        eliminating any unnecessary artificial 
                        splits in the calculations of the 
                        premiums or discounts; and
                            (iii) such other adjustments as the 
                        Secretary determines appropriate, after 
                        consultations conducted in accordance 
                        with paragraph (3).
            (3) Consultation with private sector.--
                    (A) Prior to revision.--In making 
                adjustments to the loan rate for cotton 
                (including any review of the adjustments) as 
                provided in this subsection, the Secretary 
                shall consult with representatives of the 
                United States cotton industry.
                    (B) Inapplicability of federal advisory 
                committee act.--The Federal Advisory Committee 
                Act (5 U.S.C. App.) shall not apply to 
                consultations under this subsection.
            (4) Review of adjustments.--The Secretary may 
        review the operation of the upland cotton quality 
        adjustments implemented pursuant to this subsection and 
        may make further revisions to the administration of the 
        loan program for upland cotton, by--
                    (A) revoking or revising any actions taken 
                under paragraph (2)(B); or
                    (B) revoking or revising any actions taken 
                or authorized to be taken under paragraph 
                (2)(C).
    (e) Rice.--The Secretary shall not make adjustments in the 
loan rates for long grain rice and medium grain rice, except 
for differences in grade and quality (including milling 
yields).

                          Subtitle C--Peanuts

SEC. 1301. DEFINITIONS.

    In this subtitle:
            (1) Base acres for peanuts.--
                    (A) In general.--The term ``base acres for 
                peanuts'' means the number of acres assigned to 
                a farm pursuant to section 1302 of the Farm 
                Security and Rural Investment Act of 2002 (7 
                U.S.C. 7952), as in effect on September 30, 
                2007, subject to any adjustment under section 
                1302 of this Act.
                    (B) Covered commodities.--The term ``base 
                acres'', with respect to a covered commodity, 
                has the meaning given the term in section 1101.
            (2) Counter-cyclical payment.--The term ``counter-
        cyclical payment'' means a payment made to producers on 
        a farm under section 1304.
            (3) Direct payment.--The term ``direct payment'' 
        means a direct payment made to producers on a farm 
        under section 1303.
            (4) Effective price.--The term ``effective price'' 
        means the price calculated by the Secretary under 
        section 1304 for peanuts to determine whether counter-
        cyclical payments are required to be made under that 
        section for a crop year.
            (5) Payment acres.--The term ``payment acres'' 
        means, in the case of direct payments and counter-
        cyclical payments--
                    (A) except as provided in subparagraph (B), 
                85 percent of the base acres of peanuts on a 
                farm on which direct payments or counter-
                cyclical payments are made; and
                    (B) in the case of direct payments for each 
                of the 2009 through 2011 crop years, 83.3 
                percent of the base acres for peanuts on a farm 
                on which direct payments are made.
            (6) Payment yield.--The term ``payment yield'' 
        means the yield established for direct payments and the 
        yield established for counter-cyclical payments under 
        section 1302 of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 7952), as in effect on September 
        30, 2007, for a farm for peanuts.
            (7) Producer.--
                    (A) In general.--The term ``producer'' 
                means an owner, operator, landlord, tenant, or 
                sharecropper that shares in the risk of 
                producing a crop on a farm and is entitled to 
                share in the crop available for marketing from 
                the farm, or would have shared had the crop 
                been produced.
                    (B) Hybrid seed.--In determining whether a 
                grower of hybrid seed is a producer, the 
                Secretary shall--
                            (i) not take into consideration the 
                        existence of a hybrid seed contract; 
                        and
                            (ii) ensure that program 
                        requirements do not adversely affect 
                        the ability of the grower to receive a 
                        payment under this subtitle.
            (8) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of 
                the United States.
            (9) Target price.--The term ``target price'' means 
        the price per ton of peanuts used to determine the 
        payment rate for counter-cyclical payments.
            (10) United states.--The term ``United States'', 
        when used in a geographical sense, means all of the 
        States.

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

    (a) Adjustment of Base Acreage for Peanuts.--
            (1) In general.--The Secretary shall provide for an 
        adjustment, as appropriate, in the base acres for 
        peanuts for a farm whenever any of the following 
        circumstances occur:
                    (A) A conservation reserve contract entered 
                into under section 1231 of the Food Security 
                Act of 1985 (16 U.S.C. 3831) with respect to 
                the farm expires or is voluntarily terminated, 
                or was terminated or expired during the period 
                beginning on October 1, 2007, and ending on the 
                date of enactment of this Act.
                    (B) Cropland is released from coverage 
                under a conservation reserve contract by the 
                Secretary, or was released during the period 
                beginning on October 1, 2007, and ending on the 
                date of enactment of this Act.
                    (C) The producer has eligible pulse crop 
                acreage, which shall be determined in the same 
                manner as eligible oilseed acreage under 
                section 1101(a)(2) of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 
                7911(a)(2)).
                    (D) The producer has eligible oilseed 
                acreage as the result of the Secretary 
                designating additional oilseeds, which shall be 
                determined in the same manner as eligible 
                oilseed acreage under section 1101(a)(2) of the 
                Farm Security and Rural Investment Act of 2002 
                (7 U.S.C. 7911(a)(2)).
            (2) Special conservation reserve acreage payment 
        rules.--For the crop year in which a base acres for 
        peanuts adjustment under subparagraph (A) or (B) of 
        paragraph (1) is first made, the owner of the farm 
        shall elect to receive either direct payments and 
        counter-cyclical payments with respect to the acreage 
        added to the farm under this subsection or a prorated 
        payment under the conservation reserve contract, but 
        not both.
    (b) Prevention of Excess Base Acres for Peanuts.--
            (1) Required reduction.--If the sum of the base 
        acres for peanuts for a farm, together with the acreage 
        described in paragraph (2), exceeds the actual cropland 
        acreage of the farm, the Secretary shall reduce the 
        base acres for peanuts for the farm or the base acres 
        for 1 or more covered commodities for the farm so that 
        the sum of the base acres for peanuts and acreage 
        described in paragraph (2) does not exceed the actual 
        cropland acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), 
        the Secretary shall include the following:
                    (A) Any base acres for the farm for a 
                covered commodity.
                    (B) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands 
                reserve program under chapter 1 of subtitle D 
                of title XII of the Food Security Act of 1985 
                (16 U.S.C. 3830 et seq.).
                    (C) Any other acreage on the farm enrolled 
                in a Federal conservation program for which 
                payments are made in exchange for not producing 
                an agricultural commodity on the acreage.
                    (D) Any eligible pulse crop acreage, which 
                shall be determined in the same manner as 
                eligible oilseed acreage under section 
                1101(a)(2) of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
                    (E) If the Secretary designates additional 
                oilseeds, any eligible oilseed acreage, which 
                shall be determined in the same manner as 
                eligible oilseed acreage under section 
                1101(a)(2) of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
            (3) Selection of acres.--The Secretary shall give 
        the owner of the farm the opportunity to select the 
        base acres for peanuts or the base acres for covered 
        commodities against which the reduction required by 
        paragraph (1) will be made.
            (4) Exception for double-cropped acreage.--In 
        applying paragraph (1), the Secretary shall make an 
        exception in the case of double cropping, as determined 
        by the Secretary.
            (5) Coordinated application of requirements.--The 
        Secretary shall take into account section 1101(b) when 
        applying the requirements of this subsection.
    (c) Reduction in Base Acres.--
            (1) Reduction at option of owner.--
                    (A) In general.--The owner of a farm may 
                reduce, at any time, the base acres for peanuts 
                for the farm.
                    (B) Effect of reduction.--A reduction under 
                subparagraph (A) shall be permanent and made in 
                a manner prescribed by the Secretary.
            (2) Required action by secretary.--
                    (A) In general.--The Secretary shall 
                proportionately reduce base acres on a farm for 
                peanuts for land that has been subdivided and 
                developed for multiple residential units or 
                other nonfarming uses if the size of the tracts 
                and the density of the subdivision is such that 
                the land is unlikely to return to the previous 
                agricultural use, unless the producers on the 
                farm demonstrate that the land--
                            (i) remains devoted to commercial 
                        agricultural production; or
                            (ii) is likely to be returned to 
                        the previous agricultural use.
                    (B) Requirement.--The Secretary shall 
                establish procedures to identify land described 
                in subparagraph (A).
            (3) Review and report.--Each year, to ensure, to 
        the maximum extent practicable, that payments are 
        received only by producers, the Secretary shall submit 
        to Congress a report that describes the results of the 
        actions taken under paragraph (2).
    (d) Treatment of Farms With Limited Base Acres.--
            (1) Prohibition on payments.--Except as provided in 
        paragraph (2) and notwithstanding any other provision 
        of this title, a producer on a farm may not receive 
        direct payments, counter-cyclical payments, or average 
        crop revenue election payments if the sum of the base 
        acres of the farm is 10 acres or less, as determined by 
        the Secretary.
            (2) Exceptions.--Paragraph (1) shall not apply to a 
        farm owned by--
                    (A) a socially disadvantaged farmer or 
                rancher (as defined in section 355(e) of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 2003(e)); or
                    (B) a limited resource farmer or rancher, 
                as defined by the Secretary.
            (3) Data collection and publication.--The Secretary 
        shall--
                    (A) collect and publish segregated data and 
                survey information about the farm profiles, 
                utilization of land, and crop production; and
                    (B) perform an evaluation on the supply and 
                price of fruits and vegetables based on the 
                effects of suspension of base acres under this 
                section.

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

    (a) Payment Required.--For each of the 2008 through 2012 
crop years for peanuts, the Secretary shall make direct 
payments to the producers on a farm for which a payment yield 
and base acres for peanuts are established.
    (b) Payment Rate.--Except as provided in section 1105, the 
payment rate used to make direct payments with respect to 
peanuts for a crop year shall be equal to $36 per ton.
    (c) Payment Amount.--The amount of the direct payment to be 
paid to the producers on a farm for peanuts for a crop year 
shall be equal to the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
    (d) Time for Payment.--
            (1) In general.--Except as provided in paragraph 
        (2), in the case of each of the 2008 through 2012 crop 
        years, the Secretary may not make direct payments under 
        this section before October 1 of the calendar year in 
        which the crop is harvested.
            (2) Advance payments.--
                    (A) Option.--
                            (i) In general.--At the option of 
                        the producers on a farm, the Secretary 
                        shall pay in advance up to 22 percent 
                        of the direct payment for peanuts for 
                        any of the 2008 through 2011 crop years 
                        to the producers on a farm.
                            (ii) 2008 crop year.--If the 
                        producers on a farm elect to receive 
                        advance direct payments under clause 
                        (i) for peanuts for the 2008 crop year, 
                        as soon as practicable after the 
                        election, the Secretary shall make the 
                        advance direct payment to the producers 
                        on the farm.
                    (B) Month.--
                            (i) Selection.--Subject to clauses 
                        (ii) and (iii), the producers on a farm 
                        shall select the month during which the 
                        advance payment for a crop year will be 
                        made.
                            (ii) Options.--The month selected 
                        may be any month during the period--
                                    (I) beginning on December 1 
                                of the calendar year before the 
                                calendar year in which the crop 
                                of peanuts is harvested; and
                                    (II) ending during the 
                                month within which the direct 
                                payment would otherwise be 
                                made.
                            (iii) Change.--The producers on a 
                        farm may change the selected month for 
                        a subsequent advance payment by 
                        providing advance notice to the 
                        Secretary.
            (3) Repayment of advance payments.--If a producer 
        on a farm that receives an advance direct payment for a 
        crop year ceases to be a producer on that farm, or the 
        extent to which the producer shares in the risk of 
        producing a crop changes, before the date the remainder 
        of the direct payment is made, the producer shall be 
        responsible for repaying the Secretary the applicable 
        amount of the advance payment, as determined by the 
        Secretary.

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

    (a) Payment Required.--Except as provided in section 1105, 
for each of the 2008 through 2012 crop years for peanuts, the 
Secretary shall make counter-cyclical payments to producers on 
farms for which payment yields and base acres for peanuts are 
established if the Secretary determines that the effective 
price for peanuts is less than the target price for peanuts.
    (b) Effective Price.--For purposes of subsection (a), the 
effective price for peanuts is equal to the sum of the 
following:
            (1) The higher of the following:
                    (A) The national average market price for 
                peanuts received by producers during the 12-
                month marketing year for peanuts, as determined 
                by the Secretary.
                    (B) The national average loan rate for a 
                marketing assistance loan for peanuts in effect 
                for the applicable period under this subtitle.
            (2) The payment rate in effect for peanuts under 
        section 1303 for the purpose of making direct payments.
    (c) Target Price.--For purposes of subsection (a), the 
target price for peanuts shall be equal to $495 per ton.
    (d) Payment Rate.--The payment rate used to make counter-
cyclical payments for a crop year shall be equal to the 
difference between--
            (1) the target price for peanuts; and
            (2) the effective price determined under subsection 
        (b) for peanuts.
    (e) Payment Amount.--If counter-cyclical payments are 
required to be paid for any of the 2008 through 2012 crops of 
peanuts, the amount of the counter-cyclical payment to be paid 
to the producers on a farm for that crop year shall be equal to 
the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
    (f) Time for Payments.--
            (1) General rule.--Except as provided in paragraph 
        (2), if the Secretary determines under subsection (a) 
        that counter-cyclical payments are required to be made 
        under this section for a crop of peanuts, beginning 
        October 1, or as soon as practicable after the end of 
        the marketing year, the Secretary shall make the 
        counter-cyclical payments for the crop.
            (2) Availability of partial payments.--
                    (A) In general.--If, before the end of the 
                12-month marketing year, the Secretary 
                estimates that counter-cyclical payments will 
                be required under this section for a crop year, 
                the Secretary shall give producers on a farm 
                the option to receive partial payments of the 
                counter-cyclical payment projected to be made 
                for the crop.
                    (B) Election.--
                            (i) In general.--The Secretary 
                        shall allow producers on a farm to make 
                        an election to receive partial payments 
                        under subparagraph (A) at any time but 
                        not later than 60 days prior to the end 
                        of the marketing year for the crop.
                            (ii) Date of issuance.--The 
                        Secretary shall issue the partial 
                        payment after the date of an 
                        announcement by the Secretary but not 
                        later than 30 days prior to the end of 
                        the marketing year.
            (3) Time for partial payments.--When the Secretary 
        makes partial payments for any of the 2008 through 2010 
        crop years--
                    (A) the first partial payment shall be made 
                after completion of the first 180 days of the 
                marketing year for that crop; and
                    (B) the final partial payment shall be made 
                beginning October 1, or as soon as practicable 
                thereafter, after the end of the applicable 
                marketing year for that crop.
            (4) Amount of partial payments.--
                    (A) First partial payment.--For each of the 
                2008 through 2010 crop years, the first partial 
                payment under paragraph (3) to the producers on 
                a farm may not exceed 40 percent of the 
                projected counter-cyclical payment for the crop 
                year, as determined by the Secretary.
                    (B) Final payment.--The final payment for a 
                crop year shall be equal to the difference 
                between--
                            (i) the actual counter-cyclical 
                        payment to be made to the producers for 
                        that crop year; and
                            (ii) the amount of the partial 
                        payment made to the producers under 
                        subparagraph (A).
            (5) Repayment.--The producers on a farm that 
        receive a partial payment under this subsection for a 
        crop year shall repay to the Secretary the amount, if 
        any, by which the total of the partial payments exceed 
        the actual counter-cyclical payment to be made for that 
        crop year.

SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF 
                    PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm 
        may receive direct payments or counter-cyclical 
        payments under this subtitle, or average crop revenue 
        election payments under section 1105, with respect to 
        the farm, the producers shall agree, during the crop 
        year for which the payments are made and in exchange 
        for the payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3811 
                et seq.);
                    (B) to comply with applicable wetland 
                protection requirements under subtitle C of 
                title XII of that Act (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 1306;
                    (D) to use the land on the farm, in a 
                quantity equal to the attributable base acres 
                for peanuts and any base acres for the farm 
                under subtitle A, for an agricultural or 
                conserving use, and not for a nonagricultural 
                commercial, industrial, or residential use, as 
                determined by the Secretary; and
                    (E) to effectively control noxious weeds 
                and otherwise maintain the land in accordance 
                with sound agricultural practices, as 
                determined by the Secretary, if the 
                agricultural or conserving use involves the 
                noncultivation of any portion of the land 
                referred to in subparagraph (D).
            (2) Compliance.--The Secretary may issue such rules 
        as the Secretary considers necessary to ensure producer 
        compliance with the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee 
        or owner, the Secretary may modify the requirements of 
        this subsection if the modifications are consistent 
        with the objectives of this subsection, as determined 
        by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--
                    (A) In general.--Except as provided in 
                paragraph (2), a transfer of (or change in) the 
                interest of the producers on a farm in the base 
                acres for peanuts for which direct payments or 
                counter-cyclical payments are made, or on which 
                average crop revenue election payments are 
                based, shall result in the termination of the 
                direct payments, counter-cyclical payments, or 
                average crop revenue election payments to the 
                extent the payments are made or based on the 
                base acres, unless the transferee or owner of 
                the acreage agrees to assume all obligations 
                under subsection (a).
                    (B) Effective date.--The termination shall 
                take effect on the date determined by the 
                Secretary.
            (2) Exception.--If a producer entitled to a direct 
        payment, counter-cyclical payment, or average crop 
        revenue election payment dies, becomes incompetent, or 
        is otherwise unable to receive the payment, the 
        Secretary shall make the payment, in accordance with 
        rules issued by the Secretary.
    (c) Acreage Reports.--
            (1) In general.--As a condition on the receipt of 
        any benefits under this subtitle, the Secretary shall 
        require producers on a farm to submit to the Secretary 
        annual acreage reports with respect to all cropland on 
        the farm.
            (2) Penalties.--No penalty with respect to benefits 
        under this subtitle shall be assessed against the 
        producers on a farm for an inaccurate acreage report 
        unless the producers on the farm knowingly and 
        willfully falsified the acreage report.
    (d) Tenants and Sharecroppers.--In carrying out this 
subtitle, the Secretary shall provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for 
the sharing of direct payments, counter-cyclical payments, or 
average crop revenue election payments under section 1105 among 
the producers on a farm on a fair and equitable basis.

SEC. 1306. PLANTING FLEXIBILITY.

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

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

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2008 through 
        2012 crops of peanuts, the Secretary shall make 
        available to producers on a farm nonrecourse marketing 
        assistance loans for peanuts produced on the farm.
            (2) Terms and conditions.--The loans shall be made 
        under terms and conditions that are prescribed by the 
        Secretary and at the loan rate established under 
        subsection (b).
            (3) Eligible production.--The producers on a farm 
        shall be eligible for a marketing assistance loan under 
        this subsection for any quantity of peanuts produced on 
        the farm.
            (4) Options for obtaining loan.--A marketing 
        assistance loan under this subsection, and loan 
        deficiency payments under subsection (e), may be 
        obtained at the option of the producers on a farm 
        through--
                    (A) a designated marketing association or 
                marketing cooperative of producers that is 
                approved by the Secretary; or
                    (B) the Farm Service Agency.
            (5) Storage of loan peanuts.--As a condition on the 
        Secretary's approval of an individual or entity to 
        provide storage for peanuts for which a marketing 
        assistance loan is made under this section, the 
        individual or entity shall agree--
                    (A) to provide such storage on a 
                nondiscriminatory basis; and
                    (B) to comply with such additional 
                requirements as the Secretary considers 
                appropriate to accomplish the purposes of this 
                section and promote fairness in the 
                administration of the benefits of this section.
            (6) Storage, handling, and associated costs.--
                    (A) In general.--Beginning with the 2008 
                crop of peanuts, to ensure proper storage of 
                peanuts for which a loan is made under this 
                section, the Secretary shall pay handling and 
                other associated costs (other than storage 
                costs) incurred at the time at which the 
                peanuts are placed under loan, as determined by 
                the Secretary.
                    (B) Redemption and forfeiture.--The 
                Secretary shall--
                            (i) require the repayment of 
                        handling and other associated costs 
                        paid under subparagraph (A) for all 
                        peanuts pledged as collateral for a 
                        loan that is redeemed under this 
                        section; and
                            (ii) pay storage, handling, and 
                        other associated costs for all peanuts 
                        pledged as collateral that are 
                        forfeited under this section.
            (7) Marketing.--A marketing association or 
        cooperative may market peanuts for which a loan is made 
        under this section in any manner that conforms to 
        consumer needs, including the separation of peanuts by 
        type and quality.
    (b) Loan Rate.--Except as provided in section 1105, the 
loan rate for a marketing assistance loan for peanuts under 
subsection (a) shall be equal to $355 per ton.
    (c) Term of Loan.--
            (1) In general.--A marketing assistance loan for 
        peanuts under subsection (a) shall have a term of 9 
        months beginning on the first day of the first month 
        after the month in which the loan is made.
            (2) Extensions prohibited.--The Secretary may not 
        extend the term of a marketing assistance loan for 
        peanuts under subsection (a).
    (d) Repayment Rate.--
            (1) In general.--The Secretary shall permit 
        producers on a farm to repay a marketing assistance 
        loan for peanuts under subsection (a) at a rate that is 
        the lesser of--
                    (A) the loan rate established for peanuts 
                under subsection (b), plus interest (determined 
                in accordance with section 163 of the Federal 
                Agriculture Improvement and Reform Act of 1996 
                (7 U.S.C. 7283)); or
                    (B) a rate that the Secretary determines 
                will--
                            (i) minimize potential loan 
                        forfeitures;
                            (ii) minimize the accumulation of 
                        stocks of peanuts by the Federal 
                        Government;
                            (iii) minimize the cost incurred by 
                        the Federal Government in storing 
                        peanuts; and
                            (iv) allow peanuts produced in the 
                        United States to be marketed freely and 
                        competitively, both domestically and 
                        internationally.
            (2) Authority to temporarily adjust repayment 
        rates.--
                    (A) Adjustment authority.--In the event of 
                a severe disruption to marketing, 
                transportation, or related infrastructure, the 
                Secretary may modify the repayment rate 
                otherwise applicable under this subsection for 
                marketing assistance loans for peanuts under 
                subsection (a).
                    (B) Duration.--An adjustment made under 
                subparagraph (A) in the repayment rate for 
                marketing assistance loans for peanuts shall be 
                in effect on a short-term and temporary basis, 
                as determined by the Secretary.
    (e) Loan Deficiency Payments.--
            (1) Availability.--The Secretary may make loan 
        deficiency payments available to producers on a farm 
        that, although eligible to obtain a marketing 
        assistance loan for peanuts under subsection (a), agree 
        to forgo obtaining the loan for the peanuts in return 
        for loan deficiency payments under this subsection.
            (2) Computation.--A loan deficiency payment under 
        this subsection shall be computed by multiplying--
                    (A) the payment rate determined under 
                paragraph (3) for peanuts; by
                    (B) the quantity of the peanuts produced by 
                the producers, excluding any quantity for which 
                the producers obtain a marketing assistance 
                loan under subsection (a).
            (3) Payment rate.--For purposes of this subsection, 
        the payment rate shall be the amount by which--
                    (A) the loan rate established under 
                subsection (b); exceeds
                    (B) the rate at which a loan may be repaid 
                under subsection (d).
            (4) Effective date for payment rate 
        determination.--The Secretary shall determine the 
        amount of the loan deficiency payment to be made under 
        this subsection to the producers on a farm with respect 
        to a quantity of peanuts using the payment rate in 
        effect under paragraph (3) as of the date the producers 
        request the payment.
    (f) Compliance With Conservation and Wetlands 
Requirements.--As a condition of the receipt of a marketing 
assistance loan under subsection (a), the producer shall comply 
with applicable conservation requirements under subtitle B of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.) and applicable wetland protection requirements under 
subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.) 
during the term of the loan.
    (g) Reimbursable Agreements and Payment of Administrative 
Expenses.--The Secretary may implement any reimbursable 
agreements or provide for the payment of administrative 
expenses under this subtitle only in a manner that is 
consistent with such activities in regard to other commodities.

SEC. 1308. ADJUSTMENTS OF LOANS.

    (a) Adjustment Authority.--The Secretary may make 
appropriate adjustments in the loan rates for peanuts for 
differences in grade, type, quality, location, and other 
factors.
    (b) Manner of Adjustment.--The adjustments under subsection 
(a) shall, to the maximum extent practicable, be made in such a 
manner that the average loan level for peanuts will, on the 
basis of the anticipated incidence of the factors, be equal to 
the level of support determined in accordance with this 
subtitle and subtitles B, D, and E.
    (c) Adjustment on County Basis.--
            (1) In general.--Subject to paragraph (2), the 
        Secretary may establish loan rates for a crop of 
        peanuts for producers in individual counties in a 
        manner that results in the lowest loan rate being 95 
        percent of the national average loan rate, if those 
        loan rates do not result in an increase in outlays.
            (2) Prohibition.--Adjustments under this subsection 
        shall not result in an increase in the national average 
        loan rate for any year.

                           Subtitle D--Sugar

SEC. 1401. SUGAR PROGRAM.

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

``SEC. 156. SUGAR PROGRAM.

    ``(a) Sugarcane.--The Secretary shall make loans available 
to processors of domestically grown sugarcane at a rate equal 
to--
            ``(1) 18.00 cents per pound for raw cane sugar for 
        the 2008 crop year;
            ``(2) 18.25 cents per pound for raw cane sugar for 
        the 2009 crop year;
            ``(3) 18.50 cents per pound for raw cane sugar for 
        the 2010 crop year;
            ``(4) 18.75 cents per pound for raw cane sugar for 
        the 2011 crop year; and
            ``(5) 18.75 cents per pound for raw cane sugar for 
        the 2012 crop year.
    ``(b) Sugar Beets.--The Secretary shall make loans 
available to processors of domestically grown sugar beets at a 
rate equal to--
            ``(1) 22.9 cents per pound for refined beet sugar 
        for the 2008 crop year; and
            ``(2) a rate that is equal to 128.5 percent of the 
        loan rate per pound of raw cane sugar for the 
        applicable crop year under subsection (a) for each of 
        the 2009 through 2012 crop years.
    ``(c) Term of Loans.--
            ``(1) In general.--A loan under this section during 
        any fiscal year shall be made available not earlier 
        than the beginning of the fiscal year and shall mature 
        at the earlier of--
                    ``(A) the end of the 9-month period 
                beginning on the first day of the first month 
                after the month in which the loan is made; or
                    ``(B) the end of the fiscal year in which 
                the loan is made.
            ``(2) Supplemental loans.--In the case of a loan 
        made under this section in the last 3 months of a 
        fiscal year, the processor may repledge the sugar as 
        collateral for a second loan in the subsequent fiscal 
        year, except that the second loan shall--
                    ``(A) be made at the loan rate in effect at 
                the time the first loan was made; and
                    ``(B) mature in 9 months less the quantity 
                of time that the first loan was in effect.
    ``(d) Loan Type; Processor Assurances.--
            ``(1) Nonrecourse loans.--The Secretary shall carry 
        out this section through the use of nonrecourse loans.
            ``(2) Processor assurances.--
                    ``(A) In general.--The Secretary shall 
                obtain from each processor that receives a loan 
                under this section such assurances as the 
                Secretary considers adequate to ensure that the 
                processor will provide payments to producers 
                that are proportional to the value of the loan 
                received by the processor for the sugar beets 
                and sugarcane delivered by producers to the 
                processor.
                    ``(B) Minimum payments.--
                            ``(i) In general.--Subject to 
                        clause (ii), the Secretary may 
                        establish appropriate minimum payments 
                        for purposes of this paragraph.
                            ``(ii) Limitation.--In the case of 
                        sugar beets, the minimum payment 
                        established under clause (i) shall not 
                        exceed the rate of payment provided for 
                        under the applicable contract between a 
                        sugar beet producer and a sugar beet 
                        processor.
            ``(3) Administration.--The Secretary may not impose 
        or enforce any prenotification requirement, or similar 
        administrative requirement not otherwise in effect on 
        May 13, 2002, that has the effect of preventing a 
        processor from electing to forfeit the loan collateral 
        (of an acceptable grade and quality) on the maturity of 
        the loan.
    ``(e) Loans for In-Process Sugar.--
            ``(1) Definition of in-process sugars and syrups.--
        In this subsection, the term `in-process sugars and 
        syrups' does not include raw sugar, liquid sugar, 
        invert sugar, invert syrup, or other finished product 
        that is otherwise eligible for a loan under subsection 
        (a) or (b).
            ``(2) Availability.--The Secretary shall make 
        nonrecourse loans available to processors of a crop of 
        domestically grown sugarcane and sugar beets for in-
        process sugars and syrups derived from the crop.
            ``(3) Loan rate.--The loan rate shall be equal to 
        80 percent of the loan rate applicable to raw cane 
        sugar or refined beet sugar, as determined by the 
        Secretary on the basis of the source material for the 
        in-process sugars and syrups.
            ``(4) Further processing on forfeiture.--
                    ``(A) In general.--As a condition of the 
                forfeiture of in-process sugars and syrups 
                serving as collateral for a loan under 
                paragraph (2), the processor shall, within such 
                reasonable time period as the Secretary may 
                prescribe and at no cost to the Commodity 
                Credit Corporation, convert the in-process 
                sugars and syrups into raw cane sugar or 
                refined beet sugar of acceptable grade and 
                quality for sugars eligible for loans under 
                subsection (a) or (b).
                    ``(B) Transfer to corporation.--Once the 
                in-process sugars and syrups are fully 
                processed into raw cane sugar or refined beet 
                sugar, the processor shall transfer the sugar 
                to the Commodity Credit Corporation.
                    ``(C) Payment to processor.--On transfer of 
                the sugar, the Secretary shall make a payment 
                to the processor in an amount equal to the 
                amount obtained by multiplying--
                            ``(i) the difference between--
                                    ``(I) the loan rate for raw 
                                cane sugar or refined beet 
                                sugar, as appropriate; and
                                    ``(II) the loan rate the 
                                processor received under 
                                paragraph (3); by
                            ``(ii) the quantity of sugar 
                        transferred to the Secretary.
            ``(5) Loan conversion.--If the processor does not 
        forfeit the collateral as described in paragraph (4), 
        but instead further processes the in-process sugars and 
        syrups into raw cane sugar or refined beet sugar and 
        repays the loan on the in-process sugars and syrups, 
        the processor may obtain a loan under subsection (a) or 
        (b) for the raw cane sugar or refined beet sugar, as 
        appropriate.
            ``(6) Term of loan.--The term of a loan made under 
        this subsection for a quantity of in-process sugars and 
        syrups, when combined with the term of a loan made with 
        respect to the raw cane sugar or refined beet sugar 
        derived from the in-process sugars and syrups, may not 
        exceed 9 months, consistent with subsection (c).
    ``(f) Avoiding Forfeitures; Corporation Inventory 
Disposition.--
            ``(1) In general.--Subject to subsection (d)(3), to 
        the maximum extent practicable, the Secretary shall 
        operate the program established under this section at 
        no cost to the Federal Government by avoiding the 
        forfeiture of sugar to the Commodity Credit 
        Corporation.
            ``(2) Inventory disposition.--
                    ``(A) In general.--To carry out paragraph 
                (1), the Commodity Credit Corporation may 
                accept bids to obtain raw cane sugar or refined 
                beet sugar in the inventory of the Commodity 
                Credit Corporation from (or otherwise make 
                available such commodities, on appropriate 
                terms and conditions, to) processors of 
                sugarcane and processors of sugar beets (acting 
                in conjunction with the producers of the 
                sugarcane or sugar beets processed by the 
                processors) in return for the reduction of 
                production of raw cane sugar or refined beet 
                sugar, as appropriate.
                    ``(B) Bioenergy feedstock.--If a reduction 
                in the quantity of production accepted under 
                subparagraph (A) involves sugar beets or 
                sugarcane that has already been planted, the 
                sugar beets or sugarcane so planted may not be 
                used for any commercial purpose other than as a 
                bioenergy feedstock.
                    ``(C) Additional authority.--The authority 
                provided under this paragraph is in addition to 
                any authority of the Commodity Credit 
                Corporation under any other law.
    ``(g) Information Reporting.--
            ``(1) Duty of processors and refiners to report.--A 
        sugarcane processor, cane sugar refiner, and sugar beet 
        processor shall furnish the Secretary, on a monthly 
        basis, such information as the Secretary may require to 
        administer sugar programs, including the quantity of 
        purchases of sugarcane, sugar beets, and sugar, and 
        production, importation, distribution, and stock levels 
        of sugar.
            ``(2) Duty of producers to report.--
                    ``(A) Proportionate share states.--As a 
                condition of a loan made to a processor for the 
                benefit of a producer, the Secretary shall 
                require each producer of sugarcane located in a 
                State (other than the Commonwealth of Puerto 
                Rico) in which there are in excess of 250 
                producers of sugarcane to report, in the manner 
                prescribed by the Secretary, the sugarcane 
                yields and acres planted to sugarcane of the 
                producer.
                    ``(B) Other states.--The Secretary may 
                require each producer of sugarcane or sugar 
                beets not covered by subparagraph (A) to 
                report, in a manner prescribed by the 
                Secretary, the yields of, and acres planted to, 
                sugarcane or sugar beets, respectively, of the 
                producer.
            ``(3) Duty of importers to report.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall require 
                an importer of sugars, syrups, or molasses to 
                be used for human consumption or to be used for 
                the extraction of sugar for human consumption 
                to report, in the manner prescribed by the 
                Secretary, the quantities of the products 
                imported by the importer and the sugar content 
                or equivalent of the products.
                    ``(B) Tariff-rate quotas.--Subparagraph (A) 
                shall not apply to sugars, syrups, or molasses 
                that are within the quantities of tariff-rate 
                quotas that are subject to the lower rate of 
                duties.
            ``(4) Collection of information on mexico.--
                    ``(A) Collection.--The Secretary shall 
                collect--
                            ``(i) information on the 
                        production, consumption, stocks, and 
                        trade of sugar in Mexico, including 
                        United States exports of sugar to 
                        Mexico; and
                            ``(ii) publicly available 
                        information on Mexican production, 
                        consumption, and trade of high fructose 
                        corn syrups.
                    ``(B) Publication.--The data collected 
                under subparagraph (A) shall be published in 
                each edition of the World Agricultural Supply 
                and Demand Estimates.
            ``(5) Penalty.--Any person willfully failing or 
        refusing to furnish the information required to be 
        reported by paragraph (1), (2), or (3), or furnishing 
        willfully false information, shall be subject to a 
        civil penalty of not more than $10,000 for each such 
        violation.
            ``(6) Monthly reports.--Taking into consideration 
        the information received under this subsection, the 
        Secretary shall publish on a monthly basis composite 
        data on production, imports, distribution, and stock 
        levels of sugar.
    ``(h) Substitution of Refined Sugar.--For purposes of 
Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff 
Schedule of the United States and the reexport programs and 
polyhydric alcohol program administered by the Secretary, all 
refined sugars (whether derived from sugar beets or sugarcane) 
produced by cane sugar refineries and beet sugar processors 
shall be fully substitutable for the export of sugar and sugar-
containing products under those programs.
    ``(i) Effective Period.--This section shall be effective 
only for the 2008 through 2012 crops of sugar beets and 
sugarcane.''.
    (b) Transition.--The Secretary shall make loans for raw 
cane sugar and refined beet sugar available for the 2007 crop 
year on the terms and conditions provided in section 156 of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7272), as in effect on the day before the date of 
enactment of this Act.

SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL SUGAR 
                    ORGANIZATION.

    The Secretary shall work with the Secretary of State to 
restore United States membership in the International Sugar 
Organization not later than 1 year after the date of enactment 
of this Act.

SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    (a) Definitions.--Section 359a of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended--
            (1) by redesignating paragraphs (1), (2), (3), and 
        (4) as paragraphs (2), (4), (5), and (6), respectively;
            (2) by inserting before paragraph (2) (as so 
        redesignated) the following:
            ``(1) Human consumption.--The term `human 
        consumption', when used in the context of a reference 
        to sugar (whether in the form of sugar, in-process 
        sugar, syrup, molasses, or in some other form) for 
        human consumption, includes sugar for use in human 
        food, beverages, or similar products.''; and
            (3) by inserting after paragraph (2) (as so 
        redesignated) the following:
            ``(3) Market.--
                    ``(A) In general.--The term `market' means 
                to sell or otherwise dispose of in commerce in 
                the United States.
                    ``(B) Inclusions.--The term `market' 
                includes--
                            ``(i) the forfeiture of sugar under 
                        the loan program for sugar established 
                        under section 156 of the Federal 
                        Agriculture Improvement and Reform Act 
                        of 1996 (7 U.S.C. 7272);
                            ``(ii) with respect to any 
                        integrated processor and refiner, the 
                        movement of raw cane sugar into the 
                        refining process; and
                            ``(iii) the sale of sugar for the 
                        production of ethanol or other 
                        bioenergy product, if the disposition 
                        of the sugar is administered by the 
                        Secretary under section 9010 of the 
                        Farm Security and Rural Investment Act 
                        of 2002.
                    ``(C) Marketing year.--Forfeited sugar 
                described in subparagraph (B)(i) shall be 
                considered to have been marketed during the 
                crop year for which a loan is made under the 
                loan program described in that subparagraph.''.
    (b) Flexible Marketing Allotments for Sugar.--Section 359b 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is 
amended to read as follows:

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

    ``(a) Sugar Estimates.--
            ``(1) In general.--Not later than August 1 before 
        the beginning of each of the 2008 through 2012 crop 
        years for sugarcane and sugar beets, the Secretary 
        shall estimate--
                    ``(A) the quantity of sugar that will be 
                subject to human consumption in the United 
                States during the crop year;
                    ``(B) the quantity of sugar that would 
                provide for reasonable carryover stocks;
                    ``(C) the quantity of sugar that will be 
                available from carry-in stocks for human 
                consumption in the United States during the 
                crop year;
                    ``(D) the quantity of sugar that will be 
                available from the domestic processing of 
                sugarcane, sugar beets, and in-process beet 
                sugar; and
                    ``(E) the quantity of sugars, syrups, and 
                molasses that will be imported for human 
                consumption or to be used for the extraction of 
                sugar for human consumption in the United 
                States during the crop year, whether the 
                articles are under a tariff-rate quota or are 
                in excess or outside of a tariff-rate quota.
            ``(2) Exclusion.--The estimates under this 
        subsection shall not apply to sugar imported for the 
        production of polyhydric alcohol or to any sugar 
        refined and reexported in refined form or in products 
        containing sugar.
            ``(3) Reestimates.--The Secretary shall make 
        reestimates of sugar consumption, stocks, production, 
        and imports for a crop year as necessary, but not later 
        than the beginning of each of the second through fourth 
        quarters of the crop year.
    ``(b) Sugar Allotments.--
            ``(1) Establishment.--By the beginning of each crop 
        year, the Secretary shall establish for that crop year 
        appropriate allotments under section 359c for the 
        marketing by processors of sugar processed from sugar 
        cane or sugar beets or in-process beet sugar (whether 
        the sugar beets or in-process beet sugar was produced 
        domestically or imported) at a level that is--
                    ``(A) sufficient to maintain raw and 
                refined sugar prices above forfeiture levels so 
                that there will be no forfeitures of sugar to 
                the Commodity Credit Corporation under the loan 
                program for sugar established under section 156 
                of the Federal Agriculture Improvement and 
                Reform Act of 1996 (7 U.S.C. 7272); but
                    ``(B) not less than 85 percent of the 
                estimated quantity of sugar for domestic human 
                consumption for the crop year.
            ``(2) Products.--The Secretary may include sugar 
        products, the majority content of which is sucrose for 
        human consumption, derived from sugar cane, sugar 
        beets, molasses, or sugar in the allotments established 
        under paragraph (1) if the Secretary determines it to 
        be appropriate for purposes of this part.
    ``(c) Coverage of Allotments.--
            ``(1) In general.--The marketing allotments under 
        this part shall apply to the marketing by processors of 
        sugar intended for domestic human consumption that has 
        been processed from sugar cane, sugar beets, or in-
        process beet sugar, whether such sugar beets or in-
        process beet sugar was produced domestically or 
        imported.
            ``(2) Exceptions.--Consistent with the 
        administration of marketing allotments for each of the 
        2002 through 2007 crop years, the marketing allotments 
        shall not apply to sugar sold--
                    ``(A) to facilitate the exportation of the 
                sugar to a foreign country, except that the 
                exports of sugar shall not be eligible to 
                receive credits under reexport programs for 
                refined sugar or sugar containing products 
                administered by the Secretary;
                    ``(B) to enable another processor to 
                fulfill an allocation established for that 
                processor; or
                    ``(C) for uses other than domestic human 
                consumption, except for the sale of sugar for 
                the production of ethanol or other bioenergy if 
                the disposition of the sugar is administered by 
                the Secretary under section 9010 of the Farm 
                Security and Rural Investment Act of 2002.
            ``(3) Requirement.--The sale of sugar described in 
        paragraph (2)(B) shall be--
                    ``(A) made prior to May 1; and
                    ``(B) reported to the Secretary.
    ``(d) Prohibitions.--
            ``(1) In general.--During all or part of any crop 
        year for which marketing allotments have been 
        established, no processor of sugar beets or sugarcane 
        shall market for domestic human consumption a quantity 
        of sugar in excess of the allocation established for 
        the processor, except--
                    ``(A) to enable another processor to 
                fulfill an allocation established for that 
                other processor; or
                    ``(B) to facilitate the exportation of the 
                sugar.
            ``(2) Civil penalty.--Any processor who knowingly 
        violates paragraph (1) shall be liable to the Commodity 
        Credit Corporation for a civil penalty in an amount 
        equal to 3 times the United States market value, at the 
        time of the commission of the violation, of that 
        quantity of sugar involved in the violation.''.
    (c) Establishment of Flexible Marketing Allotments.--
Section 359c of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1359cc) is amended--
            (1) by striking subsection (b) and inserting the 
        following:
    ``(b) Overall Allotment Quantity.--
            ``(1) In general.--The Secretary shall establish 
        the overall quantity of sugar to be allotted for the 
        crop year (referred to in this part as the `overall 
        allotment quantity') at a level that is--
                    ``(A) sufficient to maintain raw and 
                refined sugar prices above forfeiture levels to 
                avoid forfeiture of sugar to the Commodity 
                Credit Corporation; but
                    ``(B) not less than a quantity equal to 85 
                percent of the estimated quantity of sugar for 
                domestic human consumption for the crop year.
            ``(2) Adjustment.--Subject to paragraph (1), the 
        Secretary shall adjust the overall allotment quantity 
        to maintain--
                    ``(A) raw and refined sugar prices above 
                forfeiture levels to avoid the forfeiture of 
                sugar to the Commodity Credit Corporation; and
                    ``(B) adequate supplies of raw and refined 
                sugar in the domestic market.'';
            (2) in subsection (d)(2), by inserting ``or in-
        process beet sugar'' before the period at the end;
            (3) in subsection (g)(1)--
                    (A) by striking ``(1) in general.--The 
                Secretary'' and inserting the following:
            ``(1) Adjustments.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary''; and
                    (B) by adding at the end the following:
                    ``(B) Limitation.--In carrying out 
                subparagraph (A), the Secretary may not reduce 
                the overall allotment quantity to a quantity of 
                less than 85 percent of the estimated quantity 
                of sugar for domestic human consumption for the 
                crop year.''; and
            (4) by striking subsection (h).
    (d) Allocation of Marketing Allotments.--Section 359d(b) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) is 
amended--
            (1) in paragraph (1)(F), by striking ``Except as 
        otherwise provided in section 359f(c)(8), if'' and 
        inserting ``If''; and
            (2) in paragraph (2), by striking subparagraphs 
        (G), (H), and (I) and inserting the following:
                    ``(G) Sale of factories of a processor to 
                another processor.--
                            ``(i) Effect of sale.--Subject to 
                        subparagraphs (E) and (F), if 1 or more 
                        factories of a processor of beet sugar 
                        (but not all of the assets of the 
                        processor) are sold to another 
                        processor of beet sugar during a crop 
                        year, the Secretary shall assign a pro 
                        rata portion of the allocation of the 
                        seller to the allocation of the buyer 
                        to reflect the historical contribution 
                        of the production of the sold 1 or more 
                        factories to the total allocation of 
                        the seller, unless the buyer and the 
                        seller have agreed upon the transfer of 
                        a different portion of the allocation 
                        of the seller, in which case, the 
                        Secretary shall transfer that portion 
                        agreed upon by the buyer and seller.
                            ``(ii) Application of allocation.--
                        The assignment of the allocation under 
                        clause (i) shall apply--
                                    ``(I) during the remainder 
                                of the crop year for which the 
                                sale described in clause (i) 
                                occurs; and
                                    ``(II) during each 
                                subsequent crop year.
                            ``(iii) Use of other factories to 
                        fill allocation.--If the assignment of 
                        the allocation under clause (i) to the 
                        buyer for the 1 or more purchased 
                        factories cannot be filled by the 
                        production of the 1 or more purchased 
                        factories, the remainder of the 
                        allocation may be filled by beet sugar 
                        produced by the buyer from other 
                        factories of the buyer.
                    ``(H) New entrants starting production, 
                reopening, or acquiring an existing factory 
                with production history.--
                            ``(i) Definition of new entrant.--
                                    ``(I) In general.--In this 
                                subparagraph, the term `new 
                                entrant' means an individual, 
                                corporation, or other entity 
                                that--
                                            ``(aa) does not 
                                        have an allocation of 
                                        the beet sugar 
                                        allotment under this 
                                        part;
                                            ``(bb) is not 
                                        affiliated with any 
                                        other individual, 
                                        corporation, or entity 
                                        that has an allocation 
                                        of beet sugar under 
                                        this part (referred to 
                                        in this clause as a 
                                        `third party'); and
                                            ``(cc) will process 
                                        sugar beets produced by 
                                        sugar beet growers 
                                        under contract with the 
                                        new entrant for the 
                                        production of sugar at 
                                        the new or re-opened 
                                        factory that is the 
                                        basis for the new 
                                        entrant allocation.
                                    ``(II) Affiliation.--For 
                                purposes of subclause (I)(bb), 
                                a new entrant and a third party 
                                shall be considered to be 
                                affiliated if--
                                            ``(aa) the third 
                                        party has an ownership 
                                        interest in the new 
                                        entrant;
                                            ``(bb) the new 
                                        entrant and the third 
                                        party have owners in 
                                        common;
                                            ``(cc) the third 
                                        party has the ability 
                                        to exercise control 
                                        over the new entrant by 
                                        organizational rights, 
                                        contractual rights, or 
                                        any other means;
                                            ``(dd) the third 
                                        party has a contractual 
                                        relationship with the 
                                        new entrant by which 
                                        the new entrant will 
                                        make use of the 
                                        facilities or assets of 
                                        the third party; or
                                            ``(ee) there are 
                                        any other similar 
                                        circumstances by which 
                                        the Secretary 
                                        determines that the new 
                                        entrant and the third 
                                        party are affiliated.
                            ``(ii) Allocation for a new entrant 
                        that has constructed a new factory or 
                        reopened a factory that was not 
                        operated since before 1998.--If a new 
                        entrant constructs a new sugar beet 
                        processing factory, or acquires and 
                        reopens a sugar beet processing factory 
                        that last processed sugar beets prior 
                        to the 1998 crop year and there is no 
                        allocation currently associated with 
                        the factory, the Secretary shall--
                                    ``(I) assign an allocation 
                                for beet sugar to the new 
                                entrant that provides a fair 
                                and equitable distribution of 
                                the allocations for beet sugar 
                                so as to enable the new entrant 
                                to achieve a factory 
                                utilization rate comparable to 
                                the factory utilization rates 
                                of other similarly-situated 
                                processors; and
                                    ``(II) reduce the 
                                allocations for beet sugar of 
                                all other processors on a pro 
                                rata basis to reflect the 
                                allocation to the new entrant.
                            ``(iii) Allocation for a new 
                        entrant that has acquired an existing 
                        factory with a production history.--
                                    ``(I) In general.--If a new 
                                entrant acquires an existing 
                                factory that has processed 
                                sugar beets from the 1998 or 
                                subsequent crop year and has a 
                                production history, on the 
                                mutual agreement of the new 
                                entrant and the company 
                                currently holding the 
                                allocation associated with the 
                                factory, the Secretary shall 
                                transfer to the new entrant a 
                                portion of the allocation of 
                                the current allocation holder 
                                to reflect the historical 
                                contribution of the production 
                                of the 1 or more sold factories 
                                to the total allocation of the 
                                current allocation holder, 
                                unless the new entrant and 
                                current allocation holder have 
                                agreed upon the transfer of a 
                                different portion of the 
                                allocation of the current 
                                allocation holder, in which 
                                case, the Secretary shall 
                                transfer that portion agreed 
                                upon by the new entrant and the 
                                current allocation holder.
                                    ``(II) Prohibition.--In the 
                                absence of a mutual agreement 
                                described in subclause (I), the 
                                new entrant shall be ineligible 
                                for a beet sugar allocation.
                            ``(iv) Appeals.--Any decision made 
                        under this subsection may be appealed 
                        to the Secretary in accordance with 
                        section 359i.''.
    (e) Reassignment of Deficits.--Section 359e(b) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is 
amended in paragraphs (1)(D) and (2)(C), by inserting ``of raw 
cane sugar'' after ``imports'' each place it appears.
    (f) Provisions Applicable to Producers.--Section 359f(c) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is 
amended--
            (1) by striking paragraph (8);
            (2) by redesignating paragraphs (1) through (7) as 
        paragraphs (2) through (8), respectively;
            (3) by inserting before paragraph (2) (as so 
        redesignated) the following:
            ``(1) Definition of seed.--
                    ``(A) In general.--In this subsection, the 
                term `seed' means only those varieties of seed 
                that are dedicated to the production of 
                sugarcane from which is produced sugar for 
                human consumption.
                    ``(B) Exclusion.--The term `seed' does not 
                include seed of a high-fiber cane variety 
                dedicated to other uses, as determined by the 
                Secretary'';
            (4) in paragraph (3) (as so redesignated)--
                    (A) in the first sentence--
                            (i) by striking ``paragraph (1)'' 
                        and inserting ``paragraph (2)''; and
                            (ii) by inserting ``sugar produced 
                        from'' after ``quantity of''; and
                    (B) in the second sentence, by striking 
                ``paragraph (7)'' and inserting ``paragraph 
                (8)'';
            (5) in the first sentence of paragraph (6)(C) (as 
        so redesignated), by inserting ``for sugar'' before 
        ``in excess of the farm's proportionate share''; and
            (6) in paragraph (8) (as so redesignated), by 
        inserting ``sugar from'' after ``the amount of''.
    (g) Special Rules.--Section 359g of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--
            (1) by striking subsection (a) and inserting the 
        following:
    ``(a) Transfer of Acreage Base History.--
            ``(1) Transfer authorized.--For the purpose of 
        establishing proportionate shares for sugarcane farms 
        under section 359f(c), the Secretary, on application of 
        any producer, with the written consent of all owners of 
        a farm, may transfer the acreage base history of the 
        farm to any other parcels of land of the applicant.
            ``(2) Converted acreage base.--
                    ``(A) In general.--Sugarcane acreage base 
                established under section 359f(c) that has been 
                or is converted to nonagricultural use on or 
                after May 13, 2002, may be transferred to other 
                land suitable for the production of sugarcane 
                that can be delivered to a processor in a 
                proportionate share State in accordance with 
                this paragraph.
                    ``(B) Notification.--Not later than 90 days 
                after the Secretary becomes aware of a 
                conversion of any sugarcane acreage base to a 
                nonagricultural use, the Secretary shall notify 
                the 1 or more affected landowners of the 
                transferability of the applicable sugarcane 
                acreage base.
                    ``(C) Initial transfer period.--The owner 
                of the base attributable to the acreage at the 
                time of the conversion shall be afforded 90 
                days from the date of the receipt of the 
                notification under subparagraph (B) to transfer 
                the base to 1 or more farms owned by the owner.
                    ``(D) Grower of record.--If a transfer 
                under subparagraph (C) cannot be accomplished 
                during the period specified in that 
                subparagraph, the grower of record with regard 
                to the acreage base on the date on which the 
                acreage was converted to nonagricultural use 
                shall--
                            ``(i) be notified; and
                            ``(ii) have 90 days from the date 
                        of the receipt of the notification to 
                        transfer the base to 1 or more farms 
                        operated by the grower.
                    ``(E) Pool distribution.--
                            ``(i) In general.--If transfers 
                        under subparagraphs (B) and (C) cannot 
                        be accomplished during the periods 
                        specified in those subparagraphs, the 
                        county committee of the Farm Service 
                        Agency for the applicable county shall 
                        place the acreage base in a pool for 
                        possible assignment to other farms.
                            ``(ii) Acceptance of requests.--
                        After providing reasonable notice to 
                        farm owners, operators, and growers of 
                        record in the county, the county 
                        committee shall accept requests from 
                        owners, operators, and growers of 
                        record in the county.
                            ``(iii) Assignment.--The county 
                        committee shall assign the acreage base 
                        to other farms in the county that are 
                        eligible and capable of accepting the 
                        acreage base, based on a random drawing 
                        from among the requests received under 
                        clause (ii).
                    ``(F) Statewide reallocation.--
                            ``(i) In general.--Any acreage base 
                        remaining unassigned after the 
                        transfers and processes described in 
                        subparagraphs (A) through (E) shall be 
                        made available to the State committee 
                        of the Farm Service Agency for 
                        allocation among the remaining county 
                        committees in the State representing 
                        counties with farms eligible for 
                        assignment of the base, based on a 
                        random drawing.
                            ``(ii) Allocation.--Any county 
                        committee receiving acreage base under 
                        this subparagraph shall allocate the 
                        acreage base to eligible farms using 
                        the process described in subparagraph 
                        (E).
                    ``(G) Status of reassigned base.--After 
                acreage base has been reassigned in accordance 
                with this subparagraph, the acreage base 
                shall--
                            ``(i) remain on the farm; and
                            ``(ii) be subject to the transfer 
                        provisions of paragraph (1).''; and
            (2) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by inserting ``affected'' 
                        before ``crop-share owners'' each place 
                        it appears; and
                            (ii) by striking ``, and from the 
                        processing company holding the 
                        applicable allocation for such 
                        shares,''; and
                    (B) in paragraph (2), by striking ``based 
                on'' and all that follows through the end of 
                subparagraph (B) and inserting ``based on--
                    ``(A) the number of acres of sugarcane base 
                being transferred; and
                    ``(B) the pro rata amount of allocation at 
                the processing company holding the applicable 
                allocation that equals the contribution of the 
                grower to allocation of the processing company 
                for the sugarcane acreage base being 
                transferred.''.
    (h) Appeals.--Section 359i of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359ii) is amended--
            (1) in subsection (a), by inserting ``or 359g(d)'' 
        after ``359f''; and
            (2) by striking subsection (c).
    (i) Reallocating Sugar Quota Import Shortfalls.--Section 
359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359kk) is repealed.
    (j) Administration of Tariff Rate Quotas.--Part VII of 
subtitle B of title III of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359aa) (as amended by subsection (i)) is 
amended by adding at the end the following:

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

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

``SEC. 359L. PERIOD OF EFFECTIVENESS.

    ``(a) In General.--This part shall be effective only for 
the 2008 through 2012 crop years for sugar.
    ``(b) Transition.--The Secretary shall administer flexible 
marketing allotments for sugar for the 2007 crop year for sugar 
on the terms and conditions provided in this part as in effect 
on the day before the date of enactment of this section.''.

SEC. 1404. STORAGE FACILITY LOANS.

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

SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

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

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

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

                           Subtitle E--Dairy

SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

    (a) Definition of Net Removals.--In this section, the term 
``net removals'' means--
            (1) the sum of--
                    (A) the quantity of a product described in 
                subsection (b) purchased by the Commodity 
                Credit Corporation under this section; and
                    (B) the quantity of the product exported 
                under section 153 of the Food Security Act of 
                1985 (15 U.S.C. 713a-14); less
            (2) the quantity of the product sold for 
        unrestricted use by the Commodity Credit Corporation.
    (b) Support Activities.--During the period beginning on 
January 1, 2008, and ending December 31, 2012, the Secretary 
shall support the price of cheddar cheese, butter, and nonfat 
dry milk through the purchase of such products made from milk 
produced in the United States.
    (c) Purchase Price.--To carry out subsection (b) during the 
period specified in that subsection, the Secretary shall 
purchase--
            (1) cheddar cheese in blocks at not less than $1.13 
        per pound;
            (2) cheddar cheese in barrels at not less than 
        $1.10 per pound;
            (3) butter at not less than $1.05 per pound; and
            (4) nonfat dry milk at not less than $0.80 per 
        pound.
    (d) Temporary Price Adjustment To Avoid Excess 
Inventories.--
            (1) Adjustments authorized.--The Secretary may 
        adjust the minimum purchase prices established under 
        subsection (c) only as permitted under this subsection.
            (2) Cheese inventories in excess of 200,000,000 
        pounds.--If net removals for a period of 12 consecutive 
        months exceed 200,000,000 pounds of cheese, but do not 
        exceed 400,000,000 pounds, the Secretary may reduce the 
        purchase prices under paragraphs (1) and (2) of 
        subsection (c) during the immediately following month 
        by not more than 10 cents per pound.
            (3) Cheese inventories in excess of 400,000,000 
        pounds.--If net removals for a period of 12 consecutive 
        months exceed 400,000,000 pounds of cheese, the 
        Secretary may reduce the purchase prices under 
        paragraphs (1) and (2) of subsection (c) during the 
        immediately following month by not more than 20 cents 
        per pound.
            (4) Butter inventories in excess of 450,000,000 
        pounds.--If net removals for a period of 12 consecutive 
        months exceed 450,000,000 pounds of butter, but do not 
        exceed 650,000,000 pounds, the Secretary may reduce the 
        purchase price under subsection (c)(3) during the 
        immediately following month by not more than 10 cents 
        per pound.
            (5) Butter inventories in excess of 650,000,000 
        pounds.--If net removals for a period of 12 consecutive 
        months exceed 650,000,000 pounds of butter, the 
        Secretary may reduce the purchase price under 
        subsection (c)(3) during the immediately following 
        month by not more than 20 cents per pound.
            (6) Nonfat dry milk inventories in excess of 
        600,000,000 pounds.--If net removals for a period of 12 
        consecutive months exceed 600,000,000 pounds of nonfat 
        dry milk, but do not exceed 800,000,000 pounds, the 
        Secretary may reduce the purchase price under 
        subsection (c)(4) during the immediately following 
        month by not more than 5 cents per pound.
            (7) Nonfat dry milk inventories in excess of 
        800,000,000 pounds.--If net removals for a period of 12 
        consecutive months exceed 800,000,000 pounds of nonfat 
        dry milk, the Secretary may reduce the purchase price 
        under subsection (c)(4) during the immediately 
        following month by not more than 10 cents per pound.
    (e) Uniform Purchase Price.--The prices that the Secretary 
pays for cheese, butter, or nonfat dry milk, respectively, 
under subsection (b) shall be uniform for all regions of the 
United States.
    (f) Sales From Inventories.--In the case of each commodity 
specified in subsection (c) that is available for unrestricted 
use in the inventory of the Commodity Credit Corporation, the 
Secretary may sell the commodity at the market prices 
prevailing for that commodity at the time of sale, except that 
the sale price may not be less than 110 percent of the minimum 
purchase price specified in subsection (c) for that commodity.

SEC. 1502. DAIRY FORWARD PRICING PROGRAM.

    (a) Program Required.--The Secretary shall establish a 
program under which milk producers and cooperative associations 
of producers are authorized to voluntarily enter into forward 
price contracts with milk handlers.
    (b) Minimum Milk Price Requirements.--Payments made by milk 
handlers to milk producers and cooperative associations of 
producers, and prices received by milk producers and 
cooperative associations, in accordance with the terms of a 
forward price contract authorized by subsection (a), shall be 
treated as satisfying--
            (1) all uniform and minimum milk price requirements 
        of subparagraphs (B) and (F) of paragraph (5) of 
        section 8c of the Agricultural Adjustment Act (7 U.S.C. 
        608c), reenacted with amendments by the Agricultural 
        Marketing Agreement Act of 1937; and
            (2) the total payment requirement of subparagraph 
        (C) of that paragraph.
    (c) Milk Covered by Program.--
            (1) Covered milk.--The program shall apply only 
        with respect to the marketing of federally regulated 
        milk that--
                    (A) is not classified as Class I milk or 
                otherwise intended for fluid use; and
                    (B) is in the current of interstate or 
                foreign commerce or directly burdens, 
                obstructs, or affects interstate or foreign 
                commerce in federally regulated milk.
            (2) Relation to class i milk.--To assist milk 
        handlers in complying with paragraph (1)(A) without 
        having to segregate or otherwise individually track the 
        source and disposition of milk, a milk handler may 
        allocate milk receipts from producers, cooperatives, 
        and other sources that are not subject to a forward 
        contract to satisfy the obligations of the handler with 
        regard to Class I milk usage.
    (d) Voluntary Program.--
            (1) In general.--A milk handler may not require 
        participation in a forward pricing contract as a 
        condition of the handler receiving milk from a producer 
        or cooperative association of producers.
            (2) Pricing.--A producer or cooperative association 
        described in paragraph (1) may continue to have their 
        milk priced in accordance with the minimum payment 
        provisions of the Federal milk marketing order.
            (3) Complaints.--
                    (A) In general.--The Secretary shall 
                investigate complaints made by producers or 
                cooperative associations of coercion by 
                handlers to enter into forward contracts.
                    (B) Action.--If the Secretary finds 
                evidence of coercion, the Secretary shall take 
                appropriate action.
    (e) Duration.--
            (1) New contracts.--No forward price contract may 
        be entered into under the program established under 
        this section after September 30, 2012.
            (2) Application.--No forward contract entered into 
        under the program may extend beyond September 30, 2015.

SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM.

    (a) Extension.--Section 153(a) of the Food Security Act of 
1985 (15 U.S.C. 713a-14(a)) is amended by striking ``2007'' and 
inserting ``2012''.
    (b) Compliance With Trade Agreements.--Section 153 of the 
Food Security Act of 1985 (15 U.S.C. 713a-14) is amended--
            (1) in subsection (c), by striking paragraph (3) 
        and inserting the following:
            ``(3) the maximum volume of dairy product exports 
        allowable consistent with the obligations of the United 
        States under the Uruguay Round Agreements approved 
        under section 101 of the Uruguay Round Agreements Act 
        (19 U.S.C. 3511) is exported under the program each 
        year (minus the volume sold under section 1163 of this 
        Act during that year), except to the extent that the 
        export of such a volume under the program would, in the 
        judgment of the Secretary, exceed the limitations on 
        the value permitted under subsection (f); and''; and.
            (2) in subsection (f), by striking paragraph (1) 
        and inserting the following:
            ``(1) Funds and commodities.--Except as provided in 
        paragraph (2), the Commodity Credit Corporation shall 
        in each year use money and commodities for the program 
        under this section in the maximum amount consistent 
        with the obligations of the United States under the 
        Uruguay Round Agreements approved under section 101 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3511), 
        minus the amount expended under section 1163 of this 
        Act during that year.''.

SEC. 1504. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES.

    Section 8c of the Agricultural Adjustment Act (7 U.S.C. 
608c), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended by striking subsection (17) 
and inserting the following:
            ``(17) Provisions applicable to amendments.--
                    ``(A) Applicability to amendments.--The 
                provisions of this section and section 8d 
                applicable to orders shall be applicable to 
                amendments to orders.
                    ``(B) Supplemental rules of practice.--
                            ``(i) In general.--Not later than 
                        60 days after the date of enactment of 
                        this subparagraph, the Secretary shall 
                        issue, using informal rulemaking, 
                        supplemental rules of practice to 
                        define guidelines and timeframes for 
                        the rulemaking process relating to 
                        amendments to orders.
                            ``(ii) Issues.--At a minimum, the 
                        supplemental rules of practice shall 
                        establish--
                                    ``(I) proposal submission 
                                requirements;
                                    ``(II) pre-hearing 
                                information session 
                                specifications;
                                    ``(III) written testimony 
                                and data request requirements;
                                    ``(IV) public participation 
                                timeframes; and
                                    ``(V) electronic document 
                                submission standards.
                            ``(iii) Effective date.--The 
                        supplemental rules of practice shall 
                        take effect not later than 120 days 
                        after the date of enactment of this 
                        subparagraph, as determined by the 
                        Secretary.
                    ``(C) Hearing timeframes.--
                            ``(i) In general.--Not more than 30 
                        days after the receipt of a proposal 
                        for an amendment hearing regarding a 
                        milk marketing order, the Secretary 
                        shall--
                                    ``(I) issue a notice 
                                providing an action plan and 
                                expected timeframes for 
                                completion of the hearing not 
                                more than 120 days after the 
                                date of the issuance of the 
                                notice;
                                    ``(II)(aa) issue a request 
                                for additional information to 
                                be used by the Secretary in 
                                making a determination 
                                regarding the proposal; and
                                    ``(bb) if the additional 
                                information is not provided to 
                                the Secretary within the 
                                timeframe requested by the 
                                Secretary, issue a denial of 
                                the request; or
                                    ``(III) issue a denial of 
                                the request.
                            ``(ii) Requirement.--A post-hearing 
                        brief may be filed under this paragraph 
                        not later than 60 days after the date 
                        of an amendment hearing regarding a 
                        milk marketing order.
                            ``(iii) Recommended decisions.--A 
                        recommended decision on a proposed 
                        amendment to an order shall be issued 
                        not later than 90 days after the 
                        deadline for the submission of post-
                        hearing briefs.
                            ``(iv) Final decisions.--A final 
                        decision on a proposed amendment to an 
                        order shall be issued not later than 60 
                        days after the deadline for submission 
                        of comments and exceptions to the 
                        recommended decision issued under 
                        clause (iii).
                    ``(D) Industry assessments.--If the 
                Secretary determines it is necessary to improve 
                or expedite rulemaking under this subsection, 
                the Secretary may impose an assessment on the 
                affected industry to supplement appropriated 
                funds for the procurement of service providers, 
                such as court reporters.
                    ``(E) Use of informal rulemaking.--The 
                Secretary may use rulemaking under section 553 
                of title 5, United States Code, to amend 
                orders, other than provisions of orders that 
                directly affect milk prices.
                    ``(F) Avoiding duplication.--The Secretary 
                shall not be required to hold a hearing on any 
                amendment proposed to be made to a milk 
                marketing order in response to an application 
                for a hearing on the proposed amendment if--
                            ``(i) the application requesting 
                        the hearing is received by the 
                        Secretary not later than 90 days after 
                        the date on which the Secretary has 
                        announced the decision on a previously 
                        proposed amendment to that order; and
                            ``(ii) the 2 proposed amendments 
                        are essentially the same, as determined 
                        by the Secretary.
                    ``(G) Monthly feed and fuel costs for make 
                allowances.--As part of any hearing to adjust 
                make allowances under marketing orders 
                commencing prior to September 30, 2012, the 
                Secretary shall--
                            ``(i) determine the average monthly 
                        prices of feed and fuel incurred by 
                        dairy producers in the relevant 
                        marketing area;
                            ``(ii) consider the most recent 
                        monthly feed and fuel price data 
                        available; and
                            ``(iii) consider those prices in 
                        determining whether or not to adjust 
                        make allowances.''.

SEC. 1505. DAIRY INDEMNITY PROGRAM.

    Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended 
by striking ``2007'' and inserting ``2012''.

SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM.

    (a) Definitions.--In this section:
            (1) Class i milk.--The term ``Class I milk'' means 
        milk (including milk components) classified as Class I 
        milk under a Federal milk marketing order.
            (2) Eligible production.--The term ``eligible 
        production'' means milk produced by a producer in a 
        participating State.
            (3) Federal milk marketing order.--The term 
        ``Federal milk marketing order'' means an order issued 
        under section 8c of the Agricultural Adjustment Act (7 
        U.S.C. 608c), reenacted with amendments by the 
        Agricultural Marketing Agreement Act of 1937.
            (4) Participating state.--The term ``participating 
        State'' means each State.
            (5) Producer.--The term ``producer'' means an 
        individual or entity that directly or indirectly (as 
        determined by the Secretary)--
                    (A) shares in the risk of producing milk; 
                and
                    (B) makes contributions (including land, 
                labor, management, equipment, or capital) to 
                the dairy farming operation of the individual 
                or entity that are at least commensurate with 
                the share of the individual or entity of the 
                proceeds of the operation.
    (b) Payments.--The Secretary shall offer to enter into 
contracts with producers on a dairy farm located in a 
participating State under which the producers receive payments 
on eligible production.
    (c) Amount.--Payments to a producer under this section 
shall be calculated by multiplying (as determined by the 
Secretary)--
            (1) the payment quantity for the producer during 
        the applicable month established under subsection (e);
            (2) the amount equal to--
                    (A) $16.94 per hundredweight, as adjusted 
                under subsection (d); less
                    (B) the Class I milk price per 
                hundredweight in Boston under the applicable 
                Federal milk marketing order; by
            (3)(A) for the period beginning October 1, 2007, 
        and ending September 30, 2008, 34 percent;
            (B) for the period beginning October 1, 2008, and 
        ending August 31, 2012, 45 percent; and
            (C) for the period beginning September 1, 2012, and 
        thereafter, 34 percent.
    (d) Payment Rate Adjustment for Feed Prices.--
            (1) Initial adjustment authority.--During the 
        period beginning on January 1, 2008, and ending on 
        August 31, 2012, if the National Average Dairy Feed 
        Ration Cost for a month during that period is greater 
        than $7.35 per hundredweight, the amount specified in 
        subsection (c)(2)(A) used to determine the payment rate 
        for that month shall be increased by 45 percent of the 
        percentage by which the National Average Dairy Feed 
        Ration Cost exceeds $7.35 per hundredweight.
            (2) Subsequent adjustment authority.--For any month 
        beginning on or after September 1, 2012, if the 
        National Average Dairy Feed Ration Cost for the month 
        is greater than $9.50 per hundredweight, the amount 
        specified in subsection (c)(2)(A) used to determine the 
        payment rate for that month shall be increased by 45 
        percent of the percentage by which the National Average 
        Dairy Feed Ration Cost exceeds $9.50 per hundredweight.
            (3) National average dairy feed ration cost.--For 
        each month, the Secretary shall calculate a National 
        Average Dairy Feed Ration Cost per hundredweight using 
        the same procedures (adjusted to a hundredweight basis) 
        used to calculate the feed components of the estimated 
        price of 16 percent Mixed Dairy Feed per pound noted on 
        page 33 of the USDA March 2008 Agricultural Prices 
        publication (including the data and factors noted in 
        footnote 4).
    (e) Payment Quantity.--
            (1) In general.--Subject to paragraph (2), the 
        payment quantity for a producer during the applicable 
        month under this section shall be equal to the quantity 
        of eligible production marketed by the producer during 
        the month.
            (2) Limitation.--
                    (A) In general.--The payment quantity for 
                all producers on a single dairy operation for 
                which the producers receive payments under 
                subsection (b) shall not exceed--
                            (i) for the period beginning 
                        October 1, 2007, and ending September 
                        30, 2008, 2,400,000 pounds;
                            (ii) for the period beginning 
                        October 1, 2008, and ending August 31, 
                        2012, 2,985,000 pounds for each fiscal 
                        year; and
                            (iii) effective beginning September 
                        1, 2012, 2,400,000 pounds per fiscal 
                        year.
                    (B) Standards.--For purposes of determining 
                whether producers are producers on separate 
                dairy operations or a single dairy operation, 
                the Secretary shall apply the same standards as 
                were applied in implementing the dairy program 
                under section 805 of the Agriculture, Rural 
                Development, Food and Drug Administration, and 
                Related Agencies Appropriations Act, 2001 (as 
                enacted into law by Public Law 106-387; 114 
                Stat. 1549A-50).
            (3) Reconstitution.--The Secretary shall ensure 
        that a producer does not reconstitute a dairy operation 
        for the sole purpose of receiving additional payments 
        under this section.
    (f) Payments.--A payment under a contract under this 
section shall be made on a monthly basis not later than 60 days 
after the last day of the month for which the payment is made.
    (g) Signup.--The Secretary shall offer to enter into 
contracts under this section during the period beginning on the 
date that is 90 days after the date of enactment of this Act 
and ending on September 30, 2012.
    (h) Duration of Contract.--
            (1) In general.--Except as provided in paragraph 
        (2), any contract entered into by producers on a dairy 
        farm under this section shall cover eligible production 
        marketed by the producers on the dairy farm during the 
        period starting with the first day of month the 
        producers on the dairy farm enter into the contract and 
        ending on September 30, 2012.
            (2) Violations.--If a producer violates the 
        contract, the Secretary may--
                    (A) terminate the contract and allow the 
                producer to retain any payments received under 
                the contract; or
                    (B) allow the contract to remain in effect 
                and require the producer to repay a portion of 
                the payments received under the contract based 
                on the severity of the violation.

SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM.

    (a) Extension of Dairy Promotion and Research Authority.--
Section 113(e)(2) of the Dairy Production Stabilization Act of 
1983 (7 U.S.C. 4504(e)(2)) is amended by striking ``2007'' and 
inserting ``2012''.
    (b) Definition of United States for Promotion Program.--
Section 111 of the Dairy Production Stabilization Act of 1983 
(7 U.S.C. 4502) is amended--
            (1) by striking subsection (l) and inserting the 
        following:
    ``(l) the term `United States', when used in a geographical 
sense, means all of the States, the District of Columbia, and 
the Commonwealth of Puerto Rico;''; and
            (2) in subsection (m), by striking ``(as defined in 
        subsection (l))''.
    (c) Definition of United States for Research Program.--
Section 130 of the Dairy Production Stabilization Act of 1983 
(7 U.S.C. 4531)) is amended by striking paragraph (12) and 
inserting the following:
            ``(12) the term `United States', when used in a 
        geographical sense, means all of the States, the 
        District of Columbia, and the Commonwealth of Puerto 
        Rico.''.
    (d) Assessment Rate for Imported Dairy Products.--Section 
113(g) of the Dairy Production Stabilization Act of 1983 (7 
U.S.C. 4504(g)) is amended by striking paragraph (3) and 
inserting the following:
            ``(3) Rate.--
                    ``(A) In general.--The rate of assessment 
                for milk produced in the United States 
                prescribed by the order shall be 15 cents per 
                hundredweight of milk for commercial use or the 
                equivalent thereof, as determined by the 
                Secretary.
                    ``(B) Imported dairy products.--The rate of 
                assessment for imported dairy products 
                prescribed by the order shall be 7.5 cents per 
                hundredweight of milk for commercial use or the 
                equivalent thereof, as determined by the 
                Secretary.''.
    (e) Time and Method of Importer Payments.--Section 
113(g)(6) of the Dairy Production Stabilization Act of 1983 (7 
U.S.C. 4504(g)(6)) is amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraph (C) as 
        subparagraph (B).
    (f) Refund of Assessments on Certain Imported Dairy 
Products.--Section 113(g) of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4504(g)) is amended by adding at the end 
the following:
            ``(7) Refund of assessments on certain imported 
        products.--
                    ``(A) In general.--An importer shall be 
                entitled to a refund of any assessment paid 
                under this subsection on imported dairy 
                products imported under a contract entered into 
                prior to the date of enactment of the Food, 
                Conservation, and Energy Act of 2008.
                    ``(B) Expiration.--Refunds under 
                subparagraph (A) shall expire 1 year after the 
                date of enactment of the Food, Conservation, 
                and Energy Act of 2008.''.

SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR 
                    NONFAT DRY MILK.

    Not later than 90 days after the date of enactment of this 
Act, the Secretary shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report 
regarding Department of Agriculture reporting procedures for 
nonfat dry milk and the impact of the procedures on Federal 
milk marketing order minimum prices during the period beginning 
on July 1, 2006, and ending on the date of enactment of this 
Act.

SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

    (a) Establishment.--Subject to the availability of 
appropriations to carry out this section, the Secretary shall 
establish a commission to be known as the ``Federal Milk 
Marketing Order Review Commission'' (referred to in this 
section as the ``commission''), which shall conduct a 
comprehensive review and evaluation of--
            (1) the Federal milk marketing order system in 
        effect on the date of establishment of the commission; 
        and
            (2) non-Federal milk marketing order systems.
    (b) Elements of Review and Evaluation.--As part of the 
review and evaluation under subsection (a), the commission 
shall consider legislative and regulatory options for--
            (1) ensuring that the competitiveness of dairy 
        products with other competing products in the 
        marketplace is preserved and enhanced;
            (2) enhancing the competitiveness of American dairy 
        producers in world markets;
            (3) ensuring the competitiveness and transparency 
        in dairy pricing;
            (4) streamlining and expediting the process by 
        which amendments to Federal milk market orders are 
        adopted;
            (5) simplifying the Federal milk marketing order 
        system;
            (6) evaluating whether the Federal milk marketing 
        order system serves the interests of dairy producers, 
        consumers, and dairy processors; and
            (7) evaluating the nutritional composition of milk, 
        including the potential benefits and costs of adjusting 
        the milk content standards.
    (c) Membership.--
            (1) Composition.--The commission shall consist of 
        14 members.
            (2) Members.--As soon as practicable after the date 
        on which funds are first made available to carry out 
        this section, the Secretary shall appoint members to 
        the commission according to the following requirements:
                    (A) At least 1 member shall represent a 
                national consumer organization.
                    (B) At least 4 members shall represent 
                land-grant universities or NLGCA Institutions 
                (as defined in section 1404 of the National 
                Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3103)) with 
                accredited dairy economic programs, with at 
                least 2 of those members being experts in the 
                field of economics.
                    (C) At least 1 member shall represent the 
                food and beverage retail sector.
                    (D) 4 dairy producers and 4 dairy 
                processors, appointed so as to balance 
                geographical distribution of milk production 
                and dairy processing, reflect all segments of 
                dairy processing, and represent all regions of 
                the United States equitably, including States 
                that operate outside of a Federal milk 
                marketing order.
            (3) Chair.--The commission shall elect 1 of the 
        appointed members of the commission to serve as 
        chairperson for the duration of the proceedings of the 
        commission.
            (4) Vacancy.--Any vacancy occurring before the 
        termination of the commission shall be filled in the 
        same manner as the original appointment.
            (5) Compensation.--Members of the commission shall 
        serve without compensation, but shall be reimbursed by 
        the Secretary from existing budget authority for 
        necessary and reasonable expenses incurred in the 
        performance of the duties of the commission.
    (d) Report.--
            (1) In general.--Not later than 2 years after the 
        date of the first meeting of the commission, the 
        commission shall submit to Congress and the Secretary a 
        report describing the results of the review and 
        evaluation conducted under this section, including such 
        recommendations regarding the legislative and 
        regulatory options considered under subsection (b) as 
        the commission considers to be appropriate.
            (2) Opinions.--The report findings shall reflect, 
        to the maximum extent practicable, a consensus opinion 
        of the commission members, but the report may include 
        majority and minority findings regarding those matters 
        for which consensus was not reached.
    (e) Advisory Nature.--The commission is wholly advisory in 
nature, and the recommendations of the commission are 
nonbinding.
    (f) No Effect on Existing Programs.--The Secretary shall 
not allow the existence of the commission to impede, delay, or 
otherwise affect any decisionmaking process of the Department 
of Agriculture, including any rulemaking procedures planned, 
proposed, or near completion.
    (g) Administrative Assistance.--The Secretary shall provide 
administrative support to the commission, and expend to carry 
out this section such funds as necessary from budget authority 
available to the Secretary.
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.
    (i) Termination.--The commission shall terminate effective 
on the date of the submission of the report under subsection 
(d).

SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES.

    (a) Electronic Reporting.--Section 273 of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1637b) is amended--
            (1) by redesignating subsection (d) as subsection 
        (e); and
            (2) by inserting after subsection (c) the 
        following:
    ``(d) Electronic Reporting.--
            ``(1) In general.--Subject to the availability of 
        funds under paragraph (3), the Secretary shall 
        establish an electronic reporting system to carry out 
        this section.
            ``(2) Frequency of reports.--After the 
        establishment of the electronic reporting system in 
        accordance with paragraph (1), the Secretary shall 
        increase the frequency of the reports required under 
        this section.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out this subsection.''.
    (b) Quarterly Audits.--Section 273(c) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1637b(c)) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Verification.--
                    ``(A) In general.--The Secretary shall take 
                such actions as the Secretary considers 
                necessary to verify the accuracy of the 
                information submitted or reported under this 
                subtitle.
                    ``(B) Quarterly audits.--The Secretary 
                shall quarterly conduct an audit of information 
                submitted or reported under this subtitle and 
                compare such information with other related 
                dairy market statistics.''.

                       Subtitle F--Administration

SEC. 1601. ADMINISTRATION GENERALLY.

    (a) Use of Commodity Credit Corporation.--Except as 
otherwise provided in this title, the Secretary shall use the 
funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out this title.
    (b) Determinations by Secretary.--A determination made by 
the Secretary under this title shall be final and conclusive.
    (c) Regulations.--
            (1) In general.--Except as otherwise provided in 
        this subsection, not later than 90 days after the date 
        of enactment of this Act, the Secretary and the 
        Commodity Credit Corporation, as appropriate, shall 
        promulgate such regulations as are necessary to 
        implement this title and the amendments made by this 
        title.
            (2) Procedure.--The promulgation of the regulations 
        and administration of this title and the amendments 
        made by this title shall be made without regard to--
                    (A) chapter 35 of title 44, United States 
                Code (commonly known as the ``Paperwork 
                Reduction Act'');
                    (B) the Statement of Policy of the 
                Secretary of Agriculture effective July 24, 
                1971 (36 Fed. Reg. 13804), relating to notices 
                of proposed rulemaking and public participation 
                in rulemaking; and
                    (C) the notice and comment provisions of 
                section 553 of title 5, United States Code.
            (3) Congressional review of agency rulemaking.--In 
        carrying out this subsection, the Secretary shall use 
        the authority provided under section 808 of title 5, 
        United States Code.
            (4) Interim regulations.--Notwithstanding 
        paragraphs (1) and (2), the Secretary shall implement 
        the amendments made by sections 1603 and 1604 for the 
        2009 crop, fiscal, or program year, as appropriate, 
        through the promulgation of an interim rule.
    (d) Adjustment Authority Related to Trade Agreements 
Compliance.--
            (1) Required determination; adjustment.--If the 
        Secretary determines that expenditures under this title 
        that are subject to the total allowable domestic 
        support levels under the Uruguay Round Agreements (as 
        defined in section 2 of the Uruguay Round Agreements 
        Act (19 U.S.C. 3501)) will exceed such allowable levels 
        for any applicable reporting period, the Secretary 
        shall, to the maximum extent practicable, make 
        adjustments in the amount of such expenditures during 
        that period to ensure that such expenditures do not 
        exceed such allowable levels.
            (2) Congressional notification.--Before making any 
        adjustment under paragraph (1), the Secretary shall 
        submit to the Committee on Agriculture of the House of 
        Representatives or the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report 
        describing the determination made under that paragraph 
        and the extent of the adjustment to be made.
    (e) Treatment of Advance Payment Option.--Section 1601(d) 
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
7991(d)) is amended--
            (1) in paragraph (1), by striking ``and'' at the 
        end;
            (2) in paragraph (2), by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) the advance payment of direct payments and 
        counter-cyclical payments under title I of the Food, 
        Conservation, and Energy Act of 2008.''.

SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

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

SEC. 1603. PAYMENT LIMITATIONS.

    (a) Extension of Limitations.--Sections 1001 and 1001C(a) 
of the Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are 
amended by striking ``Farm Security and Rural Investment Act of 
2002'' each place it appears and inserting ``Food, 
Conservation, and Energy Act of 2008''.
    (b) Revision of Limitations.--
            (1) Definitions.--Section 1001(a) of the Food 
        Security Act of 1985 (7 U.S.C. 1308(a)) is amended--
                    (A) in the matter preceding paragraph (1), 
                by inserting ``through section 1001F''after 
                ``section'';
                    (B) by striking paragraph (2) and 
                redesignating paragraph (3) as paragraph (5); 
                and
                    (C) by inserting after paragraph (1) the 
                following:
            ``(2) Family member.--The term `family member' 
        means a person to whom a member in the farming 
        operation is related as lineal ancestor, lineal 
        descendant, sibling, spouse, or otherwise by marriage.
            ``(3) Legal entity.--The term `legal entity' means 
        an entity that is created under Federal or State law 
        and that--
                    ``(A) owns land or an agricultural 
                commodity; or
                    ``(B) produces an agricultural commodity.
            ``(4) Person.--The term `person' means a natural 
        person, and does not include a legal entity.''.
            (2) Limitation on direct payments and counter-
        cyclical payments.--Section 1001 of the Food Security 
        Act of 1985 (7 U.S.C. 1308) is amended by striking 
        subsections (b), (c), and (d) and inserting the 
        following:
    ``(b) Limitation on Direct Payments, Counter-Cyclical 
Payments, and ACRE Payments for Covered Commodities (Other Than 
Peanuts).--
            ``(1) Direct payments.--The total amount of direct 
        payments received, directly or indirectly, by a person 
        or legal entity (except a joint venture or a general 
        partnership) for any crop year under subtitle A of 
        title I of the Food, Conservation, and Energy Act of 
        2008 for 1 or more covered commodities (except for 
        peanuts) may not exceed--
                    ``(A) in the case of a person or legal 
                entity that does not participate in the average 
                crop revenue election program under section 
                1105 of that Act, $40,000; or
                    ``(B) in the case of a person or legal 
                entity that participates in the average crop 
                revenue election program under section 1105 of 
                that Act, an amount equal to--
                            ``(i) the payment limit specified 
                        in subparagraph (A); less
                            ``(ii) the amount of the reduction 
                        in direct payments under section 
                        1105(a)(1) of that Act.
            ``(2) Counter-cyclical payments.--In the case of a 
        person or legal entity (except a joint venture or a 
        general partnership) that does not participate in the 
        average crop revenue election program under section 
        1105 of the Food, Conservation, and Energy Act of 2008, 
        the total amount of counter-cyclical payments received, 
        directly or indirectly, by the person or legal entity 
        for any crop year under subtitle A of title I of that 
        Act for 1 or more covered commodities (except for 
        peanuts) may not exceed $65,000.
            ``(3) ACRE and counter-cyclical payments.--In the 
        case of a person or legal entity (except a joint 
        venture or a general partnership) that participates in 
        the average crop revenue election program under section 
        1105 of the Food, Conservation, and Energy Act of 2008, 
        the total amount of average crop revenue election 
        payments and counter-cyclical payments received, 
        directly or indirectly, by the person or legal entity 
        for any crop year for 1 or more covered commodities 
        (except for peanuts) may not exceed the sum of--
                    ``(A) $65,000; and
                    ``(B) the amount by which the direct 
                payment limitation is reduced under paragraph 
                (1)(B).
    ``(c) Limitation on Direct Payments, Counter-Cyclical 
Payments, and ACRE Payments for Peanuts.--
            ``(1) Direct payments.--The total amount of direct 
        payments received, directly or indirectly, by a person 
        or legal entity (except a joint venture or a general 
        partnership) for any crop year under subtitle C of 
        title I of the Food, Conservation, and Energy Act of 
        2008 for peanuts may not exceed--
                    ``(A) in the case of a person or legal 
                entity that does not participate in the average 
                crop revenue election program under section 
                1105 of that Act, $40,000; or
                    ``(B) in the case of a person or legal 
                entity that participates in the average crop 
                revenue election program under section 1105 of 
                that Act, an amount equal to--
                            ``(i) the payment limit specified 
                        in subparagraph (A); less
                            ``(ii) the amount of the reduction 
                        in direct payments under section 
                        1105(a)(1) of that Act.
            ``(2) Counter-cyclical payments.--In the case of a 
        person or legal entity (except a joint venture or a 
        general partnership) that does not participate in the 
        average crop revenue election program under section 
        1105 of the Food, Conservation, and Energy Act of 2008, 
        the total amount of counter-cyclical payments received, 
        directly or indirectly, by the person or legal entity 
        for any crop year under subtitle C of title I of that 
        Act for peanuts may not exceed $65,000.
            ``(3) ACRE and counter-cyclical payments.--In the 
        case of a person or legal entity (except a joint 
        venture or a general partnership) that participates in 
        the average crop revenue election program under section 
        1105 of the Food, Conservation, and Energy Act of 2008, 
        the total amount of average crop revenue election 
        payments received, directly or indirectly, by the 
        person or legal entity for any crop year for peanuts 
        may not exceed the sum of--
                    ``(A) $65,000; and
                    ``(B) the amount by which the direct 
                payment limitation is reduced under paragraph 
                (1)(B).
    ``(d) Limitation on Applicability.--Nothing in this section 
authorizes any limitation on any benefit associated with the 
marketing assistance loan program or the loan deficiency 
payment program under title I of the Food, Conservation, and 
Energy Act of 2008.''.
            (3) Direct attribution.--Section 1001 of the Food 
        Security Act of 1985 (7 U.S.C. 1308) is amended--
                    (A) by striking subsections (e) and (f) and 
                redesignating subsection (g) as subsection (h); 
                and
                    (B) by inserting after subsection (d) the 
                following:
    ``(e) Attribution of Payments.--
            ``(1) In general.--In implementing subsections (b) 
        and (c) and a program described in paragraphs (1)(C) 
        and (2)(B) of section 1001D(b), the Secretary shall 
        issue such regulations as are necessary to ensure that 
        the total amount of payments are attributed to a person 
        by taking into account the direct and indirect 
        ownership interests of the person in a legal entity 
        that is eligible to receive the payments.
            ``(2) Payments to a person.--Each payment made 
        directly to a person shall be combined with the pro 
        rata interest of the person in payments received by a 
        legal entity in which the person has a direct or 
        indirect ownership interest unless the payments of the 
        legal entity have been reduced by the pro rata share of 
        the person.
            ``(3) Payments to a legal entity.--
                    ``(A) In general.--Each payment made to a 
                legal entity shall be attributed to those 
                persons who have a direct or indirect ownership 
                interest in the legal entity unless the payment 
                to the legal entity has been reduced by the pro 
                rata share of the person.
                    ``(B) Attribution of payments.--
                            ``(i) Payment limits.--Except as 
                        provided in clause (ii), payments made 
                        to a legal entity shall not exceed the 
                        amounts specified in subsections (b) 
                        and (c).
                            ``(ii) Exception for joint ventures 
                        and general partnerships.--Payments 
                        made to a joint venture or a general 
                        partnership shall not exceed, for each 
                        payment specified in subsections (b) 
                        and (c), the amount determined by 
                        multiplying the maximum payment amount 
                        specified in subsections (b) and (c) by 
                        the number of persons and legal 
                        entities (other than joint ventures and 
                        general partnerships) that comprise the 
                        ownership of the joint venture or 
                        general partnership.
                            ``(iii) Reduction.--Payments made 
                        to a legal entity shall be reduced 
                        proportionately by an amount that 
                        represents the direct or indirect 
                        ownership in the legal entity by any 
                        person or legal entity that has 
                        otherwise exceeded the applicable 
                        maximum payment limitation.
            ``(4) Four levels of attribution for embedded legal 
        entities.--
                    ``(A) In general.--Attribution of payments 
                made to legal entities shall be traced through 
                4 levels of ownership in legal entities.
                    ``(B) First level.--Any payments made to a 
                legal entity (a first-tier legal entity) that 
                is owned in whole or in part by a person shall 
                be attributed to the person in an amount that 
                represents the direct ownership in the first-
                tier legal entity by the person.
                    ``(C) Second level.--
                            ``(i) In general.--Any payments 
                        made to a first-tier legal entity that 
                        is owned (in whole or in part) by 
                        another legal entity (a second-tier 
                        legal entity) shall be attributed to 
                        the second-tier legal entity in 
                        proportion to the ownership of the 
                        second-tier legal entity in the first-
                        tier legal entity.
                            ``(ii) Ownership by a person.--If 
                        the second-tier legal entity is owned 
                        (in whole or in part) by a person, the 
                        amount of the payment made to the 
                        first-tier legal entity shall be 
                        attributed to the person in the amount 
                        that represents the indirect ownership 
                        in the first-tier legal entity by the 
                        person.
                    ``(D) Third and fourth levels.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), the Secretary 
                        shall attribute payments at the third 
                        and fourth tiers of ownership in the 
                        same manner as specified in 
                        subparagraph (C).
                            ``(ii) Fourth-tier ownership.--If 
                        the fourth-tier of ownership is that of 
                        a fourth-tier legal entity and not that 
                        of a person, the Secretary shall reduce 
                        the amount of the payment to be made to 
                        the first-tier legal entity in the 
                        amount that represents the indirect 
                        ownership in the first-tier legal 
                        entity by the fourth-tier legal entity.
    ``(f) Special Rules.--
            ``(1) Minor children.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), payments received by a child 
                under the age of 18 shall be attributed to the 
                parents of the child.
                    ``(B) Regulations.--The Secretary shall 
                issue regulations specifying the conditions 
                under which payments received by a child under 
                the age of 18 will not be attributed to the 
                parents of the child.
            ``(2) Marketing cooperatives.--Subsections (b) and 
        (c) shall not apply to a cooperative association of 
        producers with respect to commodities produced by the 
        members of the association that are marketed by the 
        association on behalf of the members of the association 
        but shall apply to the producers as persons.
            ``(3) Trusts and estates.--
                    ``(A) In general.--With respect to 
                irrevocable trusts and estates, the Secretary 
                shall administer this section through section 
                1001F in such manner as the Secretary 
                determines will ensure the fair and equitable 
                treatment of the beneficiaries of the trusts 
                and estates.
                    ``(B) Irrevocable trust.--
                            ``(i) In general.--In order for a 
                        trust to be considered an irrevocable 
                        trust, the terms of the trust agreement 
                        shall not--
                                    ``(I) allow for 
                                modification or termination of 
                                the trust by the grantor;
                                    ``(II) allow for the 
                                grantor to have any future, 
                                contingent, or remainder 
                                interest in the corpus of the 
                                trust; or
                                    ``(III) except as provided 
                                in clause (ii), provide for the 
                                transfer of the corpus of the 
                                trust to the remainder 
                                beneficiary in less than 20 
                                years beginning on the date the 
                                trust is established.
                            ``(ii) Exception.--Clause (i)(III) 
                        shall not apply in a case in which the 
                        transfer is--
                                    ``(I) contingent on the 
                                remainder beneficiary achieving 
                                at least the age of majority; 
                                or
                                    ``(II) contingent on the 
                                death of the grantor or income 
                                beneficiary.
                    ``(C) Revocable trust.--For the purposes of 
                this section through section 1001F, a revocable 
                trust shall be considered to be the same person 
                as the grantor of the trust.
            ``(4) Cash rent tenants.--
                    ``(A) Definition.--In this paragraph, the 
                term `cash rent tenant' means a person or legal 
                entity that rents land--
                            ``(i) for cash; or
                            ``(ii) for a crop share guaranteed 
                        as to the amount of the commodity to be 
                        paid in rent.
                    ``(B) Restriction.--A cash rent tenant who 
                makes a significant contribution of active 
                personal management, but not of personal labor, 
                with respect to a farming operation shall be 
                eligible to receive a payment described in 
                subsection (b) or (c) only if the tenant makes 
                a significant contribution of equipment to the 
                farming operation.
            ``(5) Federal agencies.--
                    ``(A) In general.--Notwithstanding 
                subsection (d), a Federal agency shall not be 
                eligible to receive any payment, benefit, or 
                loan under title I of the Food, Conservation, 
                and Energy Act of 2008 or title XII of this 
                Act.
                    ``(B) Land rental.--A lessee of land owned 
                by a Federal agency may receive a payment 
                described in subsection (b), (c), or (d) if the 
                lessee otherwise meets all applicable criteria.
            ``(6) State and local governments.--
                    ``(A) In general.--Notwithstanding 
                subsection (d), except as provided in 
                subsection (g), a State or local government, or 
                political subdivision or agency of the 
                government, shall not be eligible to receive 
                any payment, benefit, or loan under title I of 
                the Food, Conservation, and Energy Act of 2008 
                or title XII of this Act.
                    ``(B) Tenants.--A lessee of land owned by a 
                State or local government, or political 
                subdivision or agency of the government, may 
                receive payments described in subsections (b), 
                (c), and (d) if the lessee otherwise meets all 
                applicable criteria.
            ``(7) Changes in farming operations.--
                    ``(A) In general.--In the administration of 
                this section through section 1001F, the 
                Secretary may not approve any change in a 
                farming operation that otherwise will increase 
                the number of persons to which the limitations 
                under this section are applied unless the 
                Secretary determines that the change is bona 
                fide and substantive.
                    ``(B) Family members.--The addition of a 
                family member to a farming operation under the 
                criteria set out in section 1001A shall be 
                considered a bona fide and substantive change 
                in the farming operation.
            ``(8) Death of owner.--
                    ``(A) In general.--If any ownership 
                interest in land or a commodity is transferred 
                as the result of the death of a program 
                participant, the new owner of the land or 
                commodity may, if the person is otherwise 
                eligible to participate in the applicable 
                program, succeed to the contract of the prior 
                owner and receive payments subject to this 
                section without regard to the amount of 
                payments received by the new owner.
                    ``(B) Limitations on prior owner.--Payments 
                made under this paragraph shall not exceed the 
                amount to which the previous owner was entitled 
                to receive under the terms of the contract at 
                the time of the death of the prior owner.
    ``(g) Public Schools.--
            ``(1) In general.--Notwithstanding subsection 
        (f)(6)(A), a State or local government, or political 
        subdivision or agency of the government, shall be 
        eligible, subject to the limitation in paragraph (2), 
        to receive a payment described in subsection (b) or (c) 
        for land owned by the State or local government, or 
        political subdivision or agency of the government, that 
        is used to maintain a public school.
            ``(2) Limitation.--
                    ``(A) In general.--For each State, the 
                total amount of payments described in 
                subsections (b) and (c) that are received 
                collectively by the State and local government 
                and all political subdivisions or agencies of 
                those governments shall not exceed $500,000.
                    ``(B) Exception.--The limitation in 
                subparagraph (A) shall not apply to States with 
                a population of less than 1,500,000.''.
    (c) Repeal of 3-Entity Rule.--Section 1001A of the Food 
Security Act of 1985 (7 U.S.C. 1308-1) is amended--
            (1) in the section heading, by striking 
        ``prevention of creation of entities to qualify as 
        separate persons'' and inserting ``notification of 
        interests''; and
            (2) by striking subsection (a) and inserting the 
        following:
    ``(a) Notification of Interests.--To facilitate 
administration of section 1001 and this section, each person or 
legal entity receiving payments described in subsections (b) 
and (c) of section 1001 as a separate person or legal entity 
shall separately provide to the Secretary, at such times and in 
such manner as prescribed by the Secretary--
            ``(1) the name and social security number of each 
        person, or the name and taxpayer identification number 
        of each legal entity, that holds or acquires an 
        ownership interest in the separate person or legal 
        entity; and
            ``(2) the name and taxpayer identification number 
        of each legal entity in which the person or legal 
        entity holds an ownership interest.''.
    (d) Amendment for Consistency.--Section 1001A of the Food 
Security Act of 1985 (7 U.S.C. 1308-1) is amended by striking 
subsection (b) and inserting the following:
    ``(b) Actively Engaged.--
            ``(1) In general.--To be eligible to receive a 
        payment described in subsection (b) or (c) of section 
        1001, a person or legal entity shall be actively 
        engaged in farming with respect to a farming operation 
        as provided in this subsection or subsection (c).
            ``(2) Classes actively engaged.--Except as provided 
        in subsections (c) and (d)--
                    ``(A) a person (including a person 
                participating in a farming operation as a 
                partner in a general partnership, a participant 
                in a joint venture, a grantor of a revocable 
                trust, or a participant in a similar entity, as 
                determined by the Secretary) shall be 
                considered to be actively engaged in farming 
                with respect to a farming operation if--
                            ``(i) the person makes a 
                        significant contribution (based on the 
                        total value of the farming operation) 
                        to the farming operation of--
                                    ``(I) capital, equipment, 
                                or land; and
                                    ``(II) personal labor or 
                                active personal management;
                            ``(ii) the person's share of the 
                        profits or losses from the farming 
                        operation is commensurate with the 
                        contributions of the person to the 
                        farming operation; and
                            ``(iii) the contributions of the 
                        person are at risk;
                    ``(B) a legal entity that is a corporation, 
                joint stock company, association, limited 
                partnership, charitable organization, or other 
                similar entity determined by the Secretary 
                (including any such legal entity participating 
                in the farming operation as a partner in a 
                general partnership, a participant in a joint 
                venture, a grantor of a revocable trust, or as 
                a participant in a similar legal entity as 
                determined by the Secretary) shall be 
                considered as actively engaged in farming with 
                respect to a farming operation if--
                            ``(i) the legal entity separately 
                        makes a significant contribution (based 
                        on the total value of the farming 
                        operation) of capital, equipment, or 
                        land;
                            ``(ii) the stockholders or members 
                        collectively make a significant 
                        contribution of personal labor or 
                        active personal management to the 
                        operation; and
                            ``(iii) the standards provided in 
                        clauses (ii) and (iii) of subparagraph 
                        (A), as applied to the legal entity, 
                        are met by the legal entity;
                    ``(C) if a legal entity that is a general 
                partnership, joint venture, or similar entity, 
                as determined by the Secretary, separately 
                makes a significant contribution (based on the 
                total value of the farming operation involved) 
                of capital, equipment, or land, and the 
                standards provided in clauses (ii) and (iii) of 
                subparagraph (A), as applied to the legal 
                entity, are met by the legal entity, the 
                partners or members making a significant 
                contribution of personal labor or active 
                personal management shall be considered to be 
                actively engaged in farming with respect to the 
                farming operation involved; and
                    ``(D) in making determinations under this 
                subsection regarding equipment and personal 
                labor, the Secretary shall take into 
                consideration the equipment and personal labor 
                normally and customarily provided by farm 
                operators in the area involved to produce 
                program crops.
    ``(c) Special Classes Actively Engaged.--
            ``(1) Landowner.--A person or legal entity that is 
        a landowner contributing the owned land to a farming 
        operation shall be considered to be actively engaged in 
        farming with respect to the farming operation if--
                    ``(A) the landowner receives rent or income 
                for the use of the land based on the production 
                on the land or the operating results of the 
                operation; and
                    ``(B) the person or legal entity meets the 
                standards provided in clauses (ii) and (iii) of 
                subsection (b)(2)(A).
            ``(2) Adult family member.--If a majority of the 
        participants in a farming operation are family members, 
        an adult family member shall be considered to be 
        actively engaged in farming with respect to the farming 
        operation if the person--
                    ``(A) makes a significant contribution, 
                based on the total value of the farming 
                operation, of active personal management or 
                personal labor; and
                    ``(B) with respect to such contribution, 
                meets the standards provided in clauses (ii) 
                and (iii) of subsection (b)(2)(A).
            ``(3) Sharecropper.--A sharecropper who makes a 
        significant contribution of personal labor to a farming 
        operation shall be considered to be actively engaged in 
        farming with respect to the farming operation if the 
        contribution meets the standards provided in clauses 
        (ii) and (iii) of subsection (b)(2)(A).
            ``(4) Growers of hybrid seed.--In determining 
        whether a person or legal entity growing hybrid seed 
        under contract shall be considered to be actively 
        engaged in farming, the Secretary shall not take into 
        consideration the existence of a hybrid seed contract.
            ``(5) Custom farming services.--
                    ``(A) In general.--A person or legal entity 
                receiving custom farming services shall be 
                considered separately eligible for payment 
                limitation purposes if the person or legal 
                entity is actively engaged in farming based on 
                subsection (b)(2) or paragraphs (1) through (4) 
                of this subsection.
                    ``(B) Prohibition.--No other rules with 
                respect to custom farming shall apply.
            ``(6) Spouse.--If 1 spouse (or estate of a deceased 
        spouse) is determined to be actively engaged, the other 
        spouse shall be determined to have met the requirements 
        of subsection (b)(2)(A)(i)(II).
    ``(d) Classes Not Actively Engaged.--
            ``(1) Cash rent landlord.--A landlord contributing 
        land to a farming operation shall not be considered to 
        be actively engaged in farming with respect to the 
        farming operation if the landlord receives cash rent, 
        or a crop share guaranteed as to the amount of the 
        commodity to be paid in rent, for the use of the land.
            ``(2) Other persons and legal entities.--Any other 
        person or legal entity that the Secretary determines 
        does not meet the standards described in subsections 
        (b)(2) and (c) shall not be considered to be actively 
        engaged in farming with respect to a farming 
        operation.''.
    (e) Denial of Program Benefits.--Section 1001B of the Food 
Security Act of 1985 (7 U.S.C. 1308-2) is amended to read as 
follows:

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

    ``(a) 2-Year Denial of Program Benefits.--A person or legal 
entity shall be ineligible to receive payments specified in 
subsections (b) and (c) of section 1001 for the crop year, and 
the succeeding crop year, in which the Secretary determines 
that the person or legal entity--
            ``(1) failed to comply with section 1001A(b) and 
        adopted or participated in adopting a scheme or device 
        to evade the application of section 1001, 1001A, or 
        1001C; or
            ``(2) intentionally concealed the interest of the 
        person or legal entity in any farm or legal entity 
        engaged in farming.
    ``(b) Extended Ineligibility.--If the Secretary determines 
that a person or legal entity, for the benefit of the person or 
legal entity or the benefit of any other person or legal 
entity, has knowingly engaged in, or aided in the creation of a 
fraudulent document, failed to disclose material information 
relevant to the administration of sections 1001 through 1001F, 
or committed other equally serious actions (as identified in 
regulations issued by the Secretary), the Secretary may for a 
period not to exceed 5 crop years deny the issuance of payments 
to the person or legal entity.
    ``(c) Pro Rata Denial.--
            ``(1) In general.--Payments otherwise owed to a 
        person or legal entity described in subsections (a) or 
        (b) shall be denied in a pro rata manner based on the 
        ownership interest of the person or legal entity in a 
        farm.
            ``(2) Cash rent tenant.--Payments otherwise payable 
        to a person or legal entity shall be denied in a pro 
        rata manner if the person or legal entity is a cash 
        rent tenant on a farm owned or under the control of a 
        person or legal entity with respect to which a 
        determination has been made under subsection (a) or 
        (b).
    ``(d) Joint and Several Liability.--Any legal entity 
(including partnerships and joint ventures) and any member of 
any legal entity determined to have knowingly participated in a 
scheme or device to evade, or that has the purpose of evading, 
sections 1001, 1001A, or 1001C shall be jointly and severally 
liable for any amounts that are payable to the Secretary as the 
result of the scheme or device (including amounts necessary to 
recover those amounts).
    ``(e) Release.--The Secretary may partially or fully 
release from liability any person or legal entity who 
cooperates with the Secretary in enforcing sections 1001, 
1001A, and 1001C, and this section.''
    (f) Conforming Amendment To Apply Direct Attribution to 
NAP.--
            (1) In general.--Section 196(i) of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7333(i)) is amended--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) Definitions.--In this subsection, the terms 
        `legal entity' and `person' have the meanings given 
        those terms in section 1001(a) of the Food Security Act 
        of 1985 (7 U.S.C. 1308(a)).
            ``(2) Payment limitation.--The total amount of 
        payments received, directly or indirectly, by a person 
        or legal entity (excluding a joint venture or general 
        partnership) for any crop year may not exceed 
        $100,000.'';
                    (B) by striking paragraph (4) and inserting 
                the following:
            ``(4) Adjusted gross income limitation.--A person 
        or legal entity that has an average adjusted gross 
        income in excess of the average adjusted gross income 
        limitation applicable under section 1001D(b)(1)(A) of 
        the Food Security Act of 1985 (7 U.S.C. 1308-
        3a(b)(1)(A)), or a successor provision, shall not be 
        eligible to receive noninsured crop disaster assistance 
        under this section.''; and
                    (C) in paragraph (5)--
                            (i) by striking ``necessary to 
                        ensure'' and inserting ``necessary--
                    ``(A) to ensure''; and
                            (ii) by striking ``this 
                        subsection.'' and inserting the 
                        following: ``this subsection; and
                    ``(B) to ensure that payments under this 
                section are attributed to a person or legal 
                entity (excluding a joint venture or general 
                partnership) in accordance with the terms and 
                conditions of sections 1001 through 1001D of 
                the Food Security Act of 1985 (7 U.S.C. 1308 et 
                seq.), as determined by the Secretary.''.
            (2) Transition.--Section 196(i) of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7333(i)), as in effect on September 30, 2007, 
        shall apply with respect to the 2007 and 2008 crops of 
        any eligible crop.
    (g) Conforming Amendments.--
            (1) Section 1009(e) of the Food Security Act of 
        1985 (7 U.S.C. 1308a(e)) is amended in the second 
        sentence by striking ``of $50,000''.
            (2) Section 609(b)(1) of the Emergency Livestock 
        Feed Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is 
        amended by inserting ``(before the amendment made by 
        section 1703(a) of the Food, Conservation, and Energy 
        Act of 2008)'' after ``1985''.
            (3) Section 524(b)(3) of the Federal Crop Insurance 
        Act (7 U.S.C. 1524(b)(3)) is amended by inserting 
        ``(before the amendment made by section 1703(a) of the 
        Food, Conservation, and Energy Act of 2008)'' after 
        ``1308(5)))''.
            (4) Section 10204(c)(1) of the Farm Security and 
        Rural Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is 
        amended by inserting ``(before the amendment made by 
        section 1703(a) of the Food, Conservation, and Energy 
        Act of 2008)'' after ``1308)''.
            (5) Section 1271(c)(3)(A) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (16 U.S.C. 
        2106a(c)(3)(A)) is amended by inserting ``(before the 
        amendment made by section 1703(a) of the Food, 
        Conservation, and Energy Act of 2008)'' after 
        ``1308)''.
            (6) Section 291(2) of the Trade Act of 1974 (19 
        U.S.C. 2401(2)) is amended by inserting ``(before the 
        amendment made by section 1703(a) of the Food, 
        Conservation, and Energy Act of 2008)'' before the 
        period at the end.
    (h) Transition.--Section 1001, 1001A, and 1001B of the Food 
Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in 
effect on September 30, 2007, shall continue to apply with 
respect to the 2007 and 2008 crops of any covered commodity or 
peanuts.

SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

    (a) In General.--Section 1001D of the Food Security Act of 
1985 (7 U.S.C. 1308-3a(e)) is amended to read as follows:

``SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.

    ``(a) Definitions.--
            ``(1) In general.--In this section:
                    ``(A) Average adjusted gross income.--The 
                term `average adjusted gross income', with 
                respect to a person or legal entity, means the 
                average of the adjusted gross income or 
                comparable measure of the person or legal 
                entity over the 3 taxable years preceding the 
                most immediately preceding complete taxable 
                year, as determined by the Secretary.
                    ``(B) Average adjusted gross farm income.--
                The term `average adjusted gross farm income', 
                with respect to a person or legal entity, means 
                the average of the portion of adjusted gross 
                income of the person or legal entity that is 
                attributable to activities related to farming, 
                ranching, or forestry for the 3 taxable years 
                described in subparagraph (A), as determined by 
                the Secretary in accordance with subsection 
                (c).
                    ``(C) Average adjusted gross nonfarm 
                income.--The term `average adjusted gross 
                nonfarm income', with respect to a person or 
                legal entity, means the difference between--
                            ``(i) the average adjusted gross 
                        income of the person or legal entity; 
                        and
                            ``(ii) the average adjusted gross 
                        farm income of the person or legal 
                        entity.
            ``(2) Special rules for certain persons and legal 
        entities.--In the case of a legal entity that is not 
        required to file a Federal income tax return or a 
        person or legal entity that did not have taxable income 
        in 1 or more of the taxable years used to determine the 
        average under subparagraph (A) or (B) of paragraph (1), 
        the Secretary shall provide, by regulation, a method 
        for determining the average adjusted gross income, the 
        average adjusted gross farm income, and the average 
        adjusted gross nonfarm income of the person or legal 
        entity for purposes of this section.
            ``(3) Allocation of income.--On the request of any 
        person filing a joint tax return, the Secretary shall 
        provide for the allocation of average adjusted gross 
        income, average adjusted gross farm income, and average 
        adjusted gross nonfarm income among the persons filing 
        the return if--
                    ``(A) the person provides a certified 
                statement by a certified public accountant or 
                attorney that specifies the method by which the 
                average adjusted gross income, average adjusted 
                gross farm income, and average adjusted gross 
                nonfarm income would have been declared and 
                reported had the persons filed 2 separate 
                returns; and
                    ``(B) the Secretary determines that the 
                method described in the statement is consistent 
                with the information supporting the filed joint 
                tax return.
    ``(b) Limitations.--
            ``(1) Commodity programs.--
                    ``(A) Nonfarm limitation.--Notwithstanding 
                any other provision of law, a person or legal 
                entity shall not be eligible to receive any 
                benefit described in subparagraph (C) during a 
                crop, fiscal, or program year, as appropriate, 
                if the average adjusted gross nonfarm income of 
                the person or legal entity exceeds $500,000.
                    ``(B) Farm limitation.--Notwithstanding any 
                other provision of law, a person or legal 
                entity shall not be eligible to receive a 
                direct payment under subtitle A or C of title I 
                of the Food, Conservation, and Energy Act of 
                2008 during a crop year, if the average 
                adjusted gross farm income of the person or 
                legal entity exceeds $750,000.
                    ``(C) Covered benefits.--Subparagraph (A) 
                applies with respect to the following:
                            ``(i) A direct payment or counter-
                        cyclical payment under subtitle A or C 
                        of title I of the Food, Conservation, 
                        and Energy Act of 2008 or an average 
                        crop revenue election payment under 
                        subtitle A of title I of that Act.
                            ``(ii) A marketing loan gain or 
                        loan deficiency payment under subtitle 
                        B or C of title I of the Food, 
                        Conservation, and Energy Act of 2008.
                            ``(iii) A payment or benefit under 
                        section 196 of the Federal Agriculture 
                        Improvement and Reform Act of 1996 (7 
                        U.S.C. 7333).
                            ``(iv) A payment or benefit under 
                        section 1506 of the Food, Conservation, 
                        and Energy Act of 2008.
                            ``(v) A payment or benefit under 
                        title IX of the Trade Act of 1974 or 
                        subtitle B of the Federal Crop 
                        Insurance Act.
            ``(2) Conservation programs.--
                    ``(A) Limits.--
                            ``(i) In general.--Notwithstanding 
                        any other provision of law, except as 
                        provided in clause (ii), a person or 
                        legal entity shall not be eligible to 
                        receive any benefit described in 
                        subparagraph (B) during a crop, fiscal, 
                        or program year, as appropriate, if the 
                        average adjusted gross nonfarm income 
                        of the person or legal entity exceeds 
                        $1,000,000, unless not less than 66.66 
                        percent of the average adjusted gross 
                        income of the person or legal entity is 
                        average adjusted gross farm income.
                            ``(ii) Exception.--The Secretary 
                        may waive the limitation established 
                        under clause (i) on a case-by-case 
                        basis if the Secretary determines that 
                        environmentally sensitive land of 
                        special significance would be 
                        protected.
                    ``(B) Covered benefits.--Subparagraph (A) 
                applies with respect to the following:
                            ``(i) A payment or benefit under 
                        title XII of this Act.
                            ``(ii) A payment or benefit under 
                        title II of the Farm Security and Rural 
                        Investment Act of 2002 (Public Law 107-
                        171; 116 Stat. 223) or title II of the 
                        Food, Conservation, and Energy Act of 
                        2008.
                            ``(iii) A payment or benefit under 
                        section 524(b) of the Federal Crop 
                        Insurance Act (7 U.S.C. 1524(b)).
    ``(c) Income Determination.--
            ``(1) In general.--In determining the average 
        adjusted gross farm income of a person or legal entity, 
        the Secretary shall include income or benefits derived 
        from or related to--
                    ``(A) the production of crops, including 
                specialty crops (as defined in section 3 of the 
                Specialty Crops Competitiveness Act of 2004 (7 
                U.S.C. 1621 note; Public Law 108-465)) and 
                unfinished raw forestry products;
                    ``(B) the production of livestock 
                (including cattle, elk, reindeer, bison, 
                horses, deer, sheep, goats, swine, poultry, 
                fish, and other aquacultural products used for 
                food, honeybees, and other animals designated 
                by the Secretary) and products produced by, or 
                derived from, livestock;
                    ``(C) the production of farm-based 
                renewable energy (as defined in section 9001 of 
                the Farm Security and Rural Investment Act of 
                2002 (7 U.S.C. 8101));
                    ``(D) the sale, including the sale of 
                easements and development rights, of farm, 
                ranch, or forestry land, water or hunting 
                rights, or environmental benefits;
                    ``(E) the rental or lease of land or 
                equipment used for farming, ranching, or 
                forestry operations, including water or hunting 
                rights;
                    ``(F) the processing (including packing), 
                storing (including shedding), and transporting 
                of farm, ranch, and forestry commodities, 
                including renewable energy;
                    ``(G) the feeding, rearing, or finishing of 
                livestock;
                    ``(H) the sale of land that has been used 
                for agriculture;
                    ``(I) payments or other benefits received 
                under any program authorized under title I of 
                the Farm Security and Rural Investment Act of 
                2002 (7 U.S.C. 7901 et seq.) or title I of the 
                Food, Conservation, and Energy Act of 2008;
                    ``(J) payments or other benefits received 
                under any program authorized under title XII of 
                this Act, title II of the Farm Security and 
                Rural Investment Act of 2002 (Public Law 107-
                171; 116 Stat. 223), or title II of the Food, 
                Conservation, and Energy Act of 2008;
                    ``(K) payments or other benefits received 
                under section 196 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (7 U.S.C. 
                7333);
                    ``(L) payments or other benefits received 
                under title IX of the Trade Act of 1974 or 
                subtitle B of the Federal Crop Insurance Act;
                    ``(M) risk management practices, including 
                benefits received under a program authorized 
                under the Federal Crop Insurance Act (7 U.S.C. 
                1501 et seq.) (including a catastrophic risk 
                protection plan offered under section 508(b) of 
                that Act (7 U.S.C. 1508(b))); and
                    ``(N) any other activity related to 
                farming, ranching, or forestry, as determined 
                by the Secretary.
            ``(2) Income derived from farming, ranching, or 
        forestry.--In determining the average adjusted gross 
        farm income of a person or legal entity, in addition to 
        the inclusions described in paragraph (1), the 
        Secretary shall include any income reported on the 
        Schedule F or other schedule used by the person or 
        legal entity to report income from farming, ranching, 
        or forestry operations to the Internal Revenue Service, 
        to the extent such income is not already included under 
        paragraph (1).
            ``(3) Special rule.--If not less than 66.66 percent 
        of the average adjusted gross income of a person or 
        legal entity is derived from farming, ranching, or 
        forestry operations described in paragraphs (1) and 
        (2), in determining the average adjusted gross farm 
        income of the person or legal entity, the Secretary 
        shall also include--
                    ``(A) the sale of equipment to conduct 
                farm, ranch, or forestry operations; and
                    ``(B) the provision of production inputs 
                and services to farmers, ranchers, foresters, 
                and farm operations.
    ``(d) Enforcement.--
            ``(1) In general.--To comply with subsection (b), 
        at least once every 3 years a person or legal entity 
        shall provide to the Secretary--
                    ``(A) a certification by a certified public 
                accountant or another third party that is 
                acceptable to the Secretary that the average 
                adjusted gross income, average adjusted gross 
                farm income, and average adjusted gross nonfarm 
                income of the person or legal entity does not 
                exceed the applicable limitation specified in 
                that subsection; or
                    ``(B) information and documentation 
                regarding the average adjusted gross income, 
                average adjusted gross farm income, and average 
                adjusted gross nonfarm income of the person or 
                legal entity through other procedures 
                established by the Secretary.
            ``(2) Denial of program benefits.--If the Secretary 
        determines that a person or legal entity has failed to 
        comply with this section, the Secretary shall deny the 
        issuance of applicable payments and benefits specified 
        in paragraphs (1)(C) and (2)(B) of subsection (b) to 
        the person or legal entity, under similar terms and 
        conditions as described in section 1001B.
            ``(3) Audit.--The Secretary shall establish 
        statistically valid procedures under which the 
        Secretary shall conduct targeted audits of such persons 
        or legal entities as the Secretary determines are most 
        likely to exceed the limitations under subsection (b).
    ``(e) Commensurate Reduction.--In the case of a payment or 
benefit described in paragraphs (1)(C) and (2)(B) of subsection 
(b) made in a crop, program, or fiscal year, as appropriate, to 
an entity, general partnership, or joint venture, the amount of 
the payment or benefit shall be reduced by an amount that is 
commensurate with the direct and indirect ownership interest in 
the entity, general partnership, or joint venture of each 
person who has an average adjusted gross income, average 
adjusted gross farm income, or average adjusted gross nonfarm 
income in excess of the applicable limitation specified in 
subsection (b).
    ``(f) Effective Period.--This section shall apply only 
during the 2009 through 2012 crop, program, or fiscal years, as 
appropriate.''.
    (b) Transition.--Section 1001D of the Food Security Act of 
1985 (7 U.S.C. 1308-3a), as in effect on September 30, 2007, 
shall apply with respect to the 2007 and 2008 crop, fiscal, or 
program year, as appropriate, for each program described in 
paragraphs (1)(C) and (2)(B) of subsection (b) of that section 
(as amended by subsection (a)).

SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR COVERED 
                    OILSEED PRODUCERS.

    (a) Incentive Payments Required.--Subject to subsection (b) 
and the availability of appropriations under subsection (h), 
the Secretary shall use funds made available under subsection 
(h) to provide quality incentive payments for the production of 
oilseeds with specialized traits that enhance human health, as 
determined by the Secretary.
    (b) Covered Oilseeds.--The Secretary shall make payments 
under this section only for the production of an oilseed 
variety that has, as determined by the Secretary--
            (1) been demonstrated to improve the health profile 
        of the oilseed for use in human consumption by--
                    (A) reducing or eliminating the need to 
                partially hydrogenate the oil derived from the 
                oilseed for use in human consumption; or
                    (B) adopting new technology traits; and
            (2) 1 or more impediments to commercialization.
    (c) Request for Proposals.--
            (1) Issuance.--If funds are made available to carry 
        out this section for a crop year, the Secretary shall 
        issue a request for proposals for payments under this 
        section.
            (2) Multiyear proposals.--A proponent may submit a 
        multiyear proposal for payments under this section.
            (3) Content of proposals.--A proposal for payments 
        under this section shall include a description of--
                    (A) how use of the oilseed enhances human 
                health;
                    (B) the impediments to commercial use of 
                the oilseed;
                    (C) each oilseed variety described in 
                subsection (b) and the value of the oilseed 
                variety as a matter of public policy;
                    (D) a range for the base price and premiums 
                per bushel or hundredweight to be paid to 
                producers;
                    (E) a per bushel or hundredweight amount of 
                incentive payments requested for each year 
                under this section that does not exceed \1/3\ 
                of the total premium offered for any year;
                    (F) the period of time, not to exceed 4 
                years, during which incentive payments are to 
                be provided to producers; and
                    (G) the targeted total quantity of 
                production and estimated acres needed to 
                produce the targeted quantity for each year 
                under this section.
    (d) Contracts for Production.--
            (1) In general.--The Secretary shall approve 
        successful proposals submitted under subsection (c) on 
        a timely basis.
            (2) Timing of payments.--The Secretary shall make 
        payments to producers under this section after the 
        Secretary receives documentation that the premium 
        required under a contract has been paid to covered 
        producers.
    (e) Administration.--
            (1) In general.--If funding provided for a crop 
        year is not fully allocated under the initial request 
        for proposals under subsection (c), the Secretary shall 
        issue additional requests for proposals for subsequent 
        crop years under this section.
            (2) Prorated payments.--If funding provided for a 
        crop year is less than the amount otherwise approved by 
        the Secretary or for which approval is sought, the 
        Secretary shall prorate the payments or approvals in a 
        manner determined by the Secretary so that the total 
        payments do not exceed the funding level.
    (f) Proprietary Information.--The Secretary shall protect 
proprietary information provided to the Secretary for the 
purpose of administering this section.
    (g) Program Compliance and Penalties.--
            (1) Guarantee.--The proponent, if approved, shall 
        be required to guarantee that the oilseed on which a 
        payment is made by the Secretary under this section is 
        used for human consumption as described in the 
        proposal, as approved by the Secretary.
            (2) Noncompliance.--If oilseeds on which a payment 
        is made by the Secretary under this section are not 
        actually used for the purpose the payment is made, the 
        proponent shall be required to pay to the Secretary an 
        amount equal to, as determined by the Secretary--
                    (A) in the case of an inadvertent failure, 
                twice the amount of the payment made by the 
                Secretary under this section to the producer of 
                the oilseeds; and
                    (B) in any other case, up to twice the full 
                value of the oilseeds involved.
            (3) Documentation.--The Secretary may require such 
        assurances and documentation as may be needed to 
        enforce the guarantee.
            (4) Additional penalties.--
                    (A) In general.--In addition to payments 
                required under paragraph (2), the Secretary may 
                impose penalties on additional persons that use 
                oilseeds the use of which is restricted under 
                this section for a purpose other than the 
                intended use.
                    (B) Amount.--The amount of a penalty under 
                this paragraph shall--
                            (i) be in an amount determined 
                        appropriated by the Secretary; but
                            (ii) not to exceed twice the full 
                        value of the oilseeds.
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2009 through 2012.

SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    Section 164 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7284) is amended by striking ``and 
title I of the Farm Security and Rural Investment Act of 2002'' 
each place it appears and inserting ``title I of the Farm 
Security and Rural Investment Act of 2002, and title I of the 
Food, Conservation, and Energy Act of 2008''.

SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING 
                    LOANS.

    Section 166 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7286) is amended--
            (1) by striking ``and subtitle B and C of title I 
        of the Farm Security and Rural Investment Act of 2002'' 
        each place it appears and inserting ``, title I of the 
        Farm Security and Rural Investment Act of 2002, and 
        title I of the Food, Conservation, and Energy Act of 
        2008''; and
            (2) in subsection (c), by adding at the end the 
        following:
            ``(3) Termination of authority.--The authority to 
        carry out paragraph (1) terminates effective ending 
        with the 2009 crop year.''.

SEC. 1608. ASSIGNMENT OF PAYMENTS.

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

SEC. 1609. TRACKING OF BENEFITS.

    As soon as practicable after the date of enactment of this 
Act, the Secretary may track the benefits provided, directly or 
indirectly, to individuals and entities under titles I and II 
and the amendments made by those titles.

SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.

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

SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER 
                    FARM COMMODITY PROGRAMS.

    (a) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall promulgate 
regulations that--
            (1) describe the circumstances under which, in 
        order to allow for the settlement of estates and for 
        related purposes, payments may be issued in the name of 
        a deceased individual; and
            (2) preclude the issuance of payments to, and on 
        behalf of, deceased individuals that were not eligible 
        for the payments.
    (b) Coordination.--At least twice each year, the Secretary 
shall reconcile the social security numbers of all individuals 
who receive payments under this title, whether directly or 
indirectly, with the Social Security Administration to 
determine if the individuals are alive.

SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible hard white wheat seed.--The term 
        ``eligible hard white wheat seed'' means hard white 
        wheat seed that, as determined by the Secretary, is--
                    (A) certified;
                    (B) of a variety that is suitable for the 
                State in which the seed will be planted;
                    (C) rated at least superior with respect to 
                quality; and
                    (D) specifically approved under a seed 
                establishment program established by the State 
                Department of Agriculture and the State Wheat 
                Commission of the 1 or more States in which the 
                seed will be planted.
            (2) Program.--The term ``program'' means the hard 
        white wheat development program established under 
        subsection (b)(1).
            (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture, in consultation with the 
        State Departments of Agriculture and the State Wheat 
        Commissions of the States in regions in which hard 
        white wheat is produced, as determined by the 
        Secretary.
    (b) Establishment.--
            (1) In general.--Subject to the availability of 
        appropriations, the Secretary shall establish a hard 
        white wheat development program in accordance with 
        paragraph (2) to promote the establishment of hard 
        white wheat as a viable market class of wheat in the 
        United States by encouraging production of at least 
        240,000,000 bushels of hard white wheat by 2012.
            (2) Payments.--
                    (A) In general.--Subject to subparagraphs 
                (B) and (C) and subsection (c), if funds are 
                made available for any of the 2009 through 2012 
                crops of hard white wheat, the Secretary shall 
                make available incentive payments to producers 
                of those crops.
                    (B) Acreage limitation.--The Secretary 
                shall carry out subparagraph (A) subject to a 
                regional limitation determined by the Secretary 
                on the number of acres for which payments may 
                be received that takes into account planting 
                history and potential planting, but does not 
                exceed a total of 2,900,000 acres or the 
                equivalent volume of production based on a 
                yield of 50 bushels per acre.
                    (C) Payment limitations.--Payments to 
                producers on a farm described in subparagraph 
                (A) shall be--
                            (i) in an amount that is not less 
                        than $0.20 per bushel; and
                            (ii) in an amount that is not less 
                        than $2.00 per acre for planting 
                        eligible hard white wheat seed.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $35,000,000 for 
the period of fiscal years 2009 through 2012.

SEC. 1613. DURUM WHEAT QUALITY PROGRAM.

    (a) In General.--Subject to the availability of funds under 
subsection (c), the Secretary shall provide compensation to 
producers of durum wheat in an amount not to exceed 50 percent 
of the actual cost of fungicides applied to a crop of durum 
wheat of the producers to control Fusarium head blight (wheat 
scab) on acres certified to have been planted to Durum wheat in 
a crop year.
    (b) Insufficient Funds.--If the total amount of funds 
appropriated for a fiscal year under subsection (c) are 
insufficient to fulfill all eligible requests for compensation 
under this section, the Secretary shall prorate the 
compensation payments in a manner determined by the Secretary 
to be equitable.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $10,000,000 for 
each of fiscal years 2009 through 2012.

SEC. 1614. STORAGE FACILITY LOANS.

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

SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES.

    Section 8(b)(5)(B)(ii) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is 
amended--
            (1) by redesignating subclauses (I) and (II) as 
        items (aa) and (bb), respectively, and indenting 
        appropriately;
            (2) in the matter preceding item (aa) (as 
        redesignated by paragraph (1)), by striking ``A 
        committee established'' and inserting the following:
                                    ``(I) In general.--Except 
                                as provided in subclause (II), 
                                a committee established''; and
            (3) by adding at the end the following:
                                    ``(II) Combination or 
                                consolidation of areas.--A 
                                committee established by 
                                combining or consolidating 2 or 
                                more county or area committees 
                                shall consist of not fewer than 
                                3 nor more than 11 members 
                                that--
                                            ``(aa) are fairly 
                                        representative of the 
                                        agricultural producers 
                                        within the area covered 
                                        by the county, area, or 
                                        local committee; and
                                            ``(bb) are elected 
                                        by the agricultural 
                                        producers that 
                                        participate or 
                                        cooperate in programs 
                                        administered within the 
                                        area under the 
                                        jurisdiction of the 
                                        county, area, or local 
                                        committee.
                                    ``(III) Representation of 
                                socially disadvantaged farmers 
                                and ranchers.--The Secretary 
                                shall develop procedures to 
                                maintain representation of 
                                socially disadvantaged farmers 
                                and ranchers on combined or 
                                consolidated committees.
                                    ``(IV) Eligibility for 
                                membership.--Notwithstanding 
                                any other producer eligibility 
                                requirements for service on 
                                county or area committees, if a 
                                county or area is consolidated 
                                or combined, a producer shall 
                                be eligible to serve only as a 
                                member of the county or area 
                                committee that the producer 
                                elects to administer the farm 
                                records of the producer.''.

SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES.

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

SEC. 1617. SIGNATURE AUTHORITY.

    (a) In General.--In carrying out this title and title II 
and amendments made by those titles, if the Secretary approves 
a document, the Secretary shall not subsequently determine the 
document is inadequate or invalid because of the lack of 
authority of any person signing the document on behalf of the 
applicant or any other individual, entity, general partnership, 
or joint venture, or the documents relied upon were determined 
inadequate or invalid, unless the person signing the program 
document knowingly and willfully falsified the evidence of 
signature authority or a signature.
    (b) Affirmation.--
            (1) In general.--Nothing in this section prohibits 
        the Secretary from asking a proper party to affirm any 
        document that otherwise would be considered approved 
        under subsection (a).
            (2) No retroactive effect.--A denial of benefits 
        based on a lack of affirmation under paragraph (1) 
        shall not be retroactive with respect to third-party 
        producers who were not the subject of the erroneous 
        representation of authority, if the third-party 
        producers--
                    (A) relied on the prior approval by the 
                Secretary of the documents in good faith; and
                    (B) substantively complied with all program 
                requirements.

SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY.

    Not later than 180 days after the date of enactment of this 
Act, the Secretary shall transmit to the Committee on 
Agriculture and the Committee on Appropriations of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry and the Committee on Appropriations of the Senate 
a report prepared by a third party that describes--
            (1) the data processing and information technology 
        challenges experienced in local offices of the Farm 
        Service Agency;
            (2) the impact of those challenges on service to 
        producers, on efficiency of personnel, and on 
        implementation of this Act;
            (3) the need for information technology system 
        upgrades of the Farm Service Agency relative to other 
        agencies of the Department of Agriculture;
            (4) the detailed plan needed to fulfill the needs 
        of the Department that are identified in paragraph (3), 
        including hardware, software, and infrastructure 
        requirements;
            (5) the estimated cost and timeframe for long-term 
        modernization and stabilization of Farm Service Agency 
        information technology systems;
            (6) the benefits associated with such modernization 
        and stabilization; and
            (7) an evaluation of the existence of appropriate 
        oversight within the Department to ensure that funds 
        needed for systems upgrades can be appropriately 
        managed.

SEC. 1619. INFORMATION GATHERING.

    (a) Geospatial Systems.--The Secretary shall ensure that 
all the geospatial data of the agencies of the Department of 
Agriculture are portable and standardized.
    (b) Limitation on Disclosures.--
            (1) Definition of agricultural operation.--In this 
        subsection, the term ``agricultural operation'' 
        includes the production and marketing of agricultural 
        commodities and livestock.
            (2) Prohibition.--Except as provided in paragraphs 
        (3) and (4), the Secretary, any officer or employee of 
        the Department of Agriculture, or any contractor or 
        cooperator of the Department, shall not disclose--
                    (A) information provided by an agricultural 
                producer or owner of agricultural land 
                concerning the agricultural operation, farming 
                or conservation practices, or the land itself, 
                in order to participate in programs of the 
                Department; or
                    (B) geospatial information otherwise 
                maintained by the Secretary about agricultural 
                land or operations for which information 
                described in subparagraph (A) is provided.
            (3) Authorized disclosures.--
                    (A) Limited release of information.--If the 
                Secretary determines that the information 
                described in paragraph (2) will not be 
                subsequently disclosed except in accordance 
                with paragraph (4), the Secretary may release 
                or disclose the information to a person or 
                Federal, State, local, or tribal agency working 
                in cooperation with the Secretary in any 
                Department program--
                            (i) when providing technical or 
                        financial assistance with respect to 
                        the agricultural operation, 
                        agricultural land, or farming or 
                        conservation practices; or
                            (ii) when responding to a disease 
                        or pest threat to agricultural 
                        operations, if the Secretary determines 
                        that a threat to agricultural 
                        operations exists and the disclosure of 
                        information to a person or cooperating 
                        government entity is necessary to 
                        assist the Secretary in responding to 
                        the disease or pest threat as 
                        authorized by law.
            (4) Exceptions.--Nothing in this subsection 
        affects--
                    (A) the disclosure of payment information 
                (including payment information and the names 
                and addresses of recipients of payments) under 
                any Department program that is otherwise 
                authorized by law;
                    (B) the disclosure of information described 
                in paragraph (2) if the information has been 
                transformed into a statistical or aggregate 
                form without naming any--
                            (i) individual owner, operator, or 
                        producer; or
                            (ii) specific data gathering site; 
                        or
                    (C) the disclosure of information described 
                in paragraph (2) pursuant to the consent of the 
                agricultural producer or owner of agricultural 
                land.
            (5) Condition of other programs.--The participation 
        of the agricultural producer or owner of agricultural 
        land in, or receipt of any benefit under, any program 
        administered by the Secretary may not be conditioned on 
        the consent of the agricultural producer or owner of 
        agricultural land under paragraph (4)(C).
            (6) Waiver of privilege or protection.--The 
        disclosure of information under paragraph (2) shall not 
        constitute a waiver of any applicable privilege or 
        protection under Federal law, including trade secret 
        protection.

SEC. 1620. LEASING OF OFFICE SPACE.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary shall submit to the Committee on Agriculture 
and the Committee on Appropriations of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry and the Committee on Appropriations of the Senate 
a report that describes--
            (1) the costs and time associated with complying 
        with leasing procedures of the General Services 
        Administration relative to the previous independent 
        leasing procedures of the Department of Agriculture;
            (2) the additional staffing needs associated with 
        complying with those procedures; and
            (3) the value added to the leasing process and the 
        ability of the Department to secure best-value leases 
        by complying with the General Services Administration 
        leasing procedures.

SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

    (a) Definitions.--In this section:
            (1) Agricultural commodity.--The term 
        ``agricultural commodity'' has the meaning given the 
        term in section 102 of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5602).
            (2) Geographically disadvantaged farmer or 
        rancher.--The term ``geographically disadvantaged 
        farmer or rancher'' has the meaning given the term in 
        section 10906(a) of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 2204 note; Public Law 
        107-171).
    (b) Authorization.--Subject to the availability of funds 
under subsection (d), the Secretary may provide geographically 
disadvantaged farmers or ranchers direct reimbursement payments 
for activities described in subsection (c).
    (c) Transportation.--
            (1) In general.--Subject to paragraphs (2) and (3), 
        the Secretary may provide direct reimbursement payments 
        to a geographically disadvantaged farmer or rancher to 
        transport an agricultural commodity, or inputs used to 
        produce an agricultural commodity, during a fiscal 
        year.
            (2) Proof of eligibility.--To be eligible to 
        receive assistance under paragraph (1), a 
        geographically disadvantaged farmer or rancher shall 
        demonstrate to the Secretary that transportation of the 
        agricultural commodity or inputs occurred over a 
        distance of more than 30 miles, as determined by the 
        Secretary.
            (3) Amount.--
                    (A) In general.--Subject to paragraph (2), 
                the amount of direct reimbursement payments 
                made to a geographically disadvantaged farmer 
                or rancher under this section for a fiscal year 
                shall equal the product obtained by 
                multiplying--
                            (i) the amount of costs incurred by 
                        the geographically disadvantaged farmer 
                        or rancher for transportation of the 
                        agricultural commodity or inputs during 
                        the fiscal year; and
                            (ii)(I) the percentage of the 
                        allowance for that fiscal year under 
                        section 5941 of title 5, United States 
                        Code, for Federal employees stationed 
                        in Alaska and Hawaii; or
                            (II) in the case of an insular area 
                        (as defined in section 1404 of the 
                        National Agricultural Research, 
                        Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3103)), a comparable 
                        percentage of the allowance for the 
                        fiscal year, as determined by the 
                        Secretary.
                    (B) Limitation.--The total amount of direct 
                reimbursement payments provided by the 
                Secretary under this section shall not exceed 
                $15,000,000 for a fiscal year.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2009 through 2012.

SEC. 1622. IMPLEMENTATION.

    The Secretary shall make available to the Farm Service 
Agency to carry out this title $50,000,000.

SEC. 1623. REPEALS.

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

                         TITLE II--CONSERVATION

     Subtitle A--Definitions and Highly Erodible Land and Wetland 
                              Conservation

SEC. 2001. DEFINITIONS RELATING TO CONSERVATION TITLE OF FOOD SECURITY 
                    ACT OF 1985.

    (a) Beginning Farmer or Rancher.--Section 1201(a) of the 
Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
            (1) by redesignating paragraphs (2) through (6), 
        (7) through (11), (12), (13) through (15), (16), (17), 
        and (18) as paragraphs (3) through (7), (9) through 
        (13), (15), (20) through (22), (24), (26), and (27), 
        respectively; and
            (2) by inserting after paragraph (1) the following 
        new paragraph:
            ``(2) Beginning farmer or rancher.--The term 
        `beginning farmer or rancher' has the meaning given the 
        term in section 343(a)(8) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1991(a)(8)).''.
    (b) Farm.--Section 1201(a) of the Food Security Act of 1985 
(16 U.S.C. 3801(a)) is amended by inserting after paragraph 
(7), as redesignated by subsection (a)(1), the following new 
paragraph:
            ``(8) Farm.--The term `farm' means a farm that--
                    ``(A) is under the general control of one 
                operator;
                    ``(B) has one or more owners;
                    ``(C) consists of one or more tracts of 
                land, whether or not contiguous;
                    ``(D) is located within a county or region, 
                as determined by the Secretary; and
                    ``(E) may contain lands that are incidental 
                to the production of perennial crops, including 
                conserving uses, forestry, and livestock, as 
                determined by the Secretary.''.
    (c) Indian Tribe.--Section 1201(a) of the Food Security Act 
of 1985 (16 U.S.C. 3801(a)) is amended by inserting after 
paragraph (13), as redesignated by subsection (a)(1), the 
following new paragraph:
            ``(14) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4(e) of the 
        Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450b(e)).''.
    (d) Integrated Pest Management; Livestock; Nonindustrial 
Private Forest Land; Person and Legal Entity.--Section 1201(a) 
of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended 
by inserting after paragraph (15), as redesignated by 
subsection (a)(1), the following new paragraphs:
            ``(16) Integrated pest management.--The term 
        `integrated pest management' means a sustainable 
        approach to managing pests by combining biological, 
        cultural, physical, and chemical tools in a way that 
        minimizes economic, health, and environmental risks.
            ``(17) Livestock.--The term `livestock' means all 
        animals raised on farms, as determined by the 
        Secretary.
            ``(18) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' means rural land, 
        as determined by the Secretary, that--
                    ``(A) has existing tree cover or is 
                suitable for growing trees; and
                    ``(B) is owned by any nonindustrial private 
                individual, group, association, corporation, 
                Indian tribe, or other private legal entity 
                that has definitive decisionmaking authority 
                over the land.
            ``(19) Person and legal entity.--For purposes of 
        applying payment limitations under subtitle D, the 
        terms `person' and `legal entity' have the meanings 
        given those terms in section 1001(a) of this Act (7 
        U.S.C. 1308(a)).''.
    (e) Socially Disadvantaged Farmer or Rancher.--Section 
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is 
amended by inserting after paragraph (22), as redesignated by 
subsection (a)(1), the following new paragraph:
            ``(23) Socially disadvantaged farmer or rancher.--
        The term `socially disadvantaged farmer or rancher' has 
        the meaning given the term in section 2501(e)(2) of the 
        Food, Agriculture, Conservation, and Trade Act of 1990 
        (7 U.S.C. 2279(e)(2)).''.
    (f) Technical Assistance.--Section 1201(a) of the Food 
Security Act of 1985 (16 U.S.C. 3801(a)) is amended by 
inserting after paragraph (24), as redesignated by subsection 
(a)(1), the following new paragraph:
            ``(25) Technical assistance.--The term `technical 
        assistance' means technical expertise, information, and 
        tools necessary for the conservation of natural 
        resources on land active in agricultural, forestry, or 
        related uses. The term includes the following:
                    ``(A) Technical services provided directly 
                to farmers, ranchers, and other eligible 
                entities, such as conservation planning, 
                technical consultation, and assistance with 
                design and implementation of conservation 
                practices.
                    ``(B) Technical infrastructure, including 
                activities, processes, tools, and agency 
                functions needed to support delivery of 
                technical services, such as technical 
                standards, resource inventories, training, 
                data, technology, monitoring, and effects 
                analyses.''.

SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO HIGHLY 
                    ERODIBLE LAND CONSERVATION.

    Section 1212 of the Food Security Act of 1985 (16 U.S.C. 
3812) is amended by striking subsection (f) and inserting the 
following new subsection:
    ``(f) Graduated Penalties.--
            ``(1) Ineligibility.--No person shall become 
        ineligible under section 1211 for program loans, 
        payments, and benefits as a result of the failure of 
        the person to actively apply a conservation plan, if 
        the Secretary determines that the person has acted in 
        good faith and without an intent to violate this 
        subtitle.
            ``(2) Eligible reviewers.--A determination of the 
        Secretary, or a designee of the Secretary, under 
        paragraph (1) shall be reviewed by the applicable--
                    ``(A) State Executive Director, with the 
                technical concurrence of the State 
                Conservationist; or
                    ``(B) district director, with the technical 
                concurrence of the area conservationist.
            ``(3) Period for implementation.--A person who 
        meets the requirements of paragraph (1) shall be 
        allowed a reasonable period of time, as determined by 
        the Secretary, but not to exceed 1 year, during which 
        to implement the measures and practices necessary to be 
        considered to be actively applying the conservation 
        plan of the person.
            ``(4) Penalties.--
                    ``(A) Application.--This paragraph applies 
                if the Secretary determines that--
                            ``(i) a person has failed to comply 
                        with section 1211 with respect to 
                        highly erodible cropland, and has acted 
                        in good faith and without an intent to 
                        violate section 1211; or
                            ``(ii) the violation--
                                    ``(I) is technical and 
                                minor in nature; and
                                    ``(II) has a minimal effect 
                                on the erosion control purposes 
                                of the conservation plan 
                                applicable to the land on which 
                                the violation has occurred.
                    ``(B) Reduction.--If this paragraph applies 
                under subparagraph (A), the Secretary shall, in 
                lieu of applying the ineligibility provisions 
                of section 1211, reduce program benefits 
                described in section 1211 that the producer 
                would otherwise be eligible to receive in a 
                crop year by an amount commensurate with the 
                seriousness of the violation, as determined by 
                the Secretary.
            ``(5) Subsequent crop years.--Any person whose 
        benefits are reduced for any crop year under this 
        subsection shall continue to be eligible for all of the 
        benefits described in section 1211 for any subsequent 
        crop year if, prior to the beginning of the subsequent 
        crop year, the Secretary determines that the person is 
        actively applying a conservation plan according to the 
        schedule specified in the plan.''.

SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO WETLAND 
                    CONSERVATION.

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

                Subtitle B--Conservation Reserve Program

SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM.

    Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 
3831(a)) is amended--
            (1) by striking ``2007 calendar year'' and 
        inserting ``2012 fiscal year''; and
            (2) by inserting before the period the following: 
        ``and to address issues raised by State, regional, and 
        national conservation initiatives''; and

SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION RESERVE.

    Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 
3831(b)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``Farm Security and Rural 
                Investment Act of 2002'' and inserting ``Food, 
                Conservation, and Energy Act of 2008''; and
                    (B) by striking the period at the end and 
                inserting a semicolon; and
            (2) in paragraph (4)--
                    (A) in subparagraph (C), by striking ``; 
                or'' and inserting a semicolon;
                    (B) in subparagraph (D), by striking 
                ``and'' at the end and inserting ``or''; and
                    (C) in subparagraph (E), by inserting 
                ``or'' after the semicolon at the end.

SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION RESERVE.

    Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 
3831(d)) is amended--
            (1) by striking ``2007 calendar years'' and 
        inserting ``2009 fiscal years'';
            (2) by striking ``( 16 U.S.C.'' and inserting ``(16 
        U.S.C.''; and
            (3) by adding at the end the following new 
        sentence: ``During fiscal years 2010, 2011, and 2012, 
        the Secretary may maintain up to 32,000,000 acres in 
        the conservation reserve at any 1 time.''.

SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS.

    Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 
3831(f)) is amended by striking ``the Chesapeake Bay Region 
(Pennsylvania, Maryland, and Virginia)'' and inserting ``the 
Chesapeake Bay Region''.

SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES.

    Subsection (g) of section 1231 of the Food Security Act of 
1985 (16 U.S.C. 3831) is amended to read as follows:
    ``(g) Multi-Year Grasses and Legumes.--
            ``(1) In general.--For purposes of this subchapter, 
        alfalfa and other multi-year grasses and legumes in a 
        rotation practice, approved by the Secretary, shall be 
        considered agricultural commodities.
            ``(2) Cropping history.--Alfalfa, when grown as 
        part of a rotation practice, as determined by the 
        Secretary, is an agricultural commodity subject to the 
        cropping history criteria under subsection (b)(1)(B) 
        for the purpose of determining whether highly erodible 
        cropland has been planted or considered planted for 4 
        of the 6 years referred to in such subsection.''.

SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER 
                    ACREAGE IN CONSERVATION RESERVE.

    (a) Revised Program.--
            (1) In general.--Title XII of the Food Security Act 
        of 1985 is amended by inserting after section 1231 (16 
        U.S.C. 3831) the following new section:

``SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER 
                    ACREAGE IN CONSERVATION RESERVE.

    ``(a) Program Required.--
            ``(1) In general.--During the 2008 through 2012 
        fiscal years, the Secretary shall carry out a program 
        in each State under which the Secretary shall enroll 
        eligible acreage described in subsection (b).
            ``(2) Participation among states.--The Secretary 
        shall ensure, to the maximum extent practicable, that 
        owners and operators in each State have an equitable 
        opportunity to participate in the program established 
        under this section.
    ``(b) Eligible Acreage.--
            ``(1) Wetland and related land.--Subject to 
        subsections (c) and (d), an owner or operator may 
        enroll in the conservation reserve, pursuant to the 
        program established under this section, land--
                    ``(A) that is wetland (including a 
                converted wetland described in section 
                1222(b)(1)(A)) that had a cropping history 
                during at least 3 of the immediately preceding 
                10 crop years;
                    ``(B) on which a constructed wetland is to 
                be developed that will receive flow from a row 
                crop agriculture drainage system and is 
                designed to provide nitrogen removal in 
                addition to other wetland functions;
                    ``(C) that was devoted to commercial pond-
                raised aquaculture in any year during the 
                period of calendar years 2002 through 2007; or
                    ``(D) that, after January 1, 1990, and 
                before December 31, 2002, was--
                            ``(i) cropped during at least 3 of 
                        10 crop years; and
                            ``(ii) subject to the natural 
                        overflow of a prairie wetland.
            ``(2) Buffer acreage.--Subject to subsections (c) 
        and (d), an owner or operator may enroll in the 
        conservation reserve, pursuant to the program 
        established under this section, buffer acreage that--
                    ``(A) with respect to land described in 
                subparagraph (A), (B), or (C) of paragraph 
                (1)--
                            ``(i) is contiguous to such land;
                            ``(ii) is used to protect such 
                        land; and
                            ``(iii) is of such width as the 
                        Secretary determines is necessary to 
                        protect such land, taking into 
                        consideration and accommodating the 
                        farming practices (including the 
                        straightening of boundaries to 
                        accommodate machinery) used with 
                        respect to the cropland that surrounds 
                        such land; and
                    ``(B) with respect to land described in 
                subparagraph (D) of paragraph (1), enhances a 
                wildlife benefit to the extent practicable in 
                terms of upland to wetland ratios, as 
                determined by the Secretary.
    ``(c) Program Limitations.--
            ``(1) Acreage limitation.--The Secretary may enroll 
        in the conservation reserve, pursuant to the program 
        established under this section, not more than--
                    ``(A) 100,000 acres in any State; and
                    ``(B) a total of 1,000,000 acres.
            ``(2) Relationship to maximum enrollment.--Subject 
        to paragraph (3), any acreage enrolled in the 
        conservation reserve under this section shall be 
        considered acres maintained in the conservation 
        reserve.
            ``(3) Relationship to other enrolled acreage.--
        Acreage enrolled in the conservation reserve under this 
        section shall not affect for any fiscal year the 
        quantity of--
                    ``(A) acreage enrolled to establish 
                conservation buffers as part of the program 
                announced on March 24, 1998 (63 Fed. Reg. 
                14109); or
                    ``(B) acreage enrolled into the 
                conservation reserve enhancement program 
                announced on May 27, 1998 (63 Fed. Reg. 28965).
            ``(4) Review; potential increase in enrollment 
        acreage.--The Secretary shall conduct a review of the 
        program established under this section with respect to 
        each State that has enrolled land in the conservation 
        reserve pursuant to the program. As a result of the 
        review, the Secretary may increase the number of acres 
        that may be enrolled in a State under the program to 
        not more than 200,000 acres, notwithstanding paragraph 
        (1)(A).
    ``(d) Owner or Operator Enrollment Limitations.--
            ``(1) Wetland and related land.--
                    ``(A) Wetlands and constructed wetlands.--
                The maximum size of any land described in 
                subparagraph (A) or (B) of subsection (b)(1) 
                that an owner or operator may enroll in the 
                conservation reserve, pursuant to the program 
                established under this section, shall be 40 
                contiguous acres.
                    ``(B) Flooded farmland.--The maximum size 
                of any land described in subparagraph (D) of 
                subsection (b)(1) that an owner or operator may 
                enroll in the conservation reserve, pursuant to 
                the program established under this section, 
                shall be 20 contiguous acres.
                    ``(C) Coverage.--All acres described in 
                subparagraph (A) or (B), including acres that 
                are ineligible for payment, shall be covered by 
                the conservation contract.
            ``(2) Buffer acreage.--The maximum size of any 
        buffer acreage described in subsection (b)(2) that an 
        owner or operator may enroll in the conservation 
        reserve under this section shall be determined by the 
        Secretary in consultation with the State Technical 
        Committee.
            ``(3) Tracts.--Except for land described in 
        subsection (b)(1)(C) and buffer acreage related to such 
        land, the maximum size of any eligible acreage 
        described in subsection (b)(1) in a tract of an owner 
        or operator enrolled in the conservation reserve under 
        this section shall be 40 acres.
    ``(e) Duties of Owners and Operators.--During the term of a 
contract entered into under the program established under this 
section, an owner or operator shall agree--
            ``(1) to restore the hydrology of the wetland 
        within the eligible acreage to the maximum extent 
        practicable, as determined by the Secretary;
            ``(2) to establish vegetative cover (which may 
        include emerging vegetation in water and bottomland 
        hardwoods, cypress, and other appropriate tree species) 
        on the eligible acreage, as determined by the 
        Secretary;
            ``(3) to a general prohibition of commercial use of 
        the enrolled land; and
            ``(4) to carry out other duties described in 
        section 1232.
    ``(f) Duties of the Secretary.--
            ``(1) In general.--Except as provided in paragraphs 
        (2) and (3), in return for a contract entered into 
        under this section, the Secretary shall--
                    ``(A) make payments to the owner or 
                operator based on rental rates for cropland; 
                and
                    ``(B) provide assistance to the owner or 
                operator in accordance with sections 1233 and 
                1234.
            ``(2) Contract offers and payments.--The Secretary 
        shall use the method of determination described in 
        section 1234(c)(2)(B) to determine the acceptability of 
        contract offers and the amount of rental payments under 
        this section.
            ``(3) Incentives.--The amounts payable to owners 
        and operators in the form of rental payments under 
        contracts entered into under this section shall reflect 
        incentives that are provided to owners and operators to 
        enroll filterstrips in the conservation reserve under 
        section 1234.''.
            (2) Repeal of superseded program.--Section 1231 of 
        the Food Security Act of 1985 (16 U.S.C. 3831) is 
        amended--
                    (A) by striking subsection (h); and
                    (B) by redesignating subsections (i) and 
                (j) as subsections (h) and (i), respectively.
    (b) Conforming Changes to Emergency Forestry Conservation 
Reserve Program.--Subsection (k) of section 1231 of the Food 
Security Act of 1985 (16 U.S.C. 3831) is amended--
            (1) by striking ``(k) Emergency Forestry 
        Conservation Reserve Program.--'' and inserting the 
        following:

``SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.'';

            (2) by striking ``subsection'' each place it 
        appears (other than paragraph (3)(C)(ii)) and inserting 
        ``section'';
            (3) by redesignating paragraphs (1), (2), and (3) 
        as subsections (a), (b), and (c), respectively;
            (4) in subsection (a), as so redesignated, by 
        redesignating subparagraphs (A) and (B) as paragraphs 
        (1) and (2), respectively; and
            (5) in subsection (c), as so redesignated--
                    (A) by redesignating subparagraphs (A) 
                through (I) as paragraphs (1) through (9), 
                respectively;
                    (B) in paragraph (1), as so redesignated, 
                by striking ``subparagraph (B)'' and 
                ``subparagraph (G)'' and inserting ``paragraph 
                (2)'' and ``paragraph (7)'', respectively;
                    (C) in paragraph (3), as so redesignated--
                            (i) by redesignating clauses (i) 
                        and (ii) as subparagraphs (A) and (B), 
                        respectively; and
                            (ii) by striking ``subsection (d)'' 
                        and inserting ``section 1231(d)'';
                    (D) in paragraph (4), as so redesignated, 
                by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively;
                    (E) in paragraph (5), as so redesignated--
                            (i) by redesignating clauses (i) 
                        through (v) as subparagraphs (A) 
                        through (E), respectively, and 
                        subclauses (I) and (II) as clauses (i) 
                        and (ii), respectively;
                            (ii) in subparagraph (B), as so 
                        redesignated, by striking ``clause 
                        (i)(I)'' and inserting ``subparagraph 
                        (A)(i)''; and
                            (iii) in subparagraph (C), as so 
                        redesignated, by striking ``clause 
                        (i)(II)'' and inserting ``subparagraph 
                        (A)(ii)''; and
                    (F) in paragraph (9), as so redesignated, 
                by redesignating clauses (i) through (iii) as 
                subparagraphs (A) through (C), respectively, 
                and subclauses (I) through (III) as clauses (i) 
                through (iii), respectively.

SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER CONSERVATION RESERVE 
                    CONTRACTS.

    Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 
3832(a)) is amended--
            (1) by redesignating paragraphs (5) through (10) as 
        paragraphs (6) through (11), respectively; and
            (2) by inserting after paragraph (4) the following 
        new paragraph:
            ``(5) to undertake management on the land as needed 
        throughout the term of the contract to implement the 
        conservation plan;''.

SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COMMERCIAL USE OF FORAGE 
                    ON ENROLLED LAND AND INSTALLATION OF WIND TURBINES.

    (a) General Prohibition; Exceptions.--Section 1232(a) of 
the Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended by 
striking paragraph (8), as redesignated by section 2107, and 
inserting the following new paragraph:
            ``(8) not to conduct any harvesting or grazing, nor 
        otherwise make commercial use of the forage, on land 
        that is subject to the contract, nor adopt any similar 
        practice specified in the contract by the Secretary as 
        a practice that would tend to defeat the purposes of 
        the contract, except that the Secretary may permit, 
        consistent with the conservation of soil, water 
        quality, and wildlife habitat (including habitat during 
        nesting seasons for birds in the area)--
                    ``(A) managed harvesting (including the 
                managed harvesting of biomass), except that in 
                permitting managed harvesting, the Secretary, 
                in coordination with the State technical 
                committee--
                            ``(i) shall develop appropriate 
                        vegetation management requirements; and
                            ``(ii) shall identify periods 
                        during which managed harvesting may be 
                        conducted;
                    ``(B) harvesting and grazing or other 
                commercial use of the forage on the land that 
                is subject to the contract in response to a 
                drought or other emergency;
                    ``(C) routine grazing or prescribed grazing 
                for the control of invasive species, except 
                that in permitting such routine grazing or 
                prescribed grazing, the Secretary, in 
                coordination with the State technical 
                committee--
                            ``(i) shall develop appropriate 
                        vegetation management requirements and 
                        stocking rates for the land that are 
                        suitable for continued routine grazing; 
                        and
                            ``(ii) shall establish the 
                        frequency during which routine grazing 
                        may be conducted, taking into 
                        consideration regional differences such 
                        as--
                                    ``(I) climate, soil type, 
                                and natural resources;
                                    ``(II) the number of years 
                                that should be required between 
                                routine grazing activities; and
                                    ``(III) how often during a 
                                year in which routine grazing 
                                is permitted that routine 
                                grazing should be allowed to 
                                occur; and
                    ``(D) the installation of wind turbines, 
                except that in permitting the installation of 
                wind turbines, the Secretary shall determine 
                the number and location of wind turbines that 
                may be installed, taking into account--
                            ``(i) the location, size, and other 
                        physical characteristics of the land;
                            ``(ii) the extent to which the land 
                        contains wildlife and wildlife habitat; 
                        and
                            ``(iii) the purposes of the 
                        conservation reserve program under this 
                        subchapter;''.
    (b) Rental Payment Reduction.--Section 1232 of the Food 
Security Act of 1985 (16 U.S.C. 3832) is amended by adding at 
the end the following new subsection:
    ``(d) Rental Payment Reduction for Certain Authorized Uses 
of Enrolled Land.--In the case of an authorized activity under 
subsection (a)(8) on land that is subject to a contract under 
this subchapter, the Secretary shall reduce the rental payment 
otherwise payable under the contract by an amount commensurate 
with the economic value of the authorized activity.''.

SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES, WINDBREAKS, 
                    SHELTERBELTS, AND WILDLIFE CORRIDORS.

    Section 1234(b) of the Food Security Act of 1985 (16 U.S.C. 
3834(b)) is amended by striking paragraph (3) and inserting the 
following new paragraph:
            ``(3) Trees, windbreaks, shelterbelts, and wildlife 
        corridors.--
                    ``(A) Applicability.--This paragraph 
                applies to--
                            ``(i) land devoted to the 
                        production of hardwood trees, 
                        windbreaks, shelterbelts, or wildlife 
                        corridors under a contract entered into 
                        under this subchapter after November 
                        28, 1990;
                            ``(ii) land converted to such 
                        production under section 1235A; and
                            ``(iii) land on which an owner or 
                        operator agrees to conduct thinning 
                        authorized by section 1232(a)(9), if 
                        the thinning is necessary to improve 
                        the condition of resources on the land.
                    ``(B) Payments.--
                            ``(i) Percentage.--In making cost 
                        share payments to an owner or operator 
                        of land described in subparagraph (A), 
                        the Secretary shall pay 50 percent of 
                        the reasonable and necessary costs 
                        incurred by the owner or operator for 
                        maintaining trees or shrubs, including 
                        the cost of replanting (if the trees or 
                        shrubs were lost due to conditions 
                        beyond the control of the owner or 
                        operator) or thinning.
                            ``(ii) Duration.--The Secretary 
                        shall make payments as described in 
                        clause (i) for a period of not less 
                        than 2 years, but not more than 4 
                        years, beginning on the date of--
                                    ``(I) the planting of the 
                                trees or shrubs; or
                                    ``(II) the thinning of 
                                existing stands to improve the 
                                condition of resources on the 
                                land.''.

SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS, ANNUAL RENTAL 
                    PAYMENTS, AND PAYMENT LIMITATIONS.

    (a) Evaluation and Acceptance of Contract Offers.--Section 
1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 
amended by striking paragraph (3) and inserting the following 
new paragraph:
            ``(3) Acceptance of contract offers.--
                    ``(A) Evaluation of offers.--In determining 
                the acceptability of contract offers, the 
                Secretary may take into consideration the 
                extent to which enrollment of the land that is 
                the subject of the contract offer would improve 
                soil resources, water quality, or wildlife 
                habitat or provide other environmental 
                benefits.
                    ``(B) Establishment of different criteria 
                in various states and regions.--The Secretary 
                may establish different criteria for 
                determining the acceptability of contract 
                offers in various States and regions of the 
                United States based on the extent to which 
                water quality or wildlife habitat may be 
                improved or erosion may be abated.
                    ``(C) Local preference.--In determining the 
                acceptability of contract offers for new 
                enrollments, the Secretary shall accept, to the 
                maximum extent practicable, an offer from an 
                owner or operator that is a resident of the 
                county in which the land is located or of a 
                contiguous county if, as determined by the 
                Secretary, the land would provide at least 
                equivalent conservation benefits to land under 
                competing offers.''.
    (b) Annual Survey of Dryland and Irrigated Cash Rental 
Rates.--
            (1) Annual estimates required.--Section 1234(c) of 
        the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 
        amended by adding at the end the following new 
        paragraph:
            ``(5) Rental rates.--
                    ``(A) Annual estimates.--The Secretary 
                (acting through the National Agricultural 
                Statistics Service) shall conduct an annual 
                survey of per acre estimates of county average 
                market dryland and irrigated cash rental rates 
                for cropland and pastureland in all counties or 
                equivalent subdivisions within each State that 
                have 20,000 acres or more of cropland and 
                pastureland.
                    ``(B) Public availability of estimates.--
                The estimates derived from the annual survey 
                conducted under subparagraph (A) shall be 
                maintained on a website of the Department of 
                Agriculture for use by the general public.''.
            (2) First survey.--The first survey required by 
        paragraph (5) of section 1234(c) of the Food Security 
        Act of 1985 (16 U.S.C. 3834(c)), as added by subsection 
        (a), shall be conducted not later than 1 year after the 
        date of enactment of this Act.
    (c) Payment Limitations.--Section 1234(f) of the Food 
Security Act of 1985 (16 U.S.C. 3834(f)) is amended--
            (1) in paragraph (1), by striking ``made to a 
        person'' and inserting ``received by a person or legal 
        entity, directly or indirectly,'';
            (2) by striking paragraph (2); and
            (3) in paragraph (4), by striking ``any person'' 
        and inserting ``any person or legal entity''.

SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCENTIVES FOR 
                    BEGINNING FARMERS OR RANCHERS AND SOCIALLY 
                    DISADVANTAGED FARMERS OR RANCHERS.

    (a) Contract Modification Authority.--Section 1235(c)(1)(B) 
of the Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is 
amended--
            (1) in clause (ii), by striking ``or'' at the end;
            (2) by redesignating clause (iii) as clause (iv); 
        and
            (3) by inserting after clause (ii) the following 
        new clause:
                            ``(iii) to facilitate a transition 
                        of land subject to the contract from a 
                        retired or retiring owner or operator 
                        to a beginning farmer or rancher or 
                        socially disadvantaged farmer or 
                        rancher for the purpose of returning 
                        some or all of the land into production 
                        using sustainable grazing or crop 
                        production methods; or''.
    (b) Transition Option.--Section 1235 of the Food Security 
Act of 1985 (16 U.S.C. 3835) is amended by adding at the end 
the following new subsection:
    ``(f) Transition Option for Certain Farmers or Ranchers.--
            ``(1) Duties of the secretary.--In the case of a 
        contract modification approved in order to facilitate 
        the transfer, as described in subsection 
        (c)(1)(B)(iii), of land to a beginning farmer or 
        rancher or socially disadvantaged farmer or rancher (in 
        this subsection referred to as a `covered farmer or 
        rancher'), the Secretary shall--
                    ``(A) beginning on the date that is 1 year 
                before the date of termination of the 
                contract--
                            ``(i) allow the covered farmer or 
                        rancher, in conjunction with the 
                        retired or retiring owner or operator, 
                        to make conservation and land 
                        improvements; and
                            ``(ii) allow the covered farmer or 
                        rancher to begin the certification 
                        process under the Organic Foods 
                        Production Act of 1990 (7 U.S.C. 6501 
                        et seq.);
                    ``(B) beginning on the date of termination 
                of the contract, require the retired or 
                retiring owner or operator to sell or lease 
                (under a long-term lease or a lease with an 
                option to purchase) to the covered farmer or 
                rancher the land subject to the contract for 
                production purposes;
                    ``(C) require the covered farmer or rancher 
                to develop and implement a conservation plan;
                    ``(D) provide to the covered farmer or 
                rancher an opportunity to enroll in the 
                conservation stewardship program or the 
                environmental quality incentives program by not 
                later than the date on which the farmer or 
                rancher takes possession of the land through 
                ownership or lease; and
                    ``(E) continue to make annual payments to 
                the retired or retiring owner or operator for 
                not more than an additional 2 years after the 
                date of termination of the contract, if the 
                retired or retiring owner or operator is not a 
                family member (as defined in section 
                1001A(b)(3)(B) of this Act) of the covered 
                farmer or rancher.
            ``(2) Reenrollment.--The Secretary shall provide a 
        covered farmer or rancher with the option to reenroll 
        any applicable partial field conservation practice 
        that--
                    ``(A) is eligible for enrollment under the 
                continuous signup requirement of section 
                1231(h)(4)(B); and
                    ``(B) is part of an approved conservation 
                plan.''.

                  Subtitle C--Wetlands Reserve Program

SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS RESERVE PROGRAM.

    Subsection (a) of section 1237 of the Food Security Act of 
1985 (16 U.S.C. 3837) is amended to read as follows:
    ``(a) Establishment and Purposes.--
            ``(1) Establishment.--The Secretary shall establish 
        a wetlands reserve program to assist owners of eligible 
        lands in restoring and protecting wetlands.
            ``(2) Purposes.--The purposes of the wetlands 
        reserve program are to restore, protect, or enhance 
        wetlands on private or tribal lands that are eligible 
        under subsections (c) and (d).''.

SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS.

    Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 
3837(b)) is amended--
            (1) by striking paragraph (1) and inserting the 
        following new paragraph:
            ``(1) Maximum enrollment.--The total number of 
        acres enrolled in the wetlands reserve program shall 
        not exceed 3,041,200 acres.'';
            (2) in paragraph (2), by striking ``The Secretary'' 
        and inserting ``Subject to paragraph (3), the 
        Secretary''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(3) Acreage owned by indian tribes.--In the case 
        of acreage owned by an Indian tribe, the Secretary 
        shall enroll acreage into the wetlands reserve program 
        through the use of--
                    ``(A) a 30-year contract (the value of 
                which shall be equivalent to the value of a 30-
                year easement);
                    ``(B) restoration cost-share agreements; or
                    ``(C) any combination of the options 
                described in subparagraphs (A) and (B).''.

SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS ELIGIBLE FOR 
                    ENROLLMENT.

    (a) In General.--Section 1237(c) of the Food Security Act 
of 1985 (16 U.S.C. 3837(c)) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``2007 calendar'' and 
                inserting ``2012 fiscal''; and
                    (B) by inserting ``private or tribal'' 
                before ``land'' the second place it appears;
            (2) by striking paragraph (2) and inserting the 
        following new paragraph:
            ``(2) such land is--
                    ``(A) farmed wetland or converted wetland, 
                together with the adjacent land that is 
                functionally dependent on the wetlands, except 
                that converted wetland with respect to which 
                the conversion was not commenced prior to 
                December 23, 1985, shall not be eligible to be 
                enrolled in the program under this section; or
                    ``(B) cropland or grassland that was used 
                for agricultural production prior to flooding 
                from the natural overflow of a closed basin 
                lake or pothole, as determined by the 
                Secretary, together (where practicable) with 
                the adjacent land that is functionally 
                dependent on the cropland or grassland; and''.
    (b) Change of Ownership.--Section 1237E(a) of the Food 
Security Act of 1985 (16 U.S.C. 3837e(a)) is amended by 
striking ``in the preceding 12 months'' and inserting ``during 
the preceding 7-year period''.
    (c) Annual Survey and Reallocation.--Section 1237F of the 
Food Security Act of 1985 (16 U.S.C. 3837f) is amended by 
adding at the end the following new subsection:
    ``(c) Prairie Pothole Region Survey and Reallocation.--
            ``(1) Survey.--The Secretary shall conduct a survey 
        during fiscal year 2008 and each subsequent fiscal year 
        for the purpose of determining interest and allocations 
        for the Prairie Pothole Region to enroll eligible land 
        described in section 1237(c)(2)(B).
            ``(2) Annual adjustment.--The Secretary shall make 
        an adjustment to the allocation for an interested State 
        for a fiscal year, based on the results of the survey 
        conducted under paragraph (1) for the State during the 
        previous fiscal year.''.

SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS.

    Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16 
U.S.C. 3837a(b)(2)(B)) is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking ``; and'' and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) to meet habitat needs of 
                        specific wildlife species; and''.

SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS RESERVE PROGRAM.

    Subsection (f) of section 1237A of the Food Security Act of 
1985 (16 U.S.C. 3837a) is amended to read as follows:
    ``(f) Compensation.--
            ``(1) Determination.--Effective on the date of the 
        enactment of the Food, Conservation, and Energy Act of 
        2008, the Secretary shall pay as compensation for a 
        conservation easement acquired under this subchapter 
        the lowest of--
                    ``(A) the fair market value of the land, as 
                determined by the Secretary, using the Uniform 
                Standards of Professional Appraisal Practices 
                or an area-wide market analysis or survey;
                    ``(B) the amount corresponding to a 
                geographical cap, as determined by the 
                Secretary in regulations; or
                    ``(C) the offer made by the landowner.
            ``(2) Form of payment.--Compensation for an 
        easement shall be provided by the Secretary in the form 
        of a cash payment, in an amount determined under 
        paragraph (1) and specified in the easement agreement.
            ``(3) Payment schedule for easements.--
                    ``(A) Easements valued at $500,000 or 
                less.--For easements valued at $500,000 or 
                less, the Secretary may provide easement 
                payments in not more than 30 annual payments.
                    ``(B) Easements in excess of $500,000.--For 
                easements valued at more than $500,000, the 
                Secretary may provide easement payments in at 
                least 5, but not more than 30 annual payments, 
                except that, if the Secretary determines it 
                would further the purposes of the program, the 
                Secretary may make a lump sum payment for such 
                an easement.
            ``(4) Restoration agreement payment limitation.--
        Payments made to a person or legal entity, directly or 
        indirectly, pursuant to a restoration cost-share 
        agreement under this subchapter may not exceed, in the 
        aggregate, $50,000 per year.
            ``(5) Enrollment procedure.--Lands may be enrolled 
        under this subchapter through the submission of bids 
        under a procedure established by the Secretary.''.

SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM AND RESERVED RIGHTS 
                    PILOT PROGRAM.

    Section 1237A of the Food Security Act of 1985 (16 U.S.C. 
3837a) is amended by adding at the end the following new 
subsection:
    ``(h) Wetlands Reserve Enhancement Program.--
            ``(1) Program authorized.--The Secretary may enter 
        into 1 or more agreements with a State (including a 
        political subdivision or agency of a State), 
        nongovernmental organization, or Indian tribe to carry 
        out a special wetlands reserve enhancement program that 
        the Secretary determines would advance the purposes of 
        this subchapter.
            ``(2) Reserved rights pilot program.--
                    ``(A) Reservation of grazing rights.--As 
                part of the wetlands reserve enhancement 
                program, the Secretary shall carry out a pilot 
                program for land in which a landowner may 
                reserve grazing rights in the warranty easement 
                deed restriction if the Secretary determines 
                that the reservation and use of the grazing 
                rights--
                            ``(i) is compatible with the land 
                        subject to the easement;
                            ``(ii) is consistent with the long-
                        term wetland protection and enhancement 
                        goals for which the easement was 
                        established; and
                            ``(iii) complies with a 
                        conservation plan.
                    ``(B) Duration.--The pilot program 
                established under this paragraph shall 
                terminate on September 30, 2012.''.

SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE UNDER WETLANDS RESERVE 
                    PROGRAM.

    Section 1237C of the Food Security Act of 1985 (16 U.S.C. 
3837c) is amended--
            (1) in subsection (a)(1), by inserting ``including 
        necessary maintenance activities,'' after ``values,''; 
        and
            (2) by striking subsection (c) and inserting the 
        following new subsection:
    ``(c) Ranking of Offers.--
            ``(1) Conservation benefits and funding 
        considerations.--When evaluating offers from 
        landowners, the Secretary may consider--
                    ``(A) the conservation benefits of 
                obtaining an easement or other interest in the 
                land;
                    ``(B) the cost-effectiveness of each 
                easement or other interest in eligible land, so 
                as to maximize the environmental benefits per 
                dollar expended; and
                    ``(C) whether the landowner or another 
                person is offering to contribute financially to 
                the cost of the easement or other interest in 
                the land to leverage Federal funds.
            ``(2) Additional considerations.--In determining 
        the acceptability of easement offers, the Secretary may 
        take into consideration--
                    ``(A) the extent to which the purposes of 
                the easement program would be achieved on the 
                land;
                    ``(B) the productivity of the land; and
                    ``(C) the on-farm and off-farm 
                environmental threats if the land is used for 
                the production of agricultural commodities.''.

SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE CONTRACTS AND 
                    AGREEMENTS.

    Section 1237D(c)(1) of the Food Security Act of 1985 (16 
U.S.C. 3837d(c)(1)) is amended--
            (1) by striking ``The total amount of easement 
        payments made to a person'' and inserting ``The total 
        amount of payments that a person or legal entity may 
        receive, directly or indirectly,''; and
            (2) by inserting ``or under 30-year contracts'' 
        before the period at the end.

SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE AGREEMENTS 
                    FOR WETLANDS RESERVE ENHANCEMENT.

    Section 1237D(c) of the Food Security Act of 1985 (16 
U.S.C. 3837d(c)) is amended by striking paragraph (4).

SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF CONSERVATION 
                    EASEMENTS.

    (a) Report Required.--Not later than January 1, 2010, the 
Secretary of Agriculture shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate a report 
that evaluates the implications of the long-term nature of 
conservation easements granted under section 1237A of the Food 
Security Act of 1985 (16 U.S.C. 3837a) on resources of the 
Department of Agriculture.
    (b) Inclusions.--The report required by subsection (a) 
shall include the following:
            (1) Data relating to the number and location of 
        conservation easements granted under that section that 
        the Secretary holds or has a significant role in 
        monitoring or managing.
            (2) An assessment of the extent to which the 
        oversight of the conservation easement agreements 
        impacts the availability of resources, including 
        technical assistance.
            (3) An assessment of the uses and value of 
        agreements with partner organizations.
            (4) Any other relevant information relating to 
        costs or other effects that would be helpful to the 
        Committees referred to in subsection (a).

              Subtitle D--Conservation Stewardship Program

SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM.

    (a) Establishment of Program.--Chapter 2 of subtitle D of 
title XII of the Food Security Act of 1985 is amended--
            (1) by redesignating subchapters B (farmland 
        protection program) and C (grassland reserve program) 
        as subchapters C and D, respectively; and
            (2) by inserting after subchapter A the following 
        new subchapter:

            ``Subchapter B--Conservation Stewardship Program

``SEC. 1238D. DEFINITIONS.

    ``In this subchapter:
            ``(1) Conservation activities.--
                    ``(A) In general.--The term `conservation 
                activities' means conservation systems, 
                practices, or management measures that are 
                designed to address a resource concern.
                    ``(B) Inclusions.--The term `conservation 
                activities' includes--
                            ``(i) structural measures, 
                        vegetative measures, and land 
                        management measures, including 
                        agriculture drainage management 
                        systems, as determined by the 
                        Secretary; and
                            ``(ii) planning needed to address a 
                        resource concern.
            ``(2) Conservation measurement tools.--The term 
        `conservation measurement tools' means procedures to 
        estimate the level of environmental benefit to be 
        achieved by a producer in implementing conservation 
        activities, including indices or other measures 
        developed by the Secretary.
            ``(3) Conservation stewardship plan.--The term 
        `conservation stewardship plan' means a plan that--
                    ``(A) identifies and inventories resource 
                concerns;
                    ``(B) establishes benchmark data and 
                conservation objectives;
                    ``(C) describes conservation activities to 
                be implemented, managed, or improved; and
                    ``(D) includes a schedule and evaluation 
                plan for the planning, installation, and 
                management of the new and existing conservation 
                activities.
            ``(4) Priority resource concern.--The term 
        `priority resource concern' means a resource concern 
        that is identified at the State level, in consultation 
        with the State Technical Committee, as a priority for a 
        particular watershed or area of the State.
            ``(5) Program.--The term `program' means the 
        conservation stewardship program established by this 
        subchapter.
            ``(6) Resource concern.--The term `resource 
        concern' means a specific natural resource impairment 
        or problem, as determined by the Secretary, that--
                    ``(A) represents a significant concern in a 
                State or region; and
                    ``(B) is likely to be addressed 
                successfully through the implementation of 
                conservation activities by producers on land 
                eligible for enrollment in the program.
            ``(7) Stewardship threshold.--The term `stewardship 
        threshold' means the level of natural resource 
        conservation and environmental management required, as 
        determined by the Secretary using conservation 
        measurement tools, to improve and conserve the quality 
        and condition of a resource concern.

``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

    ``(a) Establishment and Purpose.--During each of fiscal 
years 2009 through 2012, the Secretary shall carry out a 
conservation stewardship program to encourage producers to 
address resource concerns in a comprehensive manner--
            ``(1) by undertaking additional conservation 
        activities; and
            ``(2) by improving, maintaining and managing 
        existing conservation activities.
    ``(b) Eligible Land.--
            ``(1) In general.--Except as provided in subsection 
        (c), the following land is eligible for enrollment in 
        the program:
                    ``(A) Private agricultural land (including 
                cropland, grassland, prairie land, improved 
                pastureland, rangeland, and land used for agro-
                forestry).
                    ``(B) Agricultural land under the 
                jurisdiction of an Indian tribe.
                    ``(C) Forested land that is an incidental 
                part of an agricultural operation.
                    ``(D) Other private agricultural land 
                (including cropped woodland, marshes, and 
                agricultural land used for the production of 
                livestock) on which resource concerns related 
                to agricultural production could be addressed 
                by enrolling the land in the program, as 
                determined by the Secretary.
            ``(2) Special rule for nonindustrial private forest 
        land.--Nonindustrial private forest land is eligible 
        for enrollment in the program, except that not more 
        than 10 percent of the annual acres enrolled nationally 
        in any fiscal year may be nonindustrial private forest 
        land.
            ``(3) Agricultural operation.--Eligible land shall 
        include all acres of an agricultural operation of a 
        producer, whether or not contiguous, that are under the 
        effective control of the producer at the time the 
        producer enters into a stewardship contract, and is 
        operated by the producer with equipment, labor, 
        management, and production or cultivation practices 
        that are substantially separate from other agricultural 
        operations, as determined by the Secretary.
    ``(c) Exclusions.--
            ``(1) Land enrolled in other conservation 
        programs.--Subject to paragraph (2), the following land 
        is not eligible for enrollment in the program:
                    ``(A) Land enrolled in the conservation 
                reserve program.
                    ``(B) Land enrolled in the wetlands reserve 
                program.
                    ``(C) Land enrolled in the grassland 
                reserve program.
            ``(2) Conversion to cropland.--Land used for crop 
        production after the date of enactment of the Food, 
        Conservation, and Energy Act of 2008 that had not been 
        planted, considered to be planted, or devoted to crop 
        production for at least 4 of the 6 years preceding that 
        date shall not be the basis for any payment under the 
        program, unless the land does not meet the requirement 
        because--
                    ``(A) the land had previously been enrolled 
                in the conservation reserve program;
                    ``(B) the land has been maintained using 
                long-term crop rotation practices, as 
                determined by the Secretary; or
                    ``(C) the land is incidental land needed 
                for efficient operation of the farm or ranch, 
                as determined by the Secretary.

``SEC. 1238F. STEWARDSHIP CONTRACTS.

    ``(a) Submission of Contract Offers.--To be eligible to 
participate in the conservation stewardship program, a producer 
shall submit to the Secretary for approval a contract offer 
that--
            ``(1) demonstrates to the satisfaction of the 
        Secretary that the producer, at the time of the 
        contract offer, is meeting the stewardship threshold 
        for at least one resource concern; and
            ``(2) would, at a minimum, meet or exceed the 
        stewardship threshold for at least 1 priority resource 
        concern by the end of the stewardship contract by--
                    ``(A) installing and adopting additional 
                conservation activities; and
                    ``(B) improving, maintaining, and managing 
                conservation activities in place at the 
                operation of the producer at the time the 
                contract offer is accepted by the Secretary.
    ``(b) Evaluation of Contract Offers.--
            ``(1) Ranking of applications.--In evaluating 
        contract offers made by producers to enter into 
        contracts under the program, the Secretary shall rank 
        applications based on--
                    ``(A) the level of conservation treatment 
                on all applicable priority resource concerns at 
                the time of application, based to the maximum 
                extent practicable on conservation measurement 
                tools;
                    ``(B) the degree to which the proposed 
                conservation treatment on applicable priority 
                resource concerns effectively increases 
                conservation performance, based to the maximum 
                extent possible on conservation measurement 
                tools;
                    ``(C) the number of applicable priority 
                resource concerns proposed to be treated to 
                meet or exceed the stewardship threshold by the 
                end of the contract;
                    ``(D) the extent to which other resource 
                concerns, in addition to priority resource 
                concerns, will be addressed to meet or exceed 
                the stewardship threshold by the end of the 
                contract period; and
                    ``(E) the extent to which the actual and 
                anticipated environmental benefits from the 
                contract are provided at the least cost 
                relative to other similarly beneficial contract 
                offers.
            ``(2) Prohibition.--The Secretary may not assign a 
        higher priority to any application because the 
        applicant is willing to accept a lower payment than the 
        applicant would otherwise be eligible to receive.
            ``(3) Additional criteria.--The Secretary may 
        develop and use such additional criteria for evaluating 
        applications to enroll in the program that the 
        Secretary determines are necessary to ensure that 
        national, State, and local conservation priorities are 
        effectively addressed.
    ``(c) Entering Into Contracts.--After a determination that 
a producer is eligible for the program under subsection (a), 
and a determination that the contract offer ranks sufficiently 
high under the evaluation criteria under subsection (b), the 
Secretary shall enter into a conservation stewardship contract 
with the producer to enroll the land to be covered by the 
contract.
    ``(d) Contract Provisions.--
            ``(1) Term.--A conservation stewardship contract 
        shall be for a term of 5 years.
            ``(2) Provisions.--The conservation stewardship 
        contract of a producer shall--
                    ``(A) state the amount of the payment the 
                Secretary agrees to make to the producer for 
                each year of the conservation stewardship 
                contract under section 1238G(e);
                    ``(B) require the producer--
                            ``(i) to implement during the term 
                        of the conservation stewardship 
                        contract the conservation stewardship 
                        plan approved by the Secretary;
                            ``(ii) to maintain, and make 
                        available to the Secretary at such 
                        times as the Secretary may request, 
                        appropriate records showing the 
                        effective and timely implementation of 
                        the conservation stewardship contract; 
                        and
                            ``(iii) not to engage in any 
                        activity during the term of the 
                        conservation stewardship contract on 
                        the eligible land covered by the 
                        contract that would interfere with the 
                        purposes of the conservation 
                        stewardship contract;
                    ``(C) permit all economic uses of the land 
                that--
                            ``(i) maintain the agricultural 
                        nature of the land; and
                            ``(ii) are consistent with the 
                        conservation purposes of the 
                        conservation stewardship contract;
                    ``(D) include a provision to ensure that a 
                producer shall not be considered in violation 
                of the contract for failure to comply with the 
                contract due to circumstances beyond the 
                control of the producer, including a disaster 
                or related condition, as determined by the 
                Secretary; and
                    ``(E) include such other provisions as the 
                Secretary determines necessary to ensure the 
                purposes of the program are achieved.
    ``(e) Contract Renewal.--At the end of an initial 
conservation stewardship contract of a producer, the Secretary 
may allow the producer to renew the contract for one additional 
five-year period if the producer--
            ``(1) demonstrates compliance with the terms of the 
        existing contract; and
            ``(2) agrees to adopt new conservation activities, 
        as determined by the Secretary.
    ``(f) Modification.--The Secretary may allow a producer to 
modify a stewardship contract if the Secretary determines that 
the modification is consistent with achieving the purposes of 
the program.
    ``(g) Contract Termination.--
            ``(1) Voluntary termination.--A producer may 
        terminate a conservation stewardship contract if the 
        Secretary determines that termination would not defeat 
        the purposes of the program.
            ``(2) Involuntary termination.--The Secretary may 
        terminate a contract under this subchapter if the 
        Secretary determines that the producer violated the 
        contract.
            ``(3) Repayment.--If a contract is terminated, the 
        Secretary may, consistent with the purposes of the 
        program--
                    ``(A) allow the producer to retain payments 
                already received under the contract; or
                    ``(B) require repayment, in whole or in 
                part, of payments already received and assess 
                liquidated damages.
            ``(4) Change of interest in land subject to a 
        contract.--
                    ``(A) In general.--Except as provided in 
                paragraph (B), a change in the interest of a 
                producer in land covered by a contract under 
                this chapter shall result in the termination of 
                the contract with regard to that land.
                    ``(B) Transfer of duties and rights.--
                Subparagraph (A) shall not apply if--
                            ``(i) within a reasonable period of 
                        time (as determined by the Secretary) 
                        after the date of the change in the 
                        interest in land covered by a contract 
                        under the program, the transferee of 
                        the land provides written notice to the 
                        Secretary that all duties and rights 
                        under the contract have been 
                        transferred to, and assumed by, the 
                        transferee; and
                            ``(ii) the transferee meets the 
                        eligibility requirements of the 
                        program.
    ``(h) Coordination With Organic Certification.--The 
Secretary shall establish a transparent means by which 
producers may initiate organic certification under the Organic 
Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) while 
participating in a contract under this subchapter.
    ``(i) On-Farm Research and Demonstration or Pilot 
Testing.--The Secretary may approve a contract offer under this 
subchapter that includes--
            ``(1) on-farm conservation research and 
        demonstration activities; and
            ``(2) pilot testing of new technologies or 
        innovative conservation practices.

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

    ``(a) In General.--To achieve the conservation goals of a 
contract under the conservation stewardship program, the 
Secretary shall--
            ``(1) make the program available to eligible 
        producers on a continuous enrollment basis with 1 or 
        more ranking periods, one of which shall occur in the 
        first quarter of each fiscal year;
            ``(2) identify not less than 3 nor more than 5 
        priority resource concerns in a particular watershed or 
        other appropriate region or area within a State; and
            ``(3) develop reliable conservation measurement 
        tools for purposes of carrying out the program.
    ``(b) Allocation to States.--The Secretary shall allocate 
acres to States for enrollment, based--
            ``(1) primarily on each State's proportion of 
        eligible acres under section 1238E(b)(1) to the total 
        number of eligible acres in all States; and
            ``(2) also on consideration of--
                    ``(A) the extent and magnitude of the 
                conservation needs associated with agricultural 
                production in each State;
                    ``(B) the degree to which implementation of 
                the program in the State is, or will be, 
                effective in helping producers address those 
                needs; and
                    ``(C) other considerations to achieve 
                equitable geographic distribution of funds, as 
                determined by the Secretary.
    ``(c) Specialty Crop and Organic Producers.--The Secretary 
shall ensure that outreach and technical assistance are 
available, and program specifications are appropriate to enable 
specialty crop and organic producers to participate in the 
program.
    ``(d) Acreage Enrollment Limitation.--During the period 
beginning on October 1, 2008, and ending on September 30, 2017, 
the Secretary shall, to the maximum extent practicable--
            ``(1) enroll in the program an additional 
        12,769,000 acres for each fiscal year; and
            ``(2) manage the program to achieve a national 
        average rate of $18 per acre, which shall include the 
        costs of all financial assistance, technical 
        assistance, and any other expenses associated with 
        enrollment or participation in the program.
    ``(e) Conservation Stewardship Payments.--
            ``(1) Availability of payments.--The Secretary 
        shall provide a payment under the program to compensate 
        the producer for--
                    ``(A) installing and adopting additional 
                conservation activities; and
                    ``(B) improving, maintaining, and managing 
                conservation activities in place at the 
                operation of the producer at the time the 
                contract offer is accepted by the Secretary.
            ``(2) Payment amount.--The amount of the 
        conservation stewardship payment shall be determined by 
        the Secretary and based, to the maximum extent 
        practicable, on the following factors:
                    ``(A) Costs incurred by the producer 
                associated with planning, design, materials, 
                installation, labor, management, maintenance, 
                or training.
                    ``(B) Income forgone by the producer.
                    ``(C) Expected environmental benefits as 
                determined by conservation measurement tools.
            ``(3) Exclusions.--A payment to a producer under 
        this subsection shall not be provided for--
                    ``(A) the design, construction, or 
                maintenance of animal waste storage or 
                treatment facilities or associated waste 
                transport or transfer devices for animal 
                feeding operations; or
                    ``(B) conservation activities for which 
                there is no cost incurred or income forgone to 
                the producer.
            ``(4) Timing of payments.--
                    ``(A) In general.--The Secretary shall make 
                payments as soon as practicable after October 1 
                of each fiscal year for activities carried out 
                in the previous fiscal year.
                    ``(B) Additional activities.--The Secretary 
                shall make payments to compensate producers for 
                installation of additional practices at the 
                time at which the practices are installed and 
                adopted.
    ``(f) Supplemental Payments for Resource-Conserving Crop 
Rotations.--
            ``(1) Availability of payments.--The Secretary 
        shall provide additional payments to producers that, in 
        participating in the program, agree to adopt resource-
        conserving crop rotations to achieve beneficial crop 
        rotations as appropriate for the land of the producers.
            ``(2) Beneficial crop rotations.--The Secretary 
        shall determine whether a resource-conserving crop 
        rotation is a beneficial crop rotation eligible for 
        additional payments under paragraph (1), based on 
        whether the resource-conserving crop rotation is 
        designed to provide natural resource conservation and 
        production benefits.
            ``(3) Eligibility.--To be eligible to receive a 
        payment described in paragraph (1), a producer shall 
        agree to adopt and maintain beneficial resource-
        conserving crop rotations for the term of the contract.
            ``(4) Resource-conserving crop rotation.--In this 
        subsection, the term `resource-conserving crop 
        rotation' means a crop rotation that--
                    ``(A) includes at least 1 resource 
                conserving crop (as defined by the Secretary);
                    ``(B) reduces erosion;
                    ``(C) improves soil fertility and tilth;
                    ``(D) interrupts pest cycles; and
                    ``(E) in applicable areas, reduces 
                depletion of soil moisture or otherwise reduces 
                the need for irrigation.
    ``(g) Payment Limitations.--A person or legal entity may 
not receive, directly or indirectly, payments under this 
subchapter that, in the aggregate, exceed $200,000 for all 
contracts entered into during any 5-year period, excluding 
funding arrangements with federally recognized Indian tribes or 
Alaska Native corporations, regardless of the number of 
contracts entered into under the program by the person or 
entity.
    ``(h) Regulations.--The Secretary shall promulgate 
regulations that--
            ``(1) prescribe such other rules as the Secretary 
        determines to be necessary to ensure a fair and 
        reasonable application of the limitations established 
        under subsection (g); and
            ``(2) otherwise enable the Secretary to carry out 
        the program.
    ``(i) Data.--The Secretary shall maintain detailed and 
segmented data on contracts and payments under the program to 
allow for quantification of the amount of payments made for--
            ``(1) the installation and adoption of additional 
        conservation activities and improvements to 
        conservation activities in place on the operation of a 
        producer at the time the conservation stewardship offer 
        is accepted by the Secretary;
            ``(2) participation in research, demonstration, and 
        pilot projects; and
            ``(3) the development and periodic assessment and 
        evaluation of conservation plans developed under this 
        subchapter.''.
    (b) Termination of Conservation Security Program Authority; 
Effect on Existing Contracts.--Section 1238A of the Food 
Security Act of 1985 (16 U.S.C. 3838a) is amended by adding at 
the end the following new subsection:
    ``(g) Prohibition on Conservation Security Program 
Contracts; Effect on Existing Contracts.--
            ``(1) Prohibition.--A conservation security 
        contract may not be entered into or renewed under this 
        subchapter after September 30, 2008.
            ``(2) Exception.--This subchapter, and the terms 
        and conditions of the conservation security program, 
        shall continue to apply to--
                    ``(A) conservation security contracts 
                entered into on or before September 30, 2008; 
                and
                    ``(B) any conservation security contract 
                entered into after that date, but for which the 
                application for the contract was received 
                during the 2008 sign-up period.
            ``(3) Effect on payments.--The Secretary shall make 
        payments under this subchapter with respect to 
        conservation security contracts described in paragraph 
        (2) during the remaining term of the contracts.
            ``(4) Regulations.--A contract described in 
        paragraph (2) may not be administered under the 
        regulations issued to carry out the conservation 
        stewardship program.''.
    (c) Reference to Redesignated Subchapter.--Section 
1238A(b)(3)(C) of title XII of the Food Security Act of 1985 
(16 U.S.C. 3838a(b)(3)(C)) is amended by striking ``subchapter 
C'' and inserting ``subchapter D''.

         Subtitle E--Farmland Protection and Grassland Reserve

SEC. 2401. FARMLAND PROTECTION PROGRAM.

    (a) Definitions.--Section 1238H of the Food Security Act of 
1985 (16 U.S.C. 3838h) is amended--
            (1) by striking paragraph (1) and inserting the 
        following new paragraph:
            ``(1) Eligible entity.--The term `eligible entity' 
        means--
                    ``(A) any agency of any State or local 
                government or an Indian tribe (including a 
                farmland protection board or land resource 
                council established under State law); or
                    ``(B) any organization that--
                            ``(i) is organized for, and at all 
                        times since the formation of the 
                        organization has been operated 
                        principally for, 1 or more of the 
                        conservation purposes specified in 
                        clause (i), (ii), (iii), or (iv) of 
                        section 170(h)(4)(A) of the Internal 
                        Revenue Code of 1986;
                            ``(ii) is an organization described 
                        in section 501(c)(3) of that Code that 
                        is exempt from taxation under section 
                        501(a) of that Code; and
                            ``(iii) is--
                                    ``(I) described in 
                                paragraph (1) or (2) of section 
                                509(a) of that Code; or
                                    ``(II) described in section 
                                509(a)(3), and is controlled by 
                                an organization described in 
                                section 509(a)(2), of that 
                                Code.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``that--'' and 
                        inserting ``that is subject to a 
                        pending offer for purchase from an 
                        eligible entity and--''; and
                            (ii) by striking clauses (i) and 
                        (ii) and inserting the following new 
                        clauses:
                            ``(i) has prime, unique, or other 
                        productive soil;
                            ``(ii) contains historical or 
                        archaeological resources; or
                            ``(iii) the protection of which 
                        will further a State or local policy 
                        consistent with the purposes of the 
                        program.''; and
                    (B) in subparagraph (B)--
                            (i) in clause (iv), by striking 
                        ``and'' at the end; and
                            (ii) by striking clause (v) and 
                        inserting the following new clauses:
                            ``(v) forest land that--
                                    ``(I) contributes to the 
                                economic viability of an 
                                agricultural operation; or
                                    ``(II) serves as a buffer 
                                to protect an agricultural 
                                operation from development; and
                            ``(vi) land that is incidental to 
                        land described in clauses (i) through 
                        (v), if such land is necessary for the 
                        efficient administration of a 
                        conservation easement, as determined by 
                        the Secretary.''.
    (b) Farmland Protection.--Section 1238I of the Food 
Security Act of 1985 (16 U.S.C. 3838i) is amended to read as 
follows:

``SEC. 1238I. FARMLAND PROTECTION PROGRAM.

    ``(a) Establishment.--The Secretary shall establish and 
carry out a farmland protection program under which the 
Secretary shall facilitate and provide funding for the purchase 
of conservation easements or other interests in eligible land.
    ``(b) Purpose.--The purpose of the program is to protect 
the agricultural use and related conservation values of 
eligible land by limiting nonagricultural uses of that land.
    ``(c) Cost-Share Assistance.--
            ``(1) Provision of assistance.--The Secretary shall 
        provide cost-share assistance to eligible entities for 
        purchasing a conservation easement or other interest in 
        eligible land.
            ``(2) Federal share.--The share of the cost 
        provided by the Secretary for purchasing a conservation 
        easement or other interest in eligible land shall not 
        exceed 50 percent of the appraised fair market value of 
        the conservation easement or other interest in eligible 
        land.
            ``(3) Non-federal share.--
                    ``(A) Share provided by eligible entity.--
                The eligible entity shall provide a share of 
                the cost of purchasing a conservation easement 
                or other interest in eligible land in an amount 
                that is not less than 25 percent of the 
                acquisition purchase price.
                    ``(B) Landowner contribution.--As part of 
                the non-Federal share of the cost of purchasing 
                a conservation easement or other interest in 
                eligible land, an eligible entity may include a 
                charitable donation or qualified conservation 
                contribution (as defined by section 170(h) of 
                the Internal Revenue Code of 1986) from the 
                private landowner from which the conservation 
                easement or other interest in land will be 
                purchased.
    ``(d) Determination of Fair Market Value.--Effective on the 
date of enactment of the Food, Conservation, and Energy Act of 
2008, the fair market value of the conservation easement or 
other interest in eligible land shall be determined on the 
basis of an appraisal using an industry approved method, 
selected by the eligible entity and approved by the Secretary.
    ``(e) Bidding Down Prohibited.--If the Secretary determines 
that 2 or more applications for cost-share assistance are 
comparable in achieving the purpose of the program, the 
Secretary shall not assign a higher priority to any 1 of those 
applications solely on the basis of lesser cost to the program.
    ``(f) Condition on Assistance.--
            ``(1) Conservation plan.--Any highly erodible 
        cropland for which a conservation easement or other 
        interest is purchased using cost-share assistance 
        provided under the program shall be subject to a 
        conservation plan that requires, at the option of the 
        Secretary, the conversion of the cropland to less 
        intensive uses.
            ``(2) Contingent right of enforcement.--The 
        Secretary shall require the inclusion of a contingent 
        right of enforcement for the Secretary in the terms of 
        a conservation easement or other interest in eligible 
        land that is purchased using cost-share assistance 
        provided under the program.
    ``(g) Agreements With Eligible Entities.--
            ``(1) In general.--The Secretary shall enter into 
        agreements with eligible entities to stipulate the 
        terms and conditions under which the eligible entity is 
        permitted to use cost-share assistance provided under 
        subsection (c).
            ``(2) Length of agreements.--An agreement under 
        this subsection shall be for a term that is--
                    ``(A) in the case of an eligible entity 
                certified under the process described in 
                subsection (h), a minimum of five years; and
                    ``(B) for all other eligible entities, at 
                least three, but not more than five years.
            ``(3) Substitution of qualified projects.--An 
        agreement shall allow, upon mutual agreement of the 
        parties, substitution of qualified projects that are 
        identified at the time of the proposed substitution.
            ``(4) Minimum requirements.--An eligible entity 
        shall be authorized to use its own terms and 
        conditions, as approved by the Secretary, for 
        conservation easements and other purchases of interests 
        in land, so long as such terms and conditions--
                    ``(A) are consistent with the purposes of 
                the program;
                    ``(B) permit effective enforcement of the 
                conservation purposes of such easements or 
                other interests; and
                    ``(C) include a limit on the impervious 
                surfaces to be allowed that is consistent with 
                the agricultural activities to be conducted.
            ``(5) Effect of violation.--If a violation occurs 
        of a term or condition of an agreement entered into 
        under this subsection--
                    ``(A) the agreement shall remain in force; 
                and
                    ``(B) the Secretary may require the 
                eligible entity to refund all or part of any 
                payments received by the entity under the 
                program, with interest on the payments as 
                determined appropriate by the Secretary.
    ``(h) Certification of Eligible Entities.--
            ``(1) Certification process.--The Secretary shall 
        establish a process under which the Secretary may--
                    ``(A) directly certify eligible entities 
                that meet established criteria;
                    ``(B) enter into long-term agreements with 
                certified entities, as authorized by subsection 
                (g)(2)(A); and
                    ``(C) accept proposals for cost-share 
                assistance to certified entities for the 
                purchase of conservation easements or other 
                interests in eligible land throughout the 
                duration of such agreements.
            ``(2) Certification criteria.--In order to be 
        certified, an eligible entity shall demonstrate to the 
        Secretary that the entity will maintain, at a minimum, 
        for the duration of the agreement--
                    ``(A) a plan for administering easements 
                that is consistent with the purpose of this 
                subchapter;
                    ``(B) the capacity and resources to monitor 
                and enforce conservation easements or other 
                interests in land; and
                    ``(C) policies and procedures to ensure--
                            ``(i) the long-term integrity of 
                        conservation easements or other 
                        interests in eligible land;
                            ``(ii) timely completion of 
                        acquisitions of easements or other 
                        interests in eligible land; and
                            ``(iii) timely and complete 
                        evaluation and reporting to the 
                        Secretary on the use of funds provided 
                        by the Secretary under the program.
            ``(3) Review and revision.--
                    ``(A) Review.--The Secretary shall conduct 
                a review of eligible entities certified under 
                paragraph (1) every three years to ensure that 
                such entities are meeting the criteria 
                established under paragraph (2).
                    ``(B) Revocation.--If the Secretary finds 
                that the certified entity no longer meets the 
                criteria established under paragraph (2), the 
                Secretary may--
                            ``(i) allow the certified entity a 
                        specified period of time, at a minimum 
                        180 days, in which to take such actions 
                        as may be necessary to meet the 
                        criteria; and
                            ``(ii) revoke the certification of 
                        the entity, if after the specified 
                        period of time, the certified entity 
                        does not meet the criteria established 
                        in paragraph (2).''.

SEC. 2402. FARM VIABILITY PROGRAM.

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

SEC. 2403. GRASSLAND RESERVE PROGRAM.

    Subchapter D of chapter 2 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3838n et seq.), as 
redesignated by section 2301(a)(1), is amended to read as 
follows:

               ``Subchapter D--Grassland Reserve Program

``SEC. 1238N. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment and Purpose.--The Secretary shall 
establish a grassland reserve program (referred to in this 
subchapter as the `program') for the purpose of assisting 
owners and operators in protecting grazing uses and related 
conservation values by restoring and conserving eligible land 
through rental contracts, easements, and restoration 
agreements.
    ``(b) Enrollment of Acreage.--
            ``(1) Acreage enrolled.--The Secretary shall enroll 
        an additional 1,220,000 acres of eligible land in the 
        program during fiscal years 2009 through 2012.
            ``(2) Methods of enrollment.--The Secretary shall 
        enroll eligible land in the program through the use of;
                    ``(A) a 10-year, 15-year, or 20-year rental 
                contract;
                    ``(B) a permanent easement; or
                    ``(C) in a State that imposes a maximum 
                duration for easements, an easement for the 
                maximum duration allowed under the law of that 
                State.
            ``(3) Limitation.--Of the total amount of funds 
        expended under the program to acquire rental contracts 
        and easements described in paragraph (2), the Secretary 
        shall use, to the extent practicable--
                    ``(A) 40 percent for rental contacts; and
                    ``(B) 60 percent for easements.
            ``(4) Enrollment of conservation reserve land.--
                    ``(A) Priority.--Upon expiration of a 
                contract under subchapter B of chapter 1 of 
                this subtitle, the Secretary shall give 
                priority for enrollment in the program to land 
                previously enrolled in the conservation reserve 
                program if--
                            ``(i) the land is eligible land, as 
                        defined in subsection (c); and
                            ``(ii) the Secretary determines 
                        that the land is of high ecological 
                        value and under significant threat of 
                        conversion to uses other than grazing.
                    ``(B) Maximum enrollment.--The number of 
                acres of land enrolled under the priority 
                described in subparagraph (A) in a calendar 
                year shall not exceed 10 percent of the total 
                number of acres enrolled in the program in that 
                calendar year.
    ``(c) Eligible Land Defined.--For purposes of the program, 
the term `eligible land' means private or tribal land that--
            ``(1) is grassland, land that contains forbs, or 
        shrubland (including improved rangeland and 
        pastureland) for which grazing is the predominant use;
            ``(2) is located in an area that has been 
        historically dominated by grassland, forbs, or 
        shrubland, and the land--
                    ``(A) could provide habitat for animal or 
                plant populations of significant ecological 
                value if the land--
                            ``(i) is retained in its current 
                        use; or
                            ``(ii) is restored to a natural 
                        condition;
                    ``(B) contains historical or archaeological 
                resources; or
                    ``(C) would address issues raised by State, 
                regional, and national conservation priorities; 
                or
            ``(3) is incidental to land described in paragraph 
        (1) or (2), if the incidental land is determined by the 
        Secretary to be necessary for the efficient 
        administration of a rental contract or easement under 
        the program.

``SEC. 1238O. DUTIES OF OWNERS AND OPERATORS.

    ``(a) Rental Contracts.--To be eligible to enroll eligible 
land in the program under a rental contract, the owner or 
operator of the land shall agree--
            ``(1) to comply with the terms of the contract and, 
        when applicable, a restoration agreement;
            ``(2) to suspend any existing cropland base and 
        allotment history for the land under another program 
        administered by the Secretary; and
            ``(3) to implement a grazing management plan, as 
        approved by the Secretary, which may be modified upon 
        mutual agreement of the parties.
    ``(b) Easements.--To be eligible to enroll eligible land in 
the program through an easement, the owner of the land shall 
agree--
            ``(1) to grant an easement to the Secretary or to 
        an eligible entity described in section 1238Q;
            ``(2) to create and record an appropriate deed 
        restriction in accordance with applicable State law to 
        reflect the easement;
            ``(3) to provide a written statement of consent to 
        the easement signed by persons holding a security 
        interest or any vested interest in the land;
            ``(4) to provide proof of unencumbered title to the 
        underlying fee interest in the land that is the subject 
        of the easement;
            ``(5) to comply with the terms of the easement and, 
        when applicable, a restoration agreement;
            ``(6) to implement a grazing management plan, as 
        approved by the Secretary, which may be modified upon 
        mutual agreement of the parties; and
            ``(7) to eliminate any existing cropland base and 
        allotment history for the land under another program 
        administered by the Secretary.
    ``(c) Restoration Agreements.--
            ``(1) When applicable.--To be eligible for cost-
        share assistance to restore eligible land subject to a 
        rental contract or an easement under the program, the 
        owner or operator of the land shall agree to comply 
        with the terms of a restoration agreement.
            ``(2) Terms and conditions.--The Secretary shall 
        prescribe the terms and conditions of a restoration 
        agreement by which eligible land that is subject to a 
        rental contract or easement under the program shall be 
        restored.
            ``(3) Duties.--The restoration agreement shall 
        describe the respective duties of the owner or operator 
        and the Secretary, including the Federal share of 
        restoration payments and technical assistance.
    ``(d) Terms and Conditions Applicable to Rental Contracts 
and Easements.--
            ``(1) Permissible activities.--The terms and 
        conditions of a rental contract or easement under the 
        program shall permit--
                    ``(A) common grazing practices, including 
                maintenance and necessary cultural practices, 
                on the land in a manner that is consistent with 
                maintaining the viability of grassland, forb, 
                and shrub species appropriate to that locality;
                    ``(B) haying, mowing, or harvesting for 
                seed production, subject to appropriate 
                restrictions during the nesting season for 
                birds in the local area that are in significant 
                decline or are conserved in accordance with 
                Federal or State law, as determined by the 
                State Conservationist;
                    ``(C) fire presuppression, rehabilitation, 
                and construction of fire breaks; and
                    ``(D) grazing related activities, such as 
                fencing and livestock watering.
            ``(2) Prohibitions.--The terms and conditions of a 
        rental contract or easement under the program shall 
        prohibit--
                    ``(A) the production of crops (other than 
                hay), fruit trees, vineyards, or any other 
                agricultural commodity that is inconsistent 
                with maintaining grazing land; and
                    ``(B) except as permitted under a 
                restoration plan, the conduct of any other 
                activity that would be inconsistent with 
                maintaining grazing land enrolled in the 
                program.
            ``(3) Additional terms and conditions.--A rental 
        contract or easement under the program shall include 
        such additional provisions as the Secretary determines 
        are appropriate to carry out or facilitate the purposes 
        and administration of the program.
    ``(e) Violations.--On a violation of the terms or 
conditions of a rental contract, easement, or restoration 
agreement entered into under this section--
            ``(1) the contract or easement shall remain in 
        force; and
            ``(2) the Secretary may require the owner or 
        operator to refund all or part of any payments received 
        under the program, with interest on the payments as 
        determined appropriate by the Secretary.

``SEC. 1238P. DUTIES OF SECRETARY.

    ``(a) Evaluation and Ranking of Applications.--
            ``(1) Criteria.--The Secretary shall establish 
        criteria to evaluate and rank applications for rental 
        contracts and easements under the program.
            ``(2) Considerations.--In establishing the 
        criteria, the Secretary shall emphasize support for--
                    ``(A) grazing operations;
                    ``(B) plant and animal biodiversity; and
                    ``(C) grassland, land that contains forbs, 
                and shrubland under the greatest threat of 
                conversion to uses other than grazing.
    ``(b) Payments.--
            ``(1) In general.--In return for the execution of a 
        rental contract or the granting of an easement by an 
        owner or operator under the program, the Secretary 
        shall--
                    ``(A) make rental contract or easement 
                payments to the owner or operator in accordance 
                with paragraphs (2) and (3); and
                    ``(B) make payments to the owner or 
                operator under a restoration agreement for the 
                Federal share of the cost of restoration in 
                accordance with paragraph (4).
            ``(2) Rental contract payments.--
                    ``(A) Percentage of grazing value of 
                land.--In return for the execution of a rental 
                contract by an owner or operator under the 
                program, the Secretary shall make annual 
                payments during the term of the contract in an 
                amount, subject to subparagraph (B), that is 
                not more than 75 percent of the grazing value 
                of the land covered by the contract.
                    ``(B) Payment limitation.--Payments made 
                under 1 or more rental contracts to a person or 
                legal entity, directly or indirectly, may not 
                exceed, in the aggregate, $50,000 per year.
            ``(3) Easement payments.--
                    ``(A) In general.--Subject to subparagraph 
                (B), in return for the granting of an easement 
                by an owner under the program, the Secretary 
                shall make easement payments in an amount not 
                to exceed the fair market value of the land 
                less the grazing value of the land encumbered 
                by the easement.
                    ``(B) Method for determination of 
                compensation.--In making a determination under 
                subparagraph (A), the Secretary shall pay as 
                compensation for an easement acquired under the 
                program the lowest of--
                            ``(i) the fair market value of the 
                        land encumbered by the easement, as 
                        determined by the Secretary, using--
                                    ``(I) the Uniform Standards 
                                of Professional Appraisal 
                                Practices; or
                                    ``(II) an area-wide market 
                                analysis or survey;
                            ``(ii) the amount corresponding to 
                        a geographical cap, as determined by 
                        the Secretary in regulations; or
                            ``(iii) the offer made by the 
                        landowner.
                    ``(C) Schedule.--Easement payments may be 
                provided in up to 10 annual payments of equal 
                or unequal amount, as agreed to by the 
                Secretary and the owner.
            ``(4) Restoration agreement payments.--
                    ``(A) Federal share of restoration.--The 
                Secretary shall make payments to an owner or 
                operator under a restoration agreement of not 
                more than 50 percent of the costs of carrying 
                out measures and practices necessary to restore 
                functions and values of that land.
                    ``(B) Payment limitation.--Payments made 
                under 1 or more restoration agreements to a 
                person or legal entity, directly or indirectly, 
                may not exceed, in the aggregate, $50,000 per 
                year.
            ``(5) Payments to others.--If an owner or operator 
        who is entitled to a payment under the program dies, 
        becomes incompetent, is otherwise unable to receive the 
        payment, or is succeeded by another person who renders 
        or completes the required performance, the Secretary 
        shall make the payment, in accordance with regulations 
        promulgated by the Secretary and without regard to any 
        other provision of law, in such manner as the Secretary 
        determines is fair and reasonable in light of all the 
        circumstances.

``SEC. 1238Q. DELEGATION OF DUTY.

    ``(a) Authority to Delegate.--The Secretary may delegate a 
duty under the program--
            ``(1) by transferring title of ownership to an 
        easement to an eligible entity to hold and enforce; or
            ``(2) by entering into a cooperative agreement with 
        an eligible entity for the eligible entity to own, 
        write, and enforce an easement.
    ``(b) Eligible Entity Defined.--In this section, the term 
`eligible entity' means--
            ``(1) an agency of State or local government or an 
        Indian tribe; or
            ``(2) an organization that--
                    ``(A) is organized for, and at all times 
                since the formation of the organization has 
                been operated principally for, one or more of 
                the conservation purposes specified in clause 
                (i), (ii), (iii), or (iv) of section 
                170(h)(4)(A) of the Internal Revenue Code of 
                1986;
                    ``(B) is an organization described in 
                section 501(c)(3) of that Code that is exempt 
                from taxation under section 501(a) of that 
                Code; and
                    ``(C) is described in--
                            ``(i) paragraph (1) or (2) of 
                        section 509(a) of that Code; or
                            ``(ii) in section 509(a)(3) of that 
                        Code, and is controlled by an 
                        organization described in section 
                        509(a)(2) of that Code.
    ``(c) Transfer of Title of Ownership.--
            ``(1) Transfer.--The Secretary may transfer title 
        of ownership to an easement to an eligible entity to 
        hold and enforce, in lieu of the Secretary, subject to 
        the right of the Secretary to conduct periodic 
        inspections and enforce the easement, if--
                    ``(A) the Secretary determines that the 
                transfer will promote protection of grassland, 
                land that contains forbs, or shrubland;
                    ``(B) the owner authorizes the eligible 
                entity to hold or enforce the easement; and
                    ``(C) the eligible entity agrees to assume 
                the costs incurred in administering and 
                enforcing the easement, including the costs of 
                restoration or rehabilitation of the land as 
                specified by the owner and the eligible entity.
            ``(2) Application.--An eligible entity that seeks 
        to hold and enforce an easement shall apply to the 
        Secretary for approval.
            ``(3) Approval by secretary.--The Secretary may 
        approve an application described in paragraph (2) if 
        the eligible entity--
                    ``(A) has the relevant experience 
                necessary, as appropriate for the application, 
                to administer an easement on grassland, land 
                that contains forbs, or shrubland;
                    ``(B) has a charter that describes a 
                commitment to conserving ranchland, 
                agricultural land, or grassland for grazing and 
                conservation purposes; and
                    ``(C) has the resources necessary to 
                effectuate the purposes of the charter.
    ``(d) Cooperative Agreements.--
            ``(1) Authorized; terms and conditions.--The 
        Secretary shall establish the terms and conditions of a 
        cooperative agreement under which an eligible entity 
        shall use funds provided by the Secretary to own, 
        write, and enforce an easement, in lieu of the 
        Secretary.
            ``(2) Minimum requirements.--At a minimum, the 
        cooperative agreement shall--
                    ``(A) specify the qualification of the 
                eligible entity to carry out the entity's 
                responsibilities under the program, including 
                acquisition, monitoring, enforcement, and 
                implementation of management policies and 
                procedures that ensure the long-term integrity 
                of the easement protections;
                    ``(B) require the eligible entity to assume 
                the costs incurred in administering and 
                enforcing the easement, including the costs of 
                restoration or rehabilitation of the land as 
                specified by the owner and the eligible entity;
                    ``(C) specify the right of the Secretary to 
                conduct periodic inspections to verify the 
                eligible entity's enforcement of the easement;
                    ``(D) subject to subparagraph (E), identify 
                a specific project or a range of projects to be 
                funded under the agreement;
                    ``(E) allow, upon mutual agreement of the 
                parties, substitution of qualified projects 
                that are identified at the time of 
                substitution;
                    ``(F) specify the manner in which the 
                eligible entity will evaluate and report the 
                use of funds to the Secretary;
                    ``(G) allow the eligible entity flexibility 
                to develop and use terms and conditions for 
                easements, if the Secretary finds the terms and 
                conditions consistent with the purposes of the 
                program and adequate to enable effective 
                enforcement of the easements;
                    ``(H) if applicable, allow an eligible 
                entity to include a charitable donation or 
                qualified conservation contribution (as defined 
                by section 170(h) of the Internal Revenue Code 
                of 1986) from the landowner from which the 
                easement will be purchased as part of the 
                entity's share of the cost to purchase an 
                easement; and
                    ``(I) provide for a schedule of payments to 
                an eligible entity, as agreed to by the 
                Secretary and the eligible entity.
            ``(3) Cost sharing.--
                    ``(A) In general.--As part of a cooperative 
                agreement with an eligible entity under this 
                subsection, the Secretary may provide a share 
                of the purchase price of an easement under the 
                program.
                    ``(B) Minimum share by eligible entity.--
                The eligible entity shall be required to 
                provide a share of the purchase price at least 
                equivalent to that provided by the Secretary.
                    ``(C) Priority.--The Secretary may accord a 
                higher priority to proposals from eligible 
                entities that leverage a greater share of the 
                purchase price of the easement.
            ``(4) Violation.--If an eligible entity violates 
        the terms or conditions of a cooperative agreement 
        entered into under this subsection--
                    ``(A) the cooperative agreement shall 
                remain in force; and
                    ``(B) the Secretary may require the 
                eligible entity to refund all or part of any 
                payments received by the eligible entity under 
                the program, with interest on the payments as 
                determined appropriate by the Secretary.
    ``(e) Protection of Federal Investment.--When delegating a 
duty under this section, the Secretary shall ensure that the 
terms of an easement include a contingent right of enforcement 
for the Department.''.

          Subtitle F--Environmental Quality Incentives Program

SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) Revised Purposes.--Section 1240 of the Food Security 
Act of 1985 (16 U.S.C. 3839aa) is amended--
            (1) in the matter preceding paragraph (1), by 
        inserting ``, forest management,'' after ``agricultural 
        production''; and
            (2) by striking paragraphs (3) and (4) and 
        inserting the following new paragraphs:
            ``(3) providing flexible assistance to producers to 
        install and maintain conservation practices that 
        sustain food and fiber production while--
                    ``(A) enhancing soil, water, and related 
                natural resources, including grazing land, 
                forestland, wetland, and wildlife; and
                    ``(B) conserving energy;
            ``(4) assisting producers to make beneficial, cost 
        effective changes to production systems (including 
        conservation practices related to organic production), 
        grazing management, fuels management, forest 
        management, nutrient management associated with 
        livestock, pest or irrigation management, or other 
        practices on agricultural and forested land; and''.
    (b) Technical Correction.--The Food Security Act of 1985 is 
amended by inserting immediately before section 1240 (16 U.S.C. 
3839aa) the following:

        ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM''.

SEC. 2502. DEFINITIONS.

    Section 1240A of the Food Security Act of 1985 (16 U.S.C. 
3839aa-1) is amended to read as follows:

``SEC. 1240A. DEFINITIONS.

    ``In this chapter:
            ``(1) Eligible land.--
                    ``(A) In general.--The term `eligible land' 
                means land on which agricultural commodities, 
                livestock, or forest-related products are 
                produced.
                    ``(B) Inclusions.--The term `eligible land' 
                includes the following:
                            ``(i) Cropland.
                            ``(ii) Grassland.
                            ``(iii) Rangeland.
                            ``(iv) Pasture land.
                            ``(v) Nonindustrial private forest 
                        land.
                            ``(vi) Other agricultural land 
                        (including cropped woodland, marshes, 
                        and agricultural land used for the 
                        production of livestock) on which 
                        resource concerns related to 
                        agricultural production could be 
                        addressed through a contract under the 
                        program, as determined by the 
                        Secretary.
            ``(2) National organic program.--The term `national 
        organic program' means the national organic program 
        established under the Organic Foods Production Act of 
        1990 (7 U.S.C. 6501 et seq.).
            ``(3) Organic system plan.--The term `organic 
        system plan' means an organic plan approved under the 
        national organic program.
            ``(4) Payment.--The term `payment' means financial 
        assistance provided to a producer for performing 
        practices under this chapter, including compensation 
        for--
                    ``(A) incurred costs associated with 
                planning, design, materials, equipment, 
                installation, labor, management, maintenance, 
                or training; and
                    ``(B) income forgone by the producer.
            ``(5) Practice.--The term `practice' means 1 or 
        more improvements and conservation activities that are 
        consistent with the purposes of the program under this 
        chapter, as determined by the Secretary, including--
                    ``(A) improvements to eligible land of the 
                producer, including--
                            ``(i) structural practices;
                            ``(ii) land management practices;
                            ``(iii) vegetative practices;
                            ``(iv) forest management; and
                            ``(v) other practices that the 
                        Secretary determines would further the 
                        purposes of the program; and
                    ``(B) conservation activities involving the 
                development of plans appropriate for the 
                eligible land of the producer, including--
                            ``(i) comprehensive nutrient 
                        management planning; and
                            ``(ii) other plans that the 
                        Secretary determines would further the 
                        purposes of the program under this 
                        chapter.
            ``(6) Program.--The term `program' means the 
        environmental quality incentives program established by 
        this chapter.''.

SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
                    INCENTIVES PROGRAM.

    Section 1240B of the Food Security Act of 1985 (16 U.S.C. 
3839aa-2) is amended to read as follows:

``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.

    ``(a) Establishment.--During each of the 2002 through 2012 
fiscal years, the Secretary shall provide payments to producers 
that enter into contracts with the Secretary under the program.
    ``(b) Practices and Term.--
            ``(1) Practices.--A contract under the program may 
        apply to the performance of one or more practices.
            ``(2) Term.--A contract under the program shall 
        have a term that--
                    ``(A) at a minimum, is equal to the period 
                beginning on the date on which the contract is 
                entered into and ending on the date that is one 
                year after the date on which all practices 
                under the contract have been implemented; but
                    ``(B) not to exceed 10 years.
    ``(c) Bidding Down.--If the Secretary determines that the 
environmental values of two or more applications for payments 
are comparable, the Secretary shall not assign a higher 
priority to the application only because it would present the 
least cost to the program.
    ``(d) Payments.--
            ``(1) Availability of payments.--Payments are 
        provided to a producer to implement one or more 
        practices under the program.
            ``(2) Limitation on payment amounts.--A payment to 
        a producer for performing a practice may not exceed, as 
        determined by the Secretary--
                    ``(A) 75 percent of the costs associated 
                with planning, design, materials, equipment, 
                installation, labor, management, maintenance, 
                or training;
                    ``(B) 100 percent of income foregone by the 
                producer; or
                    ``(C) in the case of a practice consisting 
                of elements covered under subparagraphs (A) and 
                (B)--
                            ``(i) 75 percent of the costs 
                        incurred for those elements covered 
                        under subparagraph (A); and
                            ``(ii) 100 percent of income 
                        foregone for those elements covered 
                        under subparagraph (B).
            ``(3) Special rule involving payments for foregone 
        income.--In determining the amount and rate of payments 
        under paragraph (2)(B), the Secretary may accord great 
        significance to a practice that, as determined by the 
        Secretary, promotes--
                    ``(A) residue management;
                    ``(B) nutrient management;
                    ``(C) air quality management;
                    ``(D) invasive species management;
                    ``(E) pollinator habitat;
                    ``(F) animal carcass management technology; 
                or
                    ``(G) pest management.
            ``(4) Increased payments for certain producers.--
                    ``(A) In general.--Notwithstanding 
                paragraph (2), in the case of a producer that 
                is a limited resource, socially disadvantaged 
                farmer or rancher or a beginning farmer or 
                rancher, the Secretary shall increase the 
                amount that would otherwise be provided to a 
                producer under this subsection--
                            ``(i) to not more than 90 percent 
                        of the costs associated with planning, 
                        design, materials, equipment, 
                        installation, labor, management, 
                        maintenance, or training; and
                            ``(ii) to not less than 25 percent 
                        above the otherwise applicable rate.
                    ``(B) Advance payments.--Not more than 30 
                percent of the amount determined under 
                subparagraph (A) may be provided in advance for 
                the purpose of purchasing materials or 
                contracting.
            ``(5) Financial assistance from other sources.--
        Except as provided in paragraph (6), any payments 
        received by a producer from a State or private 
        organization or person for the implementation of one or 
        more practices on eligible land of the producer shall 
        be in addition to the payments provided to the producer 
        under this subsection.
            ``(6) Other payments.--A producer shall not be 
        eligible for payments for practices on eligible land 
        under the program if the producer receives payments or 
        other benefits for the same practice on the same land 
        under another program under this subtitle.
    ``(e) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The 
        Secretary may modify or terminate a contract entered 
        into with a producer under the program if--
                    ``(A) the producer agrees to the 
                modification or termination; and
                    ``(B) the Secretary determines that the 
                modification or termination is in the public 
                interest.
            ``(2) Involuntary termination.--The Secretary may 
        terminate a contract under the program if the Secretary 
        determines that the producer violated the contract.
    ``(f) Allocation of Funding.--For each of fiscal years 2002 
through 2012, 60 percent of the funds made available for 
payments under the program shall be targeted at practices 
relating to livestock production.
    ``(g) Funding for Federally Recognized Native American 
Indian Tribes and Alaska Native Corporations.--The Secretary 
may enter into alternative funding arrangements with federally 
recognized Native American Indian Tribes and Alaska Native 
Corporations (including their affiliated membership 
organizations) if the Secretary determines that the goals and 
objectives of the program will be met by such arrangements, and 
that statutory limitations regarding contracts with individual 
producers will not be exceeded by any Tribal or Native 
Corporation member.
    ``(h) Water Conservation or Irrigation Efficiency 
Practice.--
            ``(1) Availability of payments.--The Secretary may 
        provide payments under this subsection to a producer 
        for a water conservation or irrigation practice.
            ``(2) Priority.--In providing payments to a 
        producer for a water conservation or irrigation 
        practice, the Secretary shall give priority to 
        applications in which--
                    ``(A) consistent with the law of the State 
                in which the eligible land of the producer is 
                located, there is a reduction in water use in 
                the operation of the producer; or
                    ``(B) the producer agrees not to use any 
                associated water savings to bring new land, 
                other than incidental land needed for efficient 
                operations, under irrigated production, unless 
                the producer is participating in a watershed-
                wide project that will effectively conserve 
                water, as determined by the Secretary.
    ``(i) Payments for Conservation Practices Related to 
Organic Production.--
            ``(1) Payments authorized.--The Secretary shall 
        provide payments under this subsection for conservation 
        practices, on some or all of the operations of a 
        producer, related--
                    ``(A) to organic production; and
                    ``(B) to the transition to organic 
                production.
            ``(2) Eligibility requirements.--As a condition for 
        receiving payments under this subsection, a producer 
        shall agree--
                    ``(A) to develop and carry out an organic 
                system plan; or
                    ``(B) to develop and implement conservation 
                practices for certified organic production that 
                are consistent with an organic system plan and 
                the purposes of this chapter.
            ``(3) Payment limitations.--Payments under this 
        subsection to a person or legal entity, directly or 
        indirectly, may not exceed, in the aggregate, $20,000 
        per year or $80,000 during any 6-year period. In 
        applying these limitations, the Secretary shall not 
        take into account payments received for technical 
        assistance.
            ``(4) Exclusion of certain organic certification 
        costs.--Payments may not be made under this subsection 
        to cover the costs associated with organic 
        certification that are eligible for cost-share payments 
        under section 10606 of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 6523).
            ``(5) Termination of contracts.--The Secretary may 
        cancel or otherwise nullify a contract to provide 
        payments under this subsection if the Secretary 
        determines that the producer--
                    ``(A) is not pursuing organic 
                certification; or
                    ``(B) is not in compliance with the Organic 
                Foods Production Act of 1990 (7 U.S.C. 6501 et 
                seq.).''.

SEC. 2504. EVALUATION OF APPLICATIONS.

    Section 1240C of the Food Security Act of 1985 (16 U.S.C. 
3839aa-3) is amended to read as follows:

``SEC. 1240C. EVALUATION OF APPLICATIONS.

    ``(a) Evaluation Criteria.--The Secretary shall develop 
criteria for evaluating applications that will ensure that 
national, State, and local conservation priorities are 
effectively addressed.
    ``(b) Prioritization of Applications.--In evaluating 
applications under this chapter, the Secretary shall prioritize 
applications--
            ``(1) based on their overall level of cost-
        effectiveness to ensure that the conservation practices 
        and approaches proposed are the most efficient means of 
        achieving the anticipated environmental benefits of the 
        project;
            ``(2) based on how effectively and comprehensively 
        the project addresses the designated resource concern 
        or resource concerns;
            ``(3) that best fulfill the purpose of the 
        environmental quality incentives program specified in 
        section 1240(1); and
            ``(4) that improve conservation practices or 
        systems in place on the operation at the time the 
        contract offer is accepted or that will complete a 
        conservation system.
    ``(c) Grouping of Applications.--To the greatest extent 
practicable, the Secretary shall group applications of similar 
crop or livestock operations for evaluation purposes or 
otherwise evaluate applications relative to other applications 
for similar farming operations.''.

SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRONMENTAL QUALITY INCENTIVES 
                    PROGRAM.

    Section 1240D of the Food Security Act of 1985 (16 U.S.C. 
3839aa-4) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking ``technical assistance, cost-share payments, 
        or incentive'';
            (2) in paragraph (2), by striking ``farm or ranch'' 
        and inserting ``farm, ranch, or forest land''; and
            (3) in paragraph (4), by striking ``cost-share 
        payments and incentive''.

SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    (a) Plan of Operations.--Section 1240E(a) of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-5(a)) is amended--
            (1) in the subsection heading, by striking ``In 
        General'' and inserting ``Plan of Operations'';
            (2) in matter preceding paragraph (1), by striking 
        ``cost-share payments or incentive'';
            (3) in paragraph (2), by striking ``and'' after the 
        semicolon at the end;
            (4) in paragraph (3), by striking the period at the 
        end and inserting ``; and''; and
            (5) by adding at the end the following new 
        paragraph:
            ``(4) in the case of forest land, is consistent 
        with the provisions of a forest management plan that is 
        approved by the Secretary, which may include--
                    ``(A) a forest stewardship plan described 
                in section 5 of the Cooperative Forestry 
                Assistance Act of 1978 (16 U.S.C. 2103a);
                    ``(B) another practice plan approved by the 
                State forester; or
                    ``(C) another plan determined appropriate 
                by the Secretary.''.
    (b) Avoidance of Duplication.--Subsection (b) of section 
1240E of the Food Security Act of 1985 (16 U.S.C. 3839aa-5) is 
amended to read as follows:
    ``(b) Avoidance of Duplication.--The Secretary shall--
            ``(1) consider a plan developed in order to acquire 
        a permit under a water or air quality regulatory 
        program as the equivalent of a plan of operations under 
        subsection (a), if the plan contains elements 
        equivalent to those elements required by a plan of 
        operations; and
            ``(2) to the maximum extent practicable, eliminate 
        duplication of planning activities under the program 
        under this chapter and comparable conservation 
        programs.''.

SEC. 2507. DUTIES OF THE SECRETARY.

    Section 1240F(1) of the Food Security Act of 1985 (16 
U.S.C. 3839aa-6(1)) is amended by striking ``cost-share 
payments or incentive''.

SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY INCENTIVES PROGRAM 
                    PAYMENTS.

    Section 1240G of the Food Security Act of 1985 (16 U.S.C. 
3839aa-7) is amended--
            (1) by striking ``An individual or entity'' and 
        inserting ``(a) limitation.--Subject to subsection (b), 
        a person or legal entity'';
            (2) by striking ``$450,000'' and inserting 
        ``$300,000'';
            (3) by striking ``the individual'' both places it 
        appears and inserting ``the person''; and
            (4) by adding at the end the following new 
        subsection:
    ``(b) Waiver Authority.--In the case of contracts under 
this chapter for projects of special environmental significance 
(including projects involving methane digesters), as determined 
by the Secretary, the Secretary may--
            ``(1) waive the limitation otherwise applicable 
        under subsection (a); and
            ``(2) raise the limitation to not more than 
        $450,000 during any six-year period.''.

SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

    Section 1240H of the Food Security Act of 1985 (16 U.S.C. 
3839aa-8) is amended to read as follows:

``SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

    ``(a) Competitive Grants for Innovative Conservation 
Approaches.--
            ``(1) Grants.--Out of the funds made available to 
        carry out this chapter, the Secretary may pay the cost 
        of competitive grants that are intended to stimulate 
        innovative approaches to leveraging the Federal 
        investment in environmental enhancement and protection, 
        in conjunction with agricultural production or forest 
        resource management, through the program.
            ``(2) Use.--The Secretary may provide grants under 
        this subsection to governmental and non-governmental 
        organizations and persons, on a competitive basis, to 
        carry out projects that--
                    ``(A) involve producers who are eligible 
                for payments or technical assistance under the 
                program;
                    ``(B) leverage Federal funds made available 
                to carry out the program under this chapter 
                with matching funds provided by State and local 
                governments and private organizations to 
                promote environmental enhancement and 
                protection in conjunction with agricultural 
                production;
                    ``(C) ensure efficient and effective 
                transfer of innovative technologies and 
                approaches demonstrated through projects that 
                receive funding under this section, such as 
                market systems for pollution reduction and 
                practices for the storage of carbon in soil; 
                and
                    ``(D) provide environmental and resource 
                conservation benefits through increased 
                participation by producers of specialty crops.
    ``(b) Air Quality Concerns From Agricultural Operations.--
            ``(1) Implementation assistance.--The Secretary 
        shall provide payments under this subsection to 
        producers to implement practices to address air quality 
        concerns from agricultural operations and to meet 
        Federal, State, and local regulatory requirements. The 
        funds shall be made available on the basis of air 
        quality concerns in a State and shall be used to 
        provide payments to producers that are cost effective 
        and reflect innovative technologies.
            ``(2) Funding.--Of the funds made available to 
        carry out this chapter, the Secretary shall carry out 
        this subsection using $37,500,000 for each of fiscal 
        years 2009 through 2012.''.

SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

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

``SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Agricultural water enhancement activity.--The 
        term `agricultural water enhancement activity' includes 
        the following activities carried out with respect to 
        agricultural land:
                    ``(A) Water quality or water conservation 
                plan development, including resource condition 
                assessment and modeling.
                    ``(B) Water conservation restoration or 
                enhancement projects, including conversion to 
                the production of less water-intensive 
                agricultural commodities or dryland farming.
                    ``(C) Water quality or quantity restoration 
                or enhancement projects.
                    ``(D) Irrigation system improvement and 
                irrigation efficiency enhancement.
                    ``(E) Activities designed to mitigate the 
                effects of drought.
                    ``(F) Related activities that the Secretary 
                determines will help achieve water quality or 
                water conservation benefits on agricultural 
                land.
            ``(2) Partner.--The term `partner' means an entity 
        that enters into a partnership agreement with the 
        Secretary to carry out agricultural water enhancement 
        activities on a regional basis, including--
                    ``(A) an agricultural or silvicultural 
                producer association or other group of such 
                producers;
                    ``(B) a State or unit of local government; 
                or
                    ``(C) a federally recognized Indian tribe.
            ``(3) Partnership agreement.--The term `partnership 
        agreement' means an agreement between the Secretary and 
        a partner.
            ``(4) Program.--The term `program' means the 
        agricultural water enhancement program established 
        under subsection (b).
    ``(b) Establishment of Program.--Beginning in fiscal year 
2009, the Secretary shall carry out, in accordance with this 
section and using such procedures as the Secretary determines 
to be appropriate, an agricultural water enhancement program as 
part of the environmental quality incentives program to promote 
ground and surface water conservation and improve water quality 
on agricultural lands--
            ``(1) by entering into contracts with, and making 
        payments to, producers to carry out agricultural water 
        enhancement activities; or
            ``(2) by entering into partnership agreements with 
        partners, in accordance with subsection (c), on a 
        regional level to benefit working agricultural land.
    ``(c) Partnership Agreements.--
            ``(1) Agreements authorized.--The Secretary may 
        enter into partnership agreements to meet the 
        objectives of the program described in subsection (b).
            ``(2) Applications.--An application to the 
        Secretary to enter into a partnership agreement under 
        paragraph (1) shall include the following:
                    ``(A) A description of the geographical 
                area to be covered by the partnership 
                agreement.
                    ``(B) A description of the agricultural 
                water quality or water conservation issues to 
                be addressed by the partnership agreement.
                    ``(C) A description of the agricultural 
                water enhancement objectives to be achieved 
                through the partnership.
                    ``(D) A description of the partners 
                collaborating to achieve the project objectives 
                and the roles, responsibilities, and 
                capabilities of each partner.
                    ``(E) A description of the program 
                resources, including payments the Secretary is 
                requested to make.
                    ``(F) Such other elements as the Secretary 
                considers necessary to adequately evaluate and 
                competitively select applications for 
                partnership agreements.
            ``(3) Duties of partners.--A partner under a 
        partnership agreement shall--
                    ``(A) identify producers participating in 
                the project and act on their behalf in applying 
                for the program;
                    ``(B) leverage funds provided by the 
                Secretary with additional funds to help achieve 
                project objectives;
                    ``(C) conduct monitoring and evaluation of 
                project effects; and
                    ``(D) at the conclusion of the project, 
                report to the Secretary on project results.
    ``(d) Agricultural Water Enhancement Activities by 
Producers.--The Secretary shall select agricultural water 
enhancement activities proposed by producers according to 
applicable requirements under the environmental quality 
incentives program.
    ``(e) Agricultural Water Enhancement Activities by 
Partners.--
            ``(1) Competitive process.--The Secretary shall 
        conduct a competitive process to select partners. In 
        carrying out the process, the Secretary shall make 
        public the criteria used in evaluating applications.
            ``(2) Authority to give priority to certain 
        proposals.--The Secretary may give a higher priority to 
        proposals from partners that--
                    ``(A) include high percentages of 
                agricultural land and producers in a region or 
                other appropriate area;
                    ``(B) result in high levels of applied 
                agricultural water quality and water 
                conservation activities;
                    ``(C) significantly enhance agricultural 
                activity;
                    ``(D) allow for monitoring and evaluation; 
                and
                    ``(E) assist producers in meeting a 
                regulatory requirement that reduces the 
                economic scope of the producer's operation.
            ``(3) Priority to proposals from states with water 
        quantity concerns.--The Secretary shall give a higher 
        priority to proposals from partners that--
                    ``(A) include the conversion of 
                agricultural land from irrigated farming to 
                dryland farming;
                    ``(B) leverage Federal funds provided under 
                the program with funds provided by partners; 
                and
                    ``(C) assist producers in States with water 
                quantity concerns, as determined by the 
                Secretary.
            ``(4) Administration.--In carrying out this 
        subsection, the Secretary shall--
                    ``(A) accept qualified applications--
                            ``(i) directly from partners 
                        applying on behalf of producers; or
                            ``(ii) from producers applying 
                        through a partner as part of a regional 
                        agricultural water enhancement project; 
                        and
                    ``(B) ensure that resources made available 
                for regional agricultural water enhancement 
                activities are delivered in accordance with 
                applicable program rules.
    ``(f) Areas Experiencing Exceptional Drought.--
Notwithstanding the purposes described in section 1240, the 
Secretary shall consider as an eligible agricultural water 
enhancement activity the use of a water impoundment to capture 
surface water runoff on agricultural land if the agricultural 
water enhancement activity--
            ``(1) is located in an area that is experiencing or 
        has experienced exceptional drought conditions during 
        the previous two calendar years; and
            ``(2) will capture surface water runoff through the 
        construction, improvement, or maintenance of irrigation 
        ponds or small, on-farm reservoirs.
    ``(g) Waiver Authority.--To assist in the implementation of 
agricultural water enhancement activities under the program, 
the Secretary shall waive the applicability of the limitation 
in section 1001D(b)(2)(B) of this Act for participating 
producers if the Secretary determines that the waiver is 
necessary to fulfill the objectives of the program.
    ``(h) Payments Under Program.--
            ``(1) In general.--The Secretary shall provide 
        appropriate payments to producers participating in 
        agricultural water enhancement activities in an amount 
        determined by the secretary to be necessary to achieve 
        the purposes of the program described in subsection 
        (b).
            ``(2) Payments to producers in states with water 
        quantity concerns.--The Secretary shall provide 
        payments for a period of five years to producers 
        participating in agricultural water enhancement 
        activities under proposals described in subsection 
        (e)(3) in an amount sufficient to encourage producers 
        to convert from irrigated farming to dryland farming.
    ``(i) Consistency With State Law.--Any agricultural water 
enhancement activity conducted under the program shall be 
conducted in a manner consistent with State water law.
    ``(j) Funding.--
            ``(1) Availability of funds.--In addition to funds 
        made available to carry out this chapter under section 
        1241(a), the Secretary shall carry out the program 
        using, of the funds of the Commodity Credit 
        Corporation--
                    ``(A) $73,000,000 for each of fiscal years 
                2009 and 2010;
                    ``(B) $74,000,000 for fiscal year 2011; and
                    ``(C) $60,000,000 for fiscal year 2012 and 
                each fiscal year thereafter.
            ``(2) Limitation on administrative expenses.--None 
        of the funds made available for regional agricultural 
        water conservation activities under the program may be 
        used to pay for the administrative expenses of 
        partners.''.

  Subtitle G--Other Conservation Programs of the Food Security Act of 
                                  1985

SEC. 2601. CONSERVATION OF PRIVATE GRAZING LAND.

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

SEC. 2602. WILDLIFE HABITAT INCENTIVE PROGRAM.

    (a) Eligibility.--Section 1240N of the Food Security Act of 
1985 (16 U.S.C. 3839bb-1) is amended--
            (1) in subsection (a), by inserting before the 
        period at the end the following: ``for the development 
        of wildlife habitat on private agricultural land, 
        nonindustrial private forest land, and tribal lands''.
            (2) in subsection (b)(1), by striking 
        ``landowners'' and inserting ``owners of lands referred 
        to in subsection (a)''.
    (b) Inclusion of Pivot Corners and Irregular Areas.--
Section 1240N(b)(1)(E) of the Food Security Act of 1985 (16 
U.S.C. 3839bb-1(b)(1)(E)) is amended by inserting before the 
period at the end the following: ``, including habitat 
developed on pivot corners and irregular areas''.
    (c) Cost Share for Long-Term Agreements.--Section 
1240N(b)(2)(B) of the Food Security Act of 1985 (16 U.S.C. 
3839bb-1(b)(2)(B)) is amended by striking ``15 percent'' and 
inserting ``25 percent''.
    (d) Priority for Certain Conservation Initiatives; Payment 
Limitation.--Section 1240N of the Food Security Act of 1985 (16 
U.S.C. 3839bb-1) is amended by adding at the end the following 
new subsections:
    ``(d) Priority for Certain Conservation Initiatives.--In 
carrying out this section, the Secretary may give priority to 
projects that would address issues raised by State, regional, 
and national conservation initiatives.
    ``(e) Payment Limitation.--Payments made to a person or 
legal entity, directly or indirectly, under the program may not 
exceed, in the aggregate, $50,000 per year.''.

SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    Section 1240O(b) of the Food Security Act of 1985 (16 
U.S.C. 3839bb-2(b)) is amended by striking ``$5,000,000 for 
each of fiscal years 2002 through 2007'' and inserting 
``$20,000,000 for each of fiscal years 2008 through 2012''.

SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT 
                    CONTROL.

    Section 1240P of the Food Security Act of 1985 (16 U.S.C. 
3839bb-3) is amended to read as follows:

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

    ``(a) Program Authorized.--The Secretary may carry out the 
Great Lakes basin program for soil erosion and sediment control 
(referred to in this section as the `program'), including 
providing assistance to implement the recommendations of the 
Great Lakes Regional Collaboration Strategy to Restore and 
Protect the Great Lakes.
    ``(b) Consultation and Cooperation.--The Secretary shall 
carry out the program in consultation with the Great Lakes 
Commission created by Article IV of the Great Lakes Basin 
Compact (82 Stat. 415) and in cooperation with the 
Administrator of the Environmental Protection Agency and the 
Secretary of the Army.
    ``(c) Assistance.--In carrying out the program, the 
Secretary may--
            ``(1) provide project demonstration grants, provide 
        technical assistance, and carry out information and 
        educational programs to improve water quality in the 
        Great Lakes basin by reducing soil erosion and 
        improving sediment control; and
            ``(2) establish a priority for projects and 
        activities that--
                    ``(A) directly reduce soil erosion or 
                improve sediment control;
                    ``(B) reduce soil loss in degraded rural 
                watersheds; or
                    ``(C) improve water quality for downstream 
                watersheds.
    ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out the program 
$5,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security 
Act of 1985 is amended by inserting after section 1240P (16 
U.S.C. 3839bb-3) the following new section:

``SEC. 1240Q. CHESAPEAKE BAY WATERSHED.

    ``(a) Chesapeake Bay Watershed Defined.--In this section, 
the term `Chesapeake Bay watershed' means all tributaries, 
backwaters, and side channels, including their watersheds, 
draining into the Chesapeake Bay.
    ``(b) Establishment and Purpose.--The Secretary shall 
assist producers in implementing conservation activities on 
agricultural lands in the Chesapeake Bay watershed for the 
purposes of--
            ``(1) improving water quality and quantity in the 
        Chesapeake Bay watershed; and
            ``(2) restoring, enhancing, and preserving soil, 
        air, and related resources in the Chesapeake Bay 
        watershed.
    ``(c) Conservation Activities.--The Secretary shall deliver 
the funds made available to carry out this section through 
applicable programs under this subtitle to assist producers in 
enhancing land and water resources--
            ``(1) by controlling erosion and reducing sediment 
        and nutrient levels in ground and surface water; and
            ``(2) by planning, designing, implementing, and 
        evaluating habitat conservation, restoration, and 
        enhancement measures where there is significant 
        ecological value if the lands are--
                    ``(A) retained in their current use; or
                    ``(B) restored to their natural condition.
    ``(d) Agreements.--
            ``(1) In general.--The Secretary shall--
                    ``(A) enter into agreements with producers 
                to carry out the purposes of this section; and
                    ``(B) use the funds made available to carry 
                out this section to cover the costs of the 
                program involved with each agreement.
            ``(2) Special considerations.--In entering into 
        agreements under this subsection, the Secretary shall 
        give special consideration to, and begin evaluating, 
        applications with producers in the following river 
        basins:
                    ``(A) The Susquehanna River.
                    ``(B) The Shenandoah River.
                    ``(C) The Potomac River (including North 
                and South Potomac).
                    ``(D) The Patuxent River.
    ``(e) Duties of the Secretary.--In carrying out the 
purposes in this section, the Secretary shall--
            ``(1) where available, use existing plans, models, 
        and assessments to assist producers in implementing 
        conservation activities; and
            ``(2) proceed expeditiously with the implementation 
        of any agreement with a producer that is consistent 
        with State strategies for the restoration of the 
        Chesapeake Bay watershed.
    ``(f) Consultation.--The Secretary, in consultation with 
appropriate Federal agencies, shall ensure conservation 
activities carried out under this section complement Federal 
and State programs, including programs that address water 
quality, in the Chesapeake Bay watershed.
    ``(g) Sense of Congress Regarding Chesapeake Bay Executive 
Council.--It is the sense of Congress that the Secretary should 
be a member of the Chesapeake Bay Executive Council, and is 
authorized to do so under section 1(3) of the Soil Conservation 
and Domestic Allotment Act (16 U.S.C. 590a(3)).
    ``(h) Funding.--
            ``(1) Availability.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use, to the 
        maximum extent practicable--
                    ``(A) $23,000,000 for fiscal year 2009;
                    ``(B) $43,000,000 for fiscal year 2010;
                    ``(C) $72,000,000 for fiscal year 2011; and
                    ``(D) $50,000,000 for fiscal year 2012.
            ``(2) Duration of availability.--Funds made 
        available under paragraph (1) shall remain available 
        until expended.''

SEC. 2606. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by inserting 
after section 1240Q, as added by section 2605, the following 
new section:

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

    ``(a) Establishment.--The Secretary shall establish a 
voluntary public access program under which States and tribal 
governments may apply for grants to encourage owners and 
operators of privately-held farm, ranch, and forest land to 
voluntarily make that land available for access by the public 
for wildlife-dependent recreation, including hunting or fishing 
under programs administered by the States and tribal 
governments.
    ``(b) Applications.--In submitting applications for a grant 
under the program, a State or tribal government shall 
describe--
            ``(1) the benefits that the State or tribal 
        government intends to achieve by encouraging public 
        access to private farm and ranch land for--
                    ``(A) hunting and fishing; and
                    ``(B) to the maximum extent practicable, 
                other recreational purposes; and
            ``(2) the methods that will be used to achieve 
        those benefits.
    ``(c) Priority.--In approving applications and awarding 
grants under the program, the Secretary shall give priority to 
States and tribal governments that propose--
            ``(1) to maximize participation by offering a 
        program the terms of which are likely to meet with 
        widespread acceptance among landowners;
            ``(2) to ensure that land enrolled under the State 
        or tribal government program has appropriate wildlife 
        habitat;
            ``(3) to strengthen wildlife habitat improvement 
        efforts on land enrolled in a special conservation 
        reserve enhancement program described in section 
        1234(f)(4) by providing incentives to increase public 
        hunting and other recreational access on that land;
            ``(4) to use additional Federal, State, tribal 
        government, or private resources in carrying out the 
        program; and
            ``(5) to make available to the public the location 
        of land enrolled.
    ``(d) Relationship to Other Laws.--
            ``(1) No preemption.--Nothing in this section 
        preempts a State or tribal government law, including 
        any State or tribal government liability law.
            ``(2) Effect of inconsistent opening dates for 
        migratory bird hunting.--The Secretary shall reduce by 
        25 percent the amount of a grant otherwise determined 
        for a State under the program if the opening dates for 
        migratory bird hunting in the State are not consistent 
        for residents and non-residents.
    ``(e) Regulations.--The Secretary shall promulgate such 
regulations as are necessary to carry out this section.
    ``(f) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall use, to the maximum extent 
practicable, $50,000,000 for the period of fiscal years 2009 
through 2012.''.

    Subtitle H--Funding and Administration of Conservation Programs

SEC. 2701. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD SECURITY ACT OF 
                    1985.

    (a) In General.--Section 1241(a) of the Food Security Act 
of 1985 (16 U.S.C. 3841(a)) is amended in the matter preceding 
paragraph (1), by striking ``2007'' and inserting ``2012''.
    (b) Conservation Reserve Program.--Paragraph (1) of section 
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 
amended by striking the period at the end and inserting the 
following: ``, including to the maximum extent practicable--
                    ``(A) $100,000,000 for the period of fiscal 
                years 2009 through 2012 to provide cost share 
                payments under paragraph (3) of section 1234(b) 
                in connection with thinning activities 
                conducted on land described in subparagraph 
                (A)(iii) of such paragraph; and
                    ``(B) $25,000,000 for the period of fiscal 
                years 2009 through 2012 to carry out section 
                1235(f) to facilitate the transfer of land 
                subject to contracts from retired or retiring 
                owners and operators to beginning farmers or 
                ranchers and socially disadvantaged farmers or 
                ranchers.''.
    (c) Conservation Security and Conservation Stewardship 
Programs.--Paragraph (3) of section 1241(a) of the Food 
Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read as 
follows:
            ``(3)(A) Conservation security program.--The 
        conservation security program under subchapter A of 
        chapter 2, using such sums as are necessary to 
        administer contracts entered into before September 30, 
        2008.
            ``(B) Conservation stewardship program.--The 
        conservation stewardship program under subchapter B of 
        chapter 2.''.
    (d) Farmland Protection Program.--Paragraph (4) of section 
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 
amended to read as follows:
            ``(4) The farmland protection program under 
        subchapter C of chapter 2, using, to the maximum extent 
        practicable--
                    ``(A) $97,000,000 in fiscal year 2008;
                    ``(B) $121,000,000 in fiscal year 2009;
                    ``(C) $150,000,000 in fiscal year 2010;
                    ``(D) $175,000,000 in fiscal year 2011; and
                    ``(E) $200,000,000 in fiscal year 2012.''.
    (e) Grassland Reserve Program.--Paragraph (5) of section 
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 
amended to read as follows:
            ``(5) The grassland reserve program under 
        subchapter D of chapter 2.''.
    (f) Environmental Quality Incentives Program.--Paragraph 
(6) of section 1241(a) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)) is amended to read as follows:
            ``(6) The environmental quality incentives program 
        under chapter 4, using, to the maximum extent 
        practicable--
                    ``(A) $1,200,000,000 in fiscal year 2008;
                    ``(B) $1,337,000,000 in fiscal year 2009;
                    ``(C) $1,450,000,000 in fiscal year 2010;
                    ``(D) $1,588,000,000 in fiscal year 2011; 
                and
                    ``(E) $1,750,000,000 in fiscal year 
                2012.''.
    (g) Wildlife Habitat Incentives Program.--Paragraph (7)(D) 
of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 2702. AUTHORITY TO ACCEPT CONTRIBUTIONS TO SUPPORT CONSERVATION 
                    PROGRAMS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
3841) is amended by adding at the end the following new 
subsection:
    ``(e) Acceptance and Use of Contributions.--
            ``(1) Authority to establish contribution 
        accounts.--Subject to paragraph (2), the Secretary may 
        establish a sub-account for each conservation program 
        administered by the Secretary under subtitle D to 
        accept contributions of non-Federal funds to support 
        the purposes of the program.
            ``(2) Deposit and use of contributions.--
        Contributions of non-Federal funds received for a 
        conservation program administered by the Secretary 
        under subtitle D shall be deposited into the sub-
        account established under this subsection for the 
        program and shall be available to the Secretary, 
        without further appropriation and until expended, to 
        carry out the program.''.

SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY.

    (a) Regional Equity and Flexibility.--Section 1241(d) of 
the Food Security Act of 1985 (16 U.S.C. 3841(d)) is amended--
            (1) by striking ``Before April 1'' and inserting 
        the following:
            ``(1) Priority funding to promote equity.--Before 
        April 1'';
            (2) by striking ``$12,000,000'' and inserting 
        ``$15,000,000''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(2) Specific funding allocations.--In determining 
        the specific funding allocations for States under 
        paragraph (1), the Secretary shall consider the 
        respective demand in each State for each program 
        covered by such paragraph.''.
    (b) Allocations Review and Update.--Section 1241 of the 
Food Security Act of 1985 (16 U.S.C. 3841) is amended by 
inserting after subsection (e), as added by section 2702, the 
following new subsection:
    ``(f) Allocations Review and Update.--
            ``(1) Review.--Not later than January 1, 2012, the 
        Secretary shall conduct a review of conservation 
        programs and authorities under this title that utilize 
        allocation formulas to determine the sufficiency of the 
        formulas in accounting for State-level economic 
        factors, level of agricultural infrastructure, or 
        related factors that affect conservation program costs.
            ``(2) Update.--The Secretary shall improve 
        conservation program allocation formulas as necessary 
        to ensure that the formulas adequately reflect the 
        costs of carrying out the conservation programs.''.

SEC. 2704. ASSISTANCE TO CERTAIN FARMERS AND RANCHERS TO IMPROVE THEIR 
                    ACCESS TO CONSERVATION PROGRAMS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
3841) is amended by inserting after subsection (f), as added by 
section 2703(b), the following new subsection:
    ``(g) Assistance to Certain Farmers or Ranchers for 
Conservation Access.--
            ``(1) Assistance.--Of the funds made available for 
        each of fiscal years 2009 through 2012 to carry out the 
        environmental quality incentives program and the acres 
        made available for each of such fiscal years to carry 
        out the conservation stewardship program, the Secretary 
        shall use, to the maximum extent practicable--
                    ``(A) 5 percent to assist beginning farmers 
                or ranchers; and
                    ``(B) 5 percent to assist socially 
                disadvantaged farmers or ranchers.
            ``(2) Repooling of funds.--In any fiscal year, 
        amounts not obligated under paragraph (1) by a date 
        determined by the Secretary shall be available for 
        payments and technical assistance to all persons 
        eligible for payments or technical assistance in that 
        fiscal year under the environmental quality incentives 
        program.
            ``(3) Repooling of acres.--In any fiscal year, 
        acres not obligated under paragraph (1) by a date 
        determined by the Secretary shall be available for use 
        in that fiscal year under the conservation stewardship 
        program.''.

SEC. 2705. REPORT REGARDING ENROLLMENTS AND ASSISTANCE UNDER 
                    CONSERVATION PROGRAMS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
3841) is amended by inserting after subsection (g), as added by 
section 2704, the following new subsection:
    ``(h) Report on Program Enrollments and Assistance.--
Beginning in calendar year 2009, and each year thereafter, the 
Secretary shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a semiannual report 
containing statistics by State related to enrollments in 
conservation programs under this subtitle, as follows:
            ``(1) Payments made under the wetlands reserve 
        program for easements valued at $250,000 or greater.
            ``(2) Payments made under the farmland protection 
        program for easements in which the Federal share is 
        $250,000 or greater.
            ``(3) Payments made under the grassland reserve 
        program valued at $250,000 or greater.
            ``(4) Payments made under the environmental quality 
        incentives program for land determined to have special 
        environmental significance pursuant to section 
        1240G(b).
            ``(5) Payments made under the agricultural water 
        enhancement program subject to the waiver of adjusted 
        gross income limitations pursuant to section 1240I(g).
            ``(6) Waivers granted by the Secretary under 
        section 1001D(b)(2) of this Act in order to protect 
        environmentally sensitive land of special 
        significance.''.

SEC. 2706. DELIVERY OF CONSERVATION TECHNICAL ASSISTANCE.

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

``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

    ``(a) Definition of Eligible Participant.--In this section, 
the term `eligible participant' means a producer, landowner, or 
entity that is participating in, or seeking to participate in, 
programs for which the producer, landowner, or entity is 
otherwise eligible to participate in under this title or the 
agricultural management assistance program under section 524 of 
the Federal Crop Insurance Act (7 U.S.C. 1524).
    ``(b) Purpose of Technical Assistance.--The purpose of 
technical assistance authorized by this section is to provide 
eligible participants with consistent, science-based, site-
specific practices designed to achieve conservation objectives 
on land active in agricultural, forestry, or related uses.
    ``(c) Provision of Technical Assistance.--The Secretary 
shall provide technical assistance under this title to an 
eligible participant--
            ``(1) directly;
            ``(2) through an agreement with a third-party 
        provider; or
            ``(3) at the option of the eligible participant, 
        through a payment, as determined by the Secretary, to 
        the eligible participant for an approved third-party 
        provider, if available.
    ``(d) Non-Federal Assistance.--The Secretary may request 
the services of, and enter into cooperative agreements or 
contracts with, other agencies within the Department or non-
Federal entities to assist the Secretary in providing technical 
assistance necessary to assist in implementing conservation 
programs under this title.
    ``(e) Certification of Third-Party Providers.--
            ``(1) Purpose.--The purpose of the third-party 
        provider program is to increase the availability and 
        range of technical expertise available to eligible 
        participants to plan and implement conservation 
        measures.
            ``(2) Regulations.--Not later than 180 days after 
        the date of the enactment of the Food, Conservation, 
        and Energy Act of 2008, the Secretary shall promulgate 
        such regulations as are necessary to carry out this 
        section.
            ``(3) Expertise.--In promulgating such regulations, 
        the Secretary, to the maximum extent practicable, 
        shall--
                    ``(A) ensure that persons with expertise in 
                the technical aspects of conservation planning, 
                watershed planning, and environmental 
                engineering, including commercial entities, 
                nonprofit entities, State or local governments 
                or agencies, and other Federal agencies, are 
                eligible to become approved providers of the 
                technical assistance;
                    ``(B) provide national criteria for the 
                certification of third-party providers; and
                    ``(C) approve any unique certification 
                standards established at the State level.
    ``(f) Administration.--
            ``(1) Funding.--Effective for fiscal year 2008 and 
        each subsequent fiscal year, funds of the Commodity 
        Credit Corporation made available to carry out 
        technical assistance for each of the programs specified 
        in section 1241 shall be available for the provision of 
        technical assistance from third-party providers under 
        this section.
            ``(2) Term of agreement.--An agreement with a 
        third-party provider under this section shall have a 
        term that--
                    ``(A) at a minimum, is equal to the period 
                beginning on the date on which the agreement is 
                entered into and ending on the date that is 1 
                year after the date on which all activities 
                performed pursuant to the agreement have been 
                completed;
                    ``(B) does not exceed 3 years; and
                    ``(C) can be renewed, as determined by the 
                Secretary.
            ``(3) Review of certification requirements.--Not 
        later than 1 year after the date of enactment of the 
        Food, Conservation, and Energy Act of 2008, the 
        Secretary shall--
                    ``(A) review certification requirements for 
                third-party providers; and
                    ``(B) make any adjustments considered 
                necessary by the Secretary to improve 
                participation.
            ``(4) Eligible activities.--
                    ``(A) Inclusion of activities.--The 
                Secretary may include as activities eligible 
                for payments to a third party provider--
                            ``(i) technical services provided 
                        directly to eligible participants, such 
                        as conservation planning, education and 
                        outreach, and assistance with design 
                        and implementation of conservation 
                        practices; and
                            ``(ii) related technical assistance 
                        services that accelerate conservation 
                        program delivery.
                    ``(B) Exclusions.--The Secretary shall not 
                designate as an activity eligible for payments 
                to a third party provider any service that is 
                provided by a business, or equivalent, in 
                connection with conducting business and that is 
                customarily provided at no cost.
            ``(5) Payment amounts.--The Secretary shall 
        establish fair and reasonable amounts of payments for 
        technical services provided by third-party providers.
    ``(g) Availability of Technical Services.--
            ``(1) In general.--In carrying out the programs 
        under this title and the agricultural management 
        assistance program under section 524 of the Federal 
        Crop Insurance Act (7 U.S.C. 1524), the Secretary shall 
        make technical services available to all eligible 
        participants who are installing an eligible practice.
            ``(2) Technical service contracts.--In any case in 
        which financial assistance is not provided under a 
        program referred to in paragraph (1), the Secretary may 
        enter into a technical service contract with the 
        eligible participant for the purposes of assisting in 
        the planning, design, or installation of an eligible 
        practice.
    ``(h) Review of Conservation Practice Standards.--
            ``(1) Review required.--The Secretary shall--
                    ``(A) review conservation practice 
                standards, including engineering design 
                specifications, in effect on the date of the 
                enactment of the Food, Conservation, and Energy 
                Act of 2008;
                    ``(B) ensure, to the maximum extent 
                practicable, the completeness and relevance of 
                the standards to local agricultural, forestry, 
                and natural resource needs, including specialty 
                crops, native and managed pollinators, 
                bioenergy crop production, forestry, and such 
                other needs as are determined by the Secretary; 
                and
                    ``(C) ensure that the standards provide for 
                the optimal balance between meeting site-
                specific conservation needs and minimizing 
                risks of design failure and associated costs of 
                construction and installation.
            ``(2) Consultation.--In conducting the review under 
        paragraph (1), the Secretary shall consult with 
        eligible participants, crop consultants, cooperative 
        extension and land grant universities, nongovernmental 
        organizations, and other qualified entities.
            ``(3) Expedited revision of standards.--If the 
        Secretary determines under paragraph (1) that revisions 
        to the conservation practice standards, including 
        engineering design specifications, are necessary, the 
        Secretary shall establish an administrative process for 
        expediting the revisions.
    ``(i) Addressing Concerns of Speciality Crop, Organic, and 
Precision Agriculture Producers.--
            ``(1) In general.--The Secretary shall--
                    ``(A) to the maximum extent practicable, 
                fully incorporate specialty crop production, 
                organic crop production, and precision 
                agriculture into the conservation practice 
                standards; and
                    ``(B) provide for the appropriate range of 
                conservation practices and resource mitigation 
                measures available to producers involved with 
                organic or specialty crop production or 
                precision agriculture.
            ``(2) Availability of adequate technical 
        assistance.--
                    ``(A) In general.--The Secretary shall 
                ensure that adequate technical assistance is 
                available for the implementation of 
                conservation practices by producers involved 
                with organic, specialty crop production, or 
                precision agriculture through Federal 
                conservation programs.
                    ``(B) Requirements.--In carrying out 
                subparagraph (A), the Secretary shall develop--
                            ``(i) programs that meet specific 
                        needs of producers involved with 
                        organic, specialty crop production or 
                        precision agriculture through 
                        cooperative agreements with other 
                        agencies and nongovernmental 
                        organizations; and
                            ``(ii) program specifications that 
                        allow for innovative approaches to 
                        engage local resources in providing 
                        technical assistance for planning and 
                        implementation of conservation 
                        practices.''.

SEC. 2707. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    (a) Transfer of Existing Provisions.--Subsections (a), (c), 
and (d) of section 1243 of the Food Security Act of 1985 (16 
U.S.C. 3843) are--
            (1) redesignated as subsections (c), (d), and (e), 
        respectively; and
            (2) transferred to appear at the end of section 
        1244 of such Act (16 U.S.C. 3844).
    (b) Establishment of Partnership Initiative.--Section 1243 
of the Food Security Act of 1985 (16 U.S.C. 3843), as amended 
by subsection (a), is amended to read as follows:

``SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    ``(a) Establishment of Initiative.--The Secretary shall 
establish a cooperative conservation partnership initiative (in 
this section referred to as the `Initiative') to work with 
eligible partners to provide assistance to producers enrolled 
in a program described in subsection (c)(1) that will enhance 
conservation outcomes on agricultural and nonindustrial private 
forest land.
    ``(b) Purposes.--The purposes of a partnership entered into 
under the Initiative shall be--
            ``(1) to address conservation priorities involving 
        agriculture and nonindustrial private forest land on a 
        local, State, multi-State, or regional level;
            ``(2) to encourage producers to cooperate in 
        meeting applicable Federal, State, and local regulatory 
        requirements related to production involving 
        agriculture and nonindustrial private forest land;
            ``(3) to encourage producers to cooperate in the 
        installation and maintenance of conservation practices 
        that affect multiple agricultural or nonindustrial 
        private forest operations; or
            ``(4) to promote the development and demonstration 
        of innovative conservation practices and delivery 
        methods, including those for specialty crop and organic 
        production and precision agriculture producers.
    ``(c) Initiative Programs.--
            ``(1) Covered programs.--Except as provided in 
        paragraph (2), the Initiative applies to all 
        conservation programs under subtitle D.
            ``(2) Excluded programs.--The Initiative shall not 
        include the following programs:
                    ``(A) Conservation reserve program.
                    ``(B) Wetlands reserve program.
                    ``(C) Farmland protection program.
                    ``(D) Grassland reserve program.
    ``(d) Eligible Partners.--The Secretary may enter into a 
partnership under the Initiative with one or more of the 
following:
            ``(1) States and local governments.
            ``(2) Indian tribes.
            ``(3) Producer associations.
            ``(4) Farmer cooperatives.
            ``(5) Institutions of higher education.
            ``(6) Nongovernmental organizations with a history 
        of working cooperatively with producers to effectively 
        address conservation priorities related to agricultural 
        production and nonindustrial private forest land.
    ``(e) Implementation Agreements.--The Secretary shall carry 
out the Initiative--
            ``(1) by selecting, through a competitive process, 
        eligible partners from among applications submitted 
        under subsection (f); and
            ``(2) by entering into multi-year agreements with 
        eligible partners so selected for a period not to 
        exceed 5 years.
    ``(f) Applications.--
            ``(1) Required information.--An application to 
        enter into a partnership agreement under the Initiative 
        shall include the following:
                    ``(A) A description of the area covered by 
                the agreement, conservation priorities in the 
                area, conservation objectives to be achieved, 
                and the expected level of participation by 
                agricultural producers and nonindustrial 
                private forest landowners.
                    ``(B) A description of the partner, or 
                partners, collaborating to achieve the 
                objectives of the agreement, and the roles, 
                responsibilities, and capabilities of the 
                partner.
                    ``(C) A description of the resources that 
                are requested from the Secretary, and the non-
                Federal resources that will be leveraged by the 
                Federal contribution.
                    ``(D) A description of the plan for 
                monitoring, evaluating, and reporting on 
                progress made towards achieving the objectives 
                of the agreement.
                    ``(E) Such other information that may be 
                required by the Secretary.
            ``(2) Priorities.--The Secretary shall give 
        priority to applications for agreements that--
                    ``(A) have a high percentage of producers 
                involved and working agricultural or 
                nonindustrial private forest land included in 
                the area covered by the agreement;
                    ``(B) significantly leverage non-Federal 
                financial and technical resources and 
                coordinate with other local, State, or Federal 
                efforts;
                    ``(C) deliver high percentages of applied 
                conservation to address water quality, water 
                conservation, or State, regional, or national 
                conservation initiatives;
                    ``(D) provide innovation in conservation 
                methods and delivery, including outcome-based 
                performance measures and methods; or
                    ``(E) meet other factors, as determined by 
                the Secretary.
    ``(g) Relationship to Covered Programs.--
            ``(1) Compliance with program rules.--Except as 
        provided in paragraph (2), the Secretary shall ensure 
        that resources made available under the Initiative are 
        delivered in accordance with the applicable rules of 
        programs specified in subsection (c)(1) through normal 
        program mechanisms relating to program functions, 
        including rules governing appeals, payment limitations, 
        and conservation compliance.
            ``(2) Adjustment.--The Secretary may adjust the 
        elements of any program specified in subsection 
        (c)(1)--
                    ``(A) to better reflect unique local 
                circumstances and purposes if the Secretary 
                determines such adjustments are necessary to 
                achieve the purposes of the Initiative; and
                    ``(B) to provide preferential enrollment to 
                producers who are eligible for the applicable 
                program and to participate in the Initiative.
    ``(h) Technical and Financial Assistance.--The Secretary 
shall provide appropriate technical and financial assistance to 
producers participating in the Initiative in an amount 
determined to be necessary to achieve the purposes of the 
Initiative.
    ``(i) Funding.--
            ``(1) Reservation.--Of the funds and acres made 
        available for each of fiscal years 2009 through 2012 to 
        implement the programs described in subsection (c)(1), 
        the Secretary shall reserve 6 percent of the funds and 
        acres to ensure an adequate source of funds and acres 
        for the Initiative.
            ``(2) Allocation requirements.--Of the funds and 
        acres reserved for the Initiative for a fiscal year, 
        the Secretary shall allocate--
                    ``(A) 90 percent of the funds and acres to 
                projects based on the direction of State 
                conservationists, with the advice of State 
                technical committees; and
                    ``(B) 10 percent of the funds and acres to 
                projects based on a national competitive 
                process established by the Secretary.
            ``(3) Unused funding.--Any funds and acres reserved 
        for a fiscal year under paragraph (1) that are not 
        obligated by April 1 of that fiscal year may be used to 
        carry out other activities under the program that is 
        the source of the funds or acres during the remainder 
        of that fiscal year.
            ``(4) Administrative costs of partners.--Overhead 
        or administrative costs of partners may not be covered 
        by funds provided through the Initiative.''.

SEC. 2708. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    Section 1244 of the Food Security Act of 1985 (16 U.S.C. 
3844), as amended by section 2707, is further amended--
            (1) by striking subsection (a) and inserting the 
        following new subsection:
    ``(a) Incentives for Certain Farmers and Ranchers and 
Indian Tribes.--
            ``(1) Incentives authorized.--In carrying out any 
        conservation program administered by the Secretary, the 
        Secretary may provide to a person or entity specified 
        in paragraph (2) incentives to participate in the 
        conservation program--
                    ``(A) to foster new farming and ranching 
                opportunities; and
                    ``(B) to enhance long-term environmental 
                goals.
            ``(2) Covered persons.--Incentives authorized by 
        paragraph (1) may be provided to the following:
                    ``(A) Beginning farmers or ranchers.
                    ``(B) Socially disadvantaged farmers or 
                ranchers.
                    ``(C) Limited resource farmers or ranchers.
                    ``(D) Indian tribes.''; and
            (2) by adding at the end the following new 
        subsections:
    ``(f) Acreage Limitations.--
            ``(1) Limitations.--
                    ``(A) Enrollments.--The Secretary shall not 
                enroll more than 25 percent of the cropland in 
                any county in the programs administered under 
                subchapters B and C of chapter 1 of subtitle D.
                    ``(B) Easements.--Not more than 10 percent 
                of the cropland in a country may be subject to 
                an easement acquired under subchapter C of 
                chapter 1 of subtitle D.
            ``(2) Exceptions.--The Secretary may exceed the 
        limitation in paragraph (1)(A), if the Secretary 
        determines that--
                    ``(A) the action would not adversely affect 
                the local economy of a county; and
                    ``(B) operators in the county are having 
                difficulties complying with conservation plans 
                implemented under section 1212.
            ``(3) Waiver to exclude certain acreage.--The 
        Secretary may grant a waiver to exclude acreage 
        enrolled under subsection (c)(2)(B) or (f)(4) of 
        section 1234 from the limitations in paragraph (1)(A) 
        with the concurrence of the county government of the 
        county involved.
            ``(4) Shelterbelts and windbreaks.--The limitations 
        established under paragraph (1) shall not apply to 
        cropland that is subject to an easement under 
        subchapter C of chapter 1 that is used for the 
        establishment of shelterbelts and windbreaks.
    ``(g) Compliance and Performance.--For each conservation 
program under subtitle D, the Secretary shall develop 
procedures--
            ``(1) to monitor compliance with program 
        requirements;
            ``(2) to measure program performance;
            ``(3) to demonstrate whether the long-term 
        conservation benefits of the program are being 
        achieved;
            ``(4) to track participation by crop and livestock 
        types; and
            ``(5) to coordinate activities described in this 
        subsection with the national conservation program 
        authorized under section 5 of the Soil and Water 
        Resources Conservation Act of 1977 (16 U.S.C. 2004).
    ``(h) Encouragement of Pollinator Habitat Development and 
Protection.--In carrying out any conservation program 
administered by the Secretary, the Secretary may, as 
appropriate, encourage--
            ``(1) the development of habitat for native and 
        managed pollinators; and
            ``(2) the use of conservation practices that 
        benefit native and managed pollinators.
    ``(i) Streamlined Application Process.--
            ``(1) In general.--In carrying out each 
        conservation program under this title, the Secretary 
        shall ensure that the application process used by 
        producers and landowners is streamlined to minimize 
        complexity and eliminate redundancy.
            ``(2) Review and streamlining.--
                    ``(A) Review.--The Secretary shall carry 
                out a review of the application forms and 
                processes for each conservation program covered 
                by this subsection.
                    ``(B) Streamlining.--On completion of the 
                review the Secretary shall revise application 
                forms and processes, as necessary, to ensure 
                that--
                            ``(i) all required application 
                        information is essential for the 
                        efficient, effective, and accountable 
                        implementation of conservation 
                        programs;
                            ``(ii) conservation program 
                        applicants are not required to provide 
                        information that is readily available 
                        to the Secretary through existing 
                        information systems of the Department 
                        of Agriculture;
                            ``(iii) information provided by the 
                        applicant is managed and delivered 
                        efficiently for use in all stages of 
                        the application process, or for 
                        multiple applications; and
                            ``(iv) information technology is 
                        used effectively to minimize data and 
                        information input requirements.
            ``(3) Implementation and notification.--Not later 
        than 1 year after the date of enactment of the Food, 
        Conservation, and Energy Act of 2008, the Secretary 
        shall submit to Congress a written notification of 
        completion of the requirements of this subsection.''.

SEC. 2709. ENVIRONMENTAL SERVICES MARKETS.

    Subtitle E of title XII of the Food Security Act of 1985 is 
amended by inserting after section 1244 (16 U.S.C. 3844) the 
following new section:

``SEC. 1245. ENVIRONMENTAL SERVICES MARKETS.

    ``(a) Technical Guidelines Required.--The Secretary shall 
establish technical guidelines that outline science-based 
methods to measure the environmental services benefits from 
conservation and land management activities in order to 
facilitate the participation of farmers, ranchers, and forest 
landowners in emerging environmental services markets. The 
Secretary shall give priority to the establishment of 
guidelines related to farmer, rancher, and forest landowner 
participation in carbon markets.
    ``(b) Establishment.--The Secretary shall establish 
guidelines under subsection (a) for use in developing the 
following:
            ``(1) A procedure to measure environmental services 
        benefits.
            ``(2) A protocol to report environmental services 
        benefits.
            ``(3) A registry to collect, record and maintain 
        the benefits measured.
    ``(c) Verification Requirements.--
            ``(1) Verification of reports.--The Secretary shall 
        establish guidelines for a process to verify that a 
        farmer, rancher, or forest landowner who reports an 
        environmental services benefit pursuant to the protocol 
        required by paragraph (2) of subsection (b) for 
        inclusion in the registry required by paragraph (3) of 
        such subsection has implemented the conservation or 
        land management activity covered by the report.
            ``(2) Role of third parties.--In establishing the 
        verification guidelines required by paragraph (1), the 
        Secretary shall consider the role of third-parties in 
        conducting independent verification of benefits 
        produced for environmental services markets and other 
        functions, as determined by the Secretary.
    ``(d) Use of Existing Information.--In carrying out 
subsection (b), the Secretary shall build on activities or 
information in existence on the date of the enactment of the 
Food, Conservation, and Energy Act of 2008 regarding 
environmental services markets.
    ``(e) Consultation.--In carrying out this section, the 
Secretary shall consult with the following:
            ``(1) Federal and State government agencies.
            ``(2) Nongovernmental interests including--
                    ``(A) farm, ranch, and forestry producers;
                    ``(B) financial institutions involved in 
                environmental services trading;
                    ``(C) institutions of higher education with 
                relevant expertise or experience;
                    ``(D) nongovernmental organizations with 
                relevant expertise or experience; and
                    ``(E) private sector representatives with 
                relevant expertise or experience.
            ``(3) Other interested persons, as determined by 
        the Secretary.''.

SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

    Subtitle F of title XII of the Food Security Act of 1985 is 
amended by inserting after section 1251 (16 U.S.C. 2005a) the 
following new section:

``SEC. 1252. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

    ``(a) Establishment and Purpose.--The Secretary shall 
establish a conservation experienced services program (in this 
section referred to as the `ACES Program') for the purpose of 
utilizing the talents of individuals who are age 55 or older, 
but who are not employees of the Department of Agriculture or a 
State agriculture department, to provide technical services in 
support of the conservation-related programs and authorities 
carried out by the Secretary. Such technical services may 
include conservation planning assistance, technical 
consultation, and assistance with design and implementation of 
conservation practices.
    ``(b) Program Agreements.--
            ``(1) Relation to older american community service 
        employment program.--Notwithstanding any other 
        provision of law relating to Federal grants, 
        cooperative agreements, or contracts, to carry out the 
        ACES program during a fiscal year, the Secretary may 
        enter into agreements with nonprofit private agencies 
        and organizations eligible to receive grants for that 
        fiscal year under the Community Service Senior 
        Opportunities Act (42 U.S.C. 3056 et seq.) to secure 
        participants for the ACES program who will provide 
        technical services under the ACES program.
            ``(2) Required determination.--Before entering into 
        an agreement under paragraph (1), the Secretary shall 
        ensure that the agreement would not--
                    ``(A) result in the displacement of 
                individuals employed by the Department, 
                including partial displacement through 
                reduction of non-overtime hours, wages, or 
                employment benefits;
                    ``(B) result in the use of an individual 
                under the ACES program for a job or function in 
                a case in which a Federal employee is in a 
                layoff status from the same or a substantially-
                equivalent job or function with the Department; 
                or
                    ``(C) affect existing contracts for 
                services.
    ``(c) Funding Source.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Secretary may carry out the ACES program using 
        funds made available to carry out each program under 
        this title.
            ``(2) Exclusions.--Funds made available to carry 
        out the following programs may not be used to carry out 
        the ACES program:
                    ``(A) The conservation reserve program.
                    ``(B) The wetlands reserve program.
                    ``(C) The grassland reserve program.
                    ``(D) The conservation stewardship program.
    ``(d) Liability.--An individual providing technical 
services under the ACES program is deemed to be an employee of 
the United States Government for purposes of chapter 171 of 
title 28, United States Code, if the individual--
            ``(1) is providing technical services pursuant to 
        an agreement entered into under subsection (b); and
            ``(2) is acting within the scope of the 
        agreement.''.

SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND THEIR 
                    RESPONSIBILITIES.

    Subtitle G of title XII of the Farm Security Act of 1985 
(16 U.S.C. 3861, 3862) is amended to read as follows:

                ``Subtitle G--State Technical Committees

``SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES.

    ``(a) Establishment.--The Secretary shall establish a 
technical committee in each State to assist the Secretary in 
the considerations relating to implementation and technical 
aspects of the conservation programs under this title.
    ``(b) Standards.--Not later than 180 days after the date of 
enactment of the Food, Conservation, and Energy Act of 2008, 
the Secretary shall develop--
            ``(1) standard operating procedures to standardize 
        the operations of State technical committees; and
            ``(2) standards to be used by State technical 
        committees in the development of technical guidelines 
        under section 1262(b) for the implementation of the 
        conservation provisions of this title.
    ``(c) Composition.--Each State technical committee shall be 
composed of agricultural producers and other professionals that 
represent a variety of disciplines in the soil, water, wetland, 
and wildlife sciences. The technical committee for a State 
shall include representatives from among the following:
            ``(1) The Natural Resources Conservation Service.
            ``(2) The Farm Service Agency.
            ``(3) The Forest Service.
            ``(4) The National Institute of Food and 
        Agriculture.
            ``(5) The State fish and wildlife agency.
            ``(6) The State forester or equivalent State 
        official.
            ``(7) The State water resources agency.
            ``(8) The State department of agriculture.
            ``(9) The State association of soil and water 
        conservation districts.
            ``(10) Agricultural producers representing the 
        variety of crops and livestock or poultry raised within 
        the State.
            ``(11) Owners of nonindustrial private forest land.
            ``(12) Nonprofit organizations within the meaning 
        of section 501(c)(3) of the Internal Revenue Code of 
        1986 with demonstrable conservation expertise and 
        experience working with agriculture producers in the 
        State.
            ``(13) Agribusiness.

``SEC. 1262. RESPONSIBILITIES.

    ``(a) In General.--Each State technical committee 
established under section 1261 shall meet regularly to provide 
information, analysis, and recommendations to appropriate 
officials of the Department of Agriculture who are charged with 
implementing the conservation provisions of this title.
    ``(b) Public Notice and Attendance.--Each State technical 
committee shall provide public notice of, and permit public 
attendance at, meetings considering issues of concern related 
to carrying out this title.
    ``(c) Role.--
            ``(1) In general.--The role of State technical 
        committees is advisory in nature, and such committees 
        shall have no implementation or enforcement authority. 
        However, the Secretary shall give strong consideration 
        to the recommendations of such committees in 
        administering the programs under this title.
            ``(2) Advisory role in establishing program 
        priorities and criteria.--Each State technical 
        committee shall advise the Secretary in establishing 
        priorities and criteria for the programs in this title, 
        including the review of whether local working groups 
        are addressing those priorities.
    ``(d) FACA Requirements.--
            ``(1) Exemption.--Each State technical committee 
        shall be exempt from the Federal Advisory Committee Act 
        (5 U.S.C. App.).
            ``(2) Local working groups.--For purposes of the 
        Federal Advisory Committee Act (5 U.S.C. App.), any 
        local working group established under this subtitle 
        shall be considered to be a subcommittee of the 
        applicable State technical committee.''.

           Subtitle I--Conservation Programs Under Other Laws

SEC. 2801. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

    (a) Eligible States.--Section 524(b)(1) of the Federal Crop 
Insurance Act (7 U.S.C. 1524(b)(1)) is amended by inserting 
``Hawaii,'' after ``Delaware,''.
    (b) Funding.--Section 524(b)(4)(B) of the Federal Crop 
Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended--
            (1) in clause (i), by striking ``Except as provided 
        in clauses (ii) and (iii)'' and inserting ``Except as 
        provided in clause (ii)''; and
            (2) by striking clauses (ii) and (iii) and 
        inserting the following new clause:
                            ``(ii) Exception for fiscal years 
                        2008 through 2012.--For each of fiscal 
                        years 2008 through 2012, the Commodity 
                        Credit Corporation shall make available 
                        to carry out this subsection 
                        $15,000,000.''.
    (c) Certain Uses.--Section 524(b)(4) of the Federal Crop 
Insurance Act (7 U.S.C. 1524(b)(4)) is amended by adding at the 
end the following new subparagraph:
                    ``(C) Certain uses.--Of the amounts made 
                available to carry out this subsection for a 
                fiscal year, the Commodity Credit Corporation 
                shall use not less than--
                            ``(i) 50 percent to carry out 
                        subparagraphs (A), (B), and (C) of 
                        paragraph (2) through the Natural 
                        Resources Conservation Service;
                            ``(ii) 10 percent to provide 
                        organic certification cost share 
                        assistance through the Agricultural 
                        Marketing Service; and
                            ``(iii) 40 percent to conduct 
                        activities to carry out subparagraph 
                        (F) of paragraph (2) through the Risk 
                        Management Agency.''.

SEC. 2802. TECHNICAL ASSISTANCE UNDER SOIL CONSERVATION AND DOMESTIC 
                    ALLOTMENT ACT.

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

``SECTION 1. PURPOSE.

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

``SEC. 10. DEFINITIONS.

    ``In this Act:
            ``(1) Agricultural commodity.--The term 
        `agricultural commodity' means--
                    ``(A) an agricultural commodity; and
                    ``(B) any regional or market 
                classification, type, or grade of an 
                agricultural commodity.
            ``(2) Technical assistance.--
                    ``(A) In general.--The term `technical 
                assistance' means technical expertise, 
                information, and tools necessary for the 
                conservation of natural resources on land 
                active in agricultural, forestry, or related 
                uses.
                    ``(B) Inclusions.--The term `technical 
                assistance' includes--
                            ``(i) technical services provided 
                        directly to farmers, ranchers, and 
                        other eligible entities, such as 
                        conservation planning, technical 
                        consultation, and assistance with 
                        design and implementation of 
                        conservation practices; and
                            ``(ii) technical infrastructure, 
                        including activities, processes, tools, 
                        and agency functions needed to support 
                        delivery of technical services, such as 
                        technical standards, resource 
                        inventories, training, data, 
                        technology, monitoring, and effects 
                        analyses.''.

SEC. 2803. SMALL WATERSHED REHABILITATION PROGRAM.

    (a) Availability of Funds.--Section 14(h)(1) of the 
Watershed Protection and Flood Prevention Act (16 U.S.C. 
1012(h)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(G) $100,000,000 for fiscal year 2009, to 
                be available until expended.''.
    (b) Authorization of Appropriations.--Section 14(h)(2)(E) 
of the Watershed Protection and Flood Prevention Act (16 U.S.C. 
1012(h)(2)(E)) is amended by striking ``fiscal year 2007'' and 
inserting ``each of fiscal years 2008 through 2012''.

SEC. 2804. AMENDMENTS TO SOIL AND WATER RESOURCES CONSERVATION ACT OF 
                    1977.

    (a) Congressional Findings.--Section 2 of the Soil and 
Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is 
amended--
            (1) in paragraph (2), by striking ``base, of the'' 
        and inserting ``base of the''; and
            (2) in paragraph (3), by striking ``(3)'' and all 
        that follows through ``Since individual'' and inserting 
        the following:
            ``(3) Appraisal and inventory of resources, 
        assessment and inventory of conservation needs, 
        evaluation of the effects of conservation practices, 
        and analyses of alternative approaches to existing 
        conservation programs are basic to effective soil, 
        water, and related natural resource conservation.
            ``(4) Since individual''.
    (b) Continuing Appraisal of Soil, Water, and Related 
Resources.--Section 5 of the Soil and Water Resources 
Conservation Act of 1977 (16 U.S.C. 2004) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (5), by striking ``and'' 
                at the end;
                    (B) in paragraph (6), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(7) data on conservation plans, conservation 
        practices planned or implemented, environmental 
        outcomes, economic costs, and related matters under 
        conservation programs administered by the Secretary.'';
            (2) by redesignating subsection (d) as subsection 
        (e);
            (3) by inserting after subsection (c) the following 
        new subsection:
    ``(d) Evaluation of Appraisal.--In conducting the appraisal 
described in subsection (a), the Secretary shall concurrently 
solicit and evaluate recommendations for improving the 
appraisal, including the content, scope, process, participation 
in, and other elements of the appraisal, as determined by the 
Secretary.''; and
            (4) in subsection (e), as redesignated by paragraph 
        (2), by striking the first sentence and inserting the 
        following: ``The Secretary shall conduct comprehensive 
        appraisals under this section, to be completed by 
        December 31, 2010, and December 31, 2015.''.
    (c) Soil and Water Conservation Program.--Section 6 of the 
Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 
2005) is amended--
            (1) by redesignating subsection (b) as subsection 
        (d);
            (2) by inserting after subsection (a) the following 
        new subsections:
    ``(b) Evaluation of Existing Conservation Programs.--In 
evaluating existing conservation programs, the Secretary shall 
emphasize demonstration, innovation, and monitoring of specific 
program components in order to encourage further development 
and adoption of practices and performance-based standards.
    ``(c) Improvement to Program.--In developing a national 
soil and water conservation program under subsection (a), the 
Secretary shall solicit and evaluate recommendations for 
improving the program, including the content, scope, process, 
participation in, and other elements of the program, as 
determined by the Secretary.''; and
            (3) in subsection (d), as redesignated by paragraph 
        (1), by striking ``December 31, 1979'' and all that 
        follows through ``December 31, 2007'' and inserting 
        ``December 31, 2011, and December 31, 2016''.
    (d) Reports to Congress.--Section 7 of the Soil and Water 
Resources Conservation Act of 1977 (16 U.S.C. 2006) is amended 
to read as follows:

``SEC. 7. REPORTS TO CONGRESS.

    ``(a) Appraisal.--Not later than the date on which Congress 
convenes in 2011 and 2016, the President shall transmit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate the appraisal developed under section 5 and completed 
before the end of the previous year.
    ``(b) Program and Statement of Policy.--Not later than the 
date on which Congress convenes in 2012 and 2017, the President 
shall transmit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate--
            ``(1) the initial program or updated program 
        developed under section 6 and completed before the end 
        of the previous year;
            ``(2) a detailed statement of policy regarding soil 
        and water conservation activities of the Department of 
        Agriculture; and
            ``(3) a special evaluation of the status, 
        conditions, and trends of soil quality on cropland in 
        the United States that addresses the challenges and 
        opportunities for reducing soil erosion to tolerance 
        levels.
    ``(c) Improvements to Appraisal and Program.--Not later 
than the date on which Congress convenes in 2012, the Secretary 
shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report describing the plans of the 
Department of Agriculture for improving the resource appraisal 
and national conservation program required under this Act, 
based on the recommendations received under sections 5(d) and 
6(c).''.
    (e) Termination of Program.--Section 10 of the Soil and 
Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is 
amended by striking ``2008'' and inserting ``2018''.

SEC. 2805. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

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

SEC. 2806. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL ACTIVITIES 
                    UPSTREAM OF IMPERIAL DAM.

    (a) In General.--Section 202(a) of the Colorado River Basin 
Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding 
at the end the following new paragraph:
            ``(7) Basin states program.--
                    ``(A) In general.--A Basin States Program 
                that the Secretary, acting through the Bureau 
                of Reclamation, shall implement to carry out 
                salinity control activities in the Colorado 
                River Basin using funds made available under 
                section 205(f).
                    ``(B) Assistance.--The Secretary, in 
                consultation with the Colorado River Basin 
                Salinity Control Advisory Council, shall carry 
                out this paragraph using funds described in 
                subparagraph (A) directly or by providing 
                grants, grant commitments, or advance funds to 
                Federal or non-Federal entities under such 
                terms and conditions as the Secretary may 
                require.
                    ``(C) Activities.--Funds described in 
                subparagraph (A) shall be used to carry out, as 
                determined by the Secretary--
                            ``(i) cost-effective measures and 
                        associated works to reduce salinity 
                        from saline springs, leaking wells, 
                        irrigation sources, industrial sources, 
                        erosion of public and private land, or 
                        other sources;
                            ``(ii) operation and maintenance of 
                        salinity control features constructed 
                        under the Colorado River Basin salinity 
                        control program; and
                            ``(iii) studies, planning, and 
                        administration of salinity control 
                        activities.
                    ``(D) Report.--
                            ``(i) In general.--Not later than 
                        30 days before implementing the program 
                        established under this paragraph, the 
                        Secretary shall submit to the 
                        appropriate committees of Congress a 
                        planning report that describes the 
                        proposed implementation of the program.
                            ``(ii) Implementation.--The 
                        Secretary may not expend funds to 
                        implement the program established under 
                        this paragraph before the expiration of 
                        the 30-day period beginning on the date 
                        on which the Secretary submits the 
                        report, or any revision to the report, 
                        under clause (i).''.
    (b) Conforming Amendments.--
            (1) Section 202 of the Colorado River Basin 
        Salinity Control Act (43 U.S.C. 1592) is amended--
                    (A) in subsection (a), in the matter 
                preceding paragraph (1), by striking 
                ``program'' and inserting ``programs''; and
                    (B) in subsection (b)(4)--
                            (i) by striking ``program'' and 
                        inserting ``programs''; and
                            (ii) by striking ``and (6)'' and 
                        inserting ``(6), and (7)''.
            (2) Section 205 of the Colorado River Basin 
        Salinity Control Act (43 U.S.C. 1595) is amended by 
        striking subsection (f) and inserting the following new 
        subsection:
    ``(f) Up-Front Cost Share.--
            ``(1) In general.--Effective beginning on the date 
        of enactment of this paragraph, subject to paragraph 
        (3), the cost share obligations required by this 
        section shall be met through an up-front cost share 
        from the Basin Funds, in the same proportions as the 
        cost allocations required under subsection (a), as 
        provided in paragraph (2).
            ``(2) Basin states program.--The Secretary shall 
        expend the required cost share funds described in 
        paragraph (1) through the Basin States Program for 
        salinity control activities established under section 
        202(a)(7).
            ``(3) Existing salinity control activities.--The 
        cost share contribution required by this section shall 
        continue to be met through repayment in a manner 
        consistent with this section for all salinity control 
        activities for which repayment was commenced prior to 
        the date of enactment of this paragraph.''.

SEC. 2807. DESERT TERMINAL LAKES.

    Section 2507 of the Farm Security and Rural Investment Act 
of 2002 (43 U.S.C. 2211 note; Public Law 107-171) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(a)'' and all that 
                follows through ``$200,000,000'' and inserting 
                ``(a) Transfer.--Subject to subsection (b) and 
                paragraph (1) of section 207(a) of Public Law 
                108-7 (117 Stat. 146), notwithstanding 
                paragraph (3) of that section, on the date of 
                enactment of the Food, Conservation, and Energy 
                Act of 2008, the Secretary of Agriculture shall 
                transfer $175,000,000''; and
                    (B) by striking the quotation marks at the 
                beginning of paragraphs (1) and (2); and
            (2) by striking subsection (b) and inserting the 
        following new subsection:
    ``(b) Permitted Uses.--In any case in which there are 
willing sellers, the funds described in subsection (a) may be 
used--
            ``(1) to lease water; or
            ``(2) to purchase land, water appurtenant to the 
        land, and related interests in the Walker River Basin 
        in accordance with section 208(a)(1)(A) of the Energy 
        and Water Development Appropriations Act, 2006 (Public 
        Law 109-103; 119 Stat. 2268).''.

           Subtitle J--Miscellaneous Conservation Provisions

SEC. 2901. HIGH PLAINS WATER STUDY.

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

SEC. 2902. NAMING OF NATIONAL PLANT MATERIALS CENTER AT BELTSVILLE, 
                    MARYLAND, IN HONOR OF NORMAN A. BERG.

    The National Plant Materials Center at Beltsville, 
Maryland, referenced in section 613.5(a) of title 7, Code of 
Federal Regulations, shall be known and designated as the 
``Norman A. Berg National Plant Materials Center''. Any 
reference in a law, map, regulation, document, paper, or other 
record of the United States to such National Plant Materials 
Center shall be deemed to be a reference to the Norman A. Berg 
National Plant Materials Center.

SEC. 2903. TRANSITION.

    (a) Continuation of Programs in Fiscal Year 2008.--Except 
as otherwise provided by an amendment made by this title, the 
Secretary of Agriculture shall continue to carry out any 
program or activity covered by title XII of the Food Security 
Act (16 U.S.C. 3801 et seq.) until September 30, 2008, using 
the provisions of law applicable to the program or activity as 
they existed on the day before the date of the enactment of 
this Act and using funds made available under such title for 
fiscal year 2008 for the program or activity.
    (b) Ground and Surface Water Conservation Program.--During 
the period beginning on the date of the enactment of this Act 
and ending on September 30, 2008, the Secretary of Agriculture 
shall continue to carry out the ground and surface water 
conservation program under section 1240I of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-9), as in effect before the 
amendment made by section 2510, using the terms, conditions, 
and funds available to the Secretary to carry out such program 
on the day before the date of the enactment of this Act.

SEC. 2904. REGULATIONS.

    (a) Issuance.--Except as otherwise provided in this title 
or an amendment made by this title, not later than 90 days 
after the date of enactment of this Act, the Secretary of 
Agriculture, in consultation with the Commodity Credit 
Corporation, shall promulgate such regulations as are necessary 
to implement this title.
    (b) Applicable Authority.--The promulgation of regulations 
under subsection (a) and administration of this title--
            (1) shall be carried out without regard to--
                    (A) chapter 35 of title 44, United States 
                Code (commonly known as the Paperwork Reduction 
                Act); and
                    (B) the Statement of Policy of the 
                Secretary of Agriculture effective July 24, 
                1971 (36 Fed. Reg. 13804) relating to notices 
                of proposed rulemaking and public participation 
                in rulemaking; and
            (2) may--
                    (A) be promulgated with an opportunity for 
                notice and comment; or
                    (B) if determined to be appropriate by the 
                Secretary of Agriculture or the Commodity 
                Credit Corporation, as an interim rule 
                effective on publication with an opportunity 
                for notice and comment.
    (c) Congressional Review of Agency Rulemaking.--In carrying 
out this section, the Secretary shall use the authority 
provided under section 808(2) of title 5, United States Code.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

SEC. 3001. SHORT TITLE.

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

SEC. 3002. UNITED STATES POLICY.

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

SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

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

SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

    (a) Title I of the Food for Peace Act (7 U.S.C. 1701 et 
seq.) is amended in the title heading, by striking ``TRADE AND 
DEVELOPMENT ASSISTANCE'' and inserting ``ECONOMIC ASSISTANCE 
AND FOOD SECURITY''.
    (b) Section 101 of the Food for Peace Act (7 U.S.C. 1701) 
is amended in the section heading, by striking ``trade and 
development assistance'' and inserting ``economic assistance 
and food security''.

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

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

SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

    Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c)) 
is amended--
            (1) in the matter preceding paragraph (1), by 
        inserting ``, through agreements with recipient 
        governments, private voluntary organizations, and 
        cooperatives,'' after ``developing country'';
            (2) by striking paragraph (1);
            (3) in paragraph (2)--
                    (A) in subparagraph (C), by striking 
                ``and'' at the end;
                    (B) in subparagraph (D), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) the improvement of the trade capacity 
                of the recipient country.'';
            (4) in paragraph (3), by striking ``agricultural 
        business development and agricultural trade expansion'' 
        and inserting ``development of agricultural businesses 
        and agricultural trade capacity'';
            (5) in paragraph (4), by striking ``, or 
        otherwise'' and all that follows through ``United 
        States'';
            (6) in paragraph (5), by inserting ``to promote 
        agricultural products produced in appropriate 
        developing countries'' after ``trade fairs''; and
            (7) by redesignating paragraphs (2) through (9) as 
        paragraphs (1) through (8), respectively.

SEC. 3007. GENERAL AUTHORITY.

    Section 201 of the Food for Peace Act (7 U.S.C. 1721) is 
amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) address famine and food crises, and respond 
        to emergency food needs, arising from man-made and 
        natural disasters;'';
            (2) in paragraph (5)--
                    (A) by inserting ``food security and 
                support'' after ``promote''; and
                    (B) by striking ``; and'' and inserting a 
                semicolon;
            (3) in paragraph (6), by striking the period at the 
        end and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(7) promote economic and nutritional security by 
        increasing educational, training, and other productive 
        activities.''.

SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

    Section 202 of the Food for Peace Act (7 U.S.C. 1722) is 
amended--
            (1) in subsection (b)(2), by striking ``may not 
        deny a request for funds'' and inserting ``may not use 
        as a sole rationale for denying a request for funds'';
            (2) in subsection (e)(1)--
                    (A) in the matter preceding subparagraph 
                (A), by striking ``not less than 5 percent nor 
                more than 10 percent'' and inserting ``not less 
                than 7.5 percent nor more than 13 percent'';
                    (B) in subparagraph (A), by striking ``; 
                and'' and inserting a semicolon;
                    (C) in subparagraph (B), by striking the 
                period at the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(C) improving and implementing 
                methodologies for food aid programs, including 
                needs assessments (upon the request of the 
                Administrator), monitoring, and evaluation.''; 
                and
            (3) by striking subsection (h) and inserting the 
        following:
    ``(h) Food Aid Quality.--
            ``(1) In general.--The Administrator shall use 
        funds made available for fiscal year 2009 and 
        subsequent fiscal years to carry out this title--
                    ``(A) to assess the types and quality of 
                agricultural commodities and products donated 
                for food aid;
                    ``(B) to adjust products and formulations 
                (including the potential introduction of new 
                fortificants and products) as necessary to 
                cost-effectively meet nutrient needs of target 
                populations; and
                    ``(C) to test prototypes.
            ``(2) Administration.--The Administrator--
                    ``(A) shall carry out this subsection in 
                consultation with and through independent 
                entities with proven expertise in food aid 
                commodity quality enhancements;
                    ``(B) may enter into contracts to obtain 
                the services of such entities; and
                    ``(C) shall consult with the Food Aid 
                Consultative Group on how to carry out this 
                subsection.
            ``(3) Funding limitation.--Of the funds made 
        available under section 207(f), for fiscal years 2009 
        through 2011, not more than $4,500,000 may be used to 
        carry out this subsection.''.

SEC. 3009. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY 
                    ORGANIZATIONS AND COOPERATIVES.

    Section 203(b) of the Food for Peace Act (7 U.S.C. 1723(b)) 
is amended by striking ``1 or more recipient countries'' and 
inserting ``in 1 or more recipient countries''.

SEC. 3010. LEVELS OF ASSISTANCE.

    Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) 
is amended--
            (1) in paragraph (1), by striking ``2002 through 
        2007'' and inserting ``2008 through 2012''; and
            (2) in paragraph (2), by striking ``2002 through 
        2007'' and inserting ``2008 through 2012''.

SEC. 3011. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Food for Peace Act (7 U.S.C. 1725) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (5), by striking ``and'' 
                at the end;
                    (B) in paragraph (6), by striking the 
                period and inserting ``; and''; and
                    (C) by inserting at the end the following:
            ``(7) representatives from the maritime 
        transportation sector involved in transporting 
        agricultural commodities overseas for programs under 
        this Act.''; and
            (2) in subsection (f), by striking ``2007'' and 
        inserting ``2012''.

SEC. 3012. ADMINISTRATION.

    Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is 
amended--
            (1) in subsection (a)(3), by striking ``and the 
        conditions that must be met for the approval of such 
        proposal'';
            (2) in subsection (c), by striking paragraph (3);
            (3) by striking subsection (d) and inserting the 
        following:
    ``(d) Timely Provision of Commodities.--The Administrator, 
in consultation with the Secretary, shall develop procedures 
that ensure expedited processing of commodity call forwards in 
order to provide commodities overseas in a timely manner and to 
the extent feasible, according to planned delivery 
schedules.''; and
            (4) by adding at the end the following:
    ``(f) Program Oversight, Monitoring, and Evaluation.--
            ``(1) Duties of administrator.--The Administrator, 
        in consultation with the Secretary, shall establish 
        systems and carry out activities--
                    ``(A) to determine the need for assistance 
                provided under this title; and
                    ``(B) to improve, monitor, and evaluate the 
                effectiveness and efficiency of the assistance 
                provided under this title to maximize the 
                impact of the assistance.
            ``(2) Requirements of systems and activities.--The 
        systems and activities described in paragraph (1) shall 
        include--
                    ``(A) program monitors in countries that 
                receive assistance under this title;
                    ``(B) country and regional food aid impact 
                evaluations;
                    ``(C) the identification and implementation 
                of best practices for food aid programs;
                    ``(D) the evaluation of monetization 
                programs;
                    ``(E) early warning assessments and systems 
                to help prevent famines; and
                    ``(F) upgraded information technology 
                systems.
            ``(3) Implementation report.--Not later than 180 
        days after the date of enactment of the Food, 
        Conservation, and Energy Act of 2008, the Administrator 
        shall submit to the appropriate committees of Congress 
        a report on efforts undertaken by the Administrator to 
        conduct oversight of nonemergency programs under this 
        title.
            ``(4) Government accountability office report.--Not 
        later than 270 days after the date of submission of the 
        report under paragraph (3), the Comptroller General of 
        the United States shall submit to the appropriate 
        committees of Congress a report that contains--
                    ``(A) a review of, and comments addressing, 
                the report described in paragraph (3); and
                    ``(B) recommendations relating to any 
                additional actions that the Comptroller General 
                of the United States determines to be necessary 
                to improve the monitoring and evaluation of 
                assistance provided under this title.
            ``(5) Contract authority.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) and (C), in carrying out administrative and 
                management activities relating to each activity 
                carried out by the Administrator under 
                paragraph (1), the Administrator may enter into 
                contracts with 1 or more individuals for 
                personal service to be performed in recipient 
                countries or neighboring countries.
                    ``(B) Prohibition.--An individual who 
                enters into a contract with the Administrator 
                under subparagraph (A) shall not be considered 
                to be an employee of the Federal Government for 
                the purpose of any law (including regulations) 
                administered by the Office of Personnel 
                Management.
                    ``(C) Personal service.--Subparagraph (A) 
                does not limit the ability of the Administrator 
                to enter into a contract with any individual 
                for personal service under section 202(a).
            ``(6) Funding.--
                    ``(A) In general.--Subject to section 
                202(h)(3), in addition to other funds made 
                available to the Administrator to carry out the 
                monitoring of emergency food assistance, the 
                Administrator may implement this subsection 
                using up to $22,000,000 of the funds made 
                available under this title for each of fiscal 
                years 2009 through 2012, except for paragraph 
                (2)(F), for which only $2,500,000 shall be made 
                available during fiscal year 2009.
                    ``(B) Limitations.--
                            ``(i) In general.--Subject to 
                        clause (ii), of the funds made 
                        available under subparagraph (A), for 
                        each of fiscal years 2009 through 2012, 
                        not more than $8,000,000 may be used by 
                        the Administrator to carry out 
                        paragraph (2)(E).
                            ``(ii) Condition.--No funds shall 
                        be made available under subparagraph 
                        (A), in accordance with clause (i), 
                        unless not less than $8,000,000 is made 
                        available under chapter 1 of part I of 
                        the Foreign Assistance Act of 1961 (22 
                        U.S.C. 2151 et seq.) for such purposes 
                        for such fiscal year.
    ``(g) Project Reporting.--
            ``(1) In general.--In submitting project reports to 
        the Administrator, a private voluntary organization or 
        cooperative shall provide a copy of the report in such 
        form as is necessary for the report to be displayed for 
        public use on the website of the United States Agency 
        for International Development.
            ``(2) Confidential information.--An organization or 
        cooperative described in paragraph (1) may omit any 
        confidential information from the copy of the report 
        submitted for public display under that paragraph.''.

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

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

SEC. 3014. GENERAL AUTHORITIES AND REQUIREMENTS.

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

SEC. 3015. DEFINITIONS.

    Section 402 of the Food for Peace Act (7 U.S.C. 1732) is 
amended--
            (1) by redesignating paragraphs (3) through (8) as 
        paragraphs (4) through (9), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) Appropriate committee of congress.--The term 
        `appropriate committee of Congress' means--
                    ``(A) the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate;
                    ``(B) the Committee on Agriculture of the 
                House of Representatives; and
                    ``(C) the Committee on Foreign Affairs of 
                the House of Representatives.''.

SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

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

SEC. 3017. ADMINISTRATIVE PROVISIONS.

    Section 407(c) of the Food for Peace Act (7 U.S.C. 
1736a(c)) is amended--
            (1) in paragraph (4)--
                    (A) by striking ``Funds made'' and 
                inserting the following:
                    ``(A) In general.--Funds made'';
                    (B) in subparagraph (A) (as so 
                designated)--
                            (i) by striking ``2007'' and 
                        inserting ``2012''; and
                            (ii) by striking ``$2,000,000'' and 
                        inserting ``$10,000,000''; and
                    (C) by adding at the end the following:
                    ``(B) Additional prepositioning sites.--
                            ``(i) Feasibility assessments.--The 
                        Administrator may carry out assessments 
                        for the establishment of not less than 
                        2 sites to determine the feasibility 
                        of, and costs associated with, using 
                        the sites to store and handle 
                        agricultural commodities for 
                        prepositioning in foreign countries.
                            ``(ii) Establishment of sites.--
                        Based on the results of each assessment 
                        carried out under clause (i), the 
                        Administrator may establish additional 
                        sites for prepositioning in foreign 
                        countries.''; and
            (2) by adding at the end the following:
            ``(5) Nonemergency or multiyear agreements.--Annual 
        resource requests for ongoing nonemergency or ongoing 
        multiyear agreements under title II shall be finalized 
        not later than October 1 of the fiscal year in which 
        the agricultural commodities will be shipped under the 
        agreement.''.

SEC. 3018. CONSOLIDATION AND MODIFICATION OF ANNUAL REPORTS REGARDING 
                    AGRICULTURAL TRADE ISSUES.

