    [110th Congress Public Law 234]
    [From the U.S. Government Publishing Office]

    [DOCID: f:publ234.110]

    [[Page 122 STAT. 923]]

    Public Law 110-234
    110th Congress

                                     An Act

    To provide for the continuation of agricultural programs through fiscal
        year 2012, and for other purposes. <<NOTE: May 22, 2008 -  [H.R.
                                    2419]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <<NOTE: Food,
    Conservation, and Energy Act of 2008.>>
    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

        (a) Short Title.--This <<NOTE: 7 USC 8701 note.>> 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 <<NOTE: 7 USC 8702.>> 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.

    [[Page 122 STAT. 924]]

    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.

    [[Page 122 STAT. 925]]

    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.

    [[Page 122 STAT. 926]]

    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.

    [[Page 122 STAT. 927]]

    Sec. 4108. Employment, training, and job retention.

                          PART III--Program Operations

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

                           PART IV--Program Integrity

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

                              PART V--Miscellaneous

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

                     Subtitle B--Food Distribution Programs

                    PART I--Emergency Food Assistance Program

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

            PART II--Food Distribution Program on Indian Reservations

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

                  PART III--Commodity Supplemental Food Program

    Sec. 4221. Commodity supplemental food program.

                PART IV--Senior Farmers' Market Nutrition Program

    Sec. 4231. Seniors farmers' market nutrition program.

                Subtitle C--Child Nutrition and Related Programs

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

                            Subtitle D--Miscellaneous

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

                                 TITLE V--CREDIT

                        Subtitle A--Farm Ownership Loans

    Sec. 5001. Direct loans.
    Sec. 5002. Conservation loan and loan guarantee program.
    Sec. 5003. Limitations on amount of farm ownership loans.

    [[Page 122 STAT. 928]]

    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.

    [[Page 122 STAT. 929]]

                  Subtitle B--Rural Electrification Act of 1936

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

                            Subtitle C--Miscellaneous

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

                     Subtitle D--Housing Assistance Council

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

                     TITLE VII--RESEARCH AND RELATED MATTERS

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

    Sec. 7101. Definitions.
    Sec. 7102. National Agricultural Research, Extension, Education, and
               Economics Advisory Board.
    Sec. 7103. Specialty crop committee report.
    Sec. 7104. Renewable energy committee.
    Sec. 7105. Veterinary medicine loan repayment.
    Sec. 7106. Eligibility of University of the District of Columbia for
               grants and fellowships for food and agricultural sciences
               education.
    Sec. 7107. Grants to 1890 schools to expand extension capacity.
    Sec. 7108. Expansion of food and agricultural sciences awards.
    Sec. 7109. Grants and fellowships for food and agricultural sciences
               education.
    Sec. 7110. Grants for research on production and marketing of alcohols
               and industrial hydrocarbons from agricultural commodities and
               forest products.
    Sec. 7111. Policy research centers.
    Sec. 7112. Education grants to Alaska Native-serving institutions and
               Native Hawaiian-serving institutions.
    Sec. 7113. Emphasis of human nutrition initiative.
    Sec. 7114. Human nutrition intervention and health promotion research
               program.
    Sec. 7115. Pilot research program to combine medical and agricultural
               research.
    Sec. 7116. Nutrition education program.
    Sec. 7117. Continuing animal health and disease research programs.
    Sec. 7118. Cooperation among eligible institutions.
    Sec. 7119. Appropriations for research on national or regional problems.
    Sec. 7120. Animal health and disease research program.
    Sec. 7121. Authorization level for extension at 1890 land-grant
               colleges.
    Sec. 7122. Authorization level for agricultural research at 1890 land-
               grant colleges.
    Sec. 7123. Grants to upgrade agricultural and food sciences facilities
               at 1890 land-grant colleges, including Tuskegee University.
    Sec. 7124. Grants to upgrade agriculture and food sciences facilities at
               the District of Columbia land-grant university.
    Sec. 7125. Grants to upgrade agriculture and food sciences facilities
               and equipment at insular area land-grant institutions.
    Sec. 7126. National research and training virtual centers.

    [[Page 122 STAT. 930]]

    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.

    [[Page 122 STAT. 931]]

    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.

    [[Page 122 STAT. 932]]

                                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.

    [[Page 122 STAT. 933]]

    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.

    [[Page 122 STAT. 934]]

                         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.

    [[Page 122 STAT. 935]]

    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.

    [[Page 122 STAT. 936]]

    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. <<NOTE: 7 USC 8701.>> DEFINITION OF SECRETARY.

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

                           TITLE I--COMMODITY PROGRAMS

    SEC. 1001. <<NOTE: 7 USC 8702.>> 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.

    [[Page 122 STAT. 937]]

                (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--

    [[Page 122 STAT. 938]]

                        (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. <<NOTE: 7 USC 8711.>> 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

    [[Page 122 STAT. 939]]

            (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

    [[Page 122 STAT. 940]]

                              (ii) is likely to be returned to the previous
                          agricultural use.
                        (B) Requirement.--
                    The <<NOTE: Procedures.>> 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. <<NOTE: 7 USC 8712.>> 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

    [[Page 122 STAT. 941]]

                          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. <<NOTE: 7 USC 8713.>> 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.--

    [[Page 122 STAT. 942]]

                        (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. <<NOTE: 7 USC 8714.>> 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.

    [[Page 122 STAT. 943]]

                        (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.

    [[Page 122 STAT. 944]]

                        (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) <<NOTE: Deadlines.>> 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

    [[Page 122 STAT. 945]]

                    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. <<NOTE: 7 USC 8715.>> 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 <<NOTE: Notice.>> 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

    [[Page 122 STAT. 946]]

                              (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 <<NOTE: Notice.>> 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--

    [[Page 122 STAT. 947]]

                        (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

    [[Page 122 STAT. 948]]

                    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

    [[Page 122 STAT. 949]]

    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. <<NOTE: 7 USC 8716.>> 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).

    [[Page 122 STAT. 950]]

                (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. <<NOTE: 7 USC 8717.>> 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

    [[Page 122 STAT. 951]]

            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--

    [[Page 122 STAT. 952]]

                        (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. <<NOTE: 7 USC 8718.>> 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

    [[Page 122 STAT. 953]]

    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. <<NOTE: 7 USC 8719.>> 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. <<NOTE: 7 USC 8731.>> 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.

    [[Page 122 STAT. 954]]

    SEC. 1202. <<NOTE: 7 USC 8732.>> 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.

    [[Page 122 STAT. 955]]

                        (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.

    [[Page 122 STAT. 956]]

        (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. <<NOTE: 7 USC 8733.>> 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. <<NOTE: 7 USC 8734.>> 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

    [[Page 122 STAT. 957]]

    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 <<NOTE: Regulations.>> 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

    [[Page 122 STAT. 958]]

            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. <<NOTE: 7 USC 8735.>> 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--

    [[Page 122 STAT. 959]]

                        (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. <<NOTE: 7 USC 8736.>> 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--

    [[Page 122 STAT. 960]]

                              (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. <<NOTE: 7 USC 8737.>> SPECIAL MARKETING LOAN PROVISIONS
                              FOR UPLAND COTTON.

        (a) Special Import Quota.--

    [[Page 122 STAT. 961]]

                (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 <<NOTE: President. Time
                    period.>> 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 <<NOTE: Deadlines.>> 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;

    [[Page 122 STAT. 962]]

                              (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 <<NOTE: President.>> 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).

    [[Page 122 STAT. 963]]

        (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 <<NOTE: Effective
                    date.>> 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. <<NOTE: 7 USC 8738.>> SPECIAL COMPETITIVE PROVISIONS
                              FOR EXTRA LONG STAPLE COTTON.

        (a) Competitiveness Program.--Notwithstanding <<NOTE: Effective
    date. Termination date.>> 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

    [[Page 122 STAT. 964]]

            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. <<NOTE: 7 USC 8739.>> 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 <<NOTE: Certification.>> 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.

    [[Page 122 STAT. 965]]

                (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. <<NOTE: 7 USC 8740.>> 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 <<NOTE: Deadline.>> 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;

    [[Page 122 STAT. 966]]

                              (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. <<NOTE: 7 USC 8751.>> 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

    [[Page 122 STAT. 967]]

                    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.

    [[Page 122 STAT. 968]]

    SEC. 1302. <<NOTE: 7 USC 8752.>> 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)).

    [[Page 122 STAT. 969]]

                        (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 <<NOTE: Procedures.>> 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--

    [[Page 122 STAT. 970]]

                        (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. <<NOTE: 7 USC 8753.>> 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

    [[Page 122 STAT. 971]]

            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. <<NOTE: 7 USC 8754.>> 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) <<NOTE: Deadline.>> Election.--

    [[Page 122 STAT. 972]]

                              (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. <<NOTE: 7 USC 8755.>> 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

    [[Page 122 STAT. 973]]

                    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. <<NOTE: 7 USC 8756.>> 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.--

    [[Page 122 STAT. 974]]

                (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. <<NOTE: 7 USC 8757.>> 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--

    [[Page 122 STAT. 975]]

                        (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;

    [[Page 122 STAT. 976]]

                              (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.