    (a) Annual Reports.--Section 407 of the Food for Peace Act 
(7 U.S.C. 1736a) is amended by striking subsection (f) and 
inserting the following:
    ``(f) Annual Reports.--
            ``(1) Annual report regarding agricultural trade 
        programs and activities.--
                    ``(A) Annual report.--Not later than April 
                1 of each fiscal year, the Administrator and 
                the Secretary shall jointly prepare and submit 
                to the appropriate committees of Congress a 
                report regarding each program and activity 
                carried out under this Act during the prior 
                fiscal year.
                    ``(B) Contents.--An annual report described 
                in subparagraph (A) shall include, with respect 
                to the prior fiscal year--
                            ``(i) a list that contains a 
                        description of each country and 
                        organization that receives food and 
                        other assistance under this Act 
                        (including the quantity of food and 
                        assistance provided to each country and 
                        organization);
                            ``(ii) a general description of 
                        each project and activity implemented 
                        under this Act (including each activity 
                        funded through the use of local 
                        currencies);
                            ``(iii) a statement describing the 
                        quantity of agricultural commodities 
                        made available to each country pursuant 
                        to--
                                    ``(I) section 416(b) of the 
                                Agricultural Act of 1949 (7 
                                U.S.C. 1431(b)); and
                                    ``(II) the Food for 
                                Progress Act of 1985 (7 U.S.C. 
                                1736o);
                            ``(iv) an assessment of the 
                        progress made through programs under 
                        this Act towards reducing food 
                        insecurity in the populations receiving 
                        food assistance from the United States;
                            ``(v) a description of efforts 
                        undertaken by the Food Aid Consultative 
                        Group under section 205 to achieve an 
                        integrated and effective food 
                        assistance program;
                            ``(vi) an assessment of--
                                    ``(I) each program 
                                oversight, monitoring, and 
                                evaluation system implemented 
                                under section 207(f); and
                                    ``(II) the impact of each 
                                program oversight, monitoring, 
                                and evaluation system on the 
                                effectiveness and efficiency of 
                                assistance provided under this 
                                title; and
                            ``(vii) an assessment of the 
                        progress made by the Administrator in 
                        addressing issues relating to quality 
                        with respect to the provision of food 
                        assistance.
            ``(2) Annual report regarding the provision of 
        agricultural commodities to foreign countries.--
                    ``(A) Annual report.--Not later than 
                February 1 of each fiscal year, the 
                Administrator shall prepare and submit to the 
                appropriate committees of Congress a report 
                regarding the administration of food assistance 
                programs under title II to benefit foreign 
                countries during the prior fiscal year.
                    ``(B) Contents.--An annual report described 
                in subparagraph (A) shall include, with respect 
                to the prior fiscal year--
                            ``(i) a list that contains a 
                        description of each program, country, 
                        and commodity approved for assistance 
                        under section 207; and
                            ``(ii) a statement that contains a 
                        description of the total amount of 
                        funds approved for transportation and 
                        administrative costs under section 
                        207.''.
    (b) Conforming Amendment.--Section 207(e) of the Food for 
Peace Act (7 U.S.C. 1726a(e)) is amended--
            (1) by striking ``Timely Approval.'' and all that 
        follows through ``The Administrator'' and inserting 
        ``Timely Approval.--The Administrator''; and
            (2) by striking paragraph (2).

SEC. 3019. EXPIRATION OF ASSISTANCE.

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

SEC. 3020. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is 
amended by striking subsection (a) and inserting the following:
    ``(a) Authorization of Appropriations.--There are 
authorized to be appropriated--
            ``(1) for fiscal year 2008 and each fiscal year 
        thereafter, $2,500,000,000 to carry out the emergency 
        and nonemergency food assistance programs under title 
        II; and
            ``(2) such sums as are necessary--
                    ``(A) to carry out the concessional credit 
                sales program established under title I;
                    ``(B) to carry out the grant program 
                established under title III; and
                    ``(C) to make payments to the Commodity 
                Credit Corporation to the extent the Commodity 
                Credit Corporation is not reimbursed under the 
                programs under this Act for the actual costs 
                incurred or to be incurred by the Commodity 
                Credit Corporation in carrying out such 
                programs.''.

SEC. 3021. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

    Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is 
amended by adding at the end the following:
    ``(e) Minimum Level of Nonemergency Food Assistance.--
            ``(1) Funds and commodities.--Of the amounts made 
        available to carry out emergency and nonemergency food 
        assistance programs under title II, not less than 
        $375,000,000 for fiscal year 2009, $400,000,000 for 
        fiscal year 2010, $425,000,000 for fiscal year 2011, 
        and $450,000,000 for fiscal year 2012 shall be expended 
        for nonemergency food assistance programs under title 
        II.
            ``(2) Exception.--The President may use less than 
        the amount specified in paragraph (1) in a fiscal year 
        for nonemergency food assistance programs under title 
        II only if--
                    ``(A) the President has made a 
                determination that there is an urgent need for 
                additional emergency food assistance;
                    ``(B) the funds and commodities held in the 
                Bill Emerson Humanitarian Trust have been 
                exhausted; and
                    ``(C) the President has submitted to 
                Congress a supplemental appropriations request 
                for a sum equal to the amount needed to reach 
                the required spending level for nonemergency 
                food assistance under paragraph (1) and the 
                amount exhausted under paragraph (2)(B).
            ``(3) Notification to congress.--If the President 
        makes the determination described in paragraph (2)(A), 
        the President shall submit to Congress written 
        notification that the determination has been made.''.

SEC. 3022. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

    Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is 
amended--
            (1) by striking ``To the maximum'' and inserting 
        the following:
    ``(a) In General.--To the maximum''; and
            (2) by adding at the end the following:
    ``(b) Report Regarding Efforts to Improve Procurement 
Planning.--
            ``(1) Report required.--Not later than 90 days 
        after the date of enactment of the Food, Conservation, 
        and Energy Act of 2008, the Administrator and the 
        Secretary shall submit to each appropriate committee of 
        Congress a report that contains a description of each 
        effort taken by the Administrator and the Secretary to 
        improve planning for food and transportation 
        procurement (including efforts to eliminate bunching of 
        food purchases).
            ``(2) Contents.--A report required under paragraph 
        (1) should include a description of each effort taken 
        by the Administrator and the Secretary--
                    ``(A) to improve the coordination of food 
                purchases made by--
                            ``(i) the United States Agency for 
                        International Development; and
                            ``(ii) the Department of 
                        Agriculture;
                    ``(B) to increase flexibility with respect 
                to procurement schedules;
                    ``(C) to increase the use of historical 
                analyses and forecasting; and
                    ``(D) to improve and streamline legal 
                claims processes for resolving transportation 
                disputes.''.

SEC. 3023. MICRONUTRIENT FORTIFICATION PROGRAMS.

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

SEC. 3024. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.

    (a) Minimum Funding.--Section 501(d) of the Food for Peace 
Act (7 U.S.C. 1737(d)) is amended in the matter preceding 
paragraph (1)--
            (1) by striking ``not less than'' and inserting 
        ``not less than the greater of $10,000,000 or''; and
            (2) by striking ``2002 through 2007'' and inserting 
        ``2008 through 2012''.
    (b) Authorization of Appropriations.--Section 501(e) of the 
Food for Peace Act (7 U.S.C. 1737(e)) is amended by striking 
paragraph (1) and inserting the following:
            ``(1) In general.--There are authorized to be 
        appropriated for each of fiscal years 2008 through 2012 
        to carry out the programs under this section--
                    ``(A) $10,000,000 for sub-Saharan African 
                and Caribbean Basin countries; and
                    ``(B) $5,000,000 for other developing or 
                middle-income countries or emerging markets not 
                described in subparagraph (A).''.

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

SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Repeal of Supplier Credit Guarantee Program and 
Intermediate Export Credit Guarantee Program.--Section 202 of 
the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Guarantees.--'' and all 
                that follows through ``The Commodity'' in 
                paragraph (1) and inserting ``Guarantees.--The 
                Commodity''; and
                    (B) by striking paragraphs (2) and (3);
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsections (d) through (l) as 
        subsections (b) through (j), respectively; and
            (4) by adding at the end the following:
    ``(k) Administration.--
            ``(1) Definition of long term.--In this subsection, 
        the term `long term' means a period of 10 or more 
        years.
            ``(2) Guarantees.--In administering the export 
        credit guarantees authorized under this section, the 
        Secretary shall--
                    ``(A) maximize the export sales of 
                agricultural commodities;
                    ``(B) maximize the export credit guarantees 
                that are made available and used during the 
                course of a fiscal year;
                    ``(C) develop an approach to risk 
                evaluation that facilitates accurate country 
                risk designations and timely adjustments to the 
                designations (on an ongoing basis) in response 
                to material changes in country risk conditions, 
                with ongoing opportunity for input and 
                evaluation from the private sector;
                    ``(D) adjust risk-based guarantees as 
                necessary to ensure program effectiveness and 
                United States competitiveness; and
                    ``(E) work with industry to ensure, to the 
                maximum extent practicable, that risk-based 
                fees associated with the guarantees cover, but 
                do not exceed, the operating costs and losses 
                over the long term.''.
    (b) Funding Levels.--Section 211 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5641) is amended by striking subsection 
(b) and inserting the following:
    ``(b) Export Credit Guarantee Programs.--The Commodity 
Credit Corporation shall make available for each of fiscal 
years 1996 through 2012 credit guarantees under section 202(a) 
in an amount equal to but not more than the lesser of--
            ``(1) $5,500,000,000 in credit guarantees; or
            ``(2) the sum of--
                    ``(A) the amount of credit guarantees that 
                the Commodity Credit Corporation can make 
                available using budget authority of $40,000,000 
                for each fiscal year for the costs of the 
                credit guarantees; and
                    ``(B) the amount of credit guarantees that 
                the Commodity Credit Corporation can make 
                available using unobligated budget authority 
                for prior fiscal years.''.
    (c) Conforming Amendments.--Section 202 of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (b)(4) (as redesignated by 
        subsection (a)(3)), by striking ``, consistent with the 
        provisions of subsection (c)'';
            (2) in subsection (d) (as redesignated by 
        subsection (a)(3))--
                    (A) by striking ``(1)'' and all that 
                follows through ``The Commodity'' and inserting 
                ``The Commodity''; and
                    (B) by striking paragraph (2); and
            (3) in subsection (g)(2) (as redesignated by 
        subsection (a)(3)), by striking ``subsections (a) and 
        (b)'' and inserting ``subsection (a)''.

SEC. 3102. MARKET ACCESS PROGRAM.

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

SEC. 3103. EXPORT ENHANCEMENT PROGRAM.

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

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

            (2) by redesignating sections 302 and 303 (7 U.S.C. 
        5652 and 5653) as sections 301 and 302, respectively;
            (3) in section 302 (as redesignated by paragraph 
        (2)), by striking ``, such as that established under 
        section 301,'';
            (4) in section 401 (7 U.S.C. 5661)--
                    (A) in subsection (a), by striking 
                ``section 201, 202, or 301'' and inserting 
                ``section 201 or 202''; and
                    (B) in subsection (b), by striking 
                ``sections 201, 202, and 301'' and inserting 
                ``sections 201 and 202''; and
            (5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by 
        striking ``sections 201, 202, 203, and 301'' and 
        inserting ``sections 201, 202, and 203''.

SEC. 3104. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    (a) Report to Congress.--Section 702(c) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5722(c)) is amended by striking 
``Committee on International Relations'' and inserting 
``Committee on Foreign Affairs''.
    (b) Funding.--Section 703(a) of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5723(a)) is amended by striking ``2002 
through 2007'' and inserting ``2008 through 2012''.

SEC. 3105. FOOD FOR PROGRESS ACT OF 1985.

    (a) In General.--The Food for Progress Act of 1985 (7 
U.S.C. 1736o) is amended by striking ``2007'' each place it 
appears and inserting ``2012''.
    (b) Designation of Project in Sub-Saharan Africa.--The Food 
for Progress Act of 1985 (7 U.S.C. 1736o) is amended in 
subsection (f) by adding at the end the following:
            ``(6) Project in malawi.--
                    ``(A) In general.--In carrying out this 
                section during fiscal year 2009, the President 
                shall approve not less than 1 multiyear project 
                for Malawi--
                            ``(i) to promote sustainable 
                        agriculture; and
                            ``(ii) to increase the number of 
                        women in leadership positions.
                    ``(B) Use of eligible commodities.--Of the 
                eligible commodities used to carry out this 
                section during the period in which the project 
                described in subparagraph (A) is carried out, 
                the President shall carry out the project using 
                eligible commodities with a total value of not 
                less than $3,000,000 during the course of the 
                project.''.

SEC. 3106. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
                    NUTRITION PROGRAM.

    Section 3107 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 1736o-1) is amended--
            (1) in subsections (b), (c)(2)(B), (f)(1), (h), 
        (i), and (l)(1), by striking ``President'' each place 
        it appears and inserting ``Secretary'';
            (2) in subsection (d), by striking ``The President 
        shall designate 1 or more Federal agencies'' and 
        inserting ``The Secretary shall'';
            (3) in paragraph (f)(2), by striking ``implementing 
        agency'' and inserting ``Secretary''; and
            (4) in subsection (l)--
                    (A) by striking paragraph (1) and inserting 
                the following:
            ``(1) Use of commodity credit corporation funds.--
        Of the funds of the Commodity Credit Corporation, the 
        Secretary shall use to carry out this section 
        $84,000,000 for fiscal year 2009, to remain available 
        until expended.'';
                    (B) in paragraph (2), by striking ``2004 
                through 2007'' and inserting ``2008 through 
                2012''; and
                    (C) in paragraph (3), by striking ``any 
                Federal agency implementing or assisting'' and 
                inserting ``the Department of Agriculture or 
                any other Federal agency assisting''.

                       Subtitle C--Miscellaneous

SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 
U.S.C. 1736f-1) is amended--
            (1) in subsection (a)--
                    (A) by striking ``establish a trust stock'' 
                and inserting ``establish and maintain a 
                trust''; and
                    (B) by striking ``or any combination of the 
                commodities, totaling not more than 4,000,000 
                metric tons'' and inserting ``any combination 
                of the commodities, or funds'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking 
                subparagraph (D) and inserting the following:
                    ``(D) funds made available--
                            ``(i) under paragraph (2)(B);
                            ``(ii) as a result of an exchange 
                        of any commodity held in the trust for 
                        an equivalent amount of funds from the 
                        market, if the Secretary determines 
                        that such a sale of the commodity on 
                        the market will not unduly disrupt 
                        domestic markets; or
                            ``(iii) to maximize the value of 
                        the trust, in accordance with 
                        subsection (d)(3).''; and
                    (B) in paragraph (2)(B)--
                            (i) in clause (i)--
                                    (I) by striking ``2007'' 
                                each place it appears and 
                                inserting ``2012'';
                                    (II) by striking ``(c)(2)'' 
                                and inserting ``(c)(1)''; and
                                    (III) by striking ``and'' 
                                at the end;
                            (ii) in clause (ii), by striking 
                        the period at the end and inserting ``; 
                        or''; and
                            (iii) by adding at the end the 
                        following:
                            ``(iii) from funds accrued through 
                        the management of the trust under 
                        subsection (d).'';
            (3) in subsection (c)--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) Releases for emergency assistance.--
                    ``(A) Definition of emergency.--
                            ``(i) In general.--In this 
                        paragraph, the term `emergency' means 
                        an urgent situation--
                                    ``(I) in which there is 
                                clear evidence that an event or 
                                series of events described in 
                                clause (ii) has occurred--
                                            ``(aa) that causes 
                                        human suffering; and
                                            ``(bb) for which a 
                                        government concerned 
                                        has not chosen, or has 
                                        not the means, to 
                                        remedy; or
                                    ``(II) created by a 
                                demonstrably abnormal event or 
                                series of events that produces 
                                dislocation in the lives of 
                                residents of a country or 
                                region of a country on an 
                                exceptional scale.
                            ``(ii) Event or series of events.--
                        An event or series of events referred 
                        to in clause (i) includes 1 or more 
                        of--
                                    ``(I) a sudden calamity, 
                                such as an earthquake, flood, 
                                locust infestation, or similar 
                                unforeseen disaster;
                                    ``(II) a human-made 
                                emergency resulting in--
                                            ``(aa) a 
                                        significant influx of 
                                        refugees;
                                            ``(bb) the internal 
                                        displacement of 
                                        populations; or
                                            ``(cc) the 
                                        suffering of otherwise 
                                        affected populations;
                                    ``(III) food scarcity 
                                conditions caused by slow-onset 
                                events, such as drought, crop 
                                failure, pest infestation, and 
                                disease, that result in an 
                                erosion of the ability of 
                                communities and vulnerable 
                                populations to meet food needs; 
                                and
                                    ``(IV) severe food access 
                                or availability conditions 
                                resulting from sudden economic 
                                shocks, market failure, or 
                                economic collapse, that result 
                                in an erosion of the ability of 
                                communities and vulnerable 
                                populations to meet food needs.
                    ``(B) Releases.--
                            ``(i) In general.--Any funds or 
                        commodities held in the trust may be 
                        released to provide food, and cover any 
                        associated costs, under title II of the 
                        Food for Peace Act (7 U.S.C. 1721 et 
                        seq.)--
                                    ``(I) to assist in averting 
                                an emergency, including during 
                                the period immediately 
                                preceding the emergency;
                                    ``(II) to respond to an 
                                emergency; or
                                    ``(III) for recovery and 
                                rehabilitation after an 
                                emergency.
                            ``(ii) Procedure.--A release under 
                        clause (i) shall be carried out in the 
                        same manner, and pursuant to the same 
                        authority as provided in title II of 
                        that Act.
                    ``(C) Insufficiency of other funds.--The 
                funds and commodities held in the trust shall 
                be made immediately available on a 
                determination by the Administrator that funds 
                available for emergency needs under title II of 
                that Act (7 U.S.C. 1721 et seq.) for a fiscal 
                year are insufficient to meet emergency needs 
                during the fiscal year.
                    ``(D) Waiver relating to minimum tonnage 
                requirements.--Nothing in this paragraph 
                requires a waiver by the Administrator of the 
                Agency for International Development under 
                section 204(a)(3) of the Food for Peace Act (7 
                U.S.C. 1724(a)(3)) as a condition for a release 
                of funds or commodities under subparagraph 
                (B).''; and
                    (B) by redesignating paragraphs (3) through 
                (5) as paragraphs (2) through (4), 
                respectively;
            (4) in subsection (d)--
                    (A) by redesignating paragraphs (1) through 
                (3) as subparagraphs (A) through (C), 
                respectively, and indenting the subparagraphs 
                appropriately;
                    (B) by striking the subsection designation 
                and heading and all that follows through 
                ``provide--'' and inserting the following:
    ``(d) Management of Trust.--
            ``(1) In general.--The Secretary shall provide for 
        the management of eligible commodities and funds held 
        in the trust in a manner that is consistent with 
        maximizing the value of the trust, as determined by the 
        Secretary.
            ``(2) Eligible commodities.--The Secretary shall 
        provide--'';
                    (C) in paragraph (2) (as redesignated by 
                subparagraph (B))--
                            (i) in subparagraph (B) (as 
                        redesignated by subparagraph (A)), by 
                        striking ``and'' at the end; and
                            (ii) in subparagraph (C) (as 
                        redesignated by subparagraph (A)), by 
                        striking the period at the end and 
                        inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(3) Funds.--
                    ``(A) Exchanges.--If any commodity held in 
                the trust is exchanged for funds under 
                subsection (b)(1)(D)(ii), the funds shall be 
                held in the trust until the date on which the 
                funds are released in the case of an emergency 
                under subsection (c).
                    ``(B) Investment.--The Secretary may invest 
                funds held in the trust in any short-term 
                obligation of the United States or any other 
                low-risk short-term instrument or security 
                insured by the Federal Government in which a 
                regulated insurance company may invest under 
                the laws of the District of Columbia.''; and
            (5) in subsection (h), in each of paragraphs (1) 
        and (2), by striking ``2007'' each place it appears and 
        inserting ``2012''.

SEC. 3202. GLOBAL CROP DIVERSITY TRUST.

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

SEC. 3203. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    Section 3205 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 5680) is amended by striking subsection (d) 
and inserting the following:
    ``(d) Annual Report.--Not later than 180 days after the 
date of enactment of the Food, Conservation, and Energy Act of 
2008 and annually thereafter, the Secretary shall submit to the 
appropriate committees of Congress a report that contains, for 
the period covered by the report, a description of each factor 
that affects the export of specialty crops, including each 
factor relating to any--
            ``(1) significant sanitary or phytosanitary issue; 
        or
            ``(2) trade barrier.
    ``(e) Funding.--
            ``(1) Commodity credit corporation.--The Secretary 
        shall use the funds, facilities, and authorities of the 
        Commodity Credit Corporation to carry out this section.
            ``(2) Funding amounts.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use 
        to carry out this section--
                    ``(A) $4,000,000 for fiscal year 2008;
                    ``(B) $7,000,000 for fiscal year 2009;
                    ``(C) $8,000,000 for fiscal year 2010;
                    ``(D) $9,000,000 for fiscal year 2011; and
                    ``(E) $9,000,000 for fiscal year 2012.''.

SEC. 3204. EMERGING MARKETS AND FACILITY GUARANTEE LOAN PROGRAM.

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

SEC. 3205. CONSULTATIVE GROUP TO ELIMINATE THE USE OF CHILD LABOR AND 
                    FORCED LABOR IN IMPORTED AGRICULTURAL PRODUCTS.

    (a) Definitions.--In this section:
            (1) Child labor.--The term ``child labor'' means 
        the worst forms of child labor as defined in 
        International Labor Convention 182, the Convention 
        Concerning the Prohibition and Immediate Action for the 
        Elimination of the Worst Forms of Child Labor, done at 
        Geneva on June 17, 1999.
            (2) Consultative group.--The term ``Consultative 
        Group'' means the Consultative Group to Eliminate the 
        Use of Child Labor and Forced Labor in Imported 
        Agricultural Products established under subsection (b).
            (3) Forced labor.--The term ``forced labor'' means 
        all work or service--
                    (A) that is exacted from any individual 
                under menace of any penalty for nonperformance 
                of the work or service, and for which--
                            (i) the work or service is not 
                        offered voluntarily; or
                            (ii) the work or service is 
                        performed as a result of coercion, debt 
                        bondage, or involuntary servitude (as 
                        those terms are defined in section 103 
                        of the Trafficking Victims Protection 
                        Act of 2000 (22 U.S.C. 7102)); and
                    (B) by 1 or more individuals who, at the 
                time of performing the work or service, were 
                being subjected to a severe form of trafficking 
                in persons (as that term is defined in that 
                section).
    (b) Establishment.--There is established a group to be 
known as the ``Consultative Group to Eliminate the Use of Child 
Labor and Forced Labor in Imported Agricultural Products'' to 
develop recommendations relating to guidelines to reduce the 
likelihood that agricultural products or commodities imported 
into the United States are produced with the use of forced 
labor and child labor.
    (c) Duties.--
            (1) In general.--Not later than 2 years after the 
        date of enactment of this Act and in accordance with 
        section 105(d) of the Trafficking Victims Protection 
        Act of 2000 (22 U.S.C. 7103(d)), as applicable to the 
        importation of agricultural products made with the use 
        of child labor or forced labor, the Consultative Group 
        shall develop, and submit to the Secretary, 
        recommendations relating to a standard set of practices 
        for independent, third-party monitoring and 
        verification for the production, processing, and 
        distribution of agricultural products or commodities to 
        reduce the likelihood that agricultural products or 
        commodities imported into the United States are 
        produced with the use of forced labor or child labor.
            (2) Guidelines.--
                    (A) In general.--Not later than 1 year 
                after the date on which the Secretary receives 
                recommendations under paragraph (1), the 
                Secretary shall release guidelines for a 
                voluntary initiative to enable entities to 
                address issues raised by the Trafficking 
                Victims Protection Act of 2000 (22 U.S.C. 7101 
                et seq.).
                    (B) Requirements.--Guidelines released 
                under subparagraph (A) shall be published in 
                the Federal Register and made available for 
                public comment for a period of 90 days.
    (d) Membership.--The Consultative Group shall be composed 
of not more than 13 individuals, of whom--
            (1) 2 members shall represent the Department of 
        Agriculture, as determined by the Secretary;
            (2) 1 member shall be the Deputy Under Secretary 
        for International Affairs of the Department of Labor;
            (3) 1 member shall represent the Department of 
        State, as determined by the Secretary of State;
            (4) 3 members shall represent private agriculture-
        related enterprises, which may include retailers, food 
        processors, importers, and producers, of whom at least 
        1 member shall be an importer, food processor, or 
        retailer who utilizes independent, third-party supply 
        chain monitoring for forced labor or child labor;
            (5) 2 members shall represent institutions of 
        higher education and research institutions, as 
        determined appropriate by the Bureau of International 
        Labor Affairs of the Department of Labor;
            (6) 1 member shall represent an organization that 
        provides independent, third-party certification 
        services for labor standards for producers or importers 
        of agricultural commodities or products; and
            (7) 3 members shall represent organizations 
        described in section 501(c)(3) of the Internal Revenue 
        Code of 1986 that have expertise on the issues of 
        international child labor and do not possess a conflict 
        of interest associated with establishment of the 
        guidelines issued under subsection (c)(2), as 
        determined by the Bureau of International Labor Affairs 
        of the Department of Labor, including representatives 
        from consumer organizations and trade unions, if 
        appropriate.
    (e) Chairperson.--A representative of the Department of 
Agriculture appointed under subsection (d)(1), as determined by 
the Secretary, shall serve as the chairperson of the 
Consultative Group.
    (f) Requirements.--Not less than 4 times per year, the 
Consultative Group shall meet at the call of the Chairperson, 
after reasonable notice to all members, to develop 
recommendations described in subsection (c)(1).
    (g) Nonapplicability of FACA.--The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the 
Consultative Group.
    (h) Annual Reports.--Not later than 1 year after the date 
of enactment of this Act, and annually thereafter through 
December 31, 2012, the Secretary shall submit to the Committees 
on Agriculture and Foreign Affairs of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report describing the activities 
and recommendations of the Consultative Group.
    (i) Termination of Authority.--The Consultative Group shall 
terminate on December 31, 2012.

SEC. 3206. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Agency for International 
        Development.
            (2) Appropriate committee of congress.--The term 
        ``appropriate committee of Congress'' means--
                    (A) the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate;
                    (B) the Committee on Agriculture of the 
                House of Representatives; and
                    (C) the Committee on Foreign Affairs of the 
                House of Representatives.
            (3) Eligible commodity.--The term ``eligible 
        commodity'' means an agricultural commodity (or the 
        product of an agricultural commodity) that--
                    (A) is produced in, and procured from, a 
                developing country; and
                    (B) at a minimum, meets each nutritional, 
                quality, and labeling standard of the country 
                that receives the agricultural commodity, as 
                determined by the Secretary.
            (4) Eligible organization.--The term ``eligible 
        organization'' means an organization that is--
                    (A) described in section 202(d) of the Food 
                for Peace Act (7 U.S.C. 1722(d)); and
                    (B) with respect to nongovernmental 
                organizations, subject to regulations 
                promulgated or guidelines issued to carry out 
                this section, including United States audit 
                requirements that are applicable to 
                nongovernmental organizations.
    (b) Study; Field-Based Projects.--
            (1) Study.--
                    (A) In general.--Not later than 30 days 
                after the date of enactment of this Act, the 
                Secretary shall initiate a study of prior local 
                and regional procurements for food aid programs 
                conducted by--
                            (i) other donor countries;
                            (ii) private voluntary 
                        organizations; and
                            (iii) the World Food Program of the 
                        United Nations.
                    (B) Report.--Not later than 180 days after 
                the date of enactment of this Act, the 
                Secretary shall submit to the appropriate 
                committees of Congress a report containing the 
                results of the study conducted under 
                subparagraph (A).
            (2) Field-based projects.--
                    (A) In general.--In accordance with 
                subparagraph (B), the Secretary shall provide 
                grants to, or enter into cooperative agreements 
                with, eligible organizations to carry out 
                field-based projects that consist of local or 
                regional procurements of eligible commodities 
                to respond to food crises and disasters in 
                accordance with this section.
                    (B) Consultation with administrator.--In 
                carrying out the development and implementation 
                of field-based projects under subparagraph (A), 
                the Secretary shall consult with the 
                Administrator.
    (c) Procurement.--
            (1) In general.--Any eligible commodity that is 
        procured for a field-based project carried out under 
        subsection (b)(2) shall be procured through any 
        approach or methodology that the Secretary considers to 
        be an effective approach or methodology to provide 
        adequate information regarding the manner by which to 
        expedite, to the maximum extent practicable, the 
        provision of food aid to affected populations without 
        significantly increasing commodity costs for low-income 
        consumers who procure commodities sourced from the same 
        markets at which the eligible commodity is procured.
            (2) Requirements.--
                    (A) Impact on local farmers and 
                countries.--The Secretary shall ensure that the 
                local or regional procurement of any eligible 
                commodity under this section will not have a 
                disruptive impact on farmers located in, or the 
                economy of--
                            (i) the recipient country of the 
                        eligible commodity; or
                            (ii) any country in the region in 
                        which the eligible commodity may be 
                        procured.
                    (B) Transshipment.--The Secretary shall, in 
                accordance with such terms and conditions as 
                the Secretary considers to be appropriate, 
                require from each eligible organization 
                commitments designed to prevent or restrict--
                            (i) the resale or transshipment of 
                        any eligible commodity procured under 
                        this section to any country other than 
                        the recipient country; and
                            (ii) the use of the eligible 
                        commodity for any purpose other than 
                        food aid.
                    (C) World prices.--
                            (i) In general.--In carrying out 
                        this section, the Secretary shall take 
                        any precaution that the Secretary 
                        considers to be reasonable to ensure 
                        that the procurement of eligible 
                        commodities will not unduly disrupt--
                                    (I) world prices for 
                                agricultural commodities; or
                                    (II) normal patterns of 
                                commercial trade with foreign 
                                countries.
                            (ii) Procurement price.--The 
                        procurement of any eligible commodity 
                        shall be made at a reasonable market 
                        price with respect to the economy of 
                        the country in which the eligible 
                        commodity is procured, as determined by 
                        the Secretary.
    (d) Regulations; Guidelines.--
            (1) In general.--In accordance with paragraph (2), 
        not later than 180 days after the date of completion of 
        the study under subsection (b)(1), the Secretary shall 
        promulgate regulations or issue guidelines to carry out 
        field-based projects under this section.
            (2) Requirements.--
                    (A) Use of study.--In promulgating 
                regulations or issuing guidelines under 
                paragraph (1), the Secretary shall take into 
                consideration the results of the study 
                described in subsection (b)(1).
                    (B) Public review and comment.--In 
                promulgating regulations or issuing guidelines 
                under paragraph (1), the Secretary shall 
                provide an opportunity for public review and 
                comment.
            (3) Availability.--The Secretary shall not approve 
        the procurement of any eligible commodity under this 
        section until the date on which the Secretary 
        promulgates regulations or issues guidelines under 
        paragraph (1).
    (e) Field-Based Project Grants or Cooperative Agreements.--
            (1) In general.--The Secretary shall award grants 
        to, or enter into cooperative agreements with, eligible 
        organizations to carry out field-based projects.
            (2) Requirements of eligible organizations.--
                    (A) Application.--
                            (i) In general.--To be eligible to 
                        receive a grant from, or enter into a 
                        cooperative agreement with, the 
                        Secretary under this subsection, an 
                        eligible organization shall submit to 
                        the Secretary an application by such 
                        date, in such manner, and containing 
                        such information as the Secretary may 
                        require.
                            (ii) Other applicable 
                        requirements.--Any other applicable 
                        requirement relating to the submission 
                        of proposals for consideration shall 
                        apply to the submission of an 
                        application required under clause (i), 
                        as determined by the Secretary.
                    (B) Completion requirement.--To be eligible 
                to receive a grant from, or enter into a 
                cooperative agreement with, the Secretary under 
                this subsection, an eligible organization shall 
                agree--
                            (i) to collect by September 30, 
                        2011, data containing the information 
                        required under subsection (f)(1)(B) 
                        relating to the field-based project 
                        funded through the grant; and
                            (ii) to provide to the Secretary 
                        the data collected under clause (i).
            (3) Requirements of secretary.--
                    (A) Project diversity.--
                            (i) In general.--Subject to clause 
                        (ii) and subparagraph (B), in selecting 
                        proposals for field-based projects to 
                        fund under this section, the Secretary 
                        shall select a diversity of projects, 
                        including projects located in--
                                    (I) food surplus regions;
                                    (II) food deficit regions 
                                (that are carried out using 
                                regional procurement methods); 
                                and
                                    (III) multiple geographical 
                                regions.
                            (ii) Priority.--In selecting 
                        proposals for field-based projects 
                        under clause (i), the Secretary shall 
                        ensure that the majority of selected 
                        proposals are for field-based projects 
                        that--
                                    (I) are located in Africa; 
                                and
                                    (II) procure eligible 
                                commodities that are produced 
                                in Africa.
                    (B) Development assistance.--A portion of 
                the funds provided under this subsection shall 
                be made available for field-based projects that 
                provide development assistance for a period of 
                not less than 1 year.
            (4) Availability.--The Secretary shall not award a 
        grant to any eligible organization under paragraph (1) 
        until the date on which the Secretary promulgates 
        regulations or issues guidelines under subsection 
        (d)(1).
    (f) Independent Evaluations; Report.--
            (1) Independent evaluations.--
                    (A) In general.--Not later than November 1, 
                2011, the Secretary shall ensure that an 
                independent third party conducts an independent 
                evaluation of all field-based projects that--
                            (i) addresses each factor described 
                        in subparagraph (B); and
                            (ii) is conducted in accordance 
                        with this section.
                    (B) Required factors.--The Secretary shall 
                require the independent third party to 
                develop--
                            (i) with respect to each relevant 
                        market in which an eligible commodity 
                        was procured under this section, a 
                        description of--
                                    (I) the prevailing and 
                                historic supply, demand, and 
                                price movements of the market 
                                (including the extent of 
                                competition for procurement 
                                bids);
                                    (II) the impact of the 
                                procurement of the eligible 
                                commodity on producer and 
                                consumer prices in the market;
                                    (III) each government 
                                market interference or other 
                                activity of the donor country 
                                that might have significantly 
                                affected the supply or demand 
                                of the eligible commodity in 
                                the area at which the local or 
                                regional procurement occurred;
                                    (IV) the quantities and 
                                types of eligible commodities 
                                procured in the market;
                                    (V) the time frame for 
                                procurement of each eligible 
                                commodity; and
                                    (VI) the total cost of the 
                                procurement of each eligible 
                                commodity (including storage, 
                                handling, transportation, and 
                                administrative costs);
                            (ii) an assessment regarding--
                                    (I) whether the 
                                requirements of this section 
                                have been met;
                                    (II) the impact of 
                                different methodologies and 
                                approaches on--
                                            (aa) local and 
                                        regional agricultural 
                                        producers (including 
                                        large and small 
                                        agricultural 
                                        producers);
                                            (bb) markets;
                                            (cc) low-income 
                                        consumers; and
                                            (dd) program 
                                        recipients; and
                                    (III) the length of the 
                                period beginning on the date on 
                                which the Secretary initiated 
                                the procurement process and 
                                ending on the date of delivery 
                                of eligible commodities;
                            (iii) a comparison of different 
                        methodologies used to carry out this 
                        section, with respect to--
                                    (I) the benefits to local 
                                agriculture;
                                    (II) the impact on markets 
                                and consumers;
                                    (III) the period of time 
                                required for procurement and 
                                delivery;
                                    (IV) quality and safety 
                                assurances; and
                                    (V) implementation costs; 
                                and
                            (iv) to the extent adequate 
                        information is available (including the 
                        results of the report required under 
                        subsection (b)(1)(B)), a comparison of 
                        the different methodologies used by 
                        other donor countries to make local and 
                        regional procurements.
                    (C) Independent third party access to 
                records and reports.--The Secretary shall 
                provide to the independent third party access 
                to each record and report that the independent 
                third party determines to be necessary to 
                complete the independent evaluation.
                    (D) Public access to records and reports.--
                Not later than 180 days after the date 
                described in paragraph (2), the Secretary shall 
                provide public access to each record and report 
                described in subparagraph (C).
            (2) Report.--Not later than 4 years after the date 
        of enactment of this Act, the Secretary shall submit to 
        the appropriate committees of Congress a report that 
        contains the analysis and findings of the independent 
        evaluation conducted under paragraph (1)(A).
    (g) Funding.--
            (1) Commodity credit corporation.--The Secretary 
        shall use the funds, facilities, and authorities of the 
        Commodity Credit Corporation to carry out this section.
            (2) Funding amounts.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry 
        out this section--
                    (A) $5,000,000 for fiscal year 2009;
                    (B) $25,000,000 for fiscal year 2010;
                    (C) $25,000,000 for fiscal year 2011; and
                    (D) $5,000,000 for fiscal year 2012.

                      Subtitle D--Softwood Lumber

SEC. 3301. SOFTWOOD LUMBER.

    (a) In General.--The Tariff Act of 1930 (19 U.S.C. 1202 et 
seq.) is amended by adding at the end the following new title:

                     ``TITLE VIII--SOFTWOOD LUMBER

``SEC. 801. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This title may be cited as the 
`Softwood Lumber Act of 2008'.
    ``(b) Table of Contents.--The table of contents for this 
title is as follows:

                      ``TITLE VIII--SOFTWOOD LUMBER

``Sec. 801. Short title; table of contents.
``Sec. 802. Definitions.
``Sec. 803. Establishment of softwood lumber importer declaration 
          program.
``Sec. 804. Scope of softwood lumber importer declaration program.
``Sec. 805. Export charge determination and publication.
``Sec. 806. Reconciliation.
``Sec. 807. Verification.
``Sec. 808. Penalties.
``Sec. 809. Reports.

``SEC. 802. DEFINITIONS.

    ``In this title:
            ``(1) Appropriate congressional committees.--The 
        term `appropriate congressional committees' means the 
        Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives.
            ``(2) Country of export.--The term `country of 
        export' means the country (including any political 
        subdivision of the country) from which softwood lumber 
        or a softwood lumber product is exported before 
        entering the United States.
            ``(3) Customs laws of the united states.--The term 
        `customs laws of the United States' means any law or 
        regulation enforced or administered by U.S. Customs and 
        Border Protection.
            ``(4) Export charges.--The term `export charges' 
        means any tax, charge, or other fee collected by the 
        country from which softwood lumber or a softwood lumber 
        product, described in section 804(a), is exported 
        pursuant to an international agreement entered into by 
        that country and the United States.
            ``(5) Export price.--
                    ``(A) In general.--The term `export price' 
                means one of the following:
                            ``(i) In the case of softwood 
                        lumber or a softwood lumber product 
                        that has undergone only primary 
                        processing, the value that would be 
                        determined F.O.B. at the facility where 
                        the product underwent the last primary 
                        processing before export.
                            ``(ii)(I) In the case of softwood 
                        lumber or a softwood lumber product 
                        described in subclause (II), the value 
                        that would be determined F.O.B. at the 
                        facility where the lumber or product 
                        underwent the last primary processing.
                            ``(II) Softwood lumber or a 
                        softwood lumber product described in 
                        this subclause is lumber or a product 
                        that underwent the last remanufacturing 
                        before export by a manufacturer who--
                                    ``(aa) does not hold tenure 
                                rights provided by the country 
                                of export;
                                    ``(bb) did not acquire 
                                standing timber directly from 
                                the country of export; and
                                    ``(cc) is not related to 
                                the person who holds tenure 
                                rights or acquired standing 
                                timber directly from the 
                                country of export.
                            ``(iii)(I) In the case of softwood 
                        lumber or a softwood lumber product 
                        described in subclause (II), the value 
                        that would be determined F.O.B. at the 
                        facility where the product underwent 
                        the last processing before export.
                            ``(II) Softwood lumber or a 
                        softwood lumber product described in 
                        this subclause is lumber or a product 
                        that undergoes the last remanufacturing 
                        before export by a manufacturer who--
                                    ``(aa) holds tenure rights 
                                provided by the country of 
                                export;
                                    ``(bb) acquired standing 
                                timber directly from the 
                                country of export; or
                                    ``(cc) is related to a 
                                person who holds tenure rights 
                                or acquired standing timber 
                                directly from the country of 
                                export.
                    ``(B) Related persons.--For purposes of 
                this paragraph, a person is related to another 
                person if--
                            ``(i) the person bears a 
                        relationship to such other person 
                        described in section 152(a) of the 
                        Internal Revenue Code of 1986;
                            ``(ii) the person bears a 
                        relationship to such other person 
                        described in section 267(b) of such 
                        Code, except that `5 percent' shall be 
                        substituted for `50 percent' each place 
                        it appears;
                            ``(iii) the person and such other 
                        person are part of a controlled group 
                        of corporations, as that term is 
                        defined in section 1563(a) of such 
                        Code, except that `5 percent' shall be 
                        substituted for `80 percent' each place 
                        it appears;
                            ``(iv) the person is an officer or 
                        director of such other person; or
                            ``(v) the person is the employer of 
                        such other person.
                    ``(C) Tenure rights.--For purposes of this 
                paragraph, the term `tenure rights' means 
                rights to harvest timber from public land 
                granted by the country of export.
                    ``(D) Export price where f.o.b. value 
                cannot be determined.--
                            ``(i) In general.--In the case of 
                        softwood lumber or a softwood lumber 
                        product described in clause (i), (ii), 
                        or (iii) of subparagraph (A) for which 
                        an F.O.B. value cannot be determined, 
                        the export price shall be the market 
                        price for the identical lumber or 
                        product sold in an arm's-length 
                        transaction in the country of export at 
                        approximately the same time as the 
                        exported lumber or product. The market 
                        price shall be determined in the 
                        following order of preference:
                                    ``(I) The market price for 
                                the lumber or a product sold at 
                                substantially the same level of 
                                trade as the exported lumber or 
                                product but in different 
                                quantities.
                                    ``(II) The market price for 
                                the lumber or a product sold at 
                                a different level of trade than 
                                the exported lumber or product 
                                but in similar quantities.
                                    ``(III) The market price 
                                for the lumber or a product 
                                sold at a different level of 
                                trade than the exported lumber 
                                or product and in different 
                                quantities.
                            ``(ii) Level of trade.--For 
                        purposes of clause (i), `level of 
                        trade' shall be determined in the same 
                        manner as provided under section 
                        351.412(c) of title 19, Code of Federal 
                        Regulations (as in effect on January 1, 
                        2008).
            ``(6) F.O.B.--The term `F.O.B.' means a value 
        consisting of all charges payable by a purchaser, 
        including those charges incurred in the placement of 
        merchandise on board of a conveyance for shipment, but 
        does not include the actual shipping charges or any 
        applicable export charges.
            ``(7) HTS.--The term `HTS' means the Harmonized 
        Tariff Schedule of the United States (19 U.S.C. 1202) 
        (as in effect on January 1, 2008).
            ``(8) Person.--The term `person' includes any 
        individual, partnership, corporation, association, 
        organization, business trust, government entity, or 
        other entity subject to the jurisdiction of the United 
        States.
            ``(9) United states.--The term `United States' 
        means the customs territory of the United States, as 
        defined in General Note 2 of the HTS.

``SEC. 803. ESTABLISHMENT OF SOFTWOOD LUMBER IMPORTER DECLARATION 
                    PROGRAM.

    ``(a) Establishment of Program.--
            ``(1) In general.--The President shall establish 
        and maintain an importer declaration program with 
        respect to the importation of softwood lumber and 
        softwood lumber products described in section 804(a). 
        The importer declaration program shall require 
        importers of softwood lumber and softwood lumber 
        products described in section 804(a) to provide the 
        information required under subsection (b) and declare 
        the information required by subsection (c), and require 
        that such information accompany the entry summary 
        documentation.
            ``(2) Electronic record.--The President shall 
        establish an electronic record that includes the 
        importer information required under subsection (b) and 
        the declarations required under subsection (c).
    ``(b) Required Information.--The President shall require 
the following information to be submitted by any person seeking 
to import softwood lumber or softwood lumber products described 
in section 804(a):
            ``(1) The export price for each shipment of 
        softwood lumber or softwood lumber products.
            ``(2) The estimated export charge, if any, 
        applicable to each shipment of softwood lumber or 
        softwood lumber products as calculated by applying the 
        percentage determined and published by the Under 
        Secretary for International Trade of the Department of 
        Commerce pursuant to section 805 to the export price 
        provided in subsection (b)(1).
    ``(c) Importer Declarations.--Pursuant to procedures 
prescribed by the President, any person seeking to import 
softwood lumber or softwood lumber products described in 
section 804(a) shall declare that--
            ``(1) the person has made appropriate inquiry, 
        including seeking appropriate documentation from the 
        exporter and consulting the determinations published by 
        the Under Secretary for International Trade of the 
        Department of Commerce pursuant to section 805(b); and
            ``(2) to the best of the person's knowledge and 
        belief--
                    ``(A) the export price provided pursuant to 
                subsection (b)(1) is determined in accordance 
                with the definition provided in section 802(5);
                    ``(B) the export price provided pursuant to 
                subsection (b)(1) is consistent with the export 
                price provided on the export permit, if any, 
                granted by the country of export; and
                    ``(C) the exporter has paid, or committed 
                to pay, all export charges due--
                            ``(i) in accordance with the 
                        volume, export price, and export charge 
                        rate or rates, if any, as calculated 
                        under an international agreement 
                        entered into by the country of export 
                        and the United States; and
                            ``(ii) consistent with the export 
                        charge determinations published by the 
                        Under Secretary for International Trade 
                        pursuant to section 805(b).

``SEC. 804. SCOPE OF SOFTWOOD LUMBER IMPORTER DECLARATION PROGRAM.

    ``(a) Products Included in Program.--The following products 
shall be subject to the importer declaration program 
established under section 803:
            ``(1) In general.--All softwood lumber and softwood 
        lumber products classified under subheading 4407.10.00, 
        4409.10.10, 4409.10.20, or 4409.10.90 of the HTS, 
        including the following softwood lumber, flooring, and 
        siding:
                    ``(A) Coniferous wood, sawn or chipped 
                lengthwise, sliced or peeled, whether or not 
                planed, sanded, or finger-jointed, of a 
                thickness exceeding 6 millimeters.
                    ``(B) Coniferous wood siding (including 
                strips and friezes for parquet flooring, not 
                assembled) continuously shaped (tongued, 
                grooved, rabbeted, chamfered, v-jointed, 
                beaded, molded, rounded, or the like) along any 
                of its edges or faces, whether or not planed, 
                sanded, or finger-jointed.
                    ``(C) Other coniferous wood (including 
                strips and friezes for parquet flooring, not 
                assembled) continuously shaped (tongued, 
                grooved, rabbeted, chamfered, v-jointed, 
                beaded, molded, rounded, or the like) along any 
                of its edges or faces (other than wood moldings 
                and wood dowel rods) whether or not planed, 
                sanded, or finger-jointed.
                    ``(D) Coniferous wood flooring (including 
                strips and friezes for parquet flooring, not 
                assembled) continuously shaped (tongued, 
                grooved, rabbeted, chamfered, v-jointed, 
                beaded, molded, rounded, or the like) along any 
                of its edges or faces, whether or not planed, 
                sanded, or finger-jointed.
                    ``(E) Coniferous drilled and notched lumber 
                and angle cut lumber.
            ``(2) Products continually shaped.--Any product 
        classified under subheading 4409.10.05 of the HTS that 
        is continually shaped along its end or side edges.
            ``(3) Other lumber products.--Except as otherwise 
        provided in subsection (b) or (c), softwood lumber 
        products that are stringers, radius-cut box-spring 
        frame components, fence pickets, truss components, 
        pallet components, and door and window frame parts 
        classified under subheading 4418.90.46.95, 
        4421.90.70.40, or 4421.90.97.40 of the HTS.
    ``(b) Products Excluded From Program.--The following 
products shall be excluded from the importer declaration 
program established under section 803:
            ``(1) Trusses and truss kits, properly classified 
        under subheading 4418.90 of the HTS.
            ``(2) I-joist beams.
            ``(3) Assembled box-spring frames.
            ``(4) Pallets and pallet kits, properly classified 
        under subheading 4415.20 of HTS.
            ``(5) Garage doors.
            ``(6) Edge-glued wood, properly classified under 
        subheading 4421.90.97.40 of the HTS.
            ``(7) Complete door frames.
            ``(8) Complete window frames.
            ``(9) Furniture.
            ``(10) Articles brought into the United States 
        temporarily and for which an exemption from duty is 
        claimed under subchapter XIII of chapter 98 of the HTS.
            ``(11) Household and personal effects.
    ``(c) Exceptions for Certain Products.--The following 
softwood lumber products shall not be subject to the importer 
declaration program established under section 803:
            ``(1) Stringers.--Stringers (pallet components used 
        for runners), if the stringers--
                    ``(A) have at least 2 notches on the side, 
                positioned at equal distance from the center, 
                to properly accommodate forklift blades; and
                    ``(B) are properly classified under 
                subheading 4421.90.97.40 of the HTS.
            ``(2) Box-spring frame kits.--
                    ``(A) In general.--Box-spring frame kits, 
                if--
                            ``(i) the kits contain--
                                    ``(I) 2 wooden side rails;
                                    ``(II) 2 wooden end (or 
                                top) rails; and
                                    ``(III) varying numbers of 
                                wooden slats; and
                            ``(ii) the side rails and the end 
                        rails are radius-cut at both ends.
                    ``(B) Packaging.--Any kit described in 
                subparagraph (A) shall be individually 
                packaged, and contain the exact number of 
                wooden components needed to make the box-spring 
                frame described on the entry documents, with no 
                further processing required. None of the 
                components contained in the package may exceed 
                1 inch in actual thickness or 83 inches in 
                length.
            ``(3) Radius-cut box-spring frame components.--
        Radius-cut box-spring frame components, not exceeding 1 
        inch in actual thickness or 83 inches in length, ready 
        for assembly without further processing, if radius cuts 
        are present on both ends of the boards and are 
        substantial cuts so as to completely round 1 corner.
            ``(4) Fence pickets.--Fence pickets requiring no 
        further processing and properly classified under 
        subheading 4421.90.70 of the HTS, 1 inch or less in 
        actual thickness, up to 8 inches wide, and 6 feet or 
        less in length, and having finials or decorative 
        cuttings that clearly identify them as fence pickets. 
        In the case of dog-eared fence pickets, the corners of 
        the boards shall be cut off so as to remove pieces of 
        wood in the shape of isosceles right angle triangles 
        with sides measuring \3/4\ of an inch or more.
            ``(5) United states-origin lumber.--Lumber 
        originating in the United States that is exported to 
        another country for minor processing and imported into 
        the United States if--
                    ``(A) the processing occurring in another 
                country is limited to kiln drying, planing to 
                create smooth-to-size board, and sanding; and
                    ``(B) the importer establishes to the 
                satisfaction of U.S. Customs and Border 
                Protection upon entry that the lumber 
                originated in the United States.
            ``(6) Softwood lumber.--Any softwood lumber or 
        softwood lumber product that originated in the United 
        States, if the importer, exporter, foreign processor, 
        or original United States producer establishes to the 
        satisfaction of U.S. Customs and Border Protection upon 
        entry that the softwood lumber entered and documented 
        as originating in the United States was first produced 
        in the United States.
            ``(7) Home packages or kits.--
                    ``(A) In general.--Softwood lumber or 
                softwood lumber products contained in a single 
                family home package or kit, regardless of the 
                classification under the HTS, if the importer 
                declares that the following requirements have 
                been met:
                            ``(i) The package or kit 
                        constitutes a full package of the 
                        number of wooden pieces specified in 
                        the plan, design, or blueprint 
                        necessary to produce a home of at least 
                        700 square feet produced to a specified 
                        plan, design, or blueprint.
                            ``(ii) The package or kit 
                        contains--
                                    ``(I) all necessary 
                                internal and external doors and 
                                windows, nails, screws, glue, 
                                subfloor, sheathing, beams, 
                                posts, and connectors; and
                                    ``(II) if included in the 
                                purchase contract, the decking, 
                                trim, drywall, and roof 
                                shingles specified in the plan, 
                                design, or blueprint.
                            ``(iii) Prior to importation, the 
                        package or kit is sold to a United 
                        States retailer that sells complete 
                        home packages or kits pursuant to a 
                        valid purchase contract referencing the 
                        particular home design, plan, or 
                        blueprint, and the contract is signed 
                        by a customer not affiliated with the 
                        importer.
                            ``(iv) Softwood lumber products 
                        entered as part of the package or kit, 
                        whether in a single entry or multiple 
                        entries on multiple days, are to be 
                        used solely for the construction of the 
                        single family home specified by the 
                        home design, plan, or blueprint 
                        matching the U.S. Customs and Border 
                        Protection import entry.
                    ``(B) Additional documentation required for 
                home packages and kits.--In the case of each 
                entry of products described in clauses (i) 
                through (iv) of subparagraph (A) the following 
                documentation shall be retained by the importer 
                and made available to U.S. Customs and Border 
                Protection upon request:
                            ``(i) A copy of the appropriate 
                        home design, plan, or blueprint 
                        matching the customs entry in the 
                        United States.
                            ``(ii) A purchase contract from a 
                        retailer of home kits or packages 
                        signed by a customer not affiliated 
                        with the importer.
                            ``(iii) A listing of all parts in 
                        the package or kit being entered into 
                        the United States that conforms to the 
                        home design, plan, or blueprint for 
                        which such parts are being imported.
                            ``(iv) If a single contract 
                        involves multiple entries, an 
                        identification of all the items 
                        required to be listed under clause 
                        (iii) that are included in each 
                        individual shipment.
    ``(d) Products Covered.--For purposes of determining if a 
product is covered by the importer declaration program, the 
President shall be guided by the article descriptions provided 
in this section.

``SEC. 805. EXPORT CHARGE DETERMINATION AND PUBLICATION.

    ``(a) Determination.--The Under Secretary for International 
Trade of the Department of Commerce shall determine, on a 
monthly basis, any export charges (expressed as a percentage of 
export price) to be collected by a country of export from 
exporters of softwood lumber or softwood lumber products 
described in section 804(a) in order to ensure compliance with 
any international agreement entered into by that country and 
the United States.
    ``(b) Publication.--The Under Secretary for International 
Trade shall immediately publish any determination made under 
subsection (a) on the website of the International Trade 
Administration of the Department of Commerce, and in any other 
manner the Under Secretary considers appropriate.

``SEC. 806. RECONCILIATION.

    ``The Secretary of the Treasury shall conduct 
reconciliations to ensure the proper implementation and 
operation of international agreements entered into between a 
country of export of softwood lumber or softwood lumber 
products described in section 804(a) and the United States. The 
Secretary of Treasury shall reconcile the following:
            ``(1) The export price declared by a United States 
        importer pursuant to section 803(b)(1) with the export 
        price reported to the United States by the country of 
        export, if any.
            ``(2) The export price declared by a United States 
        importer pursuant to section 803(b)(1) with the revised 
        export price reported to the United States by the 
        country of export, if any.

``SEC. 807. VERIFICATION.

    ``(a) In General.--The Secretary of Treasury shall 
periodically verify the declarations made by a United States 
importer pursuant to section 803(c), including by determining 
whether--
            ``(1) the export price declared by a United States 
        importer pursuant to section 803(b)(1) is the same as 
        the export price provided on the export permit, if any, 
        issued by the country of export; and
            ``(2) the estimated export charge declared by a 
        United States importer pursuant to section 803(b)(2) is 
        consistent with the determination published by the 
        Under Secretary for International Trade pursuant to 
        section 805(b).
    ``(b) Examination of Books and Records.--
            ``(1) In general.--Any record relating to the 
        importer declaration program required under section 803 
        shall be treated as a record required to be maintained 
        and produced under title V of this Act.
            ``(2) Examination of records.--The Secretary of the 
        Treasury is authorized to take such action, and examine 
        such records, under section 509 of this Act, as the 
        Secretary determines necessary to verify the 
        declarations made pursuant to section 803(c) are true 
        and accurate.

``SEC. 808. PENALTIES.

    ``(a) In General.--It shall be unlawful for any person to 
import into the United States softwood lumber or softwood 
lumber products in knowing violation of this title.
    ``(b) Civil Penalties.--Any person who commits an unlawful 
act as set forth in subsection (a) shall be liable for a civil 
penalty not to exceed $10,000 for each knowing violation.
    ``(c) Other Penalties.--In addition to the penalties 
provided for in subsection (b), any violation of this title 
that violates any other customs law of the United States shall 
be subject to any applicable civil and criminal penalty, 
including seizure and forfeiture, that may be imposed under 
such custom law or title 18, United States Code, with respect 
to the importation of softwood lumber and softwood lumber 
products described in section 804(a).
    ``(d) Factors To Consider in Assessing Penalties.--In 
determining the amount of civil penalties to be assessed under 
this section, consideration shall be given to any history of 
prior violations of this title by the person, the ability of 
the person to pay the penalty, the seriousness of the 
violation, and such other matters as fairness may require.
    ``(e) Notice.--No penalty may be assessed under this 
section against a person for violating a provision of this 
title unless the person is given notice and opportunity to make 
statements, both oral and written, with respect to such 
violation.
    ``(f) Exception.--Notwithstanding any other provision of 
this title, and without limitation, an importer shall not be 
found to have violated subsection 803(c) if--
            ``(1) the importer made an appropriate inquiry in 
        accordance with section 803(c)(1) with respect to the 
        declaration;
            ``(2) the importer produces records maintained 
        pursuant to section 807(b) that substantiate the 
        declaration; and
            ``(3) there is not substantial evidence indicating 
        that the importer knew that the fact to which the 
        importer made the declaration was false.

``SEC. 809. REPORTS.

    ``(a) Semiannual Reports.--Not later than 180 days after 
the effective date of this title, and every 180 days 
thereafter, the President shall submit to the appropriate 
congressional committees a report--
            ``(1) describing the reconciliations conducted 
        under section 806, and the verifications conducted 
        under section 807;
            ``(2) identifying the manner in which the United 
        States importers subject to reconciliations conducted 
        under section 806 and verifications conducted under 
        section 807 were chosen;
            ``(3) identifying any penalties imposed under 
        section 808;
            ``(4) identifying any patterns of noncompliance 
        with this title; and
            ``(5) identifying any problems or obstacles 
        encountered in the implementation and enforcement of 
        this title.
    ``(b) Subsidies Reports.--Not later than 180 days after the 
date of the enactment of this title, and every 180 days 
thereafter, the Secretary of Commerce shall provide to the 
appropriate congressional committees a report on any subsidies 
on softwood lumber or softwood lumber products, including 
stumpage subsidies, provided by countries of export.
    ``(c) GAO Reports.--The Comptroller General of the United 
States shall submit the following reports to the appropriate 
congressional committees:
            ``(1) Not later than 18 months after the date of 
        the enactment of this title, a report on the 
        effectiveness of the reconciliations conducted under 
        section 806, and verifications conducted under section 
        807.
            ``(2) Not later than 12 months after the date of 
        the enactment of this title, a report on whether 
        countries that export softwood lumber or softwood 
        lumber products to the United States are complying with 
        any international agreements entered into by those 
        countries and the United States.''.
    (b) Effective Date.--The amendments made by this section 
shall take effect on the date that is 60 days after the date of 
the enactment of this Act.

                          TITLE IV--NUTRITION

                     Subtitle A--Food Stamp Program

             PART I--RENAMING OF FOOD STAMP ACT AND PROGRAM

SEC. 4001. RENAMING OF FOOD STAMP ACT AND PROGRAM.

    (a) Short Title.--The first section of the Food Stamp Act 
of 1977 (7 U.S.C. 2011 note; Public Law 88-525) is amended by 
striking ``Food Stamp Act of 1977'' and inserting ``Food and 
Nutrition Act of 2008''.
    (b) Program.--The Food and Nutrition Act of 2008 (7 U.S.C. 
2011 et seq.) (as amended by subsection (a)) is amended by 
striking ``food stamp program'' each place it appears and 
inserting ``supplemental nutrition assistance program''.

SEC. 4002. CONFORMING AMENDMENTS.

    (a) In General.--
            (1) Section 4 of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2013) is amended in the section heading by 
        striking ``food stamp program'' and inserting 
        ``supplemental nutrition assistance program''.
            (2) Section 5(h)(2)(A) of the Food and Nutrition 
        Act of 2008 (7 U.S.C. 2014(h)(2)(A)) is amended by 
        striking ``Food Stamp Disaster Task Force'' and 
        inserting ``Disaster Task Force''.
            (3) Section 6 of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2015) is amended--
                    (A) in subsection (d)(3), by striking ``for 
                food stamps'';
                    (B) in subsection (j), in the subsection 
                heading, by striking ``Food Stamp''; and
                    (C) in subsection (o)--
                            (i) in paragraph (2), by striking 
                        ``food stamp benefits'' and inserting 
                        ``supplemental nutrition assistance 
                        program benefits''; and
                            (ii) in paragraph (6)--
                                    (I) in subparagraph (A)--
                                            (aa) in clause (i), 
                                        by striking ``food 
                                        stamps'' and inserting 
                                        ``supplemental 
                                        nutrition assistance 
                                        program benefits''; and
                                            (bb) in clause 
                                        (ii)--
                    (AA) in the matter preceding subclause (I), 
                by striking ``a food stamp recipient'' and 
                inserting ``a member of a household that 
                receives supplemental nutrition assistance 
                program benefits''; and
                    (BB) by striking ``food stamp benefits'' 
                each place it appears and inserting 
                ``supplemental nutrition assistance program 
                benefits''; and
                                    (II) in subparagraphs (D) 
                                and (E), by striking ``food 
                                stamp recipients'' each place 
                                it appears and inserting 
                                ``members of households that 
                                receive supplemental nutrition 
                                assistance program benefits''.
            (4) Section 7 of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2016) is amended--
                    (A) in subsection (i)--
                            (i) in paragraph (3)(B)(ii), by 
                        striking ``food stamp households'' and 
                        inserting ``households receiving 
                        supplemental nutrition assistance 
                        program benefits''; and
                            (ii) in paragraph (7), by striking 
                        ``food stamp issuance'' and inserting 
                        ``supplemental nutrition assistance 
                        issuance''; and
                    (B) in subsection (k)--
                            (i) in paragraph (2), by striking 
                        ``food stamp benefits'' and inserting 
                        ``supplemental nutrition assistance 
                        program benefits''; and
                            (ii) in paragraph (3), by striking 
                        ``food stamp retail'' and inserting 
                        ``retail''.
            (5) Section 9(b)(1) of that Food and Nutrition Act 
        of 2008 (7 U.S.C. 2018(b)(1)) is amended by striking 
        ``food stamp households'' and inserting ``households 
        that receive supplemental nutrition assistance program 
        benefits''.
            (6) Section 11 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2020) is amended--
                    (A) in subsection (e)--
                            (i) by striking ``food stamps'' 
                        each place it appears and inserting 
                        ``supplemental nutrition assistance 
                        program benefits'';
                            (ii) by striking ``food stamp 
                        offices'' each place it appears and 
                        inserting ``supplemental nutrition 
                        assistance program offices'';
                            (iii) by striking ``food stamp 
                        office'' each place it appears and 
                        inserting ``supplemental nutrition 
                        assistance program office''; and
                            (iv) in paragraph (25)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``Simplified Food Stamp 
                                Program'' and inserting 
                                ``Simplified Supplemental 
                                Nutrition Assistance Program''; 
                                and
                                    (II) in subparagraph (A), 
                                by striking ``food stamp 
                                benefits'' and inserting 
                                ``supplemental nutrition 
                                assistance program benefits'';
                    (B) in subsection (k), by striking ``may 
                issue, upon request by the State agency, food 
                stamps'' and inserting ``may provide, on 
                request by the State agency, supplemental 
                nutrition assistance program benefits'';
                    (C) in subsection (l), by striking ``food 
                stamp participation'' and inserting 
                ``supplemental nutrition assistance program 
                participation'';
                    (D) in subsections (q) and (r), in the 
                subsection headings, by striking ``Food 
                Stamps'' each place it appears and inserting 
                ``Benefits'';
                    (E) in subsection (s), by striking ``food 
                stamp benefits'' each place it appears and 
                inserting ``supplemental nutrition assistance 
                program benefits''; and
                    (F) in subsection (t)(1)--
                            (i) in subparagraph (A), by 
                        striking ``food stamp application'' and 
                        inserting ``supplemental nutrition 
                        assistance program application''; and
                            (ii) in subparagraph (B), by 
                        striking ``food stamp benefits'' and 
                        inserting ``supplemental nutrition 
                        assistance program benefits''.
            (7) Section 14(b) of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2023(b)) is amended by striking ``food 
        stamp''.
            (8) Section 16 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2025) is amended--
                    (A) in subsection (a)(4), by striking 
                ``food stamp informational activities'' and 
                inserting ``informational activities relating 
                to the supplemental nutrition assistance 
                program'';
                    (B) in subsection (c)(9)(C), by striking 
                ``food stamp caseload'' and inserting ``the 
                caseload under the supplemental nutrition 
                assistance program''; and
                    (C) in subsection (h)(1)(E)(i), by striking 
                ``food stamp recipients'' and inserting 
                ``members of households receiving supplemental 
                nutrition assistance program benefits''.
            (9) Section 17 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2026) is amended--
                    (A) in subsection (a)(2), by striking 
                ``food stamp benefits'' each place it appears 
                and inserting ``supplemental nutrition 
                assistance program benefits'';
                    (B) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp 
                                benefits'' and inserting 
                                ``supplemental nutrition 
                                assistance program benefits''; 
                                and
                                    (II) in subparagraph (B)--
                                            (aa) in clause 
                                        (ii)(II), by striking 
                                        ``food stamp 
                                        recipients'' and 
                                        inserting 
                                        ``supplemental 
                                        nutrition assistance 
                                        program recipients'';
                                            (bb) in clause 
                                        (iii)(I), by striking 
                                        ``the State's food 
                                        stamp households'' and 
                                        inserting ``the number 
                                        of households in the 
                                        State receiving 
                                        supplemental nutrition 
                                        assistance program 
                                        benefits''; and
                                            (cc) in clause 
                                        (iv)(IV)(bb), by 
                                        striking ``food stamp 
                                        deductions'' and 
                                        inserting 
                                        ``supplemental 
                                        nutrition assistance 
                                        program deductions'';
                            (ii) in paragraph (2), by striking 
                        ``food stamp benefits'' and inserting 
                        ``supplemental nutrition assistance 
                        program benefits''; and
                            (iii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp 
                                employment'' and inserting 
                                ``supplemental nutrition 
                                assistance program 
                                employment'';
                                    (II) in subparagraph (B), 
                                by striking ``food stamp 
                                recipients'' and inserting 
                                ``supplemental nutrition 
                                assistance program 
                                recipients'';
                                    (III) in subparagraph (C), 
                                by striking ``food stamps'' and 
                                inserting ``supplemental 
                                nutrition assistance program 
                                benefits''; and
                                    (IV) in subparagraph (D), 
                                by striking ``food stamp 
                                benefits'' and inserting 
                                ``supplemental nutrition 
                                assistance program benefits'';
                    (C) in subsection (c), by striking ``food 
                stamps'' and inserting ``supplemental nutrition 
                assistance'';
                    (D) in subsection (d)--
                            (i) in paragraph (1)(B), by 
                        striking ``food stamp benefits'' and 
                        inserting ``supplemental nutrition 
                        assistance program benefits'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp 
                                allotments'' each place it 
                                appears and inserting 
                                ``allotments''; and
                                    (II) in subparagraph 
                                (C)(ii), by striking ``food 
                                stamp benefit'' and inserting 
                                ``supplemental nutrition 
                                assistance program benefits''; 
                                and
                            (iii) in paragraph (3)(E), by 
                        striking ``food stamp benefits'' and 
                        inserting ``supplemental nutrition 
                        assistance program benefits'';
                    (E) in subsections (e) and (f), by striking 
                ``food stamp benefits'' each place it appears 
                and inserting ``supplemental nutrition 
                assistance program benefits'';
                    (F) in subsection (g), in the first 
                sentence, by striking ``receipt of food stamp'' 
                and inserting ``receipt of supplemental 
                nutrition assistance program''; and
                    (G) in subsection (j), by striking ``food 
                stamp agencies'' and inserting ``supplemental 
                nutrition assistance program agencies''.
            (10) Section 18(a)(3)(A)(ii) of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is 
        amended by striking ``food stamps'' and inserting 
        ``supplemental nutrition assistance program benefits''.
            (11) Section 22 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2031) is amended--
                    (A) in the section heading, by striking 
                ``food stamp portion of minnesota family 
                investment plan'' and inserting ``minnesota 
                family investment project'';
                    (B) in subsections (b)(12) and (d)(3), by 
                striking ``the Food Stamp Act, as amended,'' 
                each place it appears and inserting ``this 
                Act''; and
                    (C) in subsection (g)(1), by striking ``the 
                Food Stamp Act of 1977 (7 U.S.C. 2011 et 
                seq.)'' and inserting ``this Act''.
            (12) Section 26 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2035) is amended--
                    (A) in the section heading, by striking 
                ``simplified food stamp program'' and inserting 
                ``simplified supplemental nutrition assistance 
                program''; and
                    (B) in subsection (b), by striking 
                ``simplified food stamp program'' and inserting 
                ``simplified supplemental nutrition assistance 
                program''.
    (b) Conforming Cross-References.--
            (1) In general.--Each provision of law described in 
        paragraph (2) is amended (as applicable)--
                    (A) by striking ``food stamp program'' each 
                place it appears and inserting ``supplemental 
                nutrition assistance program'';
                    (B) by striking ``Food Stamp Act of 1977'' 
                each place it appears and inserting ``Food and 
                Nutrition Act of 2008'';
                    (C) by striking ``Food Stamp Act'' each 
                place it appears and inserting ``Food and 
                Nutrition Act of 2008'';
                    (D) by striking ``food stamp'' each place 
                it appears and inserting ``supplemental 
                nutrition assistance program benefits'';
                    (E) by striking ``food stamps'' each place 
                it appears and inserting ``supplemental 
                nutrition assistance program benefits'';
                    (F) in each applicable title, subtitle, 
                chapter, subchapter, and section heading, by 
                striking ``food stamp act'' each place it 
                appears and inserting ``food and nutrition act 
                of 2008'';
                    (G) in each applicable subsection and 
                appropriations heading, by striking ``Food 
                Stamp Act'' each place it appears and inserting 
                ``Food and Nutrition Act of 2008'';
                    (H) in each applicable heading other than a 
                title, subtitle, chapter, subchapter, section, 
                subsection, or appropriations heading, by 
                striking ``food stamp act'' each place it 
                appears and inserting ``food and nutrition act 
                of 2008'';
                    (I) in each applicable title, subtitle, 
                chapter, subchapter, and section heading, by 
                striking ``food stamp program'' each place it 
                appears and inserting ``supplemental nutrition 
                assistance program'';
                    (J) in each applicable subsection and 
                appropriations heading, by striking ``Food 
                Stamp Program'' each place it appears and 
                inserting ``Supplemental Nutrition Assistance 
                Program'';
                    (K) in each applicable heading other than a 
                title, subtitle, chapter, subchapter, section, 
                subsection, or appropriations heading, by 
                striking ``food stamp program'' each place it 
                appears and inserting ``supplemental nutrition 
                assistance program'';
                    (L) in each applicable title, subtitle, 
                chapter, subchapter, and section heading, by 
                striking ``food stamps'' each place it appears 
                and inserting ``supplemental nutrition 
                assistance program benefits'';
                    (M) in each applicable subsection and 
                appropriations heading, by striking ``Food 
                Stamps'' each place it appears and inserting 
                ``Supplemental Nutrition Assistance Program 
                Benefits''; and
                    (N) in each applicable heading other than a 
                title, subtitle, chapter, subchapter, section, 
                subsection, or appropriations heading, by 
                striking ``food stamps'' each place it appears 
                and inserting ``supplemental nutrition 
                assistance program benefits''.
            (2) Provisions of law.--The provisions of law 
        referred to in paragraph (1) are the following:
                    (A) The Hunger Prevention Act of 1988 
                (Public Law 100-435; 102 Stat. 1645).
                    (B) The Food Stamp Program Improvements Act 
                of 1994 (Public Law 103-225; 108 Stat. 106).
                    (C) Title IV of the Farm Security and Rural 
                Investment Act of 2002 (Public Law 107-171; 116 
                Stat. 305).
                    (D) Section 2 of Public Law 103-205 (7 
                U.S.C. 2012 note).
                    (E) Section 807(b) of the Stewart B. 
                McKinney Homeless Assistance Act (7 U.S.C. 2014 
                note; Public Law 100-77).
                    (F) The Electronic Benefit Transfer 
                Interoperability and Portability Act of 2000 
                (Public Law 106-171; 114 Stat. 3).
                    (G) Section 502(b) of the Agricultural 
                Research, Extension, and Education Reform Act 
                of 1998 (7 U.S.C. 2025 note; Public Law 105-
                185).
                    (H) The National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3101 et seq.).
                    (I) The Emergency Food Assistance Act of 
                1983 (7 U.S.C. 7501 et seq.).
                    (J) The Immigration and Nationality Act (8 
                U.S.C. 1101 et seq.).
                    (K) Section 8119 of the Department of 
                Defense Appropriations Act, 1999 (10 U.S.C. 113 
                note; Public Law 105-262).
                    (L) The Armored Car Industry Reciprocity 
                Act of 1993 (15 U.S.C. 5901 et seq.).
                    (M) Title 18, United States Code.
                    (N) The Higher Education Act of 1965 (20 
                U.S.C. 1001 et seq.).
                    (O) The Internal Revenue Code of 1986.
                    (P) Section 650 of the Treasury and General 
                Government Appropriations Act, 2000 (26 U.S.C. 
                7801 note; Public Law 106-58).
                    (Q) The Wagner-Peysner Act (29 U.S.C. 49 et 
                seq.).
                    (R) The Workforce Investment Act of 1998 
                (29 U.S.C. 2801 et seq.).
                    (S) Title 31, United States Code.
                    (T) Title 37, United States Code.
                    (U) The Public Health Service Act (42 
                U.S.C. 201 et seq.).
                    (V) Titles II through XIX of the Social 
                Security Act (42 U.S.C. 401 et seq.).
                    (W) Section 406 of the Family Support Act 
                of 1988 (Public Law 100-485; 102 Stat. 2400).
                    (X) Section 232 of the Social Security Act 
                Amendments of 1994 (42 U.S.C. 1314a).
                    (Y) The United States Housing Act of 1937 
                (42 U.S.C. 1437 et seq.).
                    (Z) The Richard B. Russell National School 
                Lunch Act (42 U.S.C. 1751 et seq.).
                    (AA) The Child Nutrition Act of 1966 (42 
                U.S.C. 1771 et seq.).
                    (BB) The Older Americans Act of 1965 (42 
                U.S.C. 3001 et seq.).
                    (CC) Section 208 of the Intergovernmental 
                Personnel Act of 1970 (42 U.S.C. 4728).
                    (DD) The Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.).
                    (EE) The Low-Income Home Energy Assistance 
                Act of 1981 (42 U.S.C. 8621 et seq.).
                    (FF) Section 658K of the Child Care and 
                Development Block Grant Act of 1990 (42 U.S.C. 
                9858i).
                    (GG) The Alaska Native Claims Settlement 
                Act (43 U.S.C. 1601 et seq.).
                    (HH) Public Law 95-348 (92 Stat. 487).
                    (II) The Agriculture and Food Act of 1981 
                (Public Law 97-98; 95 Stat. 1213).
                    (JJ) The Disaster Assistance Act of 1988 
                (Public Law 100-387; 102 Stat. 924).
                    (KK) The Food, Agriculture, Conservation, 
                and Trade Act of 1990 (Public Law 101-624; 104 
                Stat. 3359).
                    (LL) The Cranston-Gonzalez National 
                Affordable Housing Act (Public Law 101-625; 104 
                Stat. 4079).
                    (MM) Section 388 of the Persian Gulf 
                Conflict Supplemental Authorization and 
                Personnel Benefits Act of 1991 (Public Law 102-
                25; 105 Stat. 98).
                    (NN) The Food, Agriculture, Conservation, 
                and Trade Act Amendments of 1991 (Public Law 
                102-237; 105 Stat. 1818).
                    (OO) The Act of March 26, 1992 (Public Law 
                102-265; 106 Stat. 90).
                    (PP) Public Law 105-379 (112 Stat. 3399).
                    (QQ) Section 101(c) of the Emergency 
                Supplemental Act, 2000 (Public Law 106-246; 114 
                Stat. 528).
    (c) References.--Any reference in any Federal, State, 
tribal, or local law (including regulations) to the ``food 
stamp program'' established under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.) shall be considered to be a 
reference to the ``supplemental nutrition assistance program'' 
established under that Act.

                     PART II--BENEFIT IMPROVEMENTS

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

    Section 5(d) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014(d)) is amended--
            (1) by striking ``(d) Household'' and inserting 
        ``(d) Exclusions From Income.--Household'';
            (2) by striking ``only (1) any'' and inserting 
        ``only--
            ``(1) any'';
            (3) by indenting each of paragraphs (2) through 
        (18) so as to align with the margin of paragraph (1) 
        (as amended by paragraph (2));
            (4) by striking the comma at the end of each of 
        paragraphs (1) through (16) and inserting a semicolon;
            (5) in paragraph (3)--
                    (A) by striking ``like (A) awarded'' and 
                inserting ``like--
                    ``(A) awarded'';
                    (B) by striking ``thereof, (B) to'' and 
                inserting ``thereof;
                    ``(B) to''; and
                    (C) by striking ``program, and (C) to'' and 
                inserting ``program; and
                    ``(C) to'';
            (6) in paragraph (11), by striking ``)), or (B) a'' 
        and inserting ``)); or
            ``(B) a'';
            (7) in paragraph (17), by striking ``, and'' at the 
        end and inserting a semicolon;
            (8) in paragraph (18), by striking the period at 
        the end and inserting ``; and''; and
            (9) by adding at the end the following:
            ``(19) any additional payment under chapter 5 of 
        title 37, United States Code, or otherwise designated 
        by the Secretary to be appropriate for exclusion under 
        this paragraph, that is received by or from a member of 
        the United States Armed Forces deployed to a designated 
        combat zone, if the additional pay--
                    ``(A) is the result of deployment to or 
                service in a combat zone; and
                    ``(B) was not received immediately prior to 
                serving in a combat zone.''.

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

    Section 5(e)(1) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014(e)(1)) is amended--
            (1) in subparagraph (A)(ii), by striking ``not less 
        than $134'' and all that follows through the end of the 
        clause and inserting the following: ``not less than--
                                    ``(I) for fiscal year 2009, 
                                $144, $246, $203, and $127, 
                                respectively; and
                                    ``(II) for fiscal year 2010 
                                and each fiscal year 
                                thereafter, an amount that is 
                                equal to the amount from the 
                                previous fiscal year adjusted 
                                to the nearest lower dollar 
                                increment to reflect changes 
                                for the 12-month period ending 
                                on the preceding June 30 in the 
                                Consumer Price Index for All 
                                Urban Consumers published by 
                                the Bureau of Labor Statistics 
                                of the Department of Labor, for 
                                items other than food.'';
            (2) in subparagraph (B)(ii), by striking ``not less 
        than $269'' and all that follows through the end of the 
        clause and inserting the following: ``not less than--
                                    ``(I) for fiscal year 2009, 
                                $289; and
                                    ``(II) for fiscal year 2010 
                                and each fiscal year 
                                thereafter, an amount that is 
                                equal to the amount from the 
                                previous fiscal year adjusted 
                                to the nearest lower dollar 
                                increment to reflect changes 
                                for the 12-month period ending 
                                on the preceding June 30 in the 
                                Consumer Price Index for All 
                                Urban Consumers published by 
                                the Bureau of Labor Statistics 
                                of the Department of Labor, for 
                                items other than food.''; and
            (3) by adding at the end the following:
                    ``(C) Requirement.--Each adjustment under 
                subparagraphs (A)(ii)(II) and (B)(ii)(II) shall 
                be based on the unrounded amount for the prior 
                12-month period.''.

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

    Section 5(e)(3)(A) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014(e)(3)(A)) is amended by striking ``, the maximum 
allowable level of which shall be $200 per month for each 
dependent child under 2 years of age and $175 per month for 
each other dependent,''.

SEC. 4104. ASSET INDEXATION, EDUCATION, AND RETIREMENT ACCOUNTS.

    (a) Adjusting Countable Resources for Inflation.--Section 
(5)(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) 
is amended--
            (1) by striking ``(g)(1) The Secretary'' and 
        inserting the following:
    ``(g) Allowable Financial Resources.--
            ``(1) Total amount.--
                    ``(A) In general.--The Secretary''.
            (2) in subparagraph (A) (as so designated by 
        paragraph (1))--
                    (A) by inserting ``(as adjusted in 
                accordance with subparagraph (B))'' after 
                ``$2,000''; and
                    (B) by inserting ``(as adjusted in 
                accordance with subparagraph (B))'' after 
                ``$3,000''; and
            (3) by adding at the end the following:
                    ``(B) Adjustment for inflation.--
                            ``(i) In general.--Beginning on 
                        October 1, 2008, and each October 1 
                        thereafter, the amounts specified in 
                        subparagraph (A) shall be adjusted and 
                        rounded down to the nearest $250 
                        increment to reflect changes for the 
                        12-month period ending the preceding 
                        June in the Consumer Price Index for 
                        All Urban Consumers published by the 
                        Bureau of Labor Statistics of the 
                        Department of Labor.
                            ``(ii) Requirement.--Each 
                        adjustment under clause (i) shall be 
                        based on the unrounded amount for the 
                        prior 12-month period.''.
    (b) Exclusion of Retirement Accounts From Allowable 
Financial Resources.--
            (1) In general.--Section 5(g)(2)(B)(v) of the Food 
        and Nutrition Act of 2008 (7 U.S.C. 2014(g)(2)(B)(v)) 
        is amended by striking ``or retirement account 
        (including an individual account)'' and inserting 
        ``account''.
            (2) Mandatory and discretionary exclusions.--
        Section 5(g) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2014(g)) is amended by adding at the end the 
        following:
            ``(7) Exclusion of retirement accounts from 
        allowable financial resources.--
                    ``(A) Mandatory exclusions.--The Secretary 
                shall exclude from financial resources under 
                this subsection the value of--
                            ``(i) any funds in a plan, 
                        contract, or account, described in 
                        sections 401(a), 403(a), 403(b), 408, 
                        408A, 457(b), and 501(c)(18) of the 
                        Internal Revenue Code of 1986 and the 
                        value of funds in a Federal Thrift 
                        Savings Plan account as provided in 
                        section 8439 of title 5, United States 
                        Code; and
                            ``(ii) any retirement program or 
                        account included in any successor or 
                        similar provision that may be enacted 
                        and determined to be exempt from tax 
                        under the Internal Revenue Code of 
                        1986.
                    ``(B) Discretionary exclusions.--The 
                Secretary may exclude from financial resources 
                under this subsection the value of any other 
                retirement plans, contracts, or accounts (as 
                determined by the Secretary).''.
    (c) Exclusion of Education Accounts From Allowable 
Financial Resources.--Section 5(g) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2014(g)) (as amended by subsection (b)) 
is amended by adding at the end the following:
            ``(8) Exclusion of education accounts from 
        allowable financial resources.--
                    ``(A) Mandatory exclusions.--The Secretary 
                shall exclude from financial resources under 
                this subsection the value of any funds in a 
                qualified tuition program described in section 
                529 of the Internal Revenue Code of 1986 or in 
                a Coverdell education savings account under 
                section 530 of that Code.
                    ``(B) Discretionary exclusions.--The 
                Secretary may exclude from financial resources 
                under this subsection the value of any other 
                education programs, contracts, or accounts (as 
                determined by the Secretary).''.

SEC. 4105. FACILITATING SIMPLIFIED REPORTING.

    Section 6(c)(1)(A) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015(c)(1)(A)) is amended--
            (1) by striking ``reporting by'' and inserting 
        ``reporting'';
            (2) in clause (i), by inserting ``for periods 
        shorter than 4 months by'' before ``migrant'';
            (3) in clause (ii), by inserting ``for periods 
        shorter than 4 months by'' before ``households''; and
            (4) in clause (iii), by inserting ``for periods 
        shorter than 1 year by'' before ``households''.

SEC. 4106. TRANSITIONAL BENEFITS OPTION.

    Section 11(s)(1) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2020(s)(1)) is amended--
            (1) by striking ``benefits to a household''; and 
        inserting ``benefits--
                    ``(A) to a household'';
            (2) by striking the period at the end and inserting 
        ``; or''; and
            (3) by adding at the end the following:
                    ``(B) at the option of the State, to a 
                household with children that ceases to receive 
                cash assistance under a State-funded public 
                assistance program.''.

SEC. 4107. INCREASING THE MINIMUM BENEFIT.

    Section 8(a) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2017(a)) is amended by striking ``$10 per month'' and 
inserting ``8 percent of the cost of the thrifty food plan for 
a household containing 1 member, as determined by the Secretary 
under section 3, rounded to the nearest whole dollar 
increment''.

SEC. 4108. EMPLOYMENT, TRAINING, AND JOB RETENTION.

    Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015(d)(4)) is amended--
            (1) in subparagraph (B)--
                    (A) by redesignating clause (vii) as clause 
                (viii); and
                    (B) by inserting after clause (vi) the 
                following:
                            ``(vii) Programs intended to ensure 
                        job retention by providing job 
                        retention services, if the job 
                        retention services are provided for a 
                        period of not more than 90 days after 
                        an individual who received employment 
                        and training services under this 
                        paragraph gains employment.''; and
            (2) in subparagraph (F), by adding at the end the 
        following:
                            ``(iii) Any individual voluntarily 
                        electing to participate in a program 
                        under this paragraph shall not be 
                        subject to the limitations described in 
                        clauses (i) and (ii).''.

                      PART III--PROGRAM OPERATIONS

SEC. 4111. NUTRITION EDUCATION.

    (a) Authority to Provide Nutrition Education.--Section 4(a) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is 
amended in the first sentence by inserting ``and, through an 
approved State plan, nutrition education'' after ``an 
allotment''.
    (b) Implementation.--Section 11 of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2020) is amended by striking subsection 
(f) and inserting the following:
    ``(f) Nutrition Education.--
            ``(1) In general.--State agencies may implement a 
        nutrition education program for individuals eligible 
        for program benefits that promotes healthy food choices 
        consistent with the most recent Dietary Guidelines for 
        Americans published under section 301 of the National 
        Nutrition Monitoring and Related Research Act of 1990 
        (7 U.S.C. 5341).
            ``(2) Delivery of nutrition education.--State 
        agencies may deliver nutrition education directly to 
        eligible persons or through agreements with the 
        National Institute of Food and Agriculture, including 
        through the expanded food and nutrition education 
        program under section 3(d) of the Act of May 8, 1914 (7 
        U.S.C. 343(d)), and other State and community health 
        and nutrition providers and organizations.
            ``(3) Nutrition education state plans.--
                    ``(A) In general.--A State agency that 
                elects to provide nutrition education under 
                this subsection shall submit a nutrition 
                education State plan to the Secretary for 
                approval.
                    ``(B) Requirements.--The plan shall--
                            ``(i) identify the uses of the 
                        funding for local projects; and
                            ``(ii) conform to standards 
                        established by the Secretary through 
                        regulations or guidance.
                    ``(C) Reimbursement.--State costs for 
                providing nutrition education under this 
                subsection shall be reimbursed pursuant to 
                section 16(a).
            ``(4) Notification.--To the maximum extent 
        practicable, State agencies shall notify applicants, 
        participants, and eligible program participants of the 
        availability of nutrition education under this 
        subsection.''.

SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

    Section 6(k) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015(k)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting 
        appropriately;
            (2) by striking ``No member'' and inserting the 
        following:
            ``(1) In general.--No member''; and
            (3) by adding at the end the following:
            ``(2) Procedures.--The Secretary shall--
                    ``(A) define the terms `fleeing' and 
                `actively seeking' for purposes of this 
                subsection; and
                    ``(B) ensure that State agencies use 
                consistent procedures established by the 
                Secretary that disqualify individuals whom law 
                enforcement authorities are actively seeking 
                for the purpose of holding criminal proceedings 
                against the individual.''.

SEC. 4113. CLARIFICATION OF SPLIT ISSUANCE.

    Section 7(h) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2016(h)) is amended by striking paragraph (2) and 
inserting the following:
            ``(2) Requirements.--
                    ``(A) In general.--Any procedure 
                established under paragraph (1) shall--
                            ``(i) not reduce the allotment of 
                        any household for any period; and
                            ``(ii) ensure that no household 
                        experiences an interval between 
                        issuances of more than 40 days.
                    ``(B) Multiple issuances.--The procedure 
                may include issuing benefits to a household in 
                more than 1 issuance during a month only when a 
                benefit correction is necessary.''.

SEC. 4114. ACCRUAL OF BENEFITS.

    Section 7(i) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2016(i)) is amended by adding at the end the following:
            ``(12) Recovering electronic benefits.--
                    ``(A) In general.--A State agency shall 
                establish a procedure for recovering electronic 
                benefits from the account of a household due to 
                inactivity.
                    ``(B) Benefit storage.--A State agency may 
                store recovered electronic benefits off-line in 
                accordance with subparagraph (D), if the 
                household has not accessed the account after 6 
                months.
                    ``(C) Benefit expunging.--A State agency 
                shall expunge benefits that have not been 
                accessed by a household after a period of 12 
                months.
                    ``(D) Notice.--A State agency shall--
                            ``(i) send notice to a household 
                        the benefits of which are stored under 
                        subparagraph (B); and
                            ``(ii) not later than 48 hours 
                        after request by the household, make 
                        the stored benefits available to the 
                        household.''.

SEC. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS.

    (a) In General.--Section 7 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2016) is amended--
            (1) by striking the section designation and heading 
        and all that follows through ``subsection (j)) shall 
        be'' and inserting the following:

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

    ``(a) In General.--Except as provided in subsection (i), 
EBT cards shall be'';
            (2) in subsection (b)--
                    (A) by striking ``(b) Coupons'' and 
                inserting the following:
    ``(b) Use.--Benefits''; and
                    (B) by striking the second proviso;
            (3) in subsection (c)--
                    (A) by striking ``(c) Coupons'' and 
                inserting the following:
    ``(c) Design.--
            ``(1) In general.--EBT cards'';
                    (B) in the first sentence, by striking 
                ``and define their denomination''; and
                    (C) by striking the second sentence and 
                inserting the following:
            ``(2) Prohibition.--The name of any public official 
        shall not appear on any EBT card.'';
            (4) by striking subsection (d);
            (5) in subsection (e)--
                    (A) by striking ``coupons'' each place it 
                appears and inserting ``benefits''; and
                    (B) by striking ``coupon issuers'' each 
                place it appears and inserting ``benefit 
                issuers'';
            (6) in subsection (f)--
                    (A) by striking ``coupons'' each place it 
                appears and inserting ``benefits'';
                    (B) by striking ``coupon issuer'' and 
                inserting ``benefit issuers'';
                    (C) by striking ``including any losses'' 
                and all that follows through ``section 
                11(e)(20),''; and
                    (D) by striking ``and allotments'';
            (7) by striking subsection (g) and inserting the 
        following:
    ``(g) Alternative Benefit Delivery.--
            ``(1) In general.--If the Secretary determines, in 
        consultation with the Inspector General of the 
        Department of Agriculture, that it would improve the 
        integrity of the supplemental nutrition assistance 
        program, the Secretary shall require a State agency to 
        issue or deliver benefits using alternative methods.
            ``(2) No imposition of costs.--The cost of 
        documents or systems that may be required by this 
        subsection may not be imposed upon a retail food store 
        participating in the supplemental nutrition assistance 
        program.
            ``(3) Devaluation and termination of issuance of 
        paper coupons.--
                    ``(A) Coupon issuance.--Effective on the 
                date of enactment of the Food, Conservation, 
                and Energy Act of 2008, no State shall issue 
                any coupon, stamp, certificate, or 
                authorization card to a household that receives 
                supplemental nutrition assistance under this 
                Act.
                    ``(B) EBT cards.--Effective beginning on 
                the date that is 1 year after the date of 
                enactment of the Food, Conservation, and Energy 
                Act of 2008, only an EBT card issued under 
                subsection (i) shall be eligible for exchange 
                at any retail food store.
                    ``(C) De-obligation of coupons.--Coupons 
                not redeemed during the 1-year period beginning 
                on the date of enactment of the Food, 
                Conservation, and Energy Act of 2008 shall--
                            ``(i) no longer be an obligation of 
                        the Federal Government; and
                            ``(ii) not be redeemable.'';
            (8) in subsection (h)(1), by striking ``coupons'' 
        and inserting ``benefits'';
            (9) in subsection (i), by adding at the end the 
        following:
            ``(12) Interchange fees.--No interchange fees shall 
        apply to electronic benefit transfer transactions under 
        this subsection.'';
            (10) in subsection (j)--
                    (A) in paragraph (2)(A)(ii), by striking 
                ``printing, shipping, and redeeming coupons'' 
                and inserting ``issuing and redeeming 
                benefits''; and
                    (B) in paragraph (5), by striking 
                ``coupon'' and inserting ``benefit'';
            (11) in subsection (k)--
                    (A) by striking ``coupons in the form of'' 
                each place it appears and inserting ``program 
                benefits in the form of'';
                    (B) by striking ``a coupon issued in the 
                form of'' each place it appears and inserting 
                ``program benefits in the form of''; and
                    (C) in subparagraph (A), by striking 
                ``subsection (i)(11)(A)'' and inserting 
                ``subsection (h)(11)(A)''; and
            (12) by redesignating subsections (e) through (k) 
        as subsections (d) through (j), respectively.
    (b) Conforming Amendments.--
            (1) Section 3 of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2012) is amended--
                    (A) in subsection (a), by striking 
                ``coupons'' and inserting ``benefits'';
                    (B) by striking subsection (b) and 
                inserting the following:
    ``(b) Benefit.--The term `benefit' means the value of 
supplemental nutrition assistance provided to a household by 
means of--
            ``(1) an electronic benefit transfer under section 
        7(i); or
            ``(2) other means of providing assistance, as 
        determined by the Secretary.'';
                    (C) in subsection (c), in the first 
                sentence, by striking ``authorization cards'' 
                and inserting ``benefits'';
                    (D) in subsection (d), by striking ``or 
                access device'' and all that follows through 
                the end of the subsection and inserting a 
                period;
                    (E) in subsection (e)--
                            (i) by striking ``(e) `Coupon 
                        issuer' means'' and inserting the 
                        following:
    ``(e) Benefit Issuer.--The term `benefit issuer' means''; 
and
                            (ii) by striking ``coupons'' and 
                        inserting ``benefits'';
                    (F) in subsection (g)(7), by striking 
                ``subsection (r)'' and inserting ``subsection 
                (j)'';
                    (G) in subsection (i)(5)--
                            (i) in subparagraph (B), by 
                        striking ``subsection (r)'' and 
                        inserting ``subsection (j)''; and
                            (ii) in subparagraph (D), by 
                        striking ``coupons'' and inserting 
                        ``benefits'';
                    (H) in subsection (j), by striking ``(as 
                that term is defined in subsection (p))'';
                    (I) in subsection (k)--
                            (i) in paragraph (1)(A), by 
                        striking ``subsection (u)(1)'' and 
                        inserting ``subsection (r)(1)'';
                            (ii) in paragraph (2), by striking 
                        ``subsections (g)(3), (4), (5), (7), 
                        (8), and (9) of this section'' and 
                        inserting ``paragraphs (3), (4), (5), 
                        (7), (8), and (9) of subsection (k)''; 
                        and
                            (iii) in paragraph (3), by striking 
                        ``subsection (g)(6) of this section'' 
                        and inserting ``subsection (k)(6)'';
                    (J) in subsection (t), by inserting ``, 
                including point of sale devices,'' after 
                ``other means of access'';
                    (K) in subsection (u), by striking ``(as 
                defined in subsection (g))'';
                    (L) by adding at the end the following:
    ``(v) EBT Card.--The term `EBT card' means an electronic 
benefit transfer card issued under section 7(i).''; and
                    (M) by redesignating subsections (a) 
                through (v) as subsections (b), (d), (f), (g), 
                (e), (h), (k), (l), (n), (o), (p), (q), (s), 
                (t), (u), (v), (c), (j), (m), (a), (r), and 
                (i), respectively, and moving the subsections 
                so as to appear in alphabetical order.
            (2) Section 4(a) of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2013(a)) is amended--
                    (A) by striking ``coupons'' each place it 
                appears and inserting ``benefits''; and
                    (B) by striking ``Coupons issued'' and 
                inserting ``benefits issued''.
            (3) Section 5 of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2014) is amended--
                    (A) in subsection (a), by striking 
                ``section 3(i)(4)'' and inserting ``section 
                3(n)(4)'';
                    (B) in subsection (h)(3)(B), in the second 
                sentence, by striking ``section 7(i)'' and 
                inserting ``section 7(h)''; and
                    (C) in subsection (i)(2)(E), by striking 
                ``, as defined in section 3(i) of this Act,''.
            (4) Section 6 of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2015) is amended--
                    (A) in subsection (b)(1)--
                            (i) in subparagraph (B), by 
                        striking ``coupons or authorization 
                        cards'' and inserting ``program 
                        benefits''; and
                            (ii) by striking ``coupons'' each 
                        place it appears and inserting 
                        ``benefits''; and
                    (B) in subsection (d)(4)(L), by striking 
                ``section 11(e)(22)'' and inserting ``section 
                11(e)(19)''.
            (5) Section 8 of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2017) is amended--
                    (A) in subsection (b), by striking ``, 
                whether through coupons, access devices, or 
                otherwise''; and
                    (B) in subsections (e)(1) and (f), by 
                striking ``section 3(i)(5)'' each place it 
                appears and inserting ``section 3(n)(5)''.
            (6) Section 9 of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2018) is amended--
                    (A) by striking ``coupons'' each place it 
                appears and inserting ``benefits'';
                    (B) in subsection (a)--
                            (i) in paragraph (1), by striking 
                        ``coupon business'' and inserting 
                        ``benefit transactions''; and
                            (ii) by striking paragraph (3) and 
                        inserting the following:
            ``(3) Authorization periods.--The Secretary shall 
        establish specific time periods during which 
        authorization to accept and redeem benefits shall be 
        valid under the supplemental nutrition assistance 
        program.''; and
                    (C) in subsection (g), by striking 
                ``section 3(g)(9)'' and inserting ``section 
                3(k)(9)''.
            (7) Section 10 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2019) is amended--
                    (A) by striking the section designation and 
                heading and all that follows through 
                ``Regulations'' and inserting the following:

``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.

    ``Regulations'';
                    (B) by striking ``section 3(k)(4) of this 
                Act'' and inserting ``section 3(p)(4)'';
                    (C) by striking ``section 7(i)'' and 
                inserting ``section 7(h)''; and
                    (D) by striking ``coupons'' each place it 
                appears and inserting ``benefits''.
            (8) Section 11 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2020) is amended--
                    (A) in subsection (d)--
                            (i) by striking ``section 3(n)(1) 
                        of this Act'' each place it appears and 
                        inserting ``section 3(t)(1)''; and
                            (ii) by striking ``section 3(n)(2) 
                        of this Act'' each place it appears and 
                        inserting ``section 3(t)(2)'';
                    (B) in subsection (e)--
                            (i) in paragraph (8)(E), by 
                        striking ``paragraph (16) or (20)(B)'' 
                        and inserting ``paragraph (15) or 
                        (18)(B)'';
                            (ii) by striking paragraphs (15) 
                        and (19);
                            (iii) by redesignating paragraphs 
                        (16) through (18) and (20) through (25) 
                        as paragraphs (15) through (17) and 
                        (18) through (23), respectively; and
                            (iv) in paragraph (17) (as so 
                        redesignated), by striking ``(described 
                        in section 3(n)(1) of this Act)'' and 
                        inserting ``described in section 
                        3(t)(1)'';
                    (C) in subsection (h), by striking ``coupon 
                or coupons'' and inserting ``benefits'';
                    (D) by striking ``coupon'' each place it 
                appears and inserting ``benefit'';
                    (E) by striking ``coupons'' each place it 
                appears and inserting ``benefits''; and
                    (F) in subsection (q), by striking 
                ``section 11(e)(20)(B)'' and inserting 
                ``subsection (e)(18)(B)''.
            (9) Section 13 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2022) is amended by striking ``coupons'' 
        each place it appears and inserting ``benefits''.
            (10) Section 15 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2024) is amended--
                    (A) in subsection (a), by striking 
                ``coupons'' and inserting ``benefits'';
                    (B) in subsection (b)(1)--
                            (i) by striking ``coupons, 
                        authorization cards, or access 
                        devices'' each place it appears and 
                        inserting ``benefits'';
                            (ii) by striking ``coupons or 
                        authorization cards'' and inserting 
                        ``benefits''; and
                            (iii) by striking ``access device'' 
                        each place it appears and inserting 
                        ``benefit'';
                    (C) in subsection (c), by striking 
                ``coupons'' each place it appears and inserting 
                ``benefits'';
                    (D) in subsection (d), by striking 
                ``Coupons'' and inserting ``Benefits'';
                    (E) by striking subsections (e) and (f);
                    (F) by redesignating subsections (g) and 
                (h) as subsections (e) and (f), respectively; 
                and
                    (G) in subsection (e) (as so redesignated), 
                by striking ``coupon, authorization cards or 
                access devices'' and inserting ``benefits''.
            (11) Section 16(a) of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2025(a)) is amended by striking 
        ``coupons'' each place it appears and inserting 
        ``benefits''.
            (12) Section 17 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2026) is amended--
                    (A) in subsection (a)(2), by striking 
                ``coupon'' and inserting ``benefit'';
                    (B) in subsection (b)(1)--
                            (i) in subparagraph (B)--
                                    (I) in clause (iv)--
                                            (aa) in subclause 
                                        (I), inserting ``or 
                                        otherwise providing 
                                        benefits in a form not 
                                        restricted to the 
                                        purchase of food'' 
                                        after ``of cash'';
                                            (bb) in subclause 
                                        (III)(aa), by striking 
                                        ``section 3(i)'' and 
                                        inserting ``section 
                                        3(n)''; and
                                            (cc) in subclause 
                                        (VII), by striking 
                                        ``section 7(j)'' and 
                                        inserting ``section 
                                        7(i)''; and
                                    (II) in clause (v)--
                                            (aa) by striking 
                                        ``countersigned food 
                                        coupons or similar''; 
                                        and
                                            (bb) by striking 
                                        ``food coupons'' and 
                                        inserting ``EBT 
                                        cards''; and
                            (ii) in subparagraph (C)(i)(I), by 
                        striking ``coupons'' and inserting 
                        ``EBT cards'';
                    (C) in subsection (f), by striking 
                ``section 7(g)(2)'' and inserting ``section 
                7(f)(2)''; and
                    (D) in subsection (j), by striking 
                ``coupon'' and inserting ``benefit''.
            (13) Section 19(a)(2)(A)(ii) of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is 
        amended by striking ``section 3(o)(4)'' and inserting 
        ``section 3(u)(4)''.
            (14) Section 21 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2030) is repealed.
            (15) Section 22 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2031) is amended--
                    (A) by striking ``food coupons'' each place 
                it appears and inserting ``benefits'';
                    (B) by striking ``coupons'' each place it 
                appears and inserting ``benefits''; and
                    (C) in subsection (g)(1)(A), by striking 
                ``coupon'' and inserting ``benefits''.
            (16) Section 26(f)(3) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2035(f)(3)) is amended--
                    (A) in subparagraph (A), by striking 
                ``subsections (a) through (g)'' and inserting 
                ``subsections (a) through (f)''; and
                    (B) in subparagraph (E), by striking 
                ``(16), (18), (20), (24), and (25)'' and 
                inserting ``(15), (17), (18), (22), and (23)''.
    (c) Conforming Cross-References.--
            (1) In general.--
                    (A) Use of terms.--Each provision of law 
                described in subparagraph (B) is amended (as 
                applicable)--
                            (i) by striking ``coupons'' each 
                        place it appears and inserting 
                        ``benefits'';
                            (ii) by striking ``coupon'' each 
                        place it appears and inserting 
                        ``benefit'';
                            (iii) by striking ``food coupons'' 
                        each place it appears and inserting 
                        ``benefits'';
                            (iv) in each section heading, by 
                        striking ``food coupons'' each place it 
                        appears and inserting ``benefits'';
                            (v) by striking ``food stamp 
                        coupon'' each place it appears and 
                        inserting ``benefit''; and
                            (vi) by striking ``food stamps'' 
                        each place it appears and inserting 
                        ``benefits''.
                    (B) Provisions of law.--The provisions of 
                law referred to in subparagraph (A) are the 
                following:
                            (i) Section 2 of Public Law 103-205 
                        (7 U.S.C. 2012 note; 107 Stat. 2418).
                            (ii) Section 1956(c)(7)(D) of title 
                        18, United States Code.
                            (iii) Titles II through XIX of the 
                        Social Security Act (42 U.S.C. 401 et 
                        seq.).
                            (iv) Section 401(b)(3) of the 
                        Social Security Amendments of 1972 (42 
                        U.S.C. 1382e note; Public Law 92-603).
                            (v) The Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act (42 
                        U.S.C. 5121 et seq.).
                            (vi) Section 802(d)(2)(A)(i)(II) of 
                        the Cranston-Gonzalez National 
                        Affordable Housing Act (42 U.S.C. 
                        8011(d)(2)(A)(i)(II)).
            (2) Definition references.--
                    (A) Section 2 of Public Law 103-205 (7 
                U.S.C. 2012 note; 107 Stat. 2418) is amended by 
                striking ``section 3(k)(1)'' and inserting 
                ``section 3(p)(1)''.
                    (B) Section 205 of the Food Stamp Program 
                Improvements Act of 1994 (7 U.S.C. 2012 note; 
                Public Law 103-225) is amended by striking 
                ``section 3(k) of such Act (as amended by 
                section 201)'' and inserting ``section 3(p) of 
                that Act''.
                    (C) Section 115 of the Personal 
                Responsibility and Work Opportunity 
                Reconciliation Act of 1996 (21 U.S.C. 862a) is 
                amended--
                            (i) by striking ``section 3(h)'' 
                        each place it appears and inserting 
                        ``section 3(l)''; and
                            (ii) in subsection (e)(2), by 
                        striking ``section 3(m)'' and inserting 
                        ``section 3(s)''.
                    (D) Section 402(a) of the Personal 
                Responsibility and Work Opportunity 
                Reconciliation Act of 1996 (8 U.S.C. 1612(a)) 
                is amended--
                            (i) in paragraph (2)(F)(ii), by 
                        striking ``section 3(r)'' and inserting 
                        ``section 3(j)''; and
                            (ii) in paragraph (3)(B), by 
                        striking ``section 3(h)'' and inserting 
                        ``section 3(l)''.
                    (E) Section 3803(c)(2)(C)(vii) of title 31, 
                United States Code, is amended by striking 
                ``section 3(h)'' and inserting ``section 
                3(l)''.
                    (F) Section 303(d)(4) of the Social 
                Security Act (42 U.S.C. 503(d)(4)) is amended 
                by striking ``section 3(n)(1)'' and inserting 
                ``section 3(t)(1)''.
                    (G) Section 404 of the Social Security Act 
                (42 U.S.C. 604) is amended by striking 
                ``section 3(h)'' each place it appears and 
                inserting ``section 3(l)''.
                    (H) Section 531 of the Social Security Act 
                (42 U.S.C. 654) is amended by striking 
                ``section 3(h)'' each place it appears and 
                inserting ``section 3(l)''.
                    (I) Section 802(d)(2)(A)(i)(II) of the 
                Cranston-Gonzalez National Affordable Housing 
                Act (42 U.S.C. 8011(d)(2)(A)(i)(II)) is amended 
                by striking ``(as defined in section 3(e) of 
                such Act)''.
    (d) References.--Any reference in any Federal, State, 
tribal, or local law (including regulations) to a ``coupon'', 
``authorization card'', or other access device provided under 
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 
shall be considered to be a reference to a ``benefit'' provided 
under that Act.

SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

    Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020) is amended by striking the section enumerator and heading 
and subsection (a) and inserting the following:

``SEC. 11. ADMINISTRATION.

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

SEC. 4117. CIVIL RIGHTS COMPLIANCE.

    Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020) is amended by striking subsection (c) and inserting the 
following:
    ``(c) Civil Rights Compliance.--
            ``(1) In general.--In the certification of 
        applicant households for the supplemental nutrition 
        assistance program, there shall be no discrimination by 
        reason of race, sex, religious creed, national origin, 
        or political affiliation.
            ``(2) Relation to other laws.--The administration 
        of the program by a State agency shall be consistent 
        with the rights of households under the following laws 
        (including implementing regulations):
                    ``(A) The Age Discrimination Act of 1975 
                (42 U.S.C. 6101 et seq.).
                    ``(B) Section 504 of the Rehabilitation Act 
                of 1973 (29 U.S.C. 794).
                    ``(C) The Americans with Disabilities Act 
                of 1990 (42 U.S.C. 12101 et seq.).
                    ``(D) Title VI of the Civil Rights Act of 
                1964 (42 U.S.C. 2000d et seq.).''.

SEC. 4118. CODIFICATION OF ACCESS RULES.

    Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2020(e)(1)) is amended--
            (1) by striking ``shall (A) at'' and inserting 
        ``shall--
                    ``(A) at''; and
            (2) by striking ``and (B) use'' and inserting ``and
                    ``(B) comply with regulations of the 
                Secretary requiring the use of''.

SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE.

    Section 11(e)(2)(C) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2020(e)(2)(C)) is amended--
            (1) by striking ``(C) Nothing in this Act'' and 
        inserting the following:
                    ``(C) Electronic and automated systems.--
                            ``(i) In general.--Nothing in this 
                        Act''; and
            (2) by adding at the end the following:
                            ``(ii) State option for telephonic 
                        signature.--A State agency may 
                        establish a system by which an 
                        applicant household may sign an 
                        application through a recorded verbal 
                        assent over the telephone.
                            ``(iii) Requirements.--A system 
                        established under clause (ii) shall--
                                    ``(I) record for future 
                                reference the verbal assent of 
                                the household member and the 
                                information to which assent was 
                                given;
                                    ``(II) include effective 
                                safeguards against 
                                impersonation, identity theft, 
                                and invasions of privacy;
                                    ``(III) not deny or 
                                interfere with the right of the 
                                household to apply in writing;
                                    ``(IV) promptly provide to 
                                the household member a written 
                                copy of the completed 
                                application, with instructions 
                                for a simple procedure for 
                                correcting any errors or 
                                omissions;
                                    ``(V) comply with paragraph 
                                (1)(B);
                                    ``(VI) satisfy all 
                                requirements for a signature on 
                                an application under this Act 
                                and other laws applicable to 
                                the supplemental nutrition 
                                assistance program, with the 
                                date on which the household 
                                member provides verbal assent 
                                considered as the date of 
                                application for all purposes; 
                                and
                                    ``(VII) comply with such 
                                other standards as the 
                                Secretary may establish.''.

SEC. 4120. PRIVACY PROTECTIONS.

    Section 11(e)(8) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2020(e)(8)) is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by striking ``limit'' and inserting 
                ``prohibit''; and
                    (B) by striking ``to persons'' and all that 
                follows through ``State programs'';
            (2) by redesignating subparagraphs (A) through (E) 
        as subparagraphs (B) through (F), respectively;
            (3) by inserting before subparagraph (B) (as so 
        redesignated) the following:
                    ``(A) the safeguards shall permit--
                            ``(i) the disclosure of such 
                        information to persons directly 
                        connected with the administration or 
                        enforcement of the provisions of this 
                        Act, regulations issued pursuant to 
                        this Act, Federal assistance programs, 
                        or federally-assisted State programs; 
                        and
                            ``(ii) the subsequent use of the 
                        information by persons described in 
                        clause (i) only for such administration 
                        or enforcement;''; and
            (4) in subparagraph (F) (as so redesignated) by 
        inserting ``or subsection (u)'' before the semicolon at 
        the end.

SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

    Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025) is amended by striking subsection (g) and inserting the 
following:
    ``(g) Cost Sharing for Computerization.--
            ``(1) In general.--Except as provided in paragraphs 
        (2) and (3), the Secretary is authorized to pay to each 
        State agency the amount provided under subsection 
        (a)(6) for the costs incurred by the State agency in 
        the planning, design, development, or installation of 1 
        or more automatic data processing and information 
        retrieval systems that the Secretary determines--
                    ``(A) would assist in meeting the 
                requirements of this Act;
                    ``(B) meet such conditions as the Secretary 
                prescribes;
                    ``(C) are likely to provide more efficient 
                and effective administration of the 
                supplemental nutrition assistance program;
                    ``(D) would be compatible with other 
                systems used in the administration of State 
                programs, including the program funded under 
                part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.);
                    ``(E) would be tested adequately before and 
                after implementation, including through pilot 
                projects in limited areas for major systems 
                changes as determined under rules promulgated 
                by the Secretary, data from which shall be 
                thoroughly evaluated before the Secretary 
                approves the system to be implemented more 
                broadly; and
                    ``(F) would be operated in accordance with 
                an adequate plan for--
                            ``(i) continuous updating to 
                        reflect changed policy and 
                        circumstances; and
                            ``(ii) testing the effect of the 
                        system on access for eligible 
                        households and on payment accuracy.
            ``(2) Limitation.--The Secretary shall not make 
        payments to a State agency under paragraph (1) to the 
        extent that the State agency--
                    ``(A) is reimbursed for the costs under any 
                other Federal program; or
                    ``(B) uses the systems for purposes not 
                connected with the supplemental nutrition 
                assistance program.''.

SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

    Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2025(h)(1)(A)) is amended in subparagraph (A), by 
striking ``to remain available until expended'' and inserting 
``to remain available for 15 months''.

                       PART IV--PROGRAM INTEGRITY

SEC. 4131. ELIGIBILITY DISQUALIFICATION.

    Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015) is amended by adding at the end the following:
    ``(p) Disqualification for Obtaining Cash by Destroying 
Food and Collecting Deposits.--Subject to any requirements 
established by the Secretary, any person who has been found by 
a State or Federal court or administrative agency in a hearing 
under subsection (b) to have intentionally obtained cash by 
purchasing products with supplemental nutrition assistance 
program benefits that have containers that require return 
deposits, discarding the product, and returning the container 
for the deposit amount shall be ineligible for benefits under 
this Act for such period of time as the Secretary shall 
prescribe by regulation.
    ``(q) Disqualification for Sale of Food Purchased With 
Supplemental Nutrition Assistance Program Benefits.--Subject to 
any requirements established by the Secretary, any person who 
has been found by a State or Federal court or administrative 
agency in a hearing under subsection (b) to have intentionally 
sold any food that was purchased using supplemental nutrition 
assistance program benefits shall be ineligible for benefits 
under this Act for such period of time as the Secretary shall 
prescribe by regulation.''.

SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES 
                    AND WHOLESALE FOOD CONCERNS.

    Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2021) is amended--
            (1) by striking the section designation and heading 
        and all that follows through the end of subsection (a) 
        and inserting the following:

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

    ``(a) Disqualification.--
            ``(1) In general.--An approved retail food store or 
        wholesale food concern that violates a provision of 
        this Act or a regulation under this Act may be--
                    ``(A) disqualified for a specified period 
                of time from further participation in the 
                supplemental nutrition assistance program;
                    ``(B) assessed a civil penalty of up to 
                $100,000 for each violation; or
                    ``(C) both.
            ``(2) Regulations.--Regulations promulgated under 
        this Act shall provide criteria for the finding of a 
        violation of, the suspension or disqualification of and 
        the assessment of a civil penalty against a retail food 
        store or wholesale food concern on the basis of 
        evidence that may include facts established through on-
        site investigations, inconsistent redemption data, or 
        evidence obtained through a transaction report under an 
        electronic benefit transfer system.'';
            (2) in subsection (b)--
                    (A) by striking ``(b) Disqualification'' 
                and inserting the following:
    ``(b) Period of Disqualification.--Subject to subsection 
(c), a disqualification'';
                    (B) in paragraph (1), by striking ``of no 
                less than six months nor more than five years'' 
                and inserting ``not to exceed 5 years'';
                    (C) in paragraph (2), by striking ``of no 
                less than twelve months nor more than ten 
                years'' and inserting ``not to exceed 10 
                years'';
                    (D) in paragraph (3)(B)--
                            (i) by inserting ``or a finding of 
                        the unauthorized redemption, use, 
                        transfer, acquisition, alteration, or 
                        possession of EBT cards'' after 
                        ``concern'' the first place it appears; 
                        and
                            (ii) by striking ``civil money 
                        penalties'' and inserting ``civil 
                        penalties''; and
                    (E) by striking ``civil money penalty'' 
                each place it appears and inserting ``civil 
                penalty'';
            (3) in subsection (c)--
                    (A) by striking ``(c) The action'' and 
                inserting the following:
    ``(c) Civil Penalty and Review of Disqualification and 
Penalty Determinations.--
            ``(1) Civil penalty.--In addition to a 
        disqualification under this section, the Secretary may 
        assess a civil penalty in an amount not to exceed 
        $100,000 for each violation.
            ``(2) Review.--The action''; and
                    (B) in paragraph (2) (as designated by 
                subparagraph (A)), by striking ``civil money 
                penalty'' and inserting ``civil penalty'';
            (4) in subsection (d)--
                    (A) by striking ``(d)'' and all that 
                follows through ``. The Secretary shall'' and 
                inserting the following:
    ``(d) Conditions of Authorization.--
            ``(1) In general.--As a condition of authorization 
        to accept and redeem benefits, the Secretary may 
        require a retail food store or wholesale food concern 
        that, pursuant to subsection (a), has been disqualified 
        for more than 180 days, or has been subjected to a 
        civil penalty in lieu of a disqualification period of 
        more than 180 days, to furnish a collateral bond or 
        irrevocable letter of credit for a period of not more 
        than 5 years to cover the value of benefits that the 
        store or concern may in the future accept and redeem in 
        violation of this Act.
            ``(2) Collateral.--The Secretary also may require a 
        retail food store or wholesale food concern that has 
        been sanctioned for a violation and incurs a subsequent 
        sanction regardless of the length of the 
        disqualification period to submit a collateral bond or 
        irrevocable letter of credit.
            ``(3) Bond requirements.--The Secretary shall'';
                    (B) by striking ``If the Secretary finds'' 
                and inserting the following:
            ``(4) Forfeiture.--If the Secretary finds''; and
                    (C) by striking ``Such store or concern'' 
                and inserting the following:
            ``(5) Hearing.--A store or concern described in 
        paragraph (4)'';
            (5) in subsection (e), by striking ``civil money 
        penalty'' each place it appears and inserting ``civil 
        penalty''; and
            (6) by adding at the end the following:
    ``(h) Flagrant Violations.--
            ``(1) In general.--The Secretary, in consultation 
        with the Inspector General of the Department of 
        Agriculture, shall establish procedures under which the 
        processing of program benefit redemptions for a retail 
        food store or wholesale food concern may be immediately 
        suspended pending administrative action to disqualify 
        the retail food store or wholesale food concern.
            ``(2) Requirements.--Under the procedures described 
        in paragraph (1), if the Secretary, in consultation 
        with the Inspector General, determines that a retail 
        food store or wholesale food concern is engaged in 
        flagrant violations of this Act (including regulations 
        promulgated under this Act), unsettled program benefits 
        that have been redeemed by the retail food store or 
        wholesale food concern--
                    ``(A) may be suspended; and
                    ``(B)(i) if the program disqualification is 
                upheld, may be subject to forfeiture pursuant 
                to section 15(g); or
                    ``(ii) if the program disqualification is 
                not upheld, shall be released to the retail 
                food store or wholesale food concern.
            ``(3) No liability for interest.--The Secretary 
        shall not be liable for the value of any interest on 
        funds suspended under this subsection.''.

SEC. 4133. MAJOR SYSTEMS FAILURES.

    Section 13(b) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2022(b)) is amended by adding at the end the following:
            ``(5) Overissuances caused by systemic state 
        errors.--
                    ``(A) In general.--If the Secretary 
                determines that a State agency overissued 
                benefits to a substantial number of households 
                in a fiscal year as a result of a major 
                systemic error by the State agency, as defined 
                by the Secretary, the Secretary may prohibit 
                the State agency from collecting these 
                overissuances from some or all households.
                    ``(B) Procedures.--
                            ``(i) Information reporting by 
                        states.--Every State agency shall 
                        provide to the Secretary all 
                        information requested by the Secretary 
                        concerning the issuance of benefits to 
                        households by the State agency in the 
                        applicable fiscal year.
                            ``(ii) Final determination.--After 
                        reviewing relevant information provided 
                        by a State agency, the Secretary shall 
                        make a final determination--
                                    ``(I) whether the State 
                                agency overissued benefits to a 
                                substantial number of 
                                households as a result of a 
                                systemic error in the 
                                applicable fiscal year; and
                                    ``(II) as to the amount of 
                                the overissuance in the 
                                applicable fiscal year for 
                                which the State agency is 
                                liable.
                            ``(iii) Establishing a claim.--Upon 
                        determining under clause (ii) that a 
                        State agency has overissued benefits to 
                        households due to a major systemic 
                        error determined under subparagraph 
                        (A), the Secretary shall establish a 
                        claim against the State agency equal to 
                        the value of the overissuance caused by 
                        the systemic error.
                            ``(iv) Administrative and judicial 
                        review.--Administrative and judicial 
                        review, as provided in section 14, 
                        shall apply to the final determinations 
                        by the Secretary under clause (ii).
                            ``(v) Remission to the secretary.--
                                    ``(I) Determination not 
                                appealed.--If the determination 
                                of the Secretary under clause 
                                (ii) is not appealed, the State 
                                agency shall, as soon as 
                                practicable, remit to the 
                                Secretary the dollar amount 
                                specified in the claim under 
                                clause (iii).
                                    ``(II) Determination 
                                appealed.--If the determination 
                                of the Secretary under clause 
                                (ii) is appealed, upon 
                                completion of administrative 
                                and judicial review under 
                                clause (iv), and a finding of 
                                liability on the part of the 
                                State, the appealing State 
                                agency shall, as soon as 
                                practicable, remit to the 
                                Secretary a dollar amount 
                                subject to the finding made in 
                                the administrative and judicial 
                                review.
                            ``(vi) Alternative method of 
                        collection.--
                                    ``(I) In general.--If a 
                                State agency fails to make a 
                                payment under clause (v) within 
                                a reasonable period of time, as 
                                determined by the Secretary, 
                                the Secretary may reduce any 
                                amount due to the State agency 
                                under any other provision of 
                                this Act by the amount due.
                                    ``(II) Accrual of 
                                interest.--During the period of 
                                time determined by the 
                                Secretary to be reasonable 
                                under subclause (I), interest 
                                in the amount owed shall not 
                                accrue.
                            ``(vii) Limitation.--Any liability 
                        amount established under section 
                        16(c)(1)(C) shall be reduced by the 
                        amount of the claim established under 
                        this subparagraph.''.

                         PART V--MISCELLANEOUS

SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION PROMOTION IN 
                    THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.

    Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2026) is amended by adding at the end the following:
    ``(k) Pilot Projects to Evaluate Health and Nutrition 
Promotion in the Supplemental Nutrition Assistance Program.--
            ``(1) In general.--The Secretary shall carry out, 
        under such terms and conditions as the Secretary 
        considers to be appropriate, pilot projects to develop 
        and test methods--
                    ``(A) of using the supplemental nutrition 
                assistance program to improve the dietary and 
                health status of households eligible for or 
                participating in the supplemental nutrition 
                assistance program; and
                    ``(B) to reduce overweight, obesity 
                (including childhood obesity), and associated 
                co-morbidities in the United States.
            ``(2) Grants.--
                    ``(A) In general.--In carrying out this 
                subsection, the Secretary may enter into 
                competitively awarded contracts or cooperative 
                agreements with, or provide grants to, public 
                or private organizations or agencies (as 
                defined by the Secretary), for use in 
                accordance with projects that meet the strategy 
                goals of this subsection.
                    ``(B) Application.--To be eligible to 
                receive a contract, cooperative agreement, or 
                grant under this paragraph, an organization 
                shall submit to the Secretary an application at 
                such time, in such manner, and containing such 
                information as the Secretary may require.
                    ``(C) Selection criteria.--Pilot projects 
                shall be evaluated against publicly 
                disseminated criteria that may include--
                            ``(i) identification of a low-
                        income target audience that corresponds 
                        to individuals living in households 
                        with incomes at or below 185 percent of 
                        the poverty level;
                            ``(ii) incorporation of a 
                        scientifically based strategy that is 
                        designed to improve diet quality 
                        through more healthful food purchases, 
                        preparation, or consumption;
                            ``(iii) a commitment to a pilot 
                        project that allows for a rigorous 
                        outcome evaluation, including data 
                        collection;
                            ``(iv) strategies to improve the 
                        nutritional value of food served during 
                        school hours and during after-school 
                        hours;
                            ``(v) innovative ways to provide 
                        significant improvement to the health 
                        and wellness of children;
                            ``(vi) other criteria, as 
                        determined by the Secretary.
                    ``(D) Use of funds.--Funds provided under 
                this paragraph shall not be used for any 
                project that limits the use of benefits under 
                this Act.
            ``(3) Projects.--Pilot projects carried out under 
        paragraph (1) may include projects to determine whether 
        healthier food purchases by and healthier diets among 
        households participating in the supplemental nutrition 
        assistance program result from projects that--
                    ``(A) increase the supplemental nutrition 
                assistance purchasing power of the 
                participating households by providing increased 
                supplemental nutrition assistance program 
                benefit allotments to the participating 
                households;
                    ``(B) increase access to farmers markets by 
                participating households through the electronic 
                redemption of supplemental nutrition assistance 
                program benefits at farmers' markets;
                    ``(C) provide incentives to authorized 
                supplemental nutrition assistance program 
                retailers to increase the availability of 
                healthy foods to participating households;
                    ``(D) subject authorized supplemental 
                nutrition assistance program retailers to 
                stricter retailer requirements with respect to 
                carrying and stocking healthful foods;
                    ``(E) provide incentives at the point of 
                purchase to encourage households participating 
                in the supplemental nutrition assistance 
                program to purchase fruits, vegetables, or 
                other healthful foods; or
                    ``(F) provide to participating households 
                integrated communication and education 
                programs, including the provision of funding 
                for a portion of a school-based nutrition 
                coordinator to implement a broad nutrition 
                action plan and parent nutrition education 
                programs in elementary schools, separately or 
                in combination with pilot projects carried out 
                under subparagraphs (A) through (E).
            ``(4) Evaluation and reporting.--
                    ``(A) Evaluation.--
                            ``(i) Independent evaluation.--
                                    ``(I) In general.--The 
                                Secretary shall provide for an 
                                independent evaluation of 
                                projects selected under this 
                                subsection that measures the 
                                impact of the pilot program on 
                                health and nutrition as 
                                described in paragraph (1).
                                    ``(II) Requirement.--The 
                                independent evaluation under 
                                subclause (I) shall use 
                                rigorous methodologies, 
                                particularly random assignment 
                                or other methods that are 
                                capable of producing 
                                scientifically valid 
                                information regarding which 
                                activities are effective.
                            ``(ii) Costs.--The Secretary may 
                        use funds provided to carry out this 
                        section to pay costs associated with 
                        monitoring and evaluating each pilot 
                        project.
                    ``(B) Reporting.--Not later than 90 days 
                after the last day of fiscal year 2009 and each 
                fiscal year thereafter until the completion of 
                the last evaluation under subparagraph (A), the 
                Secretary shall submit to the Committee on 
                Agriculture of the House of Representatives and 
                the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate a report that includes a 
                description of--
                            ``(i) the status of each pilot 
                        project;
                            ``(ii) the results of the 
                        evaluation completed during the 
                        previous fiscal year; and
                            ``(iii) to the maximum extent 
                        practicable--
                                    ``(I) the impact of the 
                                pilot project on appropriate 
                                health, nutrition, and 
                                associated behavioral outcomes 
                                among households participating 
                                in the pilot project;
                                    ``(II) baseline information 
                                relevant to the stated goals 
                                and desired outcomes of the 
                                pilot project; and
                                    ``(III) equivalent 
                                information about similar or 
                                identical measures among 
                                control or comparison groups 
                                that did not participate in the 
                                pilot project.
                    ``(C) Public dissemination.--In addition to 
                the reporting requirements under subparagraph 
                (B), evaluation results shall be shared broadly 
                to inform policy makers, service providers, 
                other partners, and the public in order to 
                promote wide use of successful strategies.
            ``(5) Funding.--
                    ``(A) Authorization of appropriations.--
                There are authorized to be appropriated such 
                sums as are necessary to carry out this section 
                for each of fiscal years 2008 through 2012.
                    ``(B) Mandatory funding.--Out of any funds 
                made available under section 18, on October 1, 
                2008, the Secretary shall make available 
                $20,000,000 to carry out a project described in 
                paragraph (3)(E), to remain available until 
                expended.''.

SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL NUTRITION 
                    ASSISTANCE FOR PUERTO RICO.

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

                 Subtitle B--Food Distribution Programs

               PART I--EMERGENCY FOOD ASSISTANCE PROGRAM

SEC. 4201. EMERGENCY FOOD ASSISTANCE.

    (a) Purchase of Commodities.--Section 27(a) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by--
            (1) by striking ``(a) Purchase of Commodities'' and 
        all that follows through ``$140,000,000 of'' and 
        inserting the following:
    ``(a) Purchase of Commodities.--
            ``(1) In general.--From amounts made available to 
        carry out this Act, for each of the fiscal years 2008 
        through 2012, the Secretary shall purchase a dollar 
        amount described in paragraph (2) of''; and
            (2) by adding at the end the following:
            ``(2) Amounts.--The Secretary shall use to carry 
        out paragraph (1)--
                    ``(A) for fiscal year 2008, $190,000,000;
                    ``(B) for fiscal year 2009, $250,000,000; 
                and
                    ``(C) for each of fiscal years 2010 through 
                2012, the dollar amount of commodities 
                specified in subparagraph (B) adjusted by the 
                percentage by which the thrifty food plan has 
                been adjusted under section 3(u)(4) between 
                June 30, 2008, and June 30 of the immediately 
                preceding fiscal year.''.
    (b) State Plans.--Section 202A of the Emergency Food 
Assistance Act of 1983 (7 U.S.C. 7503) is amended by striking 
subsection (a) and inserting the following:
    ``(a) Plans.--
            ``(1) In general.--To receive commodities under 
        this Act, a State shall submit to the Secretary an 
        operation and administration plan for the provision of 
        benefits under this Act.
            ``(2) Updates.--A State shall submit to the 
        Secretary for approval any amendment to a plan 
        submitted under paragraph (1) in any case in which the 
        State proposes to make a change to the operation or 
        administration of a program described in the plan.''.
    (c) Authorization and Appropriations.--Section 204(a)(1) of 
the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 
is amended in the first sentence--
            (1) by striking ``$60,000,000'' and inserting 
        ``$100,000,000''; and
            (2) by inserting ``and donated wild game'' before 
        the period at the end.

SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

    The Emergency Food Assistance Act of 1983 is amended by 
inserting after section 208 (7 U.S.C. 7511) the following:

``SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

    ``(a) Definition of Eligible Entity.--In this section, the 
term `eligible entity' means an emergency feeding organization.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary shall use funds 
        made available under subsection (d) to make grants to 
        eligible entities to pay the costs of an activity 
        described in subsection (c).
            ``(2) Rural preference.--The Secretary shall use 
        not less than 50 percent of the funds described in 
        paragraph (1) for a fiscal year to make grants to 
        eligible entities that serve predominantly rural 
        communities for the purposes of--
                    ``(A) expanding the capacity and 
                infrastructure of food banks, State-wide food 
                bank associations, and food bank collaboratives 
                that operate in rural areas; and
                    ``(B) improving the capacity of the food 
                banks to procure, receive, store, distribute, 
                track, and deliver time-sensitive or perishable 
                food products.
    ``(c) Use of Funds.--An eligible entity shall use a grant 
received under this section for any fiscal year to carry out 
activities of the eligible entity, including--
            ``(1) the development and maintenance of a 
        computerized system for the tracking of time-sensitive 
        food products;
            ``(2) capital, infrastructure, and operating costs 
        associated with the collection, storage, distribution, 
        and transportation of time-sensitive and perishable 
        food products;
            ``(3) improving the security and diversity of the 
        emergency food distribution and recovery systems of the 
        United States through the support of small or mid-size 
        farms and ranches, fisheries, and aquaculture, and 
        donations from local food producers and manufacturers 
        to persons in need;
            ``(4) providing recovered foods to food banks and 
        similar nonprofit emergency food providers to reduce 
        hunger in the United States;
            ``(5) improving the identification of--
                    ``(A) potential providers of donated foods;
                    ``(B) potential nonprofit emergency food 
                providers; and
                    ``(C) persons in need of emergency food 
                assistance in rural areas; and
            ``(6) constructing, expanding, or repairing a 
        facility or equipment to support hunger relief agencies 
        in the community.
    ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $15,000,000 for 
each of fiscal years 2008 through 2012.''.

       PART II--FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS

SEC. 4211. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD PACKAGE.

    (a) In General.--Section 4 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2013) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Food Distribution Program on Indian Reservations.--
            ``(1) In general.--Distribution of commodities, 
        with or without the supplemental nutrition assistance 
        program, shall be made whenever a request for 
        concurrent or separate food program operations, 
        respectively, is made by a tribal organization.
            ``(2) Administration.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) and (C), in the event of distribution on 
                all or part of an Indian reservation, the 
                appropriate agency of the State government in 
                the area involved shall be responsible for the 
                distribution.
                    ``(B) Administration by tribal 
                organization.--If the Secretary determines that 
                a tribal organization is capable of effectively 
                and efficiently administering a distribution 
                described in paragraph (1), then the tribal 
                organization shall administer the distribution.
                    ``(C) Prohibition.--The Secretary shall not 
                approve any plan for a distribution described 
                in paragraph (1) that permits any household on 
                any Indian reservation to participate 
                simultaneously in the supplemental nutrition 
                assistance program and the program established 
                under this subsection.
            ``(3) Disqualified participants.--An individual who 
        is disqualified from participation in the food 
        distribution program on Indian reservations under this 
        subsection is not eligible to participate in the 
        supplemental nutrition assistance program under this 
        Act for a period of time to be determined by the 
        Secretary.
            ``(4) Administrative costs.--The Secretary is 
        authorized to pay such amounts for administrative costs 
        and distribution costs on Indian reservations as the 
        Secretary finds necessary for effective administration 
        of such distribution by a State agency or tribal 
        organization.
            ``(5) Bison meat.--Subject to the availability of 
        appropriations to carry out this paragraph, the 
        Secretary may purchase bison meat for recipients of 
        food distributed under this subsection, including bison 
        meat from--
                    ``(A) Native American bison producers; and
                    ``(B) producer-owned cooperatives of bison 
                ranchers.
            ``(6) Traditional and locally-grown food fund.--
                    ``(A) In general.--Subject to the 
                availability of appropriations, the Secretary 
                shall establish a fund for use in purchasing 
                traditional and locally-grown foods for 
                recipients of food distributed under this 
                subsection.
                    ``(B) Native american producers.--Where 
                practicable, of the food provided under 
                subparagraph (A), at least 50 percent shall be 
                produced by Native American farmers, ranchers, 
                and producers.
                    ``(C) Definition of traditional and locally 
                grown.--The Secretary shall determine the 
                definition of the term `traditional and 
                locally-grown' with respect to food distributed 
                under this paragraph.
                    ``(D) Survey.--In carrying out this 
                paragraph, the Secretary shall--
                            ``(i) survey participants of the 
                        food distribution program on Indian 
                        reservations established under this 
                        subsection to determine which 
                        traditional foods are most desired by 
                        those participants; and
                            ``(ii) purchase or offer to 
                        purchase those traditional foods that 
                        may be procured cost-effectively.
                    ``(E) Report.--Not later than 1 year after 
                the date of enactment of this paragraph, and 
                annually thereafter, the Secretary shall submit 
                to the Committee on Agriculture of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate a report describing the activities 
                carried out under this paragraph during the 
                preceding calendar year.
                    ``(F) Authorization of appropriations.--
                There is authorized to be appropriated to the 
                Secretary to carry out this paragraph 
                $5,000,000 for each of fiscal years 2008 
                through 2012.''.
    (b) FDPIR Food Package.--Not later than 180 days after the 
date of enactment of this Act, the Secretary shall submit to 
the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate a report that describes--
            (1) how the Secretary derives the process for 
        determining the food package under the food 
        distribution program on Indian reservations established 
        under section 4(b) of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2013(b)) (referred to in this subsection 
        as the ``food package'');
            (2) the extent to which the food package--
                    (A) addresses the nutritional needs of low-
                income Native Americans compared to the 
                supplemental nutrition assistance program, 
                particularly for very low-income households;
                    (B) conforms (or fails to conform) to the 
                2005 Dietary Guidelines for Americans published 
                under section 301 of the National Nutrition 
                Monitoring and Related Research Act of 1990 (7 
                U.S.C. 5341);
                    (C) addresses (or fails to address) the 
                nutritional and health challenges that are 
                specific to Native Americans; and
                    (D) is limited by distribution costs or 
                challenges in infrastructure; and
            (3)(A) any plans of the Secretary to revise and 
        update the food package to conform with the most recent 
        Dietary Guidelines for Americans, including any costs 
        associated with the planned changes; or
            (B) if the Secretary does not plan changes to the 
        food package, the rationale of the Secretary for 
        retaining the food package.

             PART III--COMMODITY SUPPLEMENTAL FOOD PROGRAM

SEC. 4221. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

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

           PART IV--SENIOR FARMERS' MARKET NUTRITION PROGRAM

SEC. 4231. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    Section 4402 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 3007) is amended--
            (1) in subsection (b)(1), by inserting ``honey,'' 
        after ``vegetables,'';
            (2) by striking subsection (c) and inserting the 
        following:
    ``(c) Exclusion of Benefits in Determining Eligibility for 
Other Programs.--The value of any benefit provided to any 
eligible seniors farmers' market nutrition program recipient 
under this section shall not be considered to be income or 
resources for any purposes under any Federal, State, or local 
law.''; and
            (3) by adding at the end the following:
    ``(d) Prohibition on Collection of Sales Tax.--Each State 
shall ensure that no State or local tax is collected within the 
State on a purchase of food with a benefit distributed under 
the seniors farmers' market nutrition program.
    ``(e) Regulations.--The Secretary may promulgate such 
regulations as the Secretary considers to be necessary to carry 
out the seniors farmers' market nutrition program.''.

            Subtitle C--Child Nutrition and Related Programs

SEC. 4301. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING PROGRAM 
                    BENEFITS FOR FREE SCHOOL MEALS.

    (a) In General.--Not later than December 31, 2008 and June 
30 of each year thereafter, the Secretary shall submit to the 
Committees on Agriculture and Education and Labor of the House 
of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that assesses the 
effectiveness of each State in enrolling school-aged children 
in households receiving program benefits under the Food and 
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) (referred to in 
this section as ``program benefits'') for free school meals 
using direct certification.
    (b) Specific Measures.--The assessment of the Secretary of 
the performance of each State shall include--
            (1) an estimate of the number of school-aged 
        children, by State, who were members of a household 
        receiving program benefits at any time in July, August, 
        or September of the prior year;
            (2) an estimate of the number of school-aged 
        children, by State, who were directly certified as 
        eligible for free lunches under the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.), 
        based on receipt of program benefits, as of October 1 
        of the prior year; and
            (3) an estimate of the number of school-aged 
        children, by State, who were members of a household 
        receiving program benefits at any time in July, August, 
        or September of the prior year who were not candidates 
        for direct certification because on October 1 of the 
        prior year the children attended a school operating 
        under the special assistance provisions of section 
        11(a)(1) of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1759a(a)(1)) that is not operating 
        in a base year.
    (c) Performance Innovations.--The report of the Secretary 
shall describe best practices from States with the best 
performance or the most improved performance from the previous 
year.

SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS.

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

SEC. 4303. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.

    Section 18(h) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769(h)) is amended--
            (1) in paragraph (1)(C), by inserting ``promotes 
        healthy food education in the school curriculum and'' 
        before ``incorporates'';
            (2) by redesignating paragraph (2) as paragraph 
        (4); and
            (3) by inserting after paragraph (1) the following:
            ``(2) Administration.--In providing grants under 
        paragraph (1), the Secretary shall give priority to 
        projects that can be replicated in schools.
            ``(3) Pilot program for high-poverty schools.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Eligible program.--The term 
                        `eligible program' means--
                                    ``(I) a school-based 
                                program with hands-on vegetable 
                                gardening and nutrition 
                                education that is incorporated 
                                into the curriculum for 1 or 
                                more grades at 2 or more 
                                eligible schools; or
                                    ``(II) a community-based 
                                summer program with hands-on 
                                vegetable gardening and 
                                nutrition education that is 
                                part of, or coordinated with, a 
                                summer enrichment program at 2 
                                or more eligible schools.
                            ``(ii) Eligible school.--The term 
                        `eligible school' means a public 
                        school, at least 50 percent of the 
                        students of which are eligible for free 
                        or reduced price meals under this Act.
                    ``(B) Establishment.--The Secretary shall 
                carry out a pilot program under which the 
                Secretary shall provide to nonprofit 
                organizations or public entities in not more 
                than 5 States grants to develop and run, 
                through eligible programs, community gardens at 
                eligible schools in the States that would--
                            ``(i) be planted, cared for, and 
                        harvested by students at the eligible 
                        schools; and
                            ``(ii) teach the students 
                        participating in the community gardens 
                        about agriculture production practices 
                        and diet.
                    ``(C) Priority states.--Of the States in 
                which grantees under this paragraph are 
                located--
                            ``(i) at least 1 State shall be 
                        among the 15 largest States, as 
                        determined by the Secretary;
                            ``(ii) at least 1 State shall be 
                        among the 16th to 30th largest States, 
                        as determined by the Secretary; and
                            ``(iii) at least 1 State shall be a 
                        State that is not described in clause 
                        (i) or (ii).
                    ``(D) Use of produce.--Produce from a 
                community garden provided a grant under this 
                paragraph may be--
                            ``(i) used to supplement food 
                        provided at the eligible school;
                            ``(ii) distributed to students to 
                        bring home to the families of the 
                        students; or
                            ``(iii) donated to a local food 
                        bank or senior center nutrition 
                        program.
                    ``(E) No cost-sharing requirement.--A 
                nonprofit organization or public entity that 
                receives a grant under this paragraph shall not 
                be required to share the cost of carrying out 
                the activities assisted under this paragraph.
                    ``(F) Evaluation.--A nonprofit organization 
                or public entity that receives a grant under 
                this paragraph shall be required to cooperate 
                in an evaluation in accordance with paragraph 
                (1)(H).''.

SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM.

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

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

    ``(a) In General.--For the school year beginning July 2008 
and each subsequent school year, the Secretary shall provide 
grants to States to carry out a program to make free fresh 
fruits and vegetables available in elementary schools (referred 
to in this section as the `program').
    ``(b) Program.--A school participating in the program shall 
make free fresh fruits and vegetables available to students 
throughout the school day (or at such other times as are 
considered appropriate by the Secretary) in 1 or more areas 
designated by the school.
    ``(c) Funding to States.--
            ``(1) Minimum grant.--Except as provided in 
        subsection (i)(2), the Secretary shall provide to each 
        of the 50 States and the District of Columbia an annual 
        grant in an amount equal to 1 percent of the funds made 
        available for a year to carry out the program.
            ``(2) Additional funding.--Of the funds remaining 
        after grants are made under paragraph (1), the 
        Secretary shall allocate additional funds to each State 
        that is operating a school lunch program under section 
        4 based on the proportion that--
                    ``(A) the population of the State; bears to
                    ``(B) the population of the United States.
    ``(d) Selection of Schools.--
            ``(1) In general.--Except as provided in paragraph 
        (2) of this subsection and section 4304(a)(2) of the 
        Food, Conservation, and Energy Act of 2008, each year, 
        in selecting schools to participate in the program, 
        each State shall--
                    ``(A) ensure that each school chosen to 
                participate in the program is a school--
                            ``(i) in which not less than 50 
                        percent of the students are eligible 
                        for free or reduced price meals under 
                        this Act; and
                            ``(ii) that submits an application 
                        in accordance with subparagraph (D);
                    ``(B) to the maximum extent practicable, 
                give the highest priority to schools with the 
                highest proportion of children who are eligible 
                for free or reduced price meals under this Act;
                    ``(C) ensure that each school selected is 
                an elementary school (as defined in section 
                9101 of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 7801));
                    ``(D) solicit applications from interested 
                schools that include--
                            ``(i) information pertaining to the 
                        percentage of students enrolled in the 
                        school submitting the application who 
                        are eligible for free or reduced price 
                        school lunches under this Act;
                            ``(ii) a certification of support 
                        for participation in the program signed 
                        by the school food manager, the school 
                        principal, and the district 
                        superintendent (or equivalent 
                        positions, as determined by the 
                        school);
                            ``(iii) a plan for implementation 
                        of the program, including efforts to 
                        integrate activities carried out under 
                        this section with other efforts to 
                        promote sound health and nutrition, 
                        reduce overweight and obesity, or 
                        promote physical activity; and
                            ``(iv) such other information as 
                        may be requested by the Secretary; and
                    ``(E) encourage applicants to submit a plan 
                for implementation of the program that includes 
                a partnership with 1 or more entities that will 
                provide non-Federal resources (including 
                entities representing the fruit and vegetable 
                industry).
            ``(2) Exception.--Clause (i) of paragraph (1)(A) 
        shall not apply to a State if all schools that meet the 
        requirements of that clause have been selected and the 
        State does not have a sufficient number of additional 
        schools that meet the requirement of that clause.
            ``(3) Outreach to low-income schools.--
                    ``(A) In general.--Prior to making 
                decisions regarding school participation in the 
                program, a State agency shall inform the 
                schools within the State with the highest 
                proportion of free and reduced price meal 
                eligibility, including Native American schools, 
                of the eligibility of the schools for the 
                program with respect to priority granted to 
                schools with the highest proportion of free and 
                reduced price eligibility under paragraph 
                (1)(B).
                    ``(B) Requirement.--In providing 
                information to schools in accordance with 
                subparagraph (A), a State agency shall inform 
                the schools that would likely be chosen to 
                participate in the program under paragraph 
                (1)(B).
    ``(e) Notice of Availability.--If selected to participate 
in the program, a school shall widely publicize within the 
school the availability of free fresh fruits and vegetables 
under the program.
    ``(f) Per-Student Grant.--The per-student grant provided to 
a school under this section shall be--
            ``(1) determined by a State agency; and
            ``(2) not less than $50, nor more than $75.
    ``(g) Limitation.--To the maximum extent practicable, each 
State agency shall ensure that in making the fruits and 
vegetables provided under this section available to students, 
schools offer the fruits and vegetables separately from meals 
otherwise provided at the school under this Act or the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
    ``(h) Evaluation and Reports.--
            ``(1) In general.--The Secretary shall conduct an 
        evaluation of the program, including a determination as 
        to whether children experienced, as a result of 
        participating in the program--
                    ``(A) increased consumption of fruits and 
                vegetables;
                    ``(B) other dietary changes, such as 
                decreased consumption of less nutritious foods; 
                and
                    ``(C) such other outcomes as are considered 
                appropriate by the Secretary.
            ``(2) Report.--Not later than September 30, 2011, 
        the Secretary shall submit to the Committee on 
        Education and Labor of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry 
        of the Senate a report that describes the results of 
        the evaluation under paragraph (1).
    ``(i) Funding.--
            ``(1) In general.--Out of the funds made available 
        under subsection (b)(2)(A) of section 14222 of the 
        Food, Conservation, and Energy Act of 2008, the 
        Secretary shall use the following amounts to carry out 
        this section:
                    ``(A) On October 1, 2008, $40,000,000.
                    ``(B) On July 1, 2009, $65,000,000.
                    ``(C) On July 1, 2010, $101,000,000.
                    ``(D) On July 1, 2011, $150,000,000.
                    ``(E) On July 1, 2012, and each July 1 
                thereafter, the amount made available for the 
                preceding fiscal year, as adjusted to reflect 
                changes for the 12-month period ending the 
                preceding April 30 in the Consumer Price Index 
                for All Urban Consumers published by the Bureau 
                of Labor Statistics of the Department of Labor, 
                for items other than food.
            ``(2) Maintenance of existing funding.--In 
        allocating funding made available under paragraph (1) 
        among the States in accordance with subsection (c), the 
        Secretary shall ensure that each State that received 
        funding under section 18(f) on the day before the date 
        of enactment of the Food, Conservation, and Energy Act 
        of 2008 shall continue to receive sufficient funding 
        under this section to maintain the caseload level of 
        the State under that section as in effect on that date.
            ``(3) Evaluation funding.--On October 1, 2008, out 
        of any funds made available under subsection (b)(2)(A) 
        of section 14222 of the Food, Conservation, and Energy 
        Act of 2008, the Secretary shall use to carry out the 
        evaluation required under subsection (h), $3,000,000, 
        to remain available for obligation until September 30, 
        2010.
            ``(4) Receipt and acceptance.--The Secretary shall 
        be entitled to receive, shall accept, and shall use to 
        carry out this section any funds transferred for that 
        purpose, without further appropriation.
            ``(5) Authorization of appropriations.--In addition 
        to any other amounts made available to carry out this 
        section, there are authorized to be appropriated such 
        sums as are necessary to expand the program established 
        under this section.
            ``(6) Administrative costs.--
                    ``(A) In general.--Of funds made available 
                to carry out this section for a fiscal year, 
                the Secretary may use not more than $500,000 
                for the administrative costs of carrying out 
                the program.
                    ``(B) Reservation of funds.--The Secretary 
                shall allow each State to reserve such funding 
                as the Secretary determines to be necessary to 
                administer the program in the State (with 
                adjustments for the size of the State and the 
                grant amount), but not to exceed the amount 
                required to pay the costs of 1 full-time 
                coordinator for the program in the State.
            ``(7) Reallocation.--
                    ``(A) Among states.--The Secretary may 
                reallocate any amounts made available to carry 
                out this section that are not obligated or 
                expended by a date determined by the Secretary.
                    ``(B) Within states.--A State that receives 
                a grant under this section may reallocate any 
                amounts made available under the grant that are 
                not obligated or expended by a date determined 
                by the Secretary.''.
            (2) Transition of existing schools.--
                    (A) Existing secondary schools.--Section 
                19(d)(1)(C) of the Richard B. Russell National 
                School Lunch Act (as amended by paragraph (1)) 
                may be waived by a State until July 1, 2010, 
                for each secondary school in the State that has 
                been awarded funding under section 18(f) of 
                that Act (42 U.S.C. 1769(f)) for the school 
                year beginning July 1, 2008.
                    (B) School year beginning july 1, 2008.--To 
                facilitate transition from the program 
                authorized under section 18(f) of the Richard 
                B. Russell National School Lunch Act (42 U.S.C. 
                1769(f)) (as in effect on the day before the 
                date of enactment of this Act) to the program 
                established under section 19 of that Act (as 
                amended by paragraph (1))--
                            (i) for the school year beginning 
                        July 1, 2008, the Secretary may permit 
                        any school selected for participation 
                        under section 18(f) of that Act (42 
                        U.S.C. 1769(f)) for that school year to 
                        continue to participate under section 
                        19 of that Act until the end of that 
                        school year; and
                            (ii) funds made available under 
                        that Act for fiscal year 2009 may be 
                        used to support the participation of 
                        any schools selected to participate in 
                        the program authorized under section 
                        18(f) of that Act (42 U.S.C. 1769(f)) 
                        (as in effect on the day before the 
                        date of enactment of this Act).
    (b) Conforming Amendments.--Section 18 of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsections (g) through (j) as 
        subsections (f) through (i), respectively.

SEC. 4305. WHOLE GRAIN PRODUCTS.

    (a) Purpose.--The purpose of this section is to encourage 
greater awareness and interest in the number and variety of 
whole grain products available to schoolchildren, as 
recommended by the 2005 Dietary Guidelines for Americans.
    (b) Definition of Eligible Whole Grains and Whole Grain 
Products.--In this section, the terms ``whole grains'' and 
``whole grain products'' have the meaning given the terms by 
the Food and Nutrition Service in the HealthierUS School 
Challenge.
    (c) Purchase of Whole Grains and Whole Grain Products.--In 
addition to the commodities delivered under section 6 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1755), 
the Secretary shall purchase whole grains and whole grain 
products for use in--
            (1) the school lunch program established under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 
        1751 et seq.); and
            (2) the school breakfast program established by 
        section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
        1773).
    (d) Evaluation.--Not later than September 30, 2011, the 
Secretary shall conduct an evaluation of the activities 
conducted under subsection (c) that includes--
            (1) an evaluation of whether children participating 
        in the school lunch and breakfast programs increased 
        their consumption of whole grains;
            (2) an evaluation of which whole grains and whole 
        grain products are most acceptable for use in the 
        school lunch and breakfast programs;
            (3) any recommendations of the Secretary regarding 
        the integration of whole grain products in the school 
        lunch and breakfast programs; and
            (4) an evaluation of any other outcomes determined 
        to be appropriate by the Secretary.
    (e) Report.--As soon as practicable after the completion of 
the evaluation under subsection (d), the Secretary shall submit 
to the Committee on Agriculture, Nutrition, and Forestry of the 
Senate and the Committee on Education and Labor of the House of 
Representative a report describing the results of the 
evaluation.

SEC. 4306. BUY AMERICAN REQUIREMENTS.

    (a) Findings.--The Congress finds the following:
            (1) Federal law requires that commodities and 
        products purchased with Federal funds be, to the extent 
        practicable, of domestic origin.
            (2) Federal Buy American statutory requirements 
        seek to ensure that purchases made with Federal funds 
        benefit domestic producers.
            (3) The Richard B. Russell National School Lunch 
        Act (42 U.S.C. 1751 et seq.) requires the use of 
        domestic food products for all meals served under the 
        program, including food products purchased with local 
        funds.
    (b) Buy American Statutory Requirements.--The Department of 
Agriculture should undertake training, guidance, and 
enforcement of the various current Buy American statutory 
requirements and regulations, including those of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1751 et seq.).

SEC. 4307. SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORITIES.

    (a) In General.--For fiscal year 2009, the Secretary shall 
carry out a nationally representative survey of the foods 
purchased during the most recent school year for which data is 
available by school authorities participating in the school 
lunch program established under the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1751 et seq.).
    (b) Report.--
            (1) In general.--On completion of the survey, the 
        Secretary shall submit to the Committees on Agriculture 
        and Education and Labor of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and 
        Forestry of the Senate a report that describes the 
        results of the survey.
            (2) Interim requirement.--If the initial report 
        required under paragraph (1) is not submitted to the 
        Committees referred to in that paragraph by June 30, 
        2009, the Secretary shall submit to the Committees an 
        interim report that describes the relevant survey data, 
        or a sample of such data, available to the Secretary as 
        of that date.
    (c) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out this section 
not more than $3,000,000.

                       Subtitle D--Miscellaneous

SEC. 4401. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND 
                    INTERNATIONAL HUNGER FELLOWS.

    Section 4404 of the Farm Security and Rural Investment Act 
of 2002 (2 U.S.C. 1161) is amended to read as follows:

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

    ``(a) Short Title.--This section may be cited as the `Bill 
Emerson National Hunger Fellows and Mickey Leland International 
Hunger Fellows Program Act of 2008'.
    ``(b) Definitions.--In this subsection:
            ``(1) Director.--The term `Director' means the head 
        of the Congressional Hunger Center.
            ``(2) Fellow.--The term `fellow' means--
                    ``(A) a Bill Emerson Hunger Fellow; or
                    ``(B) Mickey Leland Hunger Fellow.
            ``(3) Fellowship programs.--The term `Fellowship 
        Programs' means the Bill Emerson National Hunger 
        Fellowship Program and the Mickey Leland International 
        Hunger Fellowship Program established under subsection 
        (c)(1).
    ``(c) Fellowship Programs.--
            ``(1) In general.--There is established the Bill 
        Emerson National Hunger Fellowship Program and the 
        Mickey Leland International Hunger Fellowship Program.
            ``(2) Purposes.--
                    ``(A) In general.--The purposes of the 
                Fellowship Programs are--
                            ``(i) to encourage future leaders 
                        of the United States--
                                    ``(I) to pursue careers in 
                                humanitarian and public 
                                service;
                                    ``(II) to recognize the 
                                needs of low-income people and 
                                hungry people;
                                    ``(III) to provide 
                                assistance to people in need; 
                                and
                                    ``(IV) to seek public 
                                policy solutions to the 
                                challenges of hunger and 
                                poverty;
                            ``(ii) to provide training and 
                        development opportunities for such 
                        leaders through placement in programs 
                        operated by appropriate organizations 
                        or entities; and
                            ``(iii) to increase awareness of 
                        the importance of public service.
                    ``(B) Bill emerson hunger fellowship 
                program.--The purpose of the Bill Emerson 
                Hunger Fellowship Program is to address hunger 
                and poverty in the United States.
                    ``(C) Mickey leland hunger fellowship 
                program.--The purpose of the Mickey Leland 
                Hunger Fellowship Program is to address 
                international hunger and other humanitarian 
                needs.
            ``(3) Administration.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall offer to provide a 
                grant to the Congressional Hunger Center to 
                administer the Fellowship Programs.
                    ``(B) Terms of grant.--The terms of the 
                grant provided under subparagraph (A), 
                including the length of the grant and 
                provisions for the alteration or termination of 
                the grant, shall be determined by the Secretary 
                in accordance with this section.
    ``(d) Fellowships.--
            ``(1) In general.--The Director shall make 
        available Bill Emerson Hunger Fellowships and Mickey 
        Leland Hunger Fellowships in accordance with this 
        subsection.
            ``(2) Curriculum.--
                    ``(A) In general.--The Fellowship Programs 
                shall provide experience and training to 
                develop the skills necessary to train fellows 
                to carry out the purposes described in 
                subsection (c)(2), including--
                            ``(i) training in direct service 
                        programs for the hungry and other anti-
                        hunger programs in conjunction with 
                        community-based organizations through a 
                        program of field placement; and
                            ``(ii) providing experience in 
                        policy development through placement in 
                        a governmental entity or 
                        nongovernmental, nonprofit, or private 
                        sector organization.
                    ``(B) Work plan.--To carry out subparagraph 
                (A) and assist in the evaluation of the 
                fellowships under paragraph (6), the Director 
                shall, for each fellow, approve a work plan 
                that identifies the target objectives for the 
                fellow in the fellowship, including specific 
                duties and responsibilities relating to those 
                objectives.
            ``(3) Period of fellowship.--
                    ``(A) Bill emerson hunger fellow.--A Bill 
                Emerson Hunger Fellowship awarded under this 
                section shall be for not more than 15 months.
                    ``(B) Mickey leland hunger fellow.--A 
                Mickey Leland Hunger Fellowship awarded under 
                this section shall be for not more than 2 
                years.
            ``(4) Selection of fellows.--
                    ``(A) In general.--Fellowships shall be 
                awarded pursuant to a nationwide competition 
                established by the Director.
                    ``(B) Qualifications.--A successful program 
                applicant shall be an individual who has 
                demonstrated--
                            ``(i) an intent to pursue a career 
                        in humanitarian services and 
                        outstanding potential for such a 
                        career;
                            ``(ii) leadership potential or 
                        actual leadership experience;
                            ``(iii) diverse life experience;
                            ``(iv) proficient writing and 
                        speaking skills;
                            ``(v) an ability to live in poor or 
                        diverse communities; and
                            ``(vi) such other attributes as are 
                        considered to be appropriate by the 
                        Director.
            ``(5) Amount of award.--
                    ``(A) In general.--A fellow shall receive--
                            ``(i) a living allowance during the 
                        term of the Fellowship; and
                            ``(ii) subject to subparagraph (B), 
                        an end-of-service award.
                    ``(B) Requirement for successful completion 
                of fellowship.--Each fellow shall be entitled 
                to receive an end-of-service award at an 
                appropriate rate for each month of satisfactory 
                service completed, as determined by the 
                Director.
                    ``(C) Terms of fellowship.--A fellow shall 
                not be considered an employee of--
                            ``(i) the Department of 
                        Agriculture;
                            ``(ii) the Congressional Hunger 
                        Center; or
                            ``(iii) a host agency in the field 
                        or policy placement of the fellow.
                    ``(D) Recognition of fellowship award.--
                            ``(i) Emerson fellow.--An 
                        individual awarded a fellowship from 
                        the Bill Emerson Hunger Fellowship 
                        shall be known as an `Emerson Fellow'.
                            ``(ii) Leland fellow.--An 
                        individual awarded a fellowship from 
                        the Mickey Leland Hunger Fellowship 
                        shall be known as a `Leland Fellow'.
            ``(6) Evaluations and audits.--Under terms 
        stipulated in the contract entered into under 
        subsection (c)(3), the Director shall--
                    ``(A) conduct periodic evaluations of the 
                Fellowship Programs; and
                    ``(B) arrange for annual independent 
                financial audits of expenditures under the 
                Fellowship Programs.
    ``(e) Authority.--
            ``(1) In general.--Subject to paragraph (2), in 
        carrying out this section, the Director may solicit, 
        accept, use, and dispose of gifts, bequests, or devises 
        of services or property, both real and personal, for 
        the purpose of facilitating the work of the Fellowship 
        Programs.
            ``(2) Limitation.--Gifts, bequests, or devises of 
        money and proceeds from sales of other property 
        received as gifts, bequests, or devises shall be used 
        exclusively for the purposes of the Fellowship 
        Programs.
    ``(f) Report.--The Director shall annually submit to the 
Secretary of Agriculture, the Committee on Agriculture of the 
House of Representatives, and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that--
            ``(1) describes the activities and expenditures of 
        the Fellowship Programs during the preceding fiscal 
        year, including expenditures made from funds made 
        available under subsection (g); and
            ``(2) includes the results of evaluations and 
        audits required by subsection (d).
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary such sums as are 
necessary to carry out this section, to remain available until 
expended.''.

SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2034) is amended--
            (1) by striking subsection (a) and inserting the 
        following:
    ``(a) Definitions.--In this section:
            ``(1) Community food project.--In this section, the 
        term `community food project' means a community-based 
        project that--
                    ``(A) requires a 1-time contribution of 
                Federal assistance to become self-sustaining; 
                and
                    ``(B) is designed--
                            ``(i)(I) to meet the food needs of 
                        low-income individuals;
                            ``(II) to increase the self-
                        reliance of communities in providing 
                        for the food needs of the communities; 
                        and
                            ``(III) to promote comprehensive 
                        responses to local food, farm, and 
                        nutrition issues; or
                            ``(ii) to meet specific State, 
                        local, or neighborhood food and 
                        agricultural needs, including needs 
                        relating to--
                                    ``(I) infrastructure 
                                improvement and development;
                                    ``(II) planning for long-
                                term solutions; or
                                    ``(III) the creation of 
                                innovative marketing activities 
                                that mutually benefit 
                                agricultural producers and low-
                                income consumers.
            ``(2) Center.--The term `Center' means the healthy 
        urban food enterprise development center established 
        under subsection (h).
            ``(3) Underserved community.--The term `underserved 
        community' means a community (including an urban or 
        rural community or an Indian tribe) that, as determined 
        by the Secretary, has--
                    ``(A) limited access to affordable, healthy 
                foods, including fresh fruits and vegetables;
                    ``(B) a high incidence of a diet-related 
                disease (including obesity) as compared to the 
                national average;
                    ``(C) a high rate of hunger or food 
                insecurity; or
                    ``(D) severe or persistent poverty.'';
            (2) by redesignating subsection (h) as subsection 
        (i); and
            (3) by inserting after subsection (g) the 
        following:
    ``(h) Healthy Urban Food Enterprise Development Center.--
            ``(1) Definition of eligible entity.--In this 
        subsection, the term `eligible entity' means--
                    ``(A) a nonprofit organization;
                    ``(B) a cooperative;
                    ``(C) a commercial entity;
                    ``(D) an agricultural producer;
                    ``(E) an academic institution;
                    ``(F) an individual; and
                    ``(G) such other entities as the Secretary 
                may designate.
            ``(2) Establishment.--The Secretary shall offer to 
        provide a grant to a nonprofit organization to 
        establish and support a healthy urban food enterprise 
        development center to carry out the purpose described 
        in paragraph (3).
            ``(3) Purpose.--The purpose of the Center is to 
        increase access to healthy affordable foods, including 
        locally produced agricultural products, to underserved 
        communities.
            ``(4) Activities.--
                    ``(A) Technical assistance and 
                information.--The Center shall collect, 
                develop, and provide technical assistance and 
                information to small and medium-sized 
                agricultural producers, food wholesalers and 
                retailers, schools, and other individuals and 
                entities regarding best practices and the 
                availability of assistance for aggregating, 
                storing, processing, and marketing locally 
                produced agricultural products and increasing 
                the availability of such products in 
                underserved communities.
                    ``(B) Authority to subgrant.--The Center 
                may provide subgrants to eligible entities--
                            ``(i) to carry out feasibility 
                        studies to establish businesses for the 
                        purpose described in paragraph (3); and
                            ``(ii) to establish and otherwise 
                        assist enterprises that process, 
                        distribute, aggregate, store, and 
                        market healthy affordable foods.
            ``(5) Priority.--In providing technical assistance 
        and grants under paragraph (4), the Center shall give 
        priority to applications that include projects--
                    ``(A) to benefit underserved communities; 
                and
                    ``(B) to develop market opportunities for 
                small- and mid-sized farm and ranch operations.
            ``(6) Report.--For each fiscal year for which the 
        nonprofit organization described in paragraph (2) 
        receives funds, the organization shall submit to the 
        Secretary a report describing the activities carried 
        out in the preceding fiscal year, including--
                    ``(A) a description of technical assistance 
                provided by the Center;
                    ``(B) the total number and a description of 
                the subgrants provided under paragraph (4)(B);
                    ``(C) a complete listing of cases in which 
                the activities of the Center have resulted in 
                increased access to healthy, affordable foods, 
                such as fresh fruit and vegetables, 
                particularly for school-aged children and 
                individuals in low-income communities; and
                    ``(D) a determination of whether the 
                activities identified in subparagraph (C) are 
                sustained during the years following the 
                initial provision of technical assistance and 
                subgrants under this section.
            ``(7) Competitive award process.--The Secretary 
        shall use a competitive process to award funds to 
        establish the Center.
            ``(8) Limitation on administrative expenses.--Not 
        more than 10 percent of the total amount allocated for 
        this subsection in a given fiscal year may be used for 
        administrative expenses.
            ``(9) Funding.--
                    ``(A) In general.--Out of any funds in the 
                Treasury not otherwise appropriated, the 
                Secretary of the Treasury shall transfer to the 
                Secretary to carry out this subsection 
                $1,000,000 for each of fiscal years 2009 
                through 2011.
                    ``(B) Additional funding.--There is 
                authorized to be appropriated $2,000,000 to 
                carry out this subsection for fiscal year 
                2012.''.

SEC. 4403. JOINT NUTRITION MONITORING AND RELATED RESEARCH ACTIVITIES.

    The Secretary and the Secretary of Health and Human 
Services shall continue to provide jointly for national 
nutrition monitoring and related research activities carried 
out as of the date of enactment of this Act--
            (1) to collect continuous dietary, health, physical 
        activity, and diet and health knowledge data on a 
        nationally representative sample;
            (2) to periodically collect data on special at-risk 
        populations, as identified by the Secretaries;
            (3) to distribute information on health, nutrition, 
        the environment, and physical activity to the public in 
        a timely fashion;
            (4) to analyze new data that becomes available;
            (5) to continuously update food composition tables; 
        and
            (6) to research and develop data collection methods 
        and standards.

SEC. 4404. SECTION 32 FUNDS FOR PURCHASE OF FRUITS, VEGETABLES, AND 
                    NUTS TO SUPPORT DOMESTIC NUTRITION ASSISTANCE 
                    PROGRAMS.

    (a) Funding for Additional Purchases of Fruits, Vegetables, 
and Nuts.--In addition to the purchases of fruits, vegetables, 
and nuts required by section 10603 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 612c-4), the Secretary 
of Agriculture shall purchase fruits, vegetables, and nuts for 
the purpose of providing nutritious foods for use in domestic 
nutrition assistance programs, using, of the funds made 
available under section 32 of the Act of August 24, 1935 (7 
U.S.C. 612c), the following amounts:
            (1) $190,000,000 for fiscal year 2008.
            (2) $193,000,000 for fiscal year 2009.
            (3) $199,000,000 for fiscal year 2010.
            (4) $203,000,000 for fiscal year 2011.
            (5) $206,000,000 for fiscal year 2012 and each 
        fiscal year thereafter.
    (b) Form of Purchases.--Fruits, vegetables, and nuts may be 
purchased under this section in the form of frozen, canned, 
dried, or fresh fruits, vegetables, and nuts.
    (c) Purchase of Fresh Fruits and Vegetables for 
Distribution to Schools and Service Institutions.--Section 
10603 of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 612c-4) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Purchase of Fresh Fruits and Vegetables for 
Distribution to Schools and Service Institutions.--The 
Secretary of Agriculture shall purchase fresh fruits and 
vegetables for distribution to schools and service institutions 
in accordance with section 6(a) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1755(a)) using, of the 
amount specified in subsection (a), not less than $50,000,000 
for each of fiscal years 2008 through 2012.''.

SEC. 4405. HUNGER-FREE COMMUNITIES.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' 
        means a public food program service provider or 
        nonprofit organization, including an emergency feeding 
        organization, that has collaborated, or will 
        collaborate, with 1 or more local partner organizations 
        to achieve at least 1 hunger-free communities goal.
            (2) Emergency feeding organization.--The term 
        ``emergency feeding organization'' has the meaning 
        given the term in section 201A of the Emergency Food 
        Assistance Act of 1983 (7 U.S.C. 7501).
            (3) Hunger-free communities goal.--The term 
        ``hunger-free communities goal'' means any of the 14 
        goals described in the H. Con. Res. 302 (102nd 
        Congress).
    (b) Hunger-Free Communities Collaborative Grants.--
            (1) Program.--
                    (A) In general.--The Secretary shall use 
                not more than 50 percent of any funds made 
                available under subsection (e) to make grants 
                to eligible entities to pay the Federal share 
                of the costs of an activity described in 
                paragraph (2).
                    (B) Federal share.--The Federal share of 
                the cost of carrying out an activity under this 
                subsection shall not exceed 80 percent.
                    (C) Non-federal share.--
                            (i) Calculation.--The non-Federal 
                        share of the cost of an activity under 
                        this subsection may be provided in cash 
                        or fairly evaluated in-kind 
                        contributions, including facilities, 
                        equipment, or services.
                            (ii) Sources.--Any entity may 
                        provide the non-Federal share of the 
                        cost of an activity under this 
                        subsection through a State government, 
                        a local government, or a private 
                        source.
            (2) Use of funds.--An eligible entity in a 
        community shall use a grant received under this 
        subsection for any fiscal year for hunger relief 
        activities, including--
                    (A) meeting the immediate needs of people 
                who experience hunger in the community served 
                by the eligible entity by--
                            (i) distributing food;
                            (ii) providing community outreach 
                        to assist in participation in federally 
                        assisted nutrition programs, 
                        including--
                                    (I) the school breakfast 
                                program established by section 
                                4 of the Child Nutrition Act of 
                                1966 (42 U.S.C. 1773);
                                    (II) the school lunch 
                                program established under the 
                                Richard B. Russell National 
                                School Lunch Act (42 U.S.C. 
                                1751 et seq.);
                                    (III) the summer food 
                                service program for children 
                                established under section 13 of 
                                that Act; and
                                    (IV) other Federal programs 
                                that provide food for children 
                                in child care facilities and 
                                homeless and older individuals; 
                                or
                            (iii) improving access to food as 
                        part of a comprehensive service; and
                    (B) developing new resources and strategies 
                to help reduce hunger in the community and 
                prevent hunger in the future by--
                            (i) developing creative food 
                        resources, such as community gardens, 
                        buying clubs, food cooperatives, 
                        community-owned and operated grocery 
                        stores, and farmers' markets;
                            (ii) coordinating food services 
                        with park and recreation programs and 
                        other community-based outlets to reduce 
                        barriers to access; or
                            (iii) creating nutrition education 
                        programs for at-risk populations to 
                        enhance food-purchasing and food-
                        preparation skills and to heighten 
                        awareness of the connection between 
                        diet and health.
    (c) Hunger-Free Communities Infrastructure Grants.--
            (1) Program authorized.--
                    (A) In general.--The Secretary shall use 
                not more than 50 percent of any funds made 
                available for a fiscal year under subsection 
                (e) to make grants to eligible entities to pay 
                the Federal share of the costs of an activity 
                described in paragraph (2).
                    (B) Federal share.--The Federal share of 
                the cost of carrying out an activity under this 
                subsection shall not exceed 80 percent.
            (2) Application.--
                    (A) In general.--To receive a grant under 
                this subsection, an eligible entity shall 
                submit an application at such time, in such 
                form, and containing such information as the 
                Secretary may prescribe.
                    (B) Contents.--Each application submitted 
                under subparagraph (A) shall--
                            (i) identify any activity described 
                        in paragraph (3) that the grant will be 
                        used to fund; and
                            (ii) describe the means by which an 
                        activity identified under clause (i) 
                        will reduce hunger in the community of 
                        the eligible entity.
                    (C) Priority.--In making grants under this 
                subsection, the Secretary shall give priority 
                to eligible entities that demonstrate 2 or more 
                of the following:
                            (i) The eligible entity serves a 
                        community in which the rates of food 
                        insecurity, hunger, poverty, or 
                        unemployment are demonstrably higher 
                        than national average rates.
                            (ii) The eligible entity serves a 
                        community that has successfully carried 
                        out long-term efforts to reduce hunger 
                        in the community.
                            (iii) The eligible entity serves a 
                        community that provides public support 
                        for the efforts of the eligible entity.
                            (iv) The eligible entity is 
                        committed to achieving more than 1 
                        hunger-free communities goal.
            (3) Use of funds.--An eligible entity shall use a 
        grant received under this subsection to construct, 
        expand, or repair a facility or equipment to support 
        hunger relief efforts in the community.
    (d) Report.--If funds are made available under subsection 
(e) to carry out this section, not later than September 30, 
2012, the Secretary shall submit to Congress a report that 
describes--
            (1) each grant made under this section, including--
                    (A) a description of any activity funded; 
                and
                    (B) the degree of success of each activity 
                funded in achieving hunger free-communities 
                goals; and
            (2) the degree of success of all activities funded 
        under this section in achieving domestic hunger goals.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012.

SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PROGRAMS.

    (a) Supplemental Nutrition Assistance Program.--
            (1) Authorization of appropriations.--Section 
        18(a)(1) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2027(a)(1)) is amended in the first sentence by 
        striking ``for each of the fiscal years 2003 through 
        2007'' and inserting ``for each of fiscal years 2008 
        through 2012''.
            (2) Grants for simple application and eligibility 
        determination systems and improved access to 
        benefits.--Section 11(t)(1) of the Food and Nutrition 
        Act of 2008 (7 U.S.C. 2020(t)(1)) is amended by 
        striking ``For each of fiscal years 2003 through 2007'' 
        and inserting ``Subject to the availability of 
        appropriations under section 18(a), for each fiscal 
        year''.
            (3) Funding of employment and training programs.--
        Section 16(h)(1) of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2025(h)(1)) is amended--
                    (A) in subparagraph (A), by striking ``the 
                amount
                of--'' and all that follows through the end of 
                the subparagraph and inserting ``, $90,000,000 
                for each fiscal year.''; and
                    (B) in subparagraph (E)(i), by striking 
                ``for each of fiscal years 2002 through 2007'' 
                and inserting ``for each fiscal year''.
            (4) Reductions in payments for administrative 
        costs.--Section 16(k)(3) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2025(k)(3)) is amended--
                    (A) in the first sentence of subparagraph 
                (A), by striking ``effective for each of fiscal 
                years 1999 through 2007,''; and
                    (B) in subparagraph (B)(ii), by striking 
                ``through fiscal year 2007''.
            (5) Cash payment pilot projects.--Section 
        17(b)(1)(B)(vi) of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2026(b)(1)(B)(vi)) is amended--
                    (A) by striking ``Any pilot'' and inserting 
                ``Subject to the availability of appropriations 
                under section 18(a), any pilot''; and
                    (B) by striking ``through October 1, 
                2007,''.
            (6) Consolidated block grants for puerto rico and 
        american samoa.--Section 19(a)(2)(A)(ii) of the Food 
        and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) 
        is amended by striking ``for each of fiscal years 2004 
        through 2007'' and inserting ``subject to the 
        availability of appropriations under section 18(a), for 
        each fiscal year thereafter''.
            (7) Assistance for community food projects.--
        Section 25 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2034) is amended--
                    (A) in subsection (b)(2)(B), by striking 
                ``for each of fiscal years 1997 through 2007'' 
                and inserting ``for fiscal year 2008 and each 
                fiscal year thereafter''; and
                    (B) in subsection (i)(4) (as redesignated 
                by section 4402), by striking ``of fiscal years 
                2003 through 2007'' and inserting ``fiscal year 
                thereafter''.
    (b) Commodity Distribution.--
            (1) Emergency food assistance.--Section 204(a)(1) 
        of the Emergency Food Assistance Act of 1983 (7 U.S.C. 
        7508(a)(1)) is amended in the first sentence by 
        striking ``for each of the fiscal years 2003 through 
        2007'' and inserting ``for fiscal year 2008 and each 
        fiscal year thereafter''.
            (2) Commodity distribution program.--Section 4(a) 
        of the Agriculture and Consumer Protection Act of 1973 
        (7 U.S.C. 612c note; Public Law 93-86) is amended in 
        the first sentence by striking ``years 1991 through 
        2007'' and inserting ``years 2008 through 2012''.
            (3) Commodity supplemental food program.--Section 5 
        of the Agriculture and Consumer Protection Act of 1973 
        (7 U.S.C. 612c note; Public Law 93-86) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking 
                        ``each of fiscal years 2003 through 
                        2007'' and inserting ``each of fiscal 
                        years 2008 through 2012''; and
                            (ii) in paragraph (2)(B), by 
                        striking the subparagraph designation 
                        and heading and all that follows 
                        through ``2007'' and inserting the 
                        following:
                    ``(B) Subsequent fiscal years.--For each of 
                fiscal years 2004 through 2012''; and
                    (B) in subsection (d)(2), by striking 
                ``each of the fiscal years 1991 through 2007'' 
                and inserting ``each of fiscal years 2008 
                through 2012''.
            (4) Distribution of surplus commodities to special 
        nutrition projects.--Section 1114(a)(2)(A) of the 
        Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) 
        is amended in the first sentence by striking 
        ``Effective through September 30, 2007'' and inserting 
        ``For each of fiscal years 2008 through 2012''.
    (c) Farm Security and Rural Investment.--
            (1) Seniors farmers' market nutrition program.--
        Section 4402 of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 3007) is amended by striking 
        subsection (a) and inserting the following:
    ``(a) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary of Agriculture shall use to carry 
out and expand the seniors farmers' market nutrition program 
$20,600,000 for each of fiscal years 2008 through 2012.''.
            (2) Nutrition information and awareness pilot 
        program.--Section 4403(f) of the Farm Security and 
        Rural Investment Act of 2002 (7 U.S.C. 3171 note; 
        Public Law 107-171) is amended by striking ``2007'' and 
        inserting ``2012''.

SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES.

    Except as otherwise provided in this title, this title and 
the amendments made by this title take effect on October 1, 
2008.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 5001. DIRECT LOANS.

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

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

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

SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

    Section 304 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1924) is amended to read as follows:

``SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

    ``(a) In General.--The Secretary may make or guarantee 
qualified conservation loans to eligible borrowers under this 
section.
    ``(b) Definitions.--In this section:
            ``(1) Qualified conservation loan.--The term 
        `qualified conservation loan' means a loan, the 
        proceeds of which are used to cover the costs to the 
        borrower of carrying out a qualified conservation 
        project.
            ``(2) Qualified conservation project.--The term 
        `qualified conservation project' means conservation 
        measures that address provisions of a conservation plan 
        of the eligible borrower.
            ``(3) Conservation plan.--The term `conservation 
        plan' means a plan, approved by the Secretary, that, 
        for a farming or ranching operation, identifies the 
        conservation activities that will be addressed with 
        loan funds provided under this section, including--
                    ``(A) the installation of conservation 
                structures to address soil, water, and related 
                resources;
                    ``(B) the establishment of forest cover for 
                sustained yield timber management, erosion 
                control, or shelter belt purposes;
                    ``(C) the installation of water 
                conservation measures;
                    ``(D) the installation of waste management 
                systems;
                    ``(E) the establishment or improvement of 
                permanent pasture;
                    ``(F) compliance with section 1212 of the 
                Food Security Act of 1985; and
                    ``(G) other purposes consistent with the 
                plan, including the adoption of any other 
                emerging or existing conservation practices, 
                techniques, or technologies approved by the 
                Secretary.
    ``(c) Eligibility.--
            ``(1) In general.--The Secretary may make or 
        guarantee loans to farmers or ranchers in the United 
        States, farm cooperatives, private domestic 
        corporations, partnerships, joint operations, trusts, 
        or limited liability companies that are controlled by 
        farmers or ranchers and engaged primarily and directly 
        in agricultural production in the United States.
            ``(2) Requirements.--To be eligible for a loan 
        under this section, applicants shall meet the 
        requirements in paragraphs (1) and (2) of section 
        302(a).
    ``(d) Priority.--In making or guaranteeing loans under this 
section, the Secretary shall give priority to--
            ``(1) qualified beginning farmers or ranchers and 
        socially disadvantaged farmers or ranchers;
            ``(2) owners or tenants who use the loans to 
        convert to sustainable or organic agricultural 
        production systems; and
            ``(3) producers who use the loans to build 
        conservation structures or establish conservation 
        practices to comply with section 1212 of the Food 
        Security Act of 1985.
    ``(e) Limitations Applicable to Loan Guarantees.--The 
portion of a loan that the Secretary may guarantee under this 
section shall be 75 percent of the principal amount of the 
loan.
    ``(f) Administrative Provisions.--The Secretary shall 
ensure, to the maximum extent practicable, that loans made or 
guaranteed under this section are distributed across diverse 
geographic regions.
    ``(g) Credit Eligibility.--The provisions of paragraphs (1) 
and (3) of section 333 shall not apply to loans made or 
guaranteed under this section.
    ``(h) Authorization of Appropriations.--For each of fiscal 
years 2008 through 2012, there are authorized to be 
appropriated to the Secretary such funds as are necessary to 
carry out this section.''.

SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

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

SEC. 5004. DOWN PAYMENT LOAN PROGRAM.

    Section 310E of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1935) is amended--
            (1) in subsection (a)(1), by striking ``and 
        ranchers'' and inserting ``or ranchers and socially 
        disadvantaged farmers or ranchers'';
            (2) in subsection (b)--
                    (A) by striking paragraph (1) and inserting 
                the following;
            ``(1) Principal.--Each loan made under this section 
        shall be in an amount that does not exceed 45 percent 
        of the least of--
                    ``(A) the purchase price of the farm or 
                ranch to be acquired;
                    ``(B) the appraised value of the farm or 
                ranch to be acquired; or
                    ``(C) $500,000.
            ``(2) Interest rate.--The interest rate on any loan 
        made by the Secretary under this section shall be a 
        rate equal to the greater of--
                    ``(A) the difference obtained by 
                subtracting 4 percent from the interest rate 
                for farm ownership loans under this subtitle; 
                or
                    ``(B) 1.5 percent.''; and
                    (B) in paragraph (3), by striking ``15'' 
                and inserting ``20'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``10'' 
                and inserting ``5'';
                    (B) by striking paragraph (2) and 
                redesignating paragraph (3) as paragraph (2); 
                and
                    (C) in paragraph (2)(B) (as so 
                redesignated), by striking ``15-year'' and 
                inserting ``20-year'';
            (4) in subsection (d)--
                    (A) in paragraph (3)--
                            (i) by inserting ``and socially 
                        disadvantaged farmers or ranchers'' 
                        after ``ranchers''; and
                            (ii) by striking ``and'' at the 
                        end;
                    (B) in paragraph (4), by striking ``and 
                ranchers.'' and inserting ``or ranchers or 
                socially disadvantaged farmers or ranchers; 
                and''; and
                    (C) by adding at the end the following:
            ``(5) establish annual performance goals to promote 
        the use of the down payment loan program and other 
        joint financing arrangements as the preferred choice 
        for direct real estate loans made by any lender to a 
        qualified beginning farmer or rancher or socially 
        disadvantaged farmer or rancher.''; and
            (5) by adding at the end the following:
    ``(e) Socially Disadvantaged Farmer or Rancher Defined.--In 
this section, the term `socially disadvantaged farmer or 
rancher' has the meaning given that term in section 
355(e)(2).''.

SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED 
                    FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.

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

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

    ``(a) In General.--The Secretary shall, in accordance with 
this section, guarantee a loan made by a private seller of a 
farm or ranch to a qualified beginning farmer or rancher or 
socially disadvantaged farmer or rancher (as defined in section 
355(e)(2)) on a contract land sales basis.
    ``(b) Eligibility.--In order to be eligible for a loan 
guarantee under subsection (a)--
            ``(1) the qualified beginning farmer or rancher or 
        socially disadvantaged farmer or rancher shall--
                    ``(A) on the date the contract land sale 
                that is subject of the loan is complete, own 
                and operate the farm or ranch that is the 
                subject of the contract land sale;
                    ``(B) have a credit history that--
                            ``(i) includes a record of 
                        satisfactory debt repayment, as 
                        determined by the Secretary; and
                            ``(ii) is acceptable to the 
                        Secretary; and
                    ``(C) demonstrate to the Secretary that the 
                farmer or rancher, as the case may be, is 
                unable to obtain sufficient credit without a 
                guarantee to finance any actual need of the 
                farmer or rancher, as the case may be, at a 
                reasonable rate or term; and
            ``(2) the loan shall meet applicable underwriting 
        criteria, as determined by the Secretary.
    ``(c) Limitations.--
            ``(1) Down payment.--The Secretary shall not 
        provide a loan guarantee under subsection (a) if the 
        contribution of the qualified beginning farmer or 
        rancher or socially disadvantaged farmer or rancher to 
        the down payment for the farm or ranch that is the 
        subject of the contract land sale would be less than 5 
        percent of the purchase price of the farm or ranch.
            ``(2) Maximum purchase price.--The Secretary shall 
        not provide a loan guarantee under subsection (a) if 
        the purchase price or the appraisal value of the farm 
        or ranch that is the subject of the contract land sale 
        is greater than $500,000.
    ``(d) Period of Guarantee.--The period during which a loan 
guarantee under this section is in effect shall be the 10-year 
period beginning with the date the guarantee is provided.
    ``(e) Guarantee Plan.--
            ``(1) Selection of plan.--A private seller of a 
        farm or ranch who makes a loan that is guaranteed by 
        the Secretary under subsection (a) may select--
                    ``(A) a prompt payment guarantee plan, 
                which shall cover--
                            ``(i) 3 amortized annual 
                        installments; or
                            ``(ii) an amount equal to 3 annual 
                        installments (including an amount equal 
                        to the total cost of any tax and 
                        insurance incurred during the period 
                        covered by the annual installments); or
                    ``(B) a standard guarantee plan, which 
                shall cover an amount equal to 90 percent of 
                the outstanding principal of the loan.
            ``(2) Eligiblity for standard guarantee plan.--In 
        order for a private seller to be eligible for a 
        standard guarantee plan referred to in paragraph 
        (1)(B), the private seller shall--
                    ``(A) secure a commercial lending 
                institution or similar entity, as determined by 
                the Secretary, to serve as an escrow agent; or
                    ``(B) in cooperation with the farmer or 
                rancher, use an appropriate alternate 
                arrangement, as determined by the Secretary.
    ``(f) Transition From Pilot Program.--
            ``(1) In general.--The Secretary may phase-in the 
        implementation of the changes to the Beginning Farmer 
        and Rancher and Socially Disadvantaged Farmer or 
        Rancher Contract Land Sales Program provided for in 
        this section.
            ``(2) Limitation.--All changes to the Beginning 
        Farmer and Rancher and Socially Disadvantaged Farmer or 
        Rancher Contract Land Sales Program must be implemented 
        for the 2011 Fiscal Year.''.

                      Subtitle B--Operating Loans

SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.

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

``SEC. 311. PERSONS ELIGIBLE FOR LOANS.

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

SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

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

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

    Section 5102 of the Farm Security And Rural Investment Act 
of 2002 (7 U.S.C. 1949 note; Public Law 107-171) is amended by 
striking ``September 30, 2007'' and inserting ``December 31, 
2010''.

                      Subtitle C--Emergency Loans

SEC. 5201. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR EMERGENCY 
                    LOANS.

    Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended--
            (1) in paragraph (1), by striking ``farmers, 
        ranchers'' and inserting ``farmers or ranchers 
        (including equine farmers or ranchers)''; and
            (2) in paragraph (2)(A), by striking ``farming, 
        ranching,'' and inserting ``farming or ranching 
        (including equine farming or ranching)''.

                 Subtitle D--Administrative Provisions

SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS 
                    PILOT PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981-2008r) is amended by inserting after section 
333A the following:

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

    ``(a) Definitions.--In this section:
            ``(1) Demonstration program.--The term 
        `demonstration program' means a demonstration program 
        carried out by a qualified entity under the pilot 
        program established in subsection (b)(1).
            ``(2) Eligible participant.--The term `eligible 
        participant' means a qualified beginning farmer or 
        rancher that--
                    ``(A) lacks significant financial resources 
                or assets; and
                    ``(B) has an income that is less than--
                            ``(i) 80 percent of the median 
                        income of the State in which the farmer 
                        or rancher resides; or
                            ``(ii) 200 percent of the most 
                        recent annual Federal Poverty Income 
                        Guidelines published by the Department 
                        of Health and Human Services for the 
                        State.
            ``(3) Individual development account.--The term 
        `individual development account' means a savings 
        account described in subsection (b)(4)(A).
            ``(4) Qualified entity.--
                    ``(A) In general.--The term `qualified 
                entity' means--
                            ``(i) 1 or more organizations--
                                    ``(I) described in section 
                                501(c)(3) of the Internal 
                                Revenue Code of 1986; and
                                    ``(II) exempt from taxation 
                                under section 501(a) of such 
                                Code; or
                            ``(ii) a State, local, or tribal 
                        government submitting an application 
                        jointly with an organization described 
                        in clause (i).
                    ``(B) No prohibition on collaboration.--An 
                organization described in subparagraph (A)(i) 
                may collaborate with a financial institution or 
                for-profit community development corporation to 
                carry out the purposes of this section.
    ``(b) Pilot Program.--
            ``(1) In general.--The Secretary shall establish a 
        pilot program to be known as the `New Farmer Individual 
        Development Accounts Pilot Program' under which the 
        Secretary shall work through qualified entities to 
        establish demonstration programs--
                    ``(A) of at least 5 years in duration; and
                    ``(B) in at least 15 States.
            ``(2) Coordination.--The Secretary shall operate 
        the pilot program through, and in coordination with the 
        farm loan programs of, the Farm Service Agency.
            ``(3) Reserve funds.--
                    ``(A) In general.--A qualified entity 
                carrying out a demonstration program under this 
                section shall establish a reserve fund 
                consisting of a non-Federal match of 50 percent 
                of the total amount of the grant awarded to the 
                demonstration program under this section.
                    ``(B) Federal funds.--After the qualified 
                entity has deposited the non-Federal matching 
                funds described in subparagraph (A) in the 
                reserve fund, the Secretary shall provide the 
                total amount of the grant awarded under this 
                section to the demonstration program for 
                deposit in the reserve fund.
                    ``(C) Use of funds.--Of the funds deposited 
                under subparagraph (B) in the reserve fund 
                established for a demonstration program, the 
                qualified entity carrying out the demonstration 
                program--
                            ``(i) may use up to 10 percent for 
                        administrative expenses; and
                            ``(ii) shall use the remainder in 
                        making matching awards described in 
                        paragraph (4)(B)(ii)(I).
                    ``(D) Interest.--Any interest earned on 
                amounts in a reserve fund established under 
                subparagraph (A) may be used by the qualified 
                entity as additional matching funds for, or to 
                administer, the demonstration program.
                    ``(E) Guidance.--The Secretary shall issue 
                guidance regarding the investment requirements 
                of reserve funds established under this 
                paragraph.
                    ``(F) Reversion.--On the date on which all 
                funds remaining in any individual development 
                account established by a qualified entity have 
                reverted under paragraph (5)(B)(ii) to the 
                reserve fund established by the qualified 
                entity, there shall revert to the Treasury of 
                the United States a percentage of the amount 
                (if any) in the reserve fund equal to--
                            ``(i) the amount of Federal funds 
                        deposited in the reserve fund under 
                        subparagraph (B) that were not used for 
                        administrative expenses; divided by
                            ``(ii) the total amount of funds 
                        deposited in the reserve fund.
            ``(4) Individual development accounts.--
                    ``(A) In general.--A qualified entity 
                receiving a grant under this section shall 
                establish and administer individual development 
                accounts for eligible participants.
                    ``(B) Contract requirements.--To be 
                eligible to receive funds under this section 
                from a qualified entity, an eligible 
                participant shall enter into a contract with 
                only 1 qualified entity under which--
                            ``(i) the eligible participant 
                        agrees--
                                    ``(I) to deposit a certain 
                                amount of funds of the eligible 
                                participant in a personal 
                                savings account, as prescribed 
                                by the contractual agreement 
                                between the eligible 
                                participant and the qualified 
                                entity;
                                    ``(II) to use the funds 
                                described in subclause (I) only 
                                for 1 or more eligible 
                                expenditures described in 
                                paragraph (5)(A); and
                                    ``(III) to complete 
                                financial training; and
                            ``(ii) the qualified entity 
                        agrees--
                                    ``(I) to deposit, not later 
                                than 1 month after an amount is 
                                deposited pursuant to clause 
                                (i)(I), at least a 100-percent, 
                                and up to a 200-percent, match 
                                of that amount into the 
                                individual development account 
                                established for the eligible 
                                participant; and
                                    ``(II) with uses of funds 
                                proposed by the eligible 
                                participant.
                    ``(C) Limitation.--
                            ``(i) In general.--A qualified 
                        entity administering a demonstration 
                        program under this section may provide 
                        not more than $6,000 for each fiscal 
                        year in matching funds to the 
                        individual development account 
                        established by the qualified entity for 
                        an eligible participant.
                            ``(ii) Treatment of amount.--An 
                        amount provided under clause (i) shall 
                        not be considered to be a gift or loan 
                        for mortgage purposes.
            ``(5) Eligible expenditures.--
                    ``(A) In general.--An eligible expenditure 
                described in this subparagraph is an 
                expenditure--
                            ``(i) to purchase farmland or make 
                        a down payment on an accepted purchase 
                        offer for farmland;
                            ``(ii) to make mortgage payments on 
                        farmland purchased pursuant to clause 
                        (i), for up to 180 days after the date 
                        of the purchase;
                            ``(iii) to purchase breeding stock, 
                        fruit or nut trees, or trees to harvest 
                        for timber; and
                            ``(iv) for other similar 
                        expenditures, as determined by the 
                        Secretary.
                    ``(B) Timing.--
                            ``(i) In general.--An eligible 
                        participant may make an eligible 
                        expenditure at any time during the 2-
                        year period beginning on the date on 
                        which the last matching funds are 
                        provided under paragraph (4)(B)(ii)(I) 
                        to the individual development account 
                        established for the eligible 
                        participant.
                            ``(ii) Unexpended funds.--At the 
                        end of the period described in clause 
                        (i), any funds remaining in an 
                        individual development account 
                        established for an eligible participant 
                        shall revert to the reserve fund of the 
                        demonstration program under which the 
                        account was established.
    ``(c) Applications.--
            ``(1) In general.--A qualified entity that seeks to 
        carry out a demonstration program under this section 
        may submit to the Secretary an application at such 
        time, in such form, and containing such information as 
        the Secretary may prescribe.
            ``(2) Criteria.--In considering whether to approve 
        an application to carry out a demonstration program 
        under this section, the Secretary shall assess--
                    ``(A) the degree to which the demonstration 
                program described in the application is likely 
                to aid eligible participants in successfully 
                pursuing new farming opportunities;
                    ``(B) the experience and ability of the 
                qualified entity to responsibly administer the 
                demonstration program;
                    ``(C) the experience and ability of the 
                qualified entity in recruiting, educating, and 
                assisting eligible participants to increase 
                economic independence and pursue or advance 
                farming opportunities;
                    ``(D) the aggregate amount of direct funds 
                from non-Federal public sector and private 
                sources that are formally committed to the 
                demonstration program as matching 
                contributions;
                    ``(E) the adequacy of the plan of the 
                qualified entity to provide information 
                relevant to an evaluation of the demonstration 
                program; and
                    ``(F) such other factors as the Secretary 
                considers to be appropriate.
            ``(3) Preferences.--In considering an application 
        to conduct a demonstration program under this section, 
        the Secretary shall give preference to an application 
        from a qualified entity that demonstrates--
                    ``(A) a track record of serving clients 
                targeted by the program, including, as 
                appropriate, socially disadvantaged farmers or 
                ranchers (as defined in section 355(e)(2)); and
                    ``(B) expertise in dealing with financial 
                management aspects of farming.
            ``(4) Approval.--Not later than 1 year after the 
        date of enactment of this section, in accordance with 
        this section, the Secretary shall, on a competitive 
        basis, approve such applications to conduct 
        demonstration programs as the Secretary considers 
        appropriate.
            ``(5) Term of authority.--If the Secretary approves 
        an application to carry out a demonstration program, 
        the Secretary shall authorize the applicant to carry 
        out the project for a period of 5 years, plus an 
        additional 2 years to make eligible expenditures in 
        accordance with subsection (b)(5)(B).
    ``(d) Grant Authority.--
            ``(1) In general.--The Secretary shall make a grant 
        to a qualified entity authorized to carry out a 
        demonstration program under this section.
            ``(2) Maximum amount of grants.--The aggregate 
        amount of grant funds provided to a demonstration 
        program carried out under this section shall not exceed 
        $250,000.
            ``(3) Timing of grant payments.--The Secretary 
        shall pay the amounts awarded under a grant made under 
        this section--
                    ``(A) on the awarding of the grant; or
                    ``(B) pursuant to such payment plan as the 
                qualified entity may specify.
    ``(e) Reports.--
            ``(1) Annual progress reports.--
                    ``(A) In general.--Not later than 60 days 
                after the end of the calendar year in which the 
                Secretary authorizes a qualified entity to 
                carry out a demonstration program under this 
                section, and annually thereafter until the 
                conclusion of the demonstration program, the 
                qualified entity shall prepare an annual report 
                that includes, for the period covered by the 
                report--
                            ``(i) an evaluation of the progress 
                        of the demonstration program;
                            ``(ii) information about the 
                        demonstration program, including the 
                        eligible participants and the 
                        individual development accounts that 
                        have been established; and
                            ``(iii) such other information as 
                        the Secretary may require.
                    ``(B) Submission of reports.--A qualified 
                entity shall submit each report required under 
                subparagraph (A) to the Secretary.
            ``(2) Reports by the secretary.--Not later than 1 
        year after the date on which all demonstration programs 
        under this section are concluded, the Secretary shall 
        submit to Congress a final report that describes the 
        results and findings of all reports and evaluations 
        carried out under this section.
    ``(f) Annual Review.--The Secretary may conduct an annual 
review of the financial records of a qualified entity--
            ``(1) to assess the financial soundness of the 
        qualified entity; and
            ``(2) to determine the use of grant funds made 
        available to the qualified entity under this section.
    ``(g) Regulations.--In carrying out this section, the 
Secretary may promulgate regulations to ensure that the program 
includes provisions for--
            ``(1) the termination of demonstration programs;
            ``(2) control of the reserve funds in the case of 
        such a termination;
            ``(3) transfer of demonstration programs to other 
        qualified entities; and
            ``(4) remissions from a reserve fund to the 
        Secretary in a case in which a demonstration program is 
        terminated without transfer to a new qualified entity.
    ``(h) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $5,000,000 for 
each of fiscal years 2008 through 2012.''.

SEC. 5302. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES.

    (a) Inventory Sales Preferences.--Section 335(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) 
is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) in the subparagraph heading, by 
                        inserting ``; socially disadvantaged 
                        farmer or rancher'' after ``or 
                        rancher'';
                            (ii) in clause (i), by inserting 
                        ``or a socially disadvantaged farmer or 
                        rancher'' after ``or rancher'';
                            (iii) in clause (ii), by inserting 
                        ``or socially disadvantaged farmer or 
                        rancher'' after ``or rancher'';
                            (iv) in clause (iii), by inserting 
                        ``or a socially disadvantaged farmer or 
                        rancher'' after ``or rancher''; and
                            (v) in clause (iv), by striking 
                        ``and ranchers'' and inserting ``or 
                        ranchers and socially disadvantaged 
                        farmers or ranchers''; and
                    (B) in subparagraph (C), by inserting ``or 
                a socially disadvantaged farmer or rancher'' 
                after ``or rancher'';
            (2) in paragraph (5)(B)--
                    (A) in clause (i)--
                            (i) in the clause heading, by 
                        inserting ``; socially disadvantaged 
                        farmer or rancher'' after ``or 
                        rancher'';
                            (ii) by inserting ``or a socially 
                        disadvantaged farmer or rancher'' after 
                        ``a beginning farmer or rancher''; and
                            (iii) by inserting ``or the 
                        socially disadvantaged farmer or 
                        rancher'' after ``the beginning farmer 
                        or rancher''; and
                    (B) in clause (ii)--
                            (i) in the matter preceding 
                        subclause (I), by inserting ``or a 
                        socially disadvantaged farmer or 
                        rancher'' after ``or rancher''; and
                            (ii) in subclause (II), by 
                        inserting ``or the socially 
                        disadvantaged farmer or rancher'' after 
                        ``or rancher''; and
            (3) in paragraph (6)--
                    (A) in subparagraph (A), by inserting ``or 
                a socially disadvantaged farmer or rancher'' 
                after ``or rancher''; and
                    (B) in subparagraph (C)--
                            (i) in clause (i)(I), by striking 
                        ``and ranchers'' and inserting ``or 
                        ranchers and socially disadvantaged 
                        farmers or ranchers''; and
                            (ii) in clause (ii), by inserting 
                        ``or socially disadvantaged farmers or 
                        ranchers'' after ``or ranchers''.
    (b) Loan Fund Set-Asides.--Section 346(b)(2) of such Act (7 
U.S.C. 1994(b)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i)--
                            (i) in subclause (I), by striking 
                        ``70 percent'' and inserting ``an 
                        amount that is not less than 75 percent 
                        of the total amount''; and
                            (ii) in subclause (II)--
                                    (I) in the subclause 
                                heading, by inserting ``; joint 
                                financing arrangements'' after 
                                ``payment loans'';
                                    (II) by striking ``60 
                                percent'' and inserting ``an 
                                amount not less than \2/3\ of 
                                the amount''; and
                                    (III) by inserting ``and 
                                joint financing arrangements 
                                under section 307(a)(3)(D)'' 
                                after ``section 310E''; and
                    (B) in clause (ii)(III), by striking ``2003 
                through 2007, 35 percent'' and inserting ``2008 
                through 2012, an amount that is not less than 
                50 percent of the total amount''; and
            (2) in subparagraph (B)(i), by striking ``25 
        percent'' and inserting ``an amount that is not less 
        than 40 percent of the total amount''.

SEC. 5303. LOAN AUTHORIZATION LEVELS.

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

SEC. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981-2008r) is amended by inserting after section 
344 the following:

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

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

SEC. 5305. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO REACQUIRE 
                    HOMESTEAD PROPERTY TO IMMEDIATE FAMILY MEMBERS OF 
                    BORROWER-OWNER.

    Section 352(c)(4)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2000(c)(4)(B)) is amended--
            (1) in the 1st sentence, by striking ``, the 
        borrower-owner'' inserting ``of a borrower-owner who is 
        a socially disadvantaged farmer or rancher (as defined 
        in section 355(e)(2)), the borrower-owner or a member 
        of the immediate family of the borrower-owner''; and
            (2) in the 2nd sentence, by inserting ``or 
        immediate family member, as the case may be,'' before 
        ``from''.

SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981-2008r) is amended by inserting after section 
364 the following:

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

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

                        Subtitle E--Farm Credit

SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION.

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

SEC. 5402. TECHNICAL CORRECTION.

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

SEC. 5403. BANK FOR COOPERATIVES VOTING STOCK.

    (a) In General.--Section 3.3(c) of the Farm Credit Act of 
1971 (12 U.S.C. 2124(c)) is amended by striking ``and (ii)'' 
and inserting ``(ii) other categories of persons and entities 
described in sections 3.7 and 3.8 eligible to borrow from the 
bank, as determined by the bank's board of directors; and 
(iii)''.
    (b) Conforming Amendments.--Section 4.3A(c)(1)(D) of such 
Act (12 U.S.C. 2154a(c)(1)(D)) is amended by redesignating 
clauses (ii) and (iii) as clauses (iii) and (iv), respectively, 
and inserting after clause (i) the following:
                            ``(ii) persons and entities 
                        eligible to borrow from the banks for 
                        cooperatives, as described in section 
                        3.3(c)(ii);''.

SEC. 5404. PREMIUMS.

    (a) Amount in Fund Not Exceeding Secure Base Amount.--
Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 
2277a-4(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph 
                (A)--
                            (i) by striking ``paragraph (2)'' 
                        and inserting ``paragraph (3)''; and
                            (ii) by striking ``annual'' ; and
                    (B) by striking subparagraphs (A) through 
                (D) and inserting the following:
                    ``(A) the average outstanding insured 
                obligations issued by the bank for the calendar 
                year, after deducting from the obligations the 
                percentages of the guaranteed portions of loans 
                and investments described in paragraph (2), 
                multiplied by 0.0020; and
                    ``(B) the product obtained by multiplying--
                            ``(i) the sum of--
                                    ``(I) the average principal 
                                outstanding for the calendar 
                                year on loans made by the bank 
                                that are in nonaccrual status; 
                                and
                                    ``(II) the average amount 
                                outstanding for the calendar 
                                year of other-than-temporarily 
                                impaired investments made by 
                                the bank; by
                            ``(ii) 0.0010.'';
            (2) by striking paragraph (4);
            (3) by redesignating paragraphs (2) and (3) as 
        paragraphs (3) and (4), respectively;
            (4) by inserting after paragraph (1) the following:
            ``(2) Deductions from average outstanding insured 
        obligations.--The average outstanding insured 
        obligations issued by the bank for the calendar year 
        referred to in paragraph (1)(A) shall be reduced by 
        deducting from the obligations the sum of (as 
        determined by the Corporation)--
                    ``(A) 90 percent of each of--
                            ``(i) the average principal 
                        outstanding for the calendar year on 
                        the guaranteed portions of Federal 
                        government-guaranteed loans made by the 
                        bank that are in accrual status; and
                            ``(ii) the average amount 
                        outstanding for the calendar year of 
                        the guaranteed portions of Federal 
                        government-guaranteed investments made 
                        by the bank that are not permanently 
                        impaired; and
                    ``(B) 80 percent of each of--
                            ``(i) the average principal 
                        outstanding for the calendar year on 
                        the guaranteed portions of State 
                        government-guaranteed loans made by the 
                        bank that are in accrual status; and
                            ``(ii) the average amount 
                        outstanding for the calendar year of 
                        the guaranteed portions of State 
                        government-guaranteed investments made 
                        by the bank that are not permanently 
                        impaired.'';
            (5) in paragraph (3) (as so redesignated by 
        paragraph (3) of this subsection), by striking 
        ``annual''; and
            (6) in paragraph (4) (as so redesignated by 
        paragraph (3) of this subsection)--
                    (A) in the paragraph heading, by inserting 
                ``or investments'' after ``loans''; and
                    (B) in the matter preceding subparagraph 
                (A), by striking ``As used'' and all 
                thatfollowsthrough ``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 
                investment, that is guaranteed--''.
    (b) Amount in Fund Exceeding Secure Base Amount.--Section 
5.55(b) of such Act (12 U.S.C. 2277a-4(b)) is amended by 
striking ``annual''.
    (c) Secure Base Amount.--Section 5.55(c) of such Act (12 
U.S.C. 2277a-4(c)) is amended--
            (1) by striking ``For purposes'' and inserting the 
        following:
            ``(1) In general.--For purposes'';
            (2) by striking ``(adjusted downward'' and all that 
        follows through ``by the Corporation)'' and inserting 
        ``(as adjusted under paragraph (2))''; and
            (3) by adding at the end the following:
            ``(2) Adjustment.--The aggregate outstanding 
        insured obligations of all insured System banks under 
        paragraph (1) shall be adjusted downward to exclude an 
        amount equal to the sum of (as determined by the 
        corporation)--
                    ``(A) 90 percent of each of--
                            ``(i) the guaranteed portions of 
                        principal outstanding on Federal 
                        government-guaranteed loans in accrual 
                        status made by the banks; and
                            ``(ii) the guaranteed portions of 
                        the amount of Federal government-
                        guaranteed investments made by the 
                        banks that are not permanently 
                        impaired; and
                    ``(B) 80 percent of each of--
                            ``(i) the guaranteed portions of 
                        principal outstanding on State 
                        government-guaranteed loans in accrual 
                        status made by the banks; and
                            ``(ii) the guaranteed portions of 
                        the amount of State government-
                        guaranteed investments made by the 
                        banks that are not permanently 
                        impaired.''.
    (d) Determination of Loan and Investment Amounts.--Section 
5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended--
            (1) in the subsection heading, by striking 
        ``Principal Outstanding'' and inserting ``Loan and 
        Investment Amounts'';
            (2) in the matter preceding paragraph (1), by 
        striking ``For the purpose'' and all that follows 
        through ``made--'' and inserting ``For the purpose of 
        subsections (a) and (c), the principal outstanding on 
        all loans made by an insured System bank, and the 
        amount outstanding on all investments made by an 
        insured System bank, shall be determined based on--'';
            (3) in each of paragraphs (1), (2), and (3), by 
        inserting ``all loans or investments made'' before 
        ``by'' the first place it appears; and
            (4) in each of paragraphs (1) and (2), by inserting 
        ``or investments'' after ``that is able to make such 
        loans'' each place it appears.
    (e) Allocation to System Institutions of Excess Reserves.--
Section 5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is amended--
            (1) in paragraph (3), by striking ``the average 
        secure base amount for the calendar year (as calculated 
        on an average daily balance basis)'' and inserting 
        ``the secure base amount'';
            (2) in paragraph (4), by striking subparagraph (B) 
        and inserting the following:
                    ``(B) there shall be credited to the 
                allocated insurance reserves account of each 
                insured system bank an amount that bears the 
                same ratio to the total amount (less any amount 
                credited under subparagraph (A)) as--
                            ``(i) the average principal 
                        outstanding for the calendar year on 
                        insured obligations issued by the bank 
                        (after deducting from the principal the 
                        percentages of the guaranteed portions 
                        of loans and investments described in 
                        subsection (a)(2)); bears to
                            ``(ii) the average principal 
                        outstanding for the calendar year on 
                        insured obligations issued by all 
                        insured System banks (after deducting 
                        from the principal the percentages of 
                        the guaranteed portions of loans and 
                        investments described in subsection 
                        (a)(2)).''; and
            (3) in paragraph (6)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause 
                        (i), by striking ``beginning more'' and 
                        all that follows through ``January 1, 
                        2005'';
                            (ii) by striking clause (i) and 
                        inserting the following:
                            ``(i) subject to subparagraph (D), 
                        pay to each insured System bank, in a 
                        manner determined by the Corporation, 
                        an amount equal to the balance in the 
                        Allocated Insurance Reserves Account of 
                        the System bank; and''; and
                            (iii) in clause (ii)--
                                    (I) by striking 
                                ``subparagraphs (C), (E), and 
                                (F)'' and inserting 
                                ``subparagraphs (C) and (E)''; 
                                and
                                    (II) by striking ``, of the 
                                lesser of--'' and all that 
                                follows through the end of 
                                subclause (II) and inserting 
                                ``at the time of the 
                                termination of the Financial 
                                Assistance Corporation, of the 
                                balance in the Allocated 
                                Insurance Reserves Account 
                                established under paragraph 
                                (1)(B).'';
                    (B) in subparagraph (C)--
                            (i) in clause (i), by striking 
                        ``(in addition to the amounts described 
                        in subparagraph (F)(ii))''; and
                            (ii) by striking clause (ii) and 
                        inserting the following:
                            ``(ii) Termination of account.--On 
                        disbursement of an amount equal to 
                        $56,000,000, the Corporation shall--
                                    ``(I) close the account 
                                established under paragraph 
                                (1)(B); and
                                    ``(II) transfer any 
                                remaining funds in the Account 
                                to the remaining Allocated 
                                Insurance Reserves Accounts in 
                                accordance with paragraph 
                                (4)(B) for the calendar year in 
                                which the transfer occurs.''; 
                                and
                    (C) by striking subparagraph (F).

SEC. 5405. CERTIFICATION OF PREMIUMS.

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

SEC. 5406. RURAL UTILITY LOANS.

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

SEC. 5407. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT 
                    ASSOCIATIONS.

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

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

    ``(a) Equalization of Loan-Making Powers.--
            ``(1) In general.--
                    ``(A) Federal land bank associations.--
                Subject to paragraph (2), any association that 
                owns a Federal land bank association authorized 
                as of January 1, 2007, to make long-term loans 
                under title I in its chartered territory within 
                the geographic area described in subsection (b) 
                may make short- and intermediate-term loans and 
                otherwise operate as a production credit 
                association under title II within that same 
                chartered territory.
                    ``(B) Production credit associations.--
                Subject to paragraph (2), any association that 
                under its charter has title I lending authority 
                and that owns a production credit association 
                authorized as of January 1, 2007, to make 
                short- and intermediate-term loans under title 
                II in the geographic area described in 
                subsection (b) may make long-term loans and 
                otherwise operate, directly or through a 
                subsidiary association, as a Federal land bank 
                association or Federal land credit association 
                under title I in the geographic area.
                    ``(C) Farm credit bank.--Notwithstanding 
                section 5.17(a), the Farm Credit Bank with 
                which any association had a written financing 
                agreement as of January 1, 2007, may make loans 
                and extend other comparable financial 
                assistance with respect to, and may purchase, 
                any loans made under the new authority provided 
                under subparagraph (A) or (B) by an association 
                exercising such authority.
            ``(2) Required approvals.--An association may 
        exercise the additional authority provided for in 
        paragraph (1) only after the exercise of the authority 
        is approved by--
                    ``(A) the board of directors of the 
                association; and
                    ``(B) a majority of the voting stockholders 
                of the association (or, if the association is a 
                subsidiary of another association, the voting 
                stockholders of the parent association) voting, 
                in person or by proxy, at a duly authorized 
                meeting of stockholders in accordance with the 
                process described in section 7.11.
    ``(b) Applicability.--This section applies only to 
associations the chartered territory of which was within the 
geographic area served by the Federal intermediate credit bank 
immediately prior to its merger with a Farm Credit Bank under 
section 410(e)(1) of the Agricultural Credit Act of 1987 (12 
U.S.C. 2011 note; Public Law 100-233).''.
    (b) Charter Amendments.--Section 5.17(a) of the Farm Credit 
Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the end 
the following:
            ``(15)(A) Approve amendments to the charters of 
        institutions of the Farm Credit System to implement the 
        equalization of loan-making powers of a Farm Credit 
        System association under section 7.7.
            ``(B) Amendments described in subparagraph (A) to 
        the charters of an association and the related Farm 
        Credit Bank shall be approved by the Farm Credit 
        Administration, subject to any conditions of approval 
        imposed, by not later than 30 days after the date on 
        which the Farm Credit Administration receives all 
        approvals required by section 7.7(a)(2).''.
    (c) Conforming Amendments.--
            (1) Section 5.17(a)(2) of the Farm Credit Act of 
        1971 (12 U.S.C. 2252(a)(2)) is amended--
                    (A) by striking ``(2)(A)'' and inserting 
                ``(2)''; and
                    (B) by striking subparagraphs (B) and (C).
            (2) Section 410 of the 1987 act.--Section 
        410(e)(1)(A)(iii) of the Agricultural Credit Act of 
        1987 (12 U.S.C. 2011 note; Public Law 100-233) is 
        amended by inserting ``(except section 7.7 of that 
        Act)'' after ``(12 U.S.C. 2001 et seq.)''.
            (3) Section 401 of the 1992 act.--Section 401(b) of 
        the Farm Credit Banks and Associations Safety and 
        Soundness Act of 1992 (12 U.S.C. 2011 note; Public Law 
        102-552) is amended--
                    (A) by inserting ``(except section 7.7 of 
                the Farm Credit Act of 1971)'' after 
                ``provision of law''; and
                    (B) by striking ``, subject to such 
                limitations'' and all that follows through the 
                end of the paragraph and inserting a period.
    (d) Effective Date.--The amendments made by this section 
take effect on January 1, 2010.

                       Subtitle F--Miscellaneous

SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

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

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

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

                      TITLE VI--RURAL DEVELOPMENT

        Subtitle A--Consolidated Farm and Rural Development Act

SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.

    Section 306(a)(2)(B)(vii) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended 
by striking ``2002 through 2007'' and inserting ``2008 through 
2012''.

SEC. 6002. SEARCH GRANTS.

    (a) In General.--Section 306(a)(2) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(a)(2)) is amended by 
adding at the end the following:
                    ``(C) Special evaluation assistance for 
                rural communities and households program.--
                            ``(i) In general.--The Secretary 
                        may establish the Special Evaluation 
                        Assistance for Rural Communities and 
                        Households (SEARCH) program, to make 
                        predevelopment planning grants for 
                        feasibility studies, design assistance, 
                        and technical assistance, to 
                        financially distressed communities in 
                        rural areas with populations of 2,500 
                        or fewer inhabitants for water and 
                        waste disposal projects described in 
                        paragraph (1), this paragraph, and 
                        paragraph (24).
                            ``(ii) Terms.--
                                    ``(I) Documentation.--With 
                                respect to grants made under 
                                this subparagraph, the 
                                Secretary shall require the 
                                lowest amount of documentation 
                                practicable.
                                    ``(II) Matching.--
                                Notwithstanding any other 
                                provisions in this subsection, 
                                the Secretary may fund up to 
                                100 percent of the eligible 
                                costs of grants provided under 
                                this subparagraph, as 
                                determined by the Secretary.
                            ``(iii) Funding.--The Secretary may 
                        use not more than 4 percent of the 
                        total amount of funds made available 
                        for a fiscal year for water, waste 
                        disposal, and essential community 
                        facility activities under this title to 
                        carry out this subparagraph.
                            ``(iv) Relationship to other 
                        authority.--The funds and authorities 
                        provided under this subparagraph are in 
                        addition to any other funds or 
                        authorities the Secretary may have to 
                        carry out activities described in 
                        clause (i).''.
    (b) Conforming Amendment.--Subtitle D of title VI of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 2009ee 
et seq.) is repealed.

SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

    Section 306(a)(11)(D) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by 
striking ``1996 through 2007'' and inserting ``2008 through 
2012''.

SEC. 6004. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN GUARANTEES.

    Section 306(a)(19)(C)(ii) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) is amended 
by striking ``April'' and inserting ``June''.

SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE BROADBAND.

    Section 306(a)(20)(E) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(20)(E)) is amended--
            (1) by striking ``state'' and inserting ``State''; 
        and
            (2) by striking ``dial-up Internet access or''.

SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 306(a)(22)(C) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(22)(C)) is amended by 
striking ``$15,000,000 for fiscal year 2003'' and inserting 
``$25,000,000 for fiscal year 2008''.

SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
                    FACILITIES.

    Section 306(a)(25) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(25)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``tribal colleges and 
                universities'' and inserting ``an entity that 
                is a Tribal College or University''; and
                    (B) by striking ``tribal college or 
                university'' and inserting ``Tribal College or 
                University'';
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Federal share.--The Secretary shall 
                establish the maximum percentage of the cost of 
                the facility that may be covered by a grant 
                under this paragraph, except that the Secretary 
                may not require non-Federal financial support 
                in an amount that is greater than 5 percent of 
                the total cost of the facility.''; and
            (3) in subparagraph (C), by striking ``2003 through 
        2007'' and inserting ``2008 through 2012''.

SEC. 6008. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT 
                    PROGRAM.

    Section 306A(i)(2) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926a(i)(2)) is amended by striking 
``2003 through 2007'' and inserting ``2008 through 2012''.

SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    (a) In General.--Section 306D(d)(1) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1926d(d)(1)) is 
amended by striking ``2001 through 2007'' and inserting ``2008 
through 2012''.
    (b) Rural Communities Assistance.--Section 4009 of the 
Solid Waste Disposal Act (42 U.S.C. 6949) is amended by adding 
at the end the following:
    ``(e) Additional Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated to carry out this section for the Denali 
        Commission to provide assistance to municipalities in 
        the State of Alaska $1,500,000 for each of fiscal years 
        2008 through 2012.
            ``(2) Administration.--For the purpose of carrying 
        out this subsection, the Denali Commission shall--
                    ``(A) be considered a State; and
                    ``(B) comply with all other requirements 
                and limitations of this section.''.

SEC. 6010. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
                    CONSTRUCTION, REFURBISHING, AND SERVICING OF 
                    INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN 
                    RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE 
                    INCOMES.

    Section 306E of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926e) is amended--
            (1) in subsection (b)(2)(C), by striking ``$8,000'' 
        and inserting ``$11,000''; and
            (2) in subsection (d), by striking ``2003 through 
        2007'' and inserting ``2008 through 2012''.

SEC. 6011. INTEREST RATES FOR WATER AND WASTE DISPOSAL FACILITIES 
                    LOANS.

    Section 307(a)(3) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1927(a)(3)) is amended by adding at 
the end the following:
                    ``(E) Interest rates for water and waste 
                disposal facilities loans.--
                            ``(i) In general.--Except as 
                        provided in clause (ii) and 
                        notwithstanding subparagraph (A), in 
                        the case of a direct loan for a water 
                        or waste disposal facility--
                                    ``(I) in the case of a loan 
                                that would be subject to the 5 
                                percent interest rate 
                                limitation under subparagraph 
                                (A), the Secretary shall 
                                establish the interest rate at 
                                a rate that is equal to 60 
                                percent of the current market 
                                yield for outstanding municipal 
                                obligations with remaining 
                                periods to maturity comparable 
                                to the average maturity of the 
                                loan, adjusted to the nearest 
                                \1/8\ of 1 percent; and
                                    ``(II) in the case of a 
                                loan that would be subject to 
                                the 7 percent limitation under 
                                subparagraph (A), the Secretary 
                                shall establish the interest 
                                rate at a rate that is equal to 
                                80 percent of the current 
                                market yield for outstanding 
                                municipal obligations with 
                                remaining periods to maturity 
                                comparable to the average 
                                maturity of the loan, adjusted 
                                to the nearest \1/8\ of 1 
                                percent.
                            ``(ii) Exception.--Clause (i) does 
                        not apply to a loan for a specific 
                        project that is the subject of a loan 
                        that has been approved, but not closed, 
                        as of the date of enactment of this 
                        subparagraph.''.

SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE.

    (a) In General.--Section 310B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932) is amended--
            (1) by striking ``sec. 310B. (a)'' and inserting 
        the following:

``SEC. 310B. ASSISTANCE FOR RURAL ENTITIES.

    ``(a) Loans to Private Business Enterprises.--
            ``(1) Definitions.--In this subsection:'';
            (2) in subsection (a)--
                    (A) by moving the second and fourth 
                sentences so as to appear as the second and 
                first sentences, respectively;
                    (B) in the sentence beginning ``As used in 
                this subsection, the'' (as moved by 
                subparagraph (A)), by striking ``As used in 
                this subsection, the'' and inserting the 
                following:
                    ``(A) Aquaculture.--The'';
                    (C) in the sentence beginning ``For the 
                purposes of this subsection, the'', by striking 
                ``For the purposes of this subsection, the'' 
                and inserting the following:
                    ``(B) Solar energy.--The'';
                    (D) in the sentence beginning ``The 
                Secretary may also''--
                            (i) by striking ``The Secretary may 
                        also'' and inserting the following:
            ``(2) Loan purposes.--The Secretary may'';
                            (ii) by inserting ``and private 
                        investment funds that invest primarily 
                        in cooperative organizations'' after 
                        ``or nonprofit'';
                            (iii) by striking ``of (1) 
                        improving'' and inserting ``of--
                    ``(A) improving'';
                            (iv) by striking ``control, (2) 
                        the'' and inserting ``control;
                    ``(B) the'';
                            (v) by striking ``areas, (3) 
                        reducing'' and inserting ``areas;
                    ``(C) reducing'';
                            (vi) by striking ``areas, and (4) 
                        to'' and inserting ``areas; and
                    ``(D) to'';
                    (E) in the sentence beginning ``Such 
                loans,'', by striking ``Such loans,'' and 
                inserting the following:
            ``(3) Loan guarantees.--Loans described in 
        paragraph (2),''; and
                    (F) in the last sentence, by striking ``No 
                loan'' and inserting the following:
            ``(4) Maximum amount of principal.--No loan''; and
            (3) in subsection (g)--
                    (A) in paragraph (1), by inserting ``, 
                including guarantees described in paragraph 
                (3)(A)(ii)'' before the period at the end;
                    (B) in paragraph (3)(A)--
                            (i) by striking ``(A) In general.--
                        The Secretary'' and inserting the 
                        following:
                    ``(A) Eligibility.--
                            ``(i) In general.--The Secretary''; 
                        and
                            (ii) by adding at the end the 
                        following:
                            ``(ii) Equity.--The Secretary may 
                        guarantee a loan made for the purchase 
                        of preferred stock or similar equity 
                        issued by a cooperative organization or 
                        a fund that invests primarily in 
                        cooperative organizations, if the 
                        guarantee significantly benefits 1 or 
                        more entities eligible for assistance 
                        for the purposes described in 
                        subsection (a)(1), as determined by the 
                        Secretary.''; and
                    (C) in paragraph (8)(A)(ii), by striking 
                ``a project--'' and all that follows through 
                the end of subclause (II) and inserting ``a 
                project that--
                                    ``(I)(aa) is in a rural 
                                area; and
                                    ``(bb) provides for the 
                                value-added processing of 
                                agricultural commodities; or
                                    ``(II) significantly 
                                benefits 1 or more entities 
                                eligible for assistance for the 
                                purposes described in 
                                subsection (a)(1), as 
                                determined by the Secretary.''.
    (b) Conforming Amendments.--
            (1) Section 307(a)(6)(B) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) is 
        amended by striking clause (ii) and inserting the 
        following:
            ``(ii) section 310B(a)(2)(A); and''.
            (2) Section 310B(g) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1932(g)) is amended by 
        striking ``subsection (a)(1)'' each place it appears in 
        paragraphs (1), (6)(A)(iii), and (8)(C) and inserting 
        ``subsection (a)(2)(A)''.
            (3) Section 333A(g)(1)(B) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is 
        amended by striking ``section 310B(a)(1)'' and 
        inserting ``section 310B(a)(2)(A)''.
            (4) Section 381E(d)(3)(B) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is 
        amended by striking ``section 310B(a)(1)'' and 
        inserting ``section 310B(a)(2)(A)''.

SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS.

    (a) Eligibility.--Section 310B(e)(5) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1932(e)(5)) is 
amended--
            (1) in subparagraph (A), by striking 
        ``administering a nationally coordinated, regionally or 
        State-wide operated project'' and inserting ``carrying 
        out activities to promote and assist the development of 
        cooperatively and mutually owned businesses'';
            (2) in subparagraph (B), by inserting ``to promote 
        and assist the development of cooperatively and 
        mutually owned businesses'' before the semicolon;
            (3) by striking subparagraph (D);
            (4) by redesignating subparagraph (E) as 
        subparagraph (D);
            (5) in subparagraph (D) (as so redesignated), by 
        striking ``and'' at the end;
            (6) by inserting after subparagraph (D) (as so 
        redesignated) the following:
                    ``(E) demonstrate a commitment to--
                            ``(i) networking with and sharing 
                        the results of the efforts of the 
                        center with other cooperative 
                        development centers and other 
                        organizations involved in rural 
                        economic development efforts; and
                            ``(ii) developing multiorganization 
                        and multistate approaches to addressing 
                        the economic development and 
                        cooperative needs of rural areas; 
                        and''; and
            (7) in subparagraph (F), by striking ``providing 
        greater than'' and inserting ``providing''.
    (b) Authority to Award Multiyear Grants.--Section 310B(e) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1932(e)) is amended by striking paragraph (6) and inserting the 
following:
            ``(6) Grant period.--
                    ``(A) In general.--A grant awarded to a 
                center that has received no prior funding under 
                this subsection shall be made for a period of 1 
                year.
                    ``(B) Multiyear grants.--If the Secretary 
                determines it to be in the best interest of the 
                program, the Secretary shall award grants for a 
                period of more than 1 year, but not more than 3 
                years, to a center that has successfully met 
                the parameters described in paragraph (5), as 
                determined by the Secretary.''.
    (c) Authority to Extend Grant Period.--Section 310B(e) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
1932(e)) is amended--
            (1) by redesignating paragraphs (7), (8), and (9) 
        as paragraphs (8), (9), and (12), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) Authority to extend grant period.--The 
        Secretary may extend for 1 additional 12-month period 
        the period in which a grantee may use a grant made 
        under this subsection.''.
    (d) Cooperative Research Program.--Section 310B(e) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) 
is amended by inserting after paragraph (9) (as redesignated by 
subsection (c)(1)) the following:
            ``(10) Cooperative research program.--The Secretary 
        shall enter into a cooperative research agreement with 
        1 or more qualified academic institutions in each 
        fiscal year to conduct research on the effects of all 
        types of cooperatives on the national economy.''.
    (e) Addressing Needs of Minority Communities.--Section 
310B(e) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932(e)) is amended by inserting after paragraph (10) 
(as added by subsection (d)) the following:
            ``(11) Addressing needs of minority communities.--
                    ``(A) Definition of socially disadvantaged 
                group.--In this paragraph, the term `socially 
                disadvantaged group' has the meaning given the 
                term in section 355(e).
                    ``(B) Reservation of funds.--
                            ``(i) In general.--If the total 
                        amount appropriated under paragraph 
                        (12) for a fiscal year exceeds 
                        $7,500,000, the Secretary shall reserve 
                        an amount equal to 20 percent of the 
                        total amount appropriated for grants 
                        for cooperative development centers, 
                        individual cooperatives, or groups of 
                        cooperatives--
                                    ``(I) that serve socially 
                                disadvantaged groups; and
                                    ``(II) a majority of the 
                                boards of directors or 
                                governing boards of which are 
                                comprised of individuals who 
                                are members of socially 
                                disadvantaged groups.
                            ``(ii) Insufficient applications.--
                        To the extent there are insufficient 
                        applications to carry out clause (i), 
                        the Secretary shall use the funds as 
                        otherwise authorized by this 
                        subsection.''.
    (f) Authorization of Appropriations.--Paragraph (12) of 
section 310B(e) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(e)) (as redesignated by subsection (c)(1)) 
is amended by striking ``1996 through 2007'' and inserting 
``2008 through 2012''.

SEC. 6014. GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(f)(3) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(f)(3)) is amended by striking 
``2002 through 2007'' and inserting ``2008 through 2012''.

SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD PRODUCTS.

    Section 310B(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(g)) is amended by adding at the 
end the following:
            ``(9) Locally or regionally produced agricultural 
        food products.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Locally or regionally 
                        produced agricultural food product.--
                        The term `locally or regionally 
                        produced agricultural food product' 
                        means any agricultural food product 
                        that is raised, produced, and 
                        distributed in--
                                    ``(I) the locality or 
                                region in which the final 
                                product is marketed, so that 
                                the total distance that the 
                                product is transported is less 
                                than 400 miles from the origin 
                                of the product; or
                                    ``(II) the State in which 
                                the product is produced.
                            ``(ii) Underserved community.--The 
                        term `underserved community' means a 
                        community (including an urban or rural 
                        community and an Indian tribal 
                        community) that has, as determined by 
                        the Secretary--
                                    ``(I) limited access to 
                                affordable, healthy foods, 
                                including fresh fruits and 
                                vegetables, in grocery retail 
                                stores or farmer-to-consumer 
                                direct markets; and
                                    ``(II) a high rate of 
                                hunger or food insecurity or a 
                                high poverty rate.
                    ``(B) Loan and loan guarantee program.--
                            ``(i) In general.--The Secretary 
                        shall make or guarantee loans to 
                        individuals, cooperatives, cooperative 
                        organizations, businesses, and other 
                        entities to establish and facilitate 
                        enterprises that process, distribute, 
                        aggregate, store, and market locally or 
                        regionally produced agricultural food 
                        products to support community 
                        development and farm and ranch income.
                            ``(ii) Requirement.--The recipient 
                        of a loan or loan guarantee under 
                        clause (i) shall include in an 
                        appropriate agreement with retail and 
                        institutional facilities to which the 
                        recipient sells locally or regionally 
                        produced agricultural food products a 
                        requirement to inform consumers of the 
                        retail or institutional facilities that 
                        the consumers are purchasing or 
                        consuming locally or regionally 
                        produced agricultural food products.
                            ``(iii) Priority.--In making or 
                        guaranteeing a loan under clause (i), 
                        the Secretary shall give priority to 
                        projects that have components 
                        benefitting underserved communities.
                            ``(iv) Reports.--Not later than 2 
                        years after the date of enactment of 
                        this paragraph and annually thereafter, 
                        the Secretary shall submit to the 
                        Committee on Agriculture of the House 
                        of Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate a report that describes 
                        projects carried out using loans or 
                        loan guarantees made under clause (i), 
                        including--
                                    ``(I) the characteristics 
                                of the communities served; and
                                    ``(II) resulting benefits.
                            ``(v) Reservation of funds.--
                                    ``(I) In general.--For each 
                                of fiscal years 2008 through 
                                2012, the Secretary shall 
                                reserve not less than 5 percent 
                                of the funds made available to 
                                carry out this subsection to 
                                carry out this subparagraph.
                                    ``(II) Availability of 
                                funds.--Funds reserved under 
                                subclause (I) for a fiscal year 
                                shall be reserved until April 1 
                                of the fiscal year.''.

SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.

    Section 310B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932) is amended by adding at the end the 
following:
    ``(i) Appropriate Technology Transfer for Rural Areas 
Program.--
            ``(1) Definition of national nonprofit agricultural 
        assistance institution.--In this subsection, the term 
        `national nonprofit agricultural assistance 
        institution' means an organization that--
                    ``(A) is described in section 501(c)(3) of 
                the Internal Revenue Code of 1986 and exempt 
                from taxation under 501(a) of that Code;
                    ``(B) has staff and offices in multiple 
                regions of the United States;
                    ``(C) has experience and expertise in 
                operating national agriculture technical 
                assistance programs;
                    ``(D) expands markets for the agricultural 
                commodities produced by producers through the 
                use of practices that enhance the environment, 
                natural resource base, and quality of life; and
                    ``(E) improves the economic viability of 
                agricultural operations.
            ``(2) Establishment.--The Secretary shall establish 
        a national appropriate technology transfer for rural 
        areas program to assist agricultural producers that are 
        seeking information to--
                    ``(A) reduce input costs;
                    ``(B) conserve energy resources;
                    ``(C) diversify operations through new 
                energy crops and energy generation facilities; 
                and
                    ``(D) expand markets for agricultural 
                commodities produced by the producers by using 
                practices that enhance the environment, natural 
                resource base, and quality of life.
            ``(3) Implementation.--
                    ``(A) In general.--The Secretary shall 
                carry out the program under this subsection by 
                making a grant to, or offering to enter into a 
                cooperative agreement with, a national 
                nonprofit agricultural assistance institution.
                    ``(B) Grant amount.--A grant made, or 
                cooperative agreement entered into, under 
                subparagraph (A) shall provide 100 percent of 
                the cost of providing information described in 
                paragraph (2).
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $5,000,000 for each of fiscal years 2008 
        through 2012.''.

SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

    Section 310B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932) (as amended by section 6016) is amended by 
adding at the end the following:
    ``(j) Rural Economic Area Partnership Zones.--Effective 
beginning on the date of enactment of this subsection through 
September 30, 2012, the Secretary shall carry out those rural 
economic area partnership zones administratively in effect on 
the date of enactment of this subsection in accordance with the 
terms and conditions contained in the memorandums of agreement 
entered into by the Secretary for the rural economic area 
partnership zones, except as otherwise provided in this 
subsection.''.

SEC. 6018. DEFINITIONS.

    (a) Rural Area.--Section 343(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1991(a)) is amended by 
striking paragraph (13) and inserting the following:
            ``(13) Rural and rural area.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) through (G), the terms `rural' and `rural 
                area' mean any area other than--
                            ``(i) a city or town that has a 
                        population of greater than 50,000 
                        inhabitants; and
                            ``(ii) any urbanized area 
                        contiguous and adjacent to a city or 
                        town described in clause (i).
                    ``(B) Water and waste disposal grants and 
                direct and guaranteed loans.--For the purpose 
                of water and waste disposal grants and direct 
                and guaranteed loans provided under paragraphs 
                (1), (2), and (24) of section 306(a), the terms 
                `rural' and `rural area' mean a city, town, or 
                unincorporated area that has a population of no 
                more than 10,000 inhabitants.
                    ``(C) Community facility loans and 
                grants.--For the purpose of community facility 
                direct and guaranteed loans and grants under 
                paragraphs (1), (19), (20), (21), and (24) of 
                section 306(a), the terms `rural' and `rural 
                area' mean any area other than a city, town, or 
                unincorporated area that has a population of 
                greater than 20,000 inhabitants.
                    ``(D) Areas rural in character.--
                            ``(i) Application.--This 
                        subparagraph applies to--
                                    ``(I) an urbanized area 
                                described in subparagraphs 
                                (A)(ii) and (F) that--
                                            ``(aa) has 2 points 
                                        on its boundary that 
                                        are at least 40 miles 
                                        apart; and
                                            ``(bb) is not 
                                        contiguous or adjacent 
                                        to a city or town that 
                                        has a population of 
                                        greater than 150,000 
                                        inhabitants or an 
                                        urbanized area of such 
                                        city or town; and
                                    ``(II) an area within an 
                                urbanized area described in 
                                subparagraphs (A)(ii) and (F) 
                                that is within \1/4\-mile of a 
                                rural area described in 
                                subparagraph (A).
                            ``(ii) Determination.--
                        Notwithstanding any other provision of 
                        this paragraph, on the petition of a 
                        unit of local government in an area 
                        described in clause (i) or on the 
                        initiative of the Under Secretary for 
                        Rural Development, the Under Secretary 
                        may determine that a part of an area 
                        described in clause (i) is a rural area 
                        for the purposes of this paragraph, if 
                        the Under Secretary finds that the part 
                        is rural in character, as determined by 
                        the Under Secretary.
                            ``(iii) Administration.--In 
                        carrying out this subparagraph, the 
                        Under Secretary for Rural Development 
                        shall--
                                    ``(I) not delegate the 
                                authority to carry out this 
                                subparagraph;
                                    ``(II) consult with the 
                                applicable rural development 
                                State or regional director of 
                                the Department of Agriculture 
                                and the governor of the 
                                respective State;
                                    ``(III) provide to the 
                                petitioner an opportunity to 
                                appeal to the Under Secretary a 
                                determination made under this 
                                subparagraph;
                                    ``(IV) release to the 
                                public notice of a petition 
                                filed or initiative of the 
                                Under Secretary under this 
                                subparagraph not later than 30 
                                days after receipt of the 
                                petition or the commencement of 
                                the initiative, as appropriate;
                                    ``(V) make a determination 
                                under this subparagraph not 
                                less than 15 days, and not more 
                                than 60 days, after the release 
                                of the notice under subclause 
                                (IV);
                                    ``(VI) submit to the 
                                Committee on Agriculture of the 
                                House of Representatives and 
                                the Committee on Agriculture, 
                                Nutrition, and Forestry of the 
                                Senate an annual report on 
                                actions taken to carry out this 
                                subparagraph; and
                                    ``(VII) terminate a 
                                determination under this 
                                subparagraph that part of an 
                                area is a rural area on the 
                                date that data is available for 
                                the next decennial census 
                                conducted under section 141(a) 
                                of title 13, United States 
                                Code.
                    ``(E) Exclusions.--Notwithstanding any 
                other provision of this paragraph, in 
                determining which census blocks in an urbanized 
                area are not in a rural area (as defined in 
                this paragraph), the Secretary shall exclude 
                any cluster of census blocks that would 
                otherwise be considered not in a rural area 
                only because the cluster is adjacent to not 
                more than 2 census blocks that are otherwise 
                considered not in a rural area under this 
                paragraph.
                    ``(F) Urban area growth.--
                            ``(i) Application.--This 
                        subparagraph applies to--
                                    ``(I) any area that--
                                            ``(aa) is a 
                                        collection of census 
                                        blocks that are 
                                        contiguous to each 
                                        other;
                                            ``(bb) has a 
                                        housing density that 
                                        the Secretary estimates 
                                        is greater than 200 
                                        housing units per 
                                        square mile; and
                                            ``(cc) is 
                                        contiguous or adjacent 
                                        to an existing boundary 
                                        of a rural area; and
                                    ``(II) any urbanized area 
                                contiguous and adjacent to a 
                                city or town described in 
                                subparagraph (A)(i).
                            ``(ii) Adjustments.--The Secretary 
                        may, by regulation only, consider--
                                    ``(I) an area described in 
                                clause (i)(I) not to be a rural 
                                area for purposes of 
                                subparagraphs (A) and (C); and
                                    ``(II) an area described in 
                                clause (i)(II) not to be a 
                                rural area for purposes of 
                                subparagraph (C).
                            ``(iii) Appeals.--A program 
                        applicant may appeal an estimate made 
                        under clause (i)(I) based on 
                        appropriate data for an area, as 
                        determined by the Secretary.
                    ``(G) Hawaii and puerto rico.--
                Notwithstanding any other provision of this 
                paragraph, within the areas of the County of 
                Honolulu, Hawaii, and the Commonwealth of 
                Puerto Rico, the Secretary may designate any 
                part of the areas as a rural area if the 
                Secretary determines that the part is not urban 
                in character, other than any area included in 
                the Honolulu Census Designated Place or the San 
                Juan Census Designated Place.''.
    (b) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall prepare and submit 
to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate a report that--
            (1) assesses the various definitions of the term 
        ``rural'' and ``rural area'' that are used with respect 
        to programs administered by the Secretary;
            (2) describes the effects that the variations in 
        those definitions have on those programs;
            (3) make recommendations for ways to better target 
        funds provided through rural development programs; and
            (4) determines the effect of the amendment made by 
        subsection (a) on the level of rural development 
        funding and participation in those programs in each 
        State.

SEC. 6019. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    Section 378 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008m) is amended--
            (1) in subsection (g)(1), by striking ``2003 
        through 2007'' and inserting ``2008 through 2012''; and
            (2) in subsection (h), by striking ``the date that 
        is 5 years after the date of enactment of this 
        section'' and inserting ``September 30, 2012''.

SEC. 6020. HISTORIC BARN PRESERVATION.

    (a) Grant Priority.--Section 379A(c) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2008o(c)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraphs (A) and (B), by 
                striking ``a historic barn'' each place it 
                appears and inserting ``historic barns''; and
                    (B) in subparagraph (C), by striking ``on a 
                historic barn'' and inserting ``on historic 
                barns (including surveys)'';
            (2) by redesignating paragraphs (3) and (4) as 
        paragraphs (4) and (5), respectively; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Priority.--In making grants under this 
        subsection, the Secretary shall give the highest 
        priority to funding projects described in paragraph 
        (2)(C).''.
    (b) Authorization of Appropriations.--Section 379A(c)(5) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2008o(c)(5)) (as redesignated by subsection (a)(2)) is amended 
by striking ``2002 through 2007'' and inserting ``2008 through 
2012''.

SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

    Section 379B(d) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008p(d)) is amended by striking 
``2002 through 2007'' and inserting ``2008 through 2012''.

SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

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

``SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(2) Microentrepreneur.--The term 
        `microentrepreneur' means an owner and operator, or 
        prospective owner and operator, of a rural 
        microenterprise who is unable to obtain sufficient 
        training, technical assistance, or credit other than 
        under this section, as determined by the Secretary.
            ``(3) Microenterprise development organization.--
        The term `microenterprise development organization' 
        means an organization that--
                    ``(A) is--
                            ``(i) a nonprofit entity;
                            ``(ii) an Indian tribe, the tribal 
                        government of which certifies to the 
                        Secretary that--
                                    ``(I) no microenterprise 
                                development organization serves 
                                the Indian tribe; and
                                    ``(II) no rural 
                                microentrepreneur assistance 
                                program exists under the 
                                jurisdiction of the Indian 
                                tribe; or
                            ``(iii) a public institution of 
                        higher education;
                    ``(B) provides training and technical 
                assistance to rural microentrepreneurs;
                    ``(C) facilitates access to capital or 
                another service described in subsection (b) for 
                rural microenterprises; and
                    ``(D) has a demonstrated record of 
                delivering services to rural 
                microentrepreneurs, or an effective plan to 
                develop a program to deliver services to rural 
                microentrepreneurs, as determined by the 
                Secretary.
            ``(4) Microloan.--The term `microloan' means a 
        business loan of not more than $50,000 that is provided 
        to a rural microenterprise.
            ``(5) Program.--The term `program' means the rural 
        microentrepreneur assistance program established under 
        subsection (b).
            ``(6) Rural microenterprise.--The term `rural 
        microenterprise' means--
                    ``(A) a sole proprietorship located in a 
                rural area; or
                    ``(B) a business entity with not more than 
                10 full-time-equivalent employees located in a 
                rural area.
    ``(b) Rural Microentrepreneur Assistance Program.--
            ``(1) Establishment.--The Secretary shall establish 
        a rural microentrepreneur assistance program to provide 
        loans and grants to support microentrepreneurs in the 
        development and ongoing success of rural 
        microenterprises.
            ``(2) Purpose.--The purpose of the program is to 
        provide microentrepreneurs with--
                    ``(A) the skills necessary to establish new 
                rural microenterprises; and
                    ``(B) continuing technical and financial 
                assistance related to the successful operation 
                of rural microenterprises.
            ``(3) Loans.--
                    ``(A) In general.--The Secretary shall make 
                loans to microenterprise development 
                organizations for the purpose of providing 
                fixed interest rate microloans to 
                microentrepreneurs for startup and growing 
                rural microenterprises.
                    ``(B) Loan terms.--A loan made by the 
                Secretary to a microenterprise development 
                organization under this paragraph shall--
                            ``(i) be for a term not to exceed 
                        20 years; and
                            ``(ii) bear an annual interest rate 
                        of at least 1 percent.
                    ``(C) Loan loss reserve fund.--The 
                Secretary shall require each microenterprise 
                development organization that receives a loan 
                under this paragraph to--
                            ``(i) establish a loan loss reserve 
                        fund; and
                            ``(ii) maintain the reserve fund in 
                        an amount equal to at least 5 percent 
                        of the outstanding balance of such 
                        loans owed by the microenterprise 
                        development organization, until all 
                        obligations owed to the Secretary under 
                        this paragraph are repaid.
                    ``(D) Deferral of interest and principal.--
                The Secretary may permit the deferral of 
                payments on principal and interest due on a 
                loan to a microenterprise development 
                organization made under this paragraph for a 2-
                year period beginning on the date the loan is 
                made.
            ``(4) Grants.--
                    ``(A) Grants to support rural 
                microenterprise development.--
                            ``(i) In general.--The Secretary 
                        shall make grants to microenterprise 
                        development organizations to--
                                    ``(I) provide training, 
                                operational support, business 
                                planning, and market 
                                development assistance, and 
                                other related services to rural 
                                microentrepreneurs; and
                                    ``(II) carry out such other 
                                projects and activities as the 
                                Secretary determines 
                                appropriate to further the 
                                purposes of the program.
                            ``(ii) Selection.--In making grants 
                        under clause (i), the Secretary shall--
                                    ``(I) place an emphasis on 
                                microenterprise development 
                                organizations that serve 
                                microentrepreneurs that are 
                                located in rural areas that 
                                have suffered significant 
                                outward migration, as 
                                determined by the Secretary; 
                                and
                                    ``(II) ensure, to the 
                                maximum extent practicable, 
                                that grant recipients include 
                                microenterprise development 
                                organizations--
                                            ``(aa) of varying 
                                        sizes; and
                                            ``(bb) that serve 
                                        racially and ethnically 
                                        diverse populations.
                    ``(B) Grants to assist 
                microentrepreneurs.--
                            ``(i) In general.--The Secretary 
                        shall make grants to microenterprise 
                        development organizations to provide 
                        marketing, management, and other 
                        technical assistance to 
                        microentrepreneurs that--
                                    ``(I) received a loan from 
                                the microenterprise development 
                                organization under paragraph 
                                (3); or
                                    ``(II) are seeking a loan 
                                from the microenterprise 
                                development organization under 
                                paragraph (3).
                            ``(ii) Maximum amount of grant.--A 
                        microenterprise development 
                        organization shall be eligible to 
                        receive an annual grant under this 
                        subparagraph in an amount equal to not 
                        more than 25 percent of the total 
                        outstanding balance of microloans made 
                        by the microenterprise development 
                        organization under paragraph (3), as of 
                        the date the grant is awarded.
                    ``(C) Administrative expenses.--Not more 
                than 10 percent of a grant received by a 
                microenterprise development organization for a 
                fiscal year under this paragraph may be used to 
                pay administrative expenses.
    ``(c) Administration.--
            ``(1) Cost share.--
                    ``(A) Federal share.--Subject to 
                subparagraph (B), the Federal share of the cost 
                of a project funded under this section shall 
                not exceed 75 percent.
                    ``(B) Matching requirement.--As a condition 
                of any grant made under this subparagraph, the 
                Secretary shall require the microenterprise 
                development organization to match not less than 
                15 percent of the total amount of the grant in 
                the form of matching funds, indirect costs, or 
                in-kind goods or services.
                    ``(C) Form of non-federal share.--The non-
                Federal share of the cost of a project funded 
                under this section may be provided--
                            ``(i) in cash (including through 
                        fees, grants (including community 
                        development block grants), and gifts); 
                        or
                            ``(ii) in the form of in-kind 
                        contributions.
            ``(2) Oversight.--At a minimum, not later than 
        December 1 of each fiscal year, a microenterprise 
        development organization that receives a loan or grant 
        under this section shall provide to the Secretary such 
        information as the Secretary may require to ensure that 
        assistance provided under this section is used for the 
        purposes for which the loan or grant was made.
    ``(d) Funding.--
            ``(1) Mandatory funding.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use 
        to carry out this section, to remain available until 
        expended--
                    ``(A) $4,000,000 for each of fiscal years 
                2009 through 2011; and
                    ``(B) $3,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to 
        amounts made available under paragraph (1), there are 
        authorized to be appropriated to carry out this section 
        $40,000,000 for each of fiscal years 2009 through 
        2012.''.

SEC. 6023. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR 
                    INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 6022) is 
amended by adding at the end the following:

``SEC. 379F. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR 
                    INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.

    ``(a) Definitions.--In this section:
            ``(1) Individual with a disability.--The term 
        `individual with a disability' means an individual with 
        a disability (as defined in section 3 of the Americans 
        with Disabilities Act of 1990 (42 U.S.C. 12102)).
            ``(2) Individuals with disabilities.--The term 
        `individuals with disabilities' means more than 1 
        individual with a disability.
    ``(b) Grants.--The Secretary shall make grants to nonprofit 
organizations, or to a consortium of nonprofit organizations, 
to expand and enhance employment opportunities for individuals 
with disabilities in rural areas.
    ``(c) Eligibility.--To be eligible to receive a grant under 
this section, a nonprofit organization or consortium of 
nonprofit organizations shall have--
            ``(1) a significant focus on serving the needs of 
        individuals with disabilities;
            ``(2) demonstrated knowledge and expertise in--
                    ``(A) employment of individuals with 
                disabilities; and
                    ``(B) advising private entities on 
                accessibility issues involving individuals with 
                disabilities;
            ``(3) expertise in removing barriers to employment 
        for individuals with disabilities, including access to 
        transportation, assistive technology, and other 
        accommodations; and
            ``(4) existing relationships with national 
        organizations focused primarily on the needs of rural 
        areas.
    ``(d) Uses.--A grant received under this section may be 
used only to expand or enhance--
            ``(1) employment opportunities for individuals with 
        disabilities in rural areas by developing national 
        technical assistance and education resources to assist 
        small businesses in a rural area to recruit, hire, 
        accommodate, and employ individuals with disabilities; 
        and
            ``(2) self-employment and entrepreneurship 
        opportunities for individuals with disabilities in a 
        rural area.
    ``(e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $2,000,000 for 
each of fiscal years 2008 through 2012.''.

SEC. 6024. HEALTH CARE SERVICES.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 6023) is 
amended by adding at the end the following:

``SEC. 379G. HEALTH CARE SERVICES.

    ``(a) Purpose.--The purpose of this section is to address 
the continued unmet health needs in the Delta region through 
cooperation among health care professionals, institutions of 
higher education, research institutions, and other individuals 
and entities in the region.
    ``(b) Definition of Eligible Entity.--In this section, the 
term `eligible entity' means a consortium of regional 
institutions of higher education, academic health and research 
institutes, and economic development entities located in the 
Delta region that have experience in addressing the health care 
issues in the region.
    ``(c) Grants.--To carry out the purpose described in 
subsection (a), the Secretary may award a grant to an eligible 
entity for--
            ``(1) the development of--
                    ``(A) health care services;
                    ``(B) health education programs; and
                    ``(C) health care job training programs; 
                and
            ``(2) the development and expansion of public 
        health-related facilities in the Delta region to 
        address longstanding and unmet health needs of the 
        region.
    ``(d) Use.--As a condition of the receipt of the grant, the 
eligible entity shall use the grant to fund projects and 
activities described in subsection (c), based on input 
solicited from local governments, public health care providers, 
and other entities in the Delta region.
    ``(e) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out this section, 
$3,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 6025. DELTA REGIONAL AUTHORITY.

    (a) Authorization of Appropriations.--Section 382M(a) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2009aa-12(a)) is amended by striking ``2001 through 2007'' and 
inserting ``2008 through 2012''.
    (b) Termination of Authority.--Section 382N of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
13) is amended by striking ``2007'' and inserting ``2012''.
    (c) Expansion.--Section 4(2) of the Delta Development Act 
(42 U.S.C. 3121 note; Public Law 100-460) is amended--
            (1) in subparagraph (D), by inserting ``Beauregard, 
        Bienville, Cameron, Claiborne, DeSoto, Jefferson Davis, 
        Red River, St. Mary, Vermillion, Webster,'' after ``St. 
        James,''; and
            (2) in subparagraph (E)--
                    (A) by inserting ``Jasper,'' after 
                ``Copiah,''; and
                    (B) by inserting ``Smith,'' after 
                ``Simpson,''.

SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    (a) Definition of Region.--Section 383A(4) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
2009bb(4)) is amended by inserting ``Missouri (other than 
counties included in the Delta Regional Authority),'' after 
``Minnesota,''.
    (b) Establishment.--Section 383B of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2009bb-1) is amended--
            (1) in subsection (a), by adding at the end the 
        following:
            ``(4) Failure to confirm.--
                    ``(A) Federal member.--Notwithstanding any 
                other provision of this section, if a Federal 
                member described in paragraph (2)(A) has not 
                been confirmed by the Senate by not later than 
                180 days after the date of enactment of this 
                paragraph, the Authority may organize and 
                operate without the Federal member.
                    ``(B) Indian chairperson.--In the case of 
                the Indian Chairperson, if no Indian 
                Chairperson is confirmed by the Senate, the 
                regional authority shall consult and coordinate 
                with the leaders of Indian tribes in the region 
                concerning the activities of the Authority, as 
                appropriate.'';
            (2) in subsection (d)--
                    (A) in paragraph (1), by striking ``to 
                establish priorities and'' and inserting ``for 
                multistate cooperation to advance the economic 
                and social well-being of the region and to'';
                    (B) in paragraph (3), by striking ``local 
                development districts,'' and inserting 
                ``regional and local development districts or 
                organizations, regional boards established 
                under subtitle I,'';
                    (C) in paragraph (4), by striking 
                ``cooperation;'' and inserting ``cooperation 
                for--
                            ``(i) renewable energy development 
                        and transmission;
                            ``(ii) transportation planning and 
                        economic development;
                            ``(iii) information technology;
                            ``(iv) movement of freight and 
                        individuals within the region;
                            ``(v) federally-funded research at 
                        institutions of higher education; and
                            ``(vi) conservation land 
                        management;'';
                    (D) by striking paragraph (6) and inserting 
                the following:
            ``(6) enhance the capacity of, and provide support 
        for, multistate development and research organizations, 
        local development organizations and districts, and 
        resource conservation districts in the region;''; and
                    (E) in paragraph (7), by inserting 
                ``renewable energy,'' after ``commercial,''.
            (3) in subsection (f)(2), by striking ``the Federal 
        cochairperson'' and inserting ``a cochairperson'';
            (4) in subsection (g)(1), by striking subparagraphs 
        (A) through (C) and inserting the following:
                    ``(A) for each of fiscal years 2008 and 
                2009, 100 percent;
                    ``(B) for fiscal year 2010, 75 percent; and
                    ``(C) for fiscal year 2011 and each fiscal 
                year thereafter, 50 percent.''.
    (c) Interstate Cooperation for Economic Opportunity and 
Efficiency.--
            (1) In general.--Subtitle G of the Consolidated 
        Farm and Rural Development Act is amended--
                    (A) by redesignating sections 383C through 
                383N (7 U.S.C. 2009bb-2 through 2009bb-13) as 
                sections 383D through 383O, respectively; and
                    (B) by inserting after section 383B (7 
                U.S.C. 2009bb-1) the following:

``SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND 
                    EFFICIENCY.

    ``(a) In General.--The Authority shall provide assistance 
to States in developing regional plans to address multistate 
economic issues, including plans--
            ``(1) to develop a regional transmission system for 
        movement of renewable energy to markets outside the 
        region;
            ``(2) to address regional transportation concerns, 
        including the establishment of a Northern Great Plains 
        Regional Transportation Working Group;
            ``(3) to encourage and support interstate 
        collaboration on federally-funded research that is in 
        the national interest; and
            ``(4) to establish a Regional Working Group on 
        Agriculture Development and Transportation.
    ``(b) Economic Issues.--The multistate economic issues 
referred to in subsection (a) shall include--
            ``(1) renewable energy development and 
        transmission;
            ``(2) transportation planning and economic 
        development;
            ``(3) information technology;
            ``(4) movement of freight and individuals within 
        the region;
            ``(5) federally-funded research at institutions of 
        higher education; and
            ``(6) conservation land management.''.
            (2) Conforming amendments.--
                    (A) Section 383B(c)(3)(B) of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 2009bb-1(c)(3)(B)) is amended by 
                striking ``383I'' and inserting ``383J''.
                    (B) Section 383D(a) of the Consolidated 
                Farm and Rural Development Act (as redesignated 
                by paragraph (1)(A)) is amended by striking 
                ``383I'' and inserting ``383J''.
                    (C) Section 383E of the Consolidated Farm 
                and Rural Development Act (as so redesignated) 
                is amended--
                            (i) in subsection (b)(1), by 
                        striking ``383F(b)'' and inserting 
                        ``383G(b)''; and
                            (ii) in subsection (c)(2)(A), by 
                        striking ``383I'' and inserting 
                        ``383J''.
                    (D) Section 383G of the Consolidated Farm 
                and Rural Development Act (as so redesignated) 
                is amended--
                            (i) in subsection (b)--
                                    (I) in paragraph (1), by 
                                striking ``383M'' and inserting 
                                ``383N''; and
                                    (II) in paragraph (2), by 
                                striking ``383D(b)'' and 
                                inserting ``383E(b)'';
                            (ii) in subsection (c)(2)(A), by 
                        striking ``383E(b)'' and inserting 
                        ``383F(b)''; and
                            (iii) in subsection (d)--
                                    (I) by striking ``383M'' 
                                and inserting ``383N''; and
                                    (II) by striking 
                                ``383C(a)'' and inserting 
                                ``383D(a)''.
                    (E) Section 383J(c)(2) of the Consolidated 
                Farm and Rural Development Act (as so 
                redesignated) is amended by striking ``383H'' 
                and inserting ``383I''.
    (d) Economic and Community Development Grants.--Section 
383D of the Consolidated Farm and Rural Development Act (as 
redesignated by subsection (c)(1)(A)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking 
                ``transportation and telecommunication'' and 
                inserting ``transportation, renewable energy 
                transmission, and telecommunication''; and
                    (B) by redesignating paragraphs (1) and (2) 
                as paragraphs (2) and (1), respectively, and 
                moving those paragraphs so as to appear in 
                numerical order; and
            (2) in subsection (b)(2), by striking ``the 
        activities in the following order or priority'' and 
        inserting ``the following activities''.
    (e) Supplements to Federal Grant Programs.--Section 383E(a) 
of the Consolidated Farm and Rural Development Act (as 
redesignated by subsection (c)(1)(A)) is amended by striking 
``, including local development districts,''.
    (f) Multistate and Local Development Districts and 
Organizations and Northern Great Plains Inc.--Section 383F of 
the Consolidated Farm and Rural Development Act (as 
redesignated by subsection (c)(1)(A)) is amended--
            (1) by striking the section heading and inserting 
        ``MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND 
        ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.''; and
            (2) by striking subsections (a) through (c) and 
        inserting the following:
    ``(a) Definition of Multistate and Local Development 
District or Organization.--In this section, the term 
`multistate and local development district or organization' 
means an entity--
            ``(1) that--
                    ``(A) is a planning district in existence 
                on the date of enactment of this subtitle that 
                is recognized by the Economic Development 
                Administration of the Department of Commerce; 
                or
                    ``(B) is--
                            ``(i) organized and operated in a 
                        manner that ensures broad-based 
                        community participation and an 
                        effective opportunity for other 
                        nonprofit groups to contribute to the 
                        development and implementation of 
                        programs in the region;
                            ``(ii) a nonprofit incorporated 
                        body organized or chartered under the 
                        law of the State in which the entity is 
                        located;
                            ``(iii) a nonprofit agency or 
                        instrumentality of a State or local 
                        government;
                            ``(iv) a public organization 
                        established before the date of 
                        enactment of this subtitle under State 
                        law for creation of 
                        multijurisdictional, area-wide planning 
                        organizations;
                            ``(v) a nonprofit agency or 
                        instrumentality of a State that was 
                        established for the purpose of 
                        assisting with multistate cooperation; 
                        or
                            ``(vi) a nonprofit association or 
                        combination of bodies, agencies, and 
                        instrumentalities described in clauses 
                        (ii) through (v); and
            ``(2) that has not, as certified by the Authority 
        (in consultation with the Federal cochairperson or 
        Secretary, as appropriate)--
                    ``(A) inappropriately used Federal grant 
                funds from any Federal source; or
                    ``(B) appointed an officer who, during the 
                period in which another entity inappropriately 
                used Federal grant funds from any Federal 
                source, was an officer of the other entity.
    ``(b) Grants to Multistate, Local, or Regional Development 
Districts and Organizations.--
            ``(1) In general.--The Authority may make grants 
        for administrative expenses under this section to 
        multistate, local, and regional development districts 
        and organizations.
            ``(2) Conditions for grants.--
                    ``(A) Maximum amount.--The amount of any 
                grant awarded under paragraph (1) shall not 
                exceed 80 percent of the administrative 
                expenses of the multistate, local, or regional 
                development district or organization receiving 
                the grant.
                    ``(B) Maximum period.--No grant described 
                in paragraph (1) shall be awarded for a period 
                greater than 3 years.
            ``(3) Local share.--The contributions of a 
        multistate, local, or regional development district or 
        organization for administrative expenses may be in cash 
        or in kind, fairly evaluated, including space, 
        equipment, and services.
    ``(c) Duties.--
            ``(1) In general.--Except as provided in paragraph 
        (2), a local development district shall operate as a 
        lead organization serving multicounty areas in the 
        region at the local level.
            ``(2) Designation.--The Federal cochairperson may 
        designate an Indian tribe or multijurisdictional 
        organization to serve as a lead organization in such 
        cases as the Federal cochairperson or Secretary, as 
        appropriate, determines appropriate.''.
    (g) Distressed Counties and Areas and Nondistressed 
Counties.--Section 383G of the Consolidated Farm and Rural 
Development Act (as redesignated by subsection (c)(1)(A)) is 
amended--
            (1) in subsection (b)(1), by striking ``75'' and 
        inserting ``50'';
            (2) by striking subsection (c);
            (3) by redesignating subsection (d) as subsection 
        (c); and
            (4) in subsection (c) (as so redesignated)--
                    (A) in the subsection heading, by inserting 
                ``Renewable Energy,'' after 
                ``Telecommunication''; and
                    (B) by inserting ``, renewable energy,'' 
                after ``telecommunication,''.
    (h) Development Planning Process.--Section 383H of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (c)(1)(A)) is amended--
            (1) in subsection (c)(1), by striking subparagraph 
        (A) and inserting the following:
                    ``(A) multistate, regional, and local 
                development districts and organizations; and''; 
                and
            (2) in subsection (d)(1), by striking ``State and 
        local development districts'' and inserting 
        ``multistate, regional, and local development districts 
        and organizations''.
    (i) Program Development Criteria.--Section 383I(a)(1) of 
the Consolidated Farm and Rural Development Act (as 
redesignated by subsection (c)(1)(A)) is amended by inserting 
``multistate or'' before ``regional''.
    (j) Authorization of Appropriations.--Section 383N(a) of 
the Consolidated Farm and Rural Development Act (as 
redesignated by subsection (c)(1)(A)) is amended by striking 
``2002 through 2007'' and inserting ``2008 through 2012''.
    (k) Termination of Authority.--Section 383O of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (c)(1)(A)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM.

    (a) Issuance and Guarantee of Trust Certificates.--Section 
384F(b)(3)(A) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2009cc-5(b)(3)(A)) is amended by striking ``In 
the event'' and inserting the following:
                            ``(i) Authority to prepay.--A 
                        debenture may be prepaid at any time 
                        without penalty.
                            ``(ii) Reduction of guarantee.--
                        Subject to clause (i), if''.
    (b) Fees.--Section 384G of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009cc-6) is amended--
            (1) in subsection (a), by striking ``such fees as 
        the Secretary considers appropriate'' and inserting ``a 
        fee that does not exceed $500'';
            (2) in subsection (b), by striking ``approved by 
        the Secretary'' and inserting ``that does not exceed 
        $500''; and
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``The'' 
                and inserting ``Except as provided in paragraph 
                (3), the'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by 
                        striking ``and'' at the end;
                            (ii) in subparagraph (B), by 
                        striking the period at the end and 
                        inserting ``; and''; and
                            (iii) by adding at the end the 
                        following:
                    ``(C) shall not exceed $500 for any fee 
                collected under this subsection.''; and
                    (C) by adding at the end the following:
            ``(3) Prohibition on collection of certain fees.--
        In the case of a license described in paragraph (1) 
        that was approved before July 1, 2007, the Secretary 
        shall not collect any fees due on or after the date of 
        enactment of this paragraph.''.
    (c) Rural Business Investment Companies.--Section 384I(c) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
2009cc-8(c)) is amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Time frame.--Each rural business investment 
        company shall have a period of 2 years to meet the 
        capital requirements of this subsection.''.
    (d) Financial Institution Investments.--Section 384J of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-9) 
is amended--
            (1) in subsection (a)(1), by inserting ``, 
        including an investment pool created entirely by such 
        bank or savings association'' before the period at the 
        end; and
            (2) in subsection (c), by striking ``15'' and 
        inserting ``25''.
    (e) Contracting of Functions.--Section 384Q of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-
16) is repealed.
    (f) Funding.--The Consolidated Farm and Rural Development 
Act is amended by striking section 384S (7 U.S.C. 2009cc-18) 
and inserting the following:

``SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this 
subtitle $50,000,000 for the period of fiscal years 2008 
through 2012.''.

SEC. 6028. RURAL COLLABORATIVE INVESTMENT PROGRAM.

    Subtitle I of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2009dd et seq.) is amended to read as follows:

          ``Subtitle I--Rural Collaborative Investment Program

``SEC. 385A. PURPOSE.

    ``The purpose of this subtitle is to establish a regional 
rural collaborative investment program--
            ``(1) to provide rural regions with a flexible 
        investment vehicle, allowing for local control with 
        Federal oversight, assistance, and accountability;
            ``(2) to provide rural regions with incentives and 
        resources to develop and implement comprehensive 
        strategies for achieving regional competitiveness, 
        innovation, and prosperity;
            ``(3) to foster multisector community and economic 
        development collaborations that will optimize the 
        asset-based competitive advantages of rural regions 
        with particular emphasis on innovation, 
        entrepreneurship, and the creation of quality jobs;
            ``(4) to foster collaborations necessary to provide 
        the professional technical expertise, institutional 
        capacity, and economies of scale that are essential for 
        the long-term competitiveness of rural regions; and
            ``(5) to better use Department of Agriculture and 
        other Federal, State, and local governmental resources, 
        and to leverage those resources with private, 
        nonprofit, and philanthropic investments, in order to 
        achieve measurable community and economic prosperity, 
        growth, and sustainability.

``SEC. 385B. DEFINITIONS.

    ``In this subtitle:
            ``(1) Benchmark.--The term `benchmark' means an 
        annual set of goals and performance measures 
        established for the purpose of assessing performance in 
        meeting a regional investment strategy of a Regional 
        Board.
            ``(2) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(3) National board.--The term `National Board' 
        means the National Rural Investment Board established 
        under section 385C(c).
            ``(4) National institute.--The term `National 
        Institute' means the National Institute on Regional 
        Rural Competitiveness and Entrepreneurship established 
        under section 385C(b)(2).
            ``(5) Regional board.--The term `Regional Board' 
        means a Regional Rural Investment Board described in 
        section 385D(a).
            ``(6) Regional innovation grant.--The term 
        `regional innovation grant' means a grant made by the 
        Secretary to a certified Regional Board under section 
        385F.
            ``(7) Regional investment strategy grant.--The term 
        `regional investment strategy grant' means a grant made 
        by the Secretary to a certified Regional Board under 
        section 385E.
            ``(8) Rural heritage.--
                    ``(A) In general.--The term `rural 
                heritage' means historic sites, structures, and 
                districts.
                    ``(B) Inclusions.--The term `rural 
                heritage' includes historic rural downtown 
                areas and main streets, neighborhoods, 
                farmsteads, scenic and historic trails, 
                heritage areas, and historic landscapes.

``SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL COLLABORATIVE 
                    INVESTMENT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a Rural 
Collaborative Investment Program to support comprehensive 
regional investment strategies for achieving rural 
competitiveness.
    ``(b) Duties of Secretary.--In carrying out this subtitle, 
the Secretary shall--
            ``(1) appoint and provide administrative and 
        program support to the National Board;
            ``(2) establish a national institute, to be known 
        as the `National Institute on Regional Rural 
        Competitiveness and Entrepreneurship', to provide 
        technical assistance to the Secretary and the National 
        Board regarding regional competitiveness and rural 
        entrepreneurship, including technical assistance for--
                    ``(A) the development of rigorous analytic 
                programs to assist Regional Boards in 
                determining the challenges and opportunities 
                that need to be addressed to receive the 
                greatest regional competitive advantage;
                    ``(B) the provision of support for best 
                practices developed by the Regional Boards;
                    ``(C) the establishment of programs to 
                support the development of appropriate 
                governance and leadership skills in the 
                applicable regions; and
                    ``(D) the evaluation of the progress and 
                performance of the Regional Boards in achieving 
                benchmarks established in a regional investment 
                strategy;
            ``(3) work with the National Board to develop a 
        national rural investment plan that shall--
                    ``(A) create a framework to encourage and 
                support a more collaborative and targeted rural 
                investment portfolio in the United States;
                    ``(B) establish a Rural Philanthropic 
                Initiative, to work with rural communities to 
                create and enhance the pool of permanent 
                philanthropic resources committed to rural 
                community and economic development;
                    ``(C) cooperate with the Regional Boards 
                and State and local governments, organizations, 
                and entities to ensure investment strategies 
                are developed that take into consideration 
                existing rural assets; and
                    ``(D) encourage the organization of 
                Regional Boards;
            ``(4) certify the eligibility of Regional Boards to 
        receive regional investment strategy grants and 
        regional innovation grants;
            ``(5) provide grants for Regional Boards to develop 
        and implement regional investment strategies;
            ``(6) provide technical assistance to Regional 
        Boards on issues, best practices, and emerging trends 
        relating to rural development, in cooperation with the 
        National Rural Investment Board; and
            ``(7) provide analytic and programmatic support for 
        regional rural competitiveness through the National 
        Institute, including--
                    ``(A) programs to assist Regional Boards in 
                determining the challenges and opportunities 
                that must be addressed to receive the greatest 
                regional competitive advantage;
                    ``(B) support for best practices 
                development by the regional investment boards;
                    ``(C) programs to support the development 
                of appropriate governance and leadership skills 
                in the region; and
                    ``(D) a review and evaluation of the 
                performance of the Regional Boards (including 
                progress in achieving benchmarks established in 
                a regional investment strategy) in an annual 
                report submitted to--
                            ``(i) the Committee on Agriculture 
                        of the House of Representatives; and
                            ``(ii) the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate.
    ``(c) National Rural Investment Board.--The Secretary shall 
establish within the Department of Agriculture a board to be 
known as the `National Rural Investment Board'.
    ``(d) Duties of National Board.--The National Board shall--
            ``(1) not later than 180 days after the date of 
        establishment of the National Board, develop rules 
        relating to the operation of the National Board; and
            ``(2) provide advice to--
                    ``(A) the Secretary and subsequently review 
                the design, development, and execution of the 
                National Rural Investment Plan;
                    ``(B) Regional Boards on issues, best 
                practices, and emerging trends relating to 
                rural development; and
                    ``(C) the Secretary and the National 
                Institute on the development and execution of 
                the program under this subtitle.
    ``(e) Membership.--
            ``(1) In general.--The National Board shall consist 
        of 14 members appointed by the Secretary not later than 
        180 days after the date of enactment of the Food, 
        Conservation, and Energy Act of 2008.
            ``(2) Supervision.--The National Board shall be 
        subject to the general supervision and direction of the 
        Secretary.
            ``(3) Sectors represented.--The National Board 
        shall consist of representatives from each of--
                    ``(A) nationally recognized 
                entrepreneurship organizations;
                    ``(B) regional strategy and development 
                organizations;
                    ``(C) community-based organizations;
                    ``(D) elected members of local governments;
                    ``(E) members of State legislatures;
                    ``(F) primary, secondary, and higher 
                education, job skills training, and workforce 
                development institutions;
                    ``(G) the rural philanthropic community;
                    ``(H) financial, lending, venture capital, 
                entrepreneurship, and other related 
                institutions;
                    ``(I) private sector business 
                organizations, including chambers of commerce 
                and other for-profit business interests;
                    ``(J) Indian tribes; and
                    ``(K) cooperative organizations.
            ``(4) Selection of members.--
                    ``(A) In general.--In selecting members of 
                the National Board, the Secretary shall 
                consider recommendations made by--
                            ``(i) the chairman and ranking 
                        member of each of the Committee on 
                        Agriculture of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate;
                            ``(ii) the Majority Leader and 
                        Minority Leader of the Senate; and
                            ``(iii) the Speaker and Minority 
                        Leader of the House of Representatives.
                    ``(B) Ex-officio members.--In consultation 
                with the chairman and ranking member of each of 
                the Committee on Agriculture of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate, the Secretary may appoint not more than 
                3 other officers or employees of the Executive 
                Branch to serve as ex-officio, nonvoting 
                members of the National Board.
            ``(5) Term of office.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the term of office of a member of the 
                National Board appointed under paragraph (1)(A) 
                shall be for a period of not more than 4 years.
                    ``(B) Staggered terms.--The members of the 
                National Board shall be appointed to serve 
                staggered terms.
            ``(6) Initial appointments.--Not later than 1 year 
        after the date of enactment of the Food, Conservation, 
        and Energy Act of 2008, the Secretary shall appoint the 
        initial members of the National Board.
            ``(7) Vacancies.--A vacancy on the National Board 
        shall be filled in the same manner as the original 
        appointment.
            ``(8) Compensation.--A member of the National Board 
        shall receive no compensation for service on the 
        National Board, but shall be reimbursed for related 
        travel and other expenses incurred in carrying out the 
        duties of the member of the National Board in 
        accordance with section 5702 and 5703 of title 5, 
        United States Code.
            ``(9) Chairperson.--The National Board shall select 
        a chairperson from among the members of the National 
        Board.
            ``(10) Federal status.--For purposes of Federal 
        law, a member of the National Board shall be considered 
        a special Government employee (as defined in section 
        202(a) of title 18, United States Code).
    ``(f) Administrative Support.--The Secretary, on a 
reimbursable basis from funds made available under section 
385H, may provide such administrative support to the National 
Board as the Secretary determines is necessary.

``SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.

    ``(a) In General.--A Regional Rural Investment Board shall 
be a multijurisdictional and multisectoral group that--
            ``(1) represents the long-term economic, community, 
        and cultural interests of a region;
            ``(2) is certified by the Secretary to establish a 
        rural investment strategy and compete for regional 
        innovation grants;
            ``(3) is composed of residents of a region that are 
        broadly representative of diverse public, nonprofit, 
        and private sector interests in investment in the 
        region, including (to the maximum extent practicable) 
        representatives of--
                    ``(A) units of local, multijurisdictional, 
                or State government, including not more than 1 
                representative from each State in the region;
                    ``(B) nonprofit community-based development 
                organizations, including community development 
                financial institutions and community 
                development corporations;
                    ``(C) agricultural, natural resource, and 
                other asset-based related industries;
                    ``(D) in the case of regions with federally 
                recognized Indian tribes, Indian tribes;
                    ``(E) regional development organizations;
                    ``(F) private business organizations, 
                including chambers of commerce;
                    ``(G)(i) institutions of higher education 
                (as defined in section 101(a) of the Higher 
                Education Act of 1965 (20 U.S.C. 1001(a)));
                    ``(ii) tribally controlled colleges or 
                universities (as defined in section 2(a) of 
                Tribally Controlled College or University 
                Assistance Act of 1978 (25 U.S.C. 1801(a))); 
                and
                    ``(iii) tribal technical institutions;
                    ``(H) workforce and job training 
                organizations;
                    ``(I) other entities and organizations, as 
                determined by the Regional Board;
                    ``(J) cooperatives; and
                    ``(K) consortia of entities and 
                organizations described in subparagraphs (A) 
                through (J);
            ``(4) represents a region inhabited by--
                    ``(A) more than 25,000 individuals, as 
                determined in the latest available decennial 
                census conducted under section 141(a) of title 
                13, United States Code; or
                    ``(B) in the case of a region with a 
                population density of less than 2 individuals 
                per square mile, at least 10,000 individuals, 
                as determined in that latest available 
                decennial census;
            ``(5) has a membership of which not less than 25 
        percent, nor more than 40 percent, represents--
                    ``(A) units of local government and Indian 
                tribes described in subparagraphs (A) and (D) 
                of paragraph (3);
                    ``(B) nonprofit community and economic 
                development organizations and institutions of 
                higher education described in subparagraphs (B) 
                and (G) of paragraph (3); or
                    ``(C) private business (including chambers 
                of commerce and cooperatives) and agricultural, 
                natural resource, and other asset-based related 
                industries described in subparagraphs (C) and 
                (F) of paragraph (3);
            ``(6) has a membership that may include an officer 
        or employee of a Federal agency, serving as an ex-
        officio, nonvoting member of the Regional Board to 
        represent the agency; and
            ``(7) has organizational documents that demonstrate 
        that the Regional Board will--
                    ``(A) create a collaborative public-private 
                strategy process;
                    ``(B) develop, and submit to the Secretary 
                for approval, a regional investment strategy 
                that meets the requirements of section 385E, 
                with benchmarks--
                            ``(i) to promote investment in 
                        rural areas through the use of grants 
                        made available under this subtitle; and
                            ``(ii) to provide financial and 
                        technical assistance to promote a 
                        broad-based regional development 
                        program aimed at increasing and 
                        diversifying economic growth, improved 
                        community facilities, and improved 
                        quality of life;
                    ``(C) implement the approved regional 
                investment strategy;
                    ``(D) provide annual reports to the 
                Secretary and the National Board on progress 
                made in achieving the benchmarks of the 
                regional investment strategy, including an 
                annual financial statement; and
                    ``(E) select a non-Federal organization 
                (such as a regional development organization) 
                in the local area served by the Regional Board 
                that has previous experience in the management 
                of Federal funds to serve as fiscal manager of 
                any funds of the Regional Board.
    ``(b) Urban Areas.--A resident of an urban area may serve 
as an ex-officio member of a Regional Board.
    ``(c) Duties.--A Regional Board shall--
            ``(1) create a collaborative planning process for 
        public-private investment within a region;
            ``(2) develop, and submit to the Secretary for 
        approval, a regional investment strategy;
            ``(3) develop approaches that will create permanent 
        resources for philanthropic giving in the region, to 
        the maximum extent practicable;
            ``(4) implement an approved strategy; and
            ``(5) provide annual reports to the Secretary and 
        the National Board on progress made in achieving the 
        strategy, including an annual financial statement.

``SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.

    ``(a) In General.--The Secretary shall make regional 
investment strategy grants available to Regional Boards for use 
in developing, implementing, and maintaining regional 
investment strategies.
    ``(b) Regional Investment Strategy.--A regional investment 
strategy shall provide--
            ``(1) an assessment of the competitive advantage of 
        a region, including--
                    ``(A) an analysis of the economic 
                conditions of the region;
                    ``(B) an assessment of the current economic 
                performance of the region;
                    ``(C) an overview of the population, 
                geography, workforce, transportation system, 
                resources, environment, and infrastructure 
                needs of the region; and
                    ``(D) such other pertinent information as 
                the Secretary may request;
            ``(2) an analysis of regional economic and 
        community development challenges and opportunities, 
        including--
                    ``(A) incorporation of relevant material 
                from other government-sponsored or supported 
                plans and consistency with applicable State, 
                regional, and local workforce investment 
                strategies or comprehensive economic 
                development plans; and
                    ``(B) an identification of past, present, 
                and projected Federal and State economic and 
                community development investments in the 
                region;
            ``(3) a section describing goals and objectives 
        necessary to solve regional competitiveness challenges 
        and meet the potential of the region;
            ``(4) an overview of resources available in the 
        region for use in--
                    ``(A) establishing regional goals and 
                objectives;
                    ``(B) developing and implementing a 
                regional action strategy;
                    ``(C) identifying investment priorities and 
                funding sources; and
                    ``(D) identifying lead organizations to 
                execute portions of the strategy;
            ``(5) an analysis of the current state of 
        collaborative public, private, and nonprofit 
        participation and investment, and of the strategic 
        roles of public, private, and nonprofit entities in the 
        development and implementation of the regional 
        investment strategy;
            ``(6) a section identifying and prioritizing vital 
        projects, programs, and activities for consideration by 
        the Secretary, including--
                    ``(A) other potential funding sources; and
                    ``(B) recommendations for leveraging past 
                and potential investments;
            ``(7) a plan of action to implement the goals and 
        objectives of the regional investment strategy;
            ``(8) a list of performance measures to be used to 
        evaluate implementation of the regional investment 
        strategy, including--
                    ``(A) the number and quality of jobs, 
                including self-employment, created during 
                implementation of the regional rural investment 
                strategy;
                    ``(B) the number and types of investments 
                made in the region;
                    ``(C) the growth in public, private, and 
                nonprofit investment in the human, community, 
                and economic assets of the region;
                    ``(D) changes in per capita income and the 
                rate of unemployment; and
                    ``(E) other changes in the economic 
                environment of the region;
            ``(9) a section outlining the methodology for use 
        in integrating the regional investment strategy with 
        the economic priorities of the State; and
            ``(10) such other information as the Secretary 
        determines to be appropriate.
    ``(c) Maximum Amount of Grant.--A regional investment 
strategy grant shall not exceed $150,000.
    ``(d) Cost Sharing.--
            ``(1) In general.--Subject to paragraph (2), of the 
        share of the costs of developing, maintaining, 
        evaluating, implementing, and reporting with respect to 
        a regional investment strategy funded by a grant under 
        this section--
                    ``(A) not more than 40 percent may be paid 
                using funds from the grant; and
                    ``(B) the remaining share shall be provided 
                by the applicable Regional Board or other 
                eligible grantee.
            ``(2) Form.--A Regional Board or other eligible 
        grantee shall pay the share described in paragraph 
        (1)(B) in the form of cash, services, materials, or 
        other in-kind contributions, on the condition that not 
        more than 50 percent of that share is provided in the 
        form of services, materials, and other in-kind 
        contributions.

``SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM.

    ``(a) Grants.--
            ``(1) In general.--The Secretary shall provide, on 
        a competitive basis, regional innovation grants to 
        Regional Boards for use in implementing projects and 
        initiatives that are identified in a regional rural 
        investment strategy approved under section 385E.
            ``(2) Timing.--After October 1, 2008, the Secretary 
        shall provide awards under this section on a quarterly 
        funding cycle.
    ``(b) Eligibility.--To be eligible to receive a regional 
innovation grant, a Regional Board shall demonstrate to the 
Secretary that--
            ``(1) the regional rural investment strategy of a 
        Regional Board has been reviewed by the National Board 
        prior to approval by the Secretary;
            ``(2) the management and organizational structure 
        of the Regional Board is sufficient to oversee grant 
        projects, including management of Federal funds; and
            ``(3) the Regional Board has a plan to achieve, to 
        the maximum extent practicable, the performance-based 
        benchmarks of the project in the regional rural 
        investment strategy.
    ``(c) Limitations.--
            ``(1) Amount received.--A Regional Board may not 
        receive more than $6,000,000 in regional innovation 
        grants under this section during any 5-year period.
            ``(2) Determination of amount.--The Secretary shall 
        determine the amount of a regional innovation grant 
        based on--
                    ``(A) the needs of the region being 
                addressed by the applicable regional rural 
                investment strategy consistent with the 
                purposes described in subsection (f)(2); and
                    ``(B) the size of the geographical area of 
                the region.
            ``(3) Geographic diversity.--The Secretary shall 
        ensure that not more than 10 percent of funding made 
        available under this section is provided to Regional 
        Boards in any State.
    ``(d) Cost-Sharing.--
            ``(1) Limitation.--Subject to paragraph (2), the 
        amount of a grant made under this section shall not 
        exceed 50 percent of the cost of the project.
            ``(2) Waiver of grantee share.--The Secretary may 
        waive the limitation in paragraph (1) under special 
        circumstances, as determined by the Secretary, 
        including--
                    ``(A) a sudden or severe economic 
                dislocation;
                    ``(B) significant chronic unemployment or 
                poverty;
                    ``(C) a natural disaster; or
                    ``(D) other severe economic, social, or 
                cultural duress.
            ``(3) Other federal assistance.--For the purpose of 
        determining cost-share limitations for any other 
        Federal program, funds provided under this section 
        shall be considered to be non-Federal funds.
    ``(e) Preferences.--In providing regional innovation grants 
under this section, the Secretary shall give--
            ``(1) a high priority to strategies that 
        demonstrate significant leverage of capital and quality 
        job creation; and
            ``(2) a preference to an application proposing 
        projects and initiatives that would--
                    ``(A) advance the overall regional 
                competitiveness of a region;
                    ``(B) address the priorities of a regional 
                rural investment strategy, including priorities 
                that--
                            ``(i) promote cross-sector 
                        collaboration, public-private 
                        partnerships, or the provision of 
                        interim financing or seed capital for 
                        program implementation;
                            ``(ii) exhibit collaborative 
                        innovation and entrepreneurship, 
                        particularly within a public-private 
                        partnership; and
                            ``(iii) represent a broad coalition 
                        of interests described in section 
                        385D(a);
                    ``(C) include a strategy to leverage public 
                non-Federal and private funds and existing 
                assets, including agricultural, natural 
                resource, and public infrastructure assets, 
                with substantial emphasis placed on the 
                existence of real financial commitments to 
                leverage available funds;
                    ``(D) create quality jobs;
                    ``(E) enhance the role, relevance, and 
                leveraging potential of community and regional 
                foundations in support of regional investment 
                strategies;
                    ``(F) demonstrate a history, or involve 
                organizations with a history, of successful 
                leveraging of capital for economic development 
                and public purposes;
                    ``(G) address gaps in existing basic 
                services, including technology, within a 
                region;
                    ``(H) address economic diversification, 
                including agricultural and non-agriculturally 
                based economies, within a regional framework;
                    ``(I) improve the overall quality of life 
                in the region;
                    ``(J) enhance the potential to expand 
                economic development successes across diverse 
                stakeholder groups within the region;
                    ``(K) include an effective working 
                relationship with 1 or more institutions of 
                higher education, tribally controlled colleges 
                or universities, or tribal technical 
                institutions;
                    ``(L) help to meet the other regional 
                competitiveness needs identified by a Regional 
                Board; or
                    ``(M) protect and promote rural heritage.
    ``(f) Uses.--
            ``(1) Leverage.--A Regional Board shall prioritize 
        projects and initiatives carried out using funds from a 
        regional innovation grant provided under this section, 
        based in part on the degree to which members of the 
        Regional Board are able to leverage additional funds 
        for the implementation of the projects.
            ``(2) Purposes.--A Regional Board may use a 
        regional innovation grant--
                    ``(A) to support the development of 
                critical infrastructure (including technology 
                deployment and services) necessary to 
                facilitate the competitiveness of a region;
                    ``(B) to provide assistance to entities 
                within the region that provide essential public 
                and community services;
                    ``(C) to enhance the value-added 
                production, marketing, and use of agricultural 
                and natural resources within the region, 
                including activities relating to renewable and 
                alternative energy production and usage;
                    ``(D) to assist with entrepreneurship, job 
                training, workforce development, housing, 
                educational, or other quality of life services 
                or needs, relating to the development and 
                maintenance of strong local and regional 
                economies;
                    ``(E) to assist in the development of 
                unique new collaborations that link public, 
                private, and philanthropic resources, including 
                community foundations;
                    ``(F) to provide support for business and 
                entrepreneurial investment, strategy, 
                expansion, and development, including 
                feasibility strategies, technical assistance, 
                peer networks, business development funds, and 
                other activities to strengthen the economic 
                competitiveness of the region;
                    ``(G) to provide matching funds to enable 
                community foundations located within the region 
                to build endowments which provide permanent 
                philanthropic resources to implement a regional 
                investment strategy; and
                    ``(H) to preserve and promote rural 
                heritage.
            ``(3) Availability of funds.--The funds made 
        available to a Regional Board or any other eligible 
        grantee through a regional innovation grant shall 
        remain available for the 7-year period beginning on the 
        date on which the award is provided, on the condition 
        that the Regional Board or other grantee continues to 
        be certified by the Secretary as making adequate 
        progress toward achieving established benchmarks.
    ``(g) Cost Sharing.--
            ``(1) Waiver of grantee share.--The Secretary may 
        waive the share of a grantee of the costs of a project 
        funded by a regional innovation grant under this 
        section if the Secretary determines that such a waiver 
        is appropriate, including with respect to special 
        circumstances within tribal regions, in the event an 
        area experiences--
                    ``(A) a sudden or severe economic 
                dislocation;
                    ``(B) significant chronic unemployment or 
                poverty;
                    ``(C) a natural disaster; or
                    ``(D) other severe economic, social, or 
                cultural duress.
            ``(2) Other federal programs.--For the purpose of 
        determining cost-sharing requirements for any other 
        Federal program, funds provided as a regional 
        innovation grant under this section shall be considered 
        to be non-Federal funds.
    ``(h) Noncompliance.--If a Regional Board or other eligible 
grantee fails to comply with any requirement relating to the 
use of funds provided under this section, the Secretary may--
            ``(1) take such actions as are necessary to obtain 
        reimbursement of unused grant funds; and
            ``(2) reprogram the recaptured funds for purposes 
        relating to implementation of this subtitle.
    ``(i) Priority to Areas With Awards and Approved 
Strategies.--
            ``(1) In general.--Subject to paragraph (3), in 
        providing rural development assistance under other 
        programs, the Secretary shall give a high priority to 
        areas that receive innovation grants under this 
        section.
            ``(2) Consultation.--The Secretary shall consult 
        with the heads of other Federal agencies to promote the 
        development of priorities similar to those described in 
        paragraph (1).
            ``(3) Exclusion of certain programs.--Paragraph (1) 
        shall not apply to the provision of rural development 
        assistance under any program relating to basic health, 
        safety, or infrastructure, including broadband 
        deployment or minimum environmental needs.

``SEC. 385G. RURAL ENDOWMENT LOANS PROGRAM.

    ``(a) In General.--The Secretary may provide long-term 
loans to eligible community foundations to assist in the 
implementation of regional investment strategies.
    ``(b) Eligible Community Foundations.--To be eligible to 
receive a loan under this section, a community foundation 
shall--
            ``(1) be located in an area that is covered by a 
        regional investment strategy;
            ``(2) match the amount of the loan with an amount 
        that is at least 250 percent of the amount of the loan; 
        and
            ``(3) use the loan and the matching amount to carry 
        out the regional investment strategy in a manner that 
        is targeted to community and economic development, 
        including through the development of community 
        foundation endowments.
    ``(c) Terms.--A loan made under this section shall--
            ``(1) have a term of not less than 10, nor more 
        than 20, years;
            ``(2) bear an interest rate of 1 percent per annum; 
        and
            ``(3) be subject to such other terms and conditions 
        as are determined appropriate by the Secretary.

``SEC. 385H. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $135,000,000 for the period of fiscal years 2009 
through 2012.''.

SEC. 6029. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT 
                    APPLICATIONS.

    (a) Definition of Application.--In this section, the term 
``application'' does not include an application for a loan or 
grant that, as of the date of enactment of this Act, is in the 
preapplication phase of consideration under regulations of the 
Secretary in effect on the date of enactment of this Act.
    (b) Use of Funds.--Subject to subsection (c), the Secretary 
shall use funds made available under subsection (d) to provide 
funds for applications that are pending on the date of 
enactment of this Act for--
            (1) water or waste disposal grants or direct loans 
        under paragraph (1) or (2) of section 306(a) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1926(a)); and
            (2) emergency community water assistance grants 
        under section 306A of that Act (7 U.S.C. 1926a).
    (c) Limitations.--
            (1) Appropriated amounts.--Funds made available 
        under this section shall be available to the Secretary 
        to provide funds for applications for loans and grants 
        described in subsection (b) that are pending on the 
        date of enactment of this Act only to the extent that 
        funds for the loans and grants appropriated in the 
        annual appropriations Act for fiscal year 2007 have 
        been exhausted.
            (2) Program requirements.--The Secretary may use 
        funds made available under this section to provide 
        funds for a pending application for a loan or grant 
        described in subsection (b) only if the Secretary 
        processes, reviews, and approves the application in 
        accordance with regulations in effect on the date of 
        enactment of this Act.
            (3) Priority.--In providing funding under this 
        section for pending applications for loans or grants 
        described in subsection (b), the Secretary shall 
        provide funding in the following order of priority 
        (until funds made available under this section are 
        exhausted):
                    (A) Pending applications for water systems.
                    (B) Pending applications for waste disposal 
                systems.
    (d) Funding.--Notwithstanding any other provision of law, 
of the funds of the Commodity Credit Corporation, the Secretary 
shall use to carry out this section $120,000,000, to remain 
available until expended.

             Subtitle B--Rural Electrification Act of 1936

SEC. 6101. ENERGY EFFICIENCY PROGRAMS.

    Sections 2(a) and 4 of the Rural Electrification Act of 
1936 (7 U.S.C. 902(a), 904) are amended by inserting 
``efficiency and'' before ``conservation'' each place it 
appears.

SEC. 6102. REINSTATEMENT OF RURAL UTILITY SERVICES DIRECT LENDING.

    (a) In General.--Section 4 of the Rural Electrification Act 
of 1936 (7 U.S.C. 904) is amended--
            (1) by designating the first, second, and third 
        sentences as subsections (a), (b), and (d), 
        respectively; and
            (2) by inserting after subsection (b) (as so 
        designated) the following:
    ``(c) Direct Loans.--
            ``(1) Direct hardship loans.--Direct hardship loans 
        under this section shall be for the same purposes and 
        on the same terms and conditions as hardship loans made 
        under section 305(c)(1).
            ``(2) Other direct loans.--All other direct loans 
        under this section shall bear interest at a rate equal 
        to the then current cost of money to the Government of 
        the United States for loans of similar maturity, plus 
        \1/8\ of 1 percent.''.
    (b) Elimination of Federal Financing Bank Guaranteed 
Loans.--Section 306 of the Rural Electrification Act of 1936 (7 
U.S.C. 936) is amended--
            (1) in the third sentence, by striking ``guarantee, 
        accommodation, or subordination'' and inserting 
        ``accommodation or subordination''; and
            (2) by striking the fourth sentence.

SEC. 6103. DEFERMENT OF PAYMENTS TO ALLOW LOANS FOR IMPROVED ENERGY 
                    EFFICIENCY AND DEMAND REDUCTION AND FOR ENERGY 
                    EFFICIENCY AND USE AUDITS.

    Section 12 of the Rural Electrification Act of 1936 (7 
U.S.C. 912) is amended by adding at the end the following:
    ``(c) Deferment of Payments on Loans.--
            ``(1) In general.--The Secretary shall allow 
        borrowers to defer payment of principal and interest on 
        any direct loan made under this Act to enable the 
        borrower to make loans to residential, commercial, and 
        industrial consumers--
                    ``(A) to conduct energy efficiency and use 
                audits; and
                    ``(B) to install energy efficient measures 
                or devices that reduce the demand on electric 
                systems.
            ``(2) Amount.--The total amount of a deferment 
        under this subsection shall not exceed the sum of the 
        principal and interest on the loans made to a customer 
        of the borrower, as determined by the Secretary.
            ``(3) Term.--The term of a deferment under this 
        subsection shall not exceed 60 months.''.

SEC. 6104. RURAL ELECTRIFICATION ASSISTANCE.

    Section 13 of the Rural Electrification Act of 1936 (7 
U.S.C. 913) is amended to read as follows:

``SEC. 13. DEFINITIONS.

    ``In this Act:
            ``(1) Farm.--The term `farm' means a farm, as 
        defined by the Bureau of the Census.
            ``(2) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(3) Rural area.--Except as provided otherwise in 
        this Act, the term `rural area' means the farm and 
        nonfarm population of--
                    ``(A) any area described in section 
                343(a)(13)(C) of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 
                1991(a)(13)(C)); and
                    ``(B) any area within a service area of a 
                borrower for which a borrower has an 
                outstanding loan made under titles I through V 
                as of the date of enactment of this paragraph.
            ``(4) Territory.--The term `territory' includes any 
        insular possession of the United States.
            ``(5) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.''.

SEC. 6105. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

    The Rural Electrification Act of 1936 is amended by 
inserting after section 306E (7 U.S.C. 936e) the following:

``SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

    ``(a) Definitions.--In this section:
            ``(1) Eligible program.--The term `eligible 
        program' means a program administered by the Rural 
        Utilities Service and authorized in--
                    ``(A) this Act; or
                    ``(B) paragraph (1), (2), (14), (22), or 
                (24) of section 306(a) or section 306A, 306C, 
                306D, or 306E of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 1926(a), 1926a, 
                1926c, 1926d, 1926e).
            ``(2) Substantially underserved trust area.--The 
        term `substantially underserved trust area' means a 
        community in `trust land' (as defined in section 3765 
        of title 38, United States Code) with respect to which 
        the Secretary determines has a high need for the 
        benefits of an eligible program.
    ``(b) Initiative.--The Secretary, in consultation with 
local governments and Federal agencies, may implement an 
initiative to identify and improve the availability of eligible 
programs in communities in substantially underserved trust 
areas.
    ``(c) Authority of Secretary.--In carrying out subsection 
(b), the Secretary--
            ``(1) may make available from loan or loan 
        guarantee programs administered by the Rural Utilities 
        Service to qualified utilities or applicants financing 
        with an interest rate as low as 2 percent, and with 
        extended repayment terms;
            ``(2) may waive nonduplication restrictions, 
        matching fund requirements, or credit support 
        requirements from any loan or grant program 
        administered by the Rural Utilities Service to 
        facilitate the construction, acquisition, or 
        improvement of infrastructure;
            ``(3) may give the highest funding priority to 
        designated projects in substantially underserved trust 
        areas; and
            ``(4) shall only make loans or loan guarantees that 
        are found to be financially feasible and that provide 
        eligible program benefits to substantially underserved 
        trust areas.
    ``(d) Report.--Not later than 1 year after the date of 
enactment of this section and annually thereafter, the 
Secretary shall submit to Congress a report that describes--
            ``(1) the progress of the initiative implemented 
        under subsection (b); and
            ``(2) recommendations for any regulatory or 
        legislative changes that would be appropriate to 
        improve services to substantially underserved trust 
        areas.''.

SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
                    TELEPHONE PURPOSES.

    (a) In General.--Section 313A of the Rural Electrification 
Act of 1936 (7 U.S.C. 940c-1) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``for 
                electrification'' and all that follows through 
                the end and inserting ``for eligible 
                electrification or telephone purposes 
                consistent with this Act.''; and
                    (B) by striking paragraph (4) and inserting 
                the following:
            ``(4) Annual amount.--The total amount of 
        guarantees provided by the Secretary under this section 
        during a fiscal year shall not exceed $1,000,000,000, 
        subject to the availability of funds under subsection 
        (e).'';
            (2) in subsection (c), by striking paragraphs (2) 
        and (3) and inserting the following:
            ``(2) Amount.--
                    ``(A) In general.--The amount of the annual 
                fee paid for the guarantee of a bond or note 
                under this section shall be equal to 30 basis 
                points of the amount of the unpaid principal of 
                the bond or note guaranteed under this section.
                    ``(B) Prohibition.--Except as otherwise 
                provided in this subsection and subsection 
                (e)(2), no other fees shall be assessed.
            ``(3) Payment.--
                    ``(A) In general.--A lender shall pay the 
                fees required under this subsection on a 
                semiannual basis.
                    ``(B) Structured schedule.--The Secretary 
                shall, with the consent of the lender, 
                structure the schedule for payment of the fee 
                to ensure that sufficient funds are available 
                to pay the subsidy costs for note or bond 
                guarantees as provided for in subsection 
                (e)(2).''; and
            (3) in subsection (f), by striking ``2007'' and 
        inserting ``2012''.
    (b) Administration.--The Secretary shall continue to carry 
out section 313A of the Rural Electrification Act of 1936 (7 
U.S.C. 940c-1) in the same manner as on the day before the date 
of enactment of this Act, except without regard to the 
limitations prescribed in subsection (b)(1) of that section, 
until such time as any regulations necessary to carry out the 
amendments made by this section are fully implemented.

SEC. 6107. EXPANSION OF 911 ACCESS.

    Section 315 of the Rural Electrification Act of 1936 (7 
U.S.C. 940e) is amended to read as follows:

``SEC. 315. EXPANSION OF 911 ACCESS.

    ``(a) In General.--Subject to subsection (c) and such terms 
and conditions as the Secretary may prescribe, the Secretary 
may make loans under this title to entities eligible to borrow 
from the Rural Utilities Service, State or local governments, 
Indian tribes (as defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b)), 
or other public entities for facilities and equipment to expand 
or improve in rural areas--
            ``(1) 911 access;
            ``(2) integrated interoperable emergency 
        communications, including multiuse networks that 
        provide commercial or transportation information 
        services in addition to emergency communications 
        services;
            ``(3) homeland security communications;
            ``(4) transportation safety communications; or
            ``(5) location technologies used outside an 
        urbanized area.
    ``(b) Loan Security.--Government-imposed fees related to 
emergency communications (including State or local 911 fees) 
may be considered to be security for a loan under this section.
    ``(c) Emergency Communications Equipment Providers.--The 
Secretary may make a loan under this section to an emergency 
communication equipment provider to expand or improve 911 
access or other communications or technologies described in 
subsection (a) if the local government that has jurisdiction 
over the project is not allowed to acquire the debt resulting 
from the loan.
    ``(d) Authorization of Appropriations.--The Secretary shall 
use to make loans under this section any funds otherwise made 
available for telephone loans for each of fiscal years 2008 
through 2012.''.

SEC. 6108. ELECTRIC LOANS FOR RENEWABLE ENERGY.

    Title III of the Rural Electrification Act of 1936 is 
amended by inserting after section 316 (7 U.S.C. 940f) the 
following:

``SEC. 317. ELECTRIC LOANS FOR RENEWABLE ENERGY.

    ``(a) Definition of Renewable Energy Source.--In this 
section, the term `renewable energy source' means an energy 
conversion system fueled from a solar, wind, hydropower, 
biomass, or geothermal source of energy.
    ``(b) Loans.--In addition to any other funds or authorities 
otherwise made available under this Act, the Secretary may make 
electric loans under this title for electric generation from 
renewable energy resources for resale to rural and nonrural 
residents.
    ``(c) Rate.--The rate of a loan under this section shall be 
equal to the average tax-exempt municipal bond rate of similar 
maturities.''.

SEC. 6109. BONDING REQUIREMENTS.

    Title III of the Rural Electrification Act of 1936 is 
amended by inserting after section 317 (as added by section 
6108) the following:

``SEC. 318. BONDING REQUIREMENTS.

    ``The Secretary shall review the bonding requirements for 
all programs administered by the Rural Utilities Service under 
this Act to ensure that bonds are not required if--
            ``(1) the interests of the Secretary are adequately 
        protected by product warranties; or
            ``(2) the costs or conditions associated with a 
        bond exceed the benefit of the bond.''.

SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
                    AREAS.

    (a) In General.--Section 601 of the Rural Electrification 
Act of 1936 (7 U.S.C. 950bb) is amended to read as follows:

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

    ``(a) Purpose.--The purpose of this section is to provide 
loans and loan guarantees to provide funds for the costs of the 
construction, improvement, and acquisition of facilities and 
equipment for broadband service in rural areas.
    ``(b) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband 
        service' means any technology identified by the 
        Secretary as having the capacity to transmit data to 
        enable a subscriber to the service to originate and 
        receive high-quality voice, data, graphics, and video.
            ``(2) Incumbent service provider.--The term 
        `incumbent service provider', with respect to an 
        application submitted under this section, means an 
        entity that, as of the date of submission of the 
        application, is providing broadband service to not less 
        than 5 percent of the households in the service 
        territory proposed in the application.
            ``(3) Rural area.--
                    ``(A) In general.--The term `rural area' 
                means any area other than--
                            ``(i) an area described in clause 
                        (i) or (ii) of section 343(a)(13)(A) of 
                        the Consolidated Farm and Rural 
                        Development Act (7 U.S.C. 
                        1991(a)(13)(A)); and
                            ``(ii) a city, town, or 
                        incorporated area that has a population 
                        of greater than 20,000 inhabitants.
                    ``(B) Urban area growth.--The Secretary 
                may, by regulation only, consider an area 
                described in section 343(a)(13)(F)(i)(I) of 
                that Act to not be a rural area for purposes of 
                this section.
    ``(c) Loans and Loan Guarantees.--
            ``(1) In general.--The Secretary shall make or 
        guarantee loans to eligible entities described in 
        subsection (d) to provide funds for the construction, 
        improvement, or acquisition of facilities and equipment 
        for the provision of broadband service in rural areas.
            ``(2) Priority.--In making or guaranteeing loans 
        under paragraph (1), the Secretary shall give the 
        highest priority to applicants that offer to provide 
        broadband service to the greatest proportion of 
        households that, prior to the provision of the 
        broadband service, had no incumbent service provider.
    ``(d) Eligibility.--
            ``(1) Eligible entities.--
                    ``(A) In general.--To be eligible to obtain 
                a loan or loan guarantee under this section, an 
                entity shall--
                            ``(i) demonstrate the ability to 
                        furnish, improve, or extend a broadband 
                        service to a rural area;
                            ``(ii) submit to the Secretary a 
                        loan application at such time, in such 
                        manner, and containing such information 
                        as the Secretary may require; and
                            ``(iii) agree to complete buildout 
                        of the broadband service described in 
                        the loan application by not later than 
                        3 years after the initial date on which 
                        proceeds from the loan made or 
                        guaranteed under this section are made 
                        available.
                    ``(B) Limitation.--An eligible entity that 
                provides telecommunications or broadband 
                service to at least 20 percent of the 
                households in the United States may not receive 
                an amount of funds under this section for a 
                fiscal year in excess of 15 percent of the 
                funds authorized and appropriated under 
                subsection (k) for the fiscal year.
            ``(2) Eligible projects.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the proceeds of a 
                loan made or guaranteed under this section may 
                be used to carry out a project in a proposed 
                service territory only if, as of the date on 
                which the application for the loan or loan 
                guarantee is submitted--
                            ``(i) not less than 25 percent of 
                        the households in the proposed service 
                        territory is offered broadband service 
                        by not more than 1 incumbent service 
                        provider; and
                            ``(ii) broadband service is not 
                        provided in any part of the proposed 
                        service territory by 3 or more 
                        incumbent service providers.
                    ``(B) Exception to 25 percent 
                requirement.--Subparagraph (A)(i) shall not 
                apply to the proposed service territory of a 
                project if a loan or loan guarantee has been 
                made under this section to the applicant to 
                provide broadband service in the proposed 
                service territory.
                    ``(C) Exception to 3 or more incumbent 
                service provider requirement.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), subparagraph 
                        (A)(ii) shall not apply to an incumbent 
                        service provider that is upgrading 
                        broadband service to the existing 
                        territory of the incumbent service 
                        provider.
                            ``(ii) Exception.--Clause (i) shall 
                        not apply if the applicant is eligible 
                        for funding under another title of this 
                        Act.
            ``(3) Equity and market survey requirements.--
                    ``(A) In general.--The Secretary may 
                require an entity to provide a cost share in an 
                amount not to exceed 10 percent of the amount 
                of the loan or loan guarantee requested in the 
                application of the entity, unless the Secretary 
                determines that a higher percentage is required 
                for financial feasibility.
                    ``(B) Market survey.--
                            ``(i) In general.--The Secretary 
                        may require an entity that proposes to 
                        have a subscriber projection of more 
                        than 20 percent of the broadband 
                        service market in a rural area to 
                        submit to the Secretary a market 
                        survey.
                            ``(ii) Less than 20 percent.--The 
                        Secretary may not require an entity 
                        that proposes to have a subscriber 
                        projection of less than 20 percent of 
                        the broadband service market in a rural 
                        area to submit to the Secretary a 
                        market survey.
            ``(4) State and local governments and indian 
        tribes.--Subject to paragraph (1), a State or local 
        government (including any agency, subdivision, or 
        instrumentality thereof (including consortia thereof)) 
        and an Indian tribe shall be eligible for a loan or 
        loan guarantee under this section to provide broadband 
        services to a rural area.
            ``(5) Notice requirement.--The Secretary shall 
        publish a notice of each application for a loan or loan 
        guarantee under this section describing the 
        application, including--
                    ``(A) the identity of the applicant;
                    ``(B) each area proposed to be served by 
                the applicant; and
                    ``(C) the estimated number of households 
                without terrestrial-based broadband service in 
                those areas.
            ``(6) Paperwork reduction.--The Secretary shall 
        take steps to reduce, to the maximum extent 
        practicable, the cost and paperwork associated with 
        applying for a loan or loan guarantee under this 
        section by first-time applicants (particularly first-
        time applicants who are small and start-up broadband 
        service providers), including by providing for a new 
        application that maintains the ability of the Secretary 
        to make an analysis of the risk associated with the 
        loan involved.
            ``(7) Preapplication process.--The Secretary shall 
        establish a process under which a prospective applicant 
        may seek a determination of area eligibility prior to 
        preparing a loan application under this section.
    ``(e) Broadband Service.--
            ``(1) In general.--The Secretary shall, from time 
        to time as advances in technology warrant, review and 
        recommend modifications of rate-of-data transmission 
        criteria for purposes of the identification of 
        broadband service technologies under subsection (b)(1).
            ``(2) Prohibition.--The Secretary shall not 
        establish requirements for bandwidth or speed that have 
        the effect of precluding the use of evolving 
        technologies appropriate for rural areas.
    ``(f) Technological Neutrality.--For purposes of 
determining whether to make a loan or loan guarantee for a 
project under this section, the Secretary shall use criteria 
that are technologically neutral.
    ``(g) Terms and Conditions for Loans and Loan Guarantees.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, a loan or loan guarantee under this 
        section shall--
                    ``(A) bear interest at an annual rate of, 
                as determined by the Secretary--
                            ``(i) in the case of a direct loan, 
                        a rate equivalent to--
                                    ``(I) the cost of borrowing 
                                to the Department of the 
                                Treasury for obligations of 
                                comparable maturity; or
                                    ``(II) 4 percent; and
                            ``(ii) in the case of a guaranteed 
                        loan, the current applicable market 
                        rate for a loan of comparable maturity; 
                        and
                    ``(B) have a term of such length, not 
                exceeding 35 years, as the borrower may 
                request, if the Secretary determines that the 
                loan is adequately secured.
            ``(2) Term.--In determining the term of a loan or 
        loan guarantee, the Secretary shall consider whether 
        the recipient is or would be serving an area that is 
        not receiving broadband services.
            ``(3) Recurring revenue.--The Secretary shall 
        consider the existing recurring revenues of the entity 
        at the time of application in determining an adequate 
        level of credit support.
    ``(h) Adequacy of Security.--
            ``(1) In general.--The Secretary shall ensure that 
        the type and amount of, and method of security used to 
        secure, any loan or loan guarantee under this section 
        is commensurate to the risk involved with the loan or 
        loan guarantee, particularly in any case in which the 
        loan or loan guarantee is issued to a financially 
        strong and stable entity, as determined by the 
        Secretary.
            ``(2) Determination of amount and method of 
        security.--In determining the amount of, and method of 
        security used to secure, a loan or loan guarantee under 
        this section, the Secretary shall consider reducing the 
        security in a rural area that does not have broadband 
        service.
    ``(i) Use of Loan Proceeds to Refinance Loans for 
Deployment of Broadband Service.--Notwithstanding any other 
provision of this Act, the proceeds of any loan made or 
guaranteed by the Secretary under this Act may be used by the 
recipient of the loan for the purpose of refinancing an 
outstanding obligation of the recipient on another 
telecommunications loan made under this Act if the use of the 
proceeds for that purpose will support the construction, 
improvement, or acquisition of facilities and equipment for the 
provision of broadband service in rural areas.
    ``(j) Reports.--Not later than 1 year after the date of 
enactment of the Food, Conservation, and Energy Act of 2008, 
and annually thereafter, the Administrator shall submit to 
Congress a report that describes the extent of participation in 
the loan and loan guarantee program under this section for the 
preceding fiscal year, including a description of --
            ``(1) the number of loans applied for and provided 
        under this section;
            ``(2)(A) the communities proposed to be served in 
        each loan application submitted for the fiscal year; 
        and
            ``(B) the communities served by projects funded by 
        loans and loan guarantees provided under this section;
            ``(3) the period of time required to approve each 
        loan application under this section;
            ``(4) any outreach activities carried out by the 
        Secretary to encourage entities in rural areas without 
        broadband service to submit applications under this 
        section;
            ``(5) the method by which the Secretary determines 
        that a service enables a subscriber to originate and 
        receive high-quality voice, data, graphics, and video 
        for purposes of subsection (b)(1); and
            ``(6) each broadband service, including the type 
        and speed of broadband service, for which assistance 
        was sought, and each broadband service for which 
        assistance was provided, under this section.
    ``(k) Funding.--
            ``(1) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary to carry 
        out this section $25,000,000 for each of fiscal years 
        2008 through 2012, to remain available until expended.
            ``(2) Allocation of funds.--
                    ``(A) In general.--From amounts made 
                available for each fiscal year under this 
                subsection, the Secretary shall--
                            ``(i) establish a national reserve 
                        for loans and loan guarantees to 
                        eligible entities in States under this 
                        section; and
                            ``(ii) allocate amounts in the 
                        reserve to each State for each fiscal 
                        year for loans and loan guarantees to 
                        eligible entities in the State.
                    ``(B) Amount.--The amount of an allocation 
                made to a State for a fiscal year under 
                subparagraph (A) shall bear the same ratio to 
                the amount of allocations made for all States 
                for the fiscal year as--
                            ``(i) the number of communities 
                        with a population of 2,500 inhabitants 
                        or less in the State; bears to
                            ``(ii) the number of communities 
                        with a population of 2,500 inhabitants 
                        or less in all States.
                    ``(C) Unobligated amounts.--Any amounts in 
                the reserve established for a State for a 
                fiscal year under subparagraph (B) that are not 
                obligated by April 1 of the fiscal year shall 
                be available to the Secretary to make loans and 
                loan guarantees under this section to eligible 
                entities in any State, as determined by the 
                Secretary.
    ``(l) Termination of Authority.--No loan or loan guarantee 
may be made under this section after September 30, 2012.''.
    (b) Regulations.--The Secretary may implement the amendment 
made by subsection (a) through the promulgation of an interim 
regulation.
    (c) Application.--The amendment made by subsection (a) 
shall not apply to--
            (1) an application submitted under section 601 of 
        the Rural Electrification Act of 1936 (7 U.S.C. 950bb) 
        (as it existed before the amendment made by subsection 
        (a)) that--
                    (A) was pending on the date that is 45 days 
                prior to the date of enactment of this Act; and
                    (B) is pending on the date of enactment of 
                this Act; or
            (2) a petition for reconsideration of a decision on 
        an application described in paragraph (1).