    [[Page 122 STAT. 977]]

    SEC. 1308. <<NOTE: 7 USC 8758.>> 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. <<NOTE: Loans.>> 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

    [[Page 122 STAT. 978]]

                        ``(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

    [[Page 122 STAT. 979]]

                    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.

    [[Page 122 STAT. 980]]

                        ``(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 <<NOTE: Publication.>> into
            consideration the information received under this subsection,
            the Secretary shall

    [[Page 122 STAT. 981]]

            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 <<NOTE: 7 USC 7272 note.>> 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. <<NOTE: 7 USC 3602 note.>> UNITED STATES MEMBERSHIP IN
                              THE INTERNATIONAL SUGAR ORGANIZATION.

        The <<NOTE: Deadline.>> 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.''.

    [[Page 122 STAT. 982]]

        (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 <<NOTE: Deadlines.>> 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.--

    [[Page 122 STAT. 983]]

                ``(1) In general.--The <<NOTE: Applicability.>> 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 <<NOTE: Deadline. Reports.>> 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--

    [[Page 122 STAT. 984]]

                        ``(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.

    [[Page 122 STAT. 985]]

                        ``(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.

    [[Page 122 STAT. 986]]

                              ``(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)'';

    [[Page 122 STAT. 987]]

                (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 <<NOTE: Deadline.>> 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 <<NOTE: Notification. Time period.>> 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

    [[Page 122 STAT. 988]]

                          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. <<NOTE: 7 USC 1359kk.>> 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

    [[Page 122 STAT. 989]]

            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 <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 1359ll.>> 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

    [[Page 122 STAT. 990]]

                (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. <<NOTE: 7 USC 7287.>> 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. <<NOTE: 7 USC 8771.>> 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 <<NOTE: Time period.>> 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

    [[Page 122 STAT. 991]]

            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. <<NOTE: 7 USC 8772.>> 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

    [[Page 122 STAT. 992]]

            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 <<NOTE: Applicability.>> 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 <<NOTE: Deadline.>> forward price
            contract may be entered into under the program established under
            this section after September 30, 2012.
                (2) Application.--No <<NOTE: Termination date.>> 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

    [[Page 122 STAT. 993]]

            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 <<NOTE: Deadline.>> 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 <<NOTE: Deadlines.>> 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) <<NOTE: Notice.>> 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

    [[Page 122 STAT. 994]]

                                        ``(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) <<NOTE: Deadline.>> 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. <<NOTE: 7 USC 8773.>> MILK INCOME LOSS CONTRACT
                              PROGRAM.

        (a) Definitions.--In this section:

    [[Page 122 STAT. 995]]

                (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 <<NOTE: Contracts.>> 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 <<NOTE: Time period.>> 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.

    [[Page 122 STAT. 996]]

                (3) National average dairy feed ration cost.--For each
            month, the Secretary shall calculate a National Average Dairy
            Feed Ration Cost per hundredweight using the same procedures
            (adjusted to a hundredweight basis) used to calculate the feed
            components of the estimated price of 16% Mixed Dairy Feed per
            pound noted on page 33 of the USDA March 2008 Agricultural
            Prices publication (including the data and factors noted in
            footnote 4).

        (e) Payment Quantity.--
                (1) In general.--Subject to paragraph (2), the payment
            quantity for a producer during the applicable month under this
            section shall be equal to the quantity of eligible production
            marketed by the producer during the month.
                (2) Limitation.--
                        (A) In general.--The <<NOTE: Time periods.>> 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) <<NOTE: Effective date.>> effective
                          beginning September 1, 2012, 2,400,000 pounds per
                          fiscal year.
                        (B) Standards.--
                    For <<NOTE: Applicability.>> 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 <<NOTE: Deadline.>> 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 <<NOTE: Contracts. Time period.>> 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.

    [[Page 122 STAT. 997]]

    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.''.

    [[Page 122 STAT. 998]]

    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.

    [[Page 122 STAT. 999]]

                        (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.

    [[Page 122 STAT. 1000]]

                ``(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. <<NOTE: 7 USC 8781.>> 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 <<NOTE: Deadline.>> 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.

    [[Page 122 STAT. 1001]]

        (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 <<NOTE: Reports.>> 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. <<NOTE: Time period. 7 USC 8782.>> 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.).

    [[Page 122 STAT. 1002]]

                (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

    [[Page 122 STAT. 1003]]

                              ``(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

    [[Page 122 STAT. 1004]]

                        ``(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 <<NOTE: Regulations.>> 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) 4 levels of attribution for embedded legal entities.--
                        ``(A) In general.--Attribution of payments made to
                    legal entities shall be traced through 4 levels of
                    ownership in legal entities.
                        ``(B) First level.--Any payments made to a legal
                    entity (a first-tier legal entity) that is owned in
                    whole

    [[Page 122 STAT. 1005]]

                    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 <<NOTE: Applicability.>> 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;

    [[Page 122 STAT. 1006]]

                                        ``(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

    [[Page 122 STAT. 1007]]

                    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.''.

    [[Page 122 STAT. 1008]]

        (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

    [[Page 122 STAT. 1009]]

                    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.

    [[Page 122 STAT. 1010]]

                ``(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 <<NOTE: Fraud. Regulations.>> 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--

    [[Page 122 STAT. 1011]]

                        (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) <<NOTE: 7 USC 7333
            note.>> 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)''.

    [[Page 122 STAT. 1012]]

                (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 <<NOTE: Applicability. 7 USC 1308
    note.>> 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

    [[Page 122 STAT. 1013]]

                    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 <<NOTE: Applicability.>> 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 <<NOTE: Waiver
                          authority.>> 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 <<NOTE: Applicability.>> benefits.--
                    Subparagraph (A) applies with respect to the following:

    [[Page 122 STAT. 1014]]

                              ``(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

    [[Page 122 STAT. 1015]]

                        ``(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 <<NOTE: Deadline.>> comply with
            subsection (b), at least once every 3 years a person or legal
            entity shall provide to the Secretary--
                        ``(A) a <<NOTE: Certification.>> 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 <<NOTE: Procedures.>> 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).

    [[Page 122 STAT. 1016]]

        ``(f) Effective Period.--This section shall apply only during the
    2009 through 2012 crop, program, or fiscal years, as appropriate.''.
        (b) Transition.--Section <<NOTE: Applicability. 7 USC 1308-3a
    note.>> 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.

    [[Page 122 STAT. 1017]]

                (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

    [[Page 122 STAT. 1018]]

    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. <<NOTE: 7 USC 8784.>> ASSIGNMENT OF PAYMENTS.

        (a) In General.--The <<NOTE: Applicability.>> 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. <<NOTE: 7 USC 8785.>> 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. <<NOTE: 7 USC 8786.>> PREVENTION OF DECEASED
                              INDIVIDUALS RECEIVING PAYMENTS UNDER
                              FARM COMMODITY PROGRAMS.

        (a) Regulations.--Not <<NOTE: Deadline.>> 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.

    [[Page 122 STAT. 1019]]

    SEC. 1612. <<NOTE: 7 USC 8787.>> 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. <<NOTE: 7 USC 8788.>> 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

    [[Page 122 STAT. 1020]]

    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. <<NOTE: 7 USC 8789.>> 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

    [[Page 122 STAT. 1021]]

                        (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 <<NOTE: Procedures.>> 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. <<NOTE: 7 USC 8790.>> 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,

    [[Page 122 STAT. 1022]]

    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 <<NOTE: Deadline. Reports.>> 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. <<NOTE: 7 USC 8791.>> 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--

    [[Page 122 STAT. 1023]]

                        (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 <<NOTE: Deadline. Reports.>> 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--

    [[Page 122 STAT. 1024]]

                (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. <<NOTE: 7 USC 8792.>>  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.

    [[Page 122 STAT. 1025]]

                        (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. <<NOTE: 7 USC 8793.>>  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

    [[Page 122 STAT. 1026]]

    (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,

    [[Page 122 STAT. 1027]]

                    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.''.