SEC. 6111. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.

    Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 
950bb et seq.) is amended by adding at the end the following:

``SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.

    ``(a) Designation of Center.--The Secretary shall designate 
an entity to serve as the National Center for Rural 
Telecommunications Assessment (referred to in this section as 
the `Center').
    ``(b) Criteria.--In designating the Center under subsection 
(a), the Secretary shall take into consideration the following 
criteria:
            ``(1) The Center shall be an entity that 
        demonstrates to the Secretary--
                    ``(A) a focus on rural policy research; and
                    ``(B) a minimum of 5 years of experience 
                relating to rural telecommunications research 
                and assessment.
            ``(2) The Center shall be capable of assessing 
        broadband services in rural areas.
            ``(3) The Center shall have significant experience 
        involving other rural economic development centers and 
        organizations with respect to the assessment of rural 
        policies and the formulation of policy solutions at the 
        Federal, State, and local levels.
    ``(c) Board of Directors.--The Center shall be managed by a 
board of directors, which shall be responsible for the duties 
of the Center described in subsection (d).
    ``(d) Duties.--The Center shall--
            ``(1) assess the effectiveness of programs carried 
        out under this title in increasing broadband 
        penetration and purchase in rural areas, especially in 
        rural communities identified by the Secretary as having 
        no broadband service before the provision of a loan or 
        loan guarantee under this title;
            ``(2) work with existing rural development centers 
        selected by the Center to identify policies and 
        initiatives at the Federal, State, and local levels 
        that have increased broadband penetration and purchase 
        in rural areas and provide recommendations to Federal, 
        State, and local policymakers on effective strategies 
        to bring affordable broadband services to residents of 
        rural areas, particularly residents located outside of 
        the municipal boundaries of a rural city or town; and
            ``(3) develop and publish reports describing the 
        activities carried out by the Center under this 
        section.
    ``(e) Reporting Requirements.--Not later than December 1 of 
each applicable fiscal year, the board of directors of the 
Center shall submit to Congress and the Secretary a report 
describing the activities carried out by the Center during the 
preceding fiscal year and the results of any research conducted 
by the Center during that fiscal year, including--
            ``(1) an assessment of each program carried out 
        under this title; and
            ``(2) an assessment of the effects of the policy 
        initiatives identified under subsection (d)(2).
    ``(f) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out this section 
$1,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 6112. COMPREHENSIVE RURAL BROADBAND STRATEGY.

    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Chairman of the Federal 
Communications Commission, in coordination with the Secretary, 
shall submit to Congress a report describing a comprehensive 
rural broadband strategy that includes--
            (1) recommendations--
                    (A) to promote interagency coordination of 
                Federal agencies in regards to policies, 
                procedures, and targeted resources, and to 
                streamline or otherwise improve and streamline 
                the policies, programs, and services;
                    (B) to coordinate existing Federal rural 
                broadband or rural initiatives;
                    (C) to address both short- and long-term 
                needs assessments and solutions for a rapid 
                build-out of rural broadband solutions and 
                application of the recommendations for Federal, 
                State, regional, and local government 
                policymakers; and
                    (D) to identify how specific Federal agency 
                programs and resources can best respond to 
                rural broadband requirements and overcome 
                obstacles that currently impede rural broadband 
                deployment; and
            (2) a description of goals and timeframes to 
        achieve the purposes of the report.
    (b) Updates.--The Chairman of the Federal Communications 
Commission, in coordination with the Secretary, shall update 
and evaluate the report described in subsection (a) during the 
third year after the date of enactment of this Act.

SEC. 6113. STUDY ON RURAL ELECTRIC POWER GENERATION.

    (a) In General.--The Secretary shall conduct a study on the 
electric power generation needs in rural areas of the United 
States.
    (b) Components.--The study shall include an examination 
of--
            (1) generation in various areas in rural areas of 
        the United States, particularly by rural electric 
        cooperatives;
            (2) financing available for capacity, including 
        financing available through programs authorized under 
        the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
        seq.);
            (3) the impact of electricity costs on consumers 
        and local economic development;
            (4) the ability of fuel feedstock technology to 
        meet regulatory requirements, such as carbon capture 
        and sequestration; and
            (5) any other factors that the Secretary considers 
        appropriate.
    (c) Report.--Not later than 60 days after the date of 
enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report containing the findings of the study under this 
section.

                       Subtitle C--Miscellaneous

SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.

    (a) In General.--Section 2333(c)(1) of the Food, 
Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. Sec. 
950aaa-2(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``and'' at the 
        end;
            (2) in subparagraph (B), by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(C) libraries.''.
    (b) Authorization of Appropriations.--Section 2335A of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 950aaa-5) is amended by striking ``2007'' and inserting 
``2012''.
    (c) Conforming Amendment.--Section 1(b) of Public Law 102-
551 (7 U.S.C. 950aaa note; Public Law 102-551) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.

    (a) Definitions.--Section 231 of the Agricultural Risk 
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) 
is amended by striking subsection (a) and inserting the 
following:
    ``(a) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term 
        `beginning farmer or rancher' has the meaning given the 
        term in section 343(a) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1991(a)).
            ``(2) Family farm.--The term `family farm' has the 
        meaning given the term in section 761.2 of title 7, 
        Code of Federal Regulations (as in effect on December 
        30, 2007).
            ``(3) Mid-tier value chain.--The term `mid-tier 
        value chain' means local and regional supply networks 
        that link independent producers with businesses and 
        cooperatives that market value-added agricultural 
        products in a manner that--
                    ``(A) targets and strengthens the 
                profitability and competitiveness of small and 
                medium-sized farms and ranches that are 
                structured as a family farm; and
                    ``(B) obtains agreement from an eligible 
                agricultural producer group, farmer or rancher 
                cooperative, or majority-controlled producer-
                based business venture that is engaged in the 
                value chain on a marketing strategy.
            ``(4) Socially disadvantaged farmer or rancher.--
        The term `socially disadvantaged farmer or rancher' has 
        the meaning given the term in section 355(e) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        2003(e)).
            ``(5) Value-added agricultural product.--The term 
        `value-added agricultural product' means any 
        agricultural commodity or product that--
                    ``(A)(i) has undergone a change in physical 
                state;
                    ``(ii) was produced in a manner that 
                enhances the value of the agricultural 
                commodity or product, as demonstrated through a 
                business plan that shows the enhanced value, as 
                determined by the Secretary;
                    ``(iii) is physically segregated in a 
                manner that results in the enhancement of the 
                value of the agricultural commodity or product;
                    ``(iv) is a source of farm- or ranch-based 
                renewable energy, including E-85 fuel; or
                    ``(v) is aggregated and marketed as a 
                locally-produced agricultural food product; and
            ``(B) as a result of the change in physical state 
        or the manner in which the agricultural commodity or 
        product was produced, marketed, or segregated--
                    ``(i) the customer base for the 
                agricultural commodity or product is expanded; 
                and
                    ``(ii) a greater portion of the revenue 
                derived from the marketing, processing, or 
                physical segregation of the agricultural 
                commodity or product is available to the 
                producer of the commodity or product.''.
    (b) Grant Program.--Section 231(b) of the Agricultural Risk 
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) 
is amended--
            (1) in paragraph (1), by striking ``paragraph (4)'' 
        and inserting ``paragraph (7)''; and
            (2) by striking paragraph (4) and inserting the 
        following:
            ``(4) Term.--A grant under this subsection shall 
        have a term that does not exceed 3 years.
            ``(5) Simplified application.--The Secretary shall 
        offer a simplified application form and process for 
        project proposals requesting less than $50,000.
            ``(6) Priority.--In awarding grants under this 
        subsection, the Secretary shall give priority to 
        projects that contribute to increasing opportunities 
        for--
                    ``(A) beginning farmers or ranchers;
                    ``(B) socially disadvantaged farmers or 
                ranchers; and
                    ``(C) operators of small- and medium-sized 
                farms and ranches that are structured as a 
                family farm.
            ``(7) Funding.--
                    ``(A) Mandatory funding.--On October 1, 
                2008, of the funds of the Commodity Credit 
                Corporation, the Secretary shall make available 
                to carry out this subsection $15,000,000, to 
                remain available until expended.
                    ``(B) Discretionary funding.--There is 
                authorized to be appropriated to carry out this 
                subsection $40,000,000 for each of fiscal years 
                2008 through 2012.
                    ``(C) Reservation of funds for projects to 
                benefit beginning farmers or ranchers, socially 
                disadvantaged farmers or ranchers, and mid-tier 
                value chains.--
                            ``(i) In general.--The Secretary 
                        shall reserve 10 percent of the amounts 
                        made available for each fiscal year 
                        under this paragraph to fund projects 
                        that benefit beginning farmers or 
                        ranchers or socially disadvantaged 
                        farmers or ranchers.
                            ``(ii) Mid-tier value chains.--The 
                        Secretary shall reserve 10 percent of 
                        the amounts made available for each 
                        fiscal year under this paragraph to 
                        fund applications of eligible entities 
                        described in paragraph (1) that propose 
                        to develop mid-tier value chains.
                            ``(iii) Unobligated amounts.--Any 
                        amounts in the reserves for a fiscal 
                        year established under clauses (i) and 
                        (ii) that are not obligated by June 30 
                        of the fiscal year shall be available 
                        to the Secretary to make grants under 
                        this subsection to eligible entities in 
                        any State, as determined by the 
                        Secretary.''.

SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

    Section 6402 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 1621 note; Public Law 107-171) is amended by 
striking subsection (i) and inserting the following:
    ``(i) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out this section 
$6,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 6204. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE ASSISTANCE 
                    PROGRAM.

    Section 6405 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 2655) is amended to read as follows:

``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE 
                    ASSISTANCE PROGRAM.

    ``(a) Definition of Emergency Medical Services.--In this 
section:
            ``(1) In general.--The term `emergency medical 
        services' means resources used by a public or nonprofit 
        entity to deliver medical care outside of a medical 
        facility under emergency conditions that occur as a 
        result of--
                    ``(A) the condition of a patient; or
                    ``(B) a natural disaster or related 
                condition.
            ``(2) Inclusion.--The term `emergency medical 
        services' includes services (whether compensated or 
        volunteer) delivered by an emergency medical services 
        provider or other provider recognized by the State 
        involved that is licensed or certified by the State 
        as--
                    ``(A) an emergency medical technician or 
                the equivalent (as determined by the State);
                    ``(B) a registered nurse;
                    ``(C) a physician assistant; or
                    ``(D) a physician that provides services 
                similar to services provided by such an 
                emergency medical services provider.
    ``(b) Grants.--The Secretary shall award grants to eligible 
entities--
            ``(1) to enable the entities to provide for 
        improved emergency medical services in rural areas; and
            ``(2) to pay the cost of training firefighters and 
        emergency medical personnel in firefighting, emergency 
        medical practices, and responding to hazardous 
        materials and bioagents in rural areas.
    ``(c) Eligibility.--To be eligible to receive a grant under 
this section, an entity shall--
            ``(1) be--
                    ``(A) a State emergency medical services 
                office;
                    ``(B) a State emergency medical services 
                association;
                    ``(C) a State office of rural health or an 
                equivalent agency;
                    ``(D) a local government entity;
                    ``(E) an Indian tribe (as defined in 
                section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b));
                    ``(F) a State or local ambulance provider; 
                or
                    ``(G) any other public or nonprofit entity 
                determined appropriate by the Secretary; and
            ``(2) prepare and submit to the Secretary an 
        application at such time, in such manner, and 
        containing such information as the Secretary may 
        require, that includes--
                    ``(A) a description of the activities to be 
                carried out under the grant; and
                    ``(B) an assurance that the applicant will 
                comply with the matching requirement of 
                subsection (f).
    ``(d) Use of Funds.--An entity shall use amounts received 
under a grant made under subsection (b) only in a rural area--
            ``(1) to hire or recruit emergency medical service 
        personnel;
            ``(2) to recruit or retain volunteer emergency 
        medical service personnel;
            ``(3) to train emergency medical service personnel 
        in emergency response, injury prevention, safety 
        awareness, or other topics relevant to the delivery of 
        emergency medical services;
            ``(4) to fund training to meet State or Federal 
        certification requirements;
            ``(5) to provide training for firefighters or 
        emergency medical personnel for improvements to the 
        training facility, equipment, curricula, or personnel;
            ``(6) to develop new ways to educate emergency 
        health care providers through the use of technology-
        enhanced educational methods (such as distance 
        learning);
            ``(7) to acquire emergency medical services 
        vehicles, including ambulances;
            ``(8) to acquire emergency medical services 
        equipment, including cardiac defibrillators;
            ``(9) to acquire personal protective equipment for 
        emergency medical services personnel as required by the 
        Occupational Safety and Health Administration; or
            ``(10) to educate the public concerning 
        cardiopulmonary resuscitation (CPR), first aid, injury 
        prevention, safety awareness, illness prevention, or 
        other related emergency preparedness topics.
    ``(e) Preference.--In awarding grants under this section, 
the Secretary shall give preference to--
            ``(1) applications that reflect a collaborative 
        effort by 2 or more of the entities described in 
        subparagraphs (A) through (G) of subsection (c)(1); and
            ``(2) applications submitted by entities that 
        intend to use amounts provided under the grant to fund 
        activities described in any of paragraphs (1) through 
        (5) of subsection (d).
    ``(f) Matching Requirement.--The Secretary may not make a 
grant under this section to an entity unless the entity makes 
available (directly or through contributions from other public 
or private entities) non-Federal contributions toward the 
activities to be carried out under the grant in an amount equal 
to at least 5 percent of the amount received under the grant.
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be 
        appropriated to the Secretary to carry out this section 
        not more than $30,000,000 for each of fiscal years 2008 
        through 2012.
            ``(2) Administrative costs.--Not more than 5 
        percent of the amount appropriated under paragraph (1) 
        for a fiscal year may be used for administrative 
        expenses incurred in carrying out this section.''.

SEC. 6205. INSURANCE OF LOANS FOR HOUSING AND RELATED FACILITIES FOR 
                    DOMESTIC FARM LABOR.

    Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C. 
1484(f)(3)) is amended by striking ``or the handling of such 
commodities in the unprocessed stage'' and inserting ``, the 
handling of agricultural or aquacultural commodities in the 
unprocessed stage, or the processing of agricultural or 
aquacultural commodities''.

SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES.

    (a) In General.--The Secretary of Agriculture and the 
Secretary of Transportation shall jointly conduct a study of 
transportation issues regarding the movement of agricultural 
products, domestically produced renewable fuels, and 
domestically produced resources for the production of 
electricity for rural areas of the United States, and economic 
development in those areas.
    (b) Inclusions.--The study shall include an examination 
of--
            (1) the importance of freight transportation, 
        including rail, truck, and barge, to--
                    (A) the delivery of equipment, seed, 
                fertilizer, and other such products important 
                to the development of agricultural commodities 
                and products;
                    (B) the movement of agricultural 
                commodities and products to market;
                    (C) the delivery of ethanol and other 
                renewable fuels;
                    (D) the delivery of domestically produced 
                resources for use in the generation of 
                electricity for rural areas;
                    (E) the location of grain elevators, 
                ethanol plants, and other facilities;
                    (F) the development of manufacturing 
                facilities in rural areas; and
                    (G) the vitality and economic development 
                of rural communities;
            (2) the sufficiency in rural areas of 
        transportation capacity, the sufficiency of competition 
        in the transportation system, the reliability of 
        transportation services, and the reasonableness of 
        transportation rates;
            (3) the sufficiency of facility investment in rural 
        areas necessary for efficient and cost-effective 
        transportation; and
            (4) the accessibility to shippers in rural areas of 
        Federal processes for the resolution of grievances 
        arising within various transportation modes.
    (c) Report to Congress.--Not later than 1 year after the 
date of enactment of this Act, the Secretary and the Secretary 
of Transportation shall submit to Congress a report that 
contains the results of the study required by subsection (a).

                 Subtitle D--Housing Assistance Council

SEC. 6301. SHORT TITLE.

    This subtitle may be cited as the ``Housing Assistance 
Council Authorization Act of 2008''.

SEC. 6302. ASSISTANCE TO HOUSING ASSISTANCE COUNCIL.

    (a) Use.--The Secretary of Housing and Urban Development 
may provide financial assistance to the Housing Assistance 
Council for use by the Council to develop the ability and 
capacity of community-based housing development organizations 
to undertake community development and affordable housing 
projects and programs in rural areas. Assistance provided by 
the Secretary under this section may be used by the Housing 
Assistance Council for--
            (1) technical assistance, training, support, 
        research, and advice to develop the business and 
        administrative capabilities of rural community-based 
        housing development organizations;
            (2) loans, grants, or other financial assistance to 
        rural community-based housing development organizations 
        to carry out community development and affordable 
        housing activities for low- and moderate-income 
        families; and
            (3) such other activities as may be determined by 
        the Secretary of Housing and Urban Development and the 
        Housing Assistance Council.
    (b) Authorization of Appropriations.--There is authorized 
to be appropriated for financial assistance under this section 
for the Housing Assistance Council $10,000,000 for each of 
fiscal years 2009 through 2011.

SEC. 6303. AUDITS AND REPORTS.

    (a) Audit.--
            (1) In general.--The financial transactions and 
        activities of the Housing Assistance Council shall be 
        audited annually by an independent certified public 
        accountant or an independent licensed public accountant 
        certified or licensed by a regulatory authority of a 
        State or other political subdivision of the United 
        States.
            (2) Requirements of audits.--The Comptroller 
        General of the United States may rely on any audit 
        completed under paragraph (1), if the audit complies 
        with--
                    (A) the annual programmatic and financial 
                examination requirements established in OMB 
                Circular A-133; and
                    (B) generally accepted government auditing 
                standards.
            (3) Report to congress.--The Comptroller General 
        shall submit to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on 
        Financial Services of the House of Representatives a 
        report detailing each audit completed under paragraph 
        (1).
    (b) GAO Report.--The Comptroller General of the United 
States shall conduct a study and submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of 
Representatives on the use of any funds appropriated to the 
Housing Assistance Council over the past 7 years.

SEC. 6304. PERSONS NOT LAWFULLY PRESENT IN THE UNITED STATES.

    Aliens who are not lawfully present in the United States 
shall be ineligible for financial assistance under this 
subtitle, as provided and defined by section 214 of the Housing 
and Community Development Act of 1980 (42 U.S.C. 1436a). 
Nothing in this subtitle shall be construed to alter the 
restrictions or definitions in such section 214.

SEC. 6305. LIMITATION ON USE OF AUTHORIZED AMOUNTS.

    None of the amounts authorized by this subtitle may be used 
to lobby or retain a lobbyist for the purpose of influencing a 
Federal, State, or local governmental entity or officer.

                TITLE VII--RESEARCH AND RELATED MATTERS

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

SEC. 7101. DEFINITIONS.

    (a) In General.--Section 1404 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3103) is amended--
            (1) in paragraph (4)--
                    (A) by redesignating subparagraphs (A) 
                through (E) as clauses (i) through (v), 
                respectively;
                    (B) by striking ``(4) The terms'' and 
                inserting the following:
            ``(4) College and university.--
                    ``(A) In general.--The terms''; and
                    (C) by adding at the end the following:
                    ``(B) Inclusions.--The terms `college' and 
                `university' include a research foundation 
                maintained by a college or university described 
                in subparagraph (A).'';
            (2) by redesignating paragraphs (5) through (8), 
        (9) through (11), (12) through (14), (15), (16), (17), 
        and (18) as paragraphs (6) through (9), (11) through 
        (13), (15) through (17), (20), (5), (18), and (19), 
        respectively, and moving the paragraphs so as to appear 
        in alphabetical and numerical order;
            (3) in paragraph (9) (as redesignated by paragraph 
        (2))--
                    (A) by striking ``renewable natural 
                resources'' and inserting ``renewable energy 
                and natural resources''; and
                    (B) by striking subparagraph (F) and 
                inserting the following:
                    ``(F) Soil, water, and related resource 
                conservation and improvement.'';
            (4) by inserting after paragraph (9) (as so 
        redesignated) the following:
            ``(10) Hispanic-serving agricultural colleges and 
        universities.--
                    ``(A) In general.--The term `Hispanic-
                serving agricultural colleges and universities' 
                means colleges or universities that--
                            ``(i) qualify as Hispanic-serving 
                        institutions; and
                            ``(ii) offer associate, bachelors, 
                        or other accredited degree programs in 
                        agriculture-related fields.
                    ``(B) Exception.--The term `Hispanic-
                serving agricultural colleges and universities' 
                does not include 1862 institutions (as defined 
                in section 2 of the Agricultural Research, 
                Extension, and Education Reform Act of 1998 (7 
                U.S.C. 7601)).'';
            (5) by striking paragraph (11) (as so redesignated) 
        and inserting the following:
            ``(11) Hispanic-serving institution.--The term 
        `Hispanic-serving institution' has the meaning given 
        the term in section 502 of the Higher Education Act of 
        1965 (20 U.S.C. 1101a).''; and
            (6) by inserting after paragraph (13) (as so 
        redesignated) the following:
            ``(14) NLGCA institution; non-land-grant college of 
        agriculture.--
                    ``(A) In general.--The terms `NLGCA 
                Institution' and `non-land-grant college of 
                agriculture' mean a public college or 
                university offering a baccalaureate or higher 
                degree in the study of agriculture or forestry.
                    ``(B) Exclusions.--The terms `NLGCA 
                Institution' and `non-land-grant college of 
                agriculture' do not include--
                            ``(i) Hispanic-serving agricultural 
                        colleges and universities; or
                            ``(ii) any institution designated 
                        under--
                                    ``(I) the Act of July 2, 
                                1862 (commonly known as the 
                                `First Morrill Act'; 7 U.S.C. 
                                301 et seq.);
                                    ``(II) the Act of August 
                                30, 1890 (commonly known as the 
                                `Second Morrill Act') (7 U.S.C. 
                                321 et seq.);
                                    ``(III) the Equity in 
                                Educational Land-Grant Status 
                                Act of 1994 (Public Law 103-
                                382; 7 U.S.C. 301 note); or
                                    ``(IV) Public Law 87-788 
                                (commonly known as the 
                                `McIntire-Stennis Cooperative 
                                Forestry Act') (16 U.S.C. 582a 
                                et seq.).''.
    (b) Conforming Amendments.--
            (1) Section 2(3) of the Research Facilities Act (7 
        U.S.C. 390(3)) is amended by striking ``section 1404(8) 
        of the National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 (7 U.S.C. 3103(8))'' and 
        inserting ``section 1404 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103)''.
            (2) Section 2(k) of the Competitive, Special, and 
        Facilities Research Grant Act (7 U.S.C. 450i(k)) is 
        amended in the second sentence by striking ``section 
        1404(17) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3103(17))'' and inserting ``section 1404 of the 
        National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977 (7 U.S.C. 3103)''.
            (3) Section 18(a)(3)(B) of the Food and Nutrition 
        Act of 2008 (7 U.S.C. 2027(a)(3)(B)) is amended by 
        striking ``section 1404(5) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103(5)))'' and inserting ``section 1404 of the 
        National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977 (7 U.S.C. 3103))''.
            (4) Section 1473 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3319) is amended in the first sentence by 
        striking ``section 1404(16) of this title'' and 
        inserting ``section 1404(18)''.
            (5) Section 1619(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5801(b)) 
        is amended--
                    (A) in paragraph (1), by striking ``section 
                1404(17) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103(17))'' and inserting ``section 1404 
                of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103)'';
                    (B) in paragraph (5), by striking ``section 
                1404(7) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103(7))'' and inserting ``section 1404 
                of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103)''; and
                    (C) in paragraph (8), by striking ``section 
                1404(13) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103(13))'' and inserting ``section 1404 
                of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103)''.
            (6) Section 125(c)(1)(C) of Public Law 100-238 (5 
        U.S.C. 8432 note) is amended by striking ``section 
        1404(5) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3103(5))'' and inserting ``section 1404 of the National 
        Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3103)''.

SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
                    ECONOMICS ADVISORY BOARD.

    (a) In General.--Section 1408 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3123) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``31'' 
                and inserting ``25''; and
                    (B) by striking paragraph (3) and inserting 
                the following:
            ``(3) Membership categories.--The Advisory Board 
        shall consist of members from each of the following 
        categories:
                    ``(A) 1 member representing a national farm 
                organization.
                    ``(B) 1 member representing farm 
                cooperatives.
                    ``(C) 1 member actively engaged in the 
                production of a food animal commodity, 
                recommended by a coalition of national 
                livestock organizations.
                    ``(D) 1 member actively engaged in the 
                production of a plant commodity, recommended by 
                a coalition of national crop organizations.
                    ``(E) 1 member actively engaged in 
                aquaculture, recommended by a coalition of 
                national aquacultural organizations.
                    ``(F) 1 member representing a national food 
                animal science society.
                    ``(G) 1 member representing a national 
                crop, soil, agronomy, horticulture, plant 
                pathology, or weed science society.
                    ``(H) 1 member representing a national food 
                science organization.
                    ``(I) 1 member representing a national 
                human health association.
                    ``(J) 1 member representing a national 
                nutritional science society.
                    ``(K) 1 member representing the land-grant 
                colleges and universities eligible to receive 
                funds under the Act of July 2, 1862 (7 U.S.C. 
                301 et seq.).
                    ``(L) 1 member representing the land-grant 
                colleges and universities eligible to receive 
                funds under the Act of August 30, 1890 (7 
                U.S.C. 321 et seq.), including Tuskegee 
                University.
                    ``(M) 1 member representing the 1994 
                Institutions (as defined in section 532 of the 
                Equity in Educational Land-Grant Status Act of 
                1994 (7 U.S.C. 301 note; Public Law 103-382)).
                    ``(N) 1 member representing NLGCA 
                Institutions.
                    ``(O) 1 member representing Hispanic-
                serving institutions.
                    ``(P) 1 member representing the American 
                Colleges of Veterinary Medicine.
                    ``(Q) 1 member engaged in the 
                transportation of food and agricultural 
                products to domestic and foreign markets.
                    ``(R) 1 member representing food retailing 
                and marketing interests.
                    ``(S) 1 member representing food and fiber 
                processors.
                    ``(T) 1 member actively engaged in rural 
                economic development.
                    ``(U) 1 member representing a national 
                consumer interest group.
                    ``(V) 1 member representing a national 
                forestry group.
                    ``(W) 1 member representing a national 
                conservation or natural resource group.
                    ``(X) 1 member representing private sector 
                organizations involved in international 
                development.
                    ``(Y) 1 member representing a national 
                social science association.'';
            (2) in subsection (g)(1), by striking ``$350,000'' 
        and inserting ``$500,000''; and
            (3) in subsection (h), by striking ``2007'' and 
        inserting ``2012''.
    (b) No Effect on Terms.--Nothing in this section or any 
amendment made by this section affects the term of any member 
of the National Agricultural Research, Extension, Education, 
and Economics Advisory Board serving as of the date of 
enactment of this Act.

SEC. 7103. SPECIALTY CROP COMMITTEE REPORT.

    Section 1408A(c) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) 
is amended by adding at the end the following:
            ``(4) Analyses of changes in macroeconomic 
        conditions, technologies, and policies on specialty 
        crop production and consumption, with particular focus 
        on the effect of those changes on the financial 
        stability of producers.
            ``(5) Development of data that provide applied 
        information useful to specialty crop growers, their 
        associations, and other interested beneficiaries in 
        evaluating that industry from a regional and national 
        perspective.''.

SEC. 7104. RENEWABLE ENERGY COMMITTEE.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 is amended by inserting after section 1408A 
(7 U.S.C. 3123a) the following:

``SEC. 1408B. RENEWABLE ENERGY COMMITTEE.

    ``(a) Initial Members.--Not later than 90 days after the 
date of enactment of this section, the executive committee of 
the Advisory Board shall establish and appoint the initial 
members of a permanent renewable energy committee.
    ``(b) Duties.--The permanent renewable energy committee 
shall study the scope and effectiveness of research, extension, 
and economics programs affecting the renewable energy industry.
    ``(c) Nonadvisory Board Members.--
            ``(1) In general.--An individual who is not a 
        member of the Advisory Board may be appointed as a 
        member of the renewable energy committee.
            ``(2) Service.--A member of the renewable energy 
        committee shall serve at the discretion of the 
        executive committee.
    ``(d) Report by Renewable Energy Committee.--Not later than 
180 days after the date of establishment of the renewable 
energy committee, and annually thereafter, the renewable energy 
committee shall submit to the Advisory Board a report that 
contains the findings and any recommendations of the renewable 
energy committee with respect to the study conducted under 
subsection (b).
    ``(e) Consultation.--In carrying out the duties described 
in subsection (b), the renewable energy committee shall consult 
with the Biomass Research and Development Technical Advisory 
Committee established under section 9008(d) of the Biomass 
Research and Development Act of 2000 (7 U.S.C. 8605).
    ``(f) Matters To Be Considered in Budget Recommendation.--
In preparing the annual budget recommendations for the 
Department, the Secretary shall take into consideration those 
findings and recommendations contained in the most recent 
report of the renewable energy committee under subsection (d) 
that are developed by the Advisory Committee.
    ``(g) Report by the Secretary.--In the budget material 
submitted to Congress by the Secretary in connection with the 
budget submitted pursuant to section 1105 of title 31, United 
States Code, for a fiscal year, the Secretary shall include a 
report that describes the ways in which the Secretary addressed 
each recommendation of the renewable energy committee described 
in subsection (f).''.

SEC. 7105. VETERINARY MEDICINE LOAN REPAYMENT.

    (a) In General.--Section 1415A of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3151a) is amended--
            (1) by striking subsection (b) and inserting the 
        following:
    ``(b) Determination of Veterinarian Shortage Situations.--
In determining `veterinarian shortage situations', the 
Secretary may consider--
            ``(1) geographical areas that the Secretary 
        determines have a shortage of veterinarians; and
            ``(2) areas of veterinary practice that the 
        Secretary determines have a shortage of veterinarians, 
        such as food animal medicine, public health, 
        epidemiology, and food safety.'';
            (2) in subsection (c), by adding at the end the 
        following:
            ``(8) Priority.--In administering the program, the 
        Secretary shall give priority to agreements with 
        veterinarians for the practice of food animal medicine 
        in veterinarian shortage situations.'';
            (3) by redesignating subsection (d) as subsection 
        (f); and
            (4) by inserting after subsection (c) the 
        following:
    ``(d) Use of Funds.--None of the funds appropriated to the 
Secretary under subsection (f) may be used to carry out section 
5379 of title 5, United States Code.
    ``(e) Regulations.--Notwithstanding subchapter II of 
chapter 5 of title 5, United States Code, not later than 270 
days after the date of enactment of this subsection, the 
Secretary shall promulgate regulations to carry out this 
section.''.
    (b) Disapproval of Transfer of Funds.--Congress disapproves 
the transfer of funds from the Cooperative State Research, 
Education, and Extension Service to the Food Safety and 
Inspection Service described in the notice of use of funds for 
implementation of the veterinary medicine loan repayment 
program authorized by the National Veterinary Medical Service 
Act (72 Fed. Reg. 48609 (August 24, 2007)), and such funds 
shall be rescinded on the date of enactment of this Act and 
made available to the Secretary, without further appropriation 
or fiscal year limitation, for use only in accordance with 
section 1415A of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3151a) (as amended by 
subsection (a)).

SEC. 7106. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR 
                    GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
                    SCIENCES EDUCATION.

    Section 1417 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is 
amended--
            (1) in the matter preceding paragraph (1) of 
        subsection (b), by inserting ``(including the 
        University of the District of Columbia)'' after ``land-
        grant colleges and universities''; and
            (2) in subsection (d)(2), by inserting ``(including 
        the University of the District of Columbia)'' after 
        ``universities''.

SEC. 7107. GRANTS TO 1890 SCHOOLS TO EXPAND EXTENSION CAPACITY.

    Section 1417(b)(4) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3152(b)(4)) is amended by striking ``teaching and research'' 
and inserting ``teaching, research, and extension''.

SEC. 7108. EXPANSION OF FOOD AND AGRICULTURAL SCIENCES AWARDS.

    Section 1417(i) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(i)) 
is amended--
            (1) in the subsection heading, by striking 
        ``Teaching Awards'' and inserting ``Teaching, 
        Extension, and Research Awards''; and
            (2) by striking paragraph (1) and inserting the 
        following:
            ``(1) Establishment.--
                    ``(A) In general.--The Secretary shall 
                establish a National Food and Agricultural 
                Sciences Teaching, Extension, and Research 
                Awards program to recognize and promote 
                excellence in teaching, extension, and research 
                in the food and agricultural sciences at a 
                college or university.
                    ``(B) Minimum requirement.--The Secretary 
                shall make at least 1 cash award in each fiscal 
                year to a nominee selected by the Secretary for 
                excellence in each of the areas of teaching, 
                extension, and research of food and 
                agricultural science at a college or 
                university.''.

SEC. 7109. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
                    EDUCATION.

    (a) Education Teaching Programs.--Section 1417(j) of the 
National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3152(j)) is amended--
            (1) in the subsection heading, by striking 
        ``Secondary Education and 2-Year Postsecondary 
        Education Teaching Programs'' and inserting ``Secondary 
        Education, 2-Year Postsecondary Education, and 
        Agriculture in the K-12 Classroom''; and
            (2) in paragraph (3)--
                    (A) by striking ``secondary schools, and 
                institutions of higher education that award an 
                associate's degree'' and inserting ``secondary 
                schools, institutions of higher education that 
                award an associate's degree, other institutions 
                of higher education, and nonprofit 
                organizations'';
                    (B) in subparagraph (E), by striking 
                ``and'' at the end;
                    (C) in subparagraph (F), by striking the 
                period at the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(G) to support current agriculture in the 
                classroom programs for grades K-12.''.
    (b) Report.--Section 1417 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3152) is amended--
            (1) by redesignating subsection (l) as subsection 
        (m); and
            (2) by inserting after subsection (k) the 
        following:
    ``(l) Report.--The Secretary shall submit to the Committee 
on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
a biennial report detailing the distribution of funds used to 
implement the teaching programs under subsection (j).''.
    (c) Authorization of Appropriations.--Section 1417(m) of 
the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (as redesignated by subsection (b)(1)) is 
amended by striking ``2007'' and inserting ``2012''.
    (d) Effective Date.--The amendments made by subsection (a) 
take effect on October 1, 2008.

SEC. 7110. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS 
                    AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL 
                    COMMODITIES AND FOREST PRODUCTS.

    (a) In General.--Section 1419 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3154) is repealed.
    (b) Conforming Amendment.--Section 1463(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3311(a)) is amended by striking ``1419,''.

SEC. 7111. POLICY RESEARCH CENTERS.

    Section 1419A of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is 
amended--
            (1) in subsection (a)(1), by inserting ``(including 
        commodities, livestock, dairy, and specialty crops)'' 
        after ``agricultural sectors'';
            (2) in subsection (b), by inserting ``(including 
        the Food Agricultural Policy Research Institute, the 
        Agricultural and Food Policy Center, the Rural Policy 
        Research Institute, and the National Drought Mitigation 
        Center)'' after ``research institutions and 
        organizations''; and
            (3) in subsection (d), by striking ``2007'' and 
        inserting ``2012''.

SEC. 7112. EDUCATION GRANTS TO ALASKA NATIVE-SERVING INSTITUTIONS AND 
                    NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    Section 759 of the Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies Appropriations Act, 
2000 (7 U.S.C. 3242)--
            (1) is amended--
                    (A) in subsection (a)(3), by striking 
                ``2006'' and inserting ``2012''; and
                    (B) in subsection (b)--
                            (i) in paragraph (2)(A), by 
                        inserting before the semicolon at the 
                        end the following: ``, including 
                        permitting consortia to designate 
                        fiscal agents for the members of the 
                        consortia and to allocate among the 
                        members funds made available under this 
                        section''; and
                            (ii) in paragraph (3), by striking 
                        ``2006'' and inserting ``2012'';
            (2) is redesignated as section 1419B of the 
        National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977; and
            (3) is moved so as to appear after section 1419A of 
        that Act (7 U.S.C. 3155).

SEC. 7113. EMPHASIS OF HUMAN NUTRITION INITIATIVE.

    Section 1424(b) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(b)) 
is amended--
            (1) in paragraph (1), by striking ``and,'';
            (2) in paragraph (2), by striking the comma at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) proposals that examine the efficacy of 
        current agriculture policies in promoting the health 
        and welfare of economically disadvantaged 
        populations;''.

SEC. 7114. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
                    PROGRAM.

    Section 1424(d) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7115. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL 
                    RESEARCH.

    Section 1424A(d) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7116. NUTRITION EDUCATION PROGRAM.

    (a) In General.--Section 1425 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3175) is amended--
            (1) by redesignating subsections (a) through (c) as 
        subsections (b) through (d), respectively;
            (2) by striking the section heading and designation 
        and inserting the following:

``SEC. 1425. NUTRITION EDUCATION PROGRAM.

    ``(a) Definition of 1862 Institution and 1890 
Institution.--In this section, the terms `1862 Institution' and 
`1890 Institution' have the meaning given those terms in 
section 2 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7601).'';
            (3) in subsection (b) (as redesignated by paragraph 
        (1)), by striking ``(b) The Secretary'' and inserting 
        the following:
    ``(b) Establishment.--The Secretary'';
            (4) in subsection (c) (as so redesignated), by 
        striking ``(c) In order to enable'' and inserting the 
        following:
    ``(c) Employment and Training.--To enable'';
            (5) in subsection (d) (as redesignated by paragraph 
        (1))--
                    (A) by striking ``(d) Beginning'' and 
                inserting the following:
    ``(d) Allocation of Funding.--Beginning'';
                    (B) in paragraph (2), by striking 
                subparagraph (B) and inserting the following:
                    ``(B) Notwithstanding section 3(d) of the 
                Act of May 8, 1914 (7 U.S.C. 343(d)), the 
                remainder shall be allocated among the States 
                as follows:
                            ``(i) $100,000 shall be distributed 
                        to each 1862 Institution and 1890 
                        Institution.
                            ``(ii) Subject to clause (iii), the 
                        remainder shall be allocated to each 
                        State in an amount that bears the same 
                        ratio to the total amount to be 
                        allocated under this clause as--
                                    ``(I) the population living 
                                at or below 125 percent of the 
                                income poverty guidelines (as 
                                prescribed by the Office of 
                                Management and Budget and as 
                                adjusted pursuant to section 
                                673(2) of the Community 
                                Services Block Grant Act (42 
                                U.S.C. 9902(2))) in the State; 
                                bears to
                                    ``(II) the total population 
                                living at or below 125 percent 
                                of those income poverty 
                                guidelines in all States;
                        as determined by the most recent 
                        decennial census at the time at which 
                        each such additional amount is first 
                        appropriated.
                            ``(iii)(I) Before any allocation of 
                        funds under clause (ii), for any fiscal 
                        year for which the amount of funds 
                        appropriated for the conduct of the 
                        expanded food and nutrition education 
                        program exceeds the amount of funds 
                        appropriated for the program for fiscal 
                        year 2007, the following percentage of 
                        such excess funds for the fiscal year 
                        shall be allocated to the 1890 
                        Institutions in accordance with 
                        subclause (II):
                                    ``(aa) 10 percent for 
                                fiscal year 2009.
                                    ``(bb) 11 percent for 
                                fiscal year 2010.
                                    ``(cc) 12 percent for 
                                fiscal year 2011.
                                    ``(dd) 13 percent for 
                                fiscal year 2012.
                                    ``(ee) 14 percent for 
                                fiscal year 2013.
                                    ``(ff) 15 percent for 
                                fiscal year 2014 and for each 
                                fiscal year thereafter.
                            ``(II) Funds made available under 
                        subclause (I) shall be allocated to 
                        each 1890 Institution in an amount that 
                        bears the same ratio to the total 
                        amount to be allocated under this 
                        clause as--
                                    ``(aa) the population 
                                living at or below 125 percent 
                                of the income poverty 
                                guidelines (as prescribed by 
                                the Office of Management and 
                                Budget and as adjusted pursuant 
                                to section 673(2) of the 
                                Community Services Block Grant 
                                Act (42 U.S.C. 9902(2))) in the 
                                State in which the 1890 
                                Institution is located; bears 
                                to
                                    ``(bb) the total population 
                                living at or below 125 percent 
                                of those income poverty 
                                guidelines in all States in 
                                which 1890 Institutions are 
                                located;
                        as determined by the most recent 
                        decennial census at the time at which 
                        each such additional amount is first 
                        appropriated.
                            ``(iv) Nothing in this subparagraph 
                        precludes the Secretary from developing 
                        educational materials and programs for 
                        persons in income ranges above the 
                        level designated in this 
                        subparagraph.''; and
                    (C) by striking paragraph (3); and
            (6) by adding at the end the following:
    ``(e) Complementary Administration.--The Secretary shall 
ensure the complementary administration of the expanded food 
and nutrition education program by 1862 Institutions and 1890 
Institutions in a State.
    ``(f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out the expanded food and nutrition 
education program established under section 3(d) of the Act of 
May 8, 1914 (7 U.S.C. 343(d)), and this section $90,000,000 for 
each of fiscal years 2009 through 2012.''.
    (b) Conforming Amendment.--Section 1588(b) of the Food 
Security Act of 1985 (7 U.S.C. 3175e(b)) is amended by striking 
``section 1425(c)(2)'' and inserting ``section 1425(d)(2)''.
    (c) Effective Date.--The amendments made by this section 
take effect on October 1, 2008.

SEC. 7117. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

    Section 1433(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) 
is amended in the first sentence by striking ``2007'' and 
inserting ``2012''.

SEC. 7118. COOPERATION AMONG ELIGIBLE INSTITUTIONS.

    Section 1433 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195) is 
amended by adding at the end the following:
    ``(g) Cooperation Among Eligible Institutions.--The 
Secretary, to the maximum extent practicable, shall encourage 
eligible institutions to cooperate in setting research 
priorities under this section through the conduct of regular 
regional and national meetings.''.

SEC. 7119. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL 
                    PROBLEMS.

    Section 1434(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7120. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM.

    Section 1434(b) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(b)) 
is amended by inserting after ``universities'' the following: 
``(including 1890 Institutions (as defined in section 2 of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7601)))''.

SEC. 7121. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-GRANT 
                    COLLEGES.

    Section 1444(a)(2) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3221(a)(2)) is amended by striking ``15 percent'' and inserting 
``20 percent''.

SEC. 7122. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT 1890 LAND-
                    GRANT COLLEGES.

    Section 1445(a)(2) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3222(a)(2)) is amended by striking ``25 percent'' and inserting 
``30 percent''.

SEC. 7123. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES 
                    AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
                    UNIVERSITY.

    Section 1447(b) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7124. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES 
                    AT THE DISTRICT OF COLUMBIA LAND-GRANT UNIVERSITY.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 is amended by inserting after section 1447 
(7 U.S.C. 3222b) the following:

``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
                    FACILITIES AT THE DISTRICT OF COLUMBIA LAND-GRANT 
                    UNIVERSITY.

    ``(a) Purpose.--It is the intent of Congress to assist the 
land-grant university in the District of Columbia established 
under section 208 of the District of Columbia Public 
Postsecondary Education Reorganization Act (Public Law 93-471; 
88 Stat. 1428) in efforts to acquire, alter, or repair 
facilities or relevant equipment necessary for conducting 
agricultural research.
    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$750,000 for each of fiscal years 2008 through 2012.''.

SEC. 7125. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES 
                    AND EQUIPMENT AT INSULAR AREA LAND-GRANT 
                    INSTITUTIONS.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by 
inserting after section 1447A (as added by section 7124) the 
following:

``SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
                    FACILITIES AND EQUIPMENT AT INSULAR AREA LAND-GRANT 
                    INSTITUTIONS.

    ``(a) Purpose.--It is the intent of Congress to assist the 
land-grant institutions in the insular areas in efforts to 
acquire, alter, or repair facilities or relevant equipment 
necessary for conducting agricultural research.
    ``(b) Method of Awarding Grants.--Grants awarded pursuant 
to this section shall be made in such amounts and under such 
terms and conditions as the Secretary determines necessary to 
carry out the purposes of this section.
    ``(c) Regulations.--The Secretary may promulgate such rules 
and regulations as the Secretary considers to be necessary to 
carry out this section.
    ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $8,000,000 for 
each of fiscal years 2008 through 2012.''.

SEC. 7126. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

    Section 1448 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is 
amended by striking ``2007'' each place it appears in 
subsections (a)(1) and (f) and inserting ``2012''.

SEC. 7127. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
                    ACTIVITIES OF 1890 INSTITUTIONS.

    Section 1449(c) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222d(c)) 
is amended--
            (1) in the first sentence--
                    (A) by striking ``for each of fiscal years 
                2003 through 2007,''; and
                    (B) by inserting ``equal'' before 
                ``matching''; and
            (2) by striking the second sentence and all that 
        follows through paragraph (5).

SEC. 7128. HISPANIC-SERVING INSTITUTIONS.

    Section 1455 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241) is 
amended--
            (1) in subsection (a) by striking ``(or grants 
        without regard to any requirement for competition)'';
            (2) in subsection (b)(1), by striking ``of 
        consortia''; and
            (3) in subsection (c)--
                    (A) by striking ``$20,000,000'' and 
                inserting ``$40,000,000''; and
                    (B) by striking ``2007'' and inserting 
                ``2012''.

SEC. 7129. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.

    (a) In General.--The National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 is amended by 
inserting after section 1455 (7 U.S.C. 3241) the following:

``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.

    ``(a) Definition of Endowment Fund.--In this section, the 
term `endowment fund' means the Hispanic-Serving Agricultural 
Colleges and Universities Fund established under subsection 
(b).
    ``(b) Endowment.--
            ``(1) In general.--The Secretary of the Treasury 
        shall establish in accordance with this subsection a 
        Hispanic-Serving Agricultural Colleges and Universities 
        Fund.
            ``(2) Agreements.--The Secretary of the Treasury 
        may enter into such agreements as are necessary to 
        carry out this subsection.
            ``(3) Deposit to the endowment fund.--The Secretary 
        of the Treasury shall deposit in the endowment fund 
        any--
                    ``(A) amounts made available through Acts 
                of appropriations, which shall be the endowment 
                fund corpus; and
                    ``(B) interest earned on the endowment fund 
                corpus.
            ``(4) Investments.--The Secretary of the Treasury 
        shall invest the endowment fund corpus and income in 
        interest-bearing obligations of the United States.
            ``(5) Withdrawals and expenditures.--
                    ``(A) Corpus.--The Secretary of the 
                Treasury may not make a withdrawal or 
                expenditure from the endowment fund corpus.
                    ``(B) Withdrawals.--On September 30, 2008, 
                and each September 30 thereafter, the Secretary 
                of the Treasury shall withdraw the amount of 
                the income from the endowment fund for the 
                fiscal year and warrant the funds to the 
                Secretary of Agriculture who, after making 
                adjustments for the cost of administering the 
                endowment fund, shall distribute the adjusted 
                income as follows:
                            ``(i) 60 percent shall be 
                        distributed among the Hispanic-serving 
                        agricultural colleges and universities 
                        on a pro rata basis based on the 
                        Hispanic enrollment count of each 
                        institution.
                            ``(ii) 40 percent shall be 
                        distributed in equal shares to the 
                        Hispanic-serving agricultural colleges 
                        and universities.
            ``(6) Endowments.--Amounts made available under 
        this subsection shall be held and considered to be 
        granted to Hispanic-serving agricultural colleges and 
        universities to establish an endowment in accordance 
        with this subsection.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary such 
        sums as are necessary to carry out this subsection for 
        fiscal year 2008 and each fiscal year thereafter.
    ``(c) Authorization for Annual Payments.--
            ``(1) In general.--For fiscal year 2008 and each 
        fiscal year thereafter, there are authorized to be 
        appropriated to the Department of Agriculture to carry 
        out this subsection an amount equal to the product 
        obtained by multiplying--
                    ``(A) $80,000; by
                    ``(B) the number of Hispanic-serving 
                agricultural colleges and universities.
            ``(2) Payments.--For fiscal year 2008 and each 
        fiscal year thereafter, the Secretary of the Treasury 
        shall pay to the treasurer of each Hispanic-serving 
        agricultural college and university an amount equal 
        to--
                    ``(A) the total amount made available by 
                appropriations under paragraph (1); divided by
                    ``(B) the number of Hispanic-serving 
                agricultural colleges and universities.
            ``(3) Use of funds.--
                    ``(A) In general.--Amounts authorized to be 
                appropriated under this subsection shall be 
                used in the same manner as is prescribed for 
                colleges under the Act of August 30, 1890 
                (commonly known as the `Second Morrill Act') (7 
                U.S.C. 321 et seq.).
                    ``(B) Relationship to other law.--Except as 
                otherwise provided in this subsection, the 
                requirements of that Act shall apply to 
                Hispanic-serving agricultural colleges and 
                universities under this section.
    ``(d) Institutional Capacity-Building Grants.--
            ``(1) In general.--For fiscal year 2008 and each 
        fiscal year thereafter, the Secretary shall make grants 
        to assist Hispanic-serving agricultural colleges and 
        universities in institutional capacity building (not 
        including alteration, repair, renovation, or 
        construction of buildings).
            ``(2) Criteria for institutional capacity-building 
        grants.--
                    ``(A) Requirements for grants.--The 
                Secretary shall make grants under this 
                subsection on the basis of a competitive 
                application process under which Hispanic-
                serving agricultural colleges and universities 
                may submit applications to the Secretary at 
                such time, in such manner, and containing such 
                information as the Secretary may require.
                    ``(B) Demonstration of need.--
                            ``(i) In general.--As part of an 
                        application for a grant under this 
                        subsection, the Secretary shall require 
                        the applicant to demonstrate need for 
                        the grant, as determined by the 
                        Secretary.
                            ``(ii) Other sources of funding.--
                        The Secretary may award a grant under 
                        this subsection only to an applicant 
                        that demonstrates a failure to obtain 
                        funding for a project after making a 
                        reasonable effort to otherwise obtain 
                        the funding.
                    ``(C) Payment of non-federal share.--A 
                grant awarded under this subsection shall be 
                made only if the recipient of the grant pays a 
                non-Federal share in an amount that is 
                specified by the Secretary and based on 
                assessed institutional needs.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary such 
        sums as are necessary to carry out this subsection for 
        fiscal year 2008 and each fiscal year thereafter.
    ``(e) Competitive Grants Program.--
            ``(1) In general.--The Secretary shall establish a 
        competitive grants program to fund fundamental and 
        applied research at Hispanic-serving agricultural 
        colleges and universities in agriculture, human 
        nutrition, food science, bioenergy, and environmental 
        science.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary such 
        sums as are necessary to carry out this subsection for 
        fiscal year 2008 and each fiscal year thereafter.''.
    (b) Extension.--Section 3 of the Smith-Lever Act (7 U.S.C. 
343) is amended--
            (1) in subsection (b), by adding at the end the 
        following:
            ``(4) Annual appropriation for hispanic-serving 
        agricultural colleges and universities.--
                    ``(A) Authorization of appropriations.--
                There are authorized to be appropriated to the 
                Secretary for payments to Hispanic-serving 
                agricultural colleges and universities (as 
                defined in section 1404 of the National 
                Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3103)) such sums 
                as are necessary to carry out this paragraph 
                for fiscal year 2008 and each fiscal year 
                thereafter, to remain available until expended.
                    ``(B) Additional amount.--Amounts made 
                available under this paragraph shall be in 
                addition to any other amounts made available 
                under this section to States, the Commonwealth 
                of Puerto Rico, Guam, or the United States 
                Virgin Islands.
                    ``(C) Administration.--Amounts made 
                available under this paragraph shall be--
                            ``(i) distributed on the basis of a 
                        competitive application process to be 
                        developed and implemented by the 
                        Secretary;
                            ``(ii) paid by the Secretary to the 
                        State institutions established in 
                        accordance with the Act of July 2, 1862 
                        (commonly known as the `First Morrill 
                        Act') (7 U.S.C. 301 et seq.); and
                            ``(iii) administered by State 
                        institutions through cooperative 
                        agreements with the Hispanic-serving 
                        agricultural colleges and universities 
                        in the State in accordance with 
                        regulations promulgated by the 
                        Secretary.''; and
            (2) in subsection (f)--
                    (A) in the subsection heading, by inserting 
                ``and Hispanic-Serving Agricultural Colleges 
                and Universities'' after ``1994 Institutions''; 
                and
                    (B) by striking ``pursuant to subsection 
                (b)(3)'' and inserting ``or Hispanic-serving 
                agricultural colleges and universities in 
                accordance with paragraphs (3) and (4) of 
                subsection (b)''.
    (c) Conforming Amendments.--
            (1) Section 2 of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7601) is amended--
                    (A) by redesignating paragraph (6) as 
                paragraph (7); and
                    (B) by inserting after paragraph (5) the 
                following:
            ``(6) Hispanic-serving agricultural colleges and 
        universities.--The term `Hispanic-serving agricultural 
        colleges and universities' has the meaning given the 
        term in section 1404 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103).''.
            (2) Section 102(c) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7612(c)) is amended--
                    (A) in the subsection heading, by inserting 
                ``and Hispanic-Serving Agricultural Colleges 
                and Universities'' after ``Institutions''; and
                    (B) in paragraph (1), by striking ``and 
                1994 Institution'' and inserting ``1994 
                Institution, and Hispanic-serving agricultural 
                college and university''.
            (3) Section 103(e) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7613(e)) is amended by adding at the end the following:
            ``(3) Hispanic-serving agricultural colleges and 
        universities.--To be eligible to obtain agricultural 
        extension funds from the Secretary for an activity, 
        each Hispanic-serving agricultural college and 
        university shall--
                    ``(A) establish a process for merit review 
                of the activity; and
                    ``(B) review the activity in accordance 
                with such process.''.
            (4) Section 406(b) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7626(b)) is amended by striking ``and 1994 
        Institutions'' and inserting ``, 1994 Institutions, and 
        Hispanic-serving agricultural colleges and 
        universities''.

SEC. 7130. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 
                    EDUCATION.

    Section 1458(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) 
is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking 
                ``and'' after the semicolon;
                    (B) in subparagraph (B), by adding ``and'' 
                at the end; and
                    (C) by adding at the end the following:
                    ``(C) giving priority to those institutions 
                with existing memoranda of understanding, 
                agreements, or other formal ties to United 
                States institutions, or Federal or State 
                agencies;'';
            (2) by striking paragraph (3) and inserting the 
        following:
            ``(3) enter into agreements with land-grant 
        colleges and universities, Hispanic-serving 
        agricultural colleges and universities, the Agency for 
        International Development, and international 
        organizations (such as the United Nations, the World 
        Bank, regional development banks, international 
        agricultural research centers), or other organizations, 
        institutions, or individuals with comparable goals, to 
        promote and support--
                    ``(A) the development of a viable and 
                sustainable global agricultural system;
                    ``(B) antihunger and improved international 
                nutrition efforts; and
                    ``(C) increased quantity, quality, and 
                availability of food;'';
            (3) in paragraph (7)(A), by striking ``and land-
        grant colleges and universities'' and inserting ``, 
        land-grant colleges and universities, and Hispanic-
        serving agricultural colleges and universities'';
            (4) in paragraph (9)--
                    (A) in subparagraph (A), by striking ``or 
                other colleges and universities'' and inserting 
                ``, Hispanic-serving agricultural colleges and 
                universities, or other colleges and 
                universities''; and
                    (B) in subparagraph (D), by striking 
                ``and'' at the end;
            (5) in paragraph (10), by striking the period at 
        the end and inserting ``; and''; and
            (6) by adding at the end the following:
            ``(11) establish a program for the purpose of 
        providing fellowships to United States or foreign 
        students to study at foreign agricultural colleges and 
        universities working under agreements provided for 
        under paragraph (3).''.

SEC. 7131. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE 
                    AND EDUCATION PROGRAMS.

    Section 1459A(c) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7132. ADMINISTRATION.

    (a) Limitation on Indirect Costs for Agricultural Research, 
Education, and Extension Programs.--Section 1462(a) of the 
National Agriculture Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3310(a)) is amended--
            (1) by striking ``a competitive'' and inserting 
        ``any''; and
            (2) by striking ``19 percent'' and inserting ``22 
        percent''.
    (b) Auditing, Reporting, Bookkeeping, and Administrative 
Requirements.--Section 1469(a)(3) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3315(a)(3)) is amended by striking ``appropriated'' and 
inserting ``made available''.

SEC. 7133. RESEARCH EQUIPMENT GRANTS.

    Section 1462A(e) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310a(e)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7134. UNIVERSITY RESEARCH.

    Section 1463 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
amended by striking ``2007'' each place it appears in 
subsections (a) and (b) and inserting ``2012''.

SEC. 7135. EXTENSION SERVICE.

    Section 1464 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 7136. SUPPLEMENTAL AND ALTERNATIVE CROPS.

    Section 1473D(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7137. NEW ERA RURAL TECHNOLOGY PROGRAM.

    Subtitle K of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
seq.) is amended by adding at the end the following:

``SEC. 1473E. NEW ERA RURAL TECHNOLOGY PROGRAM.

    ``(a) Definition of Community College.--In this section, 
the term `community college' means an institution of higher 
education (as defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001))--
            ``(1) that admits as regular students individuals 
        who--
                    ``(A) are beyond the age of compulsory 
                school attendance in the State in which the 
                institution is located; and
                    ``(B) have the ability to benefit from the 
                training offered by the institution;
            ``(2) that does not provide an educational program 
        for which the institution awards a bachelor's degree or 
        an equivalent degree; and
            ``(3) that--
                    ``(A) provides an educational program of 
                not less than 2 years that is acceptable for 
                full credit toward such a degree; or
                    ``(B) offers a 2-year program in 
                engineering, technology, mathematics, or the 
                physical, chemical, or biological sciences, 
                designed to prepare a student to work as a 
                technician or at the semiprofessional level in 
                engineering, scientific, or other technological 
                fields requiring the understanding and 
                application of basic engineering, scientific, 
                or mathematical principles of knowledge.
    ``(b) Functions.--
            ``(1) Establishment.--
                    ``(A) In general.--The Secretary shall 
                establish a program to be known as the `New Era 
                Rural Technology Program', to make grants 
                available for technology development, applied 
                research, and training to aid in the 
                development of an agriculture-based renewable 
                energy workforce.
                    ``(B) Support.--The initiative under this 
                section shall support the fields of--
                            ``(i) bioenergy;
                            ``(ii) pulp and paper 
                        manufacturing; and
                            ``(iii) agriculture-based renewable 
                        energy resources.
            ``(2) Requirements for funding.--To receive funding 
        under this section, an entity shall--
                    ``(A) be a community college or advanced 
                technological center, located in a rural area 
                and in existence on the date of the enactment 
                of this section, that participates in 
                agricultural or bioenergy research and applied 
                research;
                    ``(B) have a proven record of development 
                and implementation of programs to meet the 
                needs of students, educators, and business and 
                industry to supply the agriculture-based, 
                renewable energy or pulp and paper 
                manufacturing fields with certified 
                technicians, as determined by the Secretary; 
                and
                    ``(C) have the ability to leverage existing 
                partnerships and occupational outreach and 
                training programs for secondary schools, 4-year 
                institutions, and relevant nonprofit 
                organizations.
    ``(c) Grant Priority.--In providing grants under this 
section, the Secretary shall give preference to eligible 
entities working in partnership--
            ``(1) to improve information-sharing capacity; and
            ``(2) to maximize the ability to meet the 
        requirements of this section.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as are necessary for each of fiscal years 2008 through 
2012.''.

SEC. 7138. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

    Subtitle K of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
seq.) (as amended by section 7137) is amended by adding at the 
end the following:

``SEC. 1473F. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

    ``(a) Grant Program.--
            ``(1) In general.--The Secretary shall make 
        competitive grants to NLGCA Institutions to assist the 
        NLGCA Institutions in maintaining and expanding the 
        capacity of the NLGCA Institutions to conduct 
        education, research, and outreach activities relating 
        to--
                    ``(A) agriculture;
                    ``(B) renewable resources; and
                    ``(C) other similar disciplines.
            ``(2) Use of funds.--An NLGCA Institution that 
        receives a grant under paragraph (1) may use the funds 
        made available through the grant to maintain and expand 
        the capacity of the NLGCA Institution--
                    ``(A) to successfully compete for funds 
                from Federal grants and other sources to carry 
                out educational, research, and outreach 
                activities that address priority concerns of 
                national, regional, State, and local interest;
                    ``(B) to disseminate information relating 
                to priority concerns to--
                            ``(i) interested members of the 
                        agriculture, renewable resources, and 
                        other relevant communities;
                            ``(ii) the public; and
                            ``(iii) any other interested 
                        entity;
                    ``(C) to encourage members of the 
                agriculture, renewable resources, and other 
                relevant communities to participate in priority 
                education, research, and outreach activities by 
                providing matching funding to leverage grant 
                funds; and
                    ``(D) through--
                            ``(i) the purchase or other 
                        acquisition of equipment and other 
                        infrastructure (not including 
                        alteration, repair, renovation, or 
                        construction of buildings);
                            ``(ii) the professional growth and 
                        development of the faculty of the NLGCA 
                        Institution; and
                            ``(iii) the development of graduate 
                        assistantships.
    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as are necessary for each of fiscal years 2008 through 
2012.''.

SEC. 7139. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY 
                    FELLOWSHIP PROGRAM.

    Subtitle K of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et 
seq.) (as amended by section 7138) is amended by adding at the 
end the following:

``SEC. 1473G. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY 
                    FELLOWSHIP PROGRAM.

    ``(a) Fellowship Program.--
            ``(1) In general.--The Secretary shall establish a 
        fellowship program, to be known as the `Borlaug 
        International Agricultural Science and Technology 
        Fellowship Program,' to provide fellowships for 
        scientific training and study in the United States to 
        individuals from eligible countries (as described in 
        subsection (b)) who specialize in agricultural 
        education, research, and extension.
            ``(2) Programs.--The Secretary shall carry out the 
        fellowship program by implementing 3 programs designed 
        to assist individual fellowship recipients, including--
                    ``(A) a graduate studies program in 
                agriculture to assist individuals who 
                participate in graduate agricultural degree 
                training at a United States institution;
                    ``(B) an individual career improvement 
                program to assist agricultural scientists from 
                developing countries in upgrading skills and 
                understanding in agricultural science and 
                technology; and
                    ``(C) a Borlaug agricultural policy 
                executive leadership course to assist senior 
                agricultural policy makers from eligible 
                countries, with an initial focus on individuals 
                from sub-Saharan Africa and the independent 
                states of the former Soviet Union.
    ``(b) Eligible Countries.--An eligible country is a 
developing country, as determined by the Secretary using a 
gross national income per capita test selected by the 
Secretary.
    ``(c) Purpose of Fellowships.--A fellowship provided under 
this section shall--
            ``(1) promote food security and economic growth in 
        eligible countries by--
                    ``(A) educating a new generation of 
                agricultural scientists;
                    ``(B) increasing scientific knowledge and 
                collaborative research to improve agricultural 
                productivity; and
                    ``(C) extending that knowledge to users and 
                intermediaries in the marketplace; and
            ``(2) shall support--
                    ``(A) training and collaborative research 
                opportunities through exchanges for entry level 
                international agricultural research scientists, 
                faculty, and policymakers from eligible 
                countries;
                    ``(B) collaborative research to improve 
                agricultural productivity;
                    ``(C) the transfer of new science and 
                agricultural technologies to strengthen 
                agricultural practice; and
                    ``(D) the reduction of barriers to 
                technology adoption.
    ``(d) Fellowship Recipients.--
            ``(1) Eligible candidates.--The Secretary may 
        provide fellowships under this section to individuals 
        from eligible countries who specialize or have 
        experience in agricultural education, research, 
        extension, or related fields, including--
                    ``(A) individuals from the public and 
                private sectors; and
                    ``(B) private agricultural producers.
            ``(2) Candidate identification.--The Secretary 
        shall use the expertise of United States land-grant 
        colleges and universities and similar universities, 
        international organizations working in agricultural 
        research and outreach, and national agricultural 
        research organizations to help identify program 
        candidates for fellowships under this section from the 
        public and private sectors of eligible countries.
    ``(e) Use of Fellowships.--A fellowship provided under this 
section shall be used--
            ``(1) to promote collaborative programs among 
        agricultural professionals of eligible countries, 
        agricultural professionals of the United States, the 
        international agricultural research system, and, as 
        appropriate, United States entities conducting 
        research; and
            ``(2) to support fellowship recipients through 
        programs described in subsection (a)(2).
    ``(f) Program Implementation.--The Secretary shall provide 
for the management, coordination, evaluation, and monitoring of 
the Borlaug International Agricultural Science and Technology 
Fellowship Program and for the individual programs described in 
subsection (a)(2), except that the Secretary may contract out 
to 1 or more collaborating universities the management of 1 or 
more of the fellowship programs.
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section, to remain available until expended.''.

SEC. 7140. AQUACULTURE ASSISTANCE PROGRAMS.

    Section 1477 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 7141. RANGELAND RESEARCH GRANTS.

    Section 1483(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7142. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.

    Section 1484(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7143. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM 
                    FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.

    (a) Distance Education Grants for Insular Areas.--Section 
1490(f) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by 
striking ``2007'' and inserting ``2012''.
    (b) Resident Instruction Grants for Insular Areas.--Section 
1491 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3363) is amended--
            (1) by redesignating subsection (e) as subsection 
        (c); and
            (2) in subsection (c) (as so redesignated), by 
        striking ``2007'' and inserting ``2012''.

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

SEC. 7201. NATIONAL GENETICS RESOURCES PROGRAM.

    Section 1635(b) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7202. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

    Section 1641(c) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking 
``1991 through 1997'' and inserting ``2008 through 2012''.

SEC. 7203. PARTNERSHIPS.

    Section 1672(d) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925(d)) is amended by striking 
``may'' and inserting ``shall''.

SEC. 7204. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.

    (a) In General.--Section 1672 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is 
amended--
            (1) in subsection (e)--
                    (A) in paragraph (3), by striking ``and 
                controlling aflatoxin in the food and feed 
                chains.'' and inserting ``, improving, and 
                eventually commercializing, alfatoxin controls 
                in corn and other affected agricultural 
                products and crops.'';
                    (B) by striking paragraphs (1), (4), (7), 
                (8), (15), (17), (21), (23), (26), (27), (32), 
                (34), (41), (42), (43), and (45);
                    (C) by redesignating paragraphs (2), (3), 
                (5), (6), (9) through (14), (16), (18) through 
                (20), (22), (24), (25), (28) through (31), 
                (33), (35) through (40), and (44) as paragraphs 
                (1) through (29), respectively; and
                    (D) by adding at the end the following:
            ``(30) Air emissions from livestock operations.--
        Research and extension grants may be made under this 
        section for the purpose of conducting field 
        verification tests and developing mitigation options 
        for air emissions from animal feeding operations.
            ``(31) Swine genome project.--Research grants may 
        be made under this section to conduct swine genome 
        research, including the mapping of the swine genome.
            ``(32) Cattle fever tick program.--Research and 
        extension grants may be made under this section to 
        study cattle fever ticks to facilitate understanding of 
        the role of wildlife in the persistence and spread of 
        cattle fever ticks, to develop advanced methods for 
        eradication of cattle fever ticks, and to improve 
        management of diseases relating to cattle fever ticks 
        that are associated with wildlife, livestock, and human 
        health.
            ``(33) Synthetic gypsum.--Research and extension 
        grants may be made under this section to study the uses 
        of synthetic gypsum from electric power plants to 
        remediate soil and nutrient losses.
            ``(34) Cranberry research program.--Research and 
        extension grants may be made under this section to 
        study new technologies to assist cranberry growers in 
        complying with Federal and State environmental 
        regulations, increase production, develop new growing 
        techniques, establish more efficient growing 
        methodologies, and educate cranberry producers about 
        sustainable growth practices.
            ``(35) Sorghum research initiative.--Research and 
        extension grants may be made under this section to 
        study the use of sorghum as a bioenergy feedstock, 
        promote diversification in, and the environmental 
        benefits of sorghum production, and promote water 
        conservation through the use of sorghum.
            ``(36) Marine shrimp farming program.--Research and 
        extension grants may be made under this section to 
        establish a research program to advance and maintain a 
        domestic shrimp farming industry in the United States.
            ``(37) Turfgrass research initiative.--Research and 
        extension grants may be made under this section to 
        study the production of turfgrass (including the use of 
        water, fertilizer, pesticides, fossil fuels, and 
        machinery for turf establishment and maintenance) and 
        environmental protection and enhancement relating to 
        turfgrass production.
            ``(38) Agricultural worker safety research 
        initiative.--Research and extension grants may be made 
        under this section--
                    ``(A) to study and demonstrate methods to 
                minimize exposure of farm and ranch owners and 
                operators, pesticide handlers, and agricultural 
                workers to pesticides, including research 
                addressing the unique concerns of farm workers 
                resulting from long-term exposure to 
                pesticides; and
                    ``(B) to develop rapid tests for on-farm 
                use to better inform and educate farmers, 
                ranchers, and farm and ranch workers regarding 
                safe field re-entry intervals.
            ``(39) High plains aquifer region.--Research and 
        extension grants may be made under this section to 
        carry out interdisciplinary research relating to 
        diminishing water levels and increased demand for water 
        in the High Plains aquifer region.
            ``(40) Deer initiative.--Research and extension 
        grants may be made under this section to support 
        collaborative research focusing on the development of 
        viable strategies for the prevention, diagnosis, and 
        treatment of infectious, parasitic, and toxic diseases 
        of farmed deer and the mapping of the deer genome.
            ``(41) Pasture-based beef systems research 
        initiative.--Research and extension grants may be made 
        under this section to study the development of forage 
        sequences and combinations for cow-calf, heifer 
        development, stocker, and finishing systems, to deliver 
        optimal nutritive value for efficient production of 
        cattle for pasture finishing, to optimize forage 
        systems to improve marketability of pasture-finished 
        beef, and to assess the effect of forage quality on 
        reproductive fitness.
            ``(42) Agricultural practices relating to climate 
        change.--Research and extension grants may be made 
        under this section for field and laboratory studies 
        that examine the ecosystem from gross to minute scales 
        and for projects that explore the relationship of 
        agricultural practices to climate change.
            ``(43) Brucellosis control and eradication.--
        Research and extension grants may be made under this 
        section to conduct research relating to the development 
        of vaccines and vaccine delivery systems to effectively 
        control and eliminate brucellosis in wildlife, and to 
        assist with the controlling of the spread of 
        brucellosis from wildlife to domestic animals.
            ``(44) Bighorn and domestic sheep disease 
        mechanisms.--Research and extension grants may be made 
        under this section to conduct research relating to the 
        health status of (including the presence of infectious 
        diseases in) bighorn and domestic sheep under range 
        conditions.
            ``(45) Agricultural development in the american-
        pacific region.--Research and extension grants may be 
        made under this section to support food and 
        agricultural science at a consortium of land-grant 
        institutions in the American-Pacific region.
            ``(46) Tropical and subtropical agricultural 
        research.--Research grants may be made under this 
        section, in equal dollar amounts to the Caribbean and 
        Pacific Basins, to support tropical and subtropical 
        agricultural research, including pest and disease 
        research, at the land-grant institutions in the 
        Caribbean and Pacific regions.
            ``(47) Viral hemorrhagic septicemia.--Research and 
        extension grants may be made under this section to 
        study--
                    ``(A) the effects of viral hemorrhagic 
                septicemia (referred to in this paragraph as 
                `VHS') on freshwater fish throughout the 
                natural and expanding range of VHS; and
                    ``(B) methods for transmission and human-
                mediated transport of VHS among waterbodies.
            ``(48) Farm and ranch safety.--Research and 
        extension grants may be made under this section to 
        carry out projects to decrease the incidence of injury 
        and death on farms and ranches, including--
                    ``(A) on-site farm or ranch safety reviews;
                    ``(B) outreach and dissemination of farm 
                safety research and interventions to 
                agricultural employers, employees, youth, farm 
                and ranch families, seasonal workers, or other 
                individuals; and
                    ``(C) agricultural safety education and 
                training.
            ``(49) Women and minorities in stem fields.--
        Research and extension grants may be made under this 
        section to increase participation by women and 
        underrepresented minorities from rural areas in the 
        fields of science, technology, engineering, and 
        mathematics, with priority given to eligible 
        institutions that carry out continuing programs funded 
        by the Secretary.
            ``(50) Alfalfa and forage research program.--
        Research and extension grants may be made under this 
        section for the purpose of studying improvements in 
        alfalfa and forage yields, biomass and persistence, 
        pest pressures, the bioenergy potential of alfalfa and 
        other forages, and systems to reduce losses during 
        harvest and storage.
            ``(51) Food systems veterinary medicine.--Research 
        grants may be made under this section to address health 
        issues that affect food-producing animals, food safety, 
        and the environment, and to improve information 
        resources, curriculum, and clinical education of 
        students with respect to food animal veterinary 
        medicine and food safety.
            ``(52) Biochar research.--Grants may be made under 
        this section for research, extension, and integrated 
        activities relating to the study of biochar production 
        and use, including considerations of agronomic and 
        economic impacts, synergies of coproduction with 
        bioenergy, and the value of soil enhancements and soil 
        carbon sequestration.'';
            (2) by redesignating subsection (h) as subsection 
        (j);
            (3) by inserting after subsection (g) the 
        following:
    ``(h) Pollinator Protection.--
            ``(1) Research and extension.--
                    ``(A) Grants.--Research and extension 
                grants may be made under this section--
                            ``(i) to survey and collect data on 
                        bee colony production and health;
                            ``(ii) to investigate pollinator 
                        biology, immunology, ecology, genomics, 
                        and bioinformatics;
                            ``(iii) to conduct research on 
                        various factors that may be 
                        contributing to or associated with 
                        colony collapse disorder, and other 
                        serious threats to the health of honey 
                        bees and other pollinators, including--
                                    ``(I) parasites and 
                                pathogens of pollinators; and
                                    ``(II) the sublethal 
                                effects of insecticides, 
                                herbicides, and fungicides on 
                                honey bees and native and 
                                managed pollinators;
                            ``(iv) to develop mitigative and 
                        preventative measures to improve native 
                        and managed pollinator health; and
                            ``(v) to promote the health of 
                        honey bees and native pollinators 
                        through habitat conservation and best 
                        management practices.
                    ``(B) Authorization of appropriations.--
                There is authorized to be appropriated to carry 
                out this paragraph $10,000,000 for each of 
                fiscal years 2008 through 2012.
            ``(2) Department of agriculture capacity and 
        infrastructure.--
                    ``(A) In general.--The Secretary shall, to 
                the maximum extent practicable, increase the 
                capacity and infrastructure of the Department--
                            ``(i) to address colony collapse 
                        disorder and other long-term threats to 
                        pollinator health, including the hiring 
                        of additional personnel; and
                            ``(ii) to conduct research on 
                        colony collapse disorder and other 
                        pollinator issues at the facilities of 
                        the Department.
                    ``(B) Authorization of appropriations.--
                There is authorized to be appropriated to carry 
                out this paragraph $7,250,000 for each of 
                fiscal years 2008 through 2012.
            ``(3) Honey bee pest and pathogen surveillance.--
        There is authorized to be appropriated to conduct a 
        nationwide honey bee pest and pathogen surveillance 
        program $2,750,000 for each of fiscal years 2008 
        through 2012.
            ``(4) Annual report on response to honey bee colony 
        collapse disorder.--The Secretary shall submit to the 
        Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate an annual report 
        describing the progress made by the Department of 
        Agriculture in--
                    ``(A) investigating the cause or causes of 
                honey bee colony collapse; and
                    ``(B) finding appropriate strategies to 
                reduce colony loss.
    ``(i) Regional Centers of Excellence.--
            ``(1) Establishment.--The Secretary shall 
        prioritize regional centers of excellence established 
        for specific agricultural commodities for the receipt 
        of funding under this section.
            ``(2) Composition.--A regional center of excellence 
        shall be composed of 1 or more colleges and 
        universities (including land-grant institutions, 
        schools of forestry, schools of veterinary medicine, or 
        NLGCA Institutions (as defined in section 1404 of the 
        National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977 (7 U.S.C. 3103))) that provide 
        financial support to the regional center of excellence.
            ``(3) Criteria for regional centers of 
        excellence.--The criteria for consideration to be a 
        regional center of excellence shall include efforts--
                    ``(A) to ensure coordination and cost-
                effectiveness by reducing unnecessarily 
                duplicative efforts regarding research, 
                teaching, and extension;
                    ``(B) to leverage available resources by 
                using public/private partnerships among 
                agricultural industry groups, institutions of 
                higher education, and the Federal Government;
                    ``(C) to implement teaching initiatives to 
                increase awareness and effectively disseminate 
                solutions to target audiences through extension 
                activities;
                    ``(D) to increase the economic returns to 
                rural communities by identifying, attracting, 
                and directing funds to high-priority 
                agricultural issues; and
                    ``(E) to improve teaching capacity and 
                infrastructure at colleges and universities 
                (including land-grant institutions, schools of 
                forestry, and schools of veterinary 
                medicine).''; and
            (4) in subsection (j) (as redesignated by paragraph 
        (2)), by striking ``2007'' and inserting ``2012''.
    (b) Conforming Amendments.--Section 1672 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5925) is amended--
            (1) in the first sentence of subsection (a), by 
        striking ``(e), (f), and (g)'' and inserting ``(e) 
        through (i)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking 
                ``paragraphs (1), (6), (7), and (11)'' and 
                inserting ``paragraphs (4), (7), (8), and 
                (11)(B)''; and
                    (B) in paragraph (2), by striking 
                ``subsection (e)'' and inserting ``subsections 
                (e) through (i)''.

SEC. 7205. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

    Section 1672A of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925a) is amended--
            (1) in subsection (b), by striking paragraph (1) 
        and inserting the following:
            ``(1) In general.--Paragraphs (4), (7), (8), and 
        (11)(B) of subsection (b) of the Competitive, Special, 
        and Facilities Research Grant Act (7 U.S.C. 450i) shall 
        apply with respect to the making of grants under this 
        section.'';
            (2) by striking subsection (d) and inserting the 
        following:
    ``(d) Priority.--Following the completion of a peer review 
process for grant proposals received under this section, the 
Secretary shall give priority to those grant proposals that 
involve--
            ``(1) the cooperation of multiple entities; and
            ``(2) States or regions with a high concentration 
        of livestock, dairy, or poultry operations.'';
            (3) in subsection (e)--
                    (A) in paragraph (1)(B), by inserting ``and 
                dairy and beef cattle waste'' after ``swine 
                waste''; and
                    (B) by striking paragraph (5) and inserting 
                the following:
            ``(5) Alternative uses and renewable energy.--
        Research and extension grants may be made under this 
        section for the purpose of finding innovative methods 
        and technologies to allow agricultural operators to 
        make use of animal waste, such as use as fertilizer, 
        methane digestion, composting, and other useful 
        byproducts.'';
            (4) by redesignating subsection (g) as subsection 
        (f); and
            (5) in subsection (f) (as so redesignated), by 
        striking ``2007'' and inserting ``2012''.

SEC. 7206. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

    (a) In General.--Section 1672B of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) (commonly 
known as the ``Organic Agriculture Research and Extension 
Initiative'') is amended--
            (1) in subsection (a)--
                    (A) in paragraph (5), by striking ``and'' 
                after the semicolon;
                    (B) in paragraph (6), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following:
            ``(7) examining optimal conservation and 
        environmental outcomes relating to organically produced 
        agricultural products; and
            ``(8) developing new and improved seed varieties 
        that are particularly suited for organic 
        agriculture.''; and
            (2) by adding at the end the following:
    ``(f) Funding.--
            ``(1) In general.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall make available 
        to carry out this section--
                    ``(A) $18,000,000 for fiscal year 2009; and
                    ``(B) $20,000,000 for each of fiscal years 
                2010 through 2012.
            ``(2) Additional funding.--In addition to amounts 
        made available under paragraph (1), there is authorized 
        to be appropriated to carry out this section 
        $25,000,000 for each of fiscal years 2009 through 
        2012.''.
    (b) Coordination.--In carrying out the amendment made by 
this section, the Secretary shall ensure that the Division 
Chief of the applicable Research, Education, and Extension 
Office established under section 251 of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) 
coordinates projects and activities under this section to 
ensure, to the maximum extent practicable, that unnecessary 
duplication of effort is eliminated or minimized.

SEC. 7207. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY EFFICIENCY 
                    RESEARCH AND EXTENSION INITIATIVE.

    Title XVI of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5801 et seq.) is amended by inserting 
after section 1672B (7 U.S.C. 5925b) the following:

``SEC. 1672C. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY EFFICIENCY 
                    RESEARCH AND EXTENSION INITIATIVE.

    ``(a) Establishment and Purpose.--There is established 
within the Department of Agriculture an agricultural bioenergy 
feedstock and energy efficiency research and extension 
initiative (referred to in this section as the `Initiative') 
for the purpose of enhancing the production of biomass energy 
crops and the energy efficiency of agricultural operations.
    ``(b) Competitive Research and Extension Grants 
Authorized.--In carrying out this section, the Secretary shall 
make competitive grants to support research and extension 
activities specified in subsections (c) and (d).
    ``(c) Agricultural Bioenergy Feedstock Research and 
Extension Areas.--
            ``(1) In general.--Agricultural bioenergy feedstock 
        research and extension activities funded under the 
        Initiative shall focus on improving agricultural 
        biomass production, biomass conversion in 
        biorefineries, and biomass use by--
                    ``(A) supporting on-farm research on crop 
                species, nutrient requirements, management 
                practices, environmental impacts, and 
                economics;
                    ``(B) supporting the development and 
                operation of on-farm, integrated biomass 
                feedstock production systems;
                    ``(C) leveraging the broad scientific 
                capabilities of the Department of Agriculture 
                and other entities in--
                            ``(i) plant genetics and breeding;
                            ``(ii) crop production;
                            ``(iii) soil and water science;
                            ``(iv) use of agricultural waste; 
                        and
                            ``(v) carbohydrate, lipid, protein, 
                        and lignin chemistry, enzyme 
                        development, and biochemistry; and
                    ``(D) supporting the dissemination of any 
                of the research conducted under this subsection 
                that will assist in achieving the goals of this 
                section.
            ``(2) Selection criteria.--In selecting grant 
        recipients for projects under paragraph (1), the 
        Secretary shall consider--
                    ``(A) the capabilities and experiences of 
                the applicant, including--
                            ``(i) research in actual field 
                        conditions; and
                            ``(ii) engineering and research 
                        knowledge relating to biofuels or the 
                        production of inputs for biofuel 
                        production;
                    ``(B) the range of species types and 
                cropping practices proposed for study 
                (including species types and practices studied 
                using side-by-side comparisons of those types 
                and practices);
                    ``(C) the need for regional diversity among 
                feedstocks;
                    ``(D) the importance of developing 
                multiyear data relevant to the production of 
                biomass feedstock crops;
                    ``(E) the extent to which the project 
                involves direct participation of agricultural 
                producers;
                    ``(F) the extent to which the project 
                proposal includes a plan or commitment to use 
                the biomass produced as part of the project in 
                commercial channels; and
                    ``(G) such other factors as the Secretary 
                may determine.
    ``(d) Energy-Efficiency Research and Extension Areas.--On-
farm energy-efficiency research and extension activities funded 
under the Initiative shall focus on developing and 
demonstrating technologies and production practices relating 
to--
            ``(1) improving on-farm renewable energy 
        production;
            ``(2) encouraging efficient on-farm energy use;
            ``(3) promoting on-farm energy conservation;
            ``(4) making a farm or ranch energy-neutral; and
            ``(5) enhancing on-farm usage of advanced 
        technologies to promote energy efficiency.
    ``(e) Best Practices Database.--The Secretary shall develop 
a best-practices database that includes information, to be 
available to the public, on--
            ``(1) the production potential of a variety of 
        biomass crops; and
            ``(2) best practices for production, collection, 
        harvesting, storage, and transportation of biomass 
        crops to be used as a source of bioenergy.
    ``(f) Administration.--
            ``(1) In general.--Paragraphs (4), (7), (8), and 
        (11)(B) of subsection (b) of the Competitive, Special, 
        and Facilities Research Grant Act (7 U.S.C. 450i(b)) 
        shall apply with respect to making grants under this 
        section.
            ``(2) Consultation and coordination.--The Secretary 
        shall--
                    ``(A) make the grants in consultation with 
                the National Agricultural Research, Extension, 
                Education, and Economics Advisory Board; and
                    ``(B) coordinate projects and activities 
                carried out under the Initiative with projects 
                and activities under section 9008 of the Farm 
                Security and Rural Investment Act of 2002 to 
                ensure, to the maximum extent practicable, 
                that--
                            ``(i) unnecessary duplication of 
                        effort is eliminated or minimized; and
                            ``(ii) the respective strengths of 
                        the Department of Agriculture and the 
                        Department of Energy are appropriately 
                        used.
            ``(3) Grant priority.--The Secretary shall give 
        priority to grant applications that integrate research 
        and extension activities established under subsections 
        (c) and (d), respectively.
            ``(4) Matching funds required.--As a condition of 
        receiving a grant under this section, the Secretary 
        shall require the recipient of the grant to provide 
        funds or in-kind support from non-Federal sources in an 
        amount that is at least equal to the amount provided by 
        the Federal Government.
            ``(5) Partnerships encouraged.--Following the 
        completion of a peer review process for grant proposals 
        received under this section, the Secretary may provide 
        a priority to those grant proposals found as a result 
        of the peer review process--
                    ``(A) to be scientifically meritorious; and
                    ``(B) that involve cooperation--
                            ``(i) among multiple entities; and
                            ``(ii) with agricultural producers.
    ``(g) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $50,000,000 for 
each of fiscal years 2008 through 2012.''.

SEC. 7208. FARM BUSINESS MANAGEMENT AND BENCHMARKING.

    The Food, Agriculture, Conservation and Trade Act of 1990 
is amended by inserting after section 1672C (as added by 
section 7207) the following:

``SEC. 1672D. FARM BUSINESS MANAGEMENT.

    ``(a) In General.--The Secretary may make competitive 
research and extension grants for the purpose of--
            ``(1) improving the farm management knowledge and 
        skills of agricultural producers; and
            ``(2) establishing and maintaining a national, 
        publicly available farm financial management database 
        to support improved farm management.
    ``(b) Selection Criteria.--In allocating funds made 
available to carry out this section, the Secretary may give 
priority to grants that--
            ``(1) demonstrate an ability to work directly with 
        agricultural producers;
            ``(2) collaborate with farm management and producer 
        associations;
            ``(3) address the farm management needs of a 
        variety of crops and regions of the United States; and
            ``(4) use and support the national farm financial 
        management database.
    ``(c) Administration.--Paragraphs (4), (7), (8), and 
(11)(B) of subsection (b) of the Competitive, Special, and 
Facilities Research Grant Act (7 U.S.C. 450i(b)) shall apply 
with respect to the making of grants under this section.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section.''.

SEC. 7209. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5926) is repealed.

SEC. 7210. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680(c)(1) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7211. RESEARCH ON HONEY BEE DISEASES.

    Section 1681 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5934) is repealed.

SEC. 7212. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 
``2007'' and inserting ``2012''.

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

SEC. 7301. PEER AND MERIT REVIEW.

    Section 103(a) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended by 
adding at the end the following:
            ``(3) Consideration.--Peer and merit review 
        procedures established under paragraphs (1) and (2) 
        shall not take the offer or availability of matching 
        funds into consideration.''.

SEC. 7302. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY 
                    RESEARCH.

    Section 402 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7622) is repealed.

SEC. 7303. PRECISION AGRICULTURE.

    Section 403 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7623) is repealed.

SEC. 7304. BIOBASED PRODUCTS.

    (a) Pilot Project.--Section 404(e)(2) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7624(e)(2)) is amended by striking ``2007'' and inserting 
``2012''.
    (b) Authorization of Appropriations.--Section 404(h) of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7624(h)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 7305. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

    Section 405 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7625) is repealed.

SEC. 7306. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
                    GRANTS PROGRAM.

    Section 406(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7307. FUSARIUM GRAMINEARUM GRANTS.

    Section 408 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7628) is amended--
            (1) in subsection (a), in the subsection heading, 
        by striking ``Grant'' and inserting ``Grants''; and
            (2) in subsection (e), by striking ``2007'' and 
        inserting ``2012''.

SEC. 7308. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

    Section 409(b) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7309. GRANTS FOR YOUTH ORGANIZATIONS.

    Section 410 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7630) is amended by 
striking subsections (b) and (c) and inserting the following:
    ``(b) Flexibility.--The Secretary shall provide maximum 
flexibility in content delivery to each organization receiving 
funds under this section so as to ensure that the unique goals 
of each organization, as well as the local community needs, are 
fully met.
    ``(c) Redistribution of Funding Within Organizations 
Authorized.--Recipients of funds under this section may 
redistribute all or part of the funds received to individual 
councils or local chapters within the councils without further 
need of approval from the Secretary.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as are necessary for each of fiscal years 2008 through 
2012.''.

SEC. 7310. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
                    DEVELOPING COUNTRIES.

    Section 411(c) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7311. SPECIALTY CROP RESEARCH INITIATIVE.

    (a) In General.--Title IV of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et 
seq.) is amended by adding at the end the following:

``SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Initiative.--The term `Initiative' means the 
        specialty crop research and extension initiative 
        established by subsection (b).
            ``(2) Specialty crop.--The term `specialty crop' 
        has the meaning given that term in section 3 of the 
        Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 
        1621 note; Public Law 108-465).
    ``(b) Establishment.--There is established within the 
Department a specialty crop research and extension initiative 
to address the critical needs of the specialty crop industry by 
developing and disseminating science-based tools to address 
needs of specific crops and their regions, including--
            ``(1) research in plant breeding, genetics, and 
        genomics to improve crop characteristics, such as--
                    ``(A) product, taste, quality, and 
                appearance;
                    ``(B) environmental responses and 
                tolerances;
                    ``(C) nutrient management, including plant 
                nutrient uptake efficiency;
                    ``(D) pest and disease management, 
                including resistance to pests and diseases 
                resulting in reduced application management 
                strategies; and
                    ``(E) enhanced phytonutrient content;
            ``(2) efforts to identify and address threats from 
        pests and diseases, including threats to specialty crop 
        pollinators;
            ``(3) efforts to improve production efficiency, 
        productivity, and profitability over the long term 
        (including specialty crop policy and marketing);
            ``(4) new innovations and technology, including 
        improved mechanization and technologies that delay or 
        inhibit ripening; and
            ``(5) methods to prevent, detect, monitor, control, 
        and respond to potential food safety hazards in the 
        production and processing of specialty crops, including 
        fresh produce.
    ``(c) Eligible Entities.--The Secretary may carry out the 
Initiative through--
            ``(1) Federal agencies;
            ``(2) national laboratories;
            ``(3) colleges and universities;
            ``(4) research institutions and organizations;
            ``(5) private organizations or corporations;
            ``(6) State agricultural experiment stations;
            ``(7) individuals; or
            ``(8) groups consisting of 2 or more entities 
        described in paragraphs (1) through (7).
    ``(d) Research Projects.--In carrying out this section, the 
Secretary shall award grants on a competitive basis.
    ``(e) Administration.--
            ``(1) In general.--With respect to grants awarded 
        under subsection (d), the Secretary shall--
                    ``(A) seek and accept proposals for grants;
                    ``(B) determine the relevance and merit of 
                proposals through a system of peer and merit 
                review in accordance with section 103; and
                    ``(C) award grants on the basis of merit, 
                quality, and relevance.
            ``(2) Term.--The term of a grant under this section 
        may not exceed 10 years.
            ``(3) Matching funds required.--The Secretary shall 
        require the recipient of a grant under this section to 
        provide funds or in-kind support from non-Federal 
        sources in an amount that is at least equal to the 
        amount provided by the Federal Government.
            ``(4) Other conditions.--The Secretary may set such 
        other conditions on the award of a grant under this 
        section as the Secretary determines to be appropriate.
    ``(f) Priorities.--In making grants under this section, the 
Secretary shall provide a higher priority to projects that--
            ``(1) are multistate, multi-institutional, or 
        multidisciplinary; and
            ``(2) include explicit mechanisms to communicate 
        results to producers and the public.
    ``(g) Buildings and Facilities.--Funds made available under 
this section shall not be used for the construction of a new 
building or facility or the acquisition, expansion, remodeling, 
or alteration of an existing building or facility (including 
site grading and improvement, and architect fees).
    ``(h) Funding.--
            ``(1) In general.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall make available 
        to carry out this section $30,000,000 for fiscal year 
        2008 and $50,000,000 for each of fiscal years 2009 
        through 2012, from which activities under each of 
        paragraphs (1) through (5) of subsection (b) shall be 
        allocated not less than 10 percent.
            ``(2) Authorization of appropriations.--In addition 
        to funds made available under paragraph (1), there is 
        authorized to be appropriated to carry out this section 
        $100,000,000 for each of fiscal years 2008 through 
        2012.
            ``(3) Transfer.--Of the funds made available to the 
        Secretary under paragraph (1) for fiscal year 2008 and 
        authorized for use for payment of administrative 
        expenses under section 1469(a)(3) of the National 
        Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3315(a)(3)), the Secretary shall 
        transfer, upon the date of enactment of this section, 
        $200,000 to the Office of Prevention, Pesticides, and 
        Toxic Substances of the Environmental Protection Agency 
        for use in conducting a meta-analysis relating to 
        methyl bromide.
            ``(4) Availability.--Funds made available pursuant 
        to this subsection for a fiscal year shall remain 
        available until expended to pay for obligations 
        incurred in that fiscal year.''.
    (b) Coordination.--In carrying out the amendment made by 
this section, the Secretary shall ensure that the Division 
Chief of the applicable Research, Education, and Extension 
Office established under section 251 of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) 
coordinates projects and activities under this section to 
ensure, to the maximum extent practicable, that unnecessary 
duplication of effort is eliminated or minimized.

SEC. 7312. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

    Section 604 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7642) is amended by 
adding at the end the following:
    ``(e) Authorization of Appropriations.--In addition to any 
other funds available to carry out subsection (c), there is 
authorized to be appropriated to carry out this section 
$2,500,000 for each of fiscal years 2008 through 2012.''.

SEC. 7313. OFFICE OF PEST MANAGEMENT POLICY.

    Section 614(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by 
striking ``2007'' and inserting ``2012''.

                         Subtitle D--Other Laws

SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.

    Section 16(a) of the Critical Agricultural Materials Act (7 
U.S.C. 178n(a)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (a) Definition of 1994 Institutions.--Section 532 of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
301 note; Public Law 103-382) is amended by adding at the end 
the following:
            ``(34) Ilisagvik College.''.
    (b) Endowment for 1994 Institutions.--Section 533 of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
301 note; Public Law 103-382) is amended--
            (1) in subsection (a)(3), in the matter preceding 
        subparagraph (A), by inserting ``this section and'' 
        before ``sections 534,''; and
            (2) in the first sentence of subsection (b), by 
        striking ``2007'' and inserting ``2012''.
    (c) Redistribution.--Section 534(a)(3) of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
Public Law 103-382) is amended--
            (1) by striking ``The amounts'' and inserting the 
        following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the amounts''; and
            (2) by adding at the end the following:
                    ``(B) Redistribution.--Funds that would be 
                paid to a 1994 Institution under paragraph (2) 
                shall be withheld from that 1994 Institution 
                and redistributed among the other 1994 
                Institutions if that 1994 Institution--
                            ``(i) declines to accept funds 
                        under paragraph (2); or
                            ``(ii) fails to meet the 
                        accreditation requirements under 
                        section 533(a)(3).''.
    (d) Institutional Capacity Building Grants.--Section 535 of 
the Equity in Educational Land-Grant Status Act of 1994 (7 
U.S.C. 301 note; Public Law 103-382) is amended by striking 
``2007'' each place it appears and inserting ``2012''.
    (e) Research Grants.--Section 536(c) of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
Public Law 103-382) is amended in the first sentence by 
striking ``2007'' and inserting ``2012''.
    (f) Effective Date.--The amendment made by subsection (a) 
takes effect on October 1, 2008.

SEC. 7403. SMITH-LEVER ACT.

    (a) Program.--Section 3(d) of the Smith-Lever Act (7 U.S.C. 
343(d)) is amended in the second sentence by striking ``apply 
for and receive'' and all that follows through paragraph (2) 
and inserting ``compete for and receive funds directly from the 
Secretary of Agriculture.''.
    (b) Elimination of the Governor's Report Requirement for 
Extension Activities.--Section 5 of the Smith-Lever Act (7 
U.S.C. 345) is amended by striking the third sentence.
    (c) Conforming Amendment.--Section 1444(a)(2) of the 
National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3221(a)(2)) is amended by striking 
``after September 30, 1995, under section 3(d) of that Act (7 
U.S.C. 343(d))'' and all that follows through the end of the 
sentence and inserting ``under section 3(d) of that Act (7 
U.S.C. 343(d)).''.

SEC. 7404. HATCH ACT OF 1887.

    (a) District of Columbia.--Section 3(d)(4) of the Hatch Act 
of 1887 (7 U.S.C. 361c(d)(4)) is amended--
            (1) in the paragraph heading, by inserting ``and 
        the district of columbia'' after ``areas'';
            (2) in subparagraph (A)--
                    (A) by inserting ``and the District of 
                Columbia'' after ``United States''; and
                    (B) by inserting ``and the District of 
                Columbia'' after ``respectively,''; and
            (3) in subparagraph (B), by inserting ``or the 
        District of Columbia'' after ``area''.
    (b) Elimination of Penalty Mail Authorities.--
            (1) In general.--Section 6 of the Hatch Act of 1887 
        (7 U.S.C. 361f) is amended in the first sentence by 
        striking ``under penalty indicia:'' and all that 
        follows through the end of the sentence and inserting a 
        period.
            (2) Conforming amendments in other laws.--
                    (A) National agricultural research, 
                extension, and teaching policy act of 1977.--
                            (i) Section 1444(f) of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977 (7 U.S.C. 
                        3221(f)) is amended by striking ``under 
                        penalty indicia:'' and all that follows 
                        through the end of the sentence and 
                        inserting a period.
                            (ii) Section 1445(e) of the 
                        National Agricultural Research, 
                        Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3222(e)) is amended by 
                        striking ``under penalty indicia:'' and 
                        all that follows through the end of the 
                        sentence and inserting a period.
                    (B) Other provisions.--Section 3202(a) of 
                title 39, United States Code, is amended--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (D), by 
                                adding ``and'' at the end;
                                    (II) in subparagraph (E), 
                                by striking ``sections; and'' 
                                and inserting ``sections.''; 
                                and
                                    (III) by striking 
                                subparagraph (F);
                            (ii) in paragraph (2), by adding 
                        ``and'' at the end;
                            (iii) in paragraph (3) by striking 
                        ``thereof; and'' and inserting 
                        ``thereof.''; and
                            (iv) by striking paragraph (4).

SEC. 7405. AGRICULTURAL EXPERIMENT STATION RESEARCH FACILITIES ACT.

    Section 6(a) of the Research Facilities Act (7 U.S.C. 
390d(a)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 7406. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

    (a) In General.--Subsection (b) of the Competitive, 
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)) 
is amended to read as follows:
    ``(b) Agriculture and Food Research Initiative.--
            ``(1) Establishment.--There is established in the 
        Department of Agriculture an Agriculture and Food 
        Research Initiative under which the Secretary of 
        Agriculture (referred to in this subsection as `the 
        Secretary') may make competitive grants for fundamental 
        and applied research, extension, and education to 
        address food and agricultural sciences (as defined 
        under section 1404 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103)).
            ``(2) Priority areas.--The competitive grants 
        program established under this subsection shall address 
        the following areas:
                    ``(A) Plant health and production and plant 
                products.--Plant systems, including--
                            ``(i) plant genome structure and 
                        function;
                            ``(ii) molecular and cellular 
                        genetics and plant biotechnology;
                            ``(iii) conventional breeding, 
                        including cultivar and breed 
                        development, selection theory, applied 
                        quantitative genetics, breeding for 
                        improved food quality, breeding for 
                        improved local adaptation to biotic 
                        stress and abiotic stress, and 
                        participatory breeding;
                            ``(iv) plant-pest interactions and 
                        biocontrol systems;
                            ``(v) crop plant response to 
                        environmental stresses;
                            ``(vi) unproved nutrient qualities 
                        of plant products; and
                            ``(vii) new food and industrial 
                        uses of plant products.
                    ``(B) Animal health and production and 
                animal products.--Animal systems, including--
                            ``(i) aquaculture;
                            ``(ii) cellular and molecular basis 
                        of animal reproduction, growth, 
                        disease, and health;
                            ``(iii) animal biotechnology;
                            ``(iv) conventional breeding, 
                        including breed development, selection 
                        theory, applied quantitative genetics, 
                        breeding for improved food quality, 
                        breeding for improved local adaptation 
                        to biotic stress and abiotic stress, 
                        and participatory breeding;
                            ``(v) identification of genes 
                        responsible for improved production 
                        traits and resistance to disease;
                            ``(vi) improved nutritional 
                        performance of animals;
                            ``(vii) improved nutrient qualities 
                        of animal products and uses; and
                            ``(viii) the development of new and 
                        improved animal husbandry and 
                        production systems that take into 
                        account production efficiency, animal 
                        well-being, and animal systems 
                        applicable to aquaculture.
                    ``(C) Food safety, nutrition, and health.--
                Nutrition, food safety and quality, and health, 
                including--
                            ``(i) microbial contaminants and 
                        pesticides residue relating to human 
                        health;
                            ``(ii) links between diet and 
                        health;
                            ``(iii) bioavailability of 
                        nutrients;
                            ``(iv) postharvest physiology and 
                        practices; and
                            ``(v) improved processing 
                        technologies.
                    ``(D) Renewable energy, natural resources, 
                and environment.--Natural resources and the 
                environment, including--
                            ``(i) fundamental structures and 
                        functions of ecosystems;
                            ``(ii) biological and physical 
                        bases of sustainable production 
                        systems;
                            ``(iii) minimizing soil and water 
                        losses and sustaining surface water and 
                        ground water quality;
                            ``(iv) global climate effects on 
                        agriculture;
                            ``(v) forestry; and
                            ``(vi) biological diversity.
                    ``(E) Agriculture systems and technology.--
                Engineering, products, and processes, 
                including--
                            ``(i) new uses and new products 
                        from traditional and nontraditional 
                        crops, animals, byproducts, and natural 
                        resources;
                            ``(ii) robotics, energy efficiency, 
                        computing, and expert systems;
                            ``(iii) new hazard and risk 
                        assessment and mitigation measures; and
                            ``(iv) water quality and 
                        management.
                    ``(F) Agriculture economics and rural 
                communities.--Markets, trade, and policy, 
                including--
                            ``(i) strategies for entering into 
                        and being competitive in domestic and 
                        overseas markets;
                            ``(ii) farm efficiency and 
                        profitability, including the viability 
                        and competitiveness of small and 
                        medium-sized dairy, livestock, crop and 
                        other commodity operations;
                            ``(iii) new decision tools for farm 
                        and market systems;
                            ``(iv) choices and applications of 
                        technology;
                            ``(v) technology assessment; and
                            ``(vi) new approaches to rural 
                        development, including rural 
                        entrepreneurship.
            ``(3) Term.--The term of a competitive grant made 
        under this subsection may not exceed 10 years.
            ``(4) General administration.--In making grants 
        under this subsection, the Secretary shall--
                    ``(A) seek and accept proposals for grants;
                    ``(B) determine the relevance and merit of 
                proposals through a system of peer and merit 
                review in accordance with section 103 of the 
                Agricultural Research, Extension, and Education 
                Reform Act of 1998 (7 U.S.C. 7613);
                    ``(C) award grants on the basis of merit, 
                quality, and relevance;
                    ``(D) solicit and consider input from 
                persons who conduct or use agricultural 
                research, extension, or education in accordance 
                with section 102(b) of the Agricultural 
                Research, Extension, and Education Reform Act 
                of 1998 (7 U.S.C. 7612(b)); and
                    ``(E) in seeking proposals for grants under 
                this subsection and in performing peer review 
                evaluations of such proposals, seek the widest 
                participation of qualified individuals in the 
                Federal Government, colleges and universities, 
                State agricultural experiment stations, and the 
                private sector.
            ``(5) Allocation of funds.--In making grants under 
        this subsection, the Secretary shall allocate funds to 
        the Agriculture and Food Research Initiative to ensure 
        that, of funds allocated for research activities--
                    ``(A) not less than 60 percent is made 
                available to make grants for fundamental 
                research (as defined in subsection (f)(1) of 
                section 251 of the Department of Agriculture 
                Reorganization Act of 1994 (7 U.S.C. 6971)), of 
                which--
                            ``(i) not less than 30 percent is 
                        made available to make grants for 
                        research to be conducted by 
                        multidisciplinary teams; and
                            ``(ii) not more than 2 percent is 
                        used for equipment grants under 
                        paragraph (6)(A); and
                    ``(B) not less than 40 percent is made 
                available to make grants for applied research 
                (as defined in subsection (f)(1) of section 251 
                of the Department of Agriculture Reorganization 
                Act of 1994 (7 U.S.C. 6971)).
            ``(6) Special considerations.--In making grants 
        under this subsection, the Secretary may assist in the 
        development of capabilities in the agricultural, food, 
        and environmental sciences by providing grants--
                    ``(A) to an institution to allow for the 
                improvement of the research, development, 
                technology transfer, and education capacity of 
                the institution through the acquisition of 
                special research equipment and the improvement 
                of agricultural education and teaching, except 
                that the Secretary shall use not less than 25 
                percent of the funds made available for grants 
                under this subparagraph to provide fellowships 
                to outstanding pre- and post-doctoral students 
                for research in the agricultural sciences;
                    ``(B) to a single investigator or 
                coinvestigators who are beginning research 
                careers and do not have an extensive research 
                publication record, except that, to be eligible 
                for a grant under this subparagraph, an 
                individual shall be within 5 years of the 
                beginning of the initial career track position 
                of the individual;
                    ``(C) to ensure that the faculty of small, 
                mid-sized, and minority-serving institutions 
                who have not previously been successful in 
                obtaining competitive grants under this 
                subsection receive a portion of the grants; and
                    ``(D) to improve research, extension, and 
                education capabilities in States (as defined in 
                section 1404 of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 
                1977 (7 U.S.C. 3103)) in which institutions 
                have been less successful in receiving funding 
                under this subsection, based on a 3-year 
                rolling average of funding levels.
            ``(7) Eligible entities.--The Secretary may make 
        grants to carry out research, extension, and education 
        under this subsection to--
                    ``(A) State agricultural experiment 
                stations;
                    ``(B) colleges and universities;
                    ``(C) university research foundations;
                    ``(D) other research institutions and 
                organizations;
                    ``(E) Federal agencies;
                    ``(F) national laboratories;
                    ``(G) private organizations or 
                corporations;
                    ``(H) individuals; or
                    ``(I) any group consisting of 2 or more of 
                the entities described in subparagraphs (A) 
                through (H).
            ``(8) Construction prohibited.--Funds made 
        available for grants under this subsection shall not be 
        used for the construction of a new building or facility 
        or the acquisition, expansion, remodeling, or 
        alteration of an existing building or facility 
        (including site grading and improvement, and architect 
        fees).
            ``(9) Matching funds.--
                    ``(A) Equipment grants.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), in the case of 
                        a grant made under paragraph (6)(A), 
                        the amount provided under this 
                        subsection may not exceed 50 percent of 
                        the cost of the special research 
                        equipment or other equipment acquired 
                        using funds from the grant.
                            ``(ii) Waiver.--The Secretary may 
                        waive all or part of the matching 
                        requirement under clause (i) in the 
                        case of a college, university, or 
                        research foundation maintained by a 
                        college or university that ranks in the 
                        lowest \1/3\ of such colleges, 
                        universities, and research foundations 
                        on the basis of Federal research funds 
                        received, if the equipment to be 
                        acquired using funds from the grant 
                        costs not more than $25,000 and has 
                        multiple uses within a single research 
                        project or is usable in more than 1 
                        research project.
                    ``(B) Applied research.--As a condition of 
                making a grant under paragraph (5)(B), the 
                Secretary shall require the funding of the 
                grant to be matched with equal matching funds 
                from a non-Federal source if the grant is for 
                applied research that is--
                            ``(i) commodity-specific; and
                            ``(ii) not of national scope.
            ``(10) Program administration.--To the maximum 
        extent practicable, the Director of the National 
        Institute of Food and Agriculture, in coordination with 
        the Under Secretary for Research, Education, and 
        Economics, shall allocate grants under this subsection 
        to high-priority research, taking into consideration, 
        when available, the determinations made by the National 
        Agricultural Research, Extension, Education, and 
        Economics Advisory Board (as established under section 
        1408 of the National Agricultural Research, Extension, 
        and Teaching Policy Act of 1977 (7 U.S.C. 3123)).
            ``(11) Authorization of appropriations.--
                    ``(A) In general.--There is authorized to 
                be appropriated to carry out this subsection 
                $700,000,000 for each of fiscal years 2008 
                through 2012, of which--
                            ``(i) not less than 30 percent 
                        shall be made available for integrated 
                        research pursuant to section 406 of the 
                        Agricultural Research, Extension, and 
                        Education Reform Act of 1998 (7 U.S.C. 
                        7626); and
                            ``(ii) not more than 4 percent may 
                        be retained by the Secretary to pay 
                        administrative costs incurred by the 
                        Secretary in carrying out this 
                        subsection.
                    ``(B) Availability.--Funds made available 
                under this paragraph shall--
                            ``(i) be available for obligation 
                        for a 2-year period beginning on 
                        October 1 of the fiscal year for which 
                        the funds are first made available; and
                            ``(ii) remain available until 
                        expended to pay for obligations 
                        incurred during that 2-year period.''.
    (b) Repeals.--
            (1) Section 401 of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7621) is repealed.
            (2) Subsection (d) of the Competitive, Special, and 
        Facilities Research Grant Act (7 U.S.C. 450i(d)) is 
        repealed.
    (c) Effect on Current Solicitations.--The amendments made 
by this section shall not apply to any solicitation for grant 
applications issued by the Cooperative State Research, 
Education, and Extension Service before the date of enactment 
of this Act.
    (d) Conforming Amendments.--
            (1) Section 1473 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3319) is amended in the first sentence by 
        striking ``and subsection (d)''.
            (2) Section 1671(d) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5924(d)) 
        is amended by striking ``Paragraphs (1), (6), (7), and 
        (11)'' and inserting ``Paragraphs (4), (7), (8), and 
        (11)(B)''.
            (3) Section 1672B(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(b)) 
        is amended by striking ``Paragraphs (1), (6), (7), and 
        (11)'' and inserting ``Paragraphs (4), (7), (8), and 
        (11)(B)''.

SEC. 7407. AGRICULTURAL RISK PROTECTION ACT OF 2000.

    Section 221 of the Agricultural Risk Protection Act of 2000 
(7 U.S.C. 6711(g)) is amended by striking subsection (g) and 
inserting the following:
    ``(g) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $15,000,000 for 
each of fiscal years 2007 through 2012.''.

SEC. 7408. EXCHANGE OR SALE AUTHORITY.

    Title III of the Department of Agriculture Reorganization 
Act of 1994 (Public Law 103-354; 108 Stat. 3238) is amended by 
adding at the end the following:

``SEC. 307. EXCHANGE OR SALE AUTHORITY.

    ``(a) Definition of Qualified Item of Personal Property.--
In this section, the term `qualified item of personal property' 
means--
            ``(1) an animal;
            ``(2) an animal product;
            ``(3) a plant; or
            ``(4) a plant product.
    ``(b) General Authority.--Except as provided in subsection 
(c), notwithstanding chapter 5 of subtitle I of title 40, 
United States Code, the Secretary, acting through the Under 
Secretary for Research, Education, and Economics, in managing 
personal property for the purpose of carrying out the research 
functions of the Department, may exchange, sell, or otherwise 
dispose of any qualified item of personal property, including 
by way of public auction, and may retain and apply the sale or 
other proceeds, without further appropriation and without 
fiscal year limitation, in whole or in partial payment--
            ``(1) to acquire any qualified item of personal 
        property; or
            ``(2) to offset costs related to the maintenance, 
        care, or feeding of any qualified item of personal 
        property.
    ``(c) Exception.--Subsection (b) does not apply to the free 
dissemination of new varieties of seeds and germplasm in 
accordance with section 520 of the Revised Statutes (commonly 
known as the `Department of Agriculture Organic Act') (7 U.S.C. 
2201).''.

SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

    Title III of the Department of Agriculture Reorganization 
Act of 1994 (Public Law 103-354; 108 Stat. 3238) (as amended by 
section 7408) is amended by adding at the end the following:

``SEC. 308. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

    ``(a) Establishment.--To enhance the use of real property 
administered by agencies of the Department, the Secretary may 
establish a pilot program, in accordance with this section, at 
the Beltsville Agricultural Research Center of the Agricultural 
Research Service and the National Agricultural Library to lease 
nonexcess property of the Center or the Library to any 
individual or entity, including agencies or instrumentalities 
of State or local governments.
    ``(b) Requirements.--
            ``(1) In general.--Notwithstanding chapter 5 of 
        subtitle I of title 40, United States Code, the 
        Secretary may lease real property at the Beltsville 
        Agricultural Research Center or the National 
        Agricultural Library in accordance with such terms and 
        conditions as the Secretary may prescribe, if the 
        Secretary determines that the lease--
                    ``(A) is consistent with, and will not 
                adversely affect, the mission of the Department 
                agency administering the property;
                    ``(B) will enhance the use of the property;
                    ``(C) will not permit any portion of 
                Department agency property or any facility of 
                the Department to be used for the public retail 
                or wholesale sale of merchandise or residential 
                development;
                    ``(D) will not permit the construction or 
                modification of facilities financed by non-
                Federal sources to be used by an agency, except 
                for incidental use; and
                    ``(E) will not include any property or 
                facility required for any Department agency 
                purpose without prior consideration of the 
                needs of the agency.
            ``(2) Term.--The term of a lease under this section 
        shall not exceed 30 years.
            ``(3) Consideration.--
                    ``(A) In general.--Consideration provided 
                for a lease under this section shall be--
                            ``(i) in an amount equal to fair 
                        market value, as determined by the 
                        Secretary; and
                            ``(ii) in the form of cash.
                    ``(B) Use of funds.--
                            ``(i) In general.--Consideration 
                        provided for a lease under this section 
                        shall be--
                                    ``(I) deposited in a 
                                capital asset account to be 
                                established by the Secretary; 
                                and
                                    ``(II) available until 
                                expended, without further 
                                appropriation, for maintenance, 
                                capital revitalization, and 
                                improvements of the Department 
                                properties and facilities at 
                                the Beltsville Agricultural 
                                Research Center and National 
                                Agricultural Library.
                            ``(ii) Budgetary treatment.--For 
                        purposes of the budget, the amounts 
                        described in clause (i) shall not be 
                        treated as a receipt of any Department 
                        agency or any other agency leasing 
                        property under this section.
            ``(4) Costs.--The lessee shall cover all costs 
        associated with a lease under this section, including 
        the cost of--
                    ``(A) the project to be carried out on 
                property or at a facility covered by the lease;
                    ``(B) provision and administration of the 
                lease;
                    ``(C) construction of any needed 
                facilities;
                    ``(D) provision of applicable utilities; 
                and
                    ``(E) any other facility cost normally 
                associated with the operation of a leased 
                facility.
            ``(5) Prohibition of use of appropriations.--The 
        Secretary shall not use any funds made available to the 
        Secretary in an appropriations Act for the construction 
        or operating costs of any space covered by a lease 
        under this section.
            ``(6) Termination of authority.--This section and 
        the authority provided by this section terminate--
                    ``(A) on the date that is 5 years after the 
                date of enactment of this section; or
                    ``(B) with respect to any particular leased 
                property, on the date of termination of the 
                lease.
    ``(c) Effect of Other Laws.--
            ``(1) Utilization.--Property that is leased 
        pursuant to this section shall not be considered to be 
        unutilized or underutilized for purposes of section 501 
        of the Stewart B. McKinney Homeless Assistance Act (42 
        U.S.C. 11411).
            ``(2) Disposal.--Property at the Beltsville 
        Agricultural Research Center or the National 
        Agricultural Library that is leased pursuant to this 
        section shall not be considered to be disposed of by 
        sale, lease, rental, excessing, or surplusing for 
        purposes of section 523 of Public Law 100-202 (101 
        Stat. 1329-417).
    ``(d) Administration.--
            ``(1) In general.--Not later than 90 days after the 
        date of enactment of this section, the Secretary shall 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report that 
        describes detailed management objectives and 
        performance measurements by which the Secretary intends 
        to evaluate the success of the program under this 
        section.
            ``(2) Reports.--Not later than 1, 3, and 5 years 
        after the date of enactment of this section, the 
        Secretary shall submit to the Committee on Agriculture 
        of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a 
        report describing the implementation of the program 
        under this section, including--
                    ``(A) a copy of each lease entered into 
                pursuant to this section; and
                    ``(B) an assessment by the Secretary of the 
                success of the program using the management 
                objectives and performance measurements 
                developed by the Secretary.''.

SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

    (a) Grants.--Section 7405(c) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended--
            (1) by striking paragraph (3) and inserting the 
        following:
            ``(3) Maximum term and size of grant.--
                    ``(A) In general.--A grant under this 
                subsection shall--
                            ``(i) have a term that is not more 
                        than 3 years; and
                            ``(ii) be in an amount that is not 
                        more than $250,000 for each year.
                    ``(B) Consecutive grants.--An eligible 
                recipient may receive consecutive grants under 
                this subsection.'';
            (2) by redesignating paragraphs (5) through (7) as 
        paragraphs (8) through (10), respectively;
            (3) by inserting after paragraph (4) the following:
            ``(5) Evaluation criteria.--In making grants under 
        this subsection, the Secretary shall evaluate--
                    ``(A) relevancy;
                    ``(B) technical merit;
                    ``(C) achievability;
                    ``(D) the expertise and track record of 1 
                or more applicants;
                    ``(E) the adequacy of plans for the 
                participatory evaluation process, outcome-based 
                reporting, and the communication of findings 
                and results beyond the immediate target 
                audience; and
                    ``(F) other appropriate factors, as 
                determined by the Secretary.
            ``(6) Regional balance.--In making grants under 
        this subsection, the Secretary shall, to the maximum 
        extent practicable, ensure geographical diversity.
            ``(7) Priority.--In making grants under this 
        subsection, the Secretary shall give priority to 
        partnerships and collaborations that are led by or 
        include nongovernmental and community-based 
        organizations with expertise in new agricultural 
        producer training and outreach.''.
    (b) Funding.--Section 7405 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 3319f) is amended by striking 
subsection (h) and inserting the following:
    ``(h) Funding.--
            ``(1) In general.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall make available 
        to carry out this section--
                    ``(A) $18,000,000 for fiscal year 2009; and
                    ``(B) $19,000,000 for each of fiscal years 
                2010 through 2012.
            ``(2) Authorization of appropriations.--In addition 
        to funds provided under paragraph (1), there is 
        authorized to be appropriated to carry out this section 
        $30,000,000 for each of fiscal years 2008 through 
        2012.''.

SEC. 7411. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN PRODUCING 
                    FOOD FOR HUMAN CONSUMPTION.

    Section 10802 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 5921a) is repealed.

SEC. 7412. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

    (a) In General.--Section 2 of Public Law 87-788 (commonly 
known as the ``McIntire-Stennis Cooperative Forestry Act'') (16 
U.S.C. 582a-1) is amended by inserting ``and 1890 Institutions 
(as defined in section 2 of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)),'' 
before ``and (b)''.
    (b) Effective Date.--The amendment made by subsection (a) 
takes effect on October 1, 2008.

SEC. 7413. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

    (a) Authorization of Appropriations.--Section 6 of the 
Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
amended in the first sentence by striking ``2007'' and 
inserting ``2012''.
    (b) Termination Date.--Section 8 of the Renewable Resources 
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) 
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7414. NATIONAL AQUACULTURE ACT OF 1980.

    Section 10 of the National Aquaculture Act of 1980 (16 
U.S.C. 2809) is amended by striking ``2007'' each place it 
appears and inserting ``2012''.

SEC. 7415. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL ARBORETUM.

    The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is 
amended by adding at the end the following:

``SEC. 7. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL ARBORETUM.

    ``A Chinese Garden may be constructed at the National 
Arboretum established under this Act with--
            ``(1) funds accepted under section 5;
            ``(2) authorities provided to the Secretary of 
        Agriculture under section 6; and
            ``(3) appropriations provided for this purpose.''.

SEC. 7416. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
                    POLICY ACT AMENDMENTS OF 1985.

    Section 1431 of the National Agricultural Research, 
Extension, and Teaching Policy Act Amendments of 1985 (Public 
Law 99-198; 99 Stat. 1556) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 7417. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR 
                    CERTAIN LAND-GRANT UNIVERSITY ASSISTANCE.

    (a) In General.--Section 208 of the District of Columbia 
Public Postsecondary Education Reorganization Act (Public Law 
93-471; 88 Stat. 1428) is amended--
            (1) in subsection (b)(2), by striking ``, except'' 
        and all that follows through the period and inserting a 
        period; and
            (2) in subsection (c)--
                    (A) by striking ``section 3'' each place it 
                appears and inserting ``section 3(c)''; and
                    (B) by striking ``Such sums may be used to 
                pay'' and all that follows through ``work.''.
    (b) Effective Date.--The amendments made by this section 
take effect on October 1, 2008.

                       Subtitle E--Miscellaneous

                       PART I--GENERAL PROVISIONS

SEC. 7501. DEFINITIONS.

    Except as otherwise provided in this subtitle, in this 
subtitle:
            (1) Capacity and infrastructure program.--The term 
        ``capacity and infrastructure program'' has the meaning 
        given the term in subsection (f)(1) of section 251 of 
        the Department of Agriculture Reorganization Act of 
        1994 (7 U.S.C. 6971) (as added by section 7511(a)(4)).
            (2) Capacity and infrastructure program critical 
        base funding.--The term ``capacity and infrastructure 
        program critical base funding'' means the aggregate 
        amount of Federal funds made available for capacity and 
        infrastructure programs for fiscal year 2006, as 
        appropriate.
            (3) Competitive program.--The term ``competitive 
        program'' has the meaning given the term in subsection 
        (f)(1) of section 251 of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6971) (as added by 
        section 7511(a)(4)).
            (4) Competitive program critical base funding.--The 
        term ``competitive program critical base funding'' 
        means the aggregate amount of Federal funds made 
        available for competitive programs for fiscal year 
        2006, as appropriate.
            (5) Hispanic-serving agricultural colleges and 
        universities.--The term ``Hispanic-serving agricultural 
        colleges and universities'' has the meaning given the 
        term in section 1404 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103).
            (6) NLGCA institution.--The term ``NLGCA 
        Institution'' has the meaning given the term in section 
        1404 of the National Agricultural Research, Extension, 
        and Teaching Policy Act of 1977 (7 U.S.C. 3103).
            (7) 1862 institution; 1890 institution; 1994 
        institution.--The terms ``1862 Institution'', ``1890 
        Institution'', and ``1994 Institution'' have the 
        meanings given the terms in section 2 of the 
        Agricultural Research, Extension, and Education Reform 
        Act of 1998 (7 U.S.C. 7601).

SEC. 7502. GRAZINGLANDS RESEARCH LABORATORY.

    Except as otherwise specifically authorized by law and 
notwithstanding any other provision of law, the Federal land 
and facilities at El Reno, Oklahoma, administered by the 
Secretary (as of the date of enactment of this Act) as the 
Grazinglands Research Laboratory, shall not at any time, in 
whole or in part, be declared to be excess or surplus Federal 
property under chapter 5 of subtitle I of title 40, United 
States Code, or otherwise be conveyed or transferred in whole 
or in part, for the 5-year period beginning on the date of 
enactment of this Act.

SEC. 7503. FORT RENO SCIENCE PARK RESEARCH FACILITY.

    The Secretary may lease land to the University of Oklahoma 
at the Grazinglands Research Laboratory at El Reno, Oklahoma, 
on such terms and conditions as the University and the 
Secretary may agree in furtherance of cooperative research and 
existing easement arrangements.

SEC. 7504. ROADMAP.

    (a) In General.--Not later than 90 days after the date of 
enactment of this Act, the Secretary, acting through the Under 
Secretary of Research, Education, and Economics (referred to in 
this section as the ``Under Secretary''), shall commence 
preparation of a roadmap for agricultural research, education, 
and extension that--
            (1) identifies current trends and constraints;
            (2) identifies major opportunities and gaps that no 
        single entity within the Department of Agriculture 
        would be able to address individually;
            (3) involves--
                    (A) interested parties from the Federal 
                Government and nongovernmental entities; and
                    (B) the National Agricultural Research, 
                Extension, Education, and Economics Advisory 
                Board established under section 1408 of the 
                National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3123);
            (4) incorporates roadmaps for agricultural 
        research, education, and extension made publicly 
        available by other Federal entities, agencies, or 
        offices; and
            (5) describes recommended funding levels for areas 
        of agricultural research, education, and extension, 
        including--
                    (A) competitive programs;
                    (B) capacity and infrastructure programs, 
                with attention to the future growth needs of--
                            (i) small 1862 Institutions, 1890 
                        Institutions, and 1994 Institutions;
                            (ii) Hispanic-serving agricultural 
                        colleges and universities;
                            (iii) NLGCA Institutions; and
                            (iv) colleges of veterinary 
                        medicine; and
                    (C) intramural programs at agencies within 
                the research, education, and economics mission 
                area; and
            (6) describes how organizational changes enacted by 
        this Act have impacted agricultural research, 
        extension, and education across the Department of 
        Agriculture, including minimization of unnecessary 
        programmatic and administrative duplication.
    (b) Reviewability.--The roadmap described in this section 
shall not be subject to review by any officer or employee of 
the Federal Government other than the Secretary (or a designee 
of the Secretary).
    (c) Roadmap Implementation and Report.--Not later than 1 
year after the date on which the Secretary commences 
preparation of the roadmap under this section, the Secretary 
shall--
            (1) implement and use the roadmap to set the 
        research, education, and extension agenda of the 
        Department of Agriculture; and
            (2) make the roadmap available to the public.

SEC. 7505. REVIEW OF PLAN OF WORK REQUIREMENTS.

    (a) Review.--The Secretary shall work with university 
partners in extension and research to review and identify 
measures to streamline the submission, reporting under, and 
implementation of plan of work requirements, including those 
requirements under--
            (1) sections 1444(d) and 1445(c) of the National 
        Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3221(d) and 3222(c), 
        respectively);
            (2) section 7 of the Hatch Act of 1887 (7 U.S.C. 
        361g); and
            (3) section 4 of the Smith-Lever Act (7 U.S.C. 
        344).
    (b) Consultation.--In carrying out the review and 
formulating and compiling the recommendations, the Secretary 
shall consult with the land-grant institutions.

SEC. 7506. BUDGET SUBMISSION AND FUNDING.

    (a) Definition of Competitive Programs.--In this section, 
the term ``competitive programs'' includes only competitive 
programs for which annual appropriations are requested in the 
annual budget submission of the President.
    (b) Budget Request.--The President shall submit to 
Congress, together with the annual budget submission of the 
President, a single budget line item reflecting the total 
amount requested by the President for funding for research, 
education, and extension activities of the Research, Education, 
and Economics mission area of the Department for that fiscal 
year and for the preceding 5 fiscal years.
    (c) Capacity and Infrastructure Program Request.--Of the 
funds requested for capacity and infrastructure programs in 
excess of the capacity and infrastructure program critical base 
funding level, budgetary emphasis should be placed on enhancing 
funding for--
            (1) 1890 Institutions;
            (2) 1994 Institutions;
            (3) NLGCA Institutions;
            (4) Hispanic-serving agricultural colleges and 
        universities; and
            (5) small 1862 Institutions.
    (d) Competitive Program Request.--Of the funds requested 
for competitive programs in excess of the competitive program 
critical base funding level, budgetary emphasis should be 
placed on--
            (1) enhancing funding for emerging problems; and
            (2) finding solutions for those problems.

              PART II--RESEARCH, EDUCATION, AND ECONOMICS

SEC. 7511. RESEARCH, EDUCATION, AND ECONOMICS.

    (a) In General.--Section 251 of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) is 
amended--
            (1) in subsection (a), by inserting ``(referred to 
        in this section as the `Under Secretary')'' before the 
        period at the end;
            (2) by striking subsections (b) through (d);
            (3) by redesignating subsection (e) as subsection 
        (g); and
            (4) by inserting after subsection (a) the 
        following:
    ``(b) Confirmation Required.--The Under Secretary shall be 
appointed by the President, by and with the advice and consent 
of the Senate, from among distinguished scientists with 
specialized training or significant experience in agricultural 
research, education, and economics.
    ``(c) Chief Scientist.--The Under Secretary shall--
            ``(1) hold the title of Chief Scientist of the 
        Department; and
            ``(2) be responsible for the coordination of the 
        research, education, and extension activities of the 
        Department.
    ``(d) Functions of Under Secretary.--
            ``(1) Principal function.--The Secretary shall 
        delegate to the Under Secretary those functions and 
        duties under the jurisdiction of the Department that 
        relate to research, education, and economics.
            ``(2) Specific functions and duties.--The Under 
        Secretary shall--
                    ``(A) identify, address, and prioritize 
                current and emerging agricultural research, 
                education, and extension needs (including 
                funding);
                    ``(B) ensure that agricultural research, 
                education, and extension programs are 
                effectively coordinated and integrated--
                            ``(i) across disciplines, agencies, 
                        and institutions; and
                            ``(ii) among applicable 
                        participants, grantees, and 
                        beneficiaries;
                    ``(C) promote the collaborative use of all 
                agricultural research, education, and extension 
                resources from the local, State, tribal, 
                regional, national, and international levels to 
                address priority needs; and
                    ``(D) foster communication among 
                agricultural research, education, and extension 
                beneficiaries, including the public, to ensure 
                the delivery of agricultural research, 
                education, and extension knowledge.
            ``(3) Additional functions.--The Under Secretary 
        shall perform such other functions and duties as may be 
        required by law or prescribed by the Secretary.
    ``(e) Research, Education, and Extension Office.--
            ``(1) Establishment.--The Under Secretary shall 
        organize within the office of the Under Secretary 6 
        Divisions, to be known collectively as the `Research, 
        Education, and Extension Office', which shall 
        coordinate the research programs and activities of the 
        Department.
            ``(2) Division designations.--The Divisions within 
        the Research, Education, and Extension Office shall be 
        as follows:
                    ``(A) Renewable energy, natural resources, 
                and environment.
                    ``(B) Food safety, nutrition, and health.
                    ``(C) Plant health and production and plant 
                products.
                    ``(D) Animal health and production and 
                animal products.
                    ``(E) Agricultural systems and technology.
                    ``(F) Agricultural economics and rural 
                communities.
            ``(3) Division chiefs.--
                    ``(A) Selection.--The Under Secretary shall 
                select a Division Chief for each Division using 
                available personnel authority under title 5, 
                United States Code, including--
                            ``(i) by term, temporary, or other 
                        appointment, without regard to--
                                    ``(I) the provisions of 
                                title 5, United States Code, 
                                governing appointments in the 
                                competitive service;
                                    ``(II) the provisions of 
                                subchapter I of chapter 35 of 
                                title 5, United States Code, 
                                relating to retention 
                                preference; and
                                    ``(III) the provisions of 
                                chapter 51 and subchapter III 
                                of chapter 53 of title 5, 
                                United States Code, relating to 
                                classification and General 
                                Schedule pay rates;
                            ``(ii) by detail, notwithstanding 
                        any Act making appropriations for the 
                        Department of Agriculture, whether 
                        enacted before, on, or after the date 
                        of enactment of this paragraph, 
                        requiring reimbursement for those 
                        details unless the appropriation Act 
                        specifically refers to this subsection 
                        and specifically includes these 
                        details;
                            ``(iii) by reassignment or transfer 
                        from any other civil service position; 
                        and
                            ``(iv) by an assignment under 
                        subchapter VI of chapter 33 of title 5, 
                        United States Code.
                    ``(B) Selection guidelines.--To the maximum 
                extent practicable, the Under Secretary shall 
                select Division Chiefs under subparagraph (A) 
                in a manner that--
                            ``(i) promotes leadership and 
                        professional development;
                            ``(ii) enables personnel to 
                        interact with other agencies of the 
                        Department; and
                            ``(iii) maximizes the ability of 
                        the Under Secretary to allow for 
                        rotations of Department personnel into 
                        the position of Division Chief.
                    ``(C) Term of service.--Notwithstanding 
                title 5, United States Code, the maximum length 
                of service for an individual selected as a 
                Division Chief under subparagraph (A) shall not 
                exceed 4 years.
                    ``(D) Qualifications.--To be eligible for 
                selection as a Division Chief, an individual 
                shall have--
                            ``(i) conducted exemplary research, 
                        education, or extension in the field of 
                        agriculture or forestry; and
                            ``(ii) earned an advanced degree at 
                        an institution of higher education (as 
                        defined in section 101 of the Higher 
                        Education Act of 1965 (20 U.S.C. 
                        1001)).
                    ``(E) Duties of division chiefs.--Except as 
                otherwise provided in this Act, each Division 
                Chief shall--
                            ``(i) assist the Under Secretary in 
                        identifying and addressing emerging 
                        agricultural research, education, and 
                        extension needs;
                            ``(ii) assist the Under Secretary 
                        in identifying and prioritizing 
                        Department-wide agricultural research, 
                        education, and extension needs, 
                        including funding;
                            ``(iii) assess the strategic 
                        workforce needs of the research, 
                        education, and extension functions of 
                        the Department, and develop strategic 
                        workforce plans to ensure that existing 
                        and future workforce needs are met;
                            ``(iv) communicate with research, 
                        education, and extension beneficiaries, 
                        including the public, and 
                        representatives of the research, 
                        education, and extension system, 
                        including the National Agricultural 
                        Research, Extension, Education, and 
                        Economics Advisory Board, to promote 
                        the benefits of agricultural research, 
                        education, and extension;
                            ``(v) assist the Under Secretary in 
                        preparing and implementing the roadmap 
                        for agricultural research, education, 
                        and extension, as described in section 
                        7504 of the Food, Conservation, and 
                        Energy Act of 2008; and
                            ``(vi) perform such other duties as 
                        the Under Secretary may determine.
            ``(4) General administration.--
                    ``(A) Funding.--Notwithstanding any Act 
                making appropriations for the Department of 
                Agriculture, whether enacted before, on, or 
                after the date of enactment of this paragraph 
                unless the appropriation Act specifically 
                refers to this subsection and specifically 
                includes the administration of funds under this 
                section, the Secretary may transfer funds made 
                available to an agency in the research, 
                education, and economics mission area to fund 
                the costs of Division personnel.
                    ``(B) Limitation.--To the maximum extent 
                practicable--
                            ``(i) the Under Secretary shall 
                        minimize the number of full-time 
                        equivalent positions in the Divisions; 
                        and
                            ``(ii) at no time shall the 
                        aggregate number of staff for all 
                        Divisions exceed 30 full-time 
                        equivalent positions.
                    ``(C) Rotation of personnel.--To the 
                maximum extent practicable, and using the 
                authority described in paragraph (3)(A), the 
                Under Secretary shall rotate personnel among 
                the Divisions, and between the Divisions and 
                agencies of the Department, in a manner that--
                            ``(i) promotes leadership and 
                        professional development; and
                            ``(ii) enables personnel to 
                        interact with other agencies of the 
                        Department.
            ``(5) Organization.--The Under Secretary shall 
        integrate leadership functions of the national program 
        staff of the research agencies into the Research, 
        Education and Extension Office in such form as is 
        required to ensure that administrative duplication does 
        not occur.
    ``(f) National Institute of Food and Agriculture.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Advisory board.--The term `Advisory 
                Board' means the National Agricultural 
                Research, Extension, Education, and Economics 
                Advisory Board established under section 1408 
                of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3123).
                    ``(B) Applied research.--The term `applied 
                research' means research that includes 
                expansion of the findings of fundamental 
                research to uncover practical ways in which new 
                knowledge can be advanced to benefit 
                individuals and society.
                    ``(C) Capacity and infrastructure 
                program.--The term `capacity and infrastructure 
                program' means each of the following 
                agricultural research, extension, education, 
                and related programs for which the Secretary 
                has administrative or other authority as of the 
                day before the date of enactment of the Food, 
                Conservation, and Energy Act of 2008:
                            ``(i) Each program providing 
                        funding to any of the 1994 Institutions 
                        under sections 533, 534(a), and 535 of 
                        the Equity in Educational Land-Grant 
                        Status Act of 1994 (7 U.S.C. 301 note; 
                        Public Law 103-382).
                            ``(ii) The program established 
                        under section 536 of the Equity in 
                        Educational Land-Grant Status Act of 
                        1994 (7 U.S.C. 301 note; Public Law 
                        103-382) providing research grants for 
                        1994 Institutions.
                            ``(iii) Each program established 
                        under subsections (b) and (c) of 
                        section 3 of the Smith-Lever Act (7 
                        U.S.C. 343).
                            ``(iv) Each program established 
                        under the Hatch Act of 1887 (7 U.S.C. 
                        361a et seq.).
                            ``(v) Each program established 
                        under section 1417(b) of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977 (7 U.S.C. 
                        3152(b)).
                            ``(vi) The animal health and 
                        disease research program established 
                        under subtitle E of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977 (7 U.S.C. 
                        3191 et seq.).
                            ``(vii) Each extension program 
                        available to 1890 Institutions 
                        established under section 1444 of the 
                        National Agricultural Research, 
                        Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3221).
                            ``(viii) The program established 
                        under section 1445 of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977 (7 U.S.C. 
                        3222).
                            ``(ix) The program providing grants 
                        to upgrade agricultural and food 
                        sciences facilities at 1890 
                        Institutions established under section 
                        1447 of the National Agricultural 
                        Research, Extension, and Teaching 
                        Policy Act of 1977 (7 U.S.C. 3222b).
                            ``(x) The program providing 
                        distance education grants for insular 
                        areas established under section 1490 of 
                        the National Agricultural Research, 
                        Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3362).
                            ``(xi) The program providing 
                        resident instruction grants for insular 
                        areas established under section 1491 of 
                        the National Agricultural Research, 
                        Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3363).
                            ``(xii) Each research and 
                        development and related program 
                        established under Public Law 87-788 
                        (commonly known as the `McIntire-
                        Stennis Cooperative Forestry Act') (16 
                        U.S.C. 582a et seq.).
                            ``(xiii) Each program established 
                        under the Renewable Resources Extension 
                        Act of 1978 (16 U.S.C. 1671 et seq.).
                            ``(xiv) Each program providing 
                        funding to Hispanic-serving 
                        agricultural colleges and universities 
                        under section 1456 of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977.
                            ``(xv) The program providing 
                        capacity grants to NLGCA Institutions 
                        under section 1473F of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977.
                            ``(xvi) Other programs that are 
                        capacity and infrastructure programs, 
                        as determined by the Secretary.
                    ``(D) Competitive program.--The term 
                `competitive program' means each of the 
                following agricultural research, extension, 
                education, and related programs for which the 
                Secretary has administrative or other authority 
                as of the day before the date of enactment of 
                the Food, Conservation, and Energy Act of 2008:
                            ``(i) The Agriculture and Food 
                        Research Initiative established under 
                        section 2(b) of the Competitive, 
                        Special, and Facilities Research Grant 
                        Act (7 U.S.C. 450i(b)).
                            ``(ii) The program providing 
                        competitive grants for risk management 
                        education established under section 
                        524(a)(3) of the Federal Crop Insurance 
                        Act (7 U.S.C. 1524(a)(3)).
                            ``(iii) The program providing 
                        community food project competitive 
                        grants established under section 25 of 
                        the Food and Nutrition Act of 2008 (7 
                        U.S.C. 2034).
                            ``(iv) The program providing grants 
                        for beginning farmer and rancher 
                        development established under section 
                        7405 of the Farm Security and Rural 
                        Investment Act of 2002 (7 U.S.C. 
                        3319f).
                            ``(v) The program providing grants 
                        under section 1417(j) of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977 (7 U.S.C. 
                        3152(j)).
                            ``(vi) The program providing grants 
                        for Hispanic-serving institutions 
                        established under section 1455 of the 
                        National Agricultural Research, 
                        Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3241).
                            ``(vii) The program providing 
                        competitive grants for international 
                        agricultural science and education 
                        programs under section 1459A of the 
                        National Agricultural Research, 
                        Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3292b).
                            ``(viii) The research and extension 
                        projects carried out under section 1621 
                        of the Food, Agriculture, Conservation, 
                        and Trade Act of 1990 (7 U.S.C. 5811).
                            ``(ix) The organic agriculture 
                        research and extension initiative 
                        established under section 1672B of the 
                        Food, Agriculture, Conservation, and 
                        Trade Act of 1990 (7 U.S.C. 5925b).
                            ``(x) The specialty crop research 
                        initiative under section 412 of the 
                        Agricultural Research, Extension, and 
                        Education Reform Act of 1998.
                            ``(xi) The administration and 
                        management of the Agricultural 
                        Bioenergy Feedstock and Energy 
                        Efficiency Research and Extension 
                        Initiative carried out under section 
                        1672C of the Food, Agriculture, 
                        Conservation, and Trade Act of 1990.
                            ``(xii) The research, extension, 
                        and education programs authorized by 
                        section 407 of the Agricultural 
                        Research, Extension, and Education 
                        Reform Act of 1998 (7 U.S.C. 7627) 
                        relating to the competitiveness, 
                        viability and sustainability of small- 
                        and medium-sized dairy, livestock, and 
                        poultry operations.
                            ``(xiii) Other programs that are 
                        competitive programs, as determined by 
                        the Secretary.
                    ``(E) Director.--The term `Director' means 
                the Director of the Institute.
                    ``(F) Fundamental research.--The term 
                `fundamental research' means research that--
                            ``(i) increases knowledge or 
                        understanding of the fundamental 
                        aspects of phenomena and has the 
                        potential for broad application; and
                            ``(ii) has an effect on 
                        agriculture, food, nutrition, or the 
                        environment.
                    ``(G) Institute.--The term `Institute' 
                means the National Institute of Food and 
                Agriculture established by paragraph (2)(A).
            ``(2) Establishment of national institute of food 
        and agriculture.--
                    ``(A) Establishment.--The Secretary shall 
                establish within the Department an agency to be 
                known as the `National Institute of Food and 
                Agriculture'.
                    ``(B) Transfer of authorities.--The 
                Secretary shall transfer to the Institute, 
                effective not later than October 1, 2009, the 
                authorities (including all budget authorities, 
                available appropriations, and personnel), 
                duties, obligations, and related legal and 
                administrative functions prescribed by law or 
                otherwise granted to the Secretary, the 
                Department, or any other agency or official of 
                the Department under--
                            ``(i) the capacity and 
                        infrastructure programs;
                            ``(ii) the competitive programs;
                            ``(iii) the research, education, 
                        economic, cooperative State research 
                        programs, cooperative extension and 
                        education programs, international 
                        programs, and other functions and 
                        authorities delegated by the Under 
                        Secretary to the Administrator of the 
                        Cooperative State Research, Education, 
                        and Extension Service pursuant to 
                        section 2.66 of title 7, Code of 
                        Federal Regulations (or successor 
                        regulations); and
                            ``(iv) any and all other 
                        authorities administered by the 
                        Administrator of the Cooperative State 
                        Research, Education, and Extension 
                        Service.
            ``(3) Director.--
                    ``(A) In general.--The Institute shall be 
                headed by a Director, who shall be an 
                individual who is--
                            ``(i) a distinguished scientist; 
                        and
                            ``(ii) appointed by the President.
                    ``(B) Supervision.--The Director shall 
                report directly to the Secretary, or the 
                designee of the Secretary.
                    ``(C) Functions of the director.--The 
                Director shall--
                            ``(i) serve for a 6-year term, 
                        subject to reappointment for an 
                        additional 6-year term;
                            ``(ii) periodically report to the 
                        Secretary, or the designee of the 
                        Secretary, with respect to activities 
                        carried out by the Institute; and
                            ``(iii) consult regularly with the 
                        Secretary, or the designee of the 
                        Secretary, to ensure, to the maximum 
                        extent practicable, that--
                                    ``(I) research of the 
                                Institute is relevant to 
                                agriculture in the United 
                                States and otherwise serves the 
                                national interest; and
                                    ``(II) the research of the 
                                Institute supplements and 
                                enhances, and does not 
                                supplant, research conducted or 
                                funded by other Federal 
                                agencies.
                    ``(D) Compensation.--The Director shall 
                receive basic pay at a rate not to exceed the 
                maximum amount of compensation payable to a 
                member of the Senior Executive Service under 
                subsection (b) of section 5382 of title 5, 
                United States Code, except that the 
                certification requirement in that subsection 
                shall not apply to the compensation of the 
                Director.
                    ``(E) Authority and responsibilities of 
                director.--Except as otherwise specifically 
                provided in this subsection, the Director 
                shall--
                            ``(i) exercise all of the authority 
                        provided to the Institute by this 
                        subsection;
                            ``(ii) formulate and administer 
                        programs in accordance with policies 
                        adopted by the Institute, in 
                        coordination with the Under Secretary;
                            ``(iii) establish offices within 
                        the Institute;
                            ``(iv) establish procedures for the 
                        provision and administration of grants 
                        by the Institute; and
                            ``(v) consult regularly with the 
                        Advisory Board.
            ``(4) Regulations.--The Institute shall have such 
        authority as is necessary to carry out this subsection, 
        including the authority to promulgate such regulations 
        as the Institute considers to be necessary for 
        governance of operations, organization, and personnel.
            ``(5) Administration.--
                    ``(A) In general.--The Director shall 
                organize offices and functions within the 
                Institute to administer fundamental and applied 
                research and extension and education programs.
                    ``(B) Research priorities.--The Director 
                shall ensure the research priorities 
                established by the Under Secretary through the 
                Research, Education and Extension Office are 
                carried out by the offices and functions of the 
                Institute, where applicable.
                    ``(C) Fundamental and applied research.--
                The Director shall--
                            ``(i) determine an appropriate 
                        balance between fundamental and applied 
                        research programs and functions to 
                        ensure future research needs are met; 
                        and
                            ``(ii) designate staff, as 
                        appropriate, to assist in carrying out 
                        this subparagraph.
                    ``(D) Competitively funded awards.--The 
                Director shall--
                            ``(i) promote the use and growth of 
                        grants awarded through a competitive 
                        process; and
                            ``(ii) designate staff, as 
                        appropriate, to assist in carrying out 
                        this subparagraph.
                    ``(E) Coordination.--The Director shall 
                ensure that the offices and functions 
                established under subparagraph (A) are 
                effectively coordinated for maximum efficiency.
            ``(6) Funding.--
                    ``(A) In general.--In addition to funds 
                otherwise appropriated to carry out each 
                program administered by the Institute, there 
                are authorized to be appropriated such sums as 
                are necessary to carry out this subsection for 
                each fiscal year.
                    ``(B) Allocation.--Funding made available 
                under subparagraph (A) shall be allocated 
                according to recommendations contained in the 
                roadmap described in section 7504 of the Food, 
                Conservation, and Energy Act of 2008.''.
    (b) Functions.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is 
amended--
            (1) in paragraph (4), by striking ``or'' at the 
        end;
            (2) in paragraph (5), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(6) the authority of the Secretary to establish 
        in the Department, under section 251--
                    ``(A) the position of Under Secretary of 
                Agriculture for Research, Education, and 
                Economics;
                    ``(B) the Research, Education, and 
                Extension Office; and
                    ``(C) the National Institute of Food and 
                Agriculture.''.
    (c) Conforming Amendments.--The following conforming 
amendments shall take effect on October 1, 2009:
            (1) Section 522(d)(2) of the Federal Crop Insurance 
        Act (7 U.S.C. 1522(d)(2)) is amended by striking ``the 
        Cooperative State Research, Education, and Extension 
        Service'' and inserting ``the National Institute of 
        Food and Agriculture''.
            (2) Section 524(a) of the Federal Crop Insurance 
        Act (7 U.S.C. 1524(a)) is amended in each of paragraphs 
        (1)(B) and (3)(A) by striking ``the Cooperative State 
        Research, Education, and Extension Service'' each place 
        it appears and inserting ``the National Institute of 
        Food and Agriculture''.
            (3) Section 306(a)(11)(C) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1926(a)(11)(C)) is 
        amended by striking ``the Cooperative State Research, 
        Education, and Extension Service'' and inserting ``the 
        National Institute of Food and Agriculture''.
            (4) Section 5(b)(2)(E) of the Agricultural Credit 
        Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 
        102-554) is amended by striking ``Cooperative Extension 
        Service'' and inserting ``National Institute of Food 
        and Agriculture''.
            (5) Section 11(f)(1) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2020(f)(1)) is amended by striking 
        ``Cooperative Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (6) Section 502(h) of the Rural Development Act of 
        1972 (7 U.S.C. 2662(h)) is amended--
                    (A) in paragraph (1), by striking 
                ``Extension Service'' and inserting ``National 
                Institute of Food and Agriculture''; and
                    (B) in paragraph (4), by striking 
                ``Extension Service staff'' and inserting 
                ``National Institute of Food and Agriculture 
                staff''.
            (7) Section 7404(b)(1)(B) of the Farm Security and 
        Rural Investment Act of 2002 (7 U.S.C. 3101 note; 
        Public Law 107-171) is amended by striking clause (vi) 
        and inserting the following:
                            ``(vi) the National Institute of 
                        Food and Agriculture.''.
            (8) Section 1408(b)(4) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3123(b)(4)) is amended by striking ``the 
        Administrator of the Cooperative State Research, 
        Education, and Extension Service'' and inserting ``the 
        Director of the National Institute of Food and 
        Agriculture''.
            (9) Section 2381(a) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 3125b(a)) 
        is amended by striking ``Extension Service'' and 
        inserting ``National Institute of Food and 
        Agriculture''.
            (10) The National Agricultural Research, Extension, 
        and Teaching Policy Act of 1977 is amended--
                    (A) in section 1424A(b) (7 U.S.C. 
                3174a(b)), by striking ``the Cooperative State 
                Research, Education, and Extension Service'' 
                and inserting ``the National Institute of Food 
                and Agriculture''; and
                    (B) in section 1458(a)(10) (7 U.S.C. 
                3291(a)(10)), by striking ``the Cooperative 
                State Research, Education, and Extension 
                Service'' and inserting ``the National 
                Institute of Food and Agriculture''.
            (11) Section 1587(a) of the Food Security Act of 
        1985 (7 U.S.C. 3175d(a)) is amended by striking 
        ``Extension Service'' each place it appears and 
        inserting ``National Institute of Food and 
        Agriculture''.
            (12) Section 1444(b)(2)(A) of the National 
        Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3221(b)(2)(A)) is amended by 
        striking ``Extension Service'' and inserting ``National 
        Institute of Food and Agriculture''.
            (13) Section 1473D(d) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3319d(d)) is amended by striking ``the 
        Cooperative State Research Service, the Extension 
        Service'' and inserting ``the National Institute of 
        Food and Agriculture''.
            (14) Section 1499(c) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5506(c)) 
        is amended by striking ``the Cooperative State Research 
        Service'' and all that follows through ``extension 
        services;'' and inserting ``the National Institute of 
        Food and Agriculture, in conjunction with the system of 
        State agricultural experiment stations and State and 
        county cooperative extension services; the Economic 
        Research Service;''.
            (15) Section 1622 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is 
        amended--
                    (A) in subsection (a)(1), by striking ``the 
                Cooperative State Research Service in close 
                cooperation with the Extension Service'' and 
                inserting ``the National Institute of Food and 
                Agriculture'';
                    (B) in subsection (b)(1)--
                            (i) by striking subparagraphs (B) 
                        and (C) and inserting the following:
                    ``(B) the National Institute of Food and 
                Agriculture;''; and
                            (ii) by redesignating subparagraphs 
                        (D) through (L) as subparagraphs (C) 
                        through (K), respectively.
            (16) Section 1627(d) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5821(d)) 
        is amended by striking ``Extension Service'' and 
        inserting ``National Institute of Food and 
        Agriculture''.
            (17) Section 1629 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5832) is 
        amended--
                    (A) in subsection (b), in the first 
                sentence, by striking ``the Extension Service'' 
                and inserting ``the National Institute of Food 
                and Agriculture''; and
                    (B) in subsection (h), by striking 
                ``Extension Service'' and inserting ``National 
                Institute of Food and Agriculture''.
            (18) Section 1638(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5852(b)) 
        is amended--
                    (A) in paragraph (3), by striking 
                ``Cooperative State Research Service'' and 
                inserting ``National Institute of Food and 
                Agriculture''; and
                    (B) in paragraph (5), by striking 
                ``Cooperative State Research Service'' and 
                inserting ``National Institute of Food and 
                Agriculture''.
            (19) Section 1640(a)(2) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 
        5854(a)(2)) is amended by striking ``the Administrator 
        of the Extension Service, the Administrator of the 
        Cooperative State Research Service'' and inserting 
        ``the Director of the National Institute of Food and 
        Agriculture''.
            (20) Section 1641(a) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5855(a)) 
        is amended--
                    (A) in paragraph (2), by striking 
                ``Cooperative State Research Service'' and 
                inserting ``National Institute of Food and 
                Agriculture''; and
                    (B) in paragraph (4,) by striking 
                ``Extension Service'' and inserting ``National 
                Institute of Food and Agriculture''.
            (21) Section 1668(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5921(b)) 
        is amended by striking ``Cooperative State Research, 
        Education, and Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (22) Section 1670(a)(4) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 
        5923(a)(4)) is amended by striking ``the Administrator 
        of the Cooperative State Research, Education, and 
        Extension Service'' and inserting ``the Director of the 
        National Institute of Food and Agriculture''.
            (23) Section 1677(a) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5930(a)) 
        is amended by striking ``Extension Service'' and 
        inserting ``National Institute of Food and 
        Agriculture''.
            (24) Section 2122(b)(1) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 
        6521(b)(1)) is amended by striking ``Extension 
        Service'' and inserting ``National Institute of Food 
        and Agriculture''.
            (25) Section 2371 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 6601) is 
        amended--
                    (A) in subsection (a), by striking 
                ``Extension Service'' and inserting ``National 
                Institute of Food and Agriculture''; and
                    (B) in subsection (c)(3), by striking 
                ``Service'' and inserting ``System''.
            (26) Section 2377(a) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 6615(a)) 
        is amended by striking ``Extension Service'' and 
        inserting ``National Institute of Food and 
        Agriculture''.
            (27) Section 212(a)(2)(A) of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 
        6912(a)(2)(A)) is amended by striking ``251(d),'' and 
        inserting ``251(f),''.
            (28) Section 537 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7446) is 
        amended in each of subsections (a)(2) and (b)(3)(B)(i) 
        by striking ``Cooperative State Research, Education, 
        and Extension Service'' and inserting ``cooperative 
        extension''.
            (29) Section 101(b)(2) of the Agricultural 
        Research, Extension, and Education Reform Act of 1998 
        (7 U.S.C. 7611(b)(2)) is amended by striking 
        ``Cooperative State Research, Education, and Extension 
        Service'' and inserting ``National Institute of Food 
        and Agriculture''.
            (30) Section 103(a) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7613(a)) is amended--
                    (A) in the subsection heading, by striking 
                ``Cooperative State Research, Education, and 
                Extension Service'' and inserting ``National 
                Institute of Food and Agriculture''; and
                    (B) in each of paragraphs (1) and (2)(A), 
                by striking ``the Cooperative State Research, 
                Education, and Extension Service'' and 
                inserting ``the National Institute of Food and 
                Agriculture''.
            (31) Section 407(c) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7627(c)) is amended by striking ``the Cooperative State 
        Research, Education, and Extension Service'' and 
        inserting ``the National Institute of Food and 
        Agriculture''.
            (32) Section 410(a) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7630(a)) is amended by striking ``the Administrator of 
        the Cooperative State Research, Education, and 
        Extension Service'' and inserting ``the Director of the 
        National Institute of Food and Agriculture''.
            (33) Section 307(g)(5) of the Agricultural Risk 
        Protection Act of 2000 (7 U.S.C. 8606(g)(5)) is amended 
        by striking ``Administrator of the Cooperative State 
        Research, Education, and Extension Service'' and 
        inserting ``Director of the National Institute of Food 
        and Agriculture''.
            (34) Section 5(a) of the Renewable Resources 
        Extension Act of 1978 (16 U.S.C. 1674a(a)) is amended 
        by striking ``Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (35) Section 6(b) of the Cooperative Forestry 
        Assistance Act of 1978 (16 U.S.C. 2103b(b)) is amended 
        by striking ``the Cooperative State Research, 
        Education, and Extension Service, may provide 
        technical, financial, and related assistance to State 
        foresters, equivalent State officials, or Cooperative 
        Extension officials'' and inserting ``the National 
        Institute of Food and Agriculture, may provide 
        technical, financial, and related assistance to State 
        foresters, equivalent State officials, or cooperative 
        extension officials''.
            (36) Section 9(g)(2)(A)(viii) of the Cooperative 
        Forestry Assistance Act of 1978 (16 U.S.C. 
        2105(g)(2)(A)(viii)) is amended by striking ``Extension 
        Service'' and inserting ``National Institute of Food 
        and Agriculture''.
            (37) Section 19(b)(1)(B)(i) of the Cooperative 
        Forestry Assistance Act of 1978 (16 U.S.C. 
        2113(b)(1)(B)(i)) is amended by striking ``Extension 
        Service'' and inserting ``National Institute of Food 
        and Agriculture''.
            (38) Section 1261(c)(4) of the Food Security Act of 
        1985 (16 U.S.C. 3861(c)(4)) is amended by striking 
        ``Extension Service'' and inserting ``National 
        Institute of Food and Agriculture''.
            (39) Section 105(a) of the Africa: Seeds of Hope 
        Act of 1998 (22 U.S.C. 2293 note; Public Law 105-385) 
        is amended by striking ``the Cooperative State, 
        Research, Education, and Extension Service (CSREES)'' 
        and inserting ``the National Institute of Food and 
        Agriculture''.
            (40) Section 307(a)(4) of the National Aeronautic 
        and Space Administration Authorization Act of 2005 (42 
        U.S.C. 16657(a)(4)) is amended by striking subparagraph 
        (B) and inserting the following:
                    ``(B) the program and structure of, peer 
                review process of, management of conflicts of 
                interest by, compensation of reviewers of, and 
                the effects of compensation on reviewer 
                efficiency and quality within, the National 
                Institute of Food and Agriculture of the 
                Department of Agriculture;''.

               PART III--NEW GRANT AND RESEARCH PROGRAMS

SEC. 7521. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF ANTIBIOTIC-
                    RESISTANT BACTERIA.

    (a) In General.--The Secretary shall provide research and 
education grants, on a competitive basis--
            (1) to study the development of antibiotic-
        resistant bacteria, including--
                    (A) movement of antibiotic-resistant 
                bacteria into groundwater and surface water; 
                and
                    (B) the effect on antibiotic resistance 
                from various drug use regimens; and
            (2) to study and ensure the judicious use of 
        antibiotics in veterinary and human medicine, 
        including--
                    (A) methods and practices of animal 
                husbandry;
                    (B) safe and effective alternatives to 
                antibiotics;
                    (C) the development of better veterinary 
                diagnostics to improve decisionmaking; and
                    (D) the identification of conditions or 
                factors that affect antibiotic use on farms.
    (b) Administration.--Paragraphs (4), (7), (8), and (11)(B) 
of subsection (b) of the Competitive, Special, and Facilities 
Research Grant Act (7 U.S.C. 450i) shall apply with respect to 
the making of grants under this section.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012.

SEC. 7522. FARM AND RANCH STRESS ASSISTANCE NETWORK.

    (a) In General.--The Secretary, in coordination with the 
Secretary of Health and Human Services, shall make competitive 
grants to support cooperative programs between State 
cooperative extension services and nonprofit organizations to 
establish a Farm and Ranch Stress Assistance Network that 
provides stress assistance programs to individuals who are 
engaged in farming, ranching, and other agriculture-related 
occupations.
    (b) Eligible Programs.--Grants awarded under subsection (a) 
may be used to initiate, expand, or sustain programs that 
provide professional agricultural behavioral health counseling 
and referral for other forms of assistance as necessary 
through--
            (1) farm telephone helplines and websites;
            (2) community education;
            (3) support groups;
            (4) outreach services and activities; and
            (5) home delivery of assistance, in a case in which 
        a farm resident is homebound.
    (c) Extension Services.--Grants shall be awarded under this 
subsection directly to State cooperative extension services to 
enable the State cooperative extension services to enter into 
contracts, on a multiyear basis, with nonprofit, community-
based, direct-service organizations to initiate, expand, or 
sustain cooperative programs described in subsections (a) and 
(b).
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012.

SEC. 7523. SEED DISTRIBUTION.

    (a) In General.--The Secretary shall make competitive 
grants to eligible entities to carry out a seed distribution 
program to administer and maintain the distribution of 
vegetable seeds donated by commercial seed companies.
    (b) Purposes.--The purposes of this program include--
            (1) the distribution of seeds donated by commercial 
        seed companies free-of-charge to appropriate--
                    (A) individuals;
                    (B) groups;
                    (C) institutions;
                    (D) governmental and nongovernmental 
                organizations; and
                    (E) such other entities as the Secretary 
                may designate;
            (2) distribution of seeds to underserved 
        communities, such as communities that experience--
                    (A) limited access to affordable fresh 
                vegetables;
                    (B) a high rate of hunger or food 
                insecurity; or
                    (C) severe or persistent poverty.
    (c) Administration.--Paragraphs (4), (7), (8), and (11)(B) 
of subsection (b) of the Competitive, Special, and Facilities 
Research Grant Act (7 U.S.C. 450i) shall apply with respect to 
the making of grants under this section.
    (d) Selection.--An eligible entity selected to receive a 
grant under subsection (a) shall have--
            (1) expertise regarding the distribution of 
        vegetable seeds donated by commercial seed companies; 
        and
            (2) the ability to achieve the purpose of the seed 
        distribution program.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012.

SEC. 7524. LIVE VIRUS FOOT AND MOUTH DISEASE RESEARCH.

    (a) In General.--The Secretary shall issue a permit 
required under section 12 of the Act of May 29, 1884 (21 U.S.C. 
113a), to the Secretary of Homeland Security for work on the 
live virus of foot and mouth disease at any facility that is a 
successor to the Plum Island Animal Disease Center and charged 
with researching high-consequence biological threats involving 
zoonotic and foreign animal diseases (referred to in this 
section as the ``successor facility'').
    (b) Limitation to Single Facility.--Not more than 1 
facility shall be issued a permit under subsection (a).
    (c) Limitation on Validity.--The permit issued under this 
section shall be valid unless the Secretary determines that the 
study of live foot and mouth disease virus at the successor 
facility is not being carried out in accordance with the 
regulations promulgated by the Secretary pursuant to the 
Agricultural Bioterrorism Protection Act of 2002 (7 U.S.C. 8401 
et seq.).
    (d) Authority.--The suspension, revocation, or other 
impairment of the permit issued under this section--
            (1) shall be made by the Secretary; and
            (2) is a nondelegable function.

SEC. 7525. NATURAL PRODUCTS RESEARCH PROGRAM.

    (a) In General.--The Secretary shall establish within the 
Department a natural products research program.
    (b) Duties.--In carrying out the program established under 
subsection (a), the Secretary shall coordinate research 
relating to natural products, including--
            (1) research to improve human health and 
        agricultural productivity through the discovery, 
        development, and commercialization of products and 
        agrichemicals from bioactive natural products, 
        including products from plant, marine, and microbial 
        sources;
            (2) research to characterize the botanical sources, 
        production, chemistry, and biological properties of 
        plant-derived natural products; and
            (3) other research priorities identified by the 
        Secretary.
    (c) Peer and Merit Review.--The Secretary shall--
            (1) determine the relevance and merit of research 
        under this section through a system of peer review 
        established by the Secretary pursuant to section 103 of 
        the Agricultural Research, Extension, and Education 
        Reform Act of 1998 (7 U.S.C. 7613); and
            (2) approve funding for research on the basis of 
        merit, quality, and relevance to advancing the purposes 
        of this section.
    (d) Buildings and Facilities.--Funds made available under 
this section shall not be used for the construction of a new 
building or facility or the acquisition, expansion, remodeling, 
or alteration of an existing building or facility (including 
site grading and improvement and architect fees).
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as are 
necessary for each of fiscal years 2008 through 2012.

SEC. 7526. SUN GRANT PROGRAM.

    (a) Establishment.--The Secretary shall establish and carry 
out a program to provide grants to the sun grant centers and 
subcenter specified in subsection (b)--
            (1) to enhance national energy security through the 
        development, distribution, and implementation of 
        biobased energy technologies;
            (2) to promote diversification in, and the 
        environmental sustainability of, agricultural 
        production in the United States through biobased energy 
        and product technologies;
            (3) to promote economic diversification in rural 
        areas of the United States through biobased energy and 
        product technologies; and
            (4) to enhance the efficiency of bioenergy and 
        biomass research and development programs through 
        improved coordination and collaboration among--
                    (A) the Department of Agriculture;
                    (B) the Department of Energy; and
                    (C) land-grant colleges and universities.
    (b) Grants.--
            (1) In general.--The Secretary shall use amounts 
        made available under subsection (g) to provide grants 
        to each of the following:
                    (A) North-central center.--A north-central 
                sun grant center at South Dakota State 
                University for the region composed of the 
                States of Illinois, Indiana, Iowa, Minnesota, 
                Montana, Nebraska, North Dakota, South Dakota, 
                Wisconsin, and Wyoming.
                    (B) Southeastern center.--A southeastern 
                sun grant center at the University of Tennessee 
                at Knoxville for the region composed of--
                            (i) the States of Alabama, Florida, 
                        Georgia, Kentucky, Mississippi, North 
                        Carolina, South Carolina, Tennessee, 
                        and Virginia;
                            (ii) the Commonwealth of Puerto 
                        Rico; and
                            (iii) the United States Virgin 
                        Islands.
                    (C) South-central center.--A south-central 
                sun grant center at Oklahoma State University 
                for the region composed of the States of 
                Arkansas, Colorado, Kansas, Louisiana, 
                Missouri, New Mexico, Oklahoma, and Texas.
                    (D) Western center.--A western sun grant 
                center at Oregon State University for the 
                region composed of--
                            (i) the States of Alaska, Arizona, 
                        California, Hawaii, Idaho, Nevada, 
                        Oregon, Utah, and Washington; and
                            (ii) insular areas (as defined in 
                        section 1404 of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977 (7 U.S.C. 
                        3103 (other than the insular areas 
                        referred to in clauses (ii) and (iii) 
                        of subparagraph (B))).
                    (E) Northeastern center.--A northeastern 
                sun grant center at Cornell University for the 
                region composed of the States of Connecticut, 
                Delaware, Massachusetts, Maryland, Maine, 
                Michigan, New Hampshire, New Jersey, New York, 
                Ohio, Pennsylvania, Rhode Island, Vermont, and 
                West Virginia.
                    (F) Western insular pacific subcenter.--A 
                western insular Pacific sun grant subcenter at 
                the University of Hawaii for the region of 
                Alaska, Hawaii, Guam, American Samoa, the 
                Commonwealth of the Northern Mariana Islands, 
                the Federated States of Micronesia, the 
                Republic of the Marshall Islands, and the 
                Republic of Palau.
            (2) Manner of distribution.--
                    (A) Centers.--In providing any funds made 
                available under subsection (g), the Secretary 
                shall distribute the grants in equal amounts to 
                the sun grant centers described in 
                subparagraphs (A) through (E) of paragraph (1).
                    (B) Subcenter.--The sun grant center 
                described in paragraph (1)(D) shall allocate a 
                portion of the funds received under paragraph 
                (1) to the subcenter described in paragraph 
                (1)(F) pursuant to guidance issued by the 
                Secretary.
            (3) Failure to comply with requirements.--If the 
        Secretary finds on the basis of a review of the annual 
        report required under subsection (f) or on the basis of 
        an audit of a sun grant center or subcenter conducted 
        by the Secretary that the center or subcenter has not 
        complied with the requirements of this section, the sun 
        grant center or subcenter shall be ineligible to 
        receive further grants under this section for such 
        period of time as may be prescribed by the Secretary.
    (c) Use of Funds.--
            (1) Competitive grants.--
                    (A) In general.--A sun grant center or 
                subcenter shall use 75 percent of the funds 
                described in subsection (b) to provide 
                competitive grants to entities that are--
                            (i) eligible to receive grants 
                        under subsection (b)(7) of the 
                        Competitive, Special, and Facilities 
                        Research Grant Act (7 U.S.C. 
                        450i(b)(7)); and
                            (ii) located in the region covered 
                        by the sun grant center or subcenter.
                    (B) Activities.--Grants described in 
                subparagraph (A) shall be used by the grant 
                recipient to conduct, in a manner consistent 
                with the purposes described in subsection (a), 
                multi-institutional and multistate--
                            (i) research, extension, and 
                        education programs on technology 
                        development; and
                            (ii) integrated research, 
                        extension, and education programs on 
                        technology implementation.
                    (C) Funding allocation.--Of the amount of 
                funds that is used to provide grants under 
                subparagraph (A), the sun grant center or 
                subcenter shall use--
                            (i) not less than 30 percent of the 
                        funds to carry out the programs 
                        described in subparagraph (B)(i); and
                            (ii) not less than 30 percent of 
                        the funds to carry out the programs 
                        described in subparagraph (B)(ii).
                    (D) Administration.--
                            (i) Peer and merit review.--In 
                        making grants under this paragraph, a 
                        sun grant center or subcenter shall--
                                    (I) seek and accept 
                                proposals for grants;
                                    (II) determine the 
                                relevance and merit of 
                                proposals through a system of 
                                peer review similar to that 
                                established by the Secretary 
                                pursuant to section 103 of the 
                                Agricultural Research, 
                                Extension, and Education Reform 
                                Act of 1998 (7 U.S.C. 7613); 
                                and
                                    (III) award grants on the 
                                basis of merit, quality, and 
                                relevance to advancing the 
                                purposes of this section.
                            (ii) Priority.--A sun grant center 
                        or subcenter shall give a higher 
                        priority to programs that are 
                        consistent with the plan approved by 
                        the Secretary under subsection (d).
                            (iii) Term.--A grant awarded by a 
                        sun grant center or subcenter shall 
                        have a term that does not exceed 5 
                        years.
                            (iv) Matching funds required.--
                                    (I) In general.--Except as 
                                provided in subclauses (II) and 
                                (III), as a condition of 
                                receiving a grant under this 
                                paragraph, the sun grant center 
                                or subcenter shall require that 
                                not less than 20 percent of the 
                                cost of an activity described 
                                in subparagraph (B) be matched 
                                with funds, including in-kind 
                                contributions, from a non-
                                Federal source.
                                    (II) Exclusion.--Subclause 
                                (I) shall not apply to 
                                fundamental research (as 
                                defined in subsection (f)(1) of 
                                section 251 of the Department 
                                of Agriculture Reorganization 
                                Act of 1994 (7 U.S.C. 6971) (as 
                                added by section 7511(a)(4)).
                                    (III) Reduction.--The sun 
                                grant center or subcenter may 
                                reduce or eliminate the 
                                requirement for non-Federal 
                                funds under subclause (I) for 
                                applied research (as defined in 
                                subsection (f)(1) of section 
                                251 of the Department of 
                                Agriculture Reorganization Act 
                                of 1994 (7 U.S.C. 6971) (as 
                                added by section 7511(a)(4)) if 
                                the sun grant center or 
                                subcenter determines that the 
                                reduction is necessary and 
                                appropriate pursuant to 
                                guidance issued by the 
                                Secretary.
                            (v) Buildings and facilities.--
                        Funds made available for grants shall 
                        not be used for the construction of a 
                        new building or facility or the 
                        acquisition, expansion, remodeling, or 
                        alteration of an existing building or 
                        facility (including site grading and 
                        improvement and architect fees).
                            (vi) Limitation on indirect 
                        costs.--A sun grant center or subcenter 
                        may not recover the indirect costs of 
                        making grants under subparagraph (A).
            (2) Administrative expenses.--A sun grant center or 
        subcenter may use up to 4 percent of the funds 
        described in subsection (b) to pay administrative 
        expenses incurred in carrying out paragraph (1).
            (3) Research, extension and educational 
        activities.--The sun grant centers and subcenter shall 
        use the remainder of the funds described in subsection 
        (b) to conduct, in a manner consistent with the 
        purposes described in subsection (a), multi-
        institutional and multistate--
                    (A) research, extension, and educational 
                programs on technology development; and
                    (B) integrated research, extension, and 
                educational programs on technology 
                implementation.
    (d) Plan for Research Activities To Be Funded.--
            (1) In general.--Subject to the availability of 
        funds under subsection (g), and in cooperation with 
        land-grant colleges and universities and private 
        industry in accordance with paragraph (2), the sun 
        grant centers and subcenter shall jointly develop and 
        submit to the Secretary for approval a plan for 
        addressing the bioenergy, biomass, and gasification 
        research priorities of the Department of Agriculture 
        and the Department of Energy at the State and regional 
        levels.
            (2) Gasification coordination.--With respect to 
        gasification research activity, the sun grant centers 
        and subcenter shall coordinate planning with land-grant 
        colleges and universities in their respective regions 
        that have ongoing research activities in that area.
            (3) Funding.--Funds described in subsection (c)(2) 
        shall be available to carry out planning coordination 
        under paragraph (1).
            (4) Use of plan.--The sun grant centers and 
        subcenter shall use the plan described in paragraph (1) 
        in making grants under subsection (c)(1).
    (e) Grant Information Analysis Center.--The sun grant 
centers and subcenter shall maintain a Sun Grant Information 
Analysis Center at the sun grant center specified in subsection 
(b)(1)(A) to provide the sun grant centers and subcenter with 
analysis and data management support.
    (f) Annual Reports.--Not later than 90 days after the end 
of each fiscal year, a sun grant center or subcenter receiving 
a grant under this section shall submit to the Secretary a 
report that describes the policies, priorities, and operations 
of the program carried out by the center or subcenter during 
the fiscal year, including--
            (1) the results of all peer and merit review 
        procedures conducted pursuant to subsection 
        (c)(1)(D)(i); and
            (2) a description of progress made in facilitating 
        the priorities described in subsection (d)(1).
    (g) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $75,000,000 for 
each of fiscal years 2008 through 2012, of which not more than 
$4,000,000 for each fiscal year shall be made available to 
carry out subsection (e).

SEC. 7527. STUDY AND REPORT ON FOOD DESERTS.

    (a) Definition of Food Desert.--In this section, the term 
``food desert'' means an area in the United States with limited 
access to affordable and nutritious food, particularly such an 
area composed of predominantly lower-income neighborhoods and 
communities.
    (b) Study and Report.--The Secretary shall carry out a 
study of, and prepare a report on, food deserts.
    (c) Contents.--The study and report shall--
            (1) assess the incidence and prevalence of food 
        deserts;
            (2) identify--
                    (A) characteristics and factors causing and 
                influencing food deserts; and
                    (B) the effect on local populations of 
                limited access to affordable and nutritious 
                food; and
            (3) provide recommendations for addressing the 
        causes and effects of food deserts through measures 
        that include--
                    (A) community and economic development 
                initiatives;
                    (B) incentives for retail food market 
                development, including supermarkets, small 
                grocery stores, and farmers' markets; and
                    (C) improvements to Federal food assistance 
                and nutrition education programs.
    (d) Coordination With Other Agencies and Organizations.--
The Secretary shall conduct the study under this section in 
coordination and consultation with--
            (1) the Secretary of Health and Human Services;
            (2) the Administrator of the Small Business 
        Administration;
            (3) the Institute of Medicine; and
            (4) representatives of appropriate businesses, 
        academic institutions, and nonprofit and faith-based 
        organizations.
    (e) Submission to Congress.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall submit 
to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate the report prepared under this section, including 
the findings and recommendations described in subsection (c).
    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $500,000.

SEC. 7528. DEMONSTRATION PROJECT AUTHORITY FOR TEMPORARY POSITIONS.

    Notwithstanding section 4703(d)(1) of title 5, United 
States Code, the amendment to the personnel management 
demonstration project established in the Department of 
Agriculture (67 Fed. Reg. 70776 (2002)), shall become effective 
upon the date of enactment of this Act and shall remain in 
effect unless modified by law.

SEC. 7529. AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH AND 
                    EDUCATION.

    (a) In General.--The Secretary, in consultation with the 
Secretary of Transportation, shall make competitive grants to 
institutions of higher education to carry out agricultural and 
rural transportation research and education activities.
    (b) Activities.--Research and education grants made under 
this section shall be used to address rural transportation and 
logistics needs of agricultural producers and related rural 
businesses, including--
            (1) the transportation of biofuels; and
            (2) the export of agricultural products.
    (c) Selection Criteria.--
            (1) In general.--The Secretary shall award grants 
        under this section on the basis of the transportation 
        research, education, and outreach expertise of the 
        applicant, as determined by the Secretary.
            (2) Priority.--In awarding grants under this 
        section, the Secretary shall give priority to 
        institutions of higher education for use in 
        coordinating research and education activities with 
        other institutions of higher education with similar 
        agricultural and rural transportation research and 
        education programs.
    (d) Diversification of Research.--The Secretary shall award 
grants under this section in areas that are regionally diverse 
and broadly representative of the diversity of agricultural 
production and related transportation needs in the rural areas 
of the United States.
    (e) Matching Funds Requirement.--The Secretary shall 
require each recipient of a grant under this section to 
provide, from non-Federal sources, in cash or in kind, 50 
percent of the cost of carrying out activities under the grant.
    (f) Grant Review.--A grant shall be awarded under this 
section on a competitive, peer- and merit-reviewed basis in 
accordance with section 103(a) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7613(a)).
    (g) No Duplication.--In awarding grants under this section, 
the Secretary shall ensure that activities funded under this 
section do not duplicate the efforts of the University 
Transportation Centers described in sections 5505 and 5506 of 
title 49, United States Code.
    (h) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $5,000,000 for 
each of fiscal years 2008 through 2012.

                          TITLE VIII--FORESTRY

 Subtitle A--Amendments to Cooperative Forestry Assistance Act of 1978

SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION.

    Section 2 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2101) is amended--
            (1) by redesignating subsections (c) and (d) as 
        subsections (e) and (f), respectively; and
            (2) by inserting after subsection (b) the following 
        new subsections:
    ``(c) Priorities.--In allocating funds appropriated or 
otherwise made available under this Act, the Secretary shall 
focus on the following national private forest conservation 
priorities, notwithstanding other priorities specified 
elsewhere in this Act:
            ``(1) Conserving and managing working forest 
        landscapes for multiple values and uses.
            ``(2) Protecting forests from threats, including 
        catastrophic wildfires, hurricanes, tornados, 
        windstorms, snow or ice storms, flooding, drought, 
        invasive species, insect or disease outbreak, or 
        development, and restoring appropriate forest types in 
        response to such threats.
            ``(3) Enhancing public benefits from private 
        forests, including air and water quality, soil 
        conservation, biological diversity, carbon storage, 
        forest products, forestry-related jobs, production of 
        renewable energy, wildlife, wildlife corridors and 
        wildlife habitat, and recreation.
    ``(d) Reporting Requirement.--Not later than September 30, 
2011, the Secretary shall submit to Congress a report 
describing how funds were used under this Act, and through 
other programs administered by the Secretary, to address the 
national priorities specified in subsection (c) and the 
outcomes achieved in meeting the national priorities.''.

SEC. 8002. LONG-TERM STATE-WIDE ASSESSMENTS AND STRATEGIES FOR FOREST 
                    RESOURCES.

    The Cooperative Forestry Assistance Act of 1978 is amended 
by inserting after section 2 (16 U.S.C. 2101) the following new 
section:

``SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.

    ``(a) Assessment and Strategies for Forest Resources.--For 
a State to be eligible to receive funds under the authorities 
of this Act, the State forester of that State or equivalent 
State official shall develop and submit to the Secretary, not 
later than two years after the date of enactment of the Food, 
Conservation, and Energy Act of 2008, the following:
            ``(1) A State-wide assessment of forest resource 
        conditions, including--
                    ``(A) the conditions and trends of forest 
                resources in that State;
                    ``(B) the threats to forest lands and 
                resources in that State consistent with the 
                national priorities specified in section 2(c);
                    ``(C) any areas or regions of that State 
                that are a priority; and
                    ``(D) any multi-State areas that are a 
                regional priority.
            ``(2) A long-term State-wide forest resource 
        strategy, including--
                    ``(A) strategies for addressing threats to 
                forest resources in the State outlined in the 
                assessment required by paragraph (1); and
                    ``(B) a description of the resources 
                necessary for the State forester or equivalent 
                State official from all sources to address the 
                State-wide strategy.
    ``(b) Updating.--At such times as the Secretary determines 
to be necessary, the State forester or equivalent State 
official shall update and resubmit to the Secretary the State-
wide assessment and State-wide strategy required by subsection 
(a).
    ``(c) Coordination.--In developing or updating the State-
wide assessment and State-wide strategy required by subsection 
(a), the State Forester or equivalent State official shall 
coordinate with--
            ``(1) the State Forest Stewardship Coordinating 
        Committee established for the State under section 
        19(b);
            ``(2) the State wildlife agency, with respect to 
        strategies contained in the State wildlife action 
        plans;
            ``(3) the State Technical Committee;
            ``(4) applicable Federal land management agencies; 
        and
            ``(5) for purposes of the Forest Legacy Program 
        under section 7, the State lead agency designated by 
        the Governor.
    ``(d) Incorporation of Other Plans.--In developing or 
updating the State-wide assessment and State-wide strategy 
required by subsection (a), the State forester or equivalent 
State official shall incorporate any forest management plan of 
the State, including community wildfire protection plans and 
State wildlife action plans.
    ``(e) Sufficiency.--Once approved by the Secretary, a 
State-wide assessment and State-wide strategy developed under 
subsection (a) shall be deemed to be sufficient to satisfy all 
relevant State planning and assessment requirements under this 
Act.
    ``(f) Funding.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this section 
        up to $10,000,000 for each of fiscal years 2008 through 
        2012.
            ``(2) Additional funding sources.--In addition to 
        the funds appropriated for a fiscal year pursuant to 
        the authorization of appropriations in paragraph (1) to 
        carry out this section, the Secretary may use any other 
        funds made available for planning under this Act to 
        carry out this section, except that the total amount of 
        combined funding used to carry out this section may not 
        exceed $10,000,000 in any fiscal year.
    ``(g) Annual Report on Use of Funds.--The State forester or 
equivalent State official shall submit to the Secretary an 
annual report detailing how funds made available to the State 
under this Act are being used.''.

SEC. 8003. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) the Forest Service projects that, by calendar 
        year 2030, approximately 44,000,000 acres of privately-
        owned forest land will be developed throughout the 
        United States;
            (2) public access to parcels of privately-owned 
        forest land for outdoor recreational activities, 
        including hunting, fishing, and trapping, has declined 
        and, as a result, participation in those activities has 
        also declined in cases in which public access is not 
        secured;
            (3) rising rates of obesity and other public health 
        problems relating to the inactivity of the citizens of 
        the United States have been shown to be ameliorated by 
        improving public access to safe and attractive areas 
        for outdoor recreation;
            (4) in rapidly-growing communities of all sizes 
        throughout the United States, remaining parcels of 
        forest land play an essential role in protecting public 
        water supplies;
            (5) forest parcels owned by local governmental 
        entities and nonprofit organizations are providing 
        important demonstration sites for private landowners to 
        learn forest management techniques;
            (6) throughout the United States, communities of 
        diverse types and sizes are deriving significant 
        financial and community benefits from managing forest 
        land owned by local governmental entities for timber 
        and other forest products; and
            (7) there is an urgent need for local governmental 
        entities to be able to leverage financial resources in 
        order to purchase important parcels of privately-owned 
        forest land as the parcels are offered for sale.
    (b) Community Forest and Open Space Conservation Program.--
The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 7 (16 U.S.C. 2103c) the following new 
section:

``SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' 
        means a local governmental entity, Indian tribe, or 
        nonprofit organization that owns or acquires a parcel 
        under the program.
            ``(2) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(3) Local governmental entity.--The term `local 
        governmental entity' includes any municipal government, 
        county government, or other local government body with 
        jurisdiction over local land use decisions.
            ``(4) Nonprofit organization.--The term `nonprofit 
        organization' means any organization that--
                    ``(A) is described in section 170(h)(3) of 
                the Internal Revenue Code of 1986; and
                    ``(B) operates in accordance with 1 or more 
                of the purposes specified in section 
                170(h)(4)(A) of that Code.
            ``(5) Program.--The term `Program' means the 
        community forest and open space conservation program 
        established under subsection (b).
            ``(6) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture, acting through the Chief of 
        the Forest Service.
    ``(b) Establishment.--The Secretary shall establish a 
program, to be known as the `community forest and open space 
conservation program'.
    ``(c) Grant Program.--
            ``(1) In general.--The Secretary may award grants 
        to eligible entities to acquire private forest land, to 
        be owned in fee simple, that--
                    ``(A) are threatened by conversion to 
                nonforest uses; and
                    ``(B) provide public benefits to 
                communities, including--
                            ``(i) economic benefits through 
                        sustainable forest management;
                            ``(ii) environmental benefits, 
                        including clean water and wildlife 
                        habitat;
                            ``(iii) benefits from forest-based 
                        educational programs, including 
                        vocational education programs in 
                        forestry;
                            ``(iv) benefits from serving as 
                        models of effective forest stewardship 
                        for private landowners; and
                            ``(v) recreational benefits, 
                        including hunting and fishing.
            ``(2) Federal cost share.--An eligible entity may 
        receive a grant under the Program in an amount equal to 
        not more than 50 percent of the cost of acquiring 1 or 
        more parcels, as determined by the Secretary.
            ``(3) Non-federal share.--As a condition of receipt 
        of the grant, an eligible entity that receives a grant 
        under the Program shall provide, in cash, donation, or 
        in kind, a non-Federal matching share in an amount that 
        is at least equal to the amount of the grant received.
            ``(4) Appraisal of parcels.--To determine the non-
        Federal share of the cost of a parcel of privately-
        owned forest land under paragraph (2), an eligible 
        entity shall require appraisals of the land that comply 
        with the Uniform Appraisal Standards for Federal Land 
        Acquisitions developed by the Interagency Land 
        Acquisition Conference.
            ``(5) Application.--An eligible entity that seeks 
        to receive a grant under the Program shall submit to 
        the State forester or equivalent official (or in the 
        case of an Indian tribe, an equivalent official of the 
        Indian tribe) an application that includes--
                    ``(A) a description of the land to be 
                acquired;
                    ``(B) a forest plan that provides--
                            ``(i) a description of community 
                        benefits to be achieved from the 
                        acquisition of the private forest land; 
                        and
                            ``(ii) an explanation of the manner 
                        in which any private forest land to be 
                        acquired using funds from the grant 
                        will be managed; and
                    ``(C) such other relevant information as 
                the Secretary may require.
            ``(6) Effect on trust land.--
                    ``(A) Ineligibility.--The Secretary shall 
                not provide a grant under the Program for any 
                project on land held in trust by the United 
                States (including Indian reservations and 
                allotment land).
                    ``(B) Acquired land.--No land acquired 
                using a grant provided under the Program shall 
                be converted to land held in trust by the 
                United States on behalf of any Indian tribe.
            ``(7) Applications to secretary.--The State 
        forester or equivalent official (or in the case of an 
        Indian tribe, an equivalent official of the Indian 
        tribe) shall submit to the Secretary a list that 
        includes a description of each project submitted by an 
        eligible entity at such times and in such form as the 
        Secretary shall prescribe.
    ``(d) Duties of Eligible Entity.--An eligible entity shall 
provide public access to, and manage, forest land acquired with 
a grant under this section in a manner that is consistent with 
the purposes for which the land was acquired under the Program.
    ``(e) Prohibited Uses.--
            ``(1) In general.--Subject to paragraphs (2) and 
        (3), an eligible entity that acquires a parcel under 
        the Program shall not sell the parcel or convert the 
        parcel to nonforest use.
            ``(2) Reimbursement of funds.--An eligible entity 
        that sells or converts to nonforest use a parcel 
        acquired under the Program shall pay to the Federal 
        Government an amount equal to the greater of the 
        current sale price, or current appraised value, of the 
        parcel.
            ``(3) Loss of eligibility.--An eligible entity that 
        sells or converts a parcel acquired under the Program 
        shall not be eligible for additional grants under the 
        Program.
    ``(f) State Administration and Technical Assistance.--The 
Secretary may allocate not more than 10 percent of all funds 
made available to carry out the Program for each fiscal year to 
State foresters or equivalent officials (including equivalent 
officials of Indian tribes) for Program administration and 
technical assistance.
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section.''.

SEC. 8004. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA, THE 
                    REPUBLIC OF THE MARSHALL ISLANDS, AND THE REPUBLIC 
                    OF PALAU.

    Section 13(d)(1) of the Cooperative Forestry Act of 1978 
(16 U.S.C. 2109(d)(1)) is amended by striking ``the Trust 
Territory of the Pacific Islands,'' and inserting ``the 
Federated States of Micronesia, the Republic of the Marshall 
Islands, the Republic of Palau,''.

SEC. 8005. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE.

    Section 19 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2113) is amended by striking subsection (a) and 
inserting the following new subsection:
    ``(a) Forest Resource Coordinating Committee.--
            ``(1) Establishment.--The Secretary shall establish 
        a committee, to be known as the `Forest Resource 
        Coordinating Committee' (in this section referred to as 
        the `Coordinating Committee'), to coordinate 
        nonindustrial private forestry activities within the 
        Department of Agriculture and with the private sector.
            ``(2) Composition.--The Coordinating Committee 
        shall be composed of the following:
                    ``(A) The Chief of the Forest Service.
                    ``(B) The Chief of the Natural Resources 
                Conservation Service.
                    ``(C) The Director of the Farm Service 
                Agency.
                    ``(D) The Director of the National 
                Institute of Food and Agriculture.
                    ``(E) Non-Federal representatives appointed 
                by the Secretary to 3 year terms, although 
                initial appointees shall have staggered terms, 
                including the following persons:
                            ``(i) At least three State 
                        foresters or equivalent State officials 
                        from geographically diverse regions of 
                        the United States.
                            ``(ii) A representative of a State 
                        fish and wildlife agency.
                            ``(iii) An owner of nonindustrial 
                        private forest land.
                            ``(iv) A forest industry 
                        representative.
                            ``(v) A conservation organization 
                        representative.
                            ``(vi) A land-grant university or 
                        college representative.
                            ``(vii) A private forestry 
                        consultant.
                            ``(viii) A representative from a 
                        State Technical Committee established 
                        under section 1261 of the Food Security 
                        Act of 1985 (16 U.S.C. 3861).
                    ``(F) Such other persons as determined by 
                the Secretary to be appropriate.
            ``(3) Chairperson.--The Chief of the Forest Service 
        shall serve as chairperson of the Coordinating 
        Committee.
            ``(4) Duties.--The Coordinating Committee shall--
                    ``(A) provide direction and coordination of 
                actions within the Department of Agriculture, 
                and coordination with State agencies and the 
                private sector, to effectively address the 
                national priorities specified in section 2(c), 
                with specific focus owners of nonindustrial 
                private forest land;
                    ``(B) clarify individual agency 
                responsibilities of each agency represented on 
                the Coordinating Committee concerning the 
                national priorities specified in section 2(c), 
                with specific focus on nonindustrial private 
                forest land;
                    ``(C) provide advice on the allocation of 
                funds, including the competitive funds set-
                aside by sections 13A and 13B; and
                    ``(D) assist the Secretary in developing 
                and reviewing the report required by section 
                2(d).
            ``(5) Meeting.--The Coordinating Committee shall 
        meet annually to discuss progress in addressing the 
        national priorities specified in section 2(c) and 
        issues regarding nonindustrial private forest land.
            ``(6) Compensation.--
                    ``(A) Federal members.--Members of the 
                Coordinating Committee who are full-time 
                officers or employees of the United States 
                shall receive no additional pay, allowances, or 
                benefits by reason of their service on the 
                Coordinating Committee.
                    ``(B) Non-federal members.--Non-federal 
                members of the Coordinating Committee shall 
                serve without pay, but may be reimbursed for 
                reasonable costs incurred while performing 
                their duties on behalf of the Coordinating 
                Committee.''.

SEC. 8006. CHANGES TO STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.

    Section 19(b) of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2113(b)) is amended--
            (1) in paragraph (1)(B)(ii)--
                    (A) by striking ``and'' at the end of 
                subclause (VII); and
                    (B) by adding at the end the following new 
                subclause:
                                    ``(IX) the State Technical 
                                Committee.''.
            (2) in paragraph (2)(C), by striking ``a Forest 
        Stewardship Plan under paragraph (3)'' and inserting 
        ``the State-wide assessment and strategy regarding 
        forest resource conditions under section 2A'';
            (3) by striking paragraphs (3) and (4); and
            (4) by redesignating paragraphs (5) and (6) as 
        paragraphs (3) and (4), respectively.

SEC. 8007. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY 
                    ASSISTANCE ACT OF 1978.

    The Cooperative Forestry Assistance Act of 1978 is amended 
by inserting after section 13 (16 U.S.C. 2109) the following 
new section:

``SEC. 13A. COMPETITIVE ALLOCATION OF FUNDS TO STATE FORESTERS OR 
                    EQUIVALENT STATE OFFICIALS.

    ``(a) Competition.--Beginning not later than 3 years after 
the date of the enactment of the Food, Conservation, and Energy 
Act of 2008, the Secretary shall competitively allocate a 
portion, to be determined by the Secretary, of the funds 
available under this Act to State foresters or equivalent State 
officials.
    ``(b) Determination.--In determining the competitive 
allocation of funds under subsection (a), the Secretary shall 
consult with the Forest Resource Coordinating Committee 
established by section 19(a).
    ``(c) Priority.--The Secretary shall give priority for 
funding to States for which the long-term State-wide forest 
resource strategies submitted under section 2A(a)(2) will best 
promote the national priorities specified in section 2(c).''.

SEC. 8008. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE FOREST 
                    INNOVATION PARTNERSHIP PROJECTS.

    The Cooperative Forestry Assistance Act of 1978 is amended 
by inserting after section 13A, as added by section 8006, the 
following new section:

``SEC. 13B. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE FOREST 
                    INNOVATION PARTNERSHIP PROJECTS.

    ``(a) Cooperative Forest Innovation Partnership Projects.--
The Secretary may competitively allocate not more than 5 
percent of the funds made available under this Act to support 
innovative national, regional, or local education, outreach, or 
technology transfer projects that the Secretary determines 
would substantially increase the ability of the Department of 
Agriculture to address the national priorities specified in 
section 2(c).
    ``(b) Eligibility.--Notwithstanding the eligibility 
limitations contained in this Act, any State or local 
government, Indian tribe, land-grant college or university, or 
private entity shall be eligible to compete for funds to be 
competitively allocated under subsection (a).
    ``(c) Cost-Share Requirement.--In carrying out subsection 
(a), the Secretary shall not cover more than 50 percent of the 
total cost of a project under such subsection. In calculating 
the total cost of a project and contributions made with regard 
to the project, the Secretary shall include in-kind 
contributions.''.

        Subtitle B--Cultural and Heritage Cooperation Authority

SEC. 8101. PURPOSES.

    The purposes of this subtitle are--
            (1) to authorize the reburial of human remains and 
        cultural items on National Forest System land, 
        including human remains and cultural items repatriated 
        under the Native American Graves Protection and 
        Repatriation Act (25 U.S.C. 3001 et seq.);
            (2) to prevent the unauthorized disclosure of 
        information regarding reburial sites, including the 
        quantity and identity of human remains and cultural 
        items on sites and the location of sites;
            (3) to authorize the Secretary of Agriculture to 
        ensure access to National Forest System land, to the 
        maximum extent practicable, by Indians and Indian 
        tribes for traditional and cultural purposes;
            (4) to authorize the Secretary to provide forest 
        products, without consideration, to Indian tribes for 
        traditional and cultural purposes;
            (5) to authorize the Secretary to protect the 
        confidentiality of certain information, including 
        information that is culturally sensitive to Indian 
        tribes;
            (6) to increase the availability of Forest Service 
        programs and resources to Indian tribes in support of 
        the policy of the United States to promote tribal 
        sovereignty and self-determination; and
            (7) to strengthen support for the policy of the 
        United States of protecting and preserving the 
        traditional, cultural, and ceremonial rites and 
        practices of Indian tribes, in accordance with Public 
        Law 95-341 (commonly known as the American Indian 
        Religious Freedom Act; 42 U.S.C. 1996).

SEC. 8102. DEFINITIONS.

    In this subtitle:
            (1) Adjacent site.--The term ``adjacent site'' 
        means a site that borders a boundary line of National 
        Forest System land.
            (2) Cultural items.--The term ``cultural items'' 
        has the meaning given the term in section 2 of the 
        Native American Graves Protection and Repatriation Act 
        (25 U.S.C. 3001), except that the term does not include 
        human remains.
            (3) Human remains.--The term ``human remains'' 
        means the physical remains of the body of a person of 
        Indian ancestry.
            (4) Indian.--The term ``Indian'' means an 
        individual who is a member of an Indian tribe.
            (5) Indian tribe.--The term ``Indian tribe'' means 
        any Indian or Alaska Native tribe, band, nation, 
        pueblo, village, or other community the name of which 
        is included on a list published by the Secretary of the 
        Interior pursuant to section 104 of the Federally 
        Recognized Indian Tribe List Act of 1994 (25 U.S.C. 
        479a-1).
            (6) Lineal descendant.--The term ``lineal 
        descendant'' means an individual that can trace, 
        directly and without interruption, the ancestry of the 
        individual through the traditional kinship system of an 
        Indian tribe, or through the common law system of 
        descent, to a known Indian, the human remains, funerary 
        objects, or other sacred objects of whom are claimed by 
        the individual.
            (7) National forest system.--The term ``National 
        Forest System'' has the meaning given the term in 
        section 11(a) of the Forest and Rangeland Renewable 
        Resources Planning Act of 1974 (16 U.S.C. 1609(a)).
            (8) Reburial site.--The term ``reburial site'' 
        means a specific physical location at which cultural 
        items or human remains are reburied.
            (9) Traditional and cultural purpose.--The term 
        ``traditional and cultural purpose'', with respect to a 
        definable use, area, or practice, means that the use, 
        area, or practice is identified by an Indian tribe as 
        traditional or cultural because of the long-established 
        significance or ceremonial nature of the use, area, or 
        practice to the Indian tribe.

SEC. 8103. REBURIAL OF HUMAN REMAINS AND CULTURAL ITEMS.

    (a) Reburial Sites.--In consultation with an affected 
Indian tribe or lineal descendant, the Secretary may authorize 
the use of National Forest System land by the Indian tribe or 
lineal descendant for the reburial of human remains or cultural 
items in the possession of the Indian tribe or lineal 
descendant that have been disinterred from National Forest 
System land or an adjacent site.
    (b) Reburial.--With the consent of the affected Indian 
tribe or lineal descendent, the Secretary may recover and 
rebury, at Federal expense or using other available funds, 
human remains and cultural items described in subsection (a) at 
the National Forest System land identified under that 
subsection.
    (c) Authorization of Use.--
            (1) In general.--Subject to paragraph (2), the 
        Secretary may authorize such uses of reburial sites on 
        National Forest System land, or on the National Forest 
        System land immediately surrounding a reburial site, as 
        the Secretary determines to be necessary for management 
        of the National Forest System.
            (2) Avoidance of adverse impacts.--In carrying out 
        paragraph (1), the Secretary shall avoid adverse 
        impacts to cultural items and human remains, to the 
        maximum extent practicable.

SEC. 8104. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL PURPOSES.

    (a) Recognition of Historic Use.--To the maximum extent 
practicable, the Secretary shall ensure access to National 
Forest System land by Indians for traditional and cultural 
purposes, in accordance with subsection (b), in recognition of 
the historic use by Indians of National Forest System land.
    (b) Closing Land From Public Access.--
            (1) Authority to close.--Upon the approval by the 
        Secretary of a request from an Indian tribe, the 
        Secretary may temporarily close from public access 
        specifically identified National Forest System land to 
        protect the privacy of tribal activities for 
        traditional and cultural purposes.
            (2) Limitation.--A closure of National Forest 
        System land under paragraph (1) shall affect the 
        smallest practicable area for the minimum period 
        necessary for activities of the applicable Indian 
        tribe.
            (3) Consistency.--Access by Indian tribes to 
        National Forest System land under this subsection shall 
        be consistent with the purposes of Public Law 95-341 
        (commonly known as the American Indian Religious 
        Freedom Act; 42 U.S.C. 1996).

SEC. 8105. FOREST PRODUCTS FOR TRADITIONAL AND CULTURAL PURPOSES.

    (a) In General.--Notwithstanding section 14 of the National 
Forest Management Act of 1976 (16 U.S.C. 472a), the Secretary 
may provide free of charge to Indian tribes any trees, portions 
of trees, or forest products from National Forest System land 
for traditional and cultural purposes.
    (b) Prohibition.--Trees, portions of trees, or forest 
products provided under subsection (a) may not be used for 
commercial purposes.

SEC. 8106. PROHIBITION ON DISCLOSURE.

    (a) Nondisclosure of Information.--
            (1) In general.--The Secretary shall not disclose 
        under section 552 of title 5, United States Code 
        (commonly known as the ``Freedom of Information Act''), 
        information relating to--
                    (A) subject to subsection (b)(l), human 
                remains or cultural items reburied on National 
                Forest System land under section 8103; or
                    (B) subject to subsection (b)(2), 
                resources, cultural items, uses, or activities 
                that--
                            (i) have a traditional and cultural 
                        purpose; and
                            (ii) are provided to the Secretary 
                        by an Indian or Indian tribe under an 
                        express expectation of confidentiality 
                        in the context of forest and rangeland 
                        research activities carried out under 
                        the authority of the Forest Service.
            (2) Limitations on disclosure.--Subject to 
        subsection (b)(2), the Secretary shall not be required 
        to disclose information under section 552 of title 5, 
        United States Code (commonly known as the ``Freedom of 
        Information Act''), concerning the identity, use, or 
        specific location in the National Forest System of--
                    (A) a site or resource used for traditional 
                and cultural purposes by an Indian tribe; or
                    (B) any cultural items not covered under 
                section 8103.
    (b) Limited Release of Information.--
            (1) Reburial.--The Secretary may disclose 
        information described in subsection (a)(l)(A) if, 
        before the disclosure, the Secretary--
                    (A) consults with an affected Indian tribe 
                or lineal descendent;
                    (B) determines that disclosure of the 
                information--
                            (i) would advance the purposes of 
                        this subtitle; and
                            (ii) is necessary to protect the 
                        human remains or cultural items from 
                        harm, theft, or destruction; and
                    (C) attempts to mitigate any adverse 
                impacts identified by an Indian tribe or lineal 
                descendant that reasonably could be expected to 
                result from disclosure of the information.
            (2) Other information.--The Secretary, in 
        consultation with appropriate Indian tribes, may 
        disclose information described under paragraph (1)(B) 
        or (2) of subsection (a) if the Secretary determines 
        that disclosure of the information to the public--
                    (A) would advance the purposes of this 
                subtitle;
                    (B) would not create an unreasonable risk 
                of harm, theft, or destruction of the resource, 
                site, or object, including individual organic 
                or inorganic specimens; and
                    (C) would be consistent with other 
                applicable laws.

SEC. 8107. SEVERABILITY AND SAVINGS PROVISIONS.

    (a) Severability.--If any provision of this subtitle, or 
the application of any provision of this subtitle to any person 
or circumstance is held invalid, the application of such 
provision or circumstance and the remainder of this subtitle 
shall not be affected thereby.
    (b) Savings.--Nothing in this subtitle--
            (1) diminishes or expands the trust responsibility 
        of the United States to Indian tribes, or any legal 
        obligation or remedy resulting from that 
        responsibility;
            (2) alters, abridges, repeals, or affects any valid 
        agreement between the Forest Service and an Indian 
        tribe;
            (3) alters, abridges, diminishes, repeals, or 
        affects any reserved or other right of an Indian tribe; 
        or
            (4) alters, abridges, diminishes, repeals, or 
        affects any other valid existing right relating to 
        National Forest System land or other public land.

         Subtitle C--Amendments to Other Forestry-Related Laws

SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.

    Section 2371(d)(2) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by 
striking ``2004 through 2008'' and inserting ``2008 through 
2012''.

SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405(d) of the Global Climate Change Prevention Act 
of 1990 (7 U.S.C. 6704(d)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 8203. EMERGENCY FOREST RESTORATION PROGRAM.

    (a) Establishment.--Title IV of the Agricultural Credit Act 
of 1978 (16 U.S.C. 2201 et seq.) is amended by adding at the 
end the following new section:

``SEC. 407. EMERGENCY FOREST RESTORATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Emergency measures.--The term `emergency 
        measures' means those measures that--
                    ``(A) are necessary to address damage 
                caused by a natural disaster to natural 
                resources on nonindustrial private forest land, 
                and the damage, if not treated--
                            ``(i) would impair or endanger the 
                        natural resources on the land; and
                            ``(ii) would materially affect 
                        future use of the land; and
                    ``(B) would restore forest health and 
                forest-related resources on the land.
            ``(2) Natural disaster.--The term `natural 
        disaster' includes wildfires, hurricanes or excessive 
        winds, drought, ice storms or blizzards, floods, or 
        other resource-impacting events, as determined by the 
        Secretary.
            ``(3) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' means rural land, 
        as determined by the Secretary, that--
                    ``(A) has existing tree cover (or had tree 
                cover immediately before the natural disaster 
                and is suitable for growing trees); and
                    ``(B) is owned by any nonindustrial private 
                individual, group, association, corporation, or 
                other private legal entity, that has definitive 
                decision-making authority over the land.
            ``(4) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.
    ``(b) Availability of Assistance.--The Secretary may make 
payments to an owner of nonindustrial private forest land who 
carries out emergency measures to restore the land after the 
land is damaged by a natural disaster.
    ``(c) Eligibility.--To be eligible to receive a payment 
under subsection (b), an owner must demonstrate to the 
satisfaction of the Secretary that the nonindustrial private 
forest land on which the emergency measures are carried out had 
tree cover immediately before the natural disaster.
    ``(d) Cost Share Requirement.--Payments made under 
subsection (b) shall not exceed 75 percent of the total cost of 
the emergency measures carried out by an owner of nonindustrial 
private forest land.
    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary such funds as 
may be necessary to carry out this section. Amounts so 
appropriated shall remain available until expended.''.
    (b) Regulations.--Not later than one year after the date of 
the enactment of this Act, the Secretary of Agriculture shall 
issue regulations to carry out section 407 of the Agricultural 
Credit Act of 1978, as added by subsection (a).

SEC. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES.

    (a) Definitions.--
            (1) Plant.--Subsection (f) of section 2 of the 
        Lacey Act Amendments of 1981 (16 U.S.C. 3371) is 
        amended to read as follows:
    ``(f) Plant.--
            ``(1) In general.--The terms `plant' and `plants' 
        mean any wild member of the plant kingdom, including 
        roots, seeds, parts, or products thereof, and including 
        trees from either natural or planted forest stands.
            ``(2) Exclusions.--The terms `plant' and `plants' 
        exclude--
                    ``(A) common cultivars, except trees, and 
                common food crops (including roots, seeds, 
                parts, or products thereof);
                    ``(B) a scientific specimen of plant 
                genetic material (including roots, seeds, 
                germplasm, parts, or products thereof) that is 
                to be used only for laboratory or field 
                research; and
                    ``(C) any plant that is to remain planted 
                or to be planted or replanted.
            ``(3) Exceptions to application of exclusions.--The 
        exclusions made by subparagraphs (B) and (C) of 
        paragraph (2) do not apply if the plant is listed--
                    ``(A) in an appendix to the Convention on 
                International Trade in Endangered Species of 
                Wild Fauna and Flora (27 UST 1087; TIAS 8249);
                    ``(B) as an endangered or threatened 
                species under the Endangered Species Act of 
                1973 (16 U.S.C. 1531 et seq.); or
                    ``(C) pursuant to any State law that 
                provides for the conservation of species that 
                are indigenous to the State and are threatened 
                with extinction.''.
            (2) Inclusion of secretary of agriculture.--Section 
        2(h) of the Lacey Act Amendments of 1981 (16 U.S.C. 
        3371(h)) is amended by striking ``plants the term 
        means'' and inserting ``plants, the term also means''.
            (3) Taken and taking.--Subsection (j) of section 2 
        of the Lacey Act Amendments of 1981 (16 U.S.C. 3371) is 
        amended to read as follows:
    ``(j) Taken and Taking.--
            ``(1) Taken.--The term `taken' means captured, 
        killed, or collected and, with respect to a plant, also 
        means harvested, cut, logged, or removed.
            ``(2) Taking.--The term `taking' means the act by 
        which fish, wildlife, or plants are taken.''.
    (b) Prohibited Acts.--
            (1) Offenses other than marking.--Section 3(a) of 
        the Lacey Act Amendments of 1981 (16 U.S.C. 3372(a)) is 
        amended--
                    (A) in paragraph (2), by striking 
                subparagraph (B) and inserting the following 
                new subparagraph:
                    ``(B) any plant--
                            ``(i) taken, possessed, 
                        transported, or sold in violation of 
                        any law or regulation of any State, or 
                        any foreign law, that protects plants 
                        or that regulates--
                                    ``(I) the theft of plants;
                                    ``(II) the taking of plants 
                                from a park, forest reserve, or 
                                other officially protected 
                                area;
                                    ``(III) the taking of 
                                plants from an officially 
                                designated area; or
                                    ``(IV) the taking of plants 
                                without, or contrary to, 
                                required authorization;
                            ``(ii) taken, possessed, 
                        transported, or sold without the 
                        payment of appropriate royalties, 
                        taxes, or stumpage fees required for 
                        the plant by any law or regulation of 
                        any State or any foreign law; or
                            ``(iii) taken, possessed, 
                        transported, or sold in violation of 
                        any limitation under any law or 
                        regulation of any State, or under any 
                        foreign law, governing the export or 
                        transshipment of plants; or''; and
                    (B) in paragraph (3), by striking 
                subparagraph (B) and inserting the following 
                subparagraph:
                    ``(B) to possess any plant--
                            ``(i) taken, possessed, 
                        transported, or sold in violation of 
                        any law or regulation of any State, or 
                        any foreign law, that protects plants 
                        or that regulates--
                                    ``(I) the theft of plants;
                                    ``(II) the taking of plants 
                                from a park, forest reserve, or 
                                other officially protected 
                                area;
                                    ``(III) the taking of 
                                plants from an officially 
                                designated area; or
                                    ``(IV) the taking of plants 
                                without, or contrary to, 
                                required authorization;
                            ``(ii) taken, possessed, 
                        transported, or sold without the 
                        payment of appropriate royalties, 
                        taxes, or stumpage fees required for 
                        the plant by any law or regulation of 
                        any State or any foreign law; or
                            ``(iii) taken, possessed, 
                        transported, or sold in violation of 
                        any limitation under any law or 
                        regulation of any State, or under any 
                        foreign law, governing the export or 
                        transshipment of plants; or''.
            (2) Plant declarations.--Section 3 of the Lacey Act 
        Amendments of 1981 (16 U.S.C. 3372) is amended by 
        adding at the end the following new subsection:
    ``(f) Plant Declarations.--
            ``(1) Import declaration.--Effective 180 days from 
        the date of enactment of this subsection, and except as 
        provided in paragraph (3), it shall be unlawful for any 
        person to import any plant unless the person files upon 
        importation a declaration that contains--
                    ``(A) the scientific name of any plant 
                (including the genus and species of the plant) 
                contained in the importation;
                    ``(B) a description of--
                            ``(i) the value of the importation; 
                        and
                            ``(ii) the quantity, including the 
                        unit of measure, of the plant; and
                    ``(C) the name of the country from which 
                the plant was taken.
            ``(2) Declaration relating to plant products.--
        Until the date on which the Secretary promulgates a 
        regulation under paragraph (6), a declaration relating 
        to a plant product shall--
                    ``(A) in the case in which the species of 
                plant used to produce the plant product that is 
                the subject of the importation varies, and the 
                species used to produce the plant product is 
                unknown, contain the name of each species of 
                plant that may have been used to produce the 
                plant product;
                    ``(B) in the case in which the species of 
                plant used to produce the plant product that is 
                the subject of the importation is commonly 
                taken from more than one country, and the 
                country from which the plant was taken and used 
                to produce the plant product is unknown, 
                contain the name of each country from which the 
                plant may have been taken; and
                    ``(C) in the case in which a paper or 
                paperboard plant product includes recycled 
                plant product, contain the average percent 
                recycled content without regard for the species 
                or country of origin of the recycled plant 
                product, in addition to the information for the 
                non-recycled plant content otherwise required 
                by this subsection.
            ``(3) Exclusions.--Paragraphs (1) and (2) shall not 
        apply to plants used exclusively as packaging material 
        to support, protect, or carry another item, unless the 
        packaging material itself is the item being imported.
            ``(4) Review.--Not later than two years after the 
        date of enactment of this subsection, the Secretary 
        shall review the implementation of each requirement 
        imposed by paragraphs (1) and (2) and the effect of the 
        exclusion provided by paragraph (3). In conducting the 
        review, the Secretary shall provide public notice and 
        an opportunity for comment.
            ``(5) Report.--Not later than 180 days after the 
        date on which the Secretary completes the review under 
        paragraph (4), the Secretary shall submit to the 
        appropriate committees of Congress a report 
        containing--
                    ``(A) an evaluation of--
                            ``(i) the effectiveness of each 
                        type of information required under 
                        paragraphs (1) and (2) in assisting 
                        enforcement of this section; and
                            ``(ii) the potential to harmonize 
                        each requirement imposed by paragraphs 
                        (1) and (2) with other applicable 
                        import regulations in existence as of 
                        the date of the report;
                    ``(B) recommendations for such legislation 
                as the Secretary determines to be appropriate 
                to assist in the identification of plants that 
                are imported into the United States in 
                violation of this section; and
                    ``(C) an analysis of the effect of 
                subsection (a) and this subsection on--
                            ``(i) the cost of legal plant 
                        imports; and
                            ``(ii) the extent and methodology 
                        of illegal logging practices and 
                        trafficking.
            ``(6) Promulgation of regulations.--Not later than 
        180 days after the date on which the Secretary 
        completes the review under paragraph (4), the Secretary 
        may promulgate regulations--
                    ``(A) to limit the applicability of any 
                requirement imposed by paragraph (2) to 
                specific plant products;
                    ``(B) to make any other necessary 
                modification to any requirement imposed by 
                paragraph (2), as determined by the Secretary 
                based on the review; and
                    ``(C) to limit the scope of the exclusion 
                provided by paragraph (3), if the limitations 
                in scope are warranted as a result of the 
                review.''.
    (c) Cross-References to New Requirement.--Section 4 of the 
Lacey Act Amendments of 1981 (16 U.S.C. 3373) is amended--
            (1) by striking ``subsections (b) and (d)'' each 
        place it appears and inserting ``subsections (b), (d), 
        and (f)'';
            (2) by striking ``section 3(d)'' each place it 
        appears and inserting ``subsection (d) or (f) of 
        section 3''; and
            (3) in subsection (a)(2), by striking ``subsection 
        3(b)'' and inserting ``subsection (b) or (f) of section 
        3, except as provided in paragraph (1),''.
    (d) Civil Forfeitures.--Section 5 of the Lacey Act 
Amendments of 1981 (16 U.S.C. 3374) is amended by adding at the 
end the following new subsection:
    ``(d) Civil Forfeitures.--Civil forfeitures under this 
section shall be governed by the provisions of chapter 46 of 
title 18, United States Code.''.
    (e) Administration.--Section 7 of the Lacey Act Amendments 
of 1981 (16 U.S.C. 3376) is amended--
            (1) in subsection (a)(1), by striking ``section 4 
        and section'' and inserting ``sections 3(f), 4, and''; 
        and
            (2) by adding at the end the following new 
        subsection:
    ``(c) Clarification of Exclusions From Definition of 
Plant.--The Secretary of Agriculture and the Secretary of the 
Interior, after consultation with the appropriate agencies, 
shall jointly promulgate regulations to define the terms used 
in section 2(f)(2)(A) for the purposes of enforcement under 
this Act.''.
    (f) Technical Correction.--Effective as of November 14, 
1988, and as if included therein as enacted, section 102(c) of 
Public Law 100-653 (102 Stat. 3825) is amended--
            (1) by inserting ``of the Lacey Act Amendments of 
        1981'' after ``Section 4''; and
            (2) by striking ``(other than section 3(b))'' and 
        inserting ``(other than subsection 3(b))''.

SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM.

    (a) Enrollment.--Section 502 of the Healthy Forests 
Restoration Act of 2003 (16 U.S.C. 6572(f)(1)) is amended--
            (1) by striking subsections (e) and (f);
            (2) by redesignating subsection (g) as subsection 
        (f); and
            (3) by inserting after subsection (d) the following 
        new subsection:
    ``(e) Methods of Enrollment.--
            ``(1) Authorized methods.--Land may be enrolled in 
        the healthy forests reserve program in accordance 
        with--
                    ``(A) a 10-year cost-share agreement;
                    ``(B) a 30-year easement; or
                    ``(C)(i) a permanent easement; or
                    ``(ii) in a State that imposes a maximum 
                duration for easements, an easement for the 
                maximum duration allowed under State law.
            ``(2) Limitation on use of cost-share agreements 
        and easements.--
                    ``(A) In general.--Of the total amount of 
                funds expended under the program for a fiscal 
                year to acquire easements and enter into cost-
                share agreements described in paragraph (1)--
                            ``(i) not more than 40 percent 
                        shall be used for cost-share agreements 
                        described in paragraph (1)(A); and
                            ``(ii) not more than 60 percent 
                        shall be used for easements described 
                        in subparagraphs (B) and (C) of 
                        paragraph (1).
                    ``(B) Repooling.--The Secretary may use any 
                funds allocated under clause (i) or (ii) of 
                subparagraph (A) that are not obligated by 
                April 1 of the fiscal year for which the funds 
                are made available to carry out a different 
                method of enrollment during that fiscal year.
            ``(3) Acreage owned by indian tribes.--In the case 
        of acreage owned by an Indian tribe, the Secretary may 
        enroll acreage into the healthy forests reserve program 
        through the use of--
                    ``(A) a 30-year contract (the value of 
                which shall be equivalent to the value of a 30-
                year easement);
                    ``(B) a 10-year cost-share agreement; or
                    ``(C) any combination of the options 
                described in subparagraphs (A) and (B).''.
    (b) Financial Assistance.--Section 504(a) of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6574(a)) is amended 
by striking ``(a) Easements of Not More Than 99 Years'' and all 
that follows through ``502(f)(1)(C)'' and inserting the 
following:
    ``(a) Permanent Easements.--In the case of land enrolled in 
the healthy forests reserve program using a permanent easement 
(or an easement described in section 502(f)(1)(C)(ii))''.
    (c) Funding.--Section 508 of the Healthy Forests 
Restoration Act of 2003 (16 U.S.C. 6578) is amended to read as 
follows:

``SEC. 508. FUNDING.

    ``(a) In General.--Of the funds of the Commodity Credit 
Corporation, the Secretary of Agriculture shall make available 
$9,750,000 for each of fiscal years 2009 through 2012 to carry 
out this title.
    ``(b) Duration of Availability.--The funds made available 
under subsection (a) shall remain available until expended.''.

    Subtitle D--Boundary Adjustments and Land Conveyance Provisions

SEC. 8301. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY ADJUSTMENT.

    (a) In General.--The boundary of the Green Mountain 
National Forest is modified to include the 13 designated 
expansion units as generally depicted on the forest maps 
entitled ``Green Mountain Expansion Area Map I'' and ``Green 
Mountain Expansion Area Map II'' and dated February 20, 2002 
(copies of which shall be on file and available for public 
inspection in the Office of the Chief of the Forest Service, 
Washington, District of Columbia), and more particularly 
described according to the site specific maps and legal 
descriptions on file in the office of the Forest Supervisor, 
Green Mountain National Forest.
    (b) Management.--Federally owned land delineated on the 
maps acquired for National Forest purposes shall continue to be 
managed in accordance with the laws (including regulations) 
applicable to the National Forest System.
    (c) Land and Water Conservation Fund.--For the purposes of 
section 7 of the Land and Water Conservation Fund Act of 1965 
(16 U.S.C. 460 l-9), the boundaries of the Green Mountain 
National Forest, as adjusted by this section, shall be 
considered to be the boundaries of the national forest as of 
January 1, 1965.

SEC. 8302. LAND CONVEYANCES, CHIHUAHUAN DESERT NATURE PARK, NEW MEXICO, 
                    AND GEORGE WASHINGTON NATIONAL FOREST, VIRGINIA.

    (a) Chihuahuan Desert Nature Park Conveyance.--
            (1) In general.--As soon as practicable after the 
        date of enactment of this Act, subject to valid 
        existing rights and subsection (b), the Secretary of 
        Agriculture shall convey to the Chihuahuan Desert 
        Nature Park, Inc., a nonprofit corporation in the State 
        of New Mexico (in this section referred to as the 
        ``Nature Park''), by quitclaim deed and for no 
        consideration, all right, title, and interest of the 
        United States in and to the land described in paragraph 
        (2)
            (2) Description of land.--
                    (A) In general.--The parcel of land 
                referred to in paragraph (1) consists of the 
                approximately 935.62 acres of land in Dona Ana 
                County, New Mexico, which is more particularly 
                described--
                            (i) as sections 17, 20, and 21 of 
                        T. 21 S., R. 2 E., N.M.P.M.; and
                            (ii) in an easement deed dated May 
                        14, 1998, from the Department of 
                        Agriculture to the Nature Park.
                    (B) Modifications.--The Secretary may 
                modify the description of the land under 
                subparagraph (A) to--
                            (i) correct errors in the 
                        description; or
                            (ii) facilitate management of the 
                        land.
    (b) Conditions.--The conveyance of land under subsection 
(a) shall be subject to--
            (1) the reservation by the United States of all 
        mineral and subsurface rights to the land, including 
        any geothermal resources;
            (2) the condition that the Chihuahuan Desert Nature 
        Park Board pay any costs relating to the conveyance;
            (3) any rights-of-way reserved by the Secretary;
            (4) a covenant or restriction in the deed to the 
        land requiring that--
                    (A) the land may be used only for 
                educational or scientific purposes; and
                    (B) if the land is no longer used for the 
                purposes described in subparagraph (A), the 
                land may, at the discretion of the Secretary, 
                revert to the United States in accordance with 
                subsection (c); and
            (5) any other terms and conditions that the 
        Secretary determines to be appropriate.
    (c) Reversion.--If the land conveyed under subsection (a) 
is no longer used for the purposes described in subsection 
(b)(4)(A), the land may, at the discretion of the Secretary, 
revert to the United States. If the Secretary chooses to have 
the land revert to the United States, the Secretary shall--
            (1) determine whether the land is environmentally 
        contaminated, including contamination from hazardous 
        wastes, hazardous substances, pollutants, contaminants, 
        petroleum, or petroleum by-products; and
            (2) if the Secretary determines that the land is 
        environmentally contaminated, the Nature Park, the 
        successor to the Nature Park, or any other person 
        responsible for the contamination shall be required to 
        remediate the contamination.
    (d) Withdrawal.--All federally owned mineral and subsurface 
rights to the land to be conveyed under subsection (a) are 
withdrawn from--
            (1) location, entry, and patent under the mining 
        laws; and
            (2) the operation of the mineral leasing laws, 
        including the geothermal leasing laws.
    (e) Water Rights.--Nothing in subsection (a) authorizes the 
conveyance of water rights to the Nature Park.
    (f) George Washington National Forest Conveyance, 
Virginia.--
            (1) Conveyance required.--The Secretary of 
        Agriculture shall convey, without consideration, to the 
        Central Advent Christian Church of Alleghany County, 
        Virginia (in this subsection referred to as the 
        ``recipient''), all right, title, and interest of the 
        United States in and to a parcel of real property in 
        the George Washington National Forest, Alleghany 
        County, Virginia, consisting of not more than 8 acres, 
        including a cemetery encompassing approximately 6 acres 
        designated as an area of special use for the recipient, 
        and depicted on the Forest Service map showing tract G-
        2032c and dated August 20, 2002, and the Forest Service 
        map showing the area of special use and dated March 14, 
        2001.
            (2) Condition of conveyance.--The conveyance under 
        this subsection shall be subject to the condition that 
        the recipient accept the real property described in 
        paragraph (1) in its condition at the time of the 
        conveyance, commonly known as conveyance ``as is''.
            (3) Description of property.--The exact acreage and 
        legal description of the real property to be conveyed 
        under this subsection shall be determined by a survey 
        satisfactory to the Secretary. The cost of the survey 
        shall be borne by the recipient.
            (4) Additional terms and conditions.--The Secretary 
        may require such additional terms and conditions in 
        connection with the conveyance under this subsection as 
        the Secretary considers appropriate to protect the 
        interests of the United States.

SEC. 8303. SALE AND EXCHANGE OF NATIONAL FOREST SYSTEM LAND, VERMONT.

    (a) Definitions.--In this section:
            (1) Bromley.--The term ``Bromley'' means Bromley 
        Mountain Ski Resort, Inc.
            (2) Map.--The term ``map'' means the map entitled 
        ``Proposed Bromley Land Sale or Exchange'' and dated 
        April 7, 2004.
            (3) State.--The term ``State'' means the State of 
        Vermont.
    (b) Sale or Exchange of Green Mountain National Forest 
Land.--
            (1) In general.--The Secretary of Agriculture may, 
        under any terms and conditions that the Secretary may 
        prescribe, sell or exchange any right, title, and 
        interest of the United States in and to the parcels of 
        National Forest System land described in paragraph (2).
            (2) Description of land.--The parcels of National 
        Forest System land referred to in paragraph (1) are the 
        5 parcels of land in Bennington County in the State, as 
        generally depicted on the map.
            (3) Map and legal descriptions.--
                    (A) In general.--The map shall be on file 
                and available for public inspection in--
                            (i) the office of the Chief of the 
                        Forest Service; and
                            (ii) the office of the Supervisor 
                        of the Green Mountain National Forest.
                    (B) Modifications.--The Secretary may 
                modify the map and legal descriptions to--
                            (i) correct technical errors; or
                            (ii) facilitate the conveyance 
                        under paragraph (1).
            (4) Consideration.--Consideration for the sale or 
        exchange of land described in paragraph (2)--
                    (A) shall be equal to an amount that is not 
                less than the fair market value of the land 
                sold or exchanged; and
                    (B) may be in the form of cash, land, or a 
                combination of cash and land.
            (5) Appraisals.--Any appraisal carried out to 
        facilitate the sale or exchange of land under paragraph 
        (1) shall conform with the Uniform Appraisal Standards 
        for Federal Land Acquisitions.
            (6) Methods of sale.--
                    (A) Conveyance to bromley.--
                            (i) In general.--Before soliciting 
                        offers under subparagraph (B), the 
                        Secretary shall offer to convey to 
                        Bromley the land described in paragraph 
                        (2).
                            (ii) Contract deadline.--If Bromley 
                        accepts the offer under clause (i), the 
                        Secretary and Bromley shall have not 
                        more than 180 days after the date on 
                        which any environmental analyses with 
                        respect to the land are completed to 
                        enter into a contract for the sale or 
                        exchange of the land.
                    (B) Public or private sale.--If the 
                Secretary and Bromley do not enter into a 
                contract for the sale or exchange of the land 
                by the date specified in subparagraph (A)(ii), 
                the Secretary may sell or exchange the land at 
                public or private sale (including auction), in 
                accordance with such terms, conditions, and 
                procedures as the Secretary determines to be in 
                the public interest.
                    (C) Rejection of offers.--The Secretary may 
                reject any offer received under this paragraph 
                if the Secretary determines that the offer is 
                not adequate or is not in the public interest.
                    (D) Brokers.--In any sale or exchange of 
                land under this subsection, the Secretary may--
                            (i) use a real estate broker or 
                        other third party; and
                            (ii) pay the real estate broker or 
                        third party a commission in an amount 
                        comparable to the amounts of commission 
                        generally paid for real estate 
                        transactions in the area.
            (7) Cash equalization.--Notwithstanding section 
        206(b) of the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1716(b)), the Secretary may accept a 
        cash equalization payment in excess of 25 percent of 
        the value of any Federal land exchanged under this 
        section.
    (c) Disposition of Proceeds.--
            (1) In general.--The Secretary shall deposit the 
        net proceeds from a sale or exchange under this section 
        in the fund established under Public Law 90-171 (16 
        U.S.C. 484a) (commonly known as the ``Sisk Act'').
            (2) Use.--Amounts deposited under paragraph (1) 
        shall be available to the Secretary until expended, 
        without further appropriation, for--
                    (A) the location and relocation of the 
                Appalachian National Scenic Trail and the Long 
                National Recreation Trail in the State;
                    (B) the acquisition of land and interests 
                in land by the Secretary for National Forest 
                System purposes within the boundary of the 
                Green Mountain National Forest, including land 
                for and adjacent to the Appalachian National 
                Scenic Trail and the Long National Recreation 
                Trail;
                    (C) the acquisition of wetland or an 
                interest in wetland within the boundary of the 
                Green Mountain National Forest to offset the 
                loss of wetland from the parcels sold or 
                exchanged; and
                    (D) the payment of direct administrative 
                costs incurred in carrying out this section.
            (3) Limitation.--Amounts deposited under paragraph 
        (1) shall not--
                    (A) be paid or distributed to the State or 
                counties or towns in the State under any 
                provision of law; or
                    (B) be considered to be money received from 
                units of the National Forest System for 
                purposes of--
                            (i) the Act of May 23, 1908 (16 
                        U.S.C. 500); or
                            (ii) the Act of March 4, 1913 (16 
                        U.S.C. 501).
            (4) Prohibition of transfer or reprogramming.--
        Amounts deposited under paragraph (1) shall not be 
        subject to transfer or reprogramming for wildfire 
        management or any other emergency purposes.
    (d) Acquisition of Land.--The Secretary may acquire, using 
funds made available under subsection (c) or otherwise made 
available for acquisition, land or an interest in land for 
National Forest System purposes within the boundary of the 
Green Mountain National Forest.
    (e) Exemption From Certain Laws.--Subtitle I of title 40, 
United States Code, shall not apply to any sale or exchange of 
National Forest System land under this section.

                  Subtitle E--Miscellaneous Provisions

SEC. 8401. QUALIFYING TIMBER CONTRACT OPTIONS.

    (a) Definitions.--In this section:
            (1) Authorized producer price index.--The term 
        ``authorized Producer Price Index'' includes--
                    (A) the softwood commodity index (code 
                number WPU 0811);
                    (B) the hardwood commodity index (code 
                number WPU 0812);
                    (C) the wood chip index (code number PCU 
                3211133211135); and
                    (D) any other subsequent comparable index, 
                as established by the Bureau of Labor 
                Statistics of the Department of Labor and 
                utilized by the Secretary of Agriculture.
            (2) Qualifying contract.--The term ``qualifying 
        contract'' means a contract for the sale of timber on 
        National Forest System land--
                    (A) that was awarded during the period 
                beginning on July 1, 2004, and ending on 
                December 31, 2006;
                    (B) for which there is unharvested volume 
                remaining;
                    (C) for which, not later than 90 days after 
                the date of enactment of this Act, the timber 
                purchaser makes a written request to the 
                Secretary for one or more of the options 
                described in subsection (b);
                    (D) that is not a salvage sale;
                    (E) for which the Secretary determines 
                there is not an urgent need to harvest due to 
                deteriorating timber conditions that developed 
                after the award of the contract; and
                    (F) that is not in breach or in default.
            (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture, acting through the Chief of 
        the Forest Service.
    (b) Options for Qualifying Contracts.--
            (1) Cancellation or rate redetermination.--
        Notwithstanding any other provision of law, if the rate 
        at which a qualifying contract would be advertised as 
        of the date of enactment of this Act is at least 50 
        percent less than the sum of the original bid rates for 
        all of the species of timber that are the subject of 
        the qualifying contract, the Secretary may, at the sole 
        discretion of the Secretary--
                    (A) cancel the qualifying contract if the 
                timber purchaser--
                            (i) pays 30 percent of the total 
                        value of the timber remaining in the 
                        qualifying contract based on bid rates;
                            (ii) completes each contractual 
                        obligation (including the removal of 
                        downed timber, the completion of road 
                        work, and the completion of erosion 
                        control work) of the timber purchaser 
                        with respect to each unit on which 
                        harvest has begun to a logical stopping 
                        point, as determined by the Secretary 
                        after consultation with the timber 
                        purchaser; and
                            (iii) terminates its rights under 
                        the qualifying contract; or
                    (B) modify the qualifying contract to 
                redetermine the current contract rate of the 
                qualifying contract to equal the sum obtained 
                by adding--
                            (i) 25 percent of the bid premium 
                        on the qualifying contract; and
                            (ii) the rate at which the 
                        qualifying contract would be advertised 
                        as of the date of enactment of this 
                        Act.
            (2) Substitution of index.--
                    (A) Substitution.--Notwithstanding any 
                other provision of law, the Secretary may, at 
                the sole discretion of the Secretary, 
                substitute the Producer Price Index specified 
                in the qualifying contract of a timber 
                purchaser if the timber purchaser identifies--
                            (i) the products the timber 
                        purchaser intends to produce from the 
                        timber harvested under the qualifying 
                        contract; and
                            (ii) a substitute index from an 
                        authorized Producer Price Index that 
                        more accurately represents the 
                        predominant product identified in 
                        clause (i) for which there is an index.
                    (B) Rate redetermination following 
                substitution of index.--If the Secretary 
                substitutes the Producer Price Index of a 
                qualifying contract under subparagraph (A), the 
                Secretary may, at the sole discretion of the 
                Secretary, modify the qualifying contract to 
                provide for--
                            (i) an emergency rate 
                        redetermination under the terms of the 
                        contract; or
                            (ii) a rate redetermination under 
                        paragraph (1)(B).
                    (C) Limitation on market-related contract 
                term addition; periodic payments.--
                Notwithstanding any other provision of law, if 
                the Secretary substitutes the Producer Price 
                Index of a qualifying contract under 
                subparagraph (A), the Secretary may, at the 
                sole discretion of the Secretary, modify the 
                qualifying contract--
                            (i) to adjust the term in 
                        accordance with the market-related 
                        contract term addition provision in the 
                        qualifying contract and section 223.52 
                        of title 36, Code of Federal 
                        Regulations, as in effect on the date 
                        of the adjustment, but only if the 
                        drastic reduction criteria in such 
                        section are met for 2 or more 
                        consecutive calendar year quarters 
                        beginning with the calendar quarter in 
                        which the Secretary substitutes the 
                        Producer Price Index under subparagraph 
                        (A); and
                            (ii) to adjust the periodic 
                        payments required under the contract in 
                        accordance with applicable law and 
                        policies.
            (3) Contracts using hardwood lumber index.--With 
        respect to a qualifying contract using the hardwood 
        commodity index referred to in subsection (a)(1)(B) for 
        which the Secretary does not substitute the Producer 
        Price Index under paragraph (2), the Secretary may, at 
        the sole discretion of the Secretary--
                    (A) extend the contract term for a 1-year 
                period beginning on the current contract 
                termination date; and
                    (B) adjust the periodic payments required 
                under the contract in accordance with 
                applicable law and policies.
    (c) Extension of Market-Related Contract Term Addition Time 
Limit for Certain Contracts.--Notwithstanding any other 
provision of law, upon the written request of a timber 
purchaser, the Secretary may, at the sole discretion of the 
Secretary, modify a timber sale contract (including a 
qualifying contract) awarded to the purchaser before January 1, 
2007, to adjust the term of the contract in accordance with the 
market-related contract term addition provision in the contract 
and section 223.52 of title 36, Code of Federal Regulations, as 
in effect on the date of the modification, except that the 
Secretary may add no more than 4 years to the original contract 
length.
    (d) Effect of Options.--
            (1) No surrender of claims.--Operation of this 
        section shall not have the effect of surrendering any 
        claim by the United States against any timber purchaser 
        that arose--
                    (A) under a qualifying contract before the 
                date on which the Secretary cancels the 
                contract or redetermines the rate under 
                subsection (b)(1), substitutes a Producer Price 
                Index under subsection (b)(2), or modifies the 
                contract under subsection (b)(3); or
                    (B) under a timber sale contract, including 
                a qualifying contract, before the date on which 
                the Secretary adjusts the contract term under 
                subsection (c).
            (2) Release of liability.--In the written request 
        for any option provided under subsections (b) and (c), 
        a timber purchaser shall release the United States from 
        all liability, including further consideration or 
        compensation, resulting from--
                    (A) the cancellation of a qualifying 
                contract of the purchaser or rate 
                redetermination under subsection (b)(1), the 
                substitution of a Producer Price Index under 
                subsection (b)(2), the modification of the 
                contract under subsection (b)(3) or a 
                determination by the Secretary not to provide 
                the cancellation, redetermination, 
                substitution, or modification; or
                    (B) the modification of the term of a 
                timber sale contract (including a qualifying 
                contract) of the purchaser under subsection (c) 
                or a determination by the Secretary not to 
                provide the modification.
            (3) Limitation.--Subject to subsection (b)(1)(A), 
        the cancellation of a qualifying contract by the 
        Secretary under subsection (b)(1) shall release the 
        timber purchaser from further obligation under the 
        canceled contract.

SEC. 8402. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL 
                    RESOURCES LEADERSHIP PROGRAM.

    (a) Definition of Hispanic-Serving Institution.--In this 
section, the term ``Hispanic-serving institution'' has the 
meaning given that term in section 502(a)(5) of the Higher 
Education Act of 1965 (20 U.S.C. 1101a(a)(5)).
    (b) Grant Authority.--The Secretary of Agriculture may make 
grants, on a competitive basis, to Hispanic-serving 
institutions for the purpose of establishing an undergraduate 
scholarship program to assist in the recruitment, retention, 
and training of Hispanics and other under-represented groups in 
forestry and related fields.
    (c) Use of Grant Funds.--Grants made under this section 
shall be used to recruit, retain, train, and develop 
professionals to work in forestry and related fields with 
Federal agencies, such as the Forest Service, State agencies, 
and private-sector entities.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for each of fiscal years 
2008 through 2012 such sums as may be necessary to carry out 
this section.

                            TITLE IX--ENERGY

SEC. 9001. ENERGY.

    (a) In General.--Title IX of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8101 et seq.) is amended to 
read as follows:

                           ``TITLE IX--ENERGY

``SEC. 9001. DEFINITIONS.

    ``Except as otherwise provided, in this title:
            ``(1) Administrator.--The term `Administrator' 
        means the Administrator of the Environmental Protection 
        Agency.
            ``(2) Advisory committee.--The term `Advisory 
        Committee' means the Biomass Research and Development 
        Technical Advisory Committee established by section 
        9008(d)(1).
            ``(3) Advanced biofuel.--
                    ``(A) In general.--The term `advanced 
                biofuel' means fuel derived from renewable 
                biomass other than corn kernel starch.
                    ``(B) Inclusions.--Subject to subparagraph 
                (A), the term `advanced biofuel' includes--
                            ``(i) biofuel derived from 
                        cellulose, hemicellulose, or lignin;
                            ``(ii) biofuel derived from sugar 
                        and starch (other than ethanol derived 
                        from corn kernel starch);
                            ``(iii) biofuel derived from waste 
                        material, including crop residue, other 
                        vegetative waste material, animal 
                        waste, food waste, and yard waste;
                            ``(iv) diesel-equivalent fuel 
                        derived from renewable biomass, 
                        including vegetable oil and animal fat;
                            ``(v) biogas (including landfill 
                        gas and sewage waste treatment gas) 
                        produced through the conversion of 
                        organic matter from renewable biomass;
                            ``(vi) butanol or other alcohols 
                        produced through the conversion of 
                        organic matter from renewable biomass; 
                        and
                            ``(vii) other fuel derived from 
                        cellulosic biomass.
            ``(4) Biobased product.--The term `biobased 
        product' means a product determined by the Secretary to 
        be a commercial or industrial product (other than food 
        or feed) that is--
                    ``(A) composed, in whole or in significant 
                part, of biological products, including 
                renewable domestic agricultural materials and 
                forestry materials; or
                    ``(B) an intermediate ingredient or 
                feedstock.
            ``(5) Biofuel.--The term `biofuel' means a fuel 
        derived from renewable biomass.
            ``(6) Biomass conversion facility.--The term 
        `biomass conversion facility' means a facility that 
        converts or proposes to convert renewable biomass 
        into--
                    ``(A) heat;
                    ``(B) power;
                    ``(C) biobased products; or
                    ``(D) advanced biofuels.
            ``(7) Biorefinery.--The term `biorefinery' means a 
        facility (including equipment and processes) that--
                    ``(A) converts renewable biomass into 
                biofuels and biobased products; and
                    ``(B) may produce electricity.
            ``(8) Board.--The term `Board' means the Biomass 
        Research and Development Board established by section 
        9008(c).
            ``(9) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(10) Institution of higher education.--The term 
        `institution of higher education' has the meaning given 
        the term in section 102(a) of the Higher Education Act 
        of 1965 (20 U.S.C. 1002(a)).
            ``(11) Intermediate ingredient or feedstock.--The 
        term `intermediate ingredient or feedstock' means a 
        material or compound made in whole or in significant 
        part from biological products, including renewable 
        agricultural materials (including plant, animal, and 
        marine materials) or forestry materials, that are 
        subsequently used to make a more complex compound or 
        product.
            ``(12) Renewable biomass.--The term `renewable 
        biomass' means--
                    ``(A) materials, pre-commercial thinnings, 
                or invasive species from National Forest System 
                land and public lands (as defined in section 
                103 of the Federal Land Policy and Management 
                Act of 1976 (43 U.S.C. 1702)) that--
                            ``(i) are byproducts of preventive 
                        treatments that are removed--
                                    ``(I) to reduce hazardous 
                                fuels;
                                    ``(II) to reduce or contain 
                                disease or insect infestation; 
                                or
                                    ``(III) to restore 
                                ecosystem health;
                            ``(ii) would not otherwise be used 
                        for higher-value products; and
                            ``(iii) are harvested in accordance 
                        with--
                                    ``(I) applicable law and 
                                land management plans; and
                                    ``(II) the requirements 
                                for--
                                            ``(aa) old-growth 
                                        maintenance, 
                                        restoration, and 
                                        management direction of 
                                        paragraphs (2), (3), 
                                        and (4) of subsection 
                                        (e) of section 102 of 
                                        the Healthy Forests 
                                        Restoration Act of 2003 
                                        (16 U.S.C. 6512); and
                                            ``(bb) large-tree 
                                        retention of subsection 
                                        (f) of that section; or
                    ``(B) any organic matter that is available 
                on a renewable or recurring basis from non-
                Federal land or land belonging to an Indian or 
                Indian tribe that is held in trust by the 
                United States or subject to a restriction 
                against alienation imposed by the United 
                States, including--
                            ``(i) renewable plant material, 
                        including--
                                    ``(I) feed grains;
                                    ``(II) other agricultural 
                                commodities;
                                    ``(III) other plants and 
                                trees; and
                                    ``(IV) algae; and
                            ``(ii) waste material, including--
                                    ``(I) crop residue;
                                    ``(II) other vegetative 
                                waste material (including wood 
                                waste and wood residues);
                                    ``(III) animal waste and 
                                byproducts (including fats, 
                                oils, greases, and manure); and
                                    ``(IV) food waste and yard 
                                waste.
            ``(13) Renewable energy.--The term `renewable 
        energy' means energy derived from--
                    ``(A) a wind, solar, renewable biomass, 
                ocean (including tidal, wave, current, and 
                thermal), geothermal, or hydroelectric source; 
                or
                    ``(B) hydrogen derived from renewable 
                biomass or water using an energy source 
                described in subparagraph (A).
            ``(14) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.

``SEC. 9002. BIOBASED MARKETS PROGRAM.

    ``(a) Federal Procurement of Biobased Products.--
            ``(1) Definition of procuring agency.--In this 
        subsection, the term `procuring agency' means--
                    ``(A) any Federal agency that is using 
                Federal funds for procurement; or
                    ``(B) a person that is a party to a 
                contract with any Federal agency, with respect 
                to work performed under such a contract.
            ``(2) Procurement preference.--
                    ``(A) In general.--
                            ``(i) Procuring agency duties.--
                        Except as provided in clause (ii) and 
                        subparagraph (B), after the date 
                        specified in applicable guidelines 
                        prepared pursuant to paragraph (3), 
                        each procuring agency shall--
                                    ``(I) establish a 
                                procurement program, develop 
                                procurement specifications, and 
                                procure biobased products 
                                identified under the guidelines 
                                described in paragraph (3) in 
                                accordance with this section; 
                                and
                                    ``(II) with respect to 
                                items described in the 
                                guidelines, give a procurement 
                                preference to those items 
                                that--
                                            ``(aa) are composed 
                                        of the highest 
                                        percentage of biobased 
                                        products practicable; 
                                        or
                                            ``(bb) comply with 
                                        the regulations issued 
                                        under section 103 of 
                                        Public Law 100-556 (42 
                                        U.S.C. 6914b-1).
                            ``(ii) Exception.--The requirements 
                        of clause (i)(I) to establish a 
                        procurement program and develop 
                        procurement specifications shall not 
                        apply to a person described in 
                        paragraph (1)(B).
                    ``(B) Flexibility.--Notwithstanding 
                subparagraph (A), a procuring agency may decide 
                not to procure items described in that 
                subparagraph if the procuring agency determines 
                that the items--
                            ``(i) are not reasonably available 
                        within a reasonable period of time;
                            ``(ii) fail to meet--
                                    ``(I) the performance 
                                standards set forth in the 
                                applicable specifications; or
                                    ``(II) the reasonable 
                                performance standards of the 
                                procuring agencies; or
                            ``(iii) are available only at an 
                        unreasonable price.
                    ``(C) Minimum requirements.--Each 
                procurement program required under this 
                subsection shall, at a minimum--
                            ``(i) be consistent with applicable 
                        provisions of Federal procurement law;
                            ``(ii) ensure that items composed 
                        of biobased products will be purchased 
                        to the maximum extent practicable;
                            ``(iii) include a component to 
                        promote the procurement program;
                            ``(iv) provide for an annual review 
                        and monitoring of the effectiveness of 
                        the procurement program; and
                            ``(v) adopt 1 of the 2 polices 
                        described in subparagraph (D) or (E), 
                        or a policy substantially equivalent to 
                        either of those policies.
                    ``(D) Case-by-case policy.--
                            ``(i) In general.--Subject to 
                        subparagraph (B) and except as provided 
                        in clause (ii), a procuring agency 
                        adopting the case-by-case policy shall 
                        award a contract to the vendor offering 
                        an item composed of the highest 
                        percentage of biobased products 
                        practicable.
                            ``(ii) Exception.--Subject to 
                        subparagraph (B), an agency adopting 
                        the policy described in clause (i) may 
                        make an award to a vendor offering 
                        items with less than the maximum 
                        biobased products content.
                    ``(E) Minimum content standards.--Subject 
                to subparagraph (B), a procuring agency 
                adopting the minimum content standards policy 
                shall establish minimum biobased products 
                content specifications for awarding contracts 
                in a manner that ensures that the biobased 
                products content required is consistent with 
                this subsection.
                    ``(F) Certification.--After the date 
                specified in any applicable guidelines prepared 
                pursuant to paragraph (3), contracting offices 
                shall require that vendors certify that the 
                biobased products to be used in the performance 
                of the contract will comply with the applicable 
                specifications or other contractual 
                requirements.
            ``(3) Guidelines.--
                    ``(A) In general.--The Secretary, after 
                consultation with the Administrator, the 
                Administrator of General Services, and the 
                Secretary of Commerce (acting through the 
                Director of the National Institute of Standards 
                and Technology), shall prepare, and from time 
                to time revise, guidelines for the use of 
                procuring agencies in complying with the 
                requirements of this subsection.
                    ``(B) Requirements.--The guidelines under 
                this paragraph shall--
                            ``(i) designate those items 
                        (including finished products) that are 
                        or can be produced with biobased 
                        products (including biobased products 
                        for which there is only a single 
                        product or manufacturer in the 
                        category) that will be subject to the 
                        preference described in paragraph (2);
                            ``(ii) designate those intermediate 
                        ingredients and feedstocks that are or 
                        can be used to produce items that will 
                        be subject to the preference described 
                        in paragraph (2);
                            ``(iii) automatically designate 
                        items composed of intermediate 
                        ingredients and feedstocks designated 
                        under clause (ii), if the content of 
                        the designated intermediate ingredients 
                        and feedstocks exceeds 50 percent of 
                        the item (unless the Secretary 
                        determines a different composition 
                        percentage is appropriate);
                            ``(iv) set forth recommended 
                        practices with respect to the 
                        procurement of biobased products and 
                        items containing such materials;
                            ``(v) provide information as to the 
                        availability, relative price, 
                        performance, and environmental and 
                        public health benefits of such 
                        materials and items; and
                            ``(vi) take effect on the date 
                        established in the guidelines, which 
                        may not exceed 1 year after 
                        publication.
                    ``(C) Information provided.--Information 
                provided pursuant to subparagraph (B)(v) with 
                respect to a material or item shall be 
                considered to be provided for another item made 
                with the same material or item.
                    ``(D) Prohibition.--Guidelines issued under 
                this paragraph may not require a manufacturer 
                or vendor of biobased products, as a condition 
                of the purchase of biobased products from the 
                manufacturer or vendor, to provide to procuring 
                agencies more data than would be required to be 
                provided by other manufacturers or vendors 
                offering products for sale to a procuring 
                agency, other than data confirming the biobased 
                content of a product.
                    ``(E) Qualifying purchases.--The guidelines 
                shall apply with respect to any purchase or 
                acquisition of a procurement item for which--
                            ``(i) the purchase price of the 
                        item exceeds $10,000; or
                            ``(ii) the quantity of the items or 
                        of functionally-equivalent items 
                        purchased or acquired during the 
                        preceding fiscal year was at least 
                        $10,000.
            ``(4) Administration.--
                    ``(A) Office of federal procurement 
                policy.--The Office of Federal Procurement 
                Policy, in cooperation with the Secretary, 
                shall--
                            ``(i) coordinate the implementation 
                        of this subsection with other policies 
                        for Federal procurement;
                            ``(ii) annually collect the 
                        information required to be reported 
                        under subparagraph (B) and make the 
                        information publicly available;
                            ``(iii) take a leading role in 
                        informing Federal agencies concerning, 
                        and promoting the adoption of and 
                        compliance with, procurement 
                        requirements for biobased products by 
                        Federal agencies; and
                            ``(iv) not less than once every 2 
                        years, submit to Congress a report 
                        that--
                                    ``(I) describes the 
                                progress made in carrying out 
                                this subsection; and
                                    ``(II) contains a summary 
                                of the information reported 
                                pursuant to subparagraph (B).
                    ``(B) Other agencies.--To assist the Office 
                of Federal Procurement Policy in carrying out 
                subparagraph (A)--
                            ``(i) each procuring agency shall 
                        submit each year to the Office of 
                        Federal Procurement Policy, to the 
                        maximum extent practicable, information 
                        concerning--
                                    ``(I) actions taken to 
                                implement paragraph (2);
                                    ``(II) the results of the 
                                annual review and monitoring 
                                program established under 
                                paragraph (2)(C)(iv);
                                    ``(III) the number and 
                                dollar value of contracts 
                                entered into during the year 
                                that include the direct 
                                procurement of biobased 
                                products;
                                    ``(IV) the number of 
                                service and construction 
                                (including renovations) 
                                contracts entered into during 
                                the year that include language 
                                on the use of biobased 
                                products; and
                                    ``(V) the types and dollar 
                                value of biobased products 
                                actually used by contractors in 
                                carrying out service and 
                                construction (including 
                                renovations) contracts during 
                                the previous year; and
                            ``(ii) the General Services 
                        Administration and the Defense 
                        Logistics Agency shall submit each year 
                        to the Office of Federal Procurement 
                        Policy information concerning, to the 
                        maximum extent practicable, the types 
                        and dollar value of biobased products 
                        purchased by procuring agencies.
                    ``(C) Procurement subject to other law.--
                Any procurement by any Federal agency that is 
                subject to regulations of the Administrator 
                under section 6002 of the Solid Waste Disposal 
                Act (42 U.S.C. 6962) shall not be subject to 
                the requirements of this section to the extent 
                that the requirements are inconsistent with the 
                regulations.
    ``(b) Labeling.--
            ``(1) In general.--The Secretary, in consultation 
        with the Administrator, shall establish a voluntary 
        program under which the Secretary authorizes producers 
        of biobased products to use the label `USDA Certified 
        Biobased Product'.
            ``(2) Eligibility criteria.--
                    ``(A) Criteria.--
                            ``(i) In general.--Not later than 
                        90 days after the date of the enactment 
                        of the Food, Conservation, and Energy 
                        Act of 2008 and except as provided in 
                        clause (ii), the Secretary, in 
                        consultation with the Administrator and 
                        representatives from small and large 
                        businesses, academia, other Federal 
                        agencies, and such other persons as the 
                        Secretary considers appropriate, shall 
                        issue criteria (as of the date of 
                        enactment of that Act) for determining 
                        which products may qualify to receive 
                        the label under paragraph (1).
                            ``(ii) Exception.--Clause (i) shall 
                        not apply to final criteria that have 
                        been issued (as of the date of 
                        enactment of that Act) by the 
                        Secretary.
                    ``(B) Requirements.--Criteria issued under 
                subparagraph (A) shall--
                            ``(i) encourage the purchase of 
                        products with the maximum biobased 
                        content;
                            ``(ii) provide that the Secretary 
                        may designate as biobased for the 
                        purposes of the voluntary program 
                        established under this subsection 
                        finished products that contain 
                        significant portions of biobased 
                        materials or components; and
                            ``(iii) to the maximum extent 
                        practicable, be consistent with the 
                        guidelines issued under subsection 
                        (a)(3).
            ``(3) Use of label.--The Secretary shall ensure 
        that the label referred to in paragraph (1) is used 
        only on products that meet the criteria issued pursuant 
        to paragraph (2).
    ``(c) Recognition.--The Secretary shall--
            ``(1) establish a program to recognize Federal 
        agencies and private entities that use a substantial 
        amount of biobased products; and
            ``(2) encourage Federal agencies to establish 
        incentives programs to recognize Federal employees or 
        contractors that make exceptional contributions to the 
        expanded use of biobased products.
    ``(d) Limitation.--Nothing in this section shall apply to 
the procurement of motor vehicle fuels, heating oil, or 
electricity.
    ``(e) Inclusion.--Effective beginning on the date that is 
90 days after the date of enactment of the Food, Conservation, 
and Energy Act of 2008, the Architect of the Capitol, the 
Sergeant at Arms of the Senate, and the Chief Administrative 
Officer of the House of Representatives shall consider the 
biobased product designations made under this section in making 
procurement decisions for the Capitol Complex.
    ``(f) National Testing Center Registry.--The Secretary 
shall establish a national registry of testing centers for 
biobased products that will serve biobased product 
manufacturers.
    ``(g) Reports.--
            ``(1) In general.--Not later than 180 days after 
        the date of enactment of the Food, Conservation, and 
        Energy Act of 2008 and each year thereafter, the 
        Secretary shall submit to Congress a report on the 
        implementation of this section.
            ``(2) Contents.--The report shall include--
                    ``(A) a comprehensive management plan that 
                establishes tasks, milestones, and timelines, 
                organizational roles and responsibilities, and 
                funding allocations for fully implementing this 
                section; and
                    ``(B) information on the status of 
                implementation of--
                            ``(i) item designations (including 
                        designation of intermediate ingredients 
                        and feedstocks); and
                            ``(ii) the voluntary labeling 
                        program established under subsection 
                        (b).
    ``(h) Funding.--
            ``(1) Mandatory funding.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use 
        to provide mandatory funding for biobased products 
        testing and labeling as required to carry out this 
        section--
                    ``(A) $1,000,000 for fiscal year 2008; and
                    ``(B) $2,000,000 for each of fiscal years 
                2009 through 2012.
            ``(2) Discretionary funding.--In addition to any 
        other funds made available to carry out this section, 
        there is authorized to be appropriated to carry out 
        this section $2,000,000 for each of fiscal years 2009 
        through 2012.

``SEC. 9003. BIOREFINERY ASSISTANCE.

    ``(a) Purpose.--The purpose of this section is to assist in 
the development of new and emerging technologies for the 
development of advanced biofuels, so as to--
            ``(1) increase the energy independence of the 
        United States;
            ``(2) promote resource conservation, public health, 
        and the environment;
            ``(3) diversify markets for agricultural and 
        forestry products and agriculture waste material; and
            ``(4) create jobs and enhance the economic 
        development of the rural economy.
    ``(b) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' 
        means an individual, entity, Indian tribe, or unit of 
        State or local government, including a corporation, 
        farm cooperative, farmer cooperative organization, 
        association of agricultural producers, National 
        Laboratory, institution of higher education, rural 
        electric cooperative, public power entity, or 
        consortium of any of those entities.
            ``(2) Eligible technology.--The term `eligible 
        technology' means, as determined by the Secretary--
                    ``(A) a technology that is being adopted in 
                a viable commercial-scale operation of a 
                biorefinery that produces an advanced biofuel; 
                and
                    ``(B) a technology not described in 
                subparagraph (A) that has been demonstrated to 
                have technical and economic potential for 
                commercial application in a biorefinery that 
                produces an advanced biofuel.
    ``(c) Assistance.--The Secretary shall make available to 
eligible entities--
            ``(1) grants to assist in paying the costs of the 
        development and construction of demonstration-scale 
        biorefineries to demonstrate the commercial viability 
        of 1 or more processes for converting renewable biomass 
        to advanced biofuels; and
            ``(2) guarantees for loans made to fund the 
        development, construction, and retrofitting of 
        commercial-scale biorefineries using eligible 
        technology.
    ``(d) Grants.--
            ``(1) Competitive basis.--The Secretary shall award 
        grants under subsection (c)(1) on a competitive basis.
            ``(2) Selection criteria.--
                    ``(A) In general.--In approving grant 
                applications, the Secretary shall establish a 
                priority scoring system that assigns priority 
                scores to each application and only approve 
                applications that exceed a specified minimum, 
                as determined by the Secretary.
                    ``(B) Feasibility.--In approving a grant 
                application, the Secretary shall determine the 
                technical and economic feasibility of the 
                project based on a feasibility study of the 
                project described in the application conducted 
                by an independent third party.
                    ``(C) Scoring system.--In determining the 
                priority scoring system, the Secretary shall 
                consider--
                            ``(i) the potential market for the 
                        advanced biofuel and the byproducts 
                        produced;
                            ``(ii) the level of financial 
                        participation by the applicant, 
                        including support from non-Federal and 
                        private sources;
                            ``(iii) whether the applicant is 
                        proposing to use a feedstock not 
                        previously used in the production of 
                        advanced biofuels;
                            ``(iv) whether the applicant is 
                        proposing to work with producer 
                        associations or cooperatives;
                            ``(v) whether the applicant has 
                        established that the adoption of the 
                        process proposed in the application 
                        will have a positive impact on resource 
                        conservation, public health, and the 
                        environment;
                            ``(vi) the potential for rural 
                        economic development;
                            ``(vii) whether the area in which 
                        the applicant proposes to locate the 
                        biorefinery has other similar 
                        facilities;
                            ``(viii) whether the project can be 
                        replicated; and
                            ``(ix) scalability for commercial 
                        use.
            ``(3) Cost sharing.--
                    ``(A) Limits.--The amount of a grant 
                awarded for development and construction of a 
                biorefinery under subsection (c)(1) shall not 
                exceed an amount equal to 30 percent of the 
                cost of the project.
                    ``(B) Form of grantee share.--
                            ``(i) In general.--The grantee 
                        share of the cost of a project may be 
                        made in the form of cash or material.
                            ``(ii) Limitation.--The amount of 
                        the grantee share that is made in the 
                        form of material shall not exceed 15 
                        percent of the amount of the grantee 
                        share determined under subparagraph 
                        (A).
    ``(e) Loan Guarantees.--
            ``(1) Selection criteria.--
                    ``(A) In general.--In approving loan 
                guarantee applications, the Secretary shall 
                establish a priority scoring system that 
                assigns priority scores to each application and 
                only approve applications that exceed a 
                specified minimum, as determined by the 
                Secretary.
                    ``(B) Feasibility.--In approving a loan 
                guarantee application, the Secretary shall 
                determine the technical and economic 
                feasibility of the project based on a 
                feasibility study of the project described in 
                the application conducted by an independent 
                third party.
                    ``(C) Scoring system.--In determining the 
                priority scoring system for loan guarantees 
                under subsection (c)(2), the Secretary shall 
                consider--
                            ``(i) whether the applicant has 
                        established a market for the advanced 
                        biofuel and the byproducts produced;
                            ``(ii) whether the area in which 
                        the applicant proposes to place the 
                        biorefinery has other similar 
                        facilities;
                            ``(iii) whether the applicant is 
                        proposing to use a feedstock not 
                        previously used in the production of 
                        advanced biofuels;
                            ``(iv) whether the applicant is 
                        proposing to work with producer 
                        associations or cooperatives;
                            ``(v) the level of financial 
                        participation by the applicant, 
                        including support from non-Federal and 
                        private sources;
                            ``(vi) whether the applicant has 
                        established that the adoption of the 
                        process proposed in the application 
                        will have a positive impact on resource 
                        conservation, public health, and the 
                        environment;
                            ``(vii) whether the applicant can 
                        establish that if adopted, the biofuels 
                        production technology proposed in the 
                        application will not have any 
                        significant negative impacts on 
                        existing manufacturing plants or other 
                        facilities that use similar feedstocks;
                            ``(viii) the potential for rural 
                        economic development;
                            ``(ix) the level of local ownership 
                        proposed in the application; and
                            ``(x) whether the project can be 
                        replicated.
            ``(2) Limitations.--
                    ``(A) Maximum amount of loan guaranteed.--
                The principal amount of a loan guaranteed under 
                subsection (c)(2) may not exceed $250,000,000.
                    ``(B) Maximum percentage of loan 
                guaranteed.--
                            ``(i) In general.--Except as 
                        otherwise provided in this 
                        subparagraph, a loan guaranteed under 
                        subsection (c)(2) shall be in an amount 
                        not to exceed 80 percent of the project 
                        costs, as determined by the Secretary.
                            ``(ii) Other direct federal 
                        funding.--The amount of a loan 
                        guaranteed for a project under 
                        subsection (c)(2) shall be reduced by 
                        the amount of other direct Federal 
                        funding that the eligible entity 
                        receives for the same project.
                            ``(iii) Authority to guarantee the 
                        loan.--The Secretary may guarantee up 
                        to 90 percent of the principal and 
                        interest due on a loan guaranteed under 
                        subsection (c)(2).
                    ``(C) Loan guarantee fund distribution.--Of 
                the funds made available for loan guarantees 
                for a fiscal year under subsection (h), 50 
                percent of the funds shall be reserved for 
                obligation during the second half of the fiscal 
                year.
    ``(f) Consultation.--In carrying out this section, the 
Secretary shall consult with the Secretary of Energy.
    ``(g) Condition on Provision of Assistance.--
            ``(1) In general.--As a condition of receiving a 
        grant or loan guarantee under this section, an eligible 
        entity shall ensure that all laborers and mechanics 
        employed by contractors or subcontractors in the 
        performance of construction work financed, in whole or 
        in part, with the grant or loan guarantee, as the case 
        may be, shall be paid wages at rates not less than 
        those prevailing on similar construction in the 
        locality, as determined by the Secretary of Labor in 
        accordance with sections 3141 through 3144, 3146, and 
        3147 of title 40, United States Code.
            ``(2) Authority and functions.--The Secretary of 
        Labor shall have, with respect to the labor standards 
        described in paragraph (1), the authority and functions 
        set forth in Reorganization Plan Numbered 14 of 1950 (5 
        U.S.C. App) and section 3145 of title 40, United States 
        Code.
    ``(h) Funding.--
            ``(1) Mandatory funding.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use 
        for the cost of loan guarantees under this section, to 
        remain available until expended--
                    ``(A) $75,000,000 for fiscal year 2009; and
                    ``(B) $245,000,000 for fiscal year 2010.
            ``(2) Discretionary funding.--In addition to any 
        other funds made available to carry out this section, 
        there is authorized to be appropriated to carry out 
        this section $150,000,000 for each of fiscal years 2009 
        through 2012.

``SEC. 9004. REPOWERING ASSISTANCE.

    ``(a) In General.--The Secretary shall carry out a program 
to encourage biorefineries in existence on the date of 
enactment of the Food, Conservation, and Energy Act of 2008 to 
replace fossil fuels used to produce heat or power to operate 
the biorefineries by making payments for--
            ``(1) the installation of new systems that use 
        renewable biomass; or
            ``(2) the new production of energy from renewable 
        biomass.
    ``(b) Payments.--
            ``(1) In general.--The Secretary may make payments 
        under this section to any biorefinery that meets the 
        requirements of this section for a period determined by 
        the Secretary.
            ``(2) Amount.--The Secretary shall determine the 
        amount of payments to be made under this section to a 
        biorefinery after considering--
                    ``(A) the quantity of fossil fuels a 
                renewable biomass system is replacing;
                    ``(B) the percentage reduction in fossil 
                fuel used by the biorefinery that will result 
                from the installation of the renewable biomass 
                system; and
                    ``(C) the cost and cost effectiveness of 
                the renewable biomass system.
    ``(c) Eligibility.--To be eligible to receive a payment 
under this section, a biorefinery shall demonstrate to the 
Secretary that the renewable biomass system of the biorefinery 
is feasible based on an independent feasibility study that 
takes into account the economic, technical and environmental 
aspects of the system.
    ``(d) Funding.--
            ``(1) Mandatory funding.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use 
        to make payments under this section $35,000,000 for 
        fiscal year 2009, to remain available until expended.
            ``(2) Discretionary funding.--In addition to any 
        other funds made available to carry out this section, 
        there is authorized to be appropriated to carry out 
        this section $15,000,000 for each of fiscal years 2009 
        through 2012.

``SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

    ``(a) Definition of Eligible Producer.--In this section, 
the term `eligible producer' means a producer of advanced 
biofuels.
    ``(b) Payments.--The Secretary shall make payments to 
eligible producers to support and ensure an expanding 
production of advanced biofuels.
    ``(c) Contracts.--To receive a payment, an eligible 
producer shall--
            ``(1) enter into a contract with the Secretary for 
        production of advanced biofuels; and
            ``(2) submit to the Secretary such records as the 
        Secretary may require as evidence of the production of 
        advanced biofuels.
    ``(d) Basis for Payments.--The Secretary shall make 
payments under this section to eligible producers based on--
            ``(1) the quantity and duration of production by 
        the eligible producer of an advanced biofuel;
            ``(2) the net nonrenewable energy content of the 
        advanced biofuel, if sufficient data is available, as 
        determined by the Secretary; and
            ``(3) other appropriate factors, as determined by 
        the Secretary.
    ``(e) Equitable Distribution.--The Secretary may limit the 
amount of payments that may be received by a single eligible 
producer under this section in order to distribute the total 
amount of funding available in an equitable manner.
    ``(f) Other Requirements.--To receive a payment under this 
section, an eligible producer shall meet any other requirements 
of Federal and State law (including regulations) applicable to 
the production of advanced biofuels.
    ``(g) Funding.--
            ``(1) Mandatory funding.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use 
        to carry out this section, to remain available until 
        expended--
                    ``(A) $55,000,000 for fiscal year 2009;
                    ``(B) $55,000,000 for fiscal year 2010;
                    ``(C) $85,000,000 for fiscal year 2011; and
                    ``(D) $105,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to any 
        other funds made available to carry out this section, 
        there is authorized to be appropriated to carry out 
        this section $25,000,000 for each of fiscal years 2009 
        through 2012.
            ``(3) Limitation.--Of the funds provided for each 
        fiscal year, not more than 5 percent of the funds shall 
        be made available to eligible producers for production 
        at facilities with a total refining capacity exceeding 
        150,000,000 gallons per year.

``SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.

    ``(a) Establishment.--The Secretary shall, under such terms 
and conditions as the Secretary determines to be appropriate, 
make competitive grants to eligible entities to educate 
governmental and private entities that operate vehicle fleets, 
other interested entities (as determined by the Secretary), and 
the public about the benefits of biodiesel fuel use.
    ``(b) Eligible Entities.--To receive a grant under 
subsection (b), an entity shall--
            ``(1) be a nonprofit organization or institution of 
        higher education;
            ``(2) have demonstrated knowledge of biodiesel fuel 
        production, use, or distribution; and
            ``(3) have demonstrated the ability to conduct 
        educational and technical support programs.
    ``(c) Consultation.--In carrying out this section, the 
Secretary shall consult with the Secretary of Energy.
    ``(d) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out this section 
$1,000,000 for each of fiscal years 2008 through 2012.

``SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

    ``(a) Establishment.--The Secretary, in consultation with 
the Secretary of Energy, shall establish a Rural Energy for 
America Program to promote energy efficiency and renewable 
energy development for agricultural producers and rural small 
businesses through--
            ``(1) grants for energy audits and renewable energy 
        development assistance; and
            ``(2) financial assistance for energy efficiency 
        improvements and renewable energy systems.
    ``(b) Energy Audits and Renewable Energy Development 
Assistance.--
            ``(1) In general.--The Secretary shall make 
        competitive grants to eligible entities to provide 
        assistance to agricultural producers and rural small 
        businesses--
                    ``(A) to become more energy efficient; and
                    ``(B) to use renewable energy technologies 
                and resources.
            ``(2) Eligible entities.--An eligible entity under 
        this subsection is--
                    ``(A) a unit of State, tribal, or local 
                government;
                    ``(B) a land-grant college or university or 
                other institution of higher education;
                    ``(C) a rural electric cooperative or 
                public power entity; and
                    ``(D) any other similar entity, as 
                determined by the Secretary.
            ``(3) Selection criteria.--In reviewing 
        applications of eligible entities to receive grants 
        under paragraph (1), the Secretary shall consider--
                    ``(A) the ability and expertise of the 
                eligible entity in providing professional 
                energy audits and renewable energy assessments;
                    ``(B) the geographic scope of the program 
                proposed by the eligible entity in relation to 
                the identified need;
                    ``(C) the number of agricultural producers 
                and rural small businesses to be assisted by 
                the program;
                    ``(D) the potential of the proposed program 
                to produce energy savings and environmental 
                benefits;
                    ``(E) the plan of the eligible entity for 
                performing outreach and providing information 
                and assistance to agricultural producers and 
                rural small businesses on the benefits of 
                energy efficiency and renewable energy 
                development; and
                    ``(F) the ability of the eligible entity to 
                leverage other sources of funding.
            ``(4) Use of grant funds.--A recipient of a grant 
        under paragraph (1) shall use the grant funds to assist 
        agricultural producers and rural small businesses by--
                    ``(A) conducting and promoting energy 
                audits; and
                    ``(B) providing recommendations and 
                information on how--
                            ``(i) to improve the energy 
                        efficiency of the operations of the 
                        agricultural producers and rural small 
                        businesses; and
                            ``(ii) to use renewable energy 
                        technologies and resources in the 
                        operations.
            ``(5) Limitation.--Grant recipients may not use 
        more than 5 percent of a grant for administrative 
        expenses.
            ``(6) Cost sharing.--A recipient of a grant under 
        paragraph (1) that conducts an energy audit for an 
        agricultural producer or rural small business under 
        paragraph (4) shall require that, as a condition of the 
        energy audit, the agricultural producer or rural small 
        business pay at least 25 percent of the cost of the 
        energy audit, which shall be retained by the eligible 
        entity for the cost of the energy audit.
    ``(c) Financial Assistance for Energy Efficiency 
Improvements and Renewable Energy Systems.--
            ``(1) In general.--In addition to any similar 
        authority, the Secretary shall provide loan guarantees 
        and grants to agricultural producers and rural small 
        businesses--
                    ``(A) to purchase renewable energy systems, 
                including systems that may be used to produce 
                and sell electricity; and
                    ``(B) to make energy efficiency 
                improvements.
            ``(2) Award considerations.--In determining the 
        amount of a loan guarantee or grant provided under this 
        section, the Secretary shall take into consideration, 
        as applicable--
                    ``(A) the type of renewable energy system 
                to be purchased;
                    ``(B) the estimated quantity of energy to 
                be generated by the renewable energy system;
                    ``(C) the expected environmental benefits 
                of the renewable energy system;
                    ``(D) the quantity of energy savings 
                expected to be derived from the activity, as 
                demonstrated by an energy audit;
                    ``(E) the estimated period of time for the 
                energy savings generated by the activity to 
                equal the cost of the activity;
                    ``(F) the expected energy efficiency of the 
                renewable energy system; and
                    ``(G) other appropriate factors.
            ``(3) Feasibility studies.--
                    ``(A) In general.--The Secretary may 
                provide assistance in the form of grants to an 
                agricultural producer or rural small business 
                to conduct a feasibility study for a project 
                for which assistance may be provided under this 
                subsection.
                    ``(B) Limitation.--The Secretary shall use 
                not more than 10 percent of the funds made 
                available to carry out this subsection to 
                provide assistance described in subparagraph 
                (A).
                    ``(C) Avoidance of duplicative 
                assistance.--An entity shall be ineligible to 
                receive assistance to carry out a feasibility 
                study for a project under this paragraph if the 
                entity has received other Federal or State 
                assistance for a feasibility study for the 
                project.
            ``(4) Limits.--
                    ``(A) Grants.--The amount of a grant under 
                this subsection shall not exceed 25 percent of 
                the cost of the activity carried out using 
                funds from the grant.
                    ``(B) Maximum amount of loan guarantees.--
                The amount of a loan guaranteed under this 
                subsection shall not exceed $25,000,000.
                    ``(C) Maximum amount of combined grant and 
                loan guarantee.--The combined amount of a grant 
                and loan guaranteed under this subsection shall 
                not exceed 75 percent of the cost of the 
                activity funded under this subsection.
    ``(d) Outreach.--The Secretary shall ensure, to the maximum 
extent practicable, that adequate outreach relating to this 
section is being conducted at the State and local levels.
    ``(e) Lower-Cost Activities.--
            ``(1) Limitation on use of funds.--Except as 
        provided in paragraph (2), the Secretary shall use not 
        less than 20 percent of the funds made available under 
        subsection (g) to provide grants of $20,000 or less.
            ``(2) Exception.--Effective beginning on June 30 of 
        each fiscal year, paragraph (1) shall not apply to 
        funds made available under subsection (g) for the 
        fiscal year.
    ``(f) Report.--Not later than 4 years after the date of 
enactment of the Food, Conservation, and Energy Act of 2008, 
the Secretary shall submit to Congress a report on the 
implementation of this section, including the outcomes achieved 
by projects funded under this section.
    ``(g) Funding.--
            ``(1) Mandatory funding.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use 
        to carry out this section, to remain available until 
        expended--
                    ``(A) $55,000,000 for fiscal year 2009;
                    ``(B) $60,000,000 for fiscal year 2010;
                    ``(C) $70,000,000 for fiscal year 2011; and
                    ``(D) $70,000,000 for fiscal year 2012.
            ``(2) Audit and technical assistance funding.--
                    ``(A) In general.--Subject to subparagraph 
                (B), of the funds made available for each 
                fiscal year under paragraph (1), 4 percent 
                shall be available to carry out subsection (b).
                    ``(B) Other use.--Funds not obligated under 
                subparagraph (A) by April 1 of each fiscal year 
                to carry out subsection (b) shall become 
                available to carry out subsection (c).
            ``(3) Discretionary funding.--In addition to any 
        other funds made available to carry out this section, 
        there is authorized to be appropriated to carry out 
        this section $25,000,000 for each of fiscal years 2009 
        through 2012.

``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

    ``(a) Definitions.--In this section:
            ``(1) Biobased product.--The term `biobased 
        product' means--
                    ``(A) an industrial product (including 
                chemicals, materials, and polymers) produced 
                from biomass; or
                    ``(B) a commercial or industrial product 
                (including animal feed and electric power) 
                derived in connection with the conversion of 
                biomass to fuel.
            ``(2) Demonstration.--The term `demonstration' 
        means demonstration of technology in a pilot plant or 
        semi-works scale facility, including a plant or 
        facility located on a farm.
            ``(3) Initiative.--The term `Initiative' means the 
        Biomass Research and Development Initiative established 
        under subsection (e).
    ``(b) Cooperation and Coordination in Biomass Research and 
Development.--
            ``(1) In general.--The Secretary of Agriculture and 
        the Secretary of Energy shall coordinate policies and 
        procedures that promote research and development 
        regarding the production of biofuels and biobased 
        products.
            ``(2) Points of contact.--To coordinate research 
        and development programs and activities relating to 
        biofuels and biobased products that are carried out by 
        their respective departments--
                    ``(A) the Secretary of Agriculture shall 
                designate, as the point of contact for the 
                Department of Agriculture, an officer of the 
                Department of Agriculture appointed by the 
                President to a position in the Department 
                before the date of the designation, by and with 
                the advice and consent of the Senate; and
                    ``(B) the Secretary of Energy shall 
                designate, as the point of contact for the 
                Department of Energy, an officer of the 
                Department of Energy appointed by the President 
                to a position in the Department before the date 
                of the designation, by and with the advice and 
                consent of the Senate.
    ``(c) Biomass Research and Development Board.--
            ``(1) Establishment.--There is established the 
        Biomass Research and Development Board to carry out the 
        duties described in paragraph (3).
            ``(2) Membership.--The Board shall consist of--
                    ``(A) the point of contacts of the 
                Department of Energy and the Department of 
                Agriculture, who shall serve as cochairpersons 
                of the Board;
                    ``(B) a senior officer of each of the 
                Department of the Interior, the Environmental 
                Protection Agency, the National Science 
                Foundation, and the Office of Science and 
                Technology Policy, each of whom shall have a 
                rank that is equivalent to the rank of the 
                points of contact; and
                    ``(C) at the option of the Secretary of 
                Agriculture and the Secretary of Energy, other 
                members appointed by the Secretaries (after 
                consultation with the Board).
            ``(3) Duties.--The Board shall--
                    ``(A) coordinate research and development 
                activities relating to biofuels and biobased 
                products--
                            ``(i) between the Department of 
                        Agriculture and the Department of 
                        Energy; and
                            ``(ii) with other departments and 
                        agencies of the Federal Government;
                    ``(B) provide recommendations to the points 
                of contact concerning administration of this 
                title;
                    ``(C) ensure that--
                            ``(i) solicitations are open and 
                        competitive with awards made annually; 
                        and
                            ``(ii) objectives and evaluation 
                        criteria of the solicitations are 
                        clearly stated and minimally 
                        prescriptive, with no areas of special 
                        interest; and
                    ``(D) ensure that the panel of scientific 
                and technical peers assembled under subsection 
                (e) to review proposals is composed 
                predominantly of independent experts selected 
                from outside the Departments of Agriculture and 
                Energy.
            ``(4) Funding.--Each agency represented on the 
        Board is encouraged to provide funds for any purpose 
        under this section.
            ``(5) Meetings.--The Board shall meet at least 
        quarterly.
    ``(d) Biomass Research and Development Technical Advisory 
Committee.--
            ``(1) Establishment.--There is established the 
        Biomass Research and Development Technical Advisory 
        Committee to carry out the duties described in 
        paragraph (3).
            ``(2) Membership.--
                    ``(A) In general.--The Advisory Committee 
                shall consist of--
                            ``(i) an individual affiliated with 
                        the biofuels industry;
                            ``(ii) an individual affiliated 
                        with the biobased industrial and 
                        commercial products industry;
                            ``(iii) an individual affiliated 
                        with an institution of higher education 
                        who has expertise in biofuels and 
                        biobased products;
                            ``(iv) 2 prominent engineers or 
                        scientists from government or academia 
                        who have expertise in biofuels and 
                        biobased products;
                            ``(v) an individual affiliated with 
                        a commodity trade association;
                            ``(vi) 2 individuals affiliated 
                        with environmental or conservation 
                        organizations;
                            ``(vii) an individual associated 
                        with State government who has expertise 
                        in biofuels and biobased products;
                            ``(viii) an individual with 
                        expertise in energy and environmental 
                        analysis;
                            ``(ix) an individual with expertise 
                        in the economics of biofuels and 
                        biobased products;
                            ``(x) an individual with expertise 
                        in agricultural economics;
                            ``(xi) an individual with expertise 
                        in plant biology and biomass feedstock 
                        development;
                            ``(xii) an individual with 
                        expertise in agronomy, crop science, or 
                        soil science; and
                            ``(xiii) at the option of the 
                        points of contact, other members.
                    ``(B) Appointment.--The members of the 
                Advisory Committee shall be appointed by the 
                points of contact.
            ``(3) Duties.--The Advisory Committee shall--
                    ``(A) advise the points of contact with 
                respect to the Initiative; and
                    ``(B) evaluate and make recommendations in 
                writing to the Board regarding whether--
                            ``(i) funds authorized for the 
                        Initiative are distributed and used in 
                        a manner that is consistent with the 
                        objectives, purposes, and 
                        considerations of the Initiative;
                            ``(ii) solicitations are open and 
                        competitive with awards made annually;
                            ``(iii) objectives and evaluation 
                        criteria of the solicitations are 
                        clearly stated and minimally 
                        prescriptive, with no areas of special 
                        interest;
                            ``(iv) the points of contact are 
                        funding proposals under this title that 
                        are selected on the basis of merit, as 
                        determined by an independent panel of 
                        scientific and technical peers 
                        predominantly from outside the 
                        Departments of Agriculture and Energy; 
                        and
                            ``(v) activities under this title 
                        are carried out in accordance with this 
                        title.
            ``(4) Coordination.--To avoid duplication of 
        effort, the Advisory Committee shall coordinate its 
        activities with those of other Federal advisory 
        committees working in related areas.
            ``(5) Meetings.--The Advisory Committee shall meet 
        at least quarterly.
            ``(6) Terms.--Members of the Advisory Committee 
        shall be appointed for a term of 3 years.
    ``(e) Biomass Research and Development Initiative.--
            ``(1) In general.--The Secretary of Agriculture and 
        the Secretary of Energy, acting through their 
        respective points of contact and in consultation with 
        the Board, shall establish and carry out a Biomass 
        Research and Development Initiative under which 
        competitively awarded grants, contracts, and financial 
        assistance are provided to, or entered into with, 
        eligible entities to carry out research on and 
        development and demonstration of--
                    ``(A) biofuels and biobased products; and
                    ``(B) the methods, practices, and 
                technologies, for the production of biofuels 
                and biobased products.
            ``(2) Objectives.--The objectives of the Initiative 
        are to develop--
                    ``(A) technologies and processes necessary 
                for abundant commercial production of biofuels 
                at prices competitive with fossil fuels;
                    ``(B) high-value biobased products--
                            ``(i) to enhance the economic 
                        viability of biofuels and power;
                            ``(ii) to serve as substitutes for 
                        petroleum-based feedstocks and 
                        products; and
                            ``(iii) to enhance the value of 
                        coproducts produced using the 
                        technologies and processes; and
                    ``(C) a diversity of economically and 
                environmentally sustainable domestic sources of 
                renewable biomass for conversion to biofuels, 
                bioenergy, and biobased products.
            ``(3) Technical areas.--The Secretary of 
        Agriculture and the Secretary of Energy, in 
        consultation with the Administrator of the 
        Environmental Protection Agency and heads of other 
        appropriate departments and agencies (referred to in 
        this subsection as the `Secretaries'), shall direct the 
        Initiative in the 3 following areas:
                    ``(A) Feedstocks development.--Research, 
                development, and demonstration activities 
                regarding feedstocks and feedstock logistics 
                (including the harvest, handling, transport, 
                preprocessing, and storage) relevant to 
                production of raw materials for conversion to 
                biofuels and biobased products.
                    ``(B) Biofuels and biobased products 
                development.--Research, development, and 
                demonstration activities to support--
                            ``(i) the development of diverse 
                        cost-effective technologies for the use 
                        of cellulosic biomass in the production 
                        of biofuels and biobased products; and
                            ``(ii) product diversification 
                        through technologies relevant to 
                        production of a range of biobased 
                        products (including chemicals, animal 
                        feeds, and cogenerated power) that 
                        potentially can increase the 
                        feasibility of fuel production in a 
                        biorefinery.
                    ``(C) Biofuels development analysis.--
                            ``(i) Strategic guidance.--The 
                        development of analysis that provides 
                        strategic guidance for the application 
                        of renewable biomass technologies to 
                        improve sustainability and 
                        environmental quality, cost 
                        effectiveness, security, and rural 
                        economic development.
                            ``(ii) Energy and environmental 
                        impact.--Development of systematic 
                        evaluations of the impact of expanded 
                        biofuel production on the environment 
                        (including forest land) and on the food 
                        supply for humans and animals, 
                        including the improvement and 
                        development of tools for life cycle 
                        analysis of current and potential 
                        biofuels.
                            ``(iii) Assessment of federal 
                        land.--Assessments of the potential of 
                        Federal land resources to increase the 
                        production of feedstocks for biofuels 
                        and biobased products, consistent with 
                        the integrity of soil and water 
                        resources and with other environmental 
                        considerations.
            ``(4) Additional considerations.--Within the 
        technical areas described in paragraph (3), the 
        Secretaries shall support research and development--
                    ``(A) to create continuously expanding 
                opportunities for participants in existing 
                biofuels production by seeking synergies and 
                continuity with current technologies and 
                practices;
                    ``(B) to maximize the environmental, 
                economic, and social benefits of production of 
                biofuels and derived biobased products on a 
                large scale; and
                    ``(C) to facilitate small-scale production 
                and local and on-farm use of biofuels, 
                including the development of small-scale 
                gasification technologies for production of 
                biofuel from cellulosic feedstocks.
            ``(5) Eligibility.--To be eligible for a grant, 
        contract, or assistance under this section, an 
        applicant shall be--
                    ``(A) an institution of higher education;
                    ``(B) a National Laboratory;
                    ``(C) a Federal research agency;
                    ``(D) a State research agency;
                    ``(E) a private sector entity;
                    ``(F) a nonprofit organization; or
                    ``(G) a consortium of 2 or more entities 
                described in subparagraphs (A) through (F).
            ``(6) Administration.--
                    ``(A) In general.--After consultation with 
                the Board, the points of contact shall--
                            ``(i) publish annually 1 or more 
                        joint requests for proposals for 
                        grants, contracts, and assistance under 
                        this subsection;
                            ``(ii) require that grants, 
                        contracts, and assistance under this 
                        section be awarded based on a 
                        scientific peer review by an 
                        independent panel of scientific and 
                        technical peers;
                            ``(iii) give special consideration 
                        to applications that--
                                    ``(I) involve a consortia 
                                of experts from multiple 
                                institutions;
                                    ``(II) encourage the 
                                integration of disciplines and 
                                application of the best 
                                technical resources; and
                                    ``(III) increase the 
                                geographic diversity of 
                                demonstration projects; and
                            ``(iv) require that the technical 
                        areas described in each of 
                        subparagraphs (A), (B), and (C) of 
                        paragraph (3) receive not less than 15 
                        percent of funds made available to 
                        carry out this section.
                    ``(B) Cost share.--
                            ``(i) Research and development 
                        projects.--
                                    ``(I) In general.--Except 
                                as provided in subclause (II), 
                                the non-Federal share of the 
                                cost of a research or 
                                development project under this 
                                section shall be not less than 
                                20 percent.
                                    ``(II) Reduction.--The 
                                Secretary of Agriculture or the 
                                Secretary of Energy, as 
                                appropriate, may reduce the 
                                non-Federal share required 
                                under subclause (I) if the 
                                appropriate Secretary 
                                determines the reduction to be 
                                necessary and appropriate.
                            ``(ii) Demonstration and commercial 
                        projects.--The non-Federal share of the 
                        cost of a demonstration or commercial 
                        project under this section shall be not 
                        less than 50 percent.
                    ``(C) Technology and information 
                transfer.--The Secretary of Agriculture and the 
                Secretary of Energy shall ensure that 
                applicable research results and technologies 
                from the Initiative are--
                            ``(i) adapted, made available, and 
                        disseminated, as appropriate; and
                            ``(ii) included in the best 
                        practices database established under 
                        section 1672C(e) of the Food, 
                        Agriculture, Conservation, and Trade 
                        Act of 1990.
    ``(f) Administrative Support and Funds.--
            ``(1) In general.--The Secretary of Energy and the 
        Secretary of Agriculture may provide such 
        administrative support and funds of the Department of 
        Energy and the Department of Agriculture to the Board 
        and the Advisory Committee as are necessary to enable 
        the Board and the Advisory Committee to carry out their 
        duties under this section.
            ``(2) Other agencies.--The heads of the agencies 
        referred to in subsection (c)(2)(B), and the other 
        members of the Board appointed under subsection 
        (c)(2)(C), are encouraged to provide administrative 
        support and funds of their respective agencies to the 
        Board and the Advisory Committee.
            ``(3) Limitation.--Not more than 4 percent of the 
        amount made available for each fiscal year under 
        subsection (h) may be used to pay the administrative 
        costs of carrying out this section.
    ``(g) Reports.--For each fiscal year for which funds are 
made available to carry out this section, the Secretary of 
Energy and the Secretary of Agriculture shall jointly submit to 
Congress a detailed report on--
            ``(1) the status and progress of the Initiative, 
        including a report from the Advisory Committee on 
        whether funds appropriated for the Initiative have been 
        distributed and used in a manner that is consistent 
        with the objectives and requirements of this section;
            ``(2) the general status of cooperation and 
        research and development efforts carried out at each 
        agency with respect to biofuels and biobased products; 
        and
            ``(3) the plans of the Secretary of Energy and the 
        Secretary of Agriculture for addressing concerns raised 
        in the report, including concerns raised by the 
        Advisory Committee.
    ``(h) Funding.--
            ``(1) Mandatory funding.--Of the funds of the 
        Commodity Credit Corporation, the Secretary of 
        Agriculture shall use to carry out this section, to 
        remain available until expended--
                    ``(A) $20,000,000 for fiscal year 2009;
                    ``(B) $28,000,000 for fiscal year 2010;
                    ``(C) $30,000,000 for fiscal year 2011; and
                    ``(D) $40,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to any 
        other funds made available to carry out this section, 
        there is authorized to be appropriated to carry out 
        this section $35,000,000 for each of fiscal years 2009 
        through 2012.

``SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Eligible rural community.--The term `eligible 
        rural community' means a community located in a rural 
        area (as defined in section 343(a)(13)(A) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1991(a)(13)(A))).
            ``(2) Initiative.--The term `Initiative' means the 
        Rural Energy Self-Sufficiency Initiative established 
        under this section.
            ``(3) Integrated renewable energy system.--The term 
        `integrated renewable energy system' means a community-
        wide energy system that--
                    ``(A) reduces conventional energy use; and
                    ``(B) increases the use of energy from 
                renewable sources.
    ``(b) Establishment.--The Secretary shall establish a Rural 
Energy Self-Sufficiency Initiative to provide financial 
assistance for the purpose of enabling eligible rural 
communities to substantially increase the energy self-
sufficiency of the eligible rural communities.
    ``(c) Grant Assistance.--
            ``(1) In general.--The Secretary shall make grants 
        available under the Initiative to eligible rural 
        communities to carry out an activity described in 
        paragraph (2).
            ``(2) Use of grant funds.--An eligible rural 
        community may use a grant--
                    ``(A) to conduct an energy assessment that 
                assesses the total energy use of all energy 
                users in the eligible rural community;
                    ``(B) to formulate and analyze ideas for 
                reducing energy usage by the eligible rural 
                community from conventional sources; and
                    ``(C) to develop and install an integrated 
                renewable energy system.
            ``(3) Grant selection.--
                    ``(A) Application.--To be considered for a 
                grant, an eligible rural community shall submit 
                an application to the Secretary that describes 
                the ways in which the community would use the 
                grant to carry out an activity described in 
                paragraph (2).
                    ``(B) Preference.--The Secretary shall give 
                preference to those applications that propose 
                to carry out an activity in coordination with--
                            ``(i) institutions of higher 
                        education or nonprofit foundations of 
                        institutions of higher education;
                            ``(ii) Federal, State, or local 
                        government agencies;
                            ``(iii) public or private power 
                        generation entities; or
                            ``(iv) government entities with 
                        responsibility for water or natural 
                        resources.
            ``(4) Report.--An eligible rural community 
        receiving a grant under the Initiative shall submit to 
        the Secretary a report on the project of the eligible 
        rural community.
            ``(5) Cost-sharing.--The amount of a grant under 
        the Initiative shall not exceed 50 percent of the cost 
        of the activities described in the application.
    ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $5,000,000 for 
each of fiscal years 2009 through 2012.

``SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

    ``(a) Definitions.--In this section:
            ``(1) Bioenergy.--The term `bioenergy' means fuel 
        grade ethanol and other biofuel.
            ``(2) Bioenergy producer.--The term `bioenergy 
        producer' means a producer of bioenergy that uses an 
        eligible commodity to produce bioenergy under this 
        section.
            ``(3) Eligible commodity.--The term `eligible 
        commodity' means a form of raw or refined sugar or in-
        process sugar that is eligible to be marketed in the 
        United States for human consumption or to be used for 
        the extraction of sugar for human consumption.
            ``(4) Eligible entity.--The term `eligible entity' 
        means an entity located in the United States that 
        markets an eligible commodity in the United States.
    ``(b) Feedstock Flexibility Program.--
            ``(1) In general.--
                    ``(A) Purchases and sales.--For each of the 
                2008 through 2012 crops, the Secretary shall 
                purchase eligible commodities from eligible 
                entities and sell such commodities to bioenergy 
                producers for the purpose of producing 
                bioenergy in a manner that ensures that section 
                156 of the Federal Agriculture Improvement and 
                Reform Act (7 U.S.C. 7272) is operated at no 
                cost to the Federal Government by avoiding 
                forfeitures to the Commodity Credit 
                Corporation.
                    ``(B) Competitive procedures.--In carrying 
                out the purchases and sales required under 
                subparagraph (A), the Secretary shall, to the 
                maximum extent practicable, use competitive 
                procedures, including the receiving, offering, 
                and accepting of bids, when entering into 
                contracts with eligible entities and bioenergy 
                producers, provided that such procedures are 
                consistent with the purposes of subparagraph 
                (A).
                    ``(C) Limitation.--The purchase and sale of 
                eligible commodities under subparagraph (A) 
                shall only be made in crop years in which such 
                purchases and sales are necessary to ensure 
                that the program authorized under section 156 
                of the Federal Agriculture Improvement and 
                Reform Act (7 U.S.C. 7272) is operated at no 
                cost to the Federal Government by avoiding 
                forfeitures to the Commodity Credit 
                Corporation.
            ``(2) Notice.--
                    ``(A) In general.--As soon as practicable 
                after the date of enactment of the Food, 
                Conservation, and Energy Act of 2008 and each 
                September 1 thereafter through September 1, 
                2012, the Secretary shall provide notice to 
                eligible entities and bioenergy producers of 
                the quantity of eligible commodities that shall 
                be made available for purchase and sale for the 
                crop year following the date of the notice 
                under this section.
                    ``(B) Reestimates.--Not later than the 
                January 1, April 1, and July 1 of the calendar 
                year following the date of a notice under 
                subparagraph (A), the Secretary shall 
                reestimate the quantity of eligible commodities 
                determined under subparagraph (A), and provide 
                notice and make purchases and sales based on 
                such reestimates.
            ``(3) Commodity credit corporation inventory.--
                    ``(A) Dispositions.--
                            ``(i) Bioenergy and generally.--
                        Except as provided in clause (ii), to 
                        the extent that an eligible commodity 
                        is owned and held in inventory by the 
                        Commodity Credit Corporation 
                        (accumulated pursuant to the program 
                        authorized under section 156 of the 
                        Federal Agriculture Improvement and 
                        Reform Act (7 U.S.C. 7272)), the 
                        Secretary shall--
                                    ``(I) sell the eligible 
                                commodity to bioenergy 
                                producers under this section 
                                consistent with paragraph 
                                (1)(C);
                                    ``(II) dispose of the 
                                eligible commodity in 
                                accordance with section 
                                156(f)(2) of that Act; or
                                    ``(III) otherwise dispose 
                                of the eligible commodity 
                                through the buyback of 
                                certificates of quota entry.
                            ``(ii) Preservation of other 
                        authorities.--Nothing in this section 
                        limits the use of other authorities for 
                        the disposition of an eligible 
                        commodity held in the inventory of the 
                        Commodity Credit Corporation for 
                        nonfood use or otherwise in a manner 
                        that does not increase the net quantity 
                        of sugar available for human 
                        consumption in the United States 
                        market, consistent with section 
                        156(f)(1) of the Federal Agriculture 
                        Improvement and Reform Act (7 U.S.C. 
                        7272(f)(1)).
                    ``(B) Emergency shortages.--Notwithstanding 
                subparagraph (A), if there is an emergency 
                shortage of sugar for human consumption in the 
                United States market that is caused by a war, 
                flood, hurricane, or other natural disaster, or 
                other similar event, the Secretary may dispose 
                of an eligible commodity that is owned and held 
                in inventory by the Commodity Credit 
                Corporation (accumulated pursuant to the 
                program authorized under section 156 of the 
                Federal Agriculture Improvement and Reform Act 
                (7 U.S.C. 7272)) through disposition as 
                authorized under section 156(f) of that Act or 
                through the use of any other authority of the 
                Commodity Credit Corporation.
            ``(4) Transfer rule; storage fees.--
                    ``(A) General transfer rule.--Except with 
                regard to emergency dispositions under 
                paragraph (3)(B) and as provided in 
                subparagraph (C), the Secretary shall ensure 
                that bioenergy producers that purchase eligible 
                commodities pursuant to this section take 
                possession of the eligible commodities within 
                30 calendar days of the date of such purchase 
                from the Commodity Credit Corporation.
                    ``(B) Payment of storage fees prohibited.--
                            ``(i) In general.--The Secretary 
                        shall, to the maximum extent 
                        practicable, carry out this section in 
                        a manner that ensures no storage fees 
                        are paid by the Commodity Credit 
                        Corporation in the administration of 
                        this section.
                            ``(ii) Exception.--Clause (i) shall 
                        not apply with respect to any 
                        commodities owned and held in inventory 
                        by the Commodity Credit Corporation 
                        (accumulated pursuant to the program 
                        authorized under section 156 of the 
                        Federal Agriculture Improvement and 
                        Reform Act (7 U.S.C. 7272)).
                    ``(C) Option to prevent storage fees.--
                            ``(i) In general.--The Secretary 
                        may enter into contracts with bioenergy 
                        producers to sell eligible commodities 
                        to such producers prior in time to 
                        entering into contracts with eligible 
                        entities to purchase the eligible 
                        commodities to be used to satisfy the 
                        contracts entered into with the 
                        bioenergy producers.
                            ``(ii) Special transfer rule.--If 
                        the Secretary makes a sale and purchase 
                        referred to in clause (i), the 
                        Secretary shall ensure that the 
                        bioenergy producer that purchased 
                        eligible commodities takes possession 
                        of such commodities within 30 calendar 
                        days of the date the Commodity Credit 
                        Corporation purchases the eligible 
                        commodities.
            ``(5) Relation to other laws.--If sugar that is 
        subject to a marketing allotment under part VII of 
        subtitle B of title III of the Agricultural Adjustment 
        Act of 1938 (7 U.S.C. 1359aa et seq.) is the subject of 
        a payment under this section, the sugar shall be 
        considered marketed and shall count against a 
        processor's allocation of an allotment under such part, 
        as applicable.
            ``(6) Funding.--The Secretary shall use the funds, 
        facilities, and authorities of the Commodity Credit 
        Corporation, including the use of such sums as are 
        necessary, to carry out this section.

``SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) BCAP.--The term `BCAP' means the Biomass Crop 
        Assistance Program established under this section.
            ``(2) BCAP project area.--The term `BCAP project 
        area' means an area that--
                    ``(A) has specified boundaries that are 
                submitted to the Secretary by the project 
                sponsor and subsequently approved by the 
                Secretary;
                    ``(B) includes producers with contract 
                acreage that will supply a portion of the 
                renewable biomass needed by a biomass 
                conversion facility; and
                    ``(C) is physically located within an 
                economically practicable distance from the 
                biomass conversion facility.
            ``(3) Contract acreage.--The term `contract 
        acreage' means eligible land that is covered by a BCAP 
        contract entered into with the Secretary.
            ``(4) Eligible crop.--
                    ``(A) In general.--The term `eligible crop' 
                means a crop of renewable biomass.
                    ``(B) Exclusions.--The term `eligible crop' 
                does not include--
                            ``(i) any crop that is eligible to 
                        receive payments under title I of the 
                        Food, Conservation, and Energy Act of 
                        2008 or an amendment made by that 
                        title; or
                            ``(ii) any plant that is invasive 
                        or noxious or has the potential to 
                        become invasive or noxious, as 
                        determined by the Secretary, in 
                        consultation with other appropriate 
                        Federal or State departments and 
                        agencies.
            ``(5) Eligible land.--
                    ``(A) In general.--The term `eligible land' 
                includes agricultural and nonindustrial private 
                forest lands (as defined in section 5(c) of the 
                Cooperative Forestry Assistance Act of 1978 (16 
                U.S.C. 2103a(c))).
                    ``(B) Exclusions.--The term `eligible land' 
                does not include--
                            ``(i) Federal- or State-owned land;
                            ``(ii) land that is native sod, as 
                        of the date of enactment of the Food, 
                        Conservation, and Energy Act of 2008;
                            ``(iii) land enrolled in the 
                        conservation reserve program 
                        established under subchapter B of 
                        chapter 1 of subtitle D of title XII of 
                        the Food Security Act of 1985 (16 
                        U.S.C. 3831 et seq.);
                            ``(iv) land enrolled in the 
                        wetlands reserve program established 
                        under subchapter C of chapter 1 of 
                        subtitle D of title XII of that Act (16 
                        U.S.C. 3837 et seq.); or
                            ``(v) land enrolled in the 
                        grassland reserve program established 
                        under subchapter D of chapter 2 of 
                        subtitle D of title XII of that Act (16 
                        U.S.C. 3838n et seq.).
            ``(6) Eligible material.--
                    ``(A) In general.--The term `eligible 
                material' means renewable biomass.
                    ``(B) Exclusions.--The term `eligible 
                material' does not include--
                            ``(i) any crop that is eligible to 
                        receive payments under title I of the 
                        Food, Conservation, and Energy Act of 
                        2008 or an amendment made by that 
                        title;
                            ``(ii) animal waste and byproducts 
                        (including fats, oils, greases, and 
                        manure);
                            ``(iii) food waste and yard waste; 
                        or
                            ``(iv) algae.
            ``(7) Producer.--The term `producer' means an owner 
        or operator of contract acreage that is physically 
        located within a BCAP project area.
            ``(8) Project sponsor.--The term `project sponsor' 
        means--
                    ``(A) a group of producers; or
                    ``(B) a biomass conversion facility.
    ``(b) Establishment and Purpose.--The Secretary shall 
establish and administer a Biomass Crop Assistance Program to--
            ``(1) support the establishment and production of 
        eligible crops for conversion to bioenergy in selected 
        BCAP project areas; and
            ``(2) assist agricultural and forest land owners 
        and operators with collection, harvest, storage, and 
        transportation of eligible material for use in a 
        biomass conversion facility.
    ``(c) BCAP Project Area.--
            ``(1) In general.--The Secretary shall provide 
        financial assistance to producers of eligible crops in 
        a BCAP project area.
            ``(2) Selection of project areas.--
                    ``(A) In general.--To be considered for 
                selection as a BCAP project area, a project 
                sponsor shall submit to the Secretary a 
                proposal that includes, at a minimum--
                            ``(i) a description of the eligible 
                        land and eligible crops of each 
                        producer that will participate in the 
                        proposed BCAP project area;
                            ``(ii) a letter of commitment from 
                        a biomass conversion facility that the 
                        facility will use the eligible crops 
                        intended to be produced in the proposed 
                        BCAP project area;
                            ``(iii) evidence that the biomass 
                        conversion facility has sufficient 
                        equity available, as determined by the 
                        Secretary, if the biomass conversion 
                        facility is not operational at the time 
                        the proposal is submitted to the 
                        Secretary; and
                            ``(iv) any other appropriate 
                        information about the biomass 
                        conversion facility or proposed biomass 
                        conversion facility that gives the 
                        Secretary a reasonable assurance that 
                        the plant will be in operation by the 
                        time that the eligible crops are ready 
                        for harvest.
                    ``(B) BCAP project area selection 
                criteria.--In selecting BCAP project areas, the 
                Secretary shall consider--
                            ``(i) the volume of the eligible 
                        crops proposed to be produced in the 
                        proposed BCAP project area and the 
                        probability that such crops will be 
                        used for the purposes of the BCAP;
                            ``(ii) the volume of renewable 
                        biomass projected to be available from 
                        sources other than the eligible crops 
                        grown on contract acres;
                            ``(iii) the anticipated economic 
                        impact in the proposed BCAP project 
                        area;
                            ``(iv) the opportunity for 
                        producers and local investors to 
                        participate in the ownership of the 
                        biomass conversion facility in the 
                        proposed BCAP project area;
                            ``(v) the participation rate by--
                                    ``(I) beginning farmers or 
                                ranchers (as defined in 
                                accordance with section 343(a) 
                                of the Consolidated Farm and 
                                Rural Development Act (7 U.S.C. 
                                1991(a))); or
                                    ``(II) socially 
                                disadvantaged farmers or 
                                ranchers (as defined in section 
                                2501(e) of the Food, 
                                Agriculture, Conservation, and 
                                Trade Act of 1990 (7 U.S.C. 
                                2279(e)));
                            ``(vi) the impact on soil, water, 
                        and related resources;
                            ``(vii) the variety in biomass 
                        production approaches within a project 
                        area, including (as appropriate)--
                                    ``(I) agronomic conditions;
                                    ``(II) harvest and 
                                postharvest practices; and
                                    ``(III) monoculture and 
                                polyculture crop mixes;
                            ``(viii) the range of eligible 
                        crops among project areas; and
                            ``(ix) any additional information, 
                        as determined by the Secretary.
            ``(3) Contract.--
                    ``(A) In general.--On approval of a BCAP 
                project area by the Secretary, each producer in 
                the BCAP project area shall enter into a 
                contract directly with the Secretary.
                    ``(B) Minimum terms.--At a minimum, 
                contracts shall include terms that cover--
                            ``(i) an agreement to make 
                        available to the Secretary, or to an 
                        institution of higher education or 
                        other entity designated by the 
                        Secretary, such information as the 
                        Secretary considers to be appropriate 
                        to promote the production of eligible 
                        crops and the development of biomass 
                        conversion technology;
                            ``(ii) compliance with the highly 
                        erodible land conservation requirements 
                        of subtitle B of title XII of the Food 
                        Security Act of 1985 (16 U.S.C. 3811 et 
                        seq.) and the wetland conservation 
                        requirements of subtitle C of title XII 
                        of that Act (16 U.S.C. 3821 et seq.);
                            ``(iii) the implementation of (as 
                        determined by the Secretary)--
                                    ``(I) a conservation plan; 
                                or
                                    ``(II) a forest stewardship 
                                plan or an equivalent plan; and
                            ``(iv) any additional requirements 
                        the Secretary considers appropriate.
                    ``(C) Duration.--A contract under this 
                subsection shall have a term of up to--
                            ``(i) 5 years for annual and 
                        perennial crops; or
                            ``(ii) 15 years for woody biomass.
            ``(4) Relationship to other programs.--In carrying 
        out this subsection, the Secretary shall provide for 
        the preservation of cropland base and yield history 
        applicable to the land enrolled in a BCAP contract.
            ``(5) Payments.--
                    ``(A) In general.--The Secretary shall make 
                establishment and annual payments directly to 
                producers to support the establishment and 
                production of eligible crops on contract 
                acreage.
                    ``(B) Amount of establishment payments.--
                The amount of an establishment payment under 
                this subsection shall be up to 75 percent of 
                the costs of establishing an eligible perennial 
                crop covered by the contract, including--
                            ``(i) the cost of seeds and stock 
                        for perennials;
                            ``(ii) the cost of planting the 
                        perennial crop, as determined by the 
                        Secretary; and
                            ``(iii) in the case of 
                        nonindustrial private forestland, the 
                        costs of site preparation and tree 
                        planting.
                    ``(C) Amount of annual payments.--
                            ``(i) In general.--Subject to 
                        clause (ii), the amount of an annual 
                        payment under this subsection shall be 
                        determined by the Secretary.
                            ``(ii) Reduction.--The Secretary 
                        shall reduce an annual payment by an 
                        amount determined to be appropriate by 
                        the Secretary, if--
                                    ``(I) an eligible crop is 
                                used for purposes other than 
                                the production of energy at the 
                                biomass conversion facility;
                                    ``(II) an eligible crop is 
                                delivered to the biomass 
                                conversion facility;
                                    ``(III) the producer 
                                receives a payment under 
                                subsection (d);
                                    ``(IV) the producer 
                                violates a term of the 
                                contract; or
                                    ``(V) there are such other 
                                circumstances, as determined by 
                                the Secretary to be necessary 
                                to carry out this section.
    ``(d) Assistance With Collection, Harvest, Storage, and 
Transportation.--
            ``(1) In general.--The Secretary shall make a 
        payment for the delivery of eligible material to a 
        biomass conversion facility to--
                    ``(A) a producer of an eligible crop that 
                is produced on BCAP contract acreage; or
                    ``(B) a person with the right to collect or 
                harvest eligible material.
            ``(2) Payments.--
                    ``(A) Costs covered.--A payment under this 
                subsection shall be in an amount described in 
                subparagraph (B) for--
                            ``(i) collection;
                            ``(ii) harvest;
                            ``(iii) storage; and
                            ``(iv) transportation to a biomass 
                        conversion facility.
                    ``(B) Amount.--Subject to paragraph (3), 
                the Secretary may provide matching payments at 
                a rate of $1 for each $1 per ton provided by 
                the biomass conversion facility, in an amount 
                equal to not more than $45 per ton for a period 
                of 2 years.
            ``(3) Limitation on assistance for bcap contract 
        acreage.--As a condition of the receipt of annual 
        payment under subsection (c), a producer receiving a 
        payment under this subsection for collection, harvest, 
        storage or transportation of an eligible crop produced 
        on BCAP acreage shall agree to a reduction in the 
        annual payment.
    ``(e) Report.--Not later than 4 years after the date of 
enactment of the Food, Conservation, and Energy Act of 2008, 
the Secretary shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report on the 
dissemination by the Secretary of the best practice data and 
information gathered from participants receiving assistance 
under this section.
    ``(f) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out this section 
such sums as are necessary for each of fiscal years 2008 
through 2012.