    [[Page 122 STAT. 1028]]

    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

    [[Page 122 STAT. 1029]]

            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. <<NOTE: 16 USC 3831b.>>  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

    [[Page 122 STAT. 1030]]

                        ``(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

    [[Page 122 STAT. 1031]]

                    enroll in the conservation reserve, pursuant to the
                    program established under this section, shall be 40
                    contiguous acres.
                        ``(B) Flooded farmland.--The maximum size of any
                    land described in subparagraph (D) of subsection (b)(1)
                    that an owner or operator may enroll in the conservation
                    reserve, pursuant to the program established under this
                    section, shall be 20 contiguous acres.
                        ``(C) Coverage.--All acres described in subparagraph
                    (A) or (B), including acres that are ineligible for
                    payment, shall be covered by the conservation contract.
                ``(2) Buffer acreage.--The maximum size of any buffer
            acreage described in subsection (b)(2) that an owner or operator
            may enroll in the conservation reserve under this section shall
            be determined by the Secretary in consultation with the State
            Technical Committee.
                ``(3) Tracts.--Except for land described in subsection
            (b)(1)(C) and buffer acreage related to such land, the maximum
            size of any eligible acreage described in subsection (b)(1) in a
            tract of an owner or operator enrolled in the conservation
            reserve under this section shall be 40 acres.

        ``(e) Duties of Owners and Operators.--During the term of a contract
    entered into under the program established under this section, an owner
    or operator shall agree--
                ``(1) to restore the hydrology of the wetland within the
            eligible acreage to the maximum extent practicable, as
            determined by the Secretary;
                ``(2) to establish vegetative cover (which may include
            emerging vegetation in water and bottomland hardwoods, cypress,
            and other appropriate tree species) on the eligible acreage, as
            determined by the Secretary;
                ``(3) to a general prohibition of commercial use of the
            enrolled land; and
                ``(4) to carry out other duties described in section 1232.

        ``(f) Duties of the Secretary.--
                ``(1) In general.--Except as provided in paragraphs (2) and
            (3), in return for a contract entered into under this section,
            the Secretary shall--
                        ``(A) make payments to the owner or operator based
                    on rental rates for cropland; and
                        ``(B) provide assistance to the owner or operator in
                    accordance with sections 1233 and 1234.
                ``(2) Contract offers and payments.--The Secretary shall use
            the method of determination described in section 1234(c)(2)(B)
            to determine the acceptability of contract offers and the amount
            of rental payments under this section.
                ``(3) Incentives.--The amounts payable to owners and
            operators in the form of rental payments under contracts entered
            into under this section shall reflect incentives that are
            provided to owners and operators to enroll filterstrips in the
            conservation reserve under section 1234.''.
                (2) Repeal of superceded program.--Section 1231 of the Food
            Security Act of 1985 (16 U.S.C. 3831) is amended--
                        (A) by striking subsection (h); and
                        (B) by redesignating subsections (i) and (j) as
                    subsections (h) and (i), respectively.

    [[Page 122 STAT. 1032]]

        (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. <<NOTE: 16 USC 3831a.>> 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;''.

    [[Page 122 STAT. 1033]]

    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

    [[Page 122 STAT. 1034]]

    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

    [[Page 122 STAT. 1035]]

                    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 <<NOTE: Website.>> 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 <<NOTE: Deadline. 16 USC 3834
            note.>> 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''.

    [[Page 122 STAT. 1036]]

        (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 <<NOTE: Contracts.>> 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) <<NOTE: Effective date.>> 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.

    [[Page 122 STAT. 1037]]

                ``(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 <<NOTE: Contracts.>> 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.--

    [[Page 122 STAT. 1038]]

                ``(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 <<NOTE: Effective
            date.>> 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.''.

    [[Page 122 STAT. 1039]]

    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.''.

    [[Page 122 STAT. 1040]]

    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 <<NOTE: 16 USC 3838h et seq., 3838n et
            seq.>> 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. <<NOTE: 16 USC 3838d.>>  DEFINITIONS.

        ``In this subchapter:

    [[Page 122 STAT. 1041]]

                ``(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. <<NOTE: 16 USC 3838e.>>  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.--

    [[Page 122 STAT. 1042]]

                ``(1) In general.--Except as provided in subsection (c), the
            following land is eligible for enrollment in the program:
                        ``(A) Private agricultural land (including cropland,
                    grassland, prairie land, improved pastureland,
                    rangeland, and land used for agro-forestry).
                        ``(B) Agricultural land under the jurisdiction of an
                    Indian tribe.
                        ``(C) Forested land that is an incidental part of an
                    agricultural operation.
                        ``(D) Other private agricultural land (including
                    cropped woodland, marshes, and agricultural land used
                    for the production of livestock) on which resource
                    concerns related to agricultural production could be
                    addressed by enrolling the land in the program, as
                    determined by the Secretary.
                ``(2) Special rule for nonindustrial private forest land.--
            Nonindustrial private forest land is eligible for enrollment in
            the program, except that not more than 10 percent of the annual
            acres enrolled nationally in any fiscal year may be
            nonindustrial private forest land.
                ``(3) Agricultural operation.--Eligible land shall include
            all acres of an agricultural operation of a producer, whether or
            not contiguous, that are under the effective control of the
            producer at the time the producer enters into a stewardship
            contract, and is operated by the producer with equipment, labor,
            management, and production or cultivation practices that are
            substantially separate from other agricultural operations, as
            determined by the Secretary.