``SEC. 9012. FOREST BIOMASS FOR ENERGY.

    ``(a) In General.--The Secretary, acting through the Forest 
Service, shall conduct a competitive research and development 
program to encourage use of forest biomass for energy.
    ``(b) Eligible Entities.--Entities eligible to compete 
under the program under this section include--
            ``(1) the Forest Service (acting through Research 
        and Development);
            ``(2) other Federal agencies;
            ``(3) State and local governments;
            ``(4) Indian tribes;
            ``(5) land-grant colleges and universities; and
            ``(6) private entities.
    ``(c) Priority for Project Selection.--In carrying out this 
section, the Secretary shall give priority to projects that--
            ``(1) develop technology and techniques to use low-
        value forest biomass, such as byproducts of forest 
        health treatments and hazardous fuels reduction, for 
        the production of energy;
            ``(2) develop processes that integrate production 
        of energy from forest biomass into biorefineries or 
        other existing manufacturing streams;
            ``(3) develop new transportation fuels from forest 
        biomass; and
            ``(4) improve the growth and yield of trees 
        intended for renewable energy production.
    ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $15,000,000 for 
each of fiscal years 2009 through 2012.

``SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Community wood energy plan.--The term 
        `community wood energy plan' means an assessment of--
                    ``(A) available feedstocks necessary to 
                supply a community wood energy system; and
                    ``(B) the long-term feasibility of 
                supplying and operating a community wood energy 
                system.
            ``(2) Community wood energy system.--
                    ``(A) In general.--The term `community wood 
                energy system' means an energy system that--
                            ``(i) primarily services public 
                        facilities owned or operated by State 
                        or local governments, including 
                        schools, town halls, libraries, and 
                        other public buildings; and
                            ``(ii) uses woody biomass as the 
                        primary fuel.
                    ``(B) Inclusions.--The term `community wood 
                energy system' includes single facility central 
                heating, district heating, combined heat and 
                energy systems, and other related biomass 
                energy systems.
    ``(b) Grant Program.--
            ``(1) In general.--The Secretary, acting through 
        the Chief of the Forest Service, shall establish a 
        program to be known as the `Community Wood Energy 
        Program' to provide--
                    ``(A) grants of up to $50,000 to State and 
                local governments (or designees) to develop 
                community wood energy plans; and
                    ``(B) competitive grants to State and local 
                governments to acquire or upgrade community 
                wood energy systems.
            ``(2) Considerations.--In selecting applicants for 
        grants under paragraph (1)(B), the Secretary shall 
        consider--
                    ``(A) the energy efficiency of the proposed 
                system;
                    ``(B) the cost effectiveness of the 
                proposed system; and
                    ``(C) other conservation and environmental 
                criteria that the Secretary considers 
                appropriate.
            ``(3) Use of plan.--A State or local government 
        applying to receive a competitive grant described in 
        paragraph (1)(B) shall submit to the Secretary as part 
        of the grant application the applicable community wood 
        energy plan.
    ``(c) Limitation.--A community wood energy system acquired 
with grant funds provided under subsection (b)(1)(B) shall not 
exceed an output of--
            ``(1) 50,000,000 Btu per hour for heating; and
            ``(2) 2 megawatts for electric power production.
    ``(d) Matching Funds.--A State or local government that 
receives a grant under subsection (b) shall contribute an 
amount of non-Federal funds towards the development of the 
community wood energy plan, or acquisition of the community 
wood energy systems that is at least equal to the amount of 
grant funds received by the State or local government under 
that subsection.
    ``(e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $5,000,000 for 
each of fiscal years 2009 through 2012.''.
    (b) Conforming Amendment.--The Biomass Research and 
Development Act of 2000 (7 U.S.C. 8601 et seq.) is repealed.

SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY.

    (a) In General.--The Secretary of Agriculture, the 
Secretary of Energy, the Administrator of the Environmental 
Protection Agency, and the Secretary of Transportation 
(referred to in this section as the ``Secretaries''), shall 
jointly conduct a study that includes--
            (1) an assessment of the infrastructure needs for 
        expanding the domestic production, transport, and 
        distribution of biofuels given current and likely 
        future market trends;
            (2) recommendations for infrastructure needs and 
        development approaches, taking into account cost and 
        other associated factors; and
            (3) a report that includes--
                    (A) a summary of infrastructure needs;
                    (B) an analysis of alternative development 
                approaches to meeting the needs described in 
                subparagraph (A), including cost, siting, and 
                other regulatory issues; and
                    (C) recommendations for specific 
                infrastructure development actions to be taken.
    (b) Scope of Study.--
            (1) In general.--In conducting the study described 
        in subsection (a), the Secretaries shall address--
                    (A) current and likely future market trends 
                for biofuels through calendar year 2025;
                    (B) current and future availability of 
                feedstocks;
                    (C) water resource needs, including water 
                requirements for biorefineries;
                    (D) shipping and storage needs for biomass 
                feedstock and biofuels, including the adequacy 
                of rural roads; and
                    (E) modes of transportation and delivery 
                for biofuels (including shipment by rail, 
                truck, pipeline or barge) and associated 
                infrastructure issues.
            (2) Considerations.--In addressing the issues 
        described in paragraph (1), the Secretaries shall 
        consider--
                    (A) the effects of increased tank truck, 
                rail, and barge transport on existing 
                infrastructure and safety;
                    (B) the feasibility of shipping biofuels 
                through pipelines in existence as of the date 
                of enactment of this Act;
                    (C) the development of new biofuels 
                pipelines, including siting, financing, timing, 
                and other economic issues;
                    (D) the implications of various biofuel 
                blend levels on infrastructure needs;
                    (E) the implications of various approaches 
                to infrastructure development on resource use 
                and conservation;
                    (F) regional differences in biofuels 
                infrastructure needs; and
                    (G) other infrastructure issues, as 
                determined by the Secretaries.
    (c) Implementation.--In carrying out this section, the 
Secretaries --
            (1) shall--
                    (A) consult with individuals and entities 
                with interest or expertise in the areas 
                described in subsection (b);
                    (B) to the extent available, use the 
                information developed and results of the 
                related studies authorized under sections 243 
                and 245 of the Energy Independence and Security 
                Act of 2007 (Public Law 110-140; 121 Stat. 
                1540, 1546)); and
                    (C) submit to Congress the report required 
                under subsection (a)(3), including--
                            (i) in the Senate--
                                    (I) the Committee on 
                                Agriculture, Nutrition, and 
                                Forestry ;
                                    (II) the Committee on 
                                Commerce, Science, and 
                                Transportation;
                                    (III) the Committee on 
                                Energy and Natural Resources; 
                                and
                                    (IV) the Committee on 
                                Environment and Public Works; 
                                and
                            (ii) in the House of 
                        Representatives--
                                    (I) the Committee on 
                                Agriculture;
                                    (II) the Committee on 
                                Energy and Commerce;
                                    (III) the Committee on 
                                Transportation and 
                                Infrastructure; and
                                    (IV) the Committee on 
                                Science and Technology; and
            (2) may issue a solicitation for a competition to 
        select a contractor to support the Secretaries.

SEC. 9003. RENEWABLE FERTILIZER STUDY.

    (a) In General.--Not later than 1 year after the date of 
receipt of appropriations to carry out this section, the 
Secretary shall--
            (1) conduct a study to assess the current state of 
        knowledge regarding the potential for the production of 
        fertilizer from renewable energy sources in rural 
        areas, including--
                    (A) identification of the critical 
                challenges to commercialization of rural 
                production of nitrogen and phosphorus-based 
                fertilizer from renewables;
                    (B) the most promising processes and 
                technologies for renewable fertilizer 
                production;
                    (C) the potential cost-competitiveness of 
                renewable fertilizer; and
                    (D) the potential impacts of renewable 
                fertilizer on fossil fuel use and the 
                environment; and
            (2) submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a 
        report describing the results of the study.
    (b) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,000,000 for 
fiscal year 2009.

             TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

SEC. 10001. DEFINITIONS.

    In this title:
            (1) Specialty crop.--The term ``specialty crop'' 
        has the meaning given the term in section 3 of the 
        Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 
        1621 note; Public Law 108-465).
            (2) State department of agriculture.--The term 
        ``State department of agriculture'' means the agency, 
        commission, or department of a State government 
        responsible for protecting and promoting agriculture in 
        the State.

           Subtitle A--Horticulture Marketing and Information

SEC. 10101. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRICULTURE 
                    COMMODITY PURCHASE PROCESS.

    (a) Evaluation Required.--The Secretary shall arrange to 
have performed an independent evaluation of the purchasing 
processes (including the budgetary, statutory, and regulatory 
authority underlying the processes) used by the Department of 
Agriculture to implement the requirement that funds available 
under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), 
shall be principally devoted to perishable agricultural 
commodities.
    (b) Submission of Results.--Not later than 18 months after 
the date of the enactment of this Act, the Secretary shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report on the results of the 
evaluation.

SEC. 10102. QUALITY REQUIREMENTS FOR CLEMENTINES.

    Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 
608e-1(a)), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, is amended in the matter 
preceding the first proviso in the first sentence by inserting 
``clementines,'' after ``nectarines,''.

SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRICULTURE.

    Section 2(a) of the Census of Agriculture Act of 1997 (7 
U.S.C. 2204g(a)) is amended--
            (1) by striking ``In 1998'' and inserting the 
        following:
            ``(1) In general.--In 1998''; and
            (2) by adding at the end the following:
            ``(2) Inclusion of specialty crops.--Effective 
        beginning with the census of agriculture required to be 
        conducted in 2008, the Secretary shall conduct as part 
        of each census of agriculture a census of specialty 
        crops (as that term is defined in section 3 of the 
        Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 
        1621 note; Public Law 108-465)).''.

SEC. 10104. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION.

    (a) Regions and Members.--Section 1925(b)(2) of the 
Mushroom Promotion, Research, and Consumer Information Act of 
1990 (7 U.S.C. 6104(b)(2)) is amended--
            (1) in subparagraph (B), by striking ``4 regions'' 
        and inserting ``3 regions'';
            (2) in subparagraph (D), by striking ``35,000,000 
        pounds'' and inserting ``50,000,000 pounds''; and
            (3) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) Additional members.--In addition to 
                the members appointed pursuant to paragraph 
                (1), and subject to the 9-member limit of 
                members on the Council provided in that 
                paragraph, the Secretary shall appoint 
                additional members to the council from a region 
                that attains additional pounds of production as 
                follows:
                            ``(i) If the annual production of a 
                        region is greater than 110,000,000 
                        pounds, but less than or equal to 
                        180,000,000 pounds, the region shall be 
                        represented by 1 additional member.
                            ``(ii) If the annual production of 
                        a region is greater than 180,000,000 
                        pounds, but less than or equal to 
                        260,000,000 pounds, the region shall be 
                        represented by 2 additional members.
                            ``(iii) If the annual production of 
                        a region is greater than 260,000,000 
                        pounds, the region shall be represented 
                        by 3 additional members.''.
    (b) Powers and Duties of Council.--Section 1925(c) of the 
Mushroom Promotion, Research, and Consumer Information Act of 
1990 (7 U.S.C. 6104(c)) is amended--
            (1) by redesignating paragraphs (6), (7), and (8) 
        as paragraphs (7), (8), and (9), respectively; and
            (2) by inserting after paragraph (5) the following:
            ``(6) to develop and propose to the Secretary 
        programs for good agricultural and good handling 
        practices and related activities for mushrooms;''.

SEC. 10105. FOOD SAFETY EDUCATION INITIATIVES.

    (a) Initiative Authorized.--The Secretary may carry out a 
food safety education program to educate the public and persons 
in the fresh produce industry about--
            (1) scientifically proven practices for reducing 
        microbial pathogens on fresh produce; and
            (2) methods of reducing the threat of cross-
        contamination of fresh produce through sanitary 
        handling practices.
    (b) Cooperation.--The Secretary may carry out the education 
program in cooperation with public and private partners.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out this section 
$1,000,000 for each of fiscal years 2008 through 2012, to 
remain available until expended.

SEC. 10106. FARMERS' MARKET PROMOTION PROGRAM.

    Section 6 of the Farmer-to-Consumer Direct Marketing Act of 
1976 (7 U.S.C. 3005) is amended--
            (1) in subsection (a), by inserting ``and to 
        promote direct producer-to-consumer marketing'' before 
        the period at the end;
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by inserting 
                ``agri-tourism activities,'' after 
                ``programs,''; and
                    (B) in subparagraph (B)--
                            (i) by inserting ``agri-tourism 
                        activities,'' after ``programs,'' and
                            (ii) by striking ``infrastructure'' 
                        and inserting ``marketing 
                        opportunities'';
            (3) in subsection (c)(1), by inserting ``or a 
        producer network or association'' after 
        ``cooperative''; and
            (4) by striking subsection (e) and inserting the 
        following:
    ``(e) Funding.--
            ``(1) In general.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry 
        out this section--
                    ``(A) $3,000,000 for fiscal year 2008;
                    ``(B) $5,000,000 for each of fiscal years 
                2009 through 2010; and
                    ``(C) $10,000,000 for each of fiscal years 
                2011 and 2012.
            ``(2) Use of funds.--Not less than 10 percent of 
        the funds used to carry out this section in a fiscal 
        year under paragraph (1) shall be used to support the 
        use of electronic benefits transfers for Federal 
        nutrition programs at farmers' markets.
            ``(3) Interdepartmental coordination.--In carrying 
        out this subsection, the Secretary shall ensure 
        coordination between the various agencies to the 
        maximum extent practicable.
            ``(4) Limitation.--Funds described in paragraph 
        (2)--
                    ``(A) may not be used for the ongoing cost 
                of carrying out any project; and
                    ``(B) shall only be provided to eligible 
                entities that demonstrate a plan to continue to 
                provide EBT card access at 1 or more farmers' 
                markets following the receipt of the grant.''.

SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION.

    (a) In General.--The Secretary shall--
            (1) carry out market news activities to provide 
        timely price and shipment information of specialty 
        crops in the United States; and
            (2) use funds made available under subsection (b) 
        to increase the reporting levels for specialty crops in 
        effect on the date of enactment of this Act.
    (b) Authorization of Appropriations.--In addition to any 
other funds made available through annual appropriations for 
market news services, there is authorized to be appropriated to 
carry out this section $9,000,000 for each of fiscal years 2008 
through 2012, to remain available until expended.

SEC. 10108. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR GRADES AND 
                    STANDARDS AND OTHER PURPOSES.

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

SEC. 10109. SPECIALTY CROP BLOCK GRANTS.

    (a) Definition of Specialty Crop.--Section 3(1) of the 
Specialty Crops Competitiveness Act of 2004 (Public Law 108-
465; 7 U.S.C. 1621 note) is amended by inserting ``horticulture 
and'' before ``nursery''.
    (b) Definition of State.--Section 3(2) of the Specialty 
Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 
1621 note) is amended by striking ``and the Commonwealth of 
Puerto Rico'' and inserting ``the Commonwealth of Puerto Rico, 
Guam, American Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands''.
    (c) Specialty Crop Block Grants.--Section 101 of the 
Specialty Crops Competitiveness Act of 2004 (Public Law 108-
465; 7 U.S.C. 1621 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Subject to the 
                appropriation of funds to carry out this 
                section'' and inserting ``Using the funds made 
                available under subsection (j)''; and
                    (B) by striking ``2009'' and inserting 
                ``2012'';
            (2) in subsection (b), by striking ``appropriated 
        pursuant to the authorization of appropriations in 
        subsection (i)'' and inserting ``made available under 
        subsection (j)'';
            (3) by striking subsection (c) and inserting the 
        following:
    ``(c) Minimum Grant Amount.--Notwithstanding subsection 
(b), each State shall receive a grant under this section for 
each fiscal year in an amount that is at least equal to the 
higher of--
            ``(1) $100,000; or
            ``(2) \1/3\ of 1 percent of the total amount of 
        funding made available to carry out this section for 
        the fiscal year.''; and
            (4) by striking subsection (i) and inserting the 
        following:
    ``(i) Reallocation.--
            ``(1) In general.--The Secretary shall reallocate 
        to other States in accordance with paragraph (2) any 
        amounts made available for a fiscal year under this 
        section that are not obligated or expended by a date 
        during that fiscal year determined by the Secretary.
            ``(2) Pro rata allocation.--The Secretary shall 
        allocate funds described in paragraph (1) pro rata to 
        the remaining States that applied during the specified 
        grant application period.
            ``(3) Use of reallocated funds.--Funds allocated to 
        a State under this subsection shall be used by the 
        State only to carry out projects that were previously 
        approved in the State plan of the State.
    ``(j) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary of Agriculture shall make grants 
under this section, using--
            ``(1) $10,000,000 for fiscal year 2008;
            ``(2) $49,000,000 for fiscal year 2009; and
            ``(3) $55,000,000 for each of fiscal years 2010 
        through 2012.''.

                Subtitle B--Pest and Disease Management

SEC. 10201. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER PREVENTION.

    (a) In General.--Subtitle A of the Plant Protection Act (7 
U.S.C. 7711 et seq.) is amended by adding at the end the 
following:

``SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER PREVENTION.

    ``(a) Definitions.--In this section:
            ``(1) Early plant pest detection and 
        surveillance.--The term `early plant pest detection and 
        surveillance' means the full range of activities 
        undertaken to find newly introduced plant pests, 
        whether the plant pests are new to the United States or 
        new to certain areas of the United States, before--
                    ``(A) the plant pests become established; 
                or
                    ``(B) the plant pest infestations become 
                too large and costly to eradicate or control.
            ``(2) Specialty crop.--The term `specialty crop' 
        has the meaning given the term in section 3 of the 
        Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 
        1621 note; Public Law 108-465).
            ``(3) State department of agriculture.--The term 
        `State department of agriculture' means an agency of a 
        State that has a legal responsibility to perform early 
        plant pest detection and surveillance activities.
    ``(b) Early Plant Pest Detection and Surveillance 
Improvement Program.--
            ``(1) Cooperative agreements.--The Secretary shall 
        enter into a cooperative agreement with each State 
        department of agriculture that agrees to conduct early 
        plant pest detection and surveillance activities.
            ``(2) Consultation.--In carrying out this 
        subsection, the Secretary shall consult with--
                    ``(A) the National Plant Board; and
                    ``(B) other interested parties.
            ``(3) Federal advisory committee act.--The Federal 
        Advisory Committee Act (5 U.S.C. App.) shall not apply 
        to consultations under this subsection.
            ``(4) Application.--
                    ``(A) In general.--A State department of 
                agriculture seeking to enter into a cooperative 
                agreement under this subsection shall submit to 
                the Secretary an application containing such 
                information as the Secretary may require.
                    ``(B) Notification.--The Secretary shall 
                notify applicants of--
                            ``(i) the requirements to be 
                        imposed on a State department of 
                        agriculture for auditing of, and 
                        reporting on, the use of any funds 
                        provided by the Secretary under the 
                        cooperative agreement;
                            ``(ii) the criteria to be used to 
                        ensure that early pest detection and 
                        surveillance activities supported under 
                        the cooperative agreement are based on 
                        sound scientific data or thorough risk 
                        assessments; and
                            ``(iii) the means of identifying 
                        pathways of pest introductions.
            ``(5) Use of funds.--
                    ``(A) Plant pest detection and surveillance 
                activities.--A State department of agriculture 
                that receives funds under this subsection shall 
                use the funds to carry out early plant pest 
                detection and surveillance activities approved 
                by the Secretary to prevent the introduction or 
                spread of a plant pest.
                    ``(B) Subagreements.--Nothing in this 
                subsection prevents a State department of 
                agriculture from using funds received under 
                paragraph (4) to enter into subagreements with 
                political subdivisions of the State that have 
                legal responsibilities relating to agricultural 
                plant pest and disease surveillance.
                    ``(C) Non-federal share.--The non-Federal 
                share of the cost of carrying out a cooperative 
                agreement under this section may be provided 
                in-kind, including through provision of such 
                indirect costs of the cooperative agreement as 
                the Secretary considers to be appropriate.
                    ``(D) Ability to provide funds.--The 
                Secretary shall not take the ability to provide 
                non-Federal costs to carry out a cooperative 
                agreement entered into under subparagraph (A) 
                into consideration when deciding whether to 
                enter into a cooperative agreement with a State 
                department of agriculture.
            ``(6) Special funding considerations.--The 
        Secretary shall provide funds to a State department of 
        agriculture if the Secretary determines that--
                    ``(A) the State department of agriculture 
                is in a State that has a high risk of being 
                affected by 1 or more plant pests or diseases, 
                taking into consideration--
                            ``(i) the number of international 
                        ports of entry in the State;
                            ``(ii) the volume of international 
                        passenger and cargo entry into the 
                        State;
                            ``(iii) the geographic location of 
                        the State and if the location or types 
                        of agricultural commodities produced in 
                        the State are conducive to agricultural 
                        pest and disease establishment due to 
                        the climate, crop diversity, or natural 
                        resources (including unique plant 
                        species) of the State; and
                            ``(iv) whether the Secretary has 
                        determined that an agricultural pest or 
                        disease in the State is a Federal 
                        concern; and
                    ``(B) the early plant pest detection and 
                surveillance activities supported with the 
                funds will likely--
                            ``(i) prevent the introduction and 
                        establishment of plant pests; and
                            ``(ii) provide a comprehensive 
                        approach to compliment Federal 
                        detection efforts.
            ``(7) Reporting requirement.--Not later than 90 
        days after the date of completion of an early plant 
        pest detection and surveillance activity conducted by a 
        State department of agriculture using funds provided 
        under this section, the State department of agriculture 
        shall submit to the Secretary a report that describes 
        the purposes and results of the activities.
    ``(c) Threat Identification and Mitigation Program.--
            ``(1) Establishment.--The Secretary shall establish 
        a threat identification and mitigation program to 
        determine and address threats to the domestic 
        production of crops.
            ``(2) Requirements.--In conducting the program 
        established under paragraph (1), the Secretary shall--
                    ``(A) develop risk assessments of the 
                potential threat to the agricultural industry 
                of the United States from foreign sources;
                    ``(B) collaborate with the National Plant 
                Board; and
                    ``(C) implement action plans for high 
                consequence plant pest and diseases to assist 
                in preventing the introduction and widespread 
                dissemination of new plant pest and disease 
                threats in the United States.
            ``(3) Reports.--Not later than 1 year after the 
        date of enactment of this paragraph, and annually 
        thereafter, the Secretary shall submit to the Committee 
        on Agriculture of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report on the action plans described in 
        paragraph (2), including an accounting of funds 
        expended on the action plans.
    ``(d) Specialty Crop Certification and Risk Management 
Systems.--The Secretary shall provide funds and technical 
assistance to specialty crop growers, organizations 
representing specialty crop growers, and State and local 
agencies working with specialty crop growers and organizations 
for the development and implementation of--
            ``(1) audit-based certification systems, such as 
        best management practices--
                    ``(A) to address plant pests; and
                    ``(B) to mitigate the risk of plant pests 
                in the movement of plants and plant products; 
                and
            ``(2) nursery plant pest risk management systems, 
        in collaboration with the nursery industry, research 
        institutions, and other appropriate entities--
                    ``(A) to enable growers to identify and 
                prioritize nursery plant pests and diseases of 
                regulatory significance;
                    ``(B) to prevent the introduction, 
                establishment, and spread of those plant pests 
                and diseases; and
                    ``(C) to reduce the risk of and mitigate 
                those plant pests and diseases.
    ``(e) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available to carry out 
this section--
            ``(1) $12,000,000 for fiscal year 2009;
            ``(2) $45,000,000 for fiscal year 2010;
            ``(3) $50,000,000 for fiscal year 2011; and
            ``(4) $50,000,000 for fiscal year 2012 and each 
        fiscal year thereafter.''.
    (b) Congressional Disapproval.--Congress disapproves the 
rule submitted by the Secretary of Agriculture relating to 
cost-sharing for animal and plant health emergency programs (68 
Fed. Reg. 40541 (2003)), and such rule shall have no force or 
effect.

SEC. 10202. NATIONAL CLEAN PLANT NETWORK.

    (a) In General.--The Secretary shall establish a program to 
be known as the ``National Clean Plant Network'' (referred to 
in this section as the ``Program'').
    (b) Requirements.--Under the Program, the Secretary shall 
establish a network of clean plant centers for diagnostic and 
pathogen elimination services to--
            (1) produce clean propagative plant material; and
            (2) maintain blocks of pathogen-tested plant 
        material in sites located throughout the United States.
    (c) Availability of Clean Plant Source Material.--Clean 
plant source material may be made available to--
            (1) a State for a certified plant program of the 
        State; and
            (2) private nurseries and producers.
    (d) Consultation and Collaboration.--In carrying out the 
Program, the Secretary shall--
            (1) consult with State departments of agriculture, 
        land grant universities, and NLGCA Institutions (as 
        defined in section 1404 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103)); and
            (2) to the extent practicable and with input from 
        the appropriate State officials and industry 
        representatives, use existing Federal or State 
        facilities to serve as clean plant centers.
    (e) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out the Program 
$5,000,000 for each of fiscal years 2009 through 2012, to 
remain available until expended.

SEC. 10203. PLANT PROTECTION.

    (a) Review of Payment of Compensation.--Section 415(e) of 
the Plant Protection Act (7 U.S.C. 7715(e)) is amended in the 
second sentence by striking ``of longer than 60 days''.
    (b) Secretarial Discretion.--Section 442(c) of the Plant 
Protection Act (7 U.S.C. 7772(c)) is amended by striking ``of 
longer than 60 days''.
    (c) Subpoena Authority.--Section 423 of the Plant 
Protection Act (7 U.S.C. 7733) is amended--
            (1) by striking subsection (a) and inserting the 
        following:
    ``(a) Authority To Issue.--The Secretary shall have the 
power to subpoena the attendance and testimony of any witness, 
the production of all evidence (including books, papers, 
documents, electronically stored information, and other 
tangible things that constitute or contain evidence), or to 
require the person to whom the subpoena is directed to permit 
the inspection of premises relating to the administration or 
enforcement of this title or any matter under investigation in 
connection with this title.'';
            (2) in subsection (b), by striking ``documentary''; 
        and
            (3) in subsection (c)--
                    (A) in the first sentence, by striking 
                ``testimony of any witness and the production 
                of documentary evidence'' and inserting 
                ``testimony of any witness, the production of 
                evidence, or the inspection of premises''; and
                    (B) in the second sentence, by striking 
                ``question or to produce documentary evidence'' 
                and inserting ``question, produce evidence, or 
                permit the inspection of premises''.
    (d) Willful Violations.--Section 424(b)(1)(A) of the Plant 
Protection Act (7 U.S.C. 7734(b)(1)(A)) is amended by striking 
``and $500,000 for all violations adjudicated in a single 
proceeding'' and inserting ``$500,000 for all violations 
adjudicated in a single proceeding if the violations do not 
include a willful violation, and $1,000,000 for all violations 
adjudicated in a single proceeding if the violations include a 
willful violation''.

SEC. 10204. REGULATIONS TO IMPROVE MANAGEMENT AND OVERSIGHT OF CERTAIN 
                    REGULATED ARTICLES.

    (a) In General.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall--
            (1) take action on each issue identified in the 
        document entitled ``Lessons Learned and Revisions under 
        Consideration for APHIS' Biotechnology Framework'', 
        dated October 4, 2007; and
            (2) as the Secretary considers appropriate, 
        promulgate regulations to improve the management and 
        oversight of articles regulated under the Plant 
        Protection Act (7 U.S.C. 7701 et seq.).
    (b) Inclusions.--In carrying out subsection (a), the 
Secretary shall take actions that are designed to enhance--
            (1) the quality and completeness of records;
            (2) the availability of representative samples;
            (3) the maintenance of identity and control in the 
        event of an unauthorized release;
            (4) corrective actions in the event of an 
        unauthorized release;
            (5) protocols for conducting molecular forensics;
            (6) clarity in contractual agreements;
            (7) the use of the latest scientific techniques for 
        isolation and confinement distances;
            (8) standards for quality management systems and 
        effective research; and
            (9) the design of electronic permits to store 
        documents and other information relating to the permit 
        and notification processes.
    (c) Consideration.--In carrying out subsection (a), the 
Secretary shall consider--
            (1) establishing--
                    (A) a system of risk-based categories to 
                classify each regulated article;
                    (B) a means to identify regulated articles 
                (including the retention of seed samples); and
                    (C) standards for isolation and containment 
                distances; and
            (2) requiring permit holders--
                    (A) to maintain a positive chain of 
                custody;
                    (B) to provide for the maintenance of 
                records;
                    (C) to provide for the accounting of 
                material;
                    (D) to conduct periodic audits;
                    (E) to establish an appropriate training 
                program;
                    (F) to provide contingency and corrective 
                action plans; and
                    (G) to submit reports as the Secretary 
                considers to be appropriate.

SEC. 10205. PEST AND DISEASE REVOLVING LOAN FUND.

    (a) Definitions.--In this section:
            (1) Authorized equipment.--
                    (A) In general.--The term ``authorized 
                equipment'' means any equipment necessary for 
                the management of forest land.
                    (B) Inclusions.--The term ``authorized 
                equipment'' includes--
                            (i) cherry pickers;
                            (ii) equipment necessary for--
                                    (I) the construction of 
                                staging and marshalling areas;
                                    (II) the planting of trees; 
                                and
                                    (III) the surveying of 
                                forest land;
                            (iii) vehicles capable of 
                        transporting harvested trees;
                            (iv) wood chippers; and
                            (v) any other appropriate 
                        equipment, as determined by the 
                        Secretary.
            (2) Fund.--The term ``Fund'' means the Pest and 
        Disease Revolving Loan Fund established by subsection 
        (b).
            (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture, acting through the Deputy 
        Chief of the State and Private Forestry organization.
    (b) Establishment of Fund.--There is established in the 
Treasury of the United States a revolving fund, to be known as 
the ``Pest and Disease Revolving Loan Fund'', consisting of 
such amounts as are appropriated to the Fund under subsection 
(f).
    (c) Expenditures From Fund.--
            (1) In general.--Subject to paragraph (2), on 
        request by the Secretary, the Secretary of the Treasury 
        shall transfer from the Fund to the Secretary such 
        amounts as the Secretary determines are necessary to 
        provide loans under subsection (e).
            (2) Administrative expenses.--An amount not 
        exceeding 10 percent of the amounts in the Fund shall 
        be available for each fiscal year to pay the 
        administrative expenses necessary to carry out this 
        section.
    (d) Transfers of Amounts.--
            (1) In general.--The amounts required to be 
        transferred to the Fund under this section shall be 
        transferred at least monthly from the general fund of 
        the Treasury to the Fund on the basis of estimates made 
        by the Secretary of the Treasury.
            (2) Adjustments.--Proper adjustment shall be made 
        in amounts subsequently transferred to the extent prior 
        estimates were in excess of or less than the amounts 
        required to be transferred.
    (e) Uses of Fund.--
            (1) Loans.--
                    (A) In general.--The Secretary shall use 
                amounts in the Fund to provide loans to 
                eligible units of local government to finance 
                purchases of authorized equipment to monitor, 
                remove, dispose of, and replace infested trees 
                that are located--
                            (i) on land under the jurisdiction 
                        of the eligible units of local 
                        government; and
                            (ii) within the borders of 
                        quarantine areas infested by plant 
                        pests.
                    (B) Maximum amount.--The maximum amount of 
                a loan that may be provided by the Secretary to 
                an eligible unit of local government under this 
                subsection shall be the lesser of--
                            (i) the amount that the eligible 
                        unit of local government has 
                        appropriated to finance purchases of 
                        authorized equipment in accordance with 
                        subparagraph (A); or
                            (ii) $5,000,000.
                    (C) Interest rate.--The interest rate on 
                any loan made by the Secretary under this 
                paragraph shall be a rate equal to 2 percent.
                    (D) Report.--Not later than 180 days after 
                the date on which an eligible unit of local 
                government receives a loan provided by the 
                Secretary under subparagraph (A), the eligible 
                unit of local government shall submit to the 
                Secretary a report that describes each purchase 
                made by the eligible unit of local government 
                using assistance provided through the loan.
            (2) Loan repayment schedule.--
                    (A) In general.--To be eligible to receive 
                a loan from the Secretary under paragraph (1), 
                in accordance with each requirement described 
                in subparagraph (B), an eligible unit of local 
                government shall enter into an agreement with 
                the Secretary to establish a loan repayment 
                schedule relating to the repayment of the loan.
                    (B) Requirements relating to loan repayment 
                schedule.--A loan repayment schedule 
                established under subparagraph (A) shall 
                require the eligible unit of local government--
                            (i) to repay to the Secretary of 
                        the Treasury, not later than 1 year 
                        after the date on which the eligible 
                        unit of local government receives a 
                        loan under paragraph (1), and 
                        semiannually thereafter, an amount 
                        equal to the quotient obtained by 
                        dividing--
                                    (I) the principal amount of 
                                the loan (including interest); 
                                by
                                    (II) the total quantity of 
                                payments that the eligible unit 
                                of local government is required 
                                to make during the repayment 
                                period of the loan; and
                            (ii) not later than 20 years after 
                        the date on which the eligible unit of 
                        local government receives a loan under 
                        paragraph (1), to complete repayment to 
                        the Secretary of the Treasury of the 
                        loan made under this section (including 
                        interest).
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to the Fund such sums as are necessary to 
carry out this section.

SEC. 10206. COOPERATIVE AGREEMENTS RELATING TO PLANT PEST AND DISEASE 
                    PREVENTION ACTIVITIES.

    Section 431 of the Plant Protection Act (7 U.S.C. 7751) is 
amended by adding at the end the following:
    ``(f) Transfer of Cooperative Agreement Fund.--
            ``(1) In general.--A State may provide to a unit of 
        local government in the State described in paragraph 
        (2) any cost-sharing assistance or financing mechanism 
        provided to the State under a cooperative agreement 
        entered into under this Act between the Secretary and 
        the State relating to the eradication, prevention, 
        control, or suppression of plant pests.
            ``(2) Requirements.--To be eligible for assistance 
        or financing under paragraph (1), a unit of local 
        government shall be--
                    ``(A) engaged in any activity relating to 
                the eradication, prevention, control, or 
                suppression of the plant pest infestation 
                covered under the cooperative agreement between 
                the Secretary and the State; and
                    ``(B) capable of documenting each plant 
                pest infestation eradication, prevention, 
                control, or suppression activity generally 
                carried out by--
                            ``(i) the Department of 
                        Agriculture; or
                            ``(ii) the State department of 
                        agriculture that has jurisdiction over 
                        the unit of local government.''.

                    Subtitle C--Organic Agriculture

SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    Section 10606 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 6523) is amended--
            (1) in subsection (a), by striking ``$5,000,000 for 
        fiscal year 2002'' and inserting ``$22,000,000 for 
        fiscal year 2008'';
            (2) in subsection (b)(2), by striking ``$500'' and 
        inserting ``$750''; and
            (3) by adding at the end the following:
    ``(c) Reporting.--Not later than March 1 of each year, the 
Secretary shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that describes 
the requests by, disbursements to, and expenditures for each 
State under the program during the current and previous fiscal 
year, including the number of producers and handlers served by 
the program in the previous fiscal year.''.

SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

    Section 7407 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 5925c) is amended to read as follows:

``SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

    ``(a) In General.--The Secretary shall collect and report 
data on the production and marketing of organic agricultural 
products.
    ``(b) Requirements.--In carrying out subsection (a), the 
Secretary shall, at a minimum--
            ``(1) collect and distribute comprehensive 
        reporting of prices relating to organically produced 
        agricultural products;
            ``(2) conduct surveys and analysis and publish 
        reports relating to organic production, handling, 
        distribution, retail, and trend studies (including 
        consumer purchasing patterns); and
            ``(3) develop surveys and report statistical 
        analysis on organically produced agricultural products.
    ``(c) Report.--Not later than 180 days after the date of 
enactment of this subsection, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that--
            ``(1) describes the progress that has been made in 
        implementing this section; and
            ``(2) identifies any additional production and 
        marketing data needs.
    ``(d) Funding.--
            ``(1) In general.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry 
        out this section $5,000,000, to remain available until 
        expended.
            ``(2) Additional funding.--In addition to funds 
        made available under paragraph (1), there are 
        authorized to be appropriated to carry out this section 
        not more than $5,000,000 for each of fiscal years 2008 
        through 2012, to remain available until expended.''.

SEC. 10303. NATIONAL ORGANIC PROGRAM.

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

                       Subtitle D--Miscellaneous

SEC. 10401. NATIONAL HONEY BOARD.

    Section 7(c) of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4606(c)) is amended by adding at the 
end the following:
            ``(12) Referendum requirement.--
                    ``(A) Definition of existing honey board.--
                The term `existing Honey Board' means the Honey 
                Board in effect on the date of enactment of 
                this paragraph.
                    ``(B) Conduct of referenda.--
                Notwithstanding any other provision of law, 
                subject to subparagraph (C), the order 
                providing for the establishment and operation 
                of the existing Honey Board shall continue in 
                force, until the Secretary first conducts, at 
                the earliest practicable date, but not later 
                than 180 days after the date of enactment of 
                this paragraph, referenda on orders to 
                establish a honey packer-importer board or a 
                United States honey producer board.
                    ``(C) Requirements.--In conducting 
                referenda under subparagraph (B), and in 
                exercising fiduciary responsibilities in any 
                transition to any 1 or more successor boards, 
                the Secretary shall--
                            ``(i) conduct a referendum of 
                        eligible United States honey producers 
                        for the establishment of a marketing 
                        board solely for United States honey 
                        producers;
                            ``(ii) conduct a referendum of 
                        eligible packers, importers, and 
                        handlers of honey for the establishment 
                        of a marketing board for packers, 
                        importers, and handlers of honey;
                            ``(iii) notwithstanding the timing 
                        of the referenda required under clauses 
                        (i) and (ii) or of the establishment of 
                        any 1 or more successor boards pursuant 
                        to those referenda, ensure that the 
                        rights and interests of honey 
                        producers, importers, packers, and 
                        handlers of honey are equitably 
                        protected in any disposition of the 
                        assets, facilities, intellectual 
                        property, and programs of the existing 
                        Honey Board and in the transition to 
                        any 1 or more new successor marketing 
                        boards;
                            ``(iv) ensure that the existing 
                        Honey Board continues in operation 
                        until such time as the Secretary 
                        determines that--
                                    ``(I) any 1 or more 
                                successor boards, if approved, 
                                are operational; and
                                    ``(II) the interests of 
                                producers, importers, packers, 
                                and handlers of honey can be 
                                equitably protected during any 
                                remaining period in which a 
                                referendum on a successor board 
                                or the establishment of such a 
                                board is pending; and
                            ``(v) discontinue collection of 
                        assessments under the order 
                        establishing the existing Honey Board 
                        on the date the Secretary requires that 
                        collections commence pursuant to an 
                        order approved in a referendum by 
                        eligible producers or processors and 
                        importers of honey.
                    ``(D) Honey board referendum.--If 1 or more 
                orders are approved pursuant to paragraph (C)--
                            ``(i) the Secretary shall not be 
                        required to conduct a continuation 
                        referendum on the order in existence on 
                        the date of enactment of this 
                        paragraph; and
                            ``(ii) that order shall be 
                        terminated pursuant to the provisions 
                        of the order.''.

SEC. 10402. IDENTIFICATION OF HONEY.

    (a) In General.--Section 203(h) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1622(h)) is amended--
            (1) by designating the first through sixth 
        sentences as paragraphs (1), (2)(A), (2)(B), (3), (4), 
        and (5), respectively; and
            (2) by adding at the end the following:
            ``(6) Identification of honey.--
                    ``(A) In general.--The use of a label or 
                advertising material on, or in conjunction 
                with, packaged honey that bears any official 
                certificate of quality, grade mark or 
                statement, continuous inspection mark or 
                statement, sampling mark or statement, or any 
                combination of the certificates, marks, or 
                statements of the Department of Agriculture is 
                hereby prohibited under this Act unless there 
                appears legibly and permanently in close 
                proximity (such as on the same side(s) or 
                surface(s)) to the certificate, mark, or 
                statement, and in at least a comparable size, 
                the 1 or more names of the 1 or more countries 
                of origin of the lot or container of honey, 
                preceded by the words `Product of' or other 
                words of similar meaning.
                    ``(B) Violation.--A violation of the 
                requirements of subparagraph (A) may be deemed 
                by the Secretary to be sufficient cause for 
                debarment from the benefits of this Act only 
                with respect to honey.''.
    (b) Effective Date.--The amendments made by subsection (a) 
take effect on the date that is 1 year after the date of 
enactment of this Act.

SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.

    (a) Grants Authorized.--The Secretary may make grants under 
this section to an eligible entity described in subsection 
(b)--
            (1) to improve the cost-effective movement of 
        specialty crops to local, regional, national, and 
        international markets; and
            (2) to address regional intermodal transportation 
        deficiencies that adversely affect the movement of 
        specialty crops to markets inside or outside the United 
        States.
    (b) Eligible Grant Recipients.--Grants may be made under 
this section to any of, or any combination of:
            (1) State and local governments.
            (2) Grower cooperatives.
            (3) National, State, or regional organizations of 
        producers, shippers, or carriers.
            (4) Other entities as determined to be appropriate 
        by the Secretary.
    (c) Matching Funds.--The recipient of a grant under this 
section shall contribute an amount of non-Federal funds toward 
the project for which the grant is provided that is at least 
equal to the amount of grant funds received by the recipient 
under this section.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as are 
necessary for each of fiscal years 2008 through 2012.

SEC. 10404. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.

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

                          TITLE XI--LIVESTOCK

SEC. 11001. LIVESTOCK MANDATORY REPORTING.

    (a) Web Site Improvements and User Education.--
            (1) In general.--Section 251(g) of the Agricultural 
        Marketing Act of 1946 (7 U.S.C. 1636(g)) is amended to 
        read as follows:
    ``(g) Electronic Reporting and Publishing.--
            ``(1) In general.--The Secretary shall, to the 
        maximum extent practicable, provide for the reporting 
        and publishing of the information required under this 
        subtitle by electronic means.
            ``(2) Improvements and education.--
                    ``(A) Enhanced electronic publishing.--The 
                Secretary shall develop and implement an 
                enhanced system of electronic publishing to 
                disseminate information collected pursuant to 
                this subtitle. Such system shall--
                            ``(i) present information in a 
                        format that can be readily understood 
                        by producers, packers, and other market 
                        participants;
                            ``(ii) adhere to the publication 
                        deadlines in this subtitle;
                            ``(iii) present information in 
                        charts and graphs, as appropriate;
                            ``(iv) present comparative 
                        information for prior reporting 
                        periods, as the Secretary considers 
                        appropriate; and
                            ``(v) be updated as soon as 
                        practicable after information is 
                        reported to the Secretary.
                    ``(B) Education.--The Secretary shall carry 
                out a market news education program to educate 
                the public and persons in the livestock and 
                meat industries about--
                            ``(i) usage of the system developed 
                        under subparagraph (A); and
                            ``(ii) interpreting and 
                        understanding information collected and 
                        disseminated through such system.''.
            (2) Applicability.--
                    (A) Enhanced reporting.--The Secretary of 
                Agriculture shall develop and implement the 
                system required under paragraph (2)(A) of 
                section 251(g) of the Agricultural Marketing 
                Act of 1946 (7 U.S.C. 1636(g)), as amended by 
                paragraph (1), not later than one year after 
                the date on which the Secretary determines 
                sufficient funds have been appropriated 
                pursuant to subsection (c).
                    (B) Current system.--Notwithstanding the 
                amendment made by paragraph (1), the Secretary 
                shall continue to use the information format 
                for disseminating information under subtitle B 
                of the Agricultural Marketing Act of 1946 (7 
                U.S.C. 1621 et seq.) in effect on the date of 
                the enactment of this Act at least until the 
                date that is two years after the date on which 
                the Secretary makes the determination referred 
                to in subparagraph (A).
    (b) Study and Report.--
            (1) Study.--The Secretary shall conduct a study on 
        the effects of requiring packer processing plants to 
        report to the Secretary information on wholesale pork 
        cuts (including price and volume information), 
        including--
                    (A) the positive or negative economic 
                effects on producers and consumers; and
                    (B) the effects of a confidentiality 
                requirement on mandatory reporting.
            (2) Information.--During the period preceding the 
        submission of the report under paragraph (3), the 
        Secretary may collect, and each packer processing plant 
        shall provide, such information as is necessary to 
        enable the Secretary to conduct the study required 
        under paragraph (1).
            (3) Report.--Not later than one year after the date 
        of the enactment of this Act, the Secretary shall 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the 
        results of the study conducted under paragraph (1).
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section.

SEC. 11002. COUNTRY OF ORIGIN LABELING.

    Subtitle D of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1638 et seq.) is amended--
            (1) in section 281(2)(A)--
                    (A) in clause (v), by striking ``and'';
                    (B) in clause (vi), by striking the period 
                at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(vii) meat produced from goats;
                            ``(viii) chicken, in whole and in 
                        part;
                            ``(ix) ginseng;
                            ``(x) pecans; and
                            ``(xi) macadamia nuts.'';
            (2) in section 282--
                    (A) in subsection (a), by striking 
                paragraphs (2) and (3) and inserting the 
                following:
            ``(2) Designation of country of origin for beef, 
        lamb, pork, chicken, and goat meat.--
                    ``(A) United states country of origin.--A 
                retailer of a covered commodity that is beef, 
                lamb, pork, chicken, or goat meat may designate 
                the covered commodity as exclusively having a 
                United States country of origin only if the 
                covered commodity is derived from an animal 
                that was--
                            ``(i) exclusively born, raised, and 
                        slaughtered in the United States;
                            ``(ii) born and raised in Alaska or 
                        Hawaii and transported for a period of 
                        not more than 60 days through Canada to 
                        the United States and slaughtered in 
                        the United States; or
                            ``(iii) present in the United 
                        States on or before July 15, 2008, and 
                        once present in the United States, 
                        remained continuously in the United 
                        States.
                    ``(B) Multiple countries of origin.--
                            ``(i) In general.--A retailer of a 
                        covered commodity that is beef, lamb, 
                        pork, chicken, or goat meat that is 
                        derived from an animal that is--
                                    ``(I) not exclusively born, 
                                raised, and slaughtered in the 
                                United States,
                                    ``(II) born, raised, or 
                                slaughtered in the United 
                                States, and
                                    ``(III) not imported into 
                                the United States for immediate 
                                slaughter,
                        may designate the country of origin of 
                        such covered commodity as all of the 
                        countries in which the animal may have 
                        been born, raised, or slaughtered.
                            ``(ii) Relation to general 
                        requirement.--Nothing in this 
                        subparagraph alters the mandatory 
                        requirement to inform consumers of the 
                        country of origin of covered 
                        commodities under paragraph (1).
                    ``(C) Imported for immediate slaughter.--A 
                retailer of a covered commodity that is beef, 
                lamb, pork, chicken, or goat meat that is 
                derived from an animal that is imported into 
                the United States for immediate slaughter shall 
                designate the origin of such covered commodity 
                as--
                            ``(i) the country from which the 
                        animal was imported; and
                            ``(ii) the United States.
                    ``(D) Foreign country of origin.--A 
                retailer of a covered commodity that is beef, 
                lamb, pork, chicken, or goat meat that is 
                derived from an animal that is not born, 
                raised, or slaughtered in the United States 
                shall designate a country other than the United 
                States as the country of origin of such 
                commodity.
                    ``(E) Ground beef, pork, lamb, chicken, and 
                goat.--The notice of country of origin for 
                ground beef, ground pork, ground lamb, ground 
                chicken, or ground goat shall include--
                            ``(i) a list of all countries of 
                        origin of such ground beef, ground 
                        pork, ground lamb, ground chicken, or 
                        ground goat; or
                            ``(ii) a list of all reasonably 
                        possible countries of origin of such 
                        ground beef, ground pork, ground lamb, 
                        ground chicken, or ground goat.
            ``(3) Designation of country of origin for fish.--
                    ``(A) In general.--A retailer of a covered 
                commodity that is farm-raised fish or wild fish 
                may designate the covered commodity as having a 
                United States country of origin only if the 
                covered commodity--
                            ``(i) in the case of farm-raised 
                        fish, is hatched, raised, harvested, 
                        and processed in the United States; and
                            ``(ii) in the case of wild fish, 
                        is--
                                    ``(I) harvested in the 
                                United States, a territory of 
                                the United States, or a State, 
                                or by a vessel that is 
                                documented under chapter 121 of 
                                title 46, United States Code, 
                                or registered in the United 
                                States; and
                                    ``(II) processed in the 
                                United States, a territory of 
                                the United States, or a State, 
                                including the waters thereof, 
                                or aboard a vessel that is 
                                documented under chapter 121 of 
                                title 46, United States Code, 
                                or registered in the United 
                                States.
                    ``(B) Designation of wild fish and farm-
                raised fish.--The notice of country of origin 
                for wild fish and farm-raised fish shall 
                distinguish between wild fish and farm-raised 
                fish.
            ``(4) Designation of country of origin for 
        perishable agricultural commodities, ginseng, peanuts, 
        pecans, and macadamia nuts.--
                    ``(A) In general.--A retailer of a covered 
                commodity that is a perishable agricultural 
                commodity, ginseng, peanut, pecan, or macadamia 
                nut may designate the covered commodity as 
                having a United States country of origin only 
                if the covered commodity is exclusively 
                produced in the United States.
                    ``(B) State, region, locality of the united 
                states.--With respect to a covered commodity 
                that is a perishable agricultural commodity, 
                ginseng, peanut, pecan, or macadamia nut 
                produced exclusively in the United States, 
                designation by a retailer of the State, region, 
                or locality of the United States where such 
                commodity was produced shall be sufficient to 
                identify the United States as the country of 
                origin.''; and
                    (B) by striking subsection (d) and 
                inserting the following:
    ``(d) Audit Verification System.--
            ``(1) In general.--The Secretary may conduct an 
        audit of any person that prepares, stores, handles, or 
        distributes a covered commodity for retail sale to 
        verify compliance with this subtitle (including the 
        regulations promulgated under section 284(b)).
            ``(2) Record requirements.--
                    ``(A) In general.--A person subject to an 
                audit under paragraph (1) shall provide the 
                Secretary with verification of the country of 
                origin of covered commodities. Records 
                maintained in the course of the normal conduct 
                of the business of such person, including 
                animal health papers, import or customs 
                documents, or producer affidavits, may serve as 
                such verification.
                    ``(B) Prohibition on requirement of 
                additional records.--The Secretary may not 
                require a person that prepares, stores, 
                handles, or distributes a covered commodity to 
                maintain a record of the country of origin of a 
                covered commodity other than those maintained 
                in the course of the normal conduct of the 
                business of such person.''; and
            (3) in section 283--
                    (A) by striking subsections (a) and (c);
                    (B) by redesignating subsection (b) as 
                subsection (a);
                    (C) in subsection (a) (as so redesignated), 
                by striking ``retailer'' and inserting 
                ``retailer or person engaged in the business of 
                supplying a covered commodity to a retailer''; 
                and
                    (D) by adding at the end the following new 
                subsection:
    ``(b) Fines.--If, on completion of the 30-day period 
described in subsection (a)(2), the Secretary determines that 
the retailer or person engaged in the business of supplying a 
covered commodity to a retailer has--
            ``(1) not made a good faith effort to comply with 
        section 282, and
            ``(2) continues to willfully violate section 282 
        with respect to the violation about which the retailer 
        or person received notification under subsection 
        (a)(1),

after providing notice and an opportunity for a hearing before 
the Secretary with respect to the violation, the Secretary may 
fine the retailer or person in an amount of not more than 
$1,000 for each violation.''.

SEC. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967 DEFINITIONS.

    Section 3 of the Agricultural Fair Practices Act of 1967 (7 
U.S.C. 2302) is amended--
            (1) by striking ``When used in this Act--'' and 
        inserting ``In this Act:'';
            (2) in subsection (a)--
                    (A) by redesignating paragraphs (1) through 
                (4) as clauses (i) through (iv), respectively; 
                and
                    (B) in clause (iv) (as so redesignated), by 
                striking ``clause (1), (2), or (3) of this 
                paragraph'' and inserting ``clause (i), (ii), 
                or (iii)'';
            (3) by striking subsection (d);
            (4) by redesignating subsections (a), (b), (c), and 
        (e) as paragraphs (3), (4), (2), (1), respectively, 
        indenting appropriately, and moving those paragraphs so 
        as to appear in numerical order;
            (5) in each paragraph (as so redesignated) that 
        does not have a heading, by inserting a heading, in the 
        same style as the heading in the amendment made by 
        paragraph (6), the text of which is comprised of the 
        term defined in the paragraph;
            (6) in paragraph (2) (as so redesignated)--
                    (A) by striking ``The term `association of 
                producers' means'' and inserting the following:
            ``(2) Association of producers.--
                    ``(A) In general.--The term `association of 
                producers' means''; and
                    (B) by adding at the end the following:
                    ``(B) Inclusion.--The term `association of 
                producers' includes an organization whose 
                membership is exclusively limited to 
                agricultural producers and dedicated to 
                promoting the common interest and general 
                welfare of producers of agricultural 
                products.''; and
            (7) in paragraph (3) (as so redesignated)--
                    (A) by striking ``The term'' and inserting 
                the following:
            ``(3) Handler.--
                    ``(A) In general.--The term''; and
                    (B) by inserting after clause (iv) of 
                subparagraph (A) (as redesignated by 
                subparagraph (A) and paragraph (2)) the 
                following:
                    ``(B) Exclusion.--The term `handler' does 
                not include a person, other than a packer (as 
                defined in section 201 of the Packers and 
                Stockyards Act, 1921 (7 U.S.C. 191)), that 
                provides custom feeding services for a 
                producer.''.

SEC. 11004. ANNUAL REPORT.

    (a) In General.--The Packers and Stockyards Act, 1921, is 
amended--
            (1) by redesignating section 416 (7 U.S.C. 229) as 
        section 417; and
            (2) by inserting after section 415 (7 U.S.C. 228d) 
        the following:

``SEC. 416. ANNUAL REPORT.

    ``(a) In General.--Not later than March 1 of each year, the 
Secretary shall submit to Congress and make publicly available 
a report that--
            ``(1) states, for the preceding year, separately 
        for livestock and poultry and separately by enforcement 
        area category (financial, trade practice, or 
        competitive acts and practices), with respect to 
        investigations into possible violations of this Act--
                    ``(A) the number of investigations opened;
                    ``(B) the number of investigations that 
                were closed or settled without a referral to 
                the General Counsel of the Department of 
                Agriculture;
                    ``(C) for investigations described in 
                subparagraph (B), the length of time from 
                initiation of the investigation to when the 
                investigation was closed or settled without the 
                filing of an enforcement complaint;
                    ``(D) the number of investigations that 
                resulted in referral to the General Counsel of 
                the Department of Agriculture for further 
                action, the number of such referrals resolved 
                without administrative enforcement action, and 
                the number of enforcement actions filed by the 
                General Counsel;
                    ``(E) for referrals to the General Counsel 
                that resulted in an administrative enforcement 
                action being filed, the length of time from the 
                referral to the filing of the administrative 
                action;
                    ``(F) for referrals to the General Counsel 
                that resulted in an administrative enforcement 
                action being filed, the length of time from 
                filing to resolution of the administrative 
                enforcement action;
                    ``(G) the number of investigations that 
                resulted in referral to the Department of 
                Justice for further action, and the number of 
                civil enforcement actions filed by the 
                Department of Justice on behalf of the 
                Secretary pursuant to such a referral;
                    ``(H) for referrals that resulted in a 
                civil enforcement action being filed by the 
                Department of Justice, the length of time from 
                the referral to the filing of the enforcement 
                action;
                    ``(I) for referrals that resulted in a 
                civil enforcement action being filed by the 
                Department of Justice, the length of time from 
                the filing of the enforcement action to 
                resolution; and
                    ``(J) the average civil penalty imposed in 
                administrative or civil enforcement actions for 
                violations of this Act, and the total amount of 
                civil penalties imposed in all such enforcement 
                actions; and
            ``(2) includes any other additional information the 
        Secretary considers important to include in the annual 
        report.
    ``(b) Format of Information Provided.--For subparagraphs 
(C), (E), (F), and (H) of subsection (a)(1), the Secretary may, 
if appropriate due to the number of complaints for a given 
category, provide summary statistics (including range, maximum, 
minimum, mean, and average times) and graphical 
representations.''.
    (b) Sunset.--Effective September 30, 2012, section 416 of 
the Packers and Stockyards Act, 1921, as added by subsection 
(a)(2), is repealed.

SEC. 11005. PRODUCTION CONTRACTS.

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

``SEC. 208. PRODUCTION CONTRACTS.

    ``(a) Right of Contract Producers To Cancel Production 
Contracts.--
            ``(1) In general.--A poultry grower or swine 
        production contract grower may cancel a poultry growing 
        arrangement or swine production contract by mailing a 
        cancellation notice to the live poultry dealer or swine 
        contractor not later than the later of--
                    ``(A) the date that is 3 business days 
                after the date on which the poultry growing 
                arrangement or swine production contract is 
                executed; or
                    ``(B) any cancellation date specified in 
                the poultry growing arrangement or swine 
                production contract.
            ``(2) Disclosure.--A poultry growing arrangement or 
        swine production contract shall clearly disclose--
                    ``(A) the right of the poultry grower or 
                swine production contract grower to cancel the 
                poultry growing arrangement or swine production 
                contract;
                    ``(B) the method by which the poultry 
                grower or swine production contract grower may 
                cancel the poultry growing arrangement or swine 
                production contract; and
                    ``(C) the deadline for canceling the 
                poultry growing arrangement or swine production 
                contract.
    ``(b) Required Disclosure of Additional Capital Investments 
in Production Contracts.--
            ``(1) In general.--A poultry growing arrangement or 
        swine production contract shall contain on the first 
        page a statement identified as `Additional Capital 
        Investments Disclosure Statement', which shall 
        conspicuously state that additional large capital 
        investments may be required of the poultry grower or 
        swine production contract grower during the term of the 
        poultry growing arrangement or swine production 
        contract.
            ``(2) Application.--Paragraph (1) shall apply to 
        any poultry growing arrangement or swine production 
        contract entered into, amended, altered, modified, 
        renewed, or extended after the date of the enactment of 
        this section.

``SEC. 209. CHOICE OF LAW AND VENUE.

    ``(a) Location of Forum.--The forum for resolving any 
dispute among the parties to a poultry growing arrangement or 
swine production or marketing contract that arises out of the 
arrangement or contract shall be located in the Federal 
judicial district in which the principle part of the 
performance takes place under the arrangement or contract.
    ``(b) Choice of Law.--A poultry growing arrangement or 
swine production or marketing contract may specify which 
State's law is to apply to issues governed by State law in any 
dispute arising out of the arrangement or contract, except to 
the extent that doing so is prohibited by the law of the State 
in which the principal part of the performance takes place 
under the arrangement or contract.

``SEC. 210. ARBITRATION.

    ``(a) In General.--Any livestock or poultry contract that 
contains a provision requiring the use of arbitration to 
resolve any controversy that may arise under the contract shall 
contain a provision that allows a producer or grower, prior to 
entering the contract to decline to be bound by the arbitration 
provision.
    ``(b) Disclosure.--Any livestock or poultry contract that 
contains a provision requiring the use of arbitration shall 
contain terms that conspicuously disclose the right of the 
contract producer or grower, prior to entering the contract, to 
decline the requirement to use arbitration to resolve any 
controversy that may arise under the livestock or poultry 
contract.
    ``(c) Dispute Resolution.--Any contract producer or grower 
that declines a requirement of arbitration pursuant to 
subsection (b) has the right, to nonetheless seek to resolve 
any controversy that may arise under the livestock or poultry 
contract, if, after the controversy arises, both parties 
consent in writing to use arbitration to settle the 
controversy.
    ``(d) Application.--Subsections (a) (b) and (c) shall apply 
to any contract entered into, amended, altered, modified, 
renewed, or extended after the date of the enactment of the 
Food, Conservation, and Energy Act of 2008.
    ``(e) Unlawful Practice.--Any action by or on behalf of a 
packer, swine contractor, or live poultry dealer that violates 
this section (including any action that has the intent or 
effect of limiting the ability of a producer or grower to 
freely make a choice described in subsection (b)) is an 
unlawful practice under this Act.
    ``(f) Regulations.--The Secretary shall promulgate 
regulations to--
            ``(1) carry out this section; and
            ``(2) establish criteria that the Secretary will 
        consider in determining whether the arbitration process 
        provided in a contract provides a meaningful 
        opportunity for the grower or producer to participate 
        fully in the arbitration process.''.

SEC. 11006. REGULATIONS.

    As soon as practicable, but not later than 2 years after 
the date of the enactment of this Act, the Secretary of 
Agriculture shall promulgate regulations with respect to the 
Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) to 
establish criteria that the Secretary will consider in 
determining--
            (1) whether an undue or unreasonable preference or 
        advantage has occurred in violation of such Act;
            (2) whether a live poultry dealer has provided 
        reasonable notice to poultry growers of any suspension 
        of the delivery of birds under a poultry growing 
        arrangement;
            (3) when a requirement of additional capital 
        investments over the life of a poultry growing 
        arrangement or swine production contract constitutes a 
        violation of such Act; and
            (4) if a live poultry dealer or swine contractor 
        has provided a reasonable period of time for a poultry 
        grower or a swine production contract grower to remedy 
        a breach of contract that could lead to termination of 
        the poultry growing arrangement or swine production 
        contract.

SEC. 11007. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION 
                    PROGRAM.

    It is the sense of Congress that--
            (1) the Secretary of Agriculture should recognize 
        the threat feral swine pose to the domestic swine 
        population and the entire livestock industry;
            (2) keeping the United States commercial swine herd 
        free of pseudorabies is essential to maintaining and 
        growing pork export markets;
            (3) the establishment and continued support of a 
        swine surveillance system will assist the swine 
        industry in the monitoring, surveillance, and 
        eradication of pseudorabies; and
            (4) pseudorabies eradication is a high priority 
        that the Secretary should carry out under the 
        authorities of the Animal Health Protection Act.

SEC. 11008. SENSE OF CONGRESS REGARDING THE CATTLE FEVER TICK 
                    ERADICATION PROGRAM.

    It is the sense of Congress that--
            (1) the cattle fever tick and the southern cattle 
        tick are vectors of the causal agent of babesiosis, a 
        severe and often fatal disease of cattle; and
            (2) implementing a national strategic plan for the 
        cattle fever tick eradication program is a high 
        priority that the Secretary of Agriculture should carry 
        out in order to--
                    (A) prevent the entry of cattle fever ticks 
                into the United States;
                    (B) enhance and maintain an effective 
                surveillance program to rapidly detect any 
                cattle fever tick incursions; and
                    (C) research, identify, and procure the 
                tools and knowledge necessary to prevent and 
                eradicate cattle fever ticks in the United 
                States.

SEC. 11009. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    (a) Funding.--Section 375(e)(6) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2008j(e)(6)) is amended by 
striking subparagraphs (B) and (C) and inserting the following:
                    ``(B) Mandatory funding.--Of the funds of 
                the Commodity Credit Corporation, the Secretary 
                shall use to carry out this section $1,000,000 
                for fiscal year 2008, to remain available until 
                expended.
                    ``(C) Authorization of appropriations.--
                There is authorized to be appropriated to the 
                Secretary to carry out this section $10,000,000 
                for each of fiscal years 2008 through 2012.''.
    (b) Repeal of Requirement To Privatize Revolving Fund.--
            (1) In general.--Section 375 of the Consolidated 
        Farm and Rural Development Act (7 U.S.C. 2008j) is 
        amended by striking subsection (j).
            (2) Effective date.--The amendment made by 
        paragraph (1) takes effect on May 1, 2007.

SEC. 11010. TRICHINAE CERTIFICATION PROGRAM.

    (a) Voluntary Trichinae Certification.--
            (1) Establishment.--Not later than 90 days after 
        the date of the enactment of this Act, the Secretary of 
        Agriculture shall establish a voluntary trichinae 
        certification program. Such program shall include the 
        facilitation of the export of pork products and 
        certification services related to such products.
            (2) Regulations.--The Secretary shall issue final 
        regulations to implement the program under paragraph 
        (1) not later than 90 days after the date of the 
        enactment of this Act.
            (3) Report.--If final regulations are not published 
        in accordance with paragraph (2) within 90 days of the 
        date of the enactment of this Act, the Secretary shall 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report 
        containing--
                    (A) an explanation of why the final 
                regulations have not been issued in accordance 
                with paragraph (2); and
                    (B) the date on which the Secretary expects 
                to issue such final regulations.
    (b) Funding.--Subject to the availability of appropriations 
under subsection (d)(1)(A) of section 10405 of the Animal 
Health Protection Act (7 U.S.C. 8304), as added by subsection 
(c), the Secretary shall use not less than $6,200,000 of the 
funds made available under such subsection to carry out 
subsection (a).
    (c) Authorization of Appropriations.--Section 10405 of the 
Animal Health Protection Act (7 U.S.C. 8304) is amended by 
adding at the end the following new subsection:
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be 
        appropriated--
                    ``(A) $1,500,000 for each of fiscal years 
                2008 through 2012 to carry out section 11010 of 
                the Food, Conservation, and Energy Act of 2008; 
                and
                    ``(B) such sums as may be necessary for 
                each of fiscal years 2008 through 2012 to carry 
                out this section.
            ``(2) Availability.--Funds appropriated under 
        paragraph (1) shall remain available until expended.''.

SEC. 11011. LOW PATHOGENIC DISEASES.

    The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is 
amended--
            (1) in section 10407(d)(2)(C) (7 U.S.C. 
        8306(d)(2)(C)), by striking ``of longer than 60 days'';
            (2) in section 10409(b) (7 U.S.C. 8308(b))--
                    (A) by redesignating paragraph (2) as 
                paragraph (3);
                    (B) by inserting after paragraph (1) the 
                following new paragraph:
            ``(2) Specific cooperative programs.--The Secretary 
        shall compensate industry participants and State 
        agencies that cooperate with the Secretary in carrying 
        out operations and measures under subsection (a) for 
        100 percent of eligible costs relating to cooperative 
        programs involving Federal, State, and industry 
        participants to control diseases of low pathogenicity 
        in accordance with regulations issued by the 
        Secretary.''; and
                    (C) in paragraph (3) (as so redesignated), 
                by striking ``of longer than 60 days''; and
            (3) in section 10417(b)(3) (7 U.S.C. 8316(b)(3)), 
        by striking ``of longer than 60 days''.

SEC. 11012. ANIMAL PROTECTION.

    (a) Willful Violations.--Section 10414(b)(1)(A) of the 
Animal Health Protection Act (7 U.S.C. 8316(b)(1)(A)) is 
amended by striking clause (iii) and inserting the following:
                            ``(iii) for all violations 
                        adjudicated in a single proceeding--
                                    ``(I) $500,000 if the 
                                violations do not include a 
                                willful violation; or
                                    ``(II) $1,000,000 if the 
                                violations include 1 or more 
                                willful violations.''.
    (b) Subpoena Authority.--Section 10415(a)(2) of the Animal 
Health Protection Act (7 U.S.C. 8314) is amended
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) In general.--The Secretary shall have 
                the power to subpoena the attendance and 
                testimony of any witness, the production of all 
                evidence (including books, papers, documents, 
                electronically stored information, and other 
                tangible things that constitute or contain 
                evidence), or to require the person to whom the 
                subpoena is directed to permit the inspection 
                of premises relating to the administration or 
                enforcement of this title or any matter under 
                investigation in connection with this title.'';
            (2) in subparagraph (B), by striking 
        ``documentary''; and
            (3) in subparagraph (C)--
                    (A) in clause (i), by striking ``testimony 
                of any witness and the production of 
                documentary evidence'' and inserting 
                ``testimony of any witness, the production of 
                evidence, or the inspection of premises''; and
                    (B) in clause (ii), by striking ``question 
                or to produce documentary evidence'' and 
                inserting ``question, produce evidence, or 
                permit the inspection of premises''.

SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN.

    (a) In General.--The Secretary of Agriculture may enter 
into a cooperative agreement with an eligible entity to carry 
out a project under a national aquatic animal health plan under 
the authority of the Secretary under section 10411 of the 
Animal Health Protection Act (7 U.S.C. 8310) for the purpose of 
detecting, controlling, or eradicating diseases of aquaculture 
species and promoting species-specific best management 
practices.
    (b) Cooperative Agreements Between Eligible Entities and 
the Secretary.--
            (1) Duties.--As a condition of entering into a 
        cooperative agreement with the Secretary under this 
        section, an eligible entity shall agree to--
                    (A) assume responsibility for the non-
                Federal share of the cost of carrying out the 
                project under the national aquatic health plan, 
                as determined by the Secretary in accordance 
                with paragraph (2); and
                    (B) act in accordance with applicable 
                disease and species specific best management 
                practices relating to activities to be carried 
                out under such project.
            (2) Non-federal share.--The Secretary shall 
        determine the non-Federal share of the cost of carrying 
        out a project under the national aquatic health plan on 
        a case-by-case basis for each such project. Such non-
        Federal share may be provided in cash or in-kind.
    (c) Applicability of Other Laws.--In carrying out this 
section, the Secretary may make use of the authorities under 
the Animal Health Protection Act (7 U.S.C. 8301 et seq.), 
including the authority to carry out operations and measures to 
detect, control, and eradicate pests and diseases and the 
authority to pay claims arising out of the destruction of any 
animal, article, or means of conveyance.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated such sums as may be necessary to carry out 
this section for each of fiscal years 2008 through 2012.
    (e) Eligible Entity Defined.--In this section, the term 
``eligible entity'' means a State, a political subdivision of a 
State, Indian tribe, or other appropriate entity, as determined 
by the Secretary of Agriculture.

SEC. 11014. STUDY ON BIOENERGY OPERATIONS.

    (a) Study.--The Secretary of Agriculture shall conduct a 
study to evaluate the role of animal manure as a source of 
fertilizer and its potential additional uses. Such study shall 
include--
            (1) a determination of the extent to which animal 
        manure is utilized as fertilizer in agricultural 
        operations by type (including species and agronomic 
        practices employed) and size;
            (2) an evaluation of the potential impact on 
        consumers and on agricultural operations (by size) 
        resulting from limitations being placed on the 
        utilization of animal manure as fertilizer; and
            (3) an evaluation of the effects on agriculture 
        production contributable to the increased competition 
        for animal manure use due to bioenergy production, 
        including as a feedstock or a replacement for fossil 
        fuels.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate the results of the study conducted under subsection (a).

SEC. 11015. INTERSTATE SHIPMENT OF MEAT AND POULTRY INSPECTED BY 
                    FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL 
                    ESTABLISHMENTS.

    (a) Meat and Meat Products.--The Federal Meat Inspection 
Act (21 U.S.C. 601 et seq.) is amended by adding at the end the 
following:

          ``TITLE V--INSPECTIONS BY FEDERAL AND STATE AGENCIES

``SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL AND STATE 
                    AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.

    ``(a) Definitions.--
            ``(1) Appropriate state agency.--The term 
        `appropriate State agency' means a State agency 
        described in section 301(b).
            ``(2) Designated personnel.--The term `designated 
        personnel' means inspection personnel of a State agency 
        that have undergone all necessary inspection training 
        and certification to assist the Secretary in the 
        administration and enforcement of this Act, including 
        rules and regulations issued under this Act.
            ``(3) Eligible establishment.--The term `eligible 
        establishment' means an establishment that is in 
        compliance with--
                    ``(A) the State inspection program of the 
                State in which the establishment is located; 
                and
                    ``(B) this Act, including rules and 
                regulations issued under this Act.
            ``(4) Meat item.--The term `meat item' means--
                    ``(A) a portion of meat; and
                    ``(B) a meat food product.
            ``(5) Selected establishment.--The term `selected 
        establishment' means an eligible establishment that is 
        selected by the Secretary, in coordination with the 
        appropriate State agency of the State in which the 
        eligible establishment is located, under subsection (b) 
        to ship carcasses, portions of carcasses, and meat 
        items in interstate commerce.
    ``(b) Authority of Secretary To Allow Shipments.--
            ``(1) In general.--Subject to paragraph (2), the 
        Secretary, in coordination with the appropriate State 
        agency of the State in which an establishment is 
        located, may select the establishment to ship 
        carcasses, portions of carcasses, and meat items in 
        interstate commerce, and place on each carcass, portion 
        of a carcass, and meat item shipped in interstate 
        commerce a Federal mark, stamp, tag, or label of 
        inspection, if--
                    ``(A) the carcass, portion of carcass, or 
                meat item qualifies for the mark, stamp, tag, 
                or label of inspection under the requirements 
                of this Act;
                    ``(B) the establishment is an eligible 
                establishment; and
                    ``(C) inspection services for the 
                establishment are provided by designated 
                personnel.
            ``(2) Prohibited establishments.--In carrying out 
        paragraph (1), the Secretary, in coordination with an 
        appropriate State agency, shall not select an 
        establishment that--
                    ``(A) on average, employs more than 25 
                employees (including supervisory and 
                nonsupervisory employees), as defined by the 
                Secretary;
                    ``(B) as of the date of the enactment of 
                this section, ships in interstate commerce 
                carcasses, portions of carcasses, or meat items 
                that are inspected by the Secretary in 
                accordance with this Act;
                    ``(C)(i) is a Federal establishment;
                    ``(ii) was a Federal establishment that was 
                reorganized on a later date under the same name 
                or a different name or person by the person, 
                firm, or corporation that controlled the 
                establishment as of the date of the enactment 
                of this section; or
                    ``(iii) was a State establishment as of the 
                date of the enactment of this section that--
                            ``(I) as of the date of the 
                        enactment of this section, employed 
                        more than 25 employees; and
                            ``(II) was reorganized on a later 
                        date by the person, firm, or 
                        corporation that controlled the 
                        establishment as of the date of the 
                        enactment of this section;
                    ``(D) is in violation of this Act;
                    ``(E) is located in a State that does not 
                have a State inspection program; or
                    ``(F) is the subject of a transition 
                carried out in accordance with a procedure 
                developed by the Secretary under paragraph 
                (3)(A).
            ``(3) Establishments that employ more than 25 
        employees.--
                    ``(A) Development of procedure.--The 
                Secretary may develop a procedure to transition 
                to a Federal establishment any establishment 
                under this section that, on average, 
                consistently employs more than 25 employees.
                    ``(B) Eligibility of certain 
                establishments.--
                            ``(i) In general.--A State 
                        establishment that employs more than 25 
                        employees but less than 35 employees as 
                        of the date of the enactment of this 
                        section may be selected as a selected 
                        establishment under this subsection.
                            ``(ii) Procedures.--A State 
                        establishment shall be subject to the 
                        procedures established under 
                        subparagraph (A) beginning on the date 
                        that is 3 years after the effective 
                        date described in subsection (j).
    ``(c) Reimbursement of State Costs.--The Secretary shall 
reimburse a State for costs related to the inspection of 
selected establishments in the State in accordance with Federal 
requirements in an amount of not less than 60 percent of 
eligible State costs.
    ``(d) Coordination Between Federal and State Agencies.--
            ``(1) In general.--The Secretary shall designate an 
        employee of the Federal Government as State coordinator 
        for each appropriate State agency--
                    ``(A) to provide oversight and enforcement 
                of this title; and
                    ``(B) to oversee the training and 
                inspection activities of designated personnel 
                of the State agency.
            ``(2) Supervision.--A State coordinator shall be 
        under the direct supervision of the Secretary.
            ``(3) Duties of state coordinator.--
                    ``(A) In general.--A State coordinator 
                shall visit selected establishments with a 
                frequency that is appropriate to ensure that 
                selected establishments are operating in a 
                manner that is consistent with this Act 
                (including regulations and policies under this 
                Act).
                    ``(B) Quarterly reports.--A State 
                coordinator shall, on a quarterly basis, submit 
                to the Secretary a report that describes the 
                status of each selected establishment that is 
                under the jurisdiction of the State coordinator 
                with respect to the level of compliance of each 
                selected establishment with the requirements of 
                this Act.
                    ``(C) Immediate notification requirement.--
                If a State coordinator determines that any 
                selected establishment that is under the 
                jurisdiction of the State coordinator is in 
                violation of any requirement of this Act, the 
                State coordinator shall--
                            ``(i) immediately notify the 
                        Secretary of the violation; and
                            ``(ii) deselect the selected 
                        establishment or suspend inspection at 
                        the selected establishment.
            ``(4) Performance evaluations.--Performance 
        evaluations of State coordinators designated under this 
        subsection shall be conducted by the Secretary as part 
        of the Federal agency management control system.
    ``(e) Audits.--
            ``(1) Periodic audits conducted by inspector 
        general of the department of agriculture.--Not later 
        than 2 years after the effective date described in 
        subsection (j), and not less often than every 3 years 
        thereafter, the Inspector General of the Department of 
        Agriculture shall conduct an audit of each activity 
        taken by the Secretary under this section for the 
        period covered by the audit to determine compliance 
        with this section.
            ``(2) Audit conducted by comptroller general of the 
        united states.--Not earlier than 3 years, nor later 
        than 5 years, after the date of the enactment of this 
        section, the Comptroller General of the United States 
        shall conduct an audit of the implementation of this 
        section to determine--
                    ``(A) the effectiveness of the 
                implementation of this section; and
                    ``(B) the number of selected establishments 
                selected by the Secretary to ship carcasses, 
                portions of carcasses, or meat items under this 
                section.
    ``(f) Technical Assistance Division.--
            ``(1) Establishment.--Not later than 180 days after 
        the effective date described in subsection (j), the 
        Secretary shall establish in the Food Safety and 
        Inspection Service of the Department of Agriculture a 
        technical assistance division to coordinate the 
        initiatives of any other appropriate agency of the 
        Department of Agriculture to provide--
                    ``(A) outreach, education, and training to 
                very small or certain small establishments (as 
                defined by the Secretary); and
                    ``(B) grants to appropriate State agencies 
                to provide outreach, technical assistance, 
                education, and training to very small or 
                certain small establishments (as defined by the 
                Secretary).
            ``(2) Personnel.--The technical assistance division 
        shall be comprised of individuals that, as determined 
        by the Secretary--
                    ``(A) are of a quantity sufficient to carry 
                out the duties of the technical assistance 
                division; and
                    ``(B) possess appropriate qualifications 
                and expertise relating to the duties of the 
                technical assistance division.
    ``(g) Transition Grants.--The Secretary may provide grants 
to appropriate State agencies to assist the appropriate State 
agencies in helping establishments covered by title III to 
transition to selected establishments.
    ``(h) Violations.--Any selected establishment that the 
Secretary determines to be in violation of any requirement of 
this Act shall be transitioned to a Federal establishment in 
accordance with a procedure developed by the Secretary under 
subsection (b)(3)(A).
    ``(i) Effect.--Nothing in this section limits the 
jurisdiction of the Secretary with respect to the regulation of 
meat and meat products under this Act.
    ``(j) Effective Date.--
            ``(1) In general.--This section takes effect on the 
        date on which the Secretary, after providing a period 
        of public comment (including through the conduct of 
        public meetings or hearings), promulgates final 
        regulations to carry out this section.
            ``(2) Requirement.--Not later than 18 months after 
        the date of the enactment of this section, the 
        Secretary shall promulgate final regulations in 
        accordance with paragraph (1).''.
    (b) Poultry and Poultry Products.--The Poultry Products 
Inspection Act (21 U.S.C. 451 et seq.) is amended by adding at 
the end the following:

``SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY FEDERAL AND 
                    STATE AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.

    ``(a) Definitions.--
            ``(1) Appropriate state agency.--The term 
        `appropriate State agency' means a State agency 
        described in section 5(a)(1).
            ``(2) Designated personnel.--The term `designated 
        personnel' means inspection personnel of a State agency 
        that have undergone all necessary inspection training 
        and certification to assist the Secretary in the 
        administration and enforcement of this Act, including 
        rules and regulations issued under this Act.
            ``(3) Eligible establishment.--The term `eligible 
        establishment' means an establishment that is in 
        compliance with--
                    ``(A) the State inspection program of the 
                State in which the establishment is located; 
                and
                    ``(B) this Act, including rules and 
                regulations issued under this Act.
            ``(4) Poultry item.--The term `poultry item' 
        means--
                    ``(A) a portion of poultry; and
                    ``(B) a poultry product.
            ``(5) Selected establishment.--The term `selected 
        establishment' means an eligible establishment that is 
        selected by the Secretary, in coordination with the 
        appropriate State agency of the State in which the 
        eligible establishment is located, under subsection (b) 
        to ship poultry items in interstate commerce.
    ``(b) Authority of Secretary To Allow Shipments.--
            ``(1) In general.--Subject to paragraph (2), the 
        Secretary, in coordination with the appropriate State 
        agency of the State in which an establishment is 
        located, may select the establishment to ship poultry 
        items in interstate commerce, and place on each poultry 
        item shipped in interstate commerce a Federal mark, 
        stamp, tag, or label of inspection, if--
                    ``(A) the poultry item qualifies for the 
                Federal mark, stamp, tag, or label of 
                inspection under the requirements of this Act;
                    ``(B) the establishment is an eligible 
                establishment; and
                    ``(C) inspection services for the 
                establishment are provided by designated 
                personnel.
            ``(2) Prohibited establishments.--In carrying out 
        paragraph (1), the Secretary, in coordination with an 
        appropriate State agency, shall not select an 
        establishment that--
                    ``(A) on average, employs more than 25 
                employees (including supervisory and 
                nonsupervisory employees), as defined by the 
                Secretary;
                    ``(B) as of the date of the enactment of 
                this section, ships in interstate commerce 
                carcasses, portions of carcasses, or poultry 
                items that are inspected by the Secretary in 
                accordance with this Act;
                    ``(C)(i) is a Federal establishment;
                    ``(ii) was a Federal establishment as of 
                the date of the enactment of this section, and 
                was reorganized on a later date under the same 
                name or a different name or person by the 
                person, firm, or corporation that controlled 
                the establishment as of the date of the 
                enactment of this section; or
                    ``(iii) was a State establishment as of the 
                date of the enactment of this section that--
                            ``(I) as of the date of the 
                        enactment of this section, employed 
                        more than 25 employees; and
                            ``(II) was reorganized on a later 
                        date by the person, firm, or 
                        corporation that controlled the 
                        establishment as of the date of the 
                        enactment of this section;
                    ``(D) is in violation of this Act;
                    ``(E) is located in a State that does not 
                have a State inspection program; or
                    ``(F) is the subject of a transition 
                carried out in accordance with a procedure 
                developed by the Secretary under paragraph 
                (3)(A).
            ``(3) Establishments that employ more than 25 
        employees.--
                    ``(A) Development of procedure.--The 
                Secretary may develop a procedure to transition 
                to a Federal establishment any establishment 
                under this section that, on average, 
                consistently employs more than 25 employees.
                    ``(B) Eligibility of certain 
                establishments.--
                            ``(i) In general.--A State 
                        establishment that employs more than 25 
                        employees but less than 35 employees as 
                        of the date of the enactment of this 
                        section may be selected as a selected 
                        establishment under this subsection.
                            ``(ii) Procedures.--A State 
                        establishment shall be subject to the 
                        procedures established under 
                        subparagraph (A) beginning on the date 
                        that is 3 years after the effective 
                        date described in subsection (i).
    ``(c) Reimbursement of State Costs.--The Secretary shall 
reimburse a State for costs related to the inspection of 
selected establishments in the State in accordance with Federal 
requirements in an amount of not less than 60 percent of 
eligible State costs.
    ``(d) Coordination Between Federal and State Agencies.--
            ``(1) In general.--The Secretary shall designate an 
        employee of the Federal Government as State coordinator 
        for each appropriate State agency--
                    ``(A) to provide oversight and enforcement 
                of this section; and
                    ``(B) to oversee the training and 
                inspection activities of designated personnel 
                of the State agency.
            ``(2) Supervision.--A State coordinator shall be 
        under the direct supervision of the Secretary.
            ``(3) Duties of state coordinator.--
                    ``(A) In general.--A State coordinator 
                shall visit selected establishments with a 
                frequency that is appropriate to ensure that 
                selected establishments are operating in a 
                manner that is consistent with this Act 
                (including regulations and policies under this 
                Act).
                    ``(B) Quarterly reports.--A State 
                coordinator shall, on a quarterly basis, submit 
                to the Secretary a report that describes the 
                status of each selected establishment that is 
                under the jurisdiction of the State coordinator 
                with respect to the level of compliance of each 
                selected establishment with the requirements of 
                this Act.
                    ``(C) Immediate notification requirement.--
                If a State coordinator determines that any 
                selected establishment that is under the 
                jurisdiction of the State coordinator is in 
                violation of any requirement of this Act, the 
                State coordinator shall--
                            ``(i) immediately notify the 
                        Secretary of the violation; and
                            ``(ii) deselect the selected 
                        establishment or suspend inspection at 
                        the selected establishment.
            ``(4) Performance evaluations.--Performance 
        evaluations of State coordinators designated under this 
        subsection shall be conducted by the Secretary as part 
        of the Federal agency management control system.
    ``(e) Audits.--
            ``(1) Periodic audits conducted by inspector 
        general of the department of agriculture.--Not later 
        than 2 years after the effective date described in 
        subsection (i), and not less often than every 3 years 
        thereafter, the Inspector General of the Department of 
        Agriculture shall conduct an audit of each activity 
        taken by the Secretary under this section for the 
        period covered by the audit to determine compliance 
        with this section.
            ``(2) Audit conducted by comptroller general of the 
        united states.--Not earlier than 3 years, nor later 
        than 5 years, after the date of the enactment of this 
        section, the Comptroller General of the United States 
        shall conduct an audit of the implementation of this 
        section to determine--
                    ``(A) the effectiveness of the 
                implementation of this section; and
                    ``(B) the number of selected establishments 
                selected by the Secretary to ship poultry items 
                under this section.
    ``(f) Transition Grants.--The Secretary may provide grants 
to appropriate State agencies to assist the appropriate State 
agencies in helping establishments covered by this Act to 
transition to selected establishments.
    ``(g) Violations.--Any selected establishment that the 
Secretary determines to be in violation of any requirement of 
this Act shall be transitioned to a Federal establishment in 
accordance with a procedure developed by the Secretary under 
subsection (b)(3)(A).
    ``(h) Effect.--Nothing in this section limits the 
jurisdiction of the Secretary with respect to the regulation of 
poultry and poultry products under this Act.
    ``(i) Effective Date.--
            ``(1) In general.--This section takes effect on the 
        date on which the Secretary, after providing a period 
        of public comment (including through the conduct of 
        public meetings or hearings), promulgates final 
        regulations to carry out this section.
            ``(2) Requirement.--Not later than 18 months after 
        the date of the enactment of this section, the 
        Secretary shall promulgate final regulations in 
        accordance with paragraph (1).''.

SEC. 11016. INSPECTION AND GRADING.

    (a) Grading.--Section 203 of the Agricultural Marketing Act 
of 1946 (7 U.S.C. 1622) is amended--
            (1) by redesignating subsection (n) as subsection 
        (o); and
            (2) by inserting after subsection (m) the following 
        new subsection:
    ``(n) Grading Program.--To establish within the Department 
of Agriculture a voluntary fee based grading program for--
            ``(1) catfish (as defined by the Secretary under 
        paragraph (2) of section 1(w) of the Federal Meat 
        Inspection Act (21 U.S.C. 601(w))); and
            ``(2) any additional species of farm-raised fish or 
        farm-raised shellfish--
                    ``(A) for which the Secretary receives a 
                petition requesting such voluntary fee based 
                grading; and
                    ``(B) that the Secretary considers 
                appropriate.''.
    (b) Inspection.--
            (1) In general.--The Federal Meat Inspection Act is 
        amended--
                    (A) in section 1(w) (21 U.S.C. 601(w)) --
                            (i) by striking ``and'' at the end 
                        of paragraph (1);
                            (ii) by redesignating paragraph (2) 
                        as paragraph (3); and
                            (iii) by inserting after paragraph 
                        (1) the following new paragraph:
            ``(2) catfish, as defined by the Secretary; and'';
                    (B) by striking section 6 (21 U.S.C. 606) 
                and inserting the following new section:
    ``Sec. 6. (a) In General.--For the purposes hereinbefore 
set forth the Secretary shall cause to be made, by inspectors 
appointed for that purpose, an examination and inspection of 
all meat food products prepared for commerce in any 
slaughtering, meat-canning, salting, packing, rendering, or 
similar establishment, and for the purposes of any examination 
and inspection and inspectors shall have access at all times, 
by day or night, whether the establishment be operated or not, 
to every part of said establishment; and said inspectors shall 
mark, stamp, tag, or label as `Inspected and passed' all such 
products found to be not adulterated; and said inspectors shall 
label, mark, stamp, or tag as `Inspected and condemned' all 
such products found adulterated, and all such condemned meat 
food products shall be destroyed for food purposes, as 
hereinbefore provided, and the Secretary may remove inspectors 
from any establishment which fails to so destroy such condemned 
meat food products: Provided, That subject to the rules and 
regulations of the Secretary the provisions of this section in 
regard to preservatives shall not apply to meat food products 
for export to any foreign country and which are prepared or 
packed according to the specifications or directions of the 
foreign purchaser, when no substance is used in the preparation 
or packing thereof in conflict with the laws of the foreign 
country to which said article is to be exported; but if said 
article shall be in fact sold or offered for sale for domestic 
use or consumption then this proviso shall not exempt said 
article from the operation of all the other provisions of this 
chapter.
    ``(b) Catfish.--In the case of an examination and 
inspection under subsection (a) of a meat food product derived 
from catfish, the Secretary shall take into account the 
conditions under which the catfish is raised and transported to 
a processing establishment.''; and
                    (C) by adding at the end of title I the 
                following new section:
    ``Sec. 25.  Notwithstanding any other provision of this 
Act, the requirements of sections 3, 4, 5, 10(b), and 23 shall 
not apply to catfish.''.
            (2) Effective date.--
                    (A) In general.--The amendments made by 
                paragraph (1) shall not apply until the date on 
                which the Secretary of Agriculture issues final 
                regulations (after providing a period of public 
                comment, including through the conduct of 
                public meetings or hearings, in accordance with 
                chapter 5 of title 5, United States Code) to 
                carry out such amendments.
                    (B) Regulations.--Not later than 18 months 
                after the date of the enactment of this Act, 
                the Secretary of Agriculture, in consultation 
                with the Commissioner of Food and Drugs, shall 
                issue final regulations to carry out the 
                amendments made by paragraph (1).
            (3) Budget request.--Not later than 30 days after 
        the date of the enactment of this Act, the Secretary of 
        Agriculture shall submit to Congress an estimate of the 
        costs of implementing the amendments made by paragraph 
        (1), including the estimated--
                    (A) staff years;
                    (B) number of establishments;
                    (C) volume expected to be produced at such 
                establishments; and
                    (D) any other information used in 
                estimating the costs of implementing such 
                amendments.

SEC. 11017. FOOD SAFETY IMPROVEMENT.

    (a) Federal Meat Inspection Act.--Title I of the Federal 
Meat Inspection Act is further amended by inserting after 
section 11 (21 U.S.C. 611) the following:

``SEC. 12. NOTIFICATION.

    ``Any establishment subject to inspection under this Act 
that believes, or has reason to believe, that an adulterated or 
misbranded meat or meat food product received by or originating 
from the establishment has entered into commerce shall promptly 
notify the Secretary with regard to the type, amount, origin, 
and destination of the meat or meat food product.

``SEC. 13. PLANS AND REASSESSMENTS.

    ``The Secretary shall require that each establishment 
subject to inspection under this Act shall, at a minimum--
            ``(1) prepare and maintain current procedures for 
        the recall of all meat or meat food products produced 
        and shipped by the establishment;
            ``(2) document each reassessment of the process 
        control plans of the establishment; and
            ``(3) upon request, make the procedures and 
        reassessed process control plans available to 
        inspectors appointed by the Secretary for review and 
        copying.''.
    (b) Poultry Products Inspection Act.--Section 10 of the 
Poultry Products Inspection Act (21 U.S.C. 459) is amended--
            (1) by striking the section heading and all that 
        follows through ``sec. 10. No establishment'' and 
        inserting the following:

``SEC. 10. COMPLIANCE BY ALL ESTABLISHMENTS.

    ``(a) In General.--No establishment''; and
            (2) by adding at the end the following:
    ``(b) Notification.--Any establishment subject to 
inspection under this Act that believes, or has reason to 
believe, that an adulterated or misbranded poultry or poultry 
product received by or originating from the establishment has 
entered into commerce shall promptly notify the Secretary with 
regard to the type, amount, origin, and destination of the 
poultry or poultry product.
    ``(c) Plans and Reassessments.--The Secretary shall require 
that each establishment subject to inspection under this Act 
shall, at a minimum--
            ``(1) prepare and maintain current procedures for 
        the recall of all poultry or poultry products produced 
        and shipped by the establishment;
            ``(2) document each reassessment of the process 
        control plans of the establishment; and
            ``(3) upon request, make the procedures and 
        reassessed process control plans available to 
        inspectors appointed by the Secretary for review and 
        copying.''.

       TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS

    Subtitle A--Crop Insurance and Agricultural Disaster Assistance

SEC. 12001. DEFINITION OF ORGANIC CROP.

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

SEC. 12002. GENERAL POWERS.

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

SEC. 12003. REDUCTION IN LOSS RATIO.

    (a) Projected Loss Ratio.--Subsection (n)(2) of section 506 
of the Federal Crop Insurance Act (7 U.S.C. 1506) (as 
redesignated by section 12002(b)(1)) is amended--
            (1) in the paragraph heading, by striking ``as of 
        october 1, 1998'';
            (2) by striking ``, on and after October 1, 
        1998,''; and
            (3) by striking ``1.075'' and inserting ``1.0''.
    (b) Premiums Required.--Section 508(d)(1) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking 
``not greater than 1.1'' and all that follows and inserting 
``not greater than--
                    ``(A) 1.1 through September 30, 1998;
                    ``(B) 1.075 for the period beginning 
                October 1, 1998, and ending on the day before 
                the date of enactment of the Food, 
                Conservation, and Energy Act of 2008; and
                    ``(C) 1.0 on and after the date of 
                enactment of that Act.''.

SEC. 12004. PREMIUMS ADJUSTMENTS.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)) is amended by adding at the end the following:
            ``(9) Premium adjustments.--
                    ``(A) Prohibition.--Except as provided in 
                subparagraph (B), no person shall pay, allow, 
                or give, or offer to pay, allow, or give, 
                directly or indirectly, either as an inducement 
                to procure insurance or after insurance has 
                been procured, any rebate, discount, abatement, 
                credit, or reduction of the premium named in an 
                insurance policy or any other valuable 
                consideration or inducement not specified in 
                the policy.
                    ``(B) Exceptions.--Subparagraph (A) does 
                not apply with respect to--
                            ``(i) a payment authorized under 
                        subsection (b)(5)(B);
                            ``(ii) a performance-based discount 
                        authorized under subsection (d)(3); or
                            ``(iii) a patronage dividend, or 
                        similar payment, that is paid--
                                    ``(I) by an entity that was 
                                approved by the Corporation to 
                                make such payments for the 
                                2005, 2006, or 2007 reinsurance 
                                year, in accordance with 
                                subsection (b)(5)(B) as in 
                                effect on the day before the 
                                date of enactment of this 
                                paragraph; and
                                    ``(II) in a manner 
                                consistent with the payment 
                                plan approved in accordance 
                                with that subsection for the 
                                entity by the Corporation for 
                                the applicable reinsurance 
                                year.''.

SEC. 12005. CONTROLLED BUSINESS INSURANCE.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)) (as amended by section 12004) is amended by adding at 
the end the following:
            ``(10) Commissions.--
                    ``(A) Definition of immediate family.--In 
                this paragraph, the term `immediate family' 
                means an individual's father, mother, 
                stepfather, stepmother, brother, sister, 
                stepbrother, stepsister, son, daughter, 
                stepson, stepdaughter, grandparent, grandson, 
                granddaughter, father-in-law, mother-in-law, 
                brother-in-law, sister-in-law, son-in-law, 
                daughter-in-law, the spouse of the foregoing, 
                and the individual's spouse.
                    ``(B) Prohibition.--No individual 
                (including a subagent) may receive directly, or 
                indirectly through an entity, any compensation 
                (including any commission, profit sharing, 
                bonus, or any other direct or indirect benefit) 
                for the sale or service of a policy or plan of 
                insurance offered under this title if--
                            ``(i) the individual has a 
                        substantial beneficial interest, or a 
                        member of the individual's immediate 
                        family has a substantial beneficial 
                        interest, in the policy or plan of 
                        insurance; and
                            ``(ii) the total compensation to be 
                        paid to the individual with respect to 
                        the sale or service of the policies or 
                        plans of insurance that meet the 
                        condition described in clause (i) 
                        exceeds 30 percent or the percentage 
                        specified in State law, whichever is 
                        less, of the total of all compensation 
                        received directly or indirectly by the 
                        individual for the sale or service of 
                        all policies and plans of insurance 
                        offered under this title for the 
                        reinsurance year.
                    ``(C) Reporting.--Not later than 90 days 
                after the annual settlement date of the 
                reinsurance year, any individual that received 
                directly or indirectly any compensation for the 
                service or sale of any policy or plan of 
                insurance offered under this title in the prior 
                reinsurance year shall certify to applicable 
                approved insurance providers that the 
                compensation that the individual received was 
                in compliance with this paragraph.
                    ``(D) Sanctions.--The procedural 
                requirements and sanctions prescribed in 
                section 515(h) shall apply to the prosecution 
                of a violation of this paragraph.
                    ``(E) Applicability.--
                            ``(i) In general.--Sanctions for 
                        violations under this paragraph shall 
                        only apply to the individuals or 
                        entities directly responsible for the 
                        certification required under 
                        subparagraph (C) or the failure to 
                        comply with the requirements of this 
                        paragraph.
                            ``(ii) Prohibition.--No sanctions 
                        shall apply with respect to the policy 
                        or plans of insurance upon which 
                        compensation is received, including the 
                        reinsurance for those policies or 
                        plans.''.

SEC. 12006. ADMINISTRATIVE FEE.

    (a) In General.--Section 508(b)(5) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(b)(5)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) Basic fee.--Each producer shall pay 
                an administrative fee for catastrophic risk 
                protection in the amount of $300 per crop per 
                county.''; and
            (2) in subparagraph (B)--
                    (A) by striking ``PAYMENT ON BEHALF OF 
                PRODUCERS'' and inserting ``PAYMENT OF 
                CATASTROPHIC RISK PROTECTION FEE ON BEHALF OF 
                PRODUCERS'';
                    (B) in clause (i)--
                            (i) by striking ``or other 
                        payment''; and
                            (ii) by striking ``with 
                        catastrophic risk protection or 
                        additional coverage'' and inserting 
                        ``through the payment of catastrophic 
                        risk protection administrative fees'';
                    (C) by striking clauses (ii) and (vi);
                    (D) by redesignating clauses (iii), (iv), 
                and (v) as clauses (ii), (iii), and (iv), 
                respectively;
                    (E) in clause (iii) (as so redesignated), 
                by striking ``A policy or plan of insurance'' 
                and inserting ``Catastrophic risk protection 
                coverage''; and
                    (F) in clause (iv) (as so redesignated)--
                            (i) by striking ``or other 
                        arrangement under this subparagraph''; 
                        and
                            (ii) by striking ``additional''.
    (b) Repeal.--Section 748 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999 (7 U.S.C. 1508 note; Public Law 105-
277) is repealed.

SEC. 12007. TIME FOR PAYMENT.

    Section 508 of the Federal Crop Insurance Act (7 U.S.C. 
1508) is amended--
            (1) in subsection (b)(5)(C), by striking ``the date 
        that premium'' and inserting ``the same date on which 
        the premium'';
            (2) in subsection (c)(10), by adding at the end the 
        following:
                    ``(C) Time for payment.--Subsection 
                (b)(5)(C) shall apply with respect to the 
                collection date for the administrative fee.''; 
                and
            (3) in subsection (d), by adding at the end the 
        following:
            ``(4) Billing date for premiums.--Effective 
        beginning with the 2012 reinsurance year, the 
        Corporation shall establish August 15 as the billing 
        date for premiums.''.

SEC. 12008. CATASTROPHIC COVERAGE REIMBURSEMENT RATE.

    Section 508(b)(11) of the Federal Crop Insurance Act (7 
U.S.C. 1508(b)(11)) is amended by striking ``8 percent'' and 
inserting ``6 percent''.

SEC. 12009. GRAIN SORGHUM PRICE ELECTION.

    Section 508(c)(5) of the Federal Crop Insurance Act (7 
U.S.C. 1508(c)(5)) is amended by adding at the end the 
following:
                    ``(D) Grain sorghum price election.--
                            ``(i) In general.--The Corporation, 
                        in conjunction with the Secretary 
                        (referred to in this subparagraph as 
                        the `Corporation'), shall--
                                    ``(I) not later than 60 
                                days after the date of 
                                enactment of this subparagraph, 
                                make available all methods and 
                                data, including data from the 
                                Economic Research Service, used 
                                by the Corporation to develop 
                                the expected market prices for 
                                grain sorghum under the 
                                production and revenue-based 
                                plans of insurance of the 
                                Corporation; and
                                    ``(II) request applicable 
                                data from the grain sorghum 
                                industry.
                            ``(ii) Expert reviewers.--
                                    ``(I) In general.--Not 
                                later than 120 days after the 
                                date of enactment of this 
                                subparagraph, the Corporation 
                                shall contract individually 
                                with 5 expert reviewers 
                                described in subclause (II) to 
                                develop and recommend a 
                                methodology for determining an 
                                expected market price for 
                                sorghum for both the production 
                                and revenue-based plans of 
                                insurance to more accurately 
                                reflect the actual price at 
                                harvest.
                                    ``(II) Requirements.--The 
                                expert reviewers under 
                                subclause (I) shall be 
                                comprised of agricultural 
                                economists with experience in 
                                grain sorghum and corn markets, 
                                of whom--
                                            ``(aa) 2 shall be 
                                        agricultural economists 
                                        of institutions of 
                                        higher education;
                                            ``(bb) 2 shall be 
                                        economists from within 
                                        the Department; and
                                            ``(cc) 1 shall be 
                                        an economist nominated 
                                        by the grain sorghum 
                                        industry.
                            ``(iii) Recommendations.--
                                    ``(I) In general.--Not 
                                later than 90 days after the 
                                date of contracting with the 
                                expert reviewers under clause 
                                (ii), the expert reviewers 
                                shall submit, and the 
                                Corporation shall make 
                                available to the public, the 
                                recommendations of the expert 
                                reviewers.
                                    ``(II) Consideration.--The 
                                Corporation shall consider the 
                                recommendations under subclause 
                                (I) when determining the 
                                appropriate pricing methodology 
                                to determine the expected 
                                market price for grain sorghum 
                                under both the production and 
                                revenue-based plans of 
                                insurance.
                                    ``(III) Publication.--Not 
                                later than 60 days after the 
                                date on which the Corporation 
                                receives the recommendations of 
                                the expert reviewers, the 
                                Corporation shall publish the 
                                proposed pricing methodology 
                                for both the production and 
                                revenue-based plans of 
                                insurance for notice and 
                                comment and, during the comment 
                                period, conduct at least 1 
                                public meeting to discuss the 
                                proposed pricing methodologies.
                            ``(iv) Appropriate pricing 
                        methodology.--
                                    ``(I) In general.--Not 
                                later than 180 days after the 
                                close of the comment period in 
                                clause (iii)(III), but 
                                effective not later than the 
                                2010 crop year, the Corporation 
                                shall implement a pricing 
                                methodology for grain sorghum 
                                under the production and 
                                revenue-based plans of 
                                insurance that is transparent 
                                and replicable.
                                    ``(II) Interim 
                                methodology.--Until the date on 
                                which the new pricing 
                                methodology is implemented, the 
                                Corporation may continue to use 
                                the pricing methodology that 
                                the Corporation determines best 
                                establishes the expected market 
                                price.
                                    ``(III) Availability.--On 
                                an annual basis, the 
                                Corporation shall make 
                                available the pricing 
                                methodology and data used to 
                                determine the expected market 
                                prices for grain sorghum under 
                                the production and revenue-
                                based plans of insurance, 
                                including any changes to the 
                                methodology used to determine 
                                the expected market prices for 
                                grain sorghum from the previous 
                                year.''.

SEC. 12010. PREMIUM REDUCTION AUTHORITY.

    Subsection 508(e) of the Federal Crop Insurance Act (7 
U.S.C. 1508(e)) is amended--
            (1) in paragraph (2), by striking ``paragraph (4)'' 
        and inserting ``paragraph (3)'';
            (2) by striking paragraph (3); and
            (3) by redesignating paragraphs (4) and (5) as 
        paragraphs (3) and (4), respectively.

SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS.

    Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 
1508(e)) (as amended by section 12010) is amended by adding at 
the end the following:
            ``(5) Enterprise and whole farm units.--
                    ``(A) In general.--The Corporation may 
                carry out a pilot program under which the 
                Corporation pays a portion of the premiums for 
                plans or policies of insurance for which the 
                insurable unit is defined on a whole farm or 
                enterprise unit basis that is higher than would 
                otherwise be paid in accordance with paragraph 
                (2).
                    ``(B) Amount.--The percentage of the 
                premium paid by the Corporation to a 
                policyholder for a policy with an enterprise or 
                whole farm unit under this paragraph shall, to 
                the maximum extent practicable, provide the 
                same dollar amount of premium subsidy per acre 
                that would otherwise have been paid by the 
                Corporation under paragraph (2) if the 
                policyholder had purchased a basic or optional 
                unit for the crop for the crop year.
                    ``(C) Limitation.--The amount of the 
                premium paid by the Corporation under this 
                paragraph may not exceed 80 percent of the 
                total premium for the enterprise or whole farm 
                unit policy.''.

SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE PLANS.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)) (as amended by section 12011) is amended--
            (1) in paragraph (2), in the matter preceding 
        subparagraph (A), by striking ``paragraph (4)'' and 
        inserting ``paragraphs (4), (6), and (7)''; and
            (2) by adding at the end the following:
            ``(6) Premium subsidy for area revenue plans.--
        Subject to paragraph (4), in the case of a policy or 
        plan of insurance that covers losses due to a reduction 
        in revenue in an area, the amount of the premium paid 
        by the Corporation shall be as follows:
                    ``(A) In the case of additional area 
                coverage equal to or greater than 70 percent, 
                but less than 75 percent, of the recorded 
                county yield indemnified at not greater than 
                100 percent of the expected market price, the 
                amount shall be equal to the sum of--
                            ``(i) 59 percent of the amount of 
                        the premium established under 
                        subsection (d)(2)(B)(i) for the 
                        coverage level selected; and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the 
                        coverage level selected to cover 
                        operating and administrative expenses.
                    ``(B) In the case of additional area 
                coverage equal to or greater than 75 percent, 
                but less than 85 percent, of the recorded 
                county yield indemnified at not greater than 
                100 percent of the expected market price, the 
                amount shall be equal to the sum of--
                            ``(i) 55 percent of the amount of 
                        the premium established under 
                        subsection (d)(2)(B)(i) for the 
                        coverage level selected; and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the 
                        coverage level selected to cover 
                        operating and administrative expenses.
                    ``(C) In the case of additional area 
                coverage equal to or greater than 85 percent, 
                but less than 90 percent, of the recorded 
                county yield indemnified at not greater than 
                100 percent of the expected market price, the 
                amount shall be equal to the sum of--
                            ``(i) 49 percent of the amount of 
                        the premium established under 
                        subsection (d)(2)(B)(i) for the 
                        coverage level selected; and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the 
                        coverage level selected to cover 
                        operating and administrative expenses.
                    ``(D) In the case of additional area 
                coverage equal to or greater than 90 percent of 
                the recorded county yield indemnified at not 
                greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum 
                of--
                            ``(i) 44 percent of the amount of 
                        the premium established under 
                        subsection (d)(2)(B)(i) for the 
                        coverage level selected; and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the 
                        coverage level selected to cover 
                        operating and administrative expenses.
            ``(7) Premium subsidy for area yield plans.--
        Subject to paragraph (4), in the case of a policy or 
        plan of insurance that covers losses due to a loss of 
        yield or prevented planting in an area, the amount of 
        the premium paid by the Corporation shall be as 
        follows:
                    ``(A) In the case of additional area 
                coverage equal to or greater than 70 percent, 
                but less than 80 percent, of the recorded 
                county yield indemnified at not greater than 
                100 percent of the expected market price, the 
                amount shall be equal to the sum of--
                            ``(i) 59 percent of the amount of 
                        the premium established under 
                        subsection (d)(2)(B)(i) for the 
                        coverage level selected; and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the 
                        coverage level selected to cover 
                        operating and administrative expenses.
                    ``(B) In the case of additional area 
                coverage equal to or greater than 80 percent, 
                but less than 90 percent, of the recorded 
                county yield indemnified at not greater than 
                100 percent of the expected market price, the 
                amount shall be equal to the sum of--
                            ``(i) 55 percent of the amount of 
                        the premium established under 
                        subsection (d)(2)(B)(i) for the 
                        coverage level selected; and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the 
                        coverage level selected to cover 
                        operating and administrative expenses.
                    ``(C) In the case of additional area 
                coverage equal to or greater than 90 percent, 
                of the recorded county yield indemnified at not 
                greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum 
                of--
                            ``(i) 51 percent of the amount of 
                        the premium established under 
                        subsection (d)(2)(B)(i) for the 
                        coverage level selected; and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the 
                        coverage level selected to cover 
                        operating and administrative 
                        expenses.''.

SEC. 12013. DENIAL OF CLAIMS.

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

SEC. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON FARM-STORED 
                    PRODUCTION.

    (a) In General.--Section 508(j) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the 
end the following:
            ``(5) Settlement of claims on farm-stored 
        production.--A producer with farm-stored production 
        may, at the option of the producer, delay settlement of 
        a crop insurance claim relating to the farm-stored 
        production for up to 4 months after the last date on 
        which claims may be submitted under the policy of 
        insurance.''.
    (b) Study on the Efficacy of Pack Factors.--
            (1) In general.--The Secretary shall conduct a 
        study of the efficacy and accuracy of the application 
        of pack factors regarding the measurement of farm-
        stored production for purposes of providing policies or 
        plans of insurance under the Federal Crop Insurance Act 
        (7 U.S.C. 1501 et seq.).
            (2) Considerations.--The study shall consider--
                    (A) structural shape and size;
                    (B) time in storage;
                    (C) the impact of facility aeration 
                systems; and
                    (D) any other factors the Secretary 
                considers appropriate.
            (3) Report.--Not later than 3 years after the date 
        of enactment of this Act, the Secretary shall submit to 
        the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report that 
        includes the findings of the study and any related 
        policy recommendations.

SEC. 12015. TIME FOR REIMBURSEMENT.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 
U.S.C. 1508(k)(4)) is amended by adding at the end the 
following:
                    ``(D) Time for reimbursement.--Effective 
                beginning with the 2012 reinsurance year, the 
                Corporation shall reimburse approved insurance 
                providers and agents for the allowable 
                administrative and operating costs of the 
                providers and agents as soon as practicable 
                after October 1 (but not later than October 31) 
                after the reinsurance year for which 
                reimbursements are earned.''.

SEC. 12016. REIMBURSEMENT RATE.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 
U.S.C. 1508(k)(4)) (as amended by section 12015) is amended--
            (1) in subparagraph (A), by striking ``Except as 
        provided in subparagraph (B)'' and inserting ``Except 
        as otherwise provided in this paragraph''; and
            (2) by adding at the end the following:
                    ``(E) Reimbursement rate reduction.--In the 
                case of a policy of additional coverage that 
                received a rate of reimbursement for 
                administrative and operating costs for the 2008 
                reinsurance year, for each of the 2009 and 
                subsequent reinsurance years, the reimbursement 
                rate for administrative and operating costs 
                shall be 2.3 percentage points below the rates 
                in effect as of the date of enactment of the 
                Food, Conservation, and Energy Act of 2008 for 
                all crop insurance policies used to define loss 
                ratio, except that only \1/2\ of the reduction 
                shall apply in a reinsurance year to the total 
                premium written in a State in which the State 
                loss ratio is greater than 1.2.
                    ``(F) Reimbursement rate for area policies 
                and plans of insurance.--Notwithstanding 
                subparagraphs (A) through (E), for each of the 
                2009 and subsequent reinsurance years, the 
                reimbursement rate for area policies and plans 
                of insurance widely available as of the date of 
                enactment of this subparagraph shall be 12 
                percent of the premium used to define loss 
                ratio for that reinsurance year.''.

SEC. 12017. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

    Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)) is amended by adding at the end the following:
            ``(8) Renegotiation of standard reinsurance 
        agreement.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), notwithstanding section 536 
                of the Agricultural Research, Extension, and 
                Education Reform Act of 1998 (7 U.S.C. 1506 
                note; Public Law 105-185) and section 148 of 
                the Agricultural Risk Protection Act of 2000 (7 
                U.S.C. 1506 note; Public Law 106-224), the 
                Corporation may renegotiate the financial terms 
                and conditions of each Standard Reinsurance 
                Agreement--
                            ``(i) to be effective for the 2011 
                        reinsurance year beginning July 1, 
                        2010; and
                            ``(ii) once during each period of 5 
                        reinsurance years thereafter.
                    ``(B) Exceptions.--
                            ``(i) Adverse circumstances.--
                        Subject to clause (ii), subparagraph 
                        (A) shall not apply in any case in 
                        which the approved insurance providers, 
                        as a whole, experience unexpected 
                        adverse circumstances, as determined by 
                        the Secretary.
                            ``(ii) Effect of federal law 
                        changes.--If Federal law is enacted 
                        after the date of enactment of this 
                        paragraph that requires revisions in 
                        the financial terms of the Standard 
                        Reinsurance Agreement, and changes in 
                        the Agreement are made on a mandatory 
                        basis by the Corporation, the changes 
                        shall not be considered to be a 
                        renegotiation of the Agreement for 
                        purposes of subparagraph (A).
                    ``(C) Notification requirement.--If the 
                Corporation renegotiates a Standard Reinsurance 
                Agreement under subparagraph (A)(iii), the 
                Corporation shall notify the Committee on 
                Agriculture of the House of Representatives and 
                the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate of the renegotiation.
                    ``(D) Consultation.--The approved insurance 
                providers may confer with each other and 
                collectively with the Corporation during any 
                renegotiation under subparagraph (A).
                    ``(E) 2011 reinsurance year.--
                            ``(i) In general.--As part of the 
                        Standard Reinsurance Agreement 
                        renegotiation authorized under 
                        subparagraph (A)(i), the Corporation 
                        shall consider alternative methods to 
                        determine reimbursement rates for 
                        administrative and operating costs.
                            ``(ii) Alternative methods.--
                        Alternatives considered under clause 
                        (i) shall include--
                                    ``(I) methods that--
                                            ``(aa) are 
                                        graduated and base 
                                        reimbursement rates in 
                                        a State on changes in 
                                        premiums in that State;
                                            ``(bb) are 
                                        graduated and base 
                                        reimbursement rates in 
                                        a State on the loss 
                                        ratio for crop 
                                        insurance for that 
                                        State; and
                                            ``(cc) are 
                                        graduated and base 
                                        reimbursement rates on 
                                        individual policies on 
                                        the level of total 
                                        premium for each 
                                        policy; and
                                    ``(II) any other method 
                                that takes into account current 
                                financial conditions of the 
                                program and ensures continued 
                                availability of the program to 
                                producers on a nationwide 
                                basis.''.

SEC. 12018. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR 
                    UNDERWRITING GAINS.

    Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)) (as amended by section 12017) is amended by adding at 
the end the following:
            ``(9) Due date for payment of underwriting gains.--
        Effective beginning with the 2011 reinsurance year, the 
        Corporation shall make payments for underwriting gains 
        under this title on--
                    ``(A) for the 2011 reinsurance year, 
                October 1, 2012; and
                    ``(B) for each reinsurance year thereafter, 
                October 1 of the following calendar year.''.

SEC. 12019. MALTING BARLEY.

    Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 
1508(m)) is amended by adding at the end the following:
            ``(5) Special provisions for malting barley.--The 
        Corporation shall promulgate special provisions under 
        this subsection specific to malting barley, taking into 
        consideration any changes in quality factors, as 
        required by applicable market conditions.''.

SEC. 12020. CROP PRODUCTION ON NATIVE SOD.

    (a) Federal Crop Insurance.--Section 508 of the Federal 
Crop Insurance Act (7 U.S.C. 1508) is amended by adding at the 
end the following:
    ``(o) Crop Production on Native Sod.--
            ``(1) Definition of native sod.--In this 
        subsection, the term `native sod' means land--
                    ``(A) on which the plant cover is composed 
                principally of native grasses, grasslike 
                plants, forbs, or shrubs suitable for grazing 
                and browsing; and
                    ``(B) that has never been tilled for the 
                production of an annual crop as of the date of 
                enactment of this subsection.
            ``(2) Ineligibility for benefits.--
                    ``(A) In general.--Subject to subparagraph 
                (B) and paragraph (3), native sod acreage that 
                has been tilled for the production of an annual 
                crop after the date of enactment of this 
                subsection shall be ineligible during the first 
                5 crop years of planting, as determined by the 
                Secretary, for benefits under--
                            ``(i) this title; and
                            ``(ii) section 196 of the Federal 
                        Agriculture Improvement and Reform Act 
                        of 1996 (7 U.S.C. 7333).
                    ``(B) De minimis acreage exemption.--The 
                Secretary shall exempt areas of 5 acres or less 
                from subparagraph (A).
            ``(3) Application.--Paragraph (2) may apply to 
        native sod acreage in the Prairie Pothole National 
        Priority Area at the election of the Governor of the 
        respective State.''.
    (b) Noninsured Crop Disaster Assistance.--Section 196(a) of 
the Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7333(a)) is amended by adding at the end the following:
            ``(4) Program ineligibility relating to crop 
        production on native sod.--
                    ``(A) Definition of native sod.--In this 
                paragraph, the term `native sod' means land--
                            ``(i) on which the plant cover is 
                        composed principally of native grasses, 
                        grasslike plants, forbs, or shrubs 
                        suitable for grazing and browsing; and
                            ``(ii) that has never been tilled 
                        for the production of an annual crop as 
                        of the date of enactment of this 
                        paragraph.
                    ``(B) Ineligibility for benefits.--
                            ``(i) In general.--Subject to 
                        clause (ii) and subparagraph (C), 
                        native sod acreage that has been tilled 
                        for the production of an annual crop 
                        after the date of enactment of this 
                        paragraph shall be ineligible during 
                        the first 5 crop years of planting, as 
                        determined by the Secretary, for 
                        benefits under--
                                    ``(I) this section; and
                                    ``(II) the Federal Crop 
                                Insurance Act (7 U.S.C. 1501 et 
                                seq.).
                            ``(ii) De minimis acreage 
                        exemption.--The Secretary shall exempt 
                        areas of 5 acres or less from clause 
                        (i).
                    ``(C) Application.--Subparagraph (B) may 
                apply to native sod acreage in the Prairie 
                Pothole National Priority Area at the election 
                of the Governor of the respective State.''.

SEC. 12021. INFORMATION MANAGEMENT.

    Section 515 of the Federal Crop Insurance Act (7 U.S.C. 
1515) is amended--
     (a) in subsection (j)(3), by adding before the period at 
the end the following: ``, which shall be subject to 
competition on a periodic basis, as determined by the 
Secretary''; and
    (b) by striking subsection (k) and inserting the following:
    ``(k) Funding.--
            ``(1) Information technology.--To carry out 
        subsection (j)(1), the Corporation may use, from 
        amounts made available from the insurance fund 
        established under section 516(c), not more than 
        $15,000,000 for each of fiscal years 2008 through 2011.
            ``(2) Data mining.--To carry out subsection (j)(2), 
        the Corporation may use, from amounts made available 
        from the insurance fund established under section 
        516(c), not more than $4,000,000 for fiscal year 2009 
        and each subsequent fiscal year.''.

SEC. 12022. RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 522(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1522(b)) is amended by striking 
paragraphs (1) and (2) and inserting the following:
            ``(1) Research and development payment.--
                    ``(A) In general.--The Corporation shall 
                provide a payment to an applicant for research 
                and development costs in accordance with this 
                subsection.
                    ``(B) Reimbursement.--An applicant who 
                submits a policy under section 508(h) shall be 
                eligible for the reimbursement of reasonable 
                research and development costs directly related 
                to the policy if the policy is approved by the 
                Board for sale to producers.
            ``(2) Advance payments.--
                    ``(A) In general.--Subject to the other 
                provisions of this paragraph, the Board may 
                approve the request of an applicant for advance 
                payment of a portion of reasonable research and 
                development costs prior to submission and 
                approval of the policy by the Board under 
                section 508(h).
                    ``(B) Procedures.--The Board shall 
                establish procedures for approving advance 
                payment of reasonable research and development 
                costs to applicants.
                    ``(C) Concept proposal.--As a condition of 
                eligibility for advance payments, an applicant 
                shall submit a concept proposal for the policy 
                that the applicant plans to submit to the Board 
                under section 508(h), consistent with 
                procedures established by the Board for 
                submissions under subparagraph (B), including--
                            ``(i) a summary of the 
                        qualifications of the applicant, 
                        including any prior concept proposals 
                        and submissions to the Board under 
                        section 508(h) and, if applicable, any 
                        work conducted under this section;
                            ``(ii) a projection of total 
                        research and development costs that the 
                        applicant expects to incur;
                            ``(iii) a description of the need 
                        for the policy, the marketability of 
                        and expected demand for the policy 
                        among affected producers, and the 
                        potential impact of the policy on 
                        producers and the crop insurance 
                        delivery system;
                            ``(iv) a summary of data sources 
                        available to demonstrate that the 
                        policy can reasonably be developed and 
                        actuarially appropriate rates 
                        established; and
                            ``(v) an identification of the 
                        risks the proposed policy will cover 
                        and an explanation of how the 
                        identified risks are insurable under 
                        this title.
                    ``(D) Review.--
                            ``(i) Experts.--If the requirements 
                        of subparagraph (B) and (C) are met, 
                        the Board may submit a concept proposal 
                        described in subparagraph (C) to not 
                        less than 2 independent expert 
                        reviewers, whose services are 
                        appropriate for the type of concept 
                        proposal submitted, to assess the 
                        likelihood that the proposed policy 
                        being developed will result in a viable 
                        and marketable policy, as determined by 
                        the Board.
                            ``(ii) Timing.--The time frames 
                        described in subparagraphs (C) and (D) 
                        of section 508(h)(4) shall apply to the 
                        review of concept proposals under this 
                        subparagraph.
                    ``(E) Approval.--The Board may approve up 
                to 50 percent of the projected total research 
                and development costs to be paid in advance to 
                an applicant, in accordance with the procedures 
                developed by the Board for the making of such 
                payments, if, after consideration of the 
                reviewer reports described in subparagraph (D) 
                and such other information as the Board 
                determines appropriate, the Board determines 
                that--
                            ``(i) the concept, in good faith, 
                        will likely result in a viable and 
                        marketable policy consistent with 
                        section 508(h);
                            ``(ii) in the sole opinion of the 
                        Board, the concept, if developed into a 
                        policy and approved by the Board, would 
                        provide crop insurance coverage--
                                    ``(I) in a significantly 
                                improved form;
                                    ``(II) to a crop or region 
                                not traditionally served by the 
                                Federal crop insurance program; 
                                or
                                    ``(III) in a form that 
                                addresses a recognized flaw or 
                                problem in the program;
                            ``(iii) the applicant agrees to 
                        provide such reports as the Corporation 
                        determines are necessary to monitor the 
                        development effort;
                            ``(iv) the proposed budget and 
                        timetable are reasonable; and
                            ``(v) the concept proposal meets 
                        any other requirements that the Board 
                        determines appropriate.
                    ``(F) Submission of policy.--If the Board 
                approves an advanced payment under subparagraph 
                (E), the Board shall establish a date by which 
                the applicant shall present a submission in 
                compliance with section 508(h) (including the 
                procedures implemented under that section) to 
                the Board for approval.
                    ``(G) Final payment.--
                            ``(i) Approved policies.--If a 
                        policy is submitted under subparagraph 
                        (F) and approved by the Board under 
                        section 508(h) and the procedures 
                        established by the Board (including 
                        procedures established under 
                        subparagraph (B)), the applicant shall 
                        be eligible for a payment of reasonable 
                        research and development costs in the 
                        same manner as policies reimbursed 
                        under paragraph (1)(B), less any 
                        payments made pursuant to subparagraph 
                        (E).
                            ``(ii) Policies not approved.--If a 
                        policy is submitted under subparagraph 
                        (F) and is not approved by the Board 
                        under section 508(h), the Corporation 
                        shall--
                                    ``(I) not seek a refund of 
                                any payments made in accordance 
                                with this paragraph; and
                                    ``(II) not make any further 
                                research and development cost 
                                payments associated with the 
                                submission of the policy under 
                                this paragraph.
                    ``(H) Policy not submitted.--If an 
                applicant receives an advance payment and fails 
                to fulfill the obligation of the applicant to 
                the Board by not submitting a completed 
                submission without just cause and in accordance 
                with the procedures established under 
                subparagraph (B)), including notice and 
                reasonable opportunity to respond, as 
                determined by the Board, the applicant shall 
                return to the Board the amount of the advance 
                plus interest.
                    ``(I) Repeated submissions.--The Board may 
                prohibit advance payments to applicants who 
                have submitted--
                            ``(i) a concept proposal or 
                        submission that did not result in a 
                        marketable product; or
                            ``(ii) a concept proposal or 
                        submission of poor quality.
                    ``(J) Continued eligibility.--A 
                determination that an applicant is not eligible 
                for advance payments under this paragraph shall 
                not prevent an applicant from reimbursement 
                under paragraph (1)(B).''.
    (b) Conforming Amendments.--Section 522(b) of the Federal 
Crop Insurance Act (7 U.S.C. 1522(b)) is amended--
            (1) in paragraph (3), by striking ``or (2)''; and
            (2) in paragraph (4)(A), by striking ``and (2)''.''

SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND STUDIES.

    Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 
1522) is amended--
            (1) by redesignating paragraph (10) as paragraph 
        (17); and
            (2) by inserting after paragraph (9) the following:
            ``(10) Contracts for organic production coverage 
        improvements.--
                    ``(A) Contracts required.--Not later than 
                180 days after the date of enactment of the 
                Food, Conservation, and Energy Act of 2008, the 
                Corporation shall enter into 1 or more 
                contracts for the development of improvements 
                in Federal crop insurance policies covering 
                crops produced in compliance with standards 
                issued by the Department of Agriculture under 
                the national organic program established under 
                the Organic Foods Production Act of 1990 (7 
                U.S.C. 6501 et seq.).
                    ``(B) Review of underwriting risk and loss 
                experience.--
                            ``(i) Review required.--
                                    ``(I) In general.--A 
                                contract under subparagraph (A) 
                                shall include a review of the 
                                underwriting, risk, and loss 
                                experience of organic crops 
                                covered by the Corporation, as 
                                compared with the same crops 
                                produced in the same counties 
                                and during the same crop years 
                                using nonorganic methods.
                                    ``(II) Requirements.--The 
                                review shall--
                                            ``(aa) to the 
                                        maximum extent 
                                        practicable, be 
                                        designed to allow the 
                                        Corporation to 
                                        determine whether 
                                        significant, 
                                        consistent, or systemic 
                                        variations in loss 
                                        history exist between 
                                        organic and nonorganic 
                                        production;
                                            ``(bb) include the 
                                        widest available range 
                                        of data collected by 
                                        the Secretary and other 
                                        outside sources of 
                                        information; and
                                            ``(cc) not be 
                                        limited to loss history 
                                        under existing crop 
                                        insurance policies.
                            ``(ii) Effect on premium 
                        surcharge.--Unless the review under 
                        this subparagraph documents the 
                        existence of significant, consistent, 
                        and systemic variations in loss history 
                        between organic and nonorganic crops, 
                        either collectively or on an individual 
                        crop basis, the Corporation shall 
                        eliminate or reduce the premium 
                        surcharge that the Corporation charges 
                        for coverage for organic crops, as 
                        determined in accordance with the 
                        results.
                            ``(iii) Annual updates.--Beginning 
                        with the 2009 crop year, the review 
                        under this subparagraph shall be 
                        updated on an annual basis as data is 
                        accumulated by the Secretary and other 
                        sources, so that the Corporation may 
                        make determinations regarding 
                        adjustments to the surcharge in a 
                        timely manner as quickly as evolving 
                        practices and data trends allow.
                    ``(C) Additional price election.--
                            ``(i) In general.--A contract under 
                        subparagraph (A) shall include the 
                        development of a procedure, including 
                        any associated changes in policy terms 
                        or materials required for 
                        implementation of the procedure, to 
                        offer producers of organic crops an 
                        additional price election that reflects 
                        actual prices received by organic 
                        producers for crops from the field 
                        (including appropriate retail and 
                        wholesale prices), as established using 
                        data collected and maintained by the 
                        Secretary or from other sources.
                            ``(ii) Timing.--The development of 
                        the procedure shall be completed in a 
                        timely manner to allow the Corporation 
                        to begin offering the additional price 
                        election for organic crops with 
                        sufficient data for the 2010 crop year.
                            ``(iii) Expansion.--The procedure 
                        shall be expanded as quickly as 
                        practicable as additional data on 
                        prices of organic crops collected by 
                        the Secretary and other sources of 
                        information becomes available, with a 
                        goal of applying this procedure to all 
                        organic crops not later than the fifth 
                        full crop year that begins after the 
                        date of enactment of Food, 
                        Conservation, and Energy Act of 2008.
                    ``(D) Reporting requirements.--
                            ``(i) In general.--The Corporation 
                        shall submit to the Committee on 
                        Agriculture of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate an annual report on progress 
                        made in developing and improving 
                        Federal crop insurance for organic 
                        crops, including--
                                    ``(I) the numbers and 
                                varieties of organic crops 
                                insured;
                                    ``(II) the development of 
                                new insurance approaches; and
                                    ``(III) the progress of 
                                implementing the initiatives 
                                required under this paragraph, 
                                including the rate at which 
                                additional price elections are 
                                adopted for organic crops.
                            ``(ii) Recommendations.--The report 
                        shall include such recommendations as 
                        the Corporation considers appropriate 
                        to improve Federal crop insurance 
                        coverage for organic crops.
            ``(11) Energy crop insurance policy.--
                    ``(A) Definition of dedicated energy 
                crop.--In this subsection, the term `dedicated 
                energy crop' means an annual or perennial crop 
                that--
                            ``(i) is grown expressly for the 
                        purpose of producing a feedstock for 
                        renewable biofuel, renewable 
                        electricity, or biobased products; and
                            ``(ii) is not typically used for 
                        food, feed, or fiber.
                    ``(B) Authority.--The Corporation shall 
                offer to enter into 1 or more contracts with 
                qualified entities to carry out research and 
                development regarding a policy to insure 
                dedicated energy crops.
                    ``(C) Research and development.--Research 
                and development described in subparagraph (B) 
                shall evaluate the effectiveness of risk 
                management tools for the production of 
                dedicated energy crops, including policies and 
                plans of insurance that--
                            ``(i) are based on market prices 
                        and yields;
                            ``(ii) to the extent that 
                        insufficient data exist to develop a 
                        policy based on market prices and 
                        yields, evaluate the policies and plans 
                        of insurance based on the use of 
                        weather or rainfall indices to protect 
                        the interests of crop producers; and
                            ``(iii) provide protection for 
                        production or revenue losses, or both.
            ``(12) Aquaculture insurance policy.--
                    ``(A) Definition of aquaculture.--In this 
                subsection:
                            ``(i) In general.--The term 
                        `aquaculture' means the propagation and 
                        rearing of aquatic species in 
                        controlled or selected environments, 
                        including shellfish cultivation on 
                        grants or leased bottom and ocean 
                        ranching.
                            ``(ii) Exclusion.--The term 
                        `aquaculture' does not include the 
                        private ocean ranching of Pacific 
                        salmon for profit in any State in which 
                        private ocean ranching of Pacific 
                        salmon is prohibited by any law 
                        (including regulations).
                    ``(B) Authority.--
                            ``(i) In general.--As soon as 
                        practicable after the date of enactment 
                        of the Food, Conservation, and Energy 
                        Act of 2008, the Corporation shall 
                        offer to enter into 3 or more contracts 
                        with qualified entities to carry out 
                        research and development regarding a 
                        policy to insure the production of 
                        aquacultural species in aquaculture 
                        operations.
                            ``(ii) Bivalve species.--At least 1 
                        of the contracts described in clause 
                        (i) shall address insurance of bivalve 
                        species, including--
                                    ``(I) American oysters 
                                (crassostrea virginica);
                                    ``(II) hard clams 
                                (mercenaria mercenaria);
                                    ``(III) Pacific oysters 
                                (crassostrea gigas);
                                    ``(IV) Manila clams (tapes 
                                phillipinnarium); or
                                    ``(V) blue mussels (mytilus 
                                edulis).
                            ``(iii) Freshwater species.--At 
                        least 1 of the contracts described in 
                        clause (i) shall address insurance of 
                        freshwater species, including--
                                    ``(I) catfish 
                                (icataluridae);
                                    ``(II) rainbow trout 
                                (oncorhynchus mykiss);
                                    ``(III) largemouth bass 
                                (micropterus salmoides);
                                    ``(IV) striped bass (morone 
                                saxatilis);
                                    ``(V) bream (abramis 
                                brama);
                                    ``(VI) shrimp (penaeus); or
                                    ``(VII) tilapia 
                                (oreochromis niloticus).
                            ``(iv) Saltwater species.--At least 
                        1 of the contracts described in clause 
                        (i) shall address insurance of 
                        saltwater species, including--
                                    ``(I) Atlantic salmon 
                                (salmo salar); or
                                    ``(II) shrimp (penaeus).
                    ``(C) Research and development.--Research 
                and development described in subparagraph (B) 
                shall evaluate the effectiveness of policies 
                and plans of insurance for the production of 
                aquacultural species in aquaculture operations, 
                including policies and plans of insurance 
                that--
                            ``(i) are based on market prices 
                        and yields;
                            ``(ii) to the extent that 
                        insufficient data exist to develop a 
                        policy based on market prices and 
                        yields, evaluate how best to 
                        incorporate insuring of production of 
                        aquacultural species in aquaculture 
                        operations into existing policies 
                        covering adjusted gross revenue; and
                            ``(iii) provide protection for 
                        production or revenue losses, or both.
            ``(13) Poultry insurance policy.--
                    ``(A) Definition of poultry.--In this 
                paragraph, the term `poultry' has the meaning 
                given the term in section 2(a) of the Packers 
                and Stockyards Act, 1921 (7 U.S.C. 182(a)).
                    ``(B) Authority.--The Corporation shall 
                offer to enter into 1 or more contracts with 
                qualified entities to carry out research and 
                development regarding a policy to insure 
                commercial poultry production.
                    ``(C) Research and development.--Research 
                and development described in subparagraph (B) 
                shall evaluate the effectiveness of risk 
                management tools for the production of poultry, 
                including policies and plans of insurance that 
                provide protection for production or revenue 
                losses, or both, while the poultry is in 
                production.
            ``(14) Apiary policies.--The Corporation shall 
        offer to enter into a contract with a qualified entity 
        to carry out research and development regarding 
        insurance policies that cover loss of bees.
            ``(15) Adjusted gross revenue policies for 
        beginning producers.--The Corporation shall offer to 
        enter into a contract with a qualified entity to carry 
        out research and development into needed modifications 
        of adjusted gross revenue insurance policies, 
        consistent with principles of actuarial sufficiency, to 
        permit coverage for beginning producers with no 
        previous production history, including permitting those 
        producers to have production and premium rates based on 
        information with similar farming operations.
            ``(16) Skiprow cropping practices.--
                    ``(A) In general.--The Corporation shall 
                offer to enter into a contract with a qualified 
                entity to carry out research into needed 
                modifications of policies to insure corn and 
                sorghum produced in the Central Great Plains 
                (as determined by the Agricultural Research 
                Service) through use of skiprow cropping 
                practices.
                    ``(B) Research.--Research described in 
                subparagraph (A) shall--
                            ``(i) review existing research on 
                        skiprow cropping practices and actual 
                        production history of producers using 
                        skiprow cropping practices; and
                            ``(ii) evaluate the effectiveness 
                        of risk management tools for producers 
                        using skiprow cropping practices, 
                        including--
                                    ``(I) the appropriateness 
                                of rules in existence as of the 
                                date of enactment of this 
                                paragraph relating to the 
                                determination of acreage 
                                planted in skiprow patterns; 
                                and
                                    ``(II) whether policies for 
                                crops produced through skiprow 
                                cropping practices reflect 
                                actual production 
                                capabilities.''.

SEC. 12024. FUNDING FROM INSURANCE FUND.

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

SEC. 12025. PILOT PROGRAMS.

    (a) In General.--Section 523 of the Federal Crop Insurance 
Act (7 U.S.C. 1523) is amended by adding at the end the 
following:
    ``(f) Camelina Pilot Program.--
            ``(1) In general.--The Corporation shall establish 
        a pilot program under which producers or processors of 
        camelina may propose for approval by the Board policies 
        or plans of insurance for camelina, in accordance with 
        section 508(h).
            ``(2) Determination by board.--The Board shall 
        approve a policy or plan of insurance proposed under 
        paragraph (1) if, as determined by the Board, the 
        policy or plan of insurance--
                    ``(A) protects the interests of producers;
                    ``(B) is actuarially sound; and
                    ``(C) meets the requirements of this title.
            ``(3) Timeframe.--The Corporation shall commence 
        the camelina insurance pilot program as soon as 
        practicable after the date of enactment of this 
        subsection.
    ``(g) Sesame Insurance Pilot Program.--
            ``(1) In general.--In addition to any other 
        authority of the Corporation, the Corporation shall 
        establish and carry out a pilot program under which a 
        producer of nondehiscent sesame under contract may 
        elect to obtain multiperil crop insurance, as 
        determined by the Corporation.
            ``(2) Terms and conditions.--The multiperil crop 
        insurance offered under the sesame insurance pilot 
        program shall--
                    ``(A) be offered through reinsurance 
                arrangements with private insurance companies;
                    ``(B) be actuarially sound; and
                    ``(C) require the payment of premiums and 
                administrative fees by a producer obtaining the 
                insurance.
            ``(3) Location.--The sesame insurance pilot program 
        shall be carried out only in the State of Texas.
            ``(4) Duration.--The Corporation shall commence the 
        sesame insurance pilot program as soon as practicable 
        after the date of the enactment of this subsection.
    ``(h) Grass Seed Insurance Pilot Program.--
            ``(1) In general.--In addition to any other 
        authority of the Corporation, the Corporation shall 
        establish and carry out a grass seed pilot program 
        under which a producer of Kentucky bluegrass or 
        perennial rye grass under contract may elect to obtain 
        multiperil crop insurance, as determined by the 
        Corporation.
            ``(2) Terms and conditions.--The multiperil crop 
        insurance offered under the grass seed insurance pilot 
        program shall--
                    ``(A) be offered through reinsurance 
                arrangements with private insurance companies;
                    ``(B) be actuarially sound; and
                    ``(C) require the payment of premiums and 
                administrative fees by a producer obtaining the 
                insurance.
            ``(3) Location.--The grass seed insurance pilot 
        program shall be carried out only in each of the States 
        of Minnesota and North Dakota.
            ``(4) Duration.--The Corporation shall commence the 
        grass seed insurance pilot program as soon as 
        practicable after the date of the enactment of this 
        subsection.''.
    (b) Conforming Amendment.--Section 196(a)(2)(B) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7333(a)(2)(B)) is amended by adding ``camelina,'' after 
``sea oats,''.

SEC. 12026. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS OR 
                    RANCHERS.

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

SEC. 12027. COVERAGE FOR AQUACULTURE UNDER NONINSURED CROP ASSISTANCE 
                    PROGRAM.

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

SEC. 12028. INCREASE IN SERVICE FEES FOR NONINSURED CROP ASSISTANCE 
                    PROGRAM.

    Section 196(k)(1) of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is amended--
            (1) in subparagraph (A), by striking ``$100'' and 
        inserting ``$250''; and
            (2) in subparagraph (B)--
                    (A) by striking ``$300'' and inserting 
                ``$750''; and
                    (B) by striking ``$900'' and inserting 
                ``$1,875''.

SEC. 12029. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.

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

SEC. 12030. DECLINING YIELD REPORT.

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

SEC. 12031. DEFINITION OF BASIC UNIT.

    The Secretary shall not modify the definition of ``basic 
unit'' in accordance with the proposed regulations entitled 
``Common Crop Insurance Regulations'' (72 Fed. Reg. 28895; 
relating to common crop insurance regulations) or any successor 
regulation.

SEC. 12032. CROP INSURANCE MEDIATION.

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

SEC. 12033. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    (a) In General.--The Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) is amended by adding at the end the following:

      ``Subtitle B--Supplemental Agricultural Disaster Assistance

``SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    ``(a) Definitions.--In this section:
            ``(1) Actual production history yield.--The term 
        `actual production history yield' means the weighted 
        average of the actual production history for each 
        insurable commodity or noninsurable commodity, as 
        calculated under subtitle A or the noninsured crop 
        disaster assistance program, respectively.
            ``(2) Adjusted actual production history yield.--
        The term `adjusted actual production history yield' 
        means--
                    ``(A) in the case of an eligible producer 
                on a farm that has at least 4 years of actual 
                production history yields for an insurable 
                commodity that are established other than 
                pursuant to section 508(g)(4)(B), the actual 
                production history for the eligible producer 
                without regard to any yields established under 
                that section;
                    ``(B) in the case of an eligible producer 
                on a farm that has less than 4 years of actual 
                production history yields for an insurable 
                commodity, of which 1 or more were established 
                pursuant to section 508(g)(4)(B), the actual 
                production history for the eligible producer as 
                calculated without including the lowest of the 
                yields established pursuant to section 
                508(g)(4)(B); and
                    ``(C) in all other cases, the actual 
                production history of the eligible producer on 
                a farm.
            ``(3) Adjusted noninsured crop disaster assistance 
        program yield.--The term `adjusted noninsured crop 
        disaster assistance program yield' means--
                    ``(A) in the case of an eligible producer 
                on a farm that has at least 4 years of 
                production history under the noninsured crop 
                disaster assistance program that are not 
                replacement yields, the noninsured crop 
                disaster assistance program yield without 
                regard to any replacement yields;
                    ``(B) in the case of an eligible producer 
                on a farm that less than 4 years of production 
                history under the noninsured crop disaster 
                assistance program that are not replacement 
                yields, the noninsured crop disaster assistance 
                program yield as calculated without including 
                the lowest of the replacement yields; and
                    ``(C) in all other cases, the production 
                history of the eligible producer on the farm 
                under the noninsured crop disaster assistance 
                program.
            ``(4) Counter-cyclical program payment yield.--The 
        term `counter-cyclical program payment yield' means the 
        weighted average payment yield established under 
        section 1102 of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 7912), section 1102 of the Food, 
        Conservation, and Energy Act of 2008, or a successor 
        section.
            ``(5) Disaster county.--
                    ``(A) In general.--The term `disaster 
                county' means a county included in the 
                geographic area covered by a qualifying natural 
                disaster declaration.
                    ``(B) Inclusion.--The term `disaster 
                county' includes--
                            ``(i) a county contiguous to a 
                        county described in subparagraph (A); 
                        and
                            ``(ii) any farm in which, during a 
                        calendar year, the total loss of 
                        production of the farm relating to 
                        weather is greater than 50 percent of 
                        the normal production of the farm, as 
                        determined by the Secretary.
            ``(6) Eligible producer on a farm.--
                    ``(A) In general.--The term `eligible 
                producer on a farm' means an individual or 
                entity described in subparagraph (B) that, as 
                determined by the Secretary, assumes the 
                production and market risks associated with the 
                agricultural production of crops or livestock.
                    ``(B) Description.--An individual or entity 
                referred to in subparagraph (A) is--
                            ``(i) a citizen of the United 
                        States;
                            ``(ii) a resident alien;
                            ``(iii) a partnership of citizens 
                        of the United States; or
                            ``(iv) a corporation, limited 
                        liability corporation, or other farm 
                        organizational structure organized 
                        under State law.
            ``(7) Farm.--
                    ``(A) In general.--The term `farm' means, 
                in relation to an eligible producer on a farm, 
                the sum of all crop acreage in all counties 
                that is planted or intended to be planted for 
                harvest by the eligible producer.
                    ``(B) Aquaculture.--In the case of 
                aquaculture, the term `farm' means, in relation 
                to an eligible producer on a farm, all fish 
                being produced in all counties that are 
                intended to be harvested for sale by the 
                eligible producer.
                    ``(C) Honey.--In the case of honey, the 
                term `farm' means, in relation to an eligible 
                producer on a farm, all bees and beehives in 
                all counties that are intended to be harvested 
                for a honey crop by the eligible producer.
            ``(8) Farm-raised fish.--The term `farm-raised 
        fish' means any aquatic species that is propagated and 
        reared in a controlled environment.
            ``(9) Insurable commodity.--The term `insurable 
        commodity' means an agricultural commodity (excluding 
        livestock) for which the producer on a farm is eligible 
        to obtain a policy or plan of insurance under subtitle 
        A.
            ``(10) Livestock.--The term `livestock' includes--
                    ``(A) cattle (including dairy cattle);
                    ``(B) bison;
                    ``(C) poultry;
                    ``(D) sheep;
                    ``(E) swine;
                    ``(F) horses; and
                    ``(G) other livestock, as determined by the 
                Secretary.
            ``(11) Noninsurable commodity.--The term 
        `noninsurable commodity' means a crop for which the 
        eligible producers on a farm are eligible to obtain 
        assistance under the noninsured crop assistance 
        program.
            ``(12) Noninsured crop assistance program.--The 
        term `noninsured crop assistance program' means the 
        program carried out under section 196 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7333).
            ``(13) Qualifying natural disaster declaration.--
        The term `qualifying natural disaster declaration' 
        means a natural disaster declared by the Secretary for 
        production losses under section 321(a) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1961(a)).
            ``(14) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.
            ``(15) Socially disadvantaged farmer or rancher.--
        The term `socially disadvantaged farmer or rancher' has 
        the meaning given the term in section 2501(e) of the 
        Food, Agriculture, Conservation, and Trade Act of 1990 
        (7 U.S.C. 2279(e)).
            ``(16) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of 
                the United States.
            ``(17) Trust fund.--The term `Trust Fund' means the 
        Agricultural Disaster Relief Trust Fund established 
        under section 902 of the Trade Act of 1974.
            ``(18) United states.--The term `United States' 
        when used in a geographical sense, means all of the 
        States.
    ``(b) Supplemental Revenue Assistance Payments.--
            ``(1) In general.--The Secretary shall use such 
        sums as are necessary from the Trust Fund to make crop 
        disaster assistance payments to eligible producers on 
        farms in disaster counties that have incurred crop 
        production losses or crop quality losses, or both, 
        during the crop year.
            ``(2) Amount.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall provide crop disaster 
                assistance payments under this section to an 
                eligible producer on a farm in an amount equal 
                to 60 percent of the difference between--
                            ``(i) the disaster assistance 
                        program guarantee, as described in 
                        paragraph (3); and
                            ``(ii) the total farm revenue for a 
                        farm, as described in paragraph (4).
                    ``(B) Limitation.--The disaster assistance 
                program guarantee for a crop used to calculate 
                the payments for a farm under subparagraph 
                (A)(i) may not be greater than 90 percent of 
                the sum of the expected revenue, as described 
                in paragraph (5) for each of the crops on a 
                farm, as determined by the Secretary.
            ``(3) Supplemental revenue assistance program 
        guarantee.--
                    ``(A) In general.--Except as otherwise 
                provided in this paragraph, the supplemental 
                assistance program guarantee shall be the sum 
                obtained by adding--
                            ``(i) for each insurable commodity 
                        on the farm, 115 percent of the product 
                        obtained by multiplying--
                                    ``(I) a payment rate for 
                                the commodity that is equal to 
                                the price election for the 
                                commodity elected by the 
                                eligible producer;
                                    ``(II) the payment acres 
                                for the commodity that is equal 
                                to the number of acres planted, 
                                or prevented from being 
                                planted, to the commodity;
                                    ``(III) the payment yield 
                                for the commodity that is equal 
                                to the percentage of the crop 
                                insurance yield elected by the 
                                producer of the higher of--
                                            ``(aa) the adjusted 
                                        actual production 
                                        history yield; or
                                            ``(bb) the counter-
                                        cyclical program 
                                        payment yield for each 
                                        crop; and
                            ``(ii) for each noninsurable 
                        commodity on a farm, 120 percent of the 
                        product obtained by multiplying--
                                    ``(I) a payment rate for 
                                the commodity that is equal to 
                                100 percent of the noninsured 
                                crop assistance program 
                                established price for the 
                                commodity;
                                    ``(II) the payment acres 
                                for the commodity that is equal 
                                to the number of acres planted, 
                                or prevented from being 
                                planted, to the commodity; and
                                    ``(III) the payment yield 
                                for the commodity that is equal 
                                to the higher of--
                                            ``(aa) the adjusted 
                                        noninsured crop 
                                        assistance program 
                                        yield guarantee; or
                                            ``(bb) the counter-
                                        cyclical program 
                                        payment yield for each 
                                        crop.
                    ``(B) Adjustment insurance guarantee.--
                Notwithstanding subparagraph (A), in the case 
                of an insurable commodity for which a plan of 
                insurance provides for an adjustment in the 
                guarantee, such as in the case of prevented 
                planting, the adjusted insurance guarantee 
                shall be the basis for determining the disaster 
                assistance program guarantee for the insurable 
                commodity.
                    ``(C) Adjusted assistance level.--
                Notwithstanding subparagraph (A), in the case 
                of a noninsurable commodity for which the 
                noninsured crop assistance program provides for 
                an adjustment in the level of assistance, such 
                as in the case of unharvested crops, the 
                adjusted assistance level shall be the basis 
                for determining the disaster assistance program 
                guarantee for the noninsurable commodity.
                    ``(D) Equitable treatment for non-yield 
                based policies.--The Secretary shall establish 
                equitable treatment for non-yield based 
                policies and plans of insurance, such as the 
                Adjusted Gross Revenue Lite insurance program.
            ``(4) Farm revenue.--
                    ``(A) In general.--For purposes of this 
                subsection, the total farm revenue for a farm, 
                shall equal the sum obtained by adding--
                            ``(i) the estimated actual value 
                        for each crop produced on a farm by 
                        using the product obtained by 
                        multiplying--
                                    ``(I) the actual crop 
                                acreage harvested by an 
                                eligible producer on a farm;
                                    ``(II) the estimated actual 
                                yield of the crop production; 
                                and
                                    ``(III) subject to 
                                subparagraphs (B) and (C), to 
                                the extent practicable, the 
                                national average market price 
                                received for the marketing 
                                year, as determined by the 
                                Secretary;
                            ``(ii) 15 percent of amount of any 
                        direct payments made to the producer 
                        under sections 1103 and 1303 of the 
                        Food, Conservation, and Energy Act of 
                        2008 or successor sections;
                            ``(iii) the total amount of any 
                        counter-cyclical payments made to the 
                        producer under sections 1104 and 1304 
                        of the Food, Conservation, and Energy 
                        Act of 2008 or successor sections or of 
                        any average crop revenue election 
                        payments made to the producer under 
                        section 1105 of that Act;
                            ``(iv) the total amount of any loan 
                        deficiency payments, marketing loan 
                        gains, and marketing certificate gains 
                        made to the producer under subtitles B 
                        and C of the Food, Conservation, and 
                        Energy Act of 2008 or successor 
                        subtitles;
                            ``(v) the amount of payments for 
                        prevented planting on a farm;
                            ``(vi) the amount of crop insurance 
                        indemnities received by an eligible 
                        producer on a farm for each crop on a 
                        farm;
                            ``(vii) the amount of payments an 
                        eligible producer on a farm received 
                        under the noninsured crop assistance 
                        program for each crop on a farm; and
                            ``(viii) the value of any other 
                        natural disaster assistance payments 
                        provided by the Federal Government to 
                        an eligible producer on a farm for each 
                        crop on a farm for the same loss for 
                        which the eligible producer is seeking 
                        assistance.
                    ``(B) Adjustment.--The Secretary shall 
                adjust the average market price received by the 
                eligible producer on a farm--
                            ``(i) to reflect the average 
                        quality discounts applied to the local 
                        or regional market price of a crop or 
                        mechanically harvested forage due to a 
                        reduction in the intrinsic 
                        characteristics of the production 
                        resulting from adverse weather, as 
                        determined annually by the State office 
                        of the Farm Service Agency; and
                            ``(ii) to account for a crop the 
                        value of which is reduced due to excess 
                        moisture resulting from a disaster-
                        related condition.
                    ``(C) Maximum amount for certain crops.--
                With respect to a crop for which an eligible 
                producer on a farm receives assistance under 
                the noninsured crop assistance program, the 
                national average market price received during 
                the marketing year shall be an amount not more 
                than 100 percent of the price of the crop 
                established under the noninsured crop 
                assistance program.
            ``(5) Expected revenue.--The expected revenue for 
        each crop on a farm shall equal the sum obtained by 
        adding--
                    ``(A) the product obtained by multiplying--
                            ``(i) the greatest of--
                                    ``(I) the adjusted actual 
                                production history yield of the 
                                eligible producer on a farm; 
                                and
                                    ``(II) the counter-cyclical 
                                program payment yield;
                            ``(ii) the acreage planted or 
                        prevented from being planted for each 
                        crop; and
                            ``(iii) 100 percent of the 
                        insurance price guarantee; and
                    ``(B) the product obtained by multiplying--
                            ``(i) 100 percent of the adjusted 
                        noninsured crop assistance program 
                        yield; and
                            ``(ii) 100 percent of the 
                        noninsured crop assistance program 
                        price for each of the crops on a farm.
    ``(c) Livestock Indemnity Payments.--
            ``(1) Payments.--The Secretary shall use such sums 
        as are necessary from the Trust Fund to make livestock 
        indemnity payments to eligible producers on farms that 
        have incurred livestock death losses in excess of the 
        normal mortality due to adverse weather, as determined 
        by the Secretary, during the calendar year, including 
        losses due to hurricanes, floods, blizzards, disease, 
        wildfires, extreme heat, and extreme cold.
            ``(2) Payment rates.--Indemnity payments to an 
        eligible producer on a farm under paragraph (1) shall 
        be made at a rate of 75 percent of the market value of 
        the applicable livestock on the day before the date of 
        death of the livestock, as determined by the Secretary.
    ``(d) Livestock Forage Disaster Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered livestock.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), the term 
                        `covered livestock' means livestock of 
                        an eligible livestock producer that, 
                        during the 60 days prior to the 
                        beginning date of a qualifying drought 
                        or fire condition, as determined by the 
                        Secretary, the eligible livestock 
                        producer--
                                    ``(I) owned;
                                    ``(II) leased;
                                    ``(III) purchased;
                                    ``(IV) entered into a 
                                contract to purchase;
                                    ``(V) is a contract grower; 
                                or
                                    ``(VI) sold or otherwise 
                                disposed of due to qualifying 
                                drought conditions during--
                                            ``(aa) the current 
                                        production year; or
                                            ``(bb) subject to 
                                        paragraph (3)(B)(ii), 1 
                                        or both of the 2 
                                        production years 
                                        immediately preceding 
                                        the current production 
                                        year.
                            ``(ii) Exclusion.--The term 
                        `covered livestock' does not include 
                        livestock that were or would have been 
                        in a feedlot, on the beginning date of 
                        the qualifying drought or fire 
                        condition, as a part of the normal 
                        business operation of the eligible 
                        livestock producer, as determined by 
                        the Secretary.
                    ``(B) Drought monitor.--The term `drought 
                monitor' means a system for classifying drought 
                severity according to a range of abnormally dry 
                to exceptional drought, as defined by the 
                Secretary.
                    ``(C) Eligible livestock producer.--
                            ``(i) In general.--The term 
                        `eligible livestock producer' means an 
                        eligible producer on a farm that--
                                    ``(I) is an owner, cash or 
                                share lessee, or contract 
                                grower of covered livestock 
                                that provides the pastureland 
                                or grazing land, including 
                                cash-leased pastureland or 
                                grazing land, for the 
                                livestock;
                                    ``(II) provides the 
                                pastureland or grazing land for 
                                covered livestock, including 
                                cash-leased pastureland or 
                                grazing land that is physically 
                                located in a county affected by 
                                drought;
                                    ``(III) certifies grazing 
                                loss; and
                                    ``(IV) meets all other 
                                eligibility requirements 
                                established under this 
                                subsection.
                            ``(ii) Exclusion.--The term 
                        `eligible livestock producer' does not 
                        include an owner, cash or share lessee, 
                        or contract grower of livestock that 
                        rents or leases pastureland or grazing 
                        land owned by another person on a rate-
                        of-gain basis.
                    ``(D) Normal carrying capacity.--The term 
                `normal carrying capacity', with respect to 
                each type of grazing land or pastureland in a 
                county, means the normal carrying capacity, as 
                determined under paragraph (3)(D)(i), that 
                would be expected from the grazing land or 
                pastureland for livestock during the normal 
                grazing period, in the absence of a drought or 
                fire that diminishes the production of the 
                grazing land or pastureland.
                    ``(E) Normal grazing period.--The term 
                `normal grazing period', with respect to a 
                county, means the normal grazing period during 
                the calendar year for the county, as determined 
                under paragraph (3)(D)(i).
            ``(2) Program.--The Secretary shall use such sums 
        as are necessary from the Trust Fund to provide 
        compensation for losses to eligible livestock producers 
        due to grazing losses for covered livestock due to--
                    ``(A) a drought condition, as described in 
                paragraph (3); or
                    ``(B) fire, as described in paragraph (4).
            ``(3) Assistance for losses due to drought 
        conditions.--
                    ``(A) Eligible losses.--
                            ``(i) In general.--An eligible 
                        livestock producer may receive 
                        assistance under this subsection only 
                        for grazing losses for covered 
                        livestock that occur on land that--
                                    ``(I) is native or improved 
                                pastureland with permanent 
                                vegetative cover; or
                                    ``(II) is planted to a crop 
                                planted specifically for the 
                                purpose of providing grazing 
                                for covered livestock.
                            ``(ii) Exclusions.--An eligible 
                        livestock producer may not receive 
                        assistance under this subsection for 
                        grazing losses that occur on land used 
                        for haying or grazing under the 
                        conservation reserve program 
                        established under subchapter B of 
                        chapter 1 of subtitle D of title XII of 
                        the Food Security Act of 1985 (16 
                        U.S.C. 3831 et seq.).
                    ``(B) Monthly payment rate.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), the payment 
                        rate for assistance under this 
                        paragraph for 1 month shall, in the 
                        case of drought, be equal to 60 percent 
                        of the lesser of--
                                    ``(I) the monthly feed cost 
                                for all covered livestock owned 
                                or leased by the eligible 
                                livestock producer, as 
                                determined under subparagraph 
                                (C); or
                                    ``(II) the monthly feed 
                                cost calculated by using the 
                                normal carrying capacity of the 
                                eligible grazing land of the 
                                eligible livestock producer.
                            ``(ii) Partial compensation.--In 
                        the case of an eligible livestock 
                        producer that sold or otherwise 
                        disposed of covered livestock due to 
                        drought conditions in 1 or both of the 
                        2 production years immediately 
                        preceding the current production year, 
                        as determined by the Secretary, the 
                        payment rate shall be 80 percent of the 
                        payment rate otherwise calculated in 
                        accordance with clause (i).
                    ``(C) Monthly feed cost.--
                            ``(i) In general.--The monthly feed 
                        cost shall equal the product obtained 
                        by multiplying--
                                    ``(I) 30 days;
                                    ``(II) a payment quantity 
                                that is equal to the feed grain 
                                equivalent, as determined under 
                                clause (ii); and
                                    ``(III) a payment rate that 
                                is equal to the corn price per 
                                pound, as determined under 
                                clause (iii).
                            ``(ii) Feed grain equivalent.--For 
                        purposes of clause (i)(I), the feed 
                        grain equivalent shall equal--
                                    ``(I) in the case of an 
                                adult beef cow, 15.7 pounds of 
                                corn per day; or
                                    ``(II) in the case of any 
                                other type of weight of 
                                livestock, an amount determined 
                                by the Secretary that 
                                represents the average number 
                                of pounds of corn per day 
                                necessary to feed the 
                                livestock.
                            ``(iii) Corn price per pound.--For 
                        purposes of clause (i)(II), the corn 
                        price per pound shall equal the 
                        quotient obtained by dividing--
                                    ``(I) the higher of--
                                            ``(aa) the national 
                                        average corn price per 
                                        bushel for the 12-month 
                                        period immediately 
                                        preceding March 1 of 
                                        the year for which the 
                                        disaster assistance is 
                                        calculated; or
                                            ``(bb) the national 
                                        average corn price per 
                                        bushel for the 24-month 
                                        period immediately 
                                        preceding that March 1; 
                                        by
                                    ``(II) 56.
                    ``(D) Normal grazing period and drought 
                monitor intensity.--
                            ``(i) FSA county committee 
                        determinations.--
                                    ``(I) In general.--The 
                                Secretary shall determine the 
                                normal carrying capacity and 
                                normal grazing period for each 
                                type of grazing land or 
                                pastureland in the county 
                                served by the applicable 
                                committee.
                                    ``(II) Changes.--No change 
                                to the normal carrying capacity 
                                or normal grazing period 
                                established for a county under 
                                subclause (I) shall be made 
                                unless the change is requested 
                                by the appropriate State and 
                                county Farm Service Agency 
                                committees.
                            ``(ii) Drought intensity.--
                                    ``(I) D2.--An eligible 
                                livestock producer that owns or 
                                leases grazing land or 
                                pastureland that is physically 
                                located in a county that is 
                                rated by the U.S. Drought 
                                Monitor as having a D2 (severe 
                                drought) intensity in any area 
                                of the county for at least 8 
                                consecutive weeks during the 
                                normal grazing period for the 
                                county, as determined by the 
                                Secretary, shall be eligible to 
                                receive assistance under this 
                                paragraph in an amount equal to 
                                1 monthly payment using the 
                                monthly payment rate determined 
                                under subparagraph (B).
                                    ``(II) D3.--An eligible 
                                livestock producer that owns or 
                                leases grazing land or 
                                pastureland that is physically 
                                located in a county that is 
                                rated by the U.S. Drought 
                                Monitor as having at least a D3 
                                (extreme drought) intensity in 
                                any area of the county at any 
                                time during the normal grazing 
                                period for the county, as 
                                determined by the Secretary, 
                                shall be eligible to receive 
                                assistance under this 
                                paragraph--
                                            ``(aa) in an amount 
                                        equal to 2 monthly 
                                        payments using the 
                                        monthly payment rate 
                                        determined under 
                                        subparagraph (B); or
                                            ``(bb) if the 
                                        county is rated as 
                                        having a D3 (extreme 
                                        drought) intensity in 
                                        any area of the county 
                                        for at least 4 weeks 
                                        during the normal 
                                        grazing period for the 
                                        county, or is rated as 
                                        having a D4 
                                        (exceptional drought) 
                                        intensity in any area 
                                        of the county at any 
                                        time during the normal 
                                        grazing period, in an 
                                        amount equal to 3 
                                        monthly payments using 
                                        the monthly payment 
                                        rate determined under 
                                        subparagraph (B).
            ``(4) Assistance for losses due to fire on public 
        managed land.--
                    ``(A) In general.--An eligible livestock 
                producer may receive assistance under this 
                paragraph only if--
                            ``(i) the grazing losses occur on 
                        rangeland that is managed by a Federal 
                        agency; and
                            ``(ii) the eligible livestock 
                        producer is prohibited by the Federal 
                        agency from grazing the normal 
                        permitted livestock on the managed 
                        rangeland due to a fire.
                    ``(B) Payment rate.--The payment rate for 
                assistance under this paragraph shall be equal 
                to 50 percent of the monthly feed cost for the 
                total number of livestock covered by the 
                Federal lease of the eligible livestock 
                producer, as determined under paragraph (3)(C).
                    ``(C) Payment duration.--
                            ``(i) In general.--Subject to 
                        clause (ii), an eligible livestock 
                        producer shall be eligible to receive 
                        assistance under this paragraph for the 
                        period--
                                    ``(I) beginning on the date 
                                on which the Federal agency 
                                excludes the eligible livestock 
                                producer from using the managed 
                                rangeland for grazing; and
                                    ``(II) ending on the last 
                                day of the Federal lease of the 
                                eligible livestock producer.
                            ``(ii) Limitation.--An eligible 
                        livestock producer may only receive 
                        assistance under this paragraph for 
                        losses that occur on not more than 180 
                        days per year.
            ``(5) Minimum risk management purchase 
        requirements.--
                    ``(A) In general.--Except as otherwise 
                provided in this paragraph, a livestock 
                producer shall only be eligible for assistance 
                under this subsection if the livestock 
                producer--
                            ``(i) obtained a policy or plan of 
                        insurance under subtitle A for the 
                        grazing land incurring the losses for 
                        which assistance is being requested; or
                            ``(ii) filed the required 
                        paperwork, and paid the administrative 
                        fee by the applicable State filing 
                        deadline, for the noninsured crop 
                        assistance program for the grazing land 
                        incurring the losses for which 
                        assistance is being requested.
                    ``(B) Waiver for socially disadvantaged, 
                limited resource, or beginning farmer or 
                rancher.--In the case of an eligible livestock 
                producer that is a socially disadvantaged 
                farmer or rancher or limited resource or 
                beginning farmer or rancher, as determined by 
                the Secretary, the Secretary may--
                            ``(i) waive subparagraph (A); and
                            ``(ii) provide disaster assistance 
                        under this section at a level that the 
                        Secretary determines to be equitable 
                        and appropriate.
                    ``(C) Waiver for 2008 calendar year.--In 
                the case of an eligible livestock producer that 
                suffered losses on grazing land during the 2008 
                calendar year but does not meet the 
                requirements of subparagraph (A), the Secretary 
                shall waive subparagraph (A) if the eligible 
                livestock producer pays a fee in an amount 
                equal to the applicable noninsured crop 
                assistance program fee or catastrophic risk 
                protection plan fee required under subparagraph 
                (A) to the Secretary not later than 90 days 
                after the date of enactment of this subtitle.
                    ``(D) Equitable relief.--
                            ``(i) In general.--The Secretary 
                        may provide equitable relief to an 
                        eligible livestock producer that is 
                        otherwise ineligible or unintentionally 
                        fails to meet the requirements of 
                        subparagraph (A) for the grazing land 
                        incurring the loss on a case-by-case 
                        basis, as determined by the Secretary.
                            ``(ii) 2008 calendar year.--In the 
                        case of an eligible livestock producer 
                        that suffered losses on grazing land 
                        during the 2008 calendar year, the 
                        Secretary shall take special 
                        consideration to provide equitable 
                        relief in cases in which the eligible 
                        livestock producer failed to meet the 
                        requirements of subparagraph (A) due to 
                        the enactment of this subtitle after 
                        the closing date of sales periods for 
                        crop insurance under subtitle A and the 
                        noninsured crop assistance program.
            ``(6) No duplicative payments.--
                    ``(A) In general.--An eligible livestock 
                producer may elect to receive assistance for 
                grazing or pasture feed losses due to drought 
                conditions under paragraph (3) or fire under 
                paragraph (4), but not both for the same loss, 
                as determined by the Secretary.
                    ``(B) Relationship to supplemental revenue 
                assistance.--An eligible livestock producer 
                that receives assistance under this subsection 
                may not also receive assistance for losses to 
                crops on the same land with the same intended 
                use under subsection (b).
    ``(e) Emergency Assistance for Livestock, Honey Bees, and 
Farm-Raised Fish.--
            ``(1) In general.--The Secretary shall use up to 
        $50,000,000 per year from the Trust Fund to provide 
        emergency relief to eligible producers of livestock, 
        honey bees, and farm-raised fish to aid in the 
        reduction of losses due to disease, adverse weather, or 
        other conditions, such as blizzards and wildfires, as 
        determined by the Secretary, that are not covered under 
        subsection (b), (c), or (d).
            ``(2) Use of funds.--Funds made available under 
        this subsection shall be used to reduce losses caused 
        by feed or water shortages, disease, or other factors 
        as determined by the Secretary.
            ``(3) Availability of funds.--Any funds made 
        available under this subsection shall remain available 
        until expended.
    ``(f) Tree Assistance Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible orchardist.--The term 
                `eligible orchardist' means a person that 
                produces annual crops from trees for commercial 
                purposes.
                    ``(B) Natural disaster.--The term `natural 
                disaster' means plant disease, insect 
                infestation, drought, fire, freeze, flood, 
                earthquake, lightning, or other occurrence, as 
                determined by the Secretary.
                    ``(C) Nursery tree grower.--The term 
                `nursery tree grower' means a person who 
                produces nursery, ornamental, fruit, nut, or 
                Christmas trees for commercial sale, as 
                determined by the Secretary.
                    ``(D) Tree.--The term `tree' includes a 
                tree, bush, and vine.
            ``(2) Eligibility.--
                    ``(A) Loss.--Subject to subparagraph (B), 
                the Secretary shall provide assistance--
                            ``(i) under paragraph (3) to 
                        eligible orchardists and nursery tree 
                        growers that planted trees for 
                        commercial purposes but lost the trees 
                        as a result of a natural disaster, as 
                        determined by the Secretary; and
                            ``(ii) under paragraph (3)(B) to 
                        eligible orchardists and nursery tree 
                        growers that have a production history 
                        for commercial purposes on planted or 
                        existing trees but lost the trees as a 
                        result of a natural disaster, as 
                        determined by the Secretary.
                    ``(B) Limitation.--An eligible orchardist 
                or nursery tree grower shall qualify for 
                assistance under subparagraph (A) only if the 
                tree mortality of the eligible orchardist or 
                nursery tree grower, as a result of damaging 
                weather or related condition, exceeds 15 
                percent (adjusted for normal mortality).
            ``(3) Assistance.--Subject to paragraph (4), the 
        assistance provided by the Secretary to eligible 
        orchardists and nursery tree growers for losses 
        described in paragraph (2) shall consist of--
                    ``(A)(i) reimbursement of 70 percent of the 
                cost of replanting trees lost due to a natural 
                disaster, as determined by the Secretary, in 
                excess of 15 percent mortality (adjusted for 
                normal mortality); or
                    ``(ii) at the option of the Secretary, 
                sufficient seedlings to reestablish a stand; 
                and
                    ``(B) reimbursement of 50 percent of the 
                cost of pruning, removal, and other costs 
                incurred by an eligible orchardist or nursery 
                tree grower to salvage existing trees or, in 
                the case of tree mortality, to prepare the land 
                to replant trees as a result of damage or tree 
                mortality due to a natural disaster, as 
                determined by the Secretary, in excess of 15 
                percent damage or mortality (adjusted for 
                normal tree damage and mortality).
            ``(4) Limitations on assistance.--
                    ``(A) Definitions of legal entity and 
                person.--In this paragraph, the terms `legal 
                entity' and `person' have the meaning given 
                those terms in section 1001(a) of the Food 
                Security Act of 1985 (7 U.S.C. 1308(a) (as 
                amended by section 1603 of the Food, 
                Conservation, and Energy Act of 2008).
                    ``(B) Amount.--The total amount of payments 
                received, directly or indirectly, by a person 
                or legal entity (excluding a joint venture or 
                general partnership) under this subsection may 
                not exceed $100,000 for any crop year, or an 
                equivalent value in tree seedlings.
                    ``(C) Acres.--The total quantity of acres 
                planted to trees or tree seedlings for which a 
                person or legal entity shall be entitled to 
                receive payments under this subsection may not 
                exceed 500 acres.
    ``(g) Risk Management Purchase Requirement.--
            ``(1) In general.--Except as otherwise provided in 
        this section, the eligible producers on a farm shall 
        not be eligible for assistance under this section 
        (other than subsection (c)) if the eligible producers 
        on the farm--
                    ``(A) in the case of each insurable 
                commodity of the eligible producers on the 
                farm, did not obtain a policy or plan of 
                insurance under subtitle A (excluding a crop 
                insurance pilot program under that subtitle); 
                or
                    ``(B) in the case of each noninsurable 
                commodity of the eligible producers on the 
                farm, did not file the required paperwork, and 
                pay the administrative fee by the applicable 
                State filing deadline, for the noninsured crop 
                assistance program.
            ``(2) Minimum.--To be considered to have obtained 
        insurance under paragraph (1)(A), an eligible producer 
        on a farm shall have obtained a policy or plan of 
        insurance with not less than 50 percent yield coverage 
        at 55 percent of the insurable price for each crop 
        grazed, planted, or intended to be planted for harvest 
        on a whole farm.
            ``(3) Waiver for socially disadvantaged, limited 
        resource, or beginning farmer or rancher.--With respect 
        to eligible producers that are socially disadvantaged 
        farmers or ranchers or limited resource or beginning 
        farmers or ranchers, as determined by the Secretary, 
        the Secretary may--
                    ``(A) waive paragraph (1); and
                    ``(B) provide disaster assistance under 
                this section at a level that the Secretary 
                determines to be equitable and appropriate.
            ``(4) Waiver for 2008 crop year.--In the case of an 
        eligible producer that suffered losses in an insurable 
        commodity or noninsurable commodity during the 2008 
        crop year but does not meet the requirements of 
        paragraph (1), the Secretary shall waive paragraph (1) 
        if the eligible producer pays a fee in an amount equal 
        to the applicable noninsured crop assistance program 
        fee or catastrophic risk protection plan fee required 
        under paragraph (1) to the Secretary not later than 90 
        days after the date of enactment of this subtitle.
            ``(5) Equitable relief.--
                    ``(A) In general.--The Secretary may 
                provide equitable relief to eligible producers 
                on a farm that are otherwise ineligible or 
                unintentionally fail to meet the requirements 
                of paragraph (1) for 1 or more crops on a farm 
                on a case-by-case basis, as determined by the 
                Secretary.
                    ``(B) 2008 crop year.--In the case of 
                eligible producers on a farm that suffered 
                losses in an insurable commodity or 
                noninsurable commodity during the 2008 crop 
                year, the Secretary shall take special 
                consideration to provide equitable relief in 
                cases in which the eligible producers failed to 
                meet the requirements of paragraph (1) due to 
                the enactment of this subtitle after the 
                closing date of sales periods for crop 
                insurance under subtitle A and the noninsured 
                crop assistance program.
    ``(h) Payment Limitations.--
            ``(1) Definitions of legal entity and person.--In 
        this subsection, the terms `legal entity' and `person' 
        have the meaning given those terms in section 1001(a) 
        of the Food Security Act of 1985 (7 U.S.C. 1308(a) (as 
        amended by section 1603 of the Food, Conservation, and 
        Energy Act of 2008).
            ``(2) Amount.--The total amount of disaster 
        assistance payments received, directly or indirectly, 
        by a person or legal entity (excluding a joint venture 
        or general partnership) under this section (excluding 
        payments received under subsection (f)) may not exceed 
        $100,000 for any crop year.
            ``(3) AGI limitation.--Section 1001D of the Food 
        Security Act of 1985 (7 U.S.C. 1308-3a) or any 
        successor provision shall apply with respect to 
        assistance provided under this section.
            ``(4) Direct attribution.--Subsections (e) and (f) 
        of section 1001 of the Food Security Act of 1985 (7 
        U.S.C. 1308) or any successor provisions relating to 
        direct attribution shall apply with respect to 
        assistance provided under this section.
    ``(i) Period of Effectiveness.--This section shall be 
effective only for losses that are incurred as the result of a 
disaster, adverse weather, or other environmental condition 
that occurs on or before September 30, 2011, as determined by 
the Secretary.
    ``(j) No Duplicative Payments.--In implementing any other 
program which makes disaster assistance payments (except for 
indemnities made under subtitle A and section 196 of the 
Federal Agriculture Improvement and Reform Act of 1996), the 
Secretary shall prevent duplicative payments with respect to 
the same loss for which a person receives a payment under 
subsections (b), (c), (d), (e), or (f).
    ``(k) Application.--
            ``(1) In general.--Subject to paragraph (2) and 
        notwithstanding any provision of subtitle A, subtitle A 
        shall not apply to this subtitle.
            ``(2) Cross references.--Paragraph (1) shall not 
        apply to a specific reference in this subtitle to a 
        provision of subtitle A.''.
    (b) Transition.--For purposes of the 2008 crop year, the 
Secretary shall carry out subsections (f)(4) and (h) of section 
531 of the Federal Crop Insurance Act (as added by subsection 
(a)) in accordance with the terms and conditions of sections 
1001 through 1001D of the Food Security Act of 1985 (16 U.S.C. 
1308 et seq.), as in effect on September 30, 2007.
    (c) Conforming Amendments.--
            (1) Section 501 of the Federal Crop Insurance Act 
        (7 U.S.C. 1501) is amended by striking the section 
        heading and enumerator and inserting the following:

                ``Subtitle A--Federal Crop Insurance Act

``SEC. 501. SHORT TITLE AND APPLICATION OF OTHER PROVISIONS.''.

            (2) Subtitle A of the Federal Crop Insurance Act 
        (as designated under paragraph (1)) is amended--
                    (A) by striking ``This title'' each place 
                it appears and inserting ``This subtitle''; and
                    (B) by striking ``this title'' each place 
                it appears and inserting ``this subtitle''.

SEC. 12034. FISHERIES DISASTER ASSISTANCE.

    Of the funds of the Commodity Credit Corporation, the 
Secretary of Agriculture shall transfer to the Secretary of 
Commerce $170,000,000 for fiscal year 2008 for the National 
Marine Fisheries Service to distribute to commercial and 
recreational members of the fishing communities affected by the 
salmon fishery failure in the States of California, Oregon, and 
Washington designated under section 312(a) of the Magnuson-
Stevens Fishery Conservation and Management Act (16 U.S.C. 
1861a(a)) on May 1, 2008, in accordance with that section.

            Subtitle B--Small Business Disaster Loan Program

SEC. 12051. SHORT TITLE.

    This subtitle may be cited as the ``Small Business Disaster 
Response and Loan Improvements Act of 2008''.

SEC. 12052. DEFINITIONS.

    In this subtitle--
            (1) the terms ``Administration'' and 
        ``Administrator'' mean the Small Business 
        Administration and the Administrator thereof, 
        respectively;
            (2) the term ``disaster area'' means an area 
        affected by a natural or other disaster, as determined 
        for purposes of paragraph (1) or (2) of section 7(b) of 
        the Small Business Act (15 U.S.C. 636(b)), during the 
        period of such declaration;
            (3) the term ``disaster loan program of the 
        Administration'' means assistance under section 7(b) of 
        the Small Business Act (15 U.S.C. 636(b)), as amended 
        by this Act;
            (4) the term ``disaster update period'' means the 
        period beginning on the date on which the President 
        declares a major disaster (including any major disaster 
        relating to which the Administrator declares 
        eligibility for additional disaster assistance under 
        paragraph (9) of section 7(b) of the Small Business Act 
        (15 U.S.C. 636(b)), as added by this Act) and ending on 
        the date on which such declaration terminates;
            (5) the term ``major disaster'' has the meaning 
        given that term in section 102 of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5122);
            (6) the term ``small business concern'' has the 
        meaning given that term under section 3 of the Small 
        Business Act (15 U.S.C. 632); and
            (7) the term ``State'' means any State of the 
        United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Northern Mariana 
        Islands, the Virgin Islands, Guam, American Samoa, and 
        any territory or possession of the United States.

                 PART I--DISASTER PLANNING AND RESPONSE

SEC. 12061. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.

    (a) In General.--Section 7(b)(2) of the Small Business Act 
(15 U.S.C. 636(b)(2)) is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by inserting after ``small business 
                concern'' the following: ``, private nonprofit 
                organization,''; and
                    (B) by inserting after ``the concern'' the 
                following: ``, the organization,''; and
            (2) in subparagraph (D) by inserting after ``small 
        business concerns'' the following: ``, private 
        nonprofit organizations,''.
    (b) Conforming Amendment.--Section 7(c)(5)(C) of the Small 
Business Act (15 U.S.C. 636(c)(5)(C)) is amended by inserting 
after ``business'' the following: ``, private nonprofit 
organization,''.

SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 37 as section 44; and
            (2) by inserting after section 36 the following:

``SEC. 37. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.

    ``(a) Coordination Required.--The Administrator shall 
ensure that the disaster assistance programs of the 
Administration are coordinated, to the maximum extent 
practicable, with the disaster assistance programs of the 
Federal Emergency Management Agency.
    ``(b) Regulations Required.--The Administrator, in 
consultation with the Administrator of the Federal Emergency 
Management Agency, shall establish regulations to ensure that 
each application for disaster assistance is submitted as 
quickly as practicable to the Administration or directed to the 
appropriate agency under the circumstances.
    ``(c) Completion; Revision.--The initial regulations shall 
be completed not later than 270 days after the date of the 
enactment of the Small Business Disaster Response and Loan 
Improvements Act of 2008. Thereafter, the regulations shall be 
revised on an annual basis.
    ``(d) Report.--The Administrator shall include a report on 
the regulations whenever the Administration submits the report 
required by section 43.''.

SEC. 12063. PUBLIC AWARENESS OF DISASTER DECLARATION AND APPLICATION 
                    PERIODS.

    (a) In General.--Section 7(b) of the Small Business Act (15 
U.S.C. 636(b)) is amended by inserting immediately after 
paragraph (3), the following:
            ``(4) Coordination with fema.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law, for any disaster 
                declared under this subsection or major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), the Administrator, in 
                consultation with the Administrator of the 
                Federal Emergency Management Agency, shall 
                ensure, to the maximum extent practicable, that 
                all application periods for disaster relief 
                under this Act correspond with application 
                deadlines established under the Robert T. 
                Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5121 et seq.), or as 
                extended by the President.
                    ``(B) Deadlines.--Notwithstanding any other 
                provision of law, not later than 10 days before 
                the closing date of an application period for a 
                major disaster (including any major disaster 
                relating to which the Administrator declares 
                eligibility for additional disaster assistance 
                under paragraph (9)), the Administrator, in 
                consultation with the Administrator of the 
                Federal Emergency Management Agency, shall 
                submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives a report that includes--
                            ``(i) the deadline for submitting 
                        applications for assistance under this 
                        Act relating to that major disaster;
                            ``(ii) information regarding the 
                        number of loan applications and 
                        disbursements processed by the 
                        Administrator relating to that major 
                        disaster for each day during the period 
                        beginning on the date on which that 
                        major disaster was declared and ending 
                        on the date of that report; and
                            ``(iii) an estimate of the number 
                        of potential applicants that have not 
                        submitted an application relating to 
                        that major disaster.
            ``(5) Public awareness of disasters.--If a disaster 
        is declared under this subsection or the Administrator 
        declares eligibility for additional disaster assistance 
        under paragraph (9), the Administrator shall make every 
        effort to communicate through radio, television, print, 
        and web-based outlets, all relevant information needed 
        by disaster loan applicants, including--
                    ``(A) the date of such declaration;
                    ``(B) cities and towns within the area of 
                such declaration;
                    ``(C) loan application deadlines related to 
                such disaster;
                    ``(D) all relevant contact information for 
                victim services available through the 
                Administration (including links to small 
                business development center websites);
                    ``(E) links to relevant Federal and State 
                disaster assistance websites, including links 
                to websites providing information regarding 
                assistance available from the Federal Emergency 
                Management Agency;
                    ``(F) information on eligibility criteria 
                for Administration loan programs, including 
                where such applications can be found; and
                    ``(G) application materials that clearly 
                state the function of the Administration as the 
                Federal source of disaster loans for homeowners 
                and renters.''.
    (b) Marketing and Outreach.--Not later than 90 days after 
the date of enactment of this Act, the Administrator shall 
create a marketing and outreach plan that--
            (1) encourages a proactive approach to the disaster 
        relief efforts of the Administration;
            (2) makes clear the services provided by the 
        Administration, including contact information, 
        application information, and timelines for submitting 
        applications, the review of applications, and the 
        disbursement of funds;
            (3) describes the different disaster loan programs 
        of the Administration, including how they are made 
        available and the eligibility requirements for each 
        loan program;
            (4) provides for regional marketing, focusing on 
        disasters occurring in each region before the date of 
        enactment of this Act, and likely scenarios for 
        disasters in each such region; and
            (5) ensures that the marketing plan is made 
        available at small business development centers and on 
        the website of the Administration.
    (c) Technical and Conforming Amendments.--
            (1) In general.--Section 3 of the Small Business 
        Act (15 U.S.C. 632) is amended by adding at the end the 
        following:
    ``(s) Major Disaster.--In this Act, the term `major 
disaster' has the meaning given that term in section 102 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5122).''.
            (2) Technical correction.--Section 7(b)(2) of the 
        Small Business Act (15 U.S.C. 636(b)(2)) is amended by 
        striking ``Disaster Relief and Emergency Assistance 
        Act'' and inserting ``Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.)''.

SEC. 12064. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS AND STANDARD 
                    OPERATING PROCEDURES.

    (a) In General.--The Administrator shall, promptly 
following the date of enactment of this Act, conduct a study of 
whether the standard operating procedures of the Administration 
for loans offered under section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) are consistent with the regulations of the 
Administration for administering the disaster loan program.
    (b) Report.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall submit to 
Congress a report containing all findings and recommendations 
of the study conducted under subsection (a).

SEC. 12065. INCREASING COLLATERAL REQUIREMENTS.

    Section 7(c)(6) of the Small Business Act (15 U.S.C. 
636(c)(6)) is amended by striking ``$10,000 or less'' and 
inserting ``$14,000 or less (or such higher amount as the 
Administrator determines appropriate in the event of a major 
disaster)''.

SEC. 12066. PROCESSING DISASTER LOANS.

    (a) Authority for Qualified Private Contractors To Process 
Disaster Loans.--Section 7(b) of the Small Business Act (15 
U.S.C. 636(b)) is amended by inserting immediately after 
paragraph (5), as added by this Act, the following:
            ``(6) Authority for qualified private 
        contractors.--
                    ``(A) Disaster loan processing.--The 
                Administrator may enter into an agreement with 
                a qualified private contractor, as determined 
                by the Administrator, to process loans under 
                this subsection in the event of a major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), under which the Administrator 
                shall pay the contractor a fee for each loan 
                processed.
                    ``(B) Loan loss verification services.--The 
                Administrator may enter into an agreement with 
                a qualified lender or loss verification 
                professional, as determined by the 
                Administrator, to verify losses for loans under 
                this subsection in the event of a major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), under which the Administrator 
                shall pay the lender or verification 
                professional a fee for each loan for which such 
                lender or verification professional verifies 
                losses.''.
    (b) Coordination of Efforts Between the Administrator and 
the Internal Revenue Service To Expedite Loan Processing.--The 
Administrator and the Commissioner of Internal Revenue shall, 
to the maximum extent practicable, ensure that all relevant and 
allowable tax records for loan approval are shared with loan 
processors in an expedited manner, upon request by the 
Administrator.

SEC. 12067. INFORMATION TRACKING AND FOLLOW-UP SYSTEM.

    The Small Business Act is amended by inserting after 
section 37, as added by this Act, the following:

``SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DISASTER 
                    ASSISTANCE.

    ``(a) System Required.--The Administrator shall develop, 
implement, or maintain a centralized information system to 
track communications between personnel of the Administration 
and applicants for disaster assistance. The system shall ensure 
that whenever an applicant for disaster assistance communicates 
with such personnel on a matter relating to the application, 
the following information is recorded:
            ``(1) The method of communication.
            ``(2) The date of communication.
            ``(3) The identity of the personnel.
            ``(4) A summary of the subject matter of the 
        communication.
    ``(b) Follow-Up Required.--The Administrator shall ensure 
that an applicant for disaster assistance receives, by 
telephone, mail, or electronic mail, follow-up communications 
from the Administration at all critical stages of the 
application process, including the following:
            ``(1) When the Administration determines that 
        additional information or documentation is required to 
        process the application.
            ``(2) When the Administration determines whether to 
        approve or deny the loan.
            ``(3) When the primary contact person managing the 
        loan application has changed.''.

SEC. 12068. INCREASED DEFERMENT PERIOD.

    (a) In General.--Section 7 of the Small Business Act (15 
U.S.C. 636) is amended--
            (1) by redesignating subsections (c) and (d) as 
        subsections (d) and (e), respectively; and
            (2) by inserting after subsection (e), as so 
        redesignated, the following:
    ``(f) Additional Requirements for 7(b) Loans.--
            ``(1) Increased deferment authorized.--
                    ``(A) In general.--In making loans under 
                subsection (b), the Administrator may provide, 
                to the person receiving the loan, an option to 
                defer repayment on the loan.
                    ``(B) Period.--The period of a deferment 
                under subparagraph (A) may not exceed 4 
                years.''.
    (b) Technical and Conforming Amendments.--The Small 
Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) in section 4(c)--
                    (A) in paragraph (1), by striking 
                ``7(c)(2)'' and inserting ``7(d)(2)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``7(c)(2)'' and 
                        inserting ``7(d)(2)''; and
                            (ii) by striking ``7(e),''; and
            (2) in section 7(b), in the undesignated matter 
        following paragraph (3)--
                    (A) by striking ``That the provisions of 
                paragraph (1) of subsection (c)'' and inserting 
                ``That the provisions of paragraph (1) of 
                subsection (d)''; and
                    (B) by striking ``Notwithstanding the 
                provisions of any other law the interest rate 
                on the Administration's share of any loan made 
                under subsection (b) except as provided in 
                subsection (c),'' and inserting 
                ``Notwithstanding any other provision of law, 
                and except as provided in subsection (d), the 
                interest rate on the Administration's share of 
                any loan made under subsection (b)''.

SEC. 12069. DISASTER PROCESSING REDUNDANCY.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended 
by inserting after section 38, as added by this Act, the 
following:

``SEC. 39. DISASTER PROCESSING REDUNDANCY.

    ``(a) In General.--The Administrator shall ensure that the 
Administration has in place a facility for disaster loan 
processing that, whenever the Administration's primary facility 
for disaster loan processing becomes unavailable, is able to 
take over all disaster loan processing from that primary 
facility within 2 days.
    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as may be necessary to 
carry out this section.''.

SEC. 12070. NET EARNINGS CLAUSES PROHIBITED.

    Section 7 of the Small Business Act (15 U.S.C. 636) is 
amended by inserting after subsection (f), as added by this 
Act, the following:
    ``(g) Net Earnings Clauses Prohibited for 7(b) Loans.--In 
making loans under subsection (b), the Administrator shall not 
require the borrower to pay any non-amortized amount for the 
first five years after repayment begins.''.

SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE STORMS AND 
                    BLIZZARDS.

    Section 3(k)(2) of the Small Business Act (15 U.S.C. 
632(k)(2)) is amended--
            (1) in subparagraph (A) by striking ``and'';
            (2) in subparagraph (B) by striking the period at 
        the end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(C) ice storms and blizzards.''.

SEC. 12072. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER RESPONSE 
                    PLAN.

    (a) In General.--Not later than 3 months after the date of 
enactment of this Act, the Administrator shall--
            (1) by rule, amend the 2006 Atlantic hurricane 
        season disaster response plan of the Administration (in 
        this section referred to as the ``disaster response 
        plan'') to apply to major disasters; and
            (2) submit a report to the Committee on Small 
        Business and Entrepreneurship of the Senate and the 
        Committee on Small Business of the House of 
        Representatives detailing the amendments to the 
        disaster response plan.
    (b) Contents.--The report required under subsection (a)(2) 
shall include--
            (1) any updates or modifications made to the 
        disaster response plan since the report regarding the 
        disaster response plan submitted to Congress on July 
        14, 2006;
            (2) a description of how the Administrator plans to 
        use and integrate District Office personnel of the 
        Administration in the response to a major disaster, 
        including information on the use of personnel for loan 
        processing and loan disbursement;
            (3) a description of the disaster scalability model 
        of the Administration and on what basis or function the 
        plan is scaled;
            (4) a description of how the agency-wide Disaster 
        Oversight Council is structured, which offices comprise 
        its membership, and whether the Associate Deputy 
        Administrator for Entrepreneurial Development of the 
        Administration is a member;
            (5) a description of how the Administrator plans to 
        coordinate the disaster efforts of the Administration 
        with State and local government officials, including 
        recommendations on how to better incorporate State 
        initiatives or programs, such as State-administered 
        bridge loan programs, into the disaster response of the 
        Administration;
            (6) recommendations, if any, on how the 
        Administration can better coordinate its disaster 
        response operations with the operations of other 
        Federal, State, and local entities;
            (7) any surge plan for the disaster loan program of 
        the Administration in effect on or after August 29, 
        2005 (including surge plans for loss verification, loan 
        processing, mailroom, customer service or call center 
        operations, and a continuity of operations plan);
            (8) the number of full-time equivalent employees 
        and job descriptions for the planning and disaster 
        response staff of the Administration;
            (9) the in-service and preservice training 
        procedures for disaster response staff of the 
        Administration;
            (10) information on the logistical support plans of 
        the Administration (including equipment and staffing 
        needs, and detailed information on how such plans will 
        be scalable depending on the size and scope of the 
        major disaster;
            (11) a description of the findings and 
        recommendations of the Administrator, if any, based on 
        a review of the response of the Administration to 
        Hurricane Katrina of 2005, Hurricane Rita of 2005, and 
        Hurricane Wilma of 2005; and
            (12) a plan for how the Administrator, in 
        consultation with the Administrator of the Federal 
        Emergency Management Agency, will coordinate the 
        provision of accommodations and necessary resources for 
        disaster assistance personnel to effectively perform 
        their responsibilities in the aftermath of a major 
        disaster.
    (c) Biennial Disaster Simulation Exercise.--
            (1) Exercise required.--The Administrator shall 
        conduct a disaster simulation exercise at least once 
        every 2 fiscal years. The exercise shall include the 
        participation of, at a minimum, not less than 50 
        percent of the individuals in the disaster reserve 
        corps and shall test, at maximum capacity, all of the 
        information technology and telecommunications systems 
        of the Administration that are vital to the activities 
        of the Administration during such a disaster.
            (2) Report.--The Administrator shall include a 
        report on the disaster simulation exercises conducted 
        under paragraph (1) each time the Administration 
        submits a report required under section 43 of the Small 
        Business Act, as added by this Act.

SEC. 12073. DISASTER PLANNING RESPONSIBILITIES.

    (a) Assignment of Small Business Administration Disaster 
Planning Responsibilities.--The disaster planning function of 
the Administration shall be assigned to an individual appointed 
by the Administrator who--
            (1) is not an employee of the Office of Disaster 
        Assistance of the Administration;
            (2) has proven management ability;
            (3) has substantial knowledge in the field of 
        disaster readiness and emergency response; and
            (4) has demonstrated significant experience in the 
        area of disaster planning.
    (b) Responsibilities.--The individual assigned the disaster 
planning function of the Administration shall report directly 
and solely to the Administrator and shall be responsible for--
            (1) creating, maintaining, and implementing the 
        comprehensive disaster response plan of the 
        Administration described in section 12072;
            (2) ensuring there are in-service and pre-service 
        training procedures for the disaster response staff of 
        the Administration;
            (3) coordinating and directing the training 
        exercises of the Administration relating to disasters, 
        including disaster simulation exercises and disaster 
        exercises coordinated with other government departments 
        and agencies; and
            (4) other responsibilities relevant to disaster 
        planning and readiness, as determined by the 
        Administrator.
    (c) Coordination.--In carrying out the responsibilities 
described in subsection (b), the individual assigned the 
disaster planning function of the Administration shall 
coordinate with--
            (1) the Office of Disaster Assistance of the 
        Administration;
            (2) the Administrator of the Federal Emergency 
        Management Agency; and
            (3) other Federal, State, and local disaster 
        planning offices, as necessary.
    (d) Resources.--The Administrator shall ensure that the 
individual assigned the disaster planning function of the 
Administration has adequate resources to carry out the duties 
under this section.
    (e) Report.--Not later than 30 days after the date of 
enactment of this Act, the Administrator shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of 
Representatives a report containing--
            (1) a description of the actions of the 
        Administrator to assign an individual the disaster 
        planning function of the Administration;
            (2) information detailing the background and 
        expertise of the individual assigned; and
            (3) information on the status of the implementation 
        of the responsibilities described in subsection (b).

SEC. 12074. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER 
                    ASSISTANCE AND DISASTER CADRE.

    (a) In General.--Section 7(b) of the Small Business Act (15 
U.S.C. 636(b)) is amended by inserting immediately after 
paragraph (6), as added by this Act, the following:
            ``(7) Disaster assistance employees.--
                    ``(A) In general.--In carrying out this 
                section, the Administrator may, where 
                practicable, ensure that the number of full-
                time equivalent employees--
                            ``(i) in the Office of the Disaster 
                        Assistance is not fewer than 800; and
                            ``(ii) in the Disaster Cadre of the 
                        Administration is not fewer than 1,000.
                    ``(B) Report.--In carrying out this 
                subsection, if the number of full-time 
                employees for either the Office of Disaster 
                Assistance or the Disaster Cadre of the 
                Administration is below the level described in 
                subparagraph (A) for that office, not later 
                than 21 days after the date on which that 
                staffing level decreased below the level 
                described in subparagraph (A), the 
                Administrator shall submit to the Committee on 
                Appropriations and the Committee on Small 
                Business and Entrepreneurship of the Senate and 
                the Committee on Appropriations and Committee 
                on Small Business of the House of 
                Representatives, a report--
                            ``(i) detailing staffing levels on 
                        that date;
                            ``(ii) requesting, if practicable 
                        and determined appropriate by the 
                        Administrator, additional funds for 
                        additional employees; and
                            ``(iii) containing such additional 
                        information, as determined appropriate 
                        by the Administrator.''.

SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended 
inserting after section 39, as added by this Act, the 
following:

``SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN.

    ``(a) Plan Required.--The Administrator shall develop, 
implement, or maintain a comprehensive written disaster 
response plan. The plan shall include the following:
            ``(1) For each region of the Administration, a 
        description of the disasters most likely to occur in 
        that region.
            ``(2) For each disaster described under paragraph 
        (1)--
                    ``(A) an assessment of the disaster;
                    ``(B) an assessment of the demand for 
                Administration assistance most likely to occur 
                in response to the disaster;
                    ``(C) an assessment of the needs of the 
                Administration, with respect to such resources 
                as information technology, telecommunications, 
                human resources, and office space, to meet the 
                demand referred to in subparagraph (B); and
                    ``(D) guidelines pursuant to which the 
                Administration will coordinate with other 
                Federal agencies and with State and local 
                authorities to best respond to the demand 
                referred to in subparagraph (B) and to best use 
                the resources referred to in that subparagraph.
    ``(b) Completion; Revision.--The first plan required by 
subsection (a) shall be completed not later than 180 days after 
the date of the enactment of this section. Thereafter, the 
Administrator shall update the plan on an annual basis and 
following any major disaster relating to which the 
Administrator declares eligibility for additional disaster 
assistance under section 7(b)(9).
    ``(c) Knowledge Required.--The Administrator shall carry 
out subsections (a) and (b) through an individual with 
substantial knowledge in the field of disaster readiness and 
emergency response.
    ``(d) Report.--The Administrator shall include a report on 
the plan whenever the Administration submits the report 
required by section 43.''.

SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE.

    The Small Business Act is amended by inserting after 
section 40, as added by this Act, the following:

``SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE.

    ``(a) Plans Required.--The Administrator shall develop 
long-term plans to secure sufficient office space to 
accommodate an expanded workforce in times of disaster.
    ``(b) Report.--The Administrator shall include a report on 
the plans developed under subsection (a) each time the 
Administration submits a report required under section 43.''.

SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR SOURCE OF EMPLOYMENT 
                    DUE TO CHANGED ECONOMIC CIRCUMSTANCES.

    Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 
636(b)(3)(E)) is amended by inserting after ``constitutes'' the 
following: ``, or have become due to changed economic 
circumstances,''.

SEC. 12078. DISASTER LOAN AMOUNTS.

    (a) Increased Loan Caps.--Section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)) is amended by inserting 
immediately after paragraph (7), as added by this Act, the 
following:
            ``(8) Increased loan caps.--
                    ``(A) Aggregate loan amounts.--Except as 
                provided in subparagraph (B), and 
                notwithstanding any other provision of law, the 
                aggregate loan amount outstanding and committed 
                to a borrower under this subsection may not 
                exceed $2,000,000.
                    ``(B) Waiver authority.--The Administrator 
                may, at the discretion of the Administrator, 
                increase the aggregate loan amount under 
                subparagraph (A) for loans relating to a 
                disaster to a level established by the 
                Administrator, based on appropriate economic 
                indicators for the region in which that 
                disaster occurred.''.
    (b) Disaster Mitigation.--
            (1) In general.--Section 7(b)(1)(A) of the Small 
        Business Act (15 U.S.C. 636(b)(1)(A)) is amended by 
        inserting ``of the aggregate costs of such damage or 
        destruction (whether or not compensated for by 
        insurance or otherwise)'' after ``20 per centum''.
            (2) Effective date.--The amendment made by 
        paragraph (1) shall apply with respect to a loan or 
        guarantee made after the date of enactment of this Act.
    (c) Technical Amendments.--Section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking ``the, Administration'' and inserting ``the 
        Administration''; and
            (2) in the undesignated matter at the end--
                    (A) by striking ``, (2), and (4)'' and 
                inserting ``and (2)''; and
                    (B) by striking ``, (2), or (4)'' and 
                inserting ``(2)''.

SEC. 12079. SMALL BUSINESS BONDING THRESHOLD.

    (a) In General.--Except as provided in subsection (b), and 
notwithstanding any other provision of law, for any procurement 
related to a major disaster, the Administrator may, upon such 
terms and conditions as the Administrator may prescribe, 
guarantee and enter into commitments to guarantee any surety 
against loss resulting from a breach of the terms of a bid 
bond, payment bond, performance bond, or bonds ancillary 
thereto, by a principal on any total work order or contract 
amount at the time of bond execution that does not exceed 
$5,000,000.
    (b) Increase of Amount.--Upon request of the head of any 
Federal agency other than the Administration involved in 
reconstruction efforts in response to a major disaster, the 
Administrator may guarantee and enter into a commitment to 
guarantee any security against loss under subsection (a) on any 
total work order or contract amount at the time of bond 
execution that does not exceed $10,000,000.
    (c) Limitation on Use of Other Funds.--The Administrator 
may carry out this section only with amounts appropriated in 
advance specifically to carry out this section.

                       PART II--DISASTER LENDING

SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER ASSISTANCE.

    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) 
is amended by inserting immediately after paragraph (8), as 
added by this Act, the following:
            ``(9) Declaration of eligibility for additional 
        disaster assistance.--
                    ``(A) In general.--If the President 
                declares a major disaster, the Administrator 
                may declare eligibility for additional disaster 
                assistance in accordance with this paragraph.
                    ``(B) Threshold.--A major disaster for 
                which the Administrator declares eligibility 
                for additional disaster assistance under this 
                paragraph shall--
                            ``(i) have resulted in 
                        extraordinary levels of casualties or 
                        damage or disruption severely affecting 
                        the population (including mass 
                        evacuations), infrastructure, 
                        environment, economy, national morale, 
                        or government functions in an area;
                            ``(ii) be comparable to the 
                        description of a catastrophic incident 
                        in the National Response Plan of the 
                        Administration, or any successor 
                        thereto, unless there is no successor 
                        to such plan, in which case this clause 
                        shall have no force or effect; and
                            ``(iii) be of such size and scope 
                        that--
                                    ``(I) the disaster 
                                assistance programs under the 
                                other paragraphs under this 
                                subsection are incapable of 
                                providing adequate and timely 
                                assistance to individuals or 
                                business concerns located 
                                within the disaster area; or
                                    ``(II) a significant number 
                                of business concerns outside 
                                the disaster area have suffered 
                                disaster-related substantial 
                                economic injury as a result of 
                                the incident.''.

SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSISTANCE.

    Paragraph (9) of section 7(b) of the Small Business Act (15 
U.S.C. 636(b)), as added by section 12081, is amended by adding 
at the end the following:
                    ``(C) Additional economic injury disaster 
                loan assistance.--
                            ``(i) In general.--If the 
                        Administrator declares eligibility for 
                        additional disaster assistance under 
                        this paragraph, the Administrator may 
                        make such loans under this subparagraph 
                        (either directly or in cooperation with 
                        banks or other lending institutions 
                        through agreements to participate on an 
                        immediate or deferred basis) as the 
                        Administrator determines appropriate to 
                        eligible small business concerns 
                        located anywhere in the United States.
                            ``(ii) Processing time.--
                                    ``(I) In general.--If the 
                                Administrator determines that 
                                the average processing time for 
                                applications for disaster loans 
                                under this subparagraph 
                                relating to a specific major 
                                disaster is more than 15 days, 
                                the Administrator shall give 
                                priority to the processing of 
                                such applications submitted by 
                                eligible small business 
                                concerns located inside the 
                                disaster area, until the 
                                Administrator determines that 
                                the average processing time for 
                                such applications is not more 
                                than 15 days.
                                    ``(II) Suspension of 
                                applications from outside 
                                disaster area.--If the 
                                Administrator determines that 
                                the average processing time for 
                                applications for disaster loans 
                                under this subparagraph 
                                relating to a specific major 
                                disaster is more than 30 days, 
                                the Administrator shall suspend 
                                the processing of such 
                                applications submitted by 
                                eligible small business 
                                concerns located outside the 
                                disaster area, until the 
                                Administrator determines that 
                                the average processing time for 
                                such applications is not more 
                                than 15 days.
                            ``(iii) Loan terms.--A loan under 
                        this subparagraph shall be made on the 
                        same terms as a loan under paragraph 
                        (2).
                    ``(D) Definitions.--In this paragraph--
                            ``(i) the term `disaster area' 
                        means the area for which the applicable 
                        major disaster was declared;
                            ``(ii) the term `disaster-related 
                        substantial economic injury' means 
                        economic harm to a business concern 
                        that results in the inability of the 
                        business concern to--
                                    ``(I) meet its obligations 
                                as it matures;
                                    ``(II) meet its ordinary 
                                and necessary operating 
                                expenses; or
                                    ``(III) market, produce, or 
                                provide a product or service 
                                ordinarily marketed, produced, 
                                or provided by the business 
                                concern because the business 
                                concern relies on materials 
                                from the disaster area or sells 
                                or markets in the disaster 
                                area; and
                            ``(iii) the term `eligible small 
                        business concern' means a small 
                        business concern--
                                    ``(I) that has suffered 
                                disaster-related substantial 
                                economic injury as a result of 
                                the applicable major disaster; 
                                and
                                    ``(II)(aa) for which not 
                                less than 25 percent of the 
                                market share of that small 
                                business concern is from 
                                business transacted in the 
                                disaster area;
                                    ``(bb) for which not less 
                                than 25 percent of an input 
                                into a production process of 
                                that small business concern is 
                                from the disaster area; or
                                    ``(cc) that relies on a 
                                provider located in the 
                                disaster area for a service 
                                that is not readily available 
                                elsewhere.''.

SEC. 12083. PRIVATE DISASTER LOANS.

    (a) In General.--Section 7 of the Small Business Act (15 
U.S.C. 636) is amended by inserting after subsection (b) the 
following:
    ``(c) Private Disaster Loans.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `disaster area' means any 
                area for which the President declared a major 
                disaster relating to which the Administrator 
                declares eligibility for additional disaster 
                assistance under subsection (b)(9), during the 
                period of that major disaster declaration;
                    ``(B) the term `eligible individual' means 
                an individual who is eligible for disaster 
                assistance under subsection (b)(1) relating to 
                a major disaster relating to which the 
                Administrator declares eligibility for 
                additional disaster assistance under subsection 
                (b)(9);
                    ``(C) the term `eligible small business 
                concern' means a business concern that is--
                            ``(i) a small business concern, as 
                        defined under this Act; or
                            ``(ii) a small business concern, as 
                        defined in section 103 of the Small 
                        Business Investment Act of 1958;
                    ``(D) the term `preferred lender' means a 
                lender participating in the Preferred Lender 
                Program;
                    ``(E) the term `Preferred Lender Program' 
                has the meaning given that term in subsection 
                (a)(2)(C)(ii); and
                    ``(F) the term `qualified private lender' 
                means any privately-owned bank or other lending 
                institution that--
                            ``(i) is not a preferred lender; 
                        and
                            ``(ii) the Administrator determines 
                        meets the criteria established under 
                        paragraph (10).
            ``(2) Program required.--The Administrator shall 
        carry out a program, to be known as the Private 
        Disaster Assistance program, under which the 
        Administration may guarantee timely payment of 
        principal and interest, as scheduled, on any loan made 
        to an eligible small business concern located in a 
        disaster area and to an eligible individual.
            ``(3) Use of loans.--A loan guaranteed by the 
        Administrator under this subsection may be used for any 
        purpose authorized under subsection (b).
            ``(4) Online applications.--
                    ``(A) Establishment.--The Administrator may 
                establish, directly or through an agreement 
                with another entity, an online application 
                process for loans guaranteed under this 
                subsection.
                    ``(B) Other federal assistance.--The 
                Administrator may coordinate with the head of 
                any other appropriate Federal agency so that 
                any application submitted through an online 
                application process established under this 
                paragraph may be considered for any other 
                Federal assistance program for disaster relief.
                    ``(C) Consultation.--In establishing an 
                online application process under this 
                paragraph, the Administrator shall consult with 
                appropriate persons from the public and private 
                sectors, including private lenders.
            ``(5) Maximum amounts.--
                    ``(A) Guarantee percentage.--The 
                Administrator may guarantee not more than 85 
                percent of a loan under this subsection.
                    ``(B) Loan amount.--The maximum amount of a 
                loan guaranteed under this subsection shall be 
                $2,000,000.
            ``(6) Terms and conditions.--A loan guaranteed 
        under this subsection shall be made under the same 
        terms and conditions as a loan under subsection (b).
            ``(7) Lenders.--
                    ``(A) In general.--A loan guaranteed under 
                this subsection made to--
                            ``(i) a qualified individual may be 
                        made by a preferred lender; and
                            ``(ii) a qualified small business 
                        concern may be made by a qualified 
                        private lender or by a preferred lender 
                        that also makes loans to qualified 
                        individuals.
                    ``(B) Compliance.--If the Administrator 
                determines that a preferred lender knowingly 
                failed to comply with the underwriting 
                standards for loans guaranteed under this 
                subsection or violated the terms of the 
                standard operating procedure agreement between 
                that preferred lender and the Administration, 
                the Administrator shall do 1 or more of the 
                following:
                            ``(i) Exclude the preferred lender 
                        from participating in the program under 
                        this subsection.
                            ``(ii) Exclude the preferred lender 
                        from participating in the Preferred 
                        Lender Program for a period of not more 
                        than 5 years.
            ``(8) Fees.--
                    ``(A) In general.--The Administrator may 
                not collect a guarantee fee under this 
                subsection.
                    ``(B) Origination fee.--The Administrator 
                may pay a qualified private lender or preferred 
                lender an origination fee for a loan guaranteed 
                under this subsection in an amount agreed upon 
                in advance between the qualified private lender 
                or preferred lender and the Administrator.
            ``(9) Documentation.--A qualified private lender or 
        preferred lender may use its own loan documentation for 
        a loan guaranteed by the Administrator under this 
        subsection, to the extent authorized by the 
        Administrator. The ability of a lender to use its own 
        loan documentation for a loan guaranteed under this 
        subsection shall not be considered part of the criteria 
        for becoming a qualified private lender under the 
        regulations promulgated under paragraph (10).
            ``(10) Implementation regulations.--
                    ``(A) In general.--Not later than 1 year 
                after the date of enactment of the Small 
                Business Disaster Response and Loan 
                Improvements Act of 2008, the Administrator 
                shall issue final regulations establishing 
                permanent criteria for qualified private 
                lenders.
                    ``(B) Report to congress.--Not later than 6 
                months after the date of enactment of the Small 
                Business Disaster Response and Loan 
                Improvements Act of 2008, the Administrator 
                shall submit a report on the progress of the 
                regulations required by subparagraph (A) to the 
                Committee on Small Business and 
                Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives.
            ``(11) Authorization of appropriations.--
                    ``(A) In general.--Amounts necessary to 
                carry out this subsection shall be made 
                available from amounts appropriated to the 
                Administration to carry out subsection (b).
                    ``(B) Authority to reduce interest rates 
                and other terms and conditions.--Funds 
                appropriated to the Administration to carry out 
                this subsection, may be used by the 
                Administrator to meet the loan terms and 
                conditions specified in paragraph (6).
            ``(12) Purchase of loans.--The Administrator may 
        enter into an agreement with a qualified private lender 
        or preferred lender to purchase any loan guaranteed 
        under this subsection.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to any major disaster declared on or after the date 
of enactment of this Act.

SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

    The Small Business Act is amended by inserting after 
section 41, as added by this Act, the following:

``SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

    ``(a) Program Required.--The Administrator shall carry out 
a program, to be known as the Immediate Disaster Assistance 
program, under which the Administration participates on a 
deferred (guaranteed) basis in 85 percent of the balance of the 
financing outstanding at the time of disbursement of the loan 
if such balance is less than or equal to $25,000 for businesses 
affected by a disaster.
    ``(b) Eligibility Requirement.--To receive a loan 
guaranteed under subsection (a), the applicant shall also apply 
for, and meet basic eligibility standards for, a loan under 
subsection (b) or (c) of section 7.
    ``(c) Use of Proceeds.--A person who receives a loan under 
subsection (b) or (c) of section 7 shall use the proceeds of 
that loan to repay all loans guaranteed under subsection (a), 
if any, before using the proceeds for any other purpose.
    ``(d) Loan Terms.--
            ``(1) No prepayment penalty.--There shall be no 
        prepayment penalty on a loan guaranteed under 
        subsection (a).
            ``(2) Repayment.--A person who receives a loan 
        guaranteed under subsection (a) and who is disapproved 
        for a loan under subsection (b) or (c) of section 7, as 
        the case may be, shall repay the loan guaranteed under 
        subsection (a) not later than the date established by 
        the Administrator, which may not be earlier than 10 
        years after the date on which the loan guaranteed under 
        subsection is disbursed.
    ``(e) Approval or Disapproval.--The Administrator shall 
ensure that each applicant for a loan under the program 
receives a decision approving or disapproving of the 
application within 36 hours after the Administration receives 
the application.''.

SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.

    (a) Definition.--In this section, the term ``program'' 
means the expedited disaster assistance business loan program 
established under subsection (b).
    (b) Creation of Program.--The Administrator shall take such 
administrative action as is necessary to establish and 
implement an expedited disaster assistance business loan 
program under which the Administration may, on an expedited 
basis, guarantee timely payment of principal and interest, as 
scheduled on any loan made to an eligible small business 
concern under paragraph (9) of section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), as added by this Act.
    (c) Consultation Required.--In establishing the program, 
the Administrator shall consult with--
            (1) appropriate personnel of the Administration 
        (including District Office personnel of the 
        Administration);
            (2) appropriate technical assistance providers 
        (including small business development centers);
            (3) appropriate lenders and credit unions;
            (4) the Committee on Small Business and 
        Entrepreneurship of the Senate; and
            (5) the Committee on Small Business of the House of 
        Representatives.
    (d) Rules.--
            (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Administrator shall 
        issue rules in final form establishing and implementing 
        the program in accordance with this section. Such rules 
        shall apply as provided for in this section, beginning 
        90 days after their issuance in final form.
            (2) Contents.--The rules promulgated under 
        paragraph (1) shall--
                    (A) identify whether appropriate uses of 
                funds under the program may include--
                            (i) paying employees;
                            (ii) paying bills and other 
                        financial obligations;
                            (iii) making repairs;
                            (iv) purchasing inventory;
                            (v) restarting or operating a small 
                        business concern in the community in 
                        which it was conducting operations 
                        prior to the applicable major disaster, 
                        or to a neighboring area, county, or 
                        parish in the disaster area; or
                            (vi) covering additional costs 
                        until the small business concern is 
                        able to obtain funding through 
                        insurance claims, Federal assistance 
                        programs, or other sources; and
                    (B) set the terms and conditions of any 
                loan made under the program, subject to 
                paragraph (3).
            (3) Terms and conditions.--A loan guaranteed by the 
        Administration under this section--
                    (A) shall be for not more than $150,000;
                    (B) shall be a short-term loan, not to 
                exceed 180 days, except that the Administrator 
                may extend such term as the Administrator 
                determines necessary or appropriate on a case-
                by-case basis;
                    (C) shall have an interest rate not to 
                exceed 300 basis points above the interest rate 
                established by the Board of Governors of the 
                Federal Reserve System that 1 bank charges 
                another for reserves that are lent on an 
                overnight basis on the date the loan is made;
                    (D) shall have no prepayment penalty;
                    (E) may only be made to a borrower that 
                meets the requirements for a loan under section 
                7(b) of the Small Business Act (15 U.S.C. 
                636(b)), as amended by this Act;
                    (F) may be refinanced as part of any 
                subsequent disaster assistance provided under 
                section 7(b) of the Small Business Act (15 
                U.S.C. 636(b)), as amended by this Act;
                    (G) may receive expedited loss verification 
                and loan processing, if the applicant is--
                            (i) a major source of employment in 
                        the disaster area (which shall be 
                        determined in the same manner as under 
                        section 7(b)(3)(B) of the Small 
                        Business Act (15 U.S.C. 636(b)(3)(B))); 
                        or
                            (ii) vital to recovery efforts in 
                        the region (including providing debris 
                        removal services, manufactured housing, 
                        or building materials); and
                    (H) shall be subject to such additional 
                terms as the Administrator determines necessary 
                or appropriate.
    (e) Report to Congress.--Not later than 5 months after the 
date of enactment of this Act, the Administrator shall report 
to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives on the progress of the Administrator in 
establishing the program.
    (f) Authorization.--There are authorized to be appropriated 
to the Administrator such sums as are necessary to carry out 
this section.

SEC. 12086. GULF COAST DISASTER LOAN REFINANCING PROGRAM.

    (a) In General.--The Administrator may carry out a program 
to refinance Gulf Coast disaster loans (in this section 
referred to as the ``program'').
    (b) Terms.--The terms of a Gulf Coast disaster loan 
refinanced under the program shall be identical to the terms of 
the original loan, except that the Administrator may provide an 
option to defer repayment on the loan. A deferment under the 
program shall end not later than 4 years after the date on 
which the initial disbursement under the original loan was 
made.
    (c) Amount.--The amount of a Gulf Coast disaster loan 
refinanced under the program shall not exceed the amount of the 
original loan.
    (d) Disclosure of Accrued Interest.--If the Administrator 
provides an option to defer repayment under the program, the 
Administrator shall disclose the accrued interest that must be 
paid under the option.
    (e) Definition.--In this section, the term ``Gulf Coast 
disaster loan'' means a loan--
            (1) made under section 7(b) of the Small Business 
        Act (15 U.S.C. 636(b));
            (2) in response to Hurricane Katrina of 2005, 
        Hurricane Rita of 2005, or Hurricane Wilma of 2005; and
            (3) to a small business concern located in a county 
        or parish designated by the Administrator as a disaster 
        area by reason of a hurricane described in paragraph 
        (2) under disaster declaration 10176, 10177, 10178, 
        10179, 10180, 10181, 10203, 10204, 10205, 10206, 10222, 
        or 10223.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section.

                        PART III--MISCELLANEOUS

SEC. 12091. REPORTS ON DISASTER ASSISTANCE.

    (a) Monthly Accounting Report to Congress.--
            (1) Reporting requirements.--Not later than the 
        fifth business day of each month during the applicable 
        period for a major disaster, the Administrator shall 
        submit to the Committee on Small Business and 
        Entrepreneurship and the Committee on Appropriations of 
        the Senate and to the Committee on Small Business and 
        the Committee on Appropriations of the House of 
        Representatives a report on the operation of the 
        disaster loan program authorized under section 7 of the 
        Small Business Act (15 U.S.C. 636) for that major 
        disaster during the preceding month.
            (2) Contents.--Each report submitted under 
        paragraph (1) shall include--
                    (A) the daily average lending volume, in 
                number of loans and dollars, and the percent by 
                which each category has increased or decreased 
                since the previous report under paragraph (1);
                    (B) the weekly average lending volume, in 
                number of loans and dollars, and the percent by 
                which each category has increased or decreased 
                since the previous report under paragraph (1);
                    (C) the amount of funding spent over the 
                month for loans, both in appropriations and 
                program level, and the percent by which each 
                category has increased or decreased since the 
                previous report under paragraph (1);
                    (D) the amount of funding available for 
                loans, both in appropriations and program 
                level, and the percent by which each category 
                has increased or decreased since the previous 
                report under paragraph (1), noting the source 
                of any additional funding;
                    (E) an estimate of how long the available 
                funding for such loans will last, based on the 
                spending rate;
                    (F) the amount of funding spent over the 
                month for staff, along with the number of 
                staff, and the percent by which each category 
                has increased or decreased since the previous 
                report under paragraph (1);
                    (G) the amount of funding spent over the 
                month for administrative costs, and the percent 
                by which such spending has increased or 
                decreased since the previous report under 
                paragraph (1);
                    (H) the amount of funding available for 
                salaries and expenses combined, and the percent 
                by which such funding has increased or 
                decreased since the previous report under 
                paragraph (1), noting the source of any 
                additional funding; and
                    (I) an estimate of how long the available 
                funding for salaries and expenses will last, 
                based on the spending rate.
    (b) Weekly Disaster Updates to Congress for Presidentially 
Declared Disasters.--
            (1) In general.--Each week during a disaster update 
        period, the Administration shall submit to the 
        Committee on Small Business and Entrepreneurship of the 
        Senate and to the Committee on Small Business of the 
        House of Representatives a report on the operation of 
        the disaster loan program of the Administration for the 
        area in which the President declared a major disaster.
            (2) Contents.--Each report submitted under 
        paragraph (1) shall include--
                    (A) the number of Administration staff 
                performing loan processing, field inspection, 
                and other duties for the declared disaster, and 
                the allocations of such staff in the disaster 
                field offices, disaster recovery centers, 
                workshops, and other Administration offices 
                nationwide;
                    (B) the daily number of applications 
                received from applicants in the relevant area, 
                as well as a breakdown of such figures by 
                State;
                    (C) the daily number of applications 
                pending application entry from applicants in 
                the relevant area, as well as a breakdown of 
                such figures by State;
                    (D) the daily number of applications 
                withdrawn by applicants in the relevant area, 
                as well as a breakdown of such figures by 
                State;
                    (E) the daily number of applications 
                summarily declined by the Administration from 
                applicants in the relevant area, as well as a 
                breakdown of such figures by State;
                    (F) the daily number of applications 
                declined by the Administration from applicants 
                in the relevant area, as well as a breakdown of 
                such figures by State;
                    (G) the daily number of applications in 
                process from applicants in the relevant area, 
                as well as a breakdown of such figures by 
                State;
                    (H) the daily number of applications 
                approved by the Administration from applicants 
                in the relevant area, as well as a breakdown of 
                such figures by State;
                    (I) the daily dollar amount of applications 
                approved by the Administration from applicants 
                in the relevant area, as well as a breakdown of 
                such figures by State;
                    (J) the daily amount of loans dispersed, 
                both partially and fully, by the Administration 
                to applicants in the relevant area, as well as 
                a breakdown of such figures by State;
                    (K) the daily dollar amount of loans 
                disbursed, both partially and fully, from the 
                relevant area, as well as a breakdown of such 
                figures by State;
                    (L) the number of applications approved, 
                including dollar amount approved, as well as 
                applications partially and fully disbursed, 
                including dollar amounts, since the last report 
                under paragraph (1); and
                    (M) the declaration date, physical damage 
                closing date, economic injury closing date, and 
                number of counties included in the declaration 
                of a major disaster.
    (c) Periods When Additional Disaster Assistance Is Made 
Available.--
            (1) In general.--During any period for which the 
        Administrator declares eligibility for additional 
        disaster assistance under paragraph (9) of section 7(b) 
        of the Small Business Act (15 U.S.C. 632(b)), as 
        amended by this Act, the Administrator shall, on a 
        monthly basis, submit to the Committee on Small 
        Business and Entrepreneurship of the Senate and to the 
        Committee on Small Business of the House of 
        Representatives a report on the disaster assistance 
        operations of the Administration with respect to the 
        applicable major disaster.
            (2) Contents.--Each report submitted under 
        paragraph (1) shall specify--
                    (A) the number of applications for disaster 
                assistance distributed;
                    (B) the number of applications for disaster 
                assistance received;
                    (C) the average time for the Administration 
                to approve or disapprove an application for 
                disaster assistance;
                    (D) the amount of disaster loans approved;
                    (E) the average time for initial 
                disbursement of disaster loan proceeds; and
                    (F) the amount of disaster loan proceeds 
                disbursed.
    (d) Notice of the Need for Supplemental Funds.--On the same 
date that the Administrator notifies any committee of the 
Senate or the House of Representatives that supplemental 
funding is necessary for the disaster loan program of the 
Administration in any fiscal year, the Administrator shall 
notify in writing the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives regarding the need for 
supplemental funds for that loan program.
    (e) Report on Contracting.--
            (1) In general.--Not later than 6 months after the 
        date on which the President declares a major disaster, 
        and every 6 months thereafter until the date that is 18 
        months after the date on which the major disaster was 
        declared, the Administrator shall submit a report to 
        the Committee on Small Business and Entrepreneurship of 
        the Senate and to the Committee on Small Business of 
        the House of Representatives regarding Federal 
        contracts awarded as a result of that major disaster.
            (2) Contents.--Each report submitted under 
        paragraph (1) shall include--
                    (A) the total number of contracts awarded 
                as a result of that major disaster;
                    (B) the total number of contracts awarded 
                to small business concerns as a result of that 
                major disaster;
                    (C) the total number of contracts awarded 
                to women and minority-owned businesses as a 
                result of that major disaster; and
                    (D) the total number of contracts awarded 
                to local businesses as a result of that major 
                disaster.
    (f) Report on Loan Approval Rate.--
            (1) In general.--Not later than 6 months after the 
        date of enactment of this Act, the Administrator shall 
        submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on 
        Small Business of the House of Representatives 
        detailing how the Administration can improve the 
        processing of applications under the disaster loan 
        program of the Administration.
            (2) Contents.--The report submitted under paragraph 
        (1) shall include--
                    (A) recommendations, if any, regarding--
                            (i) staffing levels during a major 
                        disaster;
                            (ii) how to improve the process for 
                        processing, approving, and disbursing 
                        loans under the disaster loan program 
                        of the Administration, to ensure that 
                        the maximum assistance is provided to 
                        victims in a timely manner;
                            (iii) the viability of using 
                        alternative methods for assessing the 
                        ability of an applicant to repay a 
                        loan, including the credit score of the 
                        applicant on the day before the date on 
                        which the disaster for which the 
                        applicant is seeking assistance was 
                        declared;
                            (iv) methods, if any, for the 
                        Administration to expedite loss 
                        verification and loan processing of 
                        disaster loans during a major disaster 
                        for businesses affected by, and located 
                        in the area for which the President 
                        declared, the major disaster that are a 
                        major source of employment in the area 
                        or are vital to recovery efforts in the 
                        region (including providing debris 
                        removal services, manufactured housing, 
                        or building materials);
                            (v) legislative changes, if any, 
                        needed to implement findings from the 
                        Accelerated Disaster Response 
                        Initiative of the Administration; and
                            (vi) a description of how the 
                        Administration plans to integrate and 
                        coordinate the response to a major 
                        disaster with the technical assistance 
                        programs of the Administration; and
                    (B) the plans of the Administrator for 
                implementing any recommendation made under 
                subparagraph (A).
    (g) Reports on Disaster Assistance.--The Small Business Act 
is amended by inserting after section 42, as added by this Act, 
the following:

``SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE.

    ``Not later than 45 days after the end of a fiscal year, 
the Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives a report on 
the disaster assistance operations of the Administration for 
that fiscal year. The report shall--
            ``(1) specify the number of Administration 
        personnel involved in such operations;
            ``(2) describe any material changes to those 
        operations, such as changes to technologies used or to 
        personnel responsibilities;
            ``(3) describe and assess the effectiveness of the 
        Administration in responding to disasters during that 
        fiscal year, including a description of the number and 
        amounts of loans made for damage and for economic 
        injury; and
            ``(4) describe the plans of the Administration for 
        preparing to respond to disasters during the next 
        fiscal year.''.

                     TITLE XIII--COMMODITY FUTURES

SEC. 13001. SHORT TITLE.

    This title may be cited as the ``CFTC Reauthorization Act 
of 2008''.

                     Subtitle A--General Provisions

SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS OR 
                    TRANSACTIONS IN FOREIGN CURRENCY.

    (a) In General.--Section 2(c)(2) of the Commodity Exchange 
Act (7 U.S.C. 2(c)(2)) is amended by striking subparagraphs (B) 
and (C) and inserting the following:
                    ``(B) Agreements, contracts, and 
                transactions in retail foreign currency.--
                            ``(i) This Act applies to, and the 
                        Commission shall have jurisdiction 
                        over, an agreement, contract, or 
                        transaction in foreign currency that--
                                    ``(I) is a contract of sale 
                                of a commodity for future 
                                delivery (or an option on such 
                                a contract) or an option (other 
                                than an option executed or 
                                traded on a national securities 
                                exchange registered pursuant to 
                                section 6(a) of the Securities 
                                Exchange Act of 1934 (15 U.S.C. 
                                78f(a))); and
                                    ``(II) is offered to, or 
                                entered into with, a person 
                                that is not an eligible 
                                contract participant, unless 
                                the counterparty, or the person 
                                offering to be the 
                                counterparty, of the person 
                                is--
                                            ``(aa) a financial 
                                        institution;
                                            ``(bb)(AA) a broker 
                                        or dealer registered 
                                        under section 15(b) 
                                        (except paragraph (11) 
                                        thereof) or 15C of the 
                                        Securities Exchange Act 
                                        of 1934 (15 U.S.C. 
                                        78o(b), 78o-5); or
                                            ``(BB) an 
                                        associated person of a 
                                        broker or dealer 
                                        registered under 
                                        section 15(b) (except 
                                        paragraph (11) thereof) 
                                        or 15C of the 
                                        Securities Exchange Act 
                                        of 1934 (15 U.S.C. 
                                        78o(b), 78o-5) 
                                        concerning the 
                                        financial or securities 
                                        activities of which the 
                                        broker or dealer makes 
                                        and keeps records under 
                                        section 15C(b) or 17(h) 
                                        of the Securities 
                                        Exchange Act of 1934 
                                        (15 U.S.C. 78o-5(b), 
                                        78q(h));
                                            ``(cc)(AA) a 
                                        futures commission 
                                        merchant that is 
                                        primarily or 
                                        substantially engaged 
                                        in the business 
                                        activities described in 
                                        section 1a(20) of this 
                                        Act, is registered 
                                        under this Act, is not 
                                        a person described in 
                                        item (bb) of this 
                                        subclause, and 
                                        maintains adjusted net 
                                        capital equal to or in 
                                        excess of the dollar 
                                        amount that applies for 
                                        purposes of clause (ii) 
                                        of this subparagraph; 
                                        or
                                            ``(BB) an 
                                        affiliated person of a 
                                        futures commission 
                                        merchant that is 
                                        primarily or 
                                        substantially engaged 
                                        in the business 
                                        activities described in 
                                        section 1a(20) of this 
                                        Act, is registered 
                                        under this Act, and is 
                                        not a person described 
                                        in item (bb) of this 
                                        subclause, if the 
                                        affiliated person 
                                        maintains adjusted net 
                                        capital equal to or in 
                                        excess of the dollar 
                                        amount that applies for 
                                        purposes of clause (ii) 
                                        of this subparagraph 
                                        and is not a person 
                                        described in such item 
                                        (bb), and the futures 
                                        commission merchant 
                                        makes and keeps records 
                                        under section 
                                        4f(c)(2)(B) of this Act 
                                        concerning the futures 
                                        and other financial 
                                        activities of the 
                                        affiliated person;
                                            ``(dd) an insurance 
                                        company described in 
                                        section 1a(12)(A)(ii) 
                                        of this Act, or a 
                                        regulated subsidiary or 
                                        affiliate of such an 
                                        insurance company;
                                            ``(ee) a financial 
                                        holding company (as 
                                        defined in section 2 of 
                                        the Bank Holding 
                                        Company Act of 1956);
                                            ``(ff) an 
                                        investment bank holding 
                                        company (as defined in 
                                        section 17(i) of the 
                                        Securities Exchange Act 
                                        of 1934 (15 U.S.C. 
                                        78q(i))); or
                                            ``(gg) a retail 
                                        foreign exchange dealer 
                                        that maintains adjusted 
                                        net capital equal to or 
                                        in excess of the dollar 
                                        amount that applies for 
                                        purposes of clause (ii) 
                                        of this subparagraph 
                                        and is registered in 
                                        such capacity with the 
                                        Commission, subject to 
                                        such terms and 
                                        conditions as the 
                                        Commission shall 
                                        prescribe, and is a 
                                        member of a futures 
                                        association registered 
                                        under section 17.
                            ``(ii) The dollar amount that 
                        applies for purposes of this clause 
                        is--
                                    ``(I) $10,000,000, 
                                beginning 120 days after the 
                                date of the enactment of this 
                                clause;
                                    ``(II) $15,000,000, 
                                beginning 240 days after such 
                                date of enactment; and
                                    ``(III) $20,000,000, 
                                beginning 360 days after such 
                                date of enactment.
                            ``(iii) Notwithstanding items (cc) 
                        and (gg) of clause (i)(II) of this 
                        subparagraph, agreements, contracts, or 
                        transactions described in clause (i) of 
                        this subparagraph shall be subject to 
                        subsection (a)(1)(B) of this section 
                        and sections 4(b), 4b, 4c(b), 4o, 6(c) 
                        and 6(d) (except to the extent that 
                        sections 6(c) and 6(d) prohibit 
                        manipulation of the market price of any 
                        commodity in interstate commerce, or 
                        for future delivery on or subject to 
                        the rules of any market), 6c, 6d, 8(a), 
                        13(a), and 13(b) if the agreements, 
                        contracts, or transactions are offered, 
                        or entered into, by a person that is 
                        registered as a futures commission 
                        merchant or retail foreign exchange 
                        dealer, or an affiliated person of a 
                        futures commission merchant registered 
                        under this Act that is not also a 
                        person described in any of item (aa), 
                        (bb), (dd), (ee), or (ff) of clause 
                        (i)(II) of this subparagraph.
                            ``(iv)(I) Notwithstanding items 
                        (cc) and (gg) of clause (i)(II), a 
                        person, unless registered in such 
                        capacity as the Commission by rule, 
                        regulation, or order shall determine 
                        and a member of a futures association 
                        registered under section 17, shall 
                        not--
                                    ``(aa) solicit or accept 
                                orders from any person that is 
                                not an eligible contract 
                                participant in connection with 
                                agreements, contracts, or 
                                transactions described in 
                                clause (i) entered into with or 
                                to be entered into with a 
                                person who is not described in 
                                item (aa), (bb), (dd), (ee), or 
                                (ff) of clause (i)(II);
                                    ``(bb) exercise 
                                discretionary trading authority 
                                or obtain written authorization 
                                to exercise discretionary 
                                trading authority over any 
                                account for or on behalf of any 
                                person that is not an eligible 
                                contract participant in 
                                connection with agreements, 
                                contracts, or transactions 
                                described in clause (i) entered 
                                into with or to be entered into 
                                with a person who is not 
                                described in item (aa), (bb), 
                                (dd), (ee), or (ff) of clause 
                                (i)(II); or
                                    ``(cc) operate or solicit 
                                funds, securities, or property 
                                for any pooled investment 
                                vehicle that is not an eligible 
                                contract participant in 
                                connection with agreements, 
                                contracts, or transactions 
                                described in clause (i) entered 
                                into with or to be entered into 
                                with a person who is not 
                                described in item (aa), (bb), 
                                (dd), (ee), or (ff) of clause 
                                (i)(II).
                            ``(II) Subclause (I) of this clause 
                        shall not apply to--
                                    ``(aa) any person described 
                                in any of item (aa), (bb), 
                                (dd), (ee), or (ff) of clause 
                                (i)(II);
                                    ``(bb) any such person's 
                                associated persons; or
                                    ``(cc) any person who would 
                                be exempt from registration if 
                                engaging in the same activities 
                                in connection with transactions 
                                conducted on or subject to the 
                                rules of a contract market or a 
                                derivatives transaction 
                                execution facility.
                            ``(III) Notwithstanding items (cc) 
                        and (gg) of clause (i)(II), the 
                        Commission may make, promulgate, and 
                        enforce such rules and regulations as, 
                        in the judgment of the Commission, are 
                        reasonably necessary to effectuate any 
                        of the provisions of, or to accomplish 
                        any of the purposes of, this Act in 
                        connection with the activities of 
                        persons subject to subclause (I).
                            ``(IV) Subclause (III) of this 
                        clause shall not apply to--
                                    ``(aa) any person described 
                                in any of item (aa) through 
                                (ff) of clause (i)(II);
                                    ``(bb) any such person's 
                                associated persons; or
                                    ``(cc) any person who would 
                                be exempt from registration if 
                                engaging in the same activities 
                                in connection with transactions 
                                conducted on or subject to the 
                                rules of a contract market or a 
                                derivatives transaction 
                                execution facility.
                            ``(v) Notwithstanding items (cc) 
                        and (gg) of clause (i)(II), the 
                        Commission may make, promulgate, and 
                        enforce such rules and regulations as, 
                        in the judgment of the Commission, are 
                        reasonably necessary to effectuate any 
                        of the provisions of, or to accomplish 
                        any of the purposes of, this Act in 
                        connection with agreements, contracts, 
                        or transactions described in clause (i) 
                        which are offered, or entered into, by 
                        a person described in item (cc) or (gg) 
                        of clause (i)(II).
                    ``(C)(i)(I) This subparagraph shall apply 
                to any agreement, contract, or transaction in 
                foreign currency that is--
                                    ``(aa) offered to, or 
                                entered into with, a person 
                                that is not an eligible 
                                contract participant (except 
                                that this subparagraph shall 
                                not apply if the counterparty, 
                                or the person offering to be 
                                the counterparty, of the person 
                                that is not an eligible 
                                contract participant is a 
                                person described in any of item 
                                (aa), (bb), (dd), (ee), or (ff) 
                                of subparagraph (B)(i)(II)); 
                                and
                                    ``(bb) offered, or entered 
                                into, on a leveraged or 
                                margined basis, or financed by 
                                the offeror, the counterparty, 
                                or a person acting in concert 
                                with the offeror or 
                                counterparty on a similar 
                                basis.
                    ``(II) Subclause (I) of this clause shall 
                not apply to--
                            ``(aa) a security that is not a 
                        security futures product; or
                            ``(bb) a contract of sale that--
                                    ``(AA) results in actual 
                                delivery within 2 days; or
                                    ``(BB) creates an 
                                enforceable obligation to 
                                deliver between a seller and 
                                buyer that have the ability to 
                                deliver and accept delivery, 
                                respectively, in connection 
                                with their line of business.
                    ``(ii)(I) Agreements, contracts, or 
                transactions described in clause (i) of this 
                subparagraph shall be subject to subsection 
                (a)(1)(B) of this section and sections 4(b), 
                4b, 4c(b), 4o, 6(c) and 6(d) (except to the 
                extent that sections 6(c) and 6(d) prohibit 
                manipulation of the market price of any 
                commodity in interstate commerce, or for future 
                delivery on or subject to the rules of any 
                market), 6c, 6d, 8(a), 13(a), and 13(b).
                    ``(II) Subclause (I) of this clause shall 
                not apply to--
                            ``(aa) any person described in any 
                        of item (aa), (bb), (dd), (ee), or (ff) 
                        of subparagraph (B)(i)(II); or
                            ``(bb) any such person's associated 
                        persons.
                    ``(III) The Commission may make, 
                promulgate, and enforce such rules and 
                regulations as, in the judgment of the 
                Commission, are reasonably necessary to 
                effectuate any of the provisions of or to 
                accomplish any of the purposes of this Act in 
                connection with agreements, contracts, or 
                transactions described in clause (i) of this 
                subparagraph if the agreements, contracts, or 
                transactions are offered, or entered into, by a 
                person that is not described in item (aa) 
                through (ff) of subparagraph (B)(i)(II).
                    ``(iii)(I) A person, unless registered in 
                such capacity as the Commission by rule, 
                regulation, or order shall determine and a 
                member of a futures association registered 
                under section 17, shall not--
                            ``(aa) solicit or accept orders 
                        from any person that is not an eligible 
                        contract participant in connection with 
                        agreements, contracts, or transactions 
                        described in clause (i) of this 
                        subparagraph entered into with or to be 
                        entered into with a person who is not 
                        described in item (aa), (bb), (dd), 
                        (ee), or (ff) of subparagraph 
                        (B)(i)(II);
                            ``(bb) exercise discretionary 
                        trading authority or obtain written 
                        authorization to exercise written 
                        trading authority over any account for 
                        or on behalf of any person that is not 
                        an eligible contract participant in 
                        connection with agreements, contracts, 
                        or transactions described in clause (i) 
                        of this subparagraph entered into with 
                        or to be entered into with a person who 
                        is not described in item (aa), (bb), 
                        (dd), (ee), or (ff) of subparagraph 
                        (B)(i)(II); or
                            ``(cc) operate or solicit funds, 
                        securities, or property for any pooled 
                        investment vehicle that is not an 
                        eligible contract participant in 
                        connection with agreements, contracts, 
                        or transactions described in clause (i) 
                        of this subparagraph entered into with 
                        or to be entered into with a person who 
                        is not described in item (aa), (bb), 
                        (dd), (ee), or (ff) of subparagraph 
                        (B)(i)(II).
                    ``(II) Subclause (I) of this clause shall 
                not apply to--
                            ``(aa) any person described in item 
                        (aa), (bb), (dd), (ee), or (ff) of 
                        subparagraph (B)(i)(II);
                            ``(bb) any such person's associated 
                        persons; or
                            ``(cc) any person who would be 
                        exempt from registration if engaging in 
                        the same activities in connection with 
                        transactions conducted on or subject to 
                        the rules of a contract market or a 
                        derivatives transaction execution 
                        facility.
                    ``(III) The Commission may make, 
                promulgate, and enforce such rules and 
                regulations as, in the judgment of the 
                Commission, are reasonably necessary to 
                effectuate any of the provisions of, or to 
                accomplish any of the purposes of, this Act in 
                connection with the activities of persons 
                subject to subclause (I).
                    ``(IV) Subclause (III) of this clause shall 
                not apply to--
                            ``(aa) any person described in item 
                        (aa) through (ff) of subparagraph 
                        (B)(i)(II);
                            ``(bb) any such person's associated 
                        persons; or
                            ``(cc) any person who would be 
                        exempt from registration if engaging in 
                        the same activities in connection with 
                        transactions conducted on or subject to 
                        the rules of a contract market or a 
                        derivatives transaction execution 
                        facility.
                    ``(iv) Sections 4(b) and 4b shall apply to 
                any agreement, contract, or transaction 
                described in clause (i) of this subparagraph as 
                if the agreement, contract, or transaction were 
                a contract of sale of a commodity for future 
                delivery.
                    ``(v) This subparagraph shall not be 
                construed to limit any jurisdiction that the 
                Commission may otherwise have under any other 
                provision of this Act over an agreement, 
                contract, or transaction that is a contract of 
                sale of a commodity for future delivery.
                    ``(vi) This subparagraph shall not be 
                construed to limit any jurisdiction that the 
                Commission or the Securities and Exchange 
                Commission may otherwise have under any other 
                provision of this Act with respect to security 
                futures products and persons effecting 
                transactions in security futures products.''.
    (b) Effective Date.--The following provisions of the 
Commodity Exchange Act, as amended by subsection (a) of this 
section, shall be effective 120 days after the date of the 
enactment of this Act or at such other time as the Commodity 
Futures Trading Commission shall determine:
            (1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and 
        (C)(iii) of section 2(c)(2).
            (2) The provisions of section 2(c)(2)(B)(i)(II)(cc) 
        that set forth adjusted net capital requirements, and 
        the provisions of such section that require a futures 
        commission merchant to be primarily or substantially 
        engaged in certain business activities.

SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO-PRINCIPAL 
                    TRANSACTIONS.

    Section 4b of the Commodity Exchange Act (7 U.S.C. Section 
6b) is amended--
            (1) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively; and
            (2) by striking all through the end of subsection 
        (a) and inserting the following:

``SEC. 4B. CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD.

    ``(a) Unlawful Actions.--It shall be unlawful--
            ``(1) for any person, in or in connection with any 
        order to make, or the making of, any contract of sale 
        of any commodity in interstate commerce or for future 
        delivery that is made, or to be made, on or subject to 
        the rules of a designated contract market, for or on 
        behalf of any other person; or
            ``(2) for any person, in or in connection with any 
        order to make, or the making of, any contract of sale 
        of any commodity for future delivery, or other 
        agreement, contract, or transaction subject to 
        paragraphs (1) and (2) of section 5a(g), that is made, 
        or to be made, for or on behalf of, or with, any other 
        person, other than on or subject to the rules of a 
        designated contract market--
                    ``(A) to cheat or defraud or attempt to 
                cheat or defraud the other person;
                    ``(B) willfully to make or cause to be made 
                to the other person any false report or 
                statement or willfully to enter or cause to be 
                entered for the other person any false record;
                    ``(C) willfully to deceive or attempt to 
                deceive the other person by any means 
                whatsoever in regard to any order or contract 
                or the disposition or execution of any order or 
                contract, or in regard to any act of agency 
                performed, with respect to any order or 
                contract for or, in the case of paragraph (2), 
                with the other person; or
                    ``(D)(i) to bucket an order if the order is 
                either represented by the person as an order to 
                be executed, or is required to be executed, on 
                or subject to the rules of a designated 
                contract market; or
                    ``(ii) to fill an order by offset against 
                the order or orders of any other person, or 
                willfully and knowingly and without the prior 
                consent of the other person to become the buyer 
                in respect to any selling order of the other 
                person, or become the seller in respect to any 
                buying order of the other person, if the order 
                is either represented by the person as an order 
                to be executed, or is required to be executed, 
                on or subject to the rules of a designated 
                contract market unless the order is executed in 
                accordance with the rules of the designated 
                contract market.
    ``(b) Clarification.--Subsection (a)(2) of this section 
shall not obligate any person, in or in connection with a 
transaction in a contract of sale of a commodity for future 
delivery, or other agreement, contract or transaction subject 
to paragraphs (1) and (2) of section 5a(g), with another 
person, to disclose to the other person nonpublic information 
that may be material to the market price, rate, or level of the 
commodity or transaction, except as necessary to make any 
statement made to the other person in or in connection with the 
transaction not misleading in any material respect.''.

SEC. 13103. CRIMINAL AND CIVIL PENALTIES.

    (a) Enforcement Powers of the Commission.--Section 6(c) of 
the Commodity Exchange Act (7 U.S.C. 9, 15) is amended in 
clause (3) of the 10th sentence--
            (1) by inserting ``(A)'' after ``assess such 
        person''; and
            (2) by inserting after ``each such violation'' the 
        following: ``, or (B) in any case of manipulation or 
        attempted manipulation in violation of this subsection, 
        subsection (d) of this section, or section 9(a)(2), a 
        civil penalty of not more than the greater of 
        $1,000,000 or triple the monetary gain to the person 
        for each such violation,''.
    (b) Nonenforcement of Rules of Government or Other 
Violations.--Section 6b of such Act (7 U.S.C. 13a) is amended--
            (1) in the first sentence, by inserting before the 
        period at the end the following: ``, or, in any case of 
        manipulation or attempted manipulation in violation of 
        section 6(c), 6(d), or 9(a)(2), a civil penalty of not 
        more than $1,000,000 for each such violation''; and
            (2) in the second sentence, by inserting before the 
        period at the end the following: ``, except that if the 
        failure or refusal to obey or comply with the order 
        involved any offense under section 9(a)(2), the 
        registered entity, director, officer, agent, or 
        employee shall be guilty of a felony and, on 
        conviction, shall be subject to penalties under section 
        9(a)(2)''.
    (c) Action to Enjoin or Restrain Violations.--Section 6c(d) 
of such Act (7 U.S.C. 13a-1(d)) is amended by striking all that 
precedes paragraph (2) and inserting the following:
    ``(d) Civil Penalties.--
            ``(1) In general.--In any action brought under this 
        section, the Commission may seek and the court shall 
        have jurisdiction to impose, on a proper showing, on 
        any person found in the action to have committed any 
        violation--
                    ``(A) a civil penalty in the amount of not 
                more than the greater of $100,000 or triple the 
                monetary gain to the person for each violation; 
                or
                    ``(B) in any case of manipulation or 
                attempted manipulation in violation of section 
                6(c), 6(d), or 9(a)(2), a civil penalty in the 
                amount of not more than the greater of 
                $1,000,000 or triple the monetary gain to the 
                person for each violation.''.
    (d) Violations Generally.--Section 9(a) of such Act (7 
U.S.C. 13(a)) is amended in the matter preceding paragraph 
(1)--
            (1) by striking ``(or $500,000 in the case of a 
        person who is an individual)''; and
            (2) by striking ``five years'' and inserting ``10 
        years''.

SEC. 13104. AUTHORIZATION OF APPROPRIATIONS.

    Section 12(d) of the Commodity Exchange Act (7 U.S.C. 
16(d)) is amended to read as follows:
    ``(d) There are authorized to be appropriated such sums as 
are necessary to carry out this Act for each of the fiscal 
years 2008 through 2013.''.

SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 
6a(e)) is amended--
            (1) by inserting ``or certified by a registered 
        entity pursuant to section 5c(c)(1)'' after ``approved 
        by the Commission'' ; and
            (2) by striking ``section 9(c)'' and inserting 
        ``section 9(a)(5)''.
    (b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 
6f(c)(4)(B)(i)) is amended by striking ``compiled'' and 
inserting ``complied''.
    (c) Section 4k of such Act (7 U.S.C. 6k) is amended by 
redesignating the second paragraph (5) as paragraph (6).
    (d) The Commodity Exchange Act is amended--
            (1) by redesignating the first section 4p (7 U.S.C. 
        6o-1), as added by section 121 of the Commodity Futures 
        Modernization Act of 2000, as section 4q; and
            (2) by moving such section to after the second 
        section 4p, as added by section 206 of Public Law 93-
        446.
    (e) Subsections (a)(1) and (d)(1) of section 5c of such Act 
(7 U.S.C. 7a-2(a)(1), (d)(1)) are each amended by striking 
``5b(d)(2)'' and inserting ``5b(c)(2)''.
    (f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a-2(f), 
21(r)) are each amended by striking ``4d(3)'' and inserting 
``4d(c)''.
    (g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is 
amended in the matter following subparagraph (B)--
            (1) by striking ``commenced'' in the 2nd place it 
        appears; and
            (2) by inserting ``commenced'' after ``in a 
        judicial proceeding''.
    (h) Section 9 of such Act (7 U.S.C. 13) is amended--
            (1) in subsection (f)(1), by striking the period 
        and inserting ``; or''; and
            (2) by redesignating subsection (f) as subsection 
        (e).
    (i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) is 
amended by striking ``5b(b)(1)(E)'' and inserting 
``5b(c)(2)(H)''.
    (j) Section 1a(33)(A) of such Act (7 U.S.C. 1a(33)(A)) is 
amended by striking ``transactions'' and all that follows and 
inserting ``transactions--
                            ``(i) by accepting bids or offers 
                        made by other participants that are 
                        open to multiple partipants in the 
                        facility or system; or
                            ``(ii) through the interaction of 
                        multiple bids or multiple offers within 
                        a system with a pre-determined non-
                        discretionary automated trade matching 
                        and execution algorithm.''.
    (k) Section 14(d) of such Act (7 U.S.C. 18(d)) is amended--
            (1) by inserting ``(1)'' before ``If''; and
            (2) by adding after and below the end the 
        following:
            ``(2) A reparation award shall be directly 
        enforceable in district court as if it were a judgment 
        pursuant to section 1963 of title 28, United States 
        Code. This paragraph shall operate retroactively from 
        the effective date of its enactment, and shall apply to 
        all reparation awards for which a proceeding described 
        in paragraph (1) is commenced within 3 years of the 
        date of the Commission's order.''.

SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES.

    (a) The Secretary of the Treasury, the Chairman of the 
Board of Governors of the Federal Reserve System, the Chairman 
of the Securities and Exchange Commission, and the Chairman of 
the Commodity Futures Trading Commission shall work to ensure 
that the Securities and Exchange Commission (SEC), the 
Commodity Futures Trading Commission (CFTC), or both, as 
appropriate, have taken the actions required under subsection 
(b).
    (b) The SEC, the CFTC, or both, as appropriate, shall take 
action under their existing authorities to permit--
            (1) by September 30, 2009, risk-based portfolio 
        margining for security options and security futures 
        products (as defined in section 1a(32) of the Commodity 
        Exchange Act); and
            (2) by June 30, 2009, the trading of futures on 
        certain security indexes by resolving issues related to 
        foreign security indexes.

Subtitle B--Significant Price Discovery Contracts on Exempt Commercial 
                                Markets

SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS.

    (a) Definitions.--Section 1a of the Commodity Exchange Act 
(7 U.S.C. 1a) is amended--
            (1) by redesignating paragraph (33) as paragraph 
        (34); and
            (2) by inserting after paragraph (32) the 
        following:
            ``(33) Significant price discovery contract.--The 
        term `significant price discovery contract' means an 
        agreement, contract, or transaction subject to section 
        2(h)(7).''.
    (b) Standards Applicable to Significant Price Discovery 
Contracts.--Section 2(h) of such Act (7 U.S.C. 2(h)) is amended 
by adding at the end the following:
            ``(7) Significant price discovery contracts.--
                    ``(A) In general.--An agreement, contract, 
                or transaction conducted in reliance on the 
                exemption in paragraph (3) shall be subject to 
                the provisions of subparagraphs (B) through 
                (D), under such rules and regulations as the 
                Commission shall promulgate, provided that the 
                Commission determines, in its discretion, that 
                the agreement, contract, or transaction 
                performs a significant price discovery function 
                as described in subparagraph (B).
                    ``(B) Significant price discovery 
                determination.--In making a determination 
                whether an agreement, contract, or transaction 
                performs a significant price discovery 
                function, the Commission shall consider, as 
                appropriate:
                            ``(i) Price linkage.--The extent to 
                        which the agreement, contract, or 
                        transaction uses or otherwise relies on 
                        a daily or final settlement price, or 
                        other major price parameter, of a 
                        contract or contracts listed for 
                        trading on or subject to the rules of a 
                        designated contract market or a 
                        derivatives transaction execution 
                        facility, or a significant price 
                        discovery contract traded on an 
                        electronic trading facility, to value a 
                        position, transfer or convert a 
                        position, cash or financially settle a 
                        position, or close out a position.
                            ``(ii) Arbitrage.--The extent to 
                        which the price for the agreement, 
                        contract, or transaction is 
                        sufficiently related to the price of a 
                        contract or contracts listed for 
                        trading on or subject to the rules of a 
                        designated contract market or 
                        derivatives transaction execution 
                        facility, or a significant price 
                        discovery contract or contracts trading 
                        on or subject to the rules of an 
                        electronic trading facility, so as to 
                        permit market participants to 
                        effectively arbitrage between the 
                        markets by simultaneously maintaining 
                        positions or executing trades in the 
                        contracts on a frequent and recurring 
                        basis.
                            ``(iii) Material price reference.--
                        The extent to which, on a frequent and 
                        recurring basis, bids, offers, or 
                        transactions in a commodity are 
                        directly based on, or are determined by 
                        referencing, the prices generated by 
                        agreements, contracts, or transactions 
                        being traded or executed on the 
                        electronic trading facility.
                            ``(iv) Material liquidity.--The 
                        extent to which the volume of 
                        agreements, contracts, or transactions 
                        in the commodity being traded on the 
                        electronic trading facility is 
                        sufficient to have a material effect on 
                        other agreements, contracts, or 
                        transactions listed for trading on or 
                        subject to the rules of a designated 
                        contract market, a derivatives 
                        transaction execution facility, or an 
                        electronic trading facility operating 
                        in reliance on the exemption in 
                        paragraph (3).
                            ``(v) Other material factors.--Such 
                        other material factors as the 
                        Commission specifies by rule as 
                        relevant to determine whether an 
                        agreement, contract, or transaction 
                        serves a significant price discovery 
                        function.
                    ``(C) Core principles applicable to 
                significant price discovery contracts.--
                            ``(i) In general.--An electronic 
                        trading facility on which significant 
                        price discovery contracts are traded or 
                        executed shall, with respect to those 
                        contracts, comply with the core 
                        principles specified in this 
                        subparagraph.
                            ``(ii) Core principles.--The 
                        electronic trading facility shall have 
                        reasonable discretion (including 
                        discretion to account for differences 
                        between cleared and uncleared 
                        significant price discovery contracts) 
                        in establishing the manner in which it 
                        complies with the following core 
                        principles:
                                    ``(I) Contracts not readily 
                                susceptible to manipulation.--
                                The electronic trading facility 
                                shall list only significant 
                                price discovery contracts that 
                                are not readily susceptible to 
                                manipulation.
                                    ``(II) Monitoring of 
                                trading.--The electronic 
                                trading facility shall monitor 
                                trading in significant price 
                                discovery contracts to prevent 
                                market manipulation, price 
                                distortion, and disruptions of 
                                the delivery or cash-settlement 
                                process through market 
                                surveillance, compliance, and 
                                disciplinary practices and 
                                procedures, including methods 
                                for conducting real-time 
                                monitoring of trading and 
                                comprehensive and accurate 
                                trade reconstructions.
                                    ``(III) Ability to obtain 
                                information.--The electronic 
                                trading facility shall--
                                            ``(aa) establish 
                                        and enforce rules that 
                                        will allow the 
                                        electronic trading 
                                        facility to obtain any 
                                        necessary information 
                                        to perform any of the 
                                        functions described in 
                                        this subparagraph;
                                            ``(bb) provide the 
                                        information to the 
                                        Commission upon 
                                        request; and
                                            ``(cc) have the 
                                        capacity to carry out 
                                        such international 
                                        information-sharing 
                                        agreements as the 
                                        Commission may require.
                                    ``(IV) Position limitations 
                                or accountability.--The 
                                electronic trading facility 
                                shall adopt, where necessary 
                                and appropriate, position 
                                limitations or position 
                                accountability for speculators 
                                in significant price discovery 
                                contracts, taking into account 
                                positions in other agreements, 
                                contracts, and transactions 
                                that are treated by a 
                                derivatives clearing 
                                organization, whether 
                                registered or not registered, 
                                as fungible with such 
                                significant price discovery 
                                contracts to reduce the 
                                potential threat of market 
                                manipulation or congestion, 
                                especially during trading in 
                                the delivery month.
                                    ``(V) Emergency 
                                authority.--The electronic 
                                trading facility shall adopt 
                                rules to provide for the 
                                exercise of emergency 
                                authority, in consultation or 
                                cooperation with the 
                                Commission, where necessary and 
                                appropriate, including the 
                                authority--
                                            ``(aa) to liquidate 
                                        open positions in a 
                                        significant price 
                                        discovery contract; and
                                            ``(bb) to suspend 
                                        or curtail trading in a 
                                        significant price 
                                        discovery contract.
                                    ``(VI) Daily publication of 
                                trading information.--The 
                                electronic trading facility 
                                shall make public daily 
                                information on price, trading 
                                volume, and other trading data 
                                to the extent appropriate for 
                                significant price discovery 
                                contracts
                                    ``(VII) Compliance with 
                                rules.--The electronic trading 
                                facility shall monitor and 
                                enforce compliance with any 
                                rules of the electronic trading 
                                facility applicable to 
                                significant price discovery 
                                contracts, including the terms 
                                and conditions of the contracts 
                                and any limitations on access 
                                to the electronic trading 
                                facility with respect to the 
                                contracts.
                                    ``(VIII) Conflict of 
                                interest.--The electronic 
                                trading facility, with respect 
                                to significant price discovery 
                                contracts, shall--
                                            ``(aa) establish 
                                        and enforce rules to 
                                        minimize conflicts of 
                                        interest in its 
                                        decision-making 
                                        process; and
                                            ``(bb) establish a 
                                        process for resolving 
                                        the conflicts of 
                                        interest.
                                    ``(IX) Antitrust 
                                considerations.--Unless 
                                necessary or appropriate to 
                                achieve the purposes of this 
                                Act, the electronic trading 
                                facility, with respect to 
                                significant price discovery 
                                contracts, shall endeavor to 
                                avoid--
                                            ``(aa) adopting any 
                                        rules or taking any 
                                        actions that result in 
                                        any unreasonable 
                                        restraints of trade; or
                                            ``(bb) imposing any 
                                        material 
                                        anticompetitive burden 
                                        on trading on the 
                                        electronic trading 
                                        facility.
                    ``(D) Implementation.--
                            ``(i) Clearing.--The Commission 
                        shall take into consideration 
                        differences between cleared and 
                        uncleared significant price discovery 
                        contracts when reviewing the 
                        implementation of the core principles 
                        by an electronic trading facility.
                            ``(ii) Review.--As part of the 
                        Commission's continual monitoring and 
                        surveillance activities, the Commission 
                        shall, not less frequently than 
                        annually, evaluate, as appropriate, all 
                        the agreements, contracts, or 
                        transactions conducted on an electronic 
                        trading facility in reliance on the 
                        exemption provided in paragraph (3) to 
                        determine whether they serve a 
                        significant price discovery function as 
                        described in subparagraph (B) of this 
                        paragraph.''.

SEC. 13202. LARGE TRADER REPORTING.

    (a) Reporting and Recordkeeping.--Section 4g(a) of the 
Commodity Exchange Act (7 U.S.C. 6g(a)) is amended by inserting 
``, and in any significant price discovery contract traded or 
executed on an electronic trading facility or any agreement, 
contract, or transaction that is treated by a derivatives 
clearing organization, whether registered or not registered, as 
fungible with a significant price discovery contract'' after 
``elsewhere''.
    (b) Reports of Positions Equal to or in Excess of Trading 
Limits.--Section 4i of such Act (7 U.S.C. 6i) is amended--
            (1) by inserting ``, or any significant price 
        discovery contract traded or executed on an electronic 
        trading facility or any agreement, contract, or 
        transaction that is treated by a derivatives clearing 
        organization, whether registered or not registered, as 
        fungible with a significant price discovery contract'' 
        after ``subject to the rules of any contract market or 
        derivatives transaction execution facility''; and
            (2) in the matter following paragraph (2), by 
        inserting ``or electronic trading facility'' after 
        ``subject to the rules of any other board of trade''.

SEC. 13203. CONFORMING AMENDMENTS.

    (a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7 
U.S.C. 1a(12)(A)(x)) is amended by inserting ``(other than an 
electronic trading facility with respect to a significant price 
discovery contract)'' after ``registered entity''.
    (b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is 
amended--
            (1) in subparagraph (C), by striking ``and'' at the 
        end;
            (2) in subparagraph (D), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) with respect to a contract that the 
                Commission determines is a significant price 
                discovery contract, any electronic trading 
                facility on which the contract is executed or 
                traded.''.
    (c) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is 
amended by inserting after ``future delivery'' the following: 
``(including significant price discovery contracts)''.
    (d) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is 
amended by striking ``paragraph (4)'' and inserting 
``paragraphs (4) and (7)''.
    (e) Section 2(h)(4) of such Act (7 U.S.C. 2(h)(4)) is 
amended--
            (1) in subparagraph (B), by inserting ``and, for a 
        significant price discovery contract, requiring large 
        trader reporting,'' after ``proscribing fraud'';
            (2) by striking ``and'' at the end of subparagraph 
        (C); and
            (3) by striking subparagraph (D) and inserting the 
        following:
                    ``(D) such rules, regulations, and orders 
                as the Commission may issue to ensure timely 
                compliance with any of the provisions of this 
                Act applicable to a significant price discovery 
                contract traded on or executed on any 
                electronic trading facility; and
                    ``(E) such other provisions of this Act as 
                are applicable by their terms to significant 
                price discovery contracts or to registered 
                entities or electronic trading facilities with 
                respect to significant price discovery 
                contracts.''.
    (f) Section 2(h)(5)(B)(iii)(I) of such Act (7 U.S.C. 
2(h)(5)(B)(iii)(I)) is amended by inserting ``or to make the 
determination described in subparagraph (B) of paragraph (7)'' 
after ``paragraph (4)''.
    (g) Section 4a of such Act (7 U.S.C. 6a) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by inserting ``, 
                or on electronic trading facilities with 
                respect to a significant price discovery 
                contract'' after ``derivatives transaction 
                execution facilities''; and
                    (B) in the second sentence, by inserting 
                ``, or on an electronic trading facility with 
                respect to a significant price discovery 
                contract,'' after ``derivatives transaction 
                execution facility''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``or 
                electronic trading facility with respect to a 
                significant price discovery contract'' after 
                ``facility or facilities''; and
                    (B) in paragraph (2), by inserting ``or 
                electronic trading facility with respect to a 
                significant price discovery contract'' after 
                ``derivatives transaction execution facility''; 
                and
            (3) in subsection (e)--
                    (A) in the first sentence--
                            (i) by inserting ``or by any 
                        electronic trading facility'' after 
                        ``registered by the Commission'';
                            (ii) by inserting ``or on an 
                        electronic trading facility'' after 
                        ``derivatives transaction execution 
                        facility'' the second place it appears; 
                        and
                            (iii) by inserting ``or electronic 
                        trading facility'' before ``or such 
                        board of trade'' each place it appears; 
                        and
                    (B) in the second sentence, by inserting 
                ``or electronic trading facility with respect 
                to a significant price discovery contract'' 
                after ``registered by the Commission''.
    (h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is 
amended--
            (1) by redesignating paragraphs (4) through (9) as 
        paragraphs (5) through (10); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Position limitations or accountability.--To 
        reduce the potential threat of market manipulation or 
        congestion, especially during trading in the delivery 
        month, the derivatives transaction execution facility 
        shall adopt position limits or position accountability 
        for speculators, where necessary and appropriate for a 
        contract, agreement or transaction with an underlying 
        commodity that has a physically deliverable supply.''.
    (i) Section 5c(a) of such Act (7 U.S.C. 7a-2(a)) is amended 
in paragraph (1) by inserting ``, and section 2(h)(7) with 
respect to significant price discovery contracts,'' after ``, 
and 5b(d)(2)''.
    (j) Section 5c(b) of such Act (7 U.S.C. 7a-2(b)) is 
amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) In general.--A contract market, derivatives 
        transaction execution facility, or electronic trading 
        facility with respect to a significant price discovery 
        contract may comply with any applicable core principle 
        through delegation of any relevant function to a 
        registered futures association or a registered entity 
        that is not an electronic trading facility.'';
            (2) in paragraph (2), by striking ``contract market 
        or derivatives transaction execution facility'' and 
        inserting ``contract market, derivatives transaction 
        execution facility, or electronic trading facility''; 
        and
            (3) in paragraph (3), by striking ``contract market 
        or derivatives transaction execution facility'' each 
        place it appears and inserting ``contract market, 
        derivatives transaction execution facility, or 
        electronic trading facility''.
    (k) Section 5c(d)(1) of such Act (7 U.S.C. 7a-2(d)(1)) is 
amended by inserting ``or 2(h)(7)(C) with respect to a 
significant price discovery contract traded or executed on an 
electronic trading facility,'' after ``5b(d)(2)''.
    (l) Section 5e of such Act (7 U.S.C. 7b) is amended by 
inserting ``, or revocation of the right of an electronic 
trading facility to rely on the exemption set forth in section 
2(h)(3) with respect to a significant price discovery 
contract,'' after ``revocation of designation as a registered 
entity''.
    (m) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 
8(b)) is amended by striking the first sentence and all that 
follows through ``hearing on the record: Provided,'' and 
inserting the following:
    ``The Commission is authorized to suspend for a period not 
to exceed 6 months or to revoke the designation or registration 
of any contract market or derivatives transaction execution 
facility, or to revoke the right of an electronic trading 
facility to rely on the exemption set forth in section 2(h)(3) 
with respect to a significant price discovery contract, on a 
showing that the contract market or derivatives transaction 
execution facility is not enforcing or has not enforced its 
rules of government, made a condition of its designation or 
registration as set forth in sections 5 through 5b or section 
5f, or that the contract market or derivatives transaction 
execution facility or electronic trading facility, or any 
director, officer, agent, or employee thereof, otherwise is 
violating or has violated any of the provisions of this Act or 
any of the rules, regulations, or orders of the Commission 
thereunder. Such suspension or revocation shall only be made 
after a notice to the officers of the contract market or 
derivatives transaction execution facility or electronic 
trading facility affected and upon a hearing on the record: 
Provided,''.
    (n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is 
amended by inserting ``section 2(h)(7) or'' before ``sections 
5''.

SEC. 13204. EFFECTIVE DATE.

    (a) In General.--Except as provided in this section, this 
subtitle shall become effective on the date of enactment of 
this Act.
    (b) Significant Price Discovery Standards Rulemaking.--
            (1) The Commodity Futures Trading Commission 
        shall--
                    (A) not later than 180 days after the date 
                of the enactment of this Act, issue a proposed 
                rule regarding the implementation of section 
                2(h)(7) of the Commodity Exchange Act; and
                    (B) not later than 270 days after the date 
                of enactment of this Act, issue a final rule 
                regarding the implementation.
            (2) In its rulemaking pursuant to paragraph (1) of 
        this subsection, the Commission shall include the 
        standards, terms, and conditions under which an 
        electronic trading facility will have the 
        responsibility to notify the Commission that an 
        agreement, contract, or transaction conducted in 
        reliance on the exemption provided in section 2(h)(3) 
        of the Commodity Exchange Act may perform a price 
        discovery function.
    (c) Significant Price Discovery Determinations.--With 
respect to any electronic trading facility operating on the 
effective date of the final rule issued pursuant to subsection 
(b)(1), the Commission shall complete a review of the 
agreements, contracts, and transactions of the facility not 
later than 180 days after that effective date to determine 
whether any such agreement, contract, or transaction performs a 
significant price discovery function.

                        TITLE XIV--MISCELLANEOUS

   Subtitle A--Socially Disadvantaged Producers and Limited Resource 
                               Producers

SEC. 14001. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF AGRICULTURE ON 
                    INDIAN RESERVATIONS.

    Section 2501(g)(1) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended--
            (1) in the first sentence--
                    (A) by striking ``Agricultural 
                Stabilization and Conservation Service, Soil 
                Conservation Service, and Farmers Home 
                Administration offices'' and inserting ``Farm 
                Service Agency and Natural Resources 
                Conservation Service''; and
                    (B) by inserting ``where there has been a 
                need demonstrated'' after ``include''; and
            (2) by striking the second sentence.

SEC. 14002. FORECLOSURE.

    (a) In General.--Section 331A of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1981a) is amended:
            (1) by inserting ``(a)'' after ``Sec. 331A.''; and
            (2) by adding at the end the following:
    ``(b) Moratorium.--
            ``(1) In general.--Subject to the other provisions 
        of this subsection, effective beginning on the date of 
        the enactment of this subsection, there shall be in 
        effect a moratorium, with respect to farmer program 
        loans made under subtitle A, B, or C, on all 
        acceleration and foreclosure proceedings instituted by 
        the Department of Agriculture against any farmer or 
        rancher who--
                    ``(A) has pending against the Department a 
                claim of program discrimination that is 
                accepted by the Department as valid; or
                    ``(B) files a claim of program 
                discrimination that is accepted by the 
                Department as valid.
            ``(2) Waiver of interest and offsets.--During the 
        period of the moratorium, the Secretary shall waive the 
        accrual of interest and offsets on all farmer program 
        loans made under subtitle A, B, or C for which loan 
        acceleration or foreclosure proceedings have been 
        suspended under paragraph (1).
            ``(3) Termination of moratorium.--The moratorium 
        shall terminate with respect to a claim of 
        discrimination by a farmer or rancher on the earlier 
        of--
                    ``(A) the date the Secretary resolves the 
                claim; or
                    ``(B) if the farmer or rancher appeals the 
                decision of the Secretary on the claim to a 
                court of competent jurisdiction, the date that 
                the court renders a final decision on the 
                claim.
            ``(4) Failure to prevail.--If a farmer or rancher 
        does not prevail on a claim of discrimination described 
        in paragraph (1), the farmer or rancher shall be liable 
        for any interest and offsets that accrued during the 
        period that loan acceleration or foreclosure 
        proceedings have been suspended under paragraph (1).''.
    (b) Foreclosure Report.--
            (1) In general.--Not later than 1 year after the 
        date of the enactment of this Act, the Inspector 
        General of the Department of Agriculture (referred to 
        in this subsection as the ``Inspector General'') shall 
        determine whether decisions of the Department to 
        implement foreclosure proceedings with respect to 
        farmer program loans made under subtitle A, B, or C of 
        the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1922 et seq.) to socially disadvantaged farmers 
        or ranchers during the 5-year period preceding the date 
        of the enactment of this Act were consistent and in 
        conformity with the applicable laws (including 
        regulations) governing loan foreclosures.
            (2) Report.--Not later than 1 year after the date 
        of the enactment of this Act, the Inspector General 
        shall submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a 
        report that describes the determination of the 
        Inspector General under paragraph (1).

SEC. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM CERTAIN 
                    DEPARTMENT OF AGRICULTURE AGENCIES.

    Section 2501A of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279-1) is amended by adding at the 
end the following new subsection:
    ``(e) Receipt for Service or Denial of Service.--In any 
case in which a current or prospective producer or landowner, 
in person or in writing, requests from the Farm Service Agency, 
the Natural Resources Conservation Service, or an agency of the 
Rural Development Mission Area any benefit or service offered 
by the Department to agricultural producers or landowners and, 
at the time of the request, also requests a receipt, the 
Secretary shall issue, on the date of the request, a receipt to 
the producer or landowner that contains--
            ``(1) the date, place, and subject of the request; 
        and
            ``(2) the action taken, not taken, or recommended 
        to the producer or landowner.''.

SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 
                    DISADVANTAGED FARMERS OR RANCHERS.

    (a) Outreach and Technical Assistance Program.--
            (1) Program requirements.--Paragraph (2) of section 
        2501(a) of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (7 U.S.C. 2279(a)) is amended to read 
        as follows:
            ``(2) Requirements.--The outreach and technical 
        assistance program under paragraph (1) shall be used 
        exclusively--
                    ``(A) to enhance coordination of the 
                outreach, technical assistance, and education 
                efforts authorized under agriculture programs; 
                and
                    ``(B) to assist the Secretary in--
                            ``(i) reaching current and 
                        prospective socially disadvantaged 
                        farmers or ranchers in a linguistically 
                        appropriate manner; and
                            ``(ii) improving the participation 
                        of those farmers and ranchers in 
                        Department programs, as reported under 
                        section 2501A.''.
            (2) Grants and contracts under program.--Section 
        2501(a)(3) of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (7 U.S.C. 2279(a)(3)) is amended--
                    (A) in subparagraph (A), by striking 
                ``entity to provide information'' and inserting 
                ``entity that has demonstrated an ability to 
                carry out the requirements described in 
                paragraph (2) to provide outreach''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) Report.--The Secretary shall submit 
                to the Committee on Agriculture of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate, and make publicly available, an annual 
                report that includes a list of the following:
                            ``(i) The recipients of funds made 
                        available under the program.
                            ``(ii) The activities undertaken 
                        and services provided.
                            ``(iii) The number of current and 
                        prospective socially disadvantaged 
                        farmers or ranchers served and outcomes 
                        of such service.
                            ``(iv) The problems and barriers 
                        identified by entities in trying to 
                        increase participation by current and 
                        prospective socially disadvantaged 
                        farmers or ranchers.''.
            (3) Funding and limitation on use of funds.--
        Section 2501(a)(4) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 
        2279(a)(4)) is amended--
                    (A) by striking subparagraph (A) and 
                inserting the following new subparagraph:
                    ``(A) In general.--Of the funds of the 
                Commodity Credit Corporation, the Secretary 
                shall make available to carry out this 
                section--
                            ``(i) $15,000,000 for fiscal year 
                        2009; and
                            ``(ii) $20,000,000 for each of 
                        fiscal years 2010 through 2012.''.
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(C) Limitation on use of funds for 
                administrative expenses.--Not more than 5 
                percent of the amounts made available under 
                subparagraph (A) for a fiscal year may be used 
                for expenses related to administering the 
                program under this section.''.
    (b) Eligible Entity Defined.--Section 2501(e)(5)(A)(ii) of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 2279(e)(5)(A)(ii)) is amended by striking ``work with 
socially disadvantaged farmers or ranchers during the 2-year 
period'' and inserting ``work with, and on behalf of, socially 
disadvantaged farmers or ranchers during the 3-year period''.

SEC. 14005. ACCURATE DOCUMENTATION IN THE CENSUS OF AGRICULTURE AND 
                    CERTAIN STUDIES.

    Section 2501 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279) is amended by adding at the 
end the following:
    ``(h) Accurate Documentation.--The Secretary shall ensure, 
to the maximum extent practicable, that the Census of 
Agriculture and studies carried out by the Economic Research 
Service accurately document the number, location, and economic 
contributions of socially disadvantaged farmers or ranchers in 
agricultural production.''.

SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED 
                    FARMERS OR RANCHERS.

    Section 2501A of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279-1) is amended by striking 
subsection (c) and inserting the following new subsections:
    ``(c) Compilation of Program Participation Data.--
            ``(1) Annual requirement.--For each county and 
        State in the United States, the Secretary of 
        Agriculture (referred to in this section as the 
        `Secretary') shall annually compile program application 
        and participation rate data regarding socially 
        disadvantaged farmers or ranchers by computing for each 
        program of the Department of Agriculture that serves 
        agricultural producers and landowners--
                    ``(A) raw numbers of applicants and 
                participants by race, ethnicity, and gender, 
                subject to appropriate privacy protections, as 
                determined by the Secretary; and
                    ``(B) the application and participation 
                rate, by race, ethnicity, and gender, as a 
                percentage of the total participation rate of 
                all agricultural producers and landowners.
            ``(2) Authority to collect data.--The heads of the 
        agencies of the Department of Agriculture shall collect 
        and transmit to the Secretary any data, including data 
        on race, gender, and ethnicity, that the Secretary 
        determines to be necessary to carry out paragraph (1).
            ``(3) Report.--Using the technologies and systems 
        of the National Agricultural Statistics Service, the 
        Secretary shall compile and present the data compiled 
        under paragraph (1) for each program described in that 
        paragraph in a manner that includes the raw numbers and 
        participation rates for--
                    ``(A) the entire United States;
                    ``(B) each State; and
                    ``(C) each county in each State.
            ``(4) Public availability of report.--The Secretary 
        shall maintain and make readily available to the 
        public, via website and otherwise in electronic and 
        paper form, the report described in paragraph (3).
    ``(d) Limitations on Use of Data.--
            ``(1) Privacy protections.--In carrying out this 
        section, the Secretary shall not disclose the names or 
        individual data of any program participant.
            ``(2) Authorized uses.--The data under this section 
        shall be used exclusively for the purposes described in 
        subsection (a).
            ``(3) Limitation.--Except as otherwise provided, 
        the data under this section shall not be used for the 
        evaluation of individual applications for 
        assistance.''.

SEC. 14007. OVERSIGHT AND COMPLIANCE.

    The Secretary, acting through the Assistant Secretary for 
Civil Rights of the Department of Agriculture, shall use the 
reports described in subsection (c) of section 2501A of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 2279-1), as amended by section 14006, in the conduct of 
oversight and evaluation of civil rights compliance.

SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 18 months after the date 
of the enactment of this Act, the Secretary of Agriculture 
shall establish an advisory committee, to be known as the 
``Advisory Committee on Minority Farmers'' (in this section 
referred to as the ``Committee'').
    (b) Duties.--The Committee shall provide advice to the 
Secretary on--
            (1) the implementation of section 2501 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 
        U.S.C. 2279);
            (2) methods of maximizing the participation of 
        minority farmers and ranchers in Department of 
        Agriculture programs; and
            (3) civil rights activities within the Department 
        as such activities relate to participants in such 
        programs.
    (c) Membership.--
            (1) In general.--The Committee shall be composed of 
        not more than 15 members, who shall be appointed by the 
        Secretary, and shall include--
                    (A) not less than four socially 
                disadvantaged farmers or ranchers (as defined 
                in section 2501(e)(2) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 
                2279(e)(2)));
                    (B) not less than two representatives of 
                nonprofit organizations with a history of 
                working with minority farmers and ranchers;
                    (C) not less than two civil rights 
                professionals;
                    (D) not less than two representatives of 
                institutions of higher education with 
                demonstrated experience working with minority 
                farmers and ranchers; and
                    (E) such other persons as the Secretary 
                considers appropriate.
            (2) Ex-officio members.--The Secretary may appoint 
        such employees of the Department of Agriculture as the 
        Secretary considers appropriate to serve as ex-officio 
        members of the Committee.

SEC. 14009. NATIONAL APPEALS DIVISION.

    Section 280 of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 7000) is amended--
            (1) by striking ``On the return'' and inserting the 
        following:
    ``(a) In General.--On the return''; and
            (2) by adding at the end the following:
    ``(b) Reports.--
            ``(1) In general.--Not later than 180 days after 
        the date of the enactment of this subsection, and every 
        180 days thereafter, the head of each agency shall 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate, and publish on 
        the website of the Department, a report that includes--
                    ``(A) a description of all cases returned 
                to the agency during the period covered by the 
                report pursuant to a final determination of the 
                Division;
                    ``(B) the status of implementation of each 
                final determination; and
                    ``(C) if the final determination has not 
                been implemented--
                            ``(i) the reason that the final 
                        determination has not been implemented; 
                        and
                            ``(ii) the projected date of 
                        implementation of the final 
                        determination.
            ``(2) Updates.--Each month, the head of each agency 
        shall publish on the website of the Department any 
        updates to the reports submitted under paragraph 
        (1).''.

SEC. 14010. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS, AND 
                    ACTIONS.

    Each year, the Secretary shall--
            (1) prepare a report that describes, for each 
        agency of the Department of Agriculture--
                    (A) the number of civil rights complaints 
                filed that relate to the agency, including 
                whether a complaint is a program complaint or 
                an employment complaint;
                    (B) the length of time the agency took to 
                process each civil rights complaint;
                    (C) the number of proceedings brought 
                against the agency, including the number of 
                complaints described in paragraph (1) that were 
                resolved with a finding of discrimination; and
                    (D) the number and type of personnel 
                actions taken by the agency following 
                resolution of civil rights complaints;
            (2) submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a 
        copy of the report; and
            (3) make the report available to the public by 
        posting the report on the website of the Department.

SEC. 14011. SENSE OF CONGRESS RELATING TO CLAIMS BROUGHT BY SOCIALLY 
                    DISADVANTAGED FARMERS OR RANCHERS.

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

SEC. 14012. DETERMINATION ON MERITS OF PIGFORD CLAIMS.

    (a) Definitions.--In this section:
            (1) Consent decree.--The term ``consent decree'' 
        means the consent decree in the case of Pigford v. 
        Glickman, approved by the United States District Court 
        for the District of Columbia on April 14, 1999.
            (2) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (3) Pigford claim.--The term ``Pigford claim'' 
        means a discrimination complaint, as defined by section 
        1(h) of the consent decree and documented under section 
        5(b) of the consent decree.
            (4) Pigford claimant.--The term ``Pigford 
        claimant'' means an individual who previously submitted 
        a late-filing request under section 5(g) of the consent 
        decree.
    (b) Determination on Merits.--Any Pigford claimant who has 
not previously obtained a determination on the merits of a 
Pigford claim may, in a civil action brought in the United 
States District Court for the District of Columbia, obtain that 
determination.
    (c) Limitation.--
            (1) In general.--Subject to paragraph (2), all 
        payments or debt relief (including any limitation on 
        foreclosure under subsection (h)) shall be made 
        exclusively from funds made available under subsection 
        (i).
            (2) Maximum amount.--The total amount of payments 
        and debt relief pursuant to actions commenced under 
        subsection (b) shall not exceed $100,000,000.
    (d) Intent of Congress as to Remedial Nature of Section.--
It is the intent of Congress that this section be liberally 
construed so as to effectuate its remedial purpose of giving a 
full determination on the merits for each Pigford claim 
previously denied that determination.
    (e) Loan Data.--
            (1) Report to person submitting petition.--
                    (A) In general.--Not later than 120 days 
                after the Secretary receives notice of a 
                complaint filed by a claimant under subsection 
                (b), the Secretary shall provide to the 
                claimant a report on farm credit loans and 
                noncredit benefits, as appropriate, made within 
                the claimant's county (or if no documents are 
                found, within an adjacent county as determined 
                by the claimant), by the Department during the 
                period beginning on January 1 of the year 
                preceding the period covered by the complaint 
                and ending on December 31 of the year following 
                the period.
                    (B) Requirements.--A report under 
                subparagraph (A) shall contain information on 
                all persons whose application for a loan or 
                benefit was accepted, including--
                            (i) the race of the applicant;
                            (ii) the date of application;
                            (iii) the date of the loan or 
                        benefit decision, as appropriate;
                            (iv) the location of the office 
                        making the loan or benefit decision, as 
                        appropriate;
                            (v) all data relevant to the 
                        decisionmaking process for the loan or 
                        benefit, as appropriate; and
                            (vi) all data relevant to the 
                        servicing of the loan or benefit, as 
                        appropriate.
            (2) No personally identifiable information.--The 
        reports provided pursuant to paragraph (1) shall not 
        contain any information that would identify any person 
        who applied for a loan from the Department.
            (3) Reporting deadline.--
                    (A) In general.--The Secretary shall--
                            (i) provide to claimants the 
                        reports required under paragraph (1) as 
                        quickly as practicable after the 
                        Secretary receives notice of a 
                        complaint filed by a claimant under 
                        subsection (b); and
                            (ii) devote such resources of the 
                        Department as are necessary to make 
                        providing the reports expeditiously a 
                        high priority of the Department.
                    (B) Extension.--A court may extend the 
                deadline for providing the report required in a 
                particular case under paragraph (1) if the 
                Secretary establishes that meeting the deadline 
                is not feasible and demonstrates a continuing 
                effort and commitment to provide the required 
                report expeditiously.
    (f) Expedited Resolutions Authorized.--
            (1) In general.--Any person filing a complaint 
        under this section for discrimination in the 
        application for, or making or servicing of, a farm 
        loan, at the discretion of the person, may seek 
        liquidated damages of $50,000, discharge of the debt 
        that was incurred under, or affected by, the 1 or more 
        programs that were the subject of the 1 or more 
        discrimination claims that are the subject of the 
        person's complaint, and a tax payment in the amount 
        equal to 25 percent of the liquidated damages and loan 
        principal discharged, in which case--
                    (A) if only such damages, debt discharge, 
                and tax payment are sought, the complainant 
                shall be able to prove the case of the 
                complainant by substantial evidence (as defined 
                in section 1(l) of the consent decree); and
                    (B) the court shall decide the case based 
                on a review of documents submitted by the 
                complainant and defendant relevant to the 
                issues of liability and damages.
            (2) Noncredit claims.--
                    (A) Standard.--In any case in which a 
                claimant asserts a noncredit claim under a 
                benefit program of the Department, the court 
                shall determine the merits of the claim in 
                accordance with section 9(b)(i) of the consent 
                decree.
                    (B) Relief.--A claimant who prevails on a 
                claim of discrimination involving a noncredit 
                benefit program of the Department shall be 
                entitled to a payment by the Department in a 
                total amount of $3,000, without regard to the 
                number of such claims on which the claimant 
                prevails.
    (g) Actual Damages.--A claimant who files a claim under 
this section for discrimination under subsection (b) but not 
under subsection (f) and who prevails on the claim shall be 
entitled to actual damages sustained by the claimant.
    (h) Limitation on Foreclosures.--Notwithstanding any other 
provision of law, during the pendency of a Pigford claim, the 
Secretary may not begin acceleration on or foreclosure of a 
loan if--
            (1) the borrower is a Pigford claimant; and
            (2) makes a prima facie case in an appropriate 
        administrative proceeding that the acceleration or 
        foreclosure is related to a Pigford claim.
    (i) Funding.--
            (1) In general.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall make available 
        for payments and debt relief in satisfaction of claims 
        against the United States under subsection (b) and for 
        any actions under subsection (g) $100,000,000 for 
        fiscal year 2008, to remain available until expended.
            (2) Authorization of appropriations.--In addition 
        to funds made available under paragraph (1), there are 
        authorized to be appropriated such sums as are 
        necessary to carry out this section.
    (j) Reporting Requirements.--
            (1) In general.--Not later than 180 days after the 
        date of the enactment of this Act and every 180 days 
        thereafter until the funds made available under 
        subsection (i) are depleted, the Secretary shall submit 
        to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of 
        the Senate a report that describes the status of 
        available funds under subsection (i) and the number of 
        pending claims under subsection (f).
            (2) Depletion of funds report.--In addition to the 
        reports required under paragraph (1), the Secretary 
        shall submit to the Committee on the Judiciary of the 
        House of Representatives and the Committee on the 
        Judiciary of the Senate a report that notifies the 
        Committees when 75 percent of the funds made available 
        under subsection (i)(1) have been depleted.
    (k) Termination of Authority.--The authority to file a 
claim under this section terminates 2 years after the date of 
the enactment of this Act.

SEC. 14013. OFFICE OF ADVOCACY AND OUTREACH.

    (a) In General.--The Department of Agriculture 
Reorganization Act of 1994 is amended by inserting after 
section 226A (7 U.S.C. 6933) the following:

``SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH.

    ``(a) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term 
        `beginning farmer or rancher' has the meaning given the 
        term in section 343(a) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1991(a)).
            ``(2) Office.--The term `Office' means the Office 
        of Advocacy and Outreach established under this 
        section.
            ``(3) Socially disadvantaged farmer or rancher.--
        The term `socially disadvantaged farmer or rancher' has 
        the meaning given the term in section 2501(e) of the 
        Food, Agriculture, Conservation, and Trade Act of 1990 
        (7 U.S.C. 2279(e)).
    ``(b) Establishment and Purpose.--
            ``(1) In general.--The Secretary shall establish 
        within the executive operations of the Department an 
        office to be known as the `Office of Advocacy and 
        Outreach'--
                    ``(A) to improve access to programs of the 
                Department; and
                    ``(B) to improve the viability and 
                profitability of--
                            ``(i) small farms and ranches;
                            ``(ii) beginning farmers or 
                        ranchers; and
                            ``(iii) socially disadvantaged 
                        farmers or ranchers.
            ``(2) Director.--The Office shall be headed by a 
        Director, to be appointed by the Secretary from among 
        the competitive service.
    ``(c) Duties.--The duties of the Office shall be to ensure 
small farms and ranches, beginning farmers or ranchers, and 
socially disadvantaged farmers or ranchers access to, and 
equitable participation in, programs and services of the 
Department by--
            ``(1) establishing and monitoring the goals and 
        objectives of the Department to increase participation 
        in programs of the Department by small, beginning, or 
        socially disadvantaged farmers or ranchers;
            ``(2) assessing the effectiveness of Department 
        outreach programs;
            ``(3) developing and implementing a plan to 
        coordinate outreach activities and services provided by 
        the Department;
            ``(4) providing input to the agencies and offices 
        on programmatic and policy decisions;
            ``(5) measuring outcomes of the programs and 
        activities of the Department on small farms and 
        ranches, beginning farmers or ranchers, and socially 
        disadvantaged farmers or ranchers programs;
            ``(6) recommending new initiatives and programs to 
        the Secretary; and
            ``(7) carrying out any other related duties that 
        the Secretary determines to be appropriate.
    ``(d) Socially Disadvantaged Farmers Group.--
            ``(1) Establishment.--The Secretary shall establish 
        within the Office the Socially Disadvantaged Farmers 
        Group.
            ``(2) Outreach and assistance.--The Socially 
        Disadvantaged Farmers Group--
                    ``(A) shall carry out section 2501 of the 
                Food, Agriculture, Conservation, and Trade Act 
                of 1990 (7 U.S.C. 2279); and
                    ``(B) in the case of activities described 
                in section 2501(a) of that Act, may conduct 
                such activities through other agencies and 
                offices of the Department.
            ``(3) Socially disadvantaged farmers and 
        farmworkers.--The Socially Disadvantaged Farmers Group 
        shall oversee the operations of--
                    ``(A) the Advisory Committee on Minority 
                Farmers established under section 14009 of the 
                Food, Conservation, and Energy Act of 2008; and
                    ``(B) the position of Farmworker 
                Coordinator established under subsection (f).
            ``(4) Other duties.--
                    ``(A) In general.--The Socially 
                Disadvantaged Farmers Group may carry out other 
                duties to improve access to, and participation 
                in, programs of the Department by socially 
                disadvantaged farmers or ranchers, as 
                determined by the Secretary.
                    ``(B) Office of outreach and diversity.--
                The Office of Advocacy and Outreach shall carry 
                out the functions and duties of the Office of 
                Outreach and Diversity carried out by the 
                Assistant Secretary for Civil Rights as such 
                functions and duties existed immediately before 
                the date of the enactment of this section.
    ``(e) Small Farms and Beginning Farmers and Ranchers 
Group.--
            ``(1) Establishment.--The Secretary shall establish 
        within the Office the Small Farms and Beginning Farmers 
        and Ranchers Group.
            ``(2) Duties.--
                    ``(A) Oversee offices.--The Small Farms and 
                Beginning Farmers and Ranchers Group shall 
                oversee the operations of the Office of Small 
                Farms Coordination established by Departmental 
                Regulation 9700-1 (August 3, 2006).
                    ``(B) Beginning farmer and rancher 
                development program.--The Small Farms and 
                Beginning Farmers and Ranchers Group shall 
                consult with the National Institute for Food 
                and Agriculture on the administration of the 
                beginning farmer and rancher development 
                program established under section 7405 of the 
                Farm Security and Rural Investment Act of 2002 
                (7 U.S.C. 3319f).
                    ``(C) Advisory committee for beginning 
                farmers and ranchers.--The Small Farms and 
                Beginning Farmers and Ranchers Group shall 
                coordinate the activities of the Group with the 
                Advisory Committee for Beginning Farmers and 
                Ranchers established under section 5(b) of the 
                Agricultural Credit Improvement Act of 1992 (7 
                U.S.C. 1621 note; Public Law 102-554).
                    ``(D) Other duties.--The Small Farms and 
                Beginning Farmers and Ranchers Group may carry 
                out other duties to improve access to, and 
                participation in, programs of the Department by 
                small farms and ranches and beginning farmers 
                or ranchers, as determined by the Secretary.
    ``(f) Farmworker Coordinator.--
            ``(1) Establishment.--The Secretary shall establish 
        within the Office the position of Farmworker 
        Coordinator (referred to in this subsection as the 
        `Coordinator').
            ``(2) Duties.--The Secretary shall delegate to the 
        Coordinator responsibility for the following:
                    ``(A) Assisting in administering the 
                program established by section 2281 of the 
                Food, Agriculture, Conservation, and Trade Act 
                of 1990 (42 U.S.C. 5177a).
                    ``(B) Serving as a liaison to community-
                based nonprofit organizations that represent 
                and have demonstrated experience serving low-
                income migrant and seasonal farmworkers.
                    ``(C) Coordinating with the Department, 
                other Federal agencies, and State and local 
                governments to ensure that farmworker needs are 
                assessed and met during declared disasters and 
                other emergencies.
                    ``(D) Consulting within the Office and with 
                other entities to better integrate farmworker 
                perspectives, concerns, and interests into the 
                ongoing programs of the Department.
                    ``(E) Consulting with appropriate 
                institutions on research, program improvements, 
                or agricultural education opportunities that 
                assist low-income and migrant seasonal 
                farmworkers.
                    ``(F) Assisting farmworkers in becoming 
                agricultural producers or landowners.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out this subsection for each of 
        fiscal years 2009 through 2012.''.
    (b) Conforming Amendment.--Section 296(b) of the Department 
of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)), 
as amended by section 7511(b), is further amended--
            (1) in paragraph (5), by striking ``; or'' and 
        inserting ``;'';
            (2) in paragraph (6), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(7) the authority of the Secretary to establish 
        in the Department the Office of Advocacy and Outreach 
        in accordance with section 226B.''.

                   Subtitle B--Agricultural Security

SEC. 14101. SHORT TITLE.

    This subtitle may be cited as the ``Agricultural Security 
Improvement Act of 2008''.

SEC. 14102. DEFINITIONS.

    In this subtitle:
            (1) Agent.--The term ``agent'' means a nuclear, 
        biological, chemical, or radiological substance that 
        causes agricultural disease or the adulteration of 
        products regulated by the Secretary of Agriculture 
        under any provision of law.
            (2) Agricultural biosecurity.--The term 
        ``agricultural biosecurity'' means protection from an 
        agent that poses a threat to--
                    (A) plant or animal health;
                    (B) public health as it relates to the 
                adulteration of products regulated by the 
                Secretary of Agriculture under any provision of 
                law that is caused by exposure to an agent; or
                    (C) the environment as it relates to 
                agriculture facilities, farmland, and air and 
                water within the immediate vicinity of an area 
                associated with an agricultural disease or 
                outbreak.
            (3) Agricultural countermeasure.--The term 
        ``agricultural countermeasure''--
                    (A) means a product, practice, or 
                technology that is intended to enhance or 
                maintain the agricultural biosecurity of the 
                United States; and
                    (B) does not include a product, practice, 
                or technology used solely in response to a 
                human medical incident or public health 
                emergency not related to agriculture.
            (4) Agricultural disease.--The term ``agricultural 
        disease'' has the meaning given the term by the 
        Secretary.
            (5) Agricultural disease emergency.--The term 
        ``agricultural disease emergency'' means an incident of 
        agricultural disease that requires prompt action to 
        prevent significant damage to people, plants, or 
        animals.
            (6) Agroterrorist act.--The term ``agroterrorist 
        act'' means an act that--
                    (A) causes or attempts to cause--
                            (i) damage to agriculture; or
                            (ii) injury to a person associated 
                        with agriculture; and
                    (B) is committed or appears to be committed 
                with the intent to--
                            (i) intimidate or coerce a civilian 
                        population; or
                            (ii) disrupt the agricultural 
                        industry in order to influence the 
                        policy of a government by intimidation 
                        or coercion.
            (7) Animal.--The term ``animal'' has the meaning 
        given the term in section 10403 of the Animal Health 
        Protection Act of 2002 (7 U.S.C. 8302).
            (8) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (9) Development.--The term ``development'' means--
                    (A) research leading to the identification 
                of products or technologies intended for use as 
                agricultural countermeasures to protect animal 
                health;
                    (B) the formulation, production, and 
                subsequent modification of those products or 
                technologies;
                    (C) the conduct of in vitro and in vivo 
                studies;
                    (D) the conduct of field, efficacy, and 
                safety studies;
                    (E) the preparation of an application for 
                marketing approval for submission to an 
                applicable agency; or
                    (F) other actions taken by an applicable 
                agency in a case in which an agricultural 
                countermeasure is procured or used prior to 
                issuance of a license or other form of Federal 
                Government approval.
            (10) Plant.--The term ``plant'' has the meaning 
        given the term in section 411 of the Plant Protection 
        Act of 2000 (7 U.S.C. 7702).
            (11) Qualified agricultural countermeasure.--The 
        term ``qualified agricultural countermeasure'' means an 
        agricultural countermeasure that the Secretary, in 
        consultation with the Secretary of Homeland Security, 
        determines to be a priority in order to address an 
        agricultural biosecurity threat.

                    CHAPTER 1--AGRICULTURAL SECURITY

SEC. 14111. OFFICE OF HOMELAND SECURITY.

    (a) Establishment.--There is established within the 
Department the Office of Homeland Security (in this section 
referred to as the ``Office'').
    (b) Director.--The Office shall be headed by a Director of 
Homeland Security, who shall be appointed by the Secretary.
    (c) Responsibilities.--The Director of Homeland Security 
shall--
            (1) coordinate all homeland security activities of 
        the Department, including integration and coordination 
        of interagency emergency response plans for--
                    (A) agricultural disease emergencies;
                    (B) agroterrorist acts; and
                    (C) other threats to agricultural 
                biosecurity;
            (2) act as the primary liaison on behalf of the 
        Department with other Federal departments and agencies 
        on the coordination of efforts and interagency 
        activities pertaining to agricultural biosecurity; and
            (3) advise the Secretary on policies, regulations, 
        processes, budget, and actions pertaining to homeland 
        security.

SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.

    (a) Establishment.--The Secretary shall establish a 
communication center within the Department to--
            (1) collect and disseminate information and prepare 
        for an agricultural disease emergency, agroterrorist 
        act, or other threat to agricultural biosecurity; and
            (2) coordinate activities described in paragraph 
        (1) among agencies and offices within the Department.
    (b) Relation to Existing DHS Communication Systems.--
            (1) Consistency and coordination.--The 
        communication center established under subsection (a) 
        shall, to the maximum extent practicable, share and 
        coordinate the dissemination of timely information with 
        the Department of Homeland Security and other 
        communication systems of appropriate Federal 
        departments and agencies.
            (2) Avoiding redundancies.--Paragraph (1) shall not 
        be construed to impede, conflict with, or duplicate the 
        communications activities performed by the Secretary of 
        Homeland Security under any provision of law.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated such sums as may be necessary to carry out 
this section for each of fiscal years 2008 through 2012.

SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL 
                    BIOSECURITY PLANNING, PREPAREDNESS, AND RESPONSE.

    (a) Advanced Training Programs.--
            (1) Grant assistance.--The Secretary shall 
        establish a competitive grant program to support the 
        development and expansion of advanced training programs 
        in agricultural biosecurity planning and response for 
        food science professionals and veterinarians.
            (2) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary such 
        sums as may be necessary to carry out this subsection 
        for each of fiscal years 2008 through 2012.
    (b) Assessment of Response Capability.--
            (1) Grant and loan assistance.--The Secretary shall 
        establish a competitive grant and low-interest loan 
        assistance program to assist States in assessing 
        agricultural disease response capability.
            (2) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $25,000,000 for each of fiscal years 2008 
        through 2012.

                      CHAPTER 2--OTHER PROVISIONS

SEC. 14121. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.

    (a) Grant Program.--
            (1) Competitive grant program.--The Secretary shall 
        establish a competitive grant program to encourage 
        basic and applied research and the development of 
        qualified agricultural countermeasures.
            (2) Waiver in emergencies.--The Secretary may waive 
        the requirement under paragraph (1) that a grant be 
        provided on a competitive basis if--
                    (A) the Secretary has declared a plant or 
                animal disease emergency under the Plant 
                Protection Act (7 U.S.C. 7701 et seq.) or the 
                Animal Health Protection Act (7 U.S.C. 8301 et 
                seq.); and
                    (B) waiving the requirement would lead to 
                the rapid development of a qualified 
                agricultural countermeasure, as determined by 
                the Secretary.
    (b) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $50,000,000 for 
each of fiscal years 2008 through 2012.

SEC. 14122. AGRICULTURAL BIOSECURITY GRANT PROGRAM.

    (a) Competitive Grant Program.--The Secretary shall 
establish a competitive grant program to promote the 
development of teaching programs in agriculture, veterinary 
medicine, and disciplines closely allied to the food and 
agriculture system to increase the number of trained 
individuals with an expertise in agricultural biosecurity.
    (b) Eligibility.--The Secretary may award a grant under 
this section only to an entity that is--
            (1) an accredited school of veterinary medicine; or
            (2) a department of an institution of higher 
        education with a primary focus on--
                    (A) comparative medicine;
                    (B) veterinary science; or
                    (C) agricultural biosecurity.
    (c) Preference.--The Secretary shall give preference in 
awarding grants based on the ability of an applicant--
            (1) to increase the number of veterinarians or 
        individuals with advanced degrees in food and 
        agriculture disciplines who are trained in agricultural 
        biosecurity practice areas;
            (2) to increase research capacity in areas of 
        agricultural biosecurity; or
            (3) to fill critical agricultural biosecurity 
        shortage situations outside of the Federal Government.
    (d) Use of Funds.--
            (1) In general.--Amounts received under this 
        section shall be used by a grantee to pay--
                    (A) costs associated with the acquisition 
                of equipment and other capital costs relating 
                to the expansion of food, agriculture, and 
                veterinary medicine teaching programs in 
                agricultural biosecurity;
                    (B) capital costs associated with the 
                expansion of academic programs that offer 
                postgraduate training for veterinarians or 
                concurrent training for veterinary students in 
                specific areas of specialization; or
                    (C) other capacity and infrastructure 
                program costs that the Secretary considers 
                appropriate.
            (2) Limitation.--Funds received under this section 
        may not be used for the construction, renovation, or 
        rehabilitation of a building or facility.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012, to remain 
available until expended.

               Subtitle C--Other Miscellaneous Provisions

SEC. 14201. COTTON CLASSIFICATION SERVICES.

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

``SEC. 3A. COTTON CLASSIFICATION SERVICES.

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

SEC. 14202. DESIGNATION OF STATES FOR COTTON RESEARCH AND PROMOTION.

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

SEC. 14203. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES FROM 
                    ANHYDROUS AMMONIA.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' 
        means--
                    (A) a producer of agricultural commodities;
                    (B) a cooperative association, a majority 
                of the members of which produce or process 
                agricultural commodities; or
                    (C) a person in the trade or business of--
                            (i) selling an agricultural product 
                        (including an agricultural chemical) at 
                        retail, predominantly to farmers and 
                        ranchers; or
                            (ii) aerial and ground application 
                        of an agricultural chemical.
            (2) Nurse tank.--The term ``nurse tank'' shall be 
        considered to be a cargo tank (within the meaning of 
        section 173.315(m) of title 49, Code of Federal 
        Regulations, as in effect as of the date of the 
        enactment of this Act).
    (b) Grant Authority.--The Secretary may make a grant to an 
eligible entity to enable the eligible entity to obtain and add 
to an anhydrous ammonia fertilizer nurse tank a physical lock 
or a substance to reduce the amount of methamphetamine that can 
be produced from any anhydrous ammonia removed from the nurse 
tank.
    (c) Grant Amount.--The amount of a grant made under this 
section to an eligible entity shall be the product obtained by 
multiplying--
            (1) an amount not less than $40 and not more than 
        $60, as determined by the Secretary; and
            (2) the number of fertilizer nurse tanks of the 
        eligible entity.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to make grants under this 
section $15,000,000 for the period of fiscal years 2008 through 
2012.

SEC. 14204. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING 
                    OF AGRICULTURAL LABOR FORCE.

    (a) Definition of Eligible Entity.--In this section, the 
term ``eligible entity'' means an entity described in section 
379C(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008q(a)).
    (b) Grants.--
            (1) In general.--To assist agricultural employers 
        and farmworkers by improving the supply, stability, 
        safety, and training of the agricultural labor force, 
        the Secretary may provide grants to eligible entities 
        for use in providing services to assist farmworkers who 
        are citizens or otherwise legally present in the United 
        States in securing, retaining, upgrading, or returning 
        from agricultural jobs.
            (2) Eligible services.--The services referred to in 
        paragraph (1) include--
                    (A) agricultural labor skills development;
                    (B) the provision of agricultural labor 
                market information;
                    (C) transportation;
                    (D) short-term housing while in transit to 
                an agricultural worksite;
                    (E) workplace literacy and assistance with 
                English as a second language;
                    (F) health and safety instruction, 
                including ways of safeguarding the food supply 
                of the United States; and
                    (G) such other services as the Secretary 
                determines to be appropriate.
    (c) Limitation on Administrative Expenses.--Not more than 
15 percent of the funds made available to carry out this 
section for a fiscal year may be used to pay for administrative 
expenses.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012.

SEC. 14205. AMENDMENT TO THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978.

    Section 1113(k) of the Right to Financial Privacy Act of 
1978 (12 U.S.C. 3413(k)) is amended--
            (1) by striking the subsection heading and 
        inserting the following:
    ``(k) Disclosure Necessary for Proper Administration of 
Programs of Certain Government Authorities.--''; and
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) Nothing in this title shall apply to the 
        disclosure by the financial institution of information 
        contained in the financial records of any customer to 
        any Government authority that certifies, disburses, or 
        collects payments, where the disclosure of such 
        information is necessary to, and such information is 
        used solely for the purpose of--
                    ``(A) verification of the identity of any 
                person or proper routing and delivery of funds 
                in connection with the issuance of a Federal 
                payment or collection of funds by a Government 
                authority; or
                    ``(B) the investigation or recovery of an 
                improper Federal payment or collection of funds 
                or an improperly negotiated Treasury check.
            ``(3) Notwithstanding any other provision of law, a 
        request authorized by paragraph (1) or (2) (and the 
        information contained therein) may be used by the 
        financial institution or its agents solely for the 
        purpose of providing information contained in the 
        financial records of the customer to the Government 
        authority requesting the information, and the financial 
        institution and its agents shall be barred from 
        redisclosure of such information. Any Government 
        authority receiving information pursuant to paragraph 
        (1) or (2) may not disclose or use the information, 
        except for the purposes set forth in such paragraph.''.

SEC. 14206. REPORT ON STORED QUANTITIES OF PROPANE.

    (a) Report.--
            (1) In general.--Not later than 240 days after the 
        date of the enactment of this Act, the Secretary of 
        Homeland Security (referred to in this section as the 
        ``Secretary'') shall submit to the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate and 
        the Committee on Agriculture of the House of 
        Representatives a report describing the effect of 
        interim or final regulations issued by the Secretary 
        pursuant to section 550(a) of the Department of 
        Homeland Security Appropriations Act, 2007 (6 U.S.C. 
        121 note; Public Law 109-295), with respect to 
        possession of quantities of propane that meet or exceed 
        the screening threshold quantity for propane 
        established in the final rule under that section.
            (2) Inclusions.--The report under paragraph (1) 
        shall include a description of--
                    (A) the number of facilities that completed 
                a top screen consequence assessment due to 
                possession of quantities of propane that meet 
                or exceed the listed screening threshold 
                quantity for propane;
                    (B) the number of agricultural facilities 
                that completed the top screen consequence 
                assessment due to possession of quantities of 
                propane that meet or exceed the listed 
                screening threshold quantity for propane;
                    (C) the number of propane facilities 
                initially determined to be high risk by the 
                Secretary;
                    (D) the number of propane facilities--
                            (i) required to complete a security 
                        vulnerability assessment or a site 
                        security plan; or
                            (ii) that submit to the Secretary 
                        an alternative security program;
                    (E) the number of propane facilities that 
                file an appeal of a finding under the final 
                rule described in paragraph (1); and
                    (F) to the extent available, the average 
                cost of--
                            (i) completing a top screen 
                        consequence assessment requirement;
                            (ii) completing a security 
                        vulnerability assessment; and
                            (iii) completing and implementing a 
                        site security plan; and
            (3) Form.--The report under paragraph (1) shall be 
        submitted in unclassified form, but may include a 
        classified annex.
    (b) Educational Outreach.--Not later than 30 days after the 
date of the enactment of this Act, the Secretary shall conduct 
educational outreach activities for rural facilities that may 
be required to complete a top screen consequence assessment due 
to possession of propane in a quantity that meets or exceeds 
the listed screening threshold quantity for propane.

SEC. 14207. PROHIBITIONS ON DOG FIGHTING VENTURES.

    (a) In General.--Section 26 of the Animal Welfare Act (7 
U.S.C. 2156) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``, if 
                any animal in the venture was moved in 
                interstate or foreign commerce''; and
                    (B) in the heading of paragraph (2), by 
                striking ``state'' and inserting ``State'';
            (2) in subsection (b)--
                    (A) by striking ``(b) It shall be'' and 
                inserting the following:
    ``(b) Buying, Selling, Delivering, Possessing, Training, or 
Transporting Animals for Participation in Animal Fighting 
Venture.--It shall be''; and
                    (B) by striking ``transport, deliver'' and 
                all that follows through ``participate'' and 
                inserting ``possess, train, transport, deliver, 
                or receive any animal for purposes of having 
                the animal participate'';
            (3) in subsection (c)--
                    (A) by striking ``(c) It shall be'' and 
                inserting the following:
    ``(c) Use of Postal Service or Other Interstate 
Instrumentality for Promoting or Furthering Animal Fighting 
Venture.--It shall be''; and
                    (B) by inserting ``advertising an animal, 
                or an instrument described in subsection (e), 
                for use in an animal fighting venture,'' after 
                ``for purposes of'';
            (4) in subsection (d), by striking ``(d) 
        Notwithstanding'' and inserting the following:
    ``(d) Violation of State Law.--Notwithstanding'';
            (5) in subsection (e), by striking ``(e) It shall 
        be'' and inserting the following:
    ``(e) Buying, Selling, Delivering, or Transporting Sharp 
Instruments for Use in Animal Fighting Venture.--It shall be'';
            (6) in subsection (f)--
                    (A) by striking ``(f) The Secretary'' and 
                inserting the following:
    ``(f) Investigation of Violations by Secretary; Assistance 
by Other Federal Agencies; Issuance of Search Warrant; 
Forfeiture; Costs Recoverable in Forfeiture or Civil Action.--
The Secretary''; and
                    (B) in the last sentence--
                            (i) by striking ``by the United 
                        States'';
                            (ii) by inserting ``(1)'' after 
                        ``owner of the animals''; and
                            (iii) by striking ``proceeding or 
                        in'' and inserting ``proceeding, or (2) 
                        in'';
            (7) in subsection (g)--
                    (A) by striking ``(g) For purposes of'' and 
                inserting the following:
    ``(g) Definitions.--In'';
                    (B) in paragraph (1), by striking ``any 
                event'' and all that follows through 
                ``entertainment'' and inserting ``any event, in 
                or affecting interstate or foreign commerce, 
                that involves a fight conducted or to be 
                conducted between at least 2 animals for 
                purposes of sport, wagering, or 
                entertainment,'';
                    (C) by striking paragraph (2);
                    (D) in paragraph (5)--
                            (i) by striking ``dog or other''; 
                        and
                            (ii) by striking ``; and'' and 
                        inserting a period; and
                    (E) by redesignating paragraphs (3) through 
                (5) as paragraphs (2) through (4), 
                respectively;
            (8) by redesignating subsections (h) and (i) as 
        subsections (i) and (j), respectively;
            (9) in subsection (i) (as so redesignated), by 
        striking ``(i)(1) The provisions'' and inserting the 
        following:
    ``(i) Conflict With State Law.--
            ``(1) In general.--The provisions'';
            (10) in subsection (j) (as so redesignated), by 
        striking ``(j) The criminal'' and inserting the 
        following:
    ``(j) Criminal Penalties.--The criminal''; and
            (11) in subsection (g)(6), by striking ``(6) the 
        conduct'' and inserting the following:
    ``(h) Relationship to Other Provisions.--The conduct''.
    (b) Enforcement of Animal Fighting Prohibitions.--Section 
49 of title 18, United States Code, is amended by striking ``3 
years'' and inserting ``5 years''.

SEC. 14208. DEPARTMENT OF AGRICULTURE CONFERENCE TRANSPARENCY.

    (a) Report.--
            (1) Requirement.--Not later than September 30 of 
        each year, the Secretary of Agriculture shall submit to 
        the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate, a report on 
        conferences sponsored or held by the Department of 
        Agriculture or attended by employees of the Department 
        of Agriculture.
            (2) Contents.--Each report under paragraph (1) 
        shall contain--
                    (A) for each conference sponsored or held 
                by the Department or attended by employees of 
                the Department--
                            (i) the name of the conference;
                            (ii) the location of the 
                        conference;
                            (iii) the number of Department of 
                        Agriculture employees attending the 
                        conference; and
                            (iv) the costs (including travel 
                        expenses) relating to such conference; 
                        and
                    (B) for each conference sponsored or held 
                by the Department of Agriculture for which the 
                Department awarded a procurement contract, a 
                description of the contracting procedures 
                related to such conference.
            (3) Exclusions.--The requirement in paragraph (1) 
        shall not apply to any conference--
                    (A) for which the cost to the Federal 
                Government was less than $10,000; or
                    (B) outside of the United States that is 
                attended by the Secretary or the Secretary's 
                designee as an official representative of the 
                United States government.
    (b) Availability of Report.--Each report submitted in 
accordance with subsection (a) shall be posted in a searchable 
format on a Department of Agriculture website that is available 
to the public.
    (c) Definition of Conference.--In this section, the term 
``conference''--
            (1) means a meeting that--
                    (A) is held for consultation, education, 
                awareness, or discussion;
                    (B) includes participants from at least one 
                agency of the Department of Agriculture;
                    (C) is held in whole or in part at a 
                facility outside of an agency of the Department 
                of Agriculture; and
                    (D) involves costs associated with travel 
                and lodging for some participants; and
            (2) does not include any training program that is 
        continuing education or a curriculum-based educational 
        program, provided that such training program is held 
        independent of a conference of a non-governmental 
        organization.

SEC. 14209. FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT 
                    AMENDMENTS.

    (a) Payment of Expenses.--Section 17(d) of the Federal 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136o(d)) 
is amended--
            (1) by striking ``The Administrator'' and inserting 
        the following:
            ``(1) In general.--The Administrator''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(2) Department of state expenses.--Any expenses 
        incurred by an employee of the Environmental Protection 
        Agency who participates in any international technical, 
        economic, or policy review board, committee, or other 
        official body that is meeting in relation to an 
        international treaty shall be paid by the Department of 
        State.''.
    (b) Container Recycling.--Section 19(a) of the Federal 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136q(a)) 
is amended by adding at the end the following new paragraph:
            ``(4) Container recycling.--The Secretary may 
        promulgate a regulation for the return and recycling of 
        disposable pesticide containers used for the 
        distribution or sale of registered pesticide products 
        in interstate commerce. Any such regulation requiring 
        recycling of disposable pesticide containers shall not 
        apply to antimicrobial pesticides (as defined in 
        section 2) or other pesticide products intended for 
        non-agricultural uses.''.

SEC. 14210. IMPORTATION OF LIVE DOGS.

    (a) In General.--The Animal Welfare Act is amended by 
adding after section 17 (7 U.S.C. 2147) the following:

``SEC. 18. IMPORTATION OF LIVE DOGS.

    ``(a) Definitions.--In this section:
            ``(1) Importer.--The term `importer' means any 
        person who, for purposes of resale, transports into the 
        United States puppies from a foreign country.
            ``(2) Resale.--The term `resale' includes any 
        transfer of ownership or control of an imported dog of 
        less than 6 months of age to another person, for more 
        than de minimis consideration.
    ``(b) Requirements.--
            ``(1) In general.--Except as provided in paragraph 
        (2), no person shall import a dog into the United 
        States for purposes of resale unless, as determined by 
        the Secretary, the dog--
                    ``(A) is in good health;
                    ``(B) has received all necessary 
                vaccinations; and
                    ``(C) is at least 6 months of age, if 
                imported for resale.
            ``(2) Exception.--
                    ``(A) In general.--The Secretary, by 
                regulation, shall provide an exception to any 
                requirement under paragraph (1) in any case in 
                which a dog is imported for--
                            ``(i) research purposes; or
                            ``(ii) veterinary treatment.
                    ``(B) Lawful importation into hawaii.--
                Paragraph (1)(C) shall not apply to the lawful 
                importation of a dog into the State of Hawaii 
                from the British Isles, Australia, Guam, or New 
                Zealand in compliance with the applicable 
                regulations of the State of Hawaii and the 
                other requirements of this section, if the dog 
                is not transported out of the State of Hawaii 
                for purposes of resale at less than 6 months of 
                age.
    ``(c) Implementation and Regulations.--The Secretary, the 
Secretary of Health and Human Services, the Secretary of 
Commerce, and the Secretary of Homeland Security shall 
promulgate such regulations as the Secretaries determine to be 
necessary to implement and enforce this section.
    ``(d) Enforcement.--An importer that fails to comply with 
this section shall--
            ``(1) be subject to penalties under section 19; and
            ``(2) provide for the care (including appropriate 
        veterinary care), forfeiture, and adoption of each 
        applicable dog, at the expense of the importer.''.
    (b) Effective Date.--The amendment made by subsection (a) 
takes effect on the date of the enactment of this Act.

SEC. 14211. PERMANENT DEBARMENT FROM PARTICIPATION IN DEPARTMENT OF 
                    AGRICULTURE PROGRAMS FOR FRAUD.

    (a) In General.--Subject to subsection (b), the Secretary 
of Agriculture shall permanently debar an individual, 
organization, corporation, or other entity convicted of a 
felony for knowingly defrauding the United States in connection 
with any program administered by the Department of Agriculture 
from any subsequent participation in Department of Agriculture 
programs.
    (b) Exceptions.--
            (1) Secretary determination.--The Secretary may 
        reduce a debarment under subsection (a) to a period of 
        not less than 10 years if the Secretary considers it 
        appropriate.
            (2) Food assistance.--A debarment under subsection 
        (a) shall not apply with respect to participation in 
        domestic food assistance programs (as defined by the 
        Secretary).

SEC. 14212. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY OFFICES FOR 
                    THE FARM SERVICE AGENCY.

    (a) Temporary Prohibition.--
            (1) In general.--Subject to paragraph (2), until 
        the date that is two years after the date of the 
        enactment of this Act, the Secretary of Agriculture may 
        not close or relocate a county or field office of the 
        Farm Service Agency.
            (2) Exception.--Paragraph (1) shall not apply to--
                    (A) an office that is located not more than 
                20 miles from another office of the Farm 
                Service Agency; or
                    (B) the relocation of an office within the 
                same county in the course of routine leasing 
                operations.
    (b) Limitation on Closure; Notice.--
            (1) Limitation.--After the period referred to in 
        subsection (a)(1), the Secretary shall, before closing 
        any office of the Farm Service Agency that is located 
        more than 20 miles from another office of the Farm 
        Service Agency, to the maximum extent practicable, 
        first close any offices of the Farm Service Agency 
        that--
                    (A) are located less than 20 miles from 
                another office of the Farm Service Agency; and
                    (B) have two or fewer permanent full-time 
                employees.
            (2) Notice.--After the period referred to in 
        subsection (a)(1), the Secretary of Agriculture may not 
        close a county or field office of the Farm Service 
        Agency unless--
                    (A) not later than 30 days after the 
                Secretary proposes to close such office, the 
                Secretary holds a public meeting regarding the 
                proposed closure in the county in which such 
                office is located; and
                    (B) after the public meeting referred to in 
                subparagraph (A), but not less than 90 days 
                before the date on which the Secretary approves 
                the closure of such office, the Secretary 
                notifies the Committee on Agriculture and the 
                Committee on Appropriations of the House of 
                Representatives, the Committee on Agriculture, 
                Nutrition, and Forestry and the Committee on 
                Appropriations of the Senate, each Senator 
                representing the State in which the office 
                proposed to be closed is located, and the 
                member of the House of Representatives who 
                represents the Congressional district in which 
                the office proposed to be closed is located of 
                the proposed closure of such office.

SEC. 14213. USDA GRADUATE SCHOOL.

    (a) In General.--Section 921 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 2279b) is 
amended--
            (1) in the heading, to read as follows:

``SEC. 921. DEPARTMENT OF AGRICULTURE EDUCATIONAL, TRAINING, AND 
                    PROFESSIONAL DEVELOPMENT ACTIVITIES.''; AND

            (2) by striking subsection (b) and inserting the 
        following new subsection:
    ``(b) Operation as Nonappropriated Fund Instrumentality.--
            ``(1) Cease operations.--Not later than October 1, 
        2009, the Secretary of Agriculture shall cease to 
        maintain or operate a nonappropriated fund 
        instrumentality of the United States to develop, 
        administer, or provide educational training and 
        professional development activities, including 
        educational activities for Federal agencies, Federal 
        employees, non-profit organizations, other entities, 
        and members of the general public.
            ``(2) Transition.--
                    ``(A) In general.--The Secretary of 
                Agriculture is authorized to use funds 
                available to the Department of Agriculture and 
                such resources of the Department as the 
                Secretary considers appropriate (including the 
                assignment of such employees of the Department 
                as the Secretary considers appropriate) to 
                assist the General Administrative Board of the 
                Graduate School in the conversion of the 
                Graduate School to an entity that is non-
                governmental and not a nonappropriated fund 
                instrumentality of the United States, including 
                such privatization activities not otherwise 
                inconsistent with law or regulation.
                    ``(B) Termination of authority.--The 
                authority under paragraph (1) shall terminate 
                on the earlier of--
                            ``(i) the completion of the 
                        transition of the Graduate School to an 
                        entity that is non-governmental and not 
                        a nonappropriated fund instrumentality 
                        of the United States, as determined by 
                        the Secretary; or
                            ``(ii) September 30, 2009.''.
    (b) Procurement Procedures.--Notwithstanding the amendments 
made by subsection (a), effective on the date of the enactment 
of this Act, the Graduate School of the Department of 
Agriculture shall be subject to Federal procurement laws and 
regulations in the same manner and subject to the same 
requirements as a private entity providing services to the 
Federal Government.

SEC. 14214. FINES FOR VIOLATIONS OF THE ANIMAL WELFARE ACT.

    Section 19(b) of the Animal Welfare Act (7 U.S.C. 2149(b)) 
is amended in the first sentence by striking ``not more than 
$2,500 for each such violation'' and inserting ``not more than 
$10,000 for each such violation''.

SEC. 14215. DEFINITION OF CENTRAL FILING SYSTEM.

    Section 1324(c)(2) of the Food Security Act of 1985 (7 
U.S.C. 1631(c)(2)) is amended--
            (1) in subparagraph (C)(ii)(II), by inserting after 
        ``such debtors'' the following: ``, except that the 
        numerical list containing social security or taxpayer 
        identification numbers may be encrypted for security 
        purposes if the Secretary of State provides a method by 
        which an effective search of the encrypted numbers may 
        be conducted to determine whether the farm product at 
        issue is subject to 1 or more liens''; and
            (2) in subparagraph (E)--
                    (A) by striking ``paragraph (C)'' and 
                inserting ``subparagraph (C)''; and
                    (B) by inserting before the semicolon at 
                the end the following: ``except that--
                            ``(i) the distribution of the 
                        portion of the master list may be in 
                        electronic, written, or printed form; 
                        and
                            ``(ii) if social security or 
                        taxpayer identification numbers on the 
                        master list are encrypted, the 
                        Secretary of State may distribute the 
                        master list only--
                                    ``(I) by compact disc or 
                                other electronic media that 
                                contains--
                                            ``(aa) the recorded 
                                        list of debtor names; 
                                        and
                                            ``(bb) an 
                                        encryption program that 
                                        enables the buyer, 
                                        commission merchant, 
                                        and selling agent to 
                                        enter a social security 
                                        number for matching 
                                        against the recorded 
                                        list of encrypted 
                                        social security or 
                                        taxpayer identification 
                                        numbers; and
                                    ``(II) on the written 
                                request of the buyer, 
                                commission merchant, or selling 
                                agent, by paper copy of the 
                                list to the requestor''.

SEC. 14216. CONSIDERATION OF PROPOSED RECOMMENDATIONS OF STUDY ON USE 
                    OF CATS AND DOGS IN FEDERAL RESEARCH.

    (a) In General.--The Secretary of Agriculture shall--
            (1) review--
                    (A) any independent reviews conducted by a 
                nationally recognized panel of experts of the 
                use of Class B dogs and cats in federally 
                supported research to determine how frequently 
                such dogs and cats are used in research by the 
                National Institutes of Health; and
                    (B) any recommendations proposed by such 
                panel outlining the parameters of such use; and
            (2) submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a 
        report on how recommendations referred to in paragraph 
        (1)(B) can be applied within the Department of 
        Agriculture to ensure such dogs and cats are treated in 
        accordance with regulations of the Department of 
        Agriculture.
    (b) Class B Dogs and Cats Defined.--In this section, the 
term ``Class B dogs and cats'' means dogs and cats obtained 
from a Class ``B'' licensee, as such term is defined in section 
1.1 of title 9, Code of Federal Regulations.

SEC. 14217. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.

    (a) In General.--Title 40, United States Code, is amended--
            (1) by redesignating subtitle V as subtitle VI; and
            (2) by inserting after subtitle IV the following:

     ``Subtitle V--Regional Economic and Infrastructure Development

``Chapter
``151. GENERAL PROVISIONS......................................... 15101
``153. REGIONAL COMMISSIONS....................................... 15301
``155. FINANCIAL ASSISTANCE....................................... 15501
``157. ADMINISTRATIVE PROVISIONS.................................. 15701

                    ``CHAPTER 1--GENERAL PROVISIONS

``Sec.
``15101. Definitions.

``Sec. 15101. Definitions

    ``In this subtitle, the following definitions apply:
            ``(1) Commission.--The term `Commission' means a 
        Commission established under section 15301.
            ``(2) Local development district.--The term `local 
        development district' means an entity that--
                    ``(A)(i) is an economic development 
                district that is--
                            ``(I) in existence on the date of 
                        the enactment of this chapter; and
                            ``(II) located in the region; or
                    ``(ii) if an entity described in clause (i) 
                does not exist--
                            ``(I) is organized and operated in 
                        a manner that ensures broad-based 
                        community participation and an 
                        effective opportunity for local 
                        officials, community leaders, and the 
                        public to contribute to the development 
                        and implementation of programs in the 
                        region;
                            ``(II) is governed by a policy 
                        board with at least a simple majority 
                        of members consisting of--
                                    ``(aa) elected officials; 
                                or
                                    ``(bb) designees or 
                                employees of a general purpose 
                                unit of local government that 
                                have been appointed to 
                                represent the unit of local 
                                government; and
                            ``(III) is certified by the 
                        Governor or appropriate State officer 
                        as having a charter or authority that 
                        includes the economic development of 
                        counties, portions of counties, or 
                        other political subdivisions within the 
                        region; and
                    ``(B) has not, as certified by the Federal 
                Cochairperson--
                            ``(i) inappropriately used Federal 
                        grant funds from any Federal source; or
                            ``(ii) appointed an officer who, 
                        during the period in which another 
                        entity inappropriately used Federal 
                        grant funds from any Federal source, 
                        was an officer of the other entity.
            ``(3) Federal grant program.--The term `Federal 
        grant program' means a Federal grant program to provide 
        assistance in carrying out economic and community 
        development activities.
            ``(4) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(5) Nonprofit entity.--The term `nonprofit 
        entity' means any organization described in section 
        501(c) of the Internal Revenue Code of 1986 and exempt 
        from taxation under 501(a) of that Code that has been 
        formed for the purpose of economic development.
            ``(6) Region.--The term `region' means the area 
        covered by a Commission as described in subchapter II 
        of chapter 157.

                   ``CHAPTER 2--REGIONAL COMMISSIONS

``Sec.
``15301. Establishment, membership, and employees.
``15302. Decisions.
``15303. Functions.
``15304. Administrative powers and expenses.
``15305. Meetings.
``15306. Personal financial interests.
``15307. Tribal participation.
``15308. Annual report.

``Sec. 15301. Establishment, membership, and employees

    ``(a) Establishment.--There are established the following 
regional Commissions:
            ``(1) The Southeast Crescent Regional Commission.
            ``(2) The Southwest Border Regional Commission.
            ``(3) The Northern Border Regional Commission.
    ``(b) Membership.--
            ``(1) Federal and state members.--Each Commission 
        shall be composed of the following members:
                    ``(A) A Federal Cochairperson, to be 
                appointed by the President, by and with the 
                advice and consent of the Senate.
                    ``(B) The Governor of each participating 
                State in the region of the Commission.
            ``(2) Alternate members.--
                    ``(A) Alternate federal cochairperson.--The 
                President shall appoint an alternate Federal 
                Cochairperson for each Commission. The 
                alternate Federal Cochairperson, when not 
                actively serving as an alternate for the 
                Federal Cochairperson, shall perform such 
                functions and duties as are delegated by the 
                Federal Cochairperson.
                    ``(B) State alternates.--The State member 
                of a participating State may have a single 
                alternate, who shall be appointed by the 
                Governor of the State from among the members of 
                the Governor's cabinet or personal staff.
                    ``(C) Voting.--An alternate member shall 
                vote in the case of the absence, death, 
                disability, removal, or resignation of the 
                Federal or State member for which the alternate 
                member is an alternate.
            ``(3) Cochairpersons.--A Commission shall be headed 
        by--
                    ``(A) the Federal Cochairperson, who shall 
                serve as a liaison between the Federal 
                Government and the Commission; and
                    ``(B) a State Cochairperson, who shall be a 
                Governor of a participating State in the region 
                and shall be elected by the State members for a 
                term of not less than 1 year.
            ``(4) Consecutive terms.--A State member may not be 
        elected to serve as State Cochairperson for more than 2 
        consecutive terms.
    ``(c) Compensation.--
            ``(1) Federal cochairpersons.--Each Federal 
        Cochairperson shall be compensated by the Federal 
        Government at level III of the Executive Schedule as 
        set out in section 5314 of title 5.
            ``(2) Alternate federal cochairpersons.--Each 
        Federal Cochairperson's alternate shall be compensated 
        by the Federal Government at level V of the Executive 
        Schedule as set out in section 5316 of title 5.
            ``(3) State members and alternates.--Each State 
        member and alternate shall be compensated by the State 
        that they represent at the rate established by the laws 
        of that State.
    ``(d) Executive Director and Staff.--
            ``(1) In general.--A Commission shall appoint and 
        fix the compensation of an executive director and such 
        other personnel as are necessary to enable the 
        Commission to carry out its duties. Compensation under 
        this paragraph may not exceed the maximum rate of basic 
        pay established for the Senior Executive Service under 
        section 5382 of title 5, including any applicable 
        locality-based comparability payment that may be 
        authorized under section 5304(h)(2)(C) of that title.
            ``(2) Executive director.--The executive director 
        shall be responsible for carrying out the 
        administrative duties of the Commission, directing the 
        Commission staff, and such other duties as the 
        Commission may assign.
    ``(e) No Federal Employee Status.--No member, alternate, 
officer, or employee of a Commission (other than the Federal 
Cochairperson, the alternate Federal Cochairperson, staff of 
the Federal Cochairperson, and any Federal employee detailed to 
the Commission) shall be considered to be a Federal employee 
for any purpose.

``Sec. 15302. Decisions

    ``(a) Requirements for Approval.--Except as provided in 
section 15304(c)(3), decisions by the Commission shall require 
the affirmative vote of the Federal Cochairperson and a 
majority of the State members (exclusive of members 
representing States delinquent under section 15304(c)(3)(C)).
    ``(b) Consultation.--In matters coming before the 
Commission, the Federal Cochairperson shall, to the extent 
practicable, consult with the Federal departments and agencies 
having an interest in the subject matter.
    ``(c) Quorums.--A Commission shall determine what 
constitutes a quorum for Commission meetings; except that--
            ``(1) any quorum shall include the Federal 
        Cochairperson or the alternate Federal Cochairperson; 
        and
            ``(2) a State alternate member shall not be counted 
        toward the establishment of a quorum.
    ``(d) Projects and Grant Proposals.--The approval of 
project and grant proposals shall be a responsibility of each 
Commission and shall be carried out in accordance with section 
15503.

``Sec. 15303. Functions

    ``A Commission shall--
            ``(1) assess the needs and assets of its region 
        based on available research, demonstration projects, 
        investigations, assessments, and evaluations of the 
        region prepared by Federal, State, and local agencies, 
        universities, local development districts, and other 
        nonprofit groups;
            ``(2) develop, on a continuing basis, comprehensive 
        and coordinated economic and infrastructure development 
        strategies to establish priorities and approve grants 
        for the economic development of its region, giving due 
        consideration to other Federal, State, and local 
        planning and development activities in the region;
            ``(3) not later than one year after the date of the 
        enactment of this section, and after taking into 
        account State plans developed under section 15502, 
        establish priorities in an economic and infrastructure 
        development plan for its region, including 5-year 
        regional outcome targets;
            ``(4)(A) enhance the capacity of, and provide 
        support for, local development districts in its region; 
        or
            ``(B) if no local development district exists in an 
        area in a participating State in the region, foster the 
        creation of a local development district;
            ``(5) encourage private investment in industrial, 
        commercial, and other economic development projects in 
        its region;
            ``(6) cooperate with and assist State governments 
        with the preparation of economic and infrastructure 
        development plans and programs for participating 
        States;
            ``(7) formulate and recommend to the Governors and 
        legislatures of States that participate in the 
        Commission forms of interstate cooperation and, where 
        appropriate, international cooperation; and
            ``(8) work with State and local agencies in 
        developing appropriate model legislation to enhance 
        local and regional economic development.

``Sec. 15304. Administrative powers and expenses

    ``(a) Powers.--In carrying out its duties under this 
subtitle, a Commission may--
            ``(1) hold such hearings, sit and act at such times 
        and places, take such testimony, receive such evidence, 
        and print or otherwise reproduce and distribute a 
        description of the proceedings and reports on actions 
        by the Commission as the Commission considers 
        appropriate;
            ``(2) authorize, through the Federal or State 
        Cochairperson or any other member of the Commission 
        designated by the Commission, the administration of 
        oaths if the Commission determines that testimony 
        should be taken or evidence received under oath;
            ``(3) request from any Federal, State, or local 
        agency such information as may be available to or 
        procurable by the agency that may be of use to the 
        Commission in carrying out the duties of the 
        Commission;
            ``(4) adopt, amend, and repeal bylaws and rules 
        governing the conduct of business and the performance 
        of duties by the Commission;
            ``(5) request the head of any Federal agency, State 
        agency, or local government to detail to the Commission 
        such personnel as the Commission requires to carry out 
        its duties, each such detail to be without loss of 
        seniority, pay, or other employee status;
            ``(6) provide for coverage of Commission employees 
        in a suitable retirement and employee benefit system by 
        making arrangements or entering into contracts with any 
        participating State government or otherwise providing 
        retirement and other employee coverage;
            ``(7) accept, use, and dispose of gifts or 
        donations or services or real, personal, tangible, or 
        intangible property;
            ``(8) enter into and perform such contracts, 
        cooperative agreements, or other transactions as are 
        necessary to carry out Commission duties, including any 
        contracts or cooperative agreements with a department, 
        agency, or instrumentality of the United States, a 
        State (including a political subdivision, agency, or 
        instrumentality of the State), or a person, firm, 
        association, or corporation; and
            ``(9) maintain a government relations office in the 
        District of Columbia and establish and maintain a 
        central office at such location in its region as the 
        Commission may select.
    ``(b) Federal Agency Cooperation.--A Federal agency shall--
            ``(1) cooperate with a Commission; and
            ``(2) provide, to the extent practicable, on 
        request of the Federal Cochairperson, appropriate 
        assistance in carrying out this subtitle, in accordance 
        with applicable Federal laws (including regulations).
    ``(c) Administrative Expenses.--
            ``(1) In general.--Subject to paragraph (2), the 
        administrative expenses of a Commission shall be paid--
                    ``(A) by the Federal Government, in an 
                amount equal to 50 percent of the 
                administrative expenses of the Commission; and
                    ``(B) by the States participating in the 
                Commission, in an amount equal to 50 percent of 
                the administrative expenses.
            ``(2) Expenses of the federal cochairperson.--All 
        expenses of the Federal Cochairperson, including 
        expenses of the alternate and staff of the Federal 
        Cochairperson, shall be paid by the Federal Government.
            ``(3) State share.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the share of administrative expenses of a 
                Commission to be paid by each State of the 
                Commission shall be determined by a unanimous 
                vote of the State members of the Commission.
                    ``(B) No federal participation.--The 
                Federal Cochairperson shall not participate or 
                vote in any decision under subparagraph (A).
                    ``(C) Delinquent states.--During any period 
                in which a State is more than 1 year delinquent 
                in payment of the State's share of 
                administrative expenses of the Commission under 
                this subsection--
                            ``(i) no assistance under this 
                        subtitle shall be provided to the State 
                        (including assistance to a political 
                        subdivision or a resident of the State) 
                        for any project not approved as of the 
                        date of the commencement of the 
                        delinquency; and
                            ``(ii) no member of the Commission 
                        from the State shall participate or 
                        vote in any action by the Commission.
            ``(4) Effect on assistance.--A State's share of 
        administrative expenses of a Commission under this 
        subsection shall not be taken into consideration when 
        determining the amount of assistance provided to the 
        State under this subtitle.

``Sec. 15305. Meetings

    ``(a) Initial Meeting.--Each Commission shall hold an 
initial meeting not later than 180 days after the date of the 
enactment of this section.
    ``(b) Annual Meeting.--Each Commission shall conduct at 
least 1 meeting each year with the Federal Cochairperson and at 
least a majority of the State members present.
    ``(c) Additional Meetings.--Each Commission shall conduct 
additional meetings at such times as it determines and may 
conduct such meetings by electronic means.

``Sec. 15306. Personal financial interests

    ``(a) Conflicts of Interest.--
            ``(1) No role allowed.--Except as permitted by 
        paragraph (2), an individual who is a State member or 
        alternate, or an officer or employee of a Commission, 
        shall not participate personally and substantially as a 
        member, alternate, officer, or employee of the 
        Commission, through decision, approval, disapproval, 
        recommendation, request for a ruling, or other 
        determination, contract, claim, controversy, or other 
        matter in which, to the individual's knowledge, any of 
        the following has a financial interest:
                    ``(A) The individual.
                    ``(B) The individual's spouse, minor child, 
                or partner.
                    ``(C) An organization (except a State or 
                political subdivision of a State) in which the 
                individual is serving as an officer, director, 
                trustee, partner, or employee.
                    ``(D) Any person or organization with whom 
                the individual is negotiating or has any 
                arrangement concerning prospective employment.
            ``(2) Exception.--Paragraph (1) shall not apply if 
        the individual, in advance of the proceeding, 
        application, request for a ruling or other 
        determination, contract, claim controversy, or other 
        particular matter presenting a potential conflict of 
        interest--
                    ``(A) advises the Commission of the nature 
                and circumstances of the matter presenting the 
                conflict of interest;
                    ``(B) makes full disclosure of the 
                financial interest; and
                    ``(C) receives a written decision of the 
                Commission that the interest is not so 
                substantial as to be considered likely to 
                affect the integrity of the services that the 
                Commission may expect from the individual.
            ``(3) Violation.--An individual violating this 
        subsection shall be fined under title 18, imprisoned 
        for not more than 1 year, or both.
    ``(b) State Member or Alternate.--A State member or 
alternate member may not receive any salary, or any 
contribution to, or supplementation of, salary, for services on 
a Commission from a source other than the State of the member 
or alternate.
    ``(c) Detailed Employees.--
            ``(1) In general.--No person detailed to serve a 
        Commission shall receive any salary, or any 
        contribution to, or supplementation of, salary, for 
        services provided to the Commission from any source 
        other than the State, local, or intergovernmental 
        department or agency from which the person was detailed 
        to the Commission.
            ``(2) Violation.--Any person that violates this 
        subsection shall be fined under title 18, imprisoned 
        not more than 1 year, or both.
    ``(d) Federal Cochairman, Alternate to Federal Cochairman, 
and Federal Officers and Employees.--The Federal Cochairman, 
the alternate to the Federal Cochairman, and any Federal 
officer or employee detailed to duty with the Commission are 
not subject to this section but remain subject to sections 202 
through 209 of title 18.
    ``(e) Rescission.--A Commission may declare void any 
contract, loan, or grant of or by the Commission in relation to 
which the Commission determines that there has been a violation 
of any provision under subsection (a)(1), (b), or (c), or any 
of the provisions of sections 202 through 209 of title 18.

``Sec. 15307. Tribal participation

    ``Governments of Indian tribes in the region of the 
Southwest Border Regional Commission shall be allowed to 
participate in matters before that Commission in the same 
manner and to the same extent as State agencies and 
instrumentalities in the region.

``Sec. 15308. Annual report

    ``(a) In General.--Not later than 90 days after the last 
day of each fiscal year, each Commission shall submit to the 
President and Congress a report on the activities carried out 
by the Commission under this subtitle in the fiscal year.
    ``(b) Contents.--The report shall include--
            ``(1) a description of the criteria used by the 
        Commission to designate counties under section 15702 
        and a list of the counties designated in each category;
            ``(2) an evaluation of the progress of the 
        Commission in meeting the goals identified in the 
        Commission's economic and infrastructure development 
        plan under section 15303 and State economic and 
        infrastructure development plans under section 15502; 
        and
            ``(3) any policy recommendations approved by the 
        Commission.

                   ``CHAPTER 3--FINANCIAL ASSISTANCE

``Sec.
``15501. Economic and infrastructure development grants.
``15502. Comprehensive economic and infrastructure development plans.
``15503. Approval of applications for assistance.
``15504. Program development criteria.
``15505. Local development districts and organizations.
``15506. Supplements to Federal grant programs.

``Sec. 15501. Economic and infrastructure development grants

    ``(a) In General.--A Commission may make grants to States 
and local governments, Indian tribes, and public and nonprofit 
organizations for projects, approved in accordance with section 
15503--
            ``(1) to develop the transportation infrastructure 
        of its region;
            ``(2) to develop the basic public infrastructure of 
        its region;
            ``(3) to develop the telecommunications 
        infrastructure of its region;
            ``(4) to assist its region in obtaining job skills 
        training, skills development and employment-related 
        education, entrepreneurship, technology, and business 
        development;
            ``(5) to provide assistance to severely 
        economically distressed and underdeveloped areas of its 
        region that lack financial resources for improving 
        basic health care and other public services;
            ``(6) to promote resource conservation, tourism, 
        recreation, and preservation of open space in a manner 
        consistent with economic development goals;
            ``(7) to promote the development of renewable and 
        alternative energy sources; and
            ``(8) to otherwise achieve the purposes of this 
        subtitle.
    ``(b) Allocation of Funds.--A Commission shall allocate at 
least 40 percent of any grant amounts provided by the 
Commission in a fiscal year for projects described in 
paragraphs (1) through (3) of subsection (a).
    ``(c) Sources of Grants.--Grant amounts may be provided 
entirely from appropriations to carry out this subtitle, in 
combination with amounts available under other Federal grant 
programs, or from any other source.
    ``(d) Maximum Commission Contributions.--
            ``(1) In general.--Subject to paragraphs (2) and 
        (3), the Commission may contribute not more than 50 
        percent of a project or activity cost eligible for 
        financial assistance under this section from amounts 
        appropriated to carry out this subtitle.
            ``(2) Distressed counties.--The maximum Commission 
        contribution for a project or activity to be carried 
        out in a county for which a distressed county 
        designation is in effect under section 15702 may be 
        increased to 80 percent.
            ``(3) Special rule for regional projects.--A 
        Commission may increase to 60 percent under paragraph 
        (1) and 90 percent under paragraph (2) the maximum 
        Commission contribution for a project or activity if--
                    ``(A) the project or activity involves 3 or 
                more counties or more than one State; and
                    ``(B) the Commission determines in 
                accordance with section 15302(a) that the 
                project or activity will bring significant 
                interstate or multicounty benefits to a region.
    ``(e) Maintenance of Effort.--Funds may be provided by a 
Commission for a program or project in a State under this 
section only if the Commission determines that the level of 
Federal or State financial assistance provided under a law 
other than this subtitle, for the same type of program or 
project in the same area of the State within region, will not 
be reduced as a result of funds made available by this 
subtitle.
    ``(f) No Relocation Assistance.--Financial assistance 
authorized by this section may not be used to assist a person 
or entity in relocating from one area to another.

``Sec. 15502. Comprehensive economic and infrastructure development 
                    plans

    ``(a) State Plans.--In accordance with policies established 
by a Commission, each State member of the Commission shall 
submit a comprehensive economic and infrastructure development 
plan for the area of the region represented by the State 
member.
    ``(b) Content of Plan.--A State economic and infrastructure 
development plan shall reflect the goals, objectives, and 
priorities identified in any applicable economic and 
infrastructure development plan developed by a Commission under 
section 15303.
    ``(c) Consultation With Interested Local Parties.--In 
carrying out the development planning process (including the 
selection of programs and projects for assistance), a State 
shall--
            ``(1) consult with local development districts, 
        local units of government, and local colleges and 
        universities; and
            ``(2) take into consideration the goals, 
        objectives, priorities, and recommendations of the 
        entities described in paragraph (1).
    ``(d) Public Participation.--
            ``(1) In general.--A Commission and applicable 
        State and local development districts shall encourage 
        and assist, to the maximum extent practicable, public 
        participation in the development, revision, and 
        implementation of all plans and programs under this 
        subtitle.
            ``(2) Guidelines.--A Commission shall develop 
        guidelines for providing public participation, 
        including public hearings.

``Sec. 15503. Approval of applications for assistance

    ``(a) Evaluation by State Member.--An application to a 
Commission for a grant or any other assistance for a project 
under this subtitle shall be made through, and evaluated for 
approval by, the State member of the Commission representing 
the applicant.
    ``(b) Certification.--An application to a Commission for a 
grant or other assistance for a project under this subtitle 
shall be eligible for assistance only on certification by the 
State member of the Commission representing the applicant that 
the application for the project--
            ``(1) describes ways in which the project complies 
        with any applicable State economic and infrastructure 
        development plan;
            ``(2) meets applicable criteria under section 
        15504;
            ``(3) adequately ensures that the project will be 
        properly administered, operated, and maintained; and
            ``(4) otherwise meets the requirements for 
        assistance under this subtitle.
    ``(c) Votes for Decisions.--On certification by a State 
member of a Commission of an application for a grant or other 
assistance for a specific project under this section, an 
affirmative vote of the Commission under section 15302 shall be 
required for approval of the application.

``Sec. 15504. Program development criteria

    ``In considering programs and projects to be provided 
assistance by a Commission under this subtitle, and in 
establishing a priority ranking of the requests for assistance 
provided to the Commission, the Commission shall follow 
procedures that ensure, to the maximum extent practicable, 
consideration of--
            ``(1) the relationship of the project or class of 
        projects to overall regional development;
            ``(2) the per capita income and poverty and 
        unemployment and outmigration rates in an area;
            ``(3) the financial resources available to the 
        applicants for assistance seeking to carry out the 
        project, with emphasis on ensuring that projects are 
        adequately financed to maximize the probability of 
        successful economic development;
            ``(4) the importance of the project or class of 
        projects in relation to the other projects or classes 
        of projects that may be in competition for the same 
        funds;
            ``(5) the prospects that the project for which 
        assistance is sought will improve, on a continuing 
        rather than a temporary basis, the opportunities for 
        employment, the average level of income, or the 
        economic development of the area to be served by the 
        project; and
            ``(6) the extent to which the project design 
        provides for detailed outcome measurements by which 
        grant expenditures and the results of the expenditures 
        may be evaluated.

``Sec. 15505. Local development districts and organizations

    ``(a) Grants to Local Development Districts.--Subject to 
the requirements of this section, a Commission may make grants 
to a local development district to assist in the payment of 
development planning and administrative expenses.
    ``(b) Conditions for Grants.--
            ``(1) Maximum amount.--The amount of a grant 
        awarded under this section may not exceed 80 percent of 
        the administrative and planning expenses of the local 
        development district receiving the grant.
            ``(2) Maximum period for state agencies.--In the 
        case of a State agency certified as a local development 
        district, a grant may not be awarded to the agency 
        under this section for more than 3 fiscal years.
            ``(3) Local share.--The contributions of a local 
        development district for administrative expenses may be 
        in cash or in kind, fairly evaluated, including space, 
        equipment, and services.
    ``(c) Duties of Local Development Districts.--A local 
development district shall--
            ``(1) operate as a lead organization serving 
        multicounty areas in the region at the local level;
            ``(2) assist the Commission in carrying out 
        outreach activities for local governments, community 
        development groups, the business community, and the 
        public;
            ``(3) serve as a liaison between State and local 
        governments, nonprofit organizations (including 
        community-based groups and educational institutions), 
        the business community, and citizens; and
            ``(4) assist the individuals and entities described 
        in paragraph (3) in identifying, assessing, and 
        facilitating projects and programs to promote the 
        economic development of the region.

``Sec. 15506. Supplements to Federal grant programs

    ``(a) Finding.--Congress finds that certain States and 
local communities of the region, including local development 
districts, may be unable to take maximum advantage of Federal 
grant programs for which the States and communities are 
eligible because--
            ``(1) they lack the economic resources to provide 
        the required matching share; or
            ``(2) there are insufficient funds available under 
        the applicable Federal law with respect to a project to 
        be carried out in the region.
    ``(b) Federal Grant Program Funding.--A Commission, with 
the approval of the Federal Cochairperson, may use amounts made 
available to carry out this subtitle--
            ``(1) for any part of the basic Federal 
        contribution to projects or activities under the 
        Federal grant programs authorized by Federal laws; and
            ``(2) to increase the Federal contribution to 
        projects and activities under the programs above the 
        fixed maximum part of the cost of the projects or 
        activities otherwise authorized by the applicable law.
    ``(c) Certification Required.--For a program, project, or 
activity for which any part of the basic Federal contribution 
to the project or activity under a Federal grant program is 
proposed to be made under subsection (b), the Federal 
contribution shall not be made until the responsible Federal 
official administering the Federal law authorizing the Federal 
contribution certifies that the program, project, or activity 
meets the applicable requirements of the Federal law and could 
be approved for Federal contribution under that law if amounts 
were available under the law for the program, project, or 
activity.
    ``(d) Limitations in Other Laws Inapplicable.--Amounts 
provided pursuant to this subtitle are available without regard 
to any limitations on areas eligible for assistance or 
authorizations for appropriation in any other law.
    ``(e) Federal Share.--The Federal share of the cost of a 
project or activity receiving assistance under this section 
shall not exceed 80 percent.
    ``(f) Maximum Commission Contribution.--Section 15501(d), 
relating to limitations on Commission contributions, shall 
apply to a program, project, or activity receiving assistance 
under this section.

                 ``CHAPTER 4--ADMINISTRATIVE PROVISIONS

                    ``subchapter i--general provisions

``Sec. 15701. Consent of States.
``Sec. 15702. Distressed counties and areas.
``Sec. 15703. Counties eligible for assistance in more than one region.
``Sec. 15704. Inspector General; records.
``Sec. 15705. Biannual meetings of representatives of all Commissions.

                 ``subchapter ii--designation of regions

``Sec. 15731. Southeast Crescent Regional Commission.
``Sec. 15732. Southwest Border Regional Commission.
``Sec. 15733. Northern Border Regional Commission.

            ``subchapter iii--authorization of appropriations

``Sec. 15751. Authorization of appropriations.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 15701. Consent of States

    ``This subtitle does not require a State to engage in or 
accept a program under this subtitle without its consent.

``Sec. 15702. Distressed counties and areas

    ``(a) Designations.--Not later than 90 days after the date 
of the enactment of this section, and annually thereafter, each 
Commission shall make the following designations:
            ``(1) Distressed counties.--The Commission shall 
        designate as distressed counties those counties in its 
        region that are the most severely and persistently 
        economically distressed and underdeveloped and have 
        high rates of poverty, unemployment, or outmigration.
            ``(2) Transitional counties.--The Commission shall 
        designate as transitional counties those counties in 
        its region that are economically distressed and 
        underdeveloped or have recently suffered high rates of 
        poverty, unemployment, or outmigration.
            ``(3) Attainment counties.--The Commission shall 
        designate as attainment counties, those counties in its 
        region that are not designated as distressed or 
        transitional counties under this subsection.
            ``(4) Isolated areas of distress.--The Commission 
        shall designate as isolated areas of distress, areas 
        located in counties designated as attainment counties 
        under paragraph (3) that have high rates of poverty, 
        unemployment, or outmigration.
    ``(b) Allocation.--A Commission shall allocate at least 50 
percent of the appropriations made available to the Commission 
to carry out this subtitle for programs and projects designed 
to serve the needs of distressed counties and isolated areas of 
distress in the region.
    ``(c) Attainment Counties.--
            ``(1) In general.--Except as provided in paragraph 
        (2), funds may not be provided under this subtitle for 
        a project located in a county designated as an 
        attainment county under subsection (a).
            ``(2) Exceptions.--
                    ``(A) Administrative expenses of local 
                development districts.--The funding prohibition 
                under paragraph (1) shall not apply to grants 
                to fund the administrative expenses of local 
                development districts under section 15505.
                    ``(B) Multicounty and other projects.--A 
                Commission may waive the application of the 
                funding prohibition under paragraph (1) with 
                respect to--
                            ``(i) a multicounty project that 
                        includes participation by an attainment 
                        county; and
                            ``(ii) any other type of project, 
                        if a Commission determines that the 
                        project could bring significant 
                        benefits to areas of the region outside 
                        an attainment county.
            ``(3) Isolated areas of distress.--For a 
        designation of an isolated area of distress to be 
        effective, the designation shall be supported--
                    ``(A) by the most recent Federal data 
                available; or
                    ``(B) if no recent Federal data are 
                available, by the most recent data available 
                through the government of the State in which 
                the isolated area of distress is located.

``Sec. 15703. Counties eligible for assistance in more than one region

    ``(a) Limitation.--A political subdivision of a State may 
not receive assistance under this subtitle in a fiscal year 
from more than one Commission.
    ``(b) Selection of Commission.--A political subdivision 
included in the region of more than one Commission shall select 
the Commission with which it will participate by notifying, in 
writing, the Federal Cochairperson and the appropriate State 
member of that Commission.
    ``(c) Changes in Selections.--The selection of a Commission 
by a political subdivision shall apply in the fiscal year in 
which the selection is made, and shall apply in each subsequent 
fiscal year unless the political subdivision, at least 90 days 
before the first day of the fiscal year, notifies the 
Cochairpersons of another Commission in writing that the 
political subdivision will participate in that Commission and 
also transmits a copy of such notification to the 
Cochairpersons of the Commission in which the political 
subdivision is currently participating.
    ``(d) Inclusion of Appalachian Regional Commission.--In 
this section, the term `Commission' includes the Appalachian 
Regional Commission established under chapter 143.

``Sec. 15704. Inspector General; records

    ``(a) Appointment of Inspector General.--There shall be an 
Inspector General for the Commissions appointed in accordance 
with section 3(a) of the Inspector General Act of 1978 (5 
U.S.C. App.). All of the Commissions shall be subject to a 
single Inspector General.
    ``(b) Records of a Commission.--
            ``(1) In general.--A Commission shall maintain 
        accurate and complete records of all its transactions 
        and activities.
            ``(2) Availability.--All records of a Commission 
        shall be available for audit and examination by the 
        Inspector General (including authorized representatives 
        of the Inspector General).
    ``(c) Records of Recipients of Commission Assistance.--
            ``(1) In general.--A recipient of funds from a 
        Commission under this subtitle shall maintain accurate 
        and complete records of transactions and activities 
        financed with the funds and report to the Commission on 
        the transactions and activities.
            ``(2) Availability.--All records required under 
        paragraph (1) shall be available for audit by the 
        Commission and the Inspector General (including 
        authorized representatives of the Commission and the 
        Inspector General).
    ``(d) Annual Audit.--The Inspector General shall audit the 
activities, transactions, and records of each Commission on an 
annual basis.

``Sec. 15705. Biannual meetings of representatives of all Commissions

    ``(a) In General.--Representatives of each Commission, the 
Appalachian Regional Commission, and the Denali Commission 
shall meet biannually to discuss issues confronting regions 
suffering from chronic and contiguous distress and successful 
strategies for promoting regional development.
    ``(b) Chair of Meetings.--The chair of each meeting shall 
rotate among the Commissions, with the Appalachian Regional 
Commission to host the first meeting.

                ``SUBCHAPTER II--DESIGNATION OF REGIONS

``Sec. 15731. Southeast Crescent Regional Commission

    ``The region of the Southeast Crescent Regional Commission 
shall consist of all counties of the States of Virginia, North 
Carolina, South Carolina, Georgia, Alabama, Mississippi, and 
Florida not already served by the Appalachian Regional 
Commission or the Delta Regional Authority.

``Sec. 15732. Southwest Border Regional Commission

    ``The region of the Southwest Border Regional Commission 
shall consist of the following political subdivisions:
            ``(1) Arizona.--The counties of Cochise, Gila, 
        Graham, Greenlee, La Paz, Maricopa, Pima, Pinal, Santa 
        Cruz, and Yuma in the State of Arizona.
            ``(2) California.--The counties of Imperial, Los 
        Angeles, Orange, Riverside, San Bernardino, San Diego, 
        and Ventura in the State of California.
            ``(3) New mexico.--The counties of Catron, Chaves, 
        Dona Ana, Eddy, Grant, Hidalgo, Lincoln, Luna, Otero, 
        Sierra, and Socorro in the State of New Mexico.
            ``(4) Texas.--The counties of Atascosa, Bandera, 
        Bee, Bexar, Brewster, Brooks, Cameron, Coke, Concho, 
        Crane, Crockett, Culberson, Dimmit, Duval, Ector, 
        Edwards, El Paso, Frio, Gillespie, Glasscock, Hidalgo, 
        Hudspeth, Irion, Jeff Davis, Jim Hogg, Jim Wells, 
        Karnes, Kendall, Kenedy, Kerr, Kimble, Kinney, Kleberg, 
        La Salle, Live Oak, Loving, Mason, Maverick, McMullen, 
        Medina, Menard, Midland, Nueces, Pecos, Presidio, 
        Reagan, Real, Reeves, San Patricio, Shleicher, Sutton, 
        Starr, Sterling, Terrell, Tom Green Upton, Uvalde, Val 
        Verde, Ward, Webb, Willacy, Wilson, Winkler, Zapata, 
        and Zavala in the State of Texas.

``Sec. 15733. Northern Border Regional Commission

    ``The region of the Northern Border Regional Commission 
shall include the following counties:
            ``(1) Maine.--The counties of Androscoggin, 
        Aroostook, Franklin, Hancock, Kennebec, Knox, Oxford, 
        Penobscot, Piscataquis, Somerset, Waldo, and Washington 
        in the State of Maine.
            ``(2) New hampshire.--The counties of Carroll, 
        Coos, Grafton, and Sullivan in the State of New 
        Hampshire.
            ``(3) New york.--The counties of Cayuga, Clinton, 
        Essex, Franklin, Fulton, Hamilton, Herkimer, Jefferson, 
        Lewis, Madison, Oneida, Oswego, Seneca, and St. 
        Lawrence in the State of New York.
            ``(4) Vermont.--The counties of Caledonia, Essex, 
        Franklin, Grand Isle, Lamoille, and Orleans in the 
        State of Vermont.

           ``SUBCHAPTER III--AUTHORIZATION OF APPROPRIATIONS

``Sec. 15751. Authorization of appropriations

    ``(a) In General.--There is authorized to be appropriated 
to each Commission to carry out this subtitle $30,000,000 for 
each of fiscal years 2008 through 2012.
    ``(b) Administrative Expenses.--Not more than 10 percent of 
the funds made available to a Commission in a fiscal year under 
this section may be used for administrative expenses.''.
    (b) Clerical Amendment to Table of Subtitles.--The table of 
subtitles for chapter 40, United States Code, is amended by 
striking the item relating to subtitle V and inserting the 
following:

``V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.............15101 
``VI. MISCELLANEOUS.............................................17101''.
    (c) Conforming Amendments to Inspector General Act.--
Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) 
is amended--
            (1) in paragraph (1), by striking ``or the 
        President of the Export-Import Bank;'' and inserting 
        ``the President of the Export-Import Bank; or the 
        Federal Cochairpersons of the Commissions established 
        under section 15301 of title 40, United States Code;''; 
        and
            (2) in paragraph (2), by striking ``or the Export-
        Import Bank,'' and inserting ``the Export-Import Bank, 
        or the Commissions established under section 15301 of 
        title 40, United States Code,''.
    (d) Effective Date.--This section, and the amendments made 
by this section, shall take effect on the first day of the 
first fiscal year beginning after the date of the enactment of 
this Act.

SEC. 14218. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL AREAS.

    (a) Establishment.--The Secretary of Agriculture shall 
establish a Coordinator for Chronically Underserved Rural Areas 
(in this section referred to as the ``Coordinator''), to be 
located in the Rural Development Mission Area.
    (b) Mission.--The mission of the Coordinator shall be to 
direct Department of Agriculture resources to high need, high 
poverty rural areas.
    (c) Duties.--The Coordinator shall consult with other 
offices in directing technical assistance, strategic regional 
planning, at the State and local level, for developing rural 
economic development that leverages the resources of State and 
local governments and non-profit and community development 
organizations.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary such sums as necessary to 
carry out this section for fiscal years 2008 through 2012.

SEC. 14219. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE TO 
                    COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.

    (a) Elimination.--Section 3716(e) of title 31, United 
States Code, is amended to read as follows:
    ``(e)(1) Notwithstanding any other provision of law, 
regulation, or administrative limitation, no limitation on the 
period within which an offset may be initiated or taken 
pursuant to this section shall be effective.
    ``(2) This section does not apply when a statute explicitly 
prohibits using administrative offset or setoff to collect the 
claim or type of claim involved.''.
    (b) Application of Amendment.--The amendment made by 
subsection (a) shall apply to any debt outstanding on or after 
the date of the enactment of this Act.

SEC. 14220. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN RURAL 
                    AREAS.

    In addition to any other authority, the Secretary of 
Agriculture may make available to an organization excess or 
surplus computers or other technical equipment of the 
Department of Agriculture for the purposes of distribution to a 
city, town, or local government entity in a rural area (as 
defined in section 343(a)(13)(A) of the Consolidated Farm and 
Rural Development Act).

SEC. 14221. REPEAL OF SECTION 3068 OF THE WATER RESOURCES DEVELOPMENT 
                    ACT OF 2007.

    Effective upon the date of enactment of this Act, section 
3068 of the Water Resources Development Act of 2007 (Public Law 
110-114; 121 Stat. 1123), and the item relating to section 3068 
in the table of contents of that Act, are repealed.

SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS.

    (a) Definition of Section 32.--In this section, the term 
``section 32'' means section 32 of the Act of August 24, 1935 
(7 U.S.C. 612c).
    (b) Transfer to Food and Nutrition Service.--
            (1) In general.--Amounts made available for a 
        fiscal year to carry out section 32 in excess of the 
        maximum amount calculated under paragraph (2) shall be 
        transferred to the Secretary, acting through the 
        Administrator of the Food and Nutrition Service, to be 
        used to carry out the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1751 et seq.).
            (2) Maximum amount.--The maximum amount calculated 
        under this paragraph for a fiscal year is the sum of--
                    (A)(i) in the case of fiscal year 2009, 
                $1,173,000,000;
                    (ii) in the case of fiscal year 2010, 
                $1,199,000,000;
                    (iii) in the case of fiscal year 2011, 
                $1,215,000,000;
                    (iv) in the case of fiscal year 2012, 
                $1,231,000,000;
                    (v) in the case of fiscal year 2013, 
                $1,248,000,000;
                    (vi) in the case of fiscal year 2014, 
                $1,266,000,000;
                    (vii) in the case of fiscal year 2015, 
                $1,284,000,000;
                    (viii) in the case of fiscal year 2016, 
                $1,303,000,000;
                    (ix) in the case of fiscal year 2017, 
                $1,322,000,000; and
                    (x) for fiscal year 2018 and each fiscal 
                year thereafter, the amount made available for 
                the preceding fiscal year, as adjusted to 
                reflect changes for the 12-month period ending 
                on the preceding November 30 in the Consumer 
                Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the 
                Department of Labor; and
            (B) any transfers for the fiscal year from section 
        32 to the Department of Commerce under the Fish and 
        Wildlife Act of 1956 (16 U.S.C. 742a et seq.).
    (c) Fresh Fruit and Vegetable Program.--Of amounts made 
available to carry out section 32 under subsection (b)(2)(A), 
the Secretary shall transfer for use to carry out the fresh 
fruit and vegetable program under section 19 of the Richard B. 
Russell National School Lunch Act the amounts specified in 
subsection (i) of that section.
    (d) Whole Grain Products.--Of amounts made available to 
carry out section 32 under subsection (b)(2)(A), the Secretary 
shall use to carry out section 4305 $4,000,000 for fiscal year 
2009.
    (e) Maintenance of Funding.--The funding provided under 
subsections (c) and (d) shall supplement (and not supplant) 
other Federal funding (including section 32 funding) for 
programs carried out under--
            (1) the Richard B. Russell National School Lunch 
        Act (42 U.S.C. 1751 et seq.), except for section 19 of 
        that Act;
            (2) the Emergency Food Assistance Act of 1983 (7 
        U.S.C. 7501 et seq.); and
            (3) section 27 of the Food Stamp Act of 1977 (7 
        U.S.C. 2036).

SEC. 14223. TECHNICAL CORRECTION.

    Section 923(1)(B) of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 2206a(1)(B)) is amended by 
striking ``as defined in section 316(b) of the Higher Education 
Act of 1965 (20 U.S.C. 1059c(b))'' and inserting ``as defined 
in section 502(a)(5) of the Higher Education Act of 1965 (20 
U.S.C. 1101a(a)(5))''.

                   TITLE XV--TRADE AND TAX PROVISIONS

SEC. 15001. SHORT TITLE; ETC.

    (a) Short Title.--This title may be cited as the 
``Heartland, Habitat, Harvest, and Horticulture Act of 2008''.
    (b) Amendments to 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue 
Code of 1986.

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

SEC. 15101. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    (a) In General.--The Trade Act of 1974 (19 U.S.C. 2101 et 
seq.) is amended by adding at the end the following:

       ``TITLE IX--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE

``SEC. 901. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    ``(a) Definitions.--In this section:
            ``(1) Actual production history yield.--The term 
        `actual production history yield' means the weighted 
        average of the actual production history for each 
        insurable commodity or noninsurable commodity, as 
        calculated under the Federal Crop Insurance Act (7 
        U.S.C. 1501 et seq.) or the noninsured crop disaster 
        assistance program, respectively.
            ``(2) Adjusted actual production history yield.--
        The term `adjusted actual production history yield' 
        means--
                    ``(A) in the case of an eligible producer 
                on a farm that has at least 4 years of actual 
                production history yields for an insurable 
                commodity that are established other than 
                pursuant to section 508(g)(4)(B) of the Federal 
                Crop Insurance Act (7 U.S.C. 1508(g)(4)(B)), 
                the actual production history for the eligible 
                producer without regard to any yields 
                established under that section;
                    ``(B) in the case of an eligible producer 
                on a farm that has less than 4 years of actual 
                production history yields for an insurable 
                commodity, of which 1 or more were established 
                pursuant to section 508(g)(4)(B) of that Act, 
                the actual production history for the eligible 
                producer as calculated without including the 
                lowest of the yields established pursuant to 
                section 508(g)(4)(B) of that Act; and
                    ``(C) in all other cases, the actual 
                production history of the eligible producer on 
                a farm.
            ``(3) Adjusted noninsured crop disaster assistance 
        program yield.--The term `adjusted noninsured crop 
        disaster assistance program yield' means--
                    ``(A) in the case of an eligible producer 
                on a farm that has at least 4 years of 
                production history under the noninsured crop 
                disaster assistance program that are not 
                replacement yields, the noninsured crop 
                disaster assistance program yield without 
                regard to any replacement yields;
                    ``(B) in the case of an eligible producer 
                on a farm that less than 4 years of production 
                history under the noninsured crop disaster 
                assistance program that are not replacement 
                yields, the noninsured crop disaster assistance 
                program yield as calculated without including 
                the lowest of the replacement yields; and
                    ``(C) in all other cases, the production 
                history of the eligible producer on the farm 
                under the noninsured crop disaster assistance 
                program.
            ``(4) Counter-cyclical program payment yield.--The 
        term `counter-cyclical program payment yield' means the 
        weighted average payment yield established under 
        section 1102 of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 7912), section 1102 of the Food, 
        Conservation, and Energy Act of 2008, or a successor 
        section.
            ``(5) Disaster county.--
                    ``(A) In general.--The term `disaster 
                county' means a county included in the 
                geographic area covered by a qualifying natural 
                disaster declaration.
                    ``(B) Inclusion.--The term `disaster 
                county' includes--
                            ``(i) a county contiguous to a 
                        county described in subparagraph (A); 
                        and
                            ``(ii) any farm in which, during a 
                        calendar year, the total loss of 
                        production of the farm relating to 
                        weather is greater than 50 percent of 
                        the normal production of the farm, as 
                        determined by the Secretary.
            ``(6) Eligible producer on a farm.--
                    ``(A) In general.--The term `eligible 
                producer on a farm' means an individual or 
                entity described in subparagraph (B) that, as 
                determined by the Secretary, assumes the 
                production and market risks associated with the 
                agricultural production of crops or livestock.
                    ``(B) Description.--An individual or entity 
                referred to in subparagraph (A) is--
                            ``(i) a citizen of the United 
                        States;
                            ``(ii) a resident alien;
                            ``(iii) a partnership of citizens 
                        of the United States; or
                            ``(iv) a corporation, limited 
                        liability corporation, or other farm 
                        organizational structure organized 
                        under State law.
            ``(7) Farm.--
                    ``(A) In general.--The term `farm' means, 
                in relation to an eligible producer on a farm, 
                the sum of all crop acreage in all counties 
                that is planted or intended to be planted for 
                harvest by the eligible producer.
                    ``(B) Aquaculture.--In the case of 
                aquaculture, the term `farm' means, in relation 
                to an eligible producer on a farm, all fish 
                being produced in all counties that are 
                intended to be harvested for sale by the 
                eligible producer.
                    ``(C) Honey.--In the case of honey, the 
                term `farm' means, in relation to an eligible 
                producer on a farm, all bees and beehives in 
                all counties that are intended to be harvested 
                for a honey crop by the eligible producer.
            ``(8) Farm-raised fish.--The term `farm-raised 
        fish' means any aquatic species that is propagated and 
        reared in a controlled environment.
            ``(9) Insurable commodity.--The term `insurable 
        commodity' means an agricultural commodity (excluding 
        livestock) for which the producer on a farm is eligible 
        to obtain a policy or plan of insurance under the 
        Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
            ``(10) Livestock.--The term `livestock' includes--
                    ``(A) cattle (including dairy cattle);
                    ``(B) bison;
                    ``(C) poultry;
                    ``(D) sheep;
                    ``(E) swine;
                    ``(F) horses; and
                    ``(G) other livestock, as determined by the 
                Secretary.
            ``(11) Noninsurable commodity.--The term 
        `noninsurable commodity' means a crop for which the 
        eligible producers on a farm are eligible to obtain 
        assistance under the noninsured crop assistance 
        program.
            ``(12) Noninsured crop assistance program.--The 
        term `noninsured crop assistance program' means the 
        program carried out under section 196 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7333).
            ``(13) Qualifying natural disaster declaration.--
        The term `qualifying natural disaster declaration' 
        means a natural disaster declared by the Secretary for 
        production losses under section 321(a) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1961(a)).
            ``(14) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.
            ``(15) Socially disadvantaged farmer or rancher.--
        The term `socially disadvantaged farmer or rancher' has 
        the meaning given the term in section 2501(e) of the 
        Food, Agriculture, Conservation, and Trade Act of 1990 
        (7 U.S.C. 2279(e)).
            ``(16) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of 
                the United States.
            ``(17) Trust fund.--The term `Trust Fund' means the 
        Agricultural Disaster Relief Trust Fund established 
        under section 902.
            ``(18) United states.--The term `United States' 
        when used in a geographical sense, means all of the 
        States.
    ``(b) Supplemental Revenue Assistance Payments.--
            ``(1) In general.--The Secretary shall use such 
        sums as are necessary from the Trust Fund to make crop 
        disaster assistance payments to eligible producers on 
        farms in disaster counties that have incurred crop 
        production losses or crop quality losses, or both, 
        during the crop year.
            ``(2) Amount.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall provide crop disaster 
                assistance payments under this section to an 
                eligible producer on a farm in an amount equal 
                to 60 percent of the difference between--
                            ``(i) the disaster assistance 
                        program guarantee, as described in 
                        paragraph (3); and
                            ``(ii) the total farm revenue for a 
                        farm, as described in paragraph (4).
                    ``(B) Limitation.--The disaster assistance 
                program guarantee for a crop used to calculate 
                the payments for a farm under subparagraph 
                (A)(i) may not be greater than 90 percent of 
                the sum of the expected revenue, as described 
                in paragraph (5) for each of the crops on a 
                farm, as determined by the Secretary.
            ``(3) Supplemental revenue assistance program 
        guarantee.--
                    ``(A) In general.--Except as otherwise 
                provided in this paragraph, the supplemental 
                assistance program guarantee shall be the sum 
                obtained by adding--
                            ``(i) for each insurable commodity 
                        on the farm, 115 percent of the product 
                        obtained by multiplying--
                                    ``(I) a payment rate for 
                                the commodity that is equal to 
                                the price election for the 
                                commodity elected by the 
                                eligible producer;
                                    ``(II) the payment acres 
                                for the commodity that is equal 
                                to the number of acres planted, 
                                or prevented from being 
                                planted, to the commodity;
                                    ``(III) the payment yield 
                                for the commodity that is equal 
                                to the percentage of the crop 
                                insurance yield elected by the 
                                producer of the higher of--
                                            ``(aa) the adjusted 
                                        actual production 
                                        history yield; or
                                            ``(bb) the counter-
                                        cyclical program 
                                        payment yield for each 
                                        crop; and
                            ``(ii) for each noninsurable 
                        commodity on a farm, 120 percent of the 
                        product obtained by multiplying--
                                    ``(I) a payment rate for 
                                the commodity that is equal to 
                                100 percent of the noninsured 
                                crop assistance program 
                                established price for the 
                                commodity;
                                    ``(II) the payment acres 
                                for the commodity that is equal 
                                to the number of acres planted, 
                                or prevented from being 
                                planted, to the commodity; and
                                    ``(III) the payment yield 
                                for the commodity that is equal 
                                to the higher of--
                                            ``(aa) the adjusted 
                                        noninsured crop 
                                        assistance program 
                                        yield guarantee; or
                                            ``(bb) the counter-
                                        cyclical program 
                                        payment yield for each 
                                        crop.
                    ``(B) Adjustment insurance guarantee.--
                Notwithstanding subparagraph (A), in the case 
                of an insurable commodity for which a plan of 
                insurance provides for an adjustment in the 
                guarantee, such as in the case of prevented 
                planting, the adjusted insurance guarantee 
                shall be the basis for determining the disaster 
                assistance program guarantee for the insurable 
                commodity.
                    ``(C) Adjusted assistance level.--
                Notwithstanding subparagraph (A), in the case 
                of a noninsurable commodity for which the 
                noninsured crop assistance program provides for 
                an adjustment in the level of assistance, such 
                as in the case of unharvested crops, the 
                adjusted assistance level shall be the basis 
                for determining the disaster assistance program 
                guarantee for the noninsurable commodity.
                    ``(D) Equitable treatment for non-yield 
                based policies.--The Secretary shall establish 
                equitable treatment for non-yield based 
                policies and plans of insurance, such as the 
                Adjusted Gross Revenue Lite insurance program.
            ``(4) Farm revenue.--
                    ``(A) In general.--For purposes of this 
                subsection, the total farm revenue for a farm, 
                shall equal the sum obtained by adding--
                            ``(i) the estimated actual value 
                        for each crop produced on a farm by 
                        using the product obtained by 
                        multiplying--
                                    ``(I) the actual crop 
                                acreage harvested by an 
                                eligible producer on a farm;
                                    ``(II) the estimated actual 
                                yield of the crop production; 
                                and
                                    ``(III) subject to 
                                subparagraphs (B) and (C), to 
                                the extent practicable, the 
                                national average market price 
                                received for the marketing 
                                year, as determined by the 
                                Secretary;
                            ``(ii) 15 percent of amount of any 
                        direct payments made to the producer 
                        under sections 1103 and 1303 of the 
                        Food, Conservation, and Energy Act of 
                        2008 or successor sections;
                            ``(iii) the total amount of any 
                        counter-cyclical payments made to the 
                        producer under sections 1104 and 1304 
                        of the Food, Conservation, and Energy 
                        Act of 2008 or successor sections or of 
                        any average crop revenue election 
                        payments made to the producer under 
                        section 1105 of that Act;
                            ``(iv) the total amount of any loan 
                        deficiency payments, marketing loan 
                        gains, and marketing certificate gains 
                        made to the producer under subtitles B 
                        and C of the Food, Conservation, and 
                        Energy Act of 2008 or successor 
                        subtitles;
                            ``(v) the amount of payments for 
                        prevented planting on a farm;
                            ``(vi) the amount of crop insurance 
                        indemnities received by an eligible 
                        producer on a farm for each crop on a 
                        farm;
                            ``(vii) the amount of payments an 
                        eligible producer on a farm received 
                        under the noninsured crop assistance 
                        program for each crop on a farm; and
                            ``(viii) the value of any other 
                        natural disaster assistance payments 
                        provided by the Federal Government to 
                        an eligible producer on a farm for each 
                        crop on a farm for the same loss for 
                        which the eligible producer is seeking 
                        assistance.
                    ``(B) Adjustment.--The Secretary shall 
                adjust the average market price received by the 
                eligible producer on a farm--
                            ``(i) to reflect the average 
                        quality discounts applied to the local 
                        or regional market price of a crop or 
                        mechanically harvested forage due to a 
                        reduction in the intrinsic 
                        characteristics of the production 
                        resulting from adverse weather, as 
                        determined annually by the State office 
                        of the Farm Service Agency; and
                            ``(ii) to account for a crop the 
                        value of which is reduced due to excess 
                        moisture resulting from a disaster-
                        related condition.
                    ``(C) Maximum amount for certain crops.--
                With respect to a crop for which an eligible 
                producer on a farm receives assistance under 
                the noninsured crop assistance program, the 
                national average market price received during 
                the marketing year shall be an amount not more 
                than 100 percent of the price of the crop 
                established under the noninsured crop 
                assistance program.
            ``(5) Expected revenue.--The expected revenue for 
        each crop on a farm shall equal the sum obtained by 
        adding--
                    ``(A) the product obtained by multiplying--
                            ``(i) the greatest of--
                                    ``(I) the adjusted actual 
                                production history yield of the 
                                eligible producer on a farm; 
                                and
                                    ``(II) the counter-cyclical 
                                program payment yield;
                            ``(ii) the acreage planted or 
                        prevented from being planted for each 
                        crop; and
                            ``(iii) 100 percent of the 
                        insurance price guarantee; and
                    ``(B) the product obtained by multiplying--
                            ``(i) 100 percent of the adjusted 
                        noninsured crop assistance program 
                        yield; and
                            ``(ii) 100 percent of the 
                        noninsured crop assistance program 
                        price for each of the crops on a farm.
    ``(c) Livestock Indemnity Payments.--
            ``(1) Payments.--The Secretary shall use such sums 
        as are necessary from the Trust Fund to make livestock 
        indemnity payments to eligible producers on farms that 
        have incurred livestock death losses in excess of the 
        normal mortality due to adverse weather, as determined 
        by the Secretary, during the calendar year, including 
        losses due to hurricanes, floods, blizzards, disease, 
        wildfires, extreme heat, and extreme cold.
            ``(2) Payment rates.--Indemnity payments to an 
        eligible producer on a farm under paragraph (1) shall 
        be made at a rate of 75 percent of the market value of 
        the applicable livestock on the day before the date of 
        death of the livestock, as determined by the Secretary.
    ``(d) Livestock Forage Disaster Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered livestock.--
                            ``(i) In general.--The term 
                        `covered livestock' means livestock of 
                        an eligible livestock producer that, 
                        during the 60 days prior to the 
                        beginning date of a qualifying drought 
                        or fire condition, as determined by the 
                        Secretary, the eligible livestock 
                        producer--
                                    ``(I) owned;
                                    ``(II) leased;
                                    ``(III) purchased;
                                    ``(IV) entered into a 
                                contract to purchase;
                                    ``(V) is a contract grower; 
                                or
                                    ``(VI) sold or otherwise 
                                disposed of due to qualifying 
                                drought conditions during--
                                            ``(aa) the current 
                                        production year; or
                                            ``(bb) subject to 
                                        paragraph (3)(B)(ii), 1 
                                        or both of the 2 
                                        production years 
                                        immediately preceding 
                                        the current production 
                                        year.
                            ``(ii) Exclusion.--The term 
                        `covered livestock' does not include 
                        livestock that were or would have been 
                        in a feedlot, on the beginning date of 
                        the qualifying drought or fire 
                        condition, as a part of the normal 
                        business operation of the eligible 
                        livestock producer, as determined by 
                        the Secretary.
                    ``(B) Drought monitor.--The term `drought 
                monitor' means a system for classifying drought 
                severity according to a range of abnormally dry 
                to exceptional drought, as defined by the 
                Secretary.
                    ``(C) Eligible livestock producer.--
                            ``(i) In general.--The term 
                        `eligible livestock producer' means an 
                        eligible producer on a farm that--
                                    ``(I) is an owner, cash or 
                                share lessee, or contract 
                                grower of covered livestock 
                                that provides the pastureland 
                                or grazing land, including 
                                cash-leased pastureland or 
                                grazing land, for the 
                                livestock;
                                    ``(II) provides the 
                                pastureland or grazing land for 
                                covered livestock, including 
                                cash-leased pastureland or 
                                grazing land that is physically 
                                located in a county affected by 
                                drought;
                                    ``(III) certifies grazing 
                                loss; and
                                    ``(IV) meets all other 
                                eligibility requirements 
                                established under this 
                                subsection.
                            ``(ii) Exclusion.--The term 
                        `eligible livestock producer' does not 
                        include an owner, cash or share lessee, 
                        or contract grower of livestock that 
                        rents or leases pastureland or grazing 
                        land owned by another person on a rate-
                        of-gain basis.
                    ``(D) Normal carrying capacity.--The term 
                `normal carrying capacity', with respect to 
                each type of grazing land or pastureland in a 
                county, means the normal carrying capacity, as 
                determined under paragraph (3)(D)(i), that 
                would be expected from the grazing land or 
                pastureland for livestock during the normal 
                grazing period, in the absence of a drought or 
                fire that diminishes the production of the 
                grazing land or pastureland.
                    ``(E) Normal grazing period.--The term 
                `normal grazing period', with respect to a 
                county, means the normal grazing period during 
                the calendar year for the county, as determined 
                under paragraph (3)(D)(i).
            ``(2) Program.--The Secretary shall use such sums 
        as are necessary from the Trust Fund to provide 
        compensation for losses to eligible livestock producers 
        due to grazing losses for covered livestock due to--
                    ``(A) a drought condition, as described in 
                paragraph (3); or
                    ``(B) fire, as described in paragraph (4).
            ``(3) Assistance for losses due to drought 
        conditions.--
                    ``(A) Eligible losses.--
                            ``(i) In general.--An eligible 
                        livestock producer may receive 
                        assistance under this subsection only 
                        for grazing losses for covered 
                        livestock that occur on land that--
                                    ``(I) is native or improved 
                                pastureland with permanent 
                                vegetative cover; or
                                    ``(II) is planted to a crop 
                                planted specifically for the 
                                purpose of providing grazing 
                                for covered livestock.
                            ``(ii) Exclusions.--An eligible 
                        livestock producer may not receive 
                        assistance under this subsection for 
                        grazing losses that occur on land used 
                        for haying or grazing under the 
                        conservation reserve program 
                        established under subchapter B of 
                        chapter 1 of subtitle D of title XII of 
                        the Food Security Act of 1985 (16 
                        U.S.C. 3831 et seq.).
                    ``(B) Monthly payment rate.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), the payment 
                        rate for assistance under this 
                        paragraph for 1 month shall, in the 
                        case of drought, be equal to 60 percent 
                        of the lesser of--
                                    ``(I) the monthly feed cost 
                                for all covered livestock owned 
                                or leased by the eligible 
                                livestock producer, as 
                                determined under subparagraph 
                                (C); or
                                    ``(II) the monthly feed 
                                cost calculated by using the 
                                normal carrying capacity of the 
                                eligible grazing land of the 
                                eligible livestock producer.
                            ``(ii) Partial compensation.--In 
                        the case of an eligible livestock 
                        producer that sold or otherwise 
                        disposed of covered livestock due to 
                        drought conditions in 1 or both of the 
                        2 production years immediately 
                        preceding the current production year, 
                        as determined by the Secretary, the 
                        payment rate shall be 80 percent of the 
                        payment rate otherwise calculated in 
                        accordance with clause (i).
                    ``(C) Monthly feed cost.--
                            ``(i) In general.--The monthly feed 
                        cost shall equal the product obtained 
                        by multiplying--
                                    ``(I) 30 days;
                                    ``(II) a payment quantity 
                                that is equal to the feed grain 
                                equivalent, as determined under 
                                clause (ii); and
                                    ``(III) a payment rate that 
                                is equal to the corn price per 
                                pound, as determined under 
                                clause (iii).
                            ``(ii) Feed grain equivalent.--For 
                        purposes of clause (i)(I), the feed 
                        grain equivalent shall equal--
                                    ``(I) in the case of an 
                                adult beef cow, 15.7 pounds of 
                                corn per day; or
                                    ``(II) in the case of any 
                                other type of weight of 
                                livestock, an amount determined 
                                by the Secretary that 
                                represents the average number 
                                of pounds of corn per day 
                                necessary to feed the 
                                livestock.
                            ``(iii) Corn price per pound.--For 
                        purposes of clause (i)(II), the corn 
                        price per pound shall equal the 
                        quotient obtained by dividing--
                                    ``(I) the higher of--
                                            ``(aa) the national 
                                        average corn price per 
                                        bushel for the 12-month 
                                        period immediately 
                                        preceding March 1 of 
                                        the year for which the 
                                        disaster assistance is 
                                        calculated; or
                                            ``(bb) the national 
                                        average corn price per 
                                        bushel for the 24-month 
                                        period immediately 
                                        preceding that March 1; 
                                        by
                                    ``(II) 56.
                    ``(D) Normal grazing period and drought 
                monitor intensity.--
                            ``(i) FSA county committee 
                        determinations.--
                                    ``(I) In general.--The 
                                Secretary shall determine the 
                                normal carrying capacity and 
                                normal grazing period for each 
                                type of grazing land or 
                                pastureland in the county 
                                served by the applicable 
                                committee.
                                    ``(II) Changes.--No change 
                                to the normal carrying capacity 
                                or normal grazing period 
                                established for a county under 
                                subclause (I) shall be made 
                                unless the change is requested 
                                by the appropriate State and 
                                county Farm Service Agency 
                                committees.
                            ``(ii) Drought intensity.--
                                    ``(I) D2.--An eligible 
                                livestock producer that owns or 
                                leases grazing land or 
                                pastureland that is physically 
                                located in a county that is 
                                rated by the U.S. Drought 
                                Monitor as having a D2 (severe 
                                drought) intensity in any area 
                                of the county for at least 8 
                                consecutive weeks during the 
                                normal grazing period for the 
                                county, as determined by the 
                                Secretary, shall be eligible to 
                                receive assistance under this 
                                paragraph in an amount equal to 
                                1 monthly payment using the 
                                monthly payment rate determined 
                                under subparagraph (B).
                                    ``(II) D3.--An eligible 
                                livestock producer that owns or 
                                leases grazing land or 
                                pastureland that is physically 
                                located in a county that is 
                                rated by the U.S. Drought 
                                Monitor as having at least a D3 
                                (extreme drought) intensity in 
                                any area of the county at any 
                                time during the normal grazing 
                                period for the county, as 
                                determined by the Secretary, 
                                shall be eligible to receive 
                                assistance under this 
                                paragraph--
                                            ``(aa) in an amount 
                                        equal to 2 monthly 
                                        payments using the 
                                        monthly payment rate 
                                        determined under 
                                        subparagraph (B); or
                                            ``(bb) if the 
                                        county is rated as 
                                        having a D3 (extreme 
                                        drought) intensity in 
                                        any area of the county 
                                        for at least 4 weeks 
                                        during the normal 
                                        grazing period for the 
                                        county, or is rated as 
                                        having a D4 
                                        (exceptional drought) 
                                        intensity in any area 
                                        of the county at any 
                                        time during the normal 
                                        grazing period, in an 
                                        amount equal to 3 
                                        monthly payments using 
                                        the monthly payment 
                                        rate determined under 
                                        subparagraph (B).
            ``(4) Assistance for losses due to fire on public 
        managed land.--
                    ``(A) In general.--An eligible livestock 
                producer may receive assistance under this 
                paragraph only if--
                            ``(i) the grazing losses occur on 
                        rangeland that is managed by a Federal 
                        agency; and
                            ``(ii) the eligible livestock 
                        producer is prohibited by the Federal 
                        agency from grazing the normal 
                        permitted livestock on the managed 
                        rangeland due to a fire.
                    ``(B) Payment rate.--The payment rate for 
                assistance under this paragraph shall be equal 
                to 50 percent of the monthly feed cost for the 
                total number of livestock covered by the 
                Federal lease of the eligible livestock 
                producer, as determined under paragraph (3)(C).
                    ``(C) Payment duration.--
                            ``(i) In general.--Subject to 
                        clause (ii), an eligible livestock 
                        producer shall be eligible to receive 
                        assistance under this paragraph for the 
                        period--
                                    ``(I) beginning on the date 
                                on which the Federal agency 
                                excludes the eligible livestock 
                                producer from using the managed 
                                rangeland for grazing; and
                                    ``(II) ending on the last 
                                day of the Federal lease of the 
                                eligible livestock producer.
                            ``(ii) Limitation.--An eligible 
                        livestock producer may only receive 
                        assistance under this paragraph for 
                        losses that occur on not more than 180 
                        days per year.
            ``(5) Minimum risk management purchase 
        requirements.--
                    ``(A) In general.--Except as otherwise 
                provided in this paragraph, a livestock 
                producer shall only be eligible for assistance 
                under this subsection if the livestock 
                producer--
                            ``(i) obtained a policy or plan of 
                        insurance under the Federal Crop 
                        Insurance Act (7 U.S.C. 1501 et seq.) 
                        for the grazing land incurring the 
                        losses for which assistance is being 
                        requested; or
                            ``(ii) filed the required 
                        paperwork, and paid the administrative 
                        fee by the applicable State filing 
                        deadline, for the noninsured crop 
                        assistance program for the grazing land 
                        incurring the losses for which 
                        assistance is being requested.
                    ``(B) Waiver for socially disadvantaged, 
                limited resource, or beginning farmer or 
                rancher.--In the case of an eligible livestock 
                producer that is a socially disadvantaged 
                farmer or rancher or limited resource or 
                beginning farmer or rancher, as determined by 
                the Secretary, the Secretary may--
                            ``(i) waive subparagraph (A); and
                            ``(ii) provide disaster assistance 
                        under this section at a level that the 
                        Secretary determines to be equitable 
                        and appropriate.
                    ``(C) Waiver for 2008 calendar year.--In 
                the case of an eligible livestock producer that 
                suffered losses on grazing land during the 2008 
                calendar year but does not meet the 
                requirements of subparagraph (A), the Secretary 
                shall waive subparagraph (A) if the eligible 
                livestock producer pays a fee in an amount 
                equal to the applicable noninsured crop 
                assistance program fee or catastrophic risk 
                protection plan fee required under subparagraph 
                (A) to the Secretary not later than 90 days 
                after the date of enactment of this subtitle.
                    ``(D) Equitable relief.--
                            ``(i) In general.--The Secretary 
                        may provide equitable relief to an 
                        eligible livestock producer that is 
                        otherwise ineligible or unintentionally 
                        fails to meet the requirements of 
                        subparagraph (A) for the grazing land 
                        incurring the loss on a case-by-case 
                        basis, as determined by the Secretary.
                            ``(ii) 2008 calendar year.--In the 
                        case of an eligible livestock producer 
                        that suffered losses on grazing land 
                        during the 2008 calendar year, the 
                        Secretary shall take special 
                        consideration to provide equitable 
                        relief in cases in which the eligible 
                        livestock producer failed to meet the 
                        requirements of subparagraph (A) due to 
                        the enactment of this title after the 
                        closing date of sales periods for crop 
                        insurance under the Federal Crop 
                        Insurance Act (7 U.S.C. 1501 et seq.) 
                        and the noninsured crop assistance 
                        program.
            ``(6) No duplicative payments.--
                    ``(A) In general.--An eligible livestock 
                producer may elect to receive assistance for 
                grazing or pasture feed losses due to drought 
                conditions under paragraph (3) or fire under 
                paragraph (4), but not both for the same loss, 
                as determined by the Secretary.
                    ``(B) Relationship to supplemental revenue 
                assistance.--An eligible livestock producer 
                that receives assistance under this subsection 
                may not also receive assistance for losses to 
                crops on the same land with the same intended 
                use under subsection (b).
    ``(e) Emergency Assistance for Livestock, Honey Bees, and 
Farm-Raised Fish.--
            ``(1) In general.--The Secretary shall use up to 
        $50,000,000 per year from the Trust Fund to provide 
        emergency relief to eligible producers of livestock, 
        honey bees, and farm-raised fish to aid in the 
        reduction of losses due to disease, adverse weather, or 
        other conditions, such as blizzards and wildfires, as 
        determined by the Secretary, that are not covered under 
        subsection (b), (c), or (d).
            ``(2) Use of funds.--Funds made available under 
        this subsection shall be used to reduce losses caused 
        by feed or water shortages, disease, or other factors 
        as determined by the Secretary.
            ``(3) Availability of funds.--Any funds made 
        available under this subsection shall remain available 
        until expended.
    ``(f) Tree Assistance Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible orchardist.--The term 
                `eligible orchardist' means a person that 
                produces annual crops from trees for commercial 
                purposes.
                    ``(B) Natural disaster.--The term `natural 
                disaster' means plant disease, insect 
                infestation, drought, fire, freeze, flood, 
                earthquake, lightning, or other occurrence, as 
                determined by the Secretary.
                    ``(C) Nursery tree grower.--The term 
                `nursery tree grower' means a person who 
                produces nursery, ornamental, fruit, nut, or 
                Christmas trees for commercial sale, as 
                determined by the Secretary.
                    ``(D) Tree.--The term `tree' includes a 
                tree, bush, and vine.
            ``(2) Eligibility.--
                    ``(A) Loss.--Subject to subparagraph (B), 
                the Secretary shall provide assistance--
                            ``(i) under paragraph (3) to 
                        eligible orchardists and nursery tree 
                        growers that planted trees for 
                        commercial purposes but lost the trees 
                        as a result of a natural disaster, as 
                        determined by the Secretary; and
                            ``(ii) under paragraph (3)(B) to 
                        eligible orchardists and nursery tree 
                        growers that have a production history 
                        for commercial purposes on planted or 
                        existing trees but lost the trees as a 
                        result of a natural disaster, as 
                        determined by the Secretary.
                    ``(B) Limitation.--An eligible orchardist 
                or nursery tree grower shall qualify for 
                assistance under subparagraph (A) only if the 
                tree mortality of the eligible orchardist or 
                nursery tree grower, as a result of damaging 
                weather or related condition, exceeds 15 
                percent (adjusted for normal mortality).
            ``(3) Assistance.--Subject to paragraph (4), the 
        assistance provided by the Secretary to eligible 
        orchardists and nursery tree growers for losses 
        described in paragraph (2) shall consist of--
                    ``(A)(i) reimbursement of 70 percent of the 
                cost of replanting trees lost due to a natural 
                disaster, as determined by the Secretary, in 
                excess of 15 percent mortality (adjusted for 
                normal mortality); or
                    ``(ii) at the option of the Secretary, 
                sufficient seedlings to reestablish a stand; 
                and
                    ``(B) reimbursement of 50 percent of the 
                cost of pruning, removal, and other costs 
                incurred by an eligible orchardist or nursery 
                tree grower to salvage existing trees or, in 
                the case of tree mortality, to prepare the land 
                to replant trees as a result of damage or tree 
                mortality due to a natural disaster, as 
                determined by the Secretary, in excess of 15 
                percent damage or mortality (adjusted for 
                normal tree damage and mortality).
            ``(4) Limitations on assistance.--
                    ``(A) Definitions of legal entity and 
                person.--In this paragraph, the terms `legal 
                entity' and `person' have the meaning given 
                those terms in section 1001(a) of the Food 
                Security Act of 1985 (7 U.S.C. 1308(a) (as 
                amended by section 1603 of the Food, 
                Conservation, and Energy Act of 2008).
                    ``(B) Amount.--The total amount of payments 
                received, directly or indirectly, by a person 
                or legal entity (excluding a joint venture or 
                general partnership) under this subsection may 
                not exceed $100,000 for any crop year, or an 
                equivalent value in tree seedlings.
                    ``(C) Acres.--The total quantity of acres 
                planted to trees or tree seedlings for which a 
                person or legal entity shall be entitled to 
                receive payments under this subsection may not 
                exceed 500 acres.
    ``(g) Risk Management Purchase Requirement.--
            ``(1) In general.--Except as otherwise provided in 
        this section, the eligible producers on a farm shall 
        not be eligible for assistance under this section 
        (other than subsection (c)) if the eligible producers 
        on the farm--
                    ``(A) in the case of each insurable 
                commodity of the eligible producers on the 
                farm, did not obtain a policy or plan of 
                insurance under the Federal Crop Insurance Act 
                (7 U.S.C. 1501 et seq.) (excluding a crop 
                insurance pilot program under that Act); or
                    ``(B) in the case of each noninsurable 
                commodity of the eligible producers on the 
                farm, did not file the required paperwork, and 
                pay the administrative fee by the applicable 
                State filing deadline, for the noninsured crop 
                assistance program.
            ``(2) Minimum.--To be considered to have obtained 
        insurance under paragraph (1)(A), an eligible producer 
        on a farm shall have obtained a policy or plan of 
        insurance with not less than 50 percent yield coverage 
        at 55 percent of the insurable price for each crop 
        grazed, planted, or intended to be planted for harvest 
        on a whole farm.
            ``(3) Waiver for socially disadvantaged, limited 
        resource, or beginning farmer or rancher.--With respect 
        to eligible producers that are socially disadvantaged 
        farmers or ranchers or limited resource or beginning 
        farmers or ranchers, as determined by the Secretary, 
        the Secretary may--
                    ``(A) waive paragraph (1); and
                    ``(B) provide disaster assistance under 
                this section at a level that the Secretary 
                determines to be equitable and appropriate.
            ``(4) Waiver for 2008 crop year.--In the case of an 
        eligible producer that suffered losses in an insurable 
        commodity or noninsurable commodity during the 2008 
        crop year but does not meet the requirements of 
        paragraph (1), the Secretary shall waive paragraph (1) 
        if the eligible producer pays a fee in an amount equal 
        to the applicable noninsured crop assistance program 
        fee or catastrophic risk protection plan fee required 
        under paragraph (1) to the Secretary not later than 90 
        days after the date of enactment of this subtitle.
            ``(5) Equitable relief.--
                    ``(A) In general.--The Secretary may 
                provide equitable relief to eligible producers 
                on a farm that are otherwise ineligible or 
                unintentionally fail to meet the requirements 
                of paragraph (1) for 1 or more crops on a farm 
                on a case-by-case basis, as determined by the 
                Secretary.
                    ``(B) 2008 crop year.--In the case of 
                eligible producers on a farm that suffered 
                losses in an insurable commodity or 
                noninsurable commodity during the 2008 crop 
                year, the Secretary shall take special 
                consideration to provide equitable relief in 
                cases in which the eligible producers failed to 
                meet the requirements of paragraph (1) due to 
                the enactment of this title after the closing 
                date of sales periods for crop insurance under 
                the Federal Crop Insurance Act (7 U.S.C. 1501 
                et seq.) and the noninsured crop assistance 
                program.
    ``(h) Payment Limitations.--
            ``(1) Definitions of legal entity and person.--In 
        this subsection, the terms `legal entity' and `person' 
        have the meaning given those terms in section 1001(a) 
        of the Food Security Act of 1985 (7 U.S.C. 1308(a) (as 
        amended by section 1603 of the Food, Conservation, and 
        Energy Act of 2008).
            ``(2) Amount.--The total amount of disaster 
        assistance payments received, directly or indirectly, 
        by a person or legal entity (excluding a joint venture 
        or general partnership) under this section (excluding 
        payments received under subsection (f)) may not exceed 
        $100,000 for any crop year.
            ``(3) AGI limitation.--Section 1001D of the Food 
        Security Act of 1985 (7 U.S.C. 1308-3a) or any 
        successor provision shall apply with respect to 
        assistance provided under this section.
            ``(4) Direct attribution.--Subsections (e) and (f) 
        of section 1001 of the Food Security Act of 1985 (7 
        U.S.C. 1308) or any successor provisions relating to 
        direct attribution shall apply with respect to 
        assistance provided under this section.
    ``(i) Period of Effectiveness.--This section shall be 
effective only for losses that are incurred as the result of a 
disaster, adverse weather, or other environmental condition 
that occurs on or before September 30, 2011, as determined by 
the Secretary.
    ``(j) No Duplicative Payments.--In implementing any other 
program which makes disaster assistance payments (except for 
indemnities made under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.)) and section 196 of the Federal Agriculture 
Improvement and Reform Act of 1996), the Secretary shall 
prevent duplicative payments with respect to the same loss for 
which a person receives a payment under subsections (b), (c), 
(d), (e), or (f).

``SEC. 902. AGRICULTURAL DISASTER RELIEF TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the 
`Agricultural Disaster Relief Trust Fund', consisting of such 
amounts as may be appropriated or credited to such Trust Fund 
as provided in this section.
    ``(b) Transfer to Trust Fund.--
            ``(1) In general.--There are appropriated to the 
        Agricultural Disaster Relief Trust Fund amounts 
        equivalent to 3.08 percent of the amounts received in 
        the general fund of the Treasury of the United States 
        during fiscal years 2008 through 2011 attributable to 
        the duties collected on articles entered, or withdrawn 
        from warehouse, for consumption under the Harmonized 
        Tariff Schedule of the United States.
            ``(2) Amounts based on estimates.--The amounts 
        appropriated under this section shall be transferred at 
        least monthly from the general fund of the Treasury of 
        the United States to the Agricultural Disaster Relief 
        Trust Fund on the basis of estimates made by the 
        Secretary of the Treasury. Proper adjustments shall be 
        made in the amounts subsequently transferred to the 
        extent prior estimates were in excess of or less than 
        the amounts required to be transferred.
            ``(3) Limitation on transfers to agricultural 
        disaster relief trust fund.--No amount may be 
        appropriated to the Agricultural Disaster Relief Trust 
        Fund on and after the date of any expenditure from the 
        Agricultural Disaster Relief Trust Fund which is not 
        permitted by this section. The determination of whether 
        an expenditure is so permitted shall be made without 
        regard to--
                    ``(A) any provision of law which is not 
                contained or referenced in this title or in a 
                revenue Act, and
                    ``(B) whether such provision of law is a 
                subsequently enacted provision or directly or 
                indirectly seeks to waive the application of 
                this paragraph.
    ``(c) Administration.--
            ``(1) Reports.--The Secretary of the Treasury shall 
        be the trustee of the Agricultural Disaster Relief 
        Trust Fund and shall submit an annual report to 
        Congress each year on the financial condition and the 
        results of the operations of such Trust Fund during the 
        preceding fiscal year and on its expected condition and 
        operations during the 4 fiscal years succeeding such 
        fiscal year. Such report shall be printed as a House 
        document of the session of Congress to which the report 
        is made.
            ``(2) Investment.--
                    ``(A) In general.--The Secretary of the 
                Treasury shall invest such portion of the 
                Agricultural Disaster Relief Trust Fund as is 
                not in his judgment required to meet current 
                withdrawals. Such investments may be made only 
                in interest bearing obligations of the United 
                States. For such purpose, such obligations may 
                be acquired--
                            ``(i) on original issue at the 
                        issue price, or
                            ``(ii) by purchase of outstanding 
                        obligations at the market price.
                    ``(B) Sale of obligations.--Any obligation 
                acquired by the Agricultural Disaster Relief 
                Trust Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    ``(C) Interest on certain proceeds.--The 
                interest on, and the proceeds from the sale or 
                redemption of, any obligations held in the 
                Agricultural Disaster Relief Trust Fund shall 
                be credited to and form a part of such Trust 
                Fund.
    ``(d) Expenditures From Trust Fund.--Amounts in the 
Agricultural Disaster Relief Trust Fund shall be available for 
the purposes of making expenditures to meet those obligations 
of the United States incurred under section 901 or section 531 
of the Federal Crop Insurance Act (as such sections are in 
effect on the date of the enactment of the Food, Conservation, 
and Energy Act of 2008).
    ``(e) Authority To Borrow.--
            ``(1) In general.--There are authorized to be 
        appropriated, and are appropriated, to the Agricultural 
        Disaster Relief Trust Fund, as repayable advances, such 
        sums as may be necessary to carry out the purposes of 
        such Trust Fund.
            ``(2) Repayment of advances.--
                    ``(A) In general.--Advances made to the 
                Agricultural Disaster Relief Trust Fund shall 
                be repaid, and interest on such advances shall 
                be paid, to the general fund of the Treasury 
                when the Secretary determines that moneys are 
                available for such purposes in such Trust Fund.
                    ``(B) Rate of interest.--Interest on 
                advances made pursuant to this subsection shall 
                be--
                            ``(i) at a rate determined by the 
                        Secretary of the Treasury (as of the 
                        close of the calendar month preceding 
                        the month in which the advance is made) 
                        to be equal to the current average 
                        market yield on outstanding marketable 
                        obligations of the United States with 
                        remaining periods to maturity 
                        comparable to the anticipated period 
                        during which the advance will be 
                        outstanding, and
                            ``(ii) compounded annually.

``SEC. 903. JURISDICTION.

    ``Legislation in the Senate of the United States amending 
section 901 or 902 shall be referred to the Committee on 
Finance of the Senate.''.
    (b) Transition.--For purposes of the 2008 crop year, the 
Secretary shall carry out subsections (f)(4) and (h) of section 
901 of the Trade Act of 1974 (as added by subsection (a)) in 
accordance with the terms and conditions of sections 1001 
through 1001D of the Food Security Act of 1985 (16 U.S.C. 1308 
et seq.), as in effect on September 30, 2007.
    (c) Clerical Amendment.--The table of contents for the 
Trade Act of 1974 (19 U.S.C. 2101 et seq.) is amended by adding 
at the end the following:

        ``TITLE IX--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE

``Sec. 901. Supplemental agricultural disaster assistance.
``Sec. 902. Agricultural Disaster Relief Trust Fund.
``Sec. 903. Jurisdiction.''.

        Subtitle B--Revenue Provisions for Agriculture Programs

SEC. 15201. CUSTOMS USER FEES.

    (a) In General.--Section 13031(j)(3)(A) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
58c(j)(3)(A)) is amended by striking ``December 27, 2014'' and 
inserting ``November 14, 2017''.
    (b) Other Fees.--Section 13031(j)(3)(B)(i) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(j)(3)(B)(i)) is amended by striking ``December 27, 
2014'' and inserting ``September 30, 2017''.
    (c) Time for Remitting Certain Cobra Fees.--Notwithstanding 
any other provision of law, any fees authorized under 
paragraphs (1) through (8) of section 13031(a) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(a) (1) through (8)) with respect to customs services 
provided on or after July 1, 2017, and before September 20, 
2017, shall be paid not later than September 25, 2017.
    (d) Time for Remitting Certain Merchandise Processing 
Fees.--
            (1) In general.--Notwithstanding any other 
        provision of law, any fees authorized under paragraphs 
        (9) and (10) of section 13031(a) of the Consolidated 
        Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
        58c(a) (9) and (10)) with respect to processing 
        merchandise entered on or after October 1, 2017, and 
        before November 15, 2017, shall be paid not later than 
        September 25, 2017, in an amount equivalent to the 
        amount of such fees paid by the person responsible for 
        such fees with respect to merchandise entered on or 
        after October 1, 2016, and before November 15, 2016, as 
        determined by the Secretary of the Treasury.
            (2) Reconciliation of merchandise processing 
        fees.--Not later than December 15, 2017, the Secretary 
        of the Treasury shall reconcile the fees paid pursuant 
        to paragraph (1) with the fees for services actually 
        provided on or after October 1, 2017, and before 
        November 15, 2017, and shall refund with interest any 
        overpayment of such fees and make proper adjustments 
        with respect to any underpayment of such fees. No 
        interest may be assessed with respect to any such 
        underpayment that was based on the amount of fees paid 
        for merchandise entered on or after October 1, 2016, 
        and before November 15, 2016.

SEC. 15202. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    The percentage under subparagraph (B) of section 401(1) of 
the Tax Increase Prevention and Reconciliation Act of 2005 in 
effect on the date of the enactment of this Act is increased by 
7.75 percentage points.

                       Subtitle C--Tax Provisions

                          PART I--CONSERVATION

          Subpart A--Land and Species Preservation Provisions

SEC. 15301. EXCLUSION OF CONSERVATION RESERVE PROGRAM PAYMENTS FROM 
                    SECA TAX FOR CERTAIN INDIVIDUALS.

    (a) Internal Revenue Code.--Section 1402(a)(1) (defining 
net earnings from self-employment) is amended by inserting ``, 
and including payments under section 1233(2) of the Food 
Security Act of 1985 (16 U.S.C. 3833(2)) to individuals 
receiving benefits under section 202 or 223 of the Social 
Security Act'' after ``crop shares''.
    (b) Social Security Act.--Section 211(a)(1) of the Social 
Security Act is amended by inserting ``, and including payments 
under section 1233(2) of the Food Security Act of 1985 (16 
U.S.C. 3833(2)) to individuals receiving benefits under section 
202 or 223'' after ``crop shares''.
    (c) Effective Date.--The amendments made by this section 
shall apply to payments made after December 31, 2007.

SEC. 15302. TWO-YEAR EXTENSION OF SPECIAL RULE ENCOURAGING 
                    CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY FOR 
                    CONSERVATION PURPOSES.

    (a) In General.--
            (1) Individuals.--Section 170(b)(1)(E)(vi) 
        (relating to termination) is amended by striking 
        ``December 31, 2007'' and inserting ``December 31, 
        2009''.
            (2) Corporations.--Section 170(b)(2)(B)(iii) 
        (relating to termination) is amended by striking 
        ``December 31, 2007'' and inserting ``December 31, 
        2009''.
    (b) Effective Date.--The amendments made by this section 
shall apply to contributions made in taxable years beginning 
after December 31, 2007.

SEC. 15303. DEDUCTION FOR ENDANGERED SPECIES RECOVERY EXPENDITURES.

    (a) Deduction for Endangered Species Recovery 
Expenditures.--
            (1) In general.--Paragraph (1) of section 175(c) 
        (relating to definitions) is amended by inserting after 
        the first sentence the following new sentence: ``Such 
        term shall include expenditures paid or incurred for 
        the purpose of achieving site-specific management 
        actions recommended in recovery plans approved pursuant 
        to the Endangered Species Act of 1973.''.
            (2) Conforming amendments.--
                    (A) Section 175 is amended by inserting ``, 
                or for endangered species recovery'' after 
                ``prevention of erosion of land used in 
                farming'' each place it appears in subsections 
                (a) and (c).
                    (B) The heading of section 175 is amended 
                by inserting ``; ENDANGERED SPECIES RECOVERY 
                EXPENDITURES'' before the period.
                    (C) The item relating to section 175 in the 
                table of sections for part VI of subchapter B 
                of chapter 1 is amended by inserting ``; 
                endangered species recovery expenditures'' 
                before the period.
    (b) Limitations.--Paragraph (3) of section 175(c) (relating 
to additional limitations) is amended--
            (1) in the heading of subparagraph (A), by 
        inserting ``or endangered species recovery plan'' after 
        ``conservation plan'', and
            (2) in subparagraph (A)(i), by inserting ``or the 
        recovery plan approved pursuant to the Endangered 
        Species Act of 1973'' after ``Department of 
        Agriculture''.
    (c) Effective Date.--The amendments made by this section 
shall apply to expenditures paid or incurred after December 31, 
2008.

                      Subpart B--Timber Provisions

SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED TIMBER GAIN 
                    OF CORPORATIONS.

    (a) In General.--Section 1201 (relating to alternative tax 
for corporations) is amended by redesignating subsection (b) as 
subsection (c) and by adding after subsection (a) the following 
new subsection:
    ``(b) Special Rate for Qualified Timber Gains.--
            ``(1) In general.--If, for any taxable year ending 
        after the date of the enactment of the Food, 
        Conservation, and Energy Act of 2008 and beginning on 
        or before the date which is 1 year after such date, a 
        corporation has both a net capital gain and qualified 
        timber gain--
                    ``(A) subsection (a) shall apply to such 
                corporation for the taxable year without regard 
                to whether the applicable tax rate exceeds 35 
                percent, and
                    ``(B) the tax computed under subsection 
                (a)(2) shall be equal to the sum of--
                            ``(i) 15 percent of the least of--
                                    ``(I) qualified timber 
                                gain,
                                    ``(II) net capital gain, or
                                    ``(III) taxable income, 
                                plus
                            ``(ii) 35 percent of the excess (if 
                        any) of taxable income over the sum of 
                        the amounts for which a tax was 
                        determined under subsection (a)(1) and 
                        clause (i).
            ``(2) Qualified timber gain.--For purposes of this 
        section, the term `qualified timber gain' means, with 
        respect to any taxpayer for any taxable year, the 
        excess (if any) of--
                    ``(A) the sum of the taxpayer's gains 
                described in subsections (a) and (b) of section 
                631 for such year, over
                    ``(B) the sum of the taxpayer's losses 
                described in such subsections for such year.
        For purposes of subparagraphs (A) and (B), only timber 
        held more than 15 years shall be taken into account.
            ``(3) Computation for taxable years in which rate 
        first applies or ends.--In the case of any taxable year 
        which includes either of the dates set forth in 
        paragraph (1), the qualified timber gain for such year 
        shall not exceed the qualified timber gain properly 
        taken into account for--
                    ``(A) in the case of the taxable year 
                including the date of the enactment of the 
                Food, Conservation, and Energy Act of 2008, the 
                portion of the year after such date, and
                    ``(B) in the case of the taxable year 
                including the date which is 1 year after such 
                date of enactment, the portion of the year on 
                or before such later date.''.
    (b) Minimum Tax.--Subsection (b) of section 55 is amended 
by adding at the end the following paragraph:
            ``(4) Maximum rate of tax on qualified timber gain 
        of corporations.--In the case of any taxable year to 
        which section 1201(b) applies, the amount determined 
        under clause (i) of subparagraph (B) shall not exceed 
        the sum of--
                    ``(A) 20 percent of so much of the taxable 
                excess (if any) as exceeds the qualified timber 
                gain (or, if less, the net capital gain), plus
                    ``(B) 15 percent of the taxable excess in 
                excess of the amount on which a tax is 
                determined under subparagraph (A).
        Any term used in this paragraph which is also used in 
        section 1201 shall have the meaning given such term by 
        such section, except to the extent such term is subject 
        to adjustment under this part.''.
    (c) Conforming Amendment.--Section 857(b)(3)(A)(ii) is 
amended by striking ``rate'' and inserting ``rates''.
    (d) Effective Date.--The amendments made by this section 
shall apply to taxable years ending after the date of 
enactment.

SEC. 15312. TIMBER REIT MODERNIZATION.

    (a) In General.--Section 856(c)(5) is amended by adding 
after subparagraph (G) the following new subparagraph:
                    ``(H) Treatment of timber gains.--
                            ``(i) In general.--Gain from the 
                        sale of real property described in 
                        paragraph (2)(D) and (3)(C) shall 
                        include gain which is--
                                    ``(I) recognized by an 
                                election under section 631(a) 
                                from timber owned by the real 
                                estate investment trust, the 
                                cutting of which is provided by 
                                a taxable REIT subsidiary of 
                                the real estate investment 
                                trust;
                                    ``(II) recognized under 
                                section 631(b); or
                                    ``(III) income which would 
                                constitute gain under subclause 
                                (I) or (II) but for the failure 
                                to meet the 1-year holding 
                                period requirement.
                            ``(ii) Special rules.--
                                    ``(I) For purposes of this 
                                subtitle, cut timber, the gain 
                                from which is recognized by a 
                                real estate investment trust 
                                pursuant to an election under 
                                section 631(a) described in 
                                clause (i)(I) or so much of 
                                clause (i)(III) as relates to 
                                clause (i)(I), shall be deemed 
                                to be sold to the taxable REIT 
                                subsidiary of the real estate 
                                investment trust on the first 
                                day of the taxable year.
                                    ``(II) For purposes of this 
                                subtitle, income described in 
                                this subparagraph shall not be 
                                treated as gain from the sale 
                                of property described in 
                                section 1221(a)(1).
                            ``(iii) Termination.--This 
                        subparagraph shall not apply to 
                        dispositions after the termination 
                        date.''.
    (b) Termination Date.--Subsection (c) of section 856 is 
amended by adding at the end the following new paragraph:
            ``(8) Termination date.--For purposes of this 
        subsection, the term `termination date' means, with 
        respect to any taxpayer, the last day of the taxpayer's 
        first taxable year beginning after the date of the 
        enactment of this paragraph and before the date that is 
        1 year after such date of enactment.''.
    (c) Effective Date.--The amendments made by subsection (a) 
shall apply to dispositions in taxable years beginning after 
the date of the enactment of this Act.

SEC. 15313. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.

    (a) In General.--Section 856(c)(2) is amended by striking 
``and'' at the end of subparagraph (G), by inserting ``and'' at 
the end of subparagraph (H), and by adding after subparagraph 
(H) the following new subparagraph:
                    ``(I) mineral royalty income earned in the 
                first taxable year beginning after the date of 
                the enactment of this subparagraph from real 
                property owned by a timber real estate 
                investment trust and held, or once held, in 
                connection with the trade or business of 
                producing timber by such real estate investment 
                trust;''.
    (b) Timber Real Estate Investment Trust.--Section 
856(c)(5), as amended by this Act, is amended by adding after 
subparagraph (H) the following new subparagraph:
                    ``(I) Timber real estate investment 
                trust.--The term `timber real estate investment 
                trust' means a real estate investment trust in 
                which more than 50 percent in value of its 
                total assets consists of real property held in 
                connection with the trade or business of 
                producing timber.''.
    (c) Effective Date.--The amendments by this section shall 
apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 15314. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST FOR 
                    TIMBER REITS.

    (a) In General.--Section 856(c)(4)(B)(ii) is amended by 
inserting ``(in the case of a quarter which closes on or before 
the termination date, 25 percent in the case of a timber real 
estate investment trust)'' after ``REIT subsidiaries''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 15315. SAFE HARBOR FOR TIMBER PROPERTY.

    (a) In General.--Section 857(b)(6) (relating to income from 
prohibited transactions) is amended by adding at the end the 
following new subparagraph:
                    ``(G) Special rules for sales to qualified 
                organizations.--
                            ``(i) In general.--In the case of 
                        the sale of a real estate asset (as 
                        defined in section 856(c)(5)(B)) to a 
                        qualified organization (as defined in 
                        section 170(h)(3)) exclusively for 
                        conservation purposes (within the 
                        meaning of section 170(h)(1)(C)), 
                        subparagraph (D) shall be applied--
                                    ``(I) by substituting `2 
                                years' for `4 years' in clause 
                                (i), and
                                    ``(II) by substituting `2-
                                year period' for `4-year 
                                period' in clauses (ii) and 
                                (iii).
                            ``(ii) Termination.--This 
                        subparagraph shall not apply to sales 
                        after the termination date.''.
    (b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is 
amended by inserting ``, or, in the case of a sale on or before 
the termination date, a taxable REIT subsidiary'' after ``any 
income''.
    (c) Sales That Are Not Prohibited Transactions.--Section 
857(b)(6), as amended by subsection (a), is amended by adding 
at the end the following new subparagraph:
                    ``(H) Sales of property that are not a 
                prohibited transaction.--In the case of a sale 
                on or before the termination date, the sale of 
                property which is not a prohibited transaction 
                through the application of subparagraph (D) 
                shall be considered property held for 
                investment or for use in a trade or business 
                and not property described in section 
                1221(a)(1) for all purposes of this 
                subtitle.''.
    (d) Termination Date.--Section 857(b)(6), as amended by 
subsections (a) and (c), is amended by adding at the end the 
following new subparagraph:
                    ``(I) Termination date.--For purposes of 
                this paragraph, the term `termination date' has 
                the meaning given such term by section 
                856(c)(8).''.
    (e) Effective Date.--The amendments made by this section 
shall apply to dispositions in taxable years beginning after 
the date of the enactment of this Act.

SEC. 15316. QUALIFIED FORESTRY CONSERVATION BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 
(relating to credits against tax) is amended by adding at the 
end the following new subpart:

                ``Subpart I--Qualified Tax Credit Bonds

``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. Qualified forestry conservation bonds.

``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a qualified 
tax credit bond on one or more credit allowance dates of the 
bond during any taxable year, there shall be allowed as a 
credit against the tax imposed by this chapter for the taxable 
year an amount equal to the sum of the credits determined under 
subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit 
        determined under this subsection with respect to any 
        credit allowance date for a qualified tax credit bond 
        is 25 percent of the annual credit determined with 
        respect to such bond.
            ``(2) Annual credit.--The annual credit determined 
        with respect to any qualified tax credit bond is the 
        product of--
                    ``(A) the applicable credit rate, 
                multiplied by
                    ``(B) the outstanding face amount of the 
                bond.
            ``(3) Applicable credit rate.--For purposes of 
        paragraph (2), the applicable credit rate is the rate 
        which the Secretary estimates will permit the issuance 
        of qualified tax credit bonds with a specified maturity 
        or redemption date without discount and without 
        interest cost to the qualified issuer. The applicable 
        credit rate with respect to any qualified tax credit 
        bond shall be determined as of the first day on which 
        there is a binding, written contract for the sale or 
        exchange of the bond.
            ``(4) Special rule for issuance and redemption.--In 
        the case of a bond which is issued during the 3-month 
        period ending on a credit allowance date, the amount of 
        the credit determined under this subsection with 
        respect to such credit allowance date shall be a 
        ratable portion of the credit otherwise determined 
        based on the portion of the 3-month period during which 
        the bond is outstanding. A similar rule shall apply 
        when the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under 
        subsection (a) for any taxable year shall not exceed 
        the excess of--
                    ``(A) the sum of the regular tax liability 
                (as defined in section 26(b)) plus the tax 
                imposed by section 55, over
                    ``(B) the sum of the credits allowable 
                under this part (other than subpart C and this 
                subpart).
            ``(2) Carryover of unused credit.--If the credit 
        allowable under subsection (a) exceeds the limitation 
        imposed by paragraph (1) for such taxable year, such 
        excess shall be carried to the succeeding taxable year 
        and added to the credit allowable under subsection (a) 
        for such taxable year (determined before the 
        application of paragraph (1) for such succeeding 
        taxable year).
    ``(d) Qualified Tax Credit Bond.--For purposes of this 
section--
            ``(1) Qualified tax credit bond.--The term 
        `qualified tax credit bond' means a qualified forestry 
        conservation bond which is part of an issue that meets 
        the requirements of paragraphs (2), (3), (4), (5), and 
        (6).
            ``(2) Special rules relating to expenditures.--
                    ``(A) In general.--An issue shall be 
                treated as meeting the requirements of this 
                paragraph if, as of the date of issuance, the 
                issuer reasonably expects--
                            ``(i) 100 percent or more of the 
                        available project proceeds to be spent 
                        for 1 or more qualified purposes within 
                        the 3-year period beginning on such 
                        date of issuance, and
                            ``(ii) a binding commitment with a 
                        third party to spend at least 10 
                        percent of such available project 
                        proceeds will be incurred within the 6-
                        month period beginning on such date of 
                        issuance.
                    ``(B) Failure to spend required amount of 
                bond proceeds within 3 years.--
                            ``(i) In general.--To the extent 
                        that less than 100 percent of the 
                        available project proceeds of the issue 
                        are expended by the close of the 
                        expenditure period for 1 or more 
                        qualified purposes, the issuer shall 
                        redeem all of the nonqualified bonds 
                        within 90 days after the end of such 
                        period. For purposes of this paragraph, 
                        the amount of the nonqualified bonds 
                        required to be redeemed shall be 
                        determined in the same manner as under 
                        section 142.
                            ``(ii) Expenditure period.--For 
                        purposes of this subpart, the term 
                        `expenditure period' means, with 
                        respect to any issue, the 3-year period 
                        beginning on the date of issuance. Such 
                        term shall include any extension of 
                        such period under clause (iii).
                            ``(iii) Extension of period.--Upon 
                        submission of a request prior to the 
                        expiration of the expenditure period 
                        (determined without regard to any 
                        extension under this clause), the 
                        Secretary may extend such period if the 
                        issuer establishes that the failure to 
                        expend the proceeds within the original 
                        expenditure period is due to reasonable 
                        cause and the expenditures for 
                        qualified purposes will continue to 
                        proceed with due diligence.
                    ``(C) Qualified purpose.--For purposes of 
                this paragraph, the term `qualified purpose' 
                means a purpose specified in section 54B(e).
                    ``(D) Reimbursement.--For purposes of this 
                subtitle, available project proceeds of an 
                issue shall be treated as spent for a qualified 
                purpose if such proceeds are used to reimburse 
                the issuer for amounts paid for a qualified 
                purpose after the date that the Secretary makes 
                an allocation of bond limitation with respect 
                to such issue, but only if--
                            ``(i) prior to the payment of the 
                        original expenditure, the issuer 
                        declared its intent to reimburse such 
                        expenditure with the proceeds of a 
                        qualified tax credit bond,
                            ``(ii) not later than 60 days after 
                        payment of the original expenditure, 
                        the issuer adopts an official intent to 
                        reimburse the original expenditure with 
                        such proceeds, and
                            ``(iii) the reimbursement is made 
                        not later than 18 months after the date 
                        the original expenditure is paid.
            ``(3) Reporting.--An issue shall be treated as 
        meeting the requirements of this paragraph if the 
        issuer of qualified tax credit bonds submits reports 
        similar to the reports required under section 149(e).
            ``(4) Special rules relating to arbitrage.--
                    ``(A) In general.--An issue shall be 
                treated as meeting the requirements of this 
                paragraph if the issuer satisfies the 
                requirements of section 148 with respect to the 
                proceeds of the issue.
                    ``(B) Special rule for investments during 
                expenditure period.--An issue shall not be 
                treated as failing to meet the requirements of 
                subparagraph (A) by reason of any investment of 
                available project proceeds during the 
                expenditure period.
                    ``(C) Special rule for reserve funds.--An 
                issue shall not be treated as failing to meet 
                the requirements of subparagraph (A) by reason 
                of any fund which is expected to be used to 
                repay such issue if--
                            ``(i) such fund is funded at a rate 
                        not more rapid than equal annual 
                        installments,
                            ``(ii) such fund is funded in a 
                        manner reasonably expected to result in 
                        an amount not greater than an amount 
                        necessary to repay the issue, and
                            ``(iii) the yield on such fund is 
                        not greater than the discount rate 
                        determined under paragraph (5)(B) with 
                        respect to the issue.
            ``(5) Maturity limitation.--
                    ``(A) In general.--An issue shall be 
                treated as meeting the requirements of this 
                paragraph if the maturity of any bond which is 
                part of such issue does not exceed the maximum 
                term determined by the Secretary under 
                subparagraph (B).
                    ``(B) Maximum term.--During each calendar 
                month, the Secretary shall determine the 
                maximum term permitted under this paragraph for 
                bonds issued during the following calendar 
                month. Such maximum term shall be the term 
                which the Secretary estimates will result in 
                the present value of the obligation to repay 
                the principal on the bond being equal to 50 
                percent of the face amount of such bond. Such 
                present value shall be determined using as a 
                discount rate the average annual interest rate 
                of tax-exempt obligations having a term of 10 
                years or more which are issued during the 
                month. If the term as so determined is not a 
                multiple of a whole year, such term shall be 
                rounded to the next highest whole year.
            ``(6) Prohibition on financial conflicts of 
        interest.--An issue shall be treated as meeting the 
        requirements of this paragraph if the issuer certifies 
        that--
                    ``(A) applicable State and local law 
                requirements governing conflicts of interest 
                are satisfied with respect to such issue, and
                    ``(B) if the Secretary prescribes 
                additional conflicts of interest rules 
                governing the appropriate Members of Congress, 
                Federal, State, and local officials, and their 
                spouses, such additional rules are satisfied 
                with respect to such issue.
    ``(e) Other Definitions.--For purposes of this subchapter--
            ``(1) Credit allowance date.--The term `credit 
        allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(2) Bond.--The term `bond' includes any 
        obligation.
            ``(3) State.--The term `State' includes the 
        District of Columbia and any possession of the United 
        States.
            ``(4) Available project proceeds.--The term 
        `available project proceeds' means--
                    ``(A) the excess of--
                            ``(i) the proceeds from the sale of 
                        an issue, over
                            ``(ii) the issuance costs financed 
                        by the issue (to the extent that such 
                        costs do not exceed 2 percent of such 
                        proceeds), and
                    ``(B) the proceeds from any investment of 
                the excess described in subparagraph (A).
    ``(f) Credit Treated as Interest.--For purposes of this 
subtitle, the credit determined under subsection (a) shall be 
treated as interest which is includible in gross income.
    ``(g) S Corporations and Partnerships.--In the case of a 
tax credit bond held by an S corporation or partnership, the 
allocation of the credit allowed by this section to the 
shareholders of such corporation or partners of such 
partnership shall be treated as a distribution.
    ``(h) Bonds Held by Regulated Investment Companies and Real 
Estate Investment Trusts.--If any qualified tax credit bond is 
held by a regulated investment company or a real estate 
investment trust, the credit determined under subsection (a) 
shall be allowed to shareholders of such company or 
beneficiaries of such trust (and any gross income included 
under subsection (f) with respect to such credit shall be 
treated as distributed to such shareholders or beneficiaries) 
under procedures prescribed by the Secretary.
    ``(i) Credits May Be Stripped.--Under regulations 
prescribed by the Secretary--
            ``(1) In general.--There may be a separation 
        (including at issuance) of the ownership of a qualified 
        tax credit bond and the entitlement to the credit under 
        this section with respect to such bond. In case of any 
        such separation, the credit under this section shall be 
        allowed to the person who on the credit allowance date 
        holds the instrument evidencing the entitlement to the 
        credit and not to the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a 
        separation described in paragraph (1), the rules of 
        section 1286 shall apply to the qualified tax credit 
        bond as if it were a stripped bond and to the credit 
        under this section as if it were a stripped coupon.

``SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS.

    ``(a) Qualified Forestry Conservation Bond.--For purposes 
of this subchapter, the term `qualified forestry conservation 
bond' means any bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds 
        of such issue are to be used for one or more qualified 
        forestry conservation purposes,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes 
        of this section.
    ``(b) Limitation on Amount of Bonds Designated.--The 
maximum aggregate face amount of bonds which may be designated 
under subsection (a) by any issuer shall not exceed the 
limitation amount allocated to such issuer under subsection 
(d).
    ``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified forestry conservation bond 
limitation of $500,000,000.
    ``(d) Allocations.--
            ``(1) In general.--The Secretary shall make 
        allocations of the amount of the national qualified 
        forestry conservation bond limitation described in 
        subsection (c) among qualified forestry conservation 
        purposes in such manner as the Secretary determines 
        appropriate so as to ensure that all of such limitation 
        is allocated before the date which is 24 months after 
        the date of the enactment of this section.
            ``(2) Solicitation of applications.--The Secretary 
        shall solicit applications for allocations of the 
        national qualified forestry conservation bond 
        limitation described in subsection (c) not later than 
        90 days after the date of the enactment of this 
        section.
    ``(e) Qualified Forestry Conservation Purpose.--For 
purposes of this section, the term `qualified forestry 
conservation purpose' means the acquisition by a State or any 
political subdivision or instrumentality thereof or a 501(c)(3) 
organization (as defined in section 150(a)(4)) from an 
unrelated person of forest and forest land that meets the 
following qualifications:
            ``(1) Some portion of the land acquired must be 
        adjacent to United States Forest Service Land.
            ``(2) At least half of the land acquired must be 
        transferred to the United States Forest Service at no 
        net cost to the United States and not more than half of 
        the land acquired may either remain with or be conveyed 
        to a State.
            ``(3) All of the land must be subject to a native 
        fish habitat conservation plan approved by the United 
        States Fish and Wildlife Service.
            ``(4) The amount of acreage acquired must be at 
        least 40,000 acres.
    ``(f) Qualified Issuer.--For purposes of this section, the 
term `qualified issuer' means a State or any political 
subdivision or instrumentality thereof or a 501(c)(3) 
organization (as defined in section 150(a)(4)).
    ``(g) Special Arbitrage Rule.--In the case of any qualified 
forestry conservation bond issued as part of an issue, section 
54A(d)(4)(C) shall be applied to such issue without regard to 
clause (i).
    ``(h) Election to Treat 50 Percent of Bond Allocation as 
Payment of Tax.--
            ``(1) In general.--If--
                    ``(A) a qualified issuer receives an 
                allocation of any portion of the national 
                qualified forestry conservation bond limitation 
                described in subsection (c), and
                    ``(B) the qualified issuer elects the 
                application of this subsection with respect to 
                such allocation,
        then the qualified issuer (without regard to whether 
        the issuer is subject to tax under this chapter) shall 
        be treated as having made a payment against the tax 
        imposed by this chapter, for the taxable year preceding 
        the taxable year in which the allocation is received, 
        in an amount equal to 50 percent of the amount of such 
        allocation.
            ``(2) Treatment of deemed payment.--
                    ``(A) In general.--Notwithstanding any 
                other provision of this title, the Secretary 
                shall not use the payment of tax described in 
                paragraph (1) as an offset or credit against 
                any tax liability of the qualified issuer but 
                shall refund such payment to such issuer.
                    ``(B) No interest.--Except as provided in 
                paragraph (3)(A), the payment described in 
                paragraph (1) shall not be taken into account 
                in determining any amount of interest under 
                this title.
            ``(3) Requirement for, and effect of, election.--
                    ``(A) Requirement.--No election under this 
                subsection shall take effect unless the 
                qualified issuer certifies to the Secretary 
                that any payment of tax refunded to the issuer 
                under this subsection will be used exclusively 
                for 1 or more qualified forestry conservation 
                purposes. If the qualified issuer fails to use 
                any portion of such payment for such purpose, 
                the issuer shall be liable to the United States 
                in an amount equal to such portion, plus 
                interest at the overpayment rate under section 
                6621 for the period from the date such portion 
                was refunded to the date such amount is paid. 
                Any such amount shall be assessed and collected 
                in the same manner as tax imposed by this 
                chapter, except that subchapter B of chapter 63 
                (relating to deficiency procedures) shall not 
                apply in respect of such assessment or 
                collection.
                    ``(B) Effect of election on allocation.--If 
                a qualified issuer makes the election under 
                this subsection with respect to any 
                allocation--
                            ``(i) the issuer may issue no bonds 
                        pursuant to the allocation, and
                            ``(ii) the Secretary may not 
                        reallocate such allocation for any 
                        other purpose.''.
    (b) Reporting.--Subsection (d) of section 6049 (relating to 
returns regarding payments of interest) is amended by adding at 
the end the following new paragraph:
            ``(9) Reporting of credit on qualified tax credit 
        bonds.--
                    ``(A) In general.--For purposes of 
                subsection (a), the term `interest' includes 
                amounts includible in gross income under 
                section 54A and such amounts shall be treated 
                as paid on the credit allowance date (as 
                defined in section 54A(e)(1)).
                    ``(B) Reporting to corporations, etc.--
                Except as otherwise provided in regulations, in 
                the case of any interest described in 
                subparagraph (A) of this paragraph, subsection 
                (b)(4) of this section shall be applied without 
                regard to subparagraphs (A), (H), (I), (J), 
                (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary 
                may prescribe such regulations as are necessary 
                or appropriate to carry out the purposes of 
                this paragraph, including regulations which 
                require more frequent or more detailed 
                reporting.''.
    (c) Conforming Amendments.--
            (1) Sections 54(c)(2) and 1400N(l)(3)(B) are each 
        amended by striking ``subpart C'' and inserting 
        ``subparts C and I''.
            (2) Section 1397E(c)(2) is amended by striking 
        ``subpart H'' and inserting ``subparts H and I''.
            (3) Section 6401(b)(1) is amended by striking ``and 
        H'' and inserting ``H, and I''.
            (4) The heading of subpart H of part IV of 
        subchapter A of chapter 1 is amended by striking 
        ``Certain Bonds'' and inserting ``Clean Renewable 
        Energy Bonds''.
            (5) The table of subparts for part IV of subchapter 
        A of chapter 1 is amended by striking the item relating 
        to subpart H and inserting the following new items:

 ``subpart h. nonrefundable credit to holders of clean renewable energy 
                                 bonds.

               ``subpart i. qualified tax credit bonds.''.

            (6) Paragraph (2) of section 1324(b) of title 31, 
        United States Code, is amended by striking ``or 6428 or 
        53(e)'' and inserting ``, 53(e), 54B(h), or 6428''.
    (d) Effective Dates.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

                       PART II--ENERGY PROVISIONS

                     Subpart A--Cellulosic Biofuel

SEC. 15321. CREDIT FOR PRODUCTION OF CELLULOSIC BIOFUEL.

    (a) In General.--Subsection (a) of section 40 (relating to 
alcohol used as fuel) is amended by striking ``plus'' at the 
end of paragraph (1), by striking ``plus'' at the end of 
paragraph (2), by striking the period at the end of paragraph 
(3) and inserting ``, plus'', and by adding at the end the 
following new paragraph:
            ``(4) the cellulosic biofuel producer credit.''.
    (b) Cellulosic Biofuel Producer Credit.--
            (1) In general.--Subsection (b) of section 40 is 
        amended by adding at the end the following new 
        paragraph:
            ``(6) Cellulosic biofuel producer credit.--
                    ``(A) In general.--The cellulosic biofuel 
                producer credit of any taxpayer is an amount 
                equal to the applicable amount for each gallon 
                of qualified cellulosic biofuel production.
                    ``(B) Applicable amount.--For purposes of 
                subparagraph (A), the applicable amount means 
                $1.01, except that such amount shall, in the 
                case of cellulosic biofuel which is alcohol, be 
                reduced by the sum of--
                            ``(i) the amount of the credit in 
                        effect for such alcohol under 
                        subsection (b)(1) (without regard to 
                        subsection (b)(3)) at the time of the 
                        qualified cellulosic biofuel 
                        production, plus
                            ``(ii) in the case of ethanol, the 
                        amount of the credit in effect under 
                        subsection (b)(4) at the time of such 
                        production.
                    ``(C) Qualified cellulosic biofuel 
                production.--For purposes of this section, the 
                term `qualified cellulosic biofuel production' 
                means any cellulosic biofuel which is produced 
                by the taxpayer, and which during the taxable 
                year--
                            ``(i) is sold by the taxpayer to 
                        another person--
                                    ``(I) for use by such other 
                                person in the production of a 
                                qualified cellulosic biofuel 
                                mixture in such other person's 
                                trade or business (other than 
                                casual off-farm production),
                                    ``(II) for use by such 
                                other person as a fuel in a 
                                trade or business, or
                                    ``(III) who sells such 
                                cellulosic biofuel at retail to 
                                another person and places such 
                                cellulosic biofuel in the fuel 
                                tank of such other person, or
                            ``(ii) is used or sold by the 
                        taxpayer for any purpose described in 
                        clause (i).
                The qualified cellulosic biofuel production of 
                any taxpayer for any taxable year shall not 
                include any alcohol which is purchased by the 
                taxpayer and with respect to which such 
                producer increases the proof of the alcohol by 
                additional distillation.
                    ``(D) Qualified cellulosic biofuel 
                mixture.--For purposes of this paragraph, the 
                term `qualified cellulosic biofuel mixture' 
                means a mixture of cellulosic biofuel and 
                gasoline or of cellulosic biofuel and a special 
                fuel which--
                            ``(i) is sold by the person 
                        producing such mixture to any person 
                        for use as a fuel, or
                            ``(ii) is used as a fuel by the 
                        person producing such mixture.
                    ``(E) Cellulosic biofuel.--For purposes of 
                this paragraph--
                            ``(i) In general.--The term 
                        `cellulosic biofuel' means any liquid 
                        fuel which--
                                    ``(I) is produced from any 
                                lignocellulosic or 
                                hemicellulosic matter that is 
                                available on a renewable or 
                                recurring basis, and
                                    ``(II) meets the 
                                registration requirements for 
                                fuels and fuel additives 
                                established by the 
                                Environmental Protection Agency 
                                under section 211 of the Clean 
                                Air Act (42 U.S.C. 7545).
                            ``(ii) Exclusion of low-proof 
                        alcohol.--Such term shall not include 
                        any alcohol with a proof of less than 
                        150. The determination of the proof of 
                        any alcohol shall be made without 
                        regard to any added denaturants.
                    ``(F) Allocation of cellulosic biofuel 
                producer credit to patrons of cooperative.--
                Rules similar to the rules under subsection 
                (g)(6) shall apply for purposes of this 
                paragraph.
                    ``(G) Registration requirement.--No credit 
                shall be determined under this paragraph with 
                respect to any taxpayer unless such taxpayer is 
                registered with the Secretary as a producer of 
                cellulosic biofuel under section 4101.
                    ``(H) Application of paragraph.--This 
                paragraph shall apply with respect to qualified 
                cellulosic biofuel production after December 
                31, 2008, and before January 1, 2013.''.
            (2) Termination date not to apply.--Subsection (e) 
        of section 40 (relating to termination) is amended--
                    (A) by inserting ``or subsection 
                (b)(6)(H)'' after ``by reason of paragraph 
                (1)'' in paragraph (2), and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Exception for cellulosic biofuel producer 
        credit.--Paragraph (1) shall not apply to the portion 
        of the credit allowed under this section by reason of 
        subsection (a)(4).''.
            (3) Conforming amendments.--
                    (A) Paragraph (1) of section 4101(a) is 
                amended--
                            (i) by striking ``and every 
                        person'' and inserting ``, every 
                        person'', and
                            (ii) by inserting ``, and every 
                        person producing cellulosic biofuel (as 
                        defined in section 40(b)(6)(E))'' after 
                        ``section 6426(b)(4)(A))''.
                    (B) The heading of section 40, and the item 
                relating to such section in the table of 
                sections for subpart D of part IV of subchapter 
                A of chapter 1, are each amended by inserting 
                ``, etc.,'' after ``Alcohol''.
    (c) Biofuel Not Used as a Fuel, etc.--
            (1) In general.--Paragraph (3) of section 40(d) is 
        amended by redesignating subparagraph (D) as 
        subparagraph (E) and by inserting after subparagraph 
        (C) the following new subparagraph:
                    ``(D) Cellulosic biofuel producer credit.--
                If--
                            ``(i) any credit is allowed under 
                        subsection (a)(4), and
                            ``(ii) any person does not use such 
                        fuel for a purpose described in 
                        subsection (b)(6)(C),
                then there is hereby imposed on such person a 
                tax equal to the applicable amount (as defined 
                in subsection (b)(6)(B)) for each gallon of 
                such cellulosic biofuel.''.
            (2) Conforming amendments.--
                    (A) Subparagraph (C) of section 40(d)(3) is 
                amended by striking ``Producer'' in the heading 
                and inserting ``Small ethanol producer''.
                    (B) Subparagraph (E) of section 40(d)(3), 
                as redesignated by paragraph (1), is amended by 
                striking ``or (C)'' and inserting ``(C), or 
                (D)''.
    (d) Biofuel Produced in the United States.--Section 40(d) 
is amended by adding at the end the following new paragraph:
            ``(6) Special rule for cellulosic biofuel producer 
        credit.--No cellulosic biofuel producer credit shall be 
        determined under subsection (a) with respect to any 
        cellulosic biofuel unless such cellulosic biofuel is 
        produced in the United States and used as a fuel in the 
        United States. For purposes of this subsection, the 
        term `United States' includes any possession of the 
        United States.''.
    (e) Waiver of Credit Limit for Cellulosic Biofuel 
Production by Small Ethanol Producers.--Section 40(b)(4)(C) is 
amended by inserting ``(determined without regard to any 
qualified cellulosic biofuel production)'' after ``15,000,000 
gallons''.
    (f) Denial of Double Benefit.--
            (1) Biodiesel.--Paragraph (1) of section 40A(d) is 
        amended by adding at the end the following new flush 
        sentence:
        ``Such term shall not include any liquid with respect 
        to which a credit may be determined under section 
        40.''.
            (2) Renewable diesel.--Paragraph (3) of section 
        40A(f) is amended by adding at the end the following 
        new flush sentence:
        ``Such term shall not include any liquid with respect 
        to which a credit may be determined under section 
        40.''.
    (g) Effective Date.--The amendments made by this section 
shall apply to fuel produced after December 31, 2008.

SEC. 15322. COMPREHENSIVE STUDY OF BIOFUELS.

    (a) Study.--The Secretary of the Treasury, in consultation 
with the Secretary of Agriculture, the Secretary of Energy, and 
the Administrator of the Environmental Protection Agency, shall 
enter into an agreement with the National Academy of Sciences 
to produce an analysis of current scientific findings to 
determine--
            (1) current biofuels production, as well as 
        projections for future production,
            (2) the maximum amount of biofuels production 
        capable in United States forests and farmlands, 
        including the current quantities and character of the 
        feedstocks and including such information as regional 
        forest inventories that are commercially available, 
        used in the production of biofuels,
            (3) the domestic effects of an increase in biofuels 
        production levels, including the effects of such levels 
        on--
                    (A) the price of fuel,
                    (B) the price of land in rural and suburban 
                communities,
                    (C) crop acreage, forest acreage, and other 
                land use,
                    (D) the environment, due to changes in crop 
                acreage, fertilizer use, runoff, water use, 
                emissions from vehicles utilizing biofuels, and 
                other factors,
                    (E) the price of feed,
                    (F) the selling price of grain crops and 
                forest products,
                    (G) exports and imports of grains and 
                forest products,
                    (H) taxpayers, through cost or savings to 
                commodity crop payments, and
                    (I) the expansion of refinery capacity,
            (4) the ability to convert corn ethanol plants for 
        other uses, such as cellulosic ethanol or biodiesel,
            (5) a comparative analysis of corn ethanol versus 
        other biofuels and renewable energy sources, 
        considering cost, energy output, and ease of 
        implementation,
            (6) the impact of the tax credit established by 
        this subpart on the regional agricultural and 
        silvicultural capabilities of commercially available 
        forest inventories, and
            (7) the need for additional scientific inquiry, and 
        specific areas of interest for future research.
    (b) Report.--The Secretary of the Treasury shall submit an 
initial report of the findings of the study required under 
subsection (a) to Congress not later than 6 months after the 
date of the enactment of this Act (36 months after such date in 
the case of the information required by subsection (a)(6)), and 
a final report not later than 12 months after such date (42 
months after such date in the case of the information required 
by subsection (a)(6)).

                     Subpart B--Revenue Provisions

SEC. 15331. MODIFICATION OF ALCOHOL CREDIT.

    (a) Income Tax Credit.--
            (1) In general.--The table in paragraph (2) of 
        section 40(h) is amended--
                    (A) by striking ``through 2010'' in the 
                first column and inserting ``, 2006, 2007, or 
                2008'',
                    (B) by striking the period at the end of 
                the third row, and
                    (C) by adding at the end the following new 
                row:


``2009 through 2010..............  45 cents............  33.33 cents.''.


            (2) Exception.--Section 40(h) is amended by adding 
        at the end the following new paragraph:
            ``(3) Reduction delayed until annual production or 
        importation of 7,500,000,000 gallons.--
                    ``(A) In general.--In the case of any 
                calendar year beginning after 2008, if the 
                Secretary makes a determination described in 
                subparagraph (B) with respect to all preceding 
                calendar years beginning after 2007, the last 
                row in the table in paragraph (2) shall be 
                applied by substituting `51 cents' for `45 
                cents'.
                    ``(B) Determination.--A determination 
                described in this subparagraph with respect to 
                any calendar year is a determination, in 
                consultation with the Administrator of the 
                Environmental Protection Agency, that an amount 
                less than 7,500,000,000 gallons of ethanol 
                (including cellulosic ethanol) has been 
                produced in or imported into the United States 
                in such year.''.
    (b) Excise Tax Credit.--
            (1) In general.--Subparagraph (A) of section 
        6426(b)(2) (relating to alcohol fuel mixture credit) is 
        amended by striking ``the applicable amount is 51 
        cents'' and inserting ``the applicable amount is--
                            ``(i) in the case of calendar years 
                        beginning before 2009, 51 cents, and
                            ``(ii) in the case of calendar 
                        years beginning after 2008, 45 
                        cents.''.
            (2) Exception.--Paragraph (2) of section 6426(b) is 
        amended by adding at the end the following new 
        subparagraph:
                    ``(C) Reduction delayed until annual 
                production or importation of 7,500,000,000 
                gallons.--In the case of any calendar year 
                beginning after 2008, if the Secretary makes a 
                determination described in section 40(h)(3)(B) 
                with respect to all preceding calendar years 
                beginning after 2007, subparagraph (A)(ii) 
                shall be applied by substituting `51 cents' for 
                `45 cents'.''
            (3) Conforming amendment.--Subparagraph (A) of 
        section 6426(b)(2) is amended by striking 
        ``subparagraph (B)'' and inserting ``subparagraphs (B) 
        and (C)''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act.

SEC. 15332. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL CREDITS.

    (a) In General.--Paragraph (4) of section 40(d) (relating 
to volume of alcohol) is amended by striking ``5 percent'' and 
inserting ``2 percent''.
    (b) Conforming Amendment for Excise Tax Credit.--Section 
6426(b) (relating to alcohol fuel mixture credit) is amended by 
redesignating paragraph (5) as paragraph (6) and by inserting 
after paragraph (4) the following new paragraph:
            ``(5) Volume of alcohol.--For purposes of 
        determining under subsection (a) the number of gallons 
        of alcohol with respect to which a credit is allowable 
        under subsection (a), the volume of alcohol shall 
        include the volume of any denaturant (including 
        gasoline) which is added under any formulas approved by 
        the Secretary to the extent that such denaturants do 
        not exceed 2 percent of the volume of such alcohol 
        (including denaturants).''.
    (c) Effective Date.--The amendments made by this section 
shall apply to fuel sold or used after December 31, 2008.

SEC. 15333. ETHANOL TARIFF EXTENSION.

    Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff 
Schedule of the United States are each amended in the effective 
period column by striking ``1/1/2009'' and inserting ``1/1/
2011''.

SEC. 15334. LIMITATIONS ON DUTY DRAWBACK ON CERTAIN IMPORTED ETHANOL.

    (a) In General.--Section 313(p) of the Tariff Act of 1930 
(19 U.S.C. 1313(p)) is amended by adding at the end the 
following new paragraph:
            ``(5) Special rules for ethyl alcohol.--For 
        purposes of this subsection, any duty paid under 
        subheading 9901.00.50 of the Harmonized Tariff Schedule 
        of the United States on imports of ethyl alcohol or a 
        mixture of ethyl alcohol may not be refunded if the 
        exported article upon which a drawback claim is based 
        does not contain ethyl alcohol or a mixture of ethyl 
        alcohol.''.
    (b) Effective Date.--The amendment made by this section 
applies with respect to--
            (1) imports of ethyl alcohol or a mixture of ethyl 
        alcohol entered for consumption, or withdrawn from 
        warehouse for consumption, on or after October 1, 2008; 
        and
            (2) imports of ethyl alcohol or a mixture of ethyl 
        alcohol entered for consumption, or withdrawn from 
        warehouse for consumption, before October 1, 2008, if a 
        duty drawback claim is filed with respect to such 
        imports on or after October 1, 2010.

                   PART III--AGRICULTURAL PROVISIONS

SEC. 15341. INCREASE IN LOAN LIMITS ON AGRICULTURAL BONDS.

    (a) In General.--Subparagraph (A) of section 147(c)(2) 
(relating to exception for first-time farmers) is amended by 
striking ``$250,000'' and inserting ``$450,000''.
    (b) Inflation Adjustment.--Section 147(c)(2) is amended by 
adding at the end the following new subparagraph:
                    ``(H) Adjustments for inflation.--In the 
                case of any calendar year after 2008, the 
                dollar amount in subparagraph (A) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, 
                        multiplied by
                            ``(ii) the cost-of-living 
                        adjustment determined under section 
                        1(f)(3) for the calendar year, 
                        determined by substituting `calendar 
                        year 2007' for `calendar year 1992' in 
                        subparagraph (B) thereof.
                If any amount as increased under the preceding 
                sentence is not a multiple of $100, such amount 
                shall be rounded to the nearest multiple of 
                $100.''.
    (c) Modification of Substantial Farmland Definition.--
Section 147(c)(2)(E) (defining substantial farmland) is amended 
by striking ``unless'' and all that follows through the period 
and inserting ``unless such parcel is smaller than 30 percent 
of the median size of a farm in the county in which such parcel 
is located.''.
    (d) Conforming Amendment.--Section 147(c)(2)(C)(i)(II) is 
amended by striking ``$250,000'' and inserting ``the amount in 
effect under subparagraph (A)''.
    (e) Effective Date.--The amendments made by this section 
shall apply to bonds issued after the date of the enactment of 
this Act.

SEC. 15342. ALLOWANCE OF SECTION 1031 TREATMENT FOR EXCHANGES INVOLVING 
                    CERTAIN MUTUAL DITCH, RESERVOIR, OR IRRIGATION 
                    COMPANY STOCK.

    (a) In General.--Section 1031 (relating to exchange of 
property held for productive use or investment) is amended by 
adding at the end the following new subsection:
    ``(i) Special Rules for Mutual Ditch, Reservoir, or 
Irrigation Company Stock.--For purposes of subsection 
(a)(2)(B), the term `stocks' shall not include shares in a 
mutual ditch, reservoir, or irrigation company if at the time 
of the exchange--
            ``(1) the mutual ditch, reservoir, or irrigation 
        company is an organization described in section 
        501(c)(12)(A) (determined without regard to the 
        percentage of its income that is collected from its 
        members for the purpose of meeting losses and 
        expenses), and
            ``(2) the shares in such company have been 
        recognized by the highest court of the State in which 
        such company was organized or by applicable State 
        statute as constituting or representing real property 
        or an interest in real property.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to exchanges completed after the date of the 
enactment of this Act.

SEC. 15343. AGRICULTURAL CHEMICALS SECURITY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of 
chapter 1 (relating to business related credits) is amended by 
adding at the end the following new section:

``SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.

    ``(a) In General.--For purposes of section 38, in the case 
of an eligible agricultural business, the agricultural 
chemicals security credit determined under this section for the 
taxable year is 30 percent of the qualified security 
expenditures for the taxable year.
    ``(b) Facility Limitation.--The amount of the credit 
determined under subsection (a) with respect to any facility 
for any taxable year shall not exceed--
            ``(1) $100,000, reduced by
            ``(2) the aggregate amount of credits determined 
        under subsection (a) with respect to such facility for 
        the 5 prior taxable years.
    ``(c) Annual Limitation.--The amount of the credit 
determined under subsection (a) with respect to any taxpayer 
for any taxable year shall not exceed $2,000,000.
    ``(d) Qualified Chemical Security Expenditure.--For 
purposes of this section, the term `qualified chemical security 
expenditure' means, with respect to any eligible agricultural 
business for any taxable year, any amount paid or incurred by 
such business during such taxable year for--
            ``(1) employee security training and background 
        checks,
            ``(2) limitation and prevention of access to 
        controls of specified agricultural chemicals stored at 
        the facility,
            ``(3) tagging, locking tank valves, and chemical 
        additives to prevent the theft of specified 
        agricultural chemicals or to render such chemicals 
        unfit for illegal use,
            ``(4) protection of the perimeter of specified 
        agricultural chemicals,
            ``(5) installation of security lighting, cameras, 
        recording equipment, and intrusion detection sensors,
            ``(6) implementation of measures to increase 
        computer or computer network security,
            ``(7) conducting a security vulnerability 
        assessment,
            ``(8) implementing a site security plan, and
            ``(9) such other measures for the protection of 
        specified agricultural chemicals as the Secretary may 
        identify in regulation.
Amounts described in the preceding sentence shall be taken into 
account only to the extent that such amounts are paid or 
incurred for the purpose of protecting specified agricultural 
chemicals.
    ``(e) Eligible Agricultural Business.--For purposes of this 
section, the term `eligible agricultural business' means any 
person in the trade or business of--
            ``(1) selling agricultural products, including 
        specified agricultural chemicals, at retail 
        predominantly to farmers and ranchers, or
            ``(2) manufacturing, formulating, distributing, or 
        aerially applying specified agricultural chemicals.
    ``(f) Specified Agricultural Chemical.--For purposes of 
this section, the term `specified agricultural chemical' 
means--
            ``(1) any fertilizer commonly used in agricultural 
        operations which is listed under--
                    ``(A) section 302(a)(2) of the Emergency 
                Planning and Community Right-to-Know Act of 
                1986,
                    ``(B) section 101 of part 172 of title 49, 
                Code of Federal Regulations, or
                    ``(C) part 126, 127, or 154 of title 33, 
                Code of Federal Regulations, and
            ``(2) any pesticide (as defined in section 2(u) of 
        the Federal Insecticide, Fungicide, and Rodenticide 
        Act), including all active and inert ingredients 
        thereof, which is customarily used on crops grown for 
        food, feed, or fiber.
    ``(g) Controlled Groups.--Rules similar to the rules of 
paragraphs (1) and (2) of section 41(f) shall apply for 
purposes of this section.
    ``(h) Regulations.--The Secretary may prescribe such 
regulations as may be necessary or appropriate to carry out the 
purposes of this section, including regulations which--
            ``(1) provide for the proper treatment of amounts 
        which are paid or incurred for purpose of protecting 
        any specified agricultural chemical and for other 
        purposes, and
            ``(2) provide for the treatment of related 
        properties as one facility for purposes of subsection 
        (b).
    ``(i) Termination.--This section shall not apply to any 
amount paid or incurred after December 31, 2012.''.
    (b) Credit Allowed as Part of General Business Credit.--
Section 38(b) is amended by striking ``plus'' at the end of 
paragraph (30), by striking the period at the end of paragraph 
(31) and inserting ``, plus'', and by adding at the end the 
following new paragraph:
            ``(32) in the case of an eligible agricultural 
        business (as defined in section 45O(e)), the 
        agricultural chemicals security credit determined under 
        section 45O(a).''.
    (c) Denial of Double Benefit.--Section 280C is amended by 
adding at the end the following new subsection:
    ``(f) Credit for Security of Agricultural Chemicals.--No 
deduction shall be allowed for that portion of the expenses 
otherwise allowable as a deduction taken into account in 
determining the credit under section 45O for the taxable year 
which is equal to the amount of the credit determined for such 
taxable year under section 45O(a).''.
    (d) Clerical Amendment.--The table of sections for subpart 
D of part IV of subchapter A of chapter 1 is amended by adding 
at the end the following new item:

``Sec. 45O. Agricultural chemicals security credit.''.

    (e) Effective Date.--The amendments made by this section 
shall apply to amounts paid or incurred after the date of the 
enactment of this Act.

SEC. 15344. 3-YEAR DEPRECIATION FOR RACE HORSES THAT ARE 2 YEARS OLD OR 
                    YOUNGER.

    (a) In General.--Clause (i) of section 168(e)(3)(A) 
(relating to 3-year property) is amended to read as follows:
                            ``(i) any race horse--
                                    ``(I) which is placed in 
                                service before January 1, 2014, 
                                and
                                    ``(II) which is placed in 
                                service after December 31, 
                                2013, and which is more than 2 
                                years old at the time such 
                                horse is placed in service by 
                                such purchaser,''.
    (b) Effective Date.--The amendment made by this section 
shall apply to property placed in service after December 31, 
2008.

SEC. 15345. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND 
                    SURROUNDING AREA.

    (a) In General.--Subject to the modifications described in 
this section, the following provisions of or relating to the 
Internal Revenue Code of 1986 shall apply to the Kansas 
disaster area in addition to the areas to which such provisions 
otherwise apply:
            (1) Section 1400N(d) of such Code (relating to 
        special allowance for certain property).
            (2) Section 1400N(e) of such Code (relating to 
        increase in expensing under section 179).
            (3) Section 1400N(f) of such Code (relating to 
        expensing for certain demolition and clean-up costs).
            (4) Section 1400N(k) of such Code (relating to 
        treatment of net operating losses attributable to storm 
        losses).
            (5) Section 1400N(n) of such Code (relating to 
        treatment of representations regarding income 
        eligibility for purposes of qualified rental project 
        requirements).
            (6) Section 1400N(o) of such Code (relating to 
        treatment of public utility property disaster losses).
            (7) Section 1400Q of such Code (relating to special 
        rules for use of retirement funds).
            (8) Section 1400R(a) of such Code (relating to 
        employee retention credit for employers).
            (9) Section 1400S(b) of such Code (relating to 
        suspension of certain limitations on personal casualty 
        losses).
            (10) Section 405 of the Katrina Emergency Tax 
        Relief Act of 2005 (relating to extension of 
        replacement period for nonrecognition of gain).
    (b) Kansas Disaster Area.--For purposes of this section, 
the term ``Kansas disaster area'' means an area with respect to 
which a major disaster has been declared by the President under 
section 401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (FEMA-1699-DR, as in effect on the 
date of the enactment of this Act) by reason of severe storms 
and tornados beginning on May 4, 2007, and determined by the 
President to warrant individual or individual and public 
assistance from the Federal Government under such Act with 
respect to damages attributable to such storms and tornados.
    (c) References to Area or Loss.--
            (1) Area.--Any reference in such provisions to the 
        Katrina disaster area or the Gulf Opportunity Zone 
        shall be treated as a reference to the Kansas disaster 
        area.
            (2) Loss.--Any reference in such provisions to any 
        loss or damage attributable to Hurricane Katrina shall 
        be treated as a reference to any loss or damage 
        attributable to the May 4, 2007, storms and tornados.
    (d) References to Dates, etc.--
            (1) Special allowance for certain property acquired 
        on or after may 5, 2007.--Section 1400N(d) of such 
        Code--
                    (A) by substituting ``qualified Recovery 
                Assistance property'' for ``qualified Gulf 
                Opportunity Zone property'' each place it 
                appears,
                    (B) by substituting ``May 5, 2007'' for 
                ``August 28, 2005'' each place it appears,
                    (C) by substituting ``December 31, 2008'' 
                for ``December 31, 2007'' in paragraph 
                (2)(A)(v),
                    (D) by substituting ``December 31, 2009'' 
                for ``December 31, 2008'' in paragraph 
                (2)(A)(v),
                    (E) by substituting ``May 4, 2007'' for 
                ``August 27, 2005'' in paragraph (3)(A),
                    (F) by substituting ``January 1, 2009'' for 
                ``January 1, 2008'' in paragraph (3)(B), and
                    (G) determined without regard to paragraph 
                (6) thereof.
            (2) Increase in expensing under section 179.--
        Section 1400N(e) of such Code, by substituting 
        ``qualified section 179 Recovery Assistance property'' 
        for ``qualified section 179 Gulf Opportunity Zone 
        property'' each place it appears.
            (3) Expensing for certain demolition and clean-up 
        costs.--Section 1400N(f) of such Code--
                    (A) by substituting ``qualified Recovery 
                Assistance clean-up cost'' for ``qualified Gulf 
                Opportunity Zone clean-up cost'' each place it 
                appears, and
                    (B) by substituting ``beginning on May 4, 
                2007, and ending on December 31, 2009'' for 
                ``beginning on August 28, 2005, and ending on 
                December 31, 2007'' in paragraph (2) thereof.
            (4) Treatment of net operating losses attributable 
        to storm losses.--Section 1400N(k) of such Code--
                    (A) by substituting ``qualified Recovery 
                Assistance loss'' for ``qualified Gulf 
                Opportunity Zone loss'' each place it appears,
                    (B) by substituting ``after May 3, 2007, 
                and before on January 1, 2010'' for ``after 
                August 27, 2005, and before January 1, 2008'' 
                each place it appears,
                    (C) by substituting ``May 4, 2007'' for 
                ``August 28, 2005'' in paragraph (2)(B)(ii)(I) 
                thereof,
                    (D) by substituting ``qualified Recovery 
                Assistance property'' for ``qualified Gulf 
                Opportunity Zone property'' in paragraph 
                (2)(B)(iv) thereof, and
                    (E) by substituting ``qualified Recovery 
                Assistance casualty loss'' for ``qualified Gulf 
                Opportunity Zone casualty loss'' each place it 
                appears.
            (5) Special rules for use of retirement funds.--
        Section 1400Q of such Code--
                    (A) by substituting ``qualified Recovery 
                Assistance distribution'' for ``qualified 
                hurricane distribution'' each place it appears,
                    (B) by substituting ``on or after May 4, 
                2007, and before January 1, 2009'' for ``on or 
                after August 25, 2005, and before January 1, 
                2007'' in subsection (a)(4)(A)(i),
                    (C) by substituting ``May 4, 2007'' for 
                ``August 28, 2005'' in subsections (a)(4)(A)(i) 
                and (c)(3)(B),
                    (D) disregarding clauses (ii) and (iii) of 
                subsection (a)(4)(A),
                    (E) by substituting ``qualified storm 
                distribution'' for ``qualified Katrina 
                distribution'' each place it appears,
                    (F) by substituting ``after November 4, 
                2006, and before May 5, 2007'' for ``after 
                February 28, 2005, and before August 29, 2005'' 
                in subsection (b)(2)(B)(ii),
                    (G) by substituting ``the Kansas disaster 
                area (as defined in section 15345(b) of the 
                Food, Conservation, and Energy Act of 2008) but 
                which was not so purchased or constructed on 
                account of the May 4, 2007, storms and 
                tornados'' for ``the Hurricane Katrina disaster 
                area, but not so purchased or constructed on 
                account of Hurricane Katrina'' in subsection 
                (b)(2)(B)(iii),
                    (H) by substituting ``beginning on May 4, 
                2007, and ending on the date which is 5 months 
                after the date of the enactment of the 
                Heartland, Habitat, Harvest, and Horticulture 
                Act of 2008'' for ``beginning on August 25, 
                2005, and ending on February 28, 2006'' in 
                subsection (b)(3)(A),
                    (I) by substituting ``qualified storm 
                individual'' for ``qualified Hurricane Katrina 
                individual'' each place it appears,
                    (J) by substituting ``December 31, 2008'' 
                for ``December 31, 2006'' in subsection 
                (c)(2)(A),
                    (K) by substituting ``beginning on the date 
                of the enactment of the Food, Conservation, and 
                Energy Act of 2008 and ending on December 31, 
                2008'' for ``beginning on September 24, 2005, 
                and ending on December 31, 2006'' in subsection 
                (c)(4)(A)(i),
                    (L) by substituting ``May 4, 2007'' for 
                ``August 25, 2005'' in subsection 
                (c)(4)(A)(ii), and
                    (M) by substituting ``January 1, 2009'' for 
                ``January 1, 2007'' in subsection 
                (d)(2)(A)(ii).
            (6) Employee retention credit for employers 
        affected by may 4 storms and tornados.--Section 
        1400R(a) of the Internal Revenue Code of 1986--
                    (A) by substituting ``May 4, 2007'' for 
                ``August 28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2008'' for 
                ``January 1, 2006'' both places it appears, and
                    (C) only with respect to eligible employers 
                who employed an average of not more than 200 
                employees on business days during the taxable 
                year before May 4, 2007.
            (7) Suspension of certain limitations on personal 
        casualty losses.--Section 1400S(b)(1) of the Internal 
        Revenue Code of 1986, by substituting ``May 4, 2007'' 
        for ``August 25, 2005''.
            (8) Extension of replacement period for 
        nonrecognition of gain.--Section 405 of the Katrina 
        Emergency Tax Relief Act of 2005, by substituting ``on 
        or after May 4, 2007'' for ``on or after August 25, 
        2005''.

SEC. 15346. COMPETITIVE CERTIFICATION AWARDS MODIFICATION AUTHORITY.

    (a) In General.--Section 48A (relating to qualifying 
advanced coal project credit) is amended by adding at the end 
the following new subsection:
    ``(h) Competitive Certification Awards Modification 
Authority.--In implementing this section or section 48B, the 
Secretary is directed to modify the terms of any competitive 
certification award and any associated closing agreement where 
such modification--
            ``(1) is consistent with the objectives of such 
        section,
            ``(2) is requested by the recipient of the 
        competitive certification award, and
            ``(3) involves moving the project site to improve 
        the potential to capture and sequester carbon dioxide 
        emissions, reduce costs of transporting feedstock, and 
        serve a broader customer base,
unless the Secretary determines that the dollar amount of tax 
credits available to the taxpayer under such section would 
increase as a result of the modification or such modification 
would result in such project not being originally certified. In 
considering any such modification, the Secretary shall consult 
with other relevant Federal agencies, including the Department 
of Energy.''.
    (b) Effective Date.--The amendment made by this section 
shall take effect on the date of the enactment of this Act and 
is applicable to all competitive certification awards entered 
into under section 48A or 48B of the Internal Revenue Code of 
1986, whether such awards were issued before, on, or after such 
date of enactment.

                   PART IV--OTHER REVENUE PROVISIONS

SEC. 15351. LIMITATION ON EXCESS FARM LOSSES OF CERTAIN TAXPAYERS.

    (a) In General.--Section 461 (relating to general rule for 
taxable year of deduction) is amended by adding at the end the 
following new subsection:
    ``(j) Limitation on Excess Farm Losses of Certain 
Taxpayers.--
            ``(1) Limitation.--If a taxpayer other than a C 
        corporation receives any applicable subsidy for any 
        taxable year, any excess farm loss of the taxpayer for 
        the taxable year shall not be allowed.
            ``(2) Disallowed loss carried to next taxable 
        year.--Any loss which is disallowed under paragraph (1) 
        shall be treated as a deduction of the taxpayer 
        attributable to farming businesses in the next taxable 
        year.
            ``(3) Applicable subsidy.--For purposes of this 
        subsection, the term `applicable subsidy' means--
                    ``(A) any direct or counter-cyclical 
                payment under title I of the Food, 
                Conservation, and Energy Act of 2008, or any 
                payment elected to be received in lieu of any 
                such payment, or
                    ``(B) any Commodity Credit Corporation 
                loan.
            ``(4) Excess farm loss.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `excess farm 
                loss' means the excess of--
                            ``(i) the aggregate deductions of 
                        the taxpayer for the taxable year which 
                        are attributable to farming businesses 
                        of such taxpayer (determined without 
                        regard to whether or not such 
                        deductions are disallowed for such 
                        taxable year under paragraph (1)), over
                            ``(ii) the sum of--
                                    ``(I) the aggregate gross 
                                income or gain of such taxpayer 
                                for the taxable year which is 
                                attributable to such farming 
                                businesses, plus
                                    ``(II) the threshold amount 
                                for the taxable year.
                    ``(B) Threshold amount.--
                            ``(i) In general.--The term 
                        `threshold amount' means, with respect 
                        to any taxable year, the greater of--
                                    ``(I) $300,000 ($150,000 in 
                                the case of married individuals 
                                filing separately), or
                                    ``(II) the excess (if any) 
                                of the aggregate amounts 
                                described in subparagraph 
                                (A)(ii)(I) for the 5-
                                consecutive taxable year period 
                                preceding the taxable year over 
                                the aggregate amounts described 
                                in subparagraph (A)(i) for such 
                                period.
                            ``(ii) Special rules for 
                        determining aggregate amounts.--For 
                        purposes of clause (i)(II)--
                                    ``(I) notwithstanding the 
                                disregard in subparagraph 
                                (A)(i) of any disallowance 
                                under paragraph (1), in the 
                                case of any loss which is 
                                carried forward under paragraph 
                                (2) from any taxable year, such 
                                loss (or any portion thereof) 
                                shall be taken into account for 
                                the first taxable year in which 
                                a deduction for such loss (or 
                                portion) is not disallowed by 
                                reason of this subsection, and
                                    ``(II) the Secretary shall 
                                prescribe rules for the 
                                computation of the aggregate 
                                amounts described in such 
                                clause in cases where the 
                                filing status of the taxpayer 
                                is not the same for the taxable 
                                year and each of the taxable 
                                years in the period described 
                                in such clause.
                    ``(C) Farming business.--
                            ``(i) In general.--The term 
                        `farming business' has the meaning 
                        given such term in section 263A(e)(4).
                            ``(ii) Certain trades and 
                        businesses included.--If, without 
                        regard to this clause, a taxpayer is 
                        engaged in a farming business with 
                        respect to any agricultural or 
                        horticultural commodity--
                                    ``(I) the term `farming 
                                business' shall include any 
                                trade or business of the 
                                taxpayer of the processing of 
                                such commodity (without regard 
                                to whether the processing is 
                                incidental to the growing, 
                                raising, or harvesting of such 
                                commodity), and
                                    ``(II) if the taxpayer is a 
                                member of a cooperative to 
                                which subchapter T applies, any 
                                trade or business of the 
                                cooperative described in 
                                subclause (I) shall be treated 
                                as the trade or business of the 
                                taxpayer.
                    ``(D) Certain losses disregarded.--For 
                purposes of subparagraph (A)(i), there shall 
                not be taken into account any deduction for any 
                loss arising by reason of fire, storm, or other 
                casualty, or by reason of disease or drought, 
                involving any farming business.
            ``(5) Application of subsection in case of 
        partnerships and s corporations.--In the case of a 
        partnership or S corporation--
                    ``(A) this subsection shall be applied at 
                the partner or shareholder level, and
                    ``(B) each partner's or shareholder's 
                proportionate share of the items of income, 
                gain, or deduction of the partnership or S 
                corporation for any taxable year from farming 
                businesses attributable to the partnership or S 
                corporation, and of any applicable subsidies 
                received by the partnership or S corporation 
                during the taxable year, shall be taken into 
                account by the partner or shareholder in 
                applying this subsection to the taxable year of 
                such partner or shareholder with or within 
                which the taxable year of the partnership or S 
                corporation ends.
        The Secretary may provide rules for the application of 
        this paragraph to any other pass-thru entity to the 
        extent necessary to carry out the provisions of this 
        subsection.
            ``(6) Additional reporting.--The Secretary may 
        prescribe such additional reporting requirements as the 
        Secretary determines appropriate to carry out the 
        purposes of this subsection.
            ``(7) Coordination with section 469.--This 
        subsection shall be applied before the application of 
        section 469.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years beginning after December 31, 2009.

SEC. 15352. MODIFICATION TO OPTIONAL METHOD OF COMPUTING NET EARNINGS 
                    FROM SELF-EMPLOYMENT.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) In general.--The matter following paragraph 
        (17) of section 1402(a) is amended--
                    (A) by striking ``$2,400'' each place it 
                appears and inserting ``the upper limit'', and
                    (B) by striking ``$1,600'' each place it 
                appears and inserting ``the lower limit''.
            (2) Definitions.--Section 1402 is amended by adding 
        at the end the following new subsection:
    ``(l) Upper and Lower Limits.--For purposes of subsection 
(a)--
            ``(1) Lower limit.--The lower limit for any taxable 
        year is the sum of the amounts required under section 
        213(d) of the Social Security Act for a quarter of 
        coverage in effect with respect to each calendar 
        quarter ending with or within such taxable year.
            ``(2) Upper limit.--The upper limit for any taxable 
        year is the amount equal to 150 percent of the lower 
        limit for such taxable year.''.
    (b) Amendments to the Social Security Act.--
            (1) In general.--The matter following paragraph 
        (16) of section 211(a) of the Social Security Act is 
        amended--
                    (A) by striking ``$2,400'' each place it 
                appears and inserting ``the upper limit'', and
                    (B) by striking ``$1,600'' each place it 
                appears and inserting ``the lower limit''.
            (2) Definitions.--Section 211 of such Act is 
        amended by adding at the end the following new 
        subsection:
    ``(k) Upper and Lower Limits.--For purposes of subsection 
(a)--
            ``(1) The lower limit for any taxable year is the 
        sum of the amounts required under section 213(d) for a 
        quarter of coverage in effect with respect to each 
        calendar quarter ending with or within such taxable 
        year.
            ``(2) The upper limit for any taxable year is the 
        amount equal to 150 percent of the lower limit for such 
        taxable year.''.
            (3) Conforming amendment.--Section 212 of such Act 
        is amended--
                    (A) in subsection (b), by striking ``For'' 
                and inserting ``Except as provided in 
                subsection (c), for''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) For the purpose of determining average indexed 
monthly earnings, average monthly wage, and quarters of 
coverage in the case of any individual who elects the option 
described in clause (ii) or (iv) in the matter following 
section 211(a)(16) for any taxable year that does not begin 
with or during a particular calendar year and end with or 
during such year, the self-employment income of such individual 
deemed to be derived during such taxable year shall be 
allocated to the two calendar years, portions of which are 
included within such taxable year, in the same proportion to 
the total of such deemed self-employment income as the sum of 
the amounts applicable under section 213(d) for the calendar 
quarters ending with or within each such calendar year bears to 
the lower limit for such taxable year specified in section 
211(k)(1).''.
    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2007.

SEC. 15353. INFORMATION REPORTING FOR COMMODITY CREDIT CORPORATION 
                    TRANSACTIONS.

    (a) In General.--Subpart A of part III of subchapter A of 
chapter 61 (relating to information concerning persons subject 
to special provisions) is amended by inserting after section 
6039I the following new section:

``SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO COMMODITY CREDIT 
                    CORPORATION TRANSACTIONS.

    ``(a) Requirement of Reporting.--The Commodity Credit 
Corporation, through the Secretary of Agriculture, shall make a 
return, according to the forms and regulations prescribed by 
the Secretary of the Treasury, setting forth any market gain 
realized by a taxpayer during the taxable year in relation to 
the repayment of a loan issued by the Commodity Credit 
Corporation, without regard to the manner in which such loan 
was repaid.
    ``(b) Statements to Be Furnished to Persons With Respect to 
Whom Information Is Required.--The Secretary of Agriculture 
shall furnish to each person whose name is required to be set 
forth in a return required under subsection (a) a written 
statement showing the amount of market gain reported in such 
return.''.
    (b) Clerical Amendment.--The table of sections for subpart 
A of part III of subchapter A of chapter 61 is amended by 
inserting after the item relating to section 6039I the 
following new item:

``Sec. 6039J. Information reporting with respect to Commodity Credit 
          Corporation transactions.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to loans repaid on or after January 1, 2007.

                 PART V--PROTECTION OF SOCIAL SECURITY

SEC. 15361. PROTECTION OF SOCIAL SECURITY.

    To ensure that the assets of the trust funds established 
under section 201 of the Social Security Act (42 U.S.C. 401) 
are not reduced as a result of the enactment of this Act, the 
Secretary of the Treasury shall transfer annually from the 
general revenues of the Federal Government to those trust funds 
the following amounts:
            (1) For fiscal year 2009, $5,000,000.
            (2) For fiscal year 2010, $9,000,000.
            (3) For fiscal year 2011, $8,000,000.
            (4) For fiscal year 2012, $7,000,000.
            (5) For fiscal year 2013, $8,000,000.
            (6) For fiscal year 2014, $8,000,000.
            (7) For fiscal year 2015, $8,000,000.
            (8) For fiscal year 2016, $6,000,000.
            (9) For fiscal year 2017, $7,000,000.

                      Subtitle D--Trade Provisions

              PART I--EXTENSION OF CERTAIN TRADE BENEFITS

SEC. 15401. SHORT TITLE.

    This part may be cited as the ``Haitian Hemispheric 
Opportunity through Partnership Encouragement Act of 2008'' or 
the ``HOPE II Act''.

SEC. 15402. BENEFITS FOR APPAREL AND OTHER TEXTILE ARTICLES.

    (a) Value-Added Rule.--Section 213A(b) of the Carribean 
Basin Economic Recovery Act (19 U.S.C. 2703a(b)) is amended as 
follows:
            (1) The subsection heading is amended to read as 
        follows: ``Apparel and Other Textile Articles''.
            (2) Paragraph (1) is amended to read as follows:
            ``(1) Value-added rule for apparel articles.--
                    ``(A) In general.--Apparel articles 
                described in subparagraph (B) of a producer or 
                entity controlling production that are imported 
                directly from Haiti or the Dominican Republic 
                shall enter the United States free of duty 
                during an applicable 1-year period, subject to 
                the limitations set forth in subparagraphs (B) 
                and (C), and subject to subparagraph (D).''.
            (3) Paragraph (2) is amended--
                    (A) in subparagraph (A)--
                            (i) by moving such subparagraph 2 
                        ems to the right;
                            (ii) in clause (i), by striking 
                        ``subparagraph (C)'' and inserting 
                        ``clause (iii)'';
                            (iii) in clause (ii), by striking 
                        ``subparagraph (C)'' and inserting 
                        ``clause (iii)'';
                            (iv) in the matter following clause 
                        (ii), by striking ``subparagraph 
                        (E)(I)'' and inserting ``clause 
                        (v)(I)'';
                            (v) by redesignating clauses (i) 
                        and (ii) as subclauses (I) and (II), 
                        respectively; and
                            (vi) by redesignating subparagraph 
                        (A) as clause (i);
                    (B) in subparagraph (B)--
                            (i) by moving such subparagraph 2 
                        ems to the right;
                            (ii) by striking ``subparagraph 
                        (A)(i)'' each place it appears and 
                        inserting ``clause (i)(I)'';
                            (iii) by redesignating clauses (i) 
                        and (ii) as subclauses (I) and (II), 
                        respectively; and
                            (iv) by redesignating subparagraph 
                        (B) as clause (ii);
                    (C) in subparagraph (C)--
                            (i) by moving such subparagraph 2 
                        ems to the right;
                            (ii) in the matter preceding clause 
                        (i), by striking ``subparagraph (A)'' 
                        and inserting ``clause (i)'';
                            (iii) in clause (ii), by striking 
                        ``that enters into force'' and all that 
                        follows through ``et seq.)'' and 
                        inserting ``that enters into force 
                        thereafter'';
                            (iv) by redesignating clauses (i) 
                        through (v) as subclauses (I) through 
                        (V), respectively; and
                            (v) by redesignating subparagraph 
                        (C) as clause (iii);
                    (D) in subparagraph (D)--
                            (i) by moving such subparagraph 2 
                        ems to the right;
                            (ii) in clause (i)--
                                    (I) in the matter preceding 
                                subclause (I), by striking 
                                ``subparagraph (A)'' and 
                                inserting ``clause (i)'';
                                    (II) in subclause (I), by 
                                striking ``clause (i) of 
                                subparagraph (A)'' and 
                                inserting ``subclause (I) of 
                                clause (i)'';
                                    (III) in subclause (II), by 
                                striking ``clause (ii) of 
                                subparagraph (A)'' and 
                                inserting ``subclause (II) of 
                                clause (i)'';
                                    (IV) by redesignating 
                                subclauses (I) and (II) as 
                                items (aa) and (bb), 
                                respectively; and
                                    (V) by redesignating clause 
                                (i) as subclause (I);
                            (iii) in clause (ii)--
                                    (I) in the matter preceding 
                                subclause (I), by striking 
                                ``subparagraph (A)'' and 
                                inserting ``clause (i)'';
                                    (II) in subclause (I), by 
                                striking ``clause (i) of 
                                subparagraph (A)'' and 
                                inserting ``subclause (I) of 
                                clause (i)'';
                                    (III) in subclause (II), by 
                                striking ``clause (ii) of 
                                subparagraph (A)'' and 
                                inserting ``subclause (II) of 
                                clause (i)'';
                                    (IV) by redesignating 
                                subclauses (I) and (II) as 
                                items (aa) and (bb), 
                                respectively; and
                                    (V) by redesignating clause 
                                (ii) as subclause (II);
                            (iv) in clause (iii)--
                                    (I) by striking ``clause 
                                (i)(I) or (ii)(I)'' each place 
                                it appears and inserting 
                                ``subclause (I)(aa) or 
                                (II)(aa)'';
                                    (II) by redesignating 
                                subclauses (I) and (II) as 
                                items (aa) and (bb), 
                                respectively; and
                                    (III) by redesignating 
                                clause (iii) as subclause 
                                (III);
                            (v) by amending clause (iv) to read 
                        as follows:
                                    ``(IV) Inclusion in 
                                calculation of other articles 
                                receiving preferential 
                                treatment.--Entries of apparel 
                                articles that receive 
                                preferential treatment under 
                                any provision of law other than 
                                this subparagraph or are 
                                subject to the `General' column 
                                1 rate of duty under the HTS 
                                are not included in the annual 
                                aggregation under subclause (I) 
                                or (II) unless the producer or 
                                entity controlling production 
                                elects, at the time the annual 
                                aggregation calculation is 
                                made, to include such entries 
                                in such aggregation.''; and
                            (vi) by redesignating subparagraph 
                        (D) as clause (iv);
                    (E) in subparagraph (E)--
                            (i) by moving such subparagraph 2 
                        ems to the right;
                            (ii) in clause (i)--
                                    (I) by redesignating 
                                subclauses (I) through (III) as 
                                items (aa) through (cc), 
                                respectively; and
                                    (II) by redesignating 
                                clause (i) as subclause (I);
                            (iii) in clause (ii)--
                                    (I) by striking 
                                ``subparagraph (C)'' and 
                                inserting ``clause (iii)''; and
                                    (II) by redesignating 
                                clause (ii) as subclause (II); 
                                and
                            (iv) by redesignating subparagraph 
                        (E) as clause (v);
                    (F) in subparagraph (F)--
                            (i) by moving such subparagraph 2 
                        ems to the right;
                            (ii) in clause (i)--
                                    (I) by striking ``The 
                                Bureau of Customs and Border 
                                Protection'' and inserting 
                                ``U.S. Customs and Border 
                                Protection'';
                                    (II) by striking 
                                ``subparagraphs (A) and (D)'' 
                                and inserting ``clauses (i) and 
                                (iv)''; and
                                    (III) by redesignating 
                                clause (i) as subclause (I);
                            (iii) in clause (ii)--
                                    (I) in the matter preceding 
                                subclause (I)--
                                            (aa) by striking 
                                        ``the Bureau of Customs 
                                        and Border Protection'' 
                                        and inserting ``U.S. 
                                        Customs and Border 
                                        Protection'';
                                            (bb) by striking 
                                        ``subparagraph (A)'' 
                                        each place it appears 
                                        and inserting ``clause 
                                        (i)''; and
                                            (cc) by striking 
                                        ``subparagraph (D)'' 
                                        and inserting ``clause 
                                        (iv)'';
                                    (II) in subclause (I), by 
                                striking ``clause (i) of 
                                subparagraph (A)'' and 
                                inserting ``subclause (I) of 
                                clause (i)'';
                                    (III) in subclause (II), by 
                                striking ``clause (ii) of 
                                subparagraph (A)'' and 
                                inserting ``subclause (II) of 
                                clause (i)'';
                                    (IV) in the matter 
                                following subclause (II), by 
                                striking ``subparagraph 
                                (E)(i)'' and inserting ``clause 
                                (v)(I)'';
                                    (V) by redesignating 
                                subclauses (I) and (II) as 
                                items (aa) and (bb), 
                                respectively; and
                                    (VI) by redesignating 
                                clause (ii) as subclause (II);
                            (iv) in clause (iii)--
                                    (I) in subclause (I)--
                                            (aa) by striking 
                                        ``paragraph (1)'' and 
                                        inserting 
                                        ``subparagraph (A)''; 
                                        and
                                            (bb) by striking 
                                        ``subparagraph (A) or 
                                        (D)'' and inserting 
                                        ``clause (i) or (iv)'';
                                    (II) in subclause (II), by 
                                striking ``clause (ii) of this 
                                subparagraph'' and inserting 
                                ``subclause (II) of this 
                                clause'';
                                    (III) in the matter 
                                following subclause (II)--
                                            (aa) by striking 
                                        ``the Bureau of Customs 
                                        and Border Protection'' 
                                        each place it appears 
                                        and inserting ``U.S. 
                                        Customs and Border 
                                        Protection''; and
                                            (bb) by striking 
                                        ``subclause (II)'' and 
                                        inserting ``item 
                                        (bb)''; and
                                    (IV) in item (bb)--
                                            (aa) by striking 
                                        ``paragraph (1)'' and 
                                        inserting 
                                        ``subparagraph (A)''; 
                                        and
                                            (bb) by striking 
                                        ``subparagraph (A) or 
                                        (D)'' and inserting 
                                        ``clause (i) or (iv)''; 
                                        and
                                    (V) in the matter following 
                                item (bb), by striking 
                                ``paragraph (1)'' and inserting 
                                ``subparagraph (A)'';
                                    (VI) by redesignating items 
                                (aa) and (bb) as subitems (AA) 
                                and (BB), respectively;
                                    (VII) by redesignating 
                                subclauses (I) and (II) as 
                                items (aa) and (bb), 
                                respectively; and
                                    (VIII) by redesignating 
                                clause (iii) as subclause 
                                (III); and
                            (v) by redesignating subparagraph 
                        (F) as clause (vi);
                    (G) in subparagraph (G)--
                            (i) by moving such subparagraph 2 
                        ems to the right;
                            (ii) in clause (i)--
                                    (I) in the matter preceding 
                                subclause (I), by striking 
                                ``subparagraph (A) or (D)'' and 
                                inserting ``clause (i) or 
                                (iv)'';
                                    (II) in subclause (II)--
                                            (aa) in item (dd), 
                                        by striking ``under the 
                                        Bipartisan Trade 
                                        Promotion Authority Act 
                                        of 2002'' and inserting 
                                        ``with respect to the 
                                        United States''; and
                                            (bb) by 
                                        redesignating items 
                                        (aa) through (dd) as 
                                        subitems (AA) through 
                                        (DD), respectively;
                                    (III) by redesignating 
                                subclauses (I) and (II) as 
                                items (aa) and (bb), 
                                respectively; and
                                    (IV) by redesignating 
                                clause (i) as subclause (I);
                            (iii) in clause (ii)--
                                    (I) in subclause (I), by 
                                striking ``clause (i)(I)'' and 
                                inserting ``subclause 
                                (I)(aa)'';
                                    (II) in subclause (II), by 
                                striking ``clause (i)(II)'' and 
                                inserting ``subclause 
                                (I)(bb)'';
                                    (III) by redesignating 
                                subclauses (I) and (II) as 
                                items (aa) and (bb), 
                                respectively; and
                                    (IV) by redesignating 
                                clause (ii) as subclause (II); 
                                and
                            (iv) by redesignating subparagraph 
                        (G) as clause (vii); and
                    (H) by striking ``(2) Apparel articles 
                described.--'' and inserting the following:
                    ``(B) Apparel articles described.--''.
            (4) Paragraph (3) is amended--
                    (A) by redesignating such paragraph as 
                subparagraph (C) and moving it 2 ems to the 
                right;
                    (B) by striking ``paragraph (1)'' each 
                place it appears and inserting ``subparagraph 
                (A)''; and
                    (C) in the table--
                            (i) by striking ``1.5 percent'' and 
                        inserting ``1.25 percent'';
                            (ii) by striking ``1.75 percent'' 
                        and inserting ``1.25 percent''; and
                            (iii) by striking ``2 percent'' and 
                        inserting ``1.25 percent''.
            (5) The following is added after subparagraph (C), 
        as redesignated by paragraph (4)(A) of this subsection:
                    ``(D) Other preferential treatment not 
                affected by quantitative limitations.--Any 
                apparel article that qualifies for preferential 
                treatment under paragraph (2), (3), (4), or (5) 
                or any other provision of this title shall not 
                be subject to, or included in the calculation 
                of, the quantitative limitations under 
                subparagraph (C).''.
    (b) Special Rule for Woven Articles and Certain Knit 
Articles.--Section 213A(b) of the Carribean Basin Economic 
Recovery Act is amended by striking paragraph (4) and inserting 
the following:
            ``(2) Special rule for woven articles and certain 
        knit articles.--
                    ``(A) Special rule for articles of chapter 
                62 of the hts.--
                            ``(i) General rule.--Any apparel 
                        article classifiable under chapter 62 
                        of the HTS that is wholly assembled, or 
                        knit-to-shape, in Haiti from any 
                        combination of fabrics, fabric 
                        components, components knit-to-shape, 
                        or yarns and is imported directly from 
                        Haiti or the Dominican Republic shall 
                        enter the United States free of duty, 
                        subject to clauses (ii) and (iii), 
                        without regard to the source of the 
                        fabric, fabric components, components 
                        knit-to-shape, or yarns from which the 
                        article is made.
                            ``(ii) Limitation.--The 
                        preferential treatment described in 
                        clause (i) shall be extended, in the 1-
                        year period beginning October 1, 2008, 
                        and in each of the 9 succeeding 1-year 
                        periods, to not more than 70,000,000 
                        square meter equivalents of apparel 
                        articles described in such clause.
                            ``(iii) Other preferential 
                        treatment not affected by quantitative 
                        limitation.--Any apparel article that 
                        qualifies for preferential treatment 
                        under paragraph (1), (3), (4), or (5) 
                        or subparagraph (B) of this paragraph 
                        or any other provision of this title 
                        shall not be subject to, or included in 
                        the calculation of, the quantitative 
                        limitation under clause (ii).
                    ``(B) Special rule for certain articles of 
                chapter 61 of the hts.--
                            ``(i) General rule.--Any apparel 
                        article classifiable under chapter 61 
                        of the HTS that is wholly assembled, or 
                        knit-to-shape, in Haiti from any 
                        combination of fabrics, fabric 
                        components, components knit-to-shape, 
                        or yarns and is imported directly from 
                        Haiti or the Dominican Republic shall 
                        enter the United States free of duty, 
                        subject to clauses (ii), (iii), and 
                        (iv), without regard to the source of 
                        the fabric, fabric components, 
                        components knit-to-shape, or yarns from 
                        which the article is made.
                            ``(ii) Exclusions.--The 
                        preferential treatment described in 
                        clause (i) shall not apply to the 
                        following:
                                    ``(I) The following apparel 
                                articles of cotton, for men or 
                                boys, that are classifiable 
                                under subheading 6109.10.00 of 
                                the HTS:
                                            ``(aa) All white T-
                                        shirts, with short 
                                        hemmed sleeves and 
                                        hemmed bottom, with 
                                        crew or round neckline 
                                        or with V-neck and with 
                                        a mitered seam at the 
                                        center of the V, and 
                                        without pockets, trim, 
                                        or embroidery.
                                            ``(bb) All white 
                                        singlets, without 
                                        pockets, trim, or 
                                        embroidery.
                                            ``(cc) Other T-
                                        shirts, but not 
                                        including thermal 
                                        undershirts.
                                    ``(II) T-shirts for men or 
                                boys that are classifiable 
                                under subheading 6109.90.10.
                                    ``(III) The following 
                                apparel articles of cotton, for 
                                men or boys, that are 
                                classifiable under subheading 
                                6110.20.20 of the HTS:
                                            ``(aa) Sweatshirts.
                                            ``(bb) Pullovers, 
                                        other than sweaters, 
                                        vests, or garments 
                                        imported as part of 
                                        playsuits.
                                    ``(IV) Sweatshirts for men 
                                or boys, of man-made fibers and 
                                containing less than 65 percent 
                                by weight of man-made fibers, 
                                that are classifiable under 
                                subheading 6110.30.30 of the 
                                HTS.
                            ``(iii) Limitation.--The 
                        preferential treatment described in 
                        clause (i) shall be extended, in the 1-
                        year period beginning October 1, 2008, 
                        and in each of the 9 succeeding 1-year 
                        periods, to not more than 70,000,000 
                        square meter equivalents of apparel 
                        articles described in such clause.
                            ``(iv) Other preferential treatment 
                        not affected by quantitative 
                        limitation.--Any apparel article that 
                        qualifies for preferential treatment 
                        under paragraph (1), (3), (4), or (5) 
                        or subparagraph (A) of this paragraph 
                        or any other provision of this title 
                        shall not be subject to, or included in 
                        the calculation of, the quantitative 
                        limitation under clause (iii).''.
    (c) Single Transformation Rules Not Subject to Quantitative 
Limitations.--Section 213A(b) of the Caribbean Basin Economic 
Recovery Act is amended by striking paragraph (5) and inserting 
the following:
            ``(3) Apparel and other articles subject to certain 
        assembly rules.--
                    ``(A) Brassieres.--Any apparel article 
                classifiable under subheading 6212.10 of the 
                HTS that is wholly assembled, or knit-to-shape, 
                in Haiti from any combination of fabrics, 
                fabric components, components knit-to-shape, or 
                yarns and is imported directly from Haiti or 
                the Dominican Republic shall enter the United 
                States free of duty, without regard to the 
                source of the fabric, fabric components, 
                components knit-to-shape, or yarns from which 
                the article is made.
                    ``(B) Other apparel articles.--Any of the 
                following apparel articles that is wholly 
                assembled, or knit-to-shape, in Haiti from any 
                combination of fabrics, fabric components, 
                components knit-to-shape, or yarns and is 
                imported directly from Haiti or the Dominican 
                Republic shall enter the United States free of 
                duty, without regard to the source of the 
                fabric, fabric components, components knit-to-
                shape, or yarns from which the article is made:
                            ``(i) Any apparel article that is 
                        of a type listed in chapter rule 3, 4, 
                        or 5 for chapter 61 of the HTS (as such 
                        chapter rules are contained in section 
                        A of the Annex to Proclamation 8213 of 
                        the President of December 20, 2007) as 
                        being excluded from the scope of such 
                        chapter rule, when such chapter rule is 
                        applied to determine whether an apparel 
                        article is an originating good for 
                        purposes of general note 29(n) to the 
                        HTS, except that, for purposes of this 
                        clause, reference in such chapter rules 
                        to `6104.12.00' shall be deemed to be a 
                        reference to `6104.19.60'.
                            ``(ii)(I) Subject to subclause 
                        (II), any apparel article that is of a 
                        type listed in chapter rule 3(a), 4(a), 
                        or 5(a) for chapter 62 of the HTS, as 
                        such chapter rules are contained in 
                        paragraph 9 of section A of the Annex 
                        to Proclamation 8213 of the President 
                        of December 20, 2007.
                            ``(II) Subclause (I) shall not 
                        include any apparel article to which 
                        subparagraph (A) of this paragraph 
                        applies.
                    ``(C) Luggage and similar items.--Any 
                article classifiable under subheading 4202.12, 
                4202.22, 4202.32, or 4202.92 of the HTS that is 
                wholly assembled in Haiti and is imported 
                directly from Haiti or the Dominican Republic 
                shall enter the United States free of duty, 
                without regard to the source of the fabric, 
                components, or materials from which the article 
                is made.
                    ``(D) Headgear.--Any article classifiable 
                under heading 6501, 6502, or 6504 of the HTS, 
                or under subheading 6505.90 of the HTS, that is 
                wholly assembled, knit-to-shape, or formed in 
                Haiti from any combination of fabrics, fabric 
                components, components knit-to-shape, or yarns 
                and is imported directly from Haiti or the 
                Dominican Republic shall enter the United 
                States free of duty, without regard to the 
                source of the fabric, fabric components, 
                components knit-to-shape, or yarns from which 
                the article is made.
                    ``(E) Certain sleepwear.--Any of the 
                following apparel articles that is wholly 
                assembled, or knit-to-shape, in Haiti from any 
                combination of fabrics, fabric components, 
                components knit-to-shape, or yarns and is 
                imported directly from Haiti or the Dominican 
                Republic shall enter the United States free of 
                duty, without regard to the source of the 
                fabric, fabric components, components knit-to-
                shape, or yarns from which the article is made:
                            ``(i) Pajama bottoms and other 
                        sleepwear for women and girls, of 
                        cotton, that are classifiable under 
                        subheading 6208.91.30, or of man-made 
                        fibers, that are classifiable under 
                        subheading 6208.92.00.
                            ``(ii) Pajama bottoms and other 
                        sleepwear for girls, of other textile 
                        materials, that are classifiable under 
                        subheading 6208.99.20.''.
    (d) Earned Import Allowance Rules.--Section 231A(b) of the 
Caribbean Basin Economic Recovery Act is amended by adding at 
the end the following new paragraph:
            ``(4) Earned import allowance rule.--
                    ``(A) In general.--Apparel articles wholly 
                assembled, or knit-to-shape, in Haiti from any 
                combination of fabrics, fabric components, 
                components knit-to-shape, or yarns and imported 
                directly from Haiti or the Dominican Republic 
                shall enter the United States free of duty, 
                without regard to the source of the fabric, 
                fabric components, components knit-to-shape, or 
                yarns from which the articles are made, if such 
                apparel articles are accompanied by an earned 
                import allowance certificate that reflects the 
                amount of credits equal to the total square 
                meter equivalents of such apparel articles, in 
                accordance with the program established under 
                subparagraph (B). For purposes of determining 
                the quantity of square meter equivalents under 
                this subparagraph, the conversion factors 
                listed in `Correlation: U.S. Textile and 
                Apparel Industry Category System with the 
                Harmonized Tariff Schedule of the United States 
                of America, 2008', or its successor 
                publications, of the United States Department 
                of Commerce, shall apply.
                    ``(B) Earned import allowance program.--
                            ``(i) Establishment.--The Secretary 
                        of Commerce shall establish a program 
                        to provide earned import allowance 
                        certificates to any producer or entity 
                        controlling production for purposes of 
                        subparagraph (A), based on the elements 
                        described in clause (ii).
                            ``(ii) Elements.--The elements 
                        referred to in clause (i) are the 
                        following:
                                    ``(I) One credit shall be 
                                issued to a producer or an 
                                entity controlling production 
                                for every three square meter 
                                equivalents of qualifying woven 
                                fabric or qualifying knit 
                                fabric that the producer or 
                                entity controlling production 
                                can demonstrate that it 
                                purchased for the manufacture 
                                in Haiti of articles like or 
                                similar to any article eligible 
                                for preferential treatment 
                                under subparagraph (A). The 
                                Secretary of Commerce shall, if 
                                requested by a producer or 
                                entity controlling production, 
                                create and maintain an account 
                                for such producer or entity 
                                controlling production, into 
                                which such credits shall be 
                                deposited.
                                    ``(II) Such producer or 
                                entity controlling production 
                                may redeem credits issued under 
                                subclause (I) for earned import 
                                allowance certificates 
                                reflecting such number of 
                                earned credits as the producer 
                                or entity may request and has 
                                available.
                                    ``(III) The Secretary of 
                                Commerce may require any 
                                textile mill or other entity 
                                located in the United States 
                                that exports to Haiti 
                                qualifying woven fabric or 
                                qualifying knit fabric to 
                                submit, upon such export or 
                                upon request, documentation, 
                                such as a Shipper's Export 
                                Declaration, to the Secretary 
                                of Commerce--
                                            ``(aa) verifying 
                                        that the qualifying 
                                        woven fabric or 
                                        qualifying knit fabric 
                                        was exported to a 
                                        producer in Haiti or to 
                                        an entity controlling 
                                        production; and
                                            ``(bb) identifying 
                                        such producer or entity 
                                        controlling production, 
                                        and the quantity and 
                                        description of 
                                        qualifying woven fabric 
                                        or qualifying knit 
                                        fabric exported to such 
                                        producer or entity 
                                        controlling production.
                                    ``(IV) The Secretary of 
                                Commerce may require that a 
                                producer or entity controlling 
                                production submit documentation 
                                to verify purchases of 
                                qualifying woven fabric or 
                                qualifying knit fabric.
                                    ``(V) The Secretary of 
                                Commerce may make available to 
                                each person or entity 
                                identified in documentation 
                                submitted under subclause (III) 
                                or (IV) information contained 
                                in such documentation that 
                                relates to the purchase of 
                                qualifying woven fabric or 
                                qualifying knit fabric 
                                involving such person or 
                                entity.
                                    ``(VI) The program under 
                                this subparagraph shall be 
                                established so as to allow, to 
                                the extent feasible, the 
                                submission, storage, retrieval, 
                                and disclosure of information 
                                in electronic format, including 
                                information with respect to the 
                                earned import allowance 
                                certificates required under 
                                subparagraph (A)(i).
                                    ``(VII) The Secretary of 
                                Commerce may reconcile 
                                discrepancies in information 
                                provided under subclause (III) 
                                or (IV) and verify the accuracy 
                                of such information.
                                    ``(VIII) The Secretary of 
                                Commerce shall establish 
                                procedures to carry out the 
                                program under this subparagraph 
                                and may establish additional 
                                requirements to carry out this 
                                subparagraph. Such additional 
                                requirements may include--
                                            ``(aa) submissions 
                                        by textile mills or 
                                        other entities in the 
                                        United States 
                                        documenting exports of 
                                        yarns wholly formed in 
                                        the United States to 
                                        countries described in 
                                        paragraph (1)(B)(iii) 
                                        for the manufacture of 
                                        qualifying knit fabric; 
                                        and
                                            ``(bb) procedures 
                                        imposed on producers or 
                                        entities controlling 
                                        production to allow the 
                                        Secretary of Commerce 
                                        to obtain and verify 
                                        information relating to 
                                        the production of 
                                        qualifying knit fabric.
                            ``(iii) Qualifying woven fabric 
                        defined.--For purposes of this 
                        subparagraph, the term `qualifying 
                        woven fabric' means fabric wholly 
                        formed in the United States from yarns 
                        wholly formed in the United States, 
                        except that--
                                    ``(I) fabric otherwise 
                                eligible as qualifying woven 
                                fabric shall not be ineligible 
                                as qualifying woven fabric 
                                because the fabric contains 
                                nylon filament yarn to which 
                                section 213(b)(2)(A)(vii)(IV) 
                                applies;
                                    ``(II) fabric that would 
                                otherwise be ineligible as 
                                qualifying woven fabric because 
                                the fabric contains yarns not 
                                wholly formed in the United 
                                States shall not be ineligible 
                                as qualifying woven fabric if 
                                the total weight of all such 
                                yarns is not more than 10 
                                percent of the total weight of 
                                the fabric; and
                                    ``(III) fabric otherwise 
                                eligible as qualifying woven 
                                fabric shall not be ineligible 
                                as qualifying fabric because 
                                the fabric contains yarns 
                                covered by clause (i) or (ii) 
                                of paragraph (5)(A).
                            ``(iv) Qualifying knit fabric 
                        defined.--For purposes of this 
                        subparagraph, the term `qualifying knit 
                        fabric' means fabric or knit-to-shape 
                        components wholly formed or knit-to-
                        shape in any country or any combination 
                        of countries described in paragraph 
                        (1)(B)(iii), from yarns wholly formed 
                        in the United States, except that--
                                    ``(I) fabric or knit-to-
                                shape components otherwise 
                                eligible as qualifying knit 
                                fabric shall not be ineligible 
                                as qualifying knit fabric 
                                because the fabric or knit-to-
                                shape components contain nylon 
                                filament yarn to which section 
                                213(b)(2)(A)(vii)(IV) applies;
                                    ``(II) fabric or knit-to-
                                shape components that would 
                                otherwise be ineligible as 
                                qualifying knit fabric because 
                                the fabric or knit-to-shape 
                                components contain yarns not 
                                wholly formed in the United 
                                States shall not be ineligible 
                                as qualifying knit fabric if 
                                the total weight of all such 
                                yarns is not more than 10 
                                percent of the total weight of 
                                the fabric or knit-to-shape 
                                components; and
                                    ``(III) fabric or knit-to-
                                shape components otherwise 
                                eligible as qualifying knit 
                                fabric shall not be ineligible 
                                as qualifying knit fabric 
                                because the fabric or knit-to-
                                shape components contain yarns 
                                covered by clause (i) or (ii) 
                                of paragraph (5)(A).
                    ``(C) Review by united states government 
                accountability office.--The United States 
                Government Accountability Office shall review 
                the program established under subparagraph (B) 
                annually for the purpose of evaluating the 
                effectiveness of, and making recommendations 
                for improvements in, the program.
                    ``(D) Enforcement provisions.--
                            ``(i) Fraudulent claims of 
                        preference.--Any person who makes a 
                        false claim for preference under the 
                        program established under subparagraph 
                        (B) shall be subject to any applicable 
                        civil or criminal penalty that may be 
                        imposed under the customs laws of the 
                        United States or under title 18, United 
                        States Code.
                            ``(ii) Penalties for other 
                        fraudulent information.--The Secretary 
                        of Commerce may establish and impose 
                        penalties for the submission to the 
                        Secretary of Commerce of fraudulent 
                        information under the program 
                        established under subparagraph (B), 
                        other than a claim described in clause 
                        (i).''.
    (e) Short Supply Rules.--Section 213A(b) of the Caribbean 
Basin Economic Recovery Act is amended by adding at the end the 
following:
            ``(5) Short supply provision.--
                    ``(A) In general.--Any apparel article that 
                is wholly assembled, or knit-to-shape, in Haiti 
                from any combination of fabrics, fabric 
                components, components knit-to-shape, or yarns 
                and is imported directly from Haiti or the 
                Dominican Republic shall enter the United 
                States free of duty, without regard to the 
                source of the fabrics, fabric components, 
                components knit-to-shape, or yarns from which 
                the article is made, if the fabrics, fabric 
                components, components knit-to-shape, or yarns 
                comprising the component that determines the 
                tariff classification of the article are of any 
                of the following:
                            ``(i) Fabrics or yarns, to the 
                        extent that apparel articles of such 
                        fabrics or yarns would be eligible for 
                        preferential treatment, without regard 
                        to the source of the fabrics or yarns, 
                        under Annex 401 of the NAFTA.
                            ``(ii) Fabrics or yarns, to the 
                        extent that such fabrics or yarns are 
                        designated as not being available in 
                        commercial quantities for purposes of--
                                    ``(I) section 
                                213(b)(2)(A)(v) of this Act;
                                    ``(II) section 112(b)(5) of 
                                the African Growth and 
                                Opportunity Act;
                                    ``(III) clause (i)(III) or 
                                (ii) of section 204(b)(3)(B) of 
                                the Andean Trade Preference 
                                Act; or
                                    ``(IV) any other provision, 
                                relating to determining whether 
                                a textile or apparel article is 
                                an originating good eligible 
                                for preferential treatment, of 
                                a law that implements a free 
                                trade agreement entered into by 
                                the United States that is in 
                                effect at the time the claim 
                                for preferential treatment is 
                                made.
                    ``(B) Removal of designation of fabrics or 
                yarns not available in commercial quantities.--
                If the President determines that--
                            ``(i) any fabric or yarn described 
                        in clause (i) of subparagraph (A) was 
                        determined to be eligible for 
                        preferential treatment, or
                            ``(ii) any fabric or yarn described 
                        in clause (ii) of subparagraph (A) was 
                        designated as not being available in 
                        commercial quantities,
                on the basis of fraud, the President is 
                authorized to remove the eligibility or 
                designation (as the case may be) of that fabric 
                or yarn with respect to articles entered after 
                such removal.''.
    (f) Miscellaneous Provisions.--
            (1) Relationship to other preferential programs.--
        Section 213A(b) of the Caribbean Basin Economic 
        Recovery Act is amended by adding at the end the 
        following:
            ``(6) Other preferential treatment not affected.--
        The duty-free treatment provided under this subsection 
        is in addition to any other preferential treatment 
        under this title.''.
            (2) Definitions.--Section 213A(a) of the Caribbean 
        Basin Economic Recovery Act (19 U.S.C. 2703a(a)) is 
        amended by adding at the end the following:
            ``(3) Imported directly from haiti or the dominican 
        republic.--Articles are `imported directly from Haiti 
        or the Dominican Republic' if--
                    ``(A) the articles are shipped directly 
                from Haiti or the Dominican Republic into the 
                United States without passing through the 
                territory of any intermediate country; or
                    ``(B) the articles are shipped from Haiti 
                or the Dominican Republic into the United 
                States through the territory of an intermediate 
                country, and--
                            ``(i) the articles in the shipment 
                        do not enter into the commerce of any 
                        intermediate country, and the invoices, 
                        bills of lading, and other shipping 
                        documents specify the United States as 
                        the final destination; or
                            ``(ii) the invoices and other 
                        documents do not specify the United 
                        States as the final destination, but 
                        the articles in the shipment--
                                    ``(I) remain under the 
                                control of the customs 
                                authority in the intermediate 
                                country;
                                    ``(II) do not enter into 
                                the commerce of the 
                                intermediate country except for 
                                the purpose of a sale other 
                                than at retail; and
                                    ``(III) have not been 
                                subjected to operations in the 
                                intermediate country other than 
                                loading, unloading, or other 
                                activities necessary to 
                                preserve the articles in good 
                                condition.
            ``(4) Knit-to-shape.--A good is `knit-to-shape' if 
        50 percent or more of the exterior surface area of the 
        good is formed by major parts that have been knitted or 
        crocheted directly to the shape used in the good, with 
        no consideration being given to patch pockets, 
        appliques, or the like. Minor cutting, trimming, or 
        sewing of those major parts shall not affect the 
        determination of whether a good is `knit-to-shape'.
            ``(5) Wholly assembled.--A good is `wholly 
        assembled' in Haiti if all components, of which there 
        must be at least two, pre-existed in essentially the 
        same condition as found in the finished good and were 
        combined to form the finished good in Haiti. Minor 
        attachments and minor embellishments (for example, 
        appliques, beads, spangles, embroidery, and buttons) 
        not appreciably affecting the identity of the good, and 
        minor subassemblies (for example, collars, cuffs, 
        plackets, and pockets), shall not affect the 
        determination of whether a good is `wholly assembled' 
        in Haiti.''.
    (g) Termination.--Section 213A of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703a) is amended by adding at 
the end the following new subsection:
    ``(g) Termination.--Except as provided in subsection 
(b)(1), the duty-free treatment provided under this section 
shall remain in effect until September 30, 2018.''.
    (h) Conforming Amendments.--Subsection (e)(1) of section 
213A of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
2703a(e)(1)) is amended by striking ``the Bureau of Customs and 
Border Protection'' each place it appears and inserting ``U.S. 
Customs and Border Protection''.

SEC. 15403. LABOR OMBUDSMAN AND TECHNICAL ASSISTANCE IMPROVEMENT AND 
                    COMPLIANCE NEEDS ASSESSMENT AND REMEDIATION 
                    PROGRAM.

    Section 213A of the Caribbean Basin Economic Recovery Act 
(19 U.S.C. 2703a), as amended by section 15402 of this Act, is 
amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraph (5) as 
                paragraph (8):
                    (B) by redesignating paragraphs (2) through 
                (4) as paragraphs (4) through (6), 
                respectively;
                    (C) by inserting after paragraph (1) the 
                following new paragraphs:
            ``(2) Appropriate congressional committees.--The 
        term ``appropriate congressional committees'' means the 
        Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives.
            ``(3) Core labor standards.--The term ``core labor 
        standards'' means--
                    ``(A) freedom of association;
                    ``(B) the effective recognition of the 
                right to bargain collectively;
                    ``(C) the elimination of all forms of 
                compulsory or forced labor;
                    ``(D) the effective abolition of child 
                labor and a prohibition on the worst forms of 
                child labor; and
                    ``(E) the elimination of discrimination in 
                respect of employment and occupation.''; and
                    (D) by inserting after paragraph (6) (as 
                redesignated) the following new paragraph:
            ``(7) TAICNAR program.--The term `TAICNAR Program' 
        means the Technical Assistance Improvement and 
        Compliance Needs Assessment and Remediation Program 
        established pursuant to subsection (e).'';
            (2) by redesignating subsections (e), (f), and (g) 
        as subsections (f), (g), and (h), respectively; and
            (3) by inserting after subsection (d) the following 
        new subsection:
    ``(e) Technical Assistance Improvement and Compliance Needs 
Assessment and Remediation Program.--
            ``(1) Continued eligibility for preferences.--
                    ``(A) Presidential certification of 
                compliance by haiti with requirements.--Upon 
                the expiration of the 16-month period beginning 
                on the date of the enactment of the Haitian 
                Hemispheric Opportunity through Partnership 
                Encouragement Act of 2008, Haiti shall continue 
                to be eligible for the preferential treatment 
                provided under subsection (b) only if the 
                President determines and certifies to the 
                Congress that--
                            ``(i) Haiti has implemented the 
                        requirements set forth in paragraphs 
                        (2) and (3); and
                            ``(ii) Haiti has agreed to require 
                        producers of articles for which duty-
                        free treatment may be requested under 
                        subsection (b) to participate in the 
                        TAICNAR Program described in paragraph 
                        (3) and has developed a system to 
                        ensure participation in such program by 
                        such producers, including by developing 
                        and maintaining the registry described 
                        in paragraph (2)(B)(i).
                    ``(B) Extension.--The President may extend 
                the period for compliance by Haiti under 
                subparagraph (A) if the President--
                            ``(i) determines that Haiti has 
                        made a good faith effort toward such 
                        compliance and has agreed to take 
                        additional steps to come into full 
                        compliance that are satisfactory to the 
                        President; and
                            ``(ii) provides to the appropriate 
                        congressional committees, not later 
                        than 6 months after the last day of the 
                        16-month period specified in 
                        subparagraph (A), and every 6 months 
                        thereafter, a report identifying the 
                        steps that Haiti has agreed to take to 
                        come into full compliance and the 
                        progress made over the preceding 6-
                        month period in implementing such 
                        steps.
                    ``(C) Continuing compliance.--
                            ``(i) Termination of preferential 
                        treatment.--If, after making a 
                        certification under subparagraph (A), 
                        the President determines that Haiti is 
                        no longer meeting the requirements set 
                        forth in subparagraph (A), the 
                        President shall terminate the 
                        preferential treatment provided under 
                        subsection (b), unless the President 
                        determines, after consulting with the 
                        appropriate congressional committees, 
                        that meeting such requirements is not 
                        practicable because of extraordinary 
                        circumstances existing in Haiti when 
                        the determination is made.
                            ``(ii) Subsequent compliance.--If 
                        the President, after terminating 
                        preferential treatment under clause 
                        (i), determines that Haiti is meeting 
                        the requirements set forth in 
                        subparagraph (A), the President shall 
                        reinstate the application of 
                        preferential treatment under subsection 
                        (b).
            ``(2) Labor ombudsman.--
                    ``(A) In general.--The requirement under 
                this paragraph is that Haiti has established an 
                independent Labor Ombudsman's Office within the 
                national government that--
                            ``(i) reports directly to the 
                        President of Haiti;
                            ``(ii) is headed by a Labor 
                        Ombudsman chosen by the President of 
                        Haiti, in consultation with Haitian 
                        labor unions and industry associations; 
                        and
                            ``(iii) is vested with the 
                        authority to perform the functions 
                        described in subparagraph (B).
                    ``(B) Functions.--The functions of the 
                Labor Ombudsman's Office shall include--
                            ``(i) developing and maintaining a 
                        registry of producers of articles for 
                        which duty-free treatment may be 
                        requested under subsection (b), and 
                        developing, in consultation and 
                        coordination with any other appropriate 
                        officials of the Government of Haiti, a 
                        system to ensure participation by such 
                        producers in the TAICNAR Program 
                        described in paragraph (3);
                            ``(ii) overseeing the 
                        implementation of the TAICNAR Program 
                        described in paragraph (3);
                            ``(iii) receiving and investigating 
                        comments from any interested party 
                        regarding the conditions described in 
                        paragraph (3)(B) in facilities of 
                        producers listed in the registry 
                        described in clause (i) and, where 
                        appropriate, referring such comments or 
                        the result of such investigations to 
                        the appropriate Haitian authorities, or 
                        to the entity operating the TAICNAR 
                        Program described in paragraph (3);
                            ``(iv) assisting, in consultation 
                        and coordination with any other 
                        appropriate Haitian authorities, 
                        producers listed in the registry 
                        described in clause (i) in meeting the 
                        conditions set forth in paragraph 
                        (3)(B); and
                            ``(v) coordinating, with the 
                        assistance of the entity operating the 
                        TAICNAR Program described in paragraph 
                        (3), a tripartite committee comprised 
                        of appropriate representatives of 
                        government agencies, employers, and 
                        workers, as well as other relevant 
                        interested parties, for the purposes of 
                        evaluating progress in implementing the 
                        TAICNAR Program described in paragraph 
                        (3), and consulting on improving core 
                        labor standards and working conditions 
                        in the textile and apparel sector in 
                        Haiti, and on other matters of common 
                        concern relating to such core labor 
                        standards and working conditions.
            ``(3) Technical assistance improvement and 
        compliance needs assessment and remediation program.--
                    ``(A) In general.--The requirement under 
                this paragraph is that Haiti, in cooperation 
                with the International Labor Organization, has 
                established a Technical Assistance Improvement 
                and Compliance Needs Assessment and Remediation 
                Program meeting the requirements under 
                subparagraph (C)--
                            ``(i) to assess compliance by 
                        producers listed in the registry 
                        described in paragraph (2)(B)(i) with 
                        the conditions set forth in 
                        subparagraph (B) and to assist such 
                        producers in meeting such conditions; 
                        and
                            ``(ii) to provide assistance to 
                        improve the capacity of the Government 
                        of Haiti--
                                    ``(I) to inspect facilities 
                                of producers listed in the 
                                registry described in paragraph 
                                (2)(B)(i); and
                                    ``(II) to enforce national 
                                labor laws and resolve labor 
                                disputes, including through 
                                measures described in 
                                subparagraph (E).
                    ``(B) Conditions described.--The conditions 
                referred to in subparagraph (A) are--
                            ``(i) compliance with core labor 
                        standards; and
                            ``(ii) compliance with the labor 
                        laws of Haiti that relate directly to 
                        core labor standards and to ensuring 
                        acceptable conditions of work with 
                        respect to minimum wages, hours of 
                        work, and occupational health and 
                        safety.
                    ``(C) Requirements.--The requirements for 
                the TAICNAR Program are that the program--
                            ``(i) be operated by the 
                        International Labor Organization (or 
                        any subdivision, instrumentality, or 
                        designee thereof), which prepares the 
                        biannual reports described in 
                        subparagraph (D);
                            ``(ii) be developed through a 
                        participatory process that includes the 
                        Labor Ombudsman described in paragraph 
                        (2) and appropriate representatives of 
                        government agencies, employers, and 
                        workers;
                            ``(iii) assess compliance by each 
                        producer listed in the registry 
                        described in paragraph (2)(B)(i) with 
                        the conditions set forth in 
                        subparagraph (B) and identify any 
                        deficiencies by such producer with 
                        respect to meeting such conditions, 
                        including by--
                                    ``(I) conducting 
                                unannounced site visits to 
                                manufacturing facilities of the 
                                producer;
                                    ``(II) conducting 
                                confidential interviews 
                                separately with workers and 
                                management of the facilities of 
                                the producer;
                                    ``(III) providing to 
                                management and workers, and 
                                where applicable, worker 
                                organizations in the facilities 
                                of the producer, on a 
                                confidential basis--
                                            ``(aa) the results 
                                        of the assessment 
                                        carried out under this 
                                        clause; and
                                            ``(bb) specific 
                                        suggestions for 
                                        remediating any such 
                                        deficiencies;
                            ``(iv) assist the producer in 
                        remediating any deficiencies identified 
                        under clause (iii);
                            ``(v) conduct prompt follow-up site 
                        visits to the facilities of the 
                        producer to assess progress on 
                        remediation of any deficiencies 
                        identified under clause (iii); and
                            ``(vi) provide training to workers 
                        and management of the producer, and 
                        where appropriate, to other persons or 
                        entities, to promote compliance with 
                        subparagraph (B).
                    ``(D) Biannual report.--The biannual 
                reports referred to in subparagraph (C)(i) are 
                a report, by the entity operating the TAICNAR 
                Program, that is published (and available to 
                the public in a readily accessible manner) on a 
                biannual basis, beginning 6 months after Haiti 
                implements the TAICNAR Program under this 
                paragraph, covering the preceding 6-month 
                period, and that includes the following:
                            ``(i) The name of each producer 
                        listed in the registry described in 
                        paragraph (2)(B)(i) that has been 
                        identified as having met the conditions 
                        under subparagraph (B).
                            ``(ii) The name of each producer 
                        listed in the registry described in 
                        paragraph (2)(B)(i) that has been 
                        identified as having deficiencies with 
                        respect to the conditions under 
                        subparagraph (B), and has failed to 
                        remedy such deficiencies.
                            ``(iii) For each producer listed 
                        under clause (ii)--
                                    ``(I) a description of the 
                                deficiencies found to exist and 
                                the specific suggestions for 
                                remediating such deficiencies 
                                made by the entity operating 
                                the TAICNAR Program;
                                    ``(II) a description of the 
                                efforts by the producer to 
                                remediate the deficiencies, 
                                including a description of 
                                assistance provided by any 
                                entity to assist in such 
                                remediation; and
                                    ``(III) with respect to 
                                deficiencies that have not been 
                                remediated, the amount of time 
                                that has elapsed since the 
                                deficiencies were first 
                                identified in a report under 
                                this subparagraph.
                            ``(iv) For each producer identified 
                        as having deficiencies with respect to 
                        the conditions described under 
                        subparagraph (B) in a prior report 
                        under this subparagraph, a description 
                        of the progress made in remediating 
                        such deficiencies since the submission 
                        of the prior report, and an assessment 
                        of whether any aspect of such 
                        deficiencies persists.
                    ``(E) Capacity building.--The assistance to 
                the Government of Haiti referred to in 
                subparagraph (A)(ii) shall include programs--
                            ``(i) to review the labor laws and 
                        regulations of Haiti and to develop and 
                        implement strategies for bringing the 
                        laws and regulations into conformity 
                        with core labor standards;
                            ``(ii) to develop additional 
                        strategies for facilitating protection 
                        of core labor standards and providing 
                        acceptable conditions of work with 
                        respect to minimum wages, hours of 
                        work, and occupational safety and 
                        health, including through legal, 
                        regulatory, and institutional reform;
                            ``(iii) to increase awareness of 
                        worker rights, including under core 
                        labor standards and national labor 
                        laws;
                            ``(iv) to promote consultation and 
                        cooperation between government 
                        representatives, employers, worker 
                        representatives, and United States 
                        importers on matters relating to core 
                        labor standards and national labor 
                        laws;
                            ``(v) to assist the Labor Ombudsman 
                        appointed pursuant to paragraph (2) in 
                        establishing and coordinating operation 
                        of the committee described in paragraph 
                        (2)(B)(v);
                            ``(vi) to assist worker 
                        representatives in more fully and 
                        effectively advocating on behalf of 
                        their members; and
                            ``(vii) to provide on-the-job 
                        training and technical assistance to 
                        labor inspectors, judicial officers, 
                        and other relevant personnel to build 
                        their capacity to enforce national 
                        labor laws and resolve labor disputes.
            ``(4) Compliance with eligibility criteria.--
                    ``(A) Country compliance with worker rights 
                eligibility criteria.--In making a 
                determination of whether Haiti is meeting the 
                requirement set forth in subsection 
                (d)(1)(A)(vi) relating to internationally 
                recognized worker rights, the President shall 
                consider the reports produced under paragraph 
                (3)(D).
                    ``(B) Producer eligibility.--
                            ``(i) Identification of 
                        producers.--Beginning in the second 
                        calendar year after the President makes 
                        the certification under paragraph 
                        (1)(A), the President shall identify on 
                        a biennial basis whether a producer 
                        listed in the registry described in 
                        paragraph (2)(B)(i) has failed to 
                        comply with core labor standards and 
                        with the labor laws of Haiti that 
                        directly relate to and are consistent 
                        with core labor standards.
                            ``(ii) Assistance to producers; 
                        withdrawal, etc., of preferential 
                        treatment.--For each producer that the 
                        President identifies under clause (i), 
                        the President shall seek to assist such 
                        producer in coming into compliance with 
                        core labor standards and with the labor 
                        laws of Haiti that directly relate to 
                        and are consistent with core labor 
                        standards. If such efforts fail, the 
                        President shall withdraw, suspend, or 
                        limit the application of preferential 
                        treatment under subsection (b) to 
                        articles of such producer.
                            ``(iii) Reinstating preferential 
                        treatment.--If the President, after 
                        withdrawing, suspending, or limiting 
                        the application of preferential 
                        treatment under clause (ii) to articles 
                        of a producer, determines that such 
                        producer is complying with core labor 
                        standards and with the labor laws of 
                        Haiti that directly relate to and are 
                        consistent with core labor standards, 
                        the President shall reinstate the 
                        application of preferential treatment 
                        under subsection (b) to the articles of 
                        the producer.
                            ``(iv) Consideration of reports.--
                        In making the identification under 
                        clause (i) and the determination under 
                        clause (iii), the President shall 
                        consider the reports made available 
                        under paragraph (3)(D).
            ``(5) Reports by the president.--
                    ``(A) In general.--Not later than one year 
                after the date of the enactment of the Haitian 
                Hemispheric Opportunity through Partnership 
                Encouragement Act of 2008, and annually 
                thereafter, the President shall transmit to the 
                appropriate congressional committees a report 
                on the implementation of this subsection during 
                the preceding 1-year period.
                    ``(B) Matters to be included.--Each report 
                required by subparagraph (A) shall include the 
                following:
                            ``(i) An explanation of the efforts 
                        of Haiti, the President, and the 
                        International Labor Organization to 
                        carry out this subsection.
                            ``(ii) A summary of each report 
                        produced under paragraph (3)(D) during 
                        the preceding 1-year period and a 
                        summary of the findings contained in 
                        such report.
                            ``(iii) Identifications made under 
                        paragraph (4)(B)(i) and determinations 
                        made under paragraph (4)(B)(iii).
            ``(6) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection the sum of $10,000,000 for the period 
        beginning on October 1, 2008, and ending on September 
        30, 2013.''.

SEC. 15404. PETITION PROCESS.

    Section 213A(d) of the Caribbean Basin Economic Recovery 
Act (19 U.S.C. 2703A(d)) is amended by adding at the end the 
following new paragraph:
            ``(4) Petition process.--Any interested party may 
        file a request to have the status of Haiti reviewed 
        with respect to the eligibility requirements listed in 
        paragraph (1), and the President shall provide for this 
        purpose the same procedures as those that are provided 
        for reviewing the status of eligible beneficiary 
        developing countries with respect to the designation 
        criteria listed in subsections (b) and (c) of section 
        502 of the Trade Act of 1974 (19 U.S.C. 2642 (b) and 
        (c)).''.

SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF CIRCUMVENTION.

    Section 213A(f) of the Caribbean Basin Economic Recovery 
Act, as redesignated by section 15403(2) of this Act, is 
amended by adding at the end the following new paragraph:
            ``(3) Limitation on goods shipped from the 
        dominican republic.--
                    ``(A) Limitation.--Notwithstanding 
                subsection (a)(5), relating to the definition 
                of `imported directly from Haiti or the 
                Dominican Republic', articles described in 
                subsection (b) that are shipped from the 
                Dominican Republic, directly or through the 
                territory of an intermediate country, whether 
                or not such articles undergo processing in the 
                Dominican Republic, shall not be considered to 
                be `imported directly from Haiti or the 
                Dominican Republic' until the President 
                certifies to the Congress that Haiti and the 
                Dominican Republic have developed procedures to 
                prevent unlawful transshipment of the articles 
                and the use of counterfeit documents related to 
                the importation of the articles into the United 
                States.
                    ``(B) Technical and other assistance.--The 
                Commissioner responsible for U.S. Customs and 
                Border Protection shall provide technical and 
                other assistance to Haiti and the Dominican 
                Republic to develop expeditiously the 
                procedures described in subparagraph (A).''.

SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY.

    The President may exercise the authority under section 604 
of the Trade Act of 1974 to proclaim such modifications to the 
Harmonized Tariff Schedule of the United States as may be 
necessary to carry out this part and the amendments made by 
this part.

SEC. 15407. REGULATIONS AND PROCEDURES.

    The President shall issue such regulations as may be 
necessary to carry out the amendments made by sections 15402, 
15403, and 15404. Regulations to carry out the amendments made 
by section 15402 shall be issued not later than September 30, 
2008. The Secretary of Commerce shall issue such procedures as 
may be necessary to carry out the amendment made by section 
15402(d) not later than September 30, 2008.

SEC. 15408. EXTENSION OF CBTPA.

    Section 213(b) of the Caribbean Basin Economic Recovery Act 
(19 U.S.C. 2703(b)) is amended--
            (1) in paragraph (2)(A)--
                    (A) in clause (iii)--
                            (i) in subclause (II)(cc), by 
                        striking ``2008'' and inserting 
                        ``2010''; and
                            (ii) in subclause (IV)(dd), by 
                        striking ``2008'' and inserting 
                        ``2010''; and
                    (B) in clause (iv)(II), by striking ``6'' 
                and inserting ``8''; and
            (2) in paragraph (5)(D)--
                    (A) in clause (i), by striking ``2008'' and 
                inserting ``2010''; and
                    (B) in clause (ii), by striking 
                ``108(b)(5)'' and inserting ``section 
                108(b)(5)''.

SEC. 15409. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE AND APPAREL 
                    PROVISIONS FOR HAITI.

    It is the sense of the Congress that the executive branch, 
particularly the Committee for the Implementation of Textile 
Agreements (CITA), U.S. Customs and Border Protection of the 
Department of Homeland Security, and the Department of 
Commerce, should interpret, implement, and enforce the 
provisions of section 213A(b) of the Caribbean Basin Economic 
Recovery Act, as amended by section 15402 of this Act, relating 
to preferential treatment of textile and apparel articles, 
broadly in order to expand trade by maximizing opportunities 
for imports of articles eligible for preferential treatment 
under such section 213A(b).

SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO HAITI.

    It is the sense of the Congress that the Secretary of 
Commerce, in coordination with the United States Trade 
Representative, the Secretary of State, and the Commissioner 
responsible for U.S. Customs and Border Protection of the 
Department of Homeland Security, should lead a trade mission to 
Haiti, within 6 months after the date of the enactment of this 
Act, to promote trade between the United States and Haiti, to 
promote new economic opportunities afforded under the 
amendments made by section 15402 of this Act, and to help 
educate United States and Haitian business concerns about such 
opportunities.

SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS.

    It is the sense of the Congress that Haiti, and other 
countries that receive preferences under trade preference 
programs of the United States that require effective visa 
systems to prevent transshipment, should ensure that monetary 
compensation for such visas is not required beyond the costs of 
processing the visa, including ensuring that such monetary 
compensation does not violate an applicable system to combat 
corruption and bribery.

SEC. 15412. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this 
part and the amendments made by this part shall take effect on 
the date of the enactment of this Act.
    (b) Exception.--The amendments made by section 15402 shall 
take effect on October 1, 2008, and shall apply to articles 
entered, or withdrawn from warehouse for consumption, on or 
after that date.

                PART II--MISCELLANEOUS TRADE PROVISIONS

SEC. 15421. UNUSED MERCHANDISE DRAWBACK.

    (a) In General.--Section 313(j)(2) of the Tariff Act of 
1930 (19 U.S.C. 1313(j)(2)) is amended by adding at the end the 
following: ``For purposes of subparagraph (A) of this 
paragraph, wine of the same color having a price variation not 
to exceed 50 percent between the imported wine and the exported 
wine shall be deemed to be commercially interchangeable.''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to claims filed for drawback under 
section 313(j)(2) of the Tariff Act of 1930 on or after the 
date of the enactment of this Act.

SEC. 15422. REQUIREMENTS RELATING TO DETERMINATION OF TRANSACTION VALUE 
                    OF IMPORTED MERCHANDISE.

    (a) Requirement on Importers.--
            (1) In general.--Pursuant to sections 484 and 485 
        of the Tariff Act of 1930 (19 U.S.C. 1484 and 1485), 
        the Commissioner responsible for U.S. Customs and 
        Border Protection shall require each importer of 
        merchandise to provide to U.S. Customs and Border 
        Protection at the time of entry of the merchandise the 
        information described in paragraph (2).
            (2) Information required.--The information referred 
        to in paragraph (1) is a declaration as to whether the 
        transaction value of the imported merchandise is 
        determined on the basis of the price paid by the buyer 
        in the first or earlier sale occurring prior to 
        introduction of the merchandise into the United States.
            (3) Effective date.--The requirement to provide 
        information under this subsection shall be effective 
        for the 1-year period beginning 90 days after the date 
        of the enactment of this Act.
    (b) Report to International Trade Commission.--
            (1) In general.--The Commissioner responsible for 
        U.S. Customs and Border Protection shall submit to the 
        United States International Trade Commission on a 
        monthly basis for the 1-year period specified in 
        subsection (a)(3) a report on the information provided 
        by importers under subsection (a)(2) during the 
        preceding month. The report required under this 
        paragraph shall be submitted in a form agreed upon 
        between U.S. Customs and Border Protection and the 
        United States International Trade Commission.
            (2) Matters to be included.--The report required 
        under paragraph (1) shall include--
                    (A) the number of importers that declare 
                the transaction value of the imported 
                merchandise is determined on the basis of the 
                method described in subsection (a)(2);
                    (B) the tariff classification of such 
                imported merchandise under the Harmonized 
                Tariff Schedule of the United States; and
                    (C) the transaction value of such imported 
                merchandise.
    (c) Report to Congress.--
            (1) In general.--Not later than 90 days after the 
        submission of the final report under subsection (b), 
        the United States International Trade Commission shall 
        submit to the appropriate congressional committees a 
        report on the information contained in all reports 
        submitted under subsection (b).
            (2) Matters to be included.--The report required 
        under paragraph (1) shall include--
                    (A) the aggregate number of importers that 
                declare the transaction value of the imported 
                merchandise is determined on the basis of the 
                method described in subsection (a)(2), 
                including a description of the frequency of the 
                use of such method;
                    (B) the tariff classification of such 
                imported merchandise under the Harmonized 
                Tariff Schedule of the United States on an 
                aggregate basis, including an analysis of the 
                tariff classification of such imported 
                merchandise on a sectoral basis;
                    (C) the aggregate transaction value of such 
                imported merchandise, including an analysis of 
                the transaction value of such imported 
                merchandise on a sectoral basis; and
                    (D) the aggregate transaction value of all 
                merchandise imported into the United States 
                during the 1-year period specified in 
                subsection (a)(3).
    (d) Sense of Congress Regarding Prohibition on Proposed 
Interpretation of the Term ``Sold for Exportation to the United 
States''.--
            (1) In general.--It is the sense of Congress that 
        the Commissioner responsible for U.S. Customs and 
        Border Protection should not implement a change to U.S. 
        Customs and Border Protection's interpretation (as such 
        interpretation is in effect on the date of the 
        enactment of this Act) of the term ``sold for 
        exportation to the United States'', as described in 
        section 402(b) of the Tariff Act of 1930 (19 U.S.C. 
        1401a(b)), for purposes of applying the transaction 
        value of the imported merchandise in a series of sales, 
        before January 1, 2011.
            (2) Exception.--It is the sense of Congress that 
        beginning on January 1, 2011, the Commissioner 
        responsible for U.S. Customs and Border Protection may 
        propose to change or change U.S. Customs and Border 
        Protection's interpretation of the term ``sold for 
        exportation to the United States'', as described in 
        paragraph (1), only if U.S. Customs and Border 
        Protection--
                    (A) consults with, and provides notice to, 
                the appropriate congressional committees--
                            (i) not less than 180 days prior to 
                        proposing a change; and
                            (ii) not less than 90 days prior to 
                        publishing a change;
                    (B) consults with, provides notice to, and 
                takes into consideration views expressed by, 
                the Commercial Operations Advisory Committee--
                            (i) not less than 120 days prior to 
                        proposing a change; and
                            (ii) not less than 60 days prior to 
                        publishing a change; and
                    (C) receives the explicit approval of the 
                Secretary of the Treasury prior to publishing a 
                change.
            (3) Consideration of international trade commission 
        report.--It is the sense of Congress that prior to 
        publishing a change to U.S. Customs and Border 
        Protection's interpretation (as such interpretation is 
        in effect on the date of the enactment of this Act) of 
        the term ``sold for exportation to the United States'', 
        as described in section 402(b) of the Tariff Act of 
        1930 (19 U.S.C. 1401a(b)), for purposes of applying the 
        transaction value of the imported merchandise in a 
        series of sales, the Commissioner responsible for U.S. 
        Customs and Border Protection should take into 
        consideration the matters included in the report 
        prepared by the United States International Trade 
        Commission under subsection (c).
    (e) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the 
        Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the 
        Senate.
            (2) Commercial operations advisory committee.--The 
        term ``Commercial Operations Advisory Committee'' means 
        the Advisory Committee established pursuant to section 
        9503(c) of the Omnibus Budget Reconciliation Act of 
        1987 (19 U.S.C. 2071 note) or any successor committee.
            (3) Importer.--The term ``importer'' means one of 
        the parties qualifying as an ``importer of record'' 
        under section 484(a)(2)(B) in the Tariff Act of 1930 
        (19 U.S.C. 1484(a)(2)(B)).
            (4) Transaction value of the imported 
        merchandise.--The term ``transaction value of the 
        imported merchandise'' has the meaning described in 
        section 402(b) of the Tariff Act of 1930 (19 U.S.C. 
        1401a(b)).
    And the Senate agree to the same.
                From the Committee on Agriculture, for 
                consideration of the House bill (except title 
                XII) and the Senate amendment (except secs. 
                12001, 12201-12601, and 12701-12808), and 
                modifications committed to conference:
                                   Collin C. Peterson,
                                   Tim Holden,
                                   Mike McIntyre,
                                   Bob Etheridge,
                                   Leonard L. Boswell,
                                   Joe Baca,
                                   Dennis L. Cardoza,
                                   David Scott,
                                   Bob Goodlatte,
                                   Robin Hayes,
                                   Marilyn Musgrave,
                                   Randy Neugebauer,
                From the Committee on Education and Labor, for 
                consideration of secs. 4303 and 4304 of the 
                House bill, and secs. 4901-4905, 4911, and 4912 
                of the Senate amendment, and modifications 
                committed to conference:
                                   George Miller,
                                   Carolyn McCarthy,
                                   Todd Platts,
                From the Committee on Energy and Commerce, for 
                consideration of secs. 6012, 6023, 6024, 6028, 
                6029, 9004, 9005, and 9017 of the House bill, 
                and secs. 6006, 6012, 6110-6112, 6202, 6302, 
                7044, 7049, 7307, 7507, 9001, 11060, 11072, 
                11087, and 11101-11103 of the Senate amendment, 
                and modifications committed to conference:
                                   John D. Dingell,
                                   Frank Pallone,
                From the Committee on Financial Services, for 
                consideration of sec. 11310 of the House bill, 
                and secs. 6501-6505, 11068, and 13107 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Paul E. Kanjorski,
                                   Maxine Waters,
                From the Committee on Foreign Affairs, for 
                consideration of secs. 3001-3008, 3010-3014, 
                and 3016 of the House bill, and secs. 3001-
                3022, 3101-3107, and 3201-3204 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Howard L. Berman,
                                   Brad Sherman,
                                   Ileana Ros-Lehtinen,
                From the Committee on the Judiciary, for 
                consideration of secs. 11102, 11312, and 11314 
                of the House bill, and secs. 5402, 10103, 
                10201, 10203, 10205, 11017, 11069, 11076, 
                13102, and 13104 of the Senate amendment, and 
                modifications committed to conference:
                                   John Conyers,
                                   Bobby Scott,
                From the Committee on Natural Resources, for 
                consideration of secs. 2313, 2331, 2341, 2405, 
                2607, 2607A, 2611, 5401, 6020, 7033, 7311, 
                8101, 8112, 8121-8127, 8204, 8205, 11063, and 
                11075 of the Senate amendment, and 
                modifications committed to conference:
                                   Nick Rahall,
                                   Madeleine Z. Bordallo,
                                   Cathy McMorris Rodgers,
                From the Committee on Oversight and Government 
                Reform, for consideration of secs. 1501 and 
                7109 of the House bill, and secs. 7020, 7313, 
                7314, 7316, 7502, 8126, 8205, and 10201 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Edolphus Towns,
                From the Committee on Science and Technology, 
                for consideration of secs. 4403, 9003, 9006, 
                9010, 9015, 9019, and 9020 of the House bill, 
                and secs. 7039, 7051, 7315, 7501, and 9001 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Bart Gordon,
                                   Michael T. McCaul,
                From the Committee on Small Business, for 
                consideration of subtitle D of title XI of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Nydia M. Velazquez,
                                   Heath Shuler,
                From the Committee on Transportation and 
                Infrastructure, for consideration of secs. 
                2203, 2301, 6019, and 6020 of the House bill, 
                and secs. 2604, 6029, 6030, 6034, and 11087 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   James L. Oberstar,
                                   Eleanor H. Norton,
                                   Sam Graves,
                From the Committee on Ways and Means, for 
                consideration of sec. 1303 and title XII of the 
                House bill, and secs. 12001-12601, and 12701-
                12808 of the Senate amendment, and 
                modifications committed to conference:
                                   Charles B. Rangel,
                                   Earl Pomeroy,
                For consideration of House bill (except title 
                XII) and the Senate amendment (except secs. 
                12001, 12201-12601, and 12701-12808), and 
                modifications committed to conference:
                                   Rosa L. DeLauro,
                                   Adam H. Putnam,
                                 Managers on the Part of the House.

                                   Tom Harkin,
                                   Patrick Leahy,
                                   Kent Conrad,
                                   Max Baucus,
                                   Blanche L. Lincoln,
                                   Debbie Stabenow,
                                   Saxby Chambliss,
                                   Thad Cochran,
                                   Pat Roberts
                                           (For purposes of Title XV 
                                               only),
                                   Chuck Grassley,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The Managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 2419) to provide 
for the continuation of agricultural programs through fiscal 
year 2012, and for other purposes, submit the following joint 
statement to the House and the Senate in explanation of the 
effect of the action agreed upon by the managers and 
recommended in the accompanying conference report:
      The Senate amendment struck out all of the House bill 
after the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clarifying 
changes.

                     SHORT TITLE; TABLE OF CONTENTS


(1) Short title

      The House bill refers to this Act as the ``Farm, 
Nutrition, and Bioenergy Act of 2007''. (Section 1)
      The Senate amendment states that this Act may be cited as 
the ``Food and Energy Security Act of 2007''. (Section 1)
      The Conference substitute cites this Act as the ``Food, 
Conservation, and Energy Act of 2008''. (Section 1)

                      TITLE I--COMMODITY PROGRAMS


(2) Definitions

      The House bill defines various terms used in the bill; 
most terms are defined as they were in the 2002 farm bill. The 
definitions of ``Far East price'' and two definitions regarding 
the cotton quality and premiums, ``United States Premium 
Factor'' and ``Comparable United States Quality'' are added. 
(Section 1001)
      The Senate amendment defines various terms used in the 
bill; most terms are defined as they were in the 2002 farm 
bill. The definitions of average crop revenue payment, medium 
grain rice, and pulse crop are added. (Section 1001) The 
definition of Secretary applies to the entire bill. Section 2) 
The definitions that are relevant to the peanuts subtitle are 
found in that part. (Section 1301)
      The Conference substitute defines terms necessary for 
implementation of this Act: Secretary, average crop revenue 
election payment, base acres, counter-cyclical payment, covered 
commodity, direct payment, effective price, extra long staple 
cotton, loan commodity, medium grain rice, other oilseed, 
payment acres, payment yield, producer, pulse crop, State, 
target price, United States, and United States premium factor. 
The Conference substitute adopts the Senate structure for the 
peanut program. (Sections 2, 1001, and 1301)

8(3) Adjustments to base acres

      The House bill provides that producers are generally not 
given a choice of updating base acres or payment yields under 
this bill. However, it requires the Secretary to provide base 
acre adjustments when a conservation reserve contract ends. 
Peanut base acres are no longer specified because peanuts are 
included as a covered commodity. (Section 1101)
      The Senate amendment provides for an adjustment in base 
acres to include pulse crop, camelina, or newly designated 
oilseed acreage; applies the limit on acreage enrolled in a 
conservation program only to acreage enrolled in Federal 
conservation programs; references base acres for peanuts; and 
requires the Secretary to reduce base acres for land that is no 
longer used for farming, specifically land that has been 
developed for commercial or industrial use or has been 
subdivided and developed for multiple residential units or 
other nonfarming uses unless the producer demonstrates that the 
land remains devoted exclusively to agricultural production. 
Section 1302 applies the base acre provisions for covered 
commodities under Section 1101 to peanuts. (Sections 1101 and 
1301)
      The Conference substitute provides for the adjustment of 
base acres when a conservation reserve contract expires or is 
terminated; the producer has eligible pulse crop acreage or 
eligible oilseed acreage as a result of the designation of 
additional oilseeds; provides for base acres for peanuts in the 
determination of excess base acres; provides for the reduction 
of base acres for land that has been subdivided and developed 
for multiple residential units; provides that direct payments, 
counter-cyclical payments, or average crop revenue election 
payments are prohibited if the sum of the base acres of the 
farm is 10 acres or less unless the farm is owned by a socially 
disadvantaged or limited resource farmer or rancher; and 
includes authority for data collection and evaluation. The 
Conference substitute adopts the Senate structure for the 
peanut program. (Sections 1101 and 1302)
      The Managers intend that the Department accommodate 
requests for adjustments in base acres for producers on 
different farms or tracts who have agreed on a voluntary basis 
to redistribute base acres between tracts, if base acreage was 
previously transferred to or from a tract because of 
participation in the Conservation Reserve Program.
      The Managers expect Section 1101(b)(1) and Section 
1302(b)(1) to be administered in the same manner as Section 
1101(g)(1) and Section 1302(f)(1) of the Farm Security and 
Rural Investment Act of 2002 as implemented in 7 CFR 
1412.204(a).
      The Managers recognize the importance of assessing the 
impact of the suspension of payments for small base acres of 
covered commodities upon specialty crop producers. For greater 
efficiency, the Managers expect the Secretary to include the 
information and evaluations derived from Section 1101(d)(3) and 
Section 1302(d)(3) into the report required under Section 
1107(d)(7)(C) prior to its submission to the Committee on 
Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition and Forestry of the Senate.
      The Managers intend for the Department to allow for 
aggregation of farms for purposes of determining the suspension 
of payments on farms with 10 base acres or less. The Managers 
expect for the Department to review farms in this category on 
an annual basis rather than prohibiting payments to these farms 
for the life of the farm bill.

(3A) Payment yields

      The Senate amendment provides for the establishment of a 
payment yield for any designated oilseed, camelina, or eligible 
pulse crop for the purpose of making direct payments and 
counter-cyclical payments. It also provides a formula for 
calculating payment yields that is similar to the provisions 
used in 2002. (Section 1102)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
but deletes all references to camelina. (Section 1102)

(4) Availability of direct payments

      The House bill reflects current law for the 2008-2012 
crop years, except it includes peanuts; terminates advance 
direct payments starting with the 2012 crop year; and prohibits 
a direct payment if the payment for all covered commodities 
would be less than $25. (Section 1102)
      The Senate amendment reflects current law for the 2008-
2012 crop years, except it terminates advance direct payments 
starting with the 2012 crop year; specifies separate rates for 
long grain rice and medium grain rice; and excludes 
participants in the average crop revenue program. (Sections 
1103 and 1303)
      The Conference substitute provides direct payments at 
current rates with an exception for participants in the average 
crop revenue election program; specifies separate but identical 
rates for long grain rice and medium grain rice; and terminates 
advance direct payments starting with the 2012 crop year. The 
Conference substitute adopts the Senate structure for the 
peanut program. (Sections 1103 and 1303)

(5) Availability of counter-cyclical payments

      The House bill extends current provisions to the 2008-
2012 crop years with the following exceptions: includes peanuts 
as a covered commodity; clarifies that the Secretary shall 
establish national average loan rates for all rice and all 
barley for the purpose of calculating counter-cyclical 
payments; rebalances target prices for wheat, barley, oats, 
upland cotton, soybeans, and other oilseeds; eliminates partial 
counter-cyclical payments beginning with the 2011 crop year; 
and prohibits a counter-cyclical payment if the total counter-
cyclical payments for all covered commodities on the farm would 
be less than $25. (Section 1103)
      The Senate amendment extends the counter-cyclical program 
for the 2008-2012 crop years, except for participants in 
average crop revenue program, and with the following 
modifications: for long grain rice and medium grain rice, the 
effective price is determined using the same calculation, but 
by the type or class of rice, as determined by the Secretary; 
rebalances target prices for wheat, grain sorghum, barley, 
oats, upland cotton, soybeans, and other oilseeds; establishes 
target prices for dry peas, lentils, small chickpeas, and large 
chickpeas; eliminates partial counter-cyclical payments 
beginning with the 2011 crop year; prohibits the Secretary from 
establishing a target price for a covered commodity that is 
different from the target price specified. (Sections 1104 and 
1304)
      The Conference substitute adopts the Senate provision 
regarding long grain rice and medium grain rice. The Conference 
substitute provides that the revised target price for upland 
cotton and counter-cyclical program payment by class of rice 
will be effective beginning with the 2008 crop year; 
establishes target prices for pulse crops beginning with the 
2009 crop year; and rebalances target prices for wheat, grain 
sorghum, barley, oats, soybeans and other oilseeds effective 
for the 2010 crop year; and eliminates partial counter-cyclical 
payments beginning with the 2011 crop year. The Conference 
substitute adopts the Senate structure for the peanut program. 
(Sections 1104 and 1304)

(6) Availability of revenue-based counter-cyclical payments

      The House bill requires the Secretary to offer producers 
the option to receive revenue-based counter-cyclical payments 
for the 2008-2012 crop years, as an alternative to receiving 
counter-cyclical payments under section 1103. Producers will 
have only one opportunity to elect to receive revenue-based 
counter cyclical payments as soon as practicable after 
enactment. If a producer fails to make such election in a 
timely manner, the producer will receive counter-cyclical 
payments pursuant to section 1103. The Secretary is required to 
make revenue-based counter-cyclical payments to such producers 
if the Secretary determines that the national actual revenue 
per acre for the covered commodity is less than the national 
target revenue per acre for the covered commodity. The 
Secretary shall establish a national actual revenue per acre by 
multiplying the national average yield for the given year by 
the higher of: the national average market price received by 
producers during the 12-month marketing year; or the loan rate 
for the covered commodity under section 1202, except that for 
rice and barley, the Secretary shall establish national average 
all rice and all barley loan rates. The House bill establishes 
the national target revenue per acre as follows: wheat, 
$149.92; corn, $344.12; grain sorghum, $131.28; barley, 
$153.30; oats, $92.10; upland cotton, $496.93; rice, $548.06; 
soybeans, $231.87; other oilseeds, $129.18; and peanuts, 
$683.83. The House bill establishes the national payment yield 
for each covered commodity and the formula for the national 
payment rate. The House bill provides that if revenue-based 
counter-cyclical payments are required for any of the covered 
commodities, the amount of the payment shall be equal to the 
product of: the national payment rate; the payment acres; and 
the payment yield. (Section 1104)
      The Senate amendment contains no comparable provision.
      The Conference substitute provides an optional revenue-
based counter-cyclical program that will be available beginning 
with the 2009 crop year. As an alternative to receiving 
counter-cyclical payments under section 1104, and with an 
agreement to forgo 20 percent of the direct payment rate and 30 
percent of the marketing assistance loan rates for covered 
commodities and peanuts, producers on a farm can elect to 
participate in the average crop revenue election (ACRE) program 
for all covered commodities and peanuts on the farm. Once they 
elect to participate in ACRE, the producers on the farm will 
remain in the program for the duration of the farm bill. 
Participants in ACRE will be eligible for state-based coverage 
with a revenue guarantee equal to 90 percent of the 5-year 
state average yield per planted acre (excluding the years with 
the highest and lowest yields) times the 2-year national 
average price for the covered commodity. Once the ACRE 
guarantee is established, it cannot vary by more than 10 
percent from the previous year's guarantee. If the actual State 
revenue (yield per planted acre times the national price) is 
less than the revenue guarantee, and if the producers suffer a 
loss on their farm, then they will receive an ACRE payment 
equal to the difference between the State revenue guarantee and 
the actual revenue for the crop year up to 25 percent of the 
revenue guarantee. ACRE revenue payments are made on 85 percent 
of the acreage planted or considered planted to the covered 
commodity or peanuts. For the 2009, 2010 and 2011 crop years, 
ACRE payment acres are reduced to 83.3 percent of planted or 
considered planted acres. (Section 1105)

(7) Producer agreement required as condition of provision of direct 
        payments and counter-cyclical payments

      The House bill is similar to current law, except it 
includes peanuts and omits the reference to noncultivation with 
regard to the control of noxious weeds. (Section 1105)
      The Senate amendment is similar to current law, except it 
includes an additional provision that land cannot be used for a 
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) and provides that no penalty with respect to 
benefits can 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. (Section 
1105)
      The Conference substitute adopts the Senate provision 
with an amendment that provides that participants in ACRE 
provide both acreage and production reports and that no penalty 
with respect to benefits can be assessed against the producers 
on a farm for an inaccurate report unless the producers on the 
farm knowingly and willfully falsified the report. The 
Conference substitute adopts the Senate structure for the 
peanut program. (Sections 1106 and 1305)
      The Managers intend that if a transfer or change in 
interest of producers on a farm occurs, and the transferee or 
owner of the acres does not agree to assume all obligations 
under section 1106(a), then direct payments, counter-cyclical 
payments, and average crop revenue election payments will be 
terminated. However, the references to average crop revenue 
election payments in sections 1106(b)(1)(A) and 1305(b)(1)(A) 
refer only to the limitation described in section 1105(a)(2), 
not the actual payment acres for the average crop revenue 
election program.

(8) Planting flexibility

      The House bill is the same as current law, but it 
includes peanuts and establishes a pilot Farm Flex project in 
Indiana for the 2008-2012 crop years, under which tomatoes for 
processing may be planted on up to 10,000 base acres. (Section 
1106)
      The Senate amendment is the same as current law, except 
provides an exception for mung beans and pulse crops and 
provides a pilot flexibility project in Indiana for the 2008 
and 2009 crop years. (Section 1106)
      The Conference substitute provides that mung beans and 
pulse crops can be planted on base acres, and provides a pilot 
project to allow the production of specified fruits or 
vegetables for processing for the 2009-2012 crop years on up to 
9,000 base acres in the State of Illinois; 9,000 base acres in 
the State of Indiana; 1,000 base acres in the State of Iowa; 
9,000 base acres in the State of Michigan; 34,000 base acres in 
the State of Minnesota; 4,000 base acres in the State of Ohio; 
and 9,000 base acres in the State of Wisconsin; that base acres 
will be protected; and that the Secretary will evaluate the 
effects of the pilot project on the supply and demand of fresh 
fruits and vegetables and fruits and vegetables for processing. 
The Conference substitute adopts the Senate structure for the 
peanut program. (Sections 1107 and 1306)
      The Managers expect the Secretary to establish a process 
to ensure that the quantity of fruits or vegetables delivered 
for processing under the pilot project does not exceed the 
quantity reflected in the original contract between the 
producer and the processor. The Managers further expect the 
Secretary to seek evidence that the amount of fruits or 
vegetables planted for processing under this pilot project is 
delivered to the processing facility or in the case of crop 
loss is determined by the Secretary to have been destroyed.
      In evaluating the effects of the program on the supply of 
and price of fresh fruits and vegetables and fruits and 
vegetables for processing, the Managers encourage the Secretary 
to examine the impact of the program on bonus buys under the 
authority of Section 46 of the Agricultural Act of 1949 and 
surplus removal under the authority of Section 32 of the Act of 
August 24, 1935.
      The Managers recognize the importance of assessing the 
impact of the expansion of the planting flexibility pilot 
program upon specialty crop producers. For greater efficiency, 
the Managers expect the Secretary to include the information 
and evaluations derived from Section 1101(d)(3) and Section 
1302(d)(3) into the report required under this Section prior to 
its submission to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition and 
Forestry of the Senate.

(8A) Special rule for long grain and medium grain rice

      The Senate amendment provides that for the purposes of 
making counter-cyclical payments for long grain and medium 
grain rice, base acres on the farm shall be apportioned based 
on acreage planted to long grain rice and medium grain rice 
during the 2003-2006 crop years. The Senate amendment requires 
that base acres, payment acres, and payment yields established 
with respect to rice are maintained. (Section 1107)
      The House bill does not contain a comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1108)

(9) Period of effectiveness

      The House bill authorizes Subtitle A of Title I for the 
2008-2012 crop years. (Section 1107)
      The Senate amendment authorizes Part I of Subtitle A of 
Title I for each covered commodity for the 2008-2012 crop 
years. (Section 1108)
      The Conference substitute adopts the Senate provision 
with an amendment. (Section 1109)

(10) Availability of nonrecourse marketing assistance loans for loan 
        commodities

      The House bill is similar to current law; but authorizes 
that, for peanuts, a marketing assistance loan or loan 
deficiency payments may be obtained through a marketing 
association or marketing cooperative of producers that is 
approved by the Secretary, or through the Farm Service Agency; 
stipulates that as a condition for an individual or entity to 
provide storage for peanuts for which a marketing assistance 
loan is made, the individual or entity shall agree to provide 
storage on a non-discriminatory basis and to comply with 
additional requirements as the Secretary deems appropriate in 
order to promote fairness in the administration of this 
section; and authorizes a marketing association or cooperative 
to market peanuts for which a loan is made under this section, 
including by separating peanuts by type and quality. (Section 
1201)
      The Senate amendment is the same as current law; except 
for participants in average crop revenue program. (Sections 
1201 and 1307)
      The Conference substitute adopts the Senate provision. 
(Sections 1201 and 1307)

(10A) Peanuts storage and handling costs

      The Senate amendment replaces the payment of storage, 
handling and associated costs under the 2002 farm bill with a 
mechanism that ensures handling and associated costs are not 
deducted from a producer's marketing loan. USDA would advance 
the payment for handling and associated costs for peanuts 
placed under loan and the advanced costs would be repaid when 
the peanuts are redeemed. (Section 1307(a)(7))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to begin coverage for handling and associated 
costs with the 2008 crop of peanuts. (Section 1307)
      In order to provide adequate storage and handling for 
peanuts in the marketing loan program, FSRIA used funds of the 
Commodity Credit Corporation (CCC) to provide payments for 
storage, handling, and associated costs for peanuts in the 
loan. However, these payments expired before the 2007 crop year 
for peanuts. The budgetary constraints made it impossible to 
continue the storage and handling payments established under 
FSRIA in this bill. In order to continue to ensure the adequate 
storage and handling for peanuts in the loan program, this bill 
instructs the Secretary to pay any handling and associated 
costs incurred at the time the peanuts are placed under loan 
for the 2008 through 2012 peanut crop years. These payments 
would be repaid when the loan peanuts are redeemed. The 
Secretary would pay the storage, handling, and associated costs 
for peanuts under the loan that are forfeited. The purpose of 
this provision is to not only ensure proper and adequate 
storage and handling of peanuts in the loan but also to 
guarantee that these costs are not taken out of a producer's 
loan proceeds at the time the peanuts are placed in the loan.

(11) Loan rates for nonrecourse marketing assistance loans

      The House bill establishes loan rates for marketing 
assistance loans, including two loan rates for rice (one for 
long grain rice; one for medium and short grain rice) and two 
for barley (one for feed barley; one for malt barley), as 
follows: wheat, $2.94 per bushel; corn, $1.95 per bushel; grain 
sorghum, $1.95 per bushel; malt barley, $2.50 per bushel; feed 
barley, $1.90 per bushel; oats, $1.46 per bushel; base quality 
upland cotton, $0.52 per pound; extra long staple cotton, 
$0.7977 per pound; long grain rice, $6.50 per hundredweight; 
medium grain rice and short grain rice, $6.50 per 
hundredweight; soybeans, $5.00 per bushel; other oilseeds, 
$0.1070 per pound for each of the following--sunflower seed, 
rapeseed, canola, safflower, flaxseed, mustard seed, crambe, 
sesame seed, and other oilseeds designated by the Secretary; 
dry peas, $5.40 per hundredweight; lentils, $11.28 per 
hundredweight; small chickpeas, $8.54 per hundredweight; 
peanuts, $355.00 per ton; graded wool, $1.10 per pound; 
nongraded wool, $0.40 per pound; honey, $0.60 per pound; and 
mohair, $4.20 per pound. The House bill requires the Secretary 
to establish a single county loan rate for corn and grain 
sorghum in each county; and to administer the applicable loan, 
marketing loan, counter-cyclical and related programs using an 
identical loan rate for corn and grain sorghum in each county. 
(Section 1202)
      The Senate amendment establishes loan rates for the 2008-
2012 crop years; includes similar provisions to the House bill 
for corn and grain sorghum; and establishes grading basis for 
marketing loans for pulse crops using a grade not less than 
grade number 2 or other grade factors, including the fair and 
average quality of the crop in any year; and may be adjusted by 
the Secretary to reflect the normal market discounts for grades 
less than number 2 quality. (Sections 1202, 1210, and 1307)
      The Conference substitute establishes loan rates for the 
2008-2012 crop years. The Conference substitute adopts the 
Senate structure for the peanut program. (Sections 1202 and 
1307)
      The Managers have included in Section 1202 revisions to 
the marketing loan rates for dry peas, lentils, and small 
chickpeas and established a marketing loan program for large 
chickpeas, herein after referred to collectively as pulse 
crops. The Managers intend that the Secretary establish grade 
factors for pulse crop loan eligibility that reflects the 
established U.S. grades for #2 or better used in commercial 
domestic and export sales transactions and that the Secretary 
establish a commodity marketing loan grade discount schedule 
that is comparable to, and reflects the prevailing average 
grade discounts that apply to commercial pulse crop sales 
transactions.

(12) Terms of loans

      The House bill provides the same loan term as current 
law. (Section 1203)
      The Senate amendment provides the same loan term as 
current law, and it establishes the same loan term for peanuts 
as current law. (Sections 1203 and 1307)
      The Conference substitute adopts the House provision and 
the Senate structure for the peanut program. (Sections 1203 and 
1307)

(13) Repayment of loans

      The House bill provides the same as current law, except 
it specifies long grain rice, medium grain rice, and short 
grain rice; includes peanuts; and for upland cotton, it 
specifies that USDA use price quotes from Far East market to 
determine the prevailing world market price for upland cotton; 
provides for adjustments to the prevailing world market price; 
and requires the prevailing world market price be adjusted to 
U.S. quality and location; and authorizes further adjustment in 
the prevailing world market price. The House bill requires 
repayment rates for dry peas, lentils and small chickpeas to be 
based on quality grades for those commodities. (Section 1204)
      The Senate amendment is similar to current law, except it 
specifies long grain rice and medium grain rice, provides 
similar provisions for upland cotton, and requires the loan 
repayment rate for pulse crops to be based on the specified 
quality grades for the applicable commodity. (Sections 1204 and 
1307)
      The Conference substitute provides that the Secretary 
calculate a loan repayment rate for loan commodities (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)) based on the 
average market prices for the loan commodity during the 
preceding 30-day period. The Conference substitute adopts the 
Senate provisions with respect to upland cotton with an 
amendment to provide an adjustment for average transportation 
costs and adjustments related to U.S. premium factor. (Section 
1204)
      The Managers have included section 1204(h) which grants 
authority to the Secretary to modify repayment rates under the 
marketing loan program in the event of a severe disruption to 
marketing, transportation, or related infrastructure. The 
purpose of this provision is to grant the Secretary the 
authority to manage the marketing loan program in a manner that 
protects the taxpayer in the event of a major market disruption 
similar to the disruption that followed Hurricane Katrina. The 
Managers intend for the actions taken under this provision to 
be used on a short-term and temporary basis that should not 
extend beyond the duration of the disruption that gives rise to 
the exercise of this authority. Further, the Secretary should 
not exercise this authority if the disruption can be foreseen, 
such as, routine or announced maintenance on infrastructure, 
but rather should reserve this authority for extraordinary 
circumstances.
      The Managers authorize the Department of Agriculture to 
make significant adjustments in the marketing loan program for 
upland cotton in sections 1204 and 1210. The Managers recognize 
that the upland cotton marketing loan program will undergo 
another significant change in the next marketing year when the 
Department is expected to modify its determination of the 
adjusted world price (AWP) in the absence of a North European A 
index. The Managers understand from the Department that it has 
the authority to make appropriate adjustments for determining 
and calculating the AWP for upland cotton. The Managers request 
that the Department ensure that an accurate world price is 
discovered in the absence of a North European index and 
appreciate communication from the Department about any changes 
that may be made. The Managers encourage the Department to make 
any changes in a manner that ensures a seamless transition for 
the program, for the Department, and for the entire cotton 
industry. The Managers also encourage the Department to ensure 
that such AWP calculation achieves the statutory goal of 
allowing upland cotton produced in the United States to be 
competitive both domestically and internationally.

(14) Loan deficiency payments

      The House bill provides the same as current law for 2008-
2012 crop years and includes peanuts. (Section 1205)
      The Senate amendment provides the same as current law for 
2009-2012 crop years. For the 2008 crop year, the Senate 
amendment establishes the effective date for payment rate 
determination as the date on which the producers on the farm 
lost beneficial interest and requires the Secretary to 
establish procedures for consumption on the farm. (Sections 
1205 and 1307)
      The Conference substitute adopts the House provision and 
the Senate structure for the peanut program. (Sections 1205 and 
1307)

(15) Payments in lieu of loan deficiency payments for grazed acreage

      The House bill provides the same as current law. (Section 
1206)
      The Senate bill provides the same as current law. 
(Section 1206)
      The Conference substitute adopts the House provision. 
(Section 1206)

(16) Special marketing loan provisions for upland cotton

      The House bill requires the President to carry out a 
special import quota program for upland cotton whenever the 
Secretary determines that for a consecutive 4-week period, the 
price of American cotton exceeds the price of cotton delivered 
in the Far East markets. The term ``special import quota'' is 
defined as a quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. The House bill 
provides that the amount of cotton that can come into the U.S. 
under the special import quota during any marketing year is 
limited to the equivalent of 10 week's consumption of upland 
cotton by domestic mills. (Section 1207(a))
      Subsection (b) of the House bill provides the same as 
current law. (Section 1207(b))
      Subsection (c) of the House bill requires the Secretary, 
beginning on the date of enactment through July 31, 2013, to 
issue marketing certificates or cash payments to domestic users 
of upland cotton for uses of all cotton regardless of origin. 
The payments or certificates will equal 4 cents per pound. 
Assistance can only be used for acquisition, construction, 
installation, modernization, development, conversion, or 
expansion of land, plant, buildings, equipment, facilities, or 
machinery. No end date is specified. (Section 1207(c))
      The Senate amendment provides the same as the House 
measure except it specifies the price of American cotton 
delivered to a definable and significant international market. 
(Section 1207(a))
      Subsection (b) of the Senate amendment is the same as 
current law, except it provides additional discretion on the 
quantity of quota. (Section 1207(b))
      Subsection (c) of the Senate amendment requires the 
Secretary, beginning August 1, 2008 through June 30, 2013, to 
provide economic adjustment assistance equal to 4 cents per 
pound to domestic users of upland cotton for all documented use 
of cotton during the previous month regardless of the origin of 
the cotton. The payment rate is reduced to 0 cents per pound on 
July 1, 2013, terminating the funding for the program. It 
specifies the same uses for the assistance as in the House 
bill. (Section 1207(c))
      The Conference substitute adopts the Senate provision 
with an amendment in subsection (c) to provide assistance equal 
to 4 cents per pound during the period August 1, 2008, through 
July 31, 2012 and reduced to 3 cents per pound beginning on 
August 1, 2012. (Section 1207)

(17) Special competitive provisions for extra long staple cotton

      The House bill provides the same as current law. (Section 
1208)
      The Senate amendment provides the same as current law, 
except that it does not specify the form of payments (cash or 
certificates). (Section 1208)
      The Conference substitute adopts the Senate provision. 
(Section 1208)

(18) Availability of recourse loans for high moisture feed grains and 
        seed cotton

      The House bill provides the same as current law. (Section 
1209)
      The Senate amendment provides the same as current law. 
(Section 1209)
      The Conference substitute adopts the Senate provision. 
(Section 1209)

(19) Deadline for repayment of marketing assistance loan for peanuts

      The House bill requires that marketing assistance loans 
for peanuts be redeemed no later than June 30 of the year 
subsequent to the year in which the peanuts were harvested. 
Such loans not redeemed by the deadline shall be deemed 
forfeited to the Commodity Credit Corporation. (Section 1210)
      The Senate amendment contains no comparable provision.
      The Conference substitute drops this provision.

(19A) Reimbursable agreements and payments of administrative expenses

      The Senate amendment provides that the Secretary may 
implement any reimbursable agreements or provide for the 
payment of administrative expenses for peanuts only in a manner 
that is consistent with such activities in regard to other 
commodities. (Section 1307)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1307(g))

(19B) Adjustments of loans for peanuts

      The Senate amendment provides authority to the Secretary 
to adjust loan rates for peanuts based on differences in grade, 
type, quality, location, and other factors. (Section 1308)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1308)

(20) Commodity quality incentive payments for healthy oilseeds

      The House bill, subject to the availability of funds, 
requires the Secretary to provide commodity quality incentive 
payments during the 2009-2013 crop years for the production of 
oilseeds with specialized traits that enhance human health. 
Requires the Secretary to issue a request for proposals for 
payments under this section. (Section 1211)
      The Senate amendment is similar to House provision, 
except it has fewer requirements for proposals; does not 
specify multi-year contracts; provides protection for 
proprietary information; and authorizes $400 million for the 
period of fiscal years 2008-2012 subject to appropriations. 
(Section 1705)
      The Conference substitute adopts the Senate provision 
with an amendment that provides, subject to the availability of 
funds, for a quality incentive program for oilseeds 
demonstrated to improve the health profile of the oilseed for 
use in human consumption for the period of fiscal years 2009-
2012. The provision sets forth the requirements for posals, 
protects proprietary information, and provides for program 
compliance and penalties. (Section 1605)

(20A) Availability of average crop revenue payments

      The Senate amendment requires the Secretary to give 
producers the opportunity to make a one-time election to 
receive average crop revenue payments for the 2010, 2011, and 
2012 crop years; the 2011 and 2012 crop years; or the 2012 crop 
year in lieu of participating in the direct and counter-
cyclical program and the marketing assistance loan program. 
Producers who elect to participate in the average crop revenue 
program are eligible to receive fixed payments equal to not 
less than the product of $15 per acre and the quantity of base 
acres on the farm for all covered commodities and peanuts. The 
Secretary is required to make revenue payments available if the 
actual state revenue for a covered commodity or peanuts is less 
than the average crop revenue guarantee for that commodity. 
Average crop revenue payments are made beginning October 1, or 
as soon as practicable thereafter, after the end of the 
applicable marketing year (compared to direct payments, this 
provision delays fixed ACR payments by one year with no 
provision for advance payments). The Senate amendment 
establishes actual state revenue as the product of the actual 
state yield (the quantity of the covered commodity or peanuts 
produced in the State during the crop year divided by the 
number of planted acres) and the average crop revenue harvest 
price (the harvest price used to calculate revenue under 
revenue plans offered by the Federal Crop Insurance program). 
The average crop revenue program guarantee equals 90 percent of 
the product of the expected state yield per planted acre and 
the pre-planting price (the price used to calculate revenue 
under revenue coverage plans offered by the Federal Crop 
Insurance program) for the crop year and the preceding 2 crop 
years. The pre-planting price cannot decrease or increase more 
than 15 percent from the pre-planting price for the preceding 
year. The payment amount, in addition to the amount under 
section 1401(b)(2) is equal to the product of: the difference 
between the average crop revenue program guarantee and the 
actual state revenue; 85 percent of the base acres on the farm 
for the covered commodity; the ratio of APH on the farm to the 
expected state yield; and 90 percent. The Secretary is required 
to make recourse loans available to producers who participate 
in this program. (Section 1401)
      The House bill contains no comparable provision.
      The Conference substitute deletes this provision.

(21) Sugar program

      The House bill maintains many provisions of current law 
as it relates to the sugar program. However, the loan rate for 
raw cane sugar is increased to 18.5 cents per pound and the 
loan rate for refined beet sugar is increased to 23.5 cents per 
pound. The House bill eliminates the authorization of the 
Secretary to reduce loan rates if there were negotiated 
reductions in export and domestic subsidies of other major 
sugar producing countries. (Section 1301)
      The House bill extends current law with regard to the 
term of the loan and the nonrecourse nature of the loan. 
Processors are to make adequate assurances that payments to 
growers will be proportional to the loan values, and the 
Secretary is authorized to set minimums for such payments.
      The Secretary is required to operate the sugar program, 
to the maximum extent practicable, at no cost to the Federal 
government. If the producer agrees to reduce production under 
an inventory disposition program, and such reduced production 
involves sugar beets or sugarcane already planted, the sugar 
beets or sugarcane produced on diverted acres may not be used 
for any commercial purpose other than as a bioenergy feedstock.
      The House bill requires the Secretary to collect 
information on the production, consumption, stocks and trade of 
sugar in Mexico, including United States exports of sugar to 
Mexico; and publicly available information on Mexican 
production, consumption, and trade of high fructose corn 
syrups, including United States exports of high fructose corn 
syrups to Mexico.
      The sugar program is extended through the 2012 crop year, 
and the program for the 2007 crop will be operated as under 
current law.
      The Senate amendment also maintains many provisions of 
current law as it relates to the sugar program. However, the 
loan rate for raw cane sugar is increased to 18.25 cents per 
pound for 2009, 18.50 cents per pound for 2010, 18.75 cents per 
pound for 2011, and 19.00 cents per pound for 2012; and the 
loan rate for refined beet sugar is set at 128.5 percent of the 
loan rate for raw cane sugar. (Section 1501)
      The Senate amendment requires that the Secretary collect 
information on the production, consumption, stocks and trade of 
sugar in Mexico, including United States exports of sugar to 
Mexico; and publicly available information on Mexican 
production, consumption, and trade of high fructose corn 
syrups.
    All other provisions of the Senate amendment are the same 
as the House bill.
      The Conference substitute adopts the Senate provision 
with a modification to the loan rate. The loan rate for raw 
cane sugar will increase to 18.25 cents per pound for 2009, 
18.50 cents per pound for 2010, 18.75 cents per pound for 2011, 
and 18.75 cents per pound for 2012. The marketing loan rate for 
refined beet sugar is set equal to 128.5 percent of the loan 
rate for raw cane sugar beginning with the 2009 crop year.
      The Conference amendment retains a requirement that the 
Secretary collect information on the production, consumption, 
stocks and trade of sugar in Mexico, including United States 
exports of sugar to Mexico; and publicly available information 
on Mexican production, consumption, and trade of high fructose 
corn syrups. The Managers expect such information on Mexican 
trade of high fructose corn syrups to include both imports and 
exports. (Section 1401)

(22) United States membership in the International Sugar Organization

      The House bill requires the Secretary of Agriculture to 
work with the Secretary of State to restore U.S. membership 
within the International Sugar Organization within one year 
from date of enactment of this bill. (Section 1302)
      The Senate amendment requires the Secretary of 
Agriculture to work with the Secretary of State to restore, to 
the maximum extent practicable, U.S. membership within the 
International Sugar Organization within one year from date of 
enactment of this bill. (Section 1504(l))
      The Conference substitute adopts the House provision. 
(Section 1402)

(23) Flexible marketing allotments for sugar

      The House bill extends and amends the provisions of the 
Agricultural Adjustment Act of 1938 requiring the Secretary to 
establish marketing allotments for the 2008 through 2012 crops 
of domestically produced sugar to balance supply and demand and 
avoid loan forfeitures. (Section 1303)
      The House bill adds a definition of ``human consumption'' 
in the context of sugar for human consumption, as meaning sugar 
in human food, beverages, or similar products. The House bill 
defines the term ``market'' as meaning to sell or otherwise 
dispose of including the forfeiture of sugar under the loan 
program, the movement of raw cane sugar into the refining 
process, and the sale of sugar for the production of ethanol or 
other bioenergy product, if the disposition of the sugar is 
administered by the Secretary.
      The Secretary is required to establish at the beginning 
of each crop year marketing allotments at a level to maintain 
raw and refined sugar prices above forfeiture levels. The 
overall allotment quantity is to be not less than 85 percent of 
the estimated quantity of sugar for domestic human consumption. 
The marketing allotments are to apply to the marketing by 
processors of sugar intended for domestic human consumption, 
with exceptions to facilitate the export of sugar, to enable 
another processor to fulfill an allocation established for that 
processor, or for uses other than domestic human consumption. 
Processors are prohibited from marketing for domestic human 
consumption a quantity in excess of the allocation, with the 
same exceptions as current law.
      The House bill strikes the provision requiring the 
Secretary to suspend allotments when the level of imports will 
exceed 1.532 million short tons and retains the procedures for 
the Secretary to reassign allotments if processors cannot 
fulfill the allocations, and specifies that any resulting 
imports must be in the form of raw cane sugar.
      The House bill includes the definition of ``seed'' for 
purposes of allotments in proportionate share States. The House 
bill authorizes the Secretary to transfer the acreage base 
history of a sugarcane farm to any other parcels of land of the 
applicant, in order to establish proportionate shares. 
Sugarcane base acreage that has been, or is, converted to non-
agricultural use may be transferred to other land suitable for 
the production of sugarcane that can be delivered to a 
processor in a proportionate share State.
      The House bill includes transfers of mill allocations 
under the procedures for appeals to the Secretary regarding 
allotments, and eliminates an obsolete special appeal procedure 
regarding beet sugar allocations.
      The House bill extends the sugar allotments through the 
2012 crop year. Current law shall apply to flexible marketing 
allotments for the 2007 crop year for sugar.
      The Senate amendment is similar to the House bill, with 
technical changes with regard to definitions and a modification 
to indicate that the exception for uses other than domestic 
human consumption does not include the sale of sugar for the 
production of ethanol or other bioenergy under the Feedstock 
Flexibility Program. (Section 1504)
      The Conference substitute adopts the Senate provision 
with a modification to clarify that should there be a sale of a 
factory possessing an allocation of beet sugar, then the 
Secretary is to transfer to the buyer the allocation that has 
been agreed upon by the buyer and seller, assuming such an 
agreement has been reached. Additionally, it clarifies that 
following a conversion of sugarcane base acreage to a 
nonagricultural use in a proportionate share state, the 
Secretary is to notify the affected landowners of the 
transferability of the applicable base not later than 90 days 
after the agency becomes aware of the conversion. (Section 
1403)

(23A) Administration of tariff rate quotas

      The House bill provides that the Secretary is to 
establish at the beginning of the quota year, the tariff-rate 
quotas for raw cane sugar and refined sugars at the minimum 
level necessary to comply with obligations under international 
trade agreements approved by Congress. The Secretary may take 
action to increase the supply of sugar on or after April 1 of 
each fiscal year, with certain constraints on that action. 
Before April 1, the Secretary is to take action to increase the 
supply of sugar only if there is an emergency shortage of sugar 
in the United States market that is caused by war, flood, 
hurricane, or other natural disaster or other similar event. 
The House bill would also require the Secretary to establish 
orderly shipping patterns for sugar imports. (Section 1303)
      The Senate amendment is similar to the House bill except 
the Senate amendment does not contain the provision requiring 
the Secretary to establish shipping patterns. (Section 1504)
      The Conference substitute adopts the Senate provision. 
(Section 1403)

(23B) Storage facility loans

      The Senate amendment prohibits penalties for prepayment 
of sugar storage facility loans. (Section 1502)
      The House contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1404)

(23C) Commodity Credit Corporation storage payments

      The Senate amendment establishes rates for the storage of 
forfeited sugar for each of the 2008 through 2011 crop years in 
an amount that is not less than 15 cents per hundredweight of 
refined sugar per month or 10 cents per hundredweight of raw 
cane sugar per month. For each of the 2012 and subsequent crop 
years, establishes storage payments at rates in effect at the 
time of enactment. (Section 1503)
      The House contains no comparable provision.
      The Conference substitute [adopts the Senate provision]. 
(Section 1405)

(23D) Sense of the Senate regarding NAFTA sugar coordination

      The Senate amendment provides a sense of the Senate that 
the United States and Mexico should coordinate their respective 
sugar policies and that the United States should consult with 
Mexico on policies to maximize benefits for growers, processors 
and consumers. (Section 1505)
      The House contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(24) Dairy Product Price Support Program

      The House bill requires the Secretary to support the 
price of cheddar cheese, butter, and nonfat dry milk by 
purchasing such products at specified prices: cheddar cheese in 
blocks at not less than $1.13 per pound; cheddar cheese in 
barrels at not less than $1.10 per pound; butter at not less 
than $1.05 per pound; and nonfat dry milk at not less than 
$0.80 per pound. If net removals of cheese, butter or nonfat 
dry milk exceed specific limits for 12 consecutive months, the 
Secretary may reduce the purchase prices of that commodity 
during the month that immediately follows. The prices that the 
Secretary pays under this section for the commodities must be 
uniform across the country. The Secretary may sell cheese, 
butter, or nonfat dry milk for unrestricted use from 
inventories of the Commodity Credit Corporation at prevailing 
market prices, but not less than 110 percent of the prices 
specified in the Purchase Price subsection. (Section 1401)
      The Senate amendment requires the Secretary to support 
the price of cheddar cheese, butter, and nonfat dry milk by 
purchasing such products at specified prices: cheddar cheese in 
blocks at not less than $1.13 per pound; cheddar cheese in 
barrels at not less than $1.10 per pound; butter at not less 
than $1.05 per pound; and nonfat dry milk at not less than 
$0.80 per pound. The prices that the Secretary pays under this 
section for the commodities must be uniform across the country. 
The Secretary may sell cheese, butter, or nonfat dry milk for 
unrestricted use from inventories of the Commodity Credit 
Corporation at prevailing market prices, but not less than 110 
percent of the prices specified in the Purchase Price 
subsection. (Section 1601)
      The Conference substitute adopts the House provision with 
an amendment to delete an unnecessary reference to Commodity 
Credit Corporation funding. (Section 1501)

(25) Dairy Forward Pricing Program

      The House bill requires the Secretary to establish the 
dairy forward pricing program, which authorizes milk producers 
to voluntarily enter into forward price contracts with milk 
handlers for milk that is not Class I. Under such forward price 
contracts, prices received by milk producers and cooperatives 
will be deemed to satisfy all regulated minimum milk price 
requirements. Milk handlers will be prohibited from requiring 
participation in a forward price contract, and the Secretary is 
required to investigate complaints and to take appropriate 
action if evidence of coercion is found. No forward price 
contract can be entered into after September 30, 2012, or 
extend beyond September 30, 2015. (Section 1402)
      The Senate amendment amends the former dairy forward 
pricing pilot program to establish a program that allows milk 
producers and cooperative associations to voluntarily enter 
into forward price contracts with milk handlers with 
protections for producers that are similar to the protections 
provided in the House bill. (Section 1606)
      The Conference substitute adopts the House provision. 
(Section 1502)

(26) Dairy Export Incentive Program

      The House bill reauthorizes the dairy export incentive 
program until December 31, 2012, and authorizes the Secretary 
to issue rules to ensure that each year the maximum volume of 
dairy product exports allowable within the United States' 
obligations under the Uruguay Round Agreements is exported. 
(Section 1403)
      The Senate amendment reauthorizes the dairy export 
incentive program until December 31, 2012. (Section 1603)
      The Conference amendment adopts the House provision.

(27) Revision of Federal marketing order amendment procedures

      The House bill requires the Secretary, upon receiving a 
written request for a hearing to amend a milk marketing order, 
issue a denial of the request or issue a notice of the hearing, 
and stipulates the timeframe for a hearing. Notice for a 
hearing on a proposed amendment to a marketing order must be 
provided not less than three days before the date of the 
hearing. The Secretary is required to issue a recommended 
decision on a proposed amendment to a milk marketing order no 
more than 90 days after the date set for the submission of 
post-hearing findings, conclusions and written arguments. 
Further, the House provision requires the final decision to be 
issued no more than 60 days after the recommended decision was 
issued. If the Secretary receives a request for a hearing on a 
proposed amendment to a milk marketing order within 90 days 
after announcing a decision on a previously proposed amendment 
to the same order, and the two proposed amendments are 
essentially the same, the Secretary is not required to call a 
hearing. (Section 1404)
      The Senate amendment requires the Secretary to issue 
supplemental rules of practice within 60 days of enactment and 
establishes 5 provisions to be included in the rules of 
practice. The Secretary, upon receiving a proposal for a 
hearing regarding a milk marketing order, is required to issue 
an action plan and expected timeframes for completion of the 
hearing not more than 180 days after the date of the notice; 
issue a request for additional information regarding the 
proposal; or issue a denial of the request. The Senate 
amendment establishes a time limit of 90 days after the 
deadline for submitting post-hearing briefs for USDA to issue a 
recommended decision on proposed amendments to milk marketing 
orders and to issue a final decision within 60 days after the 
deadline for submission of comments and exceptions to the 
recommended decision. The Senate amendment authorizes industry 
assessments to supplement appropriated funds if necessary to 
improve or expedite rulemaking; and authorizes the use of 
informal rulemaking to amend orders, other than provisions of 
orders that directly affect milk prices. The Secretary is 
required, as part of any hearing to adjust make allowances, to 
determine the average monthly prices of feed and fuel incurred 
by dairy producers in the relevant marketing area and to 
consider those prices in determining whether or not to adjust 
make allowances. (Section 1605)
      The Conference substitute adopts the Senate provision 
with amendments to reduce the amount of time allowed for 
completion of a hearing to 120 days, provide a limit of up to 
60 days for submission of post-hearing briefs, delete specific 
requirements related to the content of the hearing action plan; 
and adopt the House language designed to avoid duplicative 
hearings for similar petitions received within 90 days of the 
announcement of a decision on a previously proposed amendment. 
The conference substitute also sunsets the applicability of the 
Senate provision related to hearings involving adjustments to 
make-allowances coincident with the Food, Conservation, and 
Energy Act of 2008.

(28) Dairy Indemnity Program

      The House bill reauthorizes the dairy indemnity program 
through September 30, 2012. (Section 1405)
      The Senate amendment reauthorizes the dairy indemnity 
program through September 30, 2012. (Section 1603)
      The Conference substitute adopts the House provision.

(29) Extension of Milk Income Loss Contract Program

      The House bill reauthorizes the MILC program through 
2012, under the same terms as current law. (Section 1406)
      The Senate amendment amends the MILC program for the 
period October 1, 2008 through August 31, 2012 by increasing 
the payment factor from 34 percent to 45 percent and by 
increasing the annual eligible payment quantity from 2.4 
million pounds to 4.15 million pounds. (Section 1602)
      The Conference substitute provides for the continuation 
of the program. For the period from October 1, 2008 through 
August 31, 2012, the payment factor is increased to 45 percent, 
the annual eligible payment quantity is increased to 2,985,000 
pounds, and the $16.94 per hundredweight price is adjusted 
whenever the National Average Dairy Feed Ration Cost for a 
month is greater than $7.35 per hundredweight by 45 percent of 
the percentage increase in the feed ration cost. Beginning 
September 1, 2012, the trigger for the adjustment in the price 
used to determine the payment rate is set at $9.50 per 
hundredweight. (Section 1506)

      FEED PRICE RATIOS: UNITED STATES, MARCH 2008 WITH COMPARISONS
------------------------------------------------------------------------
                                       2007               2008
       Feed Price Ratio\1\        --------------------------------------
                                       Mar          Feb          Mar
------------------------------------------------------------------------
Broiler-Feed: Pounds of Broiler            5.9         *3.9          3.8
 Grower Feed equal in value to 1
 pound of broiler, live weight\2\
Market Egg Feed: Pounds of Laying          9.1        *11.1         11.4
 Feed equal in value to 1 dozen
 eggs\3\.........................
Hog-Corn: Bushels of Corn equal           13.1         *9.3          8.5
 in value to 100 pounds of hog,
 live weight.....................
Milk-Feed: Pounds of 16% Mixed            2.39        *2.24         2.05
 Dairy Feed equal in value to 1
 pound of Whole Milk\4\..........
Steer & Heifer-Corn: Bushels of           28.5        *20.8         19.4
 Corn equal in value to 100
 pounds of Steer & Heifers, live
 weight..........................
Turkey-Feed: Pounds of Turkey              5.5         *3.6          3.8
 Grower equal in value to 1 pound
 of Turkey, live weight\5\.......
------------------------------------------------------------------------
\1\Effective January 1995, prices of commercial prepared feeds are based
  on current U.S. prices received for corn, soybeans, alfalfa hay, and
  all wheat.
\2\The price of commercial prepared broiler feed is based on current
  U.S. prices received for corn and soybeans. The modeled feed uses 58
  percent corn and 42 percent soybeans.
\3\The price of commercial prepared layer feed is based on current U.S.
  prices received for corn and soybeans. The modeled feed uses 75
  percent corn and 25 percent soybeans.
\4\The price of commercial prepared dairy feed is based on current U.S.
  prices received for corn, soybeans, and alfalfa. The modeled feed uses
  51 percent corn, 8 percent soybeans, and 41 percent alfalfa.
\5\The price of commercial prepared turkey feed is based on current U.S.
  prices received for corn, soybeans, and wheat. The modeled feed used
  51 percent corn, 28 percent soybeans, and 21 percent wheat.

*Revised.


             PRICES USED TO CALCULATE FEED PRICE RATIOS: UNITED STATES, MARCH 2008 WITH COMPARISONS
----------------------------------------------------------------------------------------------------------------
                                                                                 Entire Month        Preliminary
                 Commodity                               Unit             --------------------------------------
                                                                             Mar 2007     Feb 2008     Mar 2008
----------------------------------------------------------------------------------------------------------------
Broilers, Live............................  Lb...........................        0.500        0.500        0.510
Eggs, Market..............................  Doz..........................        0.681        1.220        1.300
Hogs, All.................................  Cwt..........................        44.90        42.20        41.20
Milk, All.................................  Cwt..........................        15.60        19.10        18.30
Steers and Heifers........................  Cwt..........................        97.70        94.20        93.80
Turkeys, Live.............................  Lb...........................        0.443        0.475        0.529
Corn......................................  Bu...........................         3.43         4.53         4.83
Hay, Alfalfa, Baled.......................  Ton..........................       121.00       138.00       143.00
Soybeans..................................  Bu...........................         6.95        11.70        11.90
Wheat, All................................  Bu...........................         4.75         9.98        11.70
----------------------------------------------------------------------------------------------------------------


                    FEEDER LIVESTOCK: PRICES PAID, UNITED STATES, MARCH 2008 WITH COMPARISONS
----------------------------------------------------------------------------------------------------------------
                                                                               2007               2008
                 Commodity                               Unit             --------------------------------------
                                                                               Mar          Feb          Mar
----------------------------------------------------------------------------------------------------------------
Feeders and Stockers Cattle and Calves....  Cwt..........................      $105.40     *$103.90      $101.60
Feeder Pigs...............................  Cwt..........................       157.00       113.00       115.00
----------------------------------------------------------------------------------------------------------------
*Revised.

(30) Dairy Promotion and Research Program

      The House bill extends the authority to expend funds to 
develop foreign markets through fiscal year 2012; amends the 
definition of ``United States'' to include Alaska, Hawaii, the 
District of Columbia, and the Commonwealth of Puerto Rico for 
both promotion and research programs; and provides for a refund 
of assessments for importers on contracts in effect prior to 
July 26, 2007, for a period of one year after the date of 
enactment. (Section 1407)
      The Senate amendment extends the authority to expend 
funds to develop foreign markets through fiscal year 2012. 
(Section 1604)
      The Conference substitute adopts the House provision with 
an amendment to reduce the rate of assessment on imported dairy 
products to 7.5 cents per hundredweight. The substitute also 
amends the Dairy Promotion Stabilization Act of 1983 to 
authorize the Secretary to establish by regulation the time and 
method of importer payments under the Act. (Section 1507)
      The Farm Security and Rural Investment Act of 2002 
amended Section 112 of the Dairy Promotion Stabilization Act of 
1983 (7 U.S.C. 4503(d)) to require that, ``The Secretary, in 
consultation with the United States Trade Representative, shall 
ensure that the order is implemented in a manner consistent 
with the international trade obligations of the Federal 
Government.'' The Managers expect the Secretary to consult with 
the United States Trade Representative to ensure that any 
action taken pursuant to this section is consistent with the 
bilateral, regional and multilateral trade obligations of the 
Federal Government.

(31) Report on Department of Agriculture reporting procedures for 
        nonfat dry milk

      The House bill requires the Secretary to submit a report 
to Congress within 90 days of enactment of this Act regarding 
USDA's reporting procedures for nonfat dry milk and the impact 
of those procedures on Federal milk marketing order minimum 
prices during the period July 1, 2006, through the date of 
enactment of this Act. (Section 1408)
      The Senate amendment is the same as the House provision 
except it requires the Secretary to submit the report to the 
House Committee on Agriculture and the Senate Committee on 
Agriculture, Nutrition, and Forestry. (Section 1607)
      The Conference substitute adopts the Senate provision. 
(Section 1508)
      The Managers are encouraged by the corrective action 
agreed to by the Department in connection with a prior 
misreporting of nonfat dry milk prices and encourage the 
Secretary to submit periodic implementation progress reports to 
the House Committee on Agriculture and the Senate Committee on 
Agriculture, Nutrition, and Forestry. While the Senate 
provision to require USDA to formally designate an official to 
be in charge of coordinating dairy oversight was not included 
in the conference report, the Managers intend that USDA 
continue with the steps to improve coordination of dairy 
oversight within the Department and with other relevant 
agencies as necessary to ensure accurate price determinations.

(32) Federal Milk Marketing Order Review Commission

      The House bill, subject to the availability of funds, 
establishes the Federal Milk Marketing Order Review Commission 
to conduct a comprehensive review and evaluation of the current 
Federal milk marketing order system and non-Federal milk 
marketing order systems. The House bill provides for the 
appointment of 18 Commission members; requires the commission 
to issue a report to Congress and the Secretary of Agriculture 
with the results of the review and evaluation conducted under 
this section; and stipulates that the Commission is wholly 
advisory in nature, and the recommendations it issues are non-
binding. (Section 1608)
      The Senate amendment is similar to the House provision 
except it provides additional areas for the Commission to 
evaluate and modifies the appointment of Commission members. 
(Section 1608)
      The Conference substitute adopts the House provision 
except the objectives of the Commission are modified, the 
number of commission members is reduced to 14 and all 
Commission members will be appointed by the Secretary.
      The Managers are aware of a number of dairy reform 
proposals being advocated at the State, regional and National 
level to simplify and improve the Federal milk marketing order 
system. The Managers intend that the Commission should evaluate 
as many of these proposals as practicable. Specifically, the 
Commission should analyze and report on the potential economic 
benefits of establishing a 2-class system of classified milk 
consisting of a fluid milk class and a manufacturing grade milk 
class with the price of both classes determined using similar 
component prices of butterfat, protein, and other solids. The 
Commission should also evaluate the economic impacts of 
proposals to eliminate advance pricing that is currently used 
to calculate the prices of Class I and Class II skim milk and 
instead use 4-week component prices that are used to calculate 
prices for Class III and Class IV milk.

(32A) Mandatory reporting of dairy commodities

      The Senate amendment amends current law to require 
corporate officers or officially-designated representatives of 
each dairy processor (other than those that process less than 1 
million pounds of dairy products a year) to report to the 
Secretary on each daily reporting day such price, quantity, and 
product characteristics as the Secretary determines appropriate 
with respect to those package sizes used to establish minimum 
prices for Class III or Class IV milk under Federal milk 
marketing orders. The Senate amendment requires the Secretary 
to make the information reported available to the public on the 
same day as the information is reported, and requires dairy 
manufacturers to report, at periodic intervals, the quantities 
of dairy products in storage. (Section 1609)
      The House bill has no comparable provision.
      The Conference substitute provides authority for the 
Secretary to establish an electronic reporting system, subject 
to the availability of funds; and requires the Secretary to 
increase the frequency of mandatory reporting of sales of dairy 
products once the electronic reporting system is in place. 
(Section 1510)

(32B) Additional mandatory dairy reporting

      The Senate amendment amends current law as amended by 
section 1609 to require regular audits and comparisons with 
other related dairy market statistics on at least a quarterly 
basis. (Section 1610)
      The House bill has no comparable provision.
      The Conference substitute provides for quarterly audits 
of information submitted or reported and comparison of such 
information with related dairy market statistics, and 
incorporates this requirement in the previous section. (Section 
1510)

(33) Administration generally

      The House bill authorizes the use of the Commodity Credit 
Corporation in carrying out the provisions of title I, and, 
generally, continues other administrative provisions of the 
2002 farm bill. (Section 1501)
      The Senate amendment includes the same provisions as the 
House measure, and includes an additional provision to exempt 
producers who have an option to receive advance direct and 
partial counter-cyclical payments from constructive receipt of 
those payments. (Section 1701)
      The Conference substitute adopts the Senate provision 
with an amendment to provide for interim regulations to 
implement the payment limitations and adjusted gross income 
provisions. (Section 1601)
      Beginning with the 2009 crop, the Conference substitute 
includes significant reforms to payment limitation and adjusted 
gross income provisions. This is a complex and long-standing 
area of the law and regulations, many of which have been in 
effect for decades. The continuity and predictability of these 
regulations is important to the economic stability of farm 
operators, the lenders that finance them, the input suppliers 
who provide their seed, feed, fertilizer and other inputs, and 
indeed for the agricultural economy as a whole. In order to 
avoid undue disruption of all of these sectors of the 
agricultural economy, the Managers expect USDA to provide 
adequate notice and opportunity for comment, consistent with 
the interim rule process, for Sections 1603 and 1604, to ensure 
these changes are implemented in a manner that is least 
disruptive to producers and other stakeholders, and that allows 
the programs to continue to achieve their objectives.
      The Managers further expect that in the rulemaking 
process, USDA will give priority to addressing matters within 
the scope of these legislative changes and guidance in this 
Statement in order to minimize program and regulatory 
disruption, to maximize continuity and predictability, and to 
focus the scarce resources of the Department of Agriculture on 
implementing these and other specific regulatory requirements 
in this bill.
      The Managers also expect that during the interim rule 
process USDA will amend the regulations as necessary or 
appropriate to implement these statutory changes consistent 
with the intent and guidance provided by the Managers 
throughout this Statement. The Managers expect the notice and 
comment period regarding the implementation of the AGI and 
payment limitation provisions to include issues such as, family 
definitions, denial of program benefits, notification of 
interests in operation, changes in farming operations, actively 
engaged, schemes and devices, apportionment of income for joint 
filers, and spousal eligibility. The Managers expect the 
Secretary to implement the AGI provision in a manner that 
provides equitable treatment, to the maximum extent 
practicable, to all producers.

(34) Suspension of permanent price support authority

      The House bill provides the same as current law for 2008-
2012 crops and for milk through December 31, 2012. (Section 
1502)
      The Senate amendment provides the same as the House 
measure except does not include peanuts. (Section 1702)
      The Conference substitute adopts the House provision. 
(Section 1602)

(35) Payment limitations

      The House bill extends payment limitations in the 2002 
farm bill, with revisions including the elimination of 
limitations on marketing loan benefits and loan deficiency 
payments. It amends the Food Security Act of 1985 to limit the 
total amount of direct payments that a person or legal entity 
may receive in a crop year to $60,000, excluding peanuts; and 
counter-cyclical payments that a person or legal entity may 
receive in a crop year to $65,000, excluding peanuts. For 
peanuts, a person or entity may not receive more than $60,000 
for direct payments, and no more than $65,000 for counter-
cyclical payments. The House bill defines the term ``legal 
entity'' as an entity that owns land or an agricultural 
commodity, or produces an agricultural commodity; and the term 
``person'' as a natural person, and does not include a legal 
entity. The House bill provides for direct attribution for 
payments, by requiring the Secretary to promulgate regulations 
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. It 
provides that every payment made directly to a person will be 
combined with the person's pro rata interests in payments 
received by a legal entity in which the person has an ownership 
interest. It further provides that for every payment made to a 
legal entity, the payment will be attributed to those persons 
with an ownership interest in the entity traced through four 
levels of ownership in the entities, and includes a framework 
for that attribution. (Section 1503)
      The Senate amendment is similar to the House measure, 
except it establishes payment limitations under the new act at 
$40,000 for a combination of both traditional direct and 
average crop revenue fixed payments, and $60,000 for counter-
cyclical payments and the revenue portion of average crop 
revenue payments. It strikes the definition of ``loan 
commodity, thereby also terminating the limitations on 
marketing loan gains and loan deficiency payments,'' adds 
definitions for ``family member'', ``legal entity'', and 
``person,'' and includes spouses in the definition of family 
member. The Senate amendment provides similar direct 
attribution requirements, except payments made to a legal 
entity shall be reduced proportionately by an amount that 
represents the direct or indirect ownership in the legal entity 
that has otherwise exceeded the applicable payment limitation. 
(Section 1703)
      The Conference substitute adopts the Senate provision 
with an amendment that provides a $65,000 payment limit for 
counter-cyclical payments, a reduced direct payment limit for 
participants in the ACRE program to reflect the amount the 
direct payment is cut as a condition to participate in ACRE, 
and a limit in the amount of counter-cyclical and ACRE payments 
that reflects the $65,000 limit plus the amount of that the 
direct payment limit is reduced. The counter-cyclical limits 
and ACRE limits are combined for those producers who 
participate in ACRE because producers would be eligible to 
participate in the counter-cyclical program on one farm and the 
average crop revenue election on a separate farm. (Section 
1603)
      The change in the administration of the payment limit 
provisions from one based on separate ``person'' determinations 
to one that attributes income among persons and entities, based 
upon their share of participation, is, by design, less 
susceptible to manipulation by changing the farming structure 
to introduce multiple farming entities.
      With this change, many farming operations that had been 
approved under current law, may wish to reorganize such 
operations for estate or tax purposes or for other reasons. It 
is the intent of the Managers that, consistent with the action 
taken by the Congress with the passage of the significant 
changes in farm program participation in 1987, that during the 
2008 and 2009 program years, persons should not be penalized 
for changing their farming operation structure given such a 
significant change in the law administering payment 
limitations.

(35A) Special rules

      The House bill amends section 1001 of the Food Security 
Act of 1985 by inserting a new subsection (e) to essentially 
continue current rules for minor children, marketing 
cooperatives, trusts and estates, cash rent tenants, and 
federal agencies. For state, local governments, and their 
political subdivisions, it prohibits them from receiving direct 
and counter-cyclical payments unless they are the producer of 
all crops on the farm and the proceeds of the production 
benefits a public school or they have an existing share crop 
lease. If the state, local government, or political subdivision 
is the producer, all such qualified entities in a state have a 
combined limit of one entity for the payments they receive. For 
share crop leases, if the land is used to maintain a public 
school, the state, local government, or political subdivision 
may continue to receive payments under current law until the 
lease expires. It provides for a 2-5 year denial of benefits 
for evasion of payment limits, including the failure to 
disclose material information, and that benefits be denied on a 
pro-rata basis according to ownership. In addition, the 
language provides that the addition of a family member under 
the provisions of section 1001A will be considered to be a bona 
fide and substantive change. This language encompasses the 
addition of a spouse to a farming operation, given the new 
provisions in section 1001A concerning spouses. (Section 1503)
      The Senate amendment provides the same as the House 
measure, except it maintained current law with regard to 
production on land owned by state and local governments when 
the proceeds are used to maintain a public school. The Senate 
amendment expands the enforcement capability of the Secretary 
and provides for extended penalties for individuals or entities 
that perpetuate a fraud or a scheme or device in order to 
exceed the applicable limit on payments. Persons or entities 
that commit fraud or equally serious actions can be subjected 
to a five-year denial of program benefits. Any member of a 
legal entity that participates in a scheme or device to evade 
the limitations shall be jointly and severally liable for any 
amounts determined to be payable to the Secretary. The 
Secretary may partially or fully release from liability any 
person who cooperates with the Secretary in enforcing payment 
limitation provisions. (Section 1703)
      The Conference amendment adopts the Senate provision with 
an amendment to provide a single, combined statewide payment 
limit of $500,000 upon all state and local governments and 
political subdivisions that receive farm program payments. This 
limit would not apply to states with populations less than 1.5 
million. (Section 1603)
      It is the intent of the Managers that the addition of a 
spouse (also a family member) will be considered to be bona 
fide and substantive--just as with the addition of any family 
member.

(35B) Three-entity rule; actively engaged in farming; denial of program 
        benefits

      The House bill amends the Food Security Act of 1985 to 
repeal the three-entity rule and to require notification of 
interests. Each entity or person receiving payments is to 
provide the Secretary the name and social security number of 
each individual, or the name and tax ID number of each entity, 
that holds or acquires an ownership interest; and for each 
person, provide such information for each entity in which the 
person holds an ownership interest. (Section 1503)
      The Senate amendment provides the same as the House 
measure. (Section 1703)
      The Conference amendment adopts the Senate provision with 
an amendment to replace ``presented false information that was 
material'' with ``failed to disclose material information'' and 
to specify that the provisions apply to any legal entity and 
any member of any legal entity. (Section 1603)

(35C) Actively engaged in farming

      The House bill amends the Food Security Act of 1985 to 
essentially continue the provisions that recipients be 
``actively engaged'' in farming. Existing special classes of 
actively engaged participants are continued, with the exception 
that as long as one spouse is determined to be actively 
engaged, the other spouse shall be determined to have met the 
requirements of personal labor or active personal management. 
(Section 1503)
      The Senate amendment provides the same as the House 
measure. (Section 1703)
      The Conference substitute adopts the Senate provision. 
(Section 1603)
      Current law concerning spouses made it very difficult for 
a spouse to be considered to be a separate person for the 
purpose of the application of the payment limits. In adopting 
the provision that if one spouse has been determined to be 
``actively engaged,'' then the other spouse will be deemed to 
have made a significant contribution of active labor or active 
personal management to the operation as required by section 
1001A(b)(2)(A)(i)(II), it is the intent of the Managers that 
this provision recognize the valuable contributions made by the 
spouse in a family farming operation as well as the significant 
value of these contributions to the overall success of family 
farming operations in America. It is further the intent of the 
Managers that in implementing this section, the Secretary shall 
consider such automatic ``significant'' contribution of active 
labor or active personal management to be commensurate with at 
least a 50% share in the profits and losses of the farming 
operation and to be at risk. It is the intent of the Managers 
to end the discrimination against spouses of farming families 
and reflect their true value to the farming operation. By 
assigning a ``significant'' level of contribution of labor or 
active management, the Conference Substitute requires the 
spouse only to make a significant contribution of capital, 
equipment, or land in order to be considered actively engaged.

(35D) Transition

      The House bill provides that the current provisions of 
Section 1001 of the Food Security Act of 1985 will remain 
applicable to the 2007 crop. (Section 1503)
      The Senate amendment provides the same as the House 
measure. (Section 1703)
      The Conference substitute provides that the current 
provisions of sections 1001, 1001A, and 1001B of the Food 
Security Act of 1985 will remain applicable to the 2007 and 
2008 crops. (Section 1603)

(36) Adjusted gross income limitation

      The House bill extends the adjusted gross income 
limitation to programs under this Act and extends the effective 
period through the 2012 crop year. (Section 1504(a))
      It also amends section 1001D of the Food Security Act of 
1985, beginning with the 2008 crop year, to require that 
individuals or entities have an average adjusted gross income 
(AGI) not exceeding $1 million in order to receive program 
payments. Further provides that an individual or entity with an 
AGI in excess of $500,000 shall not be eligible for benefits, 
unless at least 66.66 percent of the AGI is derived from 
farming, ranching, or forestry operations, as determined by the 
Secretary. (Section 1504(b))
      Modified AGI limits applicable to the 2008 through 2012 
crop years. (Section 1504)
      The Senate amendment extends the effective period through 
the 2012 crop year. (Section 1704(a))
      It amends section 1001D the Food Security Act of 1985 to 
lower the applicable average adjusted gross income (AGI) limit 
for recipients of direct or counter-cyclical payments, 
marketing loan gain or loan deficiency payments and average 
crop revenue payments from the current level of $2.5 million to 
$1,000,000 for the 2009 crop year and to $750,000 for the 2010 
and subsequent crop years. Individuals or entities that receive 
66.66% of their income from farming, ranching or forestry 
operations are exempted from this restriction. The Senate 
amendment establishes the income limitation for conservation 
programs at the current level of $2.5 million, unless not less 
than 75 percent of the AGI is derived from farming, ranching, 
or forestry operations. (Section 1704(c))
      The Senate amendment provides that existing adjusted 
gross income provisions of the Food Security Act shall continue 
to apply with respect to the 2007 and 2008 crops. (Section 
1704(d))
      Authorizes the allocation of adjusted gross income among 
the individuals filing joint returns provided the allocation is 
supported by a certified public accountant or attorney. 
(Section 1704(b))
      The Conference substitute provides an average adjusted 
gross nonfarm income cap of $500,000. If the average AGI for 
nonfarm income of a person or legal entity exceeds $500,000, 
they become ineligible for a host of farm programs, including 
the non-insured assistance program and the new disaster 
program. The Substitute also provides for an average adjusted 
gross farm income cap of $750,000. If a person's or legal 
entity's average farm AGI exceeds $750,000, then they become 
ineligible for direct payments.
      The Conference substitute provides an average adjusted 
gross nonfarm income cap of $1,000,000 for conservation 
programs unless two-thirds or more of the income of the person 
or legal entity is average adjusted gross farm income. The 
Secretary is authorized to waive the limitation on a case-by-
case basis if the Secretary determines that environmentally 
sensitive land of special significance would be protected. 
(Section 1604)
      New section 1001D(a)(3) provides that married couples 
filing joint returns may allocate appropriately their income 
among themselves for the purposes of applying both the new 
$750,000 adjusted gross farm income test and the new $500,000 
nonfarm income test to each individual spouse. The section 
requires that to secure this allocation married couples must 
provide a professional third party certification of the method 
used to apportion the income, and the Secretary must determine 
that the submission is appropriate. The Managers expect the 
Secretary to apply this provision carefully and that its impact 
should be limited to the unique and special circumstances of 
each individual case.
      The new provisions under section 1001D will take effect 
in 2009 and will be based on the 3 tax years preceding the most 
immediate preceding tax year. Since these tax years occur in 
the past and income decisions regarding them were based on past 
circumstances the Managers expect the Secretary to allow 
modifications to the allocation of income in these past years 
in order to implement the new income requirements in as least 
disruptive manner as possible.
      The Conference substitute strengthens the certification 
requirements and ensures the Secretary can take appropriate 
action against a person or legal entity that fails to provide 
certifications concerning their average adjusted gross income, 
average adjusted gross farm income and average adjusted gross 
nonfarm income. Certifications are required to be provided at 
least once every three years. The Managers intend for the 
Secretary to deny program benefits to a person or legal entity 
that does not provide the certifications required in section 
1001D, as amended, until such time as the certifications are 
actually provided. The Secretary is also to establish audit 
procedures that are designed to ensure that audits are directed 
toward those persons or legal entities that are most likely to 
exceed the adjusted gross income ceilings set out in section 
1001D, but is not designed to authorize the Secretary to 
conduct repeated audits of operations based upon size alone.

(36A) Income derived from farming, ranching or forestry

      The House bill amends section 1001D of the FSA by adding 
a new paragraph (3) to delineate income that is to be included 
in the portion of average adjusted gross income derived from 
farming, ranching, or forestry to include the following: the 
production of crops, livestock, or unfinished raw forestry 
products; the sale, including the sale of easements and 
development rights, of farm, ranch, or forestry land or water 
rights; the sale, but not as a dealer, of equipment purchased 
to conduct farm, ranch, or forestry operations when the 
equipment is otherwise subject to depreciation expense; the 
rental of land used for farming, ranching, or forestry 
operations; the provision of production inputs and services to 
farmers, ranchers, and foresters; the processing, storing, and 
transporting of farm, ranch, and forestry commodities; and the 
sale of land that has been used for agriculture.'' (Section 
1504(b)(3))
      The Senate amendment provides the same as the House 
measure, except the Senate does not limit the sale of equipment 
to those other than dealers and does not include the provision 
regarding equipment subject to depreciation; includes income 
from water or hunting rights; includes packing in processing 
and shedding in storage; and includes payment or other income 
attributable to benefits received under any Title I or Title II 
program. (Section 1704(c))
      The Conference amendment adopts the Senate provision with 
an amendment to clarify and expand upon the items included in 
the Senate amendment. Newly specified categories of farm income 
include the feeding, rearing or finishing of livestock and 
payments received under the noninsured assistance program 
(NAP), and under the Federal Crop Insurance Act. Income 
received from the sale of farm equipment or production inputs 
or services to farmers can be considered farm income if two-
thirds of a person's or legal entity's average adjusted gross 
income comes from the other sources of farm income. (Section 
1604)
      The Managers intend for the Secretary to create a method 
for determining a person's average adjusted gross farm income 
by including all income reported on IRS Schedule F (or other 
schedule for reporting farm or farm-related income), farming, 
ranching, or forestry related income specifically listed in the 
statute, and other income as determined by the Secretary to be 
income related to farming, ranching, or forestry activities. 
The items described in section 1001D(c) to be included in 
average adjusted gross farm income are intended to be 
illustrative and by no means an exclusive list. The Managers 
expect the Secretary to interpret, implement, and expand the 
sources of income derived from farming, ranching, or forestry 
to include the income or benefits from farming and farm-related 
activities other activities that the Secretary determines are 
derived directly or indirectly from farm or farm-related 
activities. Many of these activities may be in addition to 
those items reported on IRS Schedule F, Form 4853 (farm rental 
income), farm partnership returns, or other schedules or forms. 
As farming practices, farming enterprises, and farm-related 
activities continue to evolve and modernize, the Managers 
intend that the Secretary will expand the sources of income 
derived from farming, ranching, or forestry for these purposes 
to reflect these developments.

(37) Adjustments of loans

      The House bill amends section 162 of the 1996 farm bill 
by inserting ``except for cotton and long grain, medium grain, 
and short grain rice'' after ``commodity''; extending the 
provisions; and adding provisions for cotton and rice.
      The House bill authorizes the Secretary to make 
adjustments in the loan rate for cotton for differences in 
quality factors, and requires the Secretary to revise the 
marketing assistance loan program for cotton to better reflect 
market values for cotton. The House bill requires revisions, 
including: eliminating or revising warehouse location 
differentials to reflect market conditions; changing the way 
premiums and discounts are calculated by using a three-year 
weighted moving average of spot market data, weighted by each 
region's share of production; eliminating gaps between premium 
and discount differentials based on certain fiber lengths; and 
further capping premiums based on leaf and color 
considerations.
      The House bill provides for discretionary revisions in--
adjusting the loan rates schedule using non-spot market price 
data in addition to spot market data for cotton; and 
eliminating gaps between premium and discount differentials 
based on certain longer fiber lengths.
      The House bill encourages USDA consultation with the 
private cotton industry when making the mandatory and 
discretionary adjustments.
      The House bill amends section 162(e) of the 1996 farm 
bill to provide that ``with respect to long grain rice and 
medium and short grain rice, the Secretary shall not make 
adjustments in the loan rates for such commodities, except for 
differences in grade and quality (including milling yields)''.
      The House bill provides the same as section 162(c) of the 
1996 farm bill, which allows the Secretary to establish county 
loan rates in a manner that results in the lowest loan rate 
being 95% of the national average loan rate, if those loan 
rates do not result in an increase in outlays. Prohibits any 
adjustment resulting in an increase in the national average 
loan rate for any year.
      The House bill provides the same as section 162 of the 
1996 farm bill. (Section 1505)
      The Senate amendment provides for adjustments in loan 
rates for loan commodities other than cotton for differences in 
grade, type, location, and other factors. (Section 1210(a))
      Subsection (b) of the Senate amendment provides the same 
as current law. (Section 1210(b))
      Subsection (d) of the Senate amendment provides the same 
as the House measure, except with respect to mandatory 
revisions, the Senate amendment eliminates warehouse location 
differentials.
      With respect to discretionary revisions, the Senate 
amendment provides the same as the House measure.
      With respect to consultation, the Senate amendment 
provides the same as the House provision, except that it 
requires consultation with the private cotton industry. 
(Section 1210(d))
      With respect to rice, the Senate amendment prohibits the 
Secretary from making adjustments in the loan rates for long 
grain rice and medium grain rice, except for differences in 
grade and quality (including milling yields). (Section 1210(f))
      Subsection (c) of the Senate amendment provides the same 
as current law. (Section 1210(c))
      The Senate amendment provides the same as current law 
specifically for peanuts. (Section 1308)
      The Conference substitute adopts the Senate provision 
with an amendment to simplify language related to the 
requirement to consult with the cotton industry. (Section 1210)

(38) Personal liability of producers for deficiencies

      The House bill provides the same as current law. (Section 
1506)
      The Senate amendment provides the same as current law. 
(Section 1709)
      The Conference substitute adopts the Senate provision. 
(Section 1606)

(39) Extension of existing administrative authority regarding loans

      The House bill provides the same as current law. (Section 
1507)
      The Senate amendment provides the same as current law. 
(Section 1710).
      The Conference adopts the Senate provision with an 
amendment. (Section 1607)

(40) Assignment of payments

      The House bill provides the same as current law. (Section 
1508)
      The Senate amendment provides the same as current law. 
(Section 1711)
      The Conference substitute adopts the House provision with 
an amendment. (Section 1608)

(41) Tracking of benefits

      The House bill requires the Secretary to track the 
benefits provided under titles I and II directly or indirectly 
to individuals and entities. (Section 1509)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to give the Secretary discretionary authority to 
track benefits. (Section 1609)

(42) Upland cotton storage payments

      The House bill ends the practice of paying for upland 
cotton storage, handling and other costs associated with cotton 
going into the loan starting with the 2011 crop. (Section 1510)
      The Senate amendment requires payment of cotton storage 
costs in the same manner and at the same rates as the Secretary 
provided for the 2006 crop of cotton effective for the 2008-
2012 crop years. (Section 1204(h))
      The Conference substitute adopts the Senate provision 
with an amendment to limit the payments to a percentage of the 
actual storage rates. (Section 1204(g))

(43) Government publication of cotton price forecasts

      The House bill strikes the current prohibition on the 
publication of cotton price forecasts. (Section 1511)
      The Senate amendment provides the same as the House 
measure. (Section 1714)
      The Conference substitute adopts the Senate provision. 
(Section 1610)

(44) Prevention of deceased persons receiving payments under farm 
        commodity programs

      The House bill requires the Secretary to submit a report 
to Congress which identifies any estate of a deceased person 
that received payments under this title for more than two crop 
years following the death of the person. The Secretary is 
required to promulgate regulations specifying deadlines by 
which a legal entity that receives payments or other benefits 
under this title must notify the Secretary of any change in 
ownership of the entity, including the death of a person with 
direct ownership interest. Any entity that fails to comply may 
be denied such payments or benefits. The Secretary is required 
to recoup erroneous payments made on behalf of a deceased 
person, and to withhold payments that otherwise would be made 
to farming operations in which the deceased person was actively 
engaged until the funds have been recouped. The Secretary is 
required to biannually reconcile individual tax identification 
numbers with the Internal Revenue Service for recipients of 
payments under this title to determine recipients' living 
status. (Section 1512)
      The Senate amendment prohibits the Secretary from 
providing any agricultural payment under this Act or Act 
amended by this Act to any deceased individual or estate of 
such individual after 2 program years after the date of death 
of the individual. The Secretary is required to submit reports 
to the respective committees on agriculture that describes the 
number of payments and the aggregate amount of payments to 
deceased individuals and estates of deceased individuals; and 
to specify for each such payment, the length of time the estate 
of the deceased individual has been open. (Section 11073)
      The Conference substitute adopts the House provision with 
an amendment that provides for the Secretary to issue 
regulations to allow for the settlement of estates and to 
preclude payments on behalf of deceased individuals that were 
not eligible for payment. The Secretary is directed to 
reconcile Social Security numbers of program participants with 
the Social Security Administration at least twice annually. 
(Section 1611)

(45) Hard White Wheat Development Program

      The Senate amendment creates a program to compensate 
producers of hard white wheat. It establishes acreage 
limitation and payment rates and provides $35 million for the 
period of fiscal years 2008-2012. (Section 1706)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to make the program subject to appropriations 
and to modify the period of effectiveness to fiscal years 2009-
2012. (Section 1612)

(46) Durum Wheat Quality Program

      The Senate amendment authorizes compensation to producers 
of durum wheat in an amount not to exceed 50% of the actual 
cost of fungicides applied to a crop of durum wheat of the 
producers to control wheat scab. It provides $10 million for 
each of fiscal years 2008 through 2012 subject to 
appropriations. (Section 1707)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to modify the period of effectiveness to 
fiscal years 2009-2012. (Section 1613)

(47) Storage facility loans

      The Senate amendment establishes 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) to construct or upgrade storage 
and handling facilities for the commodities. It provides the 
terms of loans, amounts, and security requirements. (Section 
1708)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment. (Section 1614)

(48) State, county, and area committees

      The Senate amendment provides for producer representation 
on county or area committees that are combined or consolidated. 
The provision requires that minority representation of socially 
disadvantaged farmers and ranchers is maintained. The Senate 
amendment provides that the producer is 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. (Section 
1715)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to require the Secretary to develop 
procedures for the purpose of maintaining representation of 
socially disadvantaged farmers and ranchers on combined or 
consolidated committees. (Section 1615)

(49) Prohibition on charging certain fees

      The Senate amendment prohibits the Secretary from 
charging fees or related costs for the collection of commodity 
assessments. (Section 1716)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1616)

(50) Signature authority

      The Senate amendment provides that 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 unless the applicant knowingly and willfully 
falsified the evidence of signature authority or a signature. 
(Section 1717)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment ensuring that the Secretary can still seek 
proper documentation despite the Senate provision and that 
third party producers who relied upon the prior approval of 
documents by the Secretary in good faith and substantially 
complied with farm program requirements are not denied benefits 
due to erroneous representations of authority. (Section 1617)
      The Managers intend for the Secretary to continue to seek 
proper affirmation of signature authority from appropriate 
parties even as this section upholds prior document approval by 
the Secretary despite inadequate or invalid signature 
authority.

(51) Modernization of Farm Service Agency

      The Senate amendment requires the Secretary to modernize 
the Farm Service Agency information technology and 
communication systems to ensure timely and efficient program 
delivery at national, state, and county offices. (Section 1718)
      The House bill contains no comparable provision.
      The Conference substitute provides for a report 
addressing the needs of the Department and a detailed plan to 
fulfill the Department's needs. (Section 1618)

(52) Geospatial systems

      The Senate amendment requires the Secretary to 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. (Section 1719)
      The House bill contains no comparable provision.
      The Conference substitute provides that the Secretary 
shall ensure that all geospatial data of the agencies of the 
Department of Agriculture are portable and standardized. 
(Section 1619)

(53) Leasing of office space

    The Senate amendment allows the Secretary to use Commodity 
Credit Corporation funds to lease space for use by agencies of 
the Department of Agriculture use provided the space is jointly 
occupied by the agencies. (Section 1720)
      The House bill contains no comparable provision.
      The Conference substitute provides for a report on the 
costs and time associated with complying with U.S. General 
Services Administration (GSA) leasing procedures. (Section 
1620)

(53A) Geographically disadvantaged farmers and ranchers

      The Senate amendment establishes a new program to provide 
geographically disadvantaged farmers and ranchers direct 
reimbursement payments to cover the cost to transport 
agricultural commodities or inputs used to produce agricultural 
commodities. The Secretary may spend up to $15,000,000 per 
fiscal year from funds appropriated to carry out this program. 
(Section 6021)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment. (Section 1621)
      The Managers recognize the barriers to competition 
associated with the high transportation costs incurred by 
geographically disadvantaged farmers and ranchers. The Managers 
expect the Secretary to develop, in consultation with the 
eligible areas, an equitable allocation of the funds for such 
areas. The Managers also expect the Secretary to consult with 
eligible areas on administration of the program.

(53B) Implementation

      The conference substitute provides $50,000,000 to the 
Farm Service Agency to implement title I. (Section 1622)

(54) Repeals

      The Senate amendment repeals section 1605 of the 2002 
farm bill authorizing a Commission on Application of Payment 
Limitations; repeals section 1617 of the 2002 farm bill 
renewing availability of market loss assistance and certain 
emergency assistance to persons that failed to receive 
assistance under earlier authorities. (Section 1721)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1623)

                         TITLE II--CONSERVATION


(1) Definitions (Section 1201 of 1985 Food Security Act (FSA))

      The Senate amendment adds definitions in the 1985 FSA for 
``beginning farmer or rancher'', ``Indian tribe'', ``socially 
disadvantaged farmer or rancher'', ``nonindustrial private 
forest land'', and ``technical assistance''. The amendment 
authorizes the Secretary to employ a reasonable test of net 
worth or other measure to further qualify a beginning farmer or 
rancher. (Section 2001 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that removes the test of net worth for a 
beginning farmer or rancher. The Conference substitute further 
adopts the definition of a socially disadvantaged farmer or 
rancher as defined in Section 2501 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279) and adds a 
definition of farm, integrated pest management, person and 
legal entity, and livestock. The definition of livestock is 
intended to include alpaca and bison. (Section 2001 of 
Conference substitute)

(2) Review of good faith determinations (Section 1212 of FSA)

      The Senate amendment maintains the good faith exemption 
and provides for a second level review of highly erodible land 
compliance decisions by the Farm Service Agency State Executive 
Director with the technical concurrence of the Natural 
Resources Conservation Service State Conservationist or the 
Farm Service Agency District Director with the technical 
concurrence of the Natural Resources Conservation Service Area 
Conservationist or his or her equivalent. The amendment allows 
for graduated penalties for compliance violations. (Section 
2101 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
Conservation compliance was created in the 1985 FSA. It 
requires that individuals who farm highly erodible land to 
develop and apply a conservation plan or lose eligibility for 
farm program benefits. It has resulted in reductions in soil 
erosion but has often been inconsistently applied. Under 
current law, even a small compliance infraction requires the 
complete denial of farm program benefits.
      The Conference substitute creates a system of graduated 
penalties, to be based on the severity of the violation. The 
amendment also creates a process to ensure that the Farm 
Service Agency Area Director or the Farm Service Agency State 
Director will review local compliance decisions. The Natural 
Resources Conservation Service will be involved to provide 
concurrence on technical issues.
      The Managers believe this approach resolves a long-
standing problem and provides for increased oversight of the 
violation process. The Managers are aware however, that current 
market conditions are encouraging commodity production on 
additional land and also changing cropping patterns. In light 
of the increase in new crop production, as well as changes in 
cropping systems, the Managers expect that the Secretary will 
increase whatever technical assistance, planning, monitoring, 
investigation, and enforcement activities may prove necessary 
to ensure that producers receiving farm program benefits 
continue to meet the applicable conservation compliance 
requirements. (Section 2002 of Conference substitute)

(3) Review of good faith determinations (Section 1222 of FSA)

      The Senate amendment maintains the good faith exemption 
and provides for a second level review of wetland compliance by 
the Farm Service Agency State Executive Director (with the 
technical concurrence of the NRCS State Conservationist) or the 
Farm Service Agency district director (with the technical 
concurrence of the Natural Resources Conservation Service area 
conservationist or his/her equivalent). (Section 2201 of the 
Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision.
      The Managers intend for this provision to provide for 
better review and enforcement of wetlands compliance 
provisions. It requires a second level of review of wetlands 
violations by the Farm Service Agency with the concurrence of 
the Natural Resources Conservation Service on technical issues. 
The Managers intend for the Farm Service Agency to continue its 
primary role in compliance determinations. (Section 2003 of 
Conference substitute)

(4) Comprehensive Conservation Enhancement Program (Section 1230 of 
        FSA)

      The Senate amendment extends the program through 2012 and 
adds the Healthy Forests Reserve Program. The Environmental 
Quality Incentives Program (EQIP) is moved to the Comprehensive 
Stewardship Incentives Program (CSIP). (Section 2341) It 
exempts land enrolled in the Conservation Reserve Enhancement 
Program (CREP), land affected by State or local regulations 
that prohibit water use for agricultural production, and land 
in the State of Washington where enrollment is essential to 
Federal or State plans for sustainable wildlife habitat from 
the 25 percent county acreage cap. (Section 2301 of the Senate 
amendment)
      The House bill has no comparable provision.
      The Conference substitute does not reauthorize the 
program. The Healthy Forest Reserve Program is retained in the 
Forestry Title, and the county acreage cap is addressed in 
``Administrative Requirements for Conservation Programs''. 
(Section 1244 of the FSA). The Conference adopts a provision to 
exclude CREP acreage and continuous Conservation Reserve 
Program (CRP) acreage from the 25 percent cap if the county 
government concurs. This provision is separate and distinct 
from the existing waiver authority. As such, the Managers do 
not intend for the Secretary to survey producers, businesses, 
and other entities as is required by the existing waiver 
authority to implement this new provision.
      The Managers recognize that a loss of access to water by 
agricultural producers can significantly impact conservation 
needs and local economies, and that producers need access to a 
wide range of conservation programs to help comply with a State 
or local law, order, or regulation prohibiting water use for 
agricultural production.
      In making any determination on the applicability of the 
25 percent county cropland CRP enrollment limitation, the 
Managers encourage the Secretary to maintain maximum 
flexibility for the enrollment of acreage in CRP that cannot be 
used for an agricultural purpose or is precluded from planting 
as a result of a State or local law, order, or regulation 
prohibiting water use for agricultural production.

(5) Conservation Reserve Program (Sections 1231, 1232, 1234, and 1235 
        of FSA)

            (a) Conservation reserve (Section 1231 of FSA)
      The House bill extends CRP until 2012 and gives the 
Secretary authority to address issues raised by State, 
regional, and national conservation initiatives. It amends the 
land eligibility provision to include land the Secretary 
determines had been planted for 4 of the 6 years preceding the 
enactment of the Farm, Nutrition, and Bio-energy Act of 2007 
(except for land enrolled in CRP as of that date). It maintains 
the existing maximum enrollment of 39,200,000 acres. It strikes 
specific enumeration of Pennsylvania, Maryland and Virginia, 
but maintains the Chesapeake Bay Region as a Conservation 
Priority Area. The House bill also provides that alfalfa grown 
as part of a rotation practice is a commodity for cropping 
history criteria in determining whether land is eligible to be 
enrolled. It extends the Pilot Program for Enrollment of 
Wetland and Buffer Acreage in CRP to 2012. (Section 2101 of the 
House bill)
      The Senate amendment extends CRP until 2012 and adds 
pollinator habitat to the resources to be conserved and 
improved through the program. The Senate amendment also expands 
eligible land to include marginal pastureland if native 
vegetation is grown and the land contributes to the restoration 
of the long-leaf pine forest or similar rare and declining 
forest ecosystem. The Senate amendment modifies eligibility of 
land that would facilitate a net savings in groundwater or 
surface water to apply only to alfalfa and other forage crops. 
The section expands eligible land to include land enrolled in 
the flooded farmland program. The Senate amendment maintains 
the existing maximum enrollment of 39,200,000 acres. The Senate 
amendment expands the Chesapeake Bay Priority Area to include 
all parts in the Chesapeake Bay Watershed and adds the Prairie 
Pothole Region, Grand Lake St. Mary's Watershed, and Eastern 
Snake Plain Aquifer region as Conservation Priority Areas.
      The Senate amendment expands the lands eligible for the 
Pilot Program for Enrollment of Wetland and Buffer Acreage to 
include shallow water areas that were devoted to a commercial 
pond-raised aquaculture and agricultural drainage water 
treatment areas that provide nitrogen removal and other wetland 
functions. The Secretary, in consultation with the State 
technical committee, shall establish the maximum size of the 
buffer acreage to be enrolled along with eligible lands, taking 
into consideration the farming practices used with respect to 
the cropland that surrounds the wetland or shallow water area. 
The section increases the maximum wetland size to 40 contiguous 
acres and makes all acres eligible for payment. (Section 2311 
of the Senate amendment)
      The Conference substitute adopts the Senate provision 
with an amendment. The substitute extends CRP until 2012 and 
provides the Secretary authority to address issues raised by 
State, regional, and national conservation initiatives. These 
``State, regional and national conservation initiatives'' may 
include such things as the North American Waterfowl Management 
Plan, the National Fish Habitat Action Plan, the Greater Sage-
Grouse Conservation Strategy, the State Comprehensive Wildlife 
Conservation Strategies (also referred to as the State Wildlife 
Action Plans), the Northern Bobwhite Conservation Initiative, 
and State forest resource strategies. The Managers intend for 
the Secretary to consider the goals and objectives identified 
in relevant fish and wildlife conservation initiatives when 
establishing State and national program priorities, scoring 
criteria, focus areas, or other special initiatives. The 
Managers expect the Department to work with conservation 
partners and State and Federal agencies, to the extent 
practicable, to complement the goals and objectives of these 
additional plans through its programs.
      Regarding pollinators, the Managers have placed a 
provision in ``Administrative Requirements for Conservation 
Programs'' (Section 1244 of the FSA), which applies to all 
applicable conservation programs and encourages the Secretary 
to give priority to applications that provide pollinator 
habitat.
      The Conference substitute adopts the House provision on 
land eligibility and updates the provision to include land the 
Secretary determines has been planted for 4 of the 6 years 
preceding the enactment of the Food, Conservation, and Energy 
Act of 2008.
      While the Managers agreed to an overall reduction in CRP 
enrollment to 32,000,000 acres, this should not serve as an 
indicator of declining or reduced support for CRP. The Managers 
intend that CRP be implemented at authorized levels, and that 
the program continue as one of USDA's key conservation 
programs. USDA shall update rental rates and use incentive 
payments for continuous CRP practices to make the program 
competitive with other programs and more economically viable 
for producers. The Managers support the use of partnership 
agreements with State wildlife agencies and nongovernmental 
organizations to assist in program promotion and 
implementation. Additionally, as general CRP contracts expire, 
the Managers encourage the enrollment of those acres in the 
Conservation Stewardship Program (CSP), Grassland Reserve 
Program (GRP) and the continuous CRP. The Managers expect that 
the Department will use incentive payments, promotional 
efforts, and agreements with the third parties mentioned above 
to ensure that the portions of general signup acreages that can 
be maintained in the program will be enrolled through 
continuous CRP.
      The Conference substitute adopts the House language and 
makes a technical correction to include all States that make up 
the Chesapeake Bay Region as the Conservation Priority Area.
      The substitute clarifies that alfalfa grown as part of a 
rotation practice is a commodity for cropping history purposes. 
The Managers encourage the Secretary to enroll irrigated 
alfalfa lands into ongoing CREP projects that address water 
quantity and quality issues. (Section 2101 of Conference 
substitute)
            (b) Duties of owner and operators (Section 1232 of FSA)
      The House bill maintains current law regarding managed 
haying and grazing outside of nesting seasons and expands the 
provision to allow a producer to conduct prescribed grazing for 
the control of invasive species on CRP lands. It allows for 
managed grazing and requires the Secretary to reduce the rental 
payment and require a management plan. It allows dryland crop 
production and grazing on CREP acres where CREP is initiated to 
address declining water resources. The Secretary is required to 
develop a conservation plan, determine eligibility of dryland 
crop production and grazing for crop insurance, reduce the 
rental payment, and renegotiate the agreement to allow for 
dryland crop production and grazing at the request of the 
State. Such lands shall be considered ``noncropland'' for crop 
insurance purposes. (Section 2101 of the House bill)
      The Senate amendment adds that approved vegetative cover 
shall encourage the planting of native species and the 
restoration of biodiversity. It requires contract holders to 
actively manage the land throughout the term of the contract 
and clarifies that managed harvesting and grazing outside of 
nesting and brood rearing season is permitted if it is part of 
the conservation plan. The Senate amendment allows prescribed 
grazing for control of invasive species. The Senate amendment 
requires that the practices in the conservation plan be 
compatible with wildlife and wildlife habitat, clearly 
described and applicable through the duration of the contract, 
consistent with the Secretary's priorities for local 
conservation management priorities, and actively managed. 
(Section 2311 of the Senate amendment)
      The Conference substitute adopts the House provision with 
an amendment. The substitute allows routine grazing, including 
prescribed grazing for the control of invasive species, with 
appropriate restrictions. The Managers expect that routine 
grazing will be performed in a manner that is consistent with 
the underlying purposes of the program and conducted under a 
site-specific vegetation plan that provides for grazing 
frequency (duration of time throughout the year, when 
authorized, and the number of years during the life of the CRP 
contract). The Managers further expect that guidelines for the 
vegetation plan and grazing use be developed in consultation 
with the State technical committee.
      The Managers understand that there has been some concern 
over the current rules related to haying and grazing on CRP 
land and insufficient flexibility for forage use across varied 
landscapes while still achieving the purposes of the program. 
The Managers expect USDA to review rules developed to implement 
routine grazing and to provide for appropriate flexibility in 
grazing periods consistent with the conservation goals of the 
program based on site-specific natural resource conditions.
      The Managers understand that there has been some 
complication in local areas with restricting access to buffers 
while gleaning the crop residue in a field. The Managers intend 
that short-term access to buffers that are adjacent to fields 
be allowed post-harvest without a reduction in payment. While 
grazing of the buffer is not intended in this action, the 
proximity to the field crop residue makes restricting access 
difficult. Due to the short term nature of this activity (60 
days maximum), it should not result in a reduced payment and 
should be done in accordance with the contract. (Section 2107 
of Conference substitute)
            (c) Payments (Section 1234 of FSA)
      The House bill requires the National Agricultural 
Statistics Service to survey annually the per-acre estimates of 
county average market dryland and irrigated cash rental rates 
for all counties with 20,000 acres or more of crop and 
pastureland. These surveys will be kept on the Department's 
website and made available to the public. (Section 2101 of the 
House bill)
      The Senate amendment contains a similar provision. In 
accepting new enrollments, the section requires that if land 
provides equivalent environmental benefit to a competing offer 
then the Secretary shall, to the maximum extent practicable, 
accept an offer from an owner or operator who is a local 
resident. (Section 2311 of the Senate amendment)
      The Conference substitute adopts the Senate provision 
regarding the NASS survey. In accepting contract offers 
(Section 1234(c)), the substitute adds a new requirement that 
the Secretary provide priority to offers from local residents 
if the offer provides equivalent conservation benefits when 
compared to other offers. (Section 2110 of Conference 
substitute)
            (d) Contracts (Section 1235 of FSA)
      The House bill allows the Secretary to modify a CRP 
contract to facilitate the transition of CRP land from a 
retiring owner to a beginning, socially disadvantaged, limited 
resource farmer or rancher in order to return some or all of 
the land to sustainable grazing or crop production. It allows 
the beginning, socially disadvantaged, or limited resource 
farmer or rancher to make land improvements and to begin the 
organic certification process one year before the CRP contract 
expires. The House bill: requires the retiring landowner to 
sell or lease the CRP land to the beginning, socially 
disadvantaged, or limited resource farmer for production 
purposes; requires a conservation plan; allows the farmer to 
enroll in the Conservation Security Program or EQIP upon taking 
ownership of the land; and provides CRP payments to the 
retiring owner/operator for an additional two years after the 
contract terminates. The House bill allows the beginning, 
socially disadvantaged, or limited resource farmer or rancher 
purchasing the CRP land to reenroll a partial field that is 
eligible for continuous sign-up and is part of a conservation 
plan.
      The House bill requires the Secretary to allow an 
operator to terminate a contract that has been in effect for 5 
years at any time. The section also provides that land enrolled 
in continuous sign-up is ineligible for early termination. 
(Section 2101 of the House bill)
      The Senate amendment has no comparable provision to the 
House language on CRP transition options for beginning, 
socially disadvantaged, or limited resource farmers. The Senate 
amendment retains current language on early termination by an 
owner or operator but expands current law to permit contract 
termination if the participant is disabled or retired from 
farming and has endured financial hardship as a result of 
taxation from rental payments received. (Section 2311 of the 
Senate amendment)
      The Conference substitute adopts the House provision with 
an amendment regarding the transition of CRP land from a 
retiring farmer or rancher to a beginning or socially 
disadvantaged farmer or rancher. In implementing the CRP 
transition option, the Managers encourage the Department to 
publicize the availability of the transition option widely, 
including publicity aimed at CRP landowners who are not 
extending contracts or re-enrolling in the program and at 
beginning and socially disadvantaged farmers or ranchers. 
(Section 2111 of Conference substitute)

(6) Flooded Farmland Program (Section 1235B of FSA)

      The Senate amendment adds a new flooded farmland program 
within CRP, which allows for the enrollment of flooded crop and 
grazing land or land rendered inaccessible because of flooding 
caused by the natural overflow of a closed basin in the 
Northern Great Plains region. The section requires that land 
enrolled must be at least 5 acres in size, flooded, and 
rendered incapable of production during the preceding three 
crop years and have no natural outlet. It provides for 
enrollment through the continuous sign-up process and requires 
that land enrolled have a consistent history of being used for 
the production of crops or used as grazing lands.
      The Senate amendment allows enrollment of adjoining land 
that would enhance the conservation or wildlife value of the 
tract with reduction in rental payment. During participation in 
the program, owners are not eligible to participate in or 
receive federal crop insurance, noninsured crop disaster 
assistance, or any other federal agricultural crop disaster 
assistance program benefits for land included in the contract. 
The section also directs the Secretary to preserve the cropland 
base, allotment history, and payment yields applicable to the 
enrolled land and to adjust these values upon contract 
termination to ensure equitable treatment of the enrolled land 
relative to comparable land remaining in production in the 
county. The owner shall take actions as necessary to avoid 
degrading any wildlife habitat that has developed as a result 
of the natural overflow on the land covered by the contract. 
(Section 2312 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute deletes this section and makes 
modifications to CRP and the Wetlands Reserve Program (WRP) to 
accomplish the intent of the Senate amendment.
      The pilot program for enrollment of wetland and buffer 
acreage in CRP is expanded to include land that had been 
cropped during 3 of 10 crop years prior to 2002 and after 1990 
and is subject to a natural overflow of a prairie wetland. 
Wetlands and adjacent buffer areas are enrolled under the 
continuous sign-up process and are limited to no more than 40 
acre tracts. The Managers expect the Secretary to require these 
enrollments in the CRP wetland pilot program to have ratios of 
at least two-to-one in upland buffer areas, or greater where 
practicable, in order to maximize wildlife benefits. 
Participants must agree to restore wetland hydrology, establish 
appropriate vegetation, and refrain from commercial use of the 
land, among other duties during the term of the contract. 
(Section 2101 of the Conference substitute)
      Eligible land in WRP is expanded to include cropland or 
grassland that was used for agricultural production prior to 
flooding from the natural overflow of a closed basin lake or 
pothole. These wetland areas along with functionally dependent 
uplands, as practicable, are to be enrolled in 30-year 
easements. In determining the compensation, the Secretary is 
expected to base the value on the use of the land prior to 
flooding and the corresponding value of such land in the county 
where the eligible land is located. The Managers expect that 
enrolling these permanently and temporarily flooded lands in 
the program will provide long term benefits for wildlife 
habitat and water management. To ensure that enrollment 
opportunity exists for these lands, the Secretary is directed 
to conduct an annual survey of the demand for enrollment in the 
Prairie Pothole Region and adjust annual allocation of program 
funds in these interested States. The Managers intend the 
allocations made available through this adjustment process to 
be subject to any annual pooling and reallocation of funds that 
the Secretary applies to the entire program. (Section 2201 of 
the Conference substitute)

(7) Wildlife Habitat Program (Sec 1235C of FSA)

      The Senate amendment creates, for the years 2008 through 
2012, a Wildlife Habitat Program within the CRP. The program 
would be available to CRP contract holders who have established 
softwood pine stands. It provides for agreements that shall 
have management strategies and practices that benefit wildlife, 
such as thinning, establishing wildlife food plots, burning, 
and seeding. Contracts are up to 5 years in term. The Secretary 
shall encourage cooperative arrangements among program 
participants, State and local government entities, and 
nongovernmental organizations to achieve the purposes of the 
program. The section provides cost-sharing and technical 
assistance to carry out the program. The program terminates on 
September 30, 2011. (Section 2313 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute deletes this section and makes 
modification in CRP to accommodate the intent of the Senate 
amendment. In providing funding and clarifying the availability 
of cost-sharing payments related to trees, the Managers 
encourage the Department to take this opportunity to improve 
the condition of resources on land enrolled in CRP and planted 
to trees. The Managers are especially interested in improving 
wildlife habitat on land in the Southeast in CRP planted to 
softwood pines. The Managers expect the Department to work with 
partners to identify areas with the greatest need and potential 
for improvement. The Managers encourage the use of all 
appropriate forest-management practices, including thinning and 
prescribed fire, to achieve the purposes of the program.

(8) Wetland Reserve Program (Section 1237 of FSA)

            (a) Establishment (Section 1237(a-f) of FSA)
      The House bill authorizes WRP through fiscal year 2012. 
The section adds wetland creation to the purposes of WRP and 
authorizes the Secretary to purchase floodplain easements. The 
section increases the maximum enrollment to 3,605,000 acres; 
provides for an annual enrollment goal of 250,000 acres, of 
which up to 10,000 acres may be enrolled as floodplain 
easements; and changes the program to operate on fiscal year 
basis. The section amends eligible lands to include riparian 
areas and floodplains. Flood plain lands are eligible if the 
land has been damaged by flooding at least once in the 
preceding calendar year or has been damaged by flooding at 
least twice in the past 10 years or if the enrollment of other 
land within the floodplain would aid in flood storage, flow, or 
erosion control. (Section 2401(a) and Section 2102 (a-c) of the 
House bill)
      The Senate amendment authorizes WRP through fiscal year 
2012. The section allows enrollment of 250,000 acres per fiscal 
year with no enrollments beginning in fiscal year 2013. Indian 
Tribes may enroll land through 30-year contracts, which shall 
be equivalent in value to a 30-year easement. The section 
includes riparian areas and riparian and adjacent areas that 
are linked to other parcels of wetlands protected under a 
wetlands reserve agreement or similar device. (Section 2321(1-
3) of the Senate amendment)
      The Conference substitute adopts the House language with 
an amendment. The substitute extends WRP to 2012, adds purposes 
to the establishment section, caps enrollment at 3,041,200, and 
focuses the program on private land. The substitute changes the 
program to a fiscal year basis. Enrollment conditions are 
modified to allow 30-year Tribal contracts. The substitute 
stipulates that values of such contracts shall be equivalent to 
30-year easements.
      The substitute does not include the expansion of riparian 
areas. The Managers recognize that riparian areas often provide 
extremely important habitat for wildlife, and that restored and 
protected riparian areas also help improve water quality, 
reduce sedimentation, and help manage floodwaters. Riparian 
areas are already eligible lands under WRP and may be enrolled 
either as uplands that are functionally dependent on a wetland 
or where they link wetlands that are otherwise protected by 
easements or a similar mechanism. (Section 2201 of Conference 
substitute)
            (b) Easements and agreements (Section 1237A of FSA)
      The House bill states that compensation for easements 
shall be based on compensation formulas resulting in the lowest 
cost: percentage of fair market value according to the USPAP or 
a percentage of the market value determined by an area-wide 
survey; a geographic cap; or the landowners offer. Non-federal 
funds may be accepted to administer this program. (Section 
2102(e) of the House bill)
      The Senate amendment adds a requirement that spraying or 
mowing is allowed if necessary to meet habitat needs of 
specific wildlife species. The amendment requires that the 
Secretary pay the lowest compensation for an easement among 
several alternative valuation methods. The compensation for 
easements may be provided to landowners in up to 30 payments of 
equal or unequal size. The section also adds a Wetlands Reserve 
Enhancement Program with the authority to enter into unique 
wetlands reserve agreements that may include compatible uses as 
reserved rights in the warranty easement deed restriction. 
(Section 2322(a-c) of the Senate amendment)
      The substitute adopts the House provision with an 
amendment. It revises the process for determining the value of 
easements and contracts by requiring the Secretary to provide 
the lowest amount of compensation based on a comparison of the 
fair market value of the land (as determined by either an 
appraisal based on the Uniform Standards for Professional 
Appraisals or an area-wide market survey), a geographic cap, or 
an offer made by the landowner.
      The Managers intend for the Department to develop 
guidelines and provide direction for States regarding the 
method for determining the value of easements. The Managers do 
not intend for the Department to require States to use a 
specific appraisal process, such as the ``Yellow Book'' process 
or an appraisal rather than a market wide survey or analysis. 
The Department should grant flexibility to State 
conservationists who, in consultation with State technical 
committees, should determine the method that best fits the 
needs of their State.
      The substitute provides the Secretary authority to accept 
non-Federal funds to assist in implementing the program but 
places this new authority in ``Administrative Requirements for 
Conservation Programs'' (Section 1244 of the FSA) so it applies 
to all conservation programs.
      The substitute includes authority for a Wetlands Reserve 
Enhancement Program (WREP). The WREP authority is intended to 
allow the Secretary to enter into agreements with States 
similar to what is done under CREP. It is not intended as a way 
to enroll State-owned lands in the program. It is the intent of 
the Managers that the Secretary will implement WREP projects in 
order to provide focused, targeted resource benefits and to 
leverage federal funds.
      The substitute provides authority for a Reserved Rights 
Pilot. The Managers intend for the Secretary to explore 
different warranty easement deeds consistent with the purposes 
of the program, while allowing a landowner to retain the right 
to use the land for grazing purposes. The Managers intend that 
any activities occurring under a reserved right easement be 
covered by a conservation plan developed and approved by the 
Secretary.
      The substitute provides that easements with values less 
than $500,000 be paid out over 1 to 30 years. Easements with 
values greater than $500,000 are to be paid out over 5 to 30 
years. The Secretary is granted authority to waive that 
requirement and make lump sum payments if necessary to carry 
out the purposes of the program. For land to be eligible for 
the WRP, the land must have remained under the same ownership 
for a minimum of 7 years. (Section 2208 of Conference 
substitute)
            (c) Duties of Secretary (Section 1237C of FSA)
      The House bill adds criteria for the Secretary to use 
when evaluating easement offers from landowners for wetlands or 
floodplains. The Secretary may consider the conservation 
benefits, the cost effectiveness, and whether the landowner or 
someone else is offering to contribute to the cost of the 
easement or other interest in the land to leverage Federal 
funds. In determining the acceptability of easement offers for 
flood plains, the Secretary may take into consideration the 
extent to which the purpose of the program would be achieved on 
the land, whether the land has flooded repeatedly in the past 
10 years, whether the easement would contribute to restoration 
of surrounding lands, and other factors. (Section 2102(f) of 
the House bill)
      The Senate has no comparable provision.
      The Conference substitute adopts the House language for 
evaluating wetlands. (Section 2207 of Conference substitute)
            (d) Payments (Section 1237D of FSA)
      The House bill is the same as current law with technical 
changes. It also changes the paragraph heading ``State wetland 
and environmental enhancement'' to ``Wetlands Reserve 
Enhancement''. (Section 2102(g) of the House bill)
      The Senate amendment makes a conforming change to allow 
payments for 30-year contracts. (Section 2323 of the Senate 
amendment)
      The Conference substitute adopts the Senate amendment. 
(Section 2205 of Conference substitute)

(3) Reports (Section 1237G of FSA)

      The Senate amendment directs the Secretary to evaluate 
and report to Congress on the implications of long-term 
easements on Department of Agriculture resources by January 1, 
2010. (Section 2322(d))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
The Managers are concerned with the long-term implications of 
managing and monitoring wetland easements. The substitute 
requires the Secretary to provide a report on the number and 
location of conservation easements acquired under the WRP and 
an assessment of the extent to which the oversight of 
conservation easement agreements impacts the availability of 
USDA resources, including technical assistance. (Section 2210 
of Conference substitute)

(9) Comprehensive Stewardship Incentives Program

      The Senate amendment creates a new CSIP to coordinate the 
two primary working lands programs: EQIP and the Conservation 
Stewardship Program (CSP). The section defines resources of 
concern and requires the Secretary to manage EQIP and CSP in a 
coordinated manner. The Secretary shall ensure that resources 
of concern are identified at the State level and shall identify 
not more than 5 resources of concern within a watershed or 
region within a State. The section directs the Secretary to 
issue regulations to implement the CSIP, CSP, and EQIP no later 
than 180 days after the date of enactment of the 2007 Farm 
bill. (Section 2341 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute does not include CSIP. The 
substitute includes a provision in ``Administrative 
Requirements for Conservation Programs'' (Section 1244 of the 
FSA) that requires the Secretary to ensure that there is a 
streamlined application process for all conservation programs.

(10) Conservation Security Program

            (a) Conservation Security Program (Section 1238 FSA)
      The House bill states that no new contracts may be 
entered into under the Conservation Security Program after 
October 1, 2007. However, payments and modifications to 
existing contracts may be continued to be made until those 
contracts expire. (Section 2103(b) of the House bill)
      The Senate amendment reauthorizes the Conservation 
Security Program for existing contracts only. The section 
provides $2,317,000,000 for current contracts to remain 
available until expended and prohibits new contracts or 
renewals after enactment of the Farm Bill. (Section 2391 of the 
Senate amendment)
      The Conference substitute adopts the Senate provision and 
provides such sums as necessary to carry out existing 
contracts.
            (a) Definitions
      The House bill defines conservation plan, conservation 
practice, management intensity, nondegradation standard, 
priority resource of concern, resource specific index, and 
socially disadvantaged farmer or rancher. (Section 2103(a) of 
the House bill)
      The Senate amendment defines comprehensive conservation 
plan, stewardship contract, contract offer, enhancement 
payment, eligible land, livestock, management intensity, 
payment, practice, producer, program, resource conserving crop, 
resource conserving crop rotation, stewardship contract, and 
stewardship threshold. (Section 2391 of the Senate amendment)
      The Conference substitute renames the program as the 
Conservation Stewardship Program (CSP) and defines conservation 
activities, conservation measurement tools, conservation 
stewardship plan, priority resource concern, resource concern, 
and stewardship threshold. (Section 1238D of the Conference 
substitute)
      The Managers recognize that agricultural drainage systems 
are valuable conservation practices that can be carried out 
under the CSP and, in particular, that the installation of 
drainage management systems can provide benefits to water 
quality by reducing nitrogen loading from subsurface drainage 
as well as managing wildlife habitat. Thus, these practices are 
included as conservation activities.
      The Conference substitute includes planning needed to 
address a resource concern as a conservation activity. Since 
CSP is intended to address multiple resource concerns in a 
coordinated manner, the Managers encourage the Secretary to 
implement the program in a manner that encourages comprehensive 
conservation planning through technical and financial 
assistance under this program. The Managers encourage the 
Secretary to use site-specific conservation planning as 
outlined in the National Planning Procedures Handbook and 
implement the program in a manner that encourages comprehensive 
conservation planning on all applicable resources through 
technical and financial assistance under the program.
      The Managers are aware of the effort made by NRCS to 
develop resource-specific indices for implementing CSP and 
other conservation assistance programs and encourage this 
development. Where such indices are not available or practical, 
the Managers urge the Secretary to use substitute tools that 
measure the degree, scope, and range of conservation activities 
adopted by a producer to improve and sustain the condition of a 
resource.
      The term stewardship threshold refers to the level of 
conservation and environmental management required to improve 
and conserve a resource. The Managers intend the Secretary to 
set the threshold at a level that ensures substantial and 
lasting conservation benefits.
            (b) Conservation Security Program/Conservation Stewardship 
                    Program and duties of the producer
      The House bill states that a new Conservation Security 
Program shall go into effect for fiscal years 2012 through 
2017, and that the purpose of the Conservation Security Program 
is to assist producers in improving environmental quality by 
addressing priority resources of concern. To be eligible, a 
producer must already be addressing at least one priority 
resource of concern to the minimum level of management 
intensity and have an approved conservation offer. Eligible 
land includes private agricultural land, forest land, and land 
owned by Tribes. (Section 2103 of the House bill)
      The Senate amendment identifies the purposes of the 
program as promoting agricultural production and environmental 
quality as compatible goals and to optimize environmental 
benefits by assisting producers to promote natural resource 
conservation. To be eligible, a producer must address priority 
resources of concern relating to both soil and water to at 
least the stewardship threshold, adequately address other 
resources of concern applicable to the operation, and meet or 
exceed the stewardship threshold for at least 1 additional 
priority resource of concern by the end of the contract.
      The Senate amendment clarifies that eligible land 
includes cropland, pasture land, rangeland, other agricultural 
land used for the production of livestock, land used for 
agroforestry, land used for aquaculture, riparian areas 
adjacent to eligible land, Tribal lands, public land (if 
failure to enroll would defeat the purposes of the program), 
and State and school owned land. The Senate amendment states 
that all acres of all agricultural operations within a 
watershed or region that constitute a cohesive management unit 
shall be covered by the contract.
      The Senate amendment includes provisions on contract 
offers, contract renewal, contract termination, and optimal 
crop rotations. (Section 2391 of the Senate amendment)
      The Conference substitute establishes the program purpose 
of encouraging producers to address resource concerns in a 
comprehensive manner by installing and adopting new 
conservation activities, and by improving, maintaining and 
managing conservation activities in place at the operation. The 
Managers encourage the Secretary to place emphasis on improving 
and adding conservation activities.
      The Conference substitute allows nonindustrial private 
forest land to be eligible with the limitation that not more 
than 10 percent of annual acres made available under the 
program can be forest land.
      Under the program, land used for cropland that had not 
been planted, considered to be planted, or devoted to crop 
production for 4 of the 6 years prior to the date of enactment 
of this act shall not be the basis of any payment under the 
program, unless the reason the land did not meet the 
requirement is that: it had previously been enrolled in CRP; 
had been maintained in a long term crop rotation; or was 
incidental land needed for efficient operation, such as an area 
of a farm or ranch that had been used for structures that had 
been subsequently removed. The exceptions only apply if they 
were the direct cause of the producer's inability to meet the 
4-of-6 year requirement.
      The Managers want to clarify that the ``additional 
criteria'' authority provided in Section 1238F(b)(3) may not 
supersede or be more heavily weighted than the five required 
evaluation criteria in section 1238F(b)(1). Instead, the 
additional criteria may provide extra ranking points to help 
address specific priorities. Contracts shall permit all 
economic uses of the land that maintain the agricultural nature 
of the land and are consistent with the conservation purposes 
of the program. The Managers intend for this to apply to 
conservation buffers or any other partial field conservation 
practice that may be included in the contract.
      A producer may renew a CSP contract for an additional 5-
year period, provided the terms of the existing contract have 
been achieved to the satisfaction of the Secretary and the 
producer agrees to adopt new conservation activities. The 
Secretary is provided authority to require new conservation 
activities as part of the contract renewal process. It is the 
intent of the Managers that this could include expanding the 
degree, scope, and comprehensiveness of conservation activities 
adopted by a producer to address the original priority resource 
concerns or addressing one or more additional priority resource 
concerns.
      The Secretary may allow for contract modification if the 
Secretary determines that a modification is consistent with 
achieving the purposes of the program. Modifications envisioned 
by the Managers include instances in which a producer enrolls a 
portion of the farm in a land retirement or easement program, 
gains or loses a lease, or has a change in production due to 
market or weather conditions. The Managers also intend for the 
Secretary to issue guidance for cases in which a producer has a 
change in production that requires a change to scheduled 
conservation practices and activities. The Managers expect the 
Secretary to approve the contract modification only as long as 
net conservation benefits will be maintained or improved as a 
result.
      Supplemental payments are authorized for producers who 
adopt a beneficial crop rotation. The Managers intend for the 
supplemental payment to encourage producers to adopt new, 
additional beneficial crop rotations that provide significant 
conservation benefits. The payments are to be available to 
producers across the country and should not be limited to a 
particular crop, cropping system, or region of the country. In 
the Southeast, peanuts are an example of a crop that responds 
well to increased rotation lengths. Increased rotation lengths 
help peanut producers conserve water, more effectively control 
disease, reduce inputs to control disease and increase 
productivity.
      On-farm conservation research and demonstration 
activities and pilot-testing projects can be approved as part 
of contract offers under the program. The Managers expect the 
Secretary to establish and publicize design protocols and 
application and contract offer procedures for individual 
producer and collaborative on-farm research and demonstration 
activities and for pilot testing projects so producers have a 
clear understanding of how to participate in either of these 
two options.
      The substitute requires the Secretary to provide a 
transparent means by which producer may initiate organic 
certification under the National Organic Program while also 
participating in CSP. The Managers expect the Secretary to 
coordinate this program and the organic certification process 
to the maximum extent practicable.
            (c) Duties of the Secretary
      Under the House bill, the Secretary shall identify not 
more than 5 priority resources of concern for a watershed or 
area within a State. The House bill states that the payment 
amount shall be based on a portion of the actual costs, income 
forgone, and resource specific indices. The payment limitation 
on the Conservation Security Program is $150,000 for the 5-year 
term of the contract.
      Under the Senate amendment, an acreage allocation is 
specified, and contracts are limited to $240,000 for all 
contracts entered into during any 6-year period. The Senate 
amendment enrolls 13,273,000 acres annually at a national 
average cost of $19 per acre. (Section 2391 and 2341 of the 
Senate amendment)
      The conference substitute provides that the allocation of 
acres to each State shall be based primarily on each State's 
proportion of eligible acres to the total number of eligible 
acres in all States. The Secretary shall also consider the 
extent and magnitude of conservation needs associated with 
agricultural production in each State, the degree to which 
implementation of the program is or will be effective in 
helping producers address those needs and other considerations 
in order to achieve equitable geographic distribution of funds.
      In carrying out the program on a continuing enrollment 
basis, a producer can apply at any time during the year for the 
program, but the application will only be ranked at the time 
determined by the Secretary. The Managers intend for the 
program to be available nationwide to all agricultural 
producers, not only in specific watersheds or geographic 
regions within a State. The Managers specifically intend that 
the program not be restricted to particular watershed 
enrollments.
      The Conference substitute requires the Secretary to 
undertake outreach activities and provide appropriate technical 
assistance to specialty crop and organic producers and to 
ensure they can effectively compete in the program. In 
providing outreach and technical assistance, the Managers 
encourage the Secretary to provide appropriate training to 
field staff to enable them to work with these producers and to 
utilize cooperative agreements and contracts with 
nongovernmental organizations with expertise in delivering 
organic educational and technical assistance to these 
producers.
      Payments under the program are limited to $200,000 for 
all contracts entered into by a producer in any 5-year period. 
This provision requires direct attribution to real persons. The 
Managers emphasize that direct attribution is a mandatory 
requirement. The Managers do not intend for the Secretary to 
pay for no-till or other common practices that have no cost to 
the producer.
      The Managers encourage the Secretary to conduct outreach 
to encourage producers who are transitioning land out of the 
conservation reserve program to protect conservation values by 
enrolling in CSP. As part of this transition from land 
retirement to working lands conservation, the Managers urge the 
Secretary to encourage producers to maintain the land in a 
grass-based production system with appropriate wildlife 
protections through CSP or to adopt advanced resource-
conserving cropping systems through CSP in tandem with placing 
conservation buffers and other appropriate partial field 
conservation practices, farmed wetlands, or special wildlife 
habitat practices in the continuous CRP. (Section 2301 of 
Conference substitute)

(11) Grassland Reserve Program (Section 1238N-1238Q of FSA)

            (a) Establishment and purpose (Section 1238N)
      The House bill establishes an enrollment goal of 
1,340,000 acres by 2012. It revises the enrollment process to 
be based on acreage rather than funding and requires that at 
least 60 percent of program acreage be in long term easements 
and agreements. It adds a priority for enrolling CRP acres, 
except that no more than 10 percent of the acreage enrolled in 
any year may be from CRP; and prohibits duplicate payments for 
such land enrolled in GRP. It establishes that the method for 
determining the fair market value of enrolled land will be an 
appraisal, a market survey, a geographic cap, or the landowner 
offer; whichever results in the lowest amount of compensation 
to be paid. It authorizes the Secretary to enter into 
agreements with States and their subdivisions to advance the 
purposes of the program through a grassland reserve enhancement 
option. (Section 2104 of the House bill)
      The Senate amendment eliminates short-term rental 
agreements and the requirement for enrollment of at least 40 
contiguous acres. It provides for enrollment of land through 
30-year contracts and easements and permanent easements. The 
30-year contract option is included to encourage tribal 
participation in the program. A new authority is added for the 
Secretary to enter into cooperative agreements with eligible 
entities for the purpose of purchasing, holding, monitoring, 
and enforcing easements. The Senate amendment adds a definition 
of eligible entity, expands eligible land to include land that 
contains historical or archeological resources or would further 
goals of certain fish and wildlife plans or initiatives, and 
specifies that easements of the maximum duration by State law 
are equivalent to permanent easements. (Section 2381 of the 
Senate amendment)
      The Conference substitute adopts an acreage enrollment 
goal of an additional 1,220,000 acres by 2012. The Conference 
substitute includes 10-, 15-, and 20-year rental contracts and 
permanent easements. Easements of the maximum duration allowed 
by State law are considered as permanent easements. The 
Managers expect that the 20-year rental contracts will be used 
to encourage tribal group participation in the program.
      The Conference substitute strikes the House priority for 
60 percent of acreage in long term contracts and retains 
current law that 60 percent of the funds would be dedicated to 
easements, while 40 percent of the funds would be dedicated to 
short term contracts. In addition, the Conference substitute 
adopts a priority for enrollment of CRP land with a 
modification to clarify that the priority applies upon 
expiration of the CRP contract.
      The Conference substitute adopts the Senate additions to 
eligible land with technical corrections. It does not include a 
Grassland Reserve Enhancement provision. It adopts the Senate 
definition of eligible entity and authority for the Secretary 
to enter cooperative agreements with entities to purchase 
easements. It also adopts the House bill provision in regard to 
the method for determining fair market value with a technical 
correction.
            (b) Requirements relating to easements and contracts 
                    (Section 1238O)
      The Senate amendment modifies terms and conditions of 
easements and agreements to permit fire presuppression and 
addition of grazing-related activities, such as fencing and 
livestock watering. Criteria for evaluating applications for 
enrollment are expanded to provide additional flexibility to 
the Secretary, and in the case of agreements with eligible 
entities, to provide a priority to applications that include a 
cash contribution or leverage other resources toward the 
purchase price of easements.
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
The Managers expect these additions to encourage improved 
management of enrolled acreage, particularly where breaking of 
the soil surface may be required to manage invasive species or 
improve grazing systems, and to leverage additional resources 
for the protection of grasslands.
      The Conference substitute adds implementation of a 
grazing management plan as a new general requirement of 
landowners enrolling in the program. With the inclusion of a 
grazing management plan, the Managers emphasize the 
conservation purpose of the program, but further clarify that 
once established these plans are modified only by mutual 
agreement of the involved parties.

(c) Payments (Section 1238P)

      The Senate amendment strikes rental agreement payments 
and modifies the rate of compensation for restoration 
agreements. Permanent easements will be paid at a rate of not 
less than 90 nor more than 100 percent of the eligible 
restoration costs. Thirty-year easements and contracts will be 
at the rate of not less than 50 nor more than 75 percent of the 
eligible restoration costs. The compensation schedule is 
lengthened to allow for up to 30 annual payments, corresponding 
to the newly established 30-year contract agreement.
      The House bill has no comparable provision.
      The Conference substitute adopts the cost-share rate for 
restoration agreements of not more than 50 percent of the costs 
of carrying out restoration activities.

(d) Delegation to private organizations (1238Q)

      The House bill expands on the authority of the Secretary 
to transfer easement titles to private organizations and to 
also allow entities to own and write easements under this 
section, subject to periodic inspections by the Secretary.
      The Senate amendment provides authority for the Secretary 
to enter into cooperative agreements with eligible entities for 
those entities to purchase, own, enforce, and monitor 
easements. Terms and conditions of cooperative agreements 
require entities to demonstrate qualifications, specify parcels 
to be enrolled, allow substitutions as agreed to by the 
parties, specify entity reporting on fund use, allow entities 
to use their own easement instruments, require appraisals using 
an industry approved method, allow a landowner contribution as 
a share of the purchase price, and specify a payment schedule. 
The Secretary shall require easements to contain a contingent 
right to protect the public investment.
      The Conference substitute adopts the Senate amendment 
provision for cooperative agreements between the Secretary and 
eligible entities with a modification to the language 
specifying that eligible entities shall assume costs of 
administering and enforcing easements.
      The Conference substitute adopts a requirement for a 
contingent right of enforcement. In selecting offers from 
eligible entities for funding, the Managers expect the 
Secretary to consider the sufficiency of the offer regarding 
effective monitoring and enforcement, reversionary interest, or 
other such factors that will affect the long-term integrity of 
easement being acquired under the program. The Conference 
establishes that eligible entities shall provide a share of the 
easement purchase price that is equal to the share provided by 
the Secretary. (Section 2403 of Conference substitute)

(12) Environmental Quality Incentives Program

              (a) Purposes (Section 1240 of FSA)
      The House bill adds forest management and organic 
transition as purposes of the program. It adds forest land and 
conserving energy to the list of purposes for installing 
conservation practices. Energy use, organic transition, and 
forest management are added to the list activities for which 
the Secretary will assist producers in making cost-effective 
changes. (Section 2105(a) of the House bill)
      The Senate amendment adds forest management as a purpose 
of the program and adds forest land conservation and 
pollinators to the list of purposes for installing conservation 
practices. Fuels management and forest management are added to 
the list activities for which the Secretary will assist 
producers in making cost-effective changes. (Section 2351 of 
the Senate amendment)
      The Conference substitute adopts the House bill with 
amendment. Forest management is added to the program purpose, 
and forest land and energy conservation are added to the 
resources to benefit from the installation of conservation 
practices. Fuels management and forest management are added to 
the list activities for which the Secretary will assist 
producers in making cost-effective changes. The Managers 
recognize the significance of the changes made to the program 
to reflect new needs and concerns. The Managers expect the 
Secretary to continue to help producers address conservation 
needs on their land while promoting agricultural production and 
environmental quality as compatible goals.
              (b) Definitions (Section 1240A)
      The House bill adds definitions for integrated pest 
management, socially disadvantaged farmer or rancher, and adds 
alpaca and bison to the definition of livestock. It also adds 
forest management and silviculture to land management practices 
for purposes of the program.
      The Senate amendment adds a definition of producer that 
includes custom feeders and contract growers. It modifies 
eligible land to include private nonindustrial forest land and 
lands used for pond-raised aquaculture production. The 
amendment adds forest and fuels management and conservation 
planning to practices for purposes of the program.
      The Conference substitute adopts the Senate amendment 
with an amendment to modify eligible land. The Managers intend 
for the Department to continue to provide assistance to custom 
feeders and contract growers through this program.
              (c) Establishment (Section 1240B)
      The House bill adds organic certification as a practice 
eligible for cost share payments; amends the exception to 
establish a 90-percent cost-share rate for beginning and 
socially disadvantaged farmers or ranchers and provides 90-
percent cost-share for use of gasifier technology. It allows 
for the use of an approved third party for technical 
assistance. Energy efficient improvements and renewable energy 
systems are added to practices eligible for incentive payments. 
Promotion of pollinator habitat is added to the Special Rule 
for determining incentive payment rates. The Secretary is 
directed to reserve for 90 days not less than 5 percent of 
program financial assistance for each of beginning farmers or 
ranchers and socially disadvantaged farmers or ranchers. It 
makes market agencies and custom feeding businesses eligible 
for technical and financial assistance. (Section 2105(c) 
through (h) of the House bill)
      The Senate amendment adds conservation plans to practices 
eligible for incentive payments, reduces the maximum contract 
term to 5 years, and strikes the provision on bidding down. The 
cost-share rate exception for beginning and socially 
disadvantaged farmers or ranchers is amended to allow variable 
payment, not to exceed 90 percent, and authority to provide 
advance payments up to 30 percent for the purchase of materials 
or contracting. A guaranteed loan eligibility provision is 
included for eligible applicants that are not accepted into the 
program. Predator deterrence practices are added to the Special 
Rule for determining incentive payment rates. The Senate 
amendment authorizes assistance for water conservation and 
irrigation efficiency practices, air quality improvement 
practices and establishes a minimum eligibility requirement for 
program participation. (Section 2353 of the Senate amendment)
      The Conference substitute extends the program through 
2012 and maintains the 60 percent livestock funding allocation 
through 2012. It deletes the Senate provision on contract terms 
(1240B(b)(2)(B)) and bidding down (1240B(c)).
      The Conference substitute does not include the Senate 
provision on the Special Rule (1240B(e)(2)). The Managers 
recognize that proactive, non-lethal options to deter predators 
protected by the Endangered Species Act of 1973, as well as 
delisted populations of gray wolves, grizzly bears, and black 
bears, are consistent with the purposes of EQIP.
      The Conference substitute deletes the House provision on 
cost-share for gasifier technology. The Managers recognize the 
merits of new technologies, including gasification, as a means 
of safely disposing animal carcasses, thereby minimizing 
environmental impacts and threat of disease. As such, the 
Managers encourage the Secretary to consider EQIP applications 
involving poultry gasification and offer cost-share assistance 
of up to 75 percent.
      The Conference substitute adopts the Senate provision for 
advance payments for beginning, socially disadvantaged and 
limited resource farmers or ranchers and deletes the Senate 
provision for guaranteed loan eligibility. The Conference 
substitute adopts the Senate provision with an amendment for 
cost-share rates and advance payments for beginning, socially 
disadvantaged, and limited resource farmers or ranchers.
      The Managers expect EQIP to be available to organic 
producers for conservation activities related to organic 
transition and production. The Managers expect EQIP to be 
available to producers who are transitioning their operations 
to certified organic production and organic producers who may 
be transitioning additional acres or animal herds. The Managers 
are aware that organic conversion is a management-intensive 
activity and therefore encourage the Secretary to provide 
levels of technical and education assistance for organic 
conversion commensurate to the need.
            (d) Evaluation of offers (Section 1240C)
      The House bill adds criteria to prioritize applications 
more completely and to evaluate applications in logical 
groupings relative to similar crop, livestock, or operation 
types. The Secretary is directed to ensure that the evaluation 
process is streamlined for applicants that have an 
environmental management system in place or seek to complete an 
existing system. (Section 2105(i) of the House bill)
      The Senate amendment adds a priority for applications 
that propose to improve existing practices or to complete a 
conservation system. (Section 2354 of the Senate amendment)
      The Conference substitute adopts the House bill with an 
amendment on priority for applications. The Managers intend 
this evaluation process to prioritize State, regional, or local 
resource concerns, as well as allow for the grouping of 
applications of similar agriculture operations to allow for 
more equitable consideration.
            (e) Duties of producers (Section 1240D)
      The House bill and Senate amendment modify the duties of 
producers to prohibit owners of enrolled forest land from 
conducting practices that may defeat the program purposes. 
(Section 2105(j) of the House bill and Section 2355 of the 
Senate amendment)
      The Conference substitute adopts the House bill 
provision.
            (f) Environmental Quality Incentives Program plan (Section 
                    1240E)
      The House bill adds a forest provision to allow a forest 
management plan, forest stewardship plan, or similar plan to 
serve as a plan of operations. The House bill authorizes the 
Secretary to consider a permit required under a regulatory 
program to serve as a plan of operations in order to avoid 
duplication in planning. (Section 2105(k) of the House bill)
      The Senate amendment allows a producer organization to 
act on behalf of its membership in submitting applications or 
conducting similar activities to facilitate program 
participation. The Senate amendment includes a provision for 
forest plans similar to the House bill. (Section 2356 of the 
Senate amendment)
      The Senate amendment establishes a Chesapeake Bay 
Watershed Conservation Program under EQIP to assist producers 
in applying conservation practices on agricultural and 
nonindustrial private forestland in the Bay watershed to 
address natural resource concerns related to agriculture. 
(Section 2361 of the Senate amendment)
      The Conference substitute adopts the House provision 
regarding forest land.
      The Conference substitute strikes the Senate amendment 
provision on producer organizations. The Managers intend for 
the Secretary to allow producer associations and farmer 
cooperatives to act on behalf of their members in submitting 
applications, plans, or other program materials for their 
members to participate in this program. The Managers expect the 
Secretary to clarify this option in any rule or procedure 
related to this program.
      The Conference substitute adopts a modification to the 
House bill provision to consider a permit required under a 
regulatory program to serve as a plan of operations. The 
Managers intend this addition to reduce duplication in planning 
but expect that the plan developed for a regulatory permit 
should contain the elements equivalent to those required in a 
Plan of Operations, including practices to be implemented, 
objectives of the plan, and any relevant terms and conditions 
to carry out the plan.
            (g) Duties of the Secretary (Section 1240F)
      The House bill requires the Secretary to provide 
assistance for a practice intended to conserve water if it will 
result in a reduction in consumptive water use, saved water 
remains in the source, and the practice will not result in 
increased consumptive use on the producer's operation. (Section 
2105(l) of the House bill)
      The Senate amendment has no comparable provision.
      The Conference substitute retains current law. The 
Managers address the intent of the House bill under 
modifications made in Section 1240B to provide assistance for 
water conservation or irrigation efficiency improvements.
            (h) Limitation on payments (Section 1240G)
      The House bill moves the limitation on payments to 
Section 2409. (Section 2409(b) of the House bill)
      The Senate amendment includes a provision to require 
direct attribution of payments. (Section 2357 of the Senate 
amendment)
      The Conference substitute provides for a payment limit of 
$300,000 over 6 years. The Secretary is provided with the 
authority to waive that limit to $450,000 in cases of special 
environmental significance. Projects of special environmental 
significance include methane digesters, other innovative 
technologies, and projects that will result in significant 
environmental improvement. The Secretary is expected to utilize 
this waiver to achieve the purposes of the program. (Section 
2508 of Conference substitute)

  (12) Conservation Innovation Grants (Section 1240H of FSA)

      The House bill adds forest resource management as an 
eligible grant activity and adds eligible projects to include 
those that ensure the efficient and effective transfer of 
technologies. The House bill provides mandatory funding for a 
comprehensive conservation planning project in the Chesapeake 
Bay Watershed, incentive and cost-share payments for air 
quality concerns, and increased benefits for specialty crop 
producers.
      The Senate amendment clarifies the purpose of the grants 
are to develop and transfer innovative conservation technology. 
The amendment seeks to increase participation by specialty crop 
producers.
      The Conference substitute adopts the House provisions 
related to forest resource management and air quality.
      The Conference substitute provides $150,000,000 to help 
producers address air quality concerns. The Managers expect 
funds will be used to provide financial assistance to producers 
for air quality improvements that help them comply with 
Federal, State, or local air quality requirements associated 
with agricultural operations. The funds should be used for 
cost-effective methods in addressing air quality and to reduce 
emissions and pollutants from operations, including making 
improvements in mobile or stationary equipment such as engines.
      The Managers believe conservation programs as implemented 
by USDA should recognize the use of innovative technology such 
as enhanced efficiency fertilizers. Enhanced efficiency 
fertilizers, which can protect water quality and reduce 
greenhouse emissions, include slow and controlled-release 
fertilizers (absorbed, coated, occluded or reacted) and 
stabilized nitrogen fertilizers (urease and nitrification 
inhibitors and nitrogen stabilizers) and are recognized by 
State regulators of fertilizers. (Section 2509 of Conference 
substitute)

(13) Ground and surface water conservation (Section 1240I of FSA)

      The House bill modifies the purpose of the existing 
Ground and Surface Water Conservation Program (GSWCP) to allow 
cooperative agreements between the Secretary, producers, 
government entities, and Tribes to achieve regional water 
quality or quantity goals in water quality priority areas. 
(Section 2106(a) of the House bill)
      The House bill requires the Secretary to invite 
prospective partners to submit competitive grant proposals for 
a Regional Water Enhancement Program. Proposals will be 
competitively awarded based on the inclusion of the most lands 
and producers; the most activities versus costs; contribution 
to sustaining or enhancing agricultural production or rural 
economic development; development of performance measures to 
measure long term effectiveness; the capture of surface water 
runoff; the participation of multiple interested persons in 
improving issues of concern; and the assistance provided to 
producers to meet regulatory requirements that reduce the 
economic scope of their operation.
      The House bill provides $60,000,000 to be available for 
each of fiscal years 2008 through 2012.
      The Senate amendment maintains the existing GSWCP and 
provides an increase in funding from $60,000,000 to $65,000,000 
per year. The provision provides funding for each State that 
received funding under the program in previous years in an 
amount that is the simple average of funds provided for fiscal 
years 2002-2007 or the amount provided in 2007, whichever is 
greater. For States over the Ogallala Aquifer, not less than 
the greater of $3,000,000 or the average of funds provided for 
fiscal years 2002-2007 is provided.
      The Conference substitute adopts the House provision with 
an amendment. The substitute creates the Agricultural Water 
Enhancement Program (AWEP) and provides an additional 
$40,000,000 in mandatory funding for the program.
      The purpose of AWEP is to address water quality and water 
quantity concerns on agricultural land. The Managers expect the 
Department to balance its resources among the needs of 
producers in performing water quantity and quality activities. 
The Managers intend for producers to participate in the program 
directly or with other producers who have come together with a 
partner. The Managers intend for the Department to manage the 
program so that a producer who chooses to participate as an 
individual has the same opportunities as one who chooses to 
participate with a partner.
      The purpose of authorizing partners in AWEP is to 
leverage federal funds and to encourage producers to 
collectively address specific water quality or quantity 
concerns. The Managers intend for the program to be delivered 
according to applicable program rules. Any federal funding must 
be delivered to producers; no federal funding may be used to 
cover the administrative expenses of partners.
      The Managers expect the Department to require partners to 
clearly state their objectives and describe how they intend to 
leverage federal funds and the water quantity or water quality 
issues they intend to address. The Managers encourage the 
Department to require the measurement and quantification of 
actual resource outcomes as part of AWEP projects.
      The Managers recognize that water quantity conservation 
is a significant nation-wide concern. The Ogallala Aquifer is a 
critical source of groundwater for agricultural and municipal 
uses. Due to the scope and significance of the aquifer, there 
is a need for regional efforts to address groundwater 
management in the region. The Managers urge the Department to 
work with States and agricultural producers in the Ogallala 
region to coordinate Federal assistance with State programs and 
to encourage cooperation among States in implementing 
conservation programs and water reduction practices.
      The Managers recognize that water use efficiency projects 
are an important means to encourage water conservation and 
expect the Department to continue to support such activities. 
The Managers intend that additional significance should be 
placed on water conservation practices that convert irrigated 
farming to dryland farming to encourage substantial water 
savings.
      To ensure the effectiveness of proposals that convert 
irrigated farming to dryland farming, the Managers have 
included provisions to allow the Department to fund proposals 
for an extended period of five years. In setting the payment 
rate, the Secretary should take into account the change in the 
land value of converting an irrigated farming operation to a 
dryland farming operation.
      The Managers intend for the Department to make the 
construction of small, on-farm reservoirs or irrigation ponds 
eligible for assistance through AWEP in drought- stricken 
areas. The Managers intend the Department to use the Drought 
Monitor as a guide to determine the areas eligible. Any area 
that has received a D4 drought designation for a month-long 
period during the previous two years should be eligible. The 
Managers intend the ponds to be no more than 40 acres in size.
      The Managers believe these ponds and related activities 
will benefit wildlife and demonstrate the potential to capture 
on-farm surface water runoff in an environmentally beneficial 
manner. The Managers do not intend for any State water 
regulation or law to be waived.
      In utilizing the authority to waive the eligibility 
provisions in Section 1001D, the Managers expect the Secretary 
to take into account the need to accomplish the purposes of the 
program by enrolling land that would be ineligible to 
participate in other conservation programs.
      The Managers intend for the Secretary to give priority to 
producers in six priority areas: The Eastern Snake Plain 
Aquifer region, Puget Sound, the Ogallala Aquifer, the 
Sacramento River watershed, Upper Mississippi River Basin, the 
Red River of the North Basin, and the Everglades. (Section 2510 
of Conference substitute)

(14) Grassroots Source Water Protection Program (Section 1240O of FSA)

      The House bill increases the appropriations authorization 
from $5,000,000 each fiscal year to $20,000,000 each fiscal 
year through 2012. The provision provides a one-time infusion 
of $10,000,000 in mandatory funding to be available until 
expended. (Section 2107 of the House bill)
      The Senate amendment is similar but does not include the 
one-time infusion of $10,000,000 in mandatory funding. (Section 
2394 of the Senate amendment)
      The Conference substitute adopts the Senate provision. 
(Section 2603 of Conference substitute)

(15) Conservation private grazing land (Section 1240M of FSA)

      The House bill (Section 2108) and the Senate amendment 
(Section 2392) extend the program through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 2601 of Conference substitute)

(16) Great Lakes Basin Program for Soil Erosion and Sediment Control 
        (Section 1240P of FSA)

      The House bill extends the program through 2012. (Section 
2109 of the House bill)
      The Senate amendment extends the program through 2012 and 
clarifies that the purpose of the program is to assist in 
implementing the recommendations of the Great Lakes Regional 
Collaboration Strategy to Restore and Protect the Great Lakes. 
(Section 2395 of the Senate amendment)
      The Conference substitute adopts the Senate provision 
with an amendment that includes using the recommendations of 
the Great Lakes Regional Collaboration Strategy as a basis for 
soil erosion and sediment control projects. (Section 2604 of 
Conference substitute)

(17) Discovery Watershed Demonstration Program (Section 1240Q of FSA)

      The Senate amendment establishes that the Secretary shall 
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 ways 
of reducing nutrient loss to surface waters from agricultural 
lands. It allows for the Secretary to establish or identify 
appropriate partnerships to select the watersheds and to 
encourage cooperative efforts among the Secretary and State, 
local, and nongovernmental organizations. The amendment 
provides criteria for the selection of watersheds and prohibits 
the use of funds for administrative expenses. (Section 2397 of 
the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the House provision and 
does not include the program.
      The Managers recognize that the loss of nitrogen and 
other nutrients from agricultural land impacts water quality in 
many parts of the nation. This is of particular concern in the 
States of the Upper Mississippi River basin.
      The Discovery Watershed Demonstration Program was 
intended to address this loss of nutrients in these States 
through management projects operating on a watershed scale. The 
projects were to be based on agriculture-related water quality 
problems and include widespread participation from local 
producers in the selected watershed.
      In Section 2707, the substitute provides for the 
Cooperative Conservation Partnership Initiative (CCPI), which 
is designed to encourage these types of activities. Given the 
cooperative nature of the proposed Discovery Watershed program, 
the Managers encourage the Secretary to consider locally 
developed projects for funding under CCPI.

(18) Emergency Landscape Restoration Program (Section 1240R of FSA)

      The Senate amendment replaces the Emergency Conservation 
Program (ECP) and the Emergency Watershed Program (EWP) with a 
new Emergency Landscape Restoration Program. The purpose of the 
Emergency Landscape Restoration Program is to rehabilitate 
watersheds, nonindustrial private forest lands, and working 
agricultural lands adversely affected by natural catastrophic 
events.
      The amendment authorizes such sums as necessary, provides 
for the temporary administration of ECP and EWP until final 
regulations are formulated, and repeals ECP and EWP. (Section 
2398 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the House provision and 
does not include the program.

(19) Farm and Ranchland Protection Program (Section 1238I of FSA)

      The House bill establishes a certification process for 
States. It allows grants to be made to certified States based 
on the demonstrated need for farm and ranch land protection. Up 
to 10 percent of those funds may be used for the costs of 
purchasing and enforcing easements. The bill states that the 
Secretary may also enter into agreements with eligible 
entities. The terms and conditions of the agreements must be 
consistent with the purposes of the program, as well as include 
a requirement consistent with agricultural activities regarding 
impervious surfaces. It also requires the use of a conservation 
plan for highly erodible cropland.
      The House bill provides for the Federal Government to 
retain a Federal contingent right of enforcement or executory 
limitation in an easement to ensure its enforcement. This right 
is not considered an acquisition of property.
      The House bill provides cost-share assistance for 
purchasing an easement, but the assistance may not exceed 50 
percent of the appraised fair market value of the easement. The 
fair market value is determined by an appraisal using an 
industry-approved method. (Section 2110 of the House bill)
      The Senate amendment modifies the definition of eligible 
forest land to include land that contributes to the economic 
viability of an operation or serves as a buffer. It also amends 
the definition to include land that is incidental to other 
eligible land to ensure efficient administration of the 
program. The provision requires the Secretary to enter into 
cooperative agreements with eligible entities as long as the 
terms and conditions of the cooperative agreement include: 
entity qualifications, specific projects, substitution of 
projects, use of funds, flexibility to use unique terms and 
conditions for easements, impervious surface limitation, 
appraisal method, and charitable contributions.
      The Senate amendment requires the protection of Federal 
investment through an executory limitation, but specifies that 
the executory limitation is not a Federal acquisition of real 
property and will not trigger any Federal appraisal or other 
real property requirements.
      The amendment limits the amount the Secretary can share 
in the costs of purchasing the easement to 50 percent of the 
appraised fair market value and establishes minimum amounts 
entities pay based on the amount of landowner contributions. 
The Senate amendment requires appraisals based on Uniform 
standards of Professional Appraisal Practice or any other 
industry-approved standard. (Section 2371 of the Senate 
amendment)
      The Conference substitute adopts the House provision with 
amendment.
      The Managers expect the changes to the Farmland 
Protection Program (FPP) will provide flexibility and certainty 
to program participants. The substitute makes changes to the 
administrative requirements, appraisal methodology, and terms 
and conditions of cooperative agreements which shall make the 
overall program more user-friendly.
      The substitute clarifies the purpose of the program as 
protecting land for agricultural use by limiting 
nonagricultural uses of the land. The substitute adopts the 
Senate provision to modify the definition of eligible land to 
include forestland and other land that contributes to the 
economic viability of an operation.
      The substitute establishes a certification process 
similar to the House bill for all eligible entities. To become 
certified, entities must have the authority and resources to 
enforce easements, polices in place that are consistent with 
the purposes of the program, and clear procedures to protect 
the integrity of the program.
      The substitute adopts terms and conditions for 
cooperative agreements similar to the Senate amendment. The 
cooperative agreement sets forth the working relationship 
between the Department and the entity in carrying out the 
program. The terms and conditions will stipulate the length of 
the agreement; allow for the substitution of qualified 
projects; and maintain, at a minimum, that the agreement is 
consistent with the purpose of the program, provide for 
adequate enforcement of the easement, and include a limit on 
impervious surfaces. Once an entity is certified, it may enter 
into an agreement for a minimum of five years with the 
Department. Non-certified entities may enter into agreements of 
not less than 3, but not more than 5 years. In selecting offers 
from eligible entities for funding, the Managers expect the 
Secretary to consider the sufficiency of the offer regarding 
effective monitoring and enforcement, reversionary interest, or 
other such factors that will affect the long-term integrity of 
easement being acquired under the program.
      The Managers intend any violation of the terms and 
conditions will result in a penalty to the eligible entity and 
the agreement will remain in place. It is the expectation that 
the violation and penalty terms will be outlined in all 
cooperative agreements between the eligible entity and the 
Secretary.
      The substitute provides for the Federal Government to 
retain a Federal contingent right of enforcement in an easement 
to ensure its enforcement. The Managers do not intend this 
right to be considered to be an acquisition of real property, 
but in the event an easement cannot be enforced by the eligible 
entity the Federal Government shall ensure the easement remains 
in force. (Section 2401 of Conference substitute)

  (20) Farm Viability Program (Section 1238J of FSA)

      The House bill reauthorizes the program through 2012. 
(Section 2111 of the House bill)
      The Senate amendment reauthorizes the program through 
2012. (Section 2396 of the Senate amendment)
      The Conference substitute adopts the House provision. 
(Section 2402 of Conference substitute)

(21) Wildlife Habitat Incentive Program (Section 1240N of FSA)

      The House bill reauthorizes the program through 2012. The 
bill raises the cost-share limitation for long-term projects 
from 15 percent to 25 percent. It also increases the cost-share 
rate for long-term agreements and activities that assist 
producers in meeting a regulatory requirement that impacts the 
economic scope of their operation from 15 to 25 percent. 
(Section 2111 of the House bill)
      The Senate amendment authorizes Secretary to make 
incentive payments and increases the percentage of funds that 
can be used for projects longer than 15 years from 15 percent 
to 25 percent. The Senate amendment requires the Secretary to 
give priority to projects that would further the goals and 
objectives of State, regional, and national fish and wildlife 
conservation plans and initiatives. (Section 2393 of the Senate 
amendment)
      The Conference substitute adopts the House provision with 
an amendment. The substitute increases the limitation on cost-
share payments for long-term projects to 25 percent and focuses 
the program on agricultural and nonindustrial private forest 
lands.
      The substitute allows the Secretary to provide priority 
to projects that address issues raised by State, regional, and 
national conservation initiatives. These `State, regional and 
national conservation initiatives' may include such things as 
the North American Waterfowl Management Plan, the National Fish 
Habitat Action Plan, the Greater Sage-Grouse Conservation 
Strategy, the State Comprehensive Wildlife Conservation 
Strategies (also referred to as the State Wildlife Action 
Plans), the Northern Bobwhite Conservation Initiative, and 
State forest resource strategies. The Managers intend for the 
Secretary to consider the goals and objectives identified in 
relevant fish and wildlife conservation initiatives when 
establishing State and national program priorities, scoring 
criteria, focus areas, or other special initiatives. The 
Managers expect the Department to work with conservation 
partners and State and Federal agencies, to the extent 
practicable, to complement the goals and objectives of these 
additional plans through USDA programs. (Section 2602 of 
Conference substitute)

(22) Agricultural Management Assistance Program (Section 524(b)(1) of 
        Federal Crop Insurance Act)

      The House bill adds Virginia and Hawaii as eligible 
States. It requires that 50 percent of available funds shall be 
used for construction or improvement of watershed management or 
irrigation structures, planting trees for windbreaks or 
improving water quality, and mitigating risk through 
diversification or various conservation practices; 40 percent 
may be used for any activity relating to risk management 
activities, including entering agriculture trade options, 
futures, or hedging; and 10 percent shall be used for organic 
certification cost-share assistance. (Section 2201 of the House 
bill)
      The Senate adds Idaho as a participating State, extends 
the program through 2012, and provides an additional 
$10,000,000 per year to the program (Section 524(b)(4)(B)(ii)) 
through 2012. (Section 2601 of the Senate amendment)
      The Conference substitute adopts the House provision with 
an amendment and includes Hawaii as an eligible State. The 
Conference substitute provides an additional $25,000,000 in 
mandatory funding for fiscal years 2008 through 2012. (Section 
2801 of Conference substitute)

(23) Resource Conservation and Development Program (Section 1528 of 
        Agriculture and Food Act of 1981)

      The House bill clarifies that an area plan must be 
developed through a locally led process, and that the planning 
process must be conducted by a local council. It also provides 
that the Secretary shall designate a coordinator to provide 
technical assistance to councils. (Section 2202 of the House 
bill)
      The Senate amendment is comparable to the House. (Section 
2605 of the Senate amendment)
      The Conference substitute adopts the Senate provision. 
(Section 2805 of Conference substitute)

(24) Small watershed rehabilitation (Section 14 of the Watershed 
        Protection and Flood Prevention Act)

      The House bill provides $50,000,000 in mandatory funding 
for fiscal years 2009 through 2012. It authorizes 
appropriations for fiscal years 2007 through 2012 at the 
current funding level of $85,000,000 per year. (Section 2203 of 
the House bill)
      The Senate amendment extends program to 2012 and 
authorizes appropriations for fiscal years 2008 through 2012 as 
such sums as necessary. (Section 2604 of the Senate amendment)
      The Conference substitute adopts the House provision and 
provides $100,000,000 in mandatory funding for fiscal year 2009 
to remain available until expended. (Section 2803 of Conference 
substitute)

(25) Chesapeake Bay Program for Nutrient Reduction and Sediment Control 
        (Section 1240Q of FSA)

      The House bill creates a new program at the Department to 
provide financial assistance to producers to minimize excess 
nutrients and sediments in order to restore, preserve, and 
protect the Chesapeake Bay. The program directs the Secretary 
to develop and implement a comprehensive plan to provide for 
innovative approaches to advance the improvement of water 
quality and enhance wildlife habitat. Critical projects include 
those in the Susquehanna, Shenandoah, Potomac and Patuxent 
River basins. The House bill includes a Sense of Congress that 
the Department is authorized and should be a member of the 
Chesapeake Bay Executive Council.
      The Senate bill has no comparable provision.
      The Conference substitute adopts the House provision with 
amendment.
      The Chesapeake Bay is the nation's largest estuary. In 
2000, Chesapeake Bay partners agreed to target water quality 
and habitat restoration as goals to improve the health of the 
Bay and its living resources. According to current estimates, 
the Bay will not meet the 2012 agreement without a better 
coordinated plan and greater targeting of resources.
      Farmers in the Chesapeake Bay region are under some of 
the most stringent environmental regulations in the country. 
Despite the desire and demand that exists among farmers in the 
region to participate in conservation programs, current funding 
levels and program allocations leave many behind. While the 
reliance upon conservation programs and the need for funding 
may not be unique to the Chesapeake, it is nonetheless uniquely 
critical to the success of the Bay restoration strategy and the 
ability of farmers to meet regulatory requirements.
      The Managers intend the Chesapeake Bay Watershed Program 
be carried out on agriculture and forestlands in the Chesapeake 
Bay through the use of all conservation programs available to 
producers in the region. It is the expectation this program 
will be carried out through existing program mechanisms in 
coordination with other relevant Federal agencies working in 
the Bay watershed, such as the Chesapeake Bay Program Office.
      The special consideration given to the rivers under this 
section are areas of critical need to the overall health of the 
Chesapeake Bay. The Managers intend that the Secretary focus 
initial program resources in these key basins and build upon 
successful implementation elsewhere in the Chesapeake Bay 
Watershed, as appropriate. These funds should be used to 
install practices to help control erosion and nutrient loading 
before it reaches the Bay, and that assessments will be made 
using existing models and information to evaluate the most 
cost-effective strategies for reducing nonpoint source nutrient 
inputs. This program provides $438,000,000 in mandatory funding 
for fiscal year 2009 through fiscal year 2012. (Section 2605 of 
Conference substitute)

(26) Voluntary Public Access and Habitat Incentive Program (Section 
        1240R [House] or 1240S [Senate] of FSA)

      The House bill establishes a voluntary public access 
program under which States and Tribes may apply for grants to 
encourage owners and operators of privately held farm, ranch, 
and forest land to make that land available for wildlife-
dependent recreation. The Secretary shall give priority to 
States and tribal governments that have consistent opening 
dates for migratory bird hunting for both residents and non 
residents. The House bill authorizes $20,000,000 in 
discretionary funding for each of fiscal years 2008 through 
2012. The program does not preempt a State or tribal government 
law, including liability law. (Section 2303 of the House bill)
      The Senate amendment is comparable to the House bill. It 
includes a priority to States where the location of 
participating lands would be available to the public and 
provides $20,000,000 per year in mandatory funding for each of 
fiscal years 2008 through 2012. (Section 2399 of the Senate 
amendment)
      The Conference substitute adopts the Senate provision 
with an amendment. The Conference substitute provides 
$50,000,000 in mandatory funds for this program. The Conference 
substitute includes a 25 percent reduction for the total grant 
amount if the opening dates for migratory bird hunting in the 
State are not consistent for residents and non-residents. 
(Section 2606 of Conference substitute)

(27) Muck soils conservation (Section 2303)

      The House bill establishes a new program under which 
owners or operators of eligible land shall receive payments to 
conserve soil, water, and wildlife resources. Eligible land 
must be comprised of muck soil, be in agricultural production, 
have a spring cover crop, a winter crop, and year-round ditch 
banks seeded with grass. Payments are authorized for between 
$300 and $500 per acre per year. Appropriations are authorized 
at $50,000,000 for each of fiscal years 2008 through 2012. 
(Section 2303 of the House bill)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the Senate provision and 
the provision is deleted. The Managers recognize the unique 
soils throughout the Hudson Valley of New York that are 
classified as muck soils. These soils are former wetlands that 
have been drained with ditches years ago to allow for crop 
production. Due to the extensive networking of drainage 
ditches, normal buffer setback requirements associated with 
current conservation programs take a large percentage of these 
highly productive lands out of production. The Managers 
encourage the Secretary to work through the State 
Conservationist to address the needs of muck soil farmers in 
the Hudson Valley, using existing conservation programs to 
conserve soil, water, and wildlife resources on these lands.

(28) Funding for programs under the Food Security Act of 2985 (Section 
        1241 of FSA)

      The House bill provides $1,454,000,000 for fiscal years 
2007 through 2012 and $1,927,000,000 for fiscal years 2007 
through 2017 for Conservation Security Program contracts 
entered into before Oct. 1, 2007. Conservation Security Program 
contracts entered into on or after Oct. 1, 2011, shall be 
funded in the amount of $5,01,000,000 for fiscal year 2012 and 
$4,646,000,000 for the period of fiscal years 2013 through 
2017.
      The Farm and Ranchland Protection Program is funded at 
$125,000,000 in fiscal year 2008; $150,000,000 in fiscal year 
2009; $200,000,000 in fiscal year 2010; $240,000,000 in fiscal 
year 2011; and $280,000,000 in fiscal year 2012.
      EQIP is funded at $1,250,000,000 in fiscal year 2008; 
$1,600,000,000 in fiscal year 2009; $1,700,000,000 in fiscal 
year 2010; $1,800,000,000 billion in fiscal year 2011; and 
$2,000,000,000 in fiscal year 2012.
      WHIP is authorized at $85,000,000 each of fiscal years 
2008 through 2012. (Section 2401 of the House bill)
      The Senate amendment funds programs in title XII of the 
FSA for each of F 2008-2012 as follows:
            Conservation Security Program--$2,317,000,000 for 
        current contracts to remain available until expended;
            Conservation Stewardship Program--13,273,000 acres 
        for each of fiscal years 2008-2012;
            FPP--$97,000,000 for each of fiscal years 2008-
        2012;
            EQIP--for fiscal years 2008 and 2009: 
        $1,270,000,000; for fiscal years 2010-2012: 
        $1,300,000,000;
            WHIP--Same as House;
            Voluntary Public Access and Habitat Incentives 
        Program--$20,000,000 for each of fiscal years 2008-
        2012; and
            GRP--$240,000,000 for fiscal years 2008-2012. 
        (Section 2401 of the Senate amendment)
      The Conference substitute provides the following in 
additional new budget authority for these programs:
            CSP--$1,100,000,000
            EQIP--$3,393,000,000
            FPP--$773,000,000 (Section 2701of Conference 
        substitute)

(29) Conservation access (Section 1241 of FSA)

      The Senate amendment creates a new Conservation Access 
program. The provision requires 10 percent of conservation 
program funds and 10 percent of CRP and WRP acreage enrolled in 
any year be used to assist beginning and socially disadvantaged 
farmers and ranchers with annual gross sales of $15,000 or 
more. Any unused funds are to be re-pooled back to the original 
program and made available to all persons eligible for 
assistance.
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment. The Conference substitute provides that 5 
percent of CSP acres and 5 percent of EQIP funds will be used 
to assist beginning farmers or ranchers, and an additional 5 
percent of each to assist socially disadvantaged farmers or 
ranchers.
      The Managers recognize the importance of providing 
intensive technical assistance to beginning and socially 
disadvantaged farmers or ranchers participating in farm bill 
conservation programs. The Managers encourage the Department to 
provide rates of technical assistance to beginning and socially 
disadvantaged farmers or ranchers commensurate with the special 
needs to ensure high participation levels and substantial and 
lasting conservation benefits.
      In implementing the conservation access provisions, the 
Managers encourage the Secretary to develop, implement, and 
support cooperative agreements with entities, including 
community-based and nongovernmental organizations and 
educational institutions that have expertise in comprehensive 
conservation planning and assistance needs of beginning and 
socially disadvantaged farmers or ranchers.
      The Managers recognize that off-farm employment is a 
necessity for most beginning farmers or ranchers, and that 
transition to a full-time agricultural occupation is a 
substantial challenge. The Managers also recognize the value 
that sound conservation can contribute to an enduring 
agricultural operation and a successful farming or ranching 
livelihood. The Managers intend for the Secretary to give 
priority to Conservation Access resources to beginning farmers 
or ranchers who are, or who are working toward, increasing 
their participation in the farming or ranching operation. 
(Section 2704 of Conference substitute)

(30) Improved provision of technical assistance under conservation 
        programs (Section 1242 of FSA)

      The House bill adds authority for contracting with third 
party providers to provide technical assistance to program 
participants, requires that the payment level for third party 
providers be established based on prevailing market rates where 
available, and directs the Secretary to consult with producers, 
extension and others in a review and revision of conservation 
practice standards to ensure that they are complete and 
relevant. (Section 2402 of the House bill)
      The Senate amendment adds the purpose of technical 
assistance, provides authority for contracting with third party 
providers for technical assistance, and defines entities 
eligible to receive technical assistance under this title. The 
Secretary is directed to provide technical assistance to all 
conservation and Agriculture Management Assistance program 
participants. Where financial assistance is not required, the 
Secretary may enter technical services contracts with program 
participants. (Section 2404 of the Senate amendment)
      The Conference substitute adopts the Senate amendment 
with modifications. The Conference substitute reflects the 
Managers' two priorities for improving the delivery of 
technical assistance: 1) increasing the availability of 
technical assistance, and 2) ensuring that conservation 
technical standards and resources are locally relevant.
      The demand for technical assistance exceeds the present 
supply of technical resources, and the private sector cadre 
envisioned in the 2002 Farm Bill has not developed. The 
modifications made in the substitute are intended to correct 
these deficiencies through authority for use of mandatory funds 
and multi-year contracts with third party providers, 
establishment of fair and reasonable payment rates, and a 
nationally consistent certification process. The requirement 
for approval of State-level certification criteria is intended 
to address the criticism that current requirements, 
particularly those added at the State level, result in a 
complicated and overly burdensome process that discourages 
participation.
      The Managers expect that these changes will provide the 
certainty needed to encourage the development of a successful, 
skilled, and accountable third party provider sector, diminish 
the tension caused by tradeoffs between public and private 
sector resources, and make locally relevant conservation 
technical assistance from public and private sources 
increasingly available and accessible to producers. (Section 
2706 of Conference substitute)

(31) Cooperative Conservation Partnership Initiative (Section 1243 of 
        FSA)

      The House bill requires the Secretary to enter into 2- to 
5-year agreements with eligible entities to preferentially 
enroll producers in specified conservation programs. This will 
allow multiple producers and others to cooperate on improving 
specific resources of concern related to farming on a local, 
State or regional scale. Eligible partners are States, State 
agencies, State subdivisions including counties and 
conservation districts, Tribes, and nongovernmental 
organizations and associations with histories of working with 
farmers on agriculture conservation issues.
      The Conservation Security Program, EQIP, and WHIP are the 
programs covered by the provision. Not less than 75 percent 
shall be used for State projects and not more than 25 percent 
for multi-State projects. It prohibits use of funds to pay for 
partner overhead or administrative costs. (Section 2403 of the 
House bill)
      The Senate amendment includes ``Special Rules Applicable 
to Regional Water Enhancement Projects'' that adds a section to 
the Partnerships and Cooperation section for Regional Water 
Enhancement Projects. This section requires the Secretary to 
identify priority areas and names the following as priority 
areas: Chesapeake Bay, Upper Mississippi River basin, 
Everglades, Klamath River basin, Sacramento/San Joaquin River 
watershed, Mobile River basin, Puget Sound, Ogallala Aquifer, 
Illinois River watershed (of Arkansas and Oklahoma), Champlain 
Basin, Platte River watershed (note: drafting error, this 
should be the Platte River Basin), Republican River Watershed, 
Chattahoochee River watershed, and the Rio Grande watershed.
      The Senate amendment requires proposals to describe 
geographical location, identification of issues, baseline 
assessment, activities to be undertaken, and performance 
measures. It requires competitive awards of multi-year 
contracts for proposals that have the highest likelihood of 
success, involve multiple stakeholders, highest percentage of 
working agricultural lands, highest percentage of on-the-ground 
activities, the greatest contribution to sustaining 
agriculture, and suitable performance measures. (Section 2405 
of the Senate amendment)
      The Conference substitute adopts the House provision with 
an amendment and names the initiative the Cooperative 
Conservation Partnership Initiative (CCPI).
      The Managers intend that resources made available under 
CCPI be delivered in accordance with the basic program rules 
and mechanisms relating to basic program functions, such as 
appeals, payment limitations, and conservation compliance. The 
Conference substitute allows the Secretary to make certain 
programmatic adjustments better fit the local circumstances and 
goals and objectives of the special project identified for 
funding under the initiative. Proposed adjustments may be part 
of the application from the conservation partnership and 
forwarded to the State Conservationist or the Secretary for 
consideration. The Conference substitute provides for 
adjustments to provide producers preferential enrollment in the 
applicable program as part of the special project.
      The Mangers include the following as an example of a CCPI 
partnership: A cannery has closed and nearby orchards are going 
out of business. A local watershed council pulls together 
several partners such as a State university, a wildlife 
organization, and an organic growers' cooperative. They agree 
to work together to improve water quality and wildlife habitat 
while working with interested local producers to transition 
their orchards to organic grass- based cattle operations.
      The watershed council files an application with the 
Department proposing to conduct local producer outreach; 
provide training on transitioning to a new agricultural sector, 
including organic certification and cattle management 
workshops; assist with tree removal; and assist in implementing 
habitat diversity practices with workshops, labor, and seed. 
The council asks for designation of $10,000,000 in EQIP and 
$250,000 in WHIP.
      The State Conservationist agrees with the proposal and 
sets aside the approved resources, which will go to producers 
participating in the project. When the producer applies for the 
programs, they certify that they are a project participant. If 
they are qualified, they bypass the regular program ranking 
processes and enter into a contract in the identified 
program(s). Each program in this example stands on its own and 
all program rules apply. The difference is the streamlined 
application and the process that works to make the programs 
seamless in application.
      The Conference substitute applies to all of the 
Department's conservation programs except CRP, WRP, FPP and 
GRP. The Managers intend that applications may propose projects 
for consideration by the State Conservationist or the Secretary 
that include innovative combinations of covered initiative 
programs, if such combinations aid significantly in meeting the 
goals and objectives of the project. It is also the intent of 
the Managers that applicants may propose projects for 
consideration by the State conservationist or the Secretary 
that might work in tandem with the enhancement programs under 
CRP or WRP. (Section 2707 of Conference substitute)

(32) Regional equity and flexibility (Section 1241 of FSA)

      The House bill raises the base amount of conservation 
funds that a State must receive in order to receive priority 
funding for conservation programs from $12,000,000 to 
$15,000,000. (Section 2404 of House bill)
      The Senate amendment also increases the funding from 
$12,000,000 to $15,000,000 and adds CSP and the Agricultural 
Management Assistance Program to the programs considered in 
determining funding. It instructs the Secretary to 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. 
(Section 2402 of the Senate amendment)
      The Conference substitute adopts the Senate provision 
with an amendment. (Section 2703 of Conference substitute)

(33) Administrative requirements for conservation programs (Section 
        1244 of FSA)

      The House bill authorizes that for socially disadvantaged 
farmers to be added as a group, the Secretary must provide 
incentives to encourage participation in conservation programs. 
The Secretary must establish a single, simplified application 
process for initial requests of assistance under the 
conservation programs administered by NRCS. Applicants should 
not be required to provide information that is already 
available to the Secretary, and the process itself must 
minimize complexity and redundancy. (Section 2405 of the House 
bill)
      The Senate amendment requires the Secretary to develop a 
streamlined application process for conservation programs and 
provide written notification of completion to Congress not 
later than 1 year after enactment. It requires the Secretary, 
at the request of the landowner, to cooperate with the 
Secretary of the Interior and Secretary of Commerce to make 
Safe Harbor assurances available to the landowner under the 
Endangered Species Act. The provision allows producers to apply 
for conservation programs through a producer organization and 
that any applicable payment limits shall apply to individuals 
and not the organization.
      The Senate amendment requires the Secretary to 
immediately implement policies and procedures to ensure proper 
payment to producers participating in conservation programs and 
correct other management deficiencies identified in the OIG 
report 50099-11-SF. It requires the Secretary to monitor and 
measure performance of conservation programs; to demonstrate 
the long-term benefits of the programs; and to coordinate 
program activities with the Soil and Water Resources 
Conservation Act. (Section 2405 of the Senate amendment)
      The Conference substitute adopts the House provision with 
an amendment to include a pollinator provision. Despite their 
value, native pollinators such as bees, butterflies, moths, 
flies, beetles, bats, or hummingbirds often are under-
appreciated in terms of their contributions to the U.S. 
agricultural sector. Insect-pollinated crops directly 
contributed $20,000,000,000 to the United States economy in 
2000 alone. The Managers recognize that many native pollinator 
groups, particularly those important to agriculture, are facing 
a serious risk of decline as a result of habitat loss, 
degradation, and fragmentation, among other factors.
      The Managers see conservation programs as an important 
tool for creating, restoring, and enhancing pollinator habitat 
quantity and quality. The Managers expect the Secretary to 
encourage, within appropriate conservation programs, measures 
to benefit pollinators and their habitat, such as using plant 
species mixes in conservation plantings to provide pollinator 
food and shelter; establishing field borders, hedgerows, and 
shelterbelts to provide habitat in proximity to crops; 
establishing corridors that can expand and connect important 
pollinator habitat patches; and encouraging related pollinator-
friendly production practices. (Section 2708 of Conference 
substitute)

(34) Annual report on participation by specialty crop producers in 
        conservation programs (Section 12512 of FSA)

      The House bill requires the Secretary to submit a report 
to the House and Senate Agriculture Committees regarding 
specialty crop producer participation in conservation programs, 
that tracks participation by crop and livestock type, includes 
a plan to improve access of specialty crop producers to 
conservation programs, and describes the results of this plan. 
(Section 2406 of the House bill)
      The Senate amendment had no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to modify the compliance and performance 
provisions of Section 1244 of FSA to accommodate the intent of 
the House bill. (Section 1244 of FSA)

(35) Promotion of market based approaches to conservation/conservation 
        programs in environmental service markets (Section 1245 of FSA)

      The House bill directs the Secretary to research, analyze 
and enter into contracts and agreements to promote the 
development of uniform standards for quantifying environmental 
benefits, promoting the establishment of credit registries and 
third party verification, and facilitating private sector 
market based approaches for agriculture and forest conservation 
activities. An Environmental Services Standards Board is 
established to develop uniform standards for quantifying 
environmental services in order to help develop credit markets, 
agriculture and forest conservation activities. (Section 2407 
of the House bill)
      The Senate amendment directs the Secretary to establish a 
framework to develop uniform standards, design accounting 
procedures, and establish a protocol to report environmental 
services benefits. It also directed the Secretary to establish 
a registry to report and maintain the benefits and verify that 
a farmer, rancher or forest land owner has implemented the 
conservation or land management activity. The Secretary is 
directed to focus first on carbon markets. (Section 2406 of the 
Senate amendment)
      The Conference substitute adopts the House provision with 
an amendment. The Secretary is directed to establish technical 
guidelines, including a verification process that considers the 
role of third parties. The Secretary is instructed to consult 
with Federal and State agencies and nongovernmental interests, 
such as producers, academia, and financial institutions. The 
Secretary is directed to focus initially on carbon markets, as 
the Managers recognize that this is the most pressing emerging 
market in which agriculture may be involved. The Secretary is 
expected to fulfill the intent of this section with resources 
available to the Department.
      The adoption of this provision recognizes the growing 
opportunities for agriculture to participate in emerging 
environmental services markets. The Managers observe that the 
largest barrier to participation is the lack of standards and 
accounting procedures that make transparent the benefits that 
are being produced and marketed. The Managers believe that the 
most appropriate Federal lead for developing these common 
standards is the Secretary and expect the Secretary to move 
expeditiously to accomplish this task. (Section 2709 of 
Conference substitute)

(36) Establishment of state technical committees (Section 1261 of FSA)

      The House bill changes the existing composition of State 
technical committees to include at least 12 producers 
representing a variety of crops, livestock, or poultry grown in 
the State.
      The House bill states that State technical committees 
shall convene subcommittees to provide technical guidance and 
implementation recommendations. The topics subcommittees must 
address include: establishing priorities and criteria for State 
initiatives; private forestland protection issues; water 
quality and quantity issues; air quality, wildlife habitat, 
wetland protection, and other issues. (Section 2408 of the 
House bill)
      The Senate amendment requires the Secretary to develop 
standard operating procedures to be used by the State technical 
committee in the development of technical guidelines for the 
implementation of the conservation provisions of this title. It 
makes local work groups subcommittees of the State technical 
committee, which exempts them from the Federal Advisory 
Committee Act. (Section 2501 of the Senate amendment)
      The Conference substitute adopts the House provision with 
an amendment. The substitute requires the Secretary to develop 
standard operating procedures for the committees, updates the 
names of participating agencies, and deletes the requirement 
for establishing specific issue-area subcommittees. The 
substitute requires that public notice be given for meetings of 
the State technical committee and adds local working groups as 
subcommittees. The Managers expect that other relevant Federal 
agencies will also be invited to participate as needed. 
(Section 2711 of Conference substitute)

(37) Payment limitation (Section 1246(a-c), 1244(i), 1238C(d), and 
        1240G of FSA)

      The House bill imposes payment limitation of $60,000 per 
fiscal year for any single program; $125,000 for payments from 
more than one program. This limitation does not apply to WRP, 
FPP, or GRP. The House bill requires the Secretary to issue 
regulations ensuring direct attribution. Further, the Secretary 
shall issue such regulations as necessary to ensure that the 
total amount of payments are attributed to an individual by 
taking into account the individual's direct and indirect 
ownership interests in a legal entity that receives payments. 
Payments to individuals shall be combined with the individual's 
pro rata share of payments received by an entity in which the 
individual has a direct or indirect ownership interest. 
Likewise, payments made to an entity shall be attributed to 
those individuals with a direct or indirect ownership interest 
in the entity. (Section 2409 of the House bill)
      The Senate amendment requires the Secretary to use direct 
attribution for all conservation programs. In the case of a 
producer organization, the limitation on payments on applicable 
programs shall apply to each participating producer and not to 
the entity. (Section 2405 and Section 2357 of the Senate 
amendment)
      The Conference substitute moves the payment limitations 
into each individual program and deletes this Section.

(38) Inclusion of income from affiliated packing and handling 
        operations as income derived from farming for application of 
        adjusted gross income limitation on eligibility for 
        conservation programs (Section 1001D(b)(1) of FSA)

      The House bill allows income from packing and handling 
operations to be included as income derived from farming for 
purposes of payment eligibility. (Section 2501 of the House 
bill)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the Senate provision and 
deletes this section.

(39) Encouragement of voluntary sustainability practices guidelines

      The House bill provides that the Secretary may encourage 
the development of voluntary sustainable practices guidelines 
for producers and processors of specialty crops. (Section 2502 
of the House bill)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the Senate provision and 
does not include the provision.

(40) Farmland resource information (Section 1544 of Agriculture and 
        Food Act of 1981)

      The House bill provides that the Secretary shall design 
and implement educational programs emphasizing the importance 
of farming. One or more farmland information centers shall be 
designated to provide technical assistance and serve as central 
depositories for information on farmland issues. The centers 
shall be funded using no more than 0.05 percent of FPP funds 
per year but no less than $400,000 annually and must be matched 
with non-federal funds or in-kind contributions. (Section 2503 
of the House bill)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the Senate provision and 
does not include the provision.

(41) Pilot program for four-year crop rotation for peanuts

      The House bill directs the Secretary to enter into 
contracts with peanut producers to implement a four-year crop 
rotation for peanuts. Funding for this pilot shall not exceed 
$10,000,000 of mandatory funds for each of fiscal years 2008 
through 2012. (Section 2504 of the House bill)
      The Senate amendment provides that within CSP the 
Secretary shall provide additional payments to producers who 
agree to adopt resource-conserving crop rotations to achieve 
optimal crop rotations. (Section 2341 of the Senate amendment)
      The Conference substitute adopts the Senate provision 
with an amendment.

(42) Agriculture Conservation Experienced Services Program (Section 
        307(a) of the Department of Agriculture Reorganization Act of 
        1994)

      The Senate amendment authorizes the Secretary to enter 
into agreements with organizations to hire individuals 55 and 
older to provide assistance in administering conservation 
related programs. Funding for the program is authorized from 
EQIP, the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590a et seq.), and the Older Americans Act (42 U.S.C. 
3056). The provision stipulates that agreements may not 
displace individuals employed by the Department. It allows the 
Secretary to provide tools, including agency vehicles, 
necessary to carry out the program. (Section 2602 of the Senate 
amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that limits individuals employed under this 
authority to providing only technical assistance. The Managers 
intend that the program be used solely for technical assistance 
and not for administrative tasks. (Section 2710 of Conference 
substitute)

(43) Technical assistance (16 U.S.C 590(a) of Soil Conservation and 
        Domestic Allotment Act and 16 U.S.C. 2001 of Soil and Water 
        Resources Conservation Act)

      In the Soil Conservation and Domestic Allotment Act, the 
Senate amendment clarifies that it is the policy of the United 
States to preserve soil, water, and related resources and to 
promote soil and water quality. It defines technical assistance 
to mean technical expertise, information and tools necessary 
for the conservation of natural resources on land active in 
agricultural, forestry or related uses.
      In the Soil and Water Resources Conservation Act of 1977, 
the Senate amendment expands on existing appraisal requirements 
to include data on conservation plans, conservation practices 
planned or implemented, environmental outcomes, economic costs, 
and related matters. The national conservation program's 
evaluation of existing conservation programs is amended to 
emphasize monitoring of specific program components in order to 
encourage further development and adoption of practices and 
performance-based standards.
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment to 
the Soil Conservation and Domestic Allotment Act. The Managers 
intend to clarify that it is the role of USDA to provide 
technical assistance to farmers, ranchers, and other eligible 
entities to assist in the conservation of soil, water, and 
related resources. The Managers recognize that the natural 
resource concerns that producers face are dynamic and preclude 
an inclusive list as responsibilities for USDA.
      The Conference substitute adopts the Senate amendment to 
the Soil and Water Resources Conservation Act with an 
amendment. The Act is extended to 2018. The Managers expect the 
delivery of appraisals and programs to be tied more closely to 
the Farm bill cycle, with the intent that these evaluations 
will inform development of future farm policy. (Section 2802 of 
Conference substitute)

(44) National Natural Resources Conservation Foundation (Section 351 of 
        Federal Agriculture Improvement and Reform Act of 1996)

      The Senate amendment updates existing foundation language 
and expands granting authority of the foundation to include 
making grants to individuals, entering into agreements with the 
Federal government, and making gifts to the foundation tax 
exempt. (Section 2606 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the House provision and 
does not include the provision.

(45) Desert terminal lakes (Sec 2507 of the Farm Security and Rural 
        Investment Act of 2002)

      The Senate amendment extends and reauthorizes through 
2012. It allows funds to be used to lease or to purchase land, 
water appurtenant to the land, and related interests in the 
Walker River Basin from willing sellers.
      The section provides $200,000,000 in mandatory funds for 
fiscal years 2008 through fiscal year 2012. (Section 2607 in 
the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to provide $175,000,000 in mandatory funding. 
(Section 2807 of Conference substitute)

(46) High Plains water study

      The Senate amendment requires that program benefits under 
the 2007 Farm bill will not be denied to eligible individuals 
solely on the basis of participation in a one-time study of 
aquifer recharge potential in the high plains of Texas. 
(Section 2609 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
The Managers recognize that the ongoing depletion of the 
Ogallala Aquifer is an acute concern for the eight States that 
depend on it for agricultural, domestic, industrial uses, and 
other uses. This provision will allow agricultural producers to 
participate in a one-time study of aquifer recharge potential 
that will help inform State and local water conservation 
investment and policy to aid in managing this critical aquifer. 
The study is narrowly focused on a small number of playa lakes 
situated on agricultural land over the Ogallala Aquifer.
      Playas are temporary wetlands unique to the High Plains 
of North America, numbering more than 60,000. Playas not only 
serve as the primary source of recharge for the Ogallala 
Aquifer, they are the most important wetland type for wildlife 
in this region. The Managers encourages the Department to 
further recognize the importance of playas through increased 
communication to landowners of the benefits of playas and 
conservation programs available. The Managers encourage the 
Department to work with the Playa Lakes Joint Venture to 
enhance the use of such programs like CRP to help ensure the 
protection of playas. (Section 2901 of Conference substitute)

(47) Payment of expenses (Section 17(d) of the Federal Insecticide, 
        Fungicide, and Rodenticide Act)

    The Senate amendment amends the Federal Insecticide, 
Fungicide, and Rodenticide Act (7 USC 136 et seq.) to require 
that the Department of State shall cover expenses incurred by 
Environmental Protection Agency staff participating on an 
international technical, economic, or policy review board, 
committee, or other official body with respect to a related 
international treaty. (Section 2610 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 14209 of Conference substitute)

(48) Use of funds for salinity control activities upstream of Imperial 
        Dam (Sec202(a) of the Colorado River Basin Salinity Control 
        Act)

      The Senate amendment amends Section 202(a) of the 
Colorado River Basin Salinity Control Act (43 U.S.C. 1592(a)) 
to create a Basin States Program to allow the Bureau of 
Reclamation, to carry out salinity control activities in the 
Colorado River basin. The provision requires the Secretary of 
Interior to consult with the Colorado River Basin Salinity 
Control Advisory Council when providing assistance in the form 
of grants, grant commitments, or the advancement of funds to 
Federal or non-Federal entities. It requires a planning report 
to Congress that describes the proposed implementation of the 
program and stipulates that no funds may be expended to 
implement the program until 30 days after the report is 
submitted to Congress. (Section 2611 of the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
The Managers intend for this provision to be fiscally neutral 
both as to appropriations and as to draws on the basin funds. 
It does not change the cost share ratios already established in 
Section 205(a) of the Act, nor does it change the percentage 
split between the two funds or the requirement that no more 
than 15 percent of the basin States cost share is to come from 
the Upper Colorado River Basin Fund. It is only intended to 
clarify the authority through which Reclamation expends the 
required cost share dollars. (Section 2806 of Conference 
substitute)

(49) Technical corrections to the Federal Insecticide Fungicide, and 
        Rodenticide Act (Section 33 of FIFRA)

      The Senate amendment makes technical corrections to the 
pesticide registration service fee program in the Federal 
Insecticide, Fungicide, and Rodenticide Act. (Section 2612 of 
the Senate amendment)
      The House bill has no comparable provision.
      The Conference substitute adopts the House provision and 
does not include the provision. However, the Conference 
substitute includes a container recycling provision. (Section 
14109 of Conference substitute)
      The Managers have received concerns from numerous 
agricultural interests concerning pest resistance to first 
generation anticoagulant rodenticide products and the 
importance of low-cost, widely available effective 
rodenticides. The Managers encourage the Administrator of the 
Environmental Protection Agency to continue to classify second-
generation rodenticides as general use products so as to 
minimize the potential consequences of reclassifying these 
materials as restricted use on target species resistance to 
first-generation rodenticides, potential non-target species 
poisoning, and cost and availability of rodenticides to the 
general public.

                            TITLE III--TRADE


(1) Agricultural Trade Development and Assistance Act of 1954

            (a) Short title (Section 1 of the Agricultural Trade 
                    Development and Assistance Act of 1954)
      The Senate amendment changes the title of the underlying 
legislation to the Food for Peace Act. It also includes 
numerous conforming amendments. (Section 3001)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision on 
changing the title of the underlying legislation to the Food 
for Peace Act. (Section 3001)
            (b) United States policy (Section 2 of the Food for Peace 
                    Act)
      The Senate amendment deletes a paragraph describing 
market development as one of the objectives of the programs 
under this Act. This modification is made to reflect the 
approach taken in operating the program in recent years. 
(Section 3002)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
that deletes a paragraph in Section 2 describing market 
development as one of the objectives of the programs under this 
Act. (Section 3002)
            (c) Food aid to developing countries (Section 3(b) of the 
                    Food for Peace Act)
      The Senate amendment modifies the Sense of Congress in 
current law to (1) require the President to seek commitments 
from other donors; reinforces the need to keep recipient 
governments, non-governmental organizations, and private 
voluntary organizations involved in conducting needs assessment 
and implementing programs and ensure that a variety of options 
are available to provide needs-based emergency and non-
emergency aid and (2) that the United States should increase 
food aid contributions consistent with the Uruguay Round 
Agreement on Agriculture. (Section 3003)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with a minor modification. (Section 3003)
            (d) Trade and development assistance (Title I of the Food 
                    for Peace Act)
      The Senate amendment renames Title I of the newly renamed 
Food for Peace Act from Development and Trade Assistance to 
Economic Assistance and Food Security. (Section 3004)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
that renames Title I of the newly renamed Food for Peace Act 
from Development and Trade Assistance to Economic Assistance 
and Food Security. (Section 3004)
            (e) Agreements regarding eligible countries and private 
                    entities (Section 102 of the Food for Peace Act).
      The Senate amendment strikes references to potential 
recipient countries becoming commercial markets and strikes a 
requirement that organizations seeking funding under the Act 
prepare and submit agricultural market development plans. 
(Section 3005)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
that strikes references to potential recipient countries 
becoming commercial markets and strikes a requirement that 
organizations seeking funding under the Act prepare and submit 
agricultural market development plans. (Section 3005)
            (f) Use of local currency payments (Section 104 of the Food 
                    for Peace Act).
      The Senate amendment adds the objective of improving 
trade capacity of the recipient country to the set of goals to 
be achieved under agricultural development. It removes 
authority for specific agricultural development activities such 
as business development loans, facilities loans, and private 
sector agricultural development. It also specifies that private 
voluntary organizations and cooperatives may implement 
agreements under this title. (Section 3006)
      The House bill has no comparable provision.
    The Conference substitute adopts the Senate provision on 
modifying language governing the use of local currencies, with 
the following changes: rather than striking paragraphs (3), 
(4), (5), and (6), the substitute modifies paragraphs (3), (4), 
and (5) to update obsolete references and leaves paragraph (6) 
intact. (Section 3006)
            (g) General Authority (Section 201 of the Food for Peace 
                    Act)
      The House bill amends the purposes of the Title II 
program to clarify that food deficits to be addressed include 
those resulting from man made and natural disasters. (Section 
3001(a))
      The Senate amendment clarifies the objectives for 
assistance under Title II commodity donations. It adds the 
promotion of food security and support of sound environmental 
practices in paragraph (5); removes feeding programs as an 
objective in paragraph (6); and adds a new paragraph specifying 
the protection of livelihoods, provision of safety nets for 
food insecure populations and to encourage participation in 
educational, training, and other productive activities. 
(Section 3007)
      The Conference substitute adopts both the House and 
Senate provisions, with a modification to paragraph (6) of the 
Senate provision to keep Section 201(6) intact and add a new 
paragraph (7) to reflect the need to promote economic and 
nutritional security for food insecure populations. (Section 
3007)
      The Managers recognize that humanitarian emergencies 
frequently occur due to a combination of factors, typically 
encompassing natural disasters, resource mismanagement and poor 
government policymaking. In most cases, the United States 
government ought to respond to such catastrophes with emergency 
assistance. However, if a disaster results mostly from poorly 
devised or discriminatory governmental policies in the 
recipient country, the Managers requests that the Administrator 
brief the relevant Congressional Committees before responding 
with assistance.
            (h) Provision of agricultural commodities (Section 202 of 
                    the Food for Peace Act)
      The House bill increases the percentage of Title II 
funding (currently at a range of 5 to 10 percent) that the 
Administrator may make available to eligible organizations for 
administrative and distribution costs to a range of 7 to 12 
percent.
      The House provision also expands the purposes for which 
such funds may be used to include developing monitoring systems 
for Title II programs. (Section 3001(b))
      The Senate amendment revises current language to clarify 
that the fact that a project is being proposed in a country 
that does not have a U.S. Agency for International Development 
mission or is not part of an overall development plan for the 
country cannot be used as the sole rationale for denying the 
proposal.
      It modifies the share of Title II funds which can be used 
to cover logistical expenses incurred by the eligible 
organizations that carry out Title II programs from between 5 
and 10 percent to not less than 7.5 percent.
      It clarifies that such funds can be used to cover 
management, personnel, programmatic, operational activities, 
internal transportation, and distribution costs for new and 
existing programs. These funds can also be used to cover the 
costs of needs assessment and monitoring and evaluation. 
(Section 3008)
      It also strikes language on streamlining program 
management included in the 2002 farm bill. It also inserts new 
language which permits the Administrator to use Title II funds 
to address food aid quality issues, and requires that regular 
reports on progress on these quality issues be made to the 
relevant Congressional Committees.
      The Conference substitute adopts Senate language on 
paragraph (1) and paragraph (3) with modifications, providing 
$4.5 million for fiscal years 2009 through 2011 to be used to 
study and improve food aid quality for fiscal 2009-2011 from 
funds made available under Section 3012. It adopts House 
language on paragraph (2) with the modifications that the range 
of Title II funding available for administrative and 
distributional expenses is increased to between 7.5 percent and 
13 percent. (Section 3008)
      The Managers urge the Administrator to explore the 
practicality of allowing Title II recipients to enrich or 
fortify Title II commodities overseas and produce high-value 
and processed products to support local manufacturing of food 
products in recipient countries. Such local products could 
include ready-to-use therapeutic and therapeutic and 
supplemental products and other fortified and processed foods 
that can be used successfully to treat severe and moderate 
malnutrition among children and provide nutritional support for 
people living with HIV/AIDS and other vulnerable groups.
            (i) Generation and use of currencies by private voluntary 
                    organizations and cooperatives (Section 203 of the 
                    Food for Peace Act)
      The House bill makes a technical correction. (Section 
3001(c))
      The Senate amendment adds activities involving micro-
enterprises and village banking as a valid use of proceeds 
generated by monetization of commodities donated under Title 
II. (Section 3009)
      The Conference substitute adopts the House provision. 
(Section 3009)
      The Managers recognize that microfinance and village 
banking, which relies on low dollar loans and collective 
responsibility, has flourished throughout the developing world 
for more than 30 years.
      The Managers believe that similar activities such as 
micro-enterprise lending, village banking, and microfinance can 
be a valuable complement to development assistance projects 
under Title II of the Food for Peace Act, and encourages the 
Administrator to view micro-enterprise microfinance, and 
village banking projects as valid uses of local currency 
generated by monetization under this Act.
            (j) Levels of assistance (Section 204 of the Food for Peace 
                    Act)
      The House bill extends requirements on overall minimum 
tonnage and minimum tonnage for non-emergency assistance 
provided under Title II through 2012. (Section 3001(d))
      The Senate amendment extends only the overall minimum 
tonnage requirement for Title II programs through 2012. 
(Section 3010).
      The Conference substitute adopts the House provision. 
(Section 3010)
            (k) The Food Aid Consultative Group (Section 205 of the 
                    Food for Peace Act)
      The House bill extends the authority for the Food Aid 
Consultative Group (FACG). (Section 3001(e))
      The Senate amendment requires that a representative of 
the maritime transportation sector be included in the Group.
      It also requires the Administrator to consult with the 
FACG in developing regulations for the pilot local cash 
purchase program established in Section 3014, and extends the 
authority for the FACG through 2012. (Section 3011)
      The Conference substitute adopts the House provision, and 
paragraph (1) of the Senate provision. (Section 3011)
            (l) Administration (Section 207 of the Food for Peace Act)
      The House bill deletes a requirement that if the U.S. 
Agency for International Development denies a proposal for a 
Title II project, it must specify conditions that must be met 
for the approval of such proposal.
      It also adds a new provision that requires the U.S. 
Agency for International Development to establish and report on 
systems to improve and evaluate Title II assistance, including 
early warning systems to prevent famines. (Section 3001(f) and 
(g)) The Senate amendment provides more flexibility to the 
Administrator in terms of the time available to evaluate and 
determine whether to accept a proposal for assistance under 
Title II, and clarifies the intent of the law with respect to 
notifying an applicant why their proposal was rejected.
      It deletes a requirement for handbooks which are no 
longer used within the Title II program. Information previously 
contained in such handbooks is now available through other 
outlets, such as the U.S. Agency for International Development 
website.
      It deletes a specific deadline for submitting commodity 
orders, which on occasion can have the effect of slowing down 
the process, and substitutes a requirement that orders should 
be provided on a timely basis and it pushes back the date from 
December 1 to June 1 for a report on the programs, countries, 
and commodities approved to date within a fiscal year under 
Title II.
      It adds language that allows the Administrator to use 
Title II funds to pay for assessment, data collection and 
management, and monitoring activities, and to hire contract 
workers to undertake such work in recipient or neighboring 
countries, without limiting existing authority to hire 
contractors to help address emergency food needs.
      The Senate amendment also adds language allowing the 
Administrator to pay the World Food Program of the United 
Nations for indirect support costs of the commodities donated 
under Title II, requiring that the Administrator report to 
relevant Congressional committees on such payments. It also 
clarifies the authority of the Administrator to pay indirect 
costs associated with funds received or generated for programs 
to PVO's and cooperatives. It also requires that project 
reports should be submitted in such a form as can be readily 
displayed for public use on the U.S. Agency for International 
Development website. (Section 3012)
      The Conference substitute adopts House language to 
require specific oversight, monitoring, and assessment 
activities and provides up to $22 million annually of Title II 
funds for monitoring and assessment activities for non-
emergency programs. It provides that no more than $8 million of 
these funds may be used for the Famine Early Warning Systems 
Network, but only if at least $8 million is provided for this 
system from accounts funded pursuant to the Foreign Assistance 
Act of 1961. It also provides up to $2.5 million of the $22 
million to upgrade the information technology systems 
associated with the food aid program in fiscal year 2009, to 
enhance the monitoring of these programs.
      The Conference substitute also adopts Senate language on 
paragraphs (2) and (3), and provides contracting authority for 
personal service in order to undertake monitoring and 
assessments for non-emergency programs, as part of paragraph 
(5). It does not provide for additional authority to pay 
indirect support costs to the World Food Program or to private 
voluntary organizations. (Section 3012).
      The Managers recognize the use of handbooks in Title II 
is no longer an efficient method of providing information to 
foster development of programs under this title by eligible 
organizations. Realizing the need for clear communication of 
guidelines and regulations to eligible organizations, the 
Managers expect the Administrator to ensure the accessibility 
and clarity of information previously dispensed in the 
handbooks such as in an electronic form readily available to 
the public, in addition to other means as determined 
appropriate by the Administrator.
      The Managers believe that the provision of commodities 
overseas must be carried out in a timely manner and in a manner 
that is consistent with planned delivery schedules.
      The Managers are aware that the U.S. Agency for 
International Development has received significant cuts in 
operating expenses in the President's budget and in 
Congressional appropriations over the last several years to 
carry out their operating expense which increasingly affects 
the Agency's ability to monitor its programs. Although the 
Managers appreciate these constraints, it expects the 
Administrator to make every effort to improve the monitoring 
and evaluation of U.S. food assistance programs. Therefore, the 
Managers provide the Administrator with the authority to 
contract for personal services from persons not employed by the 
U.S. Government to carry out monitoring and oversight 
activities. The Managers have been concerned that, in the past, 
the U.S. Agency for International Development has not had the 
authority or the resources for monitors for non-emergency food 
aid programs. The April 2007 Government Accountability Office 
report on U.S. food assistance programs found that monitoring 
of food assistance programs in-country by the U.S. Agency for 
International Development has been insufficient due to various 
factors, including limited staff, competing priorities, and 
legal restrictions on the use of food assistance resources. The 
Managers are concerned about the significant gaps in monitoring 
and evaluation of U.S. international food assistance programs 
and expects the Administrator to address this problem 
immediately by establishing a system to monitor food assistance 
programs. The language in this new subsection will allow the 
Administrator to address this criticism by employing non-
emergency food aid monitors.
      The Managers expect the Administrator to continue to use 
existing authority to pay those expenses required and agreed 
upon to the World Food Program.
            (m) Assistance for stockpiling and rapid transportation, 
                    delivery, and distribution of shelf-stable, 
                    prepackaged foods (Section 208 of the Food for 
                    Peace Act)
      The House bill extends the authorization and increases 
annual funding for such grants from $3 million to $7 million. 
(Section 3001(h))
      The Senate amendment reauthorizes this program and also 
increases the level that can be appropriated to assist in the 
development of shelf-stable, prepackaged foods for use in food 
aid programs from $3 million to $8 million. (Section 3013)
      The Conference substitute adopts the Senate provision 
(Section 3013)
      The Managers recognize the value added to U.S. food aid 
programs through cost sharing by implementing partners and 
recognize that preference is given to organizations that are 
able to provide such additional program funds. The Managers are 
supportive of the Administrator evaluating the inclusion of in-
kind contributions when administering guidelines for cost 
sharing by non-profit organizations.
            (n) General authorities and requirements (Section 401 of 
                    the Food for Peace Act)
      The Senate amendment strikes the requirement that the 
Secretary make a determination about domestic supply of the 
commodity before releasing commodities for the food aid 
program. (Section 3015)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
(Section 3014).
            (o) Definitions (Section 402 of the Food for Peace Act)
      The Conference substitute consolidates several references 
to the appropriate committees of Congress with respect to 
reporting activities under the Food for Peace Act. (Section 
3015).
            (p) Use of Commodity Credit Corporation (Section 406 of the 
                    Food for Peace Act).
      The Senate amendment clarifies that costs incurred to 
improve food aid quality to the list of activities and 
functions can be covered by the Commodity Credit Corporation 
through advance appropriations acts. (Section 3016)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
(Section 3016).
            (q) Administrative provisions (section 407 of the Food for 
                    Peace Act)
      The House bill extends the authorization for 
prepositioning of commodities and increases the limit on 
funding available for prepositioning such commodities overseas 
from $2 million to $8 million. The bill also authorizes 
assessment and possible establishment of additional 
prepositioning sites. (Section 3001(i))
      The Senate amendment reauthorizes pre-positioning of U.S. 
commodities abroad and increases the limit on funding available 
for prepositioning in foreign countries from $2 million to $4 
million. It also requires that resource requests for multi-year 
or ongoing non-emergency assistance agreements be approved by 
October 1 of the fiscal year when the commodities will be 
delivered.
      It also pushes the completion date for an annual report 
concerning the programs and activities of this Act from January 
15 to April 1, and requires the Administrator to make the 
report available to the public by electronic and other means. 
(Section 3017)
      The Conference substitute adopts the Senate provision, 
but increases funding for prepositioning to $10 million, and 
adds the House language on studying the need for additional 
prepositioning sites (Sections 3017 and 3018(a)).
            (r) Consolidation and modification of annual reports 
                    regarding agricultural trade issues (Section 407 of 
                    the Food for Peace Act)
      The House bill amends requirements of the report the 
President must prepare on food aid programs that are carried 
out under the Act. (Section 3001(j))
      The Senate amendment has no comparable provision.
      The Conference substitute consolidates a number of 
reporting requirements and date changes for reports from both 
Senate and House bills (Section 3018).
            (s) Expiration of assistance (Section 408 of the Food for 
                    Peace Act)
      The House bill reauthorizes agreements under the Act 
through 2/31/12. (Section 3001(k))
      The Senate amendment reauthorizes agreements under the 
Act through December 31, 2012. (Section 3018)
      The Conference substitute adopts the House provision 
(Section 3019).
            (t) Authorization of Appropriations (Section 412 of the 
                    Food for Peace Act).
      The House bill extends the Act through 2012, and sets 
authorization levels for Title II to $2.5 billion. (Section 
3001(l))
      The Senate amendment reauthorizes appropriations for the 
Act through 2012. It also strikes subsection (b) and removes 
the President's authority to transfer funds between the 
programs under this Act. (Section 3019)
      The Conference substitute adopts the House provision, 
modifying it with technical changes. (Section 3020).
            (u) Micronutrient Fortification Programs (Section 415 of 
                    the Food for Peace Act)
      The House bill extends authorization for the program 
through 2012 and amends the purposes. (Section 3001(m))
      The Senate amendment reauthorizes the Micronutrient 
Fortification Program from the Farm Security and Rural 
Investment Act of 2002 and adds new authority to assess and 
apply technologies and systems to improve food aid. It also 
strikes subsection (b), which limits the number of countries in 
which this program can be implemented. (Section 3020)
      The Conference substitute adopts the Senate provision 
(Section 3023).
            (v) John Ogonowski and Doug Bereuter Farmer-to-Farmer 
                    Program (Section 501 of the Food for Peace Act)
      The House bill provides a floor level of funding for the 
Farmer-to-Farmer program of $10 million and extends the program 
through 2012. The House bill also increases authorization of 
appropriations for specific regions from $10 million to $15 
million. (Section 3001(n))
      The Senate bill reauthorizes the Farmer-to-Farmer 
program. (Section 3022)
      The Conference substitute adopts the House provision 
(Section 3024).
      The Managers recognize that organizations such as the 
Foods Resource Bank provide vital financial and technical 
assistance to agricultural production in developing countries 
in areas of financing, market access and knowledge, and 
development assistance. This assistance is generated through 
sale of crops grown in a cooperative effort between members of 
urban and rural churches and other organizations. These growing 
projects are an outstanding example of harnessing the grass-
roots energy and generosity of Americans. Through use of these 
proceeds, these members of churches and organizations help to 
increase the technical knowledge and available capital, for 
farmers and others in targeted developing countries. These 
efforts enhance food security and increase productivity in 
these countries.
      The Managers understand that in the recent years, the 
Foods Resource Bank has received matching funds through the 
Global Development Alliance established by the U.S. Agency for 
International Development. The Managers encourage the 
Administrator to continue this funding and consider entering 
into longer term agreements with these organizations to provide 
for more certainty in project planning.
      The Managers believe that providing funds to match such 
contributions leverage the government's investment and provide 
an incentive to expand the effort of growing projects working 
in the United States to raise money. Such an action would also 
increase public awareness of the plight of farmers in 
developing countries.

(2) Export Credit Guarantee Program (Sections 203 and 211 of the 
        Agricultural Trade Act of 1978)

    The House bill reduces the tenor of the GSM-102 Export 
Credit Guarantee Program to six months beginning in fiscal year 
2008. (Section 3002)
      The House bill and the Senate amendment both repeal 
authority for the Supplier Credit program, which provides 
guarantees to buyers of U.S. commodities in foreign countries 
for a period of not more than 180 days.
      Both bills repeal authority for the GSM-103 Intermediate 
Credit Guarantee Program which provides guarantees for loans to 
purchase U.S. agricultural commodities with duration of between 
three years and ten years, and repeal the one percent cap on 
loan origination fees for the GSM-102 export credit guarantee 
program.
      The Senate amendment reduces the tenor of the GSM-102 
export credit guarantee program to no more than six months 
beginning in fiscal year 2012. The Senate amendment also 
clarifies how the U.S. Department of Agriculture should conduct 
evaluations of the creditworthiness of countries participating 
in export credit guarantee programs, and reduces the minimum 
amount that can be allocated to the export credit programs from 
its current $5.5 billion to $5 billion. (Section 3101)
      The Conference substitute adopts the Senate provision, 
with the following modification: in lieu of the reduction in 
tenor for the GSM-102 program beginning in fiscal year 2012, 
the conference amendment includes a cap on the credit subsidy 
for the program of $40 million annually (Section 3101).
      The Managers eliminated proposals to limit the tenor of 
export credit guarantees to periods shorter than 3 years in 
length. In order to garner budget savings while preserving the 
3 year tenor and effectiveness of the program to support U.S. 
agricultural exports, subsection (b) limits the available 
budget authority for the cost of the program, as determined on 
a net present value basis under the Federal Credit Reform Act 
of 1990.
      Specifically, the Commodity Credit Corporation must make 
available each year GSM-102 guarantees in an amount not less 
than $5.5 billion, or the amount of guarantees that can be 
supported by $40 million in budget authority (plus any budget 
authority carried over from prior years)--whichever amount is 
less. It is expected that the U.S. Department of Agriculture 
can make available approximately $4 billion annually in export 
credit guarantees on $40 million in budget authority.
      The Managers remain concerned that the U.S. Department of 
Agriculture has consistently failed to meet its statutory 
obligation to make available at least $5.5 billion in export 
credit guarantees, to the detriment of U.S. agricultural 
exports and the ability of food importing countries to meet 
their food, feed, and fiber needs.
      The Managers expect the U.S. Department of Agriculture to 
use this authority to design and operate the export credit 
guarantee program to maximize the export sales of agricultural 
commodities and to assist food importing countries' efforts to 
meet their food, feed, and fiber needs, by making available and 
utilizing guarantees equal to at least the statutory minimum, 
and more as necessary to meet program demand.
      Finally, the Managers believe that the changes in this 
section satisfy U.S. commitments to comply with the Brazil 
cotton case with regard to the export credit programs.

(3) Market Access Program (Sections 203 and 211 of the Agricultural 
        Trade Act of 1978)

      The House bill extends the program and makes organic 
commodities eligible for the program. It increases funding by 
$25 million annually. (Section 3003)
      The Senate amendment makes organic commodities eligible 
for the program. It also increases funding for the program from 
its current level of $200 million for fiscal year 2007, raising 
it by $10 million annually until fiscal year 2011, when it 
returns to baseline levels. (Section 3102)
      The Conference substitute adopts the Senate provision, 
without the increase in funding above baseline levels (Section 
3102).

(4) Food for Progress Act of 1985

      The House bill extends the Food for Progress Act (7 
United States Code 1736o) through 2012. (Section 3004)
      The Senate amendment reauthorizes the program through 
2012, and makes recipient governments, intergovernmental 
organizations, and private entities ineligible for the program. 
It also increases the amount that can be spent transporting 
commodities under Food for Progress from $40 million to $48 
million for fiscal years 2008-through 2010. This figure is the 
effective cap on this program. (Section 3106)
      The Conference substitute adopts the House provision and 
adds a provision requiring the Secretary to establish a project 
in Malawi under this program (Section 3105).

(5) McGovern-Dole International Food for Education and Child Nutrition 
        Program

      The House bill extends program through 2012, requires the 
Secretary of Agriculture to carry out the program, and provides 
mandatory funds of: $0 for fiscal year 2008; $140,000,000 for 
fiscal year 2009; $170,000,000 for fiscal year 2010; 
$230,000,000 for fiscal year 2011; $300,000,000 for fiscal year 
2012; and $0 for fiscal year 2013. (Section 3005)
      The Senate amendment establishes the U.S. Department of 
Agriculture as the permanent home for this program and 
reauthorizes the program through fiscal year 2012. Up to $300 
million may be appropriated annually to fund this program. 
(Section 3107)
      The Conference substitute adopts the Senate provision, 
except it provides $84 million in mandatory money for this 
program for fiscal year 2009, to be available until expended 
(Section 3106).

(6) Bill Emerson Humanitarian Trust

    The House bill extends the Bill Emerson Humanitarian Trust 
through 2012. (Section 3006)
      The Senate amendment specifies that the Trust can be held 
as a combination of commodities and cash, not to exceed the 
equivalent of 4 million metric tons and allows the commodities 
to be exchanged for funds available under Title II or the 
McGovern-Dole program. The Secretary may sell commodities in 
the Trust onto the market if such sales will not disrupt the 
domestic market. It permits the Secretary to manage the funds 
held under the Trust to maximize its value.
      The Senate amendment further clarifies the rules under 
which commodities or funds can be released from the Trust, and 
defines the term ``emergency'' for the purpose of release. It 
also clarifies the rules by which the Trust is managed by the 
Secretary, including specifying that price risks must be 
managed and allowing the funds held in the Trust to be invested 
in low-risk short-term securities or instruments. Instructs the 
Secretary to maximize the value of the Trust and instructs the 
Secretary to transfer saved storage costs back to the Trust 
from the CCC. The Senate amendment replaces the word 
``replenish'' with the word ``reimburse'' throughout the 
language, reinforcing the notion that resources can be held 
through cash as well as commodities under this program. The 
program is reauthorized through fiscal year 2012. (Section 
3201)
      The Conference substitute adopts the Senate provision, 
with the following modifications: it removes the 4 million ton 
cap entirely, and no longer allows the Secretary to engage in 
futures market transactions with funds in the Trust. It also 
does not allow the exchange of funds available under Title II 
or the McGovern-Dole International Food for Education and Child 
Nutrition program, nor require transfer of foregone storage 
charges into the Trust (Section 3201).
      The Managers expect the Trust to be used in a manner that 
recognizes its unique availability as a resource for food 
emergencies worldwide. The sale of commodities in the Trust 
should be undertaken in such a way as to prevent market 
disruptions and dramatic price fluctuations in the domestic 
market.

(7) Technical assistance for specialty crops

      The House bill extends the Technical Assistance for 
Specialty Crops through fiscal year 2012 and increases funding 
from $2 million annually to $4 million in 2008, ramping up to 
$10 million for fiscal years 2011 and 2012. (Section 3007)
      The Senate amendment extends Technical Assistance for 
Specialty Crops through fiscal 2012 and increases funding by 
$19 million over the baseline. (Section 1833)
      The Conference substitute adopts the House provision with 
annual funding ramped up to $9 million in fiscal years 2011 and 
2012, and adds a report (Section 3203).

(8) Representation by the United States at international standard-
        setting bodies

      The House bill authorizes the Secretary to enhance U.S. 
Department of Agriculture staff support for international 
standard-setting bodies, such as the Codex Alimentarius, the 
International Plant Protection Convention, and the World Animal 
Health Organization. (Section 3009)
      The Senate amendment has no comparable provision.
      The Conference substitute strikes this provision.

  (9) Foreign Market Development Cooperator Program (Section 702 of the 
        Agricultural Trade Act of 1978)

    The House bill extends the program through fiscal year 
2012. (Section 3010)
    The Senate amendment increases funding for the Foreign 
Market Development Program from its current level of $34.5 
million annually for fiscal year 2007 by $5 million for fiscal 
years 2008 and 2009, by $10 million in fiscal year 2010, and 
returns to baseline levels in fiscal year 2011. (Section 3105)
      The Conference substitute adopts the House provision 
(Section 3104).

(10) Emerging Markets and Facilities Loan Guarantee Program

      The House bill extends the program through fiscal year 
2012. (Section 3011)
      The Senate amendment reauthorizes the Emerging Markets 
and Facilities Guarantee Loan Program through fiscal year 2012.
      It permits the Secretary to waive requirements that U.S. 
goods be used in the construction of a facility under this 
program, if such goods are not available or their use is not 
practicable. It also permits the Secretary to provide a 
guarantee for this program for the term of the depreciation 
schedule for the facility, not to exceed 20 years. (Section 
3202)
      The Conference substitute adopts the Senate provision 
(Section 3204).

(11) Export Enhancement Program (Section 301 of the Agricultural Trade 
        Act of 1978)

      The House bill extends the program through fiscal year 
2012. (Section 3012)
      The Senate amendment repeals authority for the program. 
(Section 3103)
      The Conference substitute adopts the Senate provision 
(Section 3103).

(12) Minimum level of nonemergency food assistance

      The House bill provides that of Title II funds, the U.S. 
Agency for International Development must use at least $450 
million for non-emergency programs unless Congress provides 
otherwise with new legislation. (Section 3014)
      The Senate amendment establishes a ``safe box'' for non-
emergency, development assistance projects under Title II of 
$600 million annually to be obligated and expended each fiscal 
year. (Section 3019)
      The Conference substitute adopts the House provision, 
modified to reflect a phasing in of the safe box level 
beginning at $375 million in fiscal year 2009 and ending at 
$450 million in fiscal year 2012. It also provides an exception 
to the safe box designation, allowed to be exercised only if 
the President determines that an extraordinary food emergency 
exists and that resources available from the Bill Emerson 
Humanitarian Trust have been exhausted, and if the President 
has submitted a request for additional appropriations to 
Congress equal to the reduction in safe box and Emerson Trust 
levels (Section 3022).

(13) Global Crop Diversity Trust

      The House bill requires the U.S. Agency for International 
Development to make a contribution on behalf of the United 
States to the Global Crop Diversity Trust of up to $60 million 
over 5 years. United States contributions may not exceed one 
fourth of the total of funds contributed to the Trust from all 
sources. (Section 3014)
      The Senate amendment requires the U.S. Agency for 
International Development to make contributions to the Global 
Crop Diversity Trust to assist in conservation of genetic 
diversity of key food crops around the world. Appropriations of 
$60 million are authorized for the period of the fiscal year 
2008 through 2012 for this purpose, with a cap equal to 25 
percent of all funds contributed to the Trust from all sources. 
(Section 3021)
      The Conference substitute adopts the House provision, 
with a title change for the section (Section 3202).

(14) Report on Efforts to improve procurement planning

      The House bill requires that not later than 90 days after 
the date of the enactment the U.S. Agency for International 
Development and the U.S. Department of Agriculture shall submit 
to Congress a report on efforts taken to improve planning for 
food and transportation procurement, including efforts to 
eliminate bunching of food purchases. (Section 3015)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision 
(Section 3022).

(15) International disaster

      The House bill requires that for each of fiscal year 2008 
through 2012, $40 million of amounts made available to carry 
out Section 491 of the Foreign Assistance Act of 1961 shall be 
made available for famine prevention. (Section 3016)
      The Senate amendment authorizes a pilot program for 
local/regional cash purchase. Subsection (a) provides several 
key definitions for the section. Subsection (b) establishes 
authority for the pilot program. Subsection (c) establishes the 
purposes for which the pilot program can be used. Subsection 
(d) establishes criteria for local or regional procurement. 
Subsection (e) requires the Administrator to initiate an 
external review of prior local/regional cash purchase 
activities by other donor countries, PVO's and 
intergovernmental organizations within 30 days of enactment. A 
report detailing the results of this review is also to be 
provided to the relevant Congressional Committees. This 
information would be used to assist in developing guidelines 
for the request for proposals. Subsection (f) authorizes the 
Administrator to request and approve applications for grants 
from eligible organizations under this section, and requires 
any projects authorized under this section to be completed by 
Sept. 30, 2011, to allow time to complete study of pilot 
results before expiration of authorized appropriations in 
subsection (k). Subsection (g) establishes requirements for 
specific projects in selecting proposals for grants. Subsection 
(h) lists information that would need to be included in grant 
applications. Subsection (i) requires the Administrator to 
arrange for independent evaluation of the pilot program 
results, and a report to the relevant Congressional Committees. 
It also lays out the factors that would have to be examined in 
the report. Subsection (j) requires the Administrator to 
promulgate guidelines for the operation of this pilot program. 
Subsection (k) authorizes appropriations of $25 million for 
each year between fiscal 2009 and fiscal 2011 for this program, 
to be available until expended. (Section 3014)
      The Conference substitute adopts the Senate provision, 
modified to provide that the project be conducted by the 
Secretary with $60 million in mandatory funding between fiscal 
2009 and 2012. It establishes requirements for undertaking such 
activities and requires the Secretary to promulgate rules or 
guidelines in order to award grants or cooperative agreements 
to conduct field-based projects using local or regional 
procurement. It also requires entities receiving grants or 
entering into agreements under this section to provide data 
about market parameters and methodologies used to acquire 
eligible commodities locally or regionally, intended to be used 
to evaluate the effectiveness of local or regional procurement 
(Section 3206).

(16) Importation of agricultural products made with child labor

      The Senate amendment requires the Secretary of 
Agriculture, in cooperation with the Secretary of Labor, to 
develop standards that importers of agricultural products into 
the United States could choose to use to certify that those 
products were not produced with the use of abusive forms of 
child labor. (Section 3104)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision, 
modified to establish a consultative group of interested 
stakeholders charged with developing recommendations on 
practices that would enable companies to monitor and verify 
whether the food products they import are made with the use of 
child or forced labor. Guidelines developed from these 
recommendations would be released after a public comment period 
(Section 3205).
      The Managers strongly support efforts to reduce and 
eliminate the use of child and forced labor. The Managers 
expect the Secretary of Agriculture to work with the multi-
stakeholder Consultative Group to develop the recommendations 
for best practices for the voluntary, third-party certification 
initiative that will provide producers, importers, retailers 
and consumers with reasonable assurances as to what measures 
have been taken to ensure that the products are not produced 
with child labor. After the Consultative Group has issued its 
recommendations, the Managers expect the Secretary to develop 
guidelines for such best practices and release the guidelines 
for public comment. The outcome expected by the Managers is a 
voluntary, third-party certification effort is designed to 
reduce the likelihood that products produced with forced labor 
or child labor are imported into the United States as directed 
in the Trafficking Victims Protection Act of 2005.
      The Managers recommend that the Secretary select 
officials from the Foreign Agricultural Service and the 
Agricultural Marketing Service to serve on the consultative 
group as the representatives of the U.S. Department of 
Agriculture. Additionally, the Managers recommend that the 
Department of Labor be represented by an individual from the 
Bureau of International Labor Affairs, and that the Department 
of State be represented by the Director of the Office to 
Monitor and Combat Trafficking in Persons of the Department of 
State.

(17) Biotechnology and Agricultural Trade Program

      The Senate amendment reauthorizes the Biotechnology and 
Agricultural Trade Program through 2012. (Section 3203)
      The House bill has no comparable provision.
      The Conference substitute does not include this 
provision.

(18) Technical assistance for international trade disputes

      The House bill and the Senate amendment both authorize 
the Secretary to provide technical assistance for limited 
resource groups involved in trade disputes. This program is 
subject to appropriations. (House Section 3008 and Senate 
Section 3204)
      The Conference substitute does not include this 
provision.
      The Managers understand that the U.S. Department of 
Agriculture currently possesses the authority to provide 
technical advice, analytical support, and other assistance to 
help limited resource organizations and others involved in 
exporting U.S. agricultural commodities. The Managers encourage 
the U.S. Department of Agriculture to provide such assistance, 
particularly to entities that both face unfair trading 
practices and do not possess adequate internal resources to 
address these practices given the size of their domestic 
industry or membership. The Department is encouraged to seek 
appropriations for this purpose as needed.

(19) Importation of high protein food ingredients

      The Senate amendment requires the Secretary of Health and 
Human Services to report to Congress on the importation and use 
of high protein food ingredients. (Section 3206)
      The House bill contains no comparable provision.
      The Conference substitute does not include this 
provision.

(20) U.S.-Canada Softwood Lumber Agreement

      The Senate amendment expresses the Sense of the Senate 
with respect to ensuring that imports of Canadian softwood 
lumber are consistent with the Softwood Lumber Agreement with 
Canada. (Section 11093)
      The House bill contains no comparable provision.
      The Conference substitute includes a softwood lumber 
importer declaration program. The purpose of the program is to 
assist in the enforcement of any international obligations that 
the United States and our trading partners assume with respect 
to trade in softwood lumber and softwood lumber products.
      The Managers are concerned that existing U.S. importer 
declaration requirements are not sufficient to ensure 
compliance with such obligations. If the issue is not 
addressed, imports of noncompliant softwood lumber and softwood 
lumber products can harm U.S. producers.
      The section amends the Tariff Act of 1930 by adding a new 
Title VIII, the ``Softwood Lumber Act of 2008''. The Act 
directs the President to establish a softwood lumber importer 
declaration program. The program requires U.S. importers of 
softwood lumber and softwood lumber products to take certain 
steps to help the United States and its trading partners ensure 
that trade in these products is consistent with the terms of 
any relevant international agreement.
      As part of the program, U.S. importers must provide 
certain information about each shipment of softwood lumber or 
softwood lumber products at the time the importer files the 
entry summary documentation. The importer must also declare 
that the importer has made appropriate inquiries about the 
shipment and that, to the best of the importer's knowledge and 
belief, the imports of softwood lumber are consistent with 
certain terms of any relevant international agreement entered 
into by the country of export and the United States. The Act 
requires the Secretary of Treasury to reconcile the 
transaction-specific information provided by the U.S. importer 
with transaction-specific information provided by the country 
of export to the United States, if any. Such reconciliation is 
to include any revised transaction-specific export prices 
provided by the country of export. The Secretary of Treasury 
must also periodically verify the accuracy of the importer 
declarations. The Act provides for the assessment of penalties 
against any person who knowingly violates the Act. The Act, 
however, holds harmless importers who have made appropriate 
inquiries and who maintain and produce substantiating 
documentation.
      The Managers intend that the requirement for the importer 
to provide the estimated export charges, if any, is meant to 
apply to export charges estimated to be due at the time of 
shipment, recognizing that the exporter's final liability could 
increase or decrease at the time of final assessment.
      The Managers intend that, in implementing the program, 
the President or his designee avoid placing an unnecessary 
burden on U.S. importers. In this respect, the Managers note 
that the statutory language creating the program neither 
includes nor references any authority for the President or his 
designee to establish user fees, processing fees, or any other 
fees of any kind. It is the intention of the Managers that any 
expenses associated with the administration of this program be 
covered with appropriated funds.
      The Managers intend that this program meet all bilateral 
and multilateral obligations of the United States, including 
adherence to international rules and procedures regarding trade 
in softwood lumber. The Managers intend the program to be 
consistent with U.S. obligations under the Uruguay Round 
Agreements, including the General Agreement on Tariffs and 
Trade 1994, and any other bilateral or multilateral trade 
agreements to which the United States is a Party.
      The Managers recognize the subject matter set forth in 
the Act falls under the jurisdiction of the Committee on 
Finance of the Senate and the Committee on Ways and Means of 
the House of Representatives.

                      TITLE IV--NUTRITION PROGRAMS


(1) Renaming the Food Stamp Program

      The House bill amends the Food Stamp Act of 1997 (FSA) by 
renaming the Food Stamp Program the Secure Supplemental 
Nutrition Assistance Program (SSNAP). Conforming amendments are 
made to other laws, documents, and records that reference 
either the Food Stamp Act or Food Stamp Program. (Section 4001)
      The Senate amendment amends the short title of the FSA by 
renaming the Act the Food and Nutrition Act of 2007. It amends 
the renamed Food and Nutrition Act of 2007 to change the term 
``food stamp program'' each place it appears to ``food and 
nutrition program''.
      The Senate amendment also makes conforming amendments to 
other laws that reference the Food Stamp Act/program. (Section 
4001, Section 4909)
      The Conference substitute adopts the Senate provisions 
with an amendment to rename the Food Stamp Program as the 
``Supplemental Nutrition Assistance Program'' and to 
incorporate these changes into section 4001; and to incorporate 
technical changes and conforming amendments necessary to 
reflect the new title of the program and Act into section 4002. 
(Section 4001; Section 4002)

(2) Definition of Drug Addition or Alcoholic Treatment and 
        Rehabilitation Program

      The House bill amends section 3(f) of the FSA by 
mandating that drug addiction or alcoholic treatment and 
rehabilitation programs meet the FSA's definition regarding 
such programs if the State Title XIX agency certifies that: the 
program is eligible to receive funds under Part B of Title XIX 
of the Public Health Service Act (even if no funds are being 
received); or is operating to further the purposes of Part B.
      This section also provides that nothing in the FSA's 
definition of a drug addiction or alcoholic treatment and 
rehabilitation program is to be construed as requiring State or 
Federal licensure. (Section 4002)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision.

(3) Nutrition education

      The House bill amends section 4(a) of the FSA by 
authorizing the Secretary, subject to appropriated funds, to 
administer the food stamp nutrition education program to 
eligible households.
    Section 11(f) of the FSA is amended by specifically giving 
State agencies the discretion to implement nutrition education 
programs that promote healthy food choices that are consistent 
with the Dietary Guidelines for individuals who receive, or are 
eligible to receive program benefits.
      States are given the discretion to deliver nutrition 
education directly to eligible recipients through agreements 
with the Cooperative State Research, Education and Extension 
Service and other State and community health and nutrition 
providers and organizations.
      States wishing to provide nutrition education must submit 
a plan that identifies the uses of the funding for local 
projects and conforms to standards set forth by the Secretary 
in regulations or guidance.
      States must, whenever practicable, notify applicants, 
participants, and eligible program participants of the 
availability of nutrition education.
      The federal matching funds requirement is continued. 
(Section 4003)
      The Senate amendment is the same as the House bill, with 
technical differences. (Section 4213)
      The Conference substitute adopts the Senate provision. 
(Section 4111)

(4) Food distribution on Indian reservations

      The House bill amends section 4 of the FSA by permitting 
the distribution of commodities, with or without the Secure 
Supplemental Nutrition Assistance Program, on Indian 
reservations whenever a request is made for concurrent or 
separate food program operations by a tribal organization.
      Tribal organizations are permitted to be responsible for 
the commodity distribution, should the Secretary determine that 
they are capable of doing so. The prohibition from approving 
plans that permit households to simultaneously participate in 
the SSNAP and FDPIR programs is continued.
      An appropriation of $5,000,000 is authorized for fiscal 
years 2008 through 2012 for a traditional and local foods fund 
to distribute traditional and locally-grown foods, designated 
by region, on Indian reservations. At least 50 percent of the 
food distributed through the fund must be produced by Native 
American farmers, ranchers, and producers.
      The Secretary is required to submit a report to Congress 
on the FDPIR food package. The report is to include: a 
description of the process for determining the contents of the 
food package; the extent to which the package conforms to the 
2005 Dietary Guidelines for Americans; the extent to which the 
food package addresses nutritional and health challenges 
specific to Native Americans and the nutritional needs of 
Native Americans; and plans to revise the food package (or any 
rationale for not revising it). (Section 4004)
      The Senate amendment is similar to the House bill with 
technical differences but: (1) provides that, subject to the 
availability of appropriations, the Secretary may purchase 
bison meat for distribution through FDPIR, and (2) requires the 
Secretary to survey participants to determine which traditional 
foods are most desired. (Section 4501)
      The Conference substitute adopts the Senate provision 
with amendments to require that, where practicable, at least 50 
percent of the food distributed through the traditional and 
locally grown foods fund be produced by Native American 
farmers, ranchers, and producers, and to require a report 
describing the activities carried out under the traditional and 
locally grown foods fund. (Section 4211)

(5) Excluding combat related pay from countable income

      The House bill amends section 5(d) of the FSA by 
specifically excluding combat-related military pay when 
determining income for program eligibility and benefits. 
(Section 4005)
      The Senate amendment is the same as the House bill, with 
technical differences. (Section 4101)
      The Conference substitute adopts the Senate provision 
with an amendment to specify that the exclusion of combat-
related military pay becomes effective on October 1, 2008. 
(Section 4101)

(6) Increasing the standard deduction

      The House bill amends section 5(e)(1) of the FSA by 
increasing the minimum standard deduction and indexing it for 
inflation as measured by the Consumer Price Index (CPI-U).
      The minimum standard deduction is raised to:
            $145 (for the 48 contiguous States and the District 
        of Columbia);
            $248 (for Alaska);
            $205 (for Hawaii);
            $128 (for the Virgin Islands);
            and $291 (for Guam).
      The alternative minimum of 8.31 percent of the poverty 
guidelines is not changed.
      On October 1, 2008 (and each October thereafter) the 
minimum dollar-denominated standard deductions (noted above) 
would be adjusted by the CPI-U change (for all items other than 
food) over the 12 months ending the previous June 30th (and 
rounded down to the nearest whole dollar). (Section 4006)
      The Senate amendment amends section 5(e)(1) to increase 
the minimum standard deduction and index it for inflation as 
measured by the CPI-U.
      The minimum standard deduction is raised to:
            $140 (for the 48 contiguous States and the District 
        of Columbia);
            $239 (for Alaska);
            $197 (for Hawaii);
            $123 (for the Virgin Islands); and
            $281 (for Guam).
      As in the House bill, the alternative minimum of 8.31% of 
the poverty guidelines is not changed, and the amounts 
specified for the standard deduction would be adjusted for 
annual changes in the CPI-U and rounded down. (Section 4102)
      The Conference substitute adopts the Senate provision 
with an amendment to increase the minimum standard deduction 
to:
            $144 (for the 48 contiguous States and the District 
        of Columbia);
            $246 (for Alaska);
            $203 (for Hawaii);
            $127 (for the Virgin Islands); and
            $289 (for Guam).
      The Conference substitute indexes these amounts for 
inflation as measured by the CPI-U, rounded down and specifies 
that these increases become effective on October 1, 2008. 
(Section 4102)

(7) Deducting dependent care expenses

      The House bill amends section 5(e)(3) of the FSA by 
removing the caps on dependent care deductions. (Section 4007)
      The Senate amendment is the same as the House bill.
      The Conference substitute adopts the House provision with 
an amendment to make the removal of the caps on dependent care 
deductions effective on October 1, 2008. (Section 4103)

(8) Adjusting countable resources for inflation

      The House bill amends section 5(g) of the FSA by 
requiring that the resource (asset) dollar limits for SSNAP 
households be indexed. Limits are to be indexed annually for 
inflation (measured by the CPI-U) and adjusted to the nearest 
$100. (Section 4008)
      The Senate amendment amends section 5(g) by increasing 
the dollar limits on financial resources that an eligible 
household may own to $3,500 (or $4,500 for households with 
elderly or disabled members), and requiring that they be 
indexed annually for inflation (measured by the CPI-U) rounded 
down and adjusted down to the nearest $250. (Section 4101(a))
      The Conference substitute adopts the Senate provision 
with amendments to specify that the existing asset dollar 
limits be indexed annually for inflation as measured by the 
CPI-U and adjusted down to the nearest $250, to specify that 
such policy become effective on October 1, 2008, and to make 
other technical changes. (Section 4104)

(9) Excluding education accounts from countable income

      The House bill amends section 5(g) of the FSA by 
excluding tax-qualified education savings as countable 
financial resources. (Section 4009)
      The Senate amendment is the same as the House bill, with 
technical differences. (Section 4104(c))
      The Conference substitute adopts the Senate provision 
with an amendment to specify that such exclusions become 
effective on October 1, 2008, and to make other technical 
changes. (Section 4104)

(10) Excluding retirement accounts

      The House bill amends section 5(g) of the FSA by 
excluding all tax-qualified retirement accounts/savings as 
countable financial resources. (Section 4010)
      The Senate amendment is the same as the House bill with 
technical differences. (Section 4104(b))
      The Conference substitute adopts the Senate provision 
with an amendment to specify that such exclusions become 
effective on October 1, 2008; and to make other technical 
changes. (Section 4104)

(11) Simplified reporting

      The Senate amendment amends section 6(c)(1) to allow 
States to require periodic reporting of changes in household 
circumstances (as opposed to reporting changes when they occur) 
by households with elderly/disabled members, migrant/seasonal 
farmworker households, and households in which all members are 
homeless. This provision limits the frequency with which these 
households must report changes (other than changes whereby they 
exceed the program's gross monthly income eligibility limits). 
Elderly/disabled households with no earned income are required 
to report no more often than once a year; migrant/seasonal 
farmworker and homeless households could be required to report 
no more often than once every 4 months. (Section 4105)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to specify that the simplified reporting 
policy change becomes effective on October 1, 2008. (Section 
4105)

(12) Deobligate food stamp coupons

      The House bill amends the FSA by prohibiting States from 
issuing coupons, stamps, certificates or authorization cards, 
effective upon enactment of the Farm Bill.
    The House bill provides that, effective one year after 
enactment of this Act, only Electronic Benefit Transfer (EBT) 
cards will be eligible for exchange at retail food stores that 
participate in the SSNAP.
      The House bill also provides that coupons will no longer 
be an obligation of the Federal government, effective one year 
after enactment of the Farm Bill, thereby requiring that 
coupons be redeemed within that one-year period. (Section 4011)
      The Senate amendment is similar to House bill with 
technical differences but: (1) directs the Secretary to require 
a state agency to issue or deliver benefits using alternative 
methods if the Secretary determines, in consultation with the 
Inspector General, that it would improve the integrity of the 
food and nutrition program; and (2) provides that no 
interchange fees shall apply to electronic benefit transfer 
transactions under the food and nutrition program. It also 
makes necessary conforming amendments as in the House bill. 
(Section 4202, 4001)
      The Conference substitute adopts the Senate provision 
with amendments to strike the study relating to the use of 
program benefits and to make other technical changes. While 
this provision does generally prohibit the use of coupons in 
the Supplemental Nutrition Assistance Program (SNAP), it is not 
the Managers' intention to prohibit States from issuing 
benefits in a form other than EBT cards as part of efforts 
through SNAP to provide food assistance to eligible individuals 
affected by a disaster. (Section 4115)

(13) Eligibility for single unemployed adults

      The Senate amendment amends section 6(o) to lengthen the 
eligibility period for ABAWDs who are not working or in an 
employment/training or workfare program to 6 months in every 
36-month period.
      The Senate amendment eliminates the current provision of 
law under which an ABAWD who gains eligibility by meeting one 
of the 3 work-related tests, but subsequently fails to meet any 
of them, may remain eligible for an added 3 months. (Section 
4107)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(14) Transitional benefits

      The Senate amendment amends section 11(s) to permit 
States to provide transitional food assistance benefits to 
households with children that cease to receive cash assistance 
under a state-funded public assistance program. (Section 4108)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to make the transitional benefits policy 
change effective on October 1, 2008. (Section 4106)

(15) Allow for the accrual of benefits

      The House bill amends section 7(i) of the FSA by 
authorizing States to establish procedures for recovering 
electronically issued benefits from a household due to 
inactivity in the household's EBT account.
      The House bill provides States with the discretion to 
recover benefits if an EBT account has been inactive for: (1) 3 
months during which it continuously had a balance greater than 
$1,000 (adjusted for inflation); or (2) 12 months, whichever is 
less.
      The House bill also provides that a household whose 
benefits are recovered must receive notice, and have its 
benefits made available again, upon request not less than 12 
months after the recovery of the benefits. (Section 4012)
      The Senate amendment amends section 7(i) of the FSA to 
(1) require that States establish procedures for recovering 
electronically issued benefits from inactive benefit accounts 
and allow them to store recovered benefits off-line if the 
household has not accessed the account after 6 months and (2) 
require States to expunge benefits that have not been accessed 
by a household for 12 months.
      States would also be required to notify households of 
stored benefits and make them available not later than 48 hours 
after a household's request. (Section 4106)
      The Conference substitute adopts the Senate provision. 
(Section 4114)

(16) Increasing the minimum benefit

      The House bill amends section 8(a) of the FSA by 
increasing the amount of the minimum benefit for 1 and 2-person 
households to 10 percent of the inflation-indexed ``Thrifty 
Food Plan'' for a 1-person household. (Section 4013)
      The Senate amendment is the same as the House bill except 
that the effective date is stipulated as October 1, 2008.
      The Conference substitute adopts the House provision with 
an amendment to specify that the minimum benefit shall be equal 
to 8 percent of the maximum benefit for a household of one, and 
to make the increase in the minimum benefit effective on 
October 1, 2008. The Managers understand that the Thrifty Food 
Plan changes on a monthly basis, and expect that the minimum 
benefit, as amended by this provision, will be calculated on an 
annual basis. (Section 4107)

(17) State option for telephonic signature

      The House bill amends Section 11(e)(2)(C) of the FSA by 
authorizing State agencies to establish a system for applicant 
households to sign an application by providing a recorded, 
verbal assent over the telephone.
      The system must record the applicant's verbal assent, as 
well as the information to which the assent was given.
      The State system is required to include safeguards 
against impersonation and identity theft.
      The provision specifies that a household's right to apply 
for food stamps in writing not be precluded.
      The provision further specifies that if there are any 
errors in the application, the applicant must return a copy of 
the application with instructions for correcting such errors.
      Applicants must satisfy all the requirements associated 
with a written signature on an application to ensure that the 
verbal assent triggers the effective date of the submission of 
the application. (Section 4014)
      The Senate amendment is the same as the House bill with 
technical differences.
      The Conference substitute adopts the Senate provision. 
(Section 4119)

(18) Technical clarification regarding eligibility

      The Senate amendment amends section 6(k) to require that 
the Secretary establish procedures to ensure that States use 
consistent procedures that disqualify individuals whom law 
enforcement authorities are actively seeking for the purpose of 
holding criminal proceedings. (Section 4201)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4112)

(19) Split issuance

      The Senate amendment amends section 7(h) to require that 
any method for staggering the issuance of benefits throughout a 
month not include splitting any household's monthly benefit 
into multiple issuances--unless a benefit correction is 
necessary. (Section 4203)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
The Managers recognize that there may be situations in which 
individuals that leave a group home before the end of the month 
will still be eligible to receive program benefits. The 
Managers intend that, in such a situation, the Secretary 
interpret the term ``benefit correction'' to allow a second 
issuance of program benefits in a month. (Section 4113)

(20) Privacy protection

      The Senate amendment amends section 11(e)(8) to clarify 
rules pertaining to the disclosure of information obtained from 
applicant households. The provision bars use of this 
information by persons having access for any purpose other than 
program administration/enforcement activities, and also makes 
clear that applicants' information may be used to comply with 
requirements for certifying schoolchildren as eligible for free 
school meals based on their family's eligibility for food and 
nutrition assistance program benefits. (Section 4205)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4120)

(21) Civil rights compliance

      The Senate amendment amends section 11(c) to specify in 
law that administration of the program must be consistent with 
the rights of households under the Age Discrimination Act, 
section 504 of the Rehabilitation Act, the Americans with 
Disabilities Act, and title VI of the Civil Rights Act. 
(Section 4207)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4117)

(22) Employment and training

      The Senate amendment amends section 6(d)(4) to include--
as an eligible employment and training program activity--job 
retention services provided (for up to 90 days after securing 
employment) to individuals who have received other employment/
training services under the program.
      The Senate amendment also modifies section 6(d)(4) to 
permit individuals voluntarily participating in employment and 
training programs to participate beyond the required maximum of 
20 hours a week (or a number of hours based on their benefit 
divided by the minimum wage). (Section 4208)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to make the changes authorized by this 
provision effective on October 1, 2008. (Section 4108)

(23) Codification of access rules

      The Senate amendment amends section 11(e)(1) to clarify 
that States must comply with the Secretary's regulations 
requiring the use of appropriate bilingual personnel and 
materials. (Section 4209)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4118)

(24) Expanding the use of EBT at farmers markets

      The Senate amendment requires the Secretary to make 
grants to carry out projects to expand the number of farmers' 
markets that accept Food and Nutrition program electronic 
benefit transfer (EBT) cards. Grants may not be made for 
ongoing costs and may only be provided to entities that 
demonstrate a plan to continue to provide EBT card access. 
Mandatory funding of $5 million is provided for these grants. 
(Section 4210)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision. 
Language incorporating the goals and objectives of the Senate 
provision appears in Section 10106 of the Horticulture and 
Organic Agriculture title.

(25) Review of major changes in program design

      The House bill amends section 11(e)(6) of the FSA by 
specifying that only State agency Merit System employees are 
authorized to:
            (1) represent the State in any communications with 
        prospective food stamp applicants, food stamp 
        applicants, or recipient households regarding their 
        application or participation in the food stamp program;
            (2) participate in making determinations regarding 
        a household's compliance with the requirements of the 
        FSA or its implementing regulations; or
            (3) make any other determinations required under 
        this section.
      The provision specifies that non-profit agencies that 
assist low-income individuals and households in applying for 
SSNAP benefits by helping the individuals and households 
complete and submit applications are exempted. The non-profit 
exemption applies to general application assistance, which is 
currently allowed as a food stamp outreach activity, and 
specialized projects that are operating under a waiver of the 
FSA and its implementing regulations.
      State agencies are not prohibited from contracting for 
automated systems or issuance services or for assistance in 
verifying an applicant's identity.
      Funds from any appropriations act are prohibited from 
being used for implementing or continuing any contract that 
fails to meet the specifications regarding State Merit System 
employees.
      State agencies are prohibited from using Federal funds 
to: (1) perform or carry out contracts that fail to comply with 
the specifications regarding Merit System employees; or (2) pay 
any cost associated with the termination, breach, or full or 
partial abrogation of any contact that does not comply with the 
specifications regarding State Merit System employees.
      State agencies are prohibited from conducting projects 
that fail to comply with the specifications regarding State 
agency Merit System employees.
      State agencies are prohibited from privatizing food stamp 
eligibility determinations via the simplified food stamp 
program.
      The Secretary of Agriculture may authorize a State 
agency, on a temporary basis, to use non-Merit State employees 
to determine eligibility for a disaster SSNAP program.
      States have 120 days to bring any activities inconsistent 
with this section into compliance. (Section 4015)
      The Senate amendment amends section 11(a) to clarify 
State responsibility for program administration (including 
cases where the program is operated on a state or locally-
administered basis) and to require that program records kept to 
determine whether the State is in compliance with the Act/
regulations, that such records be available for review in any 
action filed by a household to enforce the Act/regulations, and 
to specify that inspection and audit requirements are subject 
to privacy requirements contained elsewhere in the Food and 
Nutrition Act.
      The provision also amends section 11(a) to require the 
Secretary to develop standards for identifying major changes in 
State agency operations--such as substantial increases in 
reliance on automated systems, or potential increases in 
administrative burdens placed on applicant or recipient 
households. It further mandates that, if a State implements a 
major change in operations, it must notify the Secretary and 
collect any information the Secretary needs to identify and 
correct any adverse effects on program integrity or access. 
(Section 4211)
      The Conference substitute adopts the Senate provision. 
(Section 4116)

(26) Preservation of access and payment accuracy

      The Senate amendment amends section 16(g) of the FSA to 
require that computerized systems for State program operations 
receiving federal matching payments must (1) be tested 
adequately before and after implementation (including through 
pilot projects evaluated by the Secretary), and (2) be operated 
under a plan for continuous updating (to reflect changed policy 
and circumstances) and testing (for effects on households and 
payment accuracy). (Section 4212)
      The House bill has no comparable provision.
      The Conference substitute accepts the Senate provision. 
(Section 4121)

(27) Grants for simple application and eligibility determination 
        systems and improved access to benefits

      The House bill provides no changes to the Secretary's 
authority to make grants and amends section 11(t)(1) of the FSA 
by extending the grant program through Fiscal Year 2012.
      The Senate amendment amends section 11(t) of the Food and 
Nutrition Act to permanently extend the authority provided 
under that section. (Section 4801)
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes and to link the 
authority for grants for simple application and eligibility 
determination systems and improved access to benefits to the 
availability of appropriations provided through section 18(a) 
of the Supplemental Nutrition Assistance Program (SNAP). The 
language for this provision is incorporated into a single 
section reauthorizing SNAP and other domestic nutrition 
assistance programs. (Section 4406)

(28) Civil money penalties and disqualification of retail food stores 
        and wholesale food concern

      The House bill amends section 12 of the FSA by increasing 
the civil money penalties for retail stores and wholesale food 
concerns to $100,000 for each violation of the FSA or its 
regulations. The requirement that a determination as to the 
assessment of civil money penalties be based on whether there 
would be hardship for recipient households is removed.
      The provision stipulates that the period of 
disqualification:
            (1) for a first violation is not to exceed 5 years; 
        and
            (2) for a second violation is not to exceed 10 
        years.
      The provision does not change the permanent 
disqualification rules, or other requirements, governing 
applications containing false information.
      The House bill requires the Secretary, in consultation 
with USDA's Inspector General, to establish procedures whereby 
participating food concerns may be immediately suspended for 
``flagrant violations,'' pending administrative and judicial 
appeal. Unsettled benefit claims would be subject to 
forfeiture--or returned to the food concern if the 
disqualification action is not upheld (without interest). 
(Section 4017)
      The Senate amendment is the same as the House bill, with 
technical differences. (Section 4017) It also amends section 12 
to generally ease the conditions under which bonds are required 
of violating food concerns wishing to be re-approved for 
participation. The Secretary would be permitted to require 
bonds from food concerns disqualified for 180+ days (or 
subjected to a civil money penalty in lieu of a 180+ day 
disqualification). Bonds could be required for a period of not 
more than 5 years. Where a food concern has been sanctioned and 
commits a subsequent violation, the Secretary may require a 
collateral bond or irrevocable letter of credit regardless of 
the length of the disqualification period. (Section 4303)
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes. (Section 4132)

(29) Major systems failures

      The House bill provides that no changes are made to the 
methods by which a State agency is authorized to collect 
overissuances of coupons.
      The prohibition on the amount of the reduction in a 
household's monthly allotment that a State agency is allowed to 
collect in the instance where overissuance of coupons has 
occurred is continued.
      Section 13(b) of the FSA is amended by providing the 
Secretary with the discretion to determine that a State agency 
has overissued benefits to a substantial number of households 
as the result of a ``major systemic error'' by the State.
      A State agency is given the option to appeal the 
Secretary's determination. However, if the State agency fails 
to appeal the Secretary's determination, or, in the case of an 
appeal, if the State agency is held liable, the State agency is 
required to reimburse to the Secretary the amount for which the 
State agency is liable.
      The Secretary is authorized to prohibit, upon making a 
determination that over-issuances have occurred, the State 
agency from collecting the over-issuances from some or all of 
the affected households. (Section 4018)
      The Senate amendment is the same as the House bill, with 
technical differences.
      The Conference substitute adopts the House provision. The 
Managers have provided the Secretary with discretionary 
authority to determine when it is appropriate to prohibit a 
State agency from collecting overissuances from households that 
have been affected by a major system failure. In certain 
instances, it may be appropriate for the Secretary to allow the 
State to collect overissuances from households. The Managers 
expect that the Secretary will exercise this authority 
judiciously, and further expect that in circumstances where a 
major systems failure is attributable to a specific and 
deliberate action by the State, that states will not be allowed 
to pass along the costs associated with such systems failures 
to households. (Section 4133)

(30) Funding for employment and training programs

      The House bill provides no program changes. The funding 
level remains the same and is extended for each of the fiscal 
years 2008 through 2012. (Section 4019)
      The Senate amendment amends section 16(h)(1) to limit the 
time unspent unmatched federal funding for employment and 
training program expenses may remain available to 2 years (as 
opposed to until expended). Also rescinds unspent employment 
and training program funds for any fiscal year before fiscal 
year 2008. It also provides permanent authorization for funding 
of employment and training programs. (Section 4304; Section 
4801)
      The Conference substitute adopts the Senate provisions 
with amendments to allow funds to remain available for 15 
months rather than two years, to strike the requirement that 
any unobligated employment and training funds be rescinded, and 
to link the authority for funding for employment and training 
programs to the availability of appropriations provided through 
section 18(a) of the Supplemental Nutrition Assistance Program 
(SNAP). The language from subsection (b) of section 4801 of the 
Senate amendment is incorporated into a single section 
reauthorizing SNAP and other domestic nutrition assistance 
programs. (Section 4122)

(31) Reductions in payments for administrative costs

      The House bill amends section 16(k) of the FSA by 
extending the requirement to reduce State administrative cost 
payments through fiscal year 2012. (Section 4020)
      The Senate amendment amends section 16(k) to permanently 
extend the requirement to reduce State administrative cost 
payments. (Section 4801)
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes. The language for 
this provision is incorporated into a single section 
reauthorizing SNAP and other domestic nutrition assistance 
programs. (Section 4406)

(32) Performance standards for bio-metric identification technology

      The Senate amendment amends section 16 of the FSA to 
establish the conditions under which the Secretary may pay 
States the federal share (50%) of costs associated with the 
acquisition and use of biometric identification technology 
(e.g., fingerprints, retinal scans). In order to gain federal 
cost-sharing, States must provide a statistically valid and 
otherwise appropriate analysis of the cost effectiveness of 
using biometric identification technology to detect program 
fraud, demonstrate that the proposed technology is cost 
effective in reducing fraud and that no other fraud-detection 
methods are at least as cost-effective, and demonstrate that 
the system will comply with privacy protection rules. (Section 
4302)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(33) Cash payment pilot projects

      The House bill amends section 17(b)(1)(B)(vi) of the FSA 
by extending the authority for cash-payment pilot projects 
through October 1, 2012. (Section 4021)
      The Senate amendment amends section 17(b)(1)(B)(vi) by 
permanently extending existing authority for cash-payment pilot 
projects to households whose members are 65 years old or 
entitled to SSI benefits. (Section 4801)
      The Conference substitute adopts the Senate provision 
with an amendment for technical changes. The language for this 
provision is incorporated into a single section reauthorizing 
SNAP and other domestic nutrition assistance programs. (Section 
4406)

(34) Findings of Congress regarding Secure Supplemental Nutrition 
        Assistance Program education

      The House bill contains Congressional findings regarding 
the Food Stamp Program noting that the FSA ``plays an essential 
role in improving the dietary and physical activity practices 
of low-income Americans, [by] helping to reduce food 
insecurity, prevent[ing] obesity, and reduc[ing] the risks of 
chronic disease.''
      The Secretary is encouraged to support the most effective 
interventions for nutrition education under the FSA, including 
public health approaches and traditional education, to increase 
the likelihood that recipients and potential recipients of 
benefits under the SSNAP program choose diets and physical 
activity practices that are consistent with the Dietary 
Guidelines for Americans. (Section 4022)
      The Senate amendment is the same as the House bill with 
technical differences.
      The Conference substitute deletes both the House and 
Senate provisions. The Managers recognize that nutrition 
education plays an essential role in improving the dietary and 
physical activity practices of low-income individuals in the 
United States, helping to reduce food insecurity, prevent 
obesity, and reduce the risks of chronic disease. Expert 
organizations, such as the Institute of Medicine, indicate that 
dietary and physical activity behavior change is more likely to 
result from the combined application of public health 
approaches and education than from education alone.
      The Managers expect that the Secretary will support and 
encourage implementation of the most effective methods, 
informed by current science, for nutrition education under the 
Food and Nutrition Act, including those that are consistent 
with recommendations and actions of expert bodies to promote 
healthy eating and physical activity behavior change. Funds 
provided under the Food and Nutrition Act should be used for 
activities that promote the most effective implementation of 
programs to increase the likelihood that recipients of, and 
those potentially eligible for, supplemental nutrition 
assistance program benefits will choose diets and physical 
activity practices consistent with the Dietary Guidelines for 
Americans. The Managers recognize that state nutrition 
education activities under the Food and Nutrition Act work best 
when coordinated with other federally funded food assistance 
and public health programs and when policies are implemented to 
leverage public/private partnerships to maximize the resources 
and impact of the programs.

(35) Eligibility disqualification

      The Senate amendment amends section 6 of the FSA to 
disqualify (for a period determined by the Secretary) persons 
found by a court or administrative agency to have intentionally 
obtained cash by misusing program benefits to obtain money for 
return of deposits on containers. It also modifies section 6 to 
disqualify (for a period determined by the Secretary) persons 
found by a court or administrative agency to have intentionally 
sold any food that was purchased using program benefits. 
(Section 4305)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
The Managers do not intend for this provision to include 
inadvertent de minimis actions such as an individual who 
purchases a brownie mix with program benefits, then makes 
brownies and sells them at a school bake sale. (Section 4131)

(36) Definition of staple foods

      The Senate amendment amends section 3 to (1) add dietary 
supplements to the list of accessory food items that are not 
classified as staple foods for the purpose of approving the 
participation of food concerns in the program, and (2) require 
the Secretary to issue regulations to ensure that adequate 
stocks of staple foods are available on a continuous basis in 
approved food concerns. (Section 4401)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(37) Accessory food items

      The Senate amendment amends section 9 of the FSA to 
require that, within 1 year of enactment, the Secretary issue 
proposed regulations defining dietary supplements: 
multivitamin-mineral supplements providing prescribed minimum 
amounts of essential vitamins and minerals that do not exceed 
prescribed daily upper limits and certain prescribed amounts of 
folic acid or calcium. Final regulations as to dietary 
supplements must be issued within 2 years of enactment. No 
dietary supplements may be purchased with program benefits 
until the earlier of (1) the date of final regulations with 
regard to dietary supplements, or (2) the date the Secretary 
certifies a voluntary system of labeling for identification of 
eligible dietary supplements. (Section 4402)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(38) Nutrition education and promotion initiative to address obesity

      The House bill amends section 17 of the FSA by adding a 
new section that authorizes the Secretary to establish a 
demonstration program, to be known as the ``Initiative to 
Address Obesity Among Low-Income Americans,'' to develop and 
implement strategies to reduce obesity among low-income 
Americans.
      The Secretary is authorized to enter into competitively 
awarded contracts, cooperative agreements, or grants with 
public or private organizations or agencies.
      Agencies are required to submit applications to the 
Secretary, and the Secretary is to evaluate demonstration 
proposals using a variety of criteria, including: (1) 
identifying a low-income target audience that corresponds to 
individuals living with incomes at or below 185 percent of the 
poverty level; (2) incorporating scientifically-based 
strategies that are designed to improve diet quality through 
more healthful food purchases, preparation, or consumption; and 
(3) a commitment to a demonstration plan that allows for 
rigorous outcome evaluation, including data collection.
      Projects that limit the use of SSNAP program benefits are 
prohibited from receiving funding. The Secretary is authorized 
to use funds to pay costs associated with monitoring, 
evaluating, and disseminating the Initiative's findings.
      An appropriation of $10,000,000 is authorized for fiscal 
years 2008 through 2012. No new grants are to be made after 
September 30, 2012. (Section 4023)
      The Senate amendment amends section 17 to require and 
fund pilot projects to develop and test methods of using the 
Food and Nutrition program to improve the dietary and health 
status of participants and to reduce overweight, obesity, and 
associated co-morbidities. Among other initiatives, projects 
may include those providing increased program benefits, 
increased access to farmers' markets, incentives to 
participating vendors to increase the availability of healthy 
foods, adding vendor approval requirements with respect to 
carrying healthy foods, point-of-purchase incentives to 
encourage program participants to buy fruits, vegetables, and 
other healthy foods, and providing integrated communication and 
education programs (including school-based nutrition 
coordinators).
      These pilot health and nutrition promotion projects would 
include independent evaluations and annual reports on their 
status.
      Mandatory funding of $50 million is provided, and up to 
$25 million must be used for point-of-purchase incentive 
projects. (Section 4403)
      The Conference substitute adopts the House provision with 
amendments to specify that the purpose of the section is to 
carry out pilot projects to develop and test methods for 
improving the dietary and health status of households in the 
Supplemental Nutrition Assistance Program, as well as to reduce 
obesity and other diet-related diseases in the United States; 
specify the types of pilot projects that the Secretary may 
consider; include a requirement relating to evaluations and 
reports of the pilot projects; specify mandatory funding 
amounts and require that the Secretary use not more than $20 
million of that mandatory funding to carry out a point-of-
purchase pilot project to encourage households to purchase 
fruits, vegetables, or other healthy foods. (Section 4141)

(39) Hunger free communities

      The Senate amendment requires the Secretary to conduct 
and periodically update a study of major matters relating to 
hunger in the United States. The study would assess data on 
hunger and food insecurity and measures that have been carried 
out or could be carried out to achieve goals of reducing 
domestic hunger. It also would contain recommendations for 
removing obstacles to domestic hunger goals and otherwise 
reducing domestic hunger.
      The Senate amendment authorizes grants to food program 
service providers and local nonprofit organizations (like 
emergency feeding organizations) for the federal share (up to 
80%) of projects that assess community hunger problems and 
meet, or develop new resources/programs to meet, goals for 
achieving hunger-free communities.
      The provision authorizes matching grants to emergency 
feeding organizations for infrastructure development.
      Appropriations of $50 million a year (through fiscal year 
2012) are authorized. (Section 4405)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments to strike the definition of food security; 
strike the study and report relating to hunger; specify that 
not more than 50 percent of the funds made available under this 
section be used for the federal share of collaborative grants; 
strike requirements relating to the contents of collaborative 
grants and priority for eligible entities that meet certain 
criteria; and to make other technical changes. (Section 4405)

(40) State performance on enrolling children receiving program benefits 
        for free school meals

      The Senate amendment requires the Secretary to submit 
annual reports that assess the effectiveness and practices of 
each State in enrolling school-aged children in households 
receiving food stamp benefits for free school meals using 
``direct certification'' (a current-law procedure allowing 
children in families receiving program benefits to be deemed 
automatically eligible for free school meals). (Section 4406)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to add the House Committee on Education and 
Labor to the list of recipients of the reports produced by the 
Secretary in accordance with this section. The Managers 
recognize the time and data constraints for developing the 
report scheduled to be provided on or before December 31, 2008, 
and expect that this report will include as much data as 
possible given such constraints. (Section 4301)

(41) Authorization of appropriations

      The House bill amends section 18(a)(1) of the FSA by 
reauthorizing appropriations to carry out that Act through 
2012. (Section 4024)
      The Senate amendment amends section 18(a)(1) of the Food 
and Nutrition Act by permanently reauthorizing appropriations 
to carry out the Act. (Section 4801)
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes and to extend 
authority for appropriations to carry out the Supplemental 
Nutrition Assistance Program (SNAP) through fiscal year 2012. 
The language for this provision is incorporated into a single 
section reauthorizing SNAP and other domestic nutrition 
assistance programs. (Section 4406)

(42) Consolidated block grants for Puerto Rico and American Samoa

      The House bill amends section 19(a)(2)(A) of the FSA by 
extending to 2012 the Secretary's authority to provide funds to 
Puerto Rico and American Samoa to administer their nutrition 
assistance programs. (Section 4025)
      The Senate amendment amends section 19(a)(2)(A)(ii) of 
the Food and Nutrition Act by permanently extending the 
Secretary's authority to provide funds to Puerto Rico and 
American Samoa to administer their nutrition assistance 
programs. (Section 4801)
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes and to link the 
authority for consolidated block grants for Puerto Rico and 
American Samoa to the availability of appropriations provided 
through section 18(a) of the Supplemental Nutrition Assistance 
Program (SNAP). The language for this provision is incorporated 
into a single section reauthorizing SNAP and other domestic 
nutrition assistance programs. (Section 4406)

(43) Study on comparable access to nutrition assistance program 
        benefits for Puerto Rico

      The House bill amends section 19 of the FSA by 
authorizing the Secretary to conduct a study on the feasibility 
of including Commonwealth of Puerto Rico in the SSNAP program, 
in lieu of providing Puerto Rico with a block grant.
      The study is to include, among other findings: (a) an 
assessment of the administrative, financial, and other changes 
that would be required for Puerto Rico to establish a 
comparable SSNAP program; (b) a discussion of the appropriate 
program rules under other sections of the FSA, such as benefit 
levels, income eligibility standards, and deduction levels for 
Puerto Rico to establish a comparable SSNAP program; (c) an 
estimate of the impact on Federal and Commonwealth benefit and 
administrative costs; and (d) an estimate on the impact of the 
SSNAP program on hunger and food insecurity among low-income 
Puerto Ricans. (Section 4026)
      The Senate amendment is the same as the House bill (with 
technical differences), but provides mandatory funding of $1 
million to conduct the study. (Section 4206)
      The Conference substitute adopts the Senate provision. 
(Section 4142)

(44) Reauthorization of community food project competitive grants

      The House bill continues the Secretary's authority to 
make grants. Section 25 of the FSA is amended by authorizing an 
appropriation of $30,000,000 a year through fiscal year 2012 
for community food projects. The eligibility requirements 
remain unchanged.
      Section 25 of the FSA is amended by expanding the list of 
preferences for selecting community food projects to include 
projects that are designed to serve special needs in the areas 
of: (1) emergency food service infrastructure; (2) retail 
access to underserved markets; (3) integration of urban and 
metro-area food production in food projects; and (4) technical 
assistance for youth, socially disadvantaged individuals, and 
limited resource groups.
      The Federal share of the cost of establishing or carrying 
out a community food project is not to exceed 75 percent of the 
cost of the project during the time of the grant.
      The maximum term of a grant is increased to 5 years.
      No changes are made to the Secretary's authority.
      The Secretary is required to allocate, for each of the 
fiscal years 2008 through 2012, out of the funds made available 
to carry out community food projects, $500,000 for the project 
to address common community problems.
      The Senate amendment amends section 25 of the Food and 
Nutrition Act to provide $10 million a year in mandatory 
funding for community food projects, through fiscal year 2012.
      The Conference substitute adopts the Senate provision 
with amendments to authorize the establishment of and provide a 
grant to the Healthy Food Urban Enterprise Development Center; 
to provide authority for the Center to provide subgrants to 
eligible entities for the purpose of carrying out feasibility 
studies, as well as to establish and facilitate enterprises 
that process, distribute, aggregate, store, and market healthy 
affordable foods; to provide mandatory funding of $1,000,000 a 
year for fiscal years 2009 through 2011 for the Center, and to 
incorporate these changes into section 4402. The Senate 
provision providing mandatory funding of $5 million a year for 
the Community Food Projects competitive grants appears in 
section 4406. (Section 4402; Section 4406)

(45) Emergency Food Assistance Program

      The House bill amends section 27 of the FSA by increasing 
the Emergency Food Assistance Program (TEFAP) commodity 
purchase requirement. In fiscal year 2008, the Secretary is 
authorized to purchase a total of $250,000,000 in commodities; 
for fiscal years 2009 through 2012, the dollar amount is to be 
indexed annually for food-price inflation. (Section 4028)
      The Senate amendment is substantially similar to the 
House bill with technical differences and without the 
requirement to index the base amount of $250 million per year. 
(Section 4110)
      The Conference substitute adopts the Senate provision 
with amendments to increase mandatory funding to $190,000,000 
in fiscal year 2008, $250,000,000 in fiscal year 2009 and 
subsequently indexed for food-price inflation during fiscal 
years 2010 through 2012. (Section 4201)

(46) Authorization of appropriations

      The House bill amends section 204(a) of the Emergency 
Assistance Food Act of 1983 by increasing the authorization of 
appropriations to $100,000,000 a year, through fiscal year 
2012. (Section 4201)
      The Senate amendment amends section 204(a) of the 
Emergency Food Assistance Act by permanently increasing the 
authorization of appropriations to $100 million a year. It also 
requires that State TEFAP agencies submit operation and 
administrative plans every 3 years (as opposed to every 4 years 
under current law) and makes clear that funds may be applied to 
the cost of administering wild game donations. (Section 4802, 
4601)
      The Conference substitute adopts the Senate provisions 
with amendments to specify that amendments to State operation 
and administrative plans may be submitted as necessary; and to 
combine sections 4802 and 4601 into a single section. (Section 
4201)

(47) Distribution of commodities special nutrition projects

      The House bill provides that no changes are made to the 
mandate encouraging reprocessing agreements, with respect to 
surplus commodities.
      Section 1114(a)(2)(A) of the Agriculture and Food Act 
(AFA) is amended by extending, through fiscal year 2012, the 
requirement for the Secretary to encourage reprocessing 
agreements. (Section 4202)
      The Senate amendment is the same as House bill with 
technical differences. (Section 4802)
      The Conference substitute adopts the Senate provision 
with an amendment for technical changes. The language for this 
provision is incorporated into a single section reauthorizing 
the Supplemental Nutrition Assistance Program and other 
domestic nutrition assistance programs. (Section 4406)

(48) Commodity Distribution Program

      The House bill amends section 4(a) of the Agriculture and 
Consumer Protection Act of 1973 (ACPA) by extending the 
Secretary's authority through fiscal year 2012.
      Section 5 of the ACPA is amended by extending through 
fiscal year 2012 the ACPA requirement concerning inflation-
indexed caseload slot grants.
      Section 5(d)(2) of the ACPA is amended by extending the 
requirement that the Commodity Credit Corporation (CCC) furnish 
cheese and nonfat dry milk for the Community Supplemental Food 
Program (CSFP) through fiscal year 2012.
      Section 5(g) of the ACPA is amended by mandating that 
local agencies are to use funds made available under the CSFP 
to provide assistance to low-income elderly individuals, women, 
infants, and children in need for food assistance in accordance 
with any regulations the Secretary may prescribe. Conforming 
amendments are made stipulating that CSFP benefits are 
available to low-income elderly individuals.
      Section 5 of the ACPA is further amended by requiring the 
Secretary to establish maximum income eligibility standards for 
the CSFP that are the same for all applicants. The standards 
are not to exceed the maximum income limits established for the 
Special Supplemental Nutrition Program for Women, Infants, and 
Children (WIC)--i.e., 185 percent of the federal poverty income 
guidelines. (Section 4203)
      The Senate amendment amends section 4(a) of the ACPA by 
permanently extending the Secretary's authority to purchase and 
distribute agricultural commodities for food assistance 
programs (including the Commodity Supplemental Food Program).
      The Senate amendment permanently extends the ACPA 
requirement in section 5 for inflation-indexed caseload slot 
grants, and permits State to serve low-income elderly persons 
with income up to 185% of the federal poverty income 
guidelines, if the Secretary determines that annual 
appropriations have enabled every State seeking to participate 
in the CSFP to participate.
      Section 4602 bars the Secretary from requiring any State 
or local CSFP program to prioritize assistance to a particular 
group of individuals that are low-income elderly persons or 
women, infants, and children. (Section 4802, 4602)
      The Conference substitute adopts the Senate provisions 
with amendments to make technical changes to incorporate the 
reauthorization of the Commodity Supplemental Food Program into 
Section 4406; incorporate language relating to the prohibition 
on requiring State or local agencies to prioritize assistance 
to certain groups of individuals into section 4221. (Section 
4406; Section 4221)
      The Managers recognize the importance of the Commodity 
Supplemental Food Program (CSFP) as a critical nutrition 
program that serves primarily the vulnerable population of low-
income elderly Americans. CSFP provides nutritious food, often 
in the form of food boxes for home delivery, that are designed 
to meet the dietary needs of seniors, women, and children in 32 
states, two Indian tribal organizations, and the District of 
Columbia. In fiscal year 2007, 93 percent of the recipients 
were elderly individuals with an annual income at or below 
$13,273. CSFP serves a unique niche by providing nutritious 
commodities to homebound seniors who are at severe risk for 
hunger.
      The Managers fully support the continued operation of 
this program and recognize the need for a substantial expansion 
of the CSFP. The Managers note that there are five states that 
have currently been approved by USDA for entry into CSFP 
(Arkansas, Delaware, Oklahoma, New Jersey and Utah) subject to 
the availability of appropriations. Provided that sufficient 
funds are appropriated by Congress, the Managers encourage the 
Secretary to approve all remaining states for expansion and to 
expand caseload in all participating states.

(49) Periodic surveys of foods purchased by school food authorities

      The Senate amendment amends section 6 of the Richard B. 
Russell National School Lunch Act to require periodic 
nationally representative surveys of food purchased by schools 
participating in the school lunch program. It also provides 
funding of $3 million for each survey. (Section 4901)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to provide one-time funding of $3,000,000 to 
carry out the section. (Section 4307)

(50) Healthy Food Education and Program replicability

      The Senate amendment amends section 18(i) to provide that 
sponsored projects may promote healthy food education and that 
the Secretary must give priority to projects that can be 
replicated in schools. It also authorizes a new pilot project 
(at $10 million) in not more than 5 States under which grants 
are made to ``high-poverty'' schools for initiatives with 
hands-on gardening. No cost-sharing is required. (Section 4903)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to strike the authorization of appropriations 
to carry out the provision. (Section 4303)

(51) Purchase of fresh fruits and vegetables for distribution to 
        schools and service institutions

      The House bill amends section 10603 of the Farm Security 
and Rural Investment Act of 2002 (FSRIA) by increasing the 
dollar amount of fresh fruits, vegetables and other specialty 
foods the Secretary must procure for schools and service 
institutions participating in programs under the National 
School Lunch Act to at least $50,000,000 a year for each of the 
fiscal years 2008 and 2009 and $75,000,000 a year for each of 
the fiscal years 2010 through 2012. As under current law, these 
amounts may be spent through the Department of Defense (DoD) 
Fresh Program. (Section 4301)
      The Senate amendment provides that, in lieu of purchases 
required under Sec. 10603, the Secretary purchase fruits, 
vegetables, and nuts for use in domestic food assistance 
programs using Section 32 funds.
      Purchase amounts are set at: $390 million for fiscal year 
2008, $393 million for fiscal year 2009, $399 million for 
fiscal year 2010, $403 million for fiscal year 2011, and $406 
million for fiscal year 2012 and each year thereafter.
      Items purchased may be in frozen, canned, dried, or fresh 
form.
      The Senate amendment also allows the Secretary to offer 
value-added products containing fruits, vegetables or nuts 
after taking into consideration whether demand exists for the 
value-added product and the interest of entities that receive 
fruits, vegetables and nuts under this program. (Section 4907)
      The Conference substitute adopts the House language with 
an amendment to retain the current $50 million a year 
requirement to acquire fresh fruits and vegetables for 
distribution in accordance with section 6(a) of the Richard B. 
Russell National School Lunch Act. The Managers expect the 
purchases of fresh fruits and vegetables previously made 
through the Department of Defense Fresh Program will continue 
under an equivalent procurement mechanism. (Section 4404)

(52) Buy America requirements

      The House bill includes Congressional findings that: (1) 
Federal law requires that commodities and products purchased 
with Federal funds be, to the extent practicable, of domestic 
origin; (2) Federal Buy American statutory requirements seek to 
ensure that purchases made with Federal funds benefit domestic 
producers; and (3) the School Lunch Act requires the use of 
domestic food products for all meals served under the program, 
including food products purchased with local funds. (Section 
4302)
      The Senate amendment is the same as the House bill, with 
technical differences. (Section 4906).
      The Conference substitute adopts the House provision. 
(Section 4306)

(53) Expansion of Fresh Fruit and Vegetable Program

      The House bill amends section 18(f) of the Richard B. 
Russell National School Lunch Act (NSLA) by expanding the fresh 
fruit and vegetable program in elementary and secondary 
schools. Mandatory funding is increased from $9,000,000 to 
$70,000,000 a year, and the program is to be available 
nationwide in: (A) 35 elementary and secondary schools in each 
State; and (B) additional elementary and secondary schools in 
each State in proportion to the student population of the 
State.
      The Senate amendment replaces the current fresh fruit and 
vegetable program, beginning with the 2008-2009 school year. 
The new program would provide mandatory funding ($225 million 
in the first year, indexed for inflation in later years) and 
authorize additional appropriations for a program to make free 
fresh fruits and vegetables available in participating 
elementary schools nationwide.
      Participating elementary schools would be selected by 
States with priority generally given to schools with the 
highest proportion of children eligible for free or reduced-
price school meals, those that partner with entities that 
provide non-federal resources, and those that evidence efforts 
to integrate the program with other efforts to promote sound 
health and nutrition, reduce overweight and obesity, or promote 
physical activity.
      Funding would be allocated among States under a formula 
distributing roughly half of the funds equally among States and 
apportioning the remainder based on State population. At least 
100 schools chosen to participate must be operated on Indian 
reservations. Per-student grants would be determined by the 
State but could not be less than $50, or more than $75, 
annually.
      An evaluation is required and provided funding of $3 
million to remain available until expended.
      The Senate amendment changes the final report's due date 
to December 31, 2012.
      The Secretary is authorized, in selecting schools to 
participate in the program, to encourage plans for 
implementation that include locally grown foods.
      The Secretary is required to establish requirements to be 
followed by States in administering the Fresh Fruit and 
Vegetable Program--the initial set of requirements must be 
established not later than 1 year after the enactment.
      The Secretary is allowed to reserve up to 1% of program 
funding for administrative expenses related to the program. 
States may use up to 5% of program funding for administrative 
expenses. (Section 4904)
      The Conference substitute adopts the Senate provision 
with several amendments. The substitute deletes Senate language 
allowing a consortia of schools to apply for funding. The 
substitute includes a new requirement that state agencies 
administering the program initiate special outreach to schools 
with significant numbers of children eligible for free or 
reduced price meals informing them of their eligibility for the 
program. The substitute includes a new provision to ensure that 
states currently receiving funding under the program do not see 
a reduction in their funding as the program is phased in over 
time. The substitute includes an amendment which allows states 
to reserve funding for program administration, in accordance 
with regulations promulgated by the Secretary. And the 
substitute includes several provisions intended to aid the 
Secretary as the program transitions from the existing 
requirements of section 18(f) to the new requirements 
established by this section. Mandatory funding is provided 
through section 32 of the Act of August 24, 1935 in the amounts 
of $40,000,000 on October 1, 2008; $65,000,000 on July 1, 2009; 
$101,000,000 on July 1, 2010; $150,000,000 on July 1, 2011; 
$150,000,000 indexed for inflation according to the CPI-U on 
July 1, 2012. (Section 4304)
      It is the intent of the Managers to specifically target 
available program funding to schools with the highest 
proportion of children who are eligible for free and reduced 
price meals, in accordance with (d)(1)(B). Accordingly, the 
Managers expect that, provided the rest of a school's 
application is acceptable, that a school with a higher 
proportion of children eligible for free and reduced-price 
meals will be selected to participate rather than a school with 
a lower proportion of children eligible for free and reduced-
price meals.
      As the name of the program makes clear, it is the intent 
of the program to provide children with free fresh fruits and 
vegetables. It is not the intent of the Managers to allow this 
program to provide other products, such as nuts, either on 
their own or comingled with other foods, such as in a trail 
mix. The Managers support the inclusion of all fruits and 
vegetables in the federal nutrition programs where supported by 
science and will continue to work with the Department on 
promoting access to all fruits and vegetables.

(54) Purchases of locally produced foods

      The House bill amends section 9(j) of the NSLA by 
authorizing the Secretary to:
            (1) encourage institutions that receive funds under 
        the NSLA and the Child Nutrition Act (CNA) to purchase, 
        to the maximum extent practicable and appropriate, 
        locally-produced foods;
            (2) advise institutions about the policy related to 
        purchasing locally-produced foods and post information 
        related to this policy on the website maintained by the 
        Secretary; and
            (3) allow institutions receiving funds under the 
        NSLA and the CNA, including the DoD Fruit and Vegetable 
        Program, to use geographic preference in their 
        procurement of locally- produced foods. (Section 4304)
      The Senate amendment is the same as the House bill, 
except that Senate amendment pertains to locally produced 
fruits and vegetables. (Section 4902)
      The Conference substitute adopts the House provision with 
an amendment to specify that the Department of Agriculture is 
required to allow institutions to use a geographic preference 
for the procurement of unprocessed, locally grown and raised 
agricultural products. (Section 4302)
      The Managers do not intend that the Food and Nutrition 
Service interpret the term ``unprocessed'' literally, but 
rather intend that it be logically implemented. In specifying 
the term ``unprocessed,'' the Managers'' use of the term 
intends to preclude the use of geographic preference for 
agricultural products that have significant value added 
components. The Managers do not intend to preclude de minimis 
handling and preparation such as may be necessary to present an 
agricultural product to a school food authority in a useable 
form, such as washing vegetables, bagging greens, butchering 
livestock and poultry, pasteurizing milk, and putting eggs in a 
carton.

(55) Seniors Farmers' Market Nutrition Program

      The House bill amends section 4402 of FSRIA by: (1) 
extending mandatory funding of $15,000,000 for the Senior 
Farmers' Market Nutrition Program through fiscal year 2012; and 
(2) authorizing additional appropriations of $20,000,000 for 
fiscal year 2008, $30,000,000 for fiscal year 2009, $45,000,000 
for fiscal year 2010, $60,000,000 for fiscal year 2011, and 
$75,000,000 for fiscal year 2012.
      Honey is added to the list of items to be covered by 
program vouchers.
      The value of benefits provided to eligible Senior 
Farmers' Market Nutrition Program recipients is prohibited from 
being considered income or resources for any purposes under any 
Federal, State or local law. State and local governments are 
also prohibited from collecting taxes on food purchased with 
vouchers distributed under the program. (Section 4401)
      The Senate amendment amends section 4402 by permanently 
extending mandatory funding for the senior farmers' market 
nutrition program (at $15 million a year). It also mandates 
additional funding of $10 million a year.
      Provisions regarding the treatment of senior farmers' 
market nutrition program benefits are the same as in the House 
bill. (Section (4701, 4702)
      The Conference substitute adopts the House provision with 
an amendment to strike the authorization of additional 
appropriations to carry out the program, and to make other 
technical changes. The Senate provision requiring additional 
mandatory funds is adopted and appears in section 4405 with an 
amendment to increase current mandatory funding to $20,600,000 
a year. (Section 4231)

(56) Congressional Hunger Center

      The House bill amends section 4404 of FSRIA with 
provisions similar to those contained in current law. 
Provisions in this section differ from those in current law by 
authorizing annual appropriations of $3,000,000 a year, through 
fiscal year 2012, and by specifically naming the Congressional 
Hunger Center as the administering entity for Emerson and 
Leland fellowships. (Section 4402)
      The Senate amendment is the same as the House bill, with 
technical differences and requires: 1) issuance of a grant from 
USDA to the Congressional Hunger Center to administer the 
program (as opposed to a contract in the House bill); and (2) 
an appropriations authorization set at ``such sums as are 
necessary.'' (Section 4404)
      The Conference substitute adopts the Senate provision 
with an amendment to strike language pertaining to 
congressional findings, and make other technical changes. 
(Section 4401)

(57) Joint Nutrition Monitoring

      The House bill amends Subtitle D of Title IV of FSRIA by 
authorizing the Secretary of Agriculture, along with the 
Secretary of Health and Human Services, to continue to provide 
jointly for national nutrition monitoring and related research 
activities.
      Among other duties, the two Secretaries are required to: 
(a) collect continuous dietary, health, physical activity, and 
diet and health knowledge data on a nationally representative 
sample; (b) periodically collect data on special at-risk 
populations as identified by the Secretaries; (c) distribute 
information on health, nutrition, the environment, and physical 
activity to the public in a timely fashion; (d) analyze new 
data that becomes available; (e) continuously update food 
composition tables; and (f) research and develop data 
collection methods and standards. (Section 4403)
      The Senate amendment is the same as the House bill, with 
technical differences. Freestanding provision. (Section 7501)
      The Conference substitute adopts the House provision with 
a technical amendment to structure the language as a 
freestanding provision. (Section 4403)

(58) Team Nutrition Network

      The Senate amendment provides mandatory funding for Team 
Nutrition Network activities--$3 million a year through fiscal 
year 2012. (Section 4905)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(59) Agricultural policy and public health

      The Senate amendment requires the Government 
Accountability Office (GAO) to assess whether the agricultural 
policies of the U.S. have an impact on health, nutrition, 
overweight and obesity, and diet-related chronic disease. 
(Section 4908)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(60) Sense of the Congress

      The House bill expresses the sense of Congress that food 
items provided pursuant to the Federal School Meal Program 
should be selected so as to reduce the incidence of juvenile 
diabetes and to maximize nutritional value. (Section 4404)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision.

(61) Grain Pilot Program

    The Senate amendment amends the Richard B. Russell National 
School Lunch Act to establish a pilot project to provide grain 
products in selected elementary and secondary schools. Funding 
of $4 million is provided--to be supplied from funds available 
for the senior farmers' market nutrition program and community 
food projects. (Section 4912)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments to purchase whole grain products for 
distribution in the school lunch and breakfast programs; 
provide an evaluation of the pilot program; and to require that 
funding to carry out this program be utilized from funds made 
available under Section 32 of the Act of August 24, 1935. 
(Section 4305)

(62) Report on Federal hunger programs

    The Senate amendment requires the Government Accountability 
Office (GAO) to submit a report that surveys all federal 
programs that seek to alleviate hunger or food insecurity or 
improve nutritional intake. (Section 4913)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(63) Food Employment Empowerment and Development Program

      The Senate amendment authorizes a ``food employment 
empowerment and development'' program under which grants would 
be made to encourage the effective use of community resources 
to combat hunger and the causes of hunger through food recovery 
and job training initiatives. (Section 4914)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision. 
The Managers note that the activities authorized under the 
Senate provision are eligible for funding under the Community 
Food Projects (CFP) competitive grants program, and encourage 
organizations seeking federal assistance to carry out such 
activities to submit an application for funding through CFP.
      The Managers recognize the Community Food Projects (CFP) 
program is designed to provide one-time grant funding for 
projects that meet the food needs of low-income people, 
increase the self-reliance of communities in providing for 
their own food needs, and plan for long-term solutions to 
address such needs. The Managers acknowledge that the Food 
Employment Empowerment and Development (FEED) Program meets the 
requisite eligibility standards for funding under the CFP 
program.
      The goal of the FEED Program is to encourage the 
effective use of community resources to combat hunger and the 
root causes of hunger by creating opportunity through food 
recovery and job training. In general, eligible participants of 
the FEED Program, such as school based programs, will focus 
their efforts in the following areas:
            (1) Recovery of donated food from area restaurants, 
        caterers, hotels, cafeterias, farms, or other food 
        service businesses and distribution of meals or 
        recovered food to nonprofit organizations.
            (2) Training of unemployed and underemployed adults 
        for careers in the food service industry.
            (3) Carrying out of a welfare-to-work job training.
      The Managers expect USDA to give full consideration to 
CFP grant applications that meet the goals of the FEED program.

(64) Infrastructure and transportation grants to support rural food 
        bank delivery of perishable foods

      The Senate amendment authorizes competitive grants--
totaling $10 million a year through fiscal year 2012--to expand 
the capacity and infrastructure of food banks to improve their 
ability to handle ``time-sensitive'' (perishable) food 
products, to improve identification of potential providers of 
donated food, and to support the procurement of locally-
produced food from small and family farms and ranches. (Section 
4915)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments to structure the provision as an amendment to 
the Emergency Food Assistance Act of 1983; provide a 
requirement that the Secretary use not less than 50 percent of 
grant funds for rural areas; specify authorized levels of 
appropriations; and to make other technical changes. (Section 
4202)

(65) Reauthorization and application

      The House bill extends the various expiring authorities 
through fiscal year 2012 in sections 4016, 4019, 4020, 4021, 
4024, 4025, 4027, 4028, 4201, 4202, and 4203 of this Act, 
except for the authorization of appropriations for the 
nutrition information and awareness program established by 
Section 4403 of FSRIA. (Section 4016, 4019, 4020, 4021, 4024, 
4025, 4027, 4028, 4201, 4202 and 4203)
      The Senate amendment extends most expiring authorities 
indefinitely. Community food projects, authority in section 
1114(a)(2) of the AFA, and the nutrition information and 
awareness program are extended through FY2012.
      The Senate amendment also stipulates that, except as 
otherwise provided, the amendments made in the Nutrition title 
take effect April 1, 2008. It also provides that States may 
implement amendments made in Sections 4101 through 4110 
beginning on a date determined by the State during the period 
between April 1 and October 1, 2008. States are given the 
option to implement amendments made by sections 4103 and 4104 
for a certification period that begins not earlier than an 
implementation date between April 1 and October 1, 2008 (as 
determined by the State).
      This section provides that the amendments made in 
sections 4101-4104, 4107-4109, 4110(a)(2), 4208, 4701(a)(3), 
4801(g), and 4903 terminate September 30, 2012. (Section 4801, 
4802, 4803, 4910, 4911)
      The Conference substitute adopts the Senate provision 
with amendments for technical changes, to extend various 
expiring authorities through fiscal year 2012, and to link 
various expiring authorities to the availability of 
appropriations provided through section 18(a) of the 
Supplemental Nutrition Assistance Program (SNAP). The language 
for this provision is incorporated into a single section 
reauthorizing SNAP and other domestic nutrition assistance 
programs. (Section 4406)

(66) Study on purchases of food with program benefits

      The Senate amendment requires GAO to conduct a study of 
the effects of a rule requiring that food stamp benefits only 
be used to purchase food included in the most recent thrifty 
food plan market basket. (Section 4202)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

                            TITLE V--CREDIT


(1) Farming experience

      The Senate amendment amends section 302(a)(2) of the 
Consolidated Farm and Rural Development Act (Con Act) by 
clarifying that the Secretary may take into consideration all 
farming experience of a loan applicant when considering 
eligibility for farm ownership loans. (Section 5001)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 5001)

(2) Refinancing of guaranteed farm ownership loans for beginning 
        farmers or ranchers

      The Senate amendment amends Section 303 of the Con Act by 
allowing beginning farmers or ranchers to refinance a 
delinquent guaranteed farm ownership loan with a direct farm 
ownership loan. (Section 5002)
      The House bill as no comparable provision.
      The Conference substitute deletes the Senate provision.

(3) Conservation loan guarantee program

      The House bill amends section 304 of the Con Act by 
creating a conservation loan guarantee program. The Secretary 
is authorized to provide loan guarantees and interest 
subsidies, or both, to farmers, ranchers, and other entities 
that are controlled by farmers and ranchers and primarily and 
directly engaged in agricultural production to carry out 
qualified conservation projects.
      The Secretary is required to give priority to: qualified 
beginning farmers or ranchers; socially disadvantaged farmers 
or ranchers; owners or tenants who use the loans to convert to 
sustainable or organic agricultural production systems; and 
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.
      The term ``qualified conservation loan'' is defined as a 
loan in which: the proceeds are used to cover the costs of the 
borrower in carrying out a qualified conservation project; the 
principal amount of the loan is not more than $1 million; the 
loan repayment period is 10 years; and the total amount of all 
processing fees does not exceed an amount to be prescribed by 
the Secretary.
      The term ``qualified conservation project'' is defined as 
conservation measures that address provisions of the borrower's 
conservation plan.
      The term ``conservation plan'' is defined as a plan, 
approved by the Secretary, that for a farming or ranching 
operation, identifies the conservation activities that will be 
addressed with the conservation loan, including the 
installation of conservation structures; the establishment of 
forest cover for sustained yield timber management, erosion 
control, or shelter belt purposes; the installation of water 
conservation measures; the installation of waste management 
systems; and the establishment of improvement or permanent 
pasture; compliance with section 1212 of the Food Security Act 
of 1985; and any other emerging or existing conservation 
practices, techniques, or technologies approved by the 
Secretary.
      The amount of the interest subsidies the Secretary may 
provide is limited to 500 basis points, if the principal amount 
of the loan is less than $100,000; 400 basis points, if the 
principal amount of the loan is not less than $100,000 and is 
less than $500,000; and 300 basis points in all other cases.
      The Secretary is prohibited from approving any 
application for the program unless the Secretary determines 
that the loan sought by the applicant, as described in the 
application, would be a qualified conservation loan, and the 
project for which the loan is sought is likely to result in a 
net benefit to the environment.
      Necessary appropriations are authorized for each of the 
fiscal years 2008 through 2012. (Section 5001)
      The Senate amendment amends section 304 of the Con Act. 
The transition to organic and sustainable farming practices is 
to be an eligible loan purpose. The implementation of one or 
more practices under the Environmental Quality Incentives 
Program is also to be an eligible loan purpose.
      Beginning farmers or ranchers and socially disadvantaged 
farmers or ranchers are to be given priority in this program.
      The loan restriction of $50,000 is eliminated. (Section 
5003)
      The Managers agreed to include the House provision in the 
Conference substitute, with an amendment. The amendment 
establishes a conservation loan and loan guarantee program 
where eligible borrowers may get a loan or loan guarantee to 
carry out qualified conservation projects. The Secretary shall 
guarantee 75 percent of the principle loan amount guaranteed 
under this program. It is the intent of the Managers that the 
loan program established in the section should complement 
financial assistance offered in the conservation title of this 
Act. In addition to the priorities established under the 
program, the Secretary shall give strong consideration to loan 
applicants who are awaiting funding under conservation programs 
authorized and established under title XII of the Food Security 
Act of 1985. (Section 5002)
      Qualified conservation projects eligible to receive 
funding under this program must have a conservation plan that 
identifies the conservation activities that will be addressed 
by a loan made under this program. It is the Managers' view 
that conservation structures that address soil, water and 
related resources include sod waterways, permanently vegetated 
stream boarders and filter strips, wind breaks, shelterbelts, 
living snow fences, and other vegetative practices.
      It is also the Managers' intent that the Farm Service 
Agency operating loan limitations established in section 312 of 
the Con Act are to apply to a loan or loan guaranteed under 
this program.

(4) Limitations on amount of ownership loans

      The House bill amends section 305(a)(2) of the Con Act by 
setting the farm ownership loan limit at $300,000.
      The Secretary is required to establish a plan, in 
coordination with the activities under section 359, 360, 361, 
and 362 of the Con Act, to encourage borrowers to graduate to 
private commercial or other sources of credit. (Section 5002)
      The Senate amendment is the same as the House bill but 
has no comparable provisions requiring the Secretary to 
establish graduation criteria. (Section 5004)
      The Conference substitute adopts the Senate provision. 
(Section 5003)

(5) Down payment loan program

      The House bill amends section 310E of the Con Act by: 
including socially disadvantaged farmers or ranchers in the 
down payment loan program; setting the Farm Services 
Administration (FSA) portion of the loan at 45 percent; fixing 
the interest rate for the program at 4 percent below the 
regular direct farm ownership interest rate or 1 percent, 
whichever is greater; setting the duration of the loan at 20 
years; requiring a borrower down payment of 5 percent; and 
setting the maximum price for the farm or ranch at $500,000.
      The Secretary is authorized to 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 lenders 
to qualified beginning farmers or ranchers or socially 
disadvantaged farmers or ranchers. (Section 5003)
      The Senate amendment amends section 310E of the Con Act 
by: allowing socially disadvantaged farmers or ranchers to be 
eligible for the down payment loan program; setting the FSA 
portion of the loan at 45 percent; and adjusting the interest 
rate for the down payment loan to the greater of 4 percent 
below the interest rate for the regular farm ownership loan or 
2 percent.
      The duration of the loan, the borrower payment, and the 
maximum price are the same as the House bill.
      The Secretary is required to establish annual performance 
goals to promote the use of the down payment loan program and 
joint financing arrangements. (Section 5004)
      The Conference substitute adopts the House provision with 
an amendment to adjust the interest rate to 4 percent below the 
regular direct farm ownership interest rate or 1.5 percent, 
whichever is greater. (Section 5004)

(6) Beginning farmer and rancher contract land sales program

      The House bill amends section 310F of the Con Act by: 
expanding the beginning farmer and rancher contract land sales 
program to include socially disadvantaged farmers or ranchers; 
making the program permanent and expanding it nationwide; 
requiring program participants to provide a down payment of 5 
percent of the purchase price of the farm or ranch; setting the 
maximum purchase price for the farm or ranch that is the 
subject of the contract land sale at $500,000; and setting the 
loan guarantee period, for a loan provided under this program, 
at 10 years.
      The land seller is given the option of choosing either a 
prompt payment guarantee or a standard guarantee. A prompt 
payment guarantee consists of either three amortized annual 
installments or an amount equal to three annual installments 
(including an amount equal to the total cost of any tax and 
insurance incurred during the period covered by the annual 
installments. A standard guarantee plan covers an amount equal 
to 90 percent of the outstanding principle of the loan. 
(Section 5004)
      The Senate amendment is the same as the House bill except 
socially disadvantaged farmers or ranchers are not added as 
eligible participants. In addition, the Senate amendment does 
have a standard guarantee plan. (Section 5006)
      The Conference substitute adopts the House provision with 
amendment. The amendment clarifies that in order for a private 
seller to use the standard guarantee plan they must obtain a 
servicing agent who will be responsible for servicing 
activities associated with the contract land sale. Further, the 
amendment allows the Secretary to phase-in use of the standard 
guaranteed option. (Section 5005)

(7) Loans to purchase highly fractioned lands

      The House bill amends section 1 of Public Law 91-229 (25 
U.S.C. 488) by giving the Secretary of Agriculture the 
discretionary authority to make and insure loans, as provided 
in section 309 of the Con Act, to eligible purchasers of highly 
fractioned lands, pursuant to section 204(c) of the Indian Land 
Consolidation Act. (Section 5005)
      The Senate amendment is the same as the House except it 
amends section 205(c) of the Indian Land Consolidation Act. 
(Section 5401)
      The Conference substitute adopts the Senate provision. 
(Section 5501)

(8) Farming experience; direct operating loan term limitations

      The Senate amendment amends section 311(a) of the Con Act 
by clarifying that the Secretary may take into consideration 
all farming experience of a loan applicant when considering 
eligibility for farm operating loans. The period that a 
participant is eligible for direct operating loan assistance is 
extended by 1 year. (Section 5105)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to delete the provision that extends the 
period of time a borrower is eligible for direct farm operating 
loan assistance. (Section 5101)

(9) Limitations on amount of operating loans

      The House bill amends section 313(a)(1) of the Con Act by 
limiting the amount of an operating loan other than one 
guaranteed by the Secretary to $300,000. (Section 5012)
      The Senate amendment includes the same provision as the 
House bill. (Section 5102)
      The Conference substitute adopts the House provision. 
(Section 5102)

(10) Suspension of limitation on period for which borrowers are 
        eligible for guaranteed assistance

      The House bill amends section 5102 of the Farm Security 
and Rural Investment Act of 2002 (FSRIA) by suspending, until 
January 1, 2008, a limitation placed on the number of years 
that borrowers are eligible to receive guaranteed assistance on 
operating loans. (Section 5012)
      The Senate amendment repeals section 319 of the Con Act. 
This section provides a limitation on the number of years a 
borrower is eligible to receive guaranteed assistance on 
operating loans. (Section 5103)
      The Conference substitute adopts the Senate provision 
with amendment. The amendment extends the waiver on guaranteed 
operating loan term limits through December 31, 2010. (Section 
5103)

(11) Beginning farmer and rancher individual development accounts

      The Senate amendment amends the Con Act by adding an 
after section that establishes the New Farmer Individual 
Development Account Pilot Program (IDA). Its purpose is to 
match the savings of beginning farmers or ranchers to help them 
establish a pattern of savings and build assets which will help 
their long term farm viability.
      The terms demonstration program, eligible participant, 
individual development account, qualified entity are defined. 
Subsection (a) creates definitions that will be used throughout 
this section.
      The Secretary is authorized to establish a pilot program 
to be administered by the FSA in at least 15 states. Each 
qualified entity that receives a grant under the pilot program 
must provide a 25 percent non-Federal match of the grant 
awarded. An eligible participant will enter into a contract 
with a qualified entity that requires: a monthly deposit into a 
personal savings by the eligible participant; an agreement on 
the eligible expenditure for which the savings will be used 
when the contract is completed; and an agreed-upon match of not 
more than 3 to 1 for every dollar saved by the eligible 
participant provided by the eligible entity. An eligible 
participant cannot receive more than $9,000 in matching funds 
for each fiscal year of the contract.
      The Senate amendment establishes an application process 
in which eligible entities receive a grant to administer the 
IDA program. When considering applications for the program, the 
Secretary is to give preference to qualified entities that have 
a track record of serving eligible participants and expertise 
in dealing with financial management aspects of farming. The 
maximum grant a qualified entity may receive is $300,000 to 
carry out the IDA program.
      Qualified entities that receive a grant must submit, to 
the Secretary, an annual report that includes the following: an 
evaluation of the demonstration project's progress; the amounts 
in the reserve fund; the amounts deposited in each IDA; the 
amounts withdrawn from the IDA and the purpose for which the 
money was withdrawn; and information about the demonstration 
program and participants.
      The Secretary is authorized to promulgate regulations 
that ensure the termination of pilot program and control of the 
reserve fund in case of early termination of a demonstration 
program.
      An appropriation of $10,000,000 is authorized for each 
fiscal year 2008 through 2012. The Secretary is prohibited from 
using more than 10 percent of the funds made available to 
administer the program and provide technical assistance to 
qualified entities. (Section 5201)
      The House bill has no comparable provisions.
      The Conference substitute adopts the Senate provision 
with amendment.
      The amendment increases the non-Federal match of the 
grant amount from 25 percent to 50 percent. Federal grant money 
used for administrative costs is limited to 10 percent. The 
amendment caps the savings match a qualified entity may provide 
under the program at not more than 200 percent of the 
participant's savings. Furthermore, the amendment reduces the 
maximum federal grant amount to $250,000. (Section 5301)
      The Managers are aware that farmers over the age of 65 
outnumber those below the age of 35 by more than 2 to 1. Access 
to credit and land are two of the largest problems facing 
beginning farmers or ranchers today. The increased cost of 
farmland, equipment, and other farm inputs have created a 
significant barrier to farm entry. To ensure the future 
viability of U.S. farming, the Managers are aware of the need 
to develop public policies that address the unique challenges 
beginning farmers and ranchers face. The New Farmer Individual 
Development Accounts Pilot Program (IDA) is designed to help 
those with modest means save and build assets and enter the 
financial mainstream. This pilot program would assist beginning 
farmers or ranchers by using matched savings accounts, the 
proceeds of which may be used toward capital expenditures for a 
farm or ranch operation, including expenses associated with the 
purchase of farmland, buildings, equipment, livestock, 
infrastructure, or the acquisition of training. The Managers 
intend that the IDA established by a qualified entity for an 
eligible participant will be separate from the personal savings 
of the eligible participant. The IDA account and funding shall 
be controlled by the qualified entity. Upon completion of an 
IDA contract by an eligible participant, the qualified entity 
shall supply funds from the IDA account directly toward the 
eligible purchase on behalf of the eligible participant.
      It is the Managers' intent that eligible participants 
must also complete financial training established by the 
qualified entity establishing the IDA for the participant. Such 
training may involve education and technical assistance related 
to budgeting, business planning, recordkeeping, banking, farm 
credit management, cash flow management, market development, 
equity investment, land access and land tenure options, and 
other similar financial training needs. It is the intent of the 
Managers that eligible entities may create their own financial 
management training programs or utilize curricula and training 
events of other organizations, businesses, and institutions. 
The Managers encourage FSA to coordinate with eligible entities 
who may want to make use of the borrower financial and farm 
management training programs established under Section 359 of 
the Con Act as part of their financial management training 
offering. The Managers believe when considering applications to 
carry out eligible demonstrations the term `new farming 
opportunities' used in the application criteria means either 
starting a farm or converting to other production.

(12) Inventory sales preferences

      The House bill amends section 335(c) of the Con Act by 
restoring the first priority given to socially disadvantaged 
farmers or ranchers whenever the Secretary sells or leases 
property. The Secretary is required to ensure that socially 
disadvantaged farmers or ranchers are included in the process 
whenever property is sold or leased. (Section 5021)
      The Senate amendment amends section 335(c) of the Con Act 
by making socially disadvantaged farmers or ranchers eligible 
for inventory property in the first 135 days the Secretary is 
able to sell the inventory property. If one or more eligible 
socially disadvantaged or beginning farmers offer to purchase 
the same property in the first 135 days, the buyer is to be 
chosen randomly. (Section 5202)
      The Conference substitute adopts the Senate provision. 
(Section 5302)

(13) Loan authorization levels

      In section 346(b)(1) of the Con Act the Senate Amendment 
increases the loan authorization for FSA loan programs to 
$4,226,000,000.
      Section 346(b)(2)(A) increases the loan authorization for 
direct loans to $1,200,000,000. The authorization for the 
direct farm ownership loan program is increased to 
$350,000,000, and the authorization for the direct operating 
loan program is increased to $850,000,000. (Section 5204)
      The House bill has no comparable provisions.
      The Conference substitute adopts the Senate provision. 
(Section 5303)

(14) Loan fund set-asides

      The House bill amends section 346(b)(2)(A)(i)(I) of the 
Con Act by increasing the amount of direct farm ownership loans 
that the Secretary is to reserve for beginning farmers or 
ranchers to 75 percent. Of the funds reserved for beginning 
farmers or ranchers in the direct farm ownership program, 66 
percent of those funds are reserved for the down payment loan 
program and joint financing arrangements.
      Section 346(b)(2)(A)(ii)(III) of the Con Act is amended 
by increasing the amount of direct operating loans the 
Secretary is to make available to beginning farmers or ranchers 
to 50 percent.
      Section 346(b)(2)(B)(i) of the Con Act is amended by 
increasing the amount of guaranteed farm ownership loans that 
the Secretary is to reserve for beginning farmers or ranchers 
to 40 percent. (Section 5022)
      The Senate amendment is the same as the House provision. 
(Section 5204)
      The Conference substitute adopts the Senate provision. 
(Section 5302)

(15) Transition to private commercial or other sources of credit

      The House bill amends section 344 of the Con Act by 
requiring the Secretary, when making or insuring a real estate 
or operating loan, to establish regulations that have as their 
goal transitioning borrowers to other sources of credit, 
including private commercial credit, in the shortest 
practicable period of time. (Section 5023)
      The Senate amendment is the same as House provision.
      The Conference substitute adopts the House provision. 
(Section 5304)

(16) Interest rate reduction program

      The Senate amendment amends section 351(a) of the Con Act 
by clarifying that interest assistance is to be available for 
new guaranteed operating loans or restructured guaranteed 
operating loans. (Section 5205)
      The House bill has no comparable provisions.
      The Conference substitute deletes the Senate provision.
      The Managers are aware that the Secretary has amended 
regulations under the guaranteed loan program to limit the 
availability of interest rate reduction authorized under 
section 351 of the Con Act to new guaranteed operating loans. 
The Managers believe that non-statutory limitations in the 
program's regulations will deter the immediate availability of 
funds that may be appropriated in the future for interest rate 
reductions for other categories of guaranteed loans. It is the 
Managers' expectation that the regulations and policies for the 
guaranteed loan program should clarify that interest rate 
reduction may be available for all new and restructured 
guaranteed loans.

(17) Extension of the right of first refusal to reacquire homestead 
        property to immediate family member of borrower-owner

      The House bill amends section 352(c)(4)(B) of the Con Act 
by extending, in the case of a socially disadvantaged farmer or 
rancher, the right of first refusal to reacquire a homestead 
property to members of the immediate family of the borrower.
      It allows, in the case of a socially disadvantaged farmer 
or rancher, for an independent appraisal of the property by an 
appraiser selected by the immediate family member of the 
borrower. (Section 5024)
      The Senate amendment has no comparable provisions.
      The Conference substitute adopts the House provision. 
(Section 5305)

(18) Deferral of shared appreciation recapture amortization

      The Senate amendment amends section 353(e)(7)(D) of the 
Con Act by clarifying that deferral is an available servicing 
tool and limits any deferral to 1 year. (Section 5206)
      The House bill has no comparable provisions.
      The Conference substitute deletes the Senate provision.
      The Managers are aware that under subsection (e)(7)(D) of 
section 353 of the Con Act, the Secretary has permitted 
borrowers to seek only re-amortization of amortized Shared 
Appreciation recapture payments despite the reference in that 
section to all ``loan service tools under section 343(b)(3) [7 
USC 1991(b)(3)].'' It is the Managers' expectation that the 
Secretary will amend program regulations and policies to 
clarify that the full range of loan service tools set out in 
subsection (b)(3) of section 343 of the Con Act is available 
for modification of amortized Shared Appreciation recapture 
payments.

(19) Rural development and farm loan program activities

      The House bill amends Subtitle D of the Con Act by 
prohibiting the Secretary from completing a study or entering 
into a contract with any private party to carry out, without a 
specific authorization in an Act of Congress, a competitive 
source activity of the Secretary, including USDA support 
personnel, relating to rural development or farm loan programs. 
(Section 5025)
      The Senate amendment amends the Con Act by adding a new 
section, 365, that prohibits the Secretary from completing or 
entering into a contract with a private party to carry out 
competitive sourcing activities relating to rural development, 
housing, and farm loan programs at the United States Department 
of Agriculture. (Section 5207)
      The Conference substitute adopts the House provision. 
(Section 5306)
      The managers intend this provision to cover USDA's Rural 
Development mission area, including rural cooperative, 
business, housing, and energy programs.

(20) Technical correction

      The Senate amendment amends section 3.3(b) of the Farm 
Credit Act (FCA) of 1971 by making a technical correction. It 
strikes ``per'' in the first sentence and inserts ``par''. 
(Section 5302)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 5402)

(21) Banks for cooperatives voting stock

      The House bill amends section 3.3(c) of the FCA by 
authorizing the board of a bank for cooperatives to determine 
the terms and conditions for the issuance and transfer of bank 
voting stock to bank for cooperatives customers and other Farm 
Credit System associations.
      A conforming amendment is made to section 4.3A(c)(1)(D) 
of the FCA to add to the list of borrowers eligible to hold 
voting stock under the bylaws of the banks for cooperatives 
persons and entities eligible to borrow from banks for 
cooperatives. (Section 5031)
      The Senate amendment has no comparable provisions.
      The Conference substitute adopts the House provision. 
(Section 5403)

(22) Confirmation of the Farm Credit Administration Chair

      The Senate amendment amends section 5.8(a) of the FCA by 
requiring the advice and consent of the Senate for the 
confirmation of chairman of the Farm Credit Administration. 
(Section 5303)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(23) Rural utility loans

      The House bill amends section 8.0(9) of the FCA to allow 
rural utility loans (loans, or interest in a loan, for electric 
and telephone facilities) to be considered as ``qualified 
loans''. (Section 5032)
      The Senate amendment amends section 8.0(9) of the FCA by 
adding a new subparagraph to allow rural utility loans (loans, 
or interest in a loan, for electric and telephone facilities) 
to be considered as ``qualified loans'' for Federal 
Agricultural Mortgage Corporation financing.
      Section 8.6(a)(1) of the FCA is amended by making 
conforming and technical changes to the standards established 
under section 8.8(a) of the FCA related to agricultural real 
estate loans and rural utility loans.
      Section 8.8(a) of the FCA is amended by authorizing the 
creation of appropriate underwriting, security, and repayment 
standards for agricultural mortgage loans and rural utility 
loans.
      Minimum criteria standards are set for agricultural real-
estate loans focused on individual borrower traits (loan-to-
value ratio, sufficient cash flow, documentation standards, 
appraisal process, actively engaged in farming, speculation in 
real estate, and consideration of real estate tax purposes). 
These standards do not apply to rural utility loans.
      Loan amounts for agricultural production are established. 
The limitation does not apply to rural utilities loans. 
(Section 5306)
      The Conference substitute adopts the Senate provision. 
(Section 5406)

(24) Farm Credit System Insurance Corporation

      The House bill amends section 1.12(b) of the FCA to 
change the method that each Farm Credit System (FCS) bank must 
use to assess associations and other financing institutions to 
cover the costs of making Farm Credit System Insurance 
Corporation (FCSIC) premium payments under Part E of Title V of 
the FCA. FCS banks are required to compute the assessments on 
lenders in an ``equitable manner.''
      Section 5.55(a) of the FCA is amended by mandating that 
the premiums due from System institutions will no longer to be 
collected annually when the aggregate amount in the Farm Credit 
Insurance Fund does not exceed the secure base amount. The 
premium due from any insured System institution is to be based 
on the average outstanding insured debt.
      Section 5.55(b) of the FCA is amended by allowing the 
FCSIC to collect premiums more frequently than annually.
      Section 5.55(c) of the FCA is amended by authorizing FCS 
banks to deduct a percentage of investments guaranteed by the 
Federal government and a percentage of investments guaranteed 
by State governments when calculating the secure base amount.
      Section 5.55(d) of the FCA is amended by authorizing the 
FSCIC to use the principal outstanding on all loans made by an 
insured FCS bank or the amount outstanding on all investments 
made by an insured system bank for purposes of premium 
calculations and secure base amount calculations.
      Section 5.55(e) of the FCA is amended by requiring the 
FCSIC to use year-end numbers in calculating excess funds, with 
respect to the secure base amount. The formula concerning 
payments from the Farm Credit Insurance Fund Allocated 
Insurance Reserve Accounts is simplified.
      Section 5.56(a) of the FCA is amended by authorizing FCS 
banks to file certified statements quarterly.
      Section 5.58(10) of the FCA is amended by clarifying that 
FCSIC has the authority to adopt rules and regulations 
concerning section 1.12(b) of Title I of the FCA, the 
``Authority to Pass Along Cost of Insurance Premiums.'' 
(Section 5033)
      The Senate amendment amends section 1.12 (b) of the FCA 
to allow FCS banks to have flexibility in deciding how to pass 
along insurance premiums to their affiliates. This section 
specifies that premiums are to be computed in an equitable 
manner. (Section 5301)
      The Senate amendment also amends section 5.55(a) of the 
FCA by allowing the total insured debt obligations on which 
premiums are assessed to be subtracted by 90 percent for 
investments guaranteed by the Federal government and 80 percent 
for investments guaranteed by State governments.
      Section 5.55(b) of the FCA is amended by allowing the 
FCSIC to collect premiums more frequently than annually.
      Section 5.55(c) of the FCA is amended by adjusting the 
outstanding insured obligations of all insured System banks by 
excluding an amount equal to the sum of 90 percent of federal 
government guaranteed loans and investments and 80 percent of 
state government-guaranteed loans and investments when 
calculating the ``secure base amount''.
      Section 5.55(d) of the FCA is amended to determine the 
principal outstanding on all loans made by an insured System 
bank, or the amount outstanding on all investments made by an 
insured System bank, for the purpose of premium calculations 
and ``secure base amount'' collections.
      Subsection 5.55(e) of the FCA is amended by allowing the 
Farm Credit System Insurance Fund to use year-end numbers 
rather than the average daily balance when calculating excess 
funds and simplifying the current formula concerning payments 
from the Allocated Insurance Reserve Accounts. (Section 5304)
      Section 5.56(a) of the FCA is amended by allowing System 
banks to collect insurance premiums quarterly rather than 
annually. (Section 5305)
      Section 5.58(10) of the FCA is amended to clarify that 
FCSIC has the authority to adopt rules and regulations 
concerning section 1.12(b) the FCA. (Section 5301)
      The Conference substitute adopts the Senate provision 
with technical amendments. (Sections 5401, 5404, and 5405)

(25) Risk-based capital levels

      The House bill amends section 8.32(a)(1) of the FCA by 
allowing FSCIC to calculate risk-based capital levels for rural 
electric and telephone loans. (Section 5034)
      Section 8.32(a)(1) of the FCA is amended by creating a 
new subparagraph (B) that directs the FCA to establish a risk-
based capital standard for rural utility loans. (Section 5306)
      The Conference substitute adopts the Senate provision. 
(Section 5406)

(26) Farm Credit System equalization

      The Senate amendment amends the FCA by establishing a new 
section, 7.7, which equalizes lending authorities among FCS 
associations in Alabama, Mississippi, and Louisiana.
      The Federal Land Banks or Credit Associations are given 
the ability to make short- and intermediate-term loans, and 
Production Credit Associations are given the ability to make 
long-term loans. The new authorities can only be exercised if 
the board of directors of the association and a majority of 
voting stockholders approve.
      The FCA is authorized to issue charter amendments to 
reflect the new lending authority. (Section 5307)
      The House bill has no comparable provision.
      The Conference substitution adopts the Senate provision. 
(Section 5407)

(27) Emergency loans for equine farmers and ranchers

    The Senate amendment amends section 321(a) of the Con Act 
to allow equine farmers and ranchers to be eligible for FSA 
emergency loans. (Section 5404)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 5201)
      The managers are aware that family farmers and ranchers 
who breed and raise horses are eligible for the FSA's emergency 
loan program. In order to be eligible for a loan under this 
section, the farmer or rancher must meet all of the relevant 
requirements of the Con Act, including the credit elsewhere 
test. The farmer or rancher must also be primarily engaged in 
the operation and must not have an operation larger than a 
family farm. Horse owners who use horses for racing, showing, 
recreation, or pleasure are not eligible for the emergency loan 
program. Further, the regulation that implements a specifically 
authorized equine disaster assistance program is not applicable 
to the change made by this provision.

(28) Operating loan assistance for commercial fisherman

      The Senate amendment amends section 343(a)(1) of the Con 
Act by amending the definition of farmer and farming to include 
commercial fishing for the purposes of operating loans.
      Section 343 of the Con Act is amended by adding a new 
subsection, (c) that defines farm to include a commercial 
fishing enterprise; the owner or operator of which is unable to 
obtain credit from a bank or other lender, as determined by the 
Secretary. (Section 6020)
      The House bill has no comparable provision.
      The conference substitute deletes the Senate provision.

                      TITLE VI--RURAL DEVELOPMENT


(1) Definition of rural

      The House bill directs the Secretary to prepare and 
submit a report to the House and Senate Agriculture Committees 
that: (a) assesses the varying definitions of rural used by the 
U.S. Department of Agriculture (USDA); (b) describes what 
effect those varying definitions have on USDA programs; and (c) 
makes recommendations on ways to better target the funds 
provided through rural development programs. (Section 6001)
      The Senate amendment amends section 343(a)(13) of the 
Consolidated Farm and Rural Development Act (Con Act) to 
provide a standard definition for ``rural'' and ``rural area to 
exclude: (1) cities of 50,000 or more; (2) any urbanized area 
contiguous and adjacent to a city of 50,000 or more, except for 
narrow strips of urbanized areas; and (3) any collection of 
contiguous census blocks with a housing density of 200 housing 
units per square mile that is adjacent to a city of 50,000 or 
adjacent to an urbanized area, except for narrow strips of such 
territory. An exception to this definition is provided for 
Honolulu and Puerto Rico where cities and counties are 
coterminous. An applicant may appeal the determination of the 
Secretary with regard to the housing density factor.
      The Senate amendment retains the rural area eligibility 
in current law for the water and waste disposal loans and 
grants program, as a city, town, or unincorporated area that 
has a population of no more than 10,000 inhabitants. For 
purposes of determining eligibility for Community Facility 
loans, the Senate amendment applies the standard definition's 
housing density requirement, thereby making the definition of 
rural for the purposes of eligibility for such loans any area 
that meets the standard definition's criteria and is less than 
20,000 in population.
      The Undersecretary for Rural Development may designate a 
place to be of rural character and include in that designation 
any cluster of census blocks that would otherwise be considered 
not in a rural area only because the cluster is adjacent to not 
more that 2 census blocks that are otherwise considered not in 
a rural area.
    The Secretary is required to submit a report, once every 2 
years, to the House and Senate Agriculture committees on the 
various definitions of ``rural'' and ``rural area'' that are 
used with respect to USDA programs, the effects the definitions 
have on those programs, and recommendations on how to better 
target funds provided through rural development programs.
      The Senate amendment makes changes to other definitions. 
``Sustainable agriculture'' is defined as a system of plant and 
animal production that will satisfy human food and fiber needs, 
enhance environmental quality and the natural resources, make 
efficient use of nonrenewable resources and integrate 
biological cycles and controls, sustain the viability of the 
farming operation, and enhance the quality of life for farmers 
and society. ``Technical assistance'' is defined as managerial, 
financial, operational, and scientific analysis and 
consultation. The definition of ``farmer'' and ``farming'' is 
amended to include commercial fishermen, and for the purpose of 
the Farm Service Agency operating loan program the definition 
of ``farm'' is amended to include a commercial fishing 
enterprise in which the owner or operator is unable to obtain 
commercial credit from a bank or other lender. (Section 6020)
      The Conference substitute adopts the Senate amendment 
with several modifications. The housing density criterion in 
the Senate amendment is struck from the standard definition of 
``rural'' and ``rural area'' and from Community Facilities 
Program eligibility. However, USDA is directed to conduct a 
rulemaking to develop additional restrictions on areas that 
consist of any collection of contiguous census blocks with a 
housing density of 200 housing units per square mile that is 
adjacent to a city of 50,000 or adjacent to an urbanized area. 
The exception for the standard definition of ``rural area'' for 
Honolulu and Puerto Rico is retained, as is the eligibility of 
isolated census blocks that would otherwise be considered non-
rural simply because they are connected by not more that 2 
census blocks to an urbanized area.
      The eligibility for water and waste disposal loans and 
grants program and the community facility program are unchanged 
from current law.
      To address urbanized area mapping complications, the 
Undersecretary for Rural Development is provided with the 
authority to determine a place to be of rural character if: (1) 
it is located in an urbanized area with localities at least 40 
miles apart and not located next to a city of more than 150,000 
people; or (2) is within one-quarter mile of a rural/non-rural 
boundary. This authority may not be delegated and must be done 
in consultation with State rural development directors and 
Governors. The consideration of a petition for such a 
determination must be made public and is subject to appeal. A 
report must be submitted to the Congress annually on the use of 
this authority.
    The Conference substitute adopts the Senate provision 
requiring a report, once every 2 years, on the definitions of 
``rural'' and ``rural area'' that are used with respect to USDA 
programs, the effects the definitions on those programs, and 
recommendations on how to better target funds provided through 
rural development programs.
      The Conference substitute strikes the definitions of 
technical assistance, sustainable agriculture, and the 
modifications made to ``farmer'' and ``farming''. (Section 
6018)
      The Managers have authorized the Secretary of Agriculture 
to make areas of the Commonwealth of Puerto Rico and the County 
of Honolulu, Hawaii eligible for Rural Development programs 
because the unique governmental structure of those entities 
prevents Census Bureau maps from adequately capturing the 
demographics of these island areas. The Managers do not expect 
the Secretary to provide access to rural development programs 
to areas that are urban or do not meet other requirements of 
the applicable programs, but do expect the Secretary to 
recognize areas that meet the intent and spirit of the law.

(2) Water, waste disposal and wastewater facility grants

      The House bill extends the authorization for 
appropriations in section 306(a)(2)(A) of the Con Act through 
2012. (Section 6002)
      The Senate amendment is the same as the House bill. 
(Section 6001)
      The Conference substitute adopts the House provision. 
(Section 6001)

(3) Rural business opportunity grants

      The House bill extends the authorization of 
appropriations for 306(a)(11)(a) of the Con Act through 2012. 
(Section 6003)
      The Senate amendment is the same as the House bill. 
(Section 6002)
      The Conference substitute adopts the Senate provision. 
(Section 6003)

(4) Rural water and wastewater circuit rider program

    The House bill amends section 306(a)(22)(A) of the Con Act 
by increasing the authorization of appropriations for the rural 
water and wastewater circuit rider program to $25,000,000 for 
each of the fiscal years 2008 through 2012. (Section 6004)
      The Senate amendment increases the authorization to 
$20,000,000. (Section 6004)
      The Conference substitute adopts the House provision. 
(Section 6006)

(5) Tribal college and university essential community facilities

      The House bill amends section 306(a)(25)(B) of the Con 
Act by prohibiting the Secretary from requiring non-Federal 
financial support in an amount that is greater than 5 percent 
of the total cost of developing essential community facilities 
at tribal colleges and universities. The authorization is 
extended to 2012. (Section 6005)
      The Senate amendment provides that the maximum Federal 
grant tribal colleges and universities may receive for the cost 
of developing essential community facilities in rural areas is 
95 percent. The authorization is extended through 2012. 
(Section 6007)
      The Conference substitute adopts the House provision. 
(Section 6007)

(6) Child day care facility grants, loans, and loan guarantees

      The Senate amendment amends section 306(a)(19) of the Con 
Act (the community facilities program) by providing $40,000,000 
in mandatory funding, to remain available until expended, 
starting in 2008. The Secretary is authorized to make 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. The mandatory funding provided under this 
section is to be in addition to any other funds and authorities 
relating to development and construction of rural day care 
facilities. (Section 6003)
      The House contains no comparable provision.
      The Conference substitute provides that the program will 
not receive mandatory funding, but the current set-aside for 
this purpose in the community facility program will be extended 
from April 1 to June 1. (Section 6004)

(7) Community facility loans and grants for freely associated States 
        and outlying areas

      The Senate amendment reserves 0.5 percent of community 
facility loans and grants for freely associated States and 
outlying areas. If, after 180 days within a fiscal year, an 
insufficient number of applications have been received to 
account for 0.5 percent then the unused funds are to be 
reallocated to make loans and grants to otherwise eligible 
entities located in the States. (Section 6008)
      The House contains no comparable provision.
      The Conference substitute deletes the Senate provision.
    The Managers note the higher infrastructure costs faced by 
those in the freely associated States and outlying areas of the 
United States due to the very considerable distances involved 
in transporting building materials and equipment necessary for 
infrastructure projects to these areas. In addition, severe 
storms that are common to these areas cause repeated damage to 
infrastructure. USDA resources from the community facilities 
program and from the Rural Utilities Service programs can be of 
tremendous help in alleviating these serious problems. The 
Managers expect the Secretary to fully take into account the 
higher costs that are involved in infrastructure projects in 
this region and to provide assistance to allow improvements to 
infrastructure that will be resilient to storms and less likely 
to be damaged by them even though those costs of construction 
are higher.

(8) Priority for community facility loan and grant projects with high 
        non-Federal share

      The Senate amendment provides that priority will be given 
to community facility projects with non-Federal funding that is 
substantially greater than the minimum requirement. (Section 
6009)
      The House contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(9) Emergency and Imminent Community Water Assistance Grant Program

    The House bill is the same as section 306A of the Con Act, 
which authorizes the Secretary to provide grants to assist 
residents in rural areas and small communities comply with the 
Water Pollution Control Act or the Safe Drinking Water Act. The 
authorization of appropriations remains the same and is 
extended through 2012. (Section 6006)
      The Senate amendment provides the same as the House bill. 
(Section 6011)
      The Conference substitute adopts the House provision. 
(Section 6008)

(10) Water systems for rural and native villages in Alaska

      The House bill amends section 306D(d)(1)(a) of the Con 
Act by extending the authorization of appropriations through 
2012. (Section 6007)
      The Senate amendment provides that the Denali Commission 
may be eligible for grants to improve solid waste disposal 
sites that are contaminating or threatening to contaminate 
rural drinking water in the State of Alaska. The program is 
extended through 2013. (Section 6012)
      The Conference substitute includes the House provision, 
with an amendment to provide a $1,500,000 authorization for 
each of the fiscal years 2008 through 2012 under the Solid 
Waste Disposal Act for the Denali Commission to provide 
assistance to municipalities in Alaska. (Section 6009)

(11) Grants to finance water well systems in rural areas

      The House bill provides for an extension of the 
authorization of the program through 2012 and provides that the 
level of matching funds is not to be taken into account when 
determining priority in awarding grants. The payment by a grant 
recipient of audit fees, business insurance, salary, wages, 
employee benefits, printing costs, and legal fees associated 
with the purpose of the grant program is to be considered as 
the providing of matching funds by the grant recipient. 
(Section 6008)
      The Senate amendment extends the program through 2012. 
(Section 6013)
      The Conference substitute adopts the House provision with 
a modification to strike the change with respect to 
consideration of the matching fund levels, and to increase the 
limitation on the amount that can be expended on each well from 
$8,000 to $11,000. (Section 6010)

(12) Grants to develop wells in isolated areas

      The Senate amendment amends section 306F of the Con Act 
by authorizing $10,000,000 for a new program for each of the 
fiscal years 2008 through 2012. The new program allows the 
Secretary to make grants to nonprofit organizations to develop 
and construct household, shared, and community wells in 
isolated areas when a traditional water system is not practical 
due to distance, geography and limited number of households 
present. Priority is given to applicants that have experience 
in developing similar types of wells in rural areas. As a 
condition of receipt of a grant, the water from the well is to 
be tested annually for quality and the results made available 
to well users and the appropriate State agency. The grant 
amount is limited to an amount not to exceed the lesser of 
$50,000 and the amount that is 75 percent of the costs of a 
single well and associated system. Grants are prohibited in 
areas where a majority of users' household incomes exceed the 
nonmetropolitan median household income. (Section 6013)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(13) Rural cooperative development grants

      The House bill amends section 310B(e)(5) of the Con Act 
by authorizing the Secretary to give preference to grant 
applications that--
            (A) demonstrate a proven track record in 
        administering activities to promote and assist in the 
        development of cooperatively and mutually owned 
        businesses;
            (B) demonstrate previous expertise in providing 
        technical assistance in rural areas to promote and 
        assist in the development of cooperatively and mutually 
        owned businesses;
            (C) demonstrate the ability to assist in the 
        retention of businesses, facilitate the establishment 
        of cooperative and new cooperative approaches, and 
        generate employment opportunities that will improve the 
        economic conditions in rural areas;
            (D) commit to providing technical assistance and 
        other services to underserved and economically 
        distressed areas in rural areas of the U.S.;
            (E) demonstrate a commitment to--
                    (i) networking with and sharing the results 
                of its efforts with other cooperative 
                development centers and other organizations 
                involved in rural economic development efforts; 
                and
                    (ii) developing multi-organization and 
                multi-State approaches to address the 
                cooperative and economic development needs of 
                rural areas; and
            (F) commit to provide a 25-percent matching 
        contribution with private funds and in-kind 
        contributions, except that the Secretary is prohibited 
        from requiring non-Federal financial support in an 
        amount that is greater than 5 percent in the case of a 
        1994 institution.
      The Secretary is authorized to award 1-year grants to 
centers that have not received prior funding and evaluate 
programs that receive grant funding. The Secretary is given the 
discretion to award grants for a period of more than 1 year, 
but not more than 3 years, to programs that the Secretary 
determines are meeting the criteria of the program. The 
Secretary is also given the discretion to extend for only 1 
additional 12-month period the period in which a grantee may 
use a grant made under this section. The Secretary is 
authorized to enter into a cooperative research agreement with 
one or more qualified academic institutions for the purpose of 
conducting research on the national economic effects of all 
types of cooperatives.
      The Secretary is authorized to reserve 20 percent of 
appropriated funds for grants for cooperative development 
centers, individual cooperatives, or groups of cooperatives 
serving socially disadvantaged communities when the 
appropriated funds for a fiscal year exceed $7,500,000. If the 
Secretary determines the number of applications received for 
this purpose is insufficient, the Secretary is authorized to 
use the funds for the purposes outlined in this section.
      The current law authorization is retained and extended 
through 2012. (Section 6009)
      The Senate amendment is the same as the House bill except 
that it requires the Secretary to award multi-year grants to 
programs that the Secretary determines meet the parameters of 
the program and provides a definition for the term socially 
disadvantaged. (Section 6015)
      The Conference substitute adopts the Senate provision 
with minor changes. (Section 6013)

(14) Criteria to be applied in providing loans and loan guarantees 
        under the business and industry loan program

      The House bill amends section 310B(g) of the Con Act by 
authorizing the Secretary, in providing loans and loan 
guarantees under the Business and Industry Loan Program, to 
consider applications more favorably--when compared to other 
applications--when the project described in the application 
supports community development and farm and ranch income by 
marketing, distributing, storing, aggregating, or processing 
locally or regionally produced agricultural product.
      A ``locally or regionally produced product'' is defined 
to mean an agricultural product: (1) which is produced and 
distributed in the locality or region where the finished 
product is marketed; (2) which has been shipped a total of 
distance of 400 or fewer miles, as determined by the Secretary; 
and (3) about which the distributor has conveyed to the end-use 
consumers information regarding the origin of the product or 
production practices, or other valuable information. (Section 
6010)
      The Senate amendment authorizes the Secretary to make 
loans and loan guarantees to individuals, cooperatives, 
businesses, and other entities to establish and facilitate 
enterprises that process, distribute, aggregate, store, and 
market locally-produced agricultural food products.
      The term ``locally-produced agricultural food product'' 
is to mean an agricultural product that is raised, produced, 
and distributed within the locality or region and that is 
transported less than 300 miles from the origin of the 
agricultural product or the State in which the agricultural 
product is produced.
      The term ``underserved community'' is to mean an urban, 
rural, or 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 
diet-related disease as compared to the national average, 
including obesity; and (ii) a high rate of food insecurity or a 
high poverty rate.
      The priorities for awarding loans and loan guarantees 
under this program are for projects that support community 
development and farm and ranch income by marketing, 
distributing, storing, aggregating, or processing a locally 
produced agricultural product; or for projects that have 
components benefiting underserved communities, as defined in 
this section.
      The recipients of loans and loan guarantees may use up to 
$250,000 in loan or loan guarantee funds per retail or 
institutional facility to modify and update facilities to 
accommodate locally-produced agricultural food products and to 
provide outreach to consumers about the sale of locally-
produced agricultural food products.
      The Secretary is required to submit an annual report to 
the House and Senate Agriculture Committees that describes the 
projects carried out using loans and loan guarantees provided 
under this program. The report is to include the 
characteristics of the communities served and benefits of the 
projects. (Section 6017)
      The Conference substitute adopts the Senate provision 
with modifications. The distance for which a product can travel 
and still be considered for the program is extended to 400 
miles. ``Underserved community'' is defined as an urban, rural, 
or Indian tribal community that has, as determined by the 
Secretary: (i) limited access to affordable, healthy foods, 
including fresh fruits and vegetables, in grocery retail stores 
or farmer-to-consumer direct markets; and (ii) a high rate of 
food insecurity or a high poverty rate. Priority for the 
program is given to entities proposing to provide product to 
underserved communities.
      The Conference substitute does not include the Senate 
provision allowing recipients to redistribute loan or loan 
guarantee proceeds to retail or institutional facilities. 
However, the Managers expect recipients of business and 
industry loans and loan guarantees under this section to 
include applicants who propose to work with retail 
establishments in underserved communities to supply items to 
promote and ensure the salability of the locally-produced 
agricultural food product. (Section 6015)
      The Managers expect the Administrator of the Rural 
Business Cooperative Service to work in coordination with the 
Administrator of the Agricultural Marketing Service on 
implementation of this program.
      The Managers are aware of the increased demand for 
locally and regionally produced foods. Although demand exists 
for locally and regionally produced foods, producers in many 
parts of the country have difficulties finding markets and 
processing facilities as well as and establishing distribution 
channels. In many instances, retail outlets are not interested 
in buying from smaller volume producers because they cannot 
provide sufficient and consistent supply of food products. The 
Managers expect this section to help bridge the gap between the 
production of locally and regionally produced agricultural food 
products and the processing and distribution of those products. 
A distributor could work with several farmers in an area and 
build the necessary relationships with small, medium or large 
retail outlets, schools, hospitals or other institutions to 
provide a marketing channel for locally and regionally produced 
foods.

(15) Cooperative equity security guarantee

      The Senate amendment amends section 310B of the Con Act 
to allow Business and Industry guarantees for loans made for 
the purchase of preferred stock or similar equity issued by a 
cooperative organization or a fund that invests primarily in 
cooperative organizations. (Section 6014)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with technical changes. (Section 6012)

(16) Appropriate technology transfer for rural areas

      The House bill provides for the establishment of a 
national technology transfer program for rural areas to assist 
agricultural producers that are seeking information to help 
them: (1) reduce their input costs; (2) conserve their energy 
costs; (3) diversify their operations through new energy crops 
and energy generation facilities; and (4) expand markets for 
their agricultural commodities through the use of sustainable 
farming practices. The Secretary is authorized to carry out the 
program by making a grant or entering into a cooperative 
agreement with a national non-profit agricultural assistance 
organization. A grant or cooperative agreement entered into is 
to provide 100 percent of the cost of providing information. 
The program is authorized at $5,000,000. (Section 6011)
      The Senate amendment is substantially similar to the 
House bill. (Section 6018)
      The Conference substitute adopts the Senate provision 
with minor changes to elaborate on the purpose of the program. 
(Section 6016)

(17) Grants to improve technical infrastructure and improve quality of 
        rural health care facilities

      The House bill authorizes a grant program for rural 
health facilities to assist such facilities in: purchasing 
health information technology to improve quality health care 
and patient safety or, improving health care quality and 
patient safety, including the development of: a) quality 
improvement support structures to assist rural health systems 
and professionals; and (b) innovative approaches to financing 
and delivery of health services to achieve rural health quality 
goals. (Section 6012)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.

(18) Rural hospital loans and loan guarantees

      The Senate amendment provides $50,000,000 in mandatory 
funding in fiscal year 2008, to remain available until 
expended, for loans and loan guarantees for rehabilitating and 
improving hospitals with not more than 100 acute beds in rural 
areas. Not less than $25,000,000 is to be allocated to 
hospitals with fewer than 50 beds. (Section 6006)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(19) Rural Entrepreneur and Microloan Assistance Program

      The House bill provides for the establishment of a rural 
entrepreneurship and microenterprise grant and loan program, 
authorized for $20,000,000 per year for each of the fiscal 
years 2008 through 2012. Grants may be made to qualified 
organizations to: (i) provide training, operations support, or 
rural capacity-building services to qualified organizations to 
assist them in developing microenterprise training, technical 
assistance, market development assistance, and other related 
services; (ii) assist in researching and developing best 
practices in delivering training, technical assistance, and 
microcredit to rural entrepreneurs; and (iii) carry out other 
projects that the Secretary deems to be consistent with the 
purposes of the program. As a condition of receiving a grant, 
the qualified organization is required to match not less than 
25 percent of the total amount of the grant. In addition to 
cash from non-Federal sources, the matching share may include 
indirect costs or in-kind contributions funded under non-
Federal programs.
      A rural microloan program is established to: (i) make 
loans to qualified organizations for the purpose of making 
short-term, fixed interest rate microloans to startup, newly 
established, and growing rural microbusiness concerns; and (ii) 
in conjunction with the loans, provide grants for the purpose 
of providing intensive marketing, management, and technical 
assistance to small businesses. The term of the loan is to be 
20 years and the loan is to bear an annual interest rate of at 
least 1 percent. The Secretary has the discretion to defer 
payments, both principal and interest, for 2 years beginning on 
the date the loan is made. The amount of a grant given in 
connection with the loan program is not to be more than 25 
percent of the total outstanding balance of the loan the 
organization received and, as a condition of receiving a grant, 
the qualified organization is required to match not less than 
15 percent of the total amount of the grant.
      No more than 10 percent of the assistance received by a 
qualified organization is to be used to pay administrative 
expenses. An organization that receives either a rural 
entrepreneurship and microenterprise grant or a rural microloan 
has to provide the Secretary any information that the Secretary 
requires to ensure that the grant or loan is being used for its 
intended purposes. (Section 6013)
      The Senate amendment amends Subtitle D of the Con Act by 
authorizing the Secretary to establish a Rural Microenterprise 
Program to provide low- or moderate- income individuals with 
the skills necessary to establish a new rural microenterprise 
and to continue technical and financial assistance to rural 
microenterprises. The Senate and House sections are 
substantially similar; however, the Senate section requires the 
Secretary to ensure that grant recipients include 
microenterprise development organizations of varying sizes and 
that serve racially and ethnically diverse populations.
      Mandatory funding of $40,000,000, to remain available 
until expended, is provided starting in fiscal year 2008. Not 
less than $25,000,000 of the funds provided are to be used to 
carry out grants for the Rural Microenterprise Program. Not 
less than $15,000,000 of the funds provided are to be used to 
carry out the Rural Microloan Program; of that amount, not more 
than $7,000,000 is to be used to support direct loans. In 
addition to mandatory funding, an authorization of 
appropriations is provided for each of fiscal years 2009 
through 2012 to carry out this program. (Section 6022)
      The Conference substitute adopts the House provision with 
modifications. The Conference substitute strikes as an eligible 
use of program funding research and development of best 
practices in delivering training, technical assistance and 
microcredit to rural microenterprises. Additionally, the 
Conference substitute provides $15,000,000 in mandatory 
funding, to remain available until expended, in the following 
years: fiscal year 2009 ($4,000,000); fiscal year 2010 
($4,000,000); fiscal year 2011 ($4,000,000); and fiscal year 
2012 ($3,000,000). (Section 6022)
      The Managers intend that the Microentrepreneur Assistance 
Program will be used to assist microenterprises located in 
rural areas. However, a microenterprise development 
organization receiving assistance under the program need not be 
located in a rural area to be eligible to participate. A 
microenterprise development organization is eligible so long as 
the organization provides assistance to microentrepreneurs 
located in rural areas, facilitates access to capital for a 
microenterprise in a rural area, or has a demonstrated record 
of delivering services to microentrepreneurs located in a rural 
area.
      In addition, in making grants available to 
microenterprise development organizations to support 
microenterprise development, the Managers intend that the 
Secretary shall not require an organization to have received a 
loan in order to receive a grant under subsection (b)(4)(a).

(20) Criteria to be applied in considering applications for rural 
        development projects.

      The House bill amends subtitle D of the Con Act by 
authorizing the Secretary to review the income demographics, 
population density, and seasonal population increases, and 
other factors as determined by the Secretary, for eligible 
communities that submit applications for rural development 
programs authorized or modified by title VI of the 2007 Farm 
Bill, or section 306, 306A, 306C, 306D, 306E, 310(c), 310(e), 
310B(b), 310B(c), 310B(e), or 370B, or subtitles F, G, H, or I, 
of the Con Act.
      The Secretary is authorized to issue regulations to 
establish the limitation that a rural area cannot exceed in 
order to remain eligible for rural development funds. (Section 
6014)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.

(21) National sheep industry improvement center

      The House bill provides for the continuation of the 
National Sheep Industry revolving fund to promote strategic 
development activities and collaborative efforts to strengthen 
and enhance the production and marketing of sheep or goat 
products in the United States; by optimizing the use of 
available human capital and resources within the sheep and goat 
industries, and adopting flexible and innovative approaches to 
solving the long-term needs of the U.S. sheep or goat industry.
      The House bill eliminates the requirement that the 
National Sheep Industry Improvement Center be required to 
privatize its revolving fund and authorizes appropriations of 
$10,000,000 for each of the fiscal years 2008 through 2012. 
(Section 6015)
      The Senate amendment renames the program as the National 
Sheep and Goat Industry Improvement Center. The Senate 
amendment also eliminates the requirement that the National 
Sheep Industry Improvement Center be required to privatize its 
revolving fund. The Senate amendment provides for new mandatory 
funding of $1,000,000 for fiscal year 2008, to be available 
until expended, and authorizes $10,000,000 for each of the 
fiscal years 2008 through 2012 for infrastructure development, 
business planning, production, resource development and market 
and environmental research. (Section 11009)
      The Conference substitute adopts the Senate provision 
with modifications. It retains the existing name of the Center 
and provides $1,000,000 in mandatory funds for the Center. 
(Section 11009 of the Livestock Title)

(22) National rural development partnership

      The House bill extends authorization through 2012. 
(Section 6016)
      The Senate amendment extends the authorization to 2012 
and amends subsection (h) of section 378 of the Con Act by 
establishing the termination date for this authority as 
September 30, 2012. (Section 6024)
      The Conference substitute adopts the House provision. 
(Section 6019)

(23) Historic barn preservation

      The House bill amends section 379A(c) of the Con Act by 
extending the authorization for this program through 2012 and 
providing that the Secretary, in making grants, is to give the 
highest priority to funding projects that identify, document, 
and conduct research on historic barns and that develop and 
evaluate appropriate techniques or best practices for 
protecting historic barns. (Section 6017)
      The Senate amendment establishes that a grant may be made 
to an eligible applicant for ``eligible projects'' that 
rehabilitate or repair historic barns; preserve historic barns; 
and identify, document, survey, and conduct research on 
historic barns or farm structures and that evaluate techniques 
or best practices for protecting these structures. (Section 
6025)
      The Conference substitute adopts the House provision with 
technical changes. (Section 6020)

(24) NOAA weather transmitters

      The House bill is the same as section 379B of the Con 
Act. The authorization remains the same and is extended through 
2012. (Section 6018)
      The Senate amendment is identical to the House bill. 
(Section 6026)
      The Conference substitute adopts the House provision. 
(Section 6021)

(25) Delta Regional Authority

      The House bill provides for the extension of the Delta 
Regional Authority (DRA) to 2012. (Section 6019)
      The Senate amendment provides for the extension of the 
(DRA) and also authorizes the Secretary to award grants to the 
Delta Health Alliance (DHA) for the development of health care 
services, health educational programs, health care job 
training, and for public health facilities in the Delta region. 
The DHA must solicit input from local governments, public 
health care providers and other entities in the Mississippi 
Delta region. (Section 6029)
      The Conference substitute adopts the House provision with 
modifications to add counties to the eligible region for the 
DRA. (Section 6025) In addition, the Conference substitute 
establishes a separate section called Health Care Services, 
which authorizes $3,000,000 annually for each of fiscal years 
2008 through 2012 for healthcare services in the Delta Region 
to be provided by a consortium of regional institutions. 
(Section 6024)
      The Managers note that, for the purposes of the Delta 
Health Care Services provision, the term ``Delta region'' 
refers to the Mississippi River Delta region. The Managers 
recognize the serious unmet health needs in this region and 
authorize this program with the goal of promoting collaboration 
among entities that are working in the region to provide access 
to quality health care.

(26) Northern Great Plains Regional Authority

      The House bill provides for an extension of the Northern 
Great Plains Regional Authority (NGPRA), which provides funding 
for programs and projects designed to serve the needs of 
distressed counties and isolated areas of distress in the 
States of Iowa, Minnesota, Nebraska, North Dakota and South 
Dakota. The House bill broadens the Authority's support for 
resource conservation districts.
      The House bill makes several modifications to the 
authority by: (1) changing the formula for the federal share of 
the NGPRA's administrative expenses--the formula is: for fiscal 
year 2007, 100 percent; for fiscal year 2008, 75 percent; and 
for fiscal year 2009, 50 percent; (2) eliminating the order of 
priority, with respect to funding for economic and community 
development projects, and the prohibition on providing funds 
for projects located in nondistressed counties; and (3) 
reducing to 25 percent, the minimum amount of funds that the 
authority is to allocate to transportation, telecommunication, 
and public infrastructure projects.
      The House bill also adds ``renewable energy projects'' 
among the projects that are eligible to receive funds. (Section 
6020)
      The Senate amendment provides for an extension of the 
NGPRA and makes changes similar to the House, with respect to 
renewable energy investments and the proportion of funds made 
available to distressed counties. The Senate amendment allows 
the NGPRA to organize and operate without a Federal member if 
such a member has not been confirmed by the Senate 180 days 
after enactment. With respect to the tribal chairperson, the 
Senate amendment allows the leaders of the Indian tribes in the 
region to select a member if a tribal chairperson has not been 
confirmed by the Senate within 180 days of enactment.
      The Senate amendment provides that, among other duties, 
the NGPRA is to develop comprehensive and coordinated plans and 
programs for multistate cooperation to advance the economic and 
social well-being of the region and approve grants for the 
economic development of the Northern Great Plains region. 
Additionally, the assessment of needs and assets of the region 
should include available research, demonstrations, 
investigations, assessments, and evaluations from the regional 
boards established under the Rural Collaborative Investment 
Program (RCIP).
      The Senate amendment provides that the NGPRA should 
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.
      The Senate amendment amends section 383B(g)(1) of the Con 
Act by providing a 100 percent Federal cost-share for fiscal 
years 2008 and 2009, a 75 percent Federal cost-share for fiscal 
year 2010, and a 50 percent Federal cost-share for fiscal year 
2011 and beyond.
      The Senate amendment adds a new provision to provide 
assistance to States in developing plans to address multistate 
economic issues, including plans to: develop a regional 
transmission system for the movement of renewable energy; 
assist in the harmonization of transportation policies and 
regulations that impact the interstate movement of goods and 
individuals; encourage and support interstate collaboration on 
federally funded research of national interest; and establish 
regional working groups on agriculture development and 
transportation concerns.
      Multistate economic issues are to include: renewable 
energy development and transmission, transportation planning 
and economic development, information technology, movement of 
freight and persons in the region; conservation land 
management, and federally funded research.
      The Senate amendment would allow grants to be awarded to 
multistate, local or regional development district 
organizations for administrative expenses. Grants may not 
exceed 80 percent of the administrative expenses of the local 
development district and no grant may exceed 3 years in 
duration. The contribution of the grantee may be in cash or in-
kind, fairly evaluated, and can include equipment, space and 
services.
      The Senate amendment removes the requirement for local 
development districts to serve as lead organizations and 
liaison between State, tribal, and local governments, nonprofit 
groups, the business community, and citizens. (Section 6030)
      The Conference substitute adopts the Senate amendment, 
but modifies it to require that the NGPRA consult and 
coordinate, as appropriate, with tribal leaders in the region 
should a Federal or tribal chairperson not be appointed and 
confirmed. Generally, a local development district will operate 
as the lead organization serving a multicounty area in the 
region. However, the Federal cochairperson, or the Secretary, 
if no person has been confirmed, may designate an Indian tribe 
or an alternative organization to serve in that capacity. 
Organizations that are suitable to serve in such a capacity 
include rural conservation and development districts, Rural 
Economic Area Partnership (REAP) zone organizations, or 
regional organizations established under RCIP. (Section 6026)

(27) Rural Collaborative Investment Program/Rural Strategic Investment 
        Program

      The House bill provides for the extension of the rural 
strategic investment program (RSIP) in section 385E of the Con 
Act with an authorization of appropriations of $25,000,000 for 
fiscal years 2008 through 2012. The preservation and promotion 
of ``rural heritage,'' as defined in this section, are added to 
the criteria for regional plans, for the purpose of making 
regional strategic planning grants--which are competitive 
grants awarded to Regional Boards for the purpose of 
developing, maintaining, and evaluating regional plans.
      In awarding innovation grants, the National Board is to 
give priority to Regional Boards that, among other criteria, 
demonstrate a plan to protect and promote rural heritage. 
(Section 6021)
      The Senate amendment amends section 385A of the Con Act 
by establishing a Regional Rural Collaborative Investment 
Program (RCIP) to provide rural regions with a flexible 
investment vehicle to develop and implement locally 
prioritized, comprehensive strategies for achieving regional 
competitiveness, innovation and prosperity.
      The Senate amendment requires the Secretary to appoint a 
National Rural Investment Board and establish a National 
Institute on Regional Rural Competitiveness and 
Entrepreneurship. The National Institute on Regional Rural 
Competitiveness and Entrepreneurship will work with the 
Secretary to create a National Rural Investment Plan and a 
Rural Philanthropic Initiative, certify Regional Rural 
Investment Boards, and make Regional Innovation Grants to 
Regional Boards to implement approved regional strategies. 
These Regional Boards are to be multijurisdictional, 
multisectoral, regional entities which are broadly 
representative of the long-term economic, community and 
cultural interests of a region, and are comprised of public, 
private and non-profit organizations and residents of the 
region. A region must include a population of at least 25,000 
individuals or in regions with a population density of less 
than 2 persons per square mile, a population of at least 10,000 
individuals. The Regional Board designs a Regional Investment 
Strategy and competes for Regional Innovation Grants.
      Grants of not more than $150,000 are to be provided on a 
competitive basis to certified Regional Boards to develop, 
implement and maintain Regional Investment Strategies, 
developed through a collaborative and inclusive public process. 
Regional Investment Strategies are to provide an assessment of 
the region's competitive advantage, an analysis of the region's 
economic and community development challenges, opportunities, 
and resources, a plan of action to implement the goals of the 
strategies identified, and performance measures by which to 
evaluate implementation.
      Regional Innovation Grants shall be provided on a 
competitive basis to certified Regional Boards, to implement 
projects and programs identified in funded Regional Investment 
Strategy Grants. The Secretary is to give priority to 
strategies that demonstrate significant leverage of capital, 
quality job creation, and asset-based development. A Regional 
Board may not receive more than $6,000,000 in Regional 
Innovation Grants during any 5-year period.
      Long-term loans may be provided to eligible community 
foundations to assist in the implementation of funded Regional 
Investment Strategies. The eligible community foundation must 
be located in the covered region, provide a 25 percent match, 
and use the funds to implement priorities within the Regional 
Investment Strategy.
      The Senate amendment provides $135,000,000 in mandatory 
funding to remain available until expended. Of the amounts made 
available, the Secretary is to use $15,000,000 for Regional 
Investment Strategy Grants, $110,000,000 for Regional 
Innovation Grants, $5,000,000 to administer the National Board, 
and $5,000,000 to administer the National Institute. (Section 
6032)
      The Conference substitute adopts the Senate provision, 
with modifications to incorporate rural heritage as a goal of 
the program. An appropriation of $135,000,000 is authorized for 
fiscal years 2009 through 2012 to carry out this program. 
(Section 6028)

(28) Northern Border Economic Development Commission

      The Senate amendment adds a new subtitle to the Con Act 
that establishes the Northern Border Economic Development 
Commission (NBEDC) made up of a Federal member appointed by the 
President with the advice and consent of the Senate. The 
membership of the Commission includes the Governors of each 
State in the region that elects to participate in the 
Commission. The State cochairperson is a Governor of a 
participating State in the region. The State cochairperson will 
serve for a term of not less than a year. Each State member may 
have a single alternate, who is appointed by the Governor of 
the State from among the Governor's cabinet. Each Commission 
may appoint and fix the compensation of an executive director 
to carry out the duties of the Commission.
      Although the Commission has the authority to determine 
what constitutes a quorum of the Commission, the Federal 
cochairperson must be present to reach a quorum. Alternate 
members cannot be counted toward the quorum. Decisions, such as 
approval of State, regional, or subregional development plans 
or strategy statements, allocations to States, and 
modifications to the Commission's code, may not be made without 
a quorum.
      The Senate amendment establishes the duties and 
administrative actions of the Commission. The amendment 
specifies that the Commission is required to submit an annual 
report to Congress. In addition, Federal agencies are required 
to work with the Commission.
      Any State member, alternate, official, or employee of the 
Commission, their immediate family, organization, or 
organization for which the employee has an arrangement 
concerning prospective employment, are prohibited from 
participating personally or substantially in a matter in which 
the employee has a financial interest. A conflict of interest 
can be overcome by full disclosure to the Commission and a 
subsequent determination by the Commission that the matter will 
not substantially affect the integrity of the work of the 
Commission.
      The Senate amendment confers upon the Commission the 
authority to approve grants to improve economic development of 
the region. Grants may be provided from Federal appropriations, 
other Federal and State grant funds, or any other sources. The 
Federal cochairperson is permitted to use funds made available 
to the program to fund any portion of the basic Federal 
contribution to a project or activity under a Federal grant 
program in the region in an amount not to exceed 80 percent of 
the project cost. The Commission is also permitted to make 
grants to local development districts for administrative 
expenses as long as the grant does not exceed 80 percent of the 
administrative expense of the local development district 
receiving the grant.
      States participating in the Commission are required to 
submit a development plan for the area of the region 
represented by the State member. In developing the plan, the 
State must consult with the appropriate organizations. The 
Commission is to encourage public participation in developing 
such plans. Any State or regional development plan or any 
multistate subregional plan that is proposed must be reviewed 
by the Commission.
      An appropriation of $30,000,000 is authorized for each of 
fiscal years 2008 through 2012; not more than 5 percent of the 
appropriated amount is to be used for administrative expenses. 
The authority of the Commission is terminated on October 1, 
2012. (Section 6034)
      The House contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modifications to establish the Northern Border Regional 
Commission, the Southeast Crescent Regional Commission, and the 
Southwest Border Regional Commission in a new subtitle, 
``Regional Economic and Infrastructure Development,'' in Title 
40 of the U.S. Code. (Section 14217 of the Miscellaneous Title)
      The Conference substitute establishes commission 
membership, voting structure, and staffing; outlines conditions 
for financial assistance; authorizes grants to local 
development districts; establishes an Inspector General for the 
commissions; and includes other provisions designed to produce 
a standard administrative framework.
      Each Commission includes a Federal cochairperson, 
appointed by the President and confirmed by the Senate. The 
Federal Cochairperson will appoint an alternate Federal 
cochairperson. The membership of the Commission also includes 
the Governors of each State in the region that elects to 
participate in the Commission. The State cochairperson is a 
Governor of a participating State in the region. The State 
cochairperson will serve for a term of not less than a year. 
Each State member may have a single alternate, who is appointed 
by the Governor of the State from among the Governor's cabinet. 
Each Commission may appoint and fix the compensation of an 
executive director to carry out the duties of the Commission.
      Each State member is required to submit a development 
plan for the area of the region represented by the State 
member. In carrying out the development planning process, a 
State will consult with local development districts, local 
units of government, and universities and take into account the 
goals, objectives, and recommendations of these entities. Each 
Commission is to establish priorities in an economic and 
infrastructure development plan for its region, including 5-
year regional outcome targets. The Commission will, to the 
extent practicable, encourage and assist public participation 
in the plans and programs of the Commission.
      The Commission is authorized to hold hearings, take 
testimony under oath, and request information from State and 
Federal agencies; adopt, amend, and repeal bylaws and rules 
governing the conduct of the Commission; request the head of 
any Federal department or of any State agency or local 
government to detail to the Commission personnel needed to 
carry out the duties of the Commission; provide Commission 
employees with retirement and other benefits; accept, use, and 
dispose of gifts; enter into contracts to carry out Commission 
duties; establish a central office and field offices for the 
Commission; and provide an appropriate level of representation 
in Washington, D.C.
      The Federal Government will pay 50 percent of the 
administrative expenses of the Commission and the States 
participating in the Commission will pay 50 percent of such 
expenses. Each Commission is required to hold an initial 
meeting no later than 180 days after the date of enactment of 
this Act.
      Any State member, alternate, official, or employee of the 
Commission, their immediate family, organization, or 
organization for which the employee has an arrangement 
concerning prospective employment, are prohibited from 
participating personally or substantially in a matter in which 
the employee has a financial interest. A conflict of interest 
can be overcome by full disclosure to the commission and a 
subsequent determination by the Commission that the matter will 
not substantially affect the integrity of the work of the 
Commission.
      Governments of Indian tribes in the region of the 
Southwest Border Regional Commission are allowed to participate 
in matters in the same manner and to the same extent as State 
agencies and instrumentalities in the region.
      Not less than 90 days after the last day of the each 
fiscal year, each Commission will submit to the President and 
Congress a report on the activities carried out by the 
Commission in the past fiscal year. The report will include a 
description of the criteria used by the Commission to designate 
counties, a list of the counties designated in each category, 
an evaluation of the progress of the Commission in meeting the 
goals identified in the Commission's economic and 
infrastructure development plan, and any policy recommendations 
approved by the Commission.
      Each Commission may make grants to State and local 
governments, Indian tribes, and public or nonprofit 
organizations for projects to develop infrastructure in the 
region, including transportation, public, and 
telecommunications infrastructure; assist the region in 
obtaining job skills training; provide assistance to severely 
economically distressed and underdeveloped areas that lack 
financial resources for improving basic health care and other 
public services; promote resource conservation; promote the 
development of renewable and alternative energy sources; and 
other measures to achieve the purposes of this subtitle.
      The Commission will allocate at least 40 percent of any 
grant amounts provided for transportation, public, or 
telecommunications infrastructure for the region. The 
Commission may use amounts appropriated to carry out this 
subtitle to fund a project or activity under a Federal grant 
program in the region in an amount that is above the fixed 
maximum portion of the cost of the project otherwise authorized 
by applicable law, but may not exceed 50 percent of the costs 
of the project, except for distressed counties or regional 
projects. The maximum contribution for a project or activity to 
be carried out in a distressed county may be increased to 80 
percent. A Commission may increase the maximum grant for a 
project from 50 percent to 60 percent under the normal criteria 
of section 15501 and from 80 percent to 90 percent for a 
distressed county if the project or activity involves three or 
more counties or more than one State and the Commission 
determines that the project or activity will bring significant 
inter-state or multi-county benefits to a region.
      An application to a Commission for a grant or any other 
assistance for a project is to be made through, and evaluated 
for approval by, the State member of the Commission 
representing the applicant. Upon certification by a State 
member of a Commission of an application for a grant or other 
assistance for a specific project under this section, an 
affirmative vote of the Commission shall be required for 
approval of the application.
      Each Commission is required, in considering programs and 
projects to be provided assistance and in establishing a 
priority ranking of the requests for assistance, to consider: 
the relationship of the project or class of projects to overall 
regional development; the per capita income and poverty and 
unemployment and out migration rates in an area; the financial 
resources available to the applicants for assistance seeking to 
carry out the project; the importance of the project in 
relation to the other projects that may be in competition for 
the same funds; the prospects that the project will improve 
opportunities for employment, the average level of income, or 
the economic development of the area on a continuing basis; and 
the extent to which the project design provides for detailed 
outcome measurements by which grant expenditures and the 
results of the expenditures may be evaluated.
      The Commission may make grants to a local development 
district to assist in the payment of development planning and 
administrative expenses. In the case of a State agency 
certified as a local development district, a grant may not be 
awarded to the agency under this section for more than 3 fiscal 
years. The contributions of a local development district for 
administrative expenses may be in cash or in-kind services 
including space, equipment, and services.
      A local development district is to operate as a lead 
organization serving multi-county areas in the region at the 
local level and serve as a liaison between the State and local 
governments, nonprofit organizations, the business community, 
and citizens that are involved in multi-jurisdictional 
planning; provide technical assistance; and provide leadership 
and civic development assistance.
      Supplements to Federal grant programs may be made because 
certain States and local communities, including local 
development districts, may be unable to take maximum advantage 
of Federal grant programs for which they are eligible because 
they lack the economic resources to provide the required State 
or local matching share. Supplemental funds may also provide 
necessary funding for a project to be carried out in the region 
when there are insufficient funds available under applicable 
Federal law.
      A Commission, with the approval of the Federal 
cochairperson, may use amounts made available to carry out this 
subtitle for any part of the basic Federal contribution to 
projects or activities under the Federal grant programs 
authorized by Federal laws and to increase the Federal 
contribution to projects and activities under the programs 
above the fixed maximum part of the cost of the projects or 
activities otherwise authorized by the applicable law.
      For a project for which any part of the basic Federal 
contribution to the project or activity under a Federal grant 
program is proposed to be made under this subtitle, the Federal 
contribution is not to be made until the responsible Federal 
official administering the Federal law authorizing the Federal 
contribution certifies that the program, project, or activity 
meets the applicable requirements of the Federal law and could 
be approved for Federal contribution under that law if amounts 
were available under the law for the program, project, or 
activity. Amounts provided pursuant to this subtitle are 
available without regard to any limitations on areas eligible 
for assistance or authorizations for appropriation in any other 
law.
      The Federal share of the cost of a project or activity 
receiving assistance under this subtitle shall not exceed 80 
percent.
      A State is not required to engage in or accept a program 
under this subtitle without its consent.
      The Conference substitute establishes the designation of 
distressed, transitional, and attainment counties and isolated 
areas of distress in the region. Not later than 90 days after 
the date of enactment of this Act, and annually thereafter, 
each Commission is required to designate counties under 4 
categories. The categories will include: (1) distressed 
counties, defined as counties that are the most severely and 
persistently economically distressed and underdeveloped and 
have high rates of poverty, unemployment, or out migration; (2) 
transitional counties, defined as counties that are 
economically distressed and underdeveloped or have recently 
suffered high rates of poverty, unemployment, or out migration; 
(3) attainment counties, which are counties that are not 
designated as distressed or transitional counties; and (4) 
isolated areas of distress, defined as areas, located in 
counties designated as attainment counties, that have high 
rates of poverty, unemployment, or out migration.
      A Commission is to allocate at least 50 percent of the 
appropriations made available to the Commission to carry out 
this subtitle for programs and projects designed to serve the 
needs of distressed counties and isolated areas of distress in 
the region.
      No funds may be provided to a county designated as an 
attainment county except for funding the administrative 
expenses of local development districts, a multi-county project 
that includes participation of the attainment county, and other 
projects if a Commission determines that the project could 
bring significant benefits to areas of the region outside the 
attainment county.
      For the isolated area of distress designation to be 
effective, the designation must be supported by the most recent 
Federal data available or if no recent Federal data are 
available, by the most recent data available.
      Counties are not eligible for assistance in more than 1 
region. A political subdivision included in the region of more 
than 1 Commission will select the Commission with which it will 
participate by notifying, in writing, the Federal cochairperson 
and the appropriate State member of the Commission. The 
selection of a Commission by a political subdivision will apply 
in the fiscal year in which the selection is made and will 
apply in each subsequent fiscal year unless the political 
subdivision, at least 90 days before the first day of the 
fiscal year, notifies another Commission in writing that the 
political subdivision will participate in that Commission and 
also transmits a copy of such notification to the Commission in 
which the political subdivision is currently participating. In 
this section, the term ``Commission'' includes the Appalachian 
Regional Commission.
      An Inspector General for Commissions, appointed in 
accordance with the Inspector General Act of 1978, is 
established for each Commission. All of the Commissions are to 
be subject to a single Inspector General. Each Commission is to 
maintain accurate and complete records of all transactions and 
activities of the Commission and make them available to the 
Inspector General for audit and examination. The Inspector 
General will audit the activities, transactions, and records of 
each Commission annually.
      Representatives of each Commission, the Appalachian 
Regional Commission, and the Denali Commission will meet 
biannually to discuss issues confronting regions suffering from 
chronic and continuous distress as well as successful 
strategies for promoting regional development. The chair of 
each meeting will rotate among the Commissions, with the 
Appalachian Regional Commission to host the first meeting.
      The region of the Southeast Crescent Regional Commission 
is defined as consisting of all counties of the States of 
Virginia, North Carolina, South Carolina, Georgia, Alabama, 
Mississippi, and Florida not already served by the Appalachian 
Regional Commission or the Delta Regional Authority.
      The region of the Southwest Border Regional Commission is 
defined as consisting of the following political subdivisions:
            (1) ARIZONA--The counties of Cochise, Gila, Graham, 
        Greenlee, La Paz, Maricopa, Pima, Pinal, Santa Cruz, 
        and Yuma in the State of Arizona.
            (2) CALIFORNIA--The counties of Imperial, Los 
        Angeles, Orange, Riverside, San Bernardino, San Diego, 
        and Ventura in the State of California.
            (3) NEW MEXICO--The counties of Catron, Chaves, 
        Dona Ana, Eddy, Grant, Hidalgo, Lincoln, Luna, Otero, 
        Sierra, and Socorro in the State of New Mexico.
            (4) TEXAS--The counties of Atascosa, Bandera, Bee, 
        Bexar, Brewster, Brooks, Cameron, Coke, Concho, Crane, 
        Crockett, Culberson, Dimmit, Duval, Ector, Edwards, El 
        Paso, Frio, Gillespie, Glasscock, Hidalgo, Hudspeth, 
        Irion, Jeff Davis, Jim Hogg, Jim Wells, Karnes, 
        Kendall, Kenedy, Kerr, Kimble, Kinney, Kleberg, La 
        Salle, Live Oak, Loving, Mason, Maverick, McMullen, 
        Medina, Menard, Midland, Nueces, Pecos, Presidio, 
        Reagan, Real, Reeves, San Patricio, Shleicher, Sutton, 
        Starr, Sterling, Terrell, Tom Green Upton, Uvalde, Val 
        Verde, Ward, Webb, Willacy, Wilson, Winkler, Zapata, 
        and Zavala in the State of Texas.
      The region of the Northern Border Regional Commission is 
defined to include the following counties:
            (1) MAINE--The counties of Androscoggin, Aroostook, 
        Franklin, Hancock, Kennebec, Knox, Oxford, Penobscot, 
        Piscataquis, Somerset, Waldo, and Washington in the 
        State of Maine.
            (2) NEW HAMPSHIRE--The counties of Carroll, Coos, 
        Grafton, and Sullivan in the State of New Hampshire.
            (3) NEW YORK--The counties of Cayuga, Clinton, 
        Essex, Franklin, Fulton, Hamilton, Herkimer, Jefferson, 
        Lewis, Madison, Oneida, Oswego, Seneca, and St. 
        Lawrence in the State of New York.
            (4) VERMONT--The counties of Caledonia, Essex, 
        Franklin, Grand Isle, Lamoille, and Orleans in the 
        State of Vermont.
      An authorization of $30,000,000 is provided for each of 
fiscal years 2008 through 2012 for each Commission to carry out 
this subtitle; not more than 10 percent of the funds made 
available to a Commission in a fiscal year may be used for 
administrative expenses.
      The Managers note that within the Southeastern region of 
the United States--defined for the purposes here to include the 
coastal and central portions of the seven Southeastern States 
from Virginia to Mississippi--approximately 40 percent of the 
counties have had 20 percent or more of their citizens living 
in poverty, on average, during the last 30 years. Additionally, 
this region has experienced natural disasters at a rate of 2 to 
3 times greater than any other region of the U.S. The 
Southeastern United States is one of the last areas of the 
country without a Federal authority dedicated to ending poverty 
and strengthening communities. The Southeast Crescent Authority 
will be a valuable tool to assist State and local officials, 
county development organizations, and many others in providing 
resources and leveraging additional funds to assist communities 
with the greatest need.
      With regards to the Southwest border, an Interagency Task 
Force on the Economic Development of the Southwest Border found 
that 20 percent of the residents in this region live below the 
poverty level. Unemployment rates often reach as high as 5 
times the national unemployment rate and a lack of adequate 
access to capital has created economic disparities that have 
made it difficult for businesses to start up in the region. 
Border communities have long endured a depressed economy and 
low-paying jobs. The Southwest Border Regional Commission will 
help foster planning to encourage infrastructure development, 
technology development and deployment, education and workforce 
development, and community development through 
entrepreneurship.
      Finally, the Northern Border region, while abundant in 
natural resources and rich in potential, lags behind much of 
the nation in its economic growth. In this region, 12.5 percent 
of the population lives in poverty. Furthermore, the median 
household income in this region is more than $6,500 below the 
national average. Due to this region's historic reliance on a 
few basic industries and agriculture, unemployment through 
layoffs in traditional manufacturing industries is persistent. 
In addition, the population growth in this region increased by 
only 0.6 percent between 1990 and 2000, while the U.S. 
population rose by 13.2 percent during that same period. The 
Northern Border Regional Commission will assist in supporting 
traditional industries while fostering new industry in the 
region.

(29) Multijurisdictional regional planning organizations

      The Senate amendment reauthorizes section 306(a) of the 
Con Act through fiscal year 2012. (Section 6005)
      The House bill contains no comparable provision.
      The conference substitute deletes the Senate provision.

(30) Rural Economic area partnership zones

      The Senate amendment amends section 310B of the Con Act 
by requiring the Secretary to continue to carry out the 
existing rural economic area partnerships in New York, North 
Dakota, and Vermont in accordance with terms and conditions 
contained in the memorandums of agreement entered into by the 
Secretary through 2012. (Section 6019)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modifications to ensure that only those rural economic 
area partnership zones in effect on date of enactment are to be 
extended to 2012. (Section 6017)

(31) SEARCH grants

      The Senate amendment amends section 306(a) of the Con Act 
by authorizing the Secretary to make grants to eligible 
communities for feasibility study, design, and technical 
assistance under the water and waste disposal and wastewater 
facilities grant program. The grants are to fund up to 100 
percent of the eligible project cost and are to be subjected to 
the least documentation requirements practicable.
      An ``eligible community,'' for the purposes of this 
section, is defined as a community that has a population of 
2,500 or fewer inhabitants and is financially distressed. Not 
more than 4 percent of funds available for water, waste 
disposal and essential community facilities are to be used to 
carry out this program. (Section 6010)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modifications to ensure that the program is modeled after 
the existing pre-development planning grants. (Section 6002)
      The Managers expect that a community will meet the 
definition of ``financially distressed'' if the median 
household income of the probable area to be served by the 
proposed project is either below the poverty line or below 80 
percent of the statewide nonmetropolitan median household 
income based on available historic statistical information 
going back to the last decennial census if no more recent data 
is available. It is the Managers' intent that the latest data 
on income be used without the taking of an income survey that 
would escalate the cost.

(32) Grants to broadcasting systems

      The Senate amendment reauthorizes current law through 
fiscal year 2012. (Section 6016)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6014)

(33) Geographically disadvantaged farmers and ranchers.

      The Senate amendment establishes a new program to provide 
geographically disadvantaged farmers and ranchers direct 
reimbursement payments to transport agricultural commodities, 
or inputs used to produce the commodities.
      To be eligible for direct reimbursement payments the 
farmer or rancher must provide the Secretary proof that 
transportation or agricultural commodity or inputs occurred 
over the distance of more than 30 miles. The total amount of 
direct reimbursement payments provided by the Secretary is not 
to exceed $15,000,000 for each fiscal year. Necessary sums are 
authorized to be appropriated to carry out this program. 
(Section 6021)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with technical changes. (Section 1620 of the Commodity Title)
      The Managers recognize the barriers to competition 
associated with the high transportation costs incurred by 
geographically disadvantaged farmers and ranchers. The Managers 
expect the Secretary to develop, in consultation with the 
eligible areas, an equitable allocation of the funds for such 
areas. The Managers also expect the Secretary to consult with 
eligible areas on administration of the program.

(34) Artisanal cheese centers

      The Senate amendment amends Subtitle D of the Con Act by 
requiring the Secretary to establish artisanal cheese centers 
for education and technical assistance for the manufacturing 
and marketing of artisanal cheese by small and medium-sized 
producers and businesses. Necessary sums are authorized to be 
appropriated for each of the fiscal years 2008 through 2012 . 
(Section 6023)
      The House bill contains no provision.
      The Conference substitute deletes the Senate provision.

(35) Grants to train farmworkers in new technologies and to train farm 
        workers in specialized skills necessary for higher value crops.

      The Senate amendment extends section 379(c) of the Con 
Act through fiscal year 2012. (Section 6027)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(36) Grants for expansion of employment opportunities for individuals 
        with disabilities in rural areas

      The Senate amendment amends the Con Act by adding a new 
section, 379E, which authorizes a new grant program to 
nonprofit organizations to expand employment opportunities for 
individuals with disabilities in rural areas.
      To be eligible to receive a grant under this section the 
eligible entity must have: a significant focus on serving the 
needs of individuals with disabilities; demonstrated knowledge 
and expertise in employment of and advising on accessibility 
issues for individuals with disabilities; expertise in removing 
barriers to employment for individuals with disabilities; 
existing relationships with national organizations focused on 
the needs of rural areas; affiliates in a majority of the 
States; and a working relationship with USDA.
      Grants are to be used to expand or enhance employment 
opportunities, or self-employment and entrepreneurship 
opportunities, of people with disabilities. An appropriation of 
$2,000,000 for each of the fiscal years 2008 through 2012 is 
authorized. (Section 6028)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with minor modifications that strike the requirements that the 
entity have affiliates in a majority of States and a working 
relationship with USDA. (Section 6023)

(37) Rural Business Investment Program

      The Senate amendment extends the Rural Business 
Investment Program authorization through 2012 with the 
following modifications: debentures may be prepaid at any time, 
distributions may be made to cover tax liability, USDA fees are 
limited to a $500 application fee and USDA will not be required 
to operate the program with other Federal agencies. (Section 
6031)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
but removes the provision allowing distributions to be made to 
cover tax liability. The limitation on funding from certain 
financial institutions is maintained and raised 25 percent. 
(Section 6027)

(38) Funding of pending rural development loan and grant applications

      The Senate amendment provides $135,000,000 in mandatory 
funding to fund applications that are pending for water 
systems, waste disposal systems and emergency community water 
assistance grants. (Section 6033)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a modification to provide $120,000,000 in mandatory funds 
for this purpose. (Section 6029)

(39) Expansion of 911 areas

      The House bill extends through 2012 section 315(a) of the 
Rural Electrification Act (REA), which authorizes the Secretary 
to make telephone loans to State or local governments, Indian 
tribes, or other public entities for the expansion of rural 911 
access and integrated emergency communication in rural areas. 
(Section 6022)
      The Senate amendment also amends section 315 of the REA 
by expanding eligibility to emergency communications providers, 
State or local governments, Indian tribes, or other public 
entities for facilities and equipment to expand or improve 911 
access, interoperable emergency communications, homeland 
security communications, transportation safety communication 
and location technologies used outside urbanized areas. Funds 
made available for telephone or broadband loans are authorized 
to be used for the program for each of the fiscal years 2008 
through 2012. Government-imposed fees to emergency 
communications providers are allowed as security for a loan. 
(Section 6107)
      The Conference substitute adopts the Senate provision 
with modifications to allow emergency communications equipment 
providers to apply for loans on behalf of municipalities where 
they serve when those municipalities are unable to incur such 
debt. The Conference substitute also adds clarifying language 
to ensure that the program operates only in rural areas. 
(Section 6107)

(40) Access to broadband telecommunications services in rural areas

      The House bill provides for several modifications of 
section 601 of the REA, which authorizes the Secretary to 
provide loans and loan guarantees for the costs of 
construction, improvement, and acquisition of facilities and 
equipment for broadband service in eligible rural communities.
      The House bill changes the definition of an ``eligible 
rural community'' to include any area in the United States that 
is not: included within the boundaries of any city, town, 
borough, or village, whether incorporated or unincorporated, 
with a population of more than 20,000 inhabitants; and the 
urbanized area contiguous and adjacent to such a city or town. 
The term ``incumbent service provider'' is defined to mean an 
entity that is providing broadband service to at least 5 
percent of the service area proposed in the application.
      The House bill requires priority to be given to 
applications proposing to serve communities in the following 
order: (1) no incumbent service provider; (2) 1 incumbent 
service provider; or (3) 2 incumbent service providers who, 
together, serve not more than 25 percent of the households in 
the service area proposed in the application.
      This section prohibits the Secretary from making a loan 
under 2 conditions: (1) the loan is to any community where 
there are more than 3 incumbent service providers, unless;
            (a) the loan is to an incumbent service provider of 
        the community;
            (b) the other providers in that community are 
        notified of the application before approval by the 
        Secretary, and have sufficient time to comment on the 
        application; and
            (c) the application includes substantially 
        increasing the quality of broadband service in the 
        community and the provision of broadband service to 
        unserved households inside and outside the community; 
        or
      (2) the loan is for new construction (i.e. the 
construction or acquisition of broadband facilities and 
equipment by a new entrant into the community) in any community 
in which more than 75 percent of the households may obtain 
affordable broadband service, on request, from at least 1 
incumbent service provider.
      The House bill authorizes the Secretary to take steps to 
reduce the costs and paperwork associated with applying for a 
loan or loan guarantee under this section by first- time 
applicants, particularly those who are smaller and start-up 
Internet providers. It also mandates that not more than 25 
percent of loans are to be made available, in a single fiscal 
year, to entities that serve more than 2 percent of the 
telephone subscriber lines in the United States.
      The House bill provides that the period of a loan or loan 
guarantee cannot exceed 35 years, as the borrower may request, 
so long as the Secretary determines that the loan is adequately 
secured; the Secretary is to consider whether the recipient is, 
or would be, serving an area that is not receiving broadband 
services.
      This section also requires the Secretary to ensure that 
the type, amount, and method of security used to secure a loan 
or loan guarantee is commensurate to the risk involved with the 
loan or loan guarantee, particularly when the loan or loan 
guarantee is issued to a financially healthy, strong, and 
stable entity. The Secretary is also required, in determining 
the amount and method of security, to consider reducing the 
security in areas that do not have broadband service.
      The Secretary must annually report to Congress by 
December 1 of each fiscal year on the rural broadband loan and 
loan guarantee program. The annual report is to include 
information pertaining to the loans made, communities served, 
speed of broadband service offered, and types of services 
offered by applicants and recipients, length of time taken to 
approve applications submitted, and outreach efforts undertaken 
by USDA.
      The House bill establishes a ``National Center for Rural 
Telecommunications Assessment'' to assess the effectiveness of 
the rural broadband loan and loan guarantee program, increase 
broadband penetration and purchase in rural areas; and develop 
assessments of broadband availability in rural areas. An 
appropriation of $1,000,000 is authorized for each of the 
fiscal years 2008 through 2012 for the Center.
      The House bill mandates that the Secretary is required to 
set aside 10 percent of appropriated funds for eligible tribal 
communities. Unobligated amounts contained in the reserve for 
tribal communities will be released by June 30 of each fiscal 
year. (Section 6023)
      The Senate amendment maintains current law, with respect 
to the purposes for which loans and loan guarantees may be 
made, but provides that they should be provided to ``rural 
areas,'' as defined in section 6105 of this Act. All references 
to eligible rural communities have been changed to rural areas.
      The Senate amendment defines the term ``mobile 
broadband'' to mean any ``broadband service'' 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.
      Under the Senate amendment, highest priority is to be 
given to applicants that offer to provide broadband service to 
the greatest proportion of households currently without 
broadband service. A provider is considered to offer broadband 
service to a rural area if the provider makes the 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. Eligible entities are required to: 
submit a proposal to the Secretary that meets the requirements 
for a project to offer to provide service to a rural area; 
offer to provide broadband service to at least 25 percent of 
households in a specified rural area that do not currently have 
such service offered to them; and agree to complete buildout of 
the broadband service within 3 years.
      The Senate amendment prohibits the Secretary from making 
or guaranteeing loans for projects in areas where 3 or more 
existing providers already offer to provide comparable service.
      The Secretary is given the discretion to 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. The 
Secretary is also given the discretion to require an entity 
that proposes to have a subscriber projection of more than 20 
percent of the broadband market in a rural area to submit a 
market survey. However, the Secretary is prohibited from 
requiring a market survey from an entity that projects to have 
less than 20 percent of the broadband market.
      State, local governments, and Indian tribes are eligible 
to receive loans or loan guarantees available under this 
section.
      No entity may acquire more than 20 percent of the 
resources of the program outlined under this section in a 
fiscal year.
      The Senate amendment requires the Secretary to include a 
notice of applications on the Secretary's website for 90 days, 
post information relating to the broadband proposal on the 
website, establish a timeline on the website to track 
applications, and establish procedures for processing loan and 
loan guarantee applications (including requests for additional 
information). Not later than 45 days after the date on which 
the Secretary approves an application the documents necessary 
for closing the loan or loan guarantee are to be provided to 
the applicant. Not later than 10 business days after the date 
of receipt of a valid documentation requesting disbursement of 
the approved, closed loan, the disbursement of the loan funds 
is to occur.
      The Senate amendment requires the Secretary to establish 
an optional pre-application process under which an applicant 
may apply to RUS for a binding determination of whether the 
area proposed to be served is eligible prior to preparing a 
full loan application.
      An application for a loan or a loan guarantee under this 
section, or a petition for reconsideration of a decision on 
such an application, is to 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.
      The Senate amendment establishes the annual rate of 
interest as the lower of: (i) the cost of borrowing to the 
Treasury Department for comparable obligations; or (ii) 4 
percent. The loan or loan guarantee may not exceed 30 years. 
The type, amount, and method of security used to secure a loan 
or loan guarantee is commensurate to the risk involved with the 
loan or loan guarantee, particularly when the loan or loan 
guarantee is issued to a financially healthy, strong, and 
stable entity.
      Similar to the House bill, the Senate amendment provides 
for a National Center for Rural Telecommunications Assessment. 
The authorization of appropriations for the Center is the same 
as the House bill. The Center is required to submit an annual 
report that describes its activities, the results of the 
research it has carried, and any additional information that 
the Secretary may request.
      The Senate amendment allows the Secretary to provide the 
proceeds of any loan made or guaranteed under the REA for the 
purpose of refinancing another telecommunications-related loan 
made under REA.
      An appropriation of $25,000,000 is authorized for each of 
the fiscal years 2008 through 2012. (Section 6110)
      The Conference substitute adopts the Senate amendment 
with modifications. The definition of incumbent service 
provider is retained from the House bill.
      The Conference substitute maintains the definition of 
rural area from the Senate amendment. The Conference substitute 
prohibits the Secretary from making a loan in any area where 
there are more than 3 incumbent service providers unless the 
loan meets all of the following requirements: (1) the loan is 
to an incumbent service provider that is upgrading service in 
that provider's existing territory; (2) the loan proposes to 
serve an area where not less than 25 percent of the households 
are offered service by not more than 1 provider; and (3) the 
applicant is not eligible for funding under another provision 
of the REA.
      The Conference substitute also prohibits the Secretary 
from making a loan in any area where not less than 25 percent 
of the households are offered broadband service by not more 
than 1 provider unless a prior loan has been made in the same 
area under this section.
      The Conference substitute provides that the highest 
priority is to be given to applicants that offer to provide 
broadband service to the greatest proportion of households 
currently without broadband service. Eligible entities are 
required to submit a proposal to the Secretary that meets the 
requirements for a project to offer to provide service to a 
rural area and agree to complete buildout of the broadband 
service within 3 years.
      The Conference substitute prohibits any eligible entity 
that provides telecommunications or broadband service to at 
least 20 percent of the households in the United States from 
receiving an amount of funds under this section for a fiscal 
year in excess of 15 percent of the funds authorized and 
appropriated for the broadband loan program.
      The Conference substitute allows the Secretary to 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. The 
Secretary is also allowed to 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 a market 
survey. However, the Secretary is prohibited from requiring a 
market survey from an entity that projects to have less than 20 
percent of the broadband market.
      The Conference substitute requires public notice of each 
application submitted, including the identity of the applicant, 
the proposed area to be served, and the estimated number of 
households in the application without terrestrial-based 
broadband. The Conference substitute authorizes the Secretary 
to take steps to reduce the costs and paperwork associated with 
applying for a loan or loan guarantee under this section by 
first-time applicants, particularly those who are smaller and 
start-up Internet providers.
      The Conference substitute allows the Secretary to 
establish a pre-application process under which a prospective 
applicant may seek a determination of area eligibility.
      The Conference substitute provides that an application, 
or a petition for reconsideration of a decision on such an 
application, that was pending on the date 45 days before 
enactment of this Act and that remains pending on the date of 
enactment of this Act is to be considered under eligibility and 
feasibility criteria in effect on the original date of 
submission of the application.
      The current law rate of interest for direct loans--which 
is the rate equivalent to the cost of borrowing to the 
Department of Treasury for obligations of comparable maturity 
or 4 percent--is retained. The Secretary is to consider 
existing recurring revenues at the time of application in 
determining an adequate level of credit support.
      The Conference substitute requires the Secretary to 
ensure that the type, amount, and method of security used to 
secure a loan or loan guarantee is commensurate to the risk 
involved with the loan or loan guarantee, particularly when the 
loan or loan guarantee is issued to a financially healthy, 
strong, and stable entity. The Secretary is also required, in 
determining the amount and method of security, to consider 
reducing the security in areas that do not have broadband 
service.
      The Conference substitute requires that the Secretary 
report to Congress by December 1 of each fiscal year on the 
rural broadband loan and loan guarantee program. The annual 
report is to include information pertaining to the loans made, 
communities served and proposed to be served, speed of 
broadband service offered, types of services offered by the 
applicants and recipients, length of time to approve 
applications submitted, and outreach efforts undertaken by 
USDA.
      The Conference substitute authorizes the program at 
$25,000,000 to be appropriated for each of fiscal years 2008 
through 2012. (Section 6110)
      The Conference substitute provides for a National Center 
for Rural Telecommunications Assessment and criteria for the 
Center. The Center is to assess the effectiveness of programs 
carried out under this section, work with existing rural 
development centers to identify appropriate policy initiatives, 
and provide an annual report that describes the activities of 
the Center, the results of research carried out by the Center, 
and any additional information that the Secretary may request. 
An appropriation of $1,000,000 is authorized for each of the 
fiscal years 2008 through 2012. (Section 6111)
      The Managers expect the Secretary to consider the unique 
way of life in rural America and to be mindful that mobile 
broadband technologies are applicable to farmers, ranchers, and 
small rural business owners. Fixed broadband service will 
continue to be important in rural homes and offices, but mobile 
technologies also may have a role to play in expanding 
broadband access to rural residents. The Managers expect the 
Secretary to weigh all appropriate technologies, including the 
unique characteristics of mobile broadband service and 
technologies, during consideration of applications.
      With respect to applications not described in Section 
601(c)(2) of the REA, as amended by this section, the Managers 
expect the Secretary to incorporate the new criteria as soon as 
practicable, taking into consideration the need to act upon 
pending applications within a reasonable time.
      The Managers expect the Secretary to provide the 
necessary resources to expedite the processing of applications 
under this section. The Managers also expect that the notice of 
applications will be posted on the Agency's website in a manner 
that will be easy for interested members of the public to find 
the information described and would be posted in a manner 
consistent to the way similar notices are currently posted on 
the Agency's website. It is intended that such notices shall 
not contain any proprietary information as defined by section 
552(b)(4) of title 5 of the United States Code. Finally, the 
Managers also intend that in addition to the notice, the Agency 
will also post on its website with respect to each loan and 
loan guarantee application the status of the Agency's 
consideration of the application and an estimate of when the 
Agency's consideration will be concluded, which shall be 
regularly updated.

(41) Study of Federal assistance for broadband infrastructure

      The Senate amendment instructs the Comptroller General of 
the U.S. to conduct a study and review of the Rural Utilities 
Service (RUS) administration of Federal broadband programs with 
recommendations for changes. (Section 6113)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(42) Comprehensive rural broadband strategy

      The House bill requires the Secretary to submit to the 
President and the Congress a report describing a comprehensive 
rural broadband strategy that includes: (1) recommendations to:
            (A) promote interagency coordination of Federal 
        agencies and improve and streamline policies, programs, 
        and services;
            (B) coordinate among Federal agencies regarding 
        existing broadband or rural initiatives that could be 
        of value to rural broadband development;
            (C) address both short- and long-term solutions and 
        needs for a rapid buildout of rural broadband solutions 
        and applications for Federal, State, regional, and 
        local government policy makers;
            (D) identify how specific Federal agency programs 
        and resources can best respond and overcome obstacles 
        that currently impede rural broadband deployment; and
            (E) promote successful model deployments and 
        appropriate technologies being used in rural areas so 
        that State, regional, and local governments can benefit 
        from the success of other State, regional, and local 
        governments; and
      (2) a description of goals and timeframes to achieve the 
strategic plans and visions identified in the report. (Section 
6031)
      The Senate amendment requires the Secretary of 
Agriculture and the Chairman of the Federal Communications 
Commission (FCC) to submit a report to the Committees on Energy 
and Commerce and Agriculture of the House and the Committees on 
Commerce, Science, and Transportation and Agriculture, 
Nutrition and Forestry of the Senate describing a comprehensive 
rural broadband strategy with recommendations for improvement.
      The Senate amendment includes recommendations to: (A) 
promote interagency coordination of Federal agencies and 
improve and streamline policies, programs, and services; (B) 
coordinate among Federal agencies regarding existing broadband 
or rural initiatives that could be of value to rural broadband 
development; (C) address both short- and long-term solutions 
and needs for a rapid buildout of rural broadband solutions and 
applications for Federal, State, regional, and local government 
policy makers; (D) identify how specific Federal agency 
programs and resources can best respond and overcome obstacles 
that currently impede rural broadband deployment.
      This Senate amendment stipulates that the Chairman of the 
FCC, in coordination with the Secretary of Agriculture, is to 
update and evaluate the report required under this section on 
an annual basis.
      The Senate amendment modifies section 306(a)(20)(E) of 
the Con Act by striking the reference to dial-up Internet 
access. (Section 6111)
      The Conference substitute adopts the Senate provision to 
require a report on Federal broadband strategy with technical 
changes and a modification to require the update of the report 
required under this section in the third year following 
enactment. (Section 6112)
      The Conference substitute adopts the Senate provision 
striking an obsolete reference to dial-up Internet and places 
the provision in a separate section. (Section 6005).

(43) Community connect grant program

      The House bill amends the REA by authorizing the 
Secretary to provide financial assistance to eligible 
applicants for the provision of broadband transmission service 
that fosters economic growth and delivers enhanced services. 
The Secretary is authorized to prioritize grants that will 
enhance community access to telemedicine and distance learning. 
Grant applicants are required to provide a matching 
contribution of at least 15 percent of the grant amount 
requested.
      An appropriation of $25,000,000 is authorized for fiscal 
years 2008 through 2012. (Section 6024)
      The Senate amendment contains no comparable provision.
      The Conference substitute strikes the House provision.

(44) Connect the Nation

      The Senate amendment provides that the subtitle of this 
section is to be cited as the ``Connect the Nation Act.'' 
(Section 6201)
      The Senate amendment also creates a competitive, matching 
grant program (80 federal/20 state) called the ``Connect the 
Nation Act of 2007'' to be housed at the Department of Commerce 
for eligible statewide public-private partnerships to benchmark 
current access and use, build detailed GIS maps of service, and 
create demand through grassroots teams. Eligible entities would 
be limited to 4 years of participation. Grant applications 
would be reviewed through a peer review process. Collaboration 
is required between State agencies, service providers, and 
relevant labor organizations, and community organizations to be 
considered eligible. An appropriation of $40,000,000 for each 
of the fiscal years 2008 through 2012 is authorized. (Section 
6202)
      The House contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(45) Distance learning and telemedicine

      The House bill amends the Food, Agriculture, 
Conservation, and Trade Act (FACT Act) by authorizing the 
Secretary to provide grants to noncommercial education 
television broadcast stations that serve rural areas for the 
purposes of developing digital facilities, equipment, and 
infrastructure to enhance digital services to rural areas. 
(Section 6028)
      The House bill amends section 2335A of the FACT Act by 
extending the authorization of appropriations to fiscal year 
2012. (Section 6029)
      The Senate amendment permits as allowable purposes for 
receiving financial assistance library connectivity and public 
television station digital conversion. The Secretary is 
required to establish, by notice, the amount of financial 
assistance available to applicants in the form of grants, costs 
of money loans, combinations of grants and loans, or other 
financial assistance. Libraries or library support 
organizations, public television stations and parent 
organizations of public television stations, and schools, 
libraries, and other facilities operated by the Bureau of 
Indian Affairs or Indian Health Service are added as eligible 
for assistance. In prioritizing financial assistance the 
Secretary may also consider the cost and availability of high-
speed network access.
      The Senate amendment allows the following as eligible 
purposes under this section: the development, acquisition, and 
digital distribution of instructional programming to rural 
users; the development and acquisition of computer hardware and 
software, audio and visual equipment, computer network 
components, telecommunications transmission facilities, date 
terminal equipment, or interactive video equipment, 
teleconferencing equipment, or other facilities that would 
further telemedicine services, library connectivity, or 
distance learning services; the provision of technical 
assistance and instruction for the development or use of the 
programming, equipment, or facilities; the acquisition of high-
speed network transmission equipment or services that would not 
otherwise be available or affordable to the applicant; 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; and competitive grants, for 
public television stations or a consortium of public television 
stations, to provide education, outreach, and assistance, in 
cooperation with community groups, to rural communities and 
vulnerable populations with respect to the digital television 
transition, and particularly the acquisition, delivery, and 
installation of the analog-to-digital converter boxes.
      The Senate amendment reauthorizes appropriations through 
2012. (Section 6302)
      The Conference substitute adopts the Senate provision 
with modifications to provide that only libraries are added as 
eligible entities, clarifying current law. No additional uses 
are added. However, the Managers direct that public television 
entities are eligible to receive assistance under this section 
for high-speed telecommunication services in rural areas to 
provide educational programming for schools and communities in 
rural areas. (Section 6201)

(46) Agricultural innovation center demonstration grants

      The House bill provides for an extension of section 6402 
of the Farm Security and Rural Investment Act of 2002 (FSRIA) 
by authorizing an appropriation of $6,000,000 for each of the 
fiscal years 2008 through 2012. (Section 6025)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 6203)

(47) Rural firefighters and emergency services assistance program

      The House bill amends section 6405 of the FSRIA by 
authorizing the Secretary to award grants to eligible entities 
to enable such entities to provide for improved emergency 
medical services (EMS) in rural areas. Grants may be used to 
pay the cost of training firefighters and emergency medical 
personnel in firefighting, and emergency medical practices in 
rural areas.
      Eligible entities must be: a State EMS office or 
association; a State office of rural health; a local government 
entity; an Indian tribe; or any other entity determined 
appropriate by the Secretary. To receive a grant under this 
section, the eligible entity must prepare and submit an 
application to the Secretary that includes: a description of 
the activities to be carried out under the grant and an 
assurance that the applicant will comply with the grant 
program's matching fund requirement.
      Under the House bill, eligible entities are to use grant 
funds only in rural areas to: (1) hire, recruit or train EMS 
personnel; (2) recruit or retrain emergency EMS personnel; (3) 
fund training to meet State or Federal certification 
requirements; (4) provide training for firefighters and 
emergency medical personnel for improvements to the training 
facility, equipment, and personnel; (5) develop new ways to 
educate emergency health care providers through the use of 
technology-enhanced educational methods; (6) acquire EMS 
vehicles and equipment; (7) acquire personal protective 
equipment for EMS personnel as required by the Occupational 
Safety and Health Administration (OSHA); (8) educate the public 
concerning CPR, first aid, injury prevention, safety awareness, 
illness prevention, and other emergency preparedness topics. 
Preference is to be given to applications that reflect a 
collaborative effort by 2 or more eligible entities and are 
submitted by eligible entities who intend to use grant funds 
to: hire, recruit, or train EMS personnel; recruit or retrain 
volunteer EMS personnel; fund training to meet State or Federal 
certification requirements; or develop new ways to educate 
emergency health care providers through the use of technology-
enhanced educational methods. Appropriations of not more than 
$30,000,000 are authorized for each of the fiscal years 2008 
through 2012; no more than 10 percent of appropriated funds in 
a fiscal year may be used for administrative expenses. (Section 
6026)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
minor changes. The funds made available under this section are 
not to go to entities operating on a for-profit basis. 
Additionally, the amount allowed for administrative expenses is 
decreased to 5 percent. (Section 6204)

(48) Value-added agricultural product market development grants

      The House bill extends the program through fiscal year 
2012 and provides $30,000,000 in mandatory funding for each 
fiscal year. Of the mandatory funds, 10 percent is to be set 
aside for projects benefiting beginning farmers and ranchers or 
socially disadvantaged farmers or ranchers and 10 percent is to 
be set aside for applications that propose to develop mid-tier 
value chains, which are defined in this section as local and 
regional supply networks that link independent producers with 
businesses and cooperatives that market value-added 
agricultural products. Should viable applications for these 2 
purposes not meet the full 10 percent set-aside, amounts 
unobligated by June 30 may be reallocated. The House bill 
requires the Secretary, in awarding grants under this section, 
to consider applications more favorably, when compared to other 
applications, to the extent that the project proposed in the 
application contributes to increasing opportunities for 
operators of small and medium-sized farms and ranchers 
structured as ``family farms''--as defined in the regulations 
prescribed under section 302 of the Con Act. (Section 6027)
      The Senate amendment provides for an extension of the 
program through 2012 and updates the definitions of ``assisting 
organization,'' ``technical assistance,'' and ``value-added 
agricultural product.'' Under the Senate amendment, a grant 
recipient can receive no more than $300,000 in the case of 
grants including working capital or $100,000 in the case of all 
other grants. The amount of grant funds provided to an 
assisting organization for research, training, technical 
assistance, and outreach for a fiscal year may not exceed 10 
percent of the total funds that are used to make grants.
      The Senate amendment requires that grants made under this 
section be limited to a 3-year term. The Secretary is 
authorized to offer a simplified application form and process 
for project proposals that request less than $50,000. The 
Secretary is also authorized, to the maximum extent 
practicable, to provide grants to projects that provide 
training and outreach activities in areas that have received 
relatively fewer grants. The Senate amendment adds a priority 
for projects that contribute to increasing opportunities for 
beginning farmers or ranchers, socially disadvantaged farmers 
or ranchers, and operators of small and medium-sized farms and 
ranchers that are not larger than family farms and 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. (Section 6401)
      The Conference substitute adopts the Senate provision 
with modifications. The Secretary is required to reserve 10 
percent of funds for projects that benefit beginning farmers or 
ranchers or socially disadvantaged farmers or ranchers and 10 
percent of funds for projects proposing to develop mid-tier 
value-chains. Priority in awarding grants should go for 
projects that contribute to increasing opportunities for 
beginning farmers and ranchers, socially disadvantaged farmers 
or ranchers, and operators of small and medium-sized farms and 
ranches that are structured as family farms. Mandatory funding 
of $15,000,000, to remain available until expended, is to be 
provided in fiscal year 2009. The authorization of 
appropriations for the program is extended through 2012. 
(Section 6202)
      The Managers are aware of the increasing producer 
interest in mid-tier value chains that are strategic alliances 
between small and mid-sized farms and ranches and other supply 
chain partners that deal in significant volumes of high-
quality, differentiated food products and distribute rewards 
equitably across the supply chain. The Managers expect that 
awards under this new mid-tier value chain component of the 
program will support strategic alliances in which the producer, 
producer group, farmer cooperative, or majority-controlled 
producer based venture participate in developing the overall 
framework and specific rules for the alliance.

(49) Guarantees for bonds and notes

      The House bill extends guarantees for bonds and notes 
issued for electrification or telephone purposes through 2012. 
(Section 6030)
      The Senate amendment extends eligibility for guarantees 
for telephone installation purposes; expands the funds 
available for guarantees to $1,000,000,000; requires the annual 
fee paid for the guarantee of a bond or note to be equal to 30 
basis points of the amount of the unpaid principal; and 
requires a lender to pay fees required on a semi-annual basis 
on a schedule structured by the Secretary.
      The Senate amendment also extends the Secretary's 
authority to guarantee payments to September 30, 2012. (Section 
6106)
      The Conference substitute adopts the Senate provision, 
with a modification to allow the provision expanding the funds 
available for guarantees to apply immediately upon enactment. 
(Section 6106)

(50) Study of rural transportation issues

      The House bill authorizes the Secretary of Agriculture, 
in coordination with the Secretary of Transportation, to 
conduct a study, and submit a report to Congress on the results 
of the study within 9 months of the date of enactment of this 
Act, on railroad issues, with respect to the movement of 
agricultural products, domestically produced renewable fuels 
and domestically produced resources for the production of 
electricity in rural America.
      The study includes an examination of the importance of 
freight railroads to: the delivery of equipment, seed, 
fertilizer, and other products important to the development of 
agricultural commodities and products; the movement of 
agricultural commodities and products to market; the delivery 
of ethanol and other renewable fuels; the delivery of 
domestically produced resources for use in the generation of 
electricity in rural America; the location of grain elevators, 
ethanol plants, and other facilities; the development of 
manufacturing facilities; the vitality and economic development 
of rural communities; the sufficiency in rural America of 
railroad capacity, the sufficiency of rail competition, the 
reliability of rail service, and the reasonableness of rail 
prices; and the accessibility to rail customers in rural 
America of Federal processes for the resolution of rail 
customer grievances with the railroad. (Section 6032)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment expanding the study to include other modes of 
transportation, including truck and barge. (Section 6206)

(51) Energy efficiency programs

      The Senate amendment amends sections 2(a) and 4 in the 
REA by authorizing the Secretary to extend loans to energy 
efficiency programs. (Section 6101)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6101)
      The Managers note that assistance is authorized under 
this section for renewable energy, including geo-thermal ground 
loops, under sections 2 and 4 of the REA as amended. The 
Managers expect that applications for such assistance will be 
properly considered and when meritorious, that they should be 
funded.

(52) Loans and grants for electric generation and transmission

      The Senate amendment amends section 4 of the REA by 
requiring the Secretary to make loans and grants for the 
purpose of financing the construction and operation of 
generating plants, electric transmission and distribution lines 
or systems for the furnishing and improving of electric 
services to persons in rural areas if appropriated funds are 
made available. (Section 6102)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      If funds are appropriated for Section 4 of the REA, the 
Managers expect the Secretary to make funds available for 
baseload generation.

(53) Fees for electrification baseload generation loan guarantees

      The Senate amendment amends the REA by adding a new 
section, 5, which allows the Secretary to charge an upfront fee 
to cover the cost of loan guarantees. The fee is to be at least 
equal to the costs of the loan guarantee. The Secretary is 
given the authority to establish a separate fee for each loan. 
(Section 6103)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision, 
but adopts an amendment to require a study on the electric 
power generation needs in rural areas. (Section 6113)

(54) Deferment of payments to allow loans for improved energy 
        efficiency and demand reduction

      The Senate amendment amends section 12 of the REA by 
requiring the Secretary to allow borrowers to defer payment of 
principal and interest on any direct loan 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 for 60 
months. (Section 6104)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modifications to allow energy efficiency and use audits as 
an eligible purpose under the program. (Section 6103)
      The Conference substitute also makes technical changes to 
allow for direct lending from the U.S. Department of Treasury 
for RUS financing. Under the authority conferred to it under 
section 4 of the REA, RUS has the ability to guarantee loans 
made by the Federal Financing Bank (FFB), an agency of the U. 
S. Department of the Treasury (Treasury), to rural electric 
providers. Through approval of both the Office of Management 
and Budget and the appropriations process, direct loans from 
the Treasury have been used in addition to the FFB loan 
guarantees for several years. Language is included in a new 
section authorizing the loan rate program through Treasury with 
a requirement that cost of money loans be made with 1/8 of 1 
percent added to the interest rate. This will effectively take 
the place of the FFB program. The loans should continue to be 
scored at a negative subsidy. (Section 6102)
      The Managers expect that this language will enable the 
loans to be processed more efficiently and still protect the 
taxpayer investment in a strong, modern infrastructure in rural 
America.

(55) Rural electrification assistance

      The Senate bill amends the definition of ``rural area'' 
to mean an area that excludes: (1) cities of 50,000 or more; 
(2) any urbanized area contiguous and adjacent to a city of 
50,000 or more, except for narrow strips of urbanized areas; 
and (3) any collection of contiguous census blocks with a 
housing density of 200 housing units per square mile that is 
adjacent to a city of 50,000 or adjacent to an urbanized area, 
except for narrow strips of such territory. The definition is 
also amended to include any area within the service area of a 
borrower for which a borrower has an outstanding loan made 
under titles I through V of the REA. (Section 6105)
      With respect to loans and loan guarantees made under the 
rural broadband program, the term rural area also excludes a 
city, town, or unincorporated area that has a population of 
greater than 20,000 inhabitants.
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment 
with modifications. Rural area is defined to mean an area that 
excludes a city or town of 20,000 or more, or is an area within 
the service area of a borrower for which a borrower has an 
outstanding loan made under titles I through V of the REA. 
(Section 6104)

(56) Electric loans for renewable energy

      The Senate amendment amends Title III of the REA by 
adding a new section, 317, which allows the Secretary to make 
loans to rural electric cooperatives for purposes of electric 
generation and transmission of renewable energy. Renewable 
energy source is defined as a qualified energy resource under 
section 45(c)(1) of the Internal Revenue Code of 1986. (Section 
6108)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modifications. The provision to allow transmission under 
this section is deleted with the understanding that the agency 
currently possesses authorization to make loans for such 
transmission. Additionally, the definition of renewable energy 
source is redefined to mean ``an energy conversion system 
fueled from a solar, wind, hydropower, biomass, or geothermal 
source of energy.'' (Section 6108)
      The Managers expect the Secretary to make electric loans 
under this title for electric generation from renewable energy 
resources to rural and nonrural residents.

(57) Bonding requirements

      The Senate amendment amends Title III of the REA by 
adding agency procedures for loans or grants under this Act. 
The amendment: (1) requires that loan applicants are contacted 
at least once each month by RUS regarding the status of any 
pending loan applications; (2) requires the Secretary to ensure 
that applicants for any RUS grants have the opportunity to 
present a case for financial need and that these special 
economic circumstances are considered in determining the grant 
status of the applicant; (3) allows the Secretary to adjust 
population limitations related to digital mobile wireless 
service; and (4) requires the Secretary to review bonding 
requirements for all programs administered by RUS. (Section 
6109)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision to 
require the Secretary to review bonding requirements for all 
programs administered by RUS, but strikes the other provisions 
in the Senate amendment. (Section 6109)
      The Managers are aware of significant annual increases in 
the cost of labor and materials in major electric generation 
and transmission projects resulting in parallel increases in 
cost for Surety and Performance Bonds. The cost of Surety and 
Performance Bonds precludes some contractors from bidding on 
projects successfully. The Managers therefore request the 
Secretary give consideration to other measures that will ensure 
more contractors can bid on projects and simultaneously protect 
the government's investment in these projects. Suggestions have 
been made that lines of credit or parent company guarantees are 
examples of methods that could provide such protection for both 
the borrowers and the government.

(58) Substantially underserved trust areas

      The Senate amendment provides that Native American trust 
lands, where more than 20 percent of the population does not 
have electric, telecommunications, broadband or water service, 
are to be considered substantially underserved trust areas. The 
Secretary may make programs administered by RUS available to 
such areas at lower loan rates and may waive non-duplication 
requirements. (Section 6112)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modifications to ensure only that only the restrictions 
and requirements specified under this section are waived with 
this authority. The authority of the Secretary to waive non-
duplication restrictions, matching fund requirements, or credit 
support requirements from any loan or grant program 
administered by RUS to facilitate the construction, 
acquisition, or improvement of infrastructure is not to affect 
any loan or grant program administered by the U.S. 
Environmental Protection Agency. In addition, the language in 
this section is not intended to amend, alter, or affect any 
statutory provisions contained in the Safe Drinking Water Act 
or any regulations promulgated under that Act, including any 
orders or guidance issued pursuant to that authority. (Section 
6105)

(59) Rural electronic commerce extension

      The Senate amendment reauthorizes section 1670(e) of the 
FACT Act through 2012. (Section 6301)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(60) Insurance of loans for housing and related facilities for domestic 
        farm labor

      The Senate amendment amends section 514 (f)(3) of the 
Housing Act of 1949, by extending the definition of ``domestic 
farm labor'' to include any person who receives a substantial 
portion of their income from the processing of agricultural or 
aquaculture commodities. (Section 6402)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6205)

(61) Housing Assistance Council

      The Senate amendment provides for the ``Housing 
Assistance Council Authorization Act of 2007.'' (Section 6501)
      This section authorizes the Secretary of Housing and 
Urban Development (HUD) to provide financial assistance to the 
Housing Assistance Council (HAC) for the purpose of supporting 
community-based housing development organizations' community 
development and affordable housing projects and programs in 
rural areas. (Section 6502)
      The Senate amendment requires the Comptroller General to 
audit any institution receiving funds from HAC and a GAO report 
on the use of any funds appropriated to HAC over the past 10 
years. (Section 6503)
      The Senate amendment prohibits funds from subtitle D of 
this Act from being used to provide housing assistance to 
persons not lawfully present in the United States. (Section 
6504)
      The Senate amendment prohibits funds from being used to 
lobby or retain a lobbyist. (Section 6505)
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate amendment, 
with modifications to allow the GAO to use private, independent 
audits for the review of HAC. (Sections 6301, 6302, 6303, 6304, 
and 6305)

(62) Interest rates for water and waste disposal

      The Senate amendment amends section 307(a)(3) of the Con 
Act to ensure that interest rates for intermediate and poverty 
rate loans are tied to the current market rate. The poverty 
rate is set at 60 percent of the market rate and the 
intermediate rate is set at 80 percent of the market rate. 
(Section 12602)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment, 
with modifications to exclude from the interest rate change, 
those loans that have been approved prior to the enactment of 
this Act. (Section 6011)

                          TITLE VII--RESEARCH


(1) Definitions

      The House bill defines terms necessary to implement this 
Act: capacity program, competitive program, capacity program 
critical base funding, competitive program critical base 
funding, ASCARR Institution, Secretary, Directors, Under 
Secretary, and Hispanic-serving agricultural college and 
university. (Section 7101)
      The Senate amendment amends the Department of Agriculture 
Reorganization Act of 1994 to define the terms: advisory board, 
competitive program, director, infrastructure program, and 
institute (Section 7401). The Senate amendment amends Section 
1404 of the National Agricultural Research, Extension and 
Teaching Policy Act of 1977 (NARETPA) to define the terms 
Hispanic-serving agricultural colleges and universities, and 
Hispanic-serving institution, and to expand `college' and 
`university' to include research foundations maintained by a 
college or university. (Section 7001)
      The Conference substitute adopts the House provision with 
an amendment to include the terms defined in the House bill and 
the Senate amendment.
      The Conference substitute defines the following terms 
necessary to implement this Act: capacity and infrastructure 
program, capacity and infrastructure program critical base 
funding, competitive program, competitive program critical base 
funding, Hispanic- serving agricultural colleges and 
universities, NLGCA Institution (non-land-grant colleges of 
agriculture), 1862 Institution, 1890 Institution, and 1994 
Institution. (Section 7501)
      The Conference substitute amends section 1404 of the 
NARETPA to define Hispanic-serving agricultural colleges and 
universities, Hispanic-serving institution, and NLGCA 
Institutions (non-land-grant colleges of agriculture), and to 
expand the definition of `college' and `university' to include 
research foundations maintained by a college or university. 
(Section 7101)
      The Conference substitute amends section 251 of the 
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6971) to define the terms `capacity and infrastructure program' 
and `competitive program'. (Section 7511)

(2) Budget submission and funding

      The House bill requires the President to submit with the 
annual budget request a single line item reflecting the total 
funding requested for competitive programs for the fiscal year 
and the previous five fiscal years. The capacity program 
critical base funding request should be apportioned among 
programs based on priorities established by the Under Secretary 
of Research, Education, and Economics, and the Directors of the 
National Agricultural Research Program Office (NARPO). 
Additional funds requested should enhance 1890 institutions, 
1994 institutions, small 1862 institutions, ASCARR 
institutions, and Hispanic-serving agricultural colleges and 
universities. The competitive program critical base funding 
request should be apportioned among programs based on 
priorities established by the Under Secretary and Directors of 
NARPO. Additional funds requested should support the study of 
emerging problems and their solutions. Necessary funds are 
authorized to be appropriated. Competitive programs under this 
section include only those requested by the President for 
funding. (Section 7102)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to include the total amount requested by the 
President for the research, extension, and education activities 
of the Research, Education, and Economics (REE) mission area of 
the Department in a single budget line item. The Conference 
substitute recommends that out of funds above the capacity and 
infrastructure critical base funding level, budgetary emphasis 
should be placed on certain institutions; and out of funds 
above the competitive program critical base funding level, 
budgetary emphasis should be placed on emerging problems. 
(Section 7506)
      The Managers recognize the numerous benefits of 
competitive research programs and have supported the expansion 
of funding for these programs. The Managers encourage the 
Department to make every effort to increase support for 
competitive programs while maintaining the needs of capacity 
and infrastructure programs when making budgetary decisions.
      The Managers expect the Secretary to review, in 
conjunction with the consultative panel on the Extension Indian 
Reservation Program (also known as the Federally Recognized 
Tribes Extension Programs), the demand for and status of 
extension services on Indian reservations and reflect that need 
in their budget submission.

(3) Additional purposes of agricultural research and extension

      The House bill amends section 1403 of the NARETPA to add 
the following to the purposes of agricultural research and 
extension: integrating and organizing agricultural research, 
extension, education, and related programs to respond to 21st 
century challenges; continuing to meet the needs of society 
from a local, tribal, State, national, and international 
perspective; minimizing duplication and maximize coordination 
of the program at all levels; positioning the research, 
extension, education, and related programs to expand the 
portfolio to increase its contribution to society. (Section 
7103)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision.

(4) National Agricultural Research Program Office

      The House bill establishes six research Program Offices, 
collectively known as the ``National Agricultural Research 
Program Office'' (NARPO) within the office of the Under 
Secretary of Agriculture for Research, Education, and 
Economics. The NARPO will coordinate the programs and 
activities of the research agencies within the mission area to 
the maximum extent practicable. The NARPO will include the 
following offices:
            (1) Renewable energy, resources, and environment;
            (2) Food safety, nutrition, and health;
            (3) Plant health and production and plant products;
            (4) Animal health and production and animal 
        products;
            (5) Agriculture systems and technology; and
            (6) Agriculture economics and rural communities.
      Each research program office will have a director 
appointed by the Under Secretary. The requirements to qualify 
for one of the director positions include performance of 
outstanding research, extension, or education in agriculture or 
forestry, a doctoral-level degree, and other standards as 
required for appointment to a senior level of the competitive 
service.
      The Directors will formulate programs, assess workforce 
needs, cooperate with the National Agricultural Research, 
Extension, Education, and Economics Advisory Board (NAREEE 
Advisory Board) in planning for personnel needs, develop 
strategic planning and priorities for Department-wide research, 
extension, education, and related activities, and communicate 
with program beneficiaries.
      The Under Secretary, along with the Directors, and in 
consultation with the NAREEE Advisory Board, will direct and 
coordinate programs within relevant departmental agencies to 
focus on understanding program problems and opportunities, and 
addressing those problems along with national, regional, and 
local priorities.
      The Under Secretary will coordinate with the Directors 
And receive the advice of the NAREEE Advisory Board to ensure 
that programs are integrated and coordinated.
      The Under Secretary will fund each Program Office with 
Appropriated funds made available to the agencies within the 
mission area. The total number of staff for all Program Offices 
will not exceed 30 full time positions and will have to be 
filled by current positions.
      The Under Secretary will integrate leadership functions 
from existing program offices to ensure that program offices 
are the primary program leaders.
      The Under Secretary will develop and implement specialty 
crop research activities, facilitate information delivery, and 
ensure coordination among research initiatives related to 
specialty crops. (Section 7104)
      The Senate amendment requires coordination between the 
Agricultural Research Service (ARS) and the National Institute 
of Food and Agriculture (NIFA)--formerly the Cooperative State 
Research, Education, and Extension Service (CSREES). The Under 
Secretary for Research, Education, and Economics will 
coordinate the programs under the authority of the 
Administrator of ARS and the Director of NIFA. The staff of the 
Administrator and the Director, including national program 
leaders, are required to meet on a regular basis to: increase 
coordination and integration of research programs at ARS and 
the research, extension, and education programs of NIFA; 
coordinate responses to emerging issues; minimize unnecessary 
duplication of work and resources at the staff level of each 
agency; use the extension and education program to deliver 
knowledge to stakeholders; address critical needs facing 
agriculture; and focus the research, extension, and education 
funding strategy of the Department. An annual report to 
Congress is required on efforts to increase coordination 
between ARS and NIFA.
      The Undersecretary for Research, Education, and Economics 
is charged with undertaking a roadmap to identify major 
opportunities and gaps in agricultural research, extension, and 
education and to use this roadmap to set the research agenda 
and recommend funding levels for programs in this mission area 
of the Department.
      Such sums necessary for activities undertaken to develop 
the roadmap are authorized. (Sections 7402)
      The Conference substitute adopts the House provision with 
an amendment to change the name of the name of the office to 
the Research, Extension, and Education Office (REEO) and to 
integrate it into the office of the Under Secretary for 
Research, Education, and Economics. The Conference substitute 
also captures the roadmap from the Senate amendment.
      The Conference substitute requires the Under Secretary 
for Research, Education, and Economics to have specialized 
training or significant experience in agricultural research, 
education, and economics. The Under Secretary is designated as 
the chief scientist of the Department and is tasked with the 
coordination of the research, education, and extension 
activities of the Department.
      The Conference substitute organizes the REEO into six 
Divisions:
            (1) Renewable energy, natural resources, and 
        environment;
            (2) Food safety, nutrition, and health;
            (3) Plant health and production and plant products;
            (4) Animal health and production and animal 
        products;
            (5) Agriculture systems and technology; and
            (6) Agriculture economics and rural communities.
      Each Division will be led by a Division Chief. The 
Division Chiefs are to be selected by the Under Secretary to 
promote leadership and professional development, to enable 
personnel to interact with other agencies of the Department, 
and to allow for the rotation of Department personnel into the 
position of Division Chief. Each Division Chief is required to 
have conducted exemplary research, extension, or education in 
the field of agriculture or forestry and is required to have 
earned an advanced degree at an institution of higher 
education. Each Division Chief is limited to a four-year term 
of service. The duties of each Division Chief include 
addressing the agricultural research, extension, and education 
needs and priorities within the Department and communicating 
with stakeholders, as well as the development of the roadmap as 
described in section 7504 of this Act. (Section 7511 and 
Section 7504)
      The Managers expect the REEO to be staffed and funded 
from appropriations made available to the agencies within the 
REE mission area. There is concern that the REEO will evolve 
into a new layer of bureaucracy. To address this, the Managers 
have included language to limit the number of staff positions 
for the REEO to 30 full-time current positions.
      The Managers expect the REEO Divisions to coordinate the 
research, extension, and education activities across the 
Department. The Managers expect the Division Chiefs of each 
office to: coordinate the functions of intramural and 
extramural research, extension, and education programs to 
ensure the maximum integration of activities; and to formulate 
programs, assess workforce needs, and cooperate with the 
agencies of the REE mission area and the NAREEE Advisory Board 
in developing strategic planning and priorities for the 
Department.
      The Managers expect that once REEO is operational, the 
Division Chiefs will be able to track, report, and identify 
research gaps, unnecessary duplication among programs, and 
assess the needs for immediate, emerging, and future needs for 
research, extension, and education programs.

(5) Establishment of competitive grant programs under the National 
        Institute for Food and Agriculture

      The House bill establishes the NIFA within CSREES to 
administer all competitive programs as defined in section 7101 
of this Act. (Section 7105)
      The Senate amendment transfers all authorities under 
CSREES to NIFA, and all programs currently under CSREES will 
continue under NIFA. NIFA will be headed by a Director, who is 
required to report to and consult with the Secretary on the 
research, extension, and education activities of NIFA. The 
Director will work with the Under Secretary for Research, 
Education, and Economics to ensure proper coordination and 
integration of all research programs that are within the 
responsibility of the Department.
      The Senate amendment establishes four offices at NIFA to 
increase competitive grant opportunities and re-establish the 
importance of the land-grand college and university system. 
First, the Office of the Agricultural Research, Extension, and 
Education Network administers all infrastructure programs (also 
known as capacity programs) such as those funded by formula 
funds at state agricultural experiment stations and the 
extension service. Second, the Office of Competitive Programs 
for Fundamental Research administers competitive programs that 
fund fundamental (basic) food and agricultural research, such 
as the National Research Initiative's basic research projects. 
Third, the Office of Competitive Programs for Applied Research 
administers competitive programs for applied food and 
agricultural research. Fourth, the Office of Competitive 
Programs for Education and Other Purposes administers 
competitive programs for education and other fellowships. The 
Director of NIFA has the discretion to divide programs that 
intersect more than one competitive program office.
      The Senate amendment authorizes appropriations for NIFA, 
above the authorizations of individual programs, to be 
allocated according to recommendations in the roadmap to be 
developed by the Under Secretary of Research, Education and 
Economics under section 7402 of this Act.
      The Senate amendment includes a series of conforming 
amendments to modify each place in current law to reflect the 
change from ``Cooperative State Research, Education, and 
Extension Service'' to ``National Institute of Food and 
Agriculture''. (Section 7401)
      The Conference substitute adopts the Senate provision to 
modify the appointment, supervision, compensation, and 
authorities of the Director of NIFA and to modify the 
organization of offices under NIFA. It also modifies the 
programs under the definition of ``capacity and infrastructure 
program'' and ``competitive program''.
      The Conference substitute provides that NIFA will be 
established by October 1, 2009. The Director of NIFA is 
required to be a distinguished scientist and will be appointed 
by the President. The Director is required to report to the 
Secretary or the designee of the Secretary and will serve a 
six-year term, subject to reappointment for an additional six-
year term.
      The Conference substitute also provides the Director with 
discretion to organize NIFA into offices and functions to 
administer fundamental and applied research and extension and 
education programs. The NIFA Director is required to ensure an 
appropriate balance between fundamental and applied research 
programs, and is required to promote the use and growth of 
competitively awarded grants.
      The Conference substitute provides an authorization of 
appropriations for NIFA without fiscal year limitation, in 
addition to funds appropriated to each program administered by 
the Institute. The appropriated funding is required to be 
allocated according to recommendations in the roadmap described 
in section 7504 of this Act.
      The Managers are concerned about the visibility of 
competitive research grants, the increasing demands placed on 
the land-grant system, and the weakening financial support of 
both competitive grants and formula funds. By restructuring 
CSREES, the Managers intend for NIFA to raise the profile of 
agricultural research, extension, and education. The Managers 
believe that NIFA will be commensurate in stature with other 
grant-making agencies across the Federal government, such as 
the National Institutes of Health and the National Science 
Foundation. The Managers intend for NIFA to be an independent, 
scientific, policy-setting agency for the food and agricultural 
sciences, which will reinvigorate our nation's investment in 
agricultural research, extension, and education.
      The Managers are concerned about the balance between 
fundamental and applied research at the Department. The 
Managers note that the Conference substitute gives the Director 
of NIFA discretion to establish offices, to set appropriate 
policy, and to address problems that agricultural research, 
extension, and education can help solve. In particular, the 
Managers intend that the Director place emphasis on fundamental 
research because this type of research is the engine and 
cornerstone for all other types of research. Although 
fundamental research across the sciences is funded by the 
National Science Foundation, the Managers expect NIFA to play a 
larger role in funding this type of research. However, the 
Managers recognize that without applied research, the fruits of 
fundamental research would never be used to solve the pressing 
needs of the public. Therefore, the Managers intend for the 
Director to carefully analyze the needs of the agricultural 
research, extension, and education system and address them 
accordingly by allocating appropriate staff and resources 
within NIFA. (Section 7511)

(6) Merging of IFAFS and NRI

      The House bill combines the Initiative for Future 
Agriculture and Food Systems (IFAFS) with the National Research 
Initiative (NRI) by repealing section 401 of the Agricultural 
Research, Extension, and Education Reform Act of 1998, except 
for section 401(b)(3) of that Act which will remain in effect, 
and incorporating the priorities under section 401 into 
subsection (b) of the Competitive, Special, and Facilities 
Research Grant Act.
      This section states that competitive grants authorized 
under the new program are to be available to State agricultural 
experiment stations, all colleges, universities, university 
research foundations, research institutions and organizations, 
Federal agencies, national laboratories, private organizations, 
corporations, and individuals.
      The term of any grant received under this program will 
not exceed 10 years. All grant awards are to be made on the 
basis of peer and merit review. Funds may not be used for 
construction.
      Within the combined program, there will be two separate 
programs for basic and applied research, to be referred to as 
NRI and IFAFS respectively. Out of the funds made available to 
the combined program, 60 percent will fund NRI and 40 percent 
will fund IFAFS.
      Within the NRI allocation, funding will be allocated as 
follows: 30 percent for multidisciplinary teams; 20 percent for 
mission-linked systems research; not less than 10 percent for 
education and research opportunities. The offer or availability 
of matching funds shall not be taken into account when making a 
grant. The match requirement may be waived in certain cases.
      Matching funds will be required for IFAFS grants if the 
grant is for applied, commodity-specific research and not 
national in scope.
      In addition to NRI grants, the Secretary may conduct a 
program in agricultural, food, and environmental sciences in a 
variety of specified categories. Funding made available under 
current law for IFAFS will be transferred to this new combined 
program. The House bill authorizes $500,000,000 to be 
appropriated and to remain available until expended for 
obligations incurred in that fiscal year.
      This section repeals the authority for construction of 
non-Federal agricultural research facilities with appropriated 
Federal funds. (Section 7106)
      The Senate amendment amends Section 401 of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 to add sustainable and renewable agriculture-based energy 
production, ecosystem services, and beginning farmers and 
ranchers to the purposes of IFAFS.
      This section strikes a provision allocating $200,000,000 
per year in mandatory funds for IFAFS and provides $45,000,000 
in mandatory funds for IFAFS to be obligated 30 days after the 
enactment of the farm bill. This section requires 32 percent of 
appropriated funds for the NRI to go towards IFAFS grants if 
funds are not appropriated or obligated for IFAFS. (Section 
7201)
      The Senate amendment amends the Competitive, Special, and 
Facilities Research Grant Act to add research on agricultural 
genomics and biotechnology, classical animal and plant 
breeding, beginning farmers and ranchers, and the judicious use 
of antibiotics to the research priorities of the NRI.
      This section modifies the availability of grant funds for 
classical plant and animal breeding to ten years and 
establishes National Research Support Project-7 for research on 
drugs for use in minor animal species. (Section 7307)
      The Conference substitute adopts the House provision with 
an amendment to replace subsection (b) of the Competitive, 
Special, and Facilities Research Grant Act to create a new 
program, titled the ``Agriculture and Food Research 
Initiative'' (AFRI), to award competitive grants for 
fundamental and applied research, extension, and education to 
address food and agricultural sciences. The program combines 
the priority areas of the NRI with the purposes and priority 
areas of IFAFS. There are six priority areas in AFRI:
            (1) Plant health and production and plant products;
            (2) Animal health and production and animal 
        products;
            (3) Food safety, nutrition, and health;
            (4) Renewable energy, natural resources, and 
        environment;
            (5) Agriculture systems and technology; and
            (6) Agriculture economics and rural communities.
      The term of competitive grants awarded under AFRI may not 
exceed 10 years.
      Under AFRI, the Secretary will seek proposals to conduct 
research, extension, or education activities in a specific 
priority area, determine the relevance and merit of proposals, 
and award grants on the basis of merit, quality, and relevance 
as determined by experts in the specific subject area.
      AFRI funds are to be allocated in the following manner: 
60 percent will be made available for fundamental research and 
40 percent will be made available for applied research. Of the 
allocation for fundamental research, not less than 30 percent 
will be made available for multidisciplinary research and not 
more than two percent will be made available for equipment 
grants.
      Grants awarded through AFRI may also be used to assist in 
the development of capabilities in the agricultural, food, and 
environmental sciences to certain institutions, investigators, 
and faculty members where such development is necessary.
      Eligible entities that may receive grants through AFRI 
include State agricultural experiment stations, colleges and 
universities, university research foundations, other research 
institutions and organizations, Federal agencies, national 
laboratories, private organizations or corporations, 
individuals, or groups thereof.
      AFRI funds are prohibited from being used for the 
construction, acquisition, remodeling, or alteration of a 
facility or building.
      For equipment grants funded through AFRI, the cost of the 
equipment required may not exceed 50 percent of the Federal 
funds. The Secretary may waive this matching requirement under 
specified conditions. For grants awarded to conduct applied 
research that is commodity-specific and not of national scope, 
the grant is required to be matched with equal matching funds 
from a non-Federal source.
      The authorization level for AFRI is set at $700,000,000 
from fiscal year 2008 through fiscal year 2012, of which not 
less than 30 percent is required to be made available for 
integrated research. (Section 7406)
      The Managers expect that in providing an annual 
authorization of appropriations of $700,000,000 that AFRI will 
receive substantial funding to carry out its purposes in the 
annual appropriations process. NRI and IFAFS have been 
consistently underfunded despite the growing list of identified 
needs in agricultural research, extension, and education.
      The Managers created AFRI to enhance the work funded by 
NRI and IFAFS. As such, AFRI should receive the combined level 
of authorized and mandatory funding that NRI and IFAFS, 
respectively, were to receive in previous fiscal years. The 
Managers expect that AFRI be funded at increasing levels each 
fiscal year to meet identified priority agriculture research, 
extension and education demands.
      The Managers are aware of the importance of supporting 
public sector conventional plant and animal breeding, as 
evidenced by the specific mention of this priority under the 
``plant health and production and plant products'' and ``animal 
health and production and animal products'' priorities in AFRI. 
The Managers intend that the term ``conventional breeding,'' 
also known as ``classical breeding,'' refers to breeding 
techniques which rely on creating an organism with desirable 
traits through controlled mating and selection. Because 
conventional breeding is critical to the development of seeds 
and breeds that are well adapted to local conditions and 
changing environmental constraints, these efforts are important 
to the food and agriculture sector. The Managers are aware that 
participatory breeding programs, where producers are involved 
in the process of developing new plant varieties and animal 
breeds, yield varieties and breeds that are better adapted to 
local environments. The Managers encourage an emphasis on 
funding of conventional plant and animal breeding as part of 
the new AFRI.
      The Managers are aware of the need for integrated 
research, extension, and education activities to stimulate 
entrepreneurship across rural America to support business 
development, improve skills of current and emerging 
entrepreneurs, expand access to capital, and build 
entrepreneurial networks. Under the priority area of 
``agriculture economics and rural communities,'' AFRI includes 
``rural entrepreneurship'' to increase competitive funding for 
integrated entrepreneurship activities. The Managers intend for 
this priority area to include both agricultural and rural 
development ventures, including strengthening non-farm self-
employment for farm and rural populations.
      The Managers intend that most program areas within AFRI 
would have grant terms of short duration. However, the Managers 
are aware that there are areas of research where longer-term 
grants are needed, such as conventional plant and animal 
breeding, environmental research, and nutrition research. The 
Managers expect the Secretary to use 10-year grant terms only 
when it is critical for long-term systems research.
      The Managers encourage the Director of NIFA to continue 
to support National Research Support Project-7 and to work 
cooperatively with the Center for Veterinary Medicine of the 
Food and Drug Administration to facilitate the development and 
approval of drugs for minor species and minor uses for major 
species. (Section 7406)
      In order to improve the Department's capacity to develop 
programs designed to address critical and emerging issues, 
leverage Federal resources, and promote public and private 
sector participation, Congress created an Integrated Research, 
Education, and Extension Competitive Grants Program in 1998. 
The Managers continue to support this important competitive 
grants program and have extended the authorization for these 
activities in section 7306 of this Act. To further expand on 
these activities, the Managers have included a provision in 
this section which directs that not less than 30 percent of the 
funds made available to AFRI be used for integrated research, 
extension, and education competitive grants. It is the intent 
of the Managers that with these additional funds, the 
Department will be able to expand the number and scope of 
programs supported under this authority.

(7) Capacity Building Grants for ASCARR Institutions

      The House bill establishes a competitive grant program 
for ASCARR Institutions to maintain and expand education, 
outreach, and research capacity relating to agriculture, 
renewable resources, and other similar fields. Necessary sums 
are authorized to be appropriated. (Section 7107)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to add a new section, 1473F, to NARETPA, and to 
replace the term ``ASCARR'' with the term ``NLGCA,'' an 
abbreviation for ``non-land-grant colleges of agriculture.'' 
(Section 7138)

(8) Establishment of research laboratories for animal disease

      The House bill authorizes the Secretary to establish 
animal disease research laboratories, and to the extent that an 
animal disease constitutes a threat to the livestock industry, 
authorizes the Secretary to conduct research, diagnostics, and 
other activities. This section prohibits a person, State, or 
Federal agency from importing, transporting, or storing at a 
research facility a live virus that the Secretary determines to 
be a threat to livestock, such as Foot and Mouth Disease. The 
Secretary may, however, import, transport, or store such a live 
virus and may also allow for a person, State, or Federal agency 
to do the same if it is in the public interest. Necessary sums 
are authorized to be appropriated. (Section 7108)
      The Senate amendment requires the Secretary to issue a 
permit to the Department of Homeland Security for work on live 
Foot and Mouth Disease virus at the National Bio- and Agro-
Defense Laboratory. This section allows the Secretary to 
invalidate the permit if research is not conducted in 
accordance with its regulations. This section clarifies that 
the suspension, revocation, or impairment of the permit is only 
to be made by the Secretary of Agriculture and is a 
nondelegable function. (Section 11016)
      The Conference substitute adopts the Senate provision 
with an amendment to replace the term ``National Bio- and Agro-
Defense Laboratory'' with ``any facility that is a successor to 
the Plum Island Animal Disease Center and charged with 
researching high-consequence biological threats involving 
zoonotic and foreign animal diseases.'' (Section 7524)

(9) Grazinglands Research Laboratory

      The House bill requires that Federal land and facilities 
currently administered by the Department as the Grazinglands 
Research Laboratory shall not be declared excess or surplus 
property. (Section 7109)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to sunset the provision at the end of fiscal year 
2012. (Section 7502)

(10) Research training

      The House bill requires plant genetic researchers that 
receive certain federal funds to complete an approved training 
program. (Section 7110)
      The Senate has no comparable provision.
      The Conference substitute deletes the House provision.

(11) Fort Reno Science Park Research Facility

      The House bill allows the Secretary to lease land at the 
Grazinglands Research Laboratory to the University of Oklahoma. 
(Section 7111)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7503)

(12) Assessing the nutritional composition of beef products

      The House bill allows the Secretary to award a grant, 
contract, or other agreement to a land-grant university to 
update the Nutrient Composition Handbook for Beef. Necessary 
sums are authorized to be appropriated. (Section 7112)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision.

(13) Sense of Congress regarding funding for human nutrition research

      The House bill states that it is the sense of Congress 
that human nutrition research has the potential for improving 
the health of Americans. (Section 7113)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision.

(14) Advisory Board

      The House bill amends Section 1408(g)(1) of NARETPA by 
increasing the maximum annual appropriations for the NAREEE 
Advisory Board to $500,000. (Section 7201)
      The Senate amendment amends Section 1408 of NARETPA by 
increasing the maximum annual appropriations for the NAREEE 
Advisory Board to $500,000 and to change the membership of the 
board from 31 to 24 members. The Senate amendment mandates that 
members representing the following organizations are no longer 
to be members of the board: a national animal commodity 
organization; a national crop commodity organization; a 
national aquaculture association; a non-land grant college or 
university with a historic commitment to research in the food 
and agricultural sciences; the portion of the scientific 
community not closely associated with agriculture; an agency 
within the Department that lacks research capabilities; a 
research agency of the Federal Government other than the 
Department; and national organizations directly involved in 
agricultural research, extension, and education. One member 
actively engaged in aquaculture is added to compensate for the 
loss of a representative from a national aquaculture 
association. (Section 7002 and Section 7401)
      The Conference substitute adopts the Senate provision 
with an amendment to include a member representing NLGCA 
institutions; a member actively engaged in the production of a 
food animal commodity recommended by a coalition of national 
livestock organizations; a member actively engaged in the 
production of a plant commodity recommended by a coalition of 
national crop organizations; and a member actively engaged in 
aquaculture recommended by a coalition of national aquaculture 
organizations. (Section 7102)

(15) Advisory Board termination

      The House bill (section 7202) and the Senate amendment 
(section 7002) extend section 1408(h) of NARETPA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7102)

(16) Renewable Energy Committee

      The House bill adds a new section, 1408B, to NARETPA that 
requires the executive committee of the NAREEE Advisory Board 
to establish and appoint initial members to a permanent 
renewable energy subcommittee responsible for studying the 
research, extension, and economics programs affecting the 
renewable energy industry. The renewable energy committee will 
submit annual reports to the Board with the committee's 
findings and recommendations.
      This section states that the Renewable Energy 
Subcommittee shall coordinate with the Biomass Research and 
Development Act Technical Advisory Committee.
      This section states also that when preparing the annual 
budget recommendations for the Department, the Secretary shall 
take into account the recommendations made by the committee and 
adopted by the NAREEE Advisory Board. (Section 7203)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to make technical changes in the Renewable Energy 
Committee. (Section 7104)

(17) Specialty Crop Committee Report

      The House bill amends section 1408A(c) of NARETPA by 
expanding the list of recommendations the Specialty Crops 
Subcommittee must make annually to the NAREEE Advisory Board to 
include economic analyses of the specialty crops sector and 
data that provides applied information useful to specialty crop 
growers. (Section 7204)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to make technical changes. (Section 7103)

(18) Inclusion of UDC grants and fellowships for food and agricultural 
        sciences education

      The House bill amends section 1417 of NARETPA by adding 
the University of the District of Columbia (UDC) as an eligible 
university to compete for food and agricultural sciences 
education grants and fellowships. (Section 7205)
      The Senate amendment is the same as the House provision 
with technical differences. (Section 7004)
      The Conference substitute adopts the Senate provision. 
(Section 7106)

(19) Grants and fellowships for food and agricultural Sciences 
        Education

      The House bill amends section 1417(j) of NARETPA by 
adding agriculture programs for grades K-12 to the purposes of 
these grants. The current authorization of appropriations of 
$60,000,000 for each fiscal year is extended through 2012. This 
section requires a report on the distribution of funds to 
teaching programs. (Section 7206)
      The Senate amendment is the same as House provision with 
technical differences. (Section 7007)
      The Conference substitute adopts the House provision with 
an amendment to require a biennial report. (Section 7109)

(20) Grants for research on production and marketing of alcohols and 
        industrial hydrocarbons from agricultural commodities and 
        forest products

      The House bill (section 7207) and the Senate amendment 
(section 7008) extend section 1419(d) of NARETPA through 2012.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal this section from current law. 
(Section 7110)

(21) Policy Research Centers

      The House bill amends section 1419A of NARETPA by 
including the Food Agricultural Policy Research Institute 
(FAPRI) and the Agricultural and Food Policy Center (AFPC) as 
eligible to receive grants under the policy research center 
authorization and extending the authorization of appropriations 
through 2012. (Section 7208)
      The Senate amendment amends section 1419A of NARETPA by 
including FAPRI, the AFPC, the Rural Policy Research Institute, 
and the Community Vitality Center as eligible to receive grants 
under the policy research center authorization and extending 
the authorization of appropriations through 2012. (Section 
7009)
      The Conference substitute adopts the Senate provision 
with an amendment to remove the Community Vitality Center, add 
the Drought Mitigation Center, and clarify that the specialty 
crops sector should be covered by the centers. (Section 7111)
      The Managers recognize specialty crops are a vital 
component of agriculture in the Midwestern region of the United 
States and encourage the development of a collaborative 
research program at a land-grant university to support 
specialty crop research focused on genetic resource 
development, sustainable production practices, and improved 
marketing systems. The Managers recognize the resources and 
expertise available among the Midwestern land-grant 
universities, such as Purdue University, and encourage the 
Secretary to support continued expansion of the specialty crop 
research, extension, and education capabilities of these 
institutions.

(22) Human Nutrition Intervention and Health Promotion Research Program

      The House bill (section 7209) and the Senate amendment 
(Section 7010) extend section 1424(d) of NARETPA through 2012.
      The Conference substitute adopts the House provision. 
(Section 7114)

(23) Pilot Research Program to combine medical and agricultural 
        research

      The House bill (section 7210) and the Senate amendment 
(section 7011) extend section 1424A(d) of NARETPA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7115)
      The Managers recognize the potential for the development 
of pharmaceuticals for human use through the use of bovine 
blood products. The usefulness of bovine blood products has 
resulted from a number of technical advances. These advances 
ensure the proper and necessary level of control of the animal-
based raw materials so that they can now meet or exceed the 
requirements to develop safe and efficacious pharmaceuticals 
for human use. The Managers encourage the Secretary to fund 
pilot projects through this authorization to accelerate the 
development of pharmaceuticals for human use from bovine blood 
products.

(24) Nutrition Education Program

      The House bill authorizes appropriations of $90,000,000 
for each fiscal year through 2012 to carry out the food and 
nutrition education program. (Section 7211)
      The Senate amendment has no comparable provision. 
(Section 7012)
      The Conference substitute deletes the House provision.

(25) Continuing animal health and disease research programs

      The House bill (section 7212) and the Senate amendment 
(section 7014) extend section 1433(a) of NARETPA through 2012.
      The Conference substitute adopts the House provision. 
(Section 7117)

(26) Cooperation among eligible institutions

      The House bill requires the Secretary to encourage 
cooperation among institutions eligible for funding under 
continuing animal health and disease research programs in 
setting research priorities. (Section 7213)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7118)

(27) Appropriations for research on national or regional problems

      The House bill (section 7214) and the Senate amendment 
(section 7015) extend section 1434(a) of NARETPA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7119)

(28) Authorization level of extension at 1890 land-grant colleges

      The House bill (section 7215) and the Senate amendment 
(section 7017) modify section 1444(a)(2) of NARETPA by 
increasing from 15 to 20 percent the Smith-Lever (extension) 
formula funding allocated to 1890 institutions.
      The Conference substitute adopts the House provision. 
(Section 7121)

(29) Authorization level for agricultural research at 1890 land-grant 
        colleges

      The House bill (section 7216) and the Senate amendment 
(section 7018) modify section 1445(a)(2) of NARETPA by 
increasing from 25 to 30 percent the Hatch Act (research) 
formula funding that is allocated to 1890 institutions.
      The Conference substitute adopts the Senate provision. 
(Section 7122)

(30) Grants to upgrade agriculture food sciences facilities at the 
        District of Columbia Land-Grant University

      The House bill (section 7217) and the Senate amendment 
(section 7020) amend NARETPA by adding an authorization of 
$750,000 in annual appropriations for grants to be made to UDC 
to acquire, alter, or repair facilities or relevant equipment 
necessary for conducting agricultural research.
      The Conference substitute adopts the Senate provision. 
(Section 7124)

(31) Grants to upgrade agricultural and food sciences facilities at 
        1890 land-grant colleges, including Tuskegee University

      The House bill (section 7218) and the Senate amendment 
(section 7019) extend section 1447(b) of NARETPA through 2012.
      The Conference substitute adopts the House provision. 
(Section 7123)

(32) National research and training virtual centers

      The House bill (section 7219) and the Senate amendment 
(section 7021) extend section 1448 of NARETPA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7126)

(33) Matching funds requirement for research and extension activities 
        of 1890 institutions

      The House bill (section 7220) and the Senate amendment 
(section 7022) extend section 1455 of NARETPA through 2012.
      The Conference substitute adopts the House provision with 
an amendment to update current law and clarify the current 
requirement of providing equal matching funds from non-Federal 
sources. (Section 7127)

(34) Hispanic-serving institutions

      The House bill extends section 1455(c) of NARETPA through 
2012. (Section 7221)
      The Senate amendment amends section 1455 of NARETPA by 
removing the ability to receive a grant without a competitive 
application process. The modification also allows single 
institutions to receive grants. The annual appropriation is 
increased from $20,000,000 to $40,000,000 and the authorization 
of appropriations is extended through 2012. (Section 7023)
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes. (Section 7128)

(35) Hispanic-serving agricultural colleges and universities

      The House bill adds a new section, 1456, to NARETPA which 
establishes an endowment fund, an institutional capacity 
building grant program, and a competitive grant program to 
benefit Hispanic-serving agricultural colleges and universities 
(HSACUs).
      This section defines Hispanic-serving agricultural 
colleges and institutions as institutions that qualify as 
Hispanic-serving institutions under the Higher Education Act 
and offer an associate, bachelor, or other accredited degree in 
agricultural fields of study.
      This section authorizes necessary funds to be 
appropriated for the endowment fund, extension, and 
institutional capacity building, and competitive grants through 
2012. A formula for the distribution of appropriations is 
authorized for the endowment and maintenance of Hispanic-
serving agricultural colleges and universities in the same 
manner prescribed under the Second Morrill Act. (Section 7222)
      The Senate amendment is similar to the House provision 
with technical differences. (Section 7024)
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes. (Section 7129)

(36) International agricultural research, extension, and education

      The House bill (section 7223) and the Senate amendment 
(section 7025) modify section 1458(a) of NARETPA by allowing 
the Secretary to give priority under this program to 
institutions with existing memoranda of understanding or 
agreements with U.S. institutions or State or Federal agencies. 
This section includes HSACUs as organizations the Secretary may 
enter into agreements with to help develop a sustainable global 
agricultural system. This section adds HSACUs to the list of 
universities eligible for support to do collaborative research 
with other countries on U.S. agricultural competitiveness. This 
section also adds HSACUs to the list of colleges and 
universities where Federal scientists are involved with 
research conducted internationally. This section establishes a 
program to provide fellowships to U.S. or foreign students to 
study at foreign agricultural colleges.
      The Conference substitute adopts the Senate provision 
with an amendment to add anti-hunger and nutrition efforts and 
increased quantity, quality, and availability of food to the 
purposes of agreements between eligible institutions or 
organizations and the Department. (Section 7130)

(37) Competitive grants for international agricultural science and 
        education programs

      The House bill (section 7224) and the Senate amendment 
(section 7026) extend section 1459A(c) of the NARETPA through 
2012.
      The Conference substitute adopts the House provision. 
(Section 7131)

(38) Limitation on indirect costs for agricultural research, education, 
        and extension programs

      The House bill amends section 1462(a) of NARETPA to allow 
a recipient of any grant administered under the REE mission 
area, excluding those administered under the Small Business 
Act, to use up to 19 percent of Federal funds for indirect 
costs. (Section 7225)
      The Senate amendment amends section 1462(a) of NARETPA by 
raising from 19 to 30 percent the allowance of indirect costs a 
recipient institution can use from a competitive grant awarded 
by the Department. (Section 7027)
      The Conference substitute adopts the House provision with 
an amendment to increase the indirect cost limitation to 22 
percent. (Section 7132)

(39) Research equipment grants

      The House bill (section 7226) and the Senate amendment 
(section 7028) extend section 1462A(e) of NARETPA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7133)

(40) University research

      The House bill (section 7227) and the Senate amendment 
(section 7029) extend section 1463 of NARETPA through 2012. 
(Section 7227)
      The Conference substitute adopts the House provision. 
(Section 7134)

(41) Extension service

      The House bill (section 7228) and the Senate amendment 
(section 7030) extend section 1464 of NARETPA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7135)

(42) Supplemental and alternative crops

      The House bill (section 7229) and the Senate amendment 
(section 7032) extend section 1473D(a) of NARETPA through 2012.
      The Conference substitute adopts the House provision. 
(Section 7136)

(43) Aquaculture assistance programs

      The House bill extends section 1477 of NARETPA through 
2012. (Section 7230)
      The Senate amendment extends section 1477 of NARETPA 
through 2012 and amends section 1475(f) of the Act to 
prioritize the study and management of Viral Hemorrhagic 
Septicemia (VHS). (Section 7033)
      The Conference substitute adopts the House provision and 
adds VHS research as a high-priority item in section 7203 of 
this Act.
      The Managers are aware of the devastating impacts that 
VHS is having on freshwater fish populations in the United 
States. The Managers encourage the Department's Animal and 
Plant Health Inspection Service to coordinate its VHS 
management activities with State natural resource management 
agencies and tribes to research, develop, and implement a 
comprehensive set of priorities for managing VHS, including 
providing funds for research into the spread of the disease, 
surveillance, monitoring, risk evaluation, enforcement, 
screening, and management. (Section 7140)

(44) Rangeland research

      The House bill extends section 1483(a) of NARETPA through 
2012. (Section 7231)
      The Senate amendment extends section 1483(a) of NARETPA 
through 2012 and amends section 1480(a) of the Act by 
authorizing pilot programs to address natural resources 
management issues and facilitate the collection of information 
and analysis to provide information for improved management of 
public and private rangeland. (Section 7034)
      The Conference substitute adopts the House provision. 
(Section 7141)

(45) Special authorization for biosecurity planning and response

      The House bill (section 7232) and the Senate amendment 
(section 7035) extend section 1484(a) of NARETPA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7142)

(46) Resident instruction and distance education grants program for 
        insular area institutions of higher education

      The House bill (section 7233) and the Senate amendment 
(section 7036) extend sections 1490(f) and 1491 of NARETPA 
through 2012.
      The Conference substitute adopts the House provision. 
(Section 7143)

(47) Hispanic-serving institutions

      The House bill (section 7234) and the Senate amendment 
(section 7001) modify section 1404 of NARETPA to give the term 
``Hispanic-Serving Institution'' the same definition as section 
502(a) of the Higher Education Act of 1965.
      The Conference substitute adopts the House provision with 
an amendment to move it into the definitions section of this 
Act. (Section 7101)

(48) Specialty Crop Policy Research Institute

      The House bill amends section 1419A of NARETPA by 
establishing a Specialty Crop Policy Research Institute within 
FAPRI. The objectives are to produce and disseminate analyses 
of the specialty crop sector and an annual review on the state 
of the specialty crop industry. Necessary sums are authorized 
to be appropriated. (Section 7235)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to incorporate the purposes of this section into 
subsection (a)(1) of section 1419A of NARETPA. (Section 7111)

(49) Emphasis of Human Nutrition Initiative

      The House bill amends section 1424(b) of NARETPA (7 
U.S.C. 3174(b)) to add a new emphasis to the Human Nutrition 
Intervention and Health Promotion Research Program to examine 
the efficacy of agricultural programs in promoting the health 
of disadvantaged populations. (Section 7236)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7113)

(50) Grants to upgrade agriculture and food sciences facilities at 
        insular area land-grant institutions

      The House bill amends NARETPA by authorizing assistance 
to insular land-grant institutions to acquire, alter, or repair 
facilities or equipment for agricultural research. An 
appropriation of $8,000,000 is authorized for each fiscal year 
through 2012. (Section 7237)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7125)

(51) Veterinary medicine loan repayment

      The Senate amendment amends section 1415A of NARETPA by 
setting a deadline for rulemaking to implement the National 
Veterinary Medical Services Act (NVMSA). This section amends 
NVMSA to prioritize large and mixed animal practitioner 
shortages in rural communities and prohibits funds to be used 
for the existing Federal employee loan repayment program under 
5 U.S.C. 5379. (Section 7003)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to clarify the priorities within NVMSA and to 
disapprove of the transfer of funds from CSREES to the Food 
Safety and Inspection Service (FSIS). The funds are required to 
be transferred back CSREES from FSIS. (Section 7105)
      The Managers continue to be frustrated by the lack of 
progress by the Department in implementing NVMSA. When 
developing this legislation, the House Committee on Agriculture 
worked closely with the various agencies of the Department to 
ensure that the legislation was drafted in a manner in which it 
could be implemented and administered. During Committee 
consideration, amendments were included at the Department's 
request to ensure quick and efficient implementation. In a 
legislative report submitted by the Secretary of Agriculture, 
with the consent of the Office of Management and Budget, the 
Department reiterated its support and recommended that the 
legislation be enacted. More than $2,000,000 has been 
appropriated for this program, yet the Department has not taken 
steps to develop regulations to implement it. Instead, the 
Managers note that CSREES, to which authority to administer 
NVMSA had been delegated, chose to transfer funds appropriated 
for this important program to another agency of the Department 
to assist in loan repayment for Federal employees. While this 
funding transfer was technically within the authority of the 
NVMSA legislation, it was not in line with the intent of 
Congress in developing this legislation. The Managers 
disapprove of this funding transfer and expect the full amount 
of funds that were transferred to be returned. Likewise, 
amendments have been included in NVMSA to prevent further 
funding transfers.
      In a hearing held before the House Subcommittee on 
Livestock, Dairy, and Poultry on February 7, 2008, 
representatives of the Department were asked repeatedly if the 
Administration intended to propose legislation to amend NVMSA 
to speed its implementation. To date, no proposed legislation 
has been submitted, leading the Managers to conclude that the 
Department has sufficient funding and capability to implement 
and administer this law. The Managers have therefore included a 
deadline for the Department to propose regulations for NVMSA 
and expect the Department to meet this deadline without further 
delay.

(52) Expansion of Food and Agricultural Sciences Award

      The Senate amendment amends section 1417(i) of NARETPA by 
expanding the current National Agricultural Teaching Award to 
include research and extension. (Section 7006)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7108)

(53) Purposes and findings relating to animal health and disease 
        research

      The Senate amendment amends Section 1429 of NARETPA to 
add a purpose supporting research on the judicious use of 
antibiotics. (Section 7013)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(54) Animal Health and Disease Research Program

      The Senate amendment amends section 1434(b) of NARETPA by 
clarifying that 1890 institutions are eligible for animal 
health and disease research grants under this section. (Section 
7015)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7120)
      The Managers are concerned about arthropod-borne diseases 
that increasingly affect the U.S. livestock industry and 
wildlife. Consequently, the Managers expect the Agricultural 
Research Service to update the March 2005 feasibility study on 
the modernization of the arthropod-borne animal disease 
research laboratory.

(55) Farm management training and public farm benchmarking database

      The Senate amendment adds a new section, 1468, to NARETPA 
that establishes a National Farm Management Center to improve 
farm management knowledge and the skills of agriculture 
producers through an education program. It also authorizes the 
creation of a database that will allow for the comparison of 
farm management data among producers. This section authorizes 
annual appropriations for the center and database through 2012. 
(Section 7037)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to modify the Food, Agriculture, 
Conservation, and Trade Act of 1990 (FACT Act) and to allow the 
Secretary to make competitive research and extension grants for 
the purposes of the program. (Section 7208)
      The Managers recognize that the Center for Farm Financial 
Management at the University of Minnesota has a proven record 
of providing farm financial planning, marketing, and credit 
analysis and encourage the Department to continue to support 
its benchmarking efforts.

(56) Tropical and subtropical agricultural research

      The Senate amendment adds a new section, 1473E, to 
NARETPA that establishes a competitive program for research on 
tropical and subtropical agriculture. Annual appropriations for 
the program are authorized through 2012. (Section 7038)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision 
and adds tropical and subtropical research as a high priority 
item in Section 7203 of this Act.

(57) Regional centers of excellence

      The Senate amendment adds a new section, 1473F, to 
NARETPA that establishes regional centers of excellence, 
including a Poultry Sustainability Center of Excellence, funded 
by Federal, state, and industry funds to research a specific 
commodity. Annual appropriations are authorized for the centers 
through 2012. (Section 7039)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision 
and gives priority to regional centers of excellence that 
leverage funds from Federal, State, and private sector sources 
to research a specific agricultural commodity or concern under 
Section 7203 of this Act.

(58) National Drought Mitigation Center

      The Senate amendment adds a new section, 1473G, to 
NARETPA that authorizes the Secretary to enter into an 
agreement with the National Drought Mitigation Center. Annual 
appropriations are authorized for the Center through 2012. 
(Section 7040)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision 
and adds the National Drought Mitigation Center as one of the 
research institutions and organizations that is eligible to 
receive funding through the policy research center 
authorization in section 7111 of this Act.

(59) Agricultural development in the American-Pacific region

      The Senate amendment adds a new section, 1473H, to 
NARETPA that establishes consortia of institutions in the 
American-Pacific region to carry out integrated research, 
extension, and instruction programs in support of food and 
agricultural sciences. Annual appropriations are authorized for 
the consortia through 2012. (Section 7041)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision 
and adds agricultural development in the American-Pacific 
region as a high priority item in Section 7203 of this Act.

(60) Farm and ranch stress assistance network

      The Senate amendment adds a new section, 1473K, to 
NARETPA that establishes a farm and ranch stress assistance 
network to provide behavioral programs to participants in the 
U.S. agricultural sector. Annual appropriations are authorized 
for the network through 2012. (Section 7044)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to clarify the activities covered under this 
authorization and to make technical changes. (Section 7522)

(61) Rural entrepreneurship and enterprise facilitation

      The Senate amendment adds a new section, 1473L, to 
NARETPA to establish a program for the promotion of rural 
entrepreneurship, rural business development, and collaboration 
among rural entrepreneurs, local business communities, 
nonprofit organizations, and K-12 and higher education 
institutions. The program also provides rural entrepreneurs 
with technical assistance and access to capital, and it 
determines the best methods of entrepreneurial training. Annual 
appropriations for the program are authorized. (Section 7045)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(62) Seed distribution

      The Senate amendment adds a new section, 1473M, to 
NARETPA that establishes a program to distribute vegetable 
seeds to underserved communities free-of-charge. Annual 
appropriations are authorized for the program through 2012. 
(Section 7046)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to award grants on a competitive basis and to 
make technical changes. (Section 7523)

(63) Farm and ranch safety

      The Senate amendment adds a new section, 1473N, to 
NARETPA that establishes a grant program to determine how to 
decrease the incidence of injury and death on farms and 
ranches. Annual appropriations for the program are authorized 
through 2012. (Section 7047)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision 
and adds farm and ranch safety as a high priority item in 
section 7203 of this Act.

(64) Women and minorities in STEM fields

      The Senate amendment adds a new section, 1473O, to 
NARETPA that establishes a grant program to increase 
participation by women and underrepresented minorities from 
rural areas in science, technology, engineering, and 
mathematics fields (STEM fields). Annual appropriations for the 
program are authorized through 2012. (Section 7048)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision 
and adds women and minorities in STEM fields as a high priority 
item in section 7203 of this Act.

(65) Natural Products Research Program

      The Senate amendment adds a new section, 1473P, to 
NARETPA that establishes a research program for the discovery, 
development, and commercialization of pharmaceuticals and 
agrichemicals from natural products, including those from 
plant, marine, and microbial sources. Annual appropriations are 
authorized for the program. (Section 7049)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes. (Section 7525)

(66) International Anti-Hunger and Nutrition Program

      The Senate amendment adds a new section, 1473Q, to 
NARETPA that authorizes the Secretary to support nonprofit 
organizations that focus on promoting research concerning anti-
hunger and improved nutrition efforts internationally and 
increased quantity, quality, and availability of food. (Section 
7050)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision 
and adds the purposes of the Senate amendment to section 7130 
of this Act.

(67) Consortium for agricultural and rural transportation research and 
        education

      The Senate amendment adds a new section, 1473R, to 
NARETPA that establishes a research program focusing on 
critical rural and agricultural transportation and logistics 
issues facing agricultural producers and other rural 
businesses. Annual appropriations of $19,000,000 are authorized 
for each fiscal year through 2012. (Section 7051)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to give priority to institutions that apply 
as a group and to make technical changes. (Section 7529)

(68) Regional centers of excellence in food systems veterinary medicine

      The Senate amendment adds a new section, 1473S, to 
NARETPA that establishes a grant program for veterinary schools 
to support centers of emphasis in food systems veterinary 
medicine. Annual appropriations for the centers are authorized 
through 2012. (Section 7052)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision, 
adds food systems veterinary medicine as a high priority item 
in Section 7203 of this Act, and captures the purposes of the 
Senate amendment in the regional centers of excellence 
provision under section 7203 of this Act.

(69) National Genetics Resources Program

      The House bill extends section 1635(b) of the FACT Act 
through 2012. (Section 7301)
      The Senate amendment extends section 1635(b) of the FACT 
Act through 2012 and adds research on plant and animal breeding 
to the purposes and functions of this program as listed in 
section 1632 of the FACT Act. (Section 7101)
      The Conference substitute adopts the House provision. 
(Section 7201)

(70) National Agricultural Weather Information System

      The House bill extends section 1641(c) of the FACT Act 
through 2012. (Section 7302)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7202)
      The Managers recognize the importance of creating a 
southern mesonetwork of weather stations to support applied 
research in solar and wind energy production. The Managers are 
aware of the capabilities and experience of the Center for 
Earth and Environmental Studies at Texas A&M International 
University in this area and believe this institution could 
prove to be a valuable resource in the Rio Grande Valley.

(71) Partnerships

      The House bill amends section 1672(d) of the FACT Act by 
requiring that grant proposals received must be scientifically 
meritorious and involve cooperation of multiple entities in 
order to receive priority consideration under the High Priority 
Research and Extension Initiative. (Section 7303)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7203)

(72) Aflatoxin research and extension

      The House bill amends section 1672(e)(3) of the FACT Act 
by changing the existing grant description contained in current 
law to improve and commercialize aflatoxin control in corn and 
other crops. (Section 7304)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7203)

(73) High Priority Research and Extension Areas

      The House bill amends section 1672 of the FACT Act by 
adding the following to the High Priority Research and 
Extension Area Initiatives: farmed and wild cervid disease and 
genetic research; air emissions from livestock operations; 
swine genome project; cattle fever tick program; colony 
collapse disorder program; synthetic gypsum from power plants 
research; cranberry research program; sorghum research 
initiative; and a bean health research program. (Section 7305)
      The Senate amendment amends section 1672 of the FACT Act 
by adding the following to the High Priority Research and 
Extension Area Initiatives: Colony Collapse Disorder and 
Pollinator Research Program; Marine Shrimp Farming Program; 
Cranberry Research Program; Turfgrass Research Initiative; 
Pesticide Safety Research Initiative; Swine Genome Project; 
High Plains Aquifer Region; Cellulosic Feedstock Transportation 
and Delivery Initiative; Deer Initiative; Pasture-Based Beef 
Systems; Sustainable Agricultural Production for the 
Environment; Biomass-Derived Energy Resources; Brucellosis 
Control and Eradication; and Bighorn and Domestic Sheep Disease 
Mechanisms. (Section 7102)
      The Conference substitute adopts the Senate provision 
with an amendment to add the following to the list of high-
priority research and extension initiatives: Air Emissions from 
Livestock Operations; Swine Genome Project; Cattle Fever Tick 
Program; Synthetic Gypsum; Cranberry Research Program; Sorghum 
Research Initiative; Marine Shrimp Farming Program; Turfgrass 
Research Initiative; Agricultural Worker Safety Research 
Initiative; High Plains Aquifer Region; Deer Initiative; 
Pasture-Based Beef Systems Research Initiative; Agricultural 
Practices Relating to Climate Change; Brucellosis Control and 
Eradication; Bighorn and Domestic Sheep Disease Mechanisms; 
Agricultural Development in the American-Pacific Region; 
Tropical and Subtropical Agricultural Research; Viral 
Hemorrhagic Septicemia; Farm and Ranch Safety; Women and 
Minorities in STEM Fields; Alfalfa and Forage Research Program; 
Food Systems Veterinary Medicine; Biochar Research.
      The Conference substitute also strikes the following from 
section 1672 of the FACT Act: Brown citrus aphid and citrus 
tristeza virus research and extension; Mesquite research and 
extension; Red meat safety research and extension; Grain 
sorghum ergot research and extension; Low-bush blueberry 
research and extension; Wild pampas grass control, management, 
and eradication research and extension; Sheep scrapie research 
and extension; Forestry research and extension; Wind erosion 
research and extension; Crop loss research and extension; 
Harvesting productivity for fruits and vegetables; Agricultural 
marketing; Beef cattle genetics; Dairy pipeline cleaner; 
Development of publicly held plants and animal varieties; and 
Specialty crop research. (Section 7204)
      The Managers encourage the Secretary 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. This initiative may be carried 
out by a consortium that can include land-grant universities 
and veterinary schools with appropriate facilities and 
experience in husbandry and care of captive cervidae. The 
consortium may carry out research dedicated to developing 
vaccines for epizootic hemorrhagic disease and blue tongue 
disease in farmed deer and may work to map the deer genome with 
emphasis on the identification of genes that confer resistance 
or susceptibility to disease relevant to the production of 
farmed deer.
      The Managers recognize the unique needs of the 
Appalachian region for the Pasture-Based Beef Systems 
Initiative.
      The Managers intend that the term ``Caribbean and Pacific 
basins'' refers to the States of Hawaii and Florida, the 
Commonwealth of Puerto Rico, the United States Virgin Islands, 
American Samoa, Guam, the Commonwealth of the Northern Mariana 
Islands, the Federated States of Micronesia, the Republic of 
the Marshall Islands, and the Republic of Palau.
      The Managers intend that the term ``American-Pacific 
region'' refers to the States of Hawaii and Alaska, American 
Samoa, Guam, the Commonwealth of the Northern Mariana Islands, 
the Federated States of Micronesia, the Republic of the 
Marshall Islands, and the Republic of Palau.

(74) High priority research and extension initiative

      The House bill extends Section 1672(h) of the FACT Act 
through 2012. (Section 7306)
      The Senate amendment extends section 1672(h) of the FACT 
Act through 2012 and authorizes an annual appropriation of 
$20,000,000 for the Colony Collapse Disorder and Pollinator 
Research Program. (Section 7102)
      The Conference substitute adopts the House provision. 
(Section 7204)

(75) Nutrient management research and extension initiative

      The House bill amends section 1672A of the FACT Act by 
giving a priority to grant proposals that address unique 
regional concerns as eligible for priority treatment. The House 
bill also adds dairy cattle waste as a type of waste to be 
studied to develop new methods of managing air and water 
quality. The authorization of appropriations is extended 
through 2012. (Section 7307)
      The Senate amendment: establishes a consortium of land 
grant colleges in the northeast region to perform research on 
dairy nutrient management and energy production (Section 9023); 
establishes a Southwest regional dairy, environment, and 
private land program for the research, development, and 
implementation of solutions for issues faced by the dairy 
industry (Section 11092); and extends section 1672A of the FACT 
Act through 2012. (Section 7103)
      The Conference substitute adopts the House provision with 
an amendment to include the production of renewable energy from 
animal waste as an eligible activity to receive grants under 
this section. (Section 7205)
      The Managers recognize that different regions of the 
country have varying needs for both energy development and 
nutrient management, and that cooperative efforts by 
institutions and States will leverage available resources to 
address problems and identify solutions. The Managers therefore 
encourage the development of regional consortia in which 
partners would work together to accomplish the goals of 
developing viable nutrient management systems, energy products 
from manure, and to asses these systems for cost, performance, 
and function among dairy, poultry, and swine operations.

(76) Agricultural Telecommunications Program

      The House bill (section 7308) and the Senate amendment 
(section 7105) extend section 1673(h) of the FACT Act through 
2012.
      The Conference substitute adopts the House provision with 
an amendment to repeal section 1673 of the FACT Act. (Section 
7209)

(77) Assistive Technology Program for Farmers with Disabilities

      The House bill (section 7309) and the Senate amendment 
(section 7106) extend section 1680(c)(1) of the FACT Act 
through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7210)

(78) Organic research

      The House bill amends section 1672B of the FACT Act by 
expanding the Organic Agriculture Research and Extension 
Initiative to examine optimal conservation and environmental 
outcomes for organically produced agricultural products and to 
develop new and improved seed varieties that are particularly 
suited for organic agriculture. This section authorizes 
$25,000,000 in mandatory funding for each of fiscal years 2008 
through 2012. Appropriations of $25,000,000 are authorized for 
each of fiscal years 2009 through 2012. The Director of NARPO 
is to coordinate this program to avoid duplication. (Section 
7310)
      The Senate amendment amends Section 1672B of the FACT Act 
by authorizing mandatory funds of $16,000,000 per year for 
fiscal years 2008 through 2012 for the Organic Agriculture 
Research and Extension Initiative. (Section 7104)
      The Conference substitute adopts the House provision with 
an amendment to provide the initiative with a total of 
$78,000,000 in mandatory funds for fiscal year 2009 through 
fiscal year 2012. (Section 7206)
      Organic farming has the potential to capture atmospheric 
carbon and store it in the soil in the form of soil organic 
matter. The Managers encourage continued support of the 
research at the Rodale Institute regarding this research as it 
relates to certified organic standards.

(79) National Rural Information Center Clearinghouse

      The House bill (section 7311) and the Senate amendment 
(section 7107) extend section 2381(e) of the FACT Act through 
2012.
      The Conference substitute adopts the House provision. 
(Section 7212)

(80) New Era Rural Technology Program

      The House bill establishes a grant program for community 
colleges to develop an agriculture-based renewable energy and 
timber industry workforce. Annual appropriations are authorized 
for the program through 2012. (Section 7312)
      The Senate amendment adds a new section, 1473J, to 
NARETPA to establish a grant program for community colleges to 
develop an agriculture-based renewable energy and timber 
industry workforce and provides the definition of rural 
community college. Annual appropriations are authorized for the 
program through 2012. (Section 7043)
      The Conference substitute adopts the House provision with 
an amendment to make technical changes and to add a new 
section, 1473E, to NARETPA. (Section 7137)
      The Managers recognize the importance of developing a 
workforce to support the fields of bioenergy, agriculture-based 
renewable energy resources, and pulp and paper manufacturing. 
The Managers recognize that Alabama Southern Community College, 
Northeast Iowa Community College, Eastern Iowa Community 
College District, Hawkeye Community College, Neosho County 
Community College, Kennebec Valley Community College, Itasca 
Community College, York Technical College, Midstate Technical 
College, Jones County Junior College, Minnesota West Technical 
and Community College, Orangeburg-Calhoun Technical College, 
Horry-Georgetown Technical College, and Central Carolina 
Technical College are among the rural community colleges that 
have a proven record and the ability to develop and implement 
programs to supply certified technicians. The Managers 
encourage the Secretary to work with these community colleges 
to establish the New Era Rural Technology Program.

(81) Partnerships for high-value agricultural product quality research

      The House bill (section 7401) and the Senate amendment 
(section 7202) extend section 402(g) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (AREERA) 
through 2012.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal section 402 of AREERA. (Section 
7302)

(82) Precision agriculture

      The House bill (section 7402) and the Senate amendment 
(section 7203) extend section 403(i)(1) of AREERA through 2012.
      The Conference substitute adopts the House provision with 
an amendment to repeal section 403 of AREERA. (Section 7303)

(83) Biobased products

      The House bill (section 7403) and the Senate amendment 
(section 7204) extend section 404(e)(2) of AREERA through 2012.
      The Conference substitute adopts the House provision. 
(Section 7304)

(84) Thomas Jefferson Initiative for Crop Diversification

      The House bill (section 7404) and the Senate amendment 
(section 7205) extend section 405(h) of AREERA through 2012.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal section 405 of AREERA. (Section 
7305)

(85) Integrated Research, Education, and Extension Competitive Grants 
        Program

      The House bill (section 7405) and the Senate amendment 
(section 7206) extend section 406(f) of AREERA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7306)

(86) Fusarium graminearum grants

      The House bill amends section 408 of AREERA to provide a 
technical correction and extends the authorization of 
appropriations through 2012. (Section 7406)
      The Senate amendment extends section 408(e) of AREERA 
through 2012. (Section 7207)
      The Conference substitute adopts the House provision. 
(Section 7307)

(87) Bovine Johne's Disease Control Program

      The House bill (section 7407) and the Senate amendment 
(section 7208) extend section 409(b) of AREERA through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7308)

(88) Grants for youth organizations

      The House bill amends section 410 of AREERA to provide 
additional flexibility in content delivery and management of 
grant funds to recipient organizations under this section. The 
authorization of appropriations is extended through 2012. 
(Section 7408)
      The Senate amendment extends section 410(c) of AREERA 
through 2012. (Section 7209)
      The Conference substitute adopts the House provision. 
(Section 7309)

(89) Agricultural research and development for developing countries

      The House bill (section 7409) and the Senate amendment 
(section 7210) extend section 411(c) of AREERA through 2012. 
(Section 7409)
      The Conference substitute adopts the House provision. 
(Section 7310)

(90) Agricultural bioenergy and biobased products research initiative

      The House bill adds a new section, 412, to AREERA that 
establishes a bioenergy and biobased products research 
initiative to enhance the production, sustainability, and 
conversion of biomass to renewable fuels and related products. 
The research initiative will be supported by a bioenergy and 
biobased product laboratory network that will focus research on 
improving biomass production and sustainability and improving 
biomass conversion in biorefineries. The Director of NARPO, 
established under section 7410 of the House bill, will 
coordinate projects and activities under the Biomass Research 
and Development Act of 2000 to coordinate and maximize the 
strengths of the Department and the Department of Energy. The 
Secretary is authorized to carry out research and award grants 
on a competitive basis. Appropriations are authorized at 
$50,000,000 for each of fiscal years 2008 through 2012. The 
Director of NARPO is to coordinate this program to avoid 
duplication of projects carried out under the Biomass Research 
and Development Act. (Section 7410)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to incorporate the purposes of sections 9010 and 
9020 of the House bill, and sections 9010, 9011, 9022, and 9025 
of the Senate amendment.
      The Conference substitute, titled the ``Agricultural 
Bioenergy Feedstock and Energy Efficiency Research and 
Extension Initiative,'' establishes a program to award 
competitive grants for projects with a focus on supporting on-
farm biomass crop research and the dissemination of results to 
enhance the production of biomass energy crops and the 
integration of such production with the production of 
bioenergy. The Conference substitute directs the Secretary to 
establish a best-practices database on the production of 
various biomass crops and on the harvesting, transport, and 
storage of biomass crops.
      The Conference substitute authorizes competitive grants 
for on-farm energy efficiency research and extension projects 
aimed at improving the energy efficiency of agricultural 
operations. (Section 7207)
      The Managers encourage the Secretary to consider the 
approach of the New Century Farm at Iowa State University as a 
model for integrated research in the areas of biomass crop 
research and the production of bioenergy and to use its 
established capabilities.
      The Managers encourage the Secretary to consider the 
Future Farmsteads program at the University of Georgia as a 
model for on-farm energy efficiency research and to use its 
established capabilities.
      Additionally, the Managers encourage the Secretary to use 
the capabilities of the Colorado Renewable Energy Collaboratory 
in carrying out this section.
      The Managers recognize the significant work Arkansas 
State University is conducting in the area of plant cell wall 
structure and function and encourages the Secretary to continue 
to recognize the value of plant-produced, biotechnology-
derived, enzymatic-developed products.
      The Managers are aware of the work being done at the 
Pennsylvania State University on all aspects of biofuels 
development from plant transformation to production, harvest, 
and storage to fuel formulation and engine testing.

(91) Specialty crop research initiative

      The House bill adds a new section, 413, to AREERA that 
establishes the Specialty Crop Research Initiative to develop 
and disseminate science-based tools to address the needs of 
specific crops and their regions, including work in plant 
breeding and genetics, safety, quality, and yield; efforts to 
identify and address threats posed by invasive species; 
marketing; pollination; and efforts to improve production. The 
Secretary is authorized to award competitive grants through 
this program. Appropriations are authorized at $100,000,000 for 
each of fiscal years 2008 through 2012. Additionally, 
$215,000,000 in mandatory funds is to be provided in fiscal 
year 2008 to remain available until expended. The Director of 
NARPO shall coordinate this program to avoid duplication. 
(Section 7411)
      The Senate amendment adds a new section, 412, to AREERA 
that establishes a Specialty Crop Research Initiative. This 
section is similar to the House provision and has additional 
language to include in the purposes of the program the 
optimization of organic specialty crop production and research 
on methods to prevent, control, and respond to pathogen 
contamination of specialty crops, including fresh-cut produce. 
Mandatory funding is provided at $16,000,000 per year for 
fiscal years 2008 through 2012 for the initiative. (Section 
7211)
      The Conference substitute adopts the House provision with 
an amendment that adds a new section, 412, to AREERA. It 
expands the initiative to a research and extension initiative; 
incorporates the prevention, detection, monitoring, control, 
and response to food safety hazards in the production and 
processing of specialty crops, including fresh products; 
allocates 10 percent of the funds obligated through this 
initiative to each of the research and extension activities 
described in this section; and provides $230,000,000 in 
mandatory funds for fiscal years 2008 through 2012. (Section 
7311)
      The Managers intend that most activities funded by the 
initiative would have grant terms of short duration. However, 
the Managers are aware that there are areas of research where 
longer term grants are needed, such as research related to tree 
fruits. The Managers expect the Secretary to use 10-year grant 
terms only when it is critical for long-term systems research.
      The Managers recognize the critical importance of 
research directed at food safety hazards in the production and 
processing of specialty crops including fresh fruits and 
vegetables. The Managers encourage the Secretary to select 
projects for funding in this area that focus on applied 
research and technology transfer.

(92) Office of Pest Management Policy

      The House bill extends section 614(f) of AREERA through 
2012. (Section 7412)
      The Senate amendment amends section 614 of AREERA by 
placing the Office of Pest Management Policy within the Office 
of the Chief Economist and extending the authorization of 
appropriations through 2012. (Section 7212)
      The Conference substitute adopts the House provision. 
(Section 7313)

(93) Food Animal Residue Avoidance Database Program

      The Senate amendment amends section 604 of AREERA by 
authorizing annual appropriations of $2,500,000 for the Food 
Animal Residue Avoidance Database program. (Section 7213)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that clarifies that the authorized funds are 
in addition to other funds available as specified in section 
604(c) of AREERA. (Section 7312)

(94) Critical Agricultural Materials Act

      The House bill (section 7501) and the Senate amendment 
(section 7301) extend section 16(a) of the Critical 
Agricultural Materials Act through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7401)

(95) Equity in Educational Land-Grant Status Act of 1994

      The House bill extends sections 533(b), 535, and 536(c) 
of the Equity in Educational Land-Grant Status Act of 1994 
(EELGSA) through 2012. (Section 7502)
      The Senate amendment extends sections 533(b), 535, and 
536(c) of EELGSA through 2012 and amends section 532 of the 
EELGSA to add Ilisagvik College in Alaska to the list of land-
grant tribal colleges. (Section 7302)
      The Conference substitute adopts the Senate provision 
with an amendment to redistribute endowment funds that would be 
paid to a 1994 Institution among other 1994 Institutions if 
that 1994 Institution declines to accept funds or fails to meet 
existing accreditation requirements. (Section 7402)

(96) Agricultural Experiment Station Research Facilities Act

      The House bill (section 7503) and the Senate amendment 
(section 7305) extend section 6(a) of the Research Facilities 
Act through 2012.
      The Conference substitute adopts the House provision. 
(Section 7405)

(97) National Agricultural Research, Extension and Teaching Policy Act 
        Amendments of 1985

      The House bill (section 7306) and the Senate amendment 
(section 7306) extend section 1431 of the NARETPA Amendments of 
1985 through 2012.
      The Conference substitute adopts the Senate provision. 
(Section 7416)

(98) Competitive, Special and Facilities Research Grant Act (National 
        Research Initiative)

      The House bill amends section 2 of the Competitive, 
Special, and Facilities Research Grant Act (CSFRGA) to extend 
the authorization of appropriations through 2012 and to repeal 
the authority to limit allowable overhead costs. (Section 7505)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision but 
reauthorizes section 2 of the CSFRGA in section 7406 of this 
Act.

(99) Agricultural Risk Protection Act of 2000 (carbon cycle research)

      The House bill extends the section 221of the Agricultural 
Risk Protection Act of 2000 (ARPA) through 2012. (Section 7506)
      The Senate amendment extends the section 221 of ARPA 
through 2012 and transfers authority for this program from that 
Act to the Farm and Energy Security Act of 2007. (Section 7315)
      The Conference substitute adopts the House provision. 
(Section 7407)

(100) Renewable Resources Extension Act of 1978

      The House bill (section 7507) and the Senate amendment 
(section 8201) extend section 6 of the Renewable Resources 
Extension Act of 1978 (RREA) and section 8 of RREA through 
2012. (Section 7507)
      The Conference substitute adopts the House provision. 
(Section 7413)
      The Managers are aware of the U.S. Forest Service's 
(USFS) work on the Fire Research and Management Exchange 
System, an Internet-based, centralized national portal for 
access to and exchange of science-based data, analysis tools, 
training materials, and other information related to 
interagency wildland fire management. The Managers recognize 
that the system can make a major contribution to science-based 
understanding and response to wildland fires, which continue to 
threaten many areas of our nation. The Managers expect the USFS 
to continue to work with its partners to develop a plan for 
nationwide implementation by 2011.

(101) National Aquaculture Act of 1980

      The House bill (section 7508) and the Senate amendment 
(section 7311) extend section 10 of the National Aquaculture 
Act of 1980 (16 U.S.C. 2809) through 2012. (Section 7508)
      The Conference substitute adopts the Senate provision. 
(Section 7414)

(102) Construction of a Chinese garden at the National Arboretum

      The House bill amends the Act of March 4, 1927, (20 
U.S.C. 191 et seq.) by authorizing the construction of a 
Chinese garden at the National Arboretum. (Section 7509)
      The Senate amendment amends the Act of March 4, 1927, (20 
U.S.C. 191 et seq.) by authorizing the construction of a 
Chinese garden at the National Arboretum, prohibiting federal 
funds from being used for the construction of the Chinese 
Garden, and requiring an annual report to Congress on the 
budget and expenditures of the National Arboretum. (Section 
7312)
      The Conference substitute adopts the House provision. 
(Section 7415)

(103) Public education regarding use of biotechnology in producing food 
        for human consumption

      The House bill extends section 10802 of the Farm Security 
and Rural Investment Act of 2002 (FSRIA) through 2012. (Section 
7510)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision and 
repeals section 10802 of FSRIA. (Section 7411)

(104) Fresh cut produce safety grants

      The House bill authorizes the Secretary to award 
competitive research and extension grants to improve and 
enhance the safety of fresh cut produce. Universities, 
colleges, and other entities that have relationships with 
producers of fresh cut produce are eligible. Grant recipients 
must provide an equal of amount of matching funds or in-kind 
support from non-federal sources. The Director of NARPO is to 
coordinate this program to avoid duplication. Mandatory funding 
of $25,000,000 is provided for each of fiscal years 2008 
through 2012. Additionally, an appropriation for necessary 
funds is authorized from fiscal year 2008 through fiscal year 
2012. (Section 7511)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision and 
incorporates the purposes and priorities of this program and 
funding into section 7311 of this Act.

(105) UDC/EFNEP eligibility

      The House bill (section 7512) and the Senate amendment 
(section 7313) amend Section 208 of the District of Columbia 
Public Postsecondary Education Reorganization Act (Public Law 
93-471; 88 Stat. 1428) to make the UDC eligible for the 
Expanded Food and Nutrition Education Program.
      The Conference substitute adopts the Senate provision. 
(Section 7417)

(106) Hatch Act of 1887

      The House bill amends Section 3(d)(4) of the Hatch Act of 
1887 by requiring a 50 percent match of funds from the District 
of Columbia in order for UDC to receive formula funds for 
agricultural research. The Secretary is allowed to waive the 
matching requirement if necessary. (Section 7513)
      The Senate amendment amends Section 3(d)(4) of the Hatch 
Act of 1887 by requiring a 50 percent match of funds from the 
District of Columbia in order for UDC to receive formula funds 
for agricultural research. The Secretary is allowed to waive 
the matching requirement if necessary. This section also amends 
Section 6 of the Hatch Act of 1887 by eliminating Penalty Mail 
Authorities for State agricultural experiment stations and the 
extension service and making conforming amendments to NARETPA 
and to 39 U.S.C. 3202(a). (Section 7304)
      The Conference substitute adopts the Senate provision. 
(Section 7404)

(107) Smith-Lever Act

      The Senate amendment amends Section 3 of the Act of May 
8, 1914 (7 U.S.C. 343) to allow 1890 institutions to 
participate in the Children, Youth, and Families Education and 
Research Network Program. This section also amends section 5 of 
the Act of May 8, 1914 (7 U.S.C. 345) to eliminate the 
Governor's Report requirement for the extension service. 
(Section 7304)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change programs authorized under section 
3(d) of the Smith-Lever Act (7 U.S.C. 343(d)) into programs 
that award competitive grants and to add a conforming amendment 
to section 1444(a)(2) of NARETPA. (Section 7403)

(108) Education grants to Alaska Native Serving Institutions and Native 
        Hawaiian Serving Institutions

      The Senate amendment amends section 759 of the 
Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act, 2000 by permitting 
consortia of Alaska Native and Native Hawaiian Serving 
Institutions to designate fiscal agents and allocate funds for 
their members. (Section 7308)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to add this provision as a new section, 
1419B, to NARETPA. (Section 7112)

(109) McIntire-Stennis Cooperative Forestry Act

      The Senate amendment amends Section 2 of the McIntire-
Stennis Cooperative Forestry Act (16 U.S.C. 582a-1) by 
authorizing the participation of 1890 institutions to 
participate in the McIntire-Stennis cooperative forestry 
program. (Section 7310)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7412)

(110) Exchange or sale authority

      The Senate amendment adds Section 307 to Title III of the 
Federal Crop Insurance and Department of Agriculture 
Reorganization Act of 1994 by authorizing USDA to exchange, 
sell, or otherwise dispose of any qualified items of personal 
property and to retain and apply the sale or other proceeds to 
acquire any qualified items of personal property or to offset 
costs related to the maintenance, care, or feeding of any 
qualified items of personal property. (Section 7314)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7408)

(111) Enhanced Use Lease Authority Pilot Program

      The Senate amendment adds a new section, 308, to Title 
III of the Federal Crop Insurance and the Department of 
Agriculture Reorganization Act of 1994 by establishing a pilot 
program that allows non-Federal entities to use and invest in 
capital improvements at the Beltsville Agricultural Research 
Center and the National Agricultural Library by leasing non-
excess property of the Center or the Library. (Section 7316)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to limit the terms of leases established 
under this authority to 30 years, sunset this authority five 
years after the date of enactment of this Act, and make 
technical changes. (Section 7409)

(112) Research and education grants for the study of antibiotic-
        resistant bacteria in livestock

      The Senate amendment establishes a competitive grant 
program for research and education on antibiotic-resistant 
bacteria in livestock. (Section 7317)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to modify the purposes of this research 
program. (Section 7521)
      The Managers are aware that resistance to antibiotics is 
a serious and growing public health concern in the United 
States and around the world. The Managers intend that section 
7521 of this Act provide the necessary research and information 
for livestock producers as well as the general public to 
minimize the use of such drugs while still ensuring healthy 
animals and people. The Managers encourage the Secretary to 
fund research that can minimize the development and spread of 
antibiotic-resistant bacteria and to make this a priority 
research area within relevant competitive research programs, 
including national programs related to animal production and 
water quality.

(113) Merit review of extension and educational grants

      The House bill amends subsection (a)(2)(A) of section 103 
of AREERA by inserting NIFA as the administering body for which 
merit review procedures must be established. (Section 7601)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision.

(114) Review of plan of work requirements

      The House bill (section 7602) and the Senate amendment 
(section 7503) require a review of the Plan of Work 
requirements under NARETPA, the Hatch Act, and the Smith-Lever 
Act. They also require a report to Congress identifying 
measures to streamline the plan of work requirements
      The Conference substitute adopts the House provision with 
an amendment to remove the reporting requirement. (Section 
7505)

(115) Multistate and integration funding

      The House bill amends section 3 of the Hatch Act of 1887 
and section 3 of the Smith-Lever Act by requiring that, of the 
federal formula funds States receive under these Acts, 25 
percent must be spent on the integration of cooperative 
research and extension activities. (Section 7603)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision.

(116) Expanded Food and Nutrition Education Program

      The House bill amends section 1425 of NARETPA by changing 
the allocation of funds in excess of the amount appropriated in 
fiscal year 1981. Funds in the amount of $100,000 are to be 
distributed to each land-grant college and university. The 
authorization of appropriations is increased to $90,000,000 
through 2014. (Section 7604)
      The Senate amendment is the same as House provision with 
technical differences. (Section 7012)
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes. (Section 7116)

(117) Grants to 1890 Schools to expand extension capacity

      The House bill (section 7605) and the Senate amendment 
(section 7005) amend section 1417(b)(4) of NARETPA to add 
extension as one of the purposes for which grants may be made 
through this program.
      The Conference substitute adopts the House provision. 
(Section 7107)

(118) Borlaug International Agricultural Science and Technology 
        Fellowship Program

      The House bill establishes a fellowship program that 
provides scientific training to individuals from eligible 
countries that specialize in agricultural research, extension, 
and education. Necessary sums are authorized to be appropriated 
without fiscal year limitation. (Section 7606)
      The Senate amendment adds a new section, 1473I, to 
NARETPA that authorizes annual appropriations for the Borlaug 
International Agricultural Science and Technology Fellowship 
Program. The fellowship program brings scientists from 
developing countries to U.S. land-grant institutions to learn 
about improving agricultural productivity. (Section 7042)
      The Conference substitute adopts the Senate provision. 
(Section 7139)

(119) Cost recovery

      The House bill amends Section 1473A of NARETPA by raising 
the indirect cost cap for cost reimbursable agreements between 
the Secretary and State cooperative institutions or colleges 
and universities from 10 percent to 19 percent. (Section 7607)
      The Senate amendment amends Section 1473A of NARETPA by 
raising the indirect cost cap for cost reimbursable agreements 
between the Secretary and State cooperative institutions or 
colleges and universities from 10 percent to 30 percent. 
(Section 7031)
      The Conference substitute deletes both the House and 
Senate provisions.

(120) Organic food and agricultural systems funding

      The House bill expresses a sense of Congress that a 
portion of the annual funding provided for ARS should support 
research specific to organic food and agricultural systems. 
(Section 7608)
      The Senate amendment expresses a sense of the Senate that 
recognizes the need to increase funding at USDA for research 
specific to organic agriculture to keep pace with the expansion 
of the organic sector of U.S. agriculture. (Section 7505)
      The Conference substitute deletes the House and Senate 
provisions.

(121) Demonstration project authority for temporary positions

      The Senate amendment authorizes the demonstration project 
authority for temporary positions indefinitely. (Section 7502)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7528)

(122) Modifications to information technology service

      The Senate amendment prohibits the Secretary from 
implementing any modification that reduces the availability or 
provision of information technology service, or administrative 
management control of that service, including data or center 
service agency, functions, and personnel at the National 
Finance Center and the National Information Technology Center 
service locations until a notification is received by Congress 
from the Department. This section requires the Secretary to 
report to Congress and the Government Accountability Office on 
specified administrative modifications made to the National 
Finance Center and National Technology Center service 
locations. (Section 7506)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate provision.

(123) Studies and reports by the Department of Agriculture, the 
        Department of Health and Human Services, and the National 
        Academy of Sciences on food products from cloned animals

      The Senate amendment requires studies on the safety and 
the impact on trade of allowing food products from cloned 
animals and their offspring into the food supply. The Secretary 
of Health and Human Services (HHS) is prohibited from issuing 
the final draft risk assessment on food from cloned animals and 
their offspring. The Secretary of HHS is also prohibited from 
lifting the voluntary moratorium on allowing food from cloned 
animals and their offspring from entering the food supply until 
after the studies are completed. (Section 7507)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate amendment.

(124) Animal bioscience facility in Bozeman, Montana

      The Senate amendment authorizes appropriations of 
$16,000,000 for the construction of an animal bioscience 
facility in Bozeman, Montana. (Section 7508)
      The House bill has no comparable provision.
      The Conference substitute deletes the Senate amendment.

                          TITLE VIII--FORESTRY


(1) National priorities for private forest conservation

      The House bill amends section 2 of the Cooperative 
Forestry Assistance Act of 1978 (CFAA) by requiring the 
Secretary to focus on a set of three national private forest 
conservation priorities when allocating appropriated CFAA 
funds: (1) conserving and managing working forest landscapes; 
(2) protecting forests from threats, including wildfire, 
hurricane, tornado, windstorm, snow or ice storm, flooding, 
drought, invasive species, or insect or disease outbreak, and 
restoring appropriate forest types in response to such threat 
[included because paragraphs (1) & (3) contain full list of 
items]; and (3) enhancing public benefits from private forests, 
including air and water quality, forest products, forestry-
related jobs, production of renewable energy, wildlife and 
wildlife habitat, and recreation. The House bill requires the 
Secretary to submit a report to Congress describing how funding 
has been used under the CFAA, and through other programs 
administered by the Secretary, to address the three national 
priorities. (Section 8001)
      The Senate amendment amends section 2 of the CFAA by 
adding a new subsection which requires the Secretary to focus 
on a set of three national private forest conservation 
priorities when allocating appropriated CFAA funds. The 
national priorities are: (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 and ice storms, flooding, drought, invasive species, 
insect or disease outbreak, development, and restoring 
appropriate forest structures and ecological processes in 
response to such threats; and (3) enhancing public benefits 
from private forests including air and water quality, forest 
products, forest-related jobs, production of renewable energy, 
wildlife, enhancing biodiversity, the establishment of wildlife 
corridors and habitat, and recreation. The Senate amendment 
amends section 2 of the CFAA by adding a new subsection that 
requires the Secretary to submit a report to Congress 
describing how CFAA funds were used to address the three 
national priorities and the outcomes achieved in meeting the 
national priorities. (Section 8001)
      The Conference substitute adopts the House provision with 
minor changes. (Section 8001)

(2) Long-term, state-wide assessments and strategies for forest 
        resources

      The House bill amends section 2 of the CFAA by adding a 
new section that requires, for a State to be eligible to 
receive CFAA funds, that the State forester--or equivalent 
State official--develop and submit a State-wide assessment of 
forest resource conditions and a State-wide forest resource 
strategy. The State-wide assessment of forest conditions is to 
encompass a number of factors, including: the conditions and 
trends of forest resources in the State; the threats to 
forestlands and resources in the State, consistent with the 
three national priorities; any priority areas or regions in a 
State that are of priority; and any areas that are of priority 
to more than just that State. The State-wide forest resource 
strategy is to encompass a number of factors, including: 
strategies for addressing threats to forest resources in the 
State outlined in the State-wide assessment of forest 
conditions; and a description of the resources available to the 
State forester--or equivalent State official--from all sources 
to implement the State-wide forest resource strategy. The State 
forester--or equivalent State official--is required to submit 
the State-wide forest resource strategy on an annual basis. The 
State-wide assessment of forest resource conditions is to be 
updated as the Secretary or State forester--or equivalent State 
official--determines to be necessary. The State forester--or 
equivalent State official--is required in developing the State 
wide assessment and annual strategy, to coordinate with the 
State Forest Stewardship Committee established for the State, 
the State wildlife agency, and the State Technical Committee. 
The Secretary is prohibited from using more than $10 million in 
a fiscal year to implement this section. (Section 8002)
      The Senate amendment amends the CFAA by inserting after 
section 19 a new section entitled ``Comprehensive Statewide 
Forest Planning'' under which requires Secretary to provide 
financial and technical assistance to States for use in the 
development and implementation of statewide forest resource 
assessments and plans. For a State to be eligible for CFAA 
funding, the State forester or equivalent State official must 
develop a statewide forest resource assessment and plan. At a 
minimum, the statewide forest resource assessment and plan 
should identify each critical forest resource in the State 
consistent with national priorities; incorporate any current 
forest management plan in the State; address the needs of the 
region without regard to State borders; provide a comprehensive 
statewide plan for managing forest land that achieves the three 
national priorities; and include a multiyear forest management 
strategy for forest management. The statewide forest resource 
and plan should include a multiyear integrated forest 
management strategy. The State Forester--or equivalent State 
official--is required to coordinate with the State Forest 
Stewardship Coordination Committee, State wildlife agencies, 
the State Technical Committee and other applicable Federal land 
management agencies in developing statewide assessments and 
plans. Subsection (b)(3) requires the Secretary to review the 
statewide assessments and plans established under this section. 
Subsection (d) authorizes $10,000,000 to be appropriated to 
carryout this section. (Section 8004)
      The Managers adopt the House provision in the Conference 
substitute with amendment. The amendment allows Secretary to 
require the long term State-wide assessment and strategy to be 
updated and resubmitted as the Secretary or State Forester or 
equivalent State official determines necessary. The Managers 
expect that the assessments and strategies will guide the 
annual allocation of federal resources available under the 
authorities of the CFAA, to focus such resources on national 
priorities. In developing and updating the State-wide 
assessments and strategies, applicable Federal land management 
agencies are added to the list of organizations with which the 
State forester or equivalent State official are expected to 
coordinate. Existing forest management plans of the State are 
to be incorporated when developing State-wide assessments and 
strategies. The Conference amendment authorizes up to 
$10,000,000 to provide States financial and technical 
assistance needed for the development of the assessments and 
strategies under this section. The Conference amendment 
requires the State forester--or equivalent State official--to 
submit an annual report to the Secretary demonstrating how 
federal resources under the CFAA were used to implement the 
state-wide strategy. (Section 8002)
      The Managers intend that Multi-State areas that are a 
regional priority should reflect areas identified at both the 
national and state level through assessment and mapping 
efforts. The Managers recognize that there is a national 
assessment and mapping effort underway and encourage 
consideration be given to multi-state areas identified in this 
effort.

(3) Community forest and open space program

      The Senate amendment amends the CFAA by adding a new 
section, 7A, entitled ``Community Forest and Open Space 
Conservation Program.'' The program provides Federal matching 
grants to help county or local governments, Indian tribes, or 
non-profit organizations acquire private forests that are 
threatened by conversion to non-forest uses and are 
economically, environmentally and culturally important to 
communities. The terms ``eligible entity,'' ``Indian tribe,'' 
``local governmental entity,'' ``non-profit organization,'' 
``program'' and ``Secretary'' are defined. The Federal cost 
share of a grant provided under the program is to equal not 
more than 50-percent of the cost to acquire one or more parcels 
of land. Eligible entities are permitted to provide a non-
Federal match in cash, donation, or in kind equal to the 
outstanding amount. An application process is established 
whereby an eligible entity is required to 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 description of 
land to be acquired and a forest plan that includes a 
description of community benefits achieved from acquisition. 
Eligible entities must provide public access for recreational 
use consistent with the purposes of the program and are 
prohibited from converting the property to other uses. Eligible 
entities that sell or convert land acquired under this program 
to non-forest use must reimburse the Federal government in an 
amount equal to the greater of the sale price or current 
appraisal value of the land. Eligible entities that either sell 
or convert the land are prohibited from being eligible for 
additional grants under the program. The Secretary is 
authorized to allocate 10-percent of funds made available for 
the program to State foresters--or equivalent officials (or in 
the case of an eligible entity that is an Indian tribe an 
equivalent official of the Indian tribe)--for program 
administration and technical assistance. An appropriation of 
such sums as necessary is authorized to carryout the program. 
(Section 8002)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 8003) The Managers strongly encourage eligible 
entities acquiring forestland with resources under this program 
to manage the forestland as ``working forests,'' generating 
economic benefits and providing jobs and economic stability to 
communities. The Managers encourage the Secretary to provide a 
level of oversight over these acquired forests, to see that 
these goals are met and maintained. The authorities in this 
program allow non-profit organizations to use funds to acquire 
properties under this program. The Managers intend such 
authorities to be used only when a non-profit organization's 
acquisition of forestland results in a clear benefit to the 
community, and where there is not a significant loss in the 
property-tax base for the community. Where a local government 
entity can perform the same functions as the non-profit, the 
Managers encourage the Secretary to work with the local 
government entity. Additionally, revenues generated by the non-
profit in the management of forestland acquired under the 
program should be used for the direct benefit of the local 
community.

(4) Assistance to the Federated States of Micronesia, the Republic of 
        the Marshall Islands, and the Republic of Palau

      The House bill amends section 13(d)(1) of the CFAA to 
specify that the Federated States of Micronesia, the Republic 
of the Marshall Islands, the Republic of Palau are to be 
included in the terms ``United States'' or ``States'' for 
purposes of the CFAA. (Section 8003)
      The Senate amendment is the same as the House bill. 
(Section 8005)
      The Conference substitute adopts the House provision. 
(Section 8004)

(5) Changes to Forest Resource Coordinating Committee

      The House bill amends section 19(a) of the CFAA by 
revising the Forest Resource Coordinating Committee (FRCC).
      The House bill states the FRCC is to be composed of the 
following: the Chief of the Forest Service, the Chief of the 
Natural Resources Conservation Service, the Director of the 
Farm Service Agency; and the Administrator of the Cooperative 
State Research, Education, and Extension Service.
      The House bill states the FRCC is to be composed of the 
following persons: at least three State foresters or equivalent 
State officials from geographically diverse regions of the 
United States; a representative of a State Fish and Game 
Commission, a private nonindustrial forest landowner, a forest 
industry representative, a conservation organization 
representative, a land grant university or college 
representative, a representative of a State Technical 
Committees, and such other persons as the Secretary determines 
appropriate.
      The House bill states the FRCC is to perform a number of 
duties, including: (1) providing direction to the United States 
Department of Agriculture (USDA) and enabling coordination with 
State agencies and the private sector to address the three 
national priorities; (2) clarifying individual agency 
responsibilities for each agency represented on the FRCC 
regarding the three national priorities; (3) providing advice 
on the allocation of funds, including competitive funds; and 
(4) assisting in developing a report on efforts to address the 
three national priorities.
      The House bill requires the FRCC to meet twice a year to 
discuss the national priorities and issues regarding 
nonindustrial private forest land. (Section 8004)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
minor changes. (Section 8005)

(6) Changes to State Forest Stewardship Coordinating Committees

      The House bill amends section 19(b)(1)(B)(ii) of the CFAA 
by specifying that a representative from a State Technical 
Committee is to be on the State Forest Stewardship Coordinating 
Committee (SFSCC). It also amends section 19(b)(2)(C) of the 
CFAA by mandating that the SFSCC is to make recommendations for 
the State-wide assessments and strategies. The House bill 
strikes section 19(b)(3) and 19(b)(4) of the CFAA. (Section 
8005)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 8006)

(7) Forest legacy applications

      The House bill maintains current law.
      The Senate amendment amends section 19(b)(2)(D) of the 
CFAA by stating that applications submitted by Indian tribes do 
not have to pass through the State Coordinating Committee. 
(Section 8003)
      The Conference substitute deletes the Senate provision.

(8) Competition in programs under Cooperative Forestry Assistance Act 
        of 1978

      The House bill authorizes the Secretary to competitively 
allocate a portion of CFAA funds to State foresters or 
equivalent State officials. The Secretary is required to 
consult with the FRCC when determining the allocation of funds. 
The Secretary is also required to give priority for funding to 
States in which the strategies listed in the State-wide 
assessments best promote the three national priorities. 
(Section 8006)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 8007)

(9) Cooperative forest innovation partnership projects

      The House bill states the Secretary is authorized to 
competitively allocate not more than 5 percent of CFAA funds to 
support innovative national, regional, or local education, 
outreach, or technology projects that the Secretary determines 
would increase the ability of USDA to address the national 
priorities outlined in section 8001. State or local 
governments, Indian tribes, land-grant colleges or 
universities, or private entities, are authorized to compete 
for the funds. The House bill states the Secretary is 
prohibited from covering more than 50 percent of the total cost 
of a project. The Secretary is required, in calculating the 
total cost of a project and the contributions made with regard 
to the project, to include in-kind contributions. (Section 
8007)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 8008)

(10) Healthy forest reserve program

      The House bill amends section 508(2) of the Healthy 
Forests Restoration Act by extending the Healthy Forests 
Reserve Program to 2012, and providing $10 million in mandatory 
funding for each of the fiscal years 2008 through 2012. 
(Section 8101)
      The Senate amendment moves the Healthy Forest Reserve 
Program into the Food and Security Act of 1985. An 
authorization of such sums as necessary are authorized for 
fiscal years 2008 through 2012 to carry out the program. The 
99-year easement option is eliminated and replaced with a 
permanent easement option. Indian tribes are encouraged to 
participate in the program by being allowed to enroll in 30-
year contracts. The Senate amendment strikes section 502(e) of 
the Healthy Forest Restoration Act, which limits the amount of 
acreage that can be enrolled in the program to 2 million acres. 
(Section 2331)
      The Managers agree to adopt the House provision in the 
Conference substitute, with amendment. The current 99 year 
easement option is replaced with a permanent easement option. 
Indian tribes are allowed to enter into 10-year cost-share 
agreements or 30 year contracts that are equivalent to the 
value of a 30 year easement. Of the funds expended in a fiscal 
year, not more that 40 percent of the funding can be used for 
cost-share agreements while not more than 60 percent can be 
used for easements. A repooling date of April 1 is put in place 
to address potential high demand for a particular enrollment 
method. The Managers provide $9.75 million each of fiscal years 
2009 through 2012, in mandatory funding for the Program. The 
Managers adopted the changes in the Senate amendment regarding 
Indian tribes, to ensure tribes can participate in the Program. 
The Managers intend that tribal land enrolled in the program 
should be land held in private ownership by a tribe or an 
individual tribal member. Tribal lands held in trust or 
reserved by the U.S. government or restricted fee lands should 
be not enrolled in the program, regardless of ownership. 
(Section 8205)

(11) Emergency forest restoration program

      The House bill amends title VI of the Agricultural Credit 
Act (ACA) by authorizing the Secretary to provide financial and 
technical assistance to owners of nonindustrial private forest 
lands who have suffered a loss due to a number of events, 
including wildfires, hurricanes, drought, and windstorms, to 
assist with the development and implementation of plans that: 
(1) provide for the restoration and the rehabilitation of the 
nonindustrial private forest land; restores the land and its 
related natural resources; (2) uses best management practices 
on the forest land; and (3) incorporates good stewardship and 
conservation practices on the land.
      The House bill provides for a cost share of up to 75 
percent, and limits the amount that an owner of nonindustrial 
forest lands may receive to $50,000 per year. Nonindustrial 
private landowners are eligible under the House bill if the 
Secretary determines that their lands are under an eminent 
threat of loss or damage by insect or disease and immediate 
action would help them avoid loss or damage.
      The House bill defines nonindustrial private forest land 
to mean rural lands, as determined by the Secretary that: (1) 
have existing tree cover or had tree cover within the preceding 
10 years; and (2) are owned by any nonindustrial private 
individual, group, association, corporation, Indian tribe, or 
other private legal entity so long as the individual, group, 
association, corporation, tribe or entity has definitive 
decision-making authority over the lands.
      The House bill requires the Secretary of Agriculture to 
issue regulations to carry out the section within one year of 
enactment. (Section 8102)
      The Senate amendment establishes a new emergency 
landscape restoration program to rehabilitate cropland, 
grasslands, and private nonindustrial forest lands adversely 
affected by natural catastrophic events such as fire, drought, 
flood, excessive wind, ice, or other natural events. Entities 
eligible for assistance are community-based associations and 
city, county or regional governments, including watershed 
councils and conservation districts. Individuals eligible for 
assistance include producers, ranchers, operators, private 
nonindustrial forest landowners, and landlords on working 
agricultural land.
      The Senate amendment: provides a source of financial 
assistance for restoring and protecting natural resources and 
preventing further impairment of land and water, allows the 
Secretary to purchase floodplain easements, prioritizes 
applications that protect human health and safety, and provides 
technical assistance and cost-share payments up to 75 percent 
of the cost of remedial activities to rehabilitate watersheds.
      The Senate amendment defines ``remedial activities'' to 
include debris removal, stream bank stabilization, 
establishment of cover, restoration of fences, construction of 
conservation structures, providing livestock water in drought 
situations, restoring nonindustrial private forestland. 
Discretionary funding is authorized.
      The Senate amendment provides for the temporary 
administration of current emergency programs until final 
regulations are formulated. (Section 2398)
      The Conference substitute adopts the House provision with 
amendment. The amendment clarifies that Secretary is authorized 
to make payments to owners of nonindustrial private forest land 
to carry out specific emergency measures on their land 
following natural disasters. To receive assistance owners will 
be required to demonstrate that their land had tree cover prior 
to the natural disaster. The amendment includes a separate 
authorization of appropriations, at such sums as necessary.
      The Managers include a definition of natural disasters, 
with an allowance for Secretarial discretion in determining if 
other resource-impacting events other than those specifically 
mentioned, constitute a natural disaster. The Managers intend 
the discretion to be used to help forest owners recover from 
events such as catastrophic insect or disease infestations, if 
the Secretary determines that such events are far outside 
normal ranges and did not result from a lack of forest 
management. Infestations can include outbreaks of non native 
forest pests including Emerald Ash Borer, Hemlock Woolly 
Adelgid, and Sudden Oak Death. (Section 8203)
      The Managers recognize that the Forest Service has 
significant experience in responding to natural disasters 
including assessment of resource damage and responding to a 
wide range of incidents and emergencies. The Managers encourage 
the Secretary of Agriculture to utilize this expertise in 
implementing this section, where appropriate.

(12) Office of International Forestry

      The House bill maintains current law, and extends the 
authorization of appropriation to 2012. (Section 8103)
      The Senate amendment is the same as the House bill. 
(Section 8203)
      The Conference substitute adopts the House provision. 
(Section 8202)

(13) Rural revitalization technologies

      The House bill maintains current law, and extends the 
authorization through 2012. (Section 8014)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 8201)

(14) Renewable Resources Extension Act

      The House bill extends authorization through fiscal year 
2012 and makes provisions of the Renewable Resources Extension 
Act effective through September 30, 2012. (Section 7507)
      The Senate amendment is the same as the House bill. 
(Section 8201)
      The Conference substitute adopts the House provision. 
(Section 7413)

(15) Definitions

      The Senate amendment provides definitions for ``Indian'', 
``Indian Tribe'' and ``National Forestry System'' that will be 
used under Subtitle B of this bill--Tribal-Forest Service 
Cooperative Relations. (Section 8101)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(16) Indian Tribes participation in the Forest Legacy Program

      The Senate amendment amends section 7(a) of the CF AA by 
including Indian tribes as direct participants in the Forest 
Legacy Program. Section 7(l) of the CFAA is amended to allow 
Indian tribes to receive grants from the Secretary to carry out 
the Forest Legacy Program. The Secretary is prohibited from 
providing grant for any project on land held in trust by the 
United States. Additionally, land acquired using grant funds 
cannot be converted to land held in trust by the United States 
on behalf of any Indian tribe. (Section 8111)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(17) Indian Tribes assistance

      The Senate amendment authorizes the Secretary to provide 
financial, technical, educational and related assistance to 
Indian tribes for consultation and coordination with the U.S. 
Forest Service on issues relating to: (1) access to Forest 
Service land by members of a tribe for traditional, religious 
and cultural purposes; (2) coordinated or cooperative 
management of resources shared by the tribe and the Forest 
Service; (3) the provision of expertise or knowledge; (4) 
projects and activities for conservation education and 
awareness with respect to forestland and grassland that is 
eligible Indian land; and (5) technical assistance for forest 
resources planning, management, and conservation on eligible 
Indian land. Indian tribes are only allowed to participate in 
one approved activity that receives assistance under this 
section or the Forest Stewardship Program under section 5 of 
the CFAA. The Secretary is required to promulgate regulations 
relating to assistance under this section within 180 days of 
enactment, including rules for determining the distribution of 
assistance. The Secretary is also required to coordinate with 
the Secretary of the Interior to ensure that activities 
authorized under this section do not conflict with Indian 
tribal programs at the Department of the Interior and achieve 
the goals established by affected Indian tribes. (Section 8112)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(18) Purposes of cultural and heritage cooperative authorities

      The Senate amendment: permits the reburial of human 
remains and cultural items, including items repatriated under 
the Native American Graves Protection and Repatriation Act, on 
National Forest System land; prevents the unauthorized 
disclosure of information regarding burial sites; authorizes 
the Secretary to allow Indians and Indian tribes to access 
National Forest System land for traditional and cultural 
purposes; and authorizes the Secretary to protect the 
confidentiality of certain information that is culturally 
sensitive to Indian tribes. (Section 8121)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 8101)

(19) Definitions

      The Senate amendment provides definitions for ``adjacent 
site,'' ``cultural items,'' ``human remains,'' ``lineal 
descendant,'' ``reburial site,'' and ``traditional and cultural 
purpose.'' (Section 8122)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 8102)

(20) Authorization for reburial of human remains and cultural items on 
        National Forest System land

      The Senate amendment provides that the Secretary may 
allow the use of National Forest System land for reburial of 
human remains or cultural items in possession of the Indian 
tribe or lineal descendant that have been disinterred from 
National Forest System land or adjacent site. The Senate 
amendment allows the Secretary to recover or rebury human 
remains and cultural items on National Forest System land at 
Federal expense when done with the consent of the affected 
Indian tribe or lineal descendent. It also allows the Secretary 
to authorize such uses on reburial sites, or the area 
immediately surrounding the reburial sites, as the Secretary 
determines necessary for management of the National Forest 
System land. The Secretary is required to avoid adverse impacts 
to cultural items and human remains to the maximum extent 
practicable. (Section 8123)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with minor changes. (Section 8103)

(21) Temporary closure of National Forest System land for traditional 
        and cultural purposes

      The Senate amendment requires the Secretary to ensure, to 
the maximum extent practicable, that Indian tribes have access 
to National Forest System land for traditional and cultural 
purposes. It provides that the Secretary may temporarily close 
from public access specifically identified National Forest 
System land to protect the privacy of tribal activities for 
traditional and cultural purposes on the smallest practicable 
area for a minimal period of time. (Section 8124)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 8104)

(22) Forest products for traditional and cultural purposes

      The Senate amendment allows the Secretary to provide 
Indian tribes with forest products from National Forest System 
land if the forest products are for traditional and cultural 
purposes and are not used for commercial purposes. (Section 
8125)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 8105)

(23) Disclosure

      The Senate prohibits the Secretary from disclosing 
information under the Freedom of Information Act relating to: 
human or cultural items reburied on National Forest System land 
or a site used for traditional and cultural purposes by an 
Indian tribe; and resources, cultural items, uses or activities 
that have a traditional and cultural purpose and are provided 
to the Secretary by an Indian tribe under an express 
expectation of confidentiality in the context of forest and 
rangeland research activities carried out by the Forest 
Service. The Secretary is not required to disclose information 
concerning the identity, use or specific location of a site or 
resource used for traditional and cultural purposes by an 
Indian tribe; or certain cultural items. The Secretary may 
disclose information about the location of human remains or 
cultural items if the Secretary consults with an affected 
Indian tribe or lineal descendant before disclosure and 
determines that the disclosure is necessary to protect human 
remains or cultural items from harm, theft, or destruction and 
mitigates any adverse impacts that may result from disclosure. 
The Secretary may disclose information regarding human remains 
or cultural items if the Secretary determines that disclosing 
the information to the public would not create an unreasonable 
risk of harm, theft or destruction of the resource, site or 
object; and would be consistent with other applicable laws. 
(Section 8126)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment 
with minor changes. (Section 8106)

(24) Severability and savings provisions

      The Senate amendment provides that if any provision in 
Subtitle B of the amendment is deemed invalid it will not 
affect the remainder of the subtitle. It also provides a 
savings clause that covers trust responsibility, agreements 
between the Forest Service and Indian tribes, rights of an 
Indian tribe, and rights relating to National Forest System 
land or other public land. (Section 8127)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 8107)

(25) Hispanic-Serving Institution Agricultural Land National Resources 
        Leadership Program

      The House bill authorizes the Secretary to establish an 
undergraduate scholarship program to assist Hispanic-serving 
institutions in the retention, recruitment, and training of 
Hispanics and other under-represented groups in forestry and 
related fields. An appropriation of such sums as necessary is 
authorized for fiscal years 2008 through 2012 to carry out the 
program. (Section 8201)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 8402)

(26) Green Mountain boundary adjustment

      The Senate amendment authorizes modification of the 
boundary of the Green Mountain National Forest in Vermont to 
include 13 designated expansion units depicted on forest maps 
Green Mountain Expansion Area Map I and Green Mountain 
Expansion Area Map II, which is on file with the Chief of the 
Forest Service. (Section 8203)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 8301)

(27) Illegal logging

      The Senate amendment amends section 2(f) of the Lacey Act 
Amendments of 1981 to change the definition of ``plant.'' 
Section 2(j) of the Lacey Act is amended to define the terms 
taken and taking. Section 3(a)(2)(B) of the Lacey Act is 
amended to make it illegal for any plant: to be taken, 
possessed, transported or sold in violation of any State or 
foreign law that protects plants or regulates the theft of 
plants; to be taken from a park or forest reserve, or other 
officially protected area; and to be taken from an officially 
designated area or without, or contrary to, required 
authorization. The Senate amendment also makes it illegal to 
take, possess, transport or sell plants without the payment of 
royalties, taxes, or stumpage fees or in violation of any 
limitation under any State or any foreign law. Section 3(a)(3) 
of the Lacey Act is amended to make it illegal, within the 
special maritime and territorial jurisdiction of the United 
States, for any plant to be taken, possessed, transported or 
sold in violation of any state or foreign law that regulates 
the theft of plants. The taking of plants from a park or forest 
reserve, or other officially protected area and the taking of 
plants from an officially designated area or without, or 
contrary to, required authorization are also made illegal. 
Additionally, the amendment makes it illegal to take, possess, 
transport or sell plants without the payment of royalties, 
taxes, or stumpage fees or in violation of any limitation under 
any State or any foreign law, governing the export or 
transshipment of plants.
      A new subsection (f) is created in the Lacey Act to 
require a plant declaration to be filed upon importation of a 
plant. The plant declaration must include the scientific name 
of any plant, a description of the value, quantity (including 
the unit of measure) of the plant, and the name of the country 
from where the plant was taken. If a plant species or country 
of origin cannot be determined, the plant declaration is to 
include a list of possible plant species that could be found in 
the product or a list of possible countries from which the 
plant originated. An exclusion is provided for plants used 
exclusively as packing material unless the packing materials 
are the items being brought in. The Secretary is required to 
review the plant declaration. The Secretary is also required to 
review the exclusion for wood and paper packing and to limit 
the scope of the exclusion if the Secretary determines that 
such a limitation in scope is warranted. The Secretary is 
required to issue a report with analyses and recommendations on 
the affects of these new requirements.
      Section 4 of the Lacey Act is amended by making 
conforming technical changes to the penalties and sanctions 
section of the Act. The forfeiture provisions in Section 5 of 
the Lacey Act are amended by adding a new subsection (d) which 
reaffirms, as has been the case since 2002, that civil 
forfeitures under this section are to be governed by chapter 46 
of title 18, United States Code. (Section 8204)
      The House bill contains no comparable provision.
      The Managers agree to include the Senate provision in the 
Conference substitute, with an amendment to modify the 
definition of plant, exclude recycled material from the plant 
declaration, clarify the application of section 3 paragraph 
(B)(iii) of the Lacey Act to regulations or laws pertaining to 
the export or transshipment of plants, and to require the 
Secretaries of Agriculture and the Interior to develop 
regulations to further define the term ``plant.''
      The Managers understand illegal logging undermines 
responsible forest enterprises by distorting timber markets 
with unfair competition and price undercutting. Illegal logging 
also threatens the conservation of forest resources, wildlife, 
and biodiversity, by facilitating forest conversion to non-
forest uses and depleting or completely eliminating certain 
forest ecosystems or the habitat of certain forest dependent 
wildlife. Finally, illegal logging results in a loss of revenue 
when taxes or royalties are not paid that could otherwise be 
invested in sustainable forest management or economic 
development.
      There are several relevant multilateral and international 
agreements intended to address illegal logging and the illegal 
timber trade, ranging from voluntary to legally binding 
multilateral agreements that enable signatory governments to 
seize illegal products. Yet, despite these many efforts, the 
problems of illegal logging continue to persist, driven by the 
demand for products that are developed from illegally harvested 
wood and the lack of adequate regulatory mechanisms in both 
exporting and consumer countries.
      According to the Department of Justice there is no legal 
mechanism that currently exists in U.S. law to preclude the 
importation of wood and wood products known to be illegally 
harvested in other countries. Currently under the Lacey Act, it 
is unlawful for any person to: (1) import, export, sell, 
acquire, or purchase any fish, wildlife or plants taken, 
possessed, transported, or sold in violation of U.S. law or 
regulation or in violation of any Indian tribal law; or (2) to 
import, export, sell, receive, acquire, or purchase in 
interstate or foreign commerce any fish or wildlife, taken, 
possessed, transported, or sold in violation of State or 
foreign law or any plant taken, possessed, transported or sold 
in violation of any State law. There are misdemeanor felony 
criminal and civil penalties for violations of the Act, and 
strict liability is established for forfeiture of illegal fish, 
wildlife or plants.
      Current law applies to all fish and wildlife and their 
parts, but is much narrower in its application of plants. The 
Lacey Act currently only applies to species of plants that are 
native to the United States and that are specifically protected 
either under State law or the Convention on International Trade 
in Endangered Species of Wild Fauna and Flora. It currently 
does not apply to plants that are protected under foreign laws.
      Because the Lacey Act does not extend to plants that are 
taken, transported, or sold in violation of foreign laws, the 
U.S. government is not able to use the criminal and civil 
penalties of the Act to preclude the importation of wood and 
wood products or other plants and plant products harvested in 
violation of the laws of foreign governments designed to 
protect such plants, or to seize such illegally harvested 
plants and products when they enter the United States. 
According to Justice Department enforcement officials, changes 
to the Lacey Act that would extend its coverage to plants taken 
in violation of foreign laws would allow law enforcement 
officers to initiate actions similar to those they now use for 
fish and wildlife taken in violation of foreign laws.
      Section 8204 of the Senate amendment amends the 
prohibited acts section of the Lacey Act by making it unlawful 
to import any plant or plant product taken in violation of 
foreign laws related to the harvest, taking and protection of 
plants or to fees or taxes applicable to the plants.
      The Conference substitute amends the Senate amendment to 
clarify the definition of the term ``plant.'' This definition 
clarifies that ``wild'' members of the plant kingdom includes 
trees, whether they are naturally or artificially regenerated. 
The inclusion of trees, whether in natural or planted forest 
stands, is consistent with the longstanding interpretation of 
the Lacey Act to cover wild species whether the specimens are 
taken from the wild or captive bred.
      The exclusions to the term ``plant'' in section 2 
subsection (f)(2) of the Lacey Act are meant to maintain the 
exclusions in current law with respect to cultivars and food 
crops.
      The exclusion to the definition of ``plant'' in the new 
subsection (f)(2)(C) of section 2 of the Lacey Act applies to 
plants (as that term is defined in new subsection (f)(1)) that 
are to remain planted or to be planted or replanted, and should 
include related or preparatory uses such as grafting or plant 
breeding. Thus, consistent with subsection (f)(1) of the Act, 
any member of the plant kingdom, including roots, seeds, 
germplasm, cuttings, parts, or products thereof, and including 
trees from either natural or planted forest stands, that is to 
remain planted or to be planted or replanted is covered under 
the exclusion.''
      The Conference substitute adds a new Section 7(c) to the 
Lacey Act which authorizes the Secretaries of Agriculture and 
the Interior to promulgate regulations to define the terms used 
in section 2(f)(2)(A). The Managers added this new section to 
clarify the scope of what constitutes common cultivars and 
common food crops. The Managers are aware that some plant 
species produced in agricultural settings as cultivars or for 
food, food supplements, or medicines, also continue to be taken 
from the wild in volumes that threaten the conservation of 
these species. For example, the Court in United States v. 
McCullough, 891 F. Supp. 422 (N.D. Ohio 1995) read the current 
Lacey Act exclusion from the definition of plant for ``common 
food crops and cultivars'' as applying to American ginseng, a 
species that is artificially produced but also threatened in 
the wild by unsustainable exploitation. Therefore, the Managers 
added section 7(c) to the Act to help clarify the terms of this 
exclusion such that trade in cultivars and common food crops is 
not unduly burdened, while wild plant species threatened with 
extinction (which may also be artificially produced) are 
adequately protected from illegal and unsustainable 
exploitation.
      The Managers are aware that the exclusion to the 
definition of ``plant'' in section 2, subsection (f)(2)(A), 
could capture some commonly cultivated trees, grown on very 
short rotation, in a farm or nursery and not in a forest stand, 
that are harvested (as compared with those that are replanted) 
but do not typically face problems with illegal logging. Such 
trees could include conifers grown and harvested for Christmas 
trees or trees not typically grown in forest stands grown and 
harvested for floral arrangements. It is the intention of the 
managers to allow the Secretaries of Agriculture and the 
Interior, through the promulgations of regulations as provided 
in section 7(c), to clarify the application of this Act and 
minimize the burden on growers of Christmas trees and other 
flowering trees, for which the Secretaries have determined 
there is little risk of illegal harvesting.
      It is the Manager's intention that in developing any 
regulations pursuant to this Act, the Secretaries of 
Agriculture and the Interior minimize the cost and regulatory 
burden placed on importers and consumers of plants and plant 
products covered by this Act. The Managers note in particular 
that the statutory language creating the requirement for a 
plant declaration does not include, or reference any authority 
to impose user fees to administer this provision. The Managers 
intend that the administration of the plant declaration 
requirement be carried out using appropriated funds and urge 
caution on the part of the Administration in seeking to 
interpret other laws to enable the taxation of importers of 
plants and plant products for this purpose. Additionally, the 
Managers urge the Secretaries of Agriculture and the Interior 
to develop a system to allow electronic filing of plant 
declarations required under this Act.
      It is the Manager's intention that with regards to 
``plants'', in this Act, term ``Secretary'', as clarified in 
paragraph (a) subparagraph (2), means primarily the Secretary 
of Agriculture. The addition of the term ``also'' is meant to 
ensure that the Secretary of Agriculture consults with the 
Secretary of the Interior and the Secretary of Commerce in the 
implementation of this Act. This modification should not be 
interpreted to remove the Secretary of Agriculture as the lead 
authority with respect to plants. (Section 8204)

(28) Green Mountain land exchange/sale

      The Senate amendment authorizes the Secretary to sell or 
exchange a few specific parcels in the Green Mountain National 
Forest designated on the map entitles ``Proposed Bromley Land 
Sale or Exchange'' dated April 7, 2004. Funds from the sale of 
this land are to be used to relocate small portions of the 
Appalachian Trail or purchase additional land within the 
boundary of the Green Mountain National Forest. (Section 8205)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 8303)

(29) Timber contracts

      The Senate amendment authorizes the Secretary to cancel 
or re-determine rates of qualifying timber contracts if the 
rate at which a qualifying contract would be advertised on the 
date of enactment of this language is at least 50 percent less 
than the original purchased rate of the contract. The Secretary 
is also authorized to substitute the Producer Price Index for 
other authorized producer price indexes for a qualifying 
contract. The Secretary is authorized to extend re-determined 
contracts by one year. The provision is to have the effect of 
surrendering any claim by the United States against any timber 
purchaser that arose under a qualifying timber contract before 
the date of enactment of the provision. (Section 8301)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to allow the Secretary to adjust the terms of 
certain hardwood lumber contracts, if the Secretary does not 
substitute the Producer Price Index. The Secretary is also 
allowed to apply market-related contract term additions, 
consistent with regulations, to contracts awarded before 
January 1, 2007. (Section 8401)
      The Managers appreciate the efforts of the Forest Service 
to provide certain contractual relief to timber sale purchasers 
within their legal abilities under the timber sale contract and 
through existing regulations during these times of difficult 
markets. In that context, the provisions within this section 
provide additional help to timber sale purchasers. The Forest 
Service is encouraged to implement this section as quickly as 
possible. Because the provision in paragraph (c) is limited in 
scope, i.e. contracts awarded prior to January 1, 2007, the 
Managers encourage the Forest Service to revise the existing 
regulations within 90 days of enactment of this Act to reflect 
provisions of this section for future market problems. The 
Forest Service should modify existing contracts upon the 
request of the purchaser to include these revised regulations 
so that purchasers will not have similar problems with Market 
Related Contract Term Adjustments in the future.

(30) Land conveyances, New Mexico and Virginia

      The Senate amendment authorizes the conveyance, without 
consideration, of certain lands in New Mexico, to the 
Chihuahuan Desert Nature Park. (Section 11075)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize the conveyance, without 
consideration, of certain lands in the George Washington 
National Forest. (Section 8302)

                            TITLE IX--ENERGY


(1) Table of contents

      The House bill provides a table of contents. (Section 
9001)
      The Senate amendment provides a substitute amendment to 
title IX of FSRIA of 2002. The amendment makes the new section 
9001 the definitions section and includes definitions for: 
Administrator, Advisory Committee, advanced biofuel, biobased 
product, biofuel, biomass conversion facility, biorefinery, 
board, Indian Tribe, Institute of Higher Education, 
intermediate ingredient or feedstock, renewable biomass, 
renewable energy, rural area and Secretary. (Section 9001)
      The Conference substitute adopts the Senate approach of 
amending title IX of the FSRIA of 2002 and accepts the Senate 
definitions with amendments. (Section 9001, new section 9001 of 
FSRIA)
      The Managers intend that the term ``advanced biofuel'' 
includes home heating fuels and aviation and jet fuels made 
from cellulosic biomass.

(2) Federal procurement of biobased products

      The House bill clarifies that products with at least 5 
percent of intermediate ingredients and feedstocks, that are 
biobased, should be considered for a procurement preference. 
(Section 9002(a))
      The Senate amendment changes the name of this section to 
Biobased Markets Program and clarifies that products to be 
considered for procurement preference should be composed of at 
least 5 percent of biobased intermediate ingredients and 
feedstocks, or a lesser percentage that the Secretary 
determines to be appropriate. (Section 9001)
      The Conference substitute deletes both of these 
provisions.

(3) Designation and information provided

      The Senate amendment provides for designation of items 
for which there is only one product or manufacturer in the 
category and automatic designation of items composed of at 
least 50 percent biobased intermediate ingredients or 
feedstocks. It also specifies that information provided for a 
biobased intermediate ingredient or feedstock shall be 
considered to be provided for an item composed of that 
ingredient or feedstock. This subsection also specifies that 
the Secretary may not require more information from 
manufacturers or vendors of biobased products than is required 
from other vendors or manufacturers. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments. (Section 9001, new Section 9002 of FSRIA)
      The Managers recognize that USDA and its contractors have 
developed considerable capabilities in the designation of 
biobased products and have established an extensive network of 
biobased industry contacts. The Managers encourage USDA to 
continue to utilize those capabilities and resources in 
carrying out the biobased products procurement and labeling 
programs.

(4) State procurement models

      The Senate amendment directs the Secretary to offer 
models for States for procurement of biobased products within 
180 days of enactment. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
The Managers encourage the Secretary to make models for the 
procurement of biobased products available to States upon 
request.

(5) Procurement guideline considerations

      The House bill clarifies that the Secretary should 
consider life cycle costs only to the extent that information 
on life cycle costs is appropriate and available. (Section 
9002(b))
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.

(6) Labeling requirement and revised deadline

      The House bill requires the Secretary to issue new 
regulations for the program within 90 days of enactment with 
criteria for finished products and intermediate ingredients and 
feedstocks. It also requires the Secretary to consult with 
other Federal agencies and non-governmental groups with an 
interest in biobased products, including small and large 
producers of biobased materials and products, industry, trade 
organizations, academia, consumer organizations, and 
environmental organizations. (Section 9002(c))
      The Senate amendment is the same as the House bill, 
except consultation is with the Administrator and 
representatives from small and large businesses, academia, 
other Federal agencies and such other persons as the Secretary 
considers appropriate. (Section 9001)
      The Conference substitute adopts the Senate provision. 
(Section 9001, new Section 9002 of FSRIA)

(7) Biobased Markets Program--Establishment

      The Senate amendment establishes a voluntary program 
under which the Secretary is directed to recognize agencies, 
contractors and persons that use significant amounts of 
biobased products. (Section 9002(b)(4))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 9001, new Section 9002 of FSRIA)

(8) Biobased Markets Program--Applicability

      The Senate amendment requires that Capitol Complex 
procurement shall comply with the biobased product mandate 
within 90 days of enactment. The Senate amendment also requires 
the secretary to sponsor or support a biobased products 
showcase annually. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute does not require that the 
Capitol Complex procurement comply with the biobased product 
mandate, but encourages the Capitol procurement agencies to 
consider products designated under this program when making 
their procurement decisions. (Section 9001, new Section 9002 of 
FSRIA)
      The Managers also encourage the Secretary to continue 
outreach activities to the applicable agencies that may include 
an annual showcase of biobased products to meet the 
requirements of this section.

(9) Biobased Markets Program--Testing centers

      The Senate amendment permits the Secretary to establish 
one or more national testing centers for biobased products, 
giving preference to entities with established biobased testing 
capabilities. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute directs the Secretary to create 
a national registry of biobased product testing centers. 
(Section 9001 new Section 9002 of FSRIA)
      The Managers intend that the registry should include 
entities with expertise in performance testing, verifying 
conformance with long-term performance standards, establishing 
biobased contents, evaluating uniformity of product quality, 
and other biobased product characteristics that producers may 
require. The Managers believe that the University of Northern 
Iowa is an example of an appropriate entity for listing in the 
national registry because of its biobased product testing 
activities.

(10) Biobased Markets Program--Education and awareness

      The Senate amendment establishes a new Education and 
Awareness campaign for bioenergy (other than biodiesel) and 
biobased products, which is to be carried out through 
competitive grants to eligible entities. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(11) Authorization of appropriations; Federal procurement

      The House bill caps the currently unlimited authorization 
at $1,000,000 annually for 2008-13 to implement the section 
(other than the labeling provisions). (Section 9002(d))
      The Senate amendment provides for mandatory funding of 
$3,000,000 annually for 2008 through 2012 to carry out 
mandatory testing and implement the bioenergy education and 
awareness campaign. Any additional sums, as necessary, are 
authorized. (Section 9001)
      The Conference substitute provides for mandatory funding 
$1,000,000 in fiscal year 2008 and $2,000,000 annually for 2009 
through 2012 to carry out mandatory testing and labeling. The 
Conference substitute authorizes an additional $2,000,000 per 
year for fiscal year 2009 through fiscal year 2012. (Section 
9001, new Section 9002 of FSRIA)

(12) Authorization of appropriations--Labeling

      The House bill authorizes $1,000,000 annually for 2008-
2013 for labeling. (Section 9001)
      The Senate bill contains no comparable provision.
      The Conference substitute deletes the House provision.

(13) Report requirements--Report by agencies to administrator for 
        Federal procurement policy

      The House bill requires procurement agencies to assist 
the Administrator for Federal Procurement by submitting annual 
reports and requires the Secretary of Agriculture to submit a 
report to Congress on implementation 6 months after enactment 
and annually thereafter. (Section 9002 (e))
      The Senate amendment provides that the Office of Federal 
Procurement Policy submit a report to Congress every 2 years 
describing implementation progress, including information 
provided by the Agencies with specific data related to the 
biobased procurement requirement. It requires the Secretary to 
report to Congress on program implementation within 180 days 
and each year thereafter. (Section 9001)
      The Conference substitute adopts the Senate provision 
with amendments. The substitute requires a report on program 
implementation progress and program details once every 2 years, 
and deletes the requirement to report to Congress after the 
first 180 days. (Section 9001, new Section 9002 of FSRIA)

(14) Grants and loan guarantees for biorefineries and biofuel 
        production plants

      The House bill provides for loan guarantees to help pay 
for development and construction of biorefineries and biofuel 
production plants and retrofitting of other facilities to 
demonstrate the commercial viability of converting biomass to 
fuels or chemicals. (Section 9003(3))
      The Senate amendment renamed this section as the 
Biorefinery and Repowering Assistance Program. It establishes 
grants for pilot or demonstration scale biorefineries, for 
repowering projects, and for repowering feasibility studies. It 
establishes loan guarantees for commercial scale biorefineries 
and repowering projects. Biorefineries are limited to advanced 
biofuels production. Repowering projects replace fossil fuel 
energy systems with renewable energy systems for biorefineries 
(including corn ethanol plants), power plants, or manufacturing 
facilities. (Section 9001)
      The Conference substitutes a provision entitled 
``Biorefinery Assistance,'' which provides for grants and loan 
guarantees for construction and retrofitting of biorefineries 
for the production of advanced biofuels. The substitute 
provides for grants for constructing demonstration-scale 
biorefineries, and loan guarantees for the development and 
construction of commercial-scale biorefineries that use 
technologies that are either pre-commercial or commercially 
available. (Section 9001, new section 9003 of FSRIA)
      The Managers believe that it is in the nation's interest 
to accelerate the commercialization of the production of 
advanced biofuels. The Managers also are aware that several 
commercial biorefinery projects are at the advanced planning 
stages and are ready for construction as soon as loan 
guarantees can become available through this program.
      Therefore, the Managers expect the Secretary to implement 
this program as soon as possible in fiscal year 2009. The 
Managers have provided specific funding for this program for 
fiscal year 2009 to emphasize the need to implement this 
program as soon as possible. To enable expedited implementation 
of this program, the Managers expect that the Secretary 
consider issuing a Notice of Funds Availability (NOFA) to 
initiate the program as was done in the case of the section 
9006 grants program after passage of the Farm Security and 
Rural Investment Act of 2002. The Managers expect that the NOFA 
will comply with, and be consistent with the spirit of, the 
provisions contained in section 9003 of this Act. At the same 
time of the release of the NOFA, the Managers expect the 
Secretary will issue an Advanced Notice of Proposed Rulemaking 
(ANPR) to offer the public an opportunity to provide comments 
regarding the development of an Interim Rule for this program. 
Specifically, the Managers expect the ANPR will solicit 
comments with respect to critical issues regarding the 
implementation of section 9003, such as whether the program 
loan guarantee will cover construction of the facility or be 
limited to post construction financing. It is expected that 
comments received will be included in the record of subsequent 
rulemaking regarding this program and will be considered by the 
Secretary during the development of such regulations. To 
further facilitate the rapid implementation of this program, 
the Managers expect that the Secretary consider using the 
processes and aspects developed for existing USDA loan 
guarantee programs including the Business and Industry Program 
and the Rural Energy for America Program (including its 
predecessor the section 9006 program), in the initial 
development of this program, especially if the Secretary 
intends to initiate implementation through the use of a NOFA.
      To ensure that proposals that are not yet in their final 
development stage can be considered, the Managers expect the 
Secretary to reserve funds for the second half of each fiscal 
year and reserve a portion of funds to be made available over 
the life of the Farm Bill.
      The Managers also expect the Secretary to take steps to 
evaluate the credit worthiness and the technical merit of 
proposals to make decisions regarding the responsible use of 
funds.
      It is the intent of the Managers that the Secretary use 
the approach for defining pre-commercial and commercially 
available technologies that were adopted in the regulations for 
Section 9006 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8106) prior to the date of enactment of this 
Act.
      It is the intent of the Managers that, to the maximum 
extent practicable, preference be given to applicants seeking 
assistance for development and construction of biorefineries 
planning to convert cellulosic biomass feedstocks into advanced 
biofuels. It is also the intent of the Managers that for the 
purpose of ranking applications under the Biorefinery Program, 
the level of financial participation by the applicant from non-
federal sources could include direct financial support, 
technical support, and contributions of in-kind resources, 
including such kinds of support from state governments.
      The Managers expect that demonstration or pilot-scale 
facilities will demonstrate the potential of a technology for 
commercial application at a biorefinery, including operational 
characteristics such as throughput rates and process yields.
      It is the intent of the Managers that the Secretary use 
the approach for defining pre-commercial and commercially 
available technologies that were adopted in the regulations for 
Section 9006 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8106) prior to the date of enactment of this 
Act.
      The Managers understand that over the life of this Act, 
it is likely that mandatory funding provided for loan 
guarantees will be awarded to commercial projects that are 
first-of-a-kind. This may include the commercial application of 
a technology that is: expanded to new regions, modified to 
utilize different feedstocks, or substantially improved such 
that it represents a significant technological risk.
      It is the intent of the Managers that existing facilities 
including wood products facilities and sugar mills seeking to 
retrofit the facility with technologies to produce advanced 
biofuels be eligible for assistance under this section.
      The Conference substitute establishes a new section to 
support the repowering of existing biorefineries by making 
payments for the installation of new systems that use renewable 
biomass or for the new production of energy from renewable 
biomass. (Section 9001, new section 9004 of FSRIA)
      It is the intent of the Managers that this repowering 
program should focus on biorefineries whose primary product is 
liquid transportation biofuels. The Managers encourage the 
Secretary to consider providing payments over time to help to 
ensure that repowering projects are operated as intended and 
produce the reduction in fossil fuels projected. The Managers 
also intend that new energy production need not come from a new 
energy system in order to be eligible for new production 
payments. The Managers also intend that no support should be 
given for installation or operation of repowering facilities 
that use feed grains that receive Title I payments, such as 
corn, as their energy source.

(15) Grants--Limitations

      The Senate amendment provides for grants for pilot or 
demonstration scale biorefineries limited to 50 percent of 
project costs, grants for repowering projects limited to 20 
percent of project costs and grants for repowering feasibility 
studies limited to the lesser of 50 percent of study costs and 
$150,000. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute authorizes grants for pilot or 
demonstration scale biorefineries for up to 30 percent of 
project costs. (Section 9001, new section 9003 of FSRIA)

(16) Loan Guarantees--Limitations

      The House bill requires that loan guarantees not exceed 
90 percent of the principal and interest due on the loan. It 
provides that the total amount of principal and interest 
guaranteed may not exceed $1,000,000,000 for relatively small 
plants (up to $100,000,000) and may not exceed $1,000,000,000 
for larger plants ($100,000,000-$250,000,000). The Secretary 
determines the maximum loan term. (Section 9003(3))
      The Senate amendment authorizes the Secretary to 
guarantee up to 100 percent of the principal and interest on 
such loans. The principal amount of a loan guaranteed for 
commercial biorefineries is limited to $250,000,000. The 
principal amount of a loan guaranteed for repowering projects 
is limited to $70,000,000. A loan guaranteed for a commercial 
biorefinery or repowering a biomass conversion facility shall 
not exceed 80 percent of project costs. (Section 9001)
      The Conference substitute limits guarantees to 90 percent 
of the principal and interest on loans. The maximum principal 
amount of a loan guaranteed may not exceed $250,000,000 or 80 
percent of project costs. The substitute requires that the 
amount of the loan guaranteed by the Department be reduced by 
the amount of other direct Federal funding going toward the 
project. (Section 9001, new section 9003 of FSRIA)

(17) Loan guarantees (and grants)--Priority

      The House bill provides selection criteria for loans 
which follow those for the existing grants program in section 
9003 of FSRIA. Two new selection criteria are added to address 
the level of local ownership and the impact on other users of 
feedstocks. (Section 9003(4))
      The Senate amendment's selection criteria for grants 
follow those for the existing grant program in Section 9003 of 
FSRIA. One new selection criterion is added: whether the 
distribution of funds would have minimal impact on existing 
manufacturing and other facilities that use similar feedstocks. 
Selection criteria for grants for repowering projects include 
the change in energy efficiency, the reduction in fossil fuel 
use, and the volume of biomass feedstock within a proximity to 
make local sourcing economically practicable. Preference for 
grants and loan guarantees is to be given to projects that 
receive financial support from the State in which they are 
located and priority is given to projects with significant 
local ownership. (Section 9001)
      The Conference substitute requires a feasibility study 
conducted by a third party be submitted as part of any 
application. Ranking criteria for grants include: the potential 
market for the biofuel and by-products; the level of financial 
participation by the applicant including other non-Federal and 
private sources; whether the applicant is proposing to use a 
feedstock not previously used in advanced biofuel production; 
whether the applicant is proposing to work with producer 
associations or cooperatives; whether the process will have a 
positive impact on resource conservation, public health and the 
environment; the potential for rural economic development; 
whether the area where the proposed facility will be located 
has other similar facilities; whether the project can be 
replicated; and the scalability of the proposed technology to 
commercial production.
      Ranking criteria for the loan guarantees include the same 
criteria as for the grants, with several changes and additions, 
including: whether the applicant has an established market for 
the biofuels and by-products; whether the applicant can 
establish that, if adopted, the biofuels production technology 
proposed in the application will not have any significant 
negative impacts on existing manufacturing and other facilities 
that use similar feedstocks; and the level of local ownership 
proposed in the application. The scalability of the project is 
not included in the loan guarantee criteria. (Section 9001, new 
section 9003 of FSRIA)
      In considering the level of financial participation by 
the applicant from non-federal sources, it is the intent of the 
Managers that such support could include direct financial 
support, technical support, and contributions of in-kind 
resources, including such kinds of support from state 
governments.

(18) Loan guarantees (and grants) condition of assistance

      The House bill requires prevailing wages for workers on 
projects financed under the section. (Section 9003(5))
      The Senate bill contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 9001, new section 9003 of FSRIA)

(19) Requirement for commitment

      The Senate amendment states conditions for assistance in 
the form of a loan guarantee include a binding commitment to 
cover at least 20 percent of project costs from non-Federal 
funds, demonstration of technology readiness, and demonstration 
that investment opportunities have been offered to local 
investors. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(20) Loan guarantees (and grants) funding

      The House bill extends the grant program in section 9003 
of FSRIA through fiscal year 2012 and specifies mandatory 
funding levels for loan guarantees that total $800,000,000 over 
the period fiscal year 2008 through fiscal year 2012. (Section 
9003(6)(7))
      The Senate amendment provides mandatory funding of 
$300,000,000 for fiscal year 2008 to remain available until 
expended. (Section 9001)
      The Conference substitute provides mandatory funding of 
$75,000,000 for fiscal year 2009 to remain available until 
expended and $245 for fiscal year 2010 to remain available 
until expended for loan guarantees. It also authorizes 
$150,000,000 annually for fiscal year 2009 through fiscal year 
2012. (Section 9001, new section 9003 of FSRIA)

(21) Energy audit and renewable energy development program

      The House bill extends the energy audit and renewable 
energy development program through 2012. (Section 9004)
      The Senate amendment folds the energy audit program into 
the new REAP program. (Section 9001)
      The Conference substitute adopts the Senate provision 
with amendments as presented below. (Section 9001, new Section 
9007 of FSRIA)

(22) Rural Energy for America Program--Name

      The House bill renames program under section 9006 the 
``Rural Energy for America Program.'' (Section 9005(2)(3))
      The Senate amendment is the same as the House bill, 
except that section 9006 is renumbered to become section 9007. 
(Section 9001)
      The Conference substitute adopts the House provision. 
(Section 9001, new Section 9007 of FSRIA)

(23) Rural Energy for America Program--Eligible participant--Grants, 
        loans and loan guarantees

      The House bill expands program eligibility, which 
currently extends to farmers, ranchers, and rural small 
businesses, to also include ``other agricultural producers''. 
(Section 9005(2)(3))
      The Senate amendment provides for grants or loan 
guarantees for renewable energy systems and energy efficiency 
improvements for agricultural producers and rural small 
businesses. The Senate amendment excludes direct loans. 
(Section 9001)
      The Conference substitute adopts the Senate provision. 
(Section 9001, new Section 9007 of FSRIA)

(24) Rural Energy for America Program--Eligible participants--Energy 
        audit and renewable energy development assistance

    The Senate amendment adds State agencies and public power 
entities to eligible participants in the Energy Audit and 
Renewable Energy Assistance Program. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments to make units of State, tribal, or local 
governments eligible. (Section 9001, new section 9007 of FSRIA)
      The Managers expect the definition for the term public 
power entity used in this section to be the same as the 
definition of state utility as defined in section 217(a)(4) of 
the Federal Power Act (16 U.S.C. 824q(a)). The Committee 
intends that in carrying out subsection 9007(b), the Secretary 
may conduct a merit review process through the solicitation of 
input regarding applications from qualified experts either 
individually or collectively.

(25) Rural Energy for America Program--Eligible participants--Energy 
        from animal manure

      The Senate amendment specifies the following as eligible 
participants: agricultural producers; rural small businesses; 
rural cooperatives; and other similar entities. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
It is the intent of the Managers that the Rural Energy for 
America Program continue to provide significant support for 
projects that convert animal manure to energy, including both 
on-farm and community projects.

(26) Rural Energy for America Program--Eligible activities--Grants, 
        loans and loan guarantees

      The House bill expands to include sale of electricity 
generated by new renewable energy systems. (Section 9005(2))
      The Senate amendment adds production-based incentives for 
renewable energy to eligible activities, eliminates direct 
loans and renewable energy systems. (Section 9001)
      The Conference substitute deletes both provisions.

(27) Rural Energy for America Program--Eligible activities--Energy from 
        animal manure

      The Senate amendment provides for grants and loan 
guarantees for facilities to convert animal manure to energy, 
including associated feedstock gathering systems and gas 
pipelines, as well as first-year operating costs. For new 
technologies, the first 2 years of operation are eligible. This 
section also directs extension of the Energy Star program to 
address equipment and facilities for the agricultural sector. 
(Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers encourage the Secretary to compile and 
submit a list of equipment commonly used by agricultural 
producers to the Environmental Protection Agency and the 
Department of Energy for consideration in the existing Energy 
Star program.

(28) Rural Energy for America Program--Criteria and preference--Grants, 
        loans and loan guarantees

      The award considerations in the Senate amendment for 
energy efficiency improvements and renewable energy systems 
(section 9007(c)(2)) include: the type of renewable energy 
system; estimated quantity of renewable energy to be produced; 
expected environmental benefits; quantity of energy savings 
expected; expected energy savings payback time; and expected 
system's energy efficiency. Preferences for grants and loan 
guarantees under section 9007 are to be given to projects that 
receive financial support from the state in which they are 
located. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate award 
considerations, but deletes the Senate provision that gives 
preference to projects receiving state funds. (Section 9001, 
new Section 9007 of FSRIA)
      The Managers encourage the Secretary to continue funding 
animal manure digester projects. The Managers believe these 
projects have and will continue to be an important tool to 
produce renewable energy in rural areas, create value for 
agricultural producers, and address environmental concerns 
surrounding manure management. It is the Managers' intent that 
funding under this section may be used for the construction of 
infrastructure for collection and transportation of feedstocks 
and biogas for manure digesters, including community digesters. 
The Managers also intend that bioenergy production and 
utilization projects that also produce useful byproducts, such 
as fertilizer or biochar to be used as a soil conditioner, are 
eligible for support under the Rural Energy for America 
program.
      The Managers encourage the Secretary to use the 
references to energy efficiency and renewable energy sources in 
this section include geothermal heat pump systems using ground 
loops and that small hydroelectric systems (as determined by 
the Secretary) be considered renewable energy systems for the 
purpose of receiving financial assistance under this program.

(29) Rural Energy for America Program--Criteria and preferences--Energy 
        from animal manure

      The Senate amendment states selection considerations for 
energy from animal manure projects include quality of energy 
produced, net energy conversion efficiency, environmental 
issues, net impact on greenhouse gas emissions, diversity 
factors, and proposed costs. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(30) Rural Energy for America Program--Cost sharing

      The House bill increases the limit on the maximum amount 
of the combined loan and grant from 50 percent to 75 percent of 
the funded activity. It limits the maximum amount of loan 
guaranteed to 75 percent of the funded activity and not more 
than $25,000,000. (Section 9005(4))
      The Senate amendment states that for energy from animal 
manure projects: grants are limited to 50 percent of project 
costs for smaller systems costing less than $500,000; for 
larger projects, grants are limited to the greater of $250,000 
or 25 percent of project costs, with a cap of $2,000,000; loan 
guarantees are limited to loans not exceeding $25,000,000 and 
80 percent of developer's project costs. (Section 9001)
      The Conference substitute adopts the House provision. 
(Section 9001, new section 9007 of FSRIA)

(31) Rural Energy for America Program--Feasibility studies

      The House bill allows the Secretary to use up to 10 
percent of funds available under the section to provide 
assistance to eligible participants to conduct feasibility 
studies for eligible projects, but provides that if such 
assistance is provided, the participant is ineligible for 
assistance under other law for such assistance. (Section 
9005(6))
      The Senate amendment is the same as the House provision. 
(Section 9001)
      The Conference substitute adopts the House provision. 
(Section 9001, new section 9007 of FSRIA)

(32) Rural Energy for America Program--Reserve

      The House bill reserves 15 percent of funds for projects 
costing $50,000 or less. (Section 9005(6))
      The Senate amendment directs the Secretary to develop a 
streamlined process for projects seeking less than $20,000, and 
it directs that not less than 20 percent of the funds for this 
section be made available for such projects. (Section 9001)
      The Conference substitutes sets aside not less than 20 
percent of the funds for this section for grants of less than 
$20,000, with any remaining funds reverting to the general pool 
of funding on June 30 of each fiscal year. The substitute 
directs the Secretary to perform outreach at the State and 
local levels. This outreach should include local Rural 
Development, Farm Service Agency, Natural Resources 
Conservation Service and Extension offices. (Section 9001, new 
Section 9007 of FSRIA)

(33) Rural Energy for America Program--Funding

      The House bill reauthorizes the program and provides 
mandatory funding of $50,000,000 in fiscal year 2008; 
$75,000,000 in fiscal year 2009; $100,000,000 in fiscal year 
2010; $125,000,000 in fiscal year 2011; and $150,000,000 in 
fiscal year 2012. (Section 9005(7))
      The Senate amendment provides mandatory funding of 
$230,000,000 in fiscal year 2008, to remain available until 
expended, for audits, loan guarantees and grants for energy 
efficiency improvements and renewable energy systems and loan 
guarantees and grants for animal manure facilities. It 
specifies that not less than 5 percent of the funding is to be 
used for Energy Audit and Renewable Energy Development Program 
and not less than 15 percent is to be used for animal manure 
facilities. It also authorizes additional funds as necessary to 
carry out this section from fiscal year 2008 through fiscal 
year 2012. (Section 9001)
      The Conference substitute provides mandatory funding of 
$50,000,000 in fiscal year 2009, $60,000,000 in fiscal year 
2010, and $70,000,000 annually in fiscal year 2011 and fiscal 
year 2012. It also specifies that 4 percent is to be used for 
the Energy Audit and Renewable Energy Development Assistance 
portion of the program. The Conference substitute authorizes an 
additional $25,000,000 annually from fiscal year 2009 through 
fiscal year 2012. (Section 9001, new section 9007 of FSRIA)

(34) Biomass Research and Development Act of 2000

      The House bill modifies findings to include biodiesel. It 
increases the number of individuals affiliated with an 
environmental or conservation organization on the Advisory 
Committee from 1 to 2. It adds an individual with expertise in 
agronomy, crop science, or soil science to the Advisory 
Committee. The provision includes language to improve dried 
distillers grain quality and clarifies the role of commercial 
applications in the objectives of the Biomass Research and 
Development Initiative. It requires the Secretary to submit a 
management plan to Congress every five years evaluating the 
success of the Initiative. It also provides mandatory funding 
of $35,000,000 for fiscal year 2008; $60,000,000 for fiscal 
year 2009; $75,000,000 for fiscal year 2010; $100,000,000 for 
fiscal year 2011; and $150,000,000 for fiscal year 2012. The 
House bill does not change the current law provision that 
authorizes an additional annual appropriation of $200,000,000 
through fiscal year 2015. It amends technical study areas to 
clarify that research areas include sugar processing and 
refining plants and self-processing crops that express enzymes 
capable of degrading cellulosic biomass. (Section 9006)
      The Senate amendment removes findings from the language. 
It changes ``biobased fuel'' to ``biofuel'' and ``biomass'' to 
``renewable biomass'' for consistency across the Title. It also 
adds an individual with expertise in plant biology and biomass 
feedstock development. The provision adds language to emphasize 
research on harvest, collection, transport and storage of 
renewable biomass feedstocks. It removes specific funding 
allocations to the different technical areas and instead 
requires that at least 15 percent of funds go to each technical 
area. The Senate language requires the Secretary to submit a 
management plan to Congress every five years evaluating the 
success of the Initiative. It provides mandatory funding of 
$15,000,000 for fiscal year 2008; $25,000,000 for fiscal year 
2009; and $35,000,000 for fiscal year 2010. The Senate 
amendment authorizes an additional annual appropriation of 
$85,000,000 through fiscal year 2012. (Section 9001)
      The Conference substitute moves the Initiative in statute 
to Title IX of the FSRIA of 2002. It removes findings from the 
language and changes ``biobased fuel'' to ``biofuel'' and 
``biomass'' to ``renewable biomass'' for consistency across the 
Title. The substitute increases the number of individuals 
affiliated with an environmental or conservation organization 
on the Advisory Committee from 1 to 2, adds an individual with 
expertise in plant biology and biomass feedstock development 
and adds an individual with expertise in agronomy, crop 
science, or soil science to the Advisory Committee. The 
substitute reduces the number of technical areas from 6 to 3 
and streamlines considerations for grant selection. The new 
technical areas include feedstock development, biofuels and 
biobased products development, and biofuels development 
analysis. At least 15 percent of the available funding is 
required to be allocated to each of the three technical areas. 
The substitute also increases the minimum cost-share 
requirements for demonstration projects from 20 percent to 50 
percent and for research projects from 0 percent to 20 percent, 
with a provision that allows the Secretary to waive the 
matching requirement for research if a waiver is determined to 
be necessary and appropriate.
      The substitute provides mandatory funding of $20,000,000 
in fiscal year 2009, $28,000,000 in fiscal year 2010, 
$30,000,000 in fiscal year 2011, and $40,000,000 in fiscal year 
2012. It authorizes $35,000,000 per year for fiscal year 2009 
through fiscal year 2012. (Section 9001, new section 9008 of 
FSRIA)
      The substitute replaced language that was included in the 
Energy Independence and Security Act of 2007 (P.L. 110-140) 
(EISA) that amended Section 307(d) of the Biomass Research and 
Development Act of 2000 (7 U.S.C. 8606(d)). In order to ensure 
the sustainable production of biofuels, the Managers want to 
clarify that an intention of Sec. 9008(e)(3)(C)(ii) is to 
improve and develop analytical tools to facilitate the analysis 
of life-cycle energy and greenhouse gas emissions, including 
emissions related to resource management, associated with all 
potential biofuel feedstocks and production processes.
    The Managers encourage the Board to consider funding 
projects that address the critical need for integrated research 
and technology development in the area of biofuels. Funded 
projects should consider an integrated approach along the full 
biofuels and biobased products value chain and should serve as 
a platform for both technology transfer and workforce 
development. The Managers recognize that the New Century Farm 
project at Iowa State University specifically includes 
integrated research and development activities ranging from 
cropping practices and feedstock production, to biomass harvest 
and handling, and including biorefinery conversion processes. 
The Managers also are aware that Pennsylvania State University 
is working on all aspects of biofuels development from plant 
transformation to production, harvest, and storage; and from 
biomass pretreatment to fuel formulation and engine testing in 
collaboration with private industry and the government. The 
Managers are aware that Claflin University has been undertaking 
work in the area of biofuels and biobutanol and hope they can 
continue that work. The Managers recognize that these are 
viable models which can provide invaluable feedback and 
systematic improvement to development of a national biofuels 
infrastructure.
      The Managers recognize the tremendous potential market 
that exists in this country for renewable aviation and jet 
fuel, and acknowledges that while much research and development 
has been directed toward the development of biofuels for ground 
transportation, the development of renewable aviation fuels has 
lagged far behind. For this reason, the Managers encourage the 
Secretary of Agriculture and the Secretary of Energy to give 
equal consideration to projects under this initiative that 
would perform innovative and beneficial research and commercial 
development of renewable aviation fuels.
      The Managers are aware of the use of algae to create 
biodiesel fuels, and believe this technology will contribute to 
relieving the U.S. of its dependence on fossil fuels. The 
Managers understand that algal-based oil yields are 2-3 times 
that of the highest yielding land plants and that algae can be 
cultured on land unfit for traditional commercial crops. The 
Managers encourage the Department to support existing 
algaculture laboratories that have the ability to develop 
algal-based feedstocks for the biodiesel industry. The Managers 
request the Department to report back within 90 days, or as 
soon as practicable on the status of this effort.
      The Managers hope that scientists and students at 
minority serving institutions, such as the nation's 
historically black colleges and universities and Hispanic-
serving institutions will utilize this program and other 
research and development programs in this title to continue the 
development of biofuels and biobased products in all regions of 
the country.
      The Managers also believe that this program plays a 
critical role in bridging the funding gap that many promising 
technologies face after university basic research is completed 
and before becoming attractive to venture capitalists and 
commercialized in the market. The Managers believe that support 
between basic research and commercialization is important for 
quickly bringing new technologies to market, and the Managers 
urge the Secretary to make sufficient funds available to 
address this issue.
      The Managers encourage consideration of collaborative 
research on corn and cellulosic genomics to support improved 
biofuels conversion processes.
      The Managers recognize the need for research and 
development to convert forest biomass to advanced biofuels and 
encourage USDA and DOE, in implementing the authorities in this 
section, work in partnership with the Forest Service to develop 
new techniques, technologies and methods toward this goal. The 
Managers do not intend the additional authority in section 9012 
to preclude these activities under this section.

(35) Adjustments to the bioenergy program--Eligibility

      The House bill clarifies that the term ``bioenergy'' also 
includes the production of heat and power at a biofuels plant, 
biomass gasification, hydrogen made from cellulosic commodities 
for fuel cells, and renewable diesel. The provision excludes 
corn starch from the list of eligible feedstock under the 
program. (Section 9007)
      The Senate amendment clarifies that this program is 
intended to support increased production of advanced biofuels, 
which includes fuels derived from renewable biomass excluding 
those derived from corn starch. (Section 9001)
      The Conference substitute directs the Secretary to make 
payments to producers of advanced biofuels to support a stable 
and expanding production base. The payments are to be based on 
the quantity and duration of production, the net non-renewable 
energy content of the advanced biofuel, and other factors as 
determined by the Secretary. (Section 9001, new section 9005 of 
FSRIA)
      It is the intent of the Managers that the Secretary 
support existing advanced biofuel production, as well as 
encourage new production.
      The Managers recognize that, with respect to forest 
biomass, the feedstock for the production of advanced biofuels 
is often the same feedstock used by forest products facilities, 
include pulp and paper mills. The Managers encourage the 
Secretary to consider competing market outlets when 
establishing the payment rate for such feedstocks.

(36) Adjustments to the bioenergy program--Renewable diesel

      The House bill defines renewable diesel. (Section 9007)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.

(37) Adjustments to the bioenergy program--Payment rate and priority

      The House bill provides for a priority based on factors 
listed in section 9003(e)(2)(B) of FSRIA. (Section 9007(2))
      The Senate amendment directs the Secretary to base 
payments on: level of production; price of feedstock; net 
nonrenewable energy content; and other appropriate factors. It 
restricts the payment to producers that do not receive the 
small producer tax credits and to production from facilities 
with capacity of less than 150,000,000 gallons per year. 
(Section 9001)
      The Conference substitute directs the Secretary to base 
payments on the quantity and duration of production, the net 
non-renewable energy content of the advanced biofuel, and other 
appropriate factors as determined by the Secretary. (Section 
9001, new Section 9005 of FSRIA)

(38) Adjustments to the bioenergy program--Project viability

      The House bill requires Secretary to review project 
viability before renewing contracts. (Section 9007(2))
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.

(39) Adjustments to the bioenergy program--Funding

      The House bill provides mandatory funds of $225,000,000 
for fiscal year 2008; $250,000,000 for fiscal year 2009; 
$275,000,000 for fiscal year 2010; $300,000,000 for fiscal year 
2011; and $350,000,000 for fiscal year 2012. (Section 9007(3))
      The Senate amendment provides mandatory funds of 
$245,000,000 for fiscal year 2008 to remain available until 
expended. (Section 9001)
      The Conference substitute provides mandatory funding of 
$55,000,000 in fiscal year 2009, $55,000,000 in fiscal year 
2010, $85,000,000 in fiscal year 2011, and $105,000,000 in 
fiscal year 2012. It authorizes $25,000,000 per year for fiscal 
year 2009 through fiscal year 2012. It stipulates that no more 
than 5 percent of each year's funding may be for production at 
facilities with a total refining capacity exceeding 150,000,000 
gallons per year. (Section 9001)

(40) Research, extension and educational programs on biobased energy 
        technologies and products

      The House bill extends current authorization for 
appropriations at a level of $75,000,000 through 2012. It 
provides a research focus for insular and Pacific areas. 
(Section 9008)
      The Senate amendment provides for mandatory funding of 
$5,000,000 for fiscal year 2008; and $10,000,000 for fiscal 
year 2009 and fiscal year 2010 and provides for authorization 
for appropriations at an annual level of $70,000,000 from 
fiscal year 2008 through fiscal year 2012. It provides for a 
``subcenter'' at the University of Hawaii with a research focus 
for insular and Pacific areas. (Section 9001)
      The Conference substitute adopts the Senate provision 
with amendments and moves the provision in statute to the 
Research Title of this Act. No mandatory funding is provided. 
The Conference substitute authorizes $75,000,000 per year for 
fiscal year 2008 through fiscal year 2010. (Section 7526)

(41) Regional biomass crop experiments

      The Senate amendment establishes a program of regional 
biomass crop experiments at 10 geographically dispersed and 
competitively selected land-grant universities. Crop 
experiments are to include all appropriate biomass species, 
including perennials, annuals, and woody biomass species. 
Selection criteria include crop experiment capabilities and 
experience, species and cropping practices proposed, crop 
experiment plan, and commitment of adequate acreage and 
resources. The provision calls for coordination among 
participants, with the Biomass Research and Development Board 
and with the Sun Grant Centers, and the establishment of a 
``best practices'' database on all aspects of biomass crop 
production. It provides mandatory funding of $40,000,000 over 
the life of the bill, to be allocated as $1,000,000, 
$2,000,000, and $1,000,000 per institution for years fiscal 
year 2008, fiscal year 2009, and fiscal year 2010, 
respectively. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers believe that the agricultural bioenergy 
feedstock and energy efficiency research and extension program 
included in section 7207 of the Research title will accomplish 
the purposes of this section.

(42) USDA Energy Council

      The House bill creates an Energy Council in the Office of 
the Secretary at USDA to coordinate energy policy at the 
Department and consult with other agencies. (The existing 
Office of Energy Policy and New Uses will support the 
activities of the Council.) (Section 9009)
      The Senate amendment directs the Secretary to assign 
coordination of projects and information, liaison work with 
other agencies and public outreach on USDA's energy programs to 
one entity within the Department. (Section 9001)
      The Conference substitute deletes both provisions.
      It is the intent of the Managers that the Department 
should implement the actions outlined in the Senate bill using 
existing authorities. It is also the Managers' intent that a 
single entity in the Department be responsible for coordinating 
energy policy activities in the Department and with other 
agencies.

(43) Farm energy production pilot program

      The House bill establishes a pilot program to provide 
grants to farmers for the purpose of demonstrating the 
feasibility of making a farm energy neutral using existing 
technologies. It authorizes $5,000,000 for fiscal years 2008 
through 2012. (Section 9010)
      The Senate amendment contains no comparable provisions.
      The Conference substitute deletes the House provision.
      The Managers believe that the purposes of this Section 
can be carried out through Section 7207 of the Research title.

(44) Rural energy self-sufficiency initiative and rural energy systems 
        renewal

      The House bill authorizes the Secretary to make cost-
share grants to enable eligible rural communities develop 
renewable energy systems to increase their energy self-
sufficiency. The provision authorizes appropriations of 
$5,000,000 in fiscal year 2008 and such sums as necessary in 
fiscal year 2009 through fiscal year 2012. (Section 9011)
      The Senate amendment: (1) establishes a program of 
competitive cost-shared grants for rural communities to assess 
their energy systems, and to formulate and implement strategies 
for improvements; (2) specifies appropriate activities; (3) 
requires a 50 percent cost share; (4) directs the USDA in 
consultation with DOE to provide technical assistance; and (5) 
authorizes $5,000,000 per year for fiscal year 2008 through 
fiscal year 2012. (Section 9001)
      The Conference substitute authorizes $5,000,000 per year 
for fiscal year 2009 through fiscal year 2012 for a program of 
cost-shared grants to enable rural communities to assess their 
energy usage, formulate strategies for improvements and install 
and utilize integrated renewable energy systems. (Section 9001, 
new Section 9009 of FSRIA)
      It is the intent of the Managers that energy assessments 
will include total energy usage by all members and activities 
of the community, including an assessment of energy used in 
community facilities, energy for heating, cooling, lighting, 
and energy for all other building and facility uses; energy 
used in transportation by community members; current sources 
and types of energy used; energy embedded in other materials 
and products; and the major impacts of the energy usage, 
including the impact on the quantity of oil imported, total 
costs, the environment, and greenhouse gas emissions.
      Energy system improvement strategies are intended to 
reduce conventional energy usage and greenhouse gas emissions 
by the community through adoption or use of measures such as 
building insulation, automatic controls on lighting and 
electronics, zone energy usage, and building energy 
conservation practices; transportation alternatives, vehicle 
options, transit options, transportation conservation, and 
walk- and bike-to-school programs; community configuration 
alternatives to provide pedestrian access to regular services; 
and community options for alternative energy systems, including 
alternative fuels, photovoltaic electricity, wind energy, 
geothermal heat pump systems, and combined heat and power.

(45) Agricultural biofuels from biomass internship pilot program

      The House bill authorizes an internship program to 
encourage students to pursue employment in renewable energy 
related jobs. (Section 9012)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.

(46) Feedstock flexibility program for bioenergy producers

      The House bill amends the energy title of FSRIA to 
require the Secretary to purchase sugar to produce bioenergy if 
necessary to avoid forfeitures of sugar to the Commodity Credit 
Corporation, and to ensure that the sugar loan program operates 
at no cost to the Federal government. (Section 9012)
      The Senate amendment is the same as the House bill. 
(Section 1501(f))
      The Conference substitute adopts the House provision with 
amendments. (Section 9001, new Section 9010 of FSRIA)
      Since the Feedstock Flexibility Program is a new program 
involving many interests, the Managers expect the program to be 
implemented following a public notice and comment period, 
providing an opportunity for all parties affected by the 
program to have input into its operations.

(47) Biomass inventory report

      The House bill requires the Secretary to conduct an 
inventory of biomass resources on a county by county basis and 
report to Congress within 1 year of enactment. (Section 9014)
      The Senate amendment requires the Secretary to conduct an 
assessment of the growth potential for cellulosic material on a 
state-by-state basis, and to report to Congress within 18 
months. (Section 9001)
      The Conference substitute deletes both provisions.
      The Managers believe that adequate biomass resource 
assessments are underway or planned. The Economic Research 
Service (ERS) in the Department is working on a biomass 
resource inventory and the Managers encourage the Secretary to 
continue this important work.

(48) Future farmsteads program

      The House bill establishes a program to advance farm 
energy use efficiencies and on farm production of renewable 
energies. (Section 9015)
      The Senate amendment is the same as the House bill. 
(Section 9001)
      The Conference substitute deletes both provisions.
      The Managers believe that the agricultural bioenergy 
feedstock and energy efficiency research and extension program 
included in section 7207 of the Research title will accomplish 
the purposes of this section.

(49) Sense of Congress on renewable energy

      The House bill provides a sense of Congress on renewable 
energy. (Section 9016)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.

(50) Biodiesel fuel education program.

      The House bill doubles funding to $2,000,000 annually for 
fiscal year 2008 through fiscal year 2012. (Section 9017)
      The Senate amendment is the same as the House bill except 
it adds oil refiners, automotive companies and owners and 
operators of watercraft fleets to the list of entities targeted 
for education about biodiesel. (Section 9001)
      The Conference substitute adopts the House provision 
except that it funds the program at $1,000,000 annually for 
fiscal year 2008 through fiscal year 2012. (Section 9001, new 
Section 9006)

(51) Biomass energy reserve

      The House bill establishes a biomass energy reserve (BER) 
and provides financial and technical assistance to landowners 
and operators to produce energy crops and harvest, store, and 
transport cellulosic material. BER project areas must be within 
a 50-mile radius of an existing bioenergy facility.
      Under the House provision, BER eligible crop land must 
have been tilled in the current or immediately preceding crop 
year, and does not include Federal land, certain forest land, 
or land enrolled in specified conservation programs (unless 
biomass harvest occurs in accordance with a conservation plan 
outside of nesting and rearing season, and payments under the 
conservation program are reduced--subsection (h)). (Forest land 
is covered in subsection (e), which provides $5,000,000 for 
grants to help owners develop plans for sustainable management 
of biomass from forest land.)
      Groups of owners and operators, energy and agricultural 
companies, and Agricultural Innovation Centers (AICs) are all 
``Eligible Applicants'' that may submit proposals for BER 
project areas. AICs have a dual role in the program, and may 
also serve as ``Qualified Organizations'', which assist other 
Eligible Applicants in developing proposals for approval by 
USDA.
      Under the House provision, the Secretary selects 10 
qualified organizations across the country. Qualified 
organizations, which may also be colleges and universities, 
help eligible applicants structure projects that will advance 
the goal of sustainable production of dedicated energy crops. 
Specifically, a qualified organization will help eligible 
applicants to identify suitable land and crop mixtures and get 
a commitment from a bioenergy facility. Program crops and 
invasive or noxious species are ineligible. Qualified 
organizations then rate the various project area applications 
according to a ranking system established by the Secretary, 
based on criteria set out in subsection (d)(5). The Secretary 
selects at least one project area in each of the 10 qualified 
organizations, which are regionally dispersed.
      Under the House provision, the Secretary enters into 5-
year contracts with owners and operators (Eligible 
Participants) in the BER project area. Such contracts must 
comply with certain conservation requirements and provide for 
information sharing. The Secretary makes Establishment Payments 
to eligible participants to cover seeds, stock, and the cost of 
planting, and annual Rental Payments in an amount to be 
determined by the Secretary.
      Under the House provision, the Secretary may also provide 
Matching Payments of not more than $45 per ton for collecting, 
harvesting, storing, and transporting biomass. (Matching 
Payments are at a rate of $1 for every $1 per ton paid by the 
bioenergy facility for the biomass. The Secretary must reduce 
Rental Payments if making a Matching Payment to an eligible 
participant.) Forest land owners are eligible for this Matching 
Payment if acting under a forest stewardship plan. (Section 
9018)
      The Senate amendment establishes a Biomass Crop 
Transition Assistance Program (BCTAP) to provide transitional 
assistance (including grants) for the establishment and 
production of eligible crops to be used in the production of 
advanced biofuels. The program includes assistance for the 
harvesting, transportation and storage of renewable biomass. 
Producers are not eligible to receive assistance for the 
establishment and production of crops eligible to receive 
benefits under Title I and that are invasive or noxious. 
Eligible land is defined as private agriculture or forest land 
planted or considered to be planted for at least 4 of the 6 
years preceding enactment.
      The Senate amendment provides that contract requirements 
include adherence to conservation compliance and implementation 
of a conservation plan approved by the local soil conservation 
district. The conservation plans should advance the goals and 
objectives of fish and wildlife conservation plans and 
initiatives and comply with mandatory environmental 
requirements for a producer under Federal, State and local law.
      Eligible participants under the Senate amendment include 
individual agricultural producers, forest land owners or other 
individuals holding the right to collect or harvest the crop. 
Farmer-owned cooperatives, agricultural trade associations (or 
similar entitles on behalf of producer members) may serve as 
aggregators and enter into contracts as eligible participants. 
The Secretary is directed to provide planning grants of up to 
$50,000 (with a required 100 percent match) to assist in 
assessing the viability for, or assembling of, a regional 
supply.
      Under the Senate amendment, the Secretary will enter into 
contracts for perennial crops, covering the cost of 
establishing the crops during the first year and each 
subsequent year the Secretary will make an incentive payment 
determined by the Secretary to encourage the participant to 
produce renewable biomass. All participants in this Section are 
required to keep records determined by the Secretary to allow 
for best practices to be studied and shared.
      Assistance under the Senate amendment is restricted to 
crops for use in the production of advanced biofuels, other 
biobased products, heat or power from a biomass conversion 
facility. Participants must have a letter of intent or proof of 
financial commitment from a biomass conversion facility and the 
production operation must be located in proximity of a biomass 
conversion facility to make delivery to the location 
economically practicable. Eligibility is also conditioned on 
the impact on wildlife, air, soil and water quality and 
availability and the local and regional economic impacts/
benefits.
      The Senate amendment allows the Secretary to provide 
technical assistance and establishment cost-sharing for 
eligible participants planting annual biomass crops. The crop 
shall not be eligible for benefits under Title I and assistance 
is conditioned on adherence to conservation compliance 
requirements.
      The Senate amendment also creates a program that provides 
fixed-rate payments to eligible participants for the estimated 
cost of collection, harvest, storage and transport of renewable 
biomass. It also provides for forest biomass planning grants to 
help forest landowners sustainably harvest woody biomass for 
heat, energy or biobased products for use in a biomass 
conversion facility.
      The Senate amendment included $130,000,000 in mandatory 
funding for fiscal year 2008, to remain available until 
expended, for transition assistance for biomass crops. Of this 
amount, no more than $5,000,000 was to be used for biomass 
planning grants and no more than 5 percent expended for forest 
biomass planning grants. The payments for collection, harvest, 
storage and transportation were appropriated mandatory funding 
of $10,000,000 per year for each of fiscal year 2009, fiscal 
year 2010, and fiscal year 2011, to remain available until 
expended. (Section 9001)
      The Conference substitute establishes a Biomass Crop 
Assistance Program (BCAP). Under this Section, the Secretary 
will select BCAP project areas from applications consisting of 
a group of producers willing to commit to biomass crop 
production or a biomass conversion facility.
      Biomass crop producers within these BCAP project areas 
will enter into contracts directly with the Secretary which 
will enable producers to receive financial assistance for crop 
establishment costs as well as annual payments to support 
biomass production. Contracts include resource conservation 
requirements.
      The Secretary is directed to reduce annual payments when 
the biomass crops are sold to the conversion facility, used for 
other allowed purposes or if the producer violates the BCAP 
contract. This section also authorizes cost-sharing support for 
biomass harvest, transport, storage, and delivery to biomass 
user facilities, both within BCAP project areas and elsewhere. 
The Conference substitute provides mandatory funding of such 
sums as necessary to carry out this section for each of fiscal 
year 2008 through fiscal year 2012. (Section 9001, new Section 
9011 of FSRIA)
      The Managers expect the Secretary to determine if a 
producer is within an economically practicable distance from a 
facility based on the expected cost of transporting a feedstock 
to the facility. The Managers understand that this distance may 
vary depending on several factors including the density of the 
feedstock and the producer's plan for preprocessing the biomass 
including chopping, pelletizing or other techniques that make 
the biomass more easily transportable.
      The Managers intend that nonindustrial private forestland 
be included as `eligible land' in a BCAP area and also be 
eligible for establishment and annual payments. Prior to 
entering into a contract with an owner of nonindustrial private 
forestland with existing tree cover, the Managers encourage the 
Secretary to consider the most suitable use of the land and 
encourage the maintenance of native forests and late 
successional forest stands and discourage conversion of native 
forests to non-forest use. The Managers understand that woody 
biomass feedstocks may require varying management practices 
including: establishment (natural or artificial regeneration), 
site preparation, and management of competing vegetation. The 
Managers recognize that in some cases, biomass from forests 
established or enhanced under this program may not be available 
for harvest within the timeframe of the contract, but may 
provide a long-term source of feedstock for a biomass 
conversion facility.
      It is the intent of the Managers that in determining the 
amount of an annual payment, the Secretary shall consider the 
costs of the activity being funded and the need for the 
involved biomass conversion facility to bear some costs of 
producing the feedstock.
      The Managers intend that the use of ``soil, water and 
related resources'' under this section includes wildlife-
related concerns.
      The Managers also intend that the primary focus of the 
BCAP will be promoting the cultivation of perennial bioenergy 
crops and annual bioenergy crops that show exceptional promise 
for producing highly energy-efficient bioenergy or biofuels, 
that preserve natural resources, and that are not primarily 
grown for food or animal feed. In making BCAP project area 
selections, the Managers expect that the Secretary will 
consider the economic viability of the proposed biomass crop. 
The Managers do not intend that BCAP contract acreage provide 
all the feedstock necessary to supply a biomass conversion 
facility.
      It is the Managers' intent that if the establishment or 
annual payment to a producer is reduced under this section, 
that the Secretary may vary the amount of payment reduction 
based on the reason for reducing the payment. It is also the 
intent of the Managers that establishment and annual payments 
are to be reduced by an appropriate amount in the case where a 
portion of an eligible crop is not sold or intended to be sold 
to the biomass conversion facility.
      The Managers direct the Secretary to provide a report to 
Congress on how information gathered under this Section was 
disseminated. The Managers urge the Secretary to utilize the 
Best Practices database created in Section 7207 of this Act and 
to utilize the expertise of institutions of higher education 
and Agriculture Innovation Centers to collect such information.

(52) Forest biomass for energy

      The House bill requires the Secretary of Agriculture, 
through the Forest Service, to conduct a competitive research 
and development program to encourage use of forest biomass for 
energy. The House bill provides $15,000,000 per year for fiscal 
year 2008-2012 in mandatory funding. (Section 9019) Note that 
there are 2 sections numbered 9019 in the House bill.
      The Senate amendment is similar to the House bill but 
does not provide mandatory funding for the program. (Section 
9001)
      The Conference substitute adopts the House provision with 
amendments. It authorizes $15,000,000 per year for fiscal year 
2009 through fiscal year 2012. (Section 9001, new Section 9012 
of FSRIA)
      As part of this program, the Managers encourage the 
Secretary to work closely with the Pine Genome Initiative 
(PGI), which would promote healthy forests and the development 
of new biofuels technology.

(53) Community wood energy program

      The House bill provides grants for community wood energy 
systems. (Section 9019) Note that there are 2 sections numbered 
9019 in the House bill.
      The Senate amendment is similar to the House provision. 
(Section 9001)
      The Conference substitute adopts the Senate provision 
with amendments. It authorizes $5,000,000 per year for fiscal 
year 2009 through fiscal year 2012. (Section 9001, new Section 
9013)

(54) Supplementing corn as an ethanol feedstock

      The House bill requires the Secretary of Agriculture to 
establish a program to make grants of not to exceed $1,000,000 
each to no more than 20 universities for a 3-year program of 
demonstration of supplementing corn as an ethanol feedstock 
with sweet sorghum and switchgrass. (Section 9020)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
      The Managers believe that the agricultural bioenergy 
feedstock and energy efficiency research and extension program 
included in section 7207 of the Research title will accomplish 
the purposes of this section.

(55) New Century Farm Project

      The Senate amendment authorizes support for the 
development and operation of an integrated and sustainable 
biomass, feedstock, and biofuels production system to serve as 
a model for a new century farm. It authorizes $15,000,000 for 
fiscal year 2008 through fiscal year 2012, to remain available 
until expended. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers believe that the agricultural bioenergy 
feedstock and energy efficiency research and extension program 
included in section 7207 of the Research title will accomplish 
the purposes of this section.

(56) Biochar research, development and demonstration

      The Senate amendment establishes a program of competitive 
grants for research and demonstration of the production and use 
of biochar in the agricultural sector. Activity areas include 
biochar production and use, agronomic effects, biochar 
characterization, soil carbon and greenhouse gas emission 
effects, integration with renewable energy systems, and 
economics. The provision authorizes $3,000,000 for each year of 
fiscal year 2008 through fiscal year 2012. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
Research on biochar production and use is included as a high-
priority research and extension area in section 7203 of the 
Research title.

(57) Voluntary renewable biomass certification

      The Senate amendment establishes a voluntary 
certification program for renewable biomass that is grown using 
sustainable practices, in consultation with EPA. Standards are 
to be designed to reduce greenhouse gases and improve soil 
carbon, protect wildlife habitat, and protect air, soil, and 
water quality. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(58) Biofuels infrastructure study

      The Senate amendment directs USDA, in collaboration with 
the Secretaries of Energy and Transportation and the 
Administrator of the Environmental Protection Agency, to 
conduct a study of the infrastructure needs associated with a 
significant expansion in biofuel production and use. The 
amendment specifically includes dedicated ethanol pipeline 
feasibility studies and examination of water resource needs. 
The provision requires a report to Congress including 
recommendations. It also authorizes $1,000,000 in each of 
fiscal year 2008 and fiscal year 2009. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute directs USDA to jointly conduct 
a study with DOE, DOT and EPA on the infrastructure needs 
associated with significant expansion in biofuels production 
and use. (Section 9002)
      It is the intent of the Managers that this study should 
include an assessment of appropriate planning and development 
timelines associated with infrastructure development. The 
Managers suggest that the Biomass Research and Development 
Board established under the Biomass Research and Development 
Initiative may be an appropriate entity for coordination and 
oversight of this multi-agency study.   While this study is to 
use the information and results from the two related studies 
authorized in sections 243 and 245 of the Energy Independence 
and Security Act of 2007 (P.L. 110-140), it is the intent of 
the Managers that the Secretary should not wait on the 
execution or completion of those related studies before 
undertaking this study.

(59) Nitrogen fertilizer study

      The Senate amendment directs USDA to assess the 
feasibility of producing nitrogen fertilizer from renewable 
energy, including formulation of recommendations for an R&D 
program. It authorizes $1,000,000 for fiscal year 2008. 
(Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments. It authorizes $1,000,000 in fiscal year 2009. 
(Section 9003)

(60) Study of life-cycle analysis of biofuels

      The Senate amendment directs USDA in consultation with 
the Secretary of Energy and the Administrator of the EPA to 
conduct a study of methods for evaluating the life-cycle 
greenhouse gas emissions of conventional fuels and biofuels, 
and to provide recommendations for a streamlined, simplified 
method for evaluating the lifecycle greenhouse gas emissions of 
fuels. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(61) E-85 fuel program

      The Senate amendment authorizes $20,000,000 for the 
period fiscal year 2008 through fiscal year 2012 for the USDA 
to award grants to ethanol production facilities where a 
majority of ownership is comprised of agricultural producers, 
to install blending and retail fueling infrastructure. (Section 
9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(62) Research and development of renewable energy

      The Senate amendment directs the Secretary to carry out a 
program of biomass and other renewable energy research in 
coordination with the Colorado Renewable Energy Collaboratory 
and authorizes funding to USDA and DOE for this purpose. 
(Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
The Managers believe that the agricultural bioenergy feedstock 
and energy efficiency research and extension program included 
in section 7207 of the Research title will accomplish the 
purposes of this section.

(63) Northeast Dairy Nutrient Management and Energy Development Program

      The Senate amendment provides for nutrient management and 
research extension. (Section 9001)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers believe that the nutrient management 
research and extension initiative included in section 7204 of 
the Research title will accomplish the purposes of this 
section.

(64) Sense of the Senate concerning higher levels of ethanol blended 
        gasoline

      The Senate amendment provides a Sense of the Senate 
encouraging the federal government to investigate and authorize 
the use of higher blends of ethanol in gasoline. (Section 9002)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(65) Conforming amendments

      The Senate amendment makes conforming amendments. 
(Section 9003)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(66) Sense of Senate concerning regional bioenergy consortia

      The Senate amendment directs the Secretary to continue to 
allow and support regional consortia of public institutions to 
support the bioeconomy. (Section 9004)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers encourage the Secretary to continue to allow 
and support efforts of regional consortiums of public 
institutions, including land grant universities and State 
departments of agriculture, to jointly support the bio-economy 
through research, extension and education activities.

             TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE


(1) Annual report on response to honey bee colony collapse disorder

      The House bill requires the Secretary to submit a report 
to Congress on the investigation of honey bee colony collapse 
and strategies to reduce colony loss. (Section 10001)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision. 
Language incorporating the goals and objectives of this 
provision appears in section 7203 of the research title.

(2) National Honey Board

      The Senate amendment amends section 7(c) of the Honey 
research, Promotion and Consumer Information Act (7 U.S.C. 
4606(c)) to ensure that the Honey Board continues and that the 
Secretary cannot conduct any referendum on the continuation or 
termination of the order without first conducting a concurrent 
referendum for approval of orders to establish a successor 
marketing board. (Section 1854)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to discontinue the current Honey Board after 
the Secretary has conducted a referendum for honey producers or 
honey packers, importers, and handlers. The Secretary is also 
required to act as a fiduciary in the conducting of referenda 
for new marketing boards to ensure that the rights and 
interests of producers, importers, packers, and handlers of 
honey are equitably protected in the transition to any 1 or 
more new successor marketing boards. (Section 10401)

(3) Identification of Honey

      The Senate amendment amends section 203(h) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1622(h)) to 
require the grading mark, statement, inspection mark of the 
Department of Agriculture to be located in close proximity of 
the country of origin label on packaged honey. (Section 1855)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to specify that violations of the labeling 
requirements of this section, with respect to honey, may be 
deemed by the Secretary to be sufficient cause for debarment 
from the benefits of the Agricultural Marketing Act of 1946. 
(Section 10402)

(4) Tree assistance program

      The House bill: (1) amends subtitle C of the Farm and 
Rural Investment Act of 2002, (2) makes nursery tree growers 
eligible under the Tree Assistance Program and future disaster 
assistance programs for which assistance is provided under that 
program, (3) changes the $75,000 limitation on assistance to 
$150,000 per year, and (4) maintains current discretionary 
authorization. (Section 10101)
      The Senate amendment: (1) amends the Trade Act of 1974 by 
creating a Tree Assistance Program to compensate eligible 
growers for losses suffered due to natural disasters, (2) makes 
nursery tree growers eligible under the Tree Assistance 
Program, (3) changes the $75,000 limitation on assistance to 
$100,000 per year, (4) adds reimbursement for 50 percent of the 
cost of pruning, removal, and other costs to salvage existing 
trees or prepare the land to replant trees, and (5) provides 
necessary mandatory funding to carry out the program over the 
next five years. (Section 12101(e))
      The Conference substitute adopts the Senate provision 
with amendments to modify the reimbursement of the cost of 
replanting trees lost due to a natural disaster; amend the 
Federal Crop Insurance Act with a provision identical to that 
which appears in the Trade Act of 1974; incorporate these 
changes into sections 12033 and 15101 of this Act; and to make 
other technical changes. (Section 12033; Section 15101)
    The Managers wish to clarify that the insurance requirement 
for eligibility in the Tree Assistance Program applies only to 
insurance on crops and not on the underlying vines or trees.

(5) Specialty crop block grants

      The House bill amends section 101 of the Specialty Crops 
Competitiveness Act by continuing the Specialty Crop Block 
Grant Program through 2012, and increasing the mandatory levels 
of funding to:
          $60,000,000 in FY'08
          $65,000,000 in FY'09
          $70,000,000 in FY'10
          $75,000,000 in FY'11
          $95,000,000 in FY'12.
      The House provision changes the definition of ``specialty 
crop'' under the Specialty Crops Competitiveness Act of 2004 to 
include ``horticulture,'' and the definition of ``State'' to 
include Guam, American Samoa, the U.S. Virgin Islands and the 
Northern Mariana Islands. (Section 10102)
      The Senate amendment is the same as the House bill, 
except funding is discontinued after FY'11. The Senate 
definitions are the same as in the House bill, but also 
includes ``turfgrass sod'' and ``herbal crops'' in the 
definition of ``specialty crop''.
      The Senate amendment modifies section 101(e) to require 
that States, to the maximum extent practicable and appropriate, 
develop plans that take into consideration the views of 
beginning and socially disadvantaged farmers and ranchers who 
produce specialty crops. It also changes the minimum grant 
amount from $100,000 to one-half of one percent of the overall 
funding allocated to the program in a given fiscal year. 
(Section 1841)
      The Conference substitute adopts the House provision with 
amendments to specify that any funds made available for a 
fiscal year under the program that are not expended by certain 
date, to be determined by the Secretary, will be reallocated to 
other States; change the minimum grant amount to $100,000 or 
one-third of one percent of the overall funding allocated to 
the program in a given fiscal year (whichever is higher); 
provide mandatory levels of funding in the amounts of:
          $10 million for fiscal year 2008;
          $49 million for fiscal year 2009; and
          $55 million for each of fiscal years 2010 through 
        2012. (Section 10109)
      The Managers expect that the Secretary will encourage 
each state making applications for funding under the Specialty 
Crop Block Grant Program to provide a written plan detailing 
the affirmative steps it will take to perform outreach to 
specialty crop producers in the development of the State's 
overall grant plan, including outreach to socially 
disadvantaged and beginning farmers of specialty crops. The 
Managers also note that herbal crops fall within the statutory 
definition of eligible specialty crops under the Specialty Crop 
Block Grant Program, and direct the Agricultural Marketing 
Service to include a comprehensive list of specific categories 
of eligible specialty crops in all relevant promotional 
materials distributed in connection to the program. The 
Managers expect the Secretary to continue to consider the 
cultivation of turfgrass sod as horticulture, and therefore 
included as part of the definition of specialty crop under the 
Specialty Crop Competitiveness Act of 2004, and as a specialty 
crop for any other purposes in this or any other Act.
      The Managers urge the Secretary to encourage state 
departments of agriculture to develop their grant plans through 
a competitive process in order to ensure maximum public input 
and benefit. The Managers expect the Secretary to ensure that 
States conduct extensive outreach to interested parties through 
a transparent process of receiving and considering public 
comment so that grant applications are developed with proven 
and justified public support, particularly when developing 
applications for multi-state projects. Further, the Managers 
expect the Secretary to carefully review requests that extend 
existing projects to ensure that support remains across the 
broad array of public-private partnerships unique to the 
structure of the specialty crop industry.
      The Managers note that since 2006 many states have used 
specialty crop block grant funding for marketing programs, some 
of which promote state grown products. The Managers expect the 
Secretary to carefully monitor the use of funds under grant 
awards to ensure that funds are promoting specialty crops as 
defined under the Specialty Crop Competitiveness Act of 2004 
and are not being used in generically cross-marketing other 
commodities which fall under state marketing programs but are 
outside the scope of the Act's definition.
      The Managers recognize the ability of States to submit 
multi-state projects under current program regulations. The 
Managers also recognize the growing need for solutions to 
problems that cross state boundaries and may therefore be 
addressed more effectively by multi-state projects. These 
problems include addressing good agricultural practices, 
research on crop productivity or quality, enhancing access to 
federal nutrition programs, pest and disease management, or 
commodity-specific projects addressing common issues in multi-
state regions. The Managers therefore request that the 
Secretary encourage state departments of agriculture to submit 
grant plans that include multi-state and regional project 
proposals. The Managers also request that the Secretary give 
strong consideration to multi-state projects when reallocating 
unobligated block grant funding.

(6) Additional section 32 funds for purchase of fruits, vegetables and 
        nuts to support domestic nutrition assistance programs

      The House bill provides funding in addition to amounts 
available under section 32. Additional amounts of section 32 
funds dedicated to fruit, vegetable, and nut purchases are:
          $190,000,000 in FY'08
          $193,000,000 in FY'09
          $199,000,000 in FY'10
          $203,000,000 in FY'11
          $206,000,000 in FY 2012 and each FY thereafter.
      The House provision expands the Secretary's purchase 
discretion to include value-added fruit, vegetable, and nut 
products. (Section 10103)
      The Senate amendment is the same as the House bill, with 
technical differences. (Section 4907)
      The Conference substitute adopts the House provision with 
an amendment to require that, for each of fiscal years 2008 
through 2012, the Secretary shall use not less than $50,000,000 
of the funds dedicated to fruit, vegetable, and nut purchases 
under section 32 to purchase fresh fruits and vegetables for 
distribution to schools and service institutions in accordance 
with section 6(a) of the National School Lunch Act. This 
provision appears in section 4404 of this Act. (Section 4404)

(7) Additional section 32 funds to provide grants for the purchase and 
        operation of urban gardens growing organic fruits and 
        vegetables for the local population

      The House bill provides grants to individuals or 
cooperatives composed of residents of urban neighborhoods where 
urban gardens or greenhouses are located to assist in 
purchasing and operating organic fruit and vegetable gardens 
and greenhouses. Provides that grants may not exceed $25,000 
per year; $20,000,000 in discretionary funds are appropriated 
for fiscal year 2008 and each fiscal year thereafter. (Section 
10103A)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
      The Managers recognize the importance of urban gardens in 
providing opportunities for individuals and groups to produce 
food, beautify their neighborhoods, and educate themselves 
about food production systems. The Managers also recognize with 
the growing consumer awareness of organically produced food 
many communities may wish to operate organic gardens and 
greenhouses. The Managers further recognize the role of the 
Community Food Projects program in satisfying the need for 
these projects and strongly encourage the Secretary to increase 
the program's outreach to urban areas in order to increase the 
submission of grant applications for urban gardens and 
greenhouses.

(8) Independent evaluation of Department of Agriculture commodity 
        purchase process

      The House bill requires an independent evaluation of the 
commodity purchasing processes and the importance of increasing 
purchases of specialty crops. (Section 10104)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to require the Secretary to arrange to have 
performed an independent evaluation of the purchasing processes 
used by the Department of Agriculture to implement the 
requirement that funds available under section 32 of the Act of 
August 24, 1935 be principally devoted to perishable 
agricultural commodities. (Section 10101)

(9) Quality requirement for clementines

    The House bill amends section 8e(a) of the Agricultural 
Adjustment Act by adding clementines to the list of 
commodities. (Section 10105)
      The Senate amendment is the same as the House bill. 
(Section 3207)
      The Conference substitute adopts the Senate provision. 
(Section 10102)

(10) Implementation of food safety programs under marketing orders

      The House bill amends section 8c of the Agricultural 
Adjustment Act by authorizing the implementation of quality-
related food safety programs under specialty crop marketing 
orders. (Section 10106)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
      The Managers are aware that the Secretary has issued 
marketing orders which include quality-related provisions 
intended to enhance the safety of the commodities to which they 
are applicable. Therefore, the managers recognize that 
statutory language is unnecessary. It is not the Manager's 
intention to alter the Secretary's authority to incorporate 
practices to improve the safety of commodities in marketing 
orders, but rather, to encourage the development of programs of 
quality-related good agricultural, manufacturing and handling 
practices with full industry and public participation and in 
consultation with the Food and Drug Administration.

(11) Inclusion of specialty crops in census of agriculture

      The House bill amends section 2(a) of the Census of 
Agriculture Act to include a census of specialty crops as part 
of the general census of agriculture. (Section 10107)
      The Senate amendment contains a freestanding provision 
which requires the Secretary to conduct a census of specialty 
crops not later than September 30, 2008 and each 5 years 
thereafter. It also allows the Secretary to include the census 
of specialty crops in the census on agriculture. (Section 1814)
      The Conference substitute adopts the House provision. 
(Section 10103)

(12) Maturity requirements for Hass avocados

      The House bill: (1) amends subtitle A of the Agricultural 
Marketing Act of 1946 by adding at the end of the title a new 
section, (2) requires the Secretary to issue regulations 
requiring all Hass avocados sold in the U.S. to meet a minimum 
maturity requirement, (3) allows for exceptions from this 
requirement for avocados intended for charities, relief 
agencies or processing, (4) uses existing inspectors that 
already inspect avocados under other orders, and allows the 
Secretary to collect fees to pay for inspection activities, (5) 
imposes civil penalties between $50 and $5,000 for each 
violation, (6) allows for the diversion of avocados that don't 
meet the maturity requirements, and (7) authorizes 
appropriations for necessary sums. (Section 10108)
      The Senate amendment contains a freestanding provision 
which authorizes an organization of domestic avocado producers 
to submit to the Secretary a proposal for a grades and 
standards marketing order for Hass avocados. Once that proposal 
is received, the Secretary is required to initiate established 
procedures under the normal marketing order process for the 
purpose of determining whether there is sufficient industry 
support for the proposal submitted by the organization. If the 
Secretary deems it appropriate to establish a marketing order, 
the language also requires the Secretary to complete that order 
within 15 months. (Section 1856)
      The Conference substitute adopts the Senate provision. 
(Section 10108)

(13) Mushroom promotion research and consumer information

      The House bill: (1) amends the Mushroom Promotion, 
Research and Consumer Information Act of 1990, (2) reflects the 
changed geographic distribution of mushroom growers and their 
productivity by combining the regions that are represented on 
the Board, and increasing the number of pounds required for 
representation in the region, and (3) allows the development of 
good agricultural practices and good handling practices under 
the mushroom research and promotion order. (Section 10109)
      The Senate amendment is the same as the House bill, 
except also allows the development of food safety programs 
under the promotion order. (Section 1853)
      The Conference substitute adopts the House provision with 
an amendment to clarify that the mushroom council may develop 
and propose to the Secretary programs for good agricultural and 
good handling practices and related activities for mushrooms. 
(Section 10104)

(14) Fresh produce education initiative

      The House bill authorizes a program to educate persons 
involved in the fresh produce industry and the public about 
ways to reduce pathogens in fresh produce and sanitary handling 
practices. It authorizes necessary sums for each FY 2008 
through 2012. (Section 10110)
      The Senate amendment is the same as the House, except 
authorizes $1,000,000 in discretionary funding to carry out the 
section. (Section 1813)
      The Conference substitute adopts the Senate provision 
with an amendment to specify that there are authorized to be 
appropriated to carry out this section $1,000,000 for each of 
fiscal years 2008 through 2012, to remain available until 
expended. (Section 10105)

(15) Pest and disease program

      The House bill establishes a new program to conduct early 
pest detection and surveillance activities in coordination with 
state departments of agriculture, to prioritize and create 
action plans to address pest and disease threats to specialty 
crops, and to create an audit-based certification approach to 
protect against the spread of plant pests. It provides 
mandatory funding in the amount of:
          (1) $10,000,000 in FY 2008;
          (2) $25,000,000 in FY 2009;
          (3) $40,000,000 in FY 2010;
          (4) $55,000,000 in FY 2011; and
          (5) $70,000,000 in FY 2012. (Section 10201)
      The Senate amendment is the same as the House, except for 
technical differences and provides mandatory funds in the 
amounts of:
          (1) $10,000,000 for FY 2008;
          (2) $25,000,000 for FY 2009;
          (3) $40,000,000 for FY 2010;
          (4) $50,000,000 for FY 2011;
          (5) $64,000,000 for FY 2012. (Section 12101(f))
      The Conference substitute adopts the Senate provision 
with an amendment to: describe the application procedure for 
the program; prohibit the Department of Agriculture from 
considering the availability of nonfederal funds in determining 
whether to enter into a cooperative agreement with a State 
department of agriculture; direct the Secretary to consider 
various risk factors when considering an application for a 
cooperative agreement; express Congressional disapproval of a 
cost-sharing rule for animal and health emergency programs and; 
specify mandatory funding in the amounts of:
          (1) $12,000,000 for fiscal year 2009;
          (2) $45,000,000 for fiscal year 2010;
          (3) $50,000,000 for fiscal year 2011; and
          (4) $50,000,000 for fiscal year 2012. (Section 10201)
      The Managers believe that the nursery plant pest risk 
management systems established under this section will provide 
the nursery industry with assistance and flexibility in 
developing programs that meet its needs to determine and manage 
plant pest and disease risks.
      The Managers note that the U.S. Department of Agriculture 
has taken specific steps to promote new methods of inspection 
and regulation based on new approaches to nursery pest risk 
management, sometimes referred to as the ``systems approach.'' 
These steps include a technical agreement under the auspices of 
the North American Plant Protection Organization (Regional 
Standards for Phytosanitary Measures Number 24), and the 
development of the U.S. Nursery Certification Program, a 
limited test-pilot program developed by Animal and Plant Health 
Inspection Service Plant Protection and Quarantine to promote 
U.S. nursery shipments to Canada.
      The Managers are aware of the U.S. Department of 
Agriculture's efforts to promote the systems approach for the 
nursery industry. The development of effective systems of pest 
risk management and the industry adoption of such systems will 
be hastened and made more effective through an initiative based 
on collaboration among key agencies, Departmental personnel, 
industry organizations, and research institutions. To implement 
the nursery plant pest risk management systems under this 
section, U.S. Department of Agriculture policies and 
regulations must have a sound foundation in research and 
experience through pilot programs of nursery plant pest risk 
management systems. In addition, there must be collaboration 
among industry and state and federal regulators to improve 
programs of inspection, certification and regulation using such 
systems.
      The Managers recognize that systems of pest risk 
management developed by the nursery industry must satisfy 
prevailing regulatory requirements if they are to be useful and 
effective. The Managers encourage the U.S. Department of 
Agriculture to provide guidance and technical assistance to the 
nursery industry, and to promote and coordinate related 
programs of research in the implementation of nursery plant 
pest risk management systems under this section.

(16) Multi-species fruit fly research and sterile fly production

      The House bill authorizes the construction of a warehouse 
and irradiation containment facility for fruit fly rearing and 
sterilization in Waimanalo, Hawaii. It also authorizes the 
appropriation of $15,000,000 for construction and $1,000,000 
for 2008 and each subsequent fiscal year for facility 
maintenance. (Section 10202)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
      The Managers recognize that fruit flies are among the 
most destructive pests of fruits and vegetables in the world 
and pose a significant risk to U.S. agriculture. Further, the 
Managers recognize the importance of the Animal and Plant 
Health Inspection Service's (APHIS) Fruit Fly Control Programs 
in controlling fruit flies. Given the need for a backup sterile 
fruit fly facility for Mediterranean, Melon, Oriental, and 
Solanaceaous fruit flies, the Managers strongly encourage the 
Secretary to fully consider Waimanalo, Hawaii, when determining 
where such a multi-species facility will be located. In 
examining Waimanalo, Hawaii, and other locations, APHIS should 
consider whether the locations will support the establishment 
of the species of fruit flies being produced, existing 
researcher expertise and experience, whether the area is 
already infested with the species of fruit flies being 
produced, and cost effectiveness. The Managers strongly 
encourage APHIS to request appropriated funding as authorized 
by 7 U.S.C. 428a to provide for the costs of building, 
maintaining, and operating a backup sterile multi-species fruit 
fly facility at the location deemed most suitable.

(17) National organic certification cost-share program

      The House bill amends section 10606 of the Farm Security 
and Rural Investment Act to provide $22,000,000 for the 
national organic certification cost-share program, to be 
available until expended. It provides that the federal share 
may not exceed 75 percent of the cost of certification, and the 
maximum amount a producer may receive is raised from $500 to 
$750. (Section 10301)
      The Senate amendment amends section 10606 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 6523) to 
reauthorize the National Organic Certification Cost-Share 
program, which provides funds for the Secretary to assist 
producers and handlers of agricultural products in obtaining 
certification under the Organic Foods Production Act of 1990. 
Payments to producers or handlers are limited to $750, and the 
federal share of the certification cost will be no more than 75 
percent of the total certification cost incurred. The Senate 
provision adds language to require the Secretary to submit to 
Congress, reports that describes the expenditures for each 
state under the program during the previous fiscal year. It 
also provides $22,000,000 in mandatory funding. (Section 1823)
      The Conference substitute adopts the Senate provision 
with an amendment to delete the federal share requirements as 
well as the federal and state recordkeeping requirements, and 
to require the Secretary to submit to the House and Senate 
Agriculture Committees a report containing certain program 
information. (Section 10301)
      The Managers encourage the Secretary to keep accurate and 
current records of requests by and disbursements to States 
under the program, and require accurate and consistent 
recordkeeping from each State and entity that receives program 
payments. The Managers also recognize the importance of 
distributing cost-share funds to the States in a timely manner, 
and request that the Secretary distribute such funds at the 
soonest date practicable following the deadline for submission 
of funding requests under the program. The Managers are aware 
that there have been discussions between the Department of 
Agriculture and the States regarding administrative fees for 
the program and encourage the Department to review 
administrative fees to ensure optimal performance in serving 
the needs of organic producers and handlers.

(18) Organic production and market data

      The House bill: (1) amends section 7407 of the Farm 
Security and Rural Investment Act to add pricing of organic 
products as new data to be included in the ongoing collection 
of data on agriculture production and marketing, (2) provides 
that the data on organics under this section shall be collected 
to analyze crop loss risk of organic methods of production, (3) 
provides $3,000,000 in mandatory funds to be available until 
expended, and (4) includes a free-standing provision that 
requires the Secretary of Agriculture to submit to Congress a 
report regarding the progress made in implementing this 
amendment. (Section 10302)
      The Senate amendment amends section 2104 of the Organic 
Foods Production Act of 1990 (7 U.S.C. 6503) by granting the 
Secretary authority to segregate data as it relates to the 
organic industry by publishing organic production and marketing 
information and surveys. The language is intended to remedy the 
lack of price and yield information for organic producers.
      Senate expands upon House language by requiring detailed 
data collection for: organic production and market data 
initiatives and surveys; expand, collect, and publish organic 
census data analysis, fund comprehensive reporting of prices 
relating to organically-produced agricultural products; conduct 
analysis relating to organic production, handling, 
distribution, retail, and trend studies; study and perform 
periodic updates on the effects of organic standards on 
consumer behavior; conduct analysis for organic agriculture 
using the national crop table.
    The Senate provision provides $5,000,000 in mandatory 
funding. (Section 1821)
      The Conference substitute adopts the Senate provision 
with an amendment to clarify the data collection, analysis, and 
survey development requirements for the Secretary, as well as 
to further specify the contents of the report that the 
Secretary shall submit to the House and Senate Agriculture 
Committees. (Section 10302)
      The Managers have provided $5,000,000 in mandatory 
funding in an effort to jump-start organic data collection 
efforts at the Department of Agriculture, but recognize that 
remedying the unmet data collection needs of the organic sector 
will require further investment, and therefore, have provided 
an additional authorization of appropriations of $25,000,000 
for the period of fiscal years 2008 through 2012 to carry out 
the program. The Managers intend that $3.5 million of the 
funding provided for this section be allocated to the 
Agricultural Market Service to collect and distribute 
comprehensive reporting of prices relating to organically 
produced agricultural products. The Managers also note the 
critical importance of collecting data related to crop loss 
risk, and farm-gate prices, in order to determine appropriate 
products and premiums for crop insurance policies offered to 
organic producers. The Managers further intend that $1.5 
million of the funding provided for this section be used by the 
Economic Research Service and National Agricultural Statistics 
Service to carry out the specified requirements of the 
initiative that are appropriate to each agency.

(19) Organic conversion, technical and educational assistance

      The House bill authorizes $50,000,000 over five years to 
provide technical assistance and cost-sharing grants to farmers 
trying to transition to organic farming. (Section 10303)
      The Senate amendment contains a comparable provision in 
the conservation title (EQIP).
      The Conference substitute deletes the House provision. 
Language addressing the goal of providing technical assistance 
to farmers trying to transition to organic farming appears in 
section 2501 of the conservation title.

(20) Exemption of certified organic products from assessments

      The Senate amendment amends section 501(e) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401 
(e)) to allow farmers who have some or part of their farm 
certified organic to receive the exemption. Only producers that 
are USDA organically certified may receive the exemption for 
that portion of land they produce organically. (Section 1822)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(21) National organic program

      The Senate amendment amends section 2123 of the Organic 
Foods Production Act of 1990 (7 U.S.C. 6522) to provide 
increased authorized incremental funding levels for the 
National Organic Program to ensure proper compliance and 
oversight of the National Organic Program. It also authorizes 
$5,000,000 for fiscal year 2008; $6,500,000 for fiscal year 
2009; $8,000,000 for fiscal year 2010; $9,500,000 for fiscal 
year 2011; and $11,000,000 for fiscal year 2012. (Section 1824)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to provide such additional sums as are 
necessary to carry out the program. (Section 10303)
      The National Organic Program (NOP) is the first line of 
defense in assuring consumers that organic products certified 
under the program consistently meet the program's standards. 
The Managers are aware of concerns raised by numerous organic 
agriculture interests concerning the level of resources devoted 
to the NOP. While the program's funding level has increased 
over time, the Managers view the current level of funding as 
inadequate to permit the NOP to properly address the world-wide 
scope of accreditation oversight and certifier training. The 
Managers strongly encourage the Secretary to prepare NOP budget 
requests at least equal to the appropriations levels authorized 
in this Act.

(22) Grant program to improve the movement of specialty crops

      The House bill: (1) authorizes the Secretary to make 
grants to State and local governments, grower cooperatives, and 
producer and shipper organizations to improve the cost-
effective movement of specialty crops, (2) provides that the 
grant recipient must match the amount of funds received under 
this program, and (3) authorizes appropriations for necessary 
sums to carry out the section. (Section 10401)
      The Senate amendment is the same as the House bill, 
except Senate language amends title II of the Specialty Crops 
Competitiveness Act of 2004 (Public Law 108-465; 118 Stat. 
3884), and clarifies that non-profit trucking associations and 
their research entities are eligible to receive grants. 
(Section 1842)
      The Conference substitute adopts the House provision with 
an amendment to allow national, state, or regional 
organizations of producers, shippers or carriers to be eligible 
for grants under the program. (Section 10403)

(23) Authorization of appropriations for market news activities 
        regarding specialty crops

      The House bill authorizes necessary funds for each of 
fiscal years 2008 through 2012 to support market news 
activities regarding specialty crops. (Section 10402)
      The Senate amendment authorizes $9,000,000 for each of 
fiscal years 2008 through 2012, to remain available until 
expended for market news activities to provide timely price 
information on fruits and vegetables. (Section 1811)
      The Conference substitute adopts the Senate provision 
with an amendment to specify that in addition to any other 
funds made available through annual appropriations for market 
news services, there is authorized to be appropriated 
$9,000,000 for each of fiscal years 2008 through 2012, to 
remain available until expended. (Section 10107)

(24) Farmer marketing assistance program

      The House bill: (1) amends section 6 of the Farmer-to-
Consumer Direct Marketing Act of 1976 and provides findings, 
(2) renames the Farmers' Market Promotion Program the ``Farmer 
Marketing Assistance Program'', (3) specifies categories of 
farmer-to-consumer direct marketing activities eligible for 
funding under the program, (4) provides mandatory funds in the 
amounts of $5,000,000 for fiscal years 2008 through 2010; and 
$10,000,000 for fiscal years 2011 through 2012, and (5) 
provides that 10 percent of these funds shall be used to 
support the use of electronic benefit transfers at farmer's 
markets. (Section 10403)
      The Senate amendment: (1) amends section 6 of the Farmer-
to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) to 
reauthorize the Farmers Market Promotion Program, (2) adds 
language to include producer networks or associations, and (3) 
provides mandatory funds in the amounts of $5,000,000 for each 
of fiscal years 2008 through 2011; and $10,000,000 for fiscal 
year 2012. (Section 1812)
      The Conference substitute adopts the Senate provision 
with an amendment to specify that 10 percent of the funds 
available to carry out the Farmers' Market Promotion Program be 
used to implement electronic benefit transfer systems at 
farmers' markets; and to specify mandatory funding in the 
amounts of:
          $3,000,000 for fiscal year 2008;
          $5,000,000 for each of fiscal years 2009 and 2010;
          $10,000,000 for each of fiscal years 2011 and 2012. 
        (Section 10106)
      The Managers recognize that farmer-to-consumer direct 
marketing activities offer significant economic opportunities 
for farmers and ranchers seeking to increase profit retention. 
The Farmers' Market Promotion Program is intended to support 
the development and expansion of farmers' markets, and all 
other forms of direct marketing, through the provision of 
grants to assist in organizing, marketing, training, business 
plan development, community outreach and education, and other 
associated activities designed to establish or improve direct 
marketing opportunities for farmers and ranchers and the 
consumers they serve.
      The Managers recognize that the growth of farmers' 
markets and other direct marketing ventures has been limited in 
some communities and regions, and therefore encourage the 
Department to determine the underlying reasons for this uneven 
distribution, with the goal of addressing this disparity 
through the support of meritorious projects in these locations.
      The Managers are aware of the growing role that the more 
than 4,300 farmers markets and 1,200 community supported 
agriculture enterprises across the country play in providing 
access to fresh, healthy, and local foods, to all Americans, 
including those who participate in federal food assistance 
programs. As of 2006, the USDA estimated that only 6 percent of 
farmers' markets nationwide have electronic benefit transfer 
(EBT) systems in place to accept food stamp benefits. To 
increase the use of food stamp benefits at farmers' markets and 
community supported agriculture enterprises, the Managers have 
required a minimum of ten percent of the Farmers' Market 
Promotion Program funds be devoted to projects designed to 
implement EBT systems. The Managers also encourage the 
Secretary to examine and implement more systemic administrative 
approaches to increase the nationwide access of EBT technology 
suitable for farmers' markets and community supported 
agriculture enterprises, including possible ways to improve the 
administration of EBT service provider contracts to achieve 
this goal.

(25) National clean plant network

      The House bill creates a funding source for clean 
planting stock and authorizes the Secretary to enter into 
cooperative agreements to produce, maintain and distribute 
healthy planting stock. It authorizes the appropriation of 
necessary funds through 2012 in addition to $20,000,000 in 
mandatory funds for the period of fiscal years 2008 through 
2012. (Section 10404)
      The Senate amendment is the same as the House bill, with 
technical differences. (Section 1851)
      The Conference substitute adopts the Senate provision 
with an amendment to add NLGCA institutions to the list of 
entities the Secretary shall consult with in carrying out the 
program, and to specify mandatory funding in the amounts of 
$5,000,000 for each of fiscal years 2009 through 2012. (Section 
10202)

(26) Healthy food urban enterprise development program

      The House bill: (1) provides competitive grants to 
eligible entities to conduct studies on improving access of 
underserved communities to affordable, locally produced food, 
(2) provides that the maximum grant amount shall not exceed 
$250,000, and (3) authorizes the appropriation of necessary 
funds for each of fiscal years 2008 through 2012. (Section 
10405)
      The Senate amendment requires the Secretary of 
Agriculture to establish, through a competitive grant process, 
the Healthy Enterprise Development Center, the mission of which 
is to increase access to healthy, affordable foods to 
underserved communities. The Healthy Food Enterprise 
Development Center will be required to collect, develop, and 
provide technical assistance to agricultural producers, food 
wholesalers and retailers, schools, and other entities 
regarding best practices for aggregating, storing, processing, 
and marketing local agricultural products and increasing the 
availability of such products in underserved communities. The 
Healthy Food Enterprise Development Center is also provided 
with the authority to subgrant funds to carry out feasibility 
studies to carry out the purposes of the Center. The provision 
provides $7,000,000 in mandatory money. (Section 1843)
      The Conference substitute adopts the Senate provision 
with amendments to place language for the Healthy Urban Food 
Enterprise Development Center within the Community Food 
Projects statute; clarify that subgrants may be used to 
establish and facilitate enterprises that process, distribute, 
aggregate, store, and market healthy affordable foods; limit 
the amount allocated for administrative expenses; provide 
$1,000,000 in funding for each of fiscal years 2009 through 
2011; and authorize $2,000,000 for fiscal year 2012. (Section 
4402)
      The Managers expect that sub-grants be provided for 
activities in underserved areas that assist appropriate 
institutions in modifying and upgrading facilities through the 
purchase of refrigeration units, coolers or other equipment 
appropriate to accommodate healthy and locally produced 
agricultural food products.

(27) Definitions

      The Senate amendment sets out definitions to apply 
throughout subtitle F for the terms ``specialty crop'', 
``state'', and ``state department of agriculture.'' (Section 
1801)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to remove the definition of the term 
``State.'' (Section 10001)

(28) Foreign market access study and strategy plan

      The Senate amendment requires the Comptroller General of 
the United States to carry out a study regarding the extent to 
which United States specialty crops have or have not benefited 
from the reduction of foreign trade barriers under the Uruguay 
Round. (Section 1831)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(29) Consultations on sanitary and phytosanitary restrictions for 
        fruits and vegetables

      The Senate amendment requires the Secretary to consult 
with interested persons and conduct annual briefings on 
sanitary and phytosanitary trade issues, included the 
development of a strategic risk management framework and as 
appropriate implementation of a peer review for risk analysis. 
(Section 1833)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(30) Market loss assistance for asparagus producers

      The Senate amendment establishes a program to pay those 
producers currently growing asparagus for revenue losses during 
the 2004-2007 crop years due to imports. The language provides 
$15,000,000 in mandatory funding ($7,500,000 for producers of 
fresh asparagus and $7,500,000 for producers of processed or 
frozen asparagus). (Section 1852)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 10404)

                          TITLE XI--LIVESTOCK


(1) Livestock mandatory price reporting

      The Senate amendment amends the Livestock Mandatory 
Reporting Act in subsection (a). It amends section 232(c)(3) to 
change the time of the afternoon swine report from 2:00 p.m. to 
3:00 p.m. (Central Time). It also changes the time that USDA 
will publish the afternoon swine report from 3:00 p.m. to 4:00 
p.m. (Central Time). Subsection (b) directs USDA to study the 
economic impacts of including wholesale pork product sales 
reporting on producers and consumers, including the effects of 
a confidentiality requirement on mandatory reporting. Upon 
completion of that study, USDA may establish mandatory packer 
reporting of wholesale pork product sales (such as pork cuts 
and retail-ready pork products), requiring each packer 
processing plant to report to USDA price and volume information 
at least twice each reporting day. Subsection (c) ensures that 
USDA continues to publish retail scanner data. (Section 10001)
      The House bill contains no comparable provision.
      The Conference substitute deletes subsection (a) of the 
Senate provision to amend the afternoon swine report. The 
conference substitute adopts subsection (b) of the Senate 
provision with an amendment to restrict the focus of the 
wholesale pork study to only pork cuts. Additionally, the 
Secretary of Agriculture will be provided 1 year to complete 
the study upon enactment of this Act. The substitute also 
clarifies that the Secretary is only authorized to collect the 
data necessary to complete the study during the period 
preceding the completion of the report. An authorization of 
such sums as necessary is provided to complete the study.
      The Conference substitute deletes subsection (c) of the 
Senate provision. The conference substitute also provides 
enhancements to improve readability and understanding of 
information published under the Livestock Mandatory Reporting 
Act through electronic reporting.
      The Managers expect the website improvements to be 
presented in a user friendly format that can be readily 
understood by producers, packers and other market participants. 
The website should include charts and graphs that provide real 
time data, including comparable data from previous days so that 
producers and other industry participants can track market 
changes. (Section 11001)

(2) Grading and inspection

      The Senate amendment amends section 203 of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1622) to provide 
USDA authority to establish a voluntary grading program at USDA 
for catfish. The provision requires USDA to provide inspection 
activities under the Federal Meat Inspection Act for farm 
raised catfish, by adding catfish to the list of ``amenable 
species.'' The Secretary, while establishing the grading and 
inspection program for catfish, is required to ensure that 
nothing duplicates, impedes, or undermines any of the food 
safety or product grading activities conducted by the 
Department of Commerce or the Food and Drug Administration. 
(Section 10002)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize a voluntary fee-based grading 
program at USDA for catfish. Additional species of farm-raised 
fish or farm-raised shellfish may be added to the grading 
program through a petition process to the Secretary of 
Agriculture. The conference substitute also provides that 
catfish shall be an amenable species under the Federal Meat 
Inspection Act, and therefore will be subject to examination 
and inspection by USDA's Food Safety and Inspection Service 
(FSIS) when processed for use as human food. In conducting such 
inspections, FSIS is authorized to take into account the 
conditions under which the catfish are raised and transported 
to a processing establishment. Additional species of fish and 
shellfish are not addressed in this amendment; however, the 
Managers note that the Secretary has underlying authority 
within the Federal Meat Inspection Act to amend the definition 
of amenable species as he considers necessary and appropriate.
      Additionally, the conference substitute requires the 
Secretary, in promulgating regulations for inspection 
activities, to consult with the Commissioner of the Food and 
Drug Administration. Final regulations for grading and 
inspection activities shall be promulgated not later than 18 
months after the date of enactment of this section. The 
Conference substitute also requires the Secretary of 
Agriculture to submit an estimate of the costs of implementing 
the program. (Section 11016)
      It is the intent of Congress that catfish be subject to 
continuous inspection and that imported catfish inspection 
programs be found to be equivalent under USDA regulations 
before foreign catfish may be imported into the United States.
      The Managers intend that nothing in this section be 
interpreted to reduce funding or the level of inspection for 
meat, poultry and egg products. The Managers expect the 
Secretary to budget accordingly each year for catfish 
inspection. The Managers expect the Secretary, in approving any 
petition for voluntary, fee-based grading services for any 
additional farm-raised fish or farm-raised shellfish species, 
to make any resulting service available only on a facility by 
facility basis.

(3) Country of origin labeling

      The House bill amends the Agricultural Marketing Act of 
1946 to provide new country of origin labeling requirements for 
beef, lamb, pork and goat. It amends the list of covered 
commodities to include goat meat. The provision specifies 
labeling requirements for products that are of United States 
country of origin, multiple countries of origin, imported for 
immediate slaughter, and from a foreign country of origin. To 
be eligible for U.S. country of origin, the product must be 
derived from an animal that was exclusively born, raised, and 
slaughtered in the U.S. (with a narrow exception for animals 
from Alaska or Hawaii and transported through Canada), or 
present in the U.S. on or before January 1, 2008. The House 
provision authorizes the Secretary to conduct audits to verify 
compliance with this section. It prohibits the Secretary from 
requiring a person or entity to maintain a record of the 
country of origin of covered commodities, other than those 
maintained in the course of the normal conduct of business of 
such person or entity. The House bill amends section 283 to 
clarify that a retailer or person engaged in the business of 
supplying a covered commodity to a retailer notified of a 
violation will be provided 30 days to come into compliance with 
the law. It provides that if such person does not make a good 
faith effort to comply, and continues to willfully violate the 
law, the Secretary may fine the person in an amount up to 
$1,000 for each violation. (Section 11104)
      The Senate amendment is similar to the House language but 
has several modifications. It amends the list of covered 
commodities to include goat meat, macadamia nuts and chicken. 
In addition to House language, Senate adds language to U.S. 
country of origin labeling category to require that animals 
present in the United States on or before January 1, 2008, and 
once present in the United States, must have remained 
continuously in the United States. In addition to House 
language regarding multiple countries of origin, Senate adds 
disclaimer under subsection (B) to clarify that labeling for 
multiple countries of origin is a mandatory requirement. 
(Section 10003)
      The Conference substitute adopts the Senate provision 
with an amendment to add ginseng and pecans as covered 
commodities. Covered commodities, such as beef, lamb, pork, 
chicken, or goat present in the United States on or before July 
15, 2008 will be labeled as product of the United States. The 
Managers reinstate current law regarding the labeling of 
processed wild fish to include locations such as aboard a 
vessel that is documented under chapter 121 of title 46, United 
States Code, or registered in the United States. (Section 
11002)

(4) Definitions

      The Senate amendment: (1) amends the definitions of terms 
provided for the purposes of the Agricultural Fair Practices 
Act of 1967, (2) expands the definition of ``association of 
producers'' to also include general livestock, poultry and farm 
groups, and (3) clarifies that a handler is not a producer, nor 
a person that provides custom feeding services. (Section 10101)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to define the term associations of producers 
to include organizations with a membership exclusively limited 
to agricultural producers and dedicated to promoting the common 
interest and general welfare of agricultural products. 
Additionally, the conference substitute deletes the Senate 
provision that excluded the term ``producer'' from the 
definition of ``handler.'' The conference substitute also 
removes the provision defining the Secretary of Agriculture 
under the Agricultural Fair Practices Act of 1967. (Section 
11003)
      It is the intent of the Managers that custom feeding 
services should be interpreted to mean a producer or business 
that feeds livestock for other producers, but does not own the 
livestock they are feeding and raising for those producers.

(5) Prohibited practices

      The Senate amendment: (1) amends section 4 of the 
Agricultural Fair Practices Act to expand the list of 
prohibited practices, (2) amends the first category to add that 
it shall also be unlawful for any handler to knowingly engage 
or permit any employee or agent to coerce any producer in the 
exercise of his right to form an association of producers, and 
(3) adds that it shall be unlawful to ``fail to bargain in good 
faith with an association of producers.'' (Section 10102)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(6) Enforcement

      The Senate amendment amends the enforcement provisions by 
striking section 5 and replacing it with a directive for the 
Secretary to conduct rulemaking to clarify what constitutes 
normal and fair dealing per section 10104. It also strikes 
section 6 of the current law to provide the Secretary of 
Agriculture the authority to bring a civil action in United 
States District Court by filing a complaint requesting 
preventative relief, including an application for a permanent 
or temporary injunction, restraining order or other order, 
against the handler. Under the Senate provision, handlers found 
to have violated the Act are liable for the amount of damages 
including the costs of litigation and reasonable attorneys' 
fees. The Senate provision changes the statute of limitations 
from 2 years to 4 years and provides for an additional penalty 
of not more than $1,000 per violation. (Section 10103)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(7) Rules and regulations

      The House bill amends the Agricultural Fair Practices Act 
by adding provisions for the promulgation of new rules and 
regulations. It directs USDA to promulgate rules and 
regulations, including rules or regulations necessary to 
clarify what constitutes fair and normal dealing for purposes 
of the selection of customers by handlers. Please note section 
5 (7 U.S.C. 2304) was struck pursuant to section 10103. 
(Section 10104)
      The Senate amendment
      The Conference substitute deletes the Senate provision.

(8) Special counsel for agricultural competition

      The Senate amendment amends the Packers and Stockyards 
Act by adding a new subtitle that provides for the appointment 
of a special counsel at USDA to investigate and also prosecute 
violations of Packers and Stockyards Act and Agricultural Fair 
Practices Act. The Special Counsel will oversee the Office of 
Special Counsel and will have the responsibility for all duties 
and functions of the Packers and Stockyards programs at USDA. 
Employees within GIPSA's Packers and Stockyards programs will 
report to the Special Counsel. Grain inspection activities 
currently carried out by GIPSA would continue to report to the 
Administrator for GIPSA as a separate agency or as determined 
by the Secretary upon implementing this section. The 
Administrator for GIPSA would no longer oversee activities of 
the Packers and Stockyards programs. The Senate provision 
provides that the Special Counsel will report to the Secretary 
of Agriculture. The Special Counsel shall be free from the 
direction and control of any person in the Department of 
Agriculture other than the Secretary. The Special Counsel shall 
be appointed by the President with the advice and consent of 
the Senate. The Senate provision provides that the Special 
Counsel shall report twice each year to Congress that details 
the number of complaints received and closed, number of 
investigations and civil and administrative actions initiated, 
carried out and completed, number and type of decisions agreed 
to and number of stipulation agreements, 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. The Special Counsel, prior to commencing, 
defending, or intervening in any civil action under the Packers 
and Stockyards Act or the Agricultural Fair Practices Act, 
shall give written notification to the Attorney General. Should 
the Attorney General fail to commence, defend, or intervene in 
the proposed action, the Special Counsel may commence, defend 
or intervene and supervise the litigation in the name of the 
Special Counsel. Nothing prevents the Attorney General from 
intervening on behalf of the United States in any civil action 
under the Packers and Stockyards Act or the Agricultural Fair 
Practices Act. (Section 10201)
      The House bill contains no comparable provision.
      The Conference substitute provides that the Secretary 
shall submit an annual report by the Grain Inspection, Packers 
and Stockyards Administration at the Department of Agriculture 
to detail the number of investigations into possible violations 
of the Packers and Stockyards Act, 1921. The annual report will 
detail the length of time that investigations are pending with 
the Grain Inspection, Packers and Stockyards Administration, 
the General Counsel of the Department of Agriculture and the 
Department of Justice. The annual report requirement will 
expire with the expiration of this Act. (Section 11004)
      It is the intent of the Managers that the annual report 
provide ranges into the length of time investigations may be 
pending with the Grain Inspection, Packers and Stockyards 
Administration, the Office of General Counsel, or the 
Department of Justice. The Managers have provided flexibility 
for the Secretary to conduct the report using various summary 
statistics such as range, maximum, minimum, mean and average 
times. However, at a minimum, the Managers request charts to be 
provided in the annual report denoting the ranges in 6 month 
intervals.

(9) Investigation of live poultry dealers

      The Senate amendment: (1) amends section 2 of the Packers 
and Stockyards Act to remove the poultry slaughter requirement 
from the existing definitions, (2) amends title II of the 
Packers and Stockyards Act to give the USDA administrative 
enforcement authority over live poultry dealers under the Act, 
(3) defines ``poultry grower'' as 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, (4) amends section 408 of 
the Packers and Stockyards Act to provide authority for the 
Secretary to request a temporary injunction or restraining 
order if a person subject to the Act fails to pay a poultry 
grower what is due the poultry grower for poultry care, (5) 
increases the penalty for violations under the Act from $10,000 
to $22,000, and (6) repeals sections regarding poultry 
enforcement under sections 411, 412, and 413. (Section 10202)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(10) Definition of capital investment

      The Senate amendment amends title I of the Packers and 
Stockyards Act to add the definition of a capital investment. 
Capital investment is defined as an investment in a structure, 
such as a building or manure storage structure; or machinery or 
equipment associated with producing livestock or poultry that 
has a useful life of more than 1 year. (Section 10203(a))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(11) Definition of contractor

      The Senate amendment amends title I of the Packers and 
Stockyards Act to add the definition of a contractor. 
Contractor is defined as a person that obtains livestock or 
poultry from a contract producer in accordance with a 
production contract. (Section 10203(a))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(12) Definition of contract producer

      The Senate amendment amends title I of the Packers and 
Stockyards Act to add the definition of a contract producer. 
Contract producer is defined as a producer that produces 
livestock or poultry under a production contract. (Section 
10203(a))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(13) Definition of investment requirement

      The Senate amendment amends title I of the Packers and 
Stockyards Act to add the definition of an investment 
requirement. Investment requirement is defined as an investment 
that requires a contract producer to make a capital investment 
that, but for the production contract, the producer would not 
have made; or a representation by a contractor that results in 
the contract producer making a capital investment. (Section 
10203(a))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(14) Definition of production contract

      The Senate amendment amends title I of the Packers and 
Stockyards Act to add the definition of a production contract. 
A production contract is defined as a written agreement that 
provides for the production of livestock or poultry by a 
contract producer or the provision of a management service 
relating to the production of livestock or poultry by a 
contract producer. (Section 10203(a))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(15) Right to cancel production contracts

      The Senate amendment amends title II of the Packers and 
Stockyards Act to add a new section (section 208) governing 
production contracts. It allows contract producers to cancel a 
production contract within three business days after the 
contract execution date. The contract shall disclose the right 
of the producer to cancel a production contract and the method 
by which the contract producer may cancel the production 
contract, including the deadline for canceling the production 
contract. (Section 10203(b))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to provide that poultry growers and swine 
production contract growers may cancel their contract up to 
three business days after the date on which the contract was 
signed. (Section 11005)

(16) Production contracts requiring large capital investments

      The Senate amendment amends title II of the Packers and 
Stockyards Act to add a new section (section 208) governing 
production contracts that require large capital investments. 
The provision allows contract producers who have made an 
investment of $100,000 or more for purposes of securing the 
production contract with a packer, live poultry dealer, or 
swine contractor, to be given at least 90 days to correct an 
alleged breach before a contractor can terminate a contract. 
The contractor may terminate or cancel a production contract 
without notice for voluntary abandonment by the contract 
producer, conviction of the contract producer for an offense or 
fraud or theft committed against the contractor, the natural 
end of the production contract, or the well-being of the 
livestock or poultry would be in jeopardy once under the care 
of the contract producer. If not later than 90 days, a producer 
remedies the cause of breach under the contract, the contractor 
may not terminate or cancel a production contract. (Section 
10203(b))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      In Section 11006 of the conference substitute, the 
Managers require the Secretary to promulgate rules regarding 
what constitutes a reasonable period of time for a live poultry 
dealer or swine production contract grower to remedy a breach 
of contract that could lead to termination of the poultry 
growing arrangement or swine production contract.

(17) Additional capital investments

      The Senate amendment amends title II of the Packers and 
Stockyards Act to add a new section (section 208) to prohibit a 
contractor from requiring additional investments of the 
contract producer during the term of the contract unless the 
additional investments are offset by reasonable additional 
consideration, including compensation or a modification of the 
terms of the contract; and the contract producer agrees in 
writing that there is acceptable and satisfactory consideration 
for the additional capital investment; or without the 
additional capital investments the well-being of the livestock 
or poultry subject to the contract are in jeopardy. (Section 
10203(b))
      The House bill contains no comparable provision.
      The Conference substitute provides that a poultry growing 
arrangement or swine production contract contain a conspicuous 
statement that additional large capital investments may be 
required of the poultry grower or swine production contract 
grower during the term of the poultry growing arrangement or 
swine production contract. The provision will apply to any 
poultry growing arrangement or swine production contract 
entered into, amended, altered, modified, renewed, or extended 
after the date of enactment of this section. (Section 11005)

(18) Choice of law, jurisdiction and venue

      The Senate amendment: (1) amends title II of the Packers 
and Stockyards Act to add a new section (section 209) governing 
the settlement of disputes arising under production or 
marketing contracts governed by the Packers and Stockyards Act, 
(2) provides that any provision of a livestock or poultry 
contract shall be subject to the jurisdiction, venue of the 
state in which the production occurs, and (3) designates that 
the choice of law, jurisdiction and venue requirements shall 
apply to any production or marketing contract entered into, 
amended, altered, modified, renewed, or extended after the date 
of enactment. (Section 10203)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to require that the forum for resolving any 
dispute among the parties to a poultry growing arrangement or 
swine production or marketing contract shall be the Federal 
judicial district in which the principle part of the 
performance takes place under the arrangement or contract. A 
poultry growing arrangement or swine production or marketing 
contract may specify which State's law is to apply to issues 
governed by State law in any dispute arising out of the 
arrangement or contract, except to the extent that doing so is 
prohibited by the law of the State in which the principal part 
of the performance takes place under the arrangement or 
contract. (Section 11005)

(19) Arbitration of livestock and poultry contracts

      The Senate amendment amends title II of the Packers and 
Stockyards Act to add a new section (section 210) governing the 
settlement of disputes arising under contracts governed by the 
Packers and Stockyards Act. The Senate provision provides that 
arbitration may be used to settle a controversy arising from a 
livestock or poultry contract only if, after the controversy 
arises, both parties consent in writing to use arbitration to 
settle the controversy. (Section 10203(b))
      The House bill amended the Packers and Stockyards Act to 
instruct the Secretary to promulgate regulations to establish 
standards related to arbitration provisions in livestock and 
poultry contracts. The provision directs the Secretary to 
promulgate regulations addressing venue, costs, number and 
appointment of arbitrators, and other elements of arbitration, 
as necessary. The provision requires that any person appointed 
as arbitrator disclose any circumstances that could raise doubt 
as to impartiality.
      The Conference substitute provides a producer or grower 
the ability to decline arbitration prior to entering the 
contract. Any livestock or poultry contract that contains a 
provision requiring the use of arbitration shall conspicuously 
disclose the right of the contract producer or grower, prior to 
entering the contract, to decline the requirement to use 
arbitration to resolve any controversy that may arise under the 
livestock or poultry contract. Any contract producer or grower 
that declines arbitration prior to entering the contract has 
the right to still seek the use of arbitration after a 
controversy arises, if both parties consent in writing to use 
arbitration to settle the controversy. The conference 
substitute provides that it shall be an unlawful practice under 
the Packers and Stockyards Act for a packer, swine contractor, 
or live poultry dealer to violate this section including any 
action that has the intent or effect of limiting the ability of 
a producer or grower to freely make a choice to decline the use 
of arbitration. The Secretary is also required to promulgate 
regulations to establish criteria to be used in determining 
whether the arbitration process provided in a contract provides 
a meaningful opportunity for the grower or producer to 
participate fully in the arbitration process. (Section 11005)
      When used in this section, the Managers intend that the 
term ``contract'' means at a minimum, poultry growing 
arrangements, livestock production, marketing and forward 
contracts.
      The Managers expect that this section be implemented in 
such a manner that producers and growers have a choice and the 
ability to decline arbitration prior to entering the contract. 
Additionally, it is the intent of the Managers that the 
Secretary of Agriculture develop regulations which provide 
producers and growers a reasonable period of time in which to 
decide whether or not to decline arbitration prior to entering 
the contract.

(20) Right to discuss terms of contracts

      The Senate amendment amends section 10503 of the Farm 
Security and Rural Investment Act of 2002 to add to the list in 
current law. It would allow contract growers to also discuss 
contract terms with business associates, neighbors, and other 
producers. (Section 10204)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(21) Attorneys' fees

      The Senate amendment amends section 308 to allow 
producers to attempt to recover the costs of the litigation, 
including reasonable attorneys' fees, (in addition to damages) 
in an action arising under the Packers and Stockyards Act. 
(Section 10205)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(22) Appointment of outside counsel

      The Senate amendment amends section 407 to provide the 
Secretary with the authority to obtain the services of 
attorneys who are not federal employees to aid in 
investigations and civil cases. (Section 10206)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(23) Prohibition on packers owning, feeding, or controlling livestock

      The Senate amendment amends section 202 of the Packers 
and Stockyards Act (7 U.S.C. 192) to add to the list of 
prohibited practices. It prohibits most major packers from 
owning, feeding, or controlling livestock directly, or through 
a subsidiary, or through an arrangement that gives the packer 
operational, managerial, or supervisory control over 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 livestock operation. The 
prohibition does not apply to: packers who enter into 
arrangements within 14 days before slaughter; cooperatives 
where the majority of ownership interest is held by active 
cooperative members; packers not required to report to USDA 
under section 212 of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1635a); or a packer that only owns one livestock 
processing plant. The provision provides that a packer of swine 
would be in violation of this provision if it owns, feeds or 
controls swine later than 18 months after the enactment of this 
Act. It provides that a packer of livestock, other than swine, 
would be in violation of this provision if it owns, feeds or 
controls livestock later than 180 days after enactment of this 
Act. (Section 10207)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(24) Regulations

      The Senate amendment directs USDA to promulgate rules and 
regulations, including regulations dealing with discrimination 
against smaller volume producers. It provides that regulations 
shall also be promulgated to require that live poultry dealers 
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. (Section 10208)
      The House bill contains no comparable provision.
      The Conference substitute provides for the promulgation 
of regulations under the Packers and Stockyards Act, 1921 not 
later than two years after enactment, to establish criteria 
that the Secretary of Agriculture will consider when developing 
the regulations enumerated in this section (Section 11006)

(25) Sense of Congress regarding pseudorabies eradication program

      The House bill expresses the sense of Congress that the 
eradication of pseudorabies is a high priority that should be 
carried out under the authorities of the Animal Health 
Protection Act. (Section 11101)
      The Senate amendment is similar to House provision but 
expands upon the House language to recognize the threat that 
feral swine pose to not only swine, but also the entire 
livestock industry. Senate language also details the importance 
of pseudorabies surveillance funding to assist the swine 
industry in monitoring, surveillance, and eradication of 
pseudorabies, including the monitoring and surveillance of 
other diseases effecting swine production and trade. (Section 
10301)
      The Conference substitute adopts the House provision with 
an amendment to recognize the threat that feral swine pose to 
not only the domestic swine population but also the entire 
livestock industry. (Section 11007)

(26) Sense of Congress regarding the cattle fever tick eradication 
        program

      The House bill expresses the sense of Congress that 
implementing a national strategic plan for the cattle fever 
tick eradication program is a high priority in order to 
identify and procure the necessary tools to prevent and 
eradicate fever ticks in the United States. (Section 11106)
      The Senate amendment is the same as the House bill. 
(Section 10302)
      The Conference substitute adopts the House provision. 
(Section 11008)

(27) National Sheep and Goat Industry Improvement Center

      The House bill amends section 375 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2008j by eliminating 
the requirement that the National Sheep Industry Improvement 
Center privatize its revolving fund. An authorization of 
appropriations of $10 million is authorized for each of the 
fiscal years 2008 through 2012. (Section 6015)
      The Senate amendment: (1) amends section 375 of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2008j) by 
eliminating the requirement that the National Sheep Industry 
Improvement Center privatize its revolving fund, (2) renames 
the Center as the National Sheep and Goat Industry Improvement 
Center, and (3) provides for new mandatory funding of 
$1,000,000 for FY2008, to be available until expended, and 
authorizes $10,000,000 for each FY2008-2012. (Section 10303)
      The Conference substitute adopts the Senate provision 
with an amendment to delete the renaming of the Center. 
(Section 11009)

(28) Trichinae certification program

      The Senate amendment amends section 10409 of the Animal 
Health Protection Act, to direct the USDA to establish and 
implement a trichinae certification program to certify farm 
operations that are trichinae free to be eligible for export or 
other market opportunities. It authorizes appropriations of 
$1.25 million for each of fiscal years 2008 through 2012. 
(Section 10304)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to require the Secretary of Agriculture to 
provide an explanation should the final rule not be promulgated 
within 90 days of enactment of this Act. Subject to 
appropriation of funds, the Secretary is authorized to use 
$6,200,000 to carry out the certification program. (Section 
11010)

(29) Protection of information in the animal identification program

      The Senate amendment directs the Secretary of Agriculture 
to promulgate regulations consistent with the Freedom of 
Information Act regarding the disclosure of information 
submitted by farmers and ranchers who participate in the 
national animal identification system. The regulations 
promulgated are subject to public comment and should address 
the protection of trade secrets and other proprietary and or 
confidential business information. (Section 10305)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(30) Sense of Congress regarding the voluntary control program for low 
        pathogenic avian influenza

      The House bill expresses the sense of Congress that the 
voluntary control program for low pathogenic avian influenza is 
a critical component of the animal health protection system, 
and that the Secretary should continue to provide 100 percent 
compensation for eligible costs to owners of poultry and 
cooperating States. (Section 11105)
      The Senate amendment amends section 10407(d)(2) of the 
Animal Health Protection Act. It defines ``eligible costs'' for 
the purpose of low pathogenic avian influenza indemnification 
as ``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.'' The Senate provision also 
provides that, subject to subparagraphs (B) and (D), with 
respect to compensation provided to an owner of an animal 
required to be destroyed under section 10407 of the Animal 
Health Protection Act, the 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. (Section 10306)
      The Conference substitute provides that the Secretary 
compensate industry participants and States that cooperate with 
the Secretary in conducting livestock pest or disease 
detection, control or eradication measures for 100 percent of 
eligible costs.
      It is the intent of the Managers that compensation under 
this section go 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 in 
an amount equal to 100 percent of the eligible costs. Eligible 
costs are defined in accordance with part 56 of title 9, Code 
of Federal Regulations, as in effect on the date of enactment 
of this section. (Section 11011)

                        CHRONIC WASTING DISEASE

      The Managers expect the Secretary to promulgate, as soon 
as practicable, a final rule to establish a herd certification 
program to combat chronic wasting disease in farmed and captive 
deer, elk and moose. The Managers expect the rule to include 
appropriate certification procedures to allow for the 
interstate movement of participating deer, elk, and moose.

(31) Study on bioenergy operations

      The Senate amendment directs USDA to submit to the House 
and Senate Agriculture Committees 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. (Section 
10307)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to require the study to evaluate the extent 
to which animal manure is utilized as fertilizer in 
agricultural operations, the potential impact on consumers and 
on agricultural operations resulting from limitations being 
placed on the utilization of animal manure as a fertilizer, and 
the effects on agriculture production contributable to the 
increased competition for animal manure use due to bioenergy 
production, including as a feedstock or a replacement for 
fossil fuels. The study is to be submitted to the respective 
House and Senate Committees within 1 year of enactment of this 
Act. (Section 11014)

(32) Sense of the Senate on indemnification of livestock producers

      The Senate amendment expresses the sense of the Senate 
that the USDA 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.'' (Section 10308)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(33) State-inspected meat and poultry

      The House bill requires the Secretary to submit a report 
to Congress with the results of a review of each State meat 
and/or poultry inspection program in section 11103(a). Such 
review will include a determination of the effectiveness of the 
program, and an identification of the changes necessary for the 
program to meet and enforce Federal inspection standards. 
Subsections (b) and (c) of section 11103 amend the Federal Meat 
Inspection Act (FMIA) and the Poultry Products Inspection Act 
(PPIA), respectively, with regard to State inspection programs. 
Authorizes the Secretary to approve a State to ship product 
inspected under such State's inspection program in interstate 
commerce, if such State inspection program has implemented 
identical requirements to those contained in the FMIA and/or 
PPIA and Federal regulations under such statutes. The House 
bill provides requirements for new State inspection programs, 
including that the Secretary shall review all new State 
inspection programs within one year after such State inspection 
program was approved. Upon such review, the State inspection 
program must implement all recommendations from the review. The 
provision provides that a State inspection program will operate 
subject to a cooperative agreement with the Secretary, and 
establishes the terms of such cooperative agreement, including: 
State must adopt requirements identical to Federal inspection 
requirements; State mark of inspection will be deemed an 
official mark; State will comply with labeling requirements 
issued by the Secretary; Secretary will have authority to 
detain and seize products under the State program; Secretary 
will have access to facilities and records of State program; 
and other provisions as determined by the Secretary. The 
provision also provides that the Secretary shall reimburse a 
State for not more than 50 percent of the State's costs for the 
State meat inspection program, and not more than 60 percent of 
the State's costs for the State poultry inspection program. The 
House bill requires the Secretary to take action if the 
Secretary determines that a State inspection program is not in 
compliance with the cooperative agreement, including suspending 
or revoking the approval of the State inspection program. 
Authorizes the Secretary to institute Federal inspection at a 
State-inspected plant if the Secretary determines that such 
State plant is not operating in accordance with the cooperative 
agreement and requirements herein. It also requires the 
Secretary to conduct annual review of each State inspection 
program. It provides that no State may prohibit or restrict the 
movement or sale of meat or poultry products that have been 
inspected and passed in accordance with this section. (Section 
11103)
      The Senate amendment amends the Federal Meat Inspection 
Act (21 U.S.C. 601 et seq.) and the Poultry Products Inspection 
Act (21 U.S.C. 451 et seq.) to create an option for state 
inspected plants that are 25 employees or less to ship in 
interstate commerce. This will not replace the existing state 
inspection programs. Plants that are selected by the Secretary 
to ship in interstate commerce using this option must follow 
the Federal Meat Inspection Act and Poultry Products Inspection 
Act in the same manner as expected of a federally inspected 
establishment. Establishments that are larger than 25 employees 
but less than 35 employees are eligible for this option, but 
must transition to a federal establishment three years after 
promulgation of the final rule. Establishments that are 
currently under Federal inspection are not eligible for this 
option. The Secretary shall reimburse a state for costs related 
to the inspection of selected establishments in the state at an 
amount not less than 60 percent of eligible state costs. The 
Secretary may also reimburse a state for 100 percent of the 
eligible state costs if the selected establishment provides 
additional verification microbiological testing in excess of 
typical Federal establishments. The Secretary shall designate a 
Federal employee as a state coordinator for each state agency 
that has a state inspection program. The state coordinator will 
be under direct supervision of the Secretary. The state 
coordinator will visit selected establishments with a frequency 
appropriate to ensure that these establishments are operating 
in a manner consistent with the Federal Meat Inspection Act and 
Poultry Products Inspection Act. The state coordinator shall 
provide on a quarterly basis a report that describes the status 
of each selected state establishment in regard to compliance 
with the Federal Meat Inspection Act and Poultry Products 
Inspection Act. If a state coordinator finds any selected 
establishment in violation of the Federal Meat Inspection Act 
or Poultry Products Inspection Act, the state coordinator shall 
notify the Secretary of the violation and deselect the selected 
establishment or suspend inspection. The Senate provision 
requires USDA's Inspector General not later than two years 
after the effective date of enactment, and not less than every 
two years, conduct an audit of each activity taken by the 
Secretary to determine compliance of this program with the law. 
The Government Accountability Office shall also conduct an 
audit of the implementation of this program. It also authorizes 
the Secretary of Agriculture to establish within the Food 
Safety Inspection Service (FSIS) at USDA an inspection training 
division to coordinate outreach, education, training and 
technical assistance of very small and certain small 
establishments. The Senate language allows the Secretary to 
provide grants to appropriate state agencies to help 
establishments covered by intrastate inspection under title III 
of the Federal Meat Inspection Act to transition to the new 
program under title V. (Section 11067)
      The Conference substitute adopts the Senate provision 
with an amendment to strike section (c)(2) of the Senate 
amendment regarding microbiological verification testing. 
Periodic audits required of the Inspector General under Senate 
section (e)(1) was changed from two years to not less often 
than every three years. (Section 11015)

(34) Food Safety Commission

      The Senate amendment establishes a Congressional 
Bipartisan Food Safety Commission to review the food safety 
system of the United States and to prepare a report that makes 
recommendations on ways to: modernize the U.S. food safety 
system; harmonize and update food safety statutes; improve 
Federal, State, local, and interagency coordination of food 
safety personnel, activities, budgets, and leadership; allocate 
scarce resources according to risk; ensure that regulations 
directives, guidance, and other standards and requirements are 
based on best-available science and technology; emphasize 
preventative strategies; provide to Federal agencies funding 
mechanisms necessary to effectively carry out food safety 
responsibilities; and to draft specific statutory language that 
would implement recommendations of the Commission. The 
Commission is required to review and consider statutes, studies 
and reports as listed in legislative language to understand the 
U.S. food safety system. The initial meeting is required to 
take place 30 days after the final Commission member is 
appointed. One year after its initial meeting, the Commission 
is required to publish a report on its findings, upon which the 
Commission will dissolve. The members of the Commission will be 
appointed 60 days after the enactment of this legislation. 
Members are required to have training, education or experience 
in food safety research, food safety law and policy, or program 
design and implementation. Members must consist of the 
Secretary of Agriculture (or a designee), the Secretary of 
Health and Human Services (or a designee), one Member of the 
House of Representatives, one Member of the Senate, and 15 
members that represent consumer organizations, agricultural and 
livestock production, public health professionals, State 
regulators, Federal employees, and the livestock and food 
manufacturing and processing industry. Two members of the 
Commission are appointed by the President, 13 are appointed by 
Congress. The Commission is required to hold at least five 
stakeholder meetings, and can hold hearings and secure 
information from Federal agencies to carry out its work. 
Commission members who are not officers or employees of the 
Federal government can be compensated for serving on the 
Commission. Commission members are allowed travel expenses 
while away from home or place of business. The Chairperson of 
the Commission can appoint an executive director and additional 
personnel to carry out the work of the commission. Federal 
Government employees can be detailed to the Commission without 
reimbursement. This provision authorizes appropriations to 
carry out this section. (Section 11060)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(35) Action by President and Congress based on report

      The Senate amendment states: (1) the President is 
required to review the report from the Congressional Bipartisan 
Food Safety Commission established by the Senate amendment, and 
is required to submit to Congress proposed legislation based on 
the recommendations for statutory language contained in the 
Commission's report and proposed legislation, and (2) Congress 
may hold hearings and other activities for consideration of the 
statutory language from the Commission and the President. It 
also contains a Sense of the Senate expressing: the need for 
additional resources and direction for the food safety agencies 
of the Federal Government; the need for additional food safety 
inspectors; the need for food safety agreements between the 
United States and its trading partners; the need for Congress 
to work on comprehensive food safety legislation. (Section 
11072)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(36) Food safety improvement

      The Senate amendment modifies the FMIA and PPIA to create 
a reporting requirement for establishments regulated by USDA-
FSIS to provide information to the Secretary upon determining 
that a meat and/or poultry product it manufactured had entered 
the stream of commerce and was reasonably likely to cause 
serious adverse health events or death (the Class I recall 
standard). Reports are not required if products are under the 
control of the establishment and corrective actions are taken 
to ensure that the product is no longer adulterated, or if the 
product never enters into the stream of commerce. Upon receipt 
of a report, the Secretary would be able to use existing 
authority to request additional information related to the 
incident, issue a public health alert, and work with the 
establishment to notify relevant members of the supply chain 
and pursue a corrective action plan. The language encourages 
USDA to coordinate such efforts with State and local public 
health officials. The provision: (1) requires all 
establishments regulated by USDA-SIS to have in place a recall 
plan per USDA Directive 8080.1, Revision 4, (2) requires all 
beef establishments regulated by USDA-FSIS to have in place an 
E. coli reassessment as described in 67 Federal Register 62325 
(October 7, 2002), (3) directs the Secretaries of Agriculture 
and HHS to promulgate sanitary food transportation regulations, 
as described in section 416(b) of the Federal Food, Drug, and 
Cosmetics Act, and (4) directs USDA, HHS, and DOT to enter into 
a Memorandum of Understanding related to sanitary food 
transportation. (Section 11087)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to add a new section 12 to the Federal Meat 
Inspection Act (21 U.S.C. 611) to require immediate 
notification of the Secretary if an establishment believes or 
has reason to believe that an adulterated or misbranded meat or 
meat food product has entered commerce; add a new section 13 to 
the Federal Meat Inspection Act (21 U.S.C. 611) to require 
establishments to prepare and maintain, in writing, a recall 
plan and any reassessments of their hazard analysis and 
critical control point plans, and to have those plans and 
reassessments available to USDA inspectors. Identical changes 
were made to the Poultry Products Inspection Act (21 U.S.C. 
459) by modifying section 10 of the PPIA. (Section 11017)

(37) Oversight of national aquatic animal health plan

      The Senate amendment establishes a General advisory 
Committee for Oversight of National Aquatic Animal Health 
(composed of not more than 20 members). The advisory committee 
is to make recommendations to the Secretary on:
           the establishment and membership of 
        appropriate experts to efficiently implement the 
        national aquatic animal health plan developed by the 
        National Aquatic Animal Health Task Force
           disease and species-specific best management 
        practices related to activities carried out under the 
        national aquatic animal health plan developed by the 
        National Aquatic Animal Health Task Force
           the establishment and administration of an 
        indemnification fund (see below)
      The Senate amendment requires the Secretary to promulgate 
regulations establishing the national aquatic animal health 
improvement program, in accordance with the Animal Health 
Protection Act. The provision allows for participation by State 
and Tribal Governments and the Private Sector who upon election 
to participate will enter into agreements with the Secretary to 
assume responsibility for a portion of the non-Federal share of 
the costs of carrying out the national aquatic animal health 
plan developed by the National Aquatic Animal Health Task 
Force. It establishes an indemnification fund to compensate 
aquatic farmers for specified purposes. It also requires a 
report not later than 2 years after the date of enactment to 
describe:
           activities carried out under the national 
        aquatic animal health plan developed by the National 
        Aquatic Animal Health Task Force
           activities carried out by the advisory 
        committee
           recommendations for subsequent years' 
        funding
      The Senate amendment authorizes appropriations of 
$15,000,000 for fiscal years 2008 and 2009, of which not less 
than 50 percent is to be deposed into the indemnification fund 
and not more than 50 percent shall be used to carry out the 
national aquatic animal health plan developed by the National 
Aquatic Animal Health Task Force. (Section 11086)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment. (Section 11013)
      The Managers are conscious of the need for an aquatic 
animal health plan. The United States is facing a seafood trade 
deficit of over $9 billion, and faces loss of export markets in 
Europe, partially due to the lack of a coordinated industry 
health program. Without an effective control program in place, 
the United States faces difficulty in safeguarding against pest 
and disease incursions. The Managers therefore encourage the 
Animal and Plant Health Inspection Service to implement a 
National Aquatic Animal Health Plan (NAAHP) within 18 months of 
enactment of this Act. It is further expected that NAAHP should 
be based on the existing plan developed by the National Aquatic 
Animal Health Task Force, and to be refined with extensive 
consultation of cooperators, including state agencies, tribal 
governments, industry, and fish health professionals.
      The Managers note the potential benefits of an advisory 
board to ensure the success of such a Plan; such a board should 
have a balanced representation of state and tribal governments 
and commercial aquaculture interests. The Managers likewise 
recognize the potential benefits of an appropriate number of 
representative expert committees. Such expert committees would 
be charged with recommending disease- and species-specific 
plans, taking into account any existing aquaculture-related 
projects undertaken under the aegis of the Plan as of the date 
of enactment of this legislation.

                       TITLE XII--CROP INSURANCE


(1) Premiums and reinsurance requirements

            (a) Premium Adjustments (Section 508(a) of the Federal Crop 
                    Insurance Act)
      The House bill: prohibits paying premiums, offering 
rebates for premiums, or making other inducements to purchase 
crop insurance or after crop insurance has been purchased, 
except for administrative fees pursuant to section 508(b)(5)(B) 
of the Federal Crop Insurance Act or performance-based 
discounts under section 508(d)(3) of the same Act. (Section 
11001(a))
      The Conference substitute adopts the House provision, 
with the following modification--the rebating rules are 
modified so as to permit certain cooperatives that were 
authorized to offer payments in accordance with section 
(b)(5)(B) as in effect the day before the date of enactment by 
the Risk Management Agency (RMA) in the 2005, 2006, and 2007 
reinsurance years to continue to do so. (Section 12004)
      The Managers' intent in including clause (9)(B)(iii) is 
to ``grandfather in'' entities that have previously been 
approved by the Federal Crop Insurance Corporation 
(Corporation) to make payments in accordance with subsection 
(b)(5)(B) as in effect on the day before the date of enactment. 
These entities must provide payments or patronage dividends in 
a consistent manner with the payment plan previously approved 
in accordance with such subsection for the entity by the 
Corporation. The Managers expect the Corporation to notify, in 
writing and on an annual basis, entities covered under the 
grandfather clause as well as 508(b)(5)(B) as amended of their 
ability to provide such payments and the scope of providing 
such payments. The Managers expect the Corporation to exercise 
strict oversight to ensure that these entities are operating 
consistent with federal and state law and the payment plan 
submitted and approved. The Managers understand through 
discussions with RMA that the parties covered by the 
grandfather clause represent the universe of parties engaged in 
this activity. The Managers also understand from RMA that, 
while two submissions are still under review, no further 
requests are pending or expected from additional parties 
seeking to engage in the activities of those parties covered by 
the grandfather clause.
            (b) Administrative Fee (Section 508(b) of the Federal Crop 
                    Insurance Act)
      Section 11001(b) of the House bill amends the Federal 
Crop Insurance Act to limit the ability of an insurance 
provider, cooperative association, or trade association to pay 
for only catastrophic risk protection administrative fees on 
behalf of a producer. The Senate amendment clarifies language 
that permits cooperatives or trade associations to pay premiums 
on behalf of farmer-members to make it clear that the provision 
applies only to fees for catastrophic coverage. It also strikes 
clause (ii) which requires that licensing fees in connection 
with the issuance of catastrophic risk protection or additional 
coverage to be paid to cooperatives or trade associations from 
insurance providers shall be subject to laws regarding rebates 
in the various states in which the fee or other payment is 
made. (Section 1905)
      The Conference substitute adopts the Senate provision 
(Section 12006).
            (c) Time for Payment (Section 508(d) of the Federal Crop 
                    Insurance Act)
      Section 11001(c) of the House bill requires that 
beginning with the 2012 reinsurance year, the Corporation must 
establish August 1 as the billing date for crop insurance 
premiums.
      Paragraph (1) of section 1906 of the Senate amendment 
establishes the date when policyholder premiums must be paid, 
beginning in the 2012 reinsurance year, to no later than 
September 30. (Section 1906)
      The Conference substitute adopts the House provision, 
with a date change to August 15. (Section 12007)
            (d) Reimbursement rate (Section 508(k) of the Federal Crop 
                    Insurance Act)
      Paragraph (1) of Section 11001(d) of the House bill 
amends section 508(k)(4)(A) of the Federal Crop Insurance Act 
to provide that beginning with the 2009 reinsurance year, the 
Corporation shall reimburse insurance providers and agents for 
administrative and operating (A&O) expenses at a rate 2.9 
percentage points below the rates in effect on the day of 
enactment of this Act.
      Section 1912 of the Senate amendment reduces the 
reimbursement rate for existing plans of insurance by 2 
percentage points below the rates in effect at the time of 
enactment of this Act, except that the reduction shall not be 
applied in any reinsurance year for a state in which the loss 
ratio exceeds 1.2, beginning in the 2009 reinsurance year. It 
also reduces the reimbursement rate for area policies (such as 
Group Risk Plan (GRP) and Group Risk Income Protection (GRIP)) 
to 17 percent of premiums because delivery costs are not as 
high relative to delivery costs for other products. (Section 
1912)
      The Conference substitute adopts the Senate provision, 
with the following modification--it provides for a 2.3 
percentage point reduction from current levels for the overall 
A&O reduction, with a snapback that restores one half of the 
reduction to states in years in which their overall loss ratio 
exceeds 1.2. In addition, it includes the reduction to the 
reimbursement rate for area policies from the Senate provision, 
with the rate lowered to 12 percent of total premiums. (Section 
12016)
      The Managers intend for the limitation in paragraph (F) 
to apply only to plans of insurance that are established and 
widely available at the time of enactment, and not apply to 
area plans such as the Pasture, Rangeland, and Forage program 
that have higher delivery costs than policies such as GRIP and 
GRP.
            (e) Renegotiation of the Standard Reinsurance Agreement 
                    (Section 508(k) of the Federal Crop Insurance Act)
      Paragraph (2) of Section 11001(d) of the House bill 
provides that during the year following the reinsurance year 
ending June 30, 2012, the Corporation may renegotiate the 
financial terms of the Standard Reinsurance Agreement (SRA), 
and subsequently conduct such renegotiations once during each 
period of five reinsurance years thereafter and stipulates that 
changes in Federal law that require the Corporation to revise 
the financial terms of the SRA will not be considered to be a 
renegotiation of the agreement. It also provides that approved 
insurance providers may confer with each other during the 
renegotiation process.
      The Senate amendment allows the Federal Crop Insurance 
Corporation to renegotiate the SRA, which contains the 
contractual obligations and financial terms of the relationship 
between RMA and the crop insurance companies, every five years, 
the first occurring not sooner than the end of the 2012 
reinsurance year. It provides an exception to allow the SRA to 
be renegotiated more frequently if necessary to address 
unexpected adverse circumstances experienced by the companies. 
The Secretary is required to notify the relevant Congressional 
Committees before invoking this exception. This section also 
allows crop insurance companies to confer with each other in 
the course of the renegotiation process, as well as 
collectively with RMA. (Section 1913)
      The Conference substitute adopts the Senate provision 
with modifications, incorporating the House language on 
treatment of changes in the SRA due to changes in Federal law. 
It moves up the time when the next SRA can be negotiated, to be 
effective for the 2011 reinsurance year. It also requires the 
RMA to consider certain alternative mechanisms for compensating 
companies for delivery expenses, when negotiating the SRA. 
(Section 12017)
            (f) Time for Reimbursement (Section 508(k) of the Federal 
                    Crop Insurance Act)
      Section 11001(e) of the House bill requires that 
beginning with the 2012 reinsurance year, the Corporation make 
administrative and operating expense payments during October 
2012, and every October thereafter.
      Paragraph (2) of section 1906 of the Senate amendment 
establishes the date when the Federal Crop Insurance 
Corporation makes payments to crop insurance companies to 
reimburse them for administrative and operating expenses, 
beginning in the 2012 reinsurance year, allowing payments to be 
made as soon as practicable after October 1 of the year 
following the reinsurance year, but not later than October 30.
      The Conference substitute adopts the Senate provision. 
(Section 12015)
            (g) Premium Reduction Authority (Section 508(e) of the 
                    Federal Crop Insurance Act)
      Paragraph (1) of Section 11001(f) of the House bill 
strikes the authority for the Premium Reduction Plan (PRP) and 
the Premium Rate Reduction Pilot. The Senate amendment repeals 
the authority for the Premium Reduction Plan (PRP) and requires 
RMA to commission an independent study of the feasibility of 
offering a discount to farmers in the Federal crop insurance 
program. This study is to be completed within 18 months of 
enactment of the farm bill. (Section 1908)
      The Conference substitute adopts the House provision, but 
drops the elimination of the Premium Rate Reduction Pilot 
language. (Section 12010)
      The Managers repeal the authority for the Premium 
Reduction Plan. The Managers believe it would serve a useful 
purpose for the Risk Management Agency to evaluate the process 
that led to the promulgation of the regulations under which PRP 
has been operated, to try to determine where mistakes might 
have been made, in either concept or execution.

(2) Catastrophic risk protection administrative fee

      The House bill amends section 508(b)(5)(A) of the Federal 
Crop Insurance Act to provide for a $200 catastrophic risk 
protection administrative fee. (Section 11002)
      The Senate amendment increases the fee for catastrophic 
risk protection coverage from its current $100 per crop per 
county to $200 per crop per county, and strikes language 
allowing a higher fee to be charged as a function of imputed 
premium. (Section 1905(a))
      The Conference substitute adopts the Senate provision, 
with modifications--it increases the fee to $300 per crop per 
county, and repeals an annual appropriations rider barring 
charges fees based on imputed premium levels. (Section 12006)

(3) Funding for reimbursement, contracting, risk management education, 
        and information technology

      The House bill amends section 516 of the Federal Crop 
Insurance Act to provide that the Corporation use not more than 
$30 million in each fiscal year for costs associated with: 
research and development and partnerships for risk management 
in section 522 of such Act; education and information programs 
in section 524 of such Act; and information technology. 
Further, it provides that the Corporation use no more than $5 
million to carry out contracting for research and development 
for underserved states, pursuant to section 522(c)(1)(A) of 
such Act. It also prohibits the Corporation from conducting 
research and development for any new policy for a commodity 
under this title. (Section 11003)
      The Senate amendment reduces mandatory funding available 
to reimburse research and development of new crop insurance 
products from its current $15 million annually to $7.5 million 
annually in paragraph (1). Paragraph (2) reduces mandatory 
funding availability for contracting and partnerships from its 
current $25 million annually to $12.5 million annually. 
Paragraph (3) permits the Corporation to use up to $5 million 
of otherwise unused funds available for reimbursement, 
contracting, or partnership payments to strengthen crop 
insurance compliance oversight activities, including 
information technology and data mining. (Section 1919)
      The Conference substitute adopts the Senate provision. 
(Section 12024)

(4) Reimbursement of research and development costs related to new crop 
        insurance products

      The House bill authorizes the Corporation to reimburse an 
applicant for research and development costs related to a 
policy that is submitted pursuant to a Federal Crop Insurance 
Corporation (FCIC) Reimbursement Grant or is submitted to the 
FCIC Board and approved in section 11004(a).
      Section 11004(b) authorizes the Corporation to provide 
FCIC Reimbursement Grants to persons proposing to prepare crop 
insurance policies for submission to the Board, and who have 
applied and been approved for such grants. The provision 
stipulates the required materials for a grant application, 
including: a concept paper; an explanation of the need for the 
product, including the product's marketability, the projected 
impact of the product, and that no similar product is offered 
by the private sector; and an identification of the risks the 
product will cover and that the risks are insurable under the 
Federal Crop Insurance Act. Approval of a grant is by majority 
vote of the Board, and the Board shall approve an application 
only if: the proposal establishes the need for the policy; the 
applicant has the qualifications to successfully complete the 
project; the proposal can reasonably be expected to be 
actuarially appropriate; the Board has sufficient funding; and 
the proposed budget and timeline are reasonable.
      The provision requires payment for work performed under 
this section to be based on rates determined by the 
Corporation. Either the Corporation or applicant may terminate 
any grant for just cause. (Section 11004)
      The Senate amendment authorizes the reimbursement of 
development costs related to a policy through a Federal Crop 
Insurance Reimbursement Grant or is submitted to the FCIC Board 
and is approved in subsection (a). Subsection (b) provides an 
alternative process for policy development, by establishing a 
grant-making mechanism (called FCIC Reimbursement Grants). This 
mechanism permits eligible applicants to submit a concept 
proposal, to be reviewed by crop insurance experts, for 
consideration by the Board of the Federal Crop Insurance 
Corporation. If the grant request is approved, the development 
work is ensured of funding and when completed, submitted to the 
Board for approval. The Board can require an interim 
feasibility study before allowing development work to proceed. 
Rates for work performed shall be based on rates determined by 
the Corporation for products submitted under section 508(h) or 
research contracted for under section 522(c). The grant can be 
terminated at any time for just cause. Subsection (c) 
eliminates language in section 523(b)(10) of the FCIA that 
provides an exception for research and development costs in 
livestock program funding caps. (Section 1918)
      The Conference substitute adopts the House provision, 
with significant modifications. The provision as adopted 
provides an opportunity for applicants with approved concept 
papers to receive up to 50 percent of their estimated expenses 
in advance. If their proposed crop insurance product is 
subsequently approved by the Board, they then are reimbursed 
for the remainder of their expenses. If they submit a proposed 
product to the Board and it is rejected, they receive no 
additional funds but are not required to repay the advance. 
Only if they fail to submit a completed submission without just 
cause would they be required to repay the advance. Applicants 
with poor track records on submissions may be prohibited from 
receiving advance payments, but would still be eligible to 
develop crop insurance products under 508(h) procedures in 
current law. (Section 12022)
      The Managers intend for the Corporation to develop the 
procedures to implement this section as soon as practicable so 
that the Corporation may start accepting applications for 
advanced reimbursement of research and development costs 180 
days after this section's enactment. Since under current law, 
crop insurance products approved under 508(h) procedures are 
eligible, at the Corporation's discretion under appropriate 
circumstances, for reimbursement at U.S. General Services 
Administration competitive rates, the Managers intend for 
reimbursements made under this section to be equally eligible 
for such rates, still subject to the Corporation's discretion.

(5) Research and development contract for organic production coverage 
        improvements

      The House bill mandates that the Corporation enter into 
one or more contracts for the development of improvements in 
Federal crop insurance policies for organically raised crops. 
Any such contracts must review the underwriting, risk, and loss 
experience of organic crops in order for the Corporation to 
determine variation in loss history between organic and non-
organic production. The Corporation shall eliminate or reduce 
the premium surcharge for coverage of organic crops, unless the 
Corporation's review documents significant, consistent, and 
systemic variations in loss history between organic and non-
organic crops. The House provision provides that a contract 
include the development of a procedure to offer producers of 
organic crops an additional price election reflecting actual 
retail or wholesale prices received by organic producers, and 
requires that the Corporation submit an annual report to 
Congress on the progress made in developing and improving 
Federal crop insurance for organic crops. (Section 11005)
      The Senate amendment adds a new paragraph (12) which 
requires the Federal Crop Insurance Corporation to offer to 
enter into one or more contracts to improve crop insurance 
coverage for organic crops. New paragraph (10) requires the 
Federal Crop Insurance Corporation to offer to enter into one 
or more contracts to develop policies to insure dedicated 
energy crops such as switchgrass. New paragraph (11) requires 
the Federal Crop Insurance Corporation to offer to enter into 
one or more contracts to develop policies to insure aquaculture 
operations. New paragraph (13) requires the Federal Crop 
Insurance Corporation to offer to enter into a contract to 
study how to incorporate the use of skiprow cropping practices 
to grow corn and sorghum in the Central Great Plains into 
existing policies and plans of insurance offered in the Federal 
crop insurance program. (Section 1917)
      Section 1907 prohibits the Federal Crop Insurance 
Corporation from charging a surcharge on premiums paid to 
insure organic crops. It allows surcharges to be required only 
when consistent evidence of greater loss variability is 
validated on a crop by crop basis. (Section 1907)
      The Conference substitute adopts the House provision, 
with the inclusion of Senate provisions requiring contracts 
regarding dedicated energy crops, aquaculture, skiprow cropping 
practices, and the following additions: the Corporation is also 
required to offer to enter into contracts for developing a 
poultry policy, a policy for bee-keepers, and a study on what 
modifications might be need for Adjusted Gross Revenue policies 
to make them more useful for beginning farmers. In the 
subsection addressing development of aquaculture policies, more 
details are provided about what species should be considered. 
(Section 12023)
      The Managers are concerned that producers in the Central 
Great Plains seeking to utilize skip row planting patterns are 
being offered crop insurance coverage for less than 100% of the 
planted fields despite ongoing research showing that skip row 
planting results in no loss in overall yields. In including 
this provision in paragraph (16), the Managers are seeking to 
have RMA review existing and soon-to-be completed skip row 
research and production histories, develop crop insurance rules 
and policies that adequately reflect this research, and thus 
better capture the actual productive capability of skip row 
planting patterns.
      The Managers are also concerned how recent natural 
disasters in the Southeastern United States have revealed that 
existing crop insurance products and programs are not well-
tailored to the unique horticultural practices of the nursery 
industry across the country. The Managers urge the Risk 
Management Agency (RMA) to work with the nursery industry on 
crop insurance policies specifically designed for nursery 
growers and encourage the Administrator of RMA, under his 
existing authority, to consider initiating a pilot program or 
programs with nursery growers in affected regions to ensure 
that crop insurance programs avoid in the future the issues 
that arose in the aftermath of these natural disasters.

(6) Targeting risk management education for beginning farmers and 
        ranchers and certain other farmers and ranchers

      The House bill requires the Secretary to include a 
special emphasis on risk management strategies and education 
and outreach to beginning farmers and ranchers, immigrant 
farmers and ranchers attempting to become established producers 
in the United States, socially disadvantaged farmers and 
ranchers, farmers and ranchers who are preparing to retire and 
are trying to help new farmers and ranchers get started, and 
farmers and ranchers who are converting production and 
marketing systems to new markets. (Section 11006)
      The Senate amendment requires the Secretary to place 
special emphasis in utilizing funds available to address the 
needs of farmers in underserved states to assist in risk 
management strategies of beginning farmers and ranchers, 
immigrant farmers and ranchers, socially disadvantaged farmers 
and ranchers, farmers and ranchers preparing to retire and 
engaged in transition strategies to help beginning farmers get 
established, and established farmers and ranchers seeking to 
shift practices and marketing to pursue new markets. (Section 
1922)
      The Conference substitute adopts the Senate provision, 
with one minor language change. (Section 12026)

(7) Crop insurance ineligibility related to crop production on 
        noncropland

      The House bill defines ``noncropland'' as native 
grassland and pasture the Secretary determines has never been 
used for crop production. It also provides that noncropland 
acreage planted with an agricultural commodity for which 
insurance is available under this title is not eligible for 
crop insurance under this title for the first four years of 
planting. In the fifth year of planting, the producer may 
purchase crop insurance for the commodity. The yield for such 
insurance shall be determined by using actual production 
history for the farm and, for years without actual production 
history, using the average actual production history for the 
commodity in the county. (Section 11007)
      The Senate amendment denies crop insurance and noninsured 
crop disaster assistance program benefits (NAP) on lands 
converted from native sod after passage of this farm bill. In 
section 2608(a)(1), native sod is defined as land on which the 
plant cover is composed principally of native grasses, 
grasslike plants, forbs, or shrubs suitable for grazing and 
browsing, and which has never been used for production of an 
agricultural commodity. Section 2608(a)(2)(B) establishes de 
minimus exception of 5 acres. Section 2608(c) directs the 
Secretary to provide a report to Congress on the extent of 
conversion of noncropland to cropland since 1995 within 180 
days of the passage of the Farm Bill, and to provide annual 
updates by January 1st of each year. (Section 2608)
      The Conference substitute adopts the House bill with 
modification. At the election of the Governor of a State in the 
Prairie Pothole Region National Priority Area, native sod 
acreage that is tilled for the production of an annual crop 
will be ineligible for crop insurance and noninsured crop 
disaster assistance benefits during the first 5 crop years of 
planting. Native sod is defined as land on which the plant 
cover is composed principally of native grasses, grasslike 
plants, forbs, or shrubs suitable for grazing and browsing; and 
that has not been tilled for the production of an annual crop 
at the date of enactment. The Secretary may exempt conversions 
of 5 acres or less from the terms of the provision. (Section 
12020).
      The Managers adopted this modification in recognition of 
the significant interest in conserving native tall-, mixed-, 
and short-grass prairie in the Prairie Pothole Region (PPR). 
Several recent reports have analyzed grassland conversion and 
potential drivers in certain areas of the PPR over the past two 
decades. The analysis by the Government Accountability Office 
(GAO) found that crop insurance program payments may serve as 
an incentive for conversion, but that many other factors such 
as crop prices and new farming technologies also play a role in 
producer decisions. GAO also identified a general lack of 
current and comprehensive data on land conversions, precluding 
reliable trend analysis. Correspondingly, GAO's final 
recommendations were that USDA should: 1) track annual 
conversion and provide current data to policymakers, and 2) 
conduct a study of the relationship between farm program 
payments and land conversion and report findings to Congress.
      The Managers determined that existing information is 
insufficient to apply a broad-sweeping national policy to 
address what may be a localized concern. However, where states 
determine that grassland conversion is a present threat and 
want to create disincentives for conversion, the Managers are 
making a ``sodsaver'' program option available at the request 
of the State. The Managers further expect USDA to address the 
GAO recommendations in order to inform future policy decisions 
on this issue. In addition, the Managers reauthorized a number 
of conservation programs, such as the grassland reserve program 
and the environmental quality incentives program, which provide 
incentives for grassland protection and conservation. The 
Managers encourage States to leverage these programs to provide 
further incentives to their grassland protection objectives.
      The Managers intend for the Secretary to undertake a 
study on the influence of the crop insurance program on the 
conversion of native sod to crop production. The study should 
consider as part of the review, added land provisions, yield 
plugs, written agreements, and county T yields. The study 
should also consider the sufficiency of grazing coverage 
available through crop insurance or the non-insurance 
assistance program as compared to the economics of crops 
planted on converted grazing land. The managers expect the 
Secretary to address specific actions that may be taken by the 
Department or recommended to Congress to mitigate any 
identified conversion influences of the crop insurance program. 
The managers expect the Secretary to present the results of the 
study to the Senate Committee on Agriculture, Nutrition, and 
Forestry and the House Committee on Agriculture in early 2009.

(8) Funds for data mining

      The House bill authorizes the Corporation to use not more 
than $11 million during fiscal year 2008, and not more than $7 
million during fiscal year 2009 and each subsequent fiscal 
year, for crop insurance program compliance and integrity, 
including data mining, for a total of $73 million in outlays 
over ten years. (Section 11008)
      The Senate amendment allows RMA to charge a fee to crop 
insurance companies for access to company-relevant results of 
data-mining analysis, and would require that these funds are 
used for improvements in the crop insurance data mining system. 
If RMA were to require companies to access the data-mining 
results for purposes of compliance, including quality assurance 
requirements under the terms of the SRA, they could not be 
charged a fee under those circumstances. (Section 1915)
      The Conference substitute adopts the House provision, 
except it provides a total of $36 million over ten years for 
this purpose, and it requires periodic competition for these 
funds. A new subsection provides $60 million for upgrading 
computer technology at the Risk Management Agency. (Section 
12021)

(9) Noninsured crop assistance program

      The House bill amends the Agricultural Market Transition 
Act to provide that service fees producers must pay for the 
Noninsured Crop Insurance Program shall be $200 per crop per 
county; or $600 per producer per county, with a limit of $1,800 
per producer. (Section 11009)
      The Senate amendment doubles the service fee charged for 
participation in the NAP program from its current $100 to $200, 
or $600 per producer per county, with a limit of $1,500 per 
producer. (Section 1926)
      The Senate amendment also clarifies that losses from 
aquacultural activities resulting from drought should be 
indemnified if the farmer has NAP coverage for that production. 
(Section 1925)
      The conference substitute adopts the Senate language from 
Section 1925, changing the new fee to $250 per crop per county, 
or $750 per producer per county, with a limit of $1,875 per 
producer. (Section 12028)
      The Conference substitute also adopts the Senate 
provision on eligibility for indemnification for drought losses 
for aquaculture. (Section 12027)

(10) Change in due date for corporation payments for underwriting gains

      The House bill directs the Corporation to make payments 
for underwriting gains on October 1, 2012, and for each 
subsequent reinsurance year, on October 1 of the next calendar 
year, beginning with the 2011 reinsurance year. (Section 11010)
      The Senate amendment establishes the date as October 1 
that the Federal Crop Insurance Corporation makes payments for 
underwriting gains to crop insurance companies, beginning in 
the 2011 reinsurance year. (Section 1914)
      The Conference substitute adopts the Senate provision. 
(Section 12018)

(11) Sesame Insurance Pilot Program

      The House bill requires the Secretary to establish a 
pilot program under which sesame producers in the State of 
Texas may obtain crop insurance. Under the pilot program, 
producers obtaining the insurance shall pay premiums and 
administrative fees. (Section 11011)
      The Senate amendment is the same as the House bill. 
(Section 1921)
      The Conference substitute adopts the Senate provision 
with an amendment to strike the end date, and adds the camelina 
pilot program from Senate Section 1920 and adds a new pilot 
program for grass seed. (Section 12025)

(12) National Drought Council and drought preparedness plans

      The House bill establishes a National Drought Council 
within the office of the Secretary of Agriculture that will 
develop a National Drought Policy Action Plan for integrating 
and coordinating drought activities of the Federal government 
and States, including drought preparedness, mitigation, risk 
management and emergency relief. Additional Council duties 
include reviewing and evaluating existing drought programs, 
making recommendations to the President and Congress, and 
developing public awareness activities on drought.
      The House bill establishes the Drought Assistance Fund 
within the Department of Agriculture to, in part, pay the costs 
of providing technical and financial assistance to States, 
Indian Tribes, local governments and other groups for the 
development and implementation of drought preparedness plans, 
and for the cost of mitigating the risk and impact of droughts. 
The language provides requirements for the guidelines 
associated with the distribution of funds from the Drought 
Assistance Fund, including requiring that States and/or Indian 
tribes developing plans for interstate watersheds coordinate 
with other States and/or Indian tribes in the development of 
said plans.
      The House bill requires the Secretary, with concurrence 
of the Council, to develop guidelines for administering a 
national program to provide assistance to States, Indian 
tribes, local governments and others for the development, 
maintenance, and implementation of drought preparedness plans. 
The provision requires the Secretary to develop Federal drought 
preparedness plans, which will integrate with drought plans of 
State, tribal, local government, and others. The provision 
stipulates the elements for such drought preparedness plans.
      The House bill authorizes appropriations of $2 million 
for fiscal year 2008 and each of the subsequent seven fiscal 
years for the Council; authorizes the appropriation of such 
sums as necessary to carry out the Drought Assistance Fund. 
(Section 11012)
      The Senate amendment contains no comparable provision.
      The Conference substitute drops the House provision.

(13) Payment of portion of premium for area revenue plans

      The House bill establishes the premium subsidy amount for 
area revenue insurance plans, based on (1) the percentage of 
the recorded county yield indemnified, and (2) the sum of a 
percentage of the premium established for additional 
catastrophic risk protection and the amount determined to cover 
operating and administrative expenses for additional 
catastrophic risk protection.
      The House bill establishes the premium subsidy amount for 
area yield insurance plans, based on (1) the percentage of the 
recorded country yield indemnified, and (2) the sum of a 
percentage of premium established for additional catastrophic 
risk protection and the amount determined to cover operating 
and administrative expenses for additional catastrophic risk 
protection. (Section 11013)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 12012)

(14) Share of risk

      The House bill amends the Federal Crop Insurance Act to 
require that companies that are being reinsured by the 
Corporation share the risk of loss, such that the underwriting 
gain or loss and the associated premium and losses ceded to the 
Corporation under any reinsurance agreement be not less than 
12.5 percent. The provision further requires the Corporation to 
pay a ceding commission to such companies of 2 percent of the 
premium used to define the loss ratio for the approved 
insurance provider's book of business. (Section 11014)
      The Senate amendment contains no comparable provision.
      The Conference substitute drops the House provision.

(15) Livestock assistance

      The House bill stipulates that the purchase of a Non-
insured Assistance Program policy is not a requirement to 
receive any Federal livestock disaster assistance. (Section 
11015)
      The Senate amendment contains no comparable provision.
      The Conference substitute drops the House provision.

(16) Determination of certain sweet potato production

      The House bill excludes Risk Management Agency Pilot 
Program data for determining the 2005-2006 Farm Service Agency 
Crop Disaster Program for sweet potatoes. (Section 11016)
      The Senate amendment amends section 9001 of the U.S. 
Troop Readiness, Veterans Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act of 2007 (P.L. 100-28, 121 
Stat. 211). It prohibits the Farm Service Agency from utilizing 
yield data collected from a sweet potato crop insurance pilot 
program to determine losses for the crop disaster assistance 
program recently enacted for the 2005 and 2006 crop years. If 
sign-up for that program is completed before the 2007 farm bill 
is enacted, then the sign-up period would have to be re-opened 
for producers of sweet potatoes. (Section 1927)
      The Conference substitute adopts the Senate provision. 
(Section 12029)

(16A) Report on funds; rate of Federal crop insurance

      The House bill gives the Secretary of the Interior the 
authority to further cut the expense reimbursement rate for 
crop insurance companies if the actual revenue from offshore 
oil leases fails to meet projections beginning in 2012. 
(Section 13011)
      The Senate amendment contains no comparable provision.
      The Conference substitute drops the House provision.

(17) Definition of organic crop

      The Senate amendment defines organic crops for the 
purposes of the Federal crop insurance program. (Section 1901)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12001)

(18) General powers

      The Senate amendment clarifies in subsection (a)(1) that 
the provision added in the Agricultural Risk Protection Act of 
2000 (section 508(j)(2)(A)), which allows farmers to sue the 
Corporation over a denied claim only in the U.S. District Court 
for the district where the insured farm is located, takes 
precedence over the more general provision in section 506(d).
      Subsection (a)(2) of the Senate amendment strikes 
subsection (n) of the Federal Crop Insurance Act (7 U.S.C. 
1506), in order to clarify that it is superseded by Section 
515(h) added in the Agricultural Risk Protection Act which 
specifically establishes sanctions for producers, agents, and 
loss adjusters for program noncompliance and fraud. (Section 
1902)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12002)

(19) Reduction in loss ratio

      The Senate amendment reduces the statutory national loss 
ratio for the Federal crop insurance program to 1.0. (Section 
1903)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12003)

(20) Controlled business insurance

      The Senate amendment prohibits farmers from collecting 
commissions as crop insurance agents on policies in which they 
or members of their immediate family have a substantial 
beneficial interest if more than 30 percent of their total 
commissions are derived from policies sold on operations that 
they or their immediate family have beneficial interest in. 
This prohibition is applied on a calendar year basis. (Section 
1904)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
with modifications to the definitions of immediate family and 
compensation to clarify the intent of Congress. (Section 12005)
      For individuals meeting the tests in clauses (B)(i) and 
(B)(ii), the Managers' intent is to prohibit compensation on 
policies or plans of insurance in which they or members of 
their immediate family have a substantial beneficial interest, 
rather than all policies or plans of insurance that they 
service.
      The Managers expect the Risk Management Agency (RMA) to 
enforce this section through an effective system of statistical 
sampling and spot checks rather than through the imposition of 
blanket new reporting requirements on agents, subagents, or 
approved insurance providers. The Managers further expect that 
the RMA will enforce this section in a manner that does not 
affect bona fide customer service representatives or other such 
employees of an agent who work in a capacity other than as an 
agent or subagent and whose employment with an agent is not 
intended to merely circumvent the prohibitions under this 
section.

(21) Enterprise and whole farm unit pilot program

      The Senate amendment establishes a pilot program to allow 
farmers to convert the value of their crop insurance coverage 
under optional and basic units to higher levels of coverage for 
enterprise or whole farm units. (Section 1909)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
with modifications, so as to allow any farmer to participate in 
this pilot, whether or not they had purchased coverage with 
optional or basic units in previous crop years. It also 
requires that the farmer-paid share of premium under this 
program be no less than 20 percent. (Section 12011)

(22) Denial of claims

      The Senate amendment clarifies that approved insurance 
providers are only liable for lawsuits in Federal District 
courts for denial of claims if that claim is denied at the 
behest of the Federal Crop Insurance Corporation, not if they 
deny such claims themselves. (Section 1910)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12013)

(23) Measurement of farm-stored commodities

      The Senate amendment allows farmers the option to elect 
to have the Farm Service Agency measure the quantity of crops 
stored on farms for the purpose of providing evidence on their 
level of losses, at their own expense. (Section 1911)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
with modifications. It allows farmers basing their crop 
insurance loss claim on measurement of farm-stored commodities 
to defer settlement of that claim for up to 4 months to allow 
stored grain to settle in the bin. (Section 12014)

(24) Malting barley

      The Senate amendment allows RMA to modify the quality 
endorsement for malting barley to take into account changing 
market conditions. (Section 1929)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12019)

(25) Producer eligibility

      The Senate amendment makes producers who raise livestock 
under contract eligible to purchase coverage, as long as those 
livestock are not covered by other policies reinsured under the 
Federal crop insurance program. (Section 1916)
      The House bill contains no comparable provision.
      The Conference substitute drops the Senate provision, but 
includes a requirement that the Risk Management Agency offer to 
enter into a contract to develop an insurance policy for 
poultry production elsewhere in the title.

(26) Camelina pilot program

      The Senate amendment requires the Federal Crop Insurance 
Corporation to develop a pilot program under which producers or 
processors of camelina (an oilseed suitable for use as a 
feedstock for biodiesel) may propose for approval by the Board 
policies or plans of insurance in accordance with existing 
procedures under Section 508(h). Camelina producers would be 
made eligible for the Noninsured Crop Assistance Program (NAP) 
until a crop insurance policy is made available. (Section 1920)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with slight modification to simply list camelina as a NAP 
eligible crop. (Section 12025)

(27) Agricultural management assistance

      The Senate amendment permits the Secretary to utilize 
funds available for agricultural management assistance to 
provide matching funds to states providing additional discounts 
on farmer-paid premiums in underserved states. (Section 1923)
      The House bill contains no comparable provision.
      The Conference substitute drops the Senate provision.

(28) Crop insurance mediation

      The Senate amendment allows producers involved in a 
dispute over a crop insurance claim to utilize both informal 
agency review and mediation to reach a resolution, so the 
producer would not necessarily have to choose between the two 
paths. (Section 1924)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12032)

(29) Perennial crop report

      The Senate amendment requires the Secretary to submit a 
report within 180 days of enactment to the Senate Committee on 
Agriculture, Nutrition and Forestry and the House Committee on 
Agriculture that addresses issues relating to declining yields 
in producers' actual production histories (APH), and declining 
and variable yields for perennial crops, including pecans. 
(Section 1928)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
with a title change. (Section 12030)
      The Managers recognize risk management challenges faced 
by producers, especially with respect to declining yields in 
light of increases in premiums. The Managers also understand 
that there are unique issues with yield variability for 
perennial crops, such as pecans. The Managers are interested in 
the Department of Agriculture's activities to address these 
issues and options that the Department has to address these 
issues administratively.

(30) Definition of basic unit

      The Senate amendment maintains definition of basic unit 
in crop insurance for producers of tobacco. (Section 1930)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12031)

                               SUBTITLE B

(31) Short title and definitions (12051 and 12052)

(32) Disaster loans to nonprofits

      The Senate amendment provides the Small Business 
Administration (SBA) Administrator with the discretion to make 
loans to non-profit organizations located or operating in a 
declared disaster area, and to provide services to persons 
evacuated from any disaster area. (Section 11121)
      The House bill contains no comparable provision.
      The Conference substitute amends the Senate provision and 
renames the provision ``Economic Injury Disaster Loans to 
Nonprofits'', with alternate language that will permit private 
nonprofit organizations to qualify for disaster assistance 
within the disaster area. (Section 12061)
      The Managers do not, however, intend for this amendment 
to extend SBA disaster assistance to private nonprofit 
organizations located outside designated disaster areas.
      The Conference substitute also adds a section titled 
``Applicants That Have Become a Major Source of Employment Due 
to Changed Economic Circumstances''. This provision permits 
small businesses that were not a major source of employment 
prior to the disaster, but which subsequently are a major 
source of employment following the disaster, to qualify for 
disaster loans beyond the current statutory limit. (Section 
12077)
      The Managers intend for this provision to authorize the 
SBA to administer the disaster loan program with reference to 
the borrower's circumstances relative to the local area's 
economic conditions when the loan application is made and not 
rely solely upon the loan applicant's status as a major source 
of employment prior to the disaster.

(33) Disaster loan amounts

      The Senate amendment raises the maximum outstanding loan 
amounts available to borrowers from the current level of 
$1,500,000, capping it at $2,000,000 subject to the discretion 
of the SBA based upon the economic conditions in the affected 
disaster region. (Section 11122)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 12078)
      The Conference substitute adds a provision titled, 
``Increased Deferment Period'', which will provide disaster 
victims with an option of receiving a four year deferment 
period for disaster loans. (Section 12068)
      The Managers intend for this provision to provide the SBA 
with authority to provide disaster victims with a deferment 
beyond the current two-year deferment authority so that they 
may rebuild homes and businesses and reestablish income streams 
before beginning repayment of their SBA disaster loan. The 
Managers intend for extended deferment periods to be 
implemented at the discretion of the Administrator. 
Additionally, while the Managers do not intend for loan 
repayments to occur during deferments, interest should continue 
to accrue on loans during the deferment period.
      The Conference substitute also adds a provision titled, 
``Net Earnings Clauses Prohibited'', which will preclude the 
imposition of loan terms that require supplemental repayment 
amounts on disaster assistance loans during the first five 
years of repayment. (Section 12070)
      The Managers believe that this provision will benefit 
capital-intensive businesses that receive SBA disaster 
assistance loans and require earnings for reinvestment in the 
business to remain profitable. The Managers do not, however, 
intend for this provision to completely prohibit the SBA from 
imposing a net earnings clause, it simply precludes imposing 
these terms within the first five years of loan repayment.
      And the Conference substitute adds a provision called, 
``Gulf Coast Disaster Loan Refinancing Program'', which enables 
the SBA, at their discretion, to institute a program to 
refinance Gulf Coast disaster loans resulting from Hurricanes 
Katrina, Rita, or Wilma up to an amount no greater than the 
original loan. (Section 12086)

(34) Small Business Development Center portability grants

      The Senate amendment grants the SBA the ability to make 
an award to a Small Business Development Center (SBDC) greater 
than $100,000 due to extraordinary circumstances after a 
catastrophic disaster. (Section 11123)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision.

(35) Assistance to out-of-state businesses

      The Senate amendment authorizes SBDCs outside of the 
geographic region of a disaster area to provide assistance to 
small businesses located within a declared disaster area at the 
discretion of the Administrator. (Section 11124)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision.

(36) Outreach programs

      The Senate amendment establishes a procurement outreach 
and technical assistance program at the discretion of the 
Administrator following a disaster declaration. (Section 11125)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision.

(37) Small business bonding threshold

      The Senate permits the Administrator to guarantee any 
surety against loss on a bid bond, payment bond, or performance 
bond that does not exceed $5,000,000.
      Additionally, the provision would authorize the 
Administrator to guarantee bonds related to reconstruction 
efforts following a major disaster in amounts of up to 
$10,000,000 upon the request by the head of any Federal Agency 
involved in reconstruction efforts (Section 11126)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment but 
requires that these initiatives only be carried out with 
amounts appropriated in advance specifically for their purpose. 
(Section 12079)

(38) Termination of program

      The Senate amendment terminates the Small Business 
Competitive Demonstration Program Act of 1988. (Section 11127)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision.

(39) Increasing collateral requirements

      The Senate amendment increases the loan amount under 
which collateral is not required from $10,000 to $14,000 (or 
higher as deemed appropriate by the Administrator). (Section 
11128)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12065)

(40) Public awareness of disaster declaration and application periods

      The Senate amendment enhances coordination between the 
SBA and Federal Emergency Management Agency (FEMA) disaster 
assistance application periods, and outlines a Congressional 
reporting requirement on information relating to SBA and FEMA 
disaster assistance applications. The provision also requires 
that the SBA communicate information on disaster assistance 
availability to the public through all available channels of 
communication. The section also requires that the SBA create a 
marketing and outreach plan to convey disaster assistance 
eligibility and application requirements. (Section 11129)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12063)
      The Conference substitute adds a provision titled, 
``Coordination of Disaster Assistance Programs with FEMA'' that 
will require the SBA to establish uniform guidelines in 
consultation with the director of the FEMA to provide for the 
coordination of their assistance programs. Specifically, the 
provision requires the SBA to establish regulations to ensure 
that applications for disaster assistance are submitted to the 
appropriate agency as quickly as is practicable.
      The Managers intend for these regulations to remedy 
problems that arise when the SBA's disaster loan program is 
used as a screening mechanism for FEMA's disaster assistance 
grants. Additionally, the Managers intend for these regulations 
to limit the need for the SBA to first consider disaster loan 
applications from victims who are patently ineligible for SBA 
assistance as a precondition to consideration for FEMA 
assistance. (Section 12062)
      The Conference substitute also adds a provision titled, 
``Information Tracking and Follow-up System'', which will 
require the SBA to develop, implement, or maintain a 
centralized information system to track all communications 
(written, e-mail and phone) between disaster victims and SBA 
personnel concerning the status of their application. At a 
minimum, this system must record the method and date of 
communication and the identity of the SBA employee involved and 
a summary of the communication. It also requires the SBA to 
provide follow-up communications to disaster victims as their 
disaster loan proceeds through critical stages of the 
origination, approval and disbursement process.
      The Managers intend for this section to address 
deficiencies in the SBA's current systems for tracking and 
organizing information that result in lost documentation, 
repeated status updates from applicants, and misinformed SBA 
personnel. (Section 12067)
      The Conference substitute also adds a provision titled, 
``Economic Injury Disaster Loans in Cases of Ice Storms and 
Blizzards'', which will add ice storms and blizzards to the 
list of enumerated disasters for which a small business 
disaster may be declared. (Section 12071)

(41) Consistency between administration regulations and standard 
        operating procedures

      The Senate amendment contains a provision requiring the 
SBA to conduct a study of whether the standard operating 
procedures for administering disaster loan assistance are 
consistent with the Administration's regulations for 
administering the disaster loan program. (Section 11130)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12064)

(42) Processing disaster loans

      The Senate amendment authorizes the SBA to enter into 
agreements to pay qualified private contractors a fee for 
processing SBA disaster loan applications during any major 
disaster declaration. This provision would also authorize the 
Administrator to enter into agreements to pay qualified lenders 
or loss verification professionals a fee for performing loan 
loss verification services. Additionally, this section would 
require the SBA Administrator and the Internal Revenue Service 
Commissioner to ensure that all relevant and allowable tax 
records for loan approval are shared with loan processors in an 
expedited manner upon request by the Administrator.
      The Managers do not intend for this provision to 
authorize the SBA to delegate all their disaster loan 
disbursement or servicing functions with private contractors. 
Nor do the Managers intend for this provision to abrogate the 
SBA's authority to approve or disapprove disaster loan 
applications. (Section 11131)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 12066)
      The Conference substitute adds a provision titled, 
``Disaster Processing Redundancy'', which will require the SBA 
to maintain a backup disaster processing operation in a 
separate geographic location from the primary processing 
operation. The backup facility must be capable of taking over 
all disaster loan processing from the SBA's primary facility 
within two days following a disaster, which renders the primary 
facility inoperable. (Section 12069)
      The Managers intend for this provision to mitigate the 
risk associated with the practice of maintaining a single 
primary disaster processing facility.
      The Conference substitute also adds a provision titled, 
``Plans to Secure Additional Office Space'', which requires the 
SBA to develop long-term plans to secure sufficient space to 
accommodate an expanded workforce in times of disaster. 
(Section 12076)

(43) Development and implementation of major disaster response plan

      The Senate amendment contains a provision that would 
require the SBA to amend the 2006 Atlantic Hurricane Season 
Disaster Response Plan to apply to all major disasters, and 
report to Congress on its progress. Additionally, this 
provision would require the SBA to develop and execute 
simulation exercises within six months of submitting its report 
to Congress to demonstrate the effectiveness of the updated 
response plan. (Section 11132)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment and 
requires the SBA to conduct a disaster simulation exercise at 
least once every two fiscal years that includes, at a minimum, 
the participation of not less than half of the agency's 
disaster reserve corps. Additionally, the biennial disaster 
simulation exercise should include stress-testing of the 
agency's vital information technology and telecommunications 
system, including various aspects of the SBA's current loan 
processing and call support systems, the DCMS system, the core 
application functions, and additional components such as loss 
verification and scanning systems. This stress-testing should 
simulate an increased number of concurrent users to determine 
whether the complete system, operating at maximum capacity will 
meet the agency's needs for effective and accurate operations 
in a major disaster. Additionally, the biennial disaster 
simulation exercise should be based upon the most serious 
disaster scenarios that the agency has identified in the 
comprehensive disaster response plan and the agency should 
change the disaster scenario and the geographic region upon 
which each disaster simulation is predicated. (Section 12072)
      The Conference substitute adds a provision titled 
``Comprehensive Disaster Response Plan'', which requires the 
SBA to develop, implement, or maintain a comprehensive written 
disaster response plan. The plan should include a risk-based 
assessment of the various types of disasters likely to occur in 
each of the agency's 10 districts. Each assessment should 
include an analysis of the SBA's needs for an effective 
response to each disaster scenario, with emphasis on strategies 
to meet rapidly expanding demand for information technology, 
telecommunications, human resources, and office space needs. 
Additionally, the comprehensive plan should include appropriate 
guidelines for coordination with other federal agencies as well 
as with State and local authorities to effectively respond to 
each disaster and best utilize agency resources. In developing 
the comprehensive plan, the SBA should integrate the results of 
disaster simulation exercises and catastrophe modeling programs 
to generate its disaster risk assessments and estimate the 
demand on agency resources. Additionally, the agency must 
include a report on the status of the disaster plan, 
highlighting any changes and developments from previous years, 
in its annual report to Congress as required by this Act. 
(Section 12075)

(44) Disaster planning responsibilities

      The Senate amendment requires the SBA to assign disaster 
planning responsibilities to a qualified employee who is not an 
employee of the Office of Disaster Assistance. (Section 11133)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment 
with changes. The SBA must create a new position within the 
agency that is solely and exclusively dedicated to the function 
of disaster planning and readiness. The individual appointed to 
this position will be appointed by the Administrator and will 
report directly and solely to the Administrator. The individual 
must have substantial expertise in the field of disaster 
readiness and emergency response and should have proven 
management ability. (Section 12073)
      The Managers intend for this individual to serve as a 
high-level administration official who operates independently 
from all of the agency's existing offices and who has exclusive 
authority over the disaster planning function. Additionally, 
this provision mandates that the Administrator ensure that the 
individual assigned the disaster planning function has adequate 
resources to carry out their enumerated duties.

(45) Additional authority for the district offices of the 
        administration

      The Senate amendment gives the SBA the ability to grant 
district offices permission to process disaster loans and 
requires the SBA to designate an employee in each district 
office to act as a disaster loan liaison between the processing 
center and the applicants. (Section 11134)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision.

(46) Assignment of employees of the Office of Disaster Assistance and 
        Disaster Cadre

      The Senate amendment requires that the Administrator may, 
where practicable, ensure that the number of full-time 
equivalent employees be maintained at 800 for the Office of 
Disaster Assistance and at 750 for the SBA's Disaster Cadre. If 
the staffing level for either of those offices falls below the 
statutorily mandated limit, the Administrator is required to 
submit a report to Congress and request additional funds if 
necessary. (Section 11135)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
but raises the minimum staffing levels for the Disaster Cadre 
to 1,000. (Section 12074)

(47) Small Business Act Catastrophic National Disaster Declaration

      The Senate amendment establishes a new Presidential 
disaster declaration that would have existed solely within the 
Small Business Act known as a ``Small Business Act Catastrophic 
National Disaster Declaration.'' The Senate amendment would 
also give the Administrator the authority to make economic 
injury disaster to loans to businesses located outside the 
designated disaster area. (Section 11141)
      The House bill contains no comparable provision.
      The Conference substitute amends the Catastrophic 
Disaster Declaration and entitles it ``Eligibility for 
Additional Disaster Assistance,'' which authorizes the 
Administrator to declare eligibility for additional disaster 
assistance following a Presidential major disaster declaration 
that rises to the level of a catastrophic incident. The 
Managers do not intend for every major disaster to give rise to 
a declaration of eligibility for additional disaster 
assistance, but intend that the SBA authorize this additional 
disaster assistance only in the most extraordinary and 
devastating of catastrophic incidents that render the SBA's 
conventional disaster assistance programs inadequate or 
ineffective. The Managers intend that, when determining whether 
additional disaster assistance is to be made available, the SBA 
should ensure that the eligible disaster must be similar in 
size or scope to the terrorist attacks that occurred on 
September 11, 2001 or hurricanes ``Katrina'' or ``Rita'' that 
struck the U.S. Gulf Coast in 2005. (Section 12081)
      The Conference substitute adopts a portion of this Senate 
provision and adds a section titled, ``Additional Economic 
Injury Disaster Loan Assistance,'' which authorizes the 
Administrator to make economic injury disaster loans to small 
businesses located outside the disaster area that have suffered 
identifiable economic injury as a direct result of a major 
disaster for which the Administrator has declared eligibility 
for additional disaster assistance.
      The Managers intend that businesses receiving assistance 
under this provision have suffered damage that was proximately 
caused by the disaster. Additionally, the Managers do not 
intend for this provision to displace the timely processing and 
disbursement of disaster assistance applications for businesses 
that are actually located within the designated disaster area. 
This provision further details eligibility requirements for 
affected businesses and provides for the suspension of the 
program if it has a significant negative impact on normal SBA 
loan processing times. (Section 12082)

(48) Private disaster loans

      The Senate amendment provides definitions of key terms 
and defines the parameters for authorization and use of Private 
Disaster Loans. The provision allows the SBA to guarantee 
timely payment of principal and interest on private loans 
issued to eligible small businesses and homeowners within an 
eligible disaster area, and the provision establishes an online 
application. The SBA may guarantee no more than 85 percent of a 
loan, worth a maximum amount of $2 million. Within one year the 
SBA must issue permanent regulations and criteria. The SBA is 
also given the authority to reduce the interest rate on any 
loan. (Section 11142)
      The House bill contains no comparable provision.
      The Conference substitute adopts a portion of the Senate 
provision and further requires the SBA to implement a Private 
Disaster Assistance program, whereby the SBA may guarantee 
timely payment of principal and interest of up to 85 percent of 
disaster loans made to eligible small businesses and homeowners 
within an eligible disaster area following a major disaster for 
which the Administrator declares eligibility for additional 
assistance. The SBA is also given authority to establish an 
online application process for private disaster loans and may 
permit lenders to use their own documentation. Loans 
administered under the program, however, must carry the same 
interest rate and be made on the same terms and conditions as 
SBA disaster loans made under the existing 7(b) disaster 
assistance program, and the SBA may use funds appropriated to 
the 7(b) program to fulfill this requirement. Private disaster 
loans for homeowners, however, may only be made by lenders who 
participate in the SBA's Preferred Lender Program. By contrast, 
loans for small businesses may be made by any lender who meets 
the agency's qualification requirements, or by a Preferred 
Lender who also makes loans to homeowners. (Section 12083)

(49) Technical and conforming amendments

      (Section 11143)

(50) Expedited Disaster Assistance Loan Program

      The Senate amendment requires the Administrator to set up 
an Expedited Disaster Assistance Loan program in consultation 
with Congress, appropriate lenders and creditors, SBDC's, and 
appropriate offices within the Small Business Administration. 
The loans, made to borrowers otherwise eligible for loans under 
the Small Business Act, shall not exceed $150,000, exceed 180 
days in length, and be more then one percent over the prime 
rate. (Section 11144)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment and 
requires that the loans only be made by private institutions 
and the Administrator may guarantee timely payments of 
principal and interest. (Section 12085)
      The Conference substitute also adds a provision titled 
``Immediate Disaster Assistance Program,'' which will establish 
an SBA disaster loan program to provide small businesses with 
immediate, small-dollar loans administered through private 
sector lenders after any disaster. Loans made under the program 
would carry an 85 percent guarantee on amounts up to $25,000. 
Loans made under this program would also be contingent upon the 
business applying for and meeting basic criteria for a 
subsequent SBA disaster loan, and the outstanding loan balance 
must be repaid with the proceeds of the conventional SBA loan. 
(Section 12084)
      The Managers intend for both the Immediate Disaster 
Assistance Program and the Expedited Disaster program to 
function as bridge financing programs for businesses that are 
awaiting approval or disbursement of funds under the SBA's 
conventional disaster loan program. The Immediate Disaster 
assistance program is intended to provide eligible small 
business concerns with emergency, small-dollar financing within 
36 hours following a disaster pending the victim's receipt of a 
conventional disaster loan. This contrasts the SBA's current 
loan program which has a target approval timeframe of 21 days 
and is intended to provide the disaster victim with long-term, 
low-interest assistance. The Expedited Disaster program is 
intended to provide bridge loans to disaster victims eligible 
for the 7(b) program who need a greater amount of funding. The 
loans are also intended to be disbursed more quickly then a 
standard SBA disaster loan.

(51) HUBZones

      The Senate amendment makes any area designated as a 
Catastrophic National Disaster Area a HUBZone, as well as all 
disaster areas designated as a result of Hurricane Katrina or 
Rita. This designation shall persist for the two- year period 
beginning on the date of the designation of the area as a Small 
Business catastrophic national disaster area, or longer at the 
discretion of the SBA. (Section 11145)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision.

(52) Congressional oversight

      The Senate amendment requires the submission of monthly 
reports on disaster loan programs to Congress detailing lending 
volume and activity, as well as a daily updates during a 
Presidential disaster declaration. The SBA would also be 
required to submit a report to Congress every six months (for 
up to 18 months after the President declares a major disaster), 
detailing the numbers of contracts awarded to various types of 
small businesses in the area, as well as a report that details 
how the SBA can improve the processing of applications under 
the Disaster Loan Program. (Section 11161)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment and 
requires the SBA to submit to Congress a report on the Disaster 
Assistance Program performance during the previous fiscal year. 
This report will cover changes in staffing, technology, and a 
review of challenges encountered and overall results. 
Additionally, during any period for which the Administrator has 
declared eligibility for additional assistance, the SBA is 
required to make monthly reports to Congress with basic 
information on their disaster response. During a Presidential 
disaster declaration period, the SBA must submit weekly updates 
to Congress, as opposed to daily updates in the original Senate 
amendment. The Conference substitute changes the name to 
``Reports on Disaster Assistance''. (Section 12091)

            TITLE XIII--AMENDMENTS TO COMMODITY EXCHANGE ACT


(1) Short title

      The Senate amendment cites this title as the ``CFTC 
Reauthorization Act of 2008''. (Section 13001)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 13001)

(2) Commission authority over off-exchange retail foreign currency 
        transactions

      The Senate amendment amends section 2(c)(2) of the 
Commodity Exchange Act (CEA) (7 U.S.C. 2(c)(2)) by clarifying 
that the Commodity Futures Trading Commission's (Commission) 
anti-fraud authority applies to retail off-exchange foreign 
currency (forex) transactions that are: (i) offered to, or 
entered into with, a person that is not an eligible contract 
participant (i.e., a retail customer); and (ii) offered or 
entered into on a leveraged or margined basis, or financed by 
the offeror, the counterparty, or a person acting in concert 
with the offeror or counterparty, on a similar basis.
      If the test in new section 2(c)(2)(C) is met, courts will 
no longer have to decide whether forex transactions that meet 
these requirements are futures contracts in order to permit the 
Commission to pursue an action for fraud. But since CEA section 
4b remains limited by its terms to futures, a new provision 
(section 2(c)(2)(C)(iv)) is added to ensure that section 4b 
applies to all covered forex transactions (e.g., ``rolling 
spot'' or other futures look-like products) ``as if'' they were 
futures contracts. Under this provision, the Commission need 
not prove that such transactions are futures in order to 
establish a fraud violation. However, this provision is not 
intended to suggest, nor does it create a negative inference, 
that such contracts are not futures contracts.
    The phrase ``leveraged or margined basis'' is not limited 
to the same type of leverage or margin that exists for trading 
in on-exchange markets. The fact that off-exchange transactions 
are at issue means that they are likely to operate differently 
from exchange-traded instruments in this regard.
      Excluded from new section 2(c)(2)(C) are: (i) 
transactions offered or entered into by certain otherwise-
regulated entities, such as financial institutions, broker-
dealers, and insurance companies; (ii) securities that are not 
security futures products; and (iii) transactions that create 
an enforceable obligation to deliver between a seller and buyer 
that have the ability to deliver and accept delivery, 
respectively, in connection with their line of business. The 
term ``line of business'' in new section 
2(c)(2)(C)(i)(II)(bb)(BB) refers to any legitimate line of 
business, not just a foreign exchange business. The reference 
to ``an enforceable obligation to deliver'' in connection with 
a ``line of business'' emphasizes the commercial nature of this 
exclusion.
      The Senate amendment explicitly reserves CEA sections 
2(a)(1)(B) (principal-agent liability); 4(b) (foreign markets); 
4o (fraud by commodity pool operators and commodity trading 
advisors); 13(a) (aiding and abetting liability); and 13(b) 
(controlling person liability) with respect to fraudulent forex 
activities.
      While the secondary liability provisions of principal-
agent, aiding-abetting, and controlling-person liability were 
implied in the Commodity Futures Modernization Act of 2000 
(CFMA), these amendments make that reservation of Commission 
anti-fraud authority explicit. The amendments are not intended 
to suggest, nor do they create a negative inference, that these 
secondary liability provisions are not available in actions 
brought under other sections of the CEA where Commission anti-
fraud or anti-manipulation authority is reserved, such as CEA 
sections 2(h)(2), 2(h)(4), and 5d(c).
      The Senate amendment also provides authority to the 
Commission to issue rules proscribing fraud in connection with 
any agreement, contract or transaction in an exempt or 
agricultural commodity that is (i) offered to, or entered into 
with, a person that is not an eligible contract participant 
(i.e., a retail customer); and (ii) offered or entered into on 
a leveraged or margined basis, or financed by the offeror, the 
counterparty, or a person acting in concert with the offeror or 
counterparty, on a similar basis. (Section 13101)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendment.
      With the amendment, the managers intend to address 
several additional problems currently resulting in consumers 
being the victims of fraud related to off-exchange foreign 
currency transactions. The CFMA permitted registered Futures 
Commission Merchants (FCM) to offer foreign currency trading to 
the public without requiring that they be substantially or 
primarily engaged in the business of exchange-traded futures.
      Since passage of the CFMA, the Managers note that an 
inordinate number of fraudulent schemes are currently 
implemented through shell FCMs and their unregistered 
affiliates. These shell FCMs meet minimal requirements for FCMs 
and typically conduct little, if any, traditional on-exchange 
business of an FCM. Their purpose instead is to serve as the 
parent company for their unregistered affiliates. It is the 
unregistered affiliates that will typically conduct the retail 
sale of foreign currency contracts. Unregistered affiliates of 
a shell FCM are subject to little if any regulatory oversight, 
making them harbors for fraudulent schemes.
      The amendment addresses the problem of shell FCMs and 
unregistered affiliates by providing that only FCMs that are 
primarily or substantially or primarily engaged in the buying 
and/or selling of futures contracts on a Designated Contract 
Market or Derivatives Transaction Execution Facility, or a 
material affiliate of such an FCM are lawful FCM or FCM-
affiliate counterparties for a retail transaction in foreign 
currency.
      The Managers intend that the Commission will utilize the 
rulemaking authority provided in this section to define when a 
registered futures commission merchant is primarily or 
substantially engaged in the buying and/or selling of futures 
contracts as described in CEA section 1a(20) for the purposes 
of new provisions 2(c)(2)(B)(i)(II)(cc)(AA) and (BB).
      A material affiliate is an affiliate for which an FCM is 
required to keep records relating to an affiliate's futures and 
financial activities under CEA section 4f(c)(2)(B). The 
amendment provides that FCMs and FCM-affiliates must maintain 
minimum net capital of $20 million to be a lawful counterparty. 
This capital requirement is phased in over a period of one 
year.
      The amendment provides for a new category of dealer known 
as a ``retail foreign exchange dealer'' (RFED). The amendment 
provides that RFEDs also must maintain a minimum of $20 million 
in net capital to be a lawful counter party for a retail off-
exchange foreign transaction. This capital requirement is 
phased in over a period of one year.
      The purpose of imposing a $20 million minimum capital 
requirement on FCMs, FCM-affiliates, and RFEDs is to ensure 
that forex dealers utilizing these classifications to conduct 
retail foreign currency business are sufficiently capitalized 
to ensure their financial soundness--especially given that many 
entities in this area run what are essentially off-exchange, 
retail forex markets.
      In addition, to maintaining a minimum of $20 million in 
adjusted net capital, the managers expect the Commission to use 
the rulemaking authority provided under this section to 
promulgate any other requirements necessary to ensure the 
financial soundness of RFEDs.
      The rules and regulations issued under this section 
should appropriately address the level of financial risk posed 
by RFEDs and their operations. To the extent their risk 
profiles are similar, the managers intend for FCMs and RFEDs to 
be regulated substantially equivalently in terms of their off-
exchange retail foreign currency business. The managers do not 
intend for the Commission to provide either FCMs or RFEDs with 
a more favorable regulatory environment over the other or 
create two significantly different regulatory regimes for 
similar business models--to the extent the financial risks 
posed by such operations are similar.
      In addition to regulatory authority over FCMs and RFEDs, 
the amendment provides the Commission with greater authority 
over participants in the off-exchange foreign currency trading 
industry who are not the actual counterparty to the transaction 
to ensure that the Commission has authority needed over these 
industry participants to take action to address fraudulent or 
deceptive practices.
      The amendment strikes the Senate provision to provide 
authority to the Commission to issue rules proscribing fraud in 
connection with any agreement, contract or transaction in an 
exempt or agricultural commodity that is (i) offered to, or 
entered into with, a person that is not an eligible contract 
participant (i.e., a retail customer); and (ii) offered or 
entered into on a leveraged or margined basis, or financed by 
the offeror, the counterparty, or a person acting in concert 
with the offeror or counterparty, on a similar basis. (Section 
13101)

(3) Liaison with Department of Justice

      The Senate amendment requires the Attorney General to 
designate a liaison between the Department of Justice and the 
Commission to coordinate civil and criminal investigations and 
prosecutions of violations of the CEA. (Section 13102)
      The House bill contains no comparable provision.
      The Senate recedes.

(4) Anti-fraud authority over principal-to-principal transactions

      The Senate amendment amends section 4b of the CEA (7 
U.S.C. section 6b) to clarify that the CEA gives the Commission 
the authority to bring fraud actions in off-exchange 
``principal-to-principal'' futures transactions. Subsection 
4b(a)(2) is amended by adding the words ``or with'' to address 
principal-to-principal transactions on the new markets and 
trading venues permitted under the CFMA. This new language 
clarifies that the Commission has the authority to bring anti-
fraud actions in off-exchange principal-to-principal futures 
transactions, including exempt commodity transactions in energy 
under section 2(h), as well as transactions conducted on 
derivatives transaction execution facilities. The prohibitions 
in subparagraphs (A) through (D) of the new section 4b(a) would 
apply to all transactions covered by paragraphs (1) and (2).
      Derivatives clearing organizations are not subject to 
fraud actions under section 4b in connection with their 
clearing activities.
    The amendments to CEA section 4b(a) regarding transactions 
currently prohibited under subparagraph (iv) (found in new 
subparagraph (D)) are not intended to affect in any way the 
Commission's historical ability to prosecute cases of indirect 
bucketing of orders executed on designated contract markets. 
(See, e.g., Reddy v. CFTC, 191 F.3d 109 (2nd Cir. 1999); In re 
DeFrancesco, et al., CFTC Docket No. 02-09 (CFTC May 22, 2003) 
(Order Making Findings and Imposing Remedial Sanctions as to 
Respondent Brian Thornton)).
      These amendments should not be interpreted or understood 
as calling into question the Commission's historical use of 
section 4b to address principal-to-principal trading in the 
retail context on regulated futures exchanges. (Section 13103)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 13102)

(5) Criminal and civil penalties

      The Senate amendment amends the CEA to double the civil 
and criminal penalties available for certain violations of the 
CEA such as manipulation, attempted manipulation, and false 
reporting. The increased civil monetary penalties in the 
Reauthorization Act are intended to render the CEA's penalty 
provisions comparable to the penalty provisions that Congress 
enacted in the Energy Policy Act of 2005 for manipulation cases 
brought by the Federal Energy Regulatory Commission with 
respect to physical energy markets. (Section 13104)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendment. The amendment addresses technical drafting 
issues. (Section 103103)

(6) Authorization of appropriations

      The Senate amendment authorizes such sums as may be 
necessary to carry out the Act for fiscal years 2008 through 
2013. (Section 13105)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 13104)

(7) Technical and conforming amendments

      The Senate amendment contains various amendments to 
correct statutory errors and other conforming changes. (Section 
13106)
      The House bill contains no comparable provision.
      The Conference substitute Adopts the Senate provision 
with amendment. The amendment makes additional technical and 
conforming changes to the CEA.
      The amendment amends section 1(a)(33) of the CEA (7 
U.S.C. 1). The definition of ``trading facility'' under the CEA 
is a key criterion for defining a number of categories of 
regulated markets (e.g., designated contract markets, 
derivatives transaction execution facilities), exempt markets 
(e.g., exempt commercial markets, exempt boards of trade) and 
excluded markets (e.g., CEA section 2(d)(2)). By amending the 
definition of trading facility, the Managers address a concern 
where the Commission's jurisdiction could be compromised if 
novel auction systems which aggregate the market sentiments of 
multiple participants to derive a market price according to a 
pre-determined algorithm were to fall outside the agency's 
regulatory ambit. The definition of ``trading facility'' has 
been amended to anticipate and include, prospectively, markets 
which utilize automated trade matching and execution 
algorithms.
      Section 4a(e) of the CEA provides, among other things, 
that it is a violation of the CEA, for any person to violate a 
speculative limit rule of a designated contract market, 
derivatives transaction execution facility, or other board of 
trade if that rule has been approved by the Commission. Section 
5c(c) of the CEA, though, permits exchanges to certify such 
rules rather than submit them for prior Commission approval. 
The Managers amend section 4a(e) to bring it into harmony with 
the CEA provisions regarding certification of exchange rules. 
Specifically, the Managers amend section 4a(e) to provide that 
it is a violation of the CEA, for which the Commission may 
bring an enforcement action, for any person to violate a 
speculative limit rule that has been certified by a registered 
entity.
      The Managers are concerned that complainants seeking to 
enforce an award received through the Commission's reparations 
process are facing difficulties in obtaining relief from 
Federal District courts. Accordingly, the Managers include 
language in this amendment amending section 14(d) of the 
Commodity Exchange Act (7 U.S.C. 18) to provide that Commission 
reparations awards are directly enforceable in Federal District 
courts as if they were local judgments pursuant to 29 U.S.C. 
1963. The Managers also provide that the amendment shall 
operate retroactively. (Section 13105)

(8) Portfolio margining and security index issues

      Following enactment of the CFMA, the Commission and 
Securities and Exchange Commission (SEC) jointly promulgated 
rules relating to the margining of security futures products 
(SFP). Under those rules, SFPs have been subject to the same 
fixed-rate strategy-based margining scheme applicable to 
security options customer accounts, rather than the risk-based 
portfolio margining system typical in the futures industry. 
Many have argued that this has contributed to the low volume of 
trading in SFPs which, by contrast, have been successful in 
Europe. The Senate amendment directs the Commission and SEC to 
use their existing authorities by September 30, 2008, to allow 
customers to benefit from the use of a risk-based portfolio 
margining system for both security options and SFPs.
      The detailed statutory test of a narrow-based security 
index was tailored to fit the U.S. equity markets, which are by 
far the largest, deepest and most liquid securities markets in 
the world. The amendment provides clarity in this area by 
requiring the Commission and the SEC to take action under their 
existing authorities to promulgate, by June 30, 2008, final 
rules providing criteria that will exclude broad-based indexes 
on foreign equities from the definition of narrow-based 
security index as appropriate. (Section 13107)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to extend the deadlines to September 30, 2009 
for implementing portfolio margining and June 30, 2009 for 
promulgating criteria for excluding broad-based indexes on 
foreign equities from the definition of narrow-based security 
index as appropriate. (Section 13106)

(9) Significant price discovery contracts

      The Senate amendment provided for greater regulation of 
contracts traded on exempt commercial markets (ECM) that 
fulfill a price discovery function. It sets forth criteria for 
the Commission to consider in determining whether an ECM 
contract qualifies as a significant price discovery contract 
(SPDC). These criteria include: (i) price linkage; (ii) 
arbitrage; (iii) material price reference; and (iv) material 
liquidity and other such material factors as the Commission 
specifies by rule.
      The amendment applies core principles to ECM contracts 
that are determined to perform a significant price discovery 
function by the Commission. These Core Principles are derived 
from selected DCM core principles and designation criteria set 
forth in CEA section 5. These core principles include those 
relating to: contracts not being readily susceptible to 
manipulation, monitoring of trading, the ability of the 
Commission to obtain information, position limitations or 
accountability limitations, emergency authority, daily 
publication of trading information, compliance with rules, and 
conflict of interest.
      The amendment gives the electronic trading facility the 
explicit discretion to take into account differences between 
cleared and uncleared SPDCs only in applying the emergency 
authority and the position limits or accountability core 
principles and directs the Commission to take such differences 
into consideration when reviewing implementation of such 
principles by the electronic trading facility in (7)(D);
      The amendment requires an electronic trading facility to 
notify the Commission whenever it has reason to believe that an 
agreement, contract or transaction conducted in reliance on the 
exemption provided in 2(h)(3) displays any of the factors 
relating to a significant price discovery function described in 
subparagraph (7)(B); and directs the Commission to conduct an 
evaluation at least once a year to determine whether any 
agreement, contract or transaction conducted on an electronic 
trading facility in reliance on the exemption in 2(h)(3) 
performs a significant price discovery function in (7)(E). 
(Section 13201)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendment. With the amendment the Managers make several 
changes to the Senate provision.
      The Managers provide that the Commission shall promulgate 
rules and regulations to implement the authorities provided by 
this Act regarding significant price discovery contracts. The 
Senate provision had originally made such promulgation 
discretionary. The Managers also allow the Commission to 
consider the potential for arbitrage between a potential SPDC 
and an existing SPDC in making a determination whether a 
contract is a SPDC.
      The Managers amend the Senate provision to make clear 
that an electronic trading facility shall have reasonable 
discretion to account for differences between cleared and 
uncleared contracts in complying with all the core principles 
applicable under this Act to SPDCs.
      The Managers amend the Senate provision to make clear 
that in determining appropriate position limits or position 
accountability limits under this Act, an electronic trading 
facility shall consider cleared swaps transactions that are 
treated by a derivatives clearing organization as fungible with 
significant price discovery contracts. The Managers also amend 
the Senate language to apply the conflict of interest and 
antitrust considerations core principles to electronic trading 
facilities only with respect to SPDCs traded on such 
facilities.
      Not all the listed factors must be present to make a 
determination that a contract performs a significant price 
discovery function. However, the Managers intend that the 
Commission should not make a determination that an agreement, 
contract or transaction performs a significant price discovery 
function on the basis of the price linkage factor unless the 
agreement, contract or transaction has sufficient volume to 
impact other regulated contracts or to become an independent 
price reference or benchmark that is regularly utilized by the 
public.
      The core principles that apply to SPDCs are derived from 
selected DCM core principles and designation criteria set forth 
in CEA section 5, and the Managers intend that they will be 
construed in like manner as the DCM core principles.
      The Managers do not intend that the Commission conduct an 
exhaustive annual examination of every contract traded on an 
electronic trading facility pursuant to the section 2(h)(3) 
exemption, but instead to concentrate on those contracts that 
are most likely to meet the criteria for performing a 
significant price discovery function.
      The Managers further intend that the Commission should 
conduct such examinations in the course of its normal 
monitoring of ECM contracts and surveillance of designated 
contract market and derivatives transaction execution facility 
contracts when considering the potential for arbitrage or price 
linkage as the basis for an SPDC determination. (Section 13201)

(10) Large trader reporting

      The Senate amendment amends CEA section 4g to require 
reporting and recordkeeping of every person registered with the 
Commission regarding the transactions and positions of such 
person in any SPDC traded or executed on an electronic trading 
facility. It also amends CEA section 4i to make any person 
buying or selling SPDCs on an electronic trading facility 
subject to reporting requirements set by the Commission and to 
require such person to report and keep records on transactions 
or positions equal to or in excess of any reporting threshold 
the Commission has set. (Section 13202)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate Provision 
with amendment. The amendment provides that large trader 
reporting requirements imposed by this Act for SPDCs shall 
include contracts, transactions, or agreements that are treated 
by a derivatives clearing organization as fungible with SPDCs. 
(Section 13202)

(11) Conforming amendments

      The Senate amendment provides various amendments to 
conform other areas of current law based on changes made in 
sections 13201 and 13202. The amendment provides that an 
electronic trading facility shall be considered as a registered 
entity for the purposes of the CEA and provides that the 
Commission shall have exclusive jurisdiction over significant 
price discovery contracts. (Section 13203)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendment.
      The amendment included by the managers clarifies that the 
CEA's grant of exclusive jurisdiction to the Commission in CEA 
section 2(a)(1)(A) applies to significant price discovery 
contracts traded on ECMs. The amendment further clarifies that 
the provisions of the CEA made applicable to SPDCs traded on 
ECMs by this Act are not precluded by CEA section 2(h)(3).
      The Managers note that in creating the new authorities 
contained in this Act, it is the intent of the Managers to 
enhance the Commission's authority over (2)(h)(3) markets under 
the CEA. It is the Managers' intent that this provision not 
affect FERC authority over the activities of regional 
transmission organizations or independent system operators 
because such activities are not conducted in reliance on 
section 2(h)(3). (Section 13203)

(12) Effective date

      The Senate amendment: (1) provides that this subtitle 
shall become effective on the date of enactment of this Act, 
(2) requires the Commission to issue a proposed rule regarding 
the significant price discovery standards in section 13201(b) 
within 180 days of the date of enactment of this Act and a 
final rule within 270 days, and (3) requires the Commission to 
complete a review of the agreements, contracts and transactions 
of any electronic trading facility operating on the effective 
date of the final rule described in 13204(b) within 180 days 
after that effective date to determine whether such agreement, 
contract or transaction performs a significant price discovery 
function. (Section 13204)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendment.
      The amendment directs the Commission to conduct a 
rulemaking to implement a process for determining whether ECM 
contracts are SPDCs.
      The managers note that although status as a registered 
entity would attach to an ECM upon the Commission's 
determination that a particular ECM contract serves a 
significant price discovery function, the managers intend that 
the Commission rulemaking include a grace period after a 
significant price discovery determination to enable the ECM to 
come into compliance with its newly-applicable core principles. 
Such a grace period, which need only be made available to ECMs 
that have been determined to have a SPDC for the first time, 
should ensure that such ECMs have sufficient time to implement 
the necessary regulatory requirements and operations. (Section 
13204)

                        TITLE XIV--MISCELLANEOUS

      * For items 1 through 52 of the House bill and Senate 
amendment, see title XII--Crop Insurance.
      * For items 53 through 79 and item 120 of the House bill 
and Senate amendment, see title XI--Livestock.

(1) Prohibition on use of live animals for marketing of medical 
        devices; fines under the Animal Welfare Act

      The House bill amends the Animal Welfare Act to prohibit 
using a live animal to demonstrate a medical device or product 
for marketing purposes or to train a sales representative to 
use such product. The prohibition does not apply to the 
training of medical personnel for a purpose other than 
marketing. The House language amends the Animal Welfare Act to 
set a cap for violations at not more than $10,000 for each 
violation. It specifies that each violation, each day that a 
violation continues, and each animal that is subject to each 
violation, shall be a separate offense. The House language also 
amends the Animal Welfare Act to require that the report to 
Congress also identify all research facilities, intermediate 
handlers, carriers, and exhibitors registered under section 6 
of the Act. It strikes the provision requiring information and 
recommendations related to the Horse Protection Act. (Section 
11316)
      The Senate amendment contains no comparable provision.
      The Conference substitute provides that fines under the 
Animal Welfare Act are increased from $2500 to $10,000. 
(Section 14214)

(2) Protection of pets

      The House bill amends the Animal Welfare Act by replacing 
section 7. The new section provides a definition for person to 
be used only in this section. Person includes any individual, 
partnership, firm, joint stock company, corporation, 
association, trust, estate, pound, shelter, or other legal 
entity. This section prohibits research facilities or Federal 
research facilities from using a cat or dog for educational or 
research purposes if it was obtained from a permissible source. 
Also, no person may donate, sell, or offer a dog or cat to any 
research facility or Federal research facility unless it came 
from a permissible source. A permissible source is defined to 
mean a dealer licensed under AWA; a publicly owned pound 
registered with the Secretary and in compliance with the 
protection of pet standards outlines in the Act and has 
obtained the cat or dog from a legal owner, other than a pound 
or shelter; or a person that is donating the dog or cat that 
bred and raised it and owned it for not less than one year 
preceding donation; a research facility or Federal research 
facility licensed by the Secretary. In addition to existing 
penalties for violating the Animal Welfare Act this provision 
establishes an additional fine of $1,000 for each violation of 
this section. Nothing in this section requires a pound or 
shelter to donate, sell, or offer a dog or cat to a research 
facility. (Section 11317)
      The Senate amendment is the same as the House bill. It 
adds a provision that would phase out the use of random source 
dogs and cats from class B dealers within five years after 
enactment of this act. (Section 11079)
      The Conference substitute adopts the House provision with 
an amendment that defines Class B dogs and cats and requires 
the Secretary to review any independent reviews and 
recommendations by a nationally recognized panel on the use of 
Class B dogs and cats in federal research.
      The Managers are aware of the concerns relating to the 
use of random source animals from Class-B dealers for medical 
research. As part of the Consolidated Appropriations Act, 2008 
(P.L. 110-161), Congress requested an independent review by a 
nationally recognized panel of experts of the use of Class B 
dogs and cats in federally supported research. The National 
Academy of Science is in the process of conducting this review. 
Results from the review are expected to be finalized in the 
spring of 2009. The results of this study will help provide 
Congress information regarding the value of Class B dogs and 
cats in medical research. It is the Managers view upon 
completion of the review the House Committee on Agriculture and 
United States Senate Committee on Agriculture, Nutrition and 
Forestry should address whether to continue Class B dealers as 
a legitimate vendor of random source animals for medical 
research.
      The Managers are also aware of concerns relating to how 
Class B dealers acquire random source animals. Under 9 CFR 
2.132(d) dealers are prohibited from obtaining a dog or cat 
from any person who is not licensed (other than a pound or 
shelter), unless they obtain a certification (source record) 
that the animals were born and raised on that person's premises 
and, if the animals are for research purposes, that the person 
has sold fewer than 25 dogs and/or cats that year. The Animal 
and Plant Health Inspection Service (APHIS) conducts four 
unannounced inspections of each Class B dealer on an annual 
basis. During these inspections, APHIS conducts random trace 
back of source records. In addition, every 2 to 3 years APHIS 
does 100 percent trace back of every source record of all Class 
B dealers. APHIS data indicates a 95 percent trace back of 
these records. Understanding concerns raised about the validity 
of these source records, the Managers intend to ask the 
Government Accountability Office to review APHIS regulations to 
ensure they are sufficiently assuring the source of random 
source animals.
      The Managers are also concerned with the humane handling 
and treatment of all animals. In section 14114, fines for 
violating the Animal Welfare Act are increased for the first 
time since 1985. (Section 14216)

(3) Sense of the Senate on the U.S. Department of Agriculture's 
        wildlife services competing against private industry for 
        nuisance bird control work

      The Senate amendment contains a Sense of the Senate that 
USDA Wildlife Services should not compete nor condone 
competition with the private sector for business regarding the 
management of nuisance wildlife problems in urban areas where 
private sector services are available. Wildlife Services should 
inform cooperators of the availability of and their right to 
acquire services from private service providers prior to 
entering into any cooperative agreement for wildlife damage 
management activities. The Secretary of Agriculture should 
ensure that Wildlife Services does not aggressively compete 
with private pest management industry for European starling, 
house sparrow, and pigeon control work in urban areas where 
private sector services are available. The Secretary of 
Agriculture should rely on the scientific and widely excepted 
definitions to define the term urban rodent in order to clarify 
the express restrictions in law on Wildlife Services 
activities. Finally, the Secretary should direct Wildlife 
Service to work with private industry, through a Memorandum of 
Understanding, to delineate common areas of cooperation so that 
issue of competition are addresses, taking into account the 
interests of the wildlife resources and the need to manage 
damage caused by that resource. (Section 11085)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers expect the Secretary to continue and 
strictly enforce the current Wildlife Service Directive 3.101, 
``Interfacing with Business and Establishing Cooperatives 
Programs,'' dated May 25, 2005. The Managers intend that the 
Secretary, consistent with this Directive, shall inform service 
requesters of the availability of other private service 
providers and their right to choose. The Managers strongly 
encourage the Secretary to ensure that Wildlife Services does 
not compete with professional pest management companies which 
manage nuisance birds such as European starlings, house 
sparrows, and pigeons in urban areas. The Managers strongly 
encourage the Secretary to enter into a Memorandum of 
Understanding with industry to address issues of competition 
for service, taking into account the ability of private 
entities to respond to requests for wildlife damage management 
and the common goal of both the Department and the private 
sector to meet the increasing need of managing damages caused 
by pests in urban areas.

(4) Prohibitions on dog fighting ventures

      The Senate amendment amends section 26 of the Animal 
Welfare Act to strengthen penalties for dog fighting. Section 
26(a)(1) of the AWA is amended to make it unlawful to knowingly 
sponsor or exhibit an animal in a dog fighting venture as 
defined later in this section. Section 26(b) of the AWA is 
amended to add it is illegal to knowingly sell, buy, posses, 
train, transport, deliver or receive any dog, other animal or 
offspring of the dog or other animal for the purpose of having 
them participate in a dog fighting venture. Section 26(f) of 
the AWA is amended to allow costs incurred for the care of 
animals seized or forfeited under this section to be 
recoverable from the owner. Subsection (g) is amended to 
include a definition for a dog fighting venture to mean any 
event that involves a fight between at least two animals, one 
being a dog, which is conducted for purposes of sport, 
wagering, or entertainment. An exclusion for hunting is also 
added. Section 49 of title 18, United States Code, is also 
amended to increase the penalty for violations of section 26 of 
the Animal Welfare Act to not more than five years 
imprisonment. (Section 11076)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a minor amendment. (Section 14207)

(5) Domestic pet turtle market access; review, report and action on the 
        sale of baby turtles

      The Senate amendment requires the Secretary of Health and 
Human Services, acting though the Commissioner of Food and 
Drugs, to determine the prevalence of salmonella in each 
species of reptile and amphibian sold legally in the United 
States to determine whether or not the prevalence of salmonella 
in these animals is not more than 10 percent less than the 
percentage of salmonella in pet turtles. If the prevalence is 
not more than 10 percent less than the percentage of salmonella 
in pet turtles the Secretary of Agriculture shall conduct a 
study of how pet turtles can be sold safely as pets in the 
United States. In conducting the study the Secretary shall 
consult with all relevant stakeholders. (Sections 11101, 11102, 
and 11103)
      If the prevalence of salmonella in other amphibians and 
reptiles is greater than that of salmonella in pet turtles the 
Secretary shall prohibit the sale of those amphibians and 
reptiles.
      The House bill contains no comparable provision.
      The Conference substitute strikes this provision.

(6) Importation of live dogs

      The Senate amendment adds a new section to the Animal 
Welfare Act (7 U.S.C. 2147) to restrict the importation of 
certain dogs for resale. This provision defines ``importer'' as 
any person who, for purposes of resale, transports into the 
United States puppies from a foreign country. Resale is defined 
to mean any transfer of ownership or control of an imported dog 
of less than 6 months of age to another person, for more than 
de minimis consideration. No dog shall be imported into the 
United States for purposes of resale unless the Secretary of 
Agriculture determines the dog is in good health; has received 
all necessary vaccinations; and is at least 6 months of age, if 
imported for resale. Exemptions are provided for dogs imported 
for research purposes or veterinary treatment. The Secretaries 
of Agriculture, Health and Human Services, Commerce, and 
Homeland Security will promulgate regulations necessary to 
implement this section. Failure to comply by an importer will 
result in the importer being subject to fines under section 19 
of the Animal Welfare Act and providing for the care, 
forfeiture, and adoption of each applicable dog at the expense 
of the importer. (Section 3205)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendment. The Managers recognizes that Hawaii may have a 
unique situation arising out of Hawaii's current quarantine 
regulations. In the case of Hawaii, so long as the state 
continues to quarantine dogs imported from the mainland United 
States, the Secretary may permit an exception to allow the 
import of dogs under the age of 6 months from jurisdictions 
currently exempt from the Hawaii quarantine (i.e. Guam, 
Australia, New Zealand, and the British Isles) for resale in 
Hawaii, provided all other regulations of the Secretary, and of 
the State of Hawaii, are complied with. Any dogs imported into 
Hawaii pursuant to this exception shall not be shipped to any 
other jurisdiction within the United States for resale at less 
than 6 months of age.
      The Managers do not intend for the exception for 
veterinary treatment to be used for routine veterinary care. 
This exemption is in place for emergency situations where the 
dogs in question are in need of immediate veterinary treatment 
and may not have the required vaccinations. Congress expects 
that such dogs would also be properly quarantined until the 
dogs are determined to be in good health as defined by 
regulations promulgated by the Secretary. Further, it is not 
the intent of Managers to prevent organizations from importing 
dogs under the age of 6 months in the event of an emergency, 
and transferring ownership or control of such dogs under the 
age of 6 months, provided such organization does not receive 
more than de minimus consideration for such adopted or 
transferred dogs. (Section 14210)

(7) Outreach and technical assistance for socially disadvantaged 
        farmers and ranchers and limited resource farmers and ranchers

      The House bill amends section 2501 of the Food, 
Agriculture, Conservation, and Trade Act (FACT Act) to specify 
that the 2501 Technical and Outreach Assistance Program is to 
be used to enhance the coordination, outreach, technical 
assistance, and education efforts authorized under USDA 
programs.
      The House bill authorizes agencies within USDA to make 
grants and enter into contracts and cooperative agreements with 
a community-based organization in order to utilize the 
community-based organization to provide outreach and technical 
assistance. It requires the Secretary to submit to the House 
and Senate Agriculture Committees an annual report that 
includes the following: the recipients of funds made available 
under the 2501 Outreach and Technical Assistance Program; the 
activities undertaken and services provided; the number of 
producers served and the outcomes of such service; and the 
problems and barriers identified by entities in trying to 
increase participation by socially disadvantaged farmers and 
ranchers.
      Section 11201(1)(C) provides mandatory funding in the 
amount of $15 million for each of the fiscal years 2008 through 
2012. No more than 5 percent of the funds made available in 
each fiscal year are to be used for administrative expenses 
related to administering the 2501 Program.
      Eligible entities are defined as any community-based 
organizations, networks, or coalition of community based 
organizations that have demonstrated experience in providing 
agricultural education or other agriculturally related services 
to and on behalf of socially disadvantaged farmers and ranchers 
and have provided to the Secretary documentary evidence of work 
with socially disadvantaged farmers and ranchers. (Section 
11201)
      The Senate amendment amends section 2501 of the Food, 
Agriculture, Conservation, and Trade Act (FACT Act) to specify 
that the 2501 Technical and Outreach Assistance Program is to 
be used to enhance the coordination, outreach, technical 
assistance, and education efforts authorized under USDA 
programs. The 2501 Program is to assist the Secretary in 
reaching socially disadvantaged farmers and ranchers and 
prospective socially disadvantaged farmers and ranchers, and 
improving the participation of those farmers and ranchers in 
USDA programs. The Secretary is required to submit and make 
publicly available a report that describes: (A) the 
accomplishments of the 2501 program, and (B) any gaps or 
problems in program service delivery, as reported by program 
grantees. Appropriations of up to $50,000,000 annually are 
authorized for fiscal years 2008-2012. No more than 5 percent 
of the funds made available in each fiscal year are to be used 
for administrative expenses related to administering The 2501 
Outreach and Technical Assistance Program. The provision 
changes eligibility guidelines for potential grantees by 
extending from 2 to 3 years the period of time for which 
documentary evidence of work with socially disadvantaged 
farmers must be provided. The Secretary is authorized to 
provide for the renewal of a grant, contract, or other 
agreement under this section to an entity that: (A) has 
previously received 2501 funding; (B) has demonstrated an 
ability to reach socially disadvantaged farmers and increase 
the participation of such farmers in USDA programs; and (C) 
demonstrates to the satisfaction of the Secretary that an 
entity will continue to fulfill the purposes of the 2501 
Program. This section requires the Secretary to promulgate 
regulations establishing criteria for grants under this 
program. This section requires the Secretary, following 
consultation with entities eligible for the 2501 Program to co-
locate the 2501 Program and the Office of Outreach within 18 
months of enactment. (Section 11052)
      The Conference substitute adopts the Senate amendment 
with modifications to delete language from the Senate amendment 
pertaining to renewal of contracts, review of proposals, and 
coordination with the Office of Outreach of the Department of 
Agriculture, which is now addressed in Section 14013, Office of 
Advocacy and Outreach. The Conference substitute also provides 
$75 million in mandatory funding for the 2501 Program. (Section 
14004)

(8) Improved program delivery by Department of Agriculture on Indian 
        reservations

      The House bill amends section 2501(g) of the FACT Act by 
authorizing the Secretary to require the Agricultural 
Stabilization and Conservation Service, the Soil Conservation 
Service, the Farmers Home Administration offices, and any such 
offices and functions that the Secretary chooses to include, 
establish a consolidated suboffice at tribal headquarters on 
Indian reservations, where there is a demonstrated need. 
(Section 11202)
      The Senate amendment is the same as the House bill, with 
technical differences. (Section 11054)
      The Conference substitute adopts the House provision with 
a technical change to correct the agency names in the statute. 
(Section 14001)

(9) Transparency and accountability for socially disadvantaged farmers 
        and ranchers

      The House bill amends section 2501A of the FACT Act by 
requiring the Secretary to annually compile, for each county 
and State in the United States, program application and 
participation rate data regarding socially disadvantaged 
farmers or ranchers by computing for each USDA program that 
serves agricultural producers and landowners: (A) raw numbers 
of applicants and participants by race, ethnicity, and gender; 
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.
      The Secretary, using the technologies and systems of the 
National Agricultural Statistics Service, is authorized to 
compile and present application and participation rate data 
regarding socially disadvantaged farmers or ranchers in a 
manner that includes the raw numbers and participation rates 
for: the entire United States; each State; and, each county in 
each State. The Secretary is required to make the data (i.e., 
report) available to the public, via a website and otherwise in 
electronic and paper form. (Section 11203)
      The Senate amendment amends section 2501A of the FACT Act 
by requiring the Secretary to annually compile, for each county 
and State in the United States, program application and 
participation rate data regarding socially disadvantaged 
farmers and ranchers by computing for each USDA program that 
serves agricultural producers and landowners: (A) raw numbers 
of applicants and participants by race, ethnicity, and gender; 
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.
      The Secretary, using the technologies and systems of the 
National Agricultural Statistics Service, is authorized to 
compile and present application and participation rate data 
regarding socially disadvantaged farmers or ranchers in a 
manner that includes the raw numbers and participation rates 
for: the entire United States; each State; and, each county in 
each State. (Section 11056)
      The Conference substitute adopts the House provision. 
(Section 14006)

(10) Beginning farmer and rancher development program

      The House bill provides that mandatory funding in the 
amount of $15 million is to be provided for each of the fiscal 
years 2008 through 2012 to carry out the program. (Section 
11204)
      The Senate amendment incorporates energy conservation 
efficiency and transition to organic farming into the programs 
and services eligible to receive competitive grants under this 
program. It limits grants under this program to $250,000. The 
provision adds a set of evaluation criteria the Secretary shall 
consider when awarding grants under this program. The Secretary 
is also required to ensure, to the maximum extent practicable, 
geographic diversity of grantees under this program. 
Organizations that work with refugee or immigrant beginning 
farmers or ranchers are added to be eligible to receive grants. 
This provision authorizes $30,000,000 in annual appropriations 
for the BFRDP. (Section 7309)
      The Conference substitute adopts the Senate provision 
with an amendment to move the program into the research title 
of this Act, to delete the incorporation of energy conservation 
efficiency and transition to organic farming into the program, 
to delete the clarification on organizations that work with 
refugee or immigrant beginning farmers, and to add $15,000,000 
in mandatory funding for each fiscal year from 2009 and $20 
million for each of fiscal years 2010 through 2012.
      The Managers encourage the Secretary to include asset- 
based farming opportunity strategies in the grant categories of 
the Beginning Farmer and Rancher Development Program (BFRDP) in 
order to aid with the overall purposes of the program, which 
include financial management training, the acquisition and 
management of agricultural credit, and innovative farm and 
ranch transfer strategies.
      The Managers expect the panels that will review the grant 
applications through the BFRDP to include a broad range of 
individuals with appropriate expertise and experience in 
delivering beginning farmer and rancher programs.
      The Managers intend for the BFRDP to include immigrant 
beginning farmers and ranchers in the funding set-aside for 
socially disadvantaged and limited resource farmers and 
ranchers.
      The Managers are aware of and fully support the goals of 
the National Young Farmers Education Association National Forum 
on Identifying Issues and Enhancing Success for America's Young 
and Beginning Agricultural Producers. To the extent 
practicable, the Managers encourage the Secretary to provide 
support to this important forum. (Section 7410)

(11) Provision of receipt for service or denial of service

      The House bill authorizes the Secretary to provide a 
receipt for service to a producer or landowner, or prospective 
producer or landowner, in any case where the producer or 
landowner, or prospective producer or landowner, requests any 
benefit or service offered by USDA to agricultural producers or 
landowners. The receipt for service is to be issued on the date 
the request is made and must contain the date, place, and 
subject of the request, as well as the action taken, not taken, 
or recommendations made in response to the request. (Section 
11205)
      The Senate amendment differs from the House version in 
that it: (1) specifies that Farm Service Agency and Natural 
Resources Conservation Service are the agencies subject to this 
provision, and (2) requires the receipt upon request. Section 
11057 amends Section 2501A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C.2279-1)(as amended 
by section 11056). This section requires the Secretary of 
Agriculture to issue to farmers and ranchers seeking a benefit 
or service offered by the Farm Service Agency or the Natural 
Resources Conservation Services of USDA, a receipt upon request 
that contains the date, place, and subject of the request as 
well as the action taken, not taken, or recommended to the 
farmer or rancher. (Section 11057)
      The Conference substitute adopts the Senate amendment but 
modifies the language to include ``current or prospective 
producer or landowner'' and adds Rural Development to the 
agencies that are subject to the provision. (Section 14003)

(12) Tracking of socially disadvantaged farmers or ranchers and limited 
        resource farmers or ranchers in Census of Agriculture and 
        certain studies

      The House bill requires the Secretary to ensure, to the 
maximum extent possible, that the Census of Agriculture 
accurately documents the number, location, and economic 
contributions of socially disadvantaged and limited resource 
farmers or ranchers. (Section 11206)
      The Senate amendment amends section 2501 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279). The Secretary is required to ensure, to the maximum 
extent possible, that the Census of Agriculture accurately 
documents the number, location, and economic contributions of 
socially disadvantaged and limited resource farmers or 
ranchers. (Section 11055)
      The Conference substitute adopts the Senate amendment. 
(Section 14005)

(13) Farmworker coordinator

      The House bill authorizes the Secretary to establish the 
position of Farmworker Coordinator, to be located in USDA's 
Office of Outreach. The Farmworker Coordinator is to have a 
number of duties, including: serving as a liaison to community-
based, non-profit organizations that represent low-income 
migrant and seasonal farmworkers; coordinating with USDA and 
State and local governments to assure that farmworker needs are 
met during declared disasters and emergencies; and assuring 
that farmworkers have access to services and support that will 
assist them in entering agriculture as producers. An 
appropriation of such sums as necessary is authorized for 
fiscal years 2008 through 2012. (Section 11207)
      The Senate amendment is the same as the House bill, with 
technical differences. The Senate provision amends section 
296(b) of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 7014(b)). (Section 11059)
      The Conference substitute adopts the Senate provision 
with an amendment to specify that the Farmworker Coordinator 
shall have responsibility for assisting farmworkers in becoming 
agricultural producers or landowners, and to make other 
technical changes. The Farmworker Coordinator has been 
relocated into the Office of Advocacy and Outreach as described 
in (93) of this document. (Section 14013)

(14) Office of Outreach relocation

      The House bill authorizes the Secretary to develop a 
proposal to relocate USDA's Office of Outreach. The Office of 
Outreach is to be responsible for the 2501 Outreach and 
Technical Assistance Program and the Beginning Farmer and 
Rancher Development Program. (Section 11208)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House amendment with 
modification. The substitute establishes a new Office of 
Advocacy and Outreach, the purpose of which is to improve the 
viability and profitability of small farms and ranches, 
beginning farmers or ranchers, and socially disadvantaged 
farmers or ranchers, as well as to improve access to programs 
of the Department of Agriculture.
      The Office of Advocacy and Outreach is to be overseen by 
a director appointed by the Secretary from among the 
competitive service and to have two distinct groups, a Socially 
Disadvantaged Farmer Group and a Small Farms and Beginning 
Farmers and Ranchers Group. The Socially Disadvantaged Farmers 
Group is to carry out the 2501 Program, oversee the Minority 
Farmer Advisory Committee, oversee the Farmworker Coordinator, 
and carry out the functions of the Office of Outreach and 
Diversity previously carried out by the Office of the Assistant 
Secretary for Civil Rights. The Small Farms and Beginning 
Farmers and Ranchers Group is to oversee the Office of Small 
Farms Coordination, consult with the National Institute for 
Food and Agriculture on the administration of the Beginning 
Farmer and Rancher Development Program, coordinate with the 
Advisory Committee for Beginning Farmers and Ranchers, and 
carry out other such duties as determined appropriate by the 
Secretary of Agriculture. (Section 14013)

(15) Minority farmer advisory committee

      The House bill authorizes the Secretary to establish a 
minority advisory committee, to be overseen by USDA's Office of 
Outreach. The committee is to have a number of duties, 
including: reviewing civil rights cases to ensure that they are 
processed in a timely manner; reporting quarterly to the 
Secretary on civil rights enforcement and outreach; 
recommending to the Secretary corrective actions to prevent 
civil rights violations; and reviewing the operations of the 
2501 Outreach and Technical Assistance Program.
      The Committee is to be composed of the following:
            (A) 3 members appointed by the Secretary;
            (B) 2 members appointed by the chairman of the 
        Committee on Agriculture, Nutrition, and Forestry, of 
        the Senate--in consultation with the ranking member;
            (C) 2 members appointed by the chairman of the 
        House Agriculture Committee--in consultation with the 
        Ranking member;
            (D) a civil rights professional;
            (E) a socially disadvantaged farmer or rancher; and
            (F) such other persons or professionals that the 
        Secretary determines to be appropriate. (Section 11209)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
amendment. The substitute specifies that the duty of the 
committee is to provide advice to the Secretary on 
implementation of the 2501 Program, methods of maximizing the 
participation of minority farmers and ranchers in Department of 
Agriculture programs, and civil rights activities at the 
Department of Agriculture. The substitute deletes components of 
the House bill pertaining to review of civil rights cases, the 
processing of civil rights cases, quarterly reporting to the 
Secretary on civil rights enforcement, annual reporting to the 
Secretary on civil rights compliance, recommendations to the 
Secretary regarding corrective actions to prevent civil rights 
violations, review of operations of the 2501 Program, and 
review of outreach efforts in the agencies and programs of the 
Department.
      The substitute also revises the membership of the 
committee, specifying not less than four socially disadvantaged 
farmers and ranchers, not less than two representatives of 
nonprofit organizations, not less than two civil rights 
professionals, not less than two representatives of higher 
education, and other such persons as deemed appropriate by the 
Secretary. The substitute also provides the Secretary of 
Agriculture with authority to appoint employees of the 
Department of Agriculture as ex-officio members. (Section 
14008)

(16) Coordinator for chronically underserved rural areas

      The House bill authorizes the Secretary to establish a 
Coordinator for Chronically Underserved Rural Areas, to be 
located in USDA's Office of Outreach. The mission of the 
Coordinator is to direct USDA's resources to high need, high 
poverty rural areas. The Coordinator's duties are to include 
consulting with other USDA offices in directing technical 
assistance, strategic planning, at the State and local level, 
for developing rural economic development that leverages the 
resources of State and local governments and non-profit and 
community development organizations. An appropriation of such 
sums as necessary is authorized for each of the fiscal years 
2008 through 2012. (Section 11210)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to locate the Coordinator in Rural Development 
instead of the Office of Outreach. (Section 14118)

(17) Foreclosure

      The Senate amendment states that currently there is a 
USDA guidance that prohibits loan foreclosures when there is a 
pending claim of racial discrimination against the Department. 
This provision amends section 307 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1927) to put into law what is 
already in place in a guidance at USDA.
      Subsection (a) Moratorium. This section mandates a 
moratorium on all loan acceleration and foreclosure proceedings 
where there is a pending claim of discrimination against the 
Department related to a loan acceleration or foreclosure. This 
section also waives any interest and offsets that might accrue 
on all loans under this title for which loan and foreclosure 
proceedings have been instituted for the period of the 
moratorium. If a farmer or rancher does not prevail on his 
claim of discrimination, then the farmer or rancher will be 
liable for any interest and offsets that accrued during the 
period that the loan was in abeyance. The moratorium will 
terminate on either the date the Secretary resolves the 
discrimination claim or the court renders a final decision on 
the claim, whichever is earlier.
      Subsection (b) Report. This section requires the 
Inspector General of USDA to determine whether loan foreclosure 
proceedings of socially disadvantaged farmers have been 
implemented according to applicable laws and regulations. The 
Inspector General shall submit a report of its determination to 
the Senate and House Committees on Agriculture not later than a 
year after this legislation's enactment. (Section 11051)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment 
with an amendment that the farmer or rancher is required to 
have a program discrimination claim and that the Department 
makes a procedural determination to accept the claim as a valid 
one. The determination to accept the claim by the Department is 
intended to be procedural and not a statement as to the merits 
of the claim. The Conference substitute amends Section 331A of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
1981a) and specifies that the provision applies to farmer 
program loans made under subtitle A, B, or C. (Section 14002)

(18) Additional contracting authority

      The Senate amendment amends section 2501(a)(3) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 2279(a)(3)). This section clarifies that the agencies 
and programs of the Department of Agriculture are authorized to 
enter into contracts and cooperative agreements with community-
based organizations to provide service to socially-
disadvantaged farmers and ranchers, clarifies that the 
Secretary is not required to require matching funds for such 
agreements, and allows federal agencies to contribute to grants 
or cooperative agreements made under the 2501 Program as the 
agency determines that contributing funds for such purpose will 
further the authorized programs of the contributing agency. 
(Section 11053)
      The House bill contains a similar provision in section 
11201.
      The Conference substitute deletes both House and Senate 
provisions.

(19) Emergency grants to assist low-income migrant and seasonal 
        farmworkers

      The Senate amendment amends Section 2281 of the Food, 
Agriculture, Conservation and Trade Act of 1990 (42 U.S.C. 
5177a). This section requires the Secretary to maintain a 
disaster fund of $2,000,000, and authorizes discretionary 
funding to maintain it. This section further requires that 
public or private entities eligible to receive funding under 
this section must have at least five years demonstrated 
experience in representing and providing emergency services to 
low-income migrant or seasonal farmworkers. Types of allowable 
assistance are specified, in addition to such other priorities 
that the Secretary determines to be appropriate. (Section 
11061)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate amendment.

(20) National appeals division

      The Senate amendment amends section 280 of the Department 
of Agriculture Reorganization Act of 1994 (7 U.S.C. 7000). This 
section establishes a reporting requirement that states the 
head of each agency shall report to the House and Senate 
Agriculture Committees, and post on the Department's website 
information that includes a description of all cases returned 
to the agency by the National Appeals Division, the status of 
implementation of each final determination and if the final 
determination has not been implemented then the reason and the 
projected date of implementation. The reporting requirement to 
Congress should be every 180 days and the website should be 
updated not less than monthly. (Section 11058)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 14009)

(21) Oversight and compliance

      The Senate amendment requires the Secretary of 
Agriculture to use the reports required under section 2501 of 
the FACT Act in the conduct of program oversight regarding the 
participation of socially disadvantaged farmers in USDA 
programs as well as in the evaluation of civil rights 
performance. (Section 11064)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 14007)

(22) Report of civil rights complaints, resolutions, and actions

      The Senate amendment requires the Secretary of 
Agriculture to issue an annual report on program and employment 
civil rights complaints, including the number of complaints 
filed, the length of time required to process complaints, the 
number of complaints resolved with a finding of discrimination, 
and the personnel actions taken by the agency following 
resolution of civil rights complaints. (Section 11065)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment. 
The Managers intend that if the Secretary, in compiling 
determines the aggregate data does not accurately reflect the 
scope of complaints, then the Secretary may note in the report 
that multiple complaints came from a single individual, in 
order to provide clear picture of the scope of the complaints. 
(Section 14010)

(23) Grants to improve supply, stability, safety, and training of 
        agricultural labor force

      The Senate amendment directs the Secretary to make grants 
to nonprofit organizations to assist agricultural employers and 
farmworkers with services that help improve the quality of the 
agricultural labor force through job training, short-term 
housing, workplace literacy and ESL training, and health and 
safety instruction, among other purposes. Discretionary funding 
is authorized to carry out this section. (Section 11066)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments to clarify the eligible services that may be 
provided with grant funds through the program; to specify that 
assistance may be provided to farmworkers who are citizens or 
otherwise legally present in the United States; and to 
establish a 15 percent limit on administrative expenses for the 
program. (Section 14204)

(24) Office of small farms and beginning farmers and ranchers

      The Senate amendment establishes an office at USDA to be 
known as the Office of Small Farms and Beginning Farmers and 
Ranchers. Section (b) outlines the purposes of the office 
including enduring coordination across all agencies; ensure 
small, beginning, and socially disadvantaged farmers and 
ranchers access to all USDA programs; unsure the number and 
economic contributions of small, limited resource, beginning 
and socially disadvantaged farmers and ranchers are accurately 
reflected in the Census of Agriculture; and to assess and 
enhance the effectiveness of outreach programs the department. 
Subsection (c) establishes the office should be headed by a 
director. Subsection (d) outlines the duties of the office 
including to establish cross cutting and strategic departmental 
goals and objectives for small, beginning, and socially 
disadvantaged farmer and rancher programs. Subsection (e) 
requires the office to maintain a website to share information 
with interested producers and to collect and respond to 
comments from small and beginning farmers and ranchers. 
Subsection (f) requires the Secretary to provide the office 
human and capital resources sufficient to allow the office to 
carry out its duties using funds made available to the 
Secretary through appropriations acts. Subsection (g) requires 
and annual report to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry in the Senate. (Section 11088)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that Section 14013 subsumes this office into 
the Office of Advocacy and Outreach. (Section 14013)

(25) Designation of separate cotton-producing States under Cotton 
        Research and Promotion Act

      The House bill amends the definition of ``cotton-
producing State'' in the Cotton Research and Promotion Act to 
include Kansas, Virginia, and Florida as each being considered 
separate cotton producing States under the Act, beginning with 
the 2008 crop of cotton. (Section 11301)
      The Senate amendment designates Kansas, Virginia, and 
Florida as each being considered separate cotton-producing 
States effective beginning with the 2008 crop of cotton for 
purposes of the Cotton Research and Promotion Act. (Section 
1713)
      The Conference substitute adopts the Senate provision. 
(Section 14202)

(26) Cotton classification services

      The House bill extends the authority of the Secretary to 
make cotton classification services available to producers of 
cotton and to collect classification fees from participating 
producers through FY 2012. The provision authorizes the 
Secretary to enter into long-term lease agreements that exceed 
five years or take title to property in order to obtain offices 
used for the classification of cotton. (Section 11302)
      The Senate amendment authorizes cotton classing services 
without any fiscal year restrictions. Similar to the House 
bill, the Senate amendment authorizes the Secretary to enter 
into long-term lease agreements that exceed five years or take 
title to property in order to obtain offices used for the 
classification of cotton. The provision requires the Secretary 
to consult with the cotton industry in establishing the fees. 
It ensures that the Federal Advisory Committee Act requirements 
do not apply to consultations with the US Cotton industry. It 
also provides greater discretion to the Secretary in 
establishing the fees. (Section 1712)
      The Conference substitute adopts the Senate provision 
with an amendment to ensure that the Secretary announces the 
classification fee and any applicable surcharge for 
classification services not later than June 1 of the year in 
which the fee applies.
      The Managers expect the cotton classification fee to be 
established in the same manner as was applied during the 1992 
through 2007 fiscal years. The classification fee should 
continue to be a basic, uniform per bale fee as determined 
necessary to maintain cost-effective cotton classification 
service. In consulting with the cotton industry, the Secretary 
should demonstrate the level of fees necessary to maintain 
effective cotton classification services and provide the 
Department of Agriculture with an adequate operating reserve, 
while also working to limit adjustments in the year-to-year 
fee. (Section 14201).

(27) Availability of excess and surplus computers in rural areas

      The House bill provides that the Secretary may make 
surplus USDA computers or technical equipment available to any 
city or town in a rural area. (Section 11303)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to ensure that the activities authorized under 
this section are in addition to, and would not replace, 
activities conducted under other existing authorities of the 
Secretary with regard to property disposal.
      The Managers expect the Secretary to use this authority 
to continue to make available excess or surplus computers to 
city or towns located in rural areas through organizations that 
are able to refurbish such equipment and supply it to rural 
schools, libraries, and city halls in need.
      The intent of the conferees is that local governments 
include independent school districts. (Section 14220)

(28) Permanent debarment from participation in Department of 
        Agriculture programs for fraud

      The House bill authorizes the Secretary to permanently 
debar an individual or entity convicted of knowingly defrauding 
the United States in connection with any program administered 
by the Department of Agriculture from any subsequent 
participation in such programs. (Section 11304)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment. The amendment provides the Secretary the 
authority to limit the debarment to not less than ten years. 
The amendment further provides that debarment shall not have 
any effect on the receipt of domestic food assistance. (Section 
14211)

(29) No discrimination against use of registered pesticide products or 
        classes of pesticide products

      The House bill prohibits the Secretary from 
discriminating against the use of specified registered 
pesticide products or classes of pesticide products in 
establishing priorities and evaluation criteria for approval of 
plants, contracts and agreements under the conservation title 
of this Act. (Section 11305)
      The Senate amendment contains no comparable provision.
      The Conference substitute strikes this provision. 
Insomuch as the underlying House provision was a restatement of 
long-standing policy of the Natural Resources Conservation 
Service (NRCS), the managers recognize that statutory language 
is unnecessary.
      The House provision referred to pesticides registered by 
the Environmental Protection Agency (EPA) in accordance with 
the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) 
and the Food Quality Protection Act (FQPA). A FIFRA 
registration implies that uses of pesticides have been deemed 
by EPA to have met established standards of safety to human 
health and the environment when used in accordance with the 
label.
      Under various conservation programs authorized in Title 
II, the managers have directed the Secretary to establish 
priorities and evaluation criteria to ensure the efficient and 
effective use of resources.
      However, it is not the intent of the managers to 
undermine the regulatory framework for the legal use of 
registered pesticides while implementing various conservation 
programs in this Title.
      Therefore, in establishing priorities and evaluation 
criteria for the approval of plans, contracts and agreements 
under Title II of this Act, it is the expectation of the 
managers that the NRCS shall neither prohibit the use of 
specific registered pesticides or classes of pesticides, nor 
advocate for the use of alternatives to registered pesticides 
or classes of pesticides.
      The managers intend for NRCS to assist farmers wishing to 
adopt new technologies and specific pest management strategies 
that contribute to agricultural production and environmental 
quality. For example, programs that assist farmers in 
developing risk mitigation measures regarding pesticide use are 
entirely consistent with the current regulatory program 
administered by EPA and would not be in conflict with 
Congressional intent.

(30) Prohibition on closure or relocation of county offices for the 
        Farm Service Agency, Rural Development Agency, and Natural 
        Resources Conservation Service

      The House bill prohibits the Secretary from closing or 
relocating a county or field office of the Farm Service Agency, 
Rural Development Agency, or Natural Resources Conservation 
Service for one year following the date of enactment of this 
Act. (Section 11306)
      The Senate amendment defines ``critical access county FSA 
office'' in subsection (a) as an office of the Farm Service 
Agency proposed to be closed during the period beginning on 
November 10, 2005 and ending on December 31, 2007; proposed to 
be closed with the closing delayed until after January 1, 2008; 
or included on a list of critical access county FSA offices. 
FSA offices that are located not more than 20 miles from 
another FSA office or that employ no full-time equivalent 
employees are excepted from the definition of critical access 
county FSA office. Subsection (b) prohibits the Secretary from 
using any funds to pay the salaries or expenses of any USDA 
officer or employee to close any critical access county FSA 
office during the period from the date of enactment through 
September 30, 2012. The Secretary is required to maintain a 
staff of not less than 3 full-time equivalent employees in each 
critical access county FSA office although the staff may be 
located in any other county office of the FSA in that State. 
However, a critical access county FSA office must have at least 
1 full-time equivalent employee.
      Subsection (c) allows the Secretary to close a critical 
access county FSA office only on concurrence by Congress and 
the applicable State Farm Service Agency committee. (Section 
11071)
      The Conference substitute adopts the House provision with 
an amendment.
      The Managers have provided the exception paragraph to 
allow the Secretary to review offices meeting the criteria and 
close those offices if justified; the language in the exception 
paragraph does not require the Secretary to close offices 
meeting the criteria. The Managers expect that the Department 
will communicate with Congressional delegations about proposed 
closures and respond to concerns about such closures. (Section 
14212)

(31) Regulation of exports of plants, plant products, biological 
        control organisms, and noxious weeds

      The House bill amends the Agricultural Risk Protection 
Act of 2000 to require the Secretary to coordinate fruit and 
vegetable market analyses with the private sector and Foreign 
Agricultural Service. Further requires the Secretary to list on 
an Internet website the status of export petitions, an 
explanation of associated sanitary or phytosanitary issues, and 
information on the import requirements of foreign countries for 
fruits and vegetables. (Section 11307)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to strike the original language and insert a 
provision in the Technical Assistance for Specialty Crops 
program requiring the Secretary to submit an annual report on 
sanitary and phytosanitary trade barriers. (Section 3203)

(32) Grants to reduce production of methamphetamines from anhydrous 
        ammonia

      The House bill authorizes the Secretary to make grants to 
eligible entities to enable such entities to obtain and add to 
an anhydrous ammonia fertilizer nurse tank a substance that 
will reduce the amount of methamphetamine that can be produced 
from such tank. It provides that the grant amount be between 
$40 and $60, multiplied by the number of nurse tanks for each 
eligible entity. The provision also authorizes appropriations 
of not more than $15 million for each of fiscal years 2008 
through 2012. (Section 11308)
      The Senate amendment is the same as the House bill, 
except it provides that a grant can be used either for a 
physical lock or a chemical substance. (Section 11062)
      The Conference substitute adopts the Senate amendment. 
(Section 14203)

(33) USDA Graduate School

      The House bill amends the Federal Agriculture Improvement 
and Reform Act of 1996 to prohibit the Department of 
Agriculture from establishing, maintaining, or operating a non-
appropriated fund instrumentality of the United States to 
develop, administer, or provide educational training and 
professional development activities, including educational 
activities for Federal agencies, Federal employees and other 
entities, effective October 1, 2008. (Section 11309)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment. The modification keeps the House language but 
extends the deadline for the General Administrative Board of 
the Graduate School to transition the Graduate School into a 
non-governmental nonappropriated fund instrumentality to 
October 1, 2009. It further authorizes the Secretary to use 
available appropriated funds and other resources to assist in 
the Graduate School's transition. Effective immediately, the 
Graduate School shall be subject to Federal procurement 
procedures in the same manner and subject to the same 
requirements as a commercial entity. (Section 14213)

(34) Prevention and investigation of payment and fraud and error

      The House bill amends the Right to Financial Privacy Act 
of 1978 to allow financial institutions to disclosure an 
individual's financial records to any Government entity that 
certifies, disburses or collects payments, when such disclosure 
is necessary for the proper administration of programs. The 
provision expands the permitted use of the disclosed financial 
information to include the verification of the identity of any 
person in connection with Federal payment or collection of 
funds, or the investigation or recovery of improper Federal 
payments, improperly collected funds, or an improperly 
negotiated Treasury check. (Section 11310)
      The Senate amendment is the same as the House bill 
except:
            (1) The provision does not change paragraph (k)(1) 
        of the existing exception in the Right to Financial 
        Privacy Act of 1978, which allows disclosure of the 
        name and address of any financial institution customer 
        if the disclosure is necessary for the proper 
        administration of section 1441 of Title 26, title II of 
        the Social Security Act, or the Railroad Retirement 
        Act.
            (2) New paragraph (2) allows disclosure of a 
        customer's financial records, rather than just a 
        customer's name and address as permitted under 
        paragraph (1), to reflect the fact that electronic 
        payments are not directed to customers by means of a 
        name and address, in contrast to paper checks.
            (3) Information may be disclosed under the new 
        paragraph (2)(A) not only to the extent that the 
        information is necessary to verify the identity of any 
        person making or receiving a Federal payment, but also 
        to verify the proper routing and delivery of funds.
            (4) New paragraph (3) applies to a request 
        authorized by paragraph (k)(1) or (2). Similar to the 
        House version, the provision does not allow for the 
        disclosure by a financial institution of the customer's 
        financial records in their entirety, but only the 
        information contained in the records that are relevant 
        to the purpose of the request. (Section 11068)
      The Conference substitute adopts the Senate provision. 
(Section 14205)

(35) Sense of Congress regarding food deserts, geographically isolated 
        neighborhoods and communities with limited or no access to 
        major chain grocery stores

      The House bill expresses the sense of Congress that the 
Secretary of Agriculture, in conjunction with the National 
Institutes of Health, Centers for Disease Control and 
Prevention, Institute of Medicine, and faith-based 
organizations, should assess ``food deserts'' in the United 
States (geographically isolated neighborhoods and communities 
with limited or no access to major-chain grocery stores), and 
develop recommendations for eliminating them. (Section 11311)
      The Senate amendment requires the Secretary to study and 
report on areas in the United States with limited access to 
affordable and nutritious food, with a focus on predominantly 
lower-income neighborhoods and communities. (Section 7504)
      The Conference substitute adopts the Senate provision 
with an amendment to move this provision to the Research Title 
of this Act, to include and define the term ``food desert,'' 
and to include an authorization of appropriations for the 
study. (Section 7527)

(36) Pigford claims

      The House bill provides that Pigford claimants who have 
not had their cases determined on the merits may, in a civil 
action, obtain such a determination. Payments or debt relief 
are to be exclusively made from mandatory funds provided to 
carry out this section. The total amount of payments and debt 
relief are prohibited from exceeding $100 million; 
additionally, payments and debt relief provided under this 
section are not to be made from Judgment Fund established by 31 
U.S.C. 1304. The intent of Congress is to have this section 
liberally construed. Not later than 60 days after the Secretary 
receives notice that a Pigford claimant desires to have a 
determination made on the merits of a claim, the Secretary is 
to provide the claimant with a report on farm credit loans made 
within the claimant's county, or adjacent county, by USDA for a 
period beginning on Jan. 1 of the year or years covered by the 
complaint and ending on Dec. 31 of the following year or years.
      The report is to contain information on all person whose 
loans were accepted, including:
            (a) the race of the applicant;
            (b) the date of the 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 
        the loan.
      The reports provided by USDA are not to contain 
identifying information regarding the person that applied for a 
USDA loan. Claimants who allege discrimination in the 
application for, or making or servicing of, a farm loan are 
permitted to seek liquidated damages of $50,000, or a discharge 
of the debt that was incurred under, or affected by, the 
alleged discrimination that is the subject of the complaint, 
and a tax payment in an amount of the liquidated damages and 
loan principal discharged only if:
            (1) the claimant is able to prove his or her case 
        by substantial evidence; and
            (2) the court decides the case based on documents, 
        submitted by the claimant, that are relevant to the 
        issue of liability and damages.
      The Secretary is prohibited from beginning acceleration 
on or foreclosure of a loan if the borrower is a Pigford 
claimant and, during an administrative proceeding, the claimant 
makes a prima facie case that the foreclosure is related to a 
Pigford claim. A ``Pigford claimant'' is defined as an 
individual who previously submitted a late-filing request under 
section 5(f) of the Pigford consent decree, in the case of 
Pigford v. Glickman, approved by the U.S. District Court for DC 
on April 14, 1999. A ``Pigford claim'' is defined as a 
discrimination complaint, as defined by section 1(h) of the 
Pigford consent decree and documented under section 5(b) of the 
decree.
      Mandatory funding of $100 million is to be made for 
fiscal year 2008. The funding is to remain available until it 
has been expended for payments and debt relief in satisfaction 
of claims against the U.S, with respect to a Pigford claimants 
who have their claims determined on the merits, and for any 
actions made related to the prohibition regarding foreclosures 
related to Pigford claims. (Section 11312)
      The Senate amendment is the same as the House bill 
except:
            (1) Subsection (a)(1) requires all claimants to 
        file in United States District Court for the District 
        of Columbia.
            (2) Subsection (a)(2) connects the definition of 
        ``substantial evidence to the one used in the original 
        consent decree.
            (3) Authorizes appropriate funds as necessary 
        beyond the $100 million in mandatory funding. (Section 
        5402)
      The Conference substitute adopts the Senate amendment 
with modifications. The Secretary will have 120 days to provide 
the claimant a report, or may petition the court for an 
extension. The modification requires the Secretary to retrieve 
data from within the claimant's county, or, if no documents are 
found then within an adjacent county as determined by the 
claimant.
      The modification provides for those who are filing a 
claim for discrimination involving a noncredit benefit to be 
able to obtain a report from the Secretary. It also provides 
for those claimants to receive a maximum of $3,000 irrespective 
of the number of noncredit claims on which the claimant 
prevails.
      The modification provides for those filers who chose not 
to go through the expedited resolutions process, to be entitled 
to actual damages if the claimant prevails.
      The modification also provides a requirement for the 
Secretary to report once every six months to both the House and 
Senate Committees on the Judiciary the status of available 
funds and the number of pending claims under the expedited 
resolutions process. It further requires the Secretary to 
notify those Committees once 75% of the funds have been 
depleted. It further provides for a 2-year statute of 
limitations to file a claim under this section. (Section 14012)

(37) Sense of Congress relating to claims brought by socially 
        disadvantaged farmers or ranchers

      The Senate amendment contains a sense of Congress that 
the Secretary should resolve all claims and class actions 
brought against the United States Department of Agriculture by 
socially disadvantaged farmers or ranchers including Native 
Americans, Hispanics, and female farmers regarding 
discrimination in farm loan program participation. (Section 
5403)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment 
with a modification that all pending claims should be resolved 
expeditiously. (Section 14011)

(38) Comptroller General study of wastewater infrastructure near United 
        States-Mexico border

      The House bill mandates that the Comptroller General 
study wastewater infrastructure in rural communities within 150 
miles of the United States-Mexico border to determine how the 
Government can assist these communities in updating the 
wastewater infrastructure. (Section 11313)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes this provision.

(39) Elimination of statute of limitations applicable to collection of 
        debt by administrative offset

      The House bill amends 31 U.S.C. 3716(e) to eliminate the 
statute of limitations within which a government agency can 
initiate the collection of an outstanding claim by 
administrative offset. (Section 11314)
      The Senate amendment is the same as the House bill. 
(Section 11069)
      The Conference substitute adopts the House provision. 
(Section 14219)

(40) Pollinator protection

      The House bill cites this section as the ``Pollinator 
Protection Act of 2007''. It states Congress' findings 
regarding the importance of bee pollination to agriculture and 
the concerns related to colony collapse disorder in the bee 
population. The provision authorizes appropriations, as 
follows:
       For the Agricultural Research Service at USDA--
$3 million for each of fiscal years 2008 through 2012 for new 
personnel, facilities improvement, and additional research at 
the USDA Bee Research Laboratories; $2.5 million for each of 
fiscal years 2008 and 2009 for research on honey and native bee 
physiology, and other research; and $1.75 million for each of 
fiscal years 2008 through 2010 for an area-wide research 
program to identify causes and solutions for colony collapse 
disorder.
       For the Cooperative State Research, Education, 
and Extension Service--$10 million to fund grants to 
investigate honey bee biology, immunology, ecology, genomics, 
bioinformatics, crop pollination and habitat conservation, the 
effects of insecticides, herbicides and fungicides, and other 
research.
       For the Animal and Plant Health Inspection 
Service--$2.25 million for each of fiscal years 2008 through 
2012 to conduct a honey bee pest and pathogen surveillance 
program.
      The House bill requires the Secretary to submit a report 
to Congress on the status and progress of bee research 
projects. It amends the Food Security Act of 1985 to require 
the Secretary, when carrying out a conservation program other 
than the farmland protection program, to establish a priority 
and provide incentives for increasing habitat for pollinators 
and to establish practices to protect native and managed 
pollinators. (Section 11315)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to move the research-related items of this 
provision to the research title of this Act to amend section 
1672 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5925), and to move the conservation-related item 
of this provision to the conservation title of this Act.. 
(Section 7204)

(41) Exemption from AQI user fees

      The Senate amendment exempts commercial trucks from 
payment of agricultural quarantine and inspection user fees if 
it originates in Alaska and reenters the United States directly 
from Canada or if it originates in the United States and 
transits through Canada before entering Alaska. Commercial 
trucks exempt from user fees are required to remain sealed 
during transit through Canada. (Section 11080)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(42) Regulations to improve management and oversight of certain 
        regulated articles

      The Senate amendment requires the Secretary to promulgate 
regulations for improved management and oversight of articles 
regulated under the Plant Protection Act. (Section 11077)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change the timeframe for the promulgation 
of regulations and to make technical changes. This provision 
can be found in the horticulture and organic agriculture title. 
(Section 10204)

(43) Invasive pest and disease emergency response funding clarification

      The Senate amendment clarifies that the Secretary may 
provide emergency funding to States to combat invasive pest and 
disease outbreaks for any appropriate period after initial 
detection of the pest or disease, as determined by the 
Secretary. (Section 11078)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(44) Invasive species management, Hawaii

      The Senate amendment requires cooperation among the 
federal agencies involved in preventing the introduction of and 
controlling invasive species in the State of Hawaii; requires 
the development of collaborative federal and state procedures 
to minimize the introduction of invasive species into Hawaii, 
and requires a report to Congress on the development of those 
procedures; establishes a process for Hawaii to seek approval 
from the federal government to impose restrictions on the 
introduction or movement of invasive species or disease into 
the State that are in addition to federal restrictions; in the 
event of an emergency or imminent invasive species threat, 
allows Hawaii to impose restrictions of up to 2 years to 
prevent introduction of the threat upon approval by the federal 
government. (Section 11063)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
The Managers remain concerned about the serious and growing 
invasive species problem in the State of Hawaii. The Managers 
are aware of the threats that invasive species present to 
Hawaii's unique ecosystem, which is highly susceptible to 
invasive species because of the combination of isolation of the 
Hawaiian islands and high passenger, baggage and cargo traffic 
to the islands. The Managers encourage the Secretaries of the 
Department of Agriculture, Interior and Homeland Security to 
work together in close cooperation with the State of Hawaii to 
effectively reduce the number of invasive species in Hawaii. 
The Managers emphasize this collaboration is critical at 
Hawaiian ports of entry.

(45) Invasive species revolving loan fund

      The Senate amendment establishes an invasive species 
revolving loan fund. This loan fund allows eligible units of 
local government to finance purchases of authorized equipment 
to monitor, remove, dispose of, and replace infested trees on 
land under the jurisdiction of the eligible local government 
and within the borders of a quarantine area infested by an 
invasive pest. These loans can be no more than $5,000,000 and 
shall have an interest rate of two percent. An eligible unit of 
local government shall work with the Secretary to establish a 
loan repayment schedule. This schedule requires that not later 
than one year after the eligible unit of local government 
received a loan they must repay the loan. The payments can be 
scheduled semiannually after. (Section 11090)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to move this provision to the horticulture 
and organic title of this Act, to replace all references to 
``invasive species'' with the term ``pest and disease,'' and to 
strike the provision allowing the unit of local government to 
use the financing of contracts with individuals and entities as 
part of the matching requirement in this program. (Section 
10205)

(46) Cooperative agreements relating to invasive species prevention 
        activities

      The Senate amendment allows States to provide cost-
sharing assistance or financing mechanism to a unit of local of 
the State through any cooperative agreement entered into 
between the Secretary and a State relating to the prevention of 
invasive species infestation. (Section 11091)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to move this section to the horticulture and 
organic title of this Act, to amend section 431 of the Plant 
Protection Act (7 U.S.C. 7751), and to make technical changes. 
(Section 10206)

(47) Report relating to the ending of childhood hunger in the United 
        States

      The Senate amendment includes a sense of Congress 
regarding childhood hunger in the United States. This section 
specifies that, not later than one year after the date of 
enactment of the Act, the Secretary shall submit to Congress a 
report that describes the best and most cost-effective manner 
by which the federal government could allocate funds to achieve 
the goal of abolishing childhood hunger and food insecurity by 
2013. (Section 11082)
      The House bill contains no comparable provision.
      The Conference substitute deletes this provision.

(48) GAO report on access to health care for farmers

      The Senate amendment provides that the GAO shall provide 
a report on rural Americans access to health care with a focus 
on farmers by November 30, 2008. (Section 11074)
      The House bill contains no comparable provision.
      The Conference substitute deletes this provision.

(49) Conveyance of land to Chihuahuan Desert Natural Park

      The Senate amendment conveys 935.62 acres of land in Dona 
Ana County, New Mexico to the Chihuahuan Desert Nature Park, 
Inc., a non-profit organization in New Mexico. The land is to 
be conveyed within one year after enactment of this Act. 
Subsection (c) outlines the conditions for the land conveyance. 
The United States reserves all mineral and subsurface rights of 
the land. The Chihuahuan Desert Nature Board must pay any costs 
associated relating to the conveyance. Also this subsection 
requires the land to be used for only educational or scientific 
purposes. Subsection (d) states if the land is not used for 
educational or scientific purposes the land may revert to the 
United States. If the land is environmentally contaminated, the 
Chihuahuan Desert Nature Park, Inc. or successor is responsible 
for the contamination and shall be required to remediate the 
contamination. (Section 11075)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize the conveyance, without 
consideration, of certain lands in the George Washington 
National Forest. (Section 8302)

(50) Department of Agriculture conference transparency

      The Senate amendment requires the Secretary to quarterly 
report to the Inspector General costs and contracting 
procedures relating to conferences held by USDA for which the 
cost to the Federal Government was over $10,000. Subsection (c) 
requires the Secretary to annually report to the Senate and 
House Agriculture Committees a detailed report about each 
conference where the USDA paid travel expenses. (Section 11081)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment. The modification provides reporting 
guidelines for conferences that are held by the Department or 
attended by employees of the Department. For conferences held 
by the Department, the Secretary will have to include a 
description of the contracting procedures related to the 
conference. The provision is not intended to apply to any 
training program for employees of the Department, or to 
conferences held outside the United States and attended by the 
Secretary or a designee as an official representative of the 
U.S. government. Travel under (c)(1)(d) does not apply to local 
travel for conferences. (Section 14208)

(51) National emergency grant to address effects of Greensburg, Kansas 
        tornado

      The Senate amendment states the Department of Labor 
awarded Greensburg, KS a $20 million grant to assist with 
cleanup from a F5 tornado that hit the town in May of 2007. The 
language allows the planning process to begin and allow federal 
funds that have already been awarded to flow more smoothly and 
efficiently. (Section 11083)
      The House bill contains no comparable provision.
      The Conference substitute deletes this provision.

(52) Report on program results

      The Senate amendment requires the Secretary to report 
information regarding programs that have received a Program 
Assessment Rating Tool score of ``results not demonstrated'' 
and for each program provide reasons that the program has not 
been able to demonstrate results, steps taken to demonstrate 
results and what might be necessary to facilitate the 
demonstration of results. (Section 11084)
      The House bill contains no comparable provision.
      The Conference substitute deletes this section. The 
Managers recognize that the reporting requirements in the 
Senate amendment may duplicate actions already taken by the 
Secretary in regards to the Program Assessment Rating Tool and 
that information on Program Assessment Rating Tool scores is 
publicly available. However, in order to raise greater 
awareness about such evaluation, the Managers encourage the 
Secretary to provide progress reports to Congress on the 
programs that have received a Program Assessment Rating Tool of 
``results not demonstrated.''

(53) Study of impacts of local food systems and commerce

      The Senate amendment requires the Secretary of 
Agriculture to evaluate the potential community, economic, 
health and nutrition, environmental, food safety, and food 
security impacts of advancing local food systems and commerce, 
the challenges that prevent local foods from comprising a 
larger share of the per capita food consumption in the United 
States, and existing and potential strategies, policies, and 
programs to address those challenges. (Section 11089)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate amendment.
      USDA's Economic Research Service (ERS) has indicated that 
the Agency is in the process of conducting a study of local 
food systems, thereby mitigating the need for a statutory 
mandate in this conference agreement. The ERS study will 
address issues raised in the Senate amendment including an 
evaluation of the effects of local food systems on economic 
activity, nutrition, and environmental resources. ERS has 
likewise indicated that the study will consider possible 
reasons for government policies to support local food markets 
and reduce barriers to growth of that sector.
      The Managers are aware of the budgetary constraints ERS 
is operating under. In order to minimize costs and maximize the 
utility of the study being undertaken, the Managers encourage 
ERS to leverage available resources through collaboration with 
other appropriate Federal agencies, farm operators serving 
local markets, institutions of higher education, non-
governmental organizations, and state and local agencies. To 
the extent resources and data are available, the Managers also 
encourage ERS to examine regional market trends and production, 
processing and distribution needs and evaluate the role and 
successes of relevant Federal, State, and local policies in 
areas where the production, processing and consumption of 
locally grown produce, meat, dairy, and other agricultural 
products is above normative levels.

(54) Disclosure of country of harvest for ginseng

      The Senate amendment amends the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1621 et seq.). It requires persons that 
sell ginseng at retail to provide the country of harvest by 
means of a label, stamp, mark, placard, or other easily legible 
and visible sign on the ginseng or on the package, display, 
holding unit, or bin containing the ginseng. The Secretary may 
levy fines for not more than $1,000 for willful violations of 
this provision. (Section 10004)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers have included ginseng in section 11002 of 
the Livestock Title.

(55) Definitions

      The Senate amendment defines the following terms used in 
the subtitle: agent; agricultural biosecurity; agricultural 
countermeasure; agricultural disease; agriculture; 
agroterrorist act; animal; department; development; plant; and 
qualified agricultural countermeasure. (Section 11011)
      The House has no comparable provision.
      The Conference substitute adopts the Senate provision 
with technical amendments to the definitions and incorporates 
this provision into the Agricultural Security Improvement Act 
of 2008. (Section 14102)
      The Managers have serious concerns regarding the efforts 
of the Department of Homeland Security (DHS) to absorb the 
critical agricultural security functions of the USDA, and DHS' 
ability to successfully incorporate and manage functions 
previously housed within the USDA. The USDA is best equipped to 
handle routine agricultural disease emergencies and emergency 
response activities in the agricultural sector. While the 
Managers fully appreciate the vital importance of the broad DHS 
mandate, DHS has ignored critical expertise within USDA and of 
the agriculture sector in managing agricultural disease 
response activities. In doing so, DHS has ignored and failed to 
incorporate the concerns of the agriculture sector. For 
example, independent investigations carried out by the House 
Committee on Agriculture and the Government Accountability 
Office, as well as a joint audit by the Inspector's General of 
USDA and DHS, have revealed numerous deficiencies in the 
agricultural port inspection program. Under DHS leadership, 
this program has suffered a marked decline in its capability to 
prevent and detect the movement of agricultural pests and 
diseases into the United States. This decline in mission 
capabilities is primarily due to an exodus of experienced staff 
after the transfer of agricultural inspections from USDA to 
DHS, declining morale and resources, and the lack of importance 
placed on the program's mission by DHS management. The Managers 
believe if this trend continues unabated, the security of the 
U.S. agriculture sector will be seriously, perhaps 
irreversibly, jeopardized. In addition, DHS is currently 
increasing their role in routine agricultural disease response 
activities and has claimed Federal jurisdiction as the lead 
agency for these activities traditionally managed by the USDA. 
Rather than attempt to duplicate the existing functions and 
capacities of USDA in this critical area, DHS would be better 
served, and scarce financial resources could be better 
allocated, if USDA and DHS effectively partnered in securing 
the Nation's agriculture sector. The Department of Agriculture 
has over 146 years of valuable experience in preventing the 
introduction of agricultural pests and diseases and effectively 
managing agricultural disease outbreaks when they occur. To 
ignore this history is to do a disservice to the agriculture 
sector, and the Nation at large.
      The Managers are concerned about efforts to reorganize 
USDA in an attempt to heighten the Department's response and 
management capabilities regarding threats to agricultural 
biosecurity. The Managers recognize that the existing structure 
at USDA to address such threats is adequate, and will continue 
to successfully prevent, control, and eradicate agricultural 
diseases. However, the Managers have codified the Office of 
Homeland Security at USDA in this Act in response to the 
concerns of other Committees. All homeland security-related 
activities at USDA will be coordinated by this office, ensuring 
that USDA will maintain its long tradition of protecting the 
U.S. agriculture sector from foreign and domestic agricultural 
pests and diseases. In addition, the Director of the Office of 
Homeland Security will serve as the primary liaison with other 
Federal agencies on homeland security coordination efforts, 
providing USDA with a unified voice on agricultural security 
matters of Federal concern.
      The Managers expect the Secretary, in establishing the 
Agricultural Biosecurity Communications Center, to use, to the 
maximum extent practicable, the existing resources and 
infrastructure of the Emergency Operations Center of the Animal 
and Plant Health Inspection Service located in Riverdale, 
Maryland. In addition, the Managers expect the Secretary to 
share and coordinate the dissemination of information with the 
National Operations Center, the National Biosurveillance 
Integration Center, the National Response Coordination Center, 
and the National Infrastructure Coordination Center of DHS, as 
appropriate. The Managers recognize that existing communication 
activities at DHS will not be hampered by the creation of the 
Agricultural Biosecurity Communications Center. However, the 
Managers also recognize the critical need for USDA to maintain 
and govern its own communication system given the subject 
matter expertise of USDA officials and their close ties to the 
domestic agriculture sector and international trading partners 
who trust their guidance and input.
      The Managers understand that any successful agricultural 
disease interdiction, prevention, or mitigation effort is 
largely dependent on local response capabilities. State and 
regional entities play a critical role in any agricultural 
disease emergency; however, the Federal government must provide 
them with the necessary expertise and information to establish 
successful local programs. The Managers recognize that no 
Federal agency is better equipped to assist in this endeavor 
than the Department of Agriculture. USDA enjoys an established 
network of local veterinarians, plant health professionals, 
producers, farmers and ranchers who view the Department as a 
partner in agricultural disease response activities. These 
long-established relationships will be buttressed by the 
Agricultural Biosecurity Task Force and will strengthen the 
Nation's disease response capabilities at the local and 
regional level. The Managers encourage the Secretary to 
collaborate with DHS in the provision of agricultural 
biosecurity best practices to State and tribal regulatory 
authorities. In doing so, DHS will be afforded the opportunity 
to benefit from the expertise of USDA in this area of national 
security.
      The Managers are especially concerned with the 
degradation of the AQI program following its transfer from USDA 
to DHS in 2002, and are aware that the agriculture sector 
continues to raise serious concerns about the ability and 
willingness of DHS to prioritize agricultural quarantine and 
inspection activities at ports of entry. In light of the broad 
mandate given to DHS, the Managers understand that limiting the 
introduction of agricultural pests and diseases into the United 
States is not a top priority for DHS. While some observers have 
concluded that the scientific nature of the AQI program does 
not fit well with the police function of the Customs and Border 
Protection Program, the Managers have nevertheless chosen to 
maintain the program within the Department of Homeland 
Security. As such, the Managers encourage the Secretary to 
increase USDA's oversight regarding this vitally important 
program to ensure that the concerns of the agricultural sector 
are given a priority status commensurate with the threat that 
these diseases pose to the U.S. economy. To do so, the Managers 
encourage the Secretary to establish a comprehensive activity 
reporting mechanism detailing how DHS uses funds transferred by 
USDA to carry out the AQI program. In order to keep Congress 
and the public informed about the use of these funds, the 
Managers encourage the Secretary to provide a detailed 
accounting to the Senate and House Agriculture Committees on 
how DHS uses these funds. The Managers strongly encourage the 
Secretary of Agriculture and the Secretary of Homeland Security 
to revise the transfer agreement mandated under section 421(e) 
of the Homeland Security Act of 2002 so that the financial 
information requested is provided in a timely manner. The 
Managers intend that any information provided to the Secretary 
on the use of funds by DHS be scrutinized not only by Congress, 
but also by the senior leadership of the USDA and DHS to ensure 
expedient and comprehensive improvements in this program.
      The Managers also encourage the Secretary to seek 
detailed information to track the promotion of CBP field 
officers, import specialists, and agricultural specialists into 
supervisorial and managerial grades since the transfer of 
function in 2003. The information provided should break out, by 
fiscal year and by series, the number of employees who have 
been permanently promoted into supervisor, chief, program 
manager, assistant port director, and port director positions 
at ports of entry throughout the country. The information 
provided should also cite whether the affected employees were 
legacy customs, immigration, or agriculture personnel.

(56) National plant disease recovery system and national veterinary 
        stockpile

      The Senate amendment establishes the National Plant 
Disease Recovery System (NPDRS) in subsection (a). The NPDRS 
will include agricultural countermeasures, available within a 
single growing season, to respond to an outbreak of plant 
disease that poses a significant biosecurity threat. Subsection 
(b) establishes the National Veterinary Stockpile (NVS). The 
NVS will include agricultural countermeasures, available to any 
State veterinarian not later than 24 hours after an official 
request, to leverage the infrastructure of the strategic 
national stockpile. (Section 11012)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

(57) Research and development of agricultural countermeasures

    The Senate amendment establishes a competitive grant 
program at USDA to stimulate research and development activity 
for qualified agricultural countermeasures. It provides for a 
waiver of the competitive grant process in the case of 
emergencies and permits the use of foreign animal and plant 
diseases in research and development activities. USDA will 
provide information to DHS on each grant funded through this 
authorization. The provision authorizes appropriations of 
$50,000,000 for each fiscal year from 2008 through 2012. 
(Section 11013)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to make technical changes. (Section 14121)

(58) Veterinary workforce grant program

    The Senate amendment establishes a veterinary workforce 
grant program at USDA to increase the number of veterinarians 
trained in biosecurity. It authorizes such sums as necessary 
for each fiscal year from 2008 through 2012. (Section 11014)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to establish a program of competitive grants 
to veterinarians and food science professionals to increase 
agricultural biosecurity capacity. (Section 14122)

(59) Assistance to build local capacity in biosecurity planning, 
        preparedness, and response

      The Senate amendment requires USDA to provide grants to 
support the development and expansion of advanced training 
programs in agricultural biosecurity planning and response for 
food science professionals and veterinarians. The Section also 
requires USDA to provide grant and low-interest loan assistance 
to States for use in assessing agricultural disease response 
capability for food science and veterinary biosecurity 
planning. (Section 11015)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision and 
incorporates this section into the Agricultural Security 
Improvement Act of 2008 (Section 14113).

(60) Plant protection

      The Senate amendment modifies penalties in the Plant 
Protection Act (PPA) as follows: $500,000 for each violation 
adjudicated in a single proceeding; $1,000,000 for each 
violation adjudicated in a single proceeding involving a 
genetically modified organism. The provision requires an 
action, suit or proceeding regarding a violation of the PPA to 
be considered no later than 5 years after the date the 
violation is initially discovered by the Secretary. (Section 
11017)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to strike the change to the statute of 
limitations, to expand the penalties to cover any willful 
violation of the PPA, and to clarify subpoena authorities of 
the Department under the PPA. The Conference substitute also 
modifies the ability of the executive branch to delay the 
provision of compensation for economic losses under this 
section. This provision can be found in the horticulture and 
organic agriculture title of this Act. (Section 10203) 
Identical amendments were made to the Animal Health Protection 
Act, and this provision can be found in the livestock title of 
this Act. (Section 11012)
      The Managers intend for the Secretary or the Secretary's 
designee to continue to possess the ability to review actions 
of officers, employees, and agents of the Secretary with 
regards to the payment of compensation under the Plant 
Protection Act.
      Further, the Managers expect the additional subpoena 
authority provided in this section to be used to assist the 
Secretary in compiling such information, assembling such 
evidence, and conducting such investigations as the Secretary 
determines is necessary and proper for the administration and 
enforcement of this Title.

(61) Report on stored quantities of propane

      The Senate amendment requires the Secretary of Homeland 
Security to submit to Congress a report of the effects of DHS 
interim or final regulations regarding possession of quantities 
of propane that exceed the screening threshold set by the DHS 
rules. The provision includes number of agricultural facilities 
and total number of facilities affected, numbers of facilities 
filing security assessments, alternative security programs, and 
appeals, as well as costs of compliance. (Section 11070)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to limit the report to the Committees on 
Agriculture of the House and Senate, and to strike the 
subparagraph on the use of the Food and Agricultural Sector 
Coordinating Council. (Section 14206)

  TITLE XV--HEARTLAND, HABITAT, HARVEST, AND HORTICULTURE ACT OF 2008
                                CONTENTS

                                                                   Page
 I. DISASTER ASSISTANCE TRUST FUND (Sec. 12101 of the Senate amendment, 
    (Sec. 901 of the Trade Act of 1974 and sec. 15101 of the conference 
    agreement).....................................................1019
II. REVENUE PROVISIONS FOR AGRICULTURE PROGRAMS....................1028
    A. Extension of Custom User Fees (Sec. 15201 of the 
      conference agreement)......................................  1028
    B. Modifications to Corporate Estimated Tax Payments (Sec. 
      15202 of the conference agreement).........................  1029
III.TAX PROVISIONS.................................................1030

    A. Conservation..............................................  1030
        1. Exclusion of Conservation Reserve Program Payments 
          from SECA tax for individuals receiving Social Security 
          retirement or disability payments (Sec. 12202 of the 
          Senate amendment, sec. 15301 of the conference 
          agreement and sec. 1402(a) of the Code)................  1030
        2. Make permanent the special rule encouraging 
          contributions of capital gain real property for 
          conservation purposes (Sec. 12203 of the Senate 
          amendment, sec. 15302 of the conference agreement and 
          sec. 170 of the Code)..................................  1030
        3. Deduction for endangered species recovery expenditures 
          (Sec. 12205 of the Senate amendment, sec. 15303 of the 
          conference agreement and sec. 175 of the Code).........  1034
        4. Temporary reduction in corporate tax rate for 
          qualified timber gain; timber REIT provisions (Secs. 
          12212-12217 of the Senate amendment, secs. 15311-15315 
          of the conference agreement and secs. 856, 857, and 
          1201 of the Code)......................................  1035
        5. Qualified forestry conservation bonds (Sec. 12808 of 
          the Senate amendment, and sec. 15316 of the conference 
          agreement and new secs. 54A and 54B of the Code).......  1041
    B. Energy Provisions.........................................  1047
        1. Credit for production of cellulosic biofuel (Sec. 
          12312 of the Senate amendment, sec. 15321 of the 
          conference agreement and sec. 40 of the Code)..........  1047
        2. Comprehensive study of biofuels (Sec. 15322 of the 
          conference agreement)..................................  1049
        3. Modification of alcohol credit (Sec. 12315 of the 
          Senate amendment, and sec. 15331 of the conference 
          agreement and secs. 40 and 6426 of the Code)...........  1050
        4. Calculation of volume of alcohol for fuel credits 
          (Sec. 12316 of the Senate amendment, and sec. 15332 of 
          the conference agreement and sec. 40 of the Code)......  1053
        5. Ethanol tariff extension (Sec. 12317 of the Senate 
          amendment and sec. 15333 of the conference agreement)..  1053
        6. Limitations on duty drawback on certain imported 
          ethanol (Sec. 12318 of the Senate amendment and sec. 
          15334 of the conference agreement).....................  1054
    C. Agricultural Provisions...................................  1055
        1. Qualified small issue bonds for farming (Sec. 12401 of 
          the Senate amendment, sec. 15341 of the conference 
          agreement and sec. 144 of the Code)....................  1055
        2. Allowance of section 1031 for exchanges involving 
          certain mutual ditch, reservoir, or irrigation company 
          stock (Sec. 12403 of the Senate amendment, sec. 15342 
          of the conference agreement and sec. 1031 of the Code).  1056
        3. Agricultural chemicals security tax credit (Sec. 12405 
          of the Senate amendment, sec. 15343 of the conference 
          agreement and new sec. 45O of the Code)................  1057
        4. Three-year depreciation for all race horses (Sec. 
          12509(a) of the Senate amendment, and sec. 15344 of the 
          conference agreement and sec. 168 of the Code).........  1058
        5. Temporary relief for Kiowa County, Kansas and 
          surrounding area.......................................  1059
            (a) Suspension of certain limitations on personal 
              casualty losses (Sec.12701 of the Senate amendment, 
              sec. 15345 of the conference agreement and sec. 
              1400S(b) of the Code)..............................  1059
            (b) Extension of replacement period for 
              nonrecognition of gain (Sec. 12701 of the Senate 
              amendment, and sec. 15345 of the conference 
              agreement).........................................  1060
            (c) Employee retention credit (Sec. 12701 of the 
              Senate amendment, sec. 15345 of the conference 
              agreement and sec. 1400R(a) of the Code)...........  1061
            (d) Special depreciation allowance (Sec. 12701 of the 
              Senate amendment, sec. 15345 of the conference 
              agreement and sec. 1400N(d) of the Code)...........  1062
            (e) Increase in expensing under section 179 (Sec. 
              12701 of the Senate amendment, sec. 15345 of the 
              conference agreement and sec. 1400N(e) of the Code)  1065
            (f) Expensing for certain demolition and clean-up 
              costs (Sec. 12701 of the Senate amendment, sec. 
              15345 of the conference agreement and sec. 1400N(f) 
              of the Code).......................................  1067
            (g) Treatment of public utility property disaster 
              losses (Sec. 12701 of the Senate amendment, sec. 
              15345 of the conference agreement and sec. 1400N(o) 
              of the Code).......................................  1068
            (h) Treatment of net operating losses attributable to 
              storm losses (Sec. 12701 of the Senate amendment, 
              sec. 15345 of the conference agreement and sec. 
              1400N(k) of the Code)..............................  1069
            (i) Representations regarding income eligibility for 
              purposes of qualified residential rental project 
              requirements (Sec. 12701 of the Senate amendment, 
              sec. 15345 of the conference agreement and sec. 
              1400N(n) of the Code)..............................  1072
            (j) Use of retirement funds from retirement plans 
              relating to the Kansas Disaster Zone (Sec. 12701 of 
              the Senate amendment, sec. 15345 of the conference 
              agreement and sec. 1400Q of the Code)..............  1073
        6. Modification of the advanced coal project credit and 
          the gasification project credit (Sec. 15346 of the 
          conference agreement and secs. 48A and 48B of the Code)  1079
    D. Other Revenue Provisions..................................  1081
        1. Limitation on farming losses of certain taxpayers 
          (Sec. 12501 of the Senate amendment, sec. 15351 of the 
          conference agreement and sec. 461 of the Code).........  1081
        2. Increase and index dollar thresholds for farm optional 
          method and nonfarm optional method for computing net 
          earnings from self-employment (Sec. 12502 of the Senate 
          amendment, sec. 15352 of the conference agreement and 
          sec. 1402(a) of the Code)..............................  1084
        3. Information reporting for commodity credit corporation 
          transactions (Sec. 12503 of the Senate amendment, sec. 
          15353 of the conference agreement and new sec. 6039J of 
          the Code)..............................................  1087
    E. Protection of Social Security (Sec. 15361 of the 
      conference agreement)......................................  1088
IV. TRADE PROVISIONS...............................................1088
    A. Extension of Certain Trade Benefits (secs. 15401-15407 and 
      15410-15411 of the conference agreement)...................  1088
    B. Extension of CBTPA (Sec. 15408-15409 of the conference 
      agreement).................................................  1094
    C. Unused Merchandise Drawback (Sec. 15421 of the conference 
      agreement).................................................  1094
    D. Requirements Relating to Determination of Transaction 
      Value of Imported Merchandise (Sec. 15422 of the conference 
      agreement).................................................  1095
 V. TAX COMPLEXITY ANALYSIS........................................1097

                  I. DISASTER ASSISTANCE TRUST FUND\1\

---------------------------------------------------------------------------
    \1\The statement of managers does not contain descriptions of the 
provisions in the House bill and Senate amendment that were not agreed 
to by the conferees.
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(Sec. 12101 of the Senate amendment, sec. 901 of the Trade Act of 1974 
        and sec. 15101 of the conference agreement)

                              PRESENT LAW

      The Farm Service Agency (``FSA'') of the United States 
Department of Agriculture (``USDA'') offers various ongoing 
programs for agricultural producers to facilitate recovery from 
losses caused by natural events. Ongoing programs include the 
Emergency Conservation Program (``ECP''), the Noninsured Crop 
Disaster Assistance Program (``NAP''), the Disaster Debt Set-
Aside Program (``DSA''), and the Emergency Loan Program 
(``EM'').
      ECP is a discretionary program funded through annual 
appropriations that provides funding for farmers and ranchers 
to rehabilitate farmland damaged by natural disaster and for 
carrying out emergency water conservation measures during 
severe drought. The natural disaster must create new 
conservation problems that if untreated would 1) impair or 
endanger the land; 2) materially affect the productive capacity 
of the land; 3) represent unusual damage which, except for wind 
erosion, is not the type likely to recur frequently in the same 
area; and 4) be so costly to repair that federal assistance is, 
or will be required, to return the land to productive 
agricultural use.
      NAP provides a low level of insurance to producers who 
grow otherwise noninsurable crops. NAP provides coverage for 
crop losses and planting prevented by disasters. Landowners, 
tenants, or sharecroppers who share in the risk of producing an 
eligible crop may qualify for this program. Before payments can 
be issued, applications must first be received and approved, 
generally before the crop is planted, and the crop must have 
suffered a minimum of 50 percent loss in yield. Payments are 55 
percent of the commodities' average market price on crop losses 
beyond 50 percent. Eligible crops include commercial crops and 
other agricultural commodities produced for food, including 
livestock feed or fiber for which the catastrophic level of 
crop insurance is unavailable. Also eligible for NAP coverage 
are controlled-environment crops (mushroom and floriculture), 
specialty crops (honey and maple sap), and value loss crops 
(aquaculture, Christmas trees, ginseng, ornamental nursery, and 
turfgrass sod).
      DSA is available to those producers who are borrowers 
from the Farm Service Agency in primary or contiguous counties 
that have been declared by the President or designated by the 
Secretary of Agriculture (``Secretary'') as a disaster area. 
When borrowers affected by natural disasters are unable to make 
their scheduled payments on any debt, FSA is authorized to 
consider the set-aside of some payments to allow the farming 
operation to continue. After a disaster designation is made, 
FSA will notify borrowers of the availability of the DSA. 
Borrowers who are notified have eight months from the date of 
designation to apply. FSA borrowers may also request a release 
of income proceeds to meet current operating and family living 
expenses or may request special servicing provisions from their 
local FSA county offices to explore other options.
      EM provides emergency loans to help producers recover 
from production and physical losses due to drought, flooding, 
other natural disasters, or quarantine. Emergency loans may be 
made to farmers and ranchers who own or operate land located in 
a county declared by the President as a disaster area or 
designated by the Secretary as a disaster area or quarantine 
area (for physical losses only, the FSA administrator may 
authorize emergency loan assistance). EM funds may be used to: 
1) restore or replace essential property; 2) pay all or part of 
production costs associated with the disaster year; 3) pay 
essential family expenses; 4) reorganize the farming operation; 
and 5) refinance certain debts.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

In general

      The provision amends the Trade Act of 1974 to create a 
permanent Agriculture Disaster Relief Trust Fund (``PADTF'') 
that would provide payments to farmers and ranchers who suffer 
losses in areas that are declared disaster areas by the USDA. 
The trust fund will be funded by an amount equal to 3.34 
percent of the amounts received in the general fund of the 
Treasury that are attributable to the duties collected on 
articles entered, or withdrawn from warehouse, for consumption 
under the Harmonized Tariff Schedule. The PADTF could make 
payments under four new disaster assistance programs: the 
permanent crop disaster assistance program, the permanent 
livestock indemnity program, the tree assistance program, and 
the emergency assistance program for livestock, honey bees, and 
farm raised fish. In addition, the PADTF will also fund a new 
pest and disease management and disaster prevention program. 
Amounts not required to meet current withdrawals may be 
invested in U.S. Treasury obligations with interest credited to 
the PADTF. The PADTF may also borrow, with interest, as 
repayable advances sums necessary to carry out the purposes of 
the fund.

Permanent Crop Disaster Assistance Program (``PCDP'')

      Generally, PCDP payments will be paid to producers 
located in disaster counties on 52 percent of the difference 
between the disaster program guarantee and the sum of total 
farm revenue. Disaster counties include counties receiving 
disaster declarations by the Secretary due to production losses 
resulting directly or indirectly from adverse weather, counties 
contiguous to such counties, and any farm whose production due 
to weather was less than 50 percent of normal production. To be 
eligible for PCDP payments, the producer must have purchased or 
enrolled in both crop insurance for insurable crops at a 
minimum of 50 percent of yield at 55 percent of price and NAP 
for uninsurable crops. The Secretary may waive this requirement 
under certain conditions.
      The disaster program guarantee for insurable crops is 
equal to the product of a measure of crop yield, the percentage 
of crop insurance yield guarantee, the percentage of crop 
insurance 2 price elected by the producer, the crop insurance 
price, and 115 percent. The disaster program guarantee for 
noninsured crops is equal to the product of the yield as 
determined by NAP for each crop, 100 percent of the NAP 
established price, and 115 percent. The disaster program 
guarantee is the sum of the disaster program guarantee for 
insurable and noninsured crops.
      Total farm revenue includes the sum of the estimated 
value of crops and grazing, crop insurance and NAP indemnities 
accruing to the farm, the value of prevented planting payments, 
the amount of other natural disaster assistance payments 
provided by the federal government to a farm for the same loss, 
and an amount equal to 20 percent of any direct payments made 
to the producer under section 1103 of the Farm Security and 
Rural Investment Act of 2002. The estimated value of crops is 
generally the product of actual crop acreage grazed or 
harvested, estimated actual yields of grazing land or crop 
production, and the average market price during the first five 
months of the marketing year in which a farm or portion of a 
farm is located.

Permanent Livestock Indemnity Program

      The PADTF may also make payments under the permanent 
livestock indemnity program to eligible producers on farms that 
have incurred livestock death losses in excess of normal 
mortality rates during the calendar year due to adverse 
weather, as determined by the Secretary. Indemnity payments are 
made at a rate of 75 percent of the fair market value of the 
livestock on the day before the date of death of the livestock 
as determined by the Secretary.

Tree Assistance Program

      The Secretary shall make payments to eligible orchardists 
as follows. Assistance is in the form of 1) 75 percent 
reimbursement for the cost of replanting trees lost due to a 
natural disaster if tree mortality is in excess of 15 percent, 
adjusted for normal mortality, or sufficient seedlings to 
reestablish a stand; and 2) 50 percent reimbursement of the 
cost of pruning, removal, and other costs incurred to salvage 
existing trees or to prepare land to replant trees lost due to 
a natural disaster in excess of 15 percent damage and/or 
mortality adjusted for normal tree damage and/or mortality.

Buy-up NAP coverage

      Under NAP, FSA compensates eligible producers for losses 
of noninsurable crops exceeding 50 percent of the expected 
yield based on 55 percent of the average market price of the 
commodity. This provision permits producers to buy additional 
NAP coverage. Producers could purchase additional coverage 
guarantee up to 60 or 65 percent, as elected by the producers, 
of expected yield, and up to 100 percent of the average market 
price of the commodity. Fees would be established and collected 
by the Secretary to fully offset the cost of supplemental NAP 
coverage.

Emergency Assistance for livestock, honey bees, and farm-raised fish

      The Secretary shall use up to $35,000,000 annually from 
the trust fund to provide emergency relief to producers of 
livestock (including horses), honey bees, and farm-raised fish 
due to losses from 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. For 
purposes of the provision, farm-raised fish includes the 
propagation and rearing of aquatic species (including any 
species of finfish, mollusk, crustacean, or other aquatic 
invertebrate, amphibian, reptile, or aquatic plant) in 
controlled or semi-controlled environments.

Limitations

      No eligible producer may receive more than $100,000 
annually in total disaster assistance under this Act. A 
producer is not eligible for benefits under the provision if, 
as determined by the Secretary, such producer's adjusted gross 
income (as defined in section 1001D(a) of the Food Security Act 
of 1985 or any successor provision) exceeds $2.5 million, 
unless not less than 75 percent of the average adjusted gross 
income of such producer is derived from farming, ranching or 
forestry operations.

Pest and disease management and disaster prevention

      The provision also establishes a new program under which 
USDA will conduct early pest detection and surveillance 
activities in coordination with State departments of 
agriculture, will prioritize and create action plans to address 
pest and disease threats to specialty crops, and will create an 
audit-based certification approach to protect against the 
spread of plant pests.

Sunset of provision

      The authority provided by the provision expires at the 
same time as the 2007 Farm Bill.

                          CONFERENCE AGREEMENT

Supplemental Agricultural Disaster Assistance Program description and 
        provisions (For crop years 2008-2011)

      The provision amends the Trade Act of 1974 to create a 
Supplemental Agricultural Disaster Assistance trust fund 
(``Trust Fund'') that would provide payments to farmers and 
ranchers who suffer losses in areas that are designated 
disaster areas by the USDA. The Trust Fund could make payments 
under five new disaster assistance programs: the Supplemental 
Revenue Program (``SURE''), the Livestock Forage Disaster 
Program (``LFP''), the Livestock Indemnity Program (``LIP''), 
the Tree Assistance Program (``TAP''), and the Emergency 
Assistance Program for Livestock, Honey bees, and Farm raised 
fish.

Supplemental revenue assistance payments (SURE)

      Section 901(b) SURE Assistance will be available to 
eligible producers on farms in disaster determined and 
contiguous counties that have incurred crop production losses 
and/or crop quality losses.
      901(a)(5) For purposes of the supplemental revenue 
assistance program, disaster counties are counties that 
received Secretarial Disaster declarations due to production 
losses resulting directly or indirectly from adverse weather. 
However, Secretarial designations are waived for farms with 
greater than 50% production losses.
      901(b)(2)(A) SURE Assistance payments will be issued on 
60% of the difference between the disaster assistance program 
guarantee AND total farm revenue (as defined).
      The conferees expect that when payments are calculated, 
USDA will not discount any final payments for any activity that 
has already been deducted as an adjustment to a crop insurance 
indemnity or noninsured assistance payment such as harvest 
costs, packing, or transportation.
      901(b)(3) The SURE Assistance Program Guarantee is the 
sum obtained by adding:
      For each insurable commodity, the product obtained by 
multiplying: the higher of the Adjusted APH yield, or the 
counter-cyclical program payment yield the percentage of crop 
insurance yield guarantee, the crop insurance price election, 
the acres planted or prevented from being planted, and 115%, 
AND for each non-insurable commodity on the farm, the product 
obtained by multiplying: the higher of the adjusted noninsured 
assistance program yield guarantee or the counter-cyclical 
program payment yield, 100% of the NAP established price, the 
acres planted or prevented from being planted, and 120%.
      The conferees intend the price election for revenue 
products to be the price the crop insurance indemnity would be 
calculated for the plan of insurance obtained by the producer.
      901(a)(2) The Adjusted APH Yield and Section 901(a)(3) 
the Adjusted Noninsured Crop Disaster Assistance Yield are 
determined by dropping replacement yields for producers with at 
least four years of actual production history. For producers 
with four years or less, one replacement yield may be dropped 
from the calculation.
      The SURE Assistance guarantee will be adjusted in the 
following manners. 901(b)(2)(B) The guarantee may not exceed 
90% of the expected revenue for the whole farm. 
901(b)(3)(B)&(C) Where crop insurance or the NAP makes 
adjustments for prevented planting or un-harvested production, 
the adjusted guarantee will be the basis for calculating the 
SURE Assistance guarantee.
      901(b)(3)(D) The Secretary is also charged with the 
responsibility to establish equitable treatment for non-
standard crop insurance products like AgriLite.
      901(b)(4) The total Farm Revenue for the farm shall be 
equal to the sum obtained by adding: the estimated actual value 
of the production for each crop produced by multiplying the 
actual crop acreage harvested; the estimated actual yield; the 
national average market price for the marketing year for each 
commodity, as determined by the Secretary; the crop insurance 
or NAP indemnities accruing to the farm; the value of any other 
natural disaster assistance payments provided by the federal 
government on a farm for the same loss; 15% of direct payments 
accruing to the farm; all marketing loan proceeds (including 
certificate gains); and all counter-cyclical or average crop 
revenue payments.
      The conferees encourage the Secretary to accept Loss 
Adjustment yields to determine estimated actual yield when 
available with the understanding that all of the units for the 
crop on the farm would need to be adjusted to arrive at total 
farm production.
      When loss adjusted yields are not available, the 
conferees expect the Secretary to obtain APH certified yields 
submitted to the Risk Management Agency through participating 
crop insurance companies.
      901(b)(4)(B) The Secretary shall adjust the average 
market price received to reflect average quality discounts 
applied to the local or regional market price of the crop 
during the year of production. The Secretary shall also account 
for crop value reduced due to excess moisture resulting from a 
disaster related condition.
      The conferees expect the Secretary, assisted by Farm 
Service Agency State and County committees, will determine 
local or regional discounts for the marketing year in a manner 
similar to what has been used to administer recent ad hoc 
quality loss programs.
      The conferees encourage the Secretary to consider salvage 
values when quality factors prevent the commodity from being 
marketed for its originally intended purpose.
      901(b)(5) Expected crop revenue is used to calculate the 
90% limit of the SURE Assistance Guarantee and is equal to the 
sum obtained by adding:
      For each insured commodity, the product obtained by 
multiplying: the higher of the Actual Production History (APH) 
yield, the Adjusted APH yield, or the counter-cyclical program 
payment yield; the acreage planted or prevented from being 
planted; and the insurance price guarantee, AND for each 
noninsured crop, the product obtained by multiplying: the 
adjusted non-insurable assistance program (NAP) yield, the 
adjusted Actual Production History (APH) NAP yield; the acreage 
planted or prevented from being planted; and 100% of the NAP 
protection price.
      The entire farm constitutes unit structure for this 
program including all crops in all counties in the farming 
operation and shared production.

Livestock Indemnity Program (LIP)

      901(c)(1) The Trust Fund may also make payments under the 
Livestock Indemnity program (LIP) to eligible producers on 
farms that have incurred livestock death losses in excess of 
normal mortality rates during the calendar year due to adverse 
weather, as determined by the Secretary.
      901(c)(2) Indemnity payments are made at a rate of 75 
percent of the fair market value of the livestock on the day 
before the date of death of the livestock as determined by the 
Secretary.
      It is the intent of the conferees that the Secretary 
shall make LIP payments based upon individual producers' 
eligible losses. No state, county, or other trigger shall be 
used by the Secretary to define an eligible LIP area.
      It is expected that the Secretary, through the State Farm 
Service Agency Committee will obtain recommendations from 
applicable state livestock organizations, state Cooperative 
Extension Service, and other knowledgeable and credible sources 
to establish the normal mortality rate for each type of 
livestock on a state-by-state basis.
      When determining the market value of applicable livestock 
in order to determine payment rates for LIP, the Secretary 
shall establish market values for each type of livestock from 
credible livestock markets. Credible livestock markets include 
sale barns, local sales as well as terminal market centers or 
slaughtering facilities.

Livestock Forage Disaster Program (LFP)

      901(d) The Livestock Forage Program provides ranchers 
assistance for forage losses due to drought. Ranchers in 
counties with droughts designated by the Drought Monitor as 
severe, extreme or exceptional qualify for assistance. 
Producers in a severe drought will receive one month's payment. 
Producers experiencing extreme drought will get two month's 
payment and producers in a county with an exceptional drought 
will receive three month's payment. The payment is 60 percent 
of either 1) the monthly feed cost for the total number of 
livestock covered or, 2) the monthly feed cost calculated by 
using the normal carrying capacity of the eligible grazing 
land, whichever is smaller.
      901(d)(4) LFP also covers losses to ranchers whose 
livestock utilize federal grazing permits. Payments are 
available to eligible livestock producers whose livestock are 
prohibited by a Federal agency from grazing due to fire. 
Payments will be made for the time period beginning on the date 
the Federal Agency excludes the eligible livestock producer and 
ending on the last day of the eligible producer's the Federal 
lease. The payment rate is 50 percent of the monthly feed costs 
for the total number of livestock covered by the Federal lease.
      The conferees intend this section to also apply to trust 
property and range units managed under the authority of the 
Department of Interior through the Bureau of Indian Affairs.
      901(d)(1)(D) In order to disallow excessive payments to 
livestock producers who overgraze pasture and grazing lands the 
Secretary shall calculate the normal carrying capacity of the 
eligible livestock producer's grazing and pasture land and 
issue payments based on the lesser of the actual number of the 
livestock producer's eligible livestock or the maximum carrying 
capacity of the eligible livestock producer's pasture and 
grazing land for the type and weight of the eligible producer's 
livestock.
      901(d)(5) One of the eligibility requirements for the LFP 
is that a livestock producer shall have timely applied for and 
obtained, if available, either crop insurance, including pilot 
programs implemented by the Risk Management Agency such as the 
Pastureland Rangeland Forage Program; or coverage under the NAP 
on the pasture or grazing land which suffered an eligible loss. 
Producers are not required to purchase any pilot program if 
they purchase NAP.
      901(d)(5)(C) For the 2008 crop year only, if a livestock 
producer had not timely obtained either crop insurance or NAP 
coverage, if it was available, the Secretary shall waive this 
requirement if the livestock producer pays any fee that would 
have been required to enroll in either crop insurance or NAP.
      901(d)(5)(D) For any year after 2008, the Secretary may 
on a case-by-case basis provide equitable relief for producers 
who the county Farm Service Agency Committee determines 
unintentionally failed to obtain crop insurance or NAP coverage 
on applicable grazing and pasture land.
      The conferees recommend that for LFP applications for 
which payment would be less than $25,000, the State Farm 
Service Agency Committee may provide equitable relief; and that 
for LFP applications for which payments exceed $25,000 the 
Secretary or designee shall review a recommendation from the 
county and state Farm Service Agency committees and determine 
whether equitable relief applies.

Emergency assistance for livestock, honey bees, and farm-raised fish

      901(e)(1) The Secretary shall use up to $50,000,000 
annually from the Trust Fund to provide emergency relief to 
producers of livestock (including horses), honey bees, and 
farm-raised fish due to losses from adverse weather or other 
conditions, such as blizzards and wildfires, as determined by 
the Secretary.
      The conferees wish to clarify that program is intended to 
cover disasters that are not adequately covered by any other 
disaster program.

Tree Assistance Program (TAP)

      901(f) The Secretary shall make payments to eligible 
orchardists and nursery tree growers as follows. Assistance is 
in the form of (1) 70 percent reimbursement for the cost of 
replanting trees lost due to a natural disaster if tree 
mortality is in excess of 15 percent, adjusted for normal 
mortality, or sufficient seedlings to reestablish a stand; and 
(2) 50 percent reimbursement of the cost of pruning, removal, 
and other costs incurred to salvage existing trees or to 
prepare land to replant trees lost due to a natural disaster in 
excess of 15 percent damage and/or mortality adjusted for 
normal tree damage and/or mortality.
    The conferees wish to clarify that the insurance 
requirement for TAP eligibility refers to insurance on the crop 
and not on the underlying vines or trees.

Rick management purchase requirements

      901(g) To be eligible for SURE Assistance, the producer 
must have purchased or be enrolled in (at a minimum) the 
Catastrophic crop insurance (CAT) for insurable crops and the 
Noninsured Assistance Program (NAP) for uninsurable crops.
      901(g)(4) For the 2008 crop year, the Secretary will 
waive the purchase requirement if producers pay a fee equal to 
the administrative fees for CAT and NAP on crops for which no 
coverage has been purchased within 90 days after the enactment 
of this subtitle.
      The conferees intend that participation in pilot crop 
insurance programs may establish linkage, but pilot 
participation would not be necessary to establish linkage if 
CAT or NAP coverage is secured.
      901(g)(5) The Secretary may provide equitable relief to 
producers who unintentionally fail to meet the crop insurance 
or NAP purchase requirements for one or more crops on a farm on 
a case-by-case basis. For 2008, the Secretary will have 
additional authority for producers who failed purchase 
requirements of this subtitle.
      The conferees that the Secretary will use equitable 
relief provisions in circumstances where severe weather events 
result in revised planting intentions for crops for which the 
producer had not obtained a minimum CAT or NAP coverage.
      901(g)(3) The Secretary may waive the crop insurance 
purchase requirement for limited resource, minority and/or 
beginning farmers and provide disaster assistance benefits at a 
level deemed appropriate by the Secretary.
      The conferees do not expect the Secretary to conduct an 
annual signup to participate in the SURE Assistance program. 
The conferees anticipate an effective public information effort 
will be conducted by USDA with the cooperation of the Farm 
Service Agency, the Natural Resources Conservation Service, the 
Risk Management Agency (including crop insurance companies), 
the Cooperative State Research, Education, and Extension 
Service, and State Departments of Agriculture.

Limitations

      901(h) No eligible producer may receive more than 
$100,000 annually in total disaster assistance under this 
section, excluding subsection 901(f). A producer is not 
eligible for benefits under the provision if, as determined by 
the Secretary, such producer's adjusted gross income (as 
defined in section 1001D(a) of the Food Security Act of 1985 or 
any successor provision). Direct attribution of benefits as 
described in subsection (e) and (f) of Section 1001 of the Food 
Security Act of 1985 (7 U.S.C. 1308) or any successor provision 
shall apply.
      The conferees anticipate that the AGI limit would be 
consistent with limitations for the noninsured assistance 
program.
      The conferees note that the Tree Assistance Program (TAP) 
has a separate $100,000 annual limitation.

Period of effectiveness

      Section 901(i) states that the Supplemental Agricultural 
Disaster Assistance program shall cover disaster related losses 
occurring on or before September 30, 2011.
      The conferees expect the Secretary to cover all losses 
for which disaster conditions were evident on or before 
September 30, 2011.

Duplicate payments

      Section 901(j) instructs the Secretary to prevent 
duplicative payments.
      The conferees expect Emergency Conservation Programs 
(ECP), or any other similar program not directed to production 
or revenue losses of the farm, are not intended to be covered 
by this section.

Agricultural Disaster Relief Trust Fund (Trust Fund)

      902(b) The Trust Fund will be funded by an amount equal 
to 3.08 percent of the amounts received in the general fund of 
the Treasury that are attributable to the duties collected on 
articles entered, or withdrawn from warehouse, for consumption 
under the Harmonized Tariff Schedule. Amounts not required to 
meet current withdrawals may be invested in U.S. Treasury 
obligations with interest credited to the trust fund. The Trust 
Fund may also borrow, with interest, as repayable advances sums 
necessary to carry out the purposes of the fund.
      902(b)(3) Funds will not be appropriated to the Trust 
Fund if any changes are made to the operation of the programs 
within the Trust Fund that are not permitted by the Trust Fund.

Jurisdiction

      Section 903 requires legislation in the Senate of the 
United States that amends section 901 or section 902 be 
referred to the Committee on Finance of the Senate.

            II. REVENUE PROVISIONS FOR AGRICULTURE PROGRAMS


                    A. Extension of Custom User Fees


(Sec. 15201 of the conference agreement)

                              PRESENT LAW

      Section 13031 of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c) (``COBRA'') 
authorizes the Secretary of the Treasury to collect certain 
customs services fees. Section 412 of the Homeland Security Act 
of 2002 authorizes the Secretary of the Treasury to delegate 
such authority to the Secretary of Homeland Security. Customs 
user fees include passenger and conveyance processing fees 
(e.g., fees for processing air and sea passengers, commercial 
trucks, rail cars, private aircraft and vessels, commercial 
vessels, dutiable mail packages, barges and bulk carriers, 
cargo, and Customs broker permits) and merchandise processing 
fees. Congress has authorized collection of the passenger and 
conveyance processing fees through December 27, 2014. The 
current authorization for the collection of the merchandise 
processing fees is through December 27, 2014.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement amends Section 13031 of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 to 
extend the passenger and conveyance processing fees through 
September 30, 2017, and extend the merchandise processing fees 
through November 14, 2017. The conference agreement would 
require remittance, by no later than September 25, 2017, of 
passenger and conveyance fees for the period July 1, 2017 
though September 20, 2017. It would also require an estimated 
prepayment of the merchandise processing fees no later than 
September 25, 2017 for merchandise entered on or after October 
1, 2017 and before November 15, 2017. The estimated prepayment 
will be based on the amount paid in the equivalent period of 
the previous year, as determined by the Secretary of the 
Treasury. The conference agreement also holds service users 
harmless for overpayments or underpayments of merchandise 
processing fees by requiring the Secretary of Treasury to 
reconcile the fees paid with the actual fees incurred for 
services rendered. The Secretary of Treasury must then refund 
any overpayments with interest, and make adjustments for any 
underpayments of such merchandise processing fees.

                             EFFECTIVE DATE

      The provision is effective on the date of enactment.

          B. Modifications to Corporate Estimated Tax Payments


(Sec. 15202 of the conference agreement)

                              PRESENT LAW

In general

      In general, corporations are required to make quarterly 
estimated tax payments of their income tax liability. For a 
corporation whose taxable year is a calendar year, these 
estimated tax payments must be made by April 15, June 15, 
September 15, and December 15.

Tax Increase Prevention and Reconciliation Act of 2005 (``TIPRA'')

      TIPRA provided the following special rules:
      In case of a corporation with assets of at least $1 
billion, the payments due in July, August, and September, 2012, 
shall be increased to 106.25 percent of the payment otherwise 
due and the next required payment shall be reduced accordingly.
      In case of a corporation with assets of at least $1 
billion, the payments due in July, August, and September, 2013, 
shall be increased to 100.75 percent of the payment otherwise 
due and the next required payment shall be reduced accordingly.

Subsequent legislation

      Several public laws have been enacted since TIPRA which 
further increase the percentage of payments due under each of 
the two special rules enacted by TIPRA described above.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The provision makes a modification to the corporate 
estimated tax payment rules.
      In case of a corporation with assets of at least $1 
billion, the payments due in July, August, and September, 2012, 
are increased by 7\3/4\ percentage points of the payment 
otherwise due and the next required payment shall be reduced 
accordingly.

                             EFFECTIVE DATE

      The provision is effective on the date of enactment.

                          III. TAX PROVISIONS


                            A. Conservation


1. Exclusion of Conservation Reserve Program Payments from SECA tax for 
    individuals receiving Social Security retirement or disability 
   payments. (Sec. 12202 of the Senate amendment, sec. 15301 of the 
           conference agreement and sec. 1402(a) of the Code)


                              PRESENT LAW

      Generally, the Self-Employment Contributions Act 
(``SECA'') tax is imposed on an individual's net earnings from 
self-employment income within the Social Security wage base. 
Net earnings from self-employment generally mean gross income 
(including the individual's net distributive share of 
partnership income) derived by an individual from any trade or 
business carried on by the individual less applicable 
deductions.\2\
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    \2\Sec. 1402.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision excludes conservation reserve program 
payments from self-employment income for purposes of the SECA 
tax in the case of individuals who are receiving Social 
Security retirement or disability benefits. The treatment of 
conservation reserve program payments received by other 
taxpayers is not changed.
      Effective date.--The provision is effective for payments 
made after December 31, 2007.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

2. Make permanent the special rule encouraging contributions of capital 
gain real property for conservation purposes (Sec. 12203 of the Senate 
 amendment, sec. 15302 of the conference agreement and sec. 170 of the 
                                 Code)


                              PRESENT LAW

Charitable contributions generally

      In general, a deduction is permitted for charitable 
contributions, subject to certain limitations that depend on 
the type of taxpayer, the property contributed, and the donee 
organization. The amount of deduction generally equals the fair 
market value of the contributed property on the date of the 
contribution. Charitable deductions are provided for income, 
estate, and gift tax purposes.\3\
---------------------------------------------------------------------------
    \3\Secs. 170, 2055, and 2522, respectively. Unless otherwise 
provided, all section references are to the Internal Revenue Code of 
1986, as amended (the ``Code'').
---------------------------------------------------------------------------
      In general, in any taxable year, charitable contributions 
by a corporation are not deductible to the extent the aggregate 
contributions exceed 10 percent of the corporation's taxable 
income computed without regard to net operating or capital loss 
carrybacks. For individuals, the amount deductible is a 
percentage of the taxpayer's contribution base, (i.e., 
taxpayer's adjusted gross income computed without regard to any 
net operating loss carryback). The applicable percentage of the 
contribution base varies depending on the type of donee 
organization and property contributed. Cash contributions of an 
individual taxpayer to public charities, private operating 
foundations, and certain types of private nonoperating 
foundations may not exceed 50 percent of the taxpayer's 
contribution base. Cash contributions to private foundations 
and certain other organizations generally may be deducted up to 
30 percent of the taxpayer's contribution base.
      In general, a charitable deduction is not allowed for 
income, estate, or gift tax purposes if the donor transfers an 
interest in property to a charity while also either retaining 
an interest in that property or transferring an interest in 
that property to a noncharity for less than full and adequate 
consideration. Exceptions to this general rule are provided 
for, among other interests, remainder interests in charitable 
remainder annuity trusts, charitable remainder unitrusts, and 
pooled income funds, present interests in the form of a 
guaranteed annuity or a fixed percentage of the annual value of 
the property, and qualified conservation contributions.

Capital gain property

      Capital gain property means any capital asset or property 
used in the taxpayer's trade or business the sale of which at 
its fair market value, at the time of contribution, would have 
resulted in gain that would have been long-term capital gain. 
Contributions of capital gain property to a qualified charity 
are deductible at fair market value within certain limitations. 
Contributions of capital gain property to charitable 
organizations described in section 170(b)(1)(A) (e.g., public 
charities, private foundations other than private non-operating 
foundations, and certain governmental units) generally are 
deductible up to 30 percent of the taxpayer's contribution 
base. An individual may elect, however, to bring all these 
contributions of capital gain property for a taxable year 
within the 50-percent limitation category by reducing the 
amount of the contribution deduction by the amount of the 
appreciation in the capital gain property. Contributions of 
capital gain property to charitable organizations described in 
section 170(b)(1)(B) (e.g., private non-
operating foundations) are deductible up to 20 percent of the 
taxpayer's contribution base.
      For purposes of determining whether a taxpayer's 
aggregate charitable contributions in a taxable year exceed the 
applicable percentage limitation, contributions of capital gain 
property are taken into account after other charitable 
contributions. Contributions of capital gain property that 
exceed the percentage limitation may be carried forward for 
five years.

Qualified conservation contributions

      Qualified conservation contributions are not subject to 
the ``partial interest'' rule, which generally bars deductions 
for charitable contributions of partial interests in property. 
A qualified conservation contribution is a contribution of a 
qualified real property interest to a qualified organization 
exclusively for conservation purposes. A qualified real 
property interest is defined as: (1) the entire interest of the 
donor other than a qualified mineral interest; (2) a remainder 
interest; or (3) a restriction (granted in perpetuity) on the 
use that may be made of the real property. Qualified 
organizations include certain governmental units, public 
charities that meet certain public support tests, and certain 
supporting organizations. Conservation purposes include: (1) 
the preservation of land areas for outdoor recreation by, or 
for the education of, the general public; (2) the protection of 
a relatively natural habitat of fish, wildlife, or plants, or 
similar ecosystem; (3) the preservation of open space 
(including farmland and forest land) where such preservation 
will yield a significant public benefit and is either for the 
scenic enjoyment of the general public or pursuant to a clearly 
delineated Federal, State, or local governmental conservation 
policy; and (4) the preservation of an historically important 
land area or a certified historic structure.
      Qualified conservation contributions of capital gain 
property are subject to the same limitations and carryover 
rules of other charitable contributions of capital gain 
property.

Special rule regarding contributions of capital gain real property for 
        conservation purposes

            In general
      Under a temporary provision that is effective for 
contributions made in taxable years beginning after December 
31, 2005,\4\ the 30-percent contribution base limitation on 
contributions of capital gain property by individuals does not 
apply to qualified conservation contributions (as defined under 
present law). Instead, individuals may deduct the fair market 
value of any qualified conservation contribution to an 
organization described in section 170(b)(1)(A) to the extent of 
the excess of 50 percent of the contribution base over the 
amount of all other allowable charitable contributions. These 
contributions are not taken into account in determining the 
amount of other allowable charitable contributions.
---------------------------------------------------------------------------
    \4\Sec. 170(b)(1)(E).
---------------------------------------------------------------------------
      Individuals are allowed to carry over any qualified 
conservation contributions that exceed the 50-percent 
limitation for up to 15 years.
      For example, assume an individual with a contribution 
base of $100 makes a qualified conservation contribution of 
property with a fair market value of $80 and makes other 
charitable contributions subject to the 50-percent limitation 
of $60. The individual is allowed a deduction of $50 in the 
current taxable year for the non-conservation contributions (50 
percent of the $100 contribution base) and is allowed to carry 
over the excess $10 for up to 5 years. No current deduction is 
allowed for the qualified conservation contribution, but the 
entire $80 qualified conservation contribution may be carried 
forward for up to 15 years.
            Farmers and ranchers
      In the case of an individual who is a qualified farmer or 
rancher for the taxable year in which the contribution is made, 
a qualified conservation contribution is allowable up to 100 
percent of the excess of the taxpayer's contribution base over 
the amount of all other allowable charitable contributions.
      In the above example, if the individual is a qualified 
farmer or rancher, in addition to the $50 deduction for non-
conservation contributions, an additional $50 for the qualified 
conservation contribution is allowed and $30 may be carried 
forward for up to 15 years as a contribution subject to the 
100-percent limitation.
      In the case of a corporation (other than a publicly 
traded corporation) that is a qualified farmer or rancher for 
the taxable year in which the contribution is made, any 
qualified conservation contribution is allowable up to 100 
percent of the excess of the corporation's taxable income (as 
computed under section 170(b)(2)) over the amount of all other 
allowable charitable contributions. Any excess may be carried 
forward for up to 15 years as a contribution subject to the 
100-percent limitation.\5\
---------------------------------------------------------------------------
    \5\Sec. 170(b)(2)(B).
---------------------------------------------------------------------------
      As an additional condition of eligibility for the 100 
percent limitation, with respect to any contribution of 
property in agriculture or livestock production, or that is 
available for such production, by a qualified farmer or 
rancher, the qualified real property interest must include a 
restriction that the property remain generally available for 
such production. (There is no requirement as to any specific 
use in agriculture or farming, or necessarily that the property 
be used for such purposes, merely that the property remain 
available for such purposes.) Such additional condition does 
not apply to contributions made on or before August 17, 2006.
      A qualified farmer or rancher means a taxpayer whose 
gross income from the trade or business of farming (within the 
meaning of section 2032A(e)(5)) is greater than 50 percent of 
the taxpayer's gross income for the taxable year.
            Termination
      The special rule regarding contributions of capital gain 
real property for conservation purposes does not apply to 
contributions made in taxable years beginning after December 
31, 2007.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment makes permanent the special rule 
regarding contributions of capital gain real property for 
conservation purposes.
      Effective date.--The provision is effective for 
contributions made in taxable years beginning after December 
31, 2007.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment by 
extending the special rule regarding contributions of capital 
gain real property for conservation purposes. However, under 
the conference agreement, the special rule does not apply for 
contributions made in taxable years beginning after December 
31, 2009.

 3. Deduction for endangered species recovery expenditures (Sec. 12205 
  of the Senate amendment, sec. 15303 of the conference agreement and 
                         sec. 175 of the Code)


                              PRESENT LAW

      Under present law, a taxpayer engaged in the business of 
farming may treat expenditures that are paid or incurred by him 
during the taxable year for the purpose of soil or water 
conservation in respect of land used in farming, or for the 
prevention of erosion loss of land used in farming, as expenses 
that are not chargeable to capital account. Such expenditures 
are allowed as a deduction, not to exceed 25 percent of the 
gross income derived from farming during the taxable year.\6\ 
Any excess above such percentage is deductible for succeeding 
taxable years, not to exceed 25 percent of the gross income 
derived from farming during such succeeding taxable year.
---------------------------------------------------------------------------
    \6\Sec. 175.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides that expenditures paid or 
incurred by a taxpayer engaged in the business of farming for 
the purpose of achieving site-specific management actions 
pursuant to the Endangered Species Act of 1973\7\ are to be 
treated the same as expenditures for the purpose of soil or 
water conservation in respect of land used in farming, or for 
the prevention of erosion of land used in farming, i.e., such 
expenditures are treated as not chargeable to capital account 
and are deductible subject to the limitation that the deduction 
may not exceed 25 percent of the farmer's gross income derived 
from farming during the taxable year.
---------------------------------------------------------------------------
    \7\16 U.S.C. 1533(f)(B).
---------------------------------------------------------------------------
      Effective date.--The provision is effective for 
expenditures paid or incurred after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment, 
except that the conference agreement provision is effective for 
expenditures paid or incurred after December 31, 2008.

4. Temporary reduction in corporate tax rate for qualified timber gain; 
  timber REIT provisions (Secs. 12212-12217 of the Senate amendment, 
 secs. 15311-15315 of the conference agreement and secs. 856, 857, and 
                           1201 of the Code)


                              PRESENT LAW

Treatment of certain timber gain

      Under present law, if a taxpayer cuts standing timber, 
the taxpayer may elect to treat the cutting as a sale or 
exchange eligible for capital gains treatment (sec. 631(a)). 
The fair market value of the timber on the first day of the 
taxable year in which the timber is cut is used to determine 
the gain attributable to such cutting. Such fair market value 
is also considered the taxpayer's cost of the cut timber for 
all purposes, such as to determine the taxpayer's income from 
later sales of the timber or timber products. Also, if a 
taxpayer disposes of the timber with a retained economic 
interest or makes an outright sale of the timber, the gain is 
eligible for capital gain treatment (sec. 631(b)). This 
treatment under either section 631(a) or (b) requires that the 
taxpayer has owned the timber or held the contract right for a 
period of more than one year.
      Under present law, for taxable years beginning before 
January 1, 2011, the maximum rate of tax on long term capital 
gain (``net capital gain'')\8\ of an individual, estate, or 
trust is 15 percent. Any net capital gain that otherwise would 
be taxed at a 10- or 15-percent rate is taxed at a zero-percent 
rate. These rates apply for purposes of both the regular tax 
and the alternative minimum tax.\9\
---------------------------------------------------------------------------
    \8\Net capital gain is defined as the excess of net long-term 
capital gain over net short-term capital gain for the taxable year. 
Sec. 1222(11).
    \9\Because the entire amount of the capital gain is included in 
alternative minimum taxable income (``AMTI''), for taxpayers subject to 
the alternative minimum tax with AMTI in excess of $112,500 ($150,000 
in the case of a joint return), the gain may cause a reduction in the 
minimum tax exemption amount and thus effectively tax the gain at rates 
of 21.5 or 22 percent. Also the gain may cause the phase-out of certain 
benefits in computing the regular tax.
---------------------------------------------------------------------------
      For taxable years beginning after December 31, 2010, the 
maximum rate of tax on the net capital gain of an individual is 
20 percent. Any net capital gain that otherwise would be taxed 
at a 10- or 15-percent rate is taxed at a 10-percent rate. In 
addition, any gain from the sale or exchange of property held 
more than five years that would otherwise have been taxed at 
the 10-percent rate is taxed at an 8-percent rate. Any gain 
from the sale or exchange of property held more than five years 
and the holding period for which began after December 31, 2000, 
which would otherwise have been taxed at a 20-percent rate, is 
taxed at an 18-percent rate.
      The net capital gain of a corporation is taxed at the 
same rates as ordinary income, up to a maximum rate of 35 
percent.\10\
---------------------------------------------------------------------------
    \10\Secs. 11 and 1201.
---------------------------------------------------------------------------
      Real estate investment trusts (``REITs'') are subject to 
a special taxation regime. Under this regime, a REIT is allowed 
a deduction for dividends paid to its shareholders.\11\ As a 
result, REITs generally do not pay tax on distributed income, 
but the income is taxed to the REIT shareholders. A REIT that 
has long-term capital gain can declare a dividend that 
shareholders are entitled to treat as long-term capital gain.
---------------------------------------------------------------------------
    \11\A distribution to a corporate shareholder out of current or 
accumulated earnings and profits of the corporation is a dividend, 
unless the distribution is a redemption that terminates the 
shareholder's stock interest or reduces the shareholder's interest in 
the distributing corporation to an extent considered to result in 
treatment as a sale or exchange of the shareholder's stock. Secs. 301 
and 302. A distribution in excess of corporate earnings and profits is 
treated by shareholders as first a recovery of their stock basis and 
then, to the extent the distribution exceeds a shareholder's stock 
basis, as a sale or exchange of the stock. Sec. 301. These rules 
generally apply to REITs.
---------------------------------------------------------------------------
      REITs generally are required to distribute 90 percent of 
their taxable income (other than net capital gain). A REIT 
generally must pay tax at regular corporate rates on any 
undistributed income. However, a REIT that has net capital gain 
can retain that gain without distributing it, and the 
shareholders can report the net capital gain as if it were 
distributed to them. In that case the REIT pays a C corporation 
tax on the retained gain, but the shareholders who report the 
income are entitled to a credit or refund for the difference 
between the tax that would be due if the income had been 
distributed and the 35-percent rate paid by the REIT.\12\ In 
effect, net capital gain of a REIT (including but not limited 
to timber gain) can be taxed as net capital gain of the 
shareholders, whether or not the gain is distributed.
---------------------------------------------------------------------------
      \12\Sec. 857(b)(3)(D). The shareholders also obtain a basis 
increase in their REIT stock for the gross amount of the deemed 
distribution that is included in their income less the amount of 
corporate tax deemed paid by them that was paid by the REIT on the 
retained gain. Sec. 857(b)(3)(D)(iii).
---------------------------------------------------------------------------

Other REIT provisions

      A REIT is also subject to a 4-percent excise tax to the 
extent it does not distribute specified percentages of its 
income within any calendar year. The required distributed 
percentage is 85 percent in the case of the REIT ordinary 
income, and 95 percent in the case of the REIT capital gain net 
income (as defined).\13\ The amount of the excess of the 
required distribution over the actual distribution is subject 
to the 4-percent tax.
---------------------------------------------------------------------------
      \13\Section 4981. The definition is the excess of gains from 
sales or exchanges of capital assets over losses from such sales or 
exchanges for the calendar year, reduced by any net ordinary loss.
---------------------------------------------------------------------------
      A REIT generally is restricted to earning certain types 
of passive income. Among other requirements, at least 75 
percent of the gross income of a REIT in a taxable year must 
consist of certain types of real estate related income, 
including rents from real property, income from the sale or 
exchange of real property (including interests in real 
property) that is not stock in trade, inventory, or held by the 
taxpayer primarily for sale to customers in the ordinary course 
of its trade or business, and interest on mortgages secured by 
real property or interests in real property.\14\ Interests in 
real property are specifically defined to exclude mineral, oil, 
or gas royalty interests.\15\ A REIT will not qualify as a 
REIT, and will be taxable as a C corporation, for any taxable 
year if it does not meet this income test.
---------------------------------------------------------------------------
      \14\Section 856(c) and section 1221(a). Income from sales that 
are not prohibited transactions solely by virtue of section 857(b)(6) 
is also qualified REIT income.
      \15\Section 856(c)(5)(C).
---------------------------------------------------------------------------
      Some REITs have been formed to hold land on which trees 
are grown. Upon maturity of the trees, the standing trees are 
sold by the REIT. The Internal Revenue Service has issued 
private letter rulings in particular instances stating that the 
income from the sale of the trees under section 631(b) can 
qualify as REIT real property income because the uncut timber 
and the timberland on which the timber grew is considered real 
property and the sale of uncut trees can qualify as capital 
gain derived from the sale of real property.\16\
---------------------------------------------------------------------------
      \16\Timber income under section 631(b) has also been held to be 
qualified real estate income even if the one year holding period is not 
met. See, e.g., PLR 200052021, see also PLR 199945055, PLR 199927021, 
PLR 8838016. A private letter ruling may be relied upon only by the 
taxpayer to which the ruling is issued. However, such rulings provide 
an indication of administrative practice.
---------------------------------------------------------------------------
      A REIT is subject to a 100-percent excise tax on gain 
from any sale that is a ``prohibited transaction,'' defined as 
a sale of property that is stock in trade, inventory, or 
property held by the taxpayer primarily for sale to customers 
in the ordinary course of its trade or business.\17\ This 
determination is based on facts and circumstances. However, a 
safe-harbor provides that no excise tax is imposed if certain 
requirements are met. In the case of timber property, the safe 
harbor is met, regardless of the number of sales that occur 
during the taxable year, if (i) the REIT has held the property 
for not less than four years in connection with the trade or 
business of producing timber; (ii) the aggregate adjusted bases 
of the property sold (other than foreclosure property) during 
the taxable year does not exceed 10 percent of the aggregate 
bases of all the assets of the REIT as of the beginning of the 
taxable year, and if certain other requirements are met. These 
include requirements that limit the amount of expenditures the 
REIT can make during the 4-year period prior to the sale that 
are includible in the adjusted basis of the property,\18\ that 
require marketing to be done by an independent contractor, and 
that forbid a sales price that is based on the income or 
profits of any person.\19\ There is a similar but separate safe 
harbor for sales of non-timber property, with similar rules, 
including a 4-year holding period requirement and a limit on 
the percentage of the aggregate adjusted basis of property that 
can be sold in one taxable year.\20\
---------------------------------------------------------------------------
      \17\Sections 857(b)(6) and 1221(a)(1). There is an exception for 
certain foreclosure property.
      \18\Aggregate expenditures (other than timberland acquisition 
expenditures) during such period made by the REIT or a partner of the 
REIT, which are includible in basis, may not exceed 30 percent of the 
net selling price in the case of expenditures that are directly related 
to operation of the property for the production of timber or the 
preservation of the property for use as timberland, and may not exceed 
5 percent of the net selling price in the case of expenditures that are 
not directly related to those purposes.
      \19\Section 857(b)(6)(D).
      \20\Section 857(b)(6)(C).
---------------------------------------------------------------------------
      A REIT is not generally permitted to hold securities 
representing more than 10 percent of the voting power or value 
of the securities of any one issuer; nor may more than 5 
percent of the fair market value of REIT assets be securities 
of any one issuer.\21\ However, under an exception, a REIT may 
hold any amount of securities of one or more ``taxable REIT 
subsidiary'' (TRS) corporations, provided that such TRS 
securities do not represent more than 20 percent of the fair 
market value of REIT assets at the end of any quarter. A TRS is 
a C corporation that is subject to regular corporate tax on its 
income and that meets certain other requirements. A taxable 
REIT subsidiary may conduct activities that would produce 
disqualified non-passive or non-real estate income that could 
disqualify the REIT if conducted by a REIT itself. Such 
business could include business relating to processing timber, 
or holding timber products or other assets for sale to 
customers in the ordinary course of business. Such income would 
be subject to regular corporate rates of tax as income of the 
TRS.\22\
---------------------------------------------------------------------------
      \21\Section 856(c)(4)(B)(ii) and (iii). Certain interests are not 
treated as ``securities'' for purposes of the rule forbidding the REIT 
to hold securities representing more than 10 percent of the value of 
securities of any one issuer. Sec. 856(m).
      \22\A 100-percent excise tax is imposed on the amount of certain 
transactions involving a TRS and a REIT, to the extent such amount 
would exceed an arm's length amount under section 482. Sec. 857(b)(7).
---------------------------------------------------------------------------

                               HOUSE BILL

    No provision.

                            SENATE AMENDMENT

Elective deduction for 60 percent of qualified timber gain

      The Senate amendment allows a taxpayer to elect to deduct 
an amount equal to 60 percent of the taxpayer's qualified 
timber gain (or, if less, the net capital gain) for a taxable 
year. In the case of an individual, the deduction reduces 
adjusted gross income. Qualified timber gain means the net gain 
described in section 631(a) and (b) for the taxable year.
      The deduction is allowed in computing the regular tax and 
the alternative minimum tax (including the adjusted current 
earnings of a corporation).
      If a taxpayer elects the deduction, the 40 percent of the 
gain subject to tax is taxed at ordinary income tax rates.\23\
---------------------------------------------------------------------------
      \23\Under the provision, because only 40 percent of the gain is 
included in adjusted gross income and AMTI, only that amount of gain 
would result in the phase-out of tax benefits.
---------------------------------------------------------------------------
      In the case of a pass-thru entity other than a REIT, the 
election may be made separately by each taxpayer subject to tax 
on the gain. The Treasury Department may prescribe rules 
appropriate to apply this provision to gain taken into account 
by a pass-thru entity.
      In the case of a REIT, the election to take the 60-
percent deduction is made by the REIT. If a REIT makes the 
election, then the timber gain is excluded from the computation 
of capital gain or loss of the REIT and can no longer be 
designated as a capital gain dividend to shareholders. Instead, 
the gain is treated as ordinary income for purposes of applying 
the REIT income distribution requirements, but for this purpose 
60-percent of the amount of the gain is deductible by the REIT 
in computing its income. REIT earnings and profits also exclude 
the portion of the timber gain that is deductible. Thus, 40 
percent of the gain is subject to the REIT distribution 
requirements,\24\ and 40 percent of the gain increases REIT 
earnings and profits. Accordingly, because REIT earnings and 
profits have been increased by the 40-percent amount, there is 
sufficient earnings and profits that a distribution of that 40-
percent amount that otherwise qualifies as a dividend would be 
treated as an ordinary dividend distribution to shareholders. 
Since this dividend is from a REIT and is not derived from an 
entity that was taxed as a C corporation, it would not qualify 
for the current 15-percent qualified dividend rates and would 
be taxed at the ordinary income rates of the shareholders.
---------------------------------------------------------------------------
      \24\For purposes of the section 4981 excise tax on undistributed 
REIT income, the amount treated as subject to the 95 percent 
distribution requirement is the 40 percent of timber gain income that 
remains after allowing the deduction.
---------------------------------------------------------------------------
      REIT shareholders obtain an upward basis adjustment in 
their REIT interests, equal to the 60 percent of the timber 
gain that is deductible by the electing REIT. Because the 60 
percent of timber gain that was deductible by the REIT does not 
increase REIT earnings and profits, a distribution of such 60 
percent to the shareholder generally will not be treated as a 
dividend (in the absence of other retained earnings) but as a 
return of basis under the general rules of section 301(c). 
Because the shareholders' basis has been increased by this 60 
percent, this distribution would not exceed the shareholders' 
basis and thus would be nontaxable return of basis, rather than 
capital gain in excess of basis. However, if a REIT shareholder 
has obtained such an upward basis adjustment for a REIT 
interest and disposes of the interest before having held the 
interest for at least 6 months, then any loss on disposition of 
the interest is disallowed to the extent of such upward basis 
adjustment.

Additional REIT provisions

            Timber gain qualified REIT income without regard to 1 year 
                    holding period
      The Senate amendment specifically includes timber gain 
under section 631(a) as a category of statutorily recognized 
qualified real estate income of a REIT if the cutting is 
provided by a taxable REIT subsidiary, and also includes gain 
recognized under section 631(b). For purposes of such qualified 
income treatment under those provisions, the requirement of a 
one-year holding period is removed. Thus, for example, a REIT 
can acquire timber property and harvest the timber on the 
property within one year of the acquisition, with the resulting 
income being qualified real estate income for REIT 
qualification purposes, even though such income is not eligible 
for long-term capital gain treatment under sections 631(a) or 
(b). The provision specifically provides, however, that for all 
purposes of the Code, such income shall not be considered to be 
gain described in section 1221(a)(1), that is, it shall not be 
treated as income from the sale of stock in trade, inventory, 
or property held by the REIT primarily for sale to customers in 
the ordinary course of the REITs trade or business.
      For purposes of determining REIT income, if the cutting 
is done by a taxable REIT subsidiary, the cut timber is deemed 
sold on the first day of the taxable year to the taxable REIT 
subsidiary (with subsequent gain, if any, attributable to the 
taxable REIT subsidiary).
            REIT prohibited transaction safe harbor for timber property
      For sales to a qualified organization for conservation 
purposes, as defined in section 170(h), the provision reduces 
to two years the present law four-year holding period 
requirement under section 857(b)(6)(D), which provides a safe 
harbor from ``prohibited transaction'' treatment for certain 
timber property sales. Also, in the case of such sales, the 
safe-harbor limitations on how much may be added, within the 
four-year period prior to the date of sale, to the aggregate 
adjusted basis of the property, are changed to refer to the 
two-year period prior to the date of sale.
      The Senate amendment also removes the safe-harbor 
requirement that marketing of the property must be done by an 
independent contractor, and permits a taxable REIT subsidiary 
of the REIT to perform the marketing.
      The Senate amendment states that any gain that is 
eligible for the timber property safe harbor is considered for 
all purposes of the Code not to be described in section 
1221(a)(1), that is, it shall not be treated as income from the 
sale of stock in trade, inventory, or property held by the REIT 
primarily for sale to customers in the ordinary course of the 
REITs trade or business.
            Special rules for timber REITs
      The Senate amendment contains several provisions 
applicable only to a ``timber REIT,'' defined as a REIT in 
which more than 50 percent of the value of its total assets 
consists of real property held in connection with the trade or 
business of producing timber.
      First, mineral royalty income from real property owned by 
a timber REIT and held, or once held, in connection with the 
trade or business of producing timber by such REIT, is included 
as qualifying real estate income for purposes of the REIT 
income tests.
      Second, a timber REIT is permitted to hold TRS securities 
with a value up to 25 percent, (rather than 20 percent) of the 
value of the total assets of the REIT.

Effective date

      The provision applies to taxable years beginning after 
the date of enactment, but does not apply after the last day of 
the first taxable year beginning after the date of enactment.

                          CONFERENCE AGREEMENT

Corporate rate reduction for qualified timber gain

      The conference agreement provides a 15-percent 
alternative tax rate for corporations on the portion of a 
corporation's taxable income that consists of qualified timber 
gain (or, if less, the net capital gain) for a taxable 
year.\25\
---------------------------------------------------------------------------
    \25\The conference agreement does not contain the 60 percent 
deduction for qualified timber income that was contained in the Senate 
amendment, nor does it make any change to section 4981.
---------------------------------------------------------------------------
      The alternative 15-percent tax rate applies to both the 
regular tax and the alternative minimum tax.
      Qualified timber gain means the net gain described in 
section 631(a) and (b) for the taxable year, determined by 
taking into account only trees held more than 15 years.
      Effective date.--The provision applies to taxable years 
ending after the date of enactment and beginning on or before 
the date which is one year after the date of enactment. In the 
case of a taxable year that includes the date of enactment, 
qualified timber gain may not exceed the qualified timber gain 
properly taken into account for the portion of the year after 
that date. In the case of a taxable year that includes the date 
that is one year after the date of enactment, qualified timber 
gain may not exceed the qualified timber gain properly taken 
into account for the portion of the year on or before that 
date.

Additional REIT provisions

      The conference agreement follows the additional REIT 
provisions in the Senate amendment.
      Effective date.--The additional REIT provisions apply 
only for the first taxable year of the REIT that begins after 
the date of enactment and before the date that is one year 
after the date of enactment. The provisions terminate after 
that time.

  5. Qualified forestry conservation bonds (Sec. 12808 of the Senate 
amendment, and sec. 15316 of the conference agreement and new secs. 54A 
                          and 54B of the Code)


                              PRESENT LAW

Tax-exempt bonds

            In general
      Subject to certain Code restrictions, interest on bonds 
issued by State and local government generally is excluded from 
gross income for Federal income tax purposes. Bonds issued by 
State and local governments may be classified as either 
governmental bonds or private activity bonds. Governmental 
bonds are bonds the proceeds of which are primarily used to 
finance governmental functions or which are repaid with 
governmental funds. Private activity bonds are bonds in which 
the State or local government serves as a conduit providing 
financing to nongovernmental persons. For this purpose, the 
term ``nongovernmental person'' generally includes the Federal 
Government and all other individuals and entities other than 
States or local governments. The exclusion from income for 
interest on State and local bonds does not apply to private 
activity bonds, unless the bonds are issued for certain 
permitted purposes (``qualified private activity bonds'') and 
other Code requirements are met.
            Private activity bond tests
      Present law provides two tests for determining whether a 
State or local bond is in substance a private activity bond, 
the private business test and the private loan test.\26\
---------------------------------------------------------------------------
      \26\Sec. 141(b) and (c).
---------------------------------------------------------------------------
            Private business tests
      Private business use and private payments result in State 
and local bonds being private activity bonds if both parts of 
the two-part private business test are satisfied--
            1. More than 10 percent of the bond proceeds is to 
        be used (directly or indirectly) by a private business 
        (the ``private business use test''); and
            2. More than 10 percent of the debt service on the 
        bonds is secured by an interest in property to be used 
        in a private business use or to be derived from 
        payments in respect of such property (the ``private 
        payment test'').\27\
---------------------------------------------------------------------------
      \27\The 10-percent private business use and payment threshold is 
reduced to five percent for private business uses that are unrelated to 
a governmental purpose also being financed with proceeds of the bond 
issue. In addition, as described more fully below, the 10-percent 
private business use and private payment thresholds are phased-down for 
larger bond issues for the financing of certain ``output'' facilities. 
The term output facility includes electric generation, transmission, 
and distribution facilities.
---------------------------------------------------------------------------
      Private business use generally includes any use by a 
business entity (including the Federal government), which 
occurs pursuant to terms not generally available to the general 
public. For example, if bond-financed property is leased to a 
private business (other than pursuant to certain short-term 
leases for which safe harbors are provided under Treasury 
regulations), bond proceeds used to finance the property are 
treated as used in a private business use, and rental payments 
are treated as securing the payment of the bonds. Private 
business use also can arise when a governmental entity 
contracts for the operation of a governmental facility by a 
private business under a management contract that does not 
satisfy Treasury regulatory safe harbors regarding the types of 
payments made to the private operator and the length of the 
contract.\28\
---------------------------------------------------------------------------
      \28\See Treas. Reg. sec. 1.141-3(b)(4) and Rev. Proc. 97-13, 
1997-1 C.B. 632.
---------------------------------------------------------------------------
            Private loan test
      The second standard for determining whether a State or 
local bond is a private activity bond is whether an amount 
exceeding the lesser of (1) five percent of the bond proceeds 
or (2) $5 million is used (directly or indirectly) to finance 
loans to private persons. Private loans include both business 
and other (e.g., personal) uses and payments by private 
persons; however, in the case of business uses and payments, 
all private loans also constitute private business uses and 
payments subject to the private business test. Present law 
provides that the substance of a transaction governs in 
determining whether the transaction gives rise to a private 
loan. In general, any transaction which transfers tax ownership 
of property to a private person is treated as a loan.
            Qualified private activity bonds
      As stated, interest on private activity bonds is taxable 
unless the bonds meet the requirements for qualified private 
activity bonds. Qualified private activity bonds permit States 
or local governments to act as conduits providing tax-exempt 
financing for certain private activities. The definition of 
qualified private activity bonds includes an exempt facility 
bond, or qualified mortgage, veterans' mortgage, small issue, 
redevelopment, 501(c)(3), or student loan bond (sec. 141(e)). 
The definition of exempt facility bond includes bonds issued to 
finance certain transportation facilities (airports, ports, 
mass commuting, and high-speed intercity rail facilities); 
qualified residential rental projects; privately owned and/or 
operated utility facilities (sewage, water, solid waste 
disposal, and local district heating and cooling facilities, 
certain private electric and gas facilities, and hydroelectric 
dam enhancements); public/private educational facilities; 
qualified green building and sustainable design projects; and 
qualified highway or surface freight transfer facilities (sec. 
142(a)).
      In most cases, the aggregate volume of these tax-exempt 
private activity bonds is restricted by annual aggregate volume 
limits imposed on bonds issued by issuers within each State. 
For calendar year 2007, the State volume cap, which is indexed 
for inflation, equals $85 per resident of the State, or $256.24 
million, if greater.
            Arbitrage restrictions
      The tax exemption for State and local bonds also does not 
apply to any arbitrage bond.\29\ An arbitrage bond is defined 
as any bond that is part of an issue if any proceeds of the 
issue are reasonably expected to be used (or intentionally are 
used) to acquire higher yielding investments or to replace 
funds that are used to acquire higher yielding investments.\30\ 
In general, arbitrage profits may be earned only during 
specified periods (e.g., defined ``temporary periods'') before 
funds are needed for the purpose of the borrowing or on 
specified types of investments (e.g., ``reasonably required 
reserve or replacement funds''). Subject to limited exceptions, 
investment profits that are earned during these periods or on 
such investments must be rebated to the Federal Government.
---------------------------------------------------------------------------
      \29\Sec. 103(a) and (b)(2).
      \30\Sec. 148.
---------------------------------------------------------------------------
            Indian tribal governments
      Indian tribal governments are provided with a tax status 
similar to State and local governments for specified purposes 
under the Code.\31\ Among the purposes for which a tribal 
government is treated as a State is the issuance of tax-exempt 
bonds. However, bonds issued by tribal governments are subject 
to limitations not imposed on State and local government 
issuers. Tribal governments are authorized to issue tax-exempt 
bonds only if substantially all of the proceeds are used for 
essential governmental functions or certain manufacturing 
facilities.\32\
---------------------------------------------------------------------------
      \31\Sec. 7871.
      \32\Sec. 7871(c).
---------------------------------------------------------------------------

Clean renewable energy bonds

      As an alternative to traditional tax-exempt bonds, States 
and local governments may issue clean renewable energy bonds 
(``CREBs''). CREBs are defined as any bond issued by a 
qualified issuer if, in addition to the requirements discussed 
below, 95 percent or more of the proceeds of such bonds are 
used to finance capital expenditures incurred by qualified 
borrowers for qualified projects. ``Qualified projects'' are 
facilities that qualify for the tax credit under section 45 
(other than Indian coal production facilities), without regard 
to the placed-in-service date requirements of that section.\33\ 
The term ``qualified issuers'' includes (1) governmental bodies 
(including Indian tribal governments); (2) mutual or 
cooperative electric companies (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 guarantee under the Rural 
Electrification Act); and (3) clean renewable energy bond 
lenders. The term ``qualified borrower'' includes a 
governmental body (including an Indian tribal government) and a 
mutual or cooperative electric company. A clean renewable 
energy bond lender means 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.
---------------------------------------------------------------------------
      \33\In addition, Notice 2006-7 provides that qualified projects 
include any facility owned by a qualified borrower that is functionally 
related and subordinate to any facility described in section 45(d)(1) 
through (d)(9) and owned by such qualified borrower.
---------------------------------------------------------------------------
      Unlike tax-exempt bonds, CREBs are not interest-bearing 
obligations. Rather, the taxpayer holding CREBs on a credit 
allowance date is entitled to a tax credit. The amount of the 
credit is determined by multiplying the bond's credit rate by 
the face amount on the holder's bond. The credit rate on the 
bonds is determined by the Secretary and is to be a rate that 
permits issuance of CREBs without discount and interest cost to 
the qualified issuer. The credit accrues quarterly and is 
includible in gross income (as if it were an interest payment 
on the bond), and can be claimed against regular income tax 
liability and alternative minimum tax liability.
      CREBs are subject to a maximum maturity limitation. The 
maximum maturity is the term which the Secretary estimates will 
result in the present value of the obligation to repay the 
principal on a CREBs being equal to 50 percent of the face 
amount of such bond. In addition, the Code requires level 
amortization of CREBs during the period such bonds are 
outstanding.
      CREBs also are subject to the arbitrage requirements of 
section 148 that apply to traditional tax-exempt bonds. 
Principles under section 148 and the regulations thereunder 
apply for purposes of determining the yield restriction and 
arbitrage rebate requirements applicable to CREBs.
      In addition to the above requirements, at least 95 
percent of the proceeds of CREBs must be spent on qualified 
projects within the five-year period that begins on the date of 
issuance. To the extent less than 95 percent of the proceeds 
are used to finance qualified projects during the five-year 
spending period, bonds will continue to qualify as CREBs if 
unspent proceeds are used within 90 days from the end of such 
five-year period to redeem any ``nonqualified bonds.'' The 
five-year spending period may be extended by the Secretary upon 
the qualified issuer's request demonstrating that the failure 
to satisfy the five-year requirement is due to reasonable cause 
and the projects will continue to proceed with due diligence.
      Issuers of CREBs are required to report issuance to the 
IRS in a manner similar to the information returns required for 
tax-exempt bonds. There is a national CREB limitation of $1.2 
billion. The maximum amount of CREBs that may be allocated to 
qualified projects of governmental bodies is $750 million. 
CREBs must be issued before January 1, 2009.

                               HOUSE BILL

      No provision

                            SENATE AMENDMENT

      The Senate amendment creates a new category of tax-credit 
bonds, qualified forestry conservation bonds. Qualified 
forestry conservation bonds are bonds issued by qualified 
issuers to finance qualified forestry conservation projects. 
The term ``qualified issuer'' means a State or a section 
501(c)(3) organization. The term ``qualified forestry 
conservation project'' means the acquisition by a State or 
section 501(c)(3) organization from an unrelated person of 
forest and forest land that meets the following qualifications: 
(1) some portion of the land acquired must be adjacent to 
United States Forest Service Land; (2) at least half of the 
land acquired must be transferred to the United States Forest 
Service at no net cost and not more than half of the land 
acquired may either remain with or be donated to a State; (3) 
all of the land must be subject to a habitat conservation plan 
for native fish approved by the United States Fish and Wildlife 
Service; and (4) the amount of acreage acquired must be at 
least 40,000 acres.
      There is a national limitation on qualified forestry 
conservation bonds of $500 million. Allocations of qualified 
forestry conservation bonds are among qualified forestry 
conservation projects in the manner the Secretary determines 
appropriate so as to ensure that all of such limitation is 
allocated before the date that is 24 months after the date of 
enactment. The Senate amendment also requires the Secretary to 
solicit applications for allocations of qualified forestry 
conservation bonds no later than 90 days after the date of 
enactment.
      The Senate amendment requires 100 percent of the 
available project proceeds of qualified forestry conservation 
bonds to be used within the three-year period that begins on 
the date of issuance. The Senate amendment defines available 
project proceeds as proceeds from the sale of the issue less 
issuance costs (not to exceed two percent) and any investment 
earnings on such sale proceeds. To the extent less than 100 
percent of the available project proceeds are used to finance 
qualified forestry conservation purposes during the three-year 
spending period, bonds will continue to qualify as qualified 
forestry conservation bonds if unspent proceeds are used within 
90 days from the end of such three-year period to redeem bonds. 
The three-year spending period may be extended by the Secretary 
upon the issuer's request demonstrating that the failure to 
satisfy the three-year requirement is due to reasonable cause 
and the projects will continue to proceed with due diligence.
      Qualified forestry conservation bonds generally are 
subject to the arbitrage requirements of section 148. However, 
available project proceeds invested during the three-year 
spending period are not subject to the arbitrage restrictions 
(i.e., yield restriction and rebate requirements). In addition, 
amounts invested in a reserve fund are not subject to the 
arbitrage restrictions to the extent: (1) such fund is funded 
in a manner reasonably expected to result in an amount not 
greater than an amount necessary to repay the issue; and (2) 
the yield on such fund is not greater than the average annual 
interest rate of tax-exempt obligations having a term of 10 
years or more that are issued during the month the qualified 
forestry conservation bonds are issued.
      The maturity of qualified forestry conservation bonds is 
the term that the Secretary estimates will result in the 
present value of the obligation to repay the principal on such 
bonds being equal to 50 percent of the face amount of such 
bonds, using as a discount rate the average annual interest 
rate of tax-exempt obligations having a term of 10 years or 
more that are issued during the month the qualified forestry 
conservation bonds are issued.
      As with present-law tax credit bonds, the taxpayer 
holding qualified forestry conservation bonds on a credit 
allowance date is entitled to a tax credit. The credit rate is 
set by the Secretary at 70 percent of the rate that would 
permit issuance of qualified forestry conservation bonds 
without discount and interest cost to the issuer. The amount of 
the tax credit to the holder is determined by multiplying the 
bond's credit rate by the face amount on the holder's bond. The 
credit accrues quarterly, is includible in gross income (as if 
it were an interest payment on the bond), and can be claimed 
against regular income tax liability and alternative minimum 
tax liability. Unused credits in one year may be carried 
forward to succeeding taxable years. In addition, credits may 
be separated from the ownership of the underlying bond similar 
to how interest coupons can be stripped for interest-bearing 
bonds.
      Issuers of qualified forestry conservation bonds are 
required to certify that the financial disclosure requirements 
that apply to State and local bonds offered for sale to the 
general public are satisfied with respect to any Federal, 
State, or local government official directly involved with the 
issuance of such bonds. The Senate amendment authorizes the 
Secretary to impose additional financial reporting requirements 
by regulation.
      Effective date.--The provision is effective for bonds 
issued after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement includes the Senate amendment 
with modifications. Under the conference agreement, the credit 
rate on qualified forestry conservation bonds is determined by 
the Secretary at the rate that permits issuance of such bonds 
without discount and interest cost to the qualified issuer.
      The conference agreement also provides that a qualified 
issuer receiving an allocation to issue qualified forestry 
conservation bonds may, in lieu of issuing bonds, elect to 
treat such allocation as a deemed payment of tax (regardless of 
whether the issuer is subject to tax under chapter 1 of the 
Code) that is equal to 50 percent of the amount of such 
allocation. An election to treat an allocation of qualified 
forestry conservation bonds as a deemed payment is not valid 
unless the qualified issuer certifies to the Secretary that any 
payment of tax refunded to the issuer will be used exclusively 
for one or more qualified forestry conservation purposes. The 
deemed tax payment may not be used as an offset or credit 
against any other tax and shall not accrue interest. In 
addition, if the qualified issuer fails to use any portion of 
the overpayment for qualified forestry conservation purposes, 
the issuer shall be liable to the United States in an amount 
equal to such portion, plus interest, for the period from the 
date such portion was refunded to the date such amount is paid.
      Effective date.--The provision is effective for bonds 
issued after the date of enactment.

                          B. Energy Provisions


   1. Credit for production of cellulosic biofuel (Sec. 12312 of the 
Senate amendment, sec. 15321 of the conference agreement and sec. 40 of 
                               the Code)


                              PRESENT LAW

      In the case of ethanol, the Code provides a separate 10-
cents-per-gallon credit for up to 15 million gallons per year 
for small producers, defined generally as persons whose 
production capacity does not exceed 60 million gallons per 
year. The ethanol must (1) be sold by such producer to another 
person (a) for use by such other person in the production of a 
qualified alcohol fuel mixture in such person's trade or 
business (other than casual off-farm production), (b) for use 
by such other person as a fuel in a trade or business, or, (c) 
who sells such ethanol at retail to another person and places 
such ethanol in the fuel tank of such other person; or (2) used 
by the producer for any purpose described in (a), (b), or (c). 
A cooperative may pass through the small ethanol producer 
credit to its patrons. The credit is includible in income and 
is treated as a general business credit, subject to the 
ordering rules and carryforward/carryback rules that apply to 
business credits generally. The alcohol fuels tax credit, of 
which the small producer credit is a part, is scheduled to 
expire after December 31, 2010.
      Under the Renewable Fuels Standard Program all renewable 
fuel produced or imported on or after September 1, 2007 must 
have a renewable identification number (RIN) associated with 
it. Producers and importers must generate RINs to represent all 
the renewable fuel they produce or import and provide those 
RINs to the EPA. For cellulosic ethanol, 2.5 RINs are generated 
for every gallon produced.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides an income tax credit for 
each gallon of qualified cellulosic fuel production of the 
producer for the taxable year. The amount of the credit per 
gallon is $1.25 less the credit amount for alcohol fuel and the 
credit amount for small ethanol producers as of the date the 
cellulosic biofuel fuel is produced. This credit is in addition 
to any credit that may be available under section 40 of the 
Code.
      Qualified cellulosic biofuel production is any cellulosic 
biofuel which is produced by the taxpayer and which is sold by 
such producer to another person (a) for use by such other 
person in the production of a qualified biofuel fuel mixture in 
such person's trade or business (other than casual off-farm 
production), (b) for use by such other person as a fuel in a 
trade or business, or, (c) who sells such biofuel at retail to 
another person and places such biofuel in the fuel tank of such 
other person; or (2) used by the producer for any purpose 
described in (a), (b), or (c).
      Cellulosic biofuel means any alcohol, ether, ester, or 
hydrocarbon that is produced in the United States and is 
derived from any lignocellulosic or hemicellulosic matter that 
is available on a renewable or recurring basis. However, it 
does not include any alcohol with a proof of less than 150. 
Examples of lignocellulosic or hemicellulosic matter that is 
available of a renewable or recurring basis include dedicated 
energy crops and trees, wood and wood residues, plants, 
grasses, agricultural residues, fibers, animal wastes and other 
waste materials, and municipal solid waste. A qualified 
cellulosic biofuel mixture is a mixture of cellulosic biofuel 
and any petroleum fuel product which is sold by the person 
producing such mixture to any person for use as a fuel, or is 
used as a fuel by the person producing such mixture.
      The credit terminates on April 1, 2015.
      The Senate amendment waives the 15 million gallon 
limitation of the small ethanol producer credit for cellulosic 
biofuel that is ethanol.
      Effective date.--The provision is effective for fuel 
produced after December 31, 2007.

                          CONFERENCE AGREEMENT

      The conference agreement adds a new component to section 
40 of the Code, the ``cellulosic biofuel producer credit.'' 
This credit is a nonrefundable income tax credit for each 
gallon of qualified cellulosic fuel production of the producer 
for the taxable year. The amount of the credit per gallon is 
$1.01, except in the case of cellulosic biofuel that is 
alcohol. In the case of cellulosic biofuel that is alcohol, the 
$1.01 credit amount is reduced by (1) the credit amount 
applicable for such alcohol under the alcohol mixture credit as 
in effect at the time cellulosic biofuel is produced and (2) in 
the case of cellulosic biofuel that is ethanol, the credit 
amount for small ethanol producers as in effect at the time the 
cellulosic biofuel fuel is produced. The reduction applies 
regardless of whether the producer claims the alcohol mixture 
credit or small ethanol producer credit with respect to the 
cellulosic alcohol. When the alcohol mixture credit and small 
ethanol producer credit expire after December 31, 2010, 
cellulosic biofuel will receive the $1.01 without reduction.
      ``Qualified cellulosic biofuel production'' is any 
cellulosic biofuel which is produced by the taxpayer and which 
is sold by the taxpayer to another person (a) for use by such 
other person in the production of a qualified biofuel fuel 
mixture in such person's trade or business (other than casual 
off-farm production), (b) for use by such other person as a 
fuel in a trade or business, or, (c) who sells such biofuel at 
retail to another person and places such biofuel in the fuel 
tank of such other person; or (2) used by the producer for any 
purpose described in (a), (b), or (c).
      ``Cellulosic biofuel'' means any liquid fuel that (1) is 
produced in the United States and used as fuel in the United 
States,\34\ (2) is derived from any lignocellulosic or 
hemicellulosic matter that is available on a renewable or 
recurring basis and (3) meets the registration requirements for 
fuels and fuel additives established by the Environmental 
Protection Agency under section 211 of the Clean Air Act. Thus, 
to qualify for the credit the fuel must be approved by the 
Environmental Protection Agency. Cellulosic biofuel does not 
include any alcohol with a proof of less than 150. Examples of 
lignocellulosic or hemicellulosic matter that is available of a 
renewable or recurring basis include dedicated energy crops and 
trees, wood and wood residues, plants, grasses, agricultural 
residues, fibers, animal wastes and other waste materials, and 
municipal solid waste.
---------------------------------------------------------------------------
      \34\For this purpose, ``United States'' includes any possession 
of the United States.
---------------------------------------------------------------------------
      A ``qualified cellulosic biofuel mixture'' is a mixture 
of cellulosic biofuel and a special fuel or of cellulosic 
biofuel and gasoline, which is sold by the person producing 
such mixture to any person for use as a fuel, or is used as a 
fuel by the person producing such mixture. The term ``special 
fuel'' includes any liquid fuel (other than gasoline) which is 
suitable for use in an internal combustion engine.
      The cellulosic biofuel producer credit terminates on 
December 31, 2012. The conference agreement requires cellulosic 
biofuel producers to be registered with the IRS. The cellulosic 
biofuel producer credit cannot be claimed unless the taxpayer 
is registered with the IRS as a producer of cellulosic biofuel.
      With respect to the small ethanol producer credit, the 
conference agreement also waives the 15 million gallon 
limitation for cellulosic biofuel that is ethanol. Thus the 
small ethanol producer credit may be claimed for cellulosic 
ethanol in excess of 15 million gallons. The other requirements 
for the small ethanol producer credit continue to apply for 
ethanol other than cellulosic ethanol, including the 15 million 
gallon limitation.
      Under the conference agreement, cellulosic biofuel and 
alcohols cannot qualify as biodiesel, renewable diesel, or 
alternative fuel for purposes of the credit and payment 
provisions relating to those fuels.
      Effective date.--The provision is effective for fuel 
produced after December 31, 2008.

   2. Comprehensive study of biofuels (sec. 15322 of the conference 
                               agreement)


                              PRESENT LAW

      The National Academy of Sciences serves to investigate, 
examine, experiment and report upon any subject of science 
whenever called upon to do so by any department of the 
government. The National Research Council is part of the 
National Academies. The National Research Council was organized 
by the National Academy of Sciences in 1916 and is its 
principal operating agency for conducting science policy and 
technical work.

                               HOUSE BILL

      No provision.\35\
---------------------------------------------------------------------------
      \35\A provision requiring a comprehensive study on biofuels was 
included in section 402 of H.R. 5351, passed by the House on February 
27, 2008.
---------------------------------------------------------------------------

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement requires the Secretary, in 
consultation with the Department of Energy and the Department 
of Agriculture and the Environmental Protection Agency, to 
enter into an agreement with the National Academy of Sciences 
to produce an analysis of current scientific findings to 
determine:
          1. Current biofuels production, as well as 
        projections for future production;
          2. The maximum amount of biofuels production capable 
        on U.S. forests and farmlands, including the current 
        quantities and character of the feedstocks and 
        including such information as regional forest 
        inventories that are commercially available, used in 
        the production of biofuels;
          3. The domestic effects of a increase in biofuels 
        production on, for example, (a) the price of fuel, (b) 
        the price of land in rural and suburban communities, 
        (c) crop acreage and other land use, (d) the 
        environment, due to changes in crop acreage, fertilizer 
        use, runoff, water use, emissions from vehicles 
        utilizing biofuels, and other factors, (e) the price of 
        feed, (f) the selling price of grain crops, and forest 
        products, (g) exports and imports of grains and forest 
        products, (h) taxpayers, through cost or savings to 
        commodity crop payments, and (i) the expansion of 
        refinery capacity;
          4. The ability to convert corn ethanol plants for 
        other uses, such as cellulosic ethanol or biodiesel;
          5. A comparative analysis of corn ethanol versus 
        other biofuels and renewable energy sources, 
        considering cost, energy output, and ease of 
        implementation;
          6. The impact of the credit for production of 
        cellulosic biofuel (as established by this Act) on the 
        regional agricultural and silvicultural capabilities of 
        commercially available forest inventories; and
          7. The need for additional scientific inquiry, and 
        specific areas of interest for future research.
      The Secretary shall submit an initial report of the 
findings to the Congress not later than six months after the 
date of enactment, and a final report not later than 12 months 
after the date of enactment. In the case of information 
relating to the impact of the tax credits established by the 
Act on the regional agricultural and silvicultural capabilities 
of commercially available forest inventories, the initial 
report is due 36 months after the date of enactment and the 
final report is due 42 months after the date of enactment.
      Effective date.--The provision is effective on the date 
of enactment.

3. Modification of alcohol credit (Sec. 12315 of the Senate amendment, 
and sec. 15331 of the conference agreement and secs. 40 and 6426 of the 
                                 Code)


                              PRESENT LAW

Income tax credit

      The alcohol fuels credit is the sum of three credits: the 
alcohol mixture credit, the alcohol credit, and the small 
ethanol producer credit. Generally, the alcohol fuels credit 
expires after December 31, 2010.\36\
---------------------------------------------------------------------------
      \36\The alcohol fuels credit is unavailable when, for any period 
before January 1, 2011, the tax rates for gasoline and diesel fuels 
drop to 4.3 cents per gallon.
---------------------------------------------------------------------------
      Taxpayers are eligible for an income tax credit of 51 
cents per gallon of ethanol (60 cents in the case of alcohol 
other than ethanol) used in the production of a qualified 
mixture (the ``alcohol mixture credit''). A ``qualified 
mixture'' means a mixture of alcohol and gasoline, (or of 
alcohol and a special fuel) sold by the taxpayer as fuel, or 
used as fuel by the taxpayer producing such mixture. The term 
``alcohol'' includes methanol and ethanol but does not include 
(1) alcohol produced from petroleum, natural gas, or coal 
(including peat), or (2) alcohol with a proof of less than 150.
      Taxpayers may reduce their income taxes by 51 cents for 
each gallon of ethanol, which is not in a mixture with gasoline 
or other special fuel, that they sell at the retail level as 
vehicle fuel or use themselves as a fuel in their trade or 
business (``the alcohol credit''). For alcohol other than 
ethanol, the rate is 60 cents per gallon.\37\
---------------------------------------------------------------------------
      \37\In the case of any alcohol (other than ethanol) with a proof 
that is at least 150 but less than 190, the credit is 45 cents per 
gallon (the ``low-proof blender amount''). For ethanol with a proof 
that is at least 150 but less than 190, the low-proof blender amount is 
37.78 cents.
---------------------------------------------------------------------------
      In the case of ethanol, the Code provides an additional 
10-cents-per-gallon credit for up to 15 million gallons per 
year for small producers. Small producer is defined generally 
as persons whose production capacity does not exceed 60 million 
gallons per year. The ethanol must (1) be sold by such producer 
to another person (a) for use by such other person in the 
production of a qualified alcohol fuel mixture in such person's 
trade or business (other than casual off-farm production), (b) 
for use by such other person as a fuel in a trade or business, 
or, (c) who sells such ethanol at retail to another person and 
places such ethanol in the fuel tank of such other person; or 
(2) used by the producer for any purpose described in (a), (b), 
or (c). A cooperative may pass through the small ethanol 
producer credit to its patrons.
      The alcohol fuels credit is includible in income and is 
treated as a general business credit, subject to the ordering 
rules and carryforward/carryback rules that apply to business 
credits generally. The credit is allowable against the 
alternative minimum tax.

Excise tax credit and payment provision for alcohol fuel mixtures

      The Code also provides an excise tax credit and payment 
provision for alcohol fuel mixtures. Like the income tax 
credit, the amount of the credit is 60 cents per gallon of 
alcohol used as part of a qualified mixture (51 cents in the 
case of ethanol). For purposes of the excise tax credit and 
payment provisions, alcohol includes methanol and ethanol but 
does not include (1) alcohol produced from petroleum, natural 
gas, or coal (including peat), or (2) alcohol with a proof of 
less than 190. Such term also includes an alcohol gallon 
equivalent of ethyl tertiary butyl either or other ethers 
produced from alcohol. In lieu of a tax credit, a person making 
a qualified mixture eligible for the credit may seek a payment 
from the Secretary in the amount of the credit. The payment 
provisions and credits are coordinated such that the incentive 
is not claimed more than once for each gallon of alcohol used 
as part of qualified mixture.

                    Renewable Fuels Standard Program

      Under the Renewable Fuels Standard Program all renewable 
fuel produced or imported on or after September 1, 2007 must 
have a renewable identification number (RIN) associated with 
it. Producers and importers must generate RINs to represent all 
the renewable fuel they produce or import and provide those 
RINs to the Environmental Protection Agency. For cellulosic 
ethanol, 2.5 RINs are generated for every gallon produced.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, the 51-cent-per-gallon 
incentive for ethanol is adjusted to 46 cents per gallon 
beginning with the first calendar year after the year in which 
7.5 billion gallons of ethanol (including cellulosic ethanol) 
have been produced in or imported into the United States after 
the date of enactment, as certified by the Secretary in 
consultation with the Administrator of the Environmental 
Protection Agency.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      Under the conference agreement, the 51-cent-per-gallon 
incentive for ethanol is adjusted to 45 cents per gallon for 
the calendar year 2009 and thereafter.\38\ If the Secretary 
makes a determination, in consultation with the Administrator 
of the Environmental Protection Agency, that 7,500,000,000 
gallons of ethanol (including cellulosic ethanol) were not 
produced in or imported into the United States in 2008, the 
reduction in the credit amount will be delayed. If a 
determination is made that the threshold was not reached in 
2008, the reduction for 2010 also will be delayed if the 
Secretary determines 7,500,000,000 gallons were not produced or 
imported in 2009. In the absence of a determination, the 
reduction remains in effect. In the event the determination is 
made subsequent to the start of a calendar year, those persons 
claiming the reduced amount prior to the Secretary's 
determination will be entitled to the difference between the 
correct credit amount for that year and the credit amount 
claimed, e.g. between 51 cents per gallon and 45 cents per 
gallon.
---------------------------------------------------------------------------
      \38\The low-proof blender amount is adjusted accordingly to 33.33 
cents.
---------------------------------------------------------------------------
      Effective date.--The provision is effective on the date 
of enactment.

4. Calculation of volume of alcohol for fuel credits (Sec. 12316 of the 
 Senate amendment, and sec. 15332 of the conference agreement and sec. 
                            40 of the Code)


                              PRESENT LAW

      The Code provides a per-gallon credit for the volume of 
alcohol used as a fuel or in a qualified mixture. For purposes 
of determining the number of gallons of alcohol with respect to 
which the credit is allowable, the volume of alcohol includes 
any denaturant, including gasoline.\39\ The denaturant must be 
added under a formula approved by the Secretary and the 
denaturant cannot exceed five percent of the volume of such 
alcohol (including denaturants).
---------------------------------------------------------------------------
      \39\Sec. 40(d)(4).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment reduces the amount of allowable 
denaturants to two percent of the volume of the alcohol.
      Effective date.--The provision is effective for fuel sold 
or used after December 31, 2007.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
      Effective date.--The provision is effective for fuel sold 
or used after December 31, 2008.

  5. Ethanol tariff extension (Sec. 12317 of the Senate amendment and 
                sec. 15333 of the conference agreement)


                              PRESENT LAW

      Heading 9901.00.50 of the Harmonized Tariff Schedule of 
the United States imposes a cumulative general duty of 14.27 
cents per liter (approximately 54 cents per gallon) to imports 
of ethyl alcohol, and any mixture containing ethyl alcohol, if 
used as a fuel or in producing a mixture to be used as a fuel, 
that are entered into the United States prior to January 1, 
2009.
      Taxpayers who blend ethanol with gasoline are eligible to 
claim an alcohol fuels tax credit of 51 cents per gallon, 
irrespective of whether the ethanol used is produced 
domestically or imported. Heading 9901.00.50 applies a 
temporary duty to ethanol imports that offsets the benefit of 
the alcohol fuels tax credit to imported ethanol.
      Heading 9901.00.52 of the Harmonized Tariff Schedule of 
the United States imposes a general duty of 5.99 cents per 
liter to imports of ethyl tertiary-butyl ether, and any mixture 
containing ethyl tertiary-butyl ether, that are entered into 
the United States prior to January 1, 2009.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment modifies the existing effective 
period for ethyl alcohol as classified under heading 9901.00.50 
and 9901.00.52 of the Harmonized Tariff Schedule of the United 
States from before January 1, 2009 to before January 1, 2011.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
      Effective date.--The provision is effective on the date 
of enactment.

6. Limitations on duty drawback on certain imported ethanol (Sec. 12318 
  of the Senate amendment and sec. 15334 of the conference agreement)


                              PRESENT LAW

      Subheading 9901.00.50 of the Harmonized Tariff Schedule 
of the United States (``HTSUS''), imposes an additional duty on 
ethanol that is used as fuel or used to make fuel. Subsection 
(b) of Section 313 of the Tariff Act of 1930 permits the refund 
of duty if the duty-paid good, or a substitute good, is used to 
make an article that is exported. Subsection (j)(2) of Section 
313 permits the refund of duty if the duty-paid good, or a 
substitute good, is exported. Subsection (p) of section 313 
permits the substitution on exportation for drawback 
eligibility of one motor fuel for another motor fuel. A person 
who manufactures or acquires gasoline with ethanol subject to 
the duty imposed by subheading 9901.00.50, HTSUS, can export 
jet fuel (which does not involve the use of ethanol) and obtain 
a refund of the duty paid under subheading 9901.00.50, HTSUS.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment eliminates the ability to obtain a 
refund of the duty imposed by subheading 9901.00.50, HTSUS, by 
substitution of ethanol not subject to the duty under 
9901.00.50 of the HTSUS for ethanol subject to the duty imposed 
under subheading 9901.00.50, HTSUS, for drawback purposes. 
Also, under the provision, 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, 
for substitution duty drawback purposes under section 313(p) of 
the Tariff Act of 1930. In particular, this eliminates the 
ability to export jet fuel as a substitute for motor fuel made 
with imports of ethyl alcohol or a mixture of ethyl alcohol, 
and receive duty drawback based upon the import duty paid under 
subheading 9901.00.50, HTSUS.
      Effective date.--Effective for articles exported on or 
after the date that is 15 days after the date of enactment.

                          CONFERENCE AGREEMENT

      Under the conference agreement, any duty paid under 
subheading 9901.00.50, HTSUS, on imports of ethyl alcohol or a 
mixture of ethyl alcohol may not be refunded if the exported 
article upon which a drawback claim is based does not contain 
ethyl alcohol or a mixture of ethyl alcohol. In particular, the 
provision eliminates the ability to export jet fuel as a 
substitute for motor fuel made with imports of ethyl alcohol or 
a mixture of ethyl alcohol, and then receive duty drawback 
based upon the import duty paid on the ethyl alcohol or the 
mixture of ethyl alcohol under subheading 9901.00.50, HTSUS.
      Effective date.--The provision applies to imports of 
ethyl alcohol or a mixture of ethyl alcohol entered for 
consumption, or withdrawn from warehouse for consumption, on or 
after October 1, 2008. With respect to claims for substitution 
duty drawback that are based upon imports of ethyl alcohol or a 
mixture of ethyl alcohol entered for consumption, or withdrawn 
from warehouse for consumption, before October 1, 2008, such 
claims must be filed not later than September 30, 2010; 
otherwise, such claims are disallowed.

                       C. Agricultural Provisions


 1. Qualified small issue bonds for farming (Sec. 12401 of the Senate 
 amendment, sec. 15341 of the conference agreement and sec. 144 of the 
                                 Code)


                              PRESENT LAW

      Qualified small issue bonds are tax-exempt bonds issued 
by State and local governments to finance private business 
manufacturing facilities (including certain directly related 
and ancillary facilities) or the acquisition of land and 
equipment by certain first-time farmers. A first-time farmer 
means any individual who has not at any time had any direct 
ownership interest in substantial farmland in the operation of 
which such individual materially participated. In addition, an 
individual does not qualify as a first-time farmer if such 
individual has received more than $250,000 in qualified small 
issue bond financing. Substantial farmland means any parcel of 
land unless (1) such parcel is smaller than 30 percent of the 
median size of a farm in the county in which such parcel is 
located and (2) the fair market value of the land does not at 
any time while held by the individual exceed $125,000.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment increases the maximum amount of 
qualified small issue bond proceeds available to first-time 
farmers to $450,000 and indexes this amount for inflation. The 
provision also eliminates the fair market value test from the 
definition of substantial farmland.
      Effective date.--The provision is effective for bonds 
issued after the date of enactment. Conference Agreement The 
conference agreement follows the Senate amendment.

  2. Allowance of section 1031 for exchanges involving certain mutual 
ditch, reservoir, or irrigation company stock (sec. 12403 of the Senate 
amendment, sec. 15342 of the conference agreement and sec. 1031 of the 
                                 Code)


                              PRESENT LAW

      An exchange of property, like a sale, generally is a 
taxable event. However, no gain or loss is recognized if 
property held for productive use in a trade or business or for 
investment is exchanged for property of a ``like-kind'' which 
is to be held for productive use in a trade or business or for 
investment.\40\ If section 1031 applies to an exchange of 
properties, the basis of the property received in the exchange 
is equal to the basis of the property transferred, decreased by 
any money received by the taxpayer, and further adjusted for 
any gain or loss recognized on the exchange. In general, 
section 1031 does not apply to any exchange of stock in trade 
or other property held primarily for sale; stocks, bonds or 
notes; other securities or evidences of indebtedness or 
interest; interests in a partnership; certificates of trust or 
beneficial interests; or choses in action.\41\
---------------------------------------------------------------------------
      \40\Sec. 1031(a)(1).
      \41\Sec. 1031(a)(2).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides that the general exclusion 
from section 1031 treatment for stocks shall not apply to 
shares in a mutual ditch, reservoir, or irrigation company, if 
at the time of the exchange: (1) the 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 the 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.
      Effective date.--The provision is effective for transfers 
after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

3. Agricultural chemicals security tax credit (Sec. 12405 of the Senate 
 amendment, sec. 15343 of the conference agreement and new sec. 45O of 
                               the Code)


                              PRESENT LAW

      Present law does not provide a credit for agricultural 
chemicals security.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment establishes a 30 percent credit for 
qualified chemical security expenditures for the taxable year 
with respect to eligible agricultural businesses. The credit is 
a component of the general business credit.\42\
---------------------------------------------------------------------------
      \42\Sec. 38(b)(1).
---------------------------------------------------------------------------
      The credit is limited to $100,000 per facility, this 
amount is reduced by the aggregate amount of the credits 
allowed for the facility in the prior five years. In addition, 
each taxpayer's annual credit is limited to $2,000,000.\43\ The 
credit only applies to expenditures paid or incurred before 
December 31, 2012. The taxpayer's deductible expense is reduced 
by the amount of the credit claimed.
---------------------------------------------------------------------------
      \43\The term taxpayer includes controlled groups under rules 
similar to the rules set out in section 41(f)(1) and (2).
---------------------------------------------------------------------------
      Qualified chemical security expenditures are amounts paid 
for: 1) employee security training and background checks; (2) 
limitation and prevention of access to controls of specific 
agricultural chemicals stored at a facility; (3) tagging, 
locking tank valves, and chemical additives to prevent the 
theft of specific agricultural chemicals or to render such 
chemicals unfit for illegal use; (4) protection of the 
perimeter of areas where specified agricultural chemicals are 
stored; (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 security vulnerability 
assessments; (8) implementing a site security plan; and (9) 
other measures provided for by regulation. Amounts described in 
the preceding sentences are only eligible to the extent they 
are incurred by an eligible agricultural business for 
protecting specified agricultural chemicals.
      Eligible agricultural businesses are businesses that: (1) 
sell agricultural products, including specified agricultural 
chemicals, at retail predominantly to farmers and ranchers; or 
(2) manufacture, formulate, distribute, or aerially apply 
specified agricultural chemicals.
      Specified agricultural chemicals means: (1) fertilizer 
commonly used in agricultural operations which is listed under 
section 302(a)(2) of the Emergency Planning and Community 
Right-to know Act of 1986, section 101 or part 172 of title 49, 
Code of Federal Regulations, or 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 
which are used on crops grown for food, feed or fiber.
      Effective date.--The provision is effective for expenses 
paid or incurred after date of enactment.

                          Conference Agreement

      The conference agreement follows the Senate amendment.

 4. Three-year depreciation for all race horses (Sec. 12509(a) of the 
 Senate amendment, and sec. 15344 of the conference agreement and sec. 
                            168 of the Code)


                              PRESENT LAW

      A taxpayer is allowed to recover, through annual 
depreciation deductions, the cost of certain property used in a 
trade or business or for the production of income. The amount 
of the depreciation deduction allowed with respect to tangible 
property for a taxable year is determined under the modified 
accelerated cost recovery system (``MACRS'').\44\ The class 
lives of assets placed in service after 1986 are generally set 
forth in Revenue Procedure 87-56.\45\ Any race horse that is 
more than two years old at the time it is placed in service is 
assigned a three-year recovery period.\46\ A seven year 
recovery period is assigned to any race horse that is two years 
old or younger at the time it is placed in service.\47\
---------------------------------------------------------------------------
      \44\Sec. 168.
      \45\1987-2 C.B. 674 (as clarified and modified by Rev. Proc. 88-
22, 1988-1 C.B. 785).
      \46\Sec. 168(e)(3)(A)(i).
      \47\Rev. Proc. 87-56, 1987-2 C.B. 674, asset class 01.225.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides a three year recovery 
period for any race horse.
      Effective date.--The provision applies to property placed 
in service on or after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment, 
except that the provision applies to any race horse that is two 
years old or younger at the time that it is placed in service 
after December 31, 2008 and before January 1, 2014.

 5. Temporary relief for Kiowa County, Kansas and surrounding area\48\

---------------------------------------------------------------------------
      \48\The provisions of this Act generally provide tax relief 
similar to certain other disaster areas. They do not modify the 
otherwise applicable tax relief to those other disaster areas.
---------------------------------------------------------------------------

(a) Suspension of certain limitations on personal casualty losses (Sec. 
 12701 of the Senate amendment, sec. 15345 of the conference agreement 
                     and sec. 1400S(b) of the Code)


                              PRESENT LAW

      Under present law, a taxpayer may generally claim a 
deduction for any loss sustained during the taxable year and 
not compensated by insurance or otherwise (sec. 165). For 
individual taxpayers, deductible losses must be incurred in a 
trade or business or other profit-seeking activity or consist 
of property losses arising from fire, storm, shipwreck, or 
other casualty, or from theft. Personal casualty or theft 
losses are deductible only if they exceed $100 per casualty or 
theft (the ``$100 limitation'') (sec. 165(h)). In addition, 
aggregate net casualty and theft losses are deductible only to 
the extent they exceed 10 percent of an individual taxpayer's 
adjusted gross income (the ``AGI limitation'') (sec. 165(h)).

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment removes two limitations on personal 
casualty or theft losses to the extent those losses arose from 
such events in the Kansas disaster area after May 4, 2007, and 
are attributable to the disaster occurring at that time. For 
purposes of the provisions of this Act, the term ``Kansas 
disaster area'' means an area with respect to which a major 
disaster has been declared by the President under section 401 
of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (FEMA-1699-DR, as in effect on the date of 
enactment of this Act) by reason of severe storms and tornadoes 
beginning on May 4, 2007, and determined by the President to 
warrant individual or individual and public assistance from the 
Federal Government under such Act with respect to damages 
attributable to storms and tornadoes. These personal casualty 
or theft losses are deductible without regard to either the 
$100 limitation or the AGI limitation. For purposes of applying 
the AGI limitation to other personal casualty or theft losses, 
losses deductible under this provision are disregarded. Thus, 
the provision has the effect of treating personal casualty or 
theft losses from the disaster separate from all other casualty 
losses.
      Effective date.--The provision is effective for losses 
arising on or after May 4, 2007.

                          CONFERENCE AGREEMENT

    The conference agreement follows the Senate amendment.

 (b) Extension of replacement period for nonrecognition of gain (Sec. 
    12701 of the Senate amendment, and sec. 15345 of the conference 
                               agreement)


                              PRESENT LAW

      Generally, a taxpayer realizes gain to the extent the 
sales price (and any other consideration received) exceeds the 
taxpayer's basis in the property. The realized gain is subject 
to current income tax unless the gain is deferred or not 
recognized under a special tax provision.
      Under section 1033, gain realized by a taxpayer from an 
involuntary conversion of property is deferred to the extent 
the taxpayer purchases property similar or related in service 
or use to the converted property within the applicable period. 
The taxpayer's basis in the replacement property generally is 
the cost of such property, reduced by the amount of gain not 
recognized.
      The applicable period for the taxpayer to replace the 
converted property begins with the date of the disposition of 
the converted property (or if earlier, the earliest date of the 
threat or imminence of requisition or condemnation of the 
converted property) and ends two years after the close of the 
first taxable year in which any part of the gain upon 
conversion is realized (the ``replacement period'').
      Special rules extend the replacement period for certain 
real property\49\ and principal residences damaged by a 
Presidentially declared disaster\50\ to three years and four 
years, respectively, after the close of the first taxable year 
in which gain is realized. Similarly, the replacement period 
for livestock sold on account of drought, flood, or other 
weather-related conditions is extended from two years to four 
years after the close of the first taxable year in which any 
part of the gain on conversion is realized.\51\
---------------------------------------------------------------------------
      \49\Sec. 1033(g)(4).
      \50\Sec. 1033(h)(1)(B).
      \51\Sec. 1033(e)(2).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment extends from two to five years the 
replacement period in which a taxpayer may replace converted 
property, in the case of property that is in the Kansas 
disaster area and that is compulsorily or involuntarily 
converted on or after May 4, 2007, by reason of the May 4, 
2007, storms and tornadoes. Substantially all of the use of the 
replacement property must be in this area.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

(c) Employee retention credit (Sec. 12701 of the Senate amendment, sec. 
    15345 of the conference agreement and sec. 1400R(a) of the Code)


                              PRESENT LAW

      For employers affected by Hurricanes Katrina, Rita, or 
Wilma, section 1400R provides a credit of 40 percent of the 
qualified wages (up to a maximum of $6,000 in qualified wages 
per employee) paid by an eligible employer to an eligible 
employee.
            Hurricane Katrina
      An eligible employer is any employer (1) that conducted 
an active trade or business on August 28, 2005, in the GO Zone 
and (2) with respect to which the trade or business described 
in (1) is inoperable on any day after August 28, 2005, and 
before January 1, 2006, as a result of damage sustained by 
reason of Hurricane Katrina.
      An eligible employee is, with respect to an eligible 
employer, an employee whose principal place of employment on 
August 28, 2005, with such eligible employer was in the GO 
Zone. An employee may not be treated as an eligible employee 
for any period with respect to an employer if such employer is 
allowed a credit under section 51 with respect to the employee 
for the period.
      Qualified wages are wages (as defined in section 51(c)(1) 
of the Code, but without regard to section 3306(b)(2)(B) of the 
Code) paid or incurred by an eligible employer with respect to 
an eligible employee on any day after August 28, 2005, and 
before January 1, 2006, during the period (1) beginning on the 
date on which the trade or business first became inoperable at 
the principal place of employment of the employee immediately 
before Hurricane Katrina, and (2) ending on the date on which 
such trade or business has resumed significant operations at 
such principal place of employment. Qualified wages include 
wages paid without regard to whether the employee performs no 
services, performs services at a different place of employment 
than such principal place of employment, or performs services 
at such principal place of employment before significant 
operations have resumed.
      The credit is a part of the current year business credit 
under section 38(b) and therefore is subject to the tax 
liability limitations of section 38(c). Rules similar to 
sections 51(i)(1) and 52 apply to the credit.
            Hurricane Rita and Wilma
      The credit for employers affected by Hurricanes Rita and 
Wilma is subject to the same rules as Katrina, except the 
reference dates for affected employers, comparable to the 
August 28, 2005 date for Katrina, are September 23, 2005, and 
October 23, 2005, respectively.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment extends the retention credit, as 
modified to include an employer size limitation, for employers 
affected by the Kansas storms and tornados. The reference dates 
for these employers, comparable to the August 28, 2005 and 
January 1, 2006 dates of present law for employers affected by 
Hurricane Katrina, are May 4, 2007, and January 1, 2008, 
respectively.
      The retention credit for employers affected by the Kansas 
storms and tornados includes an employer size limitation. The 
credit only applies to eligible employers who employed an 
average of not more than 200 employees on business days during 
the taxable year before May 4, 2007.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

(d) Special depreciation allowance (Sec. 12701 of the Senate amendment, 
 sec. 15345 of the conference agreement and sec. 1400N(d) of the Code)


                              PRESENT LAW

      A taxpayer is allowed to recover, through annual 
depreciation deductions, the cost of certain property used in a 
trade or business or for the production of income. The amount 
of the depreciation deduction allowed with respect to tangible 
property for a taxable year is determined under the modified 
accelerated cost recovery system (``MACRS'').\52\ Under MACRS, 
different types of property generally are assigned applicable 
recovery periods and depreciation methods. The recovery periods 
applicable to most tangible personal property (generally 
tangible property other than residential rental property and 
nonresidential real property) range from 3 to 20 years. The 
depreciation methods generally applicable to tangible personal 
property are the 200-percent and 150-percent declining balance 
methods, switching to the straight-line method for the taxable 
year in which the depreciation deduction would be maximized.
---------------------------------------------------------------------------
      \52\Sec. 168.
---------------------------------------------------------------------------
      For qualified Gulf Opportunity Zone property, the Code 
provides an additional first-year depreciation deduction equal 
to 50 percent of the adjusted basis.\53\ In order to qualify, 
property generally must be placed in service on or before 
December 31, 2007 (December 31, 2008 in the case of 
nonresidential real property and residential rental property).
---------------------------------------------------------------------------
      \53\Sec. 1400N(d).
---------------------------------------------------------------------------
      The additional first-year depreciation deduction is 
allowed for both regular tax and alternative minimum tax 
purposes for the taxable year in which the property is placed 
in service. The additional first-year depreciation deduction is 
subject to the general rules regarding whether an item is 
deductible under section 162 or subject to capitalization under 
section 263 or section 263A. The basis of the property and the 
depreciation allowances in the year of purchase and later years 
are appropriately adjusted to reflect the additional first-year 
depreciation deduction. In addition, the provision provides 
that there is no adjustment to the allowable amount of 
depreciation for purposes of computing a taxpayer's alternative 
minimum taxable income with respect to property to which the 
provision applies. A taxpayer is allowed to elect out of the 
additional first-year depreciation for any class of property 
for any taxable year.
      In order for property to qualify for the additional 
first-year depreciation deduction, it must meet all of the 
following requirements. First, the property must be property to 
which the general rules of the Modified Accelerated Cost 
Recovery System (``MACRS'') apply with (1) an applicable 
recovery period of 20 years or less, (2) computer software 
other than computer software covered by section 197, (3) water 
utility property (as defined in section 168(e)(5)), (4) certain 
leasehold improvement property, or (5) certain nonresidential 
real property and residential rental property. Second, 
substantially all of the use of such property must be in the 
Gulf Opportunity Zone and in the active conduct of a trade or 
business by the taxpayer in the Gulf Opportunity Zone. Third, 
the original use of the property in the Gulf Opportunity Zone 
must commence with the taxpayer on or after August 28, 
2005.\54\ Finally, the property must be acquired by purchase 
(as defined under section 179(d)) by the taxpayer on or after 
August 28, 2005 and placed in service on or before December 31, 
2007 (December 31, 2008, for qualifying nonresidential real 
property and residential rental property). Property does not 
qualify if a binding written contract for the acquisition of 
such property was in effect before August 28, 2005. However, 
property is not precluded from qualifying for the additional 
first-year depreciation merely because a binding written 
contract to acquire a component of the property is in effect 
prior to August 28, 2005.
---------------------------------------------------------------------------
      \54\Used property may constitute qualified property so long as it 
has not previously been used within the Gulf Opportunity Zone. In 
addition, it is intended that additional capital expenditures incurred 
to recondition or rebuild property the original use of which in the 
Gulf Opportunity Zone began with the taxpayer would satisfy the 
``original use'' requirement. See Treasury Regulation sec. 1.48-2, 
Example 5.
---------------------------------------------------------------------------
      Property that is manufactured, constructed, or produced 
by the taxpayer for use by the taxpayer qualifies if the 
taxpayer begins the manufacture, construction, or production of 
the property after August 27, 2005, and before January 1, 2008, 
and the property is placed in service on or before December 31, 
2007 (and all other requirements are met). In the case of 
qualified nonresidential real property and residential rental 
property, the property must be placed in service on or before 
December 31, 2008. Property that is manufactured, constructed, 
or produced for the taxpayer by another person under a contract 
that is entered into prior to the manufacture, construction, or 
production of the property is considered to be manufactured, 
constructed, or produced by the taxpayer.
      The special allowance for Gulf Opportunity Zone property 
was extended for certain nonresidential real property and 
residential rental property, and certain personal property if 
substantially all of the use of such property is in such 
building,\55\ placed in service in specified portions of the GO 
Zone by the taxpayer on or before December 31, 2010.\56\ The 
extension only applies to nonresidential real property and 
residential rental property to the extent of the adjusted basis 
attributable to manufacture, construction, or production before 
January 1, 2010.\57\
---------------------------------------------------------------------------
      \55\Such personal property must be placed in service by the 
taxpayer not later than 90 days after such building is placed in 
service.
      \56\Sec. 1400N(d)(6).
      \57\Sec. 1400N(d)(6)(D).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides an additional first-year 
depreciation deduction equal to 50 percent of the adjusted 
basis for qualified Recovery Assistance property. In order for 
property to qualify for the additional first-year depreciation 
deduction, it must meet all of the following requirements: (1) 
The property must be property to which the general rules of the 
MACRS apply with (a) an applicable recovery period of 20 years 
or less, (b) computer software other than computer software 
covered by section 197, (c) water utility property (as defined 
in section 168(e)(5)), (d) certain leasehold improvement 
property, or (e) certain nonresidential real property and 
residential rental property; (2) substantially all of the use 
of such property must be in the Kansas Disaster Zone and in the 
active conduct of a trade or business by the taxpayer in the 
Kansas Disaster Zone. Third, the original use of the property 
in the Kansas Disaster Zone must commence with the taxpayer on 
or after May 5, 2007.\58\ Finally, the property must be 
acquired by purchase (as defined under section 179(d)) by the 
taxpayer on or after May 5, 2007 and placed in service on or 
before December 31, 2008 (December 31, 2009, for qualifying 
nonresidential real property and residential rental property). 
Property does not qualify if a binding written contract for the 
acquisition of such property was in effect before May 5, 2007. 
However, property is not precluded from qualifying for the 
additional first-year depreciation merely because a binding 
written contract to acquire a component of the property is in 
effect prior to May 5, 2007.
---------------------------------------------------------------------------
      \58\Used property may constitute qualified property so long as it 
has not previously been used within the Kansas Disaster Zone. In 
addition, it is intended that additional capital expenditures incurred 
to recondition or rebuild property the original use of which in the 
Kansas Disaster Zone began with the taxpayer would satisfy the 
``original use'' requirement. See Treasury Regulation sec. 1.48-2, 
Example 5.
---------------------------------------------------------------------------
      Property that is manufactured, constructed, or produced 
by the taxpayer for use by the taxpayer qualifies if the 
taxpayer begins the manufacture, construction, or production of 
the property after May 4, 2007, and before January 1, 2009, and 
the property is placed in service on or before December 31, 
2008 (and all other requirements are met). In the case of 
qualified nonresidential real property and residential rental 
property, the property must be placed in service on or before 
December 31, 2009. Property that is manufactured, constructed, 
or produced for the taxpayer by another person under a contract 
that is entered into prior to the manufacture, construction, or 
production of the property is considered to be manufactured, 
constructed, or produced by the taxpayer.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

 (e) Increase in expensing under section 179 (Sec. 12701 of the Senate 
amendment, sec. 15345 of the conference agreement and sec. 1400N(e) of 
                               the Code)


                              PRESENT LAW

      In lieu of depreciation, a taxpayer with a sufficiently 
small amount of annual investment may elect to deduct (or 
``expense'') such costs under section 179. Present law provides 
that the maximum amount a taxpayer may expense, for taxable 
years beginning in 2007 through 2010, is $125,000 of the cost 
of qualifying property placed in service for the taxable 
year.\59\ In general, qualifying property is defined as 
depreciable tangible personal property that is purchased for 
use in the active conduct of a trade or business. Off-the-shelf 
computer software placed in service in taxable years beginning 
before 2010 is treated as qualifying property. The $125,000 
amount is reduced (but not below zero) by the amount by which 
the cost of qualifying property placed in service during the 
taxable year exceeds $500,000. The $125,000 and $500,000 
amounts are indexed for inflation in taxable years beginning 
after 2007 and before 2011.
---------------------------------------------------------------------------
      \59\Additional section 179 incentives are provided with respect 
to qualified property meeting applicable requirements that is used by a 
business in an empowerment zone (sec. 1397A), a renewal community (sec. 
1400J), or the Gulf Opportunity Zone (sec. 1400N(e)).
---------------------------------------------------------------------------
      The amount eligible to be expensed for a taxable year may 
not exceed the taxable income for a taxable year that is 
derived from the active conduct of a trade or business 
(determined without regard to this provision). Any amount that 
is not allowed as a deduction because of the taxable income 
limitation may be carried forward to succeeding taxable years 
(subject to similar limitations). No general business credit 
under section 38 is allowed with respect to any amount for 
which a deduction is allowed under section 179. An expensing 
election is made under rules prescribed by the Secretary.\60\
---------------------------------------------------------------------------
      \60\Sec. 179(c)(1). Under Treas. Reg. sec. 1.179-5, applicable to 
property placed in service in taxable years beginning after 2002 and 
before 2008, a taxpayer is permitted to make or revoke an election 
under section 179 without the consent of the Commissioner on an amended 
Federal tax return for that taxable year. This amended return must be 
filed within the time prescribed by law for filing an amended return 
for the taxable year. T.D. 9209, July 12, 2005.
---------------------------------------------------------------------------
      For taxable years beginning in 2011 and thereafter (or 
before 2003), the following rules apply. A taxpayer with a 
sufficiently small amount of annual investment may elect to 
deduct up to $25,000 of the cost of qualifying property placed 
in service for the taxable year. The $25,000 amount is reduced 
(but not below zero) by the amount by which the cost of 
qualifying property placed in service during the taxable year 
exceeds $200,000. The $25,000 and $200,000 amounts are not 
indexed. In general, qualifying property is defined as 
depreciable tangible personal property that is purchased for 
use in the active conduct of a trade or business (not including 
off the-shelf computer software). An expensing election may be 
revoked only with consent of the Commissioner.\61\
---------------------------------------------------------------------------
      \61\Sec. 179(c)(2).
---------------------------------------------------------------------------
      For qualified section 179 Gulf Opportunity Zone property, 
the maximum amount that a taxpayer may elect to deduct is 
increased by the lesser of $100,000 or the cost of qualified 
section 179 Gulf Opportunity Zone property for the taxable 
year.\62\ The provision applies with respect to qualified 
section 179 Gulf Opportunity Zone property acquired on or after 
August 28, 2005, and placed in service on or before December 
31, 2007. This placed in service date was extended to December 
31, 2008 for property substantially all of the use of which is 
in one or more specified portions of the GO Zone. The threshold 
for reducing the amount expensed is computed by increasing the 
$500,000 present-law amount by the lesser of (1) $600,000, or 
(2) the cost of qualified section 179 Gulf Opportunity Zone 
property placed in service during the taxable year. Neither the 
$100,000 nor $600,000 amounts are indexed for inflation.
---------------------------------------------------------------------------
      \62\Sec. 1400N(e).
---------------------------------------------------------------------------
      Qualified section 179 Gulf Opportunity Zone property 
means section 179 property (as defined in section 179(d)) that 
also meets the following requirements: (1) The property must be 
property to which the general rules of the MACRS apply with (a) 
an applicable recovery period of 20 years or less, (b) computer 
software other than computer software covered by section 197, 
(c) water utility property (as defined in section 168(e)(5)), 
(d) certain leasehold improvement property; (2) substantially 
all of the use of which is in the Gulf Opportunity Zone and is 
in the active conduct of a trade or business by the taxpayer in 
that Zone; (3) the original use of which commences with the 
taxpayer on or after August 28, 2005; (4) which is acquired by 
the taxpayer by purchase on or after August 28, 2005, but only 
if no written binding contract for the acquisition was in 
effect before August 28, 2005; and (5) which is placed in 
service by the taxpayer on or before December 31, 2007.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment increases the amount that a taxpayer 
may elect for qualified section 179 Recovery Assistance 
property. The maximum amount that a taxpayer may elect to 
deduct under section 179 is increased by the lesser of $100,000 
or the cost of qualified section 179 Recovery Assistance 
property for the taxable year. The provision applies with 
respect to qualified section 179 Recovery Assistance property 
acquired on or after May 5, 2007, and placed in service on or 
before December 31, 2008. The threshold for reducing the amount 
expensed is computed by increasing the $500,000 present-law 
amount by the lesser of (1) $600,000, or (2) the cost of 
qualified section 179 Recovery Assistance property placed in 
service during the taxable year. Neither the $100,000 nor 
$600,000 amounts are indexed for inflation.
      Qualified section 179 Recovery Assistance property means 
section 179 property (as defined in section 179(d)) that also 
meets the following requirements: (1) The property must be 
property to which the general rules of the MACRS apply with (a) 
an applicable recovery period of 20 years or less, (b) computer 
software other than computer software covered by section 197, 
(c) water utility property (as defined in section 168(e)(5)), 
or (d) certain leasehold improvement property; (2) 
substantially all of the use of which is in the Kansas Disaster 
Zone and is in the active conduct of a trade or business by the 
taxpayer in that Zone; (3) the original use of which commences 
with the taxpayer on or after May 5, 2007; (4) which is 
acquired by the taxpayer by purchase on or after May 5, 2007, 
but only if no written binding contract for the acquisition was 
in effect before May 5, 2007; and (5) which is placed in 
service by the taxpayer on or before December 31, 2008.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

(f) Expensing for certain demolition and clean-up costs (Sec. 12701 of 
 the Senate amendment, sec. 15345 of the conference agreement and sec. 
                         1400N(f) of the Code)


                              PRESENT LAW

      Under present law, the cost of demolition of a structure 
is capitalized into the taxpayer's basis in the land on which 
the structure is located.\63\ Land is not subject to an 
allowance for depreciation or amortization.
---------------------------------------------------------------------------
      \63\Sec. 280B.
---------------------------------------------------------------------------
      The treatment of the cost of debris removal depends on 
the nature of the costs incurred. For example, the cost of 
debris removal after a storm may in some cases constitute an 
ordinary and necessary business expense which is deductible in 
the year paid or incurred. In other cases, debris removal costs 
may be in the nature of replacement of part of the property 
that was damaged. In such cases, the costs are capitalized and 
added to the taxpayer's basis in the property. For example, 
Revenue Ruling 71-161\64\ permits the use of clean-up costs as 
a measure of casualty loss but requires that such costs be 
added to the post-casualty basis of the property.
---------------------------------------------------------------------------
      \64\1971-1 C.B. 76.
---------------------------------------------------------------------------
      Under section 1400N(f), a taxpayer is permitted a 
deduction for 50 percent of any qualified Gulf Opportunity Zone 
clean-up cost paid or incurred during the period beginning on 
August 28, 2005, and ending on December 31, 2007. The remaining 
50 percent is capitalized and treated as described above. A 
qualified Gulf Opportunity Zone clean-up cost is an amount paid 
or incurred for the removal of debris from, or the demolition 
of structures on, real property located in the Gulf Opportunity 
Zone to the extent that the amount would otherwise be 
capitalized. In order to qualify, the property must be held for 
use in a trade or business, for the production of income, or as 
inventory.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, a taxpayer is permitted a 
deduction for 50 percent of any qualified Recovery Assistance 
clean-up cost paid or incurred during the period beginning on 
May 4, 2007, and ending on December 31, 2009. The remaining 50 
percent is treated as under present law. A qualified Recovery 
Assistance clean-up cost is an amount paid or incurred for the 
removal of debris from, or the demolition of structures on, 
real property located in the Kansas disaster area to the extent 
that the amount would otherwise be capitalized. In order to 
qualify, the property must be held for use in a trade or 
business, for the production of income, or as inventory.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

(g) Treatment of public utility property disaster losses (Sec. 12701 of 
 the Senate amendment, sec. 15345 of the conference agreement and sec. 
                         1400N(o) of the Code)


                              PRESENT LAW

      Under section 165(i), certain losses attributable to a 
disaster occurring in a Presidentially declared disaster area 
may, at the election of the taxpayer, be taken into account for 
the taxable year immediately preceding the taxable year in 
which the disaster occurred.
      Section 6411 provides a procedure under which taxpayers 
may apply for tentative carryback and refund adjustments with 
respect to net operating losses, net capital losses, and unused 
business credits.
      Section 1400N(o) provides an election for taxpayers who 
incurred casualty losses attributable to Hurricane Katrina with 
respect to public utility property located in the Gulf 
Opportunity Zone. Under the election, such losses may be taken 
into account in the fifth taxable year (rather than the 1st 
taxable year) immediately preceding the taxable year in which 
the loss occurred. If the application of this provision results 
in the creation or increase of a net operating loss for the 
year in which the casualty loss is taken into account, the net 
operating loss may be carried back or carried over as under 
present law applicable to net operating losses for such year.
      For purposes of section 1400N(o), public utility property 
is property used predominantly in the trade or business of the 
furnishing or sale of electrical energy, water, or sewage 
disposal services; gas or steam through a local distribution 
system; telephone services, or other communication services if 
furnished or sold by the Communications Satellite Corporation 
for purposes authorized by the Communications Satellite Act of 
1962; or transportation of gas or steam by pipeline. Such 
property is eligible regardless of whether the taxpayer's rates 
are established or approved by any regulatory body.
      A taxpayer making the election under the provision is 
eligible to file an application for a tentative carryback 
adjustment of the tax for any prior taxable year affected by 
the election. As under present law with respect to tentative 
carryback and refund adjustments, the IRS generally has 90 days 
to act on the refund claim. Under the provision, the statute of 
limitations with respect to such a claim can not expire earlier 
than one year after the date of enactment. Also, a taxpayer 
making the election with respect to a loss is not entitled to 
interest with respect to any overpayment attributable to the 
loss.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides an election for taxpayers 
who incurred casualty losses attributable to the Kansas storms 
and tornados with respect to public utility property located in 
the Kansas Disaster Zone. Under the election, such losses may 
be taken into account in the fifth taxable year (rather than 
the 1st taxable year) immediately preceding the taxable year in 
which the loss occurred. If the application of this provision 
results in the creation or increase of a net operating loss for 
the year in which the casualty loss is taken into account, the 
net operating loss may be carried back or carried over as under 
present law applicable to net operating losses for such year. 
The other definitions and rules that apply under section 
1400N(o) shall apply to the losses claimed in the Kansas 
Disaster Zone.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

  (h) Treatment of net operating losses attributable to storm losses 
   (Sec. 12701 of the Senate amendment, sec. 15345 of the conference 
                agreement and sec. 1400N(k) of the Code)


                              PRESENT LAW

      Under present law, a net operating loss (``NOL'') is, 
generally, the amount by which a taxpayer's business deductions 
exceed its gross income. In general, an NOL may be carried back 
two years and carried over 20 years to offset taxable income in 
such years.\65\ NOLs offset taxable income in the order of the 
taxable years to which the NOL may be carried.\66\
---------------------------------------------------------------------------
      \65\Sec. 172(b)(1)(A).
      \66\Sec. 172(b)(2).
---------------------------------------------------------------------------
      Different rules apply with respect to NOLs arising in 
certain circumstances. A three-year carryback applies with 
respect to NOLs (1) arising from casualty or theft losses of 
individuals, or (2) attributable to Presidentially declared 
disasters for taxpayers engaged in a farming business or a 
small business. A five-year carryback applies to NOLs (1) 
arising from a farming loss (regardless of whether the loss was 
incurred in a Presidentially declared disaster area), or (2) 
certain amounts related to Hurricane Katrina and the Gulf 
Opportunity Zone. Special rules also apply to real estate 
investment trusts (no carryback), specified liability losses 
(10-year carryback), and excess interest losses (no carryback 
to any year preceding a corporate equity reduction 
transaction). Additionally, a special rule applies to certain 
electric utility companies.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides rules in connection with 
certain net operating losses similar to the rules provided for 
Gulf Opportunity Zone losses under section 1400N(k). The rules, 
as applied to qualified Recovery Assistance losses, are as 
follows:

In General

      The provision provides a special five-year carryback 
period for NOLs to the extent of certain specified amounts 
related to the Kansas storms and tornados. The amount of the 
NOL which is eligible for the five year carryback (``eligible 
NOL'') is limited to the aggregate amount of the following 
deductions: (i) qualified Recovery Assistance casualty losses; 
(ii) certain moving expenses; (iii) certain temporary housing 
expenses; (iv) depreciation deductions with respect to 
qualified Recovery Assistance property for the taxable year the 
property is placed in service; and (v) deductions for certain 
repair expenses resulting from the Kansas storms and tornados. 
The provision applies for losses paid or incurred after May 3, 
2007, and before January 1, 2010; however, an irrevocable 
election not to apply the five-year carryback under the 
provision may be made with respect to any taxable year.

Qualified Recovery Assistance casualty losses

      The amount of qualified Gulf Opportunity Zone casualty 
losses which may be included in the eligible NOL is the amount 
of the taxpayer's casualty losses with respect to (1) property 
used in a trade or business, and (2) capital assets held for 
more than one year in connection with either a trade or 
business or a transaction entered into for profit. In order for 
a casualty loss to qualify, the property must be located in the 
Kansas Disaster Zone and the loss must be attributable to 
Kansas storms or tornados. As under present law, the amount of 
any casualty loss includes only the amount not compensated for 
by insurance or otherwise. In addition, the total amount of the 
casualty loss which may be included in the eligible NOL is 
reduced by the amount of any gain recognized by the taxpayer 
from involuntary conversions of property located in the Kansas 
Disaster Zone caused by the Kansas storms or tornados.
      To the extent that a casualty loss is included in the 
eligible NOL and carried back under the provision, the taxpayer 
is not eligible to also treat the loss as having occurred in 
the prior taxable year under section 165(i). Similarly, the 
five-year carryback under the provision does not apply to any 
loss taken into account for purposes of the ten-year carryback 
of public utility casualty losses which is provided under 
another provision in the Act.

Moving expenses

      Certain employee moving expenses of an employer may be 
included in the eligible NOL. In order to qualify, an amount 
must be paid or incurred after May 3, 2007, and before January 
1, 2010 with respect to an employee who (i) lived in the Kansas 
Disaster Zone before May 4, 2007, (ii) was displaced from their 
home either temporarily or permanently as a result of the 
Kansas storms or tornados, and (iii) is employed in the Kansas 
Disaster Zone by the taxpayer after the expense is paid or 
incurred.
      For this purpose, moving expenses are defined, as under 
present law, to include only the reasonable expenses of moving 
household goods and personal effects from the former residence 
to the new residence, and of traveling (including lodging) from 
the former residence to the new place of residence. However, 
for purposes of the provision, the former residence and the new 
residence may be the same residence if the employee initially 
vacated the residence as a result of the Kansas storms or 
tornados. It is not necessary for the individual with respect 
to whom the moving expenses are incurred to have been an 
employee of the taxpayer at the time the expenses were 
incurred. Thus, assuming the other requirements are met, a 
taxpayer who pays the moving expenses of a prospective employee 
and subsequently employs the individual in the Kansas Disaster 
Zone may include such expenses in the eligible NOL.

Temporary housing expenses

      Any deduction for expenses of an employer to temporarily 
house employees who are employed in the Kansas Disaster Zone 
may be included in the eligible NOL. It is not necessary for 
the temporary housing to be located in the Kansas Disaster Zone 
in order for such expenses to be included in the eligible NOL; 
however, the employee's principal place of employment with the 
taxpayer must be in the Kansas Disaster Zone. So, for example, 
if a taxpayer temporarily houses an employee at a location 
outside of the Kansas Disaster Zone, and the employee commutes 
into the Kansas Disaster Zone to the employee's principal place 
of employment, such temporary housing costs will be included in 
the eligible NOL (assuming all other requirements are met).

Depreciation of Gulf Opportunity Zone property

      The eligible NOL includes the depreciation deduction (or 
amortization deduction in lieu of depreciation) with respect to 
qualified Recovery Assistance property placed in service during 
the year. The special carryback period applies to the entire 
allowable depreciation deduction for such property for the year 
in which it is placed in service, including both the regular 
depreciation deduction and the additional first-year 
depreciation deduction, if any. An election out of the 
additional first-year depreciation deduction for qualified 
Recovery Assistance property does not preclude eligibility for 
the five-year carryback.

Repair expenses

      The eligible NOL includes deductions for repair expenses 
(including the cost of removal of debris) with respect to 
damage caused by the Kansas storms or tornados. In order to 
qualify, the amount must be paid or incurred after May 3, 2007 
and before January 1, 2010, and the property must be located in 
the Kansas Disaster Zone.

Other rules

      The amount of the NOL to which the five-year carryback 
period applies is limited to the amount of the corporation's 
overall NOL for the taxable year. Any remaining portion of the 
taxpayer's NOL is subject to the general two-year carryback 
period. Ordering rules similar to those for specified liability 
losses apply to losses carried back under the provision.
      In addition, the general rule which limits a taxpayer's 
NOL deduction to 90 percent of AMTI does not apply to any NOL 
to which the five-year carryback period applies under the 
provision. Instead, a taxpayer may apply such NOL carrybacks to 
offset up to 100 percent of AMTI.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

   (i) Representations regarding income eligibility for purposes of 
 qualified residential rental project requirements (Sec. 12701 of the 
   Senate amendment, sec. 15345 of the conference agreement and sec. 
                         1400N(n) of the Code)


                              PRESENT LAW

In general

      Under present law, gross income does not include interest 
on State or local bonds (sec. 103). State and local bonds are 
classified generally as either governmental bonds or private 
activity bonds. Governmental bonds are bonds which are 
primarily used to finance governmental functions or are repaid 
with governmental funds. Private activity bonds are bonds with 
respect to which the State or local government serves as a 
conduit providing financing to nongovernmental persons (e.g., 
private businesses or individuals). The exclusion from income 
for State and local bonds does not apply to private activity 
bonds, unless the bonds are issued for certain permitted 
purposes (``qualified private activity bonds'').

Qualified private activity bonds

      The definition of a qualified private activity bond 
includes an exempt facility bond, or qualified mortgage, 
veterans' mortgage, small issue, redevelopment, 501(c)(3), or 
student loan bond. The definition of exempt facility bond 
includes bonds issued to finance certain transportation 
facilities (airports, ports, mass commuting, and high-speed 
intercity rail facilities); qualified residential rental 
projects; privately owned and/or operated utility facilities 
(sewage, water, solid waste disposal, and local district 
heating and cooling facilities, certain private electric and 
gas facilities, and hydroelectric dam enhancements); public/
private educational facilities; qualified green building and 
sustainable design projects; and qualified highway or surface 
freight transfer facilities.
      Subject to certain requirements, qualified private 
activity bonds may be issued to finance residential rental 
property or owner-occupied housing. Residential rental property 
may be financed with exempt facility bonds if the financed 
project is a ``qualified residential rental project.'' A 
project is a qualified residential rental project if 20 percent 
or more of the residential units in such project are occupied 
by individuals whose income is 50 percent or less of area 
median gross income (the ``20-50 test''). Alternatively, a 
project is a qualified residential rental project if 40 percent 
or more of the residential units in such project are occupied 
by individuals whose income is 60 percent or less of area 
median gross income (the ``40-60 test''). The issuer must elect 
to apply either the 20-50 test or the 40-60 test. Operators of 
qualified residential rental projects must annually certify 
that such project meets the requirements for qualification, 
including meeting the 20-50 test or the 40-60 test.

                               HOUSE BILL

      No provision

                            SENATE AMENDMENT

      Under the provision, the operator of a qualified 
residential rental project may rely on the representations of 
prospective tenants displaced by reason of the severe storms 
and tornados in the Kansas disaster area beginning on May 4, 
2007 for purposes of determining whether such individual 
satisfies the income limitations for qualified residential 
rental projects and, thus, the project is in compliance with 
the 20-50 test or the 40-60 test. This rule only applies if the 
individual's tenancy begins during the six-month period 
beginning on the date when such individual was displaced.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement includes the Senate amendment 
provision.

   (j) Use of retirement funds from retirement plans relating to the 
Kansas Disaster Zone (Sec. 12701 of the Senate amendment, sec. 15345 of 
          the conference agreement and sec. 1400Q of the Code)


                              PRESENT LAW

In general

            Withdrawals from retirement plans
      Under present law, a distribution from a qualified 
retirement plan under section 401(a), a qualified annuity plan 
under section 403(a), a tax-sheltered annuity under section 
403(b) (a ``403(b) annuity''), an eligible deferred 
compensation plan maintained by a State or local government 
under section 457 (a ``governmental 457 plan''), or an 
individual retirement arrangement under section 408 (an 
``IRA'') generally is included in income for the year 
distributed (secs. 402(a), 403(a), 403(b), 408(d), and 457(a)). 
(These plans are referred to collectively as ``eligible 
retirement plans''.) In addition, a distribution from a 
qualified retirement or annuity plan, a 403(b) annuity, or an 
IRA received before age 59\1/2\, death, or disability generally 
is subject to a 10-percent early withdrawal tax on the amount 
includible in income, unless an exception applies (sec. 72(t)).
      An eligible rollover distribution from a qualified 
retirement or annuity plan, a 403(b) annuity, or a governmental 
457 plan, or a distribution from an IRA, generally can be 
rolled over within 60 days to another plan, annuity, or IRA. 
The IRS has the authority to waive the 60-day requirement if 
failure to waive the requirement would be against equity or 
good conscience, including cases of casualty, disaster, or 
other events beyond the reasonable control of the individual. 
Any amount rolled over is not includible in income (and thus 
also not subject to the 10-percent early withdrawal tax).
      Distributions from a qualified retirement or annuity 
plan, 403(b) annuity, a governmental 457 plan, or an IRA are 
generally subject to income tax withholding unless the 
recipient elects otherwise. An eligible rollover distribution 
from a qualified retirement or annuity plan, 403(b) annuity, or 
governmental 457 plan is subject to income tax withholding at a 
20-percent rate unless the distribution is rolled over to 
another plan, annuity or IRA by means of a direct transfer. Any 
distribution is an eligible rollover distribution unless 
specifically excepted. Exceptions include a distribution that 
is part of a series of substantially equal periodic payments 
made at least annually for the life of the employee.
      Certain amounts held in a qualified retirement plan that 
includes a qualified cash-or-deferred arrangement (a ``401(k) 
plan'') or in a 403(b) annuity may not be distributed before 
severance from employment, age 59\1/2\, death, disability, or 
financial hardship of the employee. Amounts deferred under a 
governmental 457 plan may not be distributed before severance 
from employment, age 70\1/2\, or an unforeseeable emergency of 
the employee.
            Loans from retirement plans
      An individual is permitted to borrow from a qualified 
plan in which the individual participates (and to use his or 
her accrued benefit as security for the loan) provided the loan 
bears a reasonable rate of interest, is adequately secured, 
provides a reasonable repayment schedule, and is not made 
available on a basis that discriminates in favor of employees 
who are officers, shareholders, or highly compensated.
      Subject to certain exceptions, a loan from a qualified 
employer plan to a plan participant is treated as a taxable 
distribution of plan benefits. A qualified employer plan 
includes a qualified retirement plan under section 401(a), a 
qualified annuity plan under section 403(a), a tax-deferred 
annuity under section 403(b), and any plan that was (or was 
determined to be) a qualified employer plan or a governmental 
plan.
      An exception to this general rule of income inclusion is 
provided to the extent that the loan (when added to the 
outstanding balance of all other loans to the participant from 
all plans maintained by the employer) does not exceed the 
lesser of (1) $50,000 reduced by the excess of the highest 
outstanding balance of loans from such plans during the one-
year period ending on the day before the date the loan is made 
over the outstanding balance of loans from the plan on the date 
the loan is made or (2) the greater of $10,000 or one half of 
the participant's accrued benefit under the plan (sec. 72(p)). 
This exception applies only if the loan is required, by its 
terms, to be repaid within five years. An extended repayment 
period is permitted for the purchase of the principal residence 
of the participant. Plan loan repayments (principal and 
interest) must be amortized in level payments and made not less 
frequently than quarterly, over the term of the loan.
            Plan amendments
      Present law provides a remedial amendment period during 
which, under certain circumstances, a plan may be amended 
retroactively in order to comply with the qualification 
requirements (sec. 401(b)). In general, plan amendments 
required to reflect changes in the law generally must be made 
by the time prescribed by law for filing the income tax return 
of the employer for the employer's taxable year in which the 
change in law occurs. The Secretary of the Treasury may extend 
the time by which plan amendments need to be made.

Use of retirement funds related to disaster relief for Hurricanes 
        Katrina, Rita, and Wilma

            In general
      Section 1400Q provides exceptions to certain rules 
regarding distributions from retirement plans, for loans from 
retirement plans, and for plan amendments to retirement 
plans.\67\
---------------------------------------------------------------------------
      \67\The relief with respect to Hurricane Katrina was initially 
provided in the Katrina Emergency Relief Act of 2005 (Pub. L. No. 109-
73). The IRS provided guidance on those relief provisions in Notice 
2005-92, 2005-2 CB 1165. The relief was codified in section 1400Q and 
was expanded to the Hurricanes Rita and Wilma Disaster Areas in the 
Gulf Opportunity Zone Act of 2005 (Pub. L. No. 109-135)
---------------------------------------------------------------------------
            Tax favored withdrawals from retirement plans
      Section 1400Q(a) provides an exception to the 10-percent 
early withdrawal tax in the case of a qualified hurricane 
distribution from a qualified retirement or annuity plan, a 
403(b) annuity, or an IRA. In addition, as discussed more fully 
below, income attributable to a qualified hurricane 
distribution may be included in income ratably over three 
years, and the amount of a qualified hurricane distribution may 
be recontributed to an eligible retirement plan within three 
years.
      A qualified hurricane distribution includes certain 
distributions from an eligible retirement plan related to 
Hurricanes Katrina, Wilma, and Rita. Specifically, qualified 
hurricane distributions include the following distributions 
from an eligible retirement plan: any distribution made on or 
after August 25, 2005, and before January 1, 2007, to an 
individual whose principal place of abode on August 28, 2005, 
is located in the Hurricane Katrina Disaster Area and who has 
sustained an economic loss by reason of Hurricane Katrina; any 
distribution made on or after September 23, 2005, and before 
January 1, 2007, to an individual whose principal place of 
abode on September 23, 2005, is located in the Hurricane Rita 
Disaster Area and who has sustained an economic loss by reason 
of Hurricane Rita; and any distribution made on or after 
October 23, 2005, and before January 1, 2007, to an individual 
whose principal place of abode on October 23, 2005, is located 
in the Hurricane Wilma Disaster Area and who has sustained an 
economic loss by reason of Hurricane Wilma.
      The total amount of qualified hurricane distributions 
that an individual can receive from all plans, annuities, or 
IRAs is $100,000. Thus, any distributions in excess of $100,000 
during the applicable periods are not qualified hurricane 
distributions.
      Any amount required to be included in income as a result 
of a qualified hurricane distribution is included in income 
ratably over the three-year period beginning with the year of 
distribution unless the individual elects not to have ratable 
inclusion apply.
      Any portion of a qualified hurricane distribution may, at 
any time during the three-year period beginning the day after 
the date on which the distribution was received, be 
recontributed to an eligible retirement plan to which a 
rollover can be made. Any amount recontributed within the 
three-year period is treated as a rollover and thus is not 
includible in income. For example, if an individual receives a 
qualified hurricane distribution in 2005, that amount is 
included in income, generally ratably over the year of the 
distribution and the following two years, but is not subject to 
the 10-percent early withdrawal tax. If, in 2007, the amount of 
the qualified hurricane distribution is recontributed to an 
eligible retirement plan, the individual may file an amended 
return (or returns) to claim a refund of the tax attributable 
to the amount previously included in income. In addition, if, 
under the ratable inclusion provision, a portion of the 
distribution has not yet been included in income at the time of 
the contribution, the remaining amount is not includible in 
income.
      A qualified hurricane distribution is a permissible 
distribution from a 401(k) plan, 403(b) annuity, or 
governmental 457 plan, regardless of whether a distribution 
would otherwise be permissible. A plan is not treated as 
violating any Code requirement merely because it treats a 
distribution as a qualified hurricane distribution, provided 
that the aggregate amount of such distributions from plans 
maintained by the employer and members of the employer's 
controlled group does not exceed $100,000. A plan is not 
treated as violating any Code requirement merely because an 
individual might receive total distributions in excess of 
$100,000, taking into account distributions from plans of other 
employers or IRAs.
      Qualified hurricane distributions are subject to the 
income tax withholding rules applicable to distributions other 
than eligible rollover distributions. Thus, 20-percent 
mandatory withholding does not apply.
            Recontributions of withdrawals for home purchases
      Section 1400Q(b) generally provides that a distribution 
received from a 401(k) plan, 403(b) annuity, or IRA in order to 
purchase a home in the Hurricane Katrina, Rita, or Wilma 
disaster areas may be recontributed to such a plan, annuity, or 
IRA in certain circumstances.
      The ability to recontribute applies to an individual who 
receives a qualified distribution. A qualified distribution is 
a hardship distribution from a 401(k) plan or 403(b) annuity, 
or a qualified first-time homebuyer distribution from an IRA, 
that is a qualified Katrina distribution, a qualified Rita 
distribution, or a qualified Wilma distribution.
      A qualified Katrina distribution is a distribution: (1) 
that is received after February 28, 2005, and before August 29, 
2005; and (2) that was to be used to purchase or construct a 
principal residence in the Hurricane Katrina disaster area, but 
the residence is not purchased or constructed on account of 
Hurricane Katrina. Any portion of a qualified Katrina 
distribution may, during the period beginning on August 25, 
2005, and ending on February 28, 2006, be recontributed to a 
plan, annuity or IRA to which a rollover is permitted.
      A qualified Hurricane Rita distribution is a 
distribution: (1) that is received after February 28, 2005, and 
before September 24, 2005; and (2) that was to be used to 
purchase or construct a principal residence in the Hurricane 
Rita disaster area, but the residence is not purchased or 
constructed on account of Hurricane Rita. Any portion of a 
qualified Hurricane Rita distribution may, during the period 
beginning on September 23, 2005, and ending on February 28, 
2006, be recontributed to a plan, annuity or IRA to which a 
rollover is permitted.
      A qualified Hurricane Wilma distribution is a 
distribution: (1) that is received after February 28, 2005, and 
before October 24, 2005; and (2) that was to be used to 
purchase or construct a principal residence in the Hurricane 
Wilma disaster area, but the residence is not purchased or 
constructed on account of Hurricane Wilma. Any portion of a 
qualified Hurricane Wilma distribution may, during the period 
beginning on October 23, 2005, and ending on February 28, 2006, 
be recontributed to a plan, annuity or IRA to which a rollover 
is permitted.
      Any amount recontributed is treated as a rollover. Thus, 
that portion of the qualified distribution is not includible in 
income (and also is not subject to the 10-percent early 
withdrawal tax).
            Loans from qualified plans to individuals sustaining an 
                    economic loss
      Section 1400Q(c) provides an exception to the income 
inclusion rule for loans from a qualified employer plan related 
to Hurricanes Katrina, Rita, and Wilma made to a qualified 
individual during an applicable period and provides a repayment 
delay for loans that are outstanding on or after a qualified 
beginning date if the due date for any repayment with respect 
to such loan occurs after the qualified beginning date and 
December 31, 2006.
      The exception to the general rule of income inclusion is 
provided to the extent that the loan (when added to the 
outstanding balance of all other loans to the participant from 
all plans maintained by the employer) does not exceed the 
lesser of (1) $100,000 reduced by the excess of the highest 
outstanding balance of loans from such plans during the one-
year period ending on the day before the date the loan is made 
over the outstanding balance of loans from the plan on the date 
the loan is made or (2) the greater of $10,000 or the 
participant's accrued benefit under the plan.
      In the case of a qualified individual with an outstanding 
loan on or after the qualified beginning date from a qualified 
employer plan, if the due date for any repayment with respect 
to such loan occurs during the period beginning on the 
qualified beginning date, and ending on December 31, 2006, such 
due date is delayed for one year. Any subsequent repayments 
with respect to such loan shall be appropriately adjusted to 
reflect the delay in the due date and any interest accruing 
during such delay. The period during which required repayment 
is delayed is disregarded in complying with the requirements 
that the loan be repaid within five years and that level 
amortization payments be made.
      A qualified individual entitled to this plan loan relief 
includes a qualified Katrina individual, a qualified Rita 
individual, or a qualified Wilma individual. A qualified 
Hurricane Katrina individual is an individual whose principal 
place of abode on August 28, 2005, is located in the Hurricane 
Katrina disaster area and who has sustained an economic loss by 
reason of Hurricane Katrina. The qualified beginning date for a 
qualified Katrina individual is August 25, 2005 and the 
applicable period is the period beginning on September 24, 
2005, and ending December 31, 2006.
      A qualified Hurricane Rita individual is an individual 
whose principal place of abode on September 23, 2005, is 
located in a Hurricane Rita disaster area and who has sustained 
an economic loss by reason of Hurricane Rita. The qualified 
beginning date for a qualified Hurricane Rita individual is 
September 23, 2005, and the applicable period is the period 
beginning on September 23, 2005, and ending on December 31, 
2006.
      A qualified Hurricane Wilma individual is an individual 
whose principal place of abode on October 23, 2005, is located 
in a Hurricane Wilma disaster area and who has sustained an 
economic loss by reason of Hurricane Wilma. The qualified 
beginning date for a qualified Hurricane Wilma individual is 
October 23, 2005, and the applicable period is the period 
beginning on October 23, 2005, and ending on December 31, 2006.
      An individual cannot be a qualified individual with 
respect to more than one hurricane.
            Plan amendments relating to Hurricanes Katrina, Rita, and 
                    Wilma
      Section 1400Q(d) permits certain plan amendments made 
pursuant to any provision in section 1400Q, or regulations 
issued thereunder, to be retroactively effective. If the plan 
amendment meets the requirements of section 1400Q, then the 
plan will be treated as being operated in accordance with its 
terms. In order for this treatment to apply, the plan amendment 
is required to be made on or before the last day of the first 
plan year beginning on or after January 1, 2007, or such later 
date as provided by the Secretary of the Treasury. Governmental 
plans are given an additional two years in which to make 
required plan amendments. If the amendment is required to be 
made to retain qualified status as a result of the changes made 
by section 1400Q (or regulations), the amendment is required to 
be made retroactively effective as of the date on which the 
change became effective with respect to the plan, and the plan 
is required to be operated in compliance until the amendment is 
made. Amendments that are not required to retain qualified 
status but that are made pursuant to section 1400Q may be made 
retroactively effective as of the first day the plan is 
operated in accordance with the amendment. A plan amendment 
will not be considered to be pursuant to section 1400Q (or 
regulations) if it has an effective date before the effective 
date of the provision (or regulations) to which it relates.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides relief similar to the 
relief provided in section 1400Q with respect to use of 
retirement funds in connection with the tornadoes and storms 
that occurred in the Kansas disaster area.
      Effective date. The provision is effective on the date of 
enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

      6. Modification of the advanced coal project credit and the 
gasification project credit (Sec. 15346 of the conference agreement and 
                     secs. 48A and 48B of the Code)


                              PRESENT LAW

Advanced coal project credit

      An investment tax credit is available for power 
generation projects that use integrated gasification combined 
cycle (``IGCC'') or other advanced coal-based electricity 
generation technologies.\68\ The credit amount is 20 percent 
for investments in qualifying IGCC projects and 15 percent for 
investments in qualifying projects that use other advanced 
coal-based electricity generation technologies.
---------------------------------------------------------------------------
      \68\Sec. 48A.
---------------------------------------------------------------------------
      To qualify, an advanced coal project must be located in 
the United States and use an advanced coal-based generation 
technology to power a new electric generation unit or to 
retrofit or repower an existing unit. Generally, an electric 
generation unit using an advanced coal-based technology must be 
designed to achieve a 99 percent reduction in sulfur dioxide 
and a 90 percent reduction in mercury, as well as to limit 
emissions of nitrous oxide and particulate matter.\69\
---------------------------------------------------------------------------
      \69\For advanced coal project certification applications 
submitted after October 2, 2006, an electric generation unit using 
advanced coal-based generation technology designed to use subbituminous 
coal can meet the performance requirement relating to the removal of 
sulfur dioxide if it is designed either to remove 99 percent of the 
sulfur dioxide or to achieve an emission limit of 0.04 pounds of sulfur 
dioxide per million British thermal units on a 30-day average.
---------------------------------------------------------------------------
      The fuel input for a qualifying project, when completed, 
must use at least 75 percent coal. The project, consisting of 
one or more electric generation units at one site, must have a 
nameplate generating capacity of at least 400 megawatts, and 
the taxpayer must provide evidence that a majority of the 
output of the project is reasonably expected to be acquired or 
utilized.
      Credits are available only for projects certified by the 
Secretary of the Treasury, in consultation with the Secretary 
of Energy. Certifications are issued using a competitive 
bidding process. The Secretary of Treasury must establish a 
certification program no later than 180 days after August 8, 
2005,\70\ and each project application must be submitted during 
the three-year period beginning on the date such certification 
program is established. An applicant for certification has two 
years from the date the Secretary accepts the application to 
provide the Secretary with evidence that the requirements for 
certification have been met. Upon certification, the applicant 
has five years from the date of issuance of the certification 
to place the project in service.
---------------------------------------------------------------------------
      \70\The Secretary issued guidance establishing the certification 
program on February 21, 2006 (IRS Notice 2006-24).
---------------------------------------------------------------------------
      The Secretary of the Treasury may allocate $800 million 
of credits to IGCC projects and $500 million to projects using 
other advanced coal-based electricity generation technologies. 
Qualified projects must be economically feasible and use the 
appropriate clean coal technologies. With respect to IGCC 
projects, credit-eligible investments include only investments 
in property associated with the gasification of coal, including 
any coal handling and gas separation equipment. Thus, 
investments in equipment that could operate by drawing fuel 
directly from a natural gas pipeline do not qualify for the 
credit.
      In determining which projects to certify that use IGCC 
technology, the Secretary must allocate power generation 
capacity in relatively equal amounts to projects that use 
bituminous coal, subbituminous coal, and lignite as primary 
feedstock. In addition, the Secretary must give high priority 
to projects which include greenhouse gas capture capability, 
increased by-product utilization, and other benefits.

Gasification project credit

      A 20-percent investment tax credit is also available for 
investments in certain qualifying coal gasification 
projects.\71\ Only property which is part of a qualifying 
gasification project and necessary for the gasification 
technology of such project is eligible for the gasification 
credit.
---------------------------------------------------------------------------
      \71\Sec. 48B.
---------------------------------------------------------------------------
      Qualified gasification projects convert coal, petroleum 
residue, biomass, or other materials recovered for their energy 
or feedstock value into a synthesis gas composed primarily of 
carbon monoxide and hydrogen for direct use or subsequent 
chemical or physical conversion. Qualified projects must be 
carried out by an eligible entity, defined as any person whose 
application for certification is principally intended for use 
in a domestic project which employs domestic gasification 
applications related to (1) chemicals, (2) fertilizers, (3) 
glass, (4) steel, (5) petroleum residues, (6) forest products, 
and (7) agriculture, including feedlots and dairy operations.
      Credits are available only for projects certified by the 
Secretary of the Treasury, in consultation with the Secretary 
of Energy. Certifications are issued using a competitive 
bidding process. The Secretary of the Treasury must establish a 
certification program no later than 180 days after August 8, 
2005,\72\ and each project application must be submitted during 
the three-year period beginning on the date such certification 
program is established. The Secretary of the Treasury may not 
allocate more than $350 million in credits. In addition, the 
Secretary may certify a maximum of $650 million in qualified 
investment as eligible for credit with respect to any single 
project.
---------------------------------------------------------------------------
      \72\The Secretary issued guidance establishing the certification 
program on February 21, 2006 (IRS Notice 2006-25).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      In implementing either section 48A (relating to the 
credit described above) or section 48B (relating to the coal 
gasification credit), the provision directs the Secretary to 
modify the terms of any competitive certification award and any 
associated closing agreements in certain cases. Specifically, 
modification is required when it (1) is consistent with the 
objectives of such section, (2) is requested by the recipient 
of the award, and (3) involves moving the project site to 
improve the potential to capture and sequester carbon dioxide 
emissions, reduce costs of transporting feedstock, and serve a 
broader customer base. However, no modification is required if 
the Secretary determines that the dollar amount of tax credits 
available to the taxpayer under the applicable section would 
increase as a result of the modification or such modification 
would result in such project not being originally certified. In 
considering any such modification, the Secretary must consult 
with other relevant Federal agencies, including the Department 
of Energy.

                             EFFECTIVE DATE

      The provision is effective for credit allocation awards 
issued before, on, or after the date of enactment.

                      D. Other Revenue Provisions


1. Limitation on farming losses of certain taxpayers (sec. 12501 of the 
 Senate amendment, sec. 15351 of the conference agreement and sec. 461 
                              of the Code)


                              PRESENT LAW

      For taxpayers who materially participate (as defined in 
section 469(h)) in a farming activity, net farming losses are 
reported in full as a reduction to income from both passive and 
nonpassive sources. For taxpayers who do not materially 
participate in a farming activity, the passive activity rules 
of section 469 limit the ability to use such losses to reduce 
income from nonpassive sources.
      Farming income generally includes sales of livestock, 
produce, grains, and other products; cooperative distributions; 
Agricultural Program Payments; certain Commodity Credit 
Corporation (``CCC'') loans (if an election is made to include 
loan proceeds in income in the year received); certain crop 
insurance proceeds and federal crop disaster payments; and 
other income. Farm expenses generally include feed, 
fertilizers, gasoline, fuel, and oil; insurance; interest; 
hired labor; rent and lease payments; repairs and maintenance; 
taxes; utilities; depreciation; and other business-related 
expenses. Living expenses and other personal expenses are not 
deductible farming expenses.
      Present law (section 263A(e)(4))\73\ defines a farming 
business as the trade or business of farming, including the 
trade or business of operating a nursery or sod farm, or the 
raising or harvesting of trees bearing fruit, nuts, or other 
crops, or ornamental trees (excluding evergreen trees that are 
more than six years old at the time severed from the roots). 
Treasury regulation section 1.263A-4(a)(4) further provides 
that a farming business generally means a trade or business 
involving the cultivation of land or the raising or harvesting 
of any agricultural or horticultural commodity. The raising, 
shearing, feeding, caring for, training, and management of 
animals are included in this definition. For example, the 
raising of cattle for sale is considered a farming business. 
However, the mere buying and reselling of plants or animals 
grown or raised entirely by another is not considered to be 
raising an agricultural or horticultural commodity. While a 
farming business does include processing activities that are 
normally incident to the growing, raising, or harvesting of 
agricultural or horticultural products (e.g., harvesting, 
washing, inspecting, and packing fruits and vegetables for 
sale), it does not include the processing of commodities or 
products beyond those activities that are normally incident to 
the growing, raising, or harvesting of such products.
---------------------------------------------------------------------------
      \73\This is the same definition of ``farming business'' used for 
averaging of farm income under section 1301.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment limits the amount of losses that can 
be claimed by an individual, estate, trust, or partnership on 
Schedule F to $200,000 in cases where the taxpayer has received 
Agricultural Program Payments or CCC loans. Losses that are 
limited in a particular year may be carried forward to 
subsequent years.
      Effective date.--The provision is effective for taxable 
years beginning after December 31, 2007.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
with modifications. The conference agreement limits the farming 
loss of a taxpayer, other than a C corporation, for any taxable 
year in which any applicable subsidies are received to the 
greater of (1) $300,000 ($150,000 in the case of a married 
person filing a separate return), or (2) the taxpayer's total 
net farm income for the prior five taxable years. For purposes 
of the provision, applicable subsidies are (1) any direct or 
counter-cyclical payments under title I of the Food, 
Conservation, and Energy Act of 2008 (or any payment elected in 
lieu of any such payment), or (2) any CCC loan. Total net farm 
income is an aggregation of all income and loss from farming 
businesses for the prior five taxable years.
      The following examples illustrate the operation of this 
provision:
      Example 1.--Assume an individual taxpayer has $1 million 
of net income from a farming business in each taxable year 2010 
to 2014, and incurs a $5 million farming loss in 2015. For 
purposes of this provision, the farming loss in 2015 is limited 
to the greater of (1) $300,000 or (2) $5 million (total net 
farm income for the prior five taxable years). Thus, the 
farming loss is allowable in full in 2015. Assuming the 
taxpayer had no other income or deductions in any of the 
taxable years 2010 to 2015, the $5 million net operating loss 
for 2015 is carried back to the prior five taxable years under 
the present-law net operating loss carryback rules and reduces 
the taxpayer's taxable income in each of those years to 
zero.\74\
---------------------------------------------------------------------------
      \74\Under section 172(b)(1)(G), farming losses may be carried 
back to each of the five taxable years preceding the taxable year of 
the loss.
---------------------------------------------------------------------------
      Example 2.--Assume an individual taxpayer has $300,000 of 
net farm income and $700,000 of non-farm income in 2010, and $1 
million of net farm income in each taxable year 2011 to 2014. 
In 2015, the taxpayer incurs a $7 million farming loss. For 
purposes of this provision, the farming loss in 2015 is limited 
to the greater of (1) $300,000 or (2) $4.3 million (total net 
farm income for the prior five taxable years). Thus, $2.7 
million of the farming loss is disallowed under the provision 
and will be treated as a deduction attributable to a farming 
business in 2016. The $4.3 million farming loss allowed for 
2015 is carried back to the prior five taxable years and 
allowed as a deduction under present-law rules. The taxpayer's 
taxable income in each of the years 2010\75\ to 2013 is reduced 
to zero and taxable income in 2014 is reduced by the remaining 
farm loss of $300,000 to $700,000.
---------------------------------------------------------------------------
      \75\The loss carryback to 2010 reduces both the $300,000 of net 
farm income and $700,000 of non-farm income to zero.
---------------------------------------------------------------------------
      For purposes of calculating total net farm income for the 
prior five years, losses that are limited under the provision 
are taken into account in the year in which they are allowed as 
a deduction. For example, if a taxpayer has a $500,000 excess 
farm loss in 2010 that is not allowed as a deduction until 
2012, the calculation in 2011 of total net farm income for the 
prior five years does not take into account the $500,000 as a 
farm loss. Instead, the $500,000 loss would be included in the 
calculation of prior year's total net farm income for taxable 
years 2013 through 2017. In the case where the filing status of 
the taxpayer is not the same for the taxable year and each of 
the taxable years in the five-year period, the Treasury 
Department is authorized to provide guidance for the 
computation of total net farm income.
      In the case of a partnership or S corporation, the limit 
is applied at the partner or shareholder level.\76\ Therefore, 
each partner or shareholder takes into account its 
proportionate share of income, gain, or deduction from farming 
businesses of a partnership or S corporation, and any 
applicable subsidies received by a partnership or S corporation 
during the taxable year (regardless of whether such items are 
treated as income for Federal tax purposes).
---------------------------------------------------------------------------
      \76\The Treasury Department may provide guidance for the 
application of this provision to any other pass-thru entity to the 
extent necessary to carry out the purposes of this provision. In the 
case of tiered partnership or pass-thru entity structures, the Treasury 
Department may provide guidance as necessary to carry out the purposes 
of this provision.
---------------------------------------------------------------------------
      For purposes of the provision, the term ``farming 
business'' has the meaning provided in present-law section 
263A(e)(4), with a modification for certain processing 
activities. Thus, for purposes of this provision, the 
conference agreement broadens the definition of ``farming 
business'' to include the processing of commodities, without 
regard to whether such activity is incidental, by a taxpayer 
otherwise engaged in a farming business with respect to such 
commodities. The farming activities of a cooperative are 
attributed to each member for purposes of this rule. Thus, a 
member of a cooperative who raises a commodity and sells it to 
the cooperative for processing is considered to be the 
processor of such commodity. In this case, patronage dividends 
received from a cooperative that is engaged in a farming 
business are considered to be income from a farming business 
for purposes of this provision.
      As under the Senate amendment, any loss that is 
disallowed under the provision in a particular year is carried 
forward to the next taxable year and treated as a deduction 
attributable to farming businesses in that year.
      Farming losses arising by reason of fire, storm, or other 
casualty, or by reason of disease or drought, are disregarded 
for purposes of calculating the limitation.
      Treasury regulatory authority is provided to prescribe 
such additional reporting requirements as appropriate to carry 
out the purposes of this provision.
      Effective date.--The provision is effective for taxable 
years beginning after December 31, 2009.

 2. Increase and index dollar thresholds for farm optional method and 
nonfarm optional method for computing net earnings from self-employment 
   (sec. 12502 of the Senate amendment, sec. 15352 of the conference 
                agreement and sec. 1402(a) of the Code)


                              PRESENT LAW

In general

      Generally, tax under the Self-Employment Contributions 
Act (SECA) is imposed on the self-employment income of an 
individual. SECA tax has two components. Under the old-age, 
survivors, and disability insurance component, the rate of tax 
is 12.40 percent on self-employment income up to the Social 
Security wage base ($97,500 for 2007). Under the hospital 
insurance component, the rate is 2.90 percent of all self-
employment income (without regard to the Social Security wage 
base).
      Self-employment income subject to the SECA tax is 
determined as the net earnings from self-employment. An 
individual may use one of three methods to calculate net 
earnings from self-employment. Under the generally applicable 
rule, net earnings from self-employment means gross income 
(including the individual's net distributive share of 
partnership income) derived by an individual from any trade or 
business carried on by the individual, less the deductions 
attributable to the trade or business that are allowed under 
the SECA tax rules. Alternatively, an individual may elect to 
use one of two optional methods for calculating net earnings 
from self-employment. These methods are: (1) the farm optional 
method; and (2) the nonfarm optional method. The farm optional 
method allows individuals to pay SECA taxes (and secure Social 
Security benefit coverage) when they have low net income or 
losses from farming. The nonfarm optional method is similar to 
the farm optional method.

Farm optional method

      If an individual is engaged in a farming trade or 
business, either as a sole proprietor or as a partner, the 
individual may elect to use the farm optional method in one of 
two instances. The first instance is an individual engaged in a 
farming business who has gross farm income of $2,400 or less 
for the taxable year. In this instance, the individual may 
elect to report two-thirds of gross farm income as net earnings 
from self-employment. In the second instance, an individual 
engaged in a farming business may elect the farm optional 
method even though gross farm income exceeds $2,400 for the 
taxable year but only if the net farm income is less than 
$1,733 for the taxable year. In this second instance, the 
individual may elect to report $1,600 as net earnings from 
self-employment for the taxable year. In all other instances 
(i.e., more than $2,400 of gross farm income and net farm 
income of at least $1,733) a person engaged in a farming 
business must compute net earnings from self-employment under 
the generally applicable rule. There is no limit on the number 
of years that an individual may elect the farm optional method 
during such individual's lifetime.
      The dollar limits in the farm optional method are not 
indexed for inflation.

Nonfarm optional method

      The nonfarm optional method is available only to 
individuals who have been self-employed for at least two of the 
three years before the year in which they seek to elect the 
nonfarm optional method and who meet certain other 
requirements. Specifically, an individual may elect the nonfarm 
optional method if the individual's: (1) net nonfarm income for 
the taxable year is less than $1,733; and (2) net nonfarm 
income for the taxable year is less than 72.189 percent of 
gross nonfarm income. If a qualified individual engaged in a 
nonfarming business who elects the nonfarm optional method has 
gross nonfarm income of $2,400 or less for the taxable year, 
then the individual may elect to report two-thirds of gross 
nonfarm income as net earnings from self-employment. If the 
electing individual engaged in a nonfarming business has gross 
nonfarm income of at least $2,400 for the taxable year, then 
the individual may elect to report $1,600 as net earnings from 
self-employment for the taxable year. In all other instances, a 
person engaged in a nonfarming business must compute net 
earnings from self-employment under the generally applicable 
rule. An individual may elect to use the nonfarm optional 
method for no more than five years in the course of the 
individual's lifetime.
      The dollar limits in the nonfarm optional method are not 
indexed for inflation.

Other rules applicable to farm optional and nonfarm optional methods

      In the case of a cash method trade or business, gross 
income is defined as the gross receipts from such trade or 
business less the cost or other basis of property sold in 
carrying out such trade or business with certain adjustments. 
In the case of an accrual method trade or business, gross 
income is defined as the gross income from the trade or 
business with certain adjustments. If an individual (including 
a member of a partnership) derives gross income from more than 
one trade or business then such gross income (including the 
individual's distributive share of the gross income of any 
partnership) is treated as derived from a single trade or 
business.

Social Security benefit eligibility

      Generally, Social Security benefits can be paid to an 
individual (and dependents or survivors) only if that 
individual has worked long enough in covered employment to be 
insured. Insured status is measured in terms of ``credits,'' 
previously called ``quarters of coverage.'' For this purpose, 
Social Security uses the lifetime record of earnings reported 
for that individual. In the case of a self-employed individual, 
net earnings from self-employment is used to calculate Social 
Security benefit eligibility.
      Up to four quarters of coverage can be earned for a year, 
depending on covered wages for the year and the amount needed 
to earn each quarter of coverage. For 2007, credit for a 
quarter of coverage is provided for each $1,000 of wages.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment modifies the farm optional method so 
that electing taxpayers may be eligible to secure four credits 
of Social Security benefit coverage each taxable year by 
increasing and indexing the thresholds. The provision makes a 
similar modification to the nonfarm optional method.
      Effective date.--The provision is effective for taxable 
years beginning after December 31, 2007.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

3. Information reporting for commodity credit corporation transactions 
   (Sec. 12503 of the Senate amendment, sec. 15353 of the conference 
               agreement and new sec. 6039J of the Code)


                              PRESENT LAW

      The Farm Security and Rural Investment Act of 2002\77\ 
authorizes a marketing assistance loan program through the 
Commodity Credit Corporation (``CCC''). Under such program, the 
CCC may make loans for eligible commodities at a specified rate 
per unit of commodity (the original loan rate). The repayment 
amount for such a loan secured by an eligible commodity 
generally is based on the lower of the original loan rate or 
the alternative repayment rate, as determined by the CCC, as of 
the date of repayment. The alternative repayment rate may be 
adjusted to reflect quality and location for each type of 
commodity. A taxpayer receiving a CCC loan can use cash to 
repay such a loan, purchase CCC certificates for use in 
repayment of the loan, or deliver the pledged collateral as 
full payment for the loan at maturity.
---------------------------------------------------------------------------
      \77\Pub. L. No. 107-171.
---------------------------------------------------------------------------
      If a taxpayer uses cash or CCC certificates to repay a 
CCC loan, and the loan is repaid at a time when the repayment 
rate is less than the original loan rate, the difference 
between the original loan amount and the lesser repayment 
amount is market gain. Regardless of whether a taxpayer repays 
a CCC loan in cash or uses CCC certificates in repayment of the 
loan, the market gain is taken into account either as income or 
as an adjustment to the basis of the commodity (if the taxpayer 
has made an election under section 77).
      If a farmer uses cash instead of certificates, the farmer 
will receive a Form CCC-1099-G Information Return showing the 
market gain realized. For transactions prior to January 1, 
2007, however, if a farmer uses CCC certificates to facilitate 
repayment of a CCC loan, the farmer will not receive an 
information return. For loans repaid on or after January 1, 
2007, IRS Notice 2007-63 provides that the CCC reports market 
gain associated with the repayment of a CCC loan whether the 
taxpayer repays the loan with cash or uses CCC certificates in 
repayment of the loan.\78\ The CCC reports the market gain on 
Form 1099-G, Certain Government Payments.
---------------------------------------------------------------------------
      \78\2007-33 IRB.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment codifies the requirements of IRS 
Notice 2007-63 providing that the CCC reports market gain 
associated with the repayment of a CCC loan, regardless of 
whether the taxpayer repays the loan with cash or uses CCC 
certificates in repayment of the loan.
      Effective date.--The provision is effective for loans 
repaid on or after January 1, 2007.

                          CONFERENCE AGREEMENT

      The conference agreement includes the Senate amendment 
provision.

                    E. Protection of Social Security


(Sec. 15361 of the conference agreement)

      To ensure that the assets of the trust funds established 
under section 201 of the Social Security Act are not reduced as 
the result of the enactment of this Act, the Secretary of the 
Treasury shall transfer certain amounts annually from the 
general revenues of the Federal Government to those trust 
funds.

                          IV. TRADE PROVISIONS


                 A. Extension of Certain Trade Benefits


(Secs. 15401-15407 and 15410-15411 of the conference agreement)

                              PRESENT LAW

      Sec. 213A of the Caribbean Basin Recovery Act (19 U.S.C. 
2703a) establishes the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006 (``HOPE I''). HOPE I 
extended preferences to Haiti for apparel meeting certain rules 
of origin, and for certain automotive wire harnesses.
      With respect to apparel, HOPE I extended preferential 
treatment to three categories of apparel: (1) apparel meeting a 
value-added rule of origin; (2) limited quantities of woven 
apparel wholly assembled in Haiti; and (3) brassieres meeting a 
cut and sew requirement.
      HOPE I (in section 213A(d)) conditions Haiti's 
eligibility for these preferences on the President determining 
and certifying that Haiti has either established, or is making 
continual progress towards establishing, protection of 
internationally recognized worker rights. These rights include 
the right of association, the right to organize and bargain 
collectively, a prohibition on the use of any form of forced or 
compulsory labor, a minimum age of employment of children, and 
acceptable conditions of work with respect to minimum wages, 
hours of work, and occupational safety and health.
      The use of the HOPE I preference program has been very 
limited to date.
      In fact, just 1.6% of Haiti's apparel exports in 2007 
were under the HOPE I program. The Conferees believe that the 
limited use of the program is largely attributable to HOPE I's 
complex value-added rule of origin. As a result, the economic 
benefits--namely, new investment and significant new job 
creation--that the preference program was intended to spread 
widely to foster stability and security in Haiti have not been 
forthcoming.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      To address the deficiencies in HOPE I, the conference 
report includes the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2008 (HOPE II), which provides 
additional ways (under simplified rules) that Haitian apparel 
can qualify for duty-free treatment, as well as authorizing a 
new apparel sector labor capacity building and monitoring 
program (the Technical Assistance Improvement and Compliance 
Needs Assessment and Remediation Program or ``TAICNAR 
program'') to ensure the benefits of the new preferences are 
spread widely. The Conferees intend HOPE II to help Haitian 
industry attract new investment and create immediate jobs, 
generate income for workers to cover increased food costs and 
pay for other necessities, and continue to provide incentives 
to encourage the use of inputs manufactured by U.S. companies.
      Key aspects of the HOPE II apparel provisions are 
outlined below. The Conferees note that HOPE II creates six 
discrete stand alone rules for apparel (and some textile) 
products to qualify for preferential treatment: (1) the value-
added rule (as provided for in HOPE I, subject to a change in 
the cap); (2) a capped benefit for woven apparel meeting a 
wholly assembled/knit-to-shape rule; (3) a capped benefit for 
certain knit apparel meeting a wholly assembled/knit-to-shape 
rule; (4) an uncapped benefit for certain types of apparel 
meeting a wholly assembled/knit-to-shape rule; (5) an uncapped 
benefit for apparel meeting a wholly assembled/knit-to-shape 
rule under the ``3 for 1'' Earned Import Allowance Program; and 
(6) an uncapped benefit for apparel meeting a wholly assembled/
knit-to-shape rule, where the apparel is made from ``short 
supply'' yarns or fabrics. The Conferees note that if a capped 
benefit is filled in a given year, an importer can still use 
one or more of the other rules. In addition, apparel from Haiti 
may also qualify for preferential access to the U.S. market 
under the United States-Caribbean Basin Trade Partnership Act 
(Title II of Public Law 106-200) (CBTPA).
      Ten Year Duration.--The conference report extends most 
apparel preferences, including all apparel preferences created 
under HOPE II, for 10 years, until September 30, 2018. The ten 
year duration is aimed at fostering a more stable investment 
climate for businesses seeking to use HOPE I or II preferences.
      Expanded Preferences for Woven Apparel.--The conference 
report expands the HOPE I ``woven apparel cap'' to 70 million 
square meters equivalents (``SMEs''), and extends the benefit 
for 10 years. Apparel exported under this provision can qualify 
for preferences if the apparel is ``wholly assembled'' or knit-
to-shape, or both, in Haiti, without regard to the origin of 
the fabric (or fabric components, or components knit-to-shape, 
or yarn) comprising the apparel article. The definition of 
``wholly assembled'' is taken from existing Customs 
regulations.
      New Knit Apparel Cap.--HOPE II creates a new ``knit 
apparel cap'' of 70 million SMEs, with exclusions for men's/
boys' cotton t-shirts, men's/boys' mmf t-shirts, certain men's/
boys' sweatshirts/pullovers, and certain men's/boy's cotton-
blend sweatshirts. Apparel exported under this provision can 
qualify for preferences if the apparel is ``wholly assembled'' 
or knit-to-shape, or both, in Haiti, without regard to the 
origin of the fabric (or fabric components, or components knit 
to shape, or yarn) comprising the apparel article.
      Modified Single Transformation Rule for Certain Apparel 
and Certain Luggage.--HOPE II extends preferential treatment to 
certain apparel articles wholly assembled, or knit-to-shape, or 
both, in Haiti, without regard to the origin of the fabric (or 
fabric components, or components knit-to-shape, or yarn) 
comprising the apparel article. The apparel articles covered by 
this provision are: (1) brassieres; (2) those apparel articles 
covered by the Central America-Dominican Republic-United States 
Free Trade Agreement (CAFTA-DR) ``single transformation'' rule; 
(3) headgear; and (4) certain sleepwear.
      With regard to covered sleepwear, HOPE II extends 
preferences to women's and girls' pajama bottoms (i.e., sleep 
pants), regardless of whether such bottoms are a separate 
garment or are part of a set.
      HOPE II also extends preferential treatment to luggage 
and handbags wholly assembled in Haiti, without regard to the 
source of the fabric, materials or components. The Conferees 
did not include the concept of knit-to-shape in this provision, 
because such processing does not typically occur for such 
luggage/handbags.
      ``3 for 1'' EIA Program for Knit or Woven Apparel.--HOPE 
II creates a ``3 for 1'' earned import allowance program (EIA) 
to be developed and administered by the Secretary of Commerce. 
Under the ``3 for 1'' EIA, Haitian producers or entities 
controlling production that purchase qualifying fabric for 
apparel production in Haiti may export other apparel to the 
United States duty-free, and not subject to quantitative 
limitations, regardless of the origin of the fabric (or fabric 
components, components knit to shape, or yarns) from which the 
apparel product is made. Specifically, for every 3 SMEs of 
qualifying fabric purchased, a producer or entity controlling 
production receives a ``credit'' for 1 SME that can be used in 
the manufacture of apparel using non-qualifying fabric (e.g., 
Taiwanese fabric). The Secretary of Commerce is to establish 
electronic ``accounts'' for producers or entities controlling 
production where such ``credits'' can be deposited. A producer 
or entity controlling production can then withdraw these 
credits for an ``earned import allowance certificate'' that 
reflects the requested number of credits. Apparel wholly 
assembled, or knit to shape, or both, in Haiti using non-
qualifying fabric may enter the United States duty-free, if the 
apparel is accompanied by such an ``earned import allowance 
certificate'' that reflects the number of credits equal to the 
SMEs of the apparel for which preferential treatment is sought.
      An example may help illustrate the process: Producer A in 
Haiti purchases 300 SMEs of denim fabric woven in the United 
States using U.S. yarns in order to manufacture jeans in Haiti. 
Producer A, upon submission of documentation supporting the 
purchase of the U.S. denim (such documentation can include 
information submitted by the U.S. textile mill that exported 
the fabric), will receive 100 credits in Producer A's Commerce 
Department account. If Producer A subsequently wants to export 
jeans that are wholly assembled in Haiti to the United States 
duty-free and such jeans are wholly assembled in Haiti from 
Italian denim, Producer A would redeem all or part of the 
accrued 100 credits for the requisite earned import allowance 
certificate. For instance, if the jeans made with the Italian 
fabric account for 50 SMEs, Producer A would request a 
certificate that equaled 50 credits.
      In HOPE II, the Conferees have established principles for 
the ``3 for 1'' EIA program. The Conferees expect and intend 
the Secretary of Commerce to establish additional requirements 
in order to make the program efficient, workable, and 
administrable, and have provided the Secretary with the 
authority to promulgate and enforce such requirements. In 
addition, the Conferees urge the Secretary of Commerce to 
establish the ``3 for 1'' EIA program as an electronic program, 
including with respect to the EIA certificate.
      The Conferees note that woven and knit fabrics are 
treated differently under the HOPE II-created EIA program. 
Specifically, qualifying woven fabric must be wholly formed in 
the United States, from U.S. yarns (subject to some limited 
exceptions). Qualifying knit fabric may be wholly formed or 
knit to shape in the United States, U.S. free trade agreement 
(FTA) partner country or U.S. preference partner country (e.g., 
a beneficiary country under the African Growth and Opportunity 
Act), or any combination, from U.S. yarns (subject to some 
limited exceptions).
      Modified Single Transformation Rule for Apparel Made from 
``Short Supply'' Fabrics/Yarns.--HOPE II also includes a 
provision to extend duty-free treatment to any apparel article 
wholly assembled or knit to shape, or both, in Haiti where the 
apparel article is made from fabrics or yarns designated as not 
being available in commercial quantities under any U.S. 
preference program or FTA, or is covered by certain provisions 
of Annex 401 of the NAFTA (i.e., those provisions which extend 
duty-free treatment to apparel notwithstanding the origin of 
fabric or yarns). The Conferees note that the entire apparel 
article need not be made from a ``short supply'' fabric or 
yarn--only the fabric, fabric components, components knit to 
shape, or yarns that make up the component that determines the 
tariff classification of the article need be made of ``short 
supply'' fabrics or yarns for entry under this rule.
      Transition Value-Added Rule.--HOPE II preserves the 
existing value-added rule of origin from HOPE I, but freezes 
the cap for exports qualifying for this rule at the 2008 level 
(i.e., 1.25% of U.S. apparel imports). Under HOPE II, the 
value-added rule retains the termination date provided for in 
HOPE I (five years from enactment of HOPE I). The Conferees 
chose to sunset this provision as provided for in HOPE I and 
not extend the rule for an additional ten years, because 
Haitian exports under the value-added rule have been minimal, 
reflecting the complexity of the rule. The conferee notes that 
more flexible value-added rules applied to apparel in other 
preferential trade arrangements (e.g., the United States-Jordan 
Free Trade Agreement) have been effective in increasing trade.
      Allow Direct Shipment from and Co-production in the 
Dominican Republic.--HOPE II recognizes the unique situation of 
Haiti and the Dominican Republic, the two sovereign nations 
that share the Caribbean island of Hispaniola, and the ties 
between the textile and apparel industries of both countries. 
The Conferees believe that existing ties between the textile 
and apparel industries of both countries should be maintained 
and strengthened. Toward that end, HOPE II allows direct 
shipment from the Dominican Republic of apparel qualifying 
under section 213A, as amended by HOPE II. The direct shipment 
provision will minimize transit times and costs when apparel 
wholly assembled or knit to shape in Haiti is sent to the 
Dominican Republic for packaging or post-assembly operations.
      The Conferees have included direction to the Commissioner 
responsible for U.S. Customs and Border Protection to provide 
technical and other assistance to Haiti and the Dominican 
Republic to develop procedures to prevent unlawful 
transshipment and use of counterfeit documents. The Conferees 
intend that assistance be provided expeditiously and in a 
manner that facilitates trade, and to include assisting Haiti 
and the Dominican Republic in developing a secure electronic 
system to combat unlawful transshipment and use of counterfeit 
documents.
      The Conferees also expect the processing requirement 
necessary for an apparel article to qualify under HOPE II--that 
is, that apparel be wholly assembled or knit to shape, or both, 
in Haiti--to facilitate co-production between Haiti and the 
Dominican Republic. The HOPE II processing requirement does not 
preclude assembly or other operations from occurring outside 
Haiti. Co-production operations performed in the Dominican 
Republic could include, but are not limited to, activities such 
as minor assembly, repair, embellishment, and finishing.
      Clarifications on Administration of Caps.--HOPE II 
clarifies that exports qualifying for preferences under apparel 
provisions not subject to quantitative limitations (e.g., the 
apparel qualifying under the rules contained in section 
213A(b)(3), as amended by HOPE II) should not be included in 
the calculation of any quantitative limitations contained in 
HOPE II. In addition, apparel qualifying under a rule subject 
to a particular cap (e.g., the woven or knit apparel caps in 
section 213A(b)(2), as amended by HOPE II), should not be 
counted against another cap (e.g., the value-added cap, 
included in section 213A(b)(1), as amended by HOPE II). 
Finally, the legislation clarifies that HOPE II benefits are in 
addition to preferences extended to Haitian exports under the 
Caribbean Basin Economic Recovery Act (CBERA), including 
apparel preferences under section 213(b)(2) of the CBERA, as 
amended, and that apparel exports qualifying for preferences 
under 213(b)(2) should not be counted against the quantitative 
limitations established in HOPE II.
      Labor Provisions. The conference agreement amends Section 
213A of the Caribbean Basin Recovery Act to include new 
provisions to promote compliance with core labor standards, as 
enumerated in the legislation, and to improve working 
conditions, in particular in the textile and apparel sector. 
The Conferees recognize that the core labor standards defined 
in the legislation refer to the rights as listed in the 1998 
International Labor Organization Declaration on Fundamental 
Principles and Rights at Work and Its Follow Up. Specifically, 
HOPE II requires that the President certify, within 16 months 
of enactment, that Haiti has created an independent Labor 
Ombudsman's Office responsible for performing the functions set 
forth in the conference agreement and established, with the 
assistance of the International Labor Organization (``ILO''), 
the TAICNAR Program. Unless the President extends the period 
for meeting these requirements, which is permitted under 
certain limited conditions set out in the conference agreement, 
the President is required to terminate Haiti's eligibility for 
preferential treatment under the section.
      The functions of the Labor Ombudsman include overseeing 
the implementation of the TAICNAR Program, maintaining a 
registry of the textile and apparel producers that may seek 
preferential treatment and coordinating a committee comprised 
of representatives of government agencies, employers, and 
workers to consult on the implementation of the TAICNAR Program 
and other matters of common concern. The Labor Ombudsman is 
also responsible for receiving comments from interested parties 
about the labor conditions in the facilities of the registered 
producers and, where such comments are submitted in good faith 
and supported with evidence, directing the comments to the ILO 
or the appropriate Haitian government official. Further, where 
registered producers are found to have deficiencies, the Labor 
Ombudsman also shares responsibility for assisting them in 
complying with core labor standards and national labor laws 
directly relating to the standards and acceptable conditions of 
work with respect to minimum wages, hours of work, and 
occupational health and safety. In performing its functions, 
the Labor Ombudsman is expected to coordinate and consult with 
other appropriate Haitian government officials (e.g., in the 
Ministry of Labor).
      The TAICNAR Program is comprised of two elements. The 
first element of the program is technical assistance from the 
ILO to build Haiti's own capacity to inspect the facilities of 
registered textile and apparel producers, enforce its labor 
laws, and resolve labor disputes. The scope of such assistance 
is broad, including ILO assistance in reviewing national labor 
laws and regulations and bringing them into compliance with 
core labor standards, increasing awareness of worker rights, 
and on-the-job training for labor inspectors, judicial 
officers, and other government officials.
      The second element of the TAICNAR Program is ILO 
assessment of compliance with core labor standards and national 
labor laws in the facilities of the producers registered with 
the Labor Ombudsman and, where necessary, assistance with 
remediating deficiencies. Consistent with existing practice 
under its Better Factories Cambodia and Better Works programs, 
the ILO has a number of tools to perform such assessments, 
including unannounced site visits and confidential interviews 
with management and workers. The results of the assessment are 
reported, confidentially in the first instance, to the 
management and workers (or, where there is union 
representation, worker representatives) together with 
suggestions for remediation of deficiencies. Under the program, 
the ILO then aids the producer in remediating any deficiencies, 
with assistance, if necessary, from the Labor Ombudsman or 
other parties. Every six months, following implementation of 
the TAICNAR Program by Haiti, the ILO is expected to publish a 
public report on the assessments it has conducted during the 
preceding six months. Such reports will identify the specific 
factories assessed and the conditions in these factories.
      To encourage compliance with core labor standards and 
national labor laws directly related to core labor standards, 
the conference agreement provides for preferential treatment to 
be denied in certain circumstances. Specifically, the 
conference agreement directs the President to identify (on a 
biennial basis, beginning in the second year after 
implementation) producers who are failing to comply with these 
compliance conditions. The President is directed to offer 
assistance to any such producers in meeting the compliance 
conditions and, if the assistance is refused or if the producer 
otherwise fails to come into compliance, to withdraw, suspend, 
or limit preferential treatment to articles of the producer. 
The preferential treatment may be reinstated if the President 
later determines that the producer has come into compliance 
with core labor standards and national labor laws directly 
related to core labor standards. In making both the initial 
identification of non-compliant producers and any later 
reinstatement determination, the President is to consider the 
reports of the ILO.

                         B. Extension of CBTPA


(Sec. 15408-15409 of the conference agreement)

                              PRESENT LAW

      The Caribbean Basin Economic Recovery Act (19 U.S.C. 
2703(b)), as amended by the United States-Caribbean Basin Trade 
Partnership Act (Title II of Public Law 106-200) (CBTPA), 
provides that eligible textile and apparel articles of a 
designated CBTPA beneficiary country shall enter the United 
States free of duty and free of quantitative limitations, 
provided that the President determines that the country has 
implemented the necessary procedures and requirements. These 
preference program provisions expire on September 30, 2008.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement amends section 213(b) of the 
Caribbean Basin Economic Recovery Act to extend the Caribbean 
Basin Trade Partnership Act, including the textile and apparel 
preference program provisions, through September 30, 2010.

                     C. Unused Merchandise Drawback


(Sec. 15421 of the conference agreement)

                              PRESENT LAW

      Section 313(j) of the Tariff Act of 1930 (19 U.S.C. 
1313(j)) currently provides for unused merchandise drawback. 
Unused drawback is permitted if imported merchandise is 
exported or destroyed within 3 years of import without being 
used in the United States. Pursuant to section 313(j)(2) of the 
Tariff Act of 1930 (19 U.S.C. 1313(j)(2)), domestic or imported 
merchandise that is commercially interchangeable with the 
imported merchandise may be substituted for the imported 
merchandise and drawback granted on the export or destruction 
of the substituted merchandise within the 3-year period 
beginning on the date of importation. The drawback is limited 
to 99% of the duty, tax and fee imposed under Federal law on 
the imported merchandise upon entry or importation.
      Section 313(j)(2) of the Tariff Act of 1930 does not 
contain a definition of ``commercially interchangeable.'' From 
late 2001 to May 2007, U.S. Customs and Border Protection (CBP) 
paid drawback claims on wine based on white domestic and 
imported table wine being commercially interchangeable with 
relatively valued imported white table wine. Red domestic and 
imported table wine was also considered to be commercially 
interchangeable with relatively valued imported red table wine. 
Relatively valued wine was considered to be wine within a price 
range of 50%.
      CBP informed wine drawback claimants in May 2007 that, 
effective immediately, the above standard for commercial 
interchangeability was no longer applicable. CBP did not 
provide a definitive new standard but stated that the criterion 
of the varietal wine should have been a determining factor in 
determining commercial interchangeability.
      The new provision carries forward the standard used for 
commercial interchangeability from 2001 to May 2007, and 
provides certainty for the filing and processing of unused 
drawback claims for imported and exported wine.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement amends section 313(j)(2) of the 
Tariff Act of 1930, to provide a standard for what is 
considered to be ``commercially interchangeable'' for purposes 
of unused merchandise drawback for wine. The provision is 
effective for claims filed for drawback on or after the date of 
enactment.

   D. Requirements Relating to Determination of Transaction Value of 
                          Imported Merchandise


(Sec. 15422 of the conference agreement)

                              PRESENT LAW

      No provision.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The Conference agreement includes an importer declaration 
requirement for one year to assist in gathering information on 
the valuation of goods imported into the United States.
      The value of merchandise imported into the United States 
is determined primarily under transaction value. Transaction 
value is defined in section 402(b) of the Tariff Act of 1930 
(19 U.S.C. 1401a(b)(1)) as the price actually paid or payable 
for the merchandise when sold for exportation to the United 
States. Import transactions can involve one sale of the 
imported goods prior to importation or a series of sales. In 
the multiple sale scenario, Customs and Border Protection 
(``CBP'') currently permits importers to base transaction value 
on the price paid by the buyer in the first or earlier sale 
(e.g. the sale between the manufacturer and the intermediary), 
provided the importer can establish by sufficient evidence that 
the sale was at arm's length and that at the time of such sale, 
the merchandise was clearly destined for exportation to the 
United States.
      On January 24, 2008, CBP published in the Federal 
Register a proposed interpretation of the expression ``sold for 
exportation to the United States.'' 73 Fed. Reg. 4254 (Jan. 24, 
2008). In the publication, CBP proposed that when imported 
merchandise has been subject to a series of sales prior to 
importation, the price actually paid or payable for the 
imported goods when sold for exportation is the price paid in 
the last sale occurring prior to the introduction of the goods 
into the United States.
      Congress has serious concerns that CBP did not provide 
Congress or the importing community with any notice about its 
proposed interpretation. Congress also has serious concerns 
that CBP proposed its new interpretation without conducting 
adequate analysis of the proposed impact of such 
interpretation. Moreover, Congress has received several 
concerns and questions about CBP's proposed interpretation, 
including questions of the number and value of importations 
that would be impacted by the change. CBP informed Congress 
that it does not keep records indicating which importers are 
basing transaction value on the price paid by the buyer in the 
first or earlier sale. Therefore, there is no information 
available to assess which sectors are using this provision, the 
extent of its use, and probable impact on the United States.
      The Conferees through section (a) require Customs to 
collect adequate information regarding the impact of such 
proposal by requiring that importers declare whether the 
transaction value of the imported merchandise is determined on 
the basis of the price paid in the first or earlier sale 
occurring prior to introduction of the merchandise into the 
United States. The term ``first or earlier sale'' as used in 
subsection (a)(2) is intended to refer to the current CBP 
interpretation expressed in the January 24, 2008 Federal 
Register Notice.
      Subsection (b) requires CBP to provide the collected 
information to the United States International Trade Commission 
(``ITC'') on a monthly basis. The Conferees intend for CBP and 
ITC to mutually agree on the format in which CBP will submit 
the data for ITC use. Subsection (c) requires the ITC to submit 
a report to the House Ways and Means Committee and the Senate 
Finance Committee within ninety days of receipt of CBP's last 
monthly report.
      In subsection (d), the Conferees express a sense of 
Congress that CBP should not before January 1, 2011, implement 
a change of interpretation of the expression ``sold for 
exportation to the United States'' for purposes of applying the 
transaction value of the imported merchandise in a series of 
sales. It is the sense of Congress that after January 1, 2011, 
CBP may propose to change or change its interpretation only if 
CBP: (1) consults with and provides notice to the appropriate 
committees not less than 180 days prior to proposing a change 
and not less than 90 days prior to publishing a change; (2) 
consults with, provides notice to, and takes into consideration 
views expressed by the Commercial Operations Advisory Committee 
not less than 120 days prior to proposing a change and not less 
than 60 days prior to publishing a change; and (3) receives the 
explicit approval of the Secretary of Treasury prior to 
publishing a change. The term ``publishing'', as used in 
subsection (d), includes any notice CBP may provide to the 
regulated community through a public notice.
      Through subsection (d)(3), the Conferees express a sense 
of Congress that CBP should take into consideration the ITC 
report as referenced in subsection (b) before publishing any 
change to the expression ``sold for exportation to the United 
States.''

                       V. TAX COMPLEXITY ANALYSIS

      Section 4022(b) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 (the ``IRS Reform Act'') 
requires the Joint Committee on Taxation (in consultation with 
the Internal Revenue Service and the Department of the 
Treasury) to provide a tax complexity analysis. The complexity 
analysis is required for all legislation reported by the Senate 
Committee on Finance, the House Committee on Ways and Means, or 
any committee of conference if the legislation includes a 
provision that directly or indirectly amends the Internal 
Revenue Code (the ``Code'') and has widespread applicability to 
individuals or small businesses.
      The staff of the Joint Committee on Taxation has 
determined that a complexity analysis is not required under 
section 4022(b) of the IRS Reform Act because the bill contains 
no provisions that have ``widespread applicability'' to 
individuals or small businesses.

   COMPLIANCE WITH RULE XXI, CL.9 (HOUSE) AND WITH RULE XLIV (SENATE)

      The following list is submitted in compliance with clause 
9 of rule XXI of the Rules of the House of Representatives and 
rule XLIV of the Standing Rules of the Senate, which require 
publication of a list of congressionally directed spending 
items (Senate), congressional earmarks (House), limited tax 
benefits, and limited tariff benefits included in the 
conference report, or in the joint statement of managers 
accompanying the conference report, including the name of each 
Senator, House Member, Delegate, or Resident Commissioners who 
submitted a request to the Committee of jurisdiction for each 
item so identified. Congressionally directed spending items (as 
defined in the Senate rule) and congressional earmarks (as 
defined in the House rule) in this division of the conference 
report or joint statement of managers contains any limited tax 
benefits or limited tariff benefits as defined in the 
applicable House and Senate rules.

----------------------------------------------------------------------------------------------------------------
                Member                        Program description                     Funding level
----------------------------------------------------------------------------------------------------------------
Baucus................................  National Sheep and Goat         $1 million.
                                         Industry Improvement Center.
Baucus................................  Appropriate Technology          Authorized for appropriation.
                                         Transfer to Rural Areas.
Baucus................................  Camelina Pilot Program........  $9 million.
Biden.................................  Chesapeake Bay Watershed        $382 million.
                                         Conservation Program.
Cardin................................  Chesapeake Bay Watershed        $382 million.
                                         Conservation Program.
Casey.................................  Chesapeake Bay Watershed        $382 million.
                                         Conservation Program.
Chambliss.............................  Cost Share Assistance for       Up to $100 million.
                                         Wildlife Corridors.
Cochran...............................  Natural Products Research       Authorized for appropriation.
                                         Laboratory.
Conrad................................  Grants to Broadcasting Systems  Authorized for appropriation.
Harkin................................  Congressional Hunger Center...  Authorized for appropriation.
Harkin................................  Appropriate Technology          Authorized for appropriation.
                                         Transfer to Rural Areas.
Harkin................................  Policy Research Centers.......  Authorized for appropriation.
Hinojosa..............................  Housing Assistance Council....  Authorized for appropriation.
Inouye................................  Insular Pacific Sun Grant Sub-  Authorized for appropriation.
                                         Center.
Inouye................................  Education Grants to Alaska      Authorized for appropriation.
                                         Native Serving Institutions
                                         and Native Hawaiian Serving
                                         Institutions.
Kohl..................................  Housing Assistance Council....  Authorized for appropriation.
Nelson................................  Drought Mitigation Center/      Authorized for appropriation.
                                         University of Nebraska.
Reid..................................  Desert Terminal Lakes/Nevada..  $175 million FY 08-12.
Roberts...............................  Consortium for Agricultural     Authorized for appropriation.
                                         Soils Mitigation of
                                         Greenhouse Gases/Kansas State
                                         University.
Stevens...............................  Education Grants to Alaska      Authorized for appropriation.
                                         Native Serving Institutions
                                         and Native Hawaiian Serving
                                         Institutions.
Stevens...............................  Water Systems for Rural and     Authorized for appropriation.
                                         Native Villages in Alaska.
----------------------------------------------------------------------------------------------------------------

                From the Committee on Agriculture, for 
                consideration of the House bill (except title 
                XII) and the Senate amendment (except secs. 
                12001, 12201-12601, and 12701-12808), and 
                modifications committed to conference:
                                   Collin C. Peterson,
                                   Tim Holden,
                                   Mike McIntyre,
                                   Bob Etheridge,
                                   Leonard L. Boswell,
                                   Joe Baca,
                                   Dennis L. Cardoza,
                                   David Scott,
                                   Bob Goodlatte,
                                   Robin Hayes,
                                   Marilyn Musgrave,
                                   Randy Neugebauer,
                From the Committee on Education and Labor, for 
                consideration of secs. 4303 and 4304 of the 
                House bill, and secs. 4901-4905, 4911, and 4912 
                of the Senate amendment, and modifications 
                committed to conference:
                                   George Miller,
                                   Carolyn McCarthy,
                                   Todd R. Platts,
                From the Committee on Energy and Commerce, for 
                consideration of secs. 6012, 6023, 6024, 6028, 
                6029, 9004, 9005, and 9017 of the House bill, 
                and secs. 6006, 6012, 6110-6112, 6202, 6302, 
                7044, 7049, 7307, 7507, 9001, 11060, 11072, 
                11087, and 11101-11103 of the Senate amendment, 
                and modifications committed to conference:
                                   John D. Dingell,
                                   Frank Pallone,
                From the Committee on Financial Services, for 
                consideration of sec. 11310 of the House bill, 
                and secs. 6501-6505, 11068, and 13107 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Paul E. Kanjorski,
                                   Maxine Waters,
                From the Committee on Foreign Affairs, for 
                consideration of secs. 3001-3008, 3010-3014, 
                and 3016 of the House bill, and secs. 3001-
                3022, 3101-3107, and 3201-3204 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Howard L. Berman,
                                   Brad Sherman,
                                   Ileana Ros-Lehtinen,
                From the Committee on Judiciary, for 
                consideration of secs. 11102, 11312, and 11314 
                of the House bill, and secs. 5402, 10103, 
                10201, 10203, 10205, 11017, 11069, 11076, 
                13102, and 13104 of the Senate amendment, and 
                modifications committed to conference:
                                   John Conyers,
                                   Bobby Scott,
                From the Committee on Natural Resources, for 
                consideration of secs. 2313, 2331, 2341, 2405, 
                2607, 2607A, 2611, 5401, 6020, 7033, 7311, 
                8101, 8112, 8121-8127, 8204, 8205, 11063, and 
                11075 of the Senate amendment, and 
                modifications committed to conference:
                                   Nick Rahall,
                                   Madeleine Z. Bordallo,
                                   Cathy McMorris Rodgers,
                From the Committee on Oversight and Government 
                Reform, for consideration of secs. 1501 and 
                7109 of the House bill, and secs. 7020, 7313, 
                7314, 7316, 7502, 8126, 8205, and 10201 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Edolphus Towns,
                From the Committee on Science and Technology, 
                for consideration of secs. 4403, 9003, 9006, 
                9010, 9015, 9019, and 9020 of the House bill, 
                and secs. 7039, 7051, 7315, 7501, and 9001 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Bart Gordon,
                                   Michael T. McCaul,
                From the Committee on Small Business, for 
                consideration of subtitle D of title XI of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Nydia M. Velazquez,
                                   Heath Shuler,
                From the Committee on Transportation and 
                Infrastructure, for consideration of secs. 
                2203, 2301, 6019, and 6020 of the House bill, 
                and secs. 2604, 6029, 6030, and 11087 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   James L. Oberstar,
                                   Eleanor H. Norton,
                                   Sam Graves,
                From the Committee on Ways and Means, for 
                consideration of sec. 1303 and title XII of the 
                House bill, and secs. 12001-12601, and 12701-
                12808 of the Senate amendment, and 
                modifications committed to conference:
                                   Charles B. Rangel,
                                   Earl Pomeroy,
                For consideration of House bill (except title 
                XII) and the Senate amendment (except secs. 
                12001, 12201-12601, and 12701-12808), and 
                modifications committed to conference:
                                   Rosa L. DeLauro,
                                   Adam H. Putnam,
                                 Managers on the Part of the House.

                                   Tom Harkin,
                                   Patrick Leahy,
                                   Kent Conrad,
                                   Max Baucus,
                                   Blanche L. Lincoln,
                                   Debbie Stabenow,
                                   Saxby Chambliss,
                                   Thad Cochran,
                                   Pat Roberts
                                           (for purposes of title XV 
                                               only),
                                   Chuck Grassley.
                                Managers on the Part of the Senate.

                                  
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