        ``(c) Exclusions.--
                ``(1) Land enrolled in other conservation programs.--Subject
            to paragraph (2), the following land is not be eligible for
            enrollment in the program:
                        ``(A) Land enrolled in the conservation reserve
                    program.
                        ``(B) Land enrolled in the wetlands reserve program.
                        ``(C) Land enrolled in the grassland reserve
                    program.
                ``(2) Conversion to cropland.--Land used for crop production
            after the date of enactment of the Food, Conservation, and
            Energy Act of 2008 that had not been planted, considered to be
            planted, or devoted to crop production for at least 4 of the 6
            years preceding that date shall not be the basis for any payment
            under the program, unless the land does not meet the requirement
            because--
                        ``(A) the land had previously been enrolled in the
                    conservation reserve program;
                        ``(B) the land has been maintained using long-term
                    crop rotation practices, as determined by the Secretary;
                    or
                        ``(C) the land is incidental land needed for
                    efficient operation of the farm or ranch, as determined
                    by the Secretary.
    ``SEC. 1238F. <<NOTE: 16 USC 3838f.>>  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

    [[Page 122 STAT. 1043]]

            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);

    [[Page 122 STAT. 1044]]

                        ``(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.

    [[Page 122 STAT. 1045]]

                        ``(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. <<NOTE: 16 USC 3838g.>>  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.

    [[Page 122 STAT. 1046]]

        ``(d) Acreage Enrollment <<NOTE: Time period.>> 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.

    [[Page 122 STAT. 1047]]

                ``(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 <<NOTE: Contracts.>> 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.

    [[Page 122 STAT. 1048]]

                ``(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

    [[Page 122 STAT. 1049]]

                              (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 <<NOTE: Effective date.>> 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.--

    [[Page 122 STAT. 1050]]

                ``(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.

    [[Page 122 STAT. 1051]]

                ``(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. <<NOTE: 16 USC 3838n.>>  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

    [[Page 122 STAT. 1052]]

                        ``(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. <<NOTE: 16 USC 3838o.>>  DUTIES OF OWNERS AND
                                OPERATORS.

        ``(a) Rental Contracts.--To be eligible to enroll eligible land in
    the program under a rental contract, the owner or operator of the land
    shall agree--
                ``(1) to comply with the terms of the contract and, when
            applicable, a restoration agreement;
                ``(2) to suspend any existing cropland base and allotment
            history for the land under another program administered by the
            Secretary; and
                ``(3) to implement a grazing management plan, as approved by
            the Secretary, which may be modified upon mutual agreement of
            the parties.

    [[Page 122 STAT. 1053]]

        ``(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

    [[Page 122 STAT. 1054]]

                        ``(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. <<NOTE: 16 USC 3838p.>>  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

    [[Page 122 STAT. 1055]]

                    land less the grazing value of the land encumbered by
                    the easement.
                        ``(B) Method for determination of compensation.--In
                    making a determination under subparagraph (A), the
                    Secretary shall pay as compensation for a easement
                    acquired under the program the lowest of--
                              ``(i) the fair market value of the land
                          encumbered by the easement, as determined by the
                          Secretary, using--
                                        ``(I) the Uniform Standards of
                                    Professional Appraisal Practices; or
                                        ``(II) an area-wide market analysis
                                    or survey;
                              ``(ii) the amount corresponding to a
                          geographical cap, as determined by the Secretary
                          in regulations; or
                              ``(iii) the offer made by the landowner.
                        ``(C) Schedule.--Easement payments may be provided
                    in up to 10 annual payments of equal or unequal amount,
                    as agreed to by the Secretary and the owner.
                ``(4) Restoration agreement payments.--
                        ``(A) Federal share of restoration.--The Secretary
                    shall make payments to an owner or operator under a
                    restoration agreement of not more than 50 percent of the
                    costs of carrying out measures and practices necessary
                    to restore functions and values of that land.
                        ``(B) Payment limitation.--Payments made under 1 or
                    more restoration agreements to a person or legal entity,
                    directly or indirectly, may not exceed, in the
                    aggregate, $50,000 per year.
                ``(5) Payments to others.--If an owner or operator who is
            entitled to a payment under the program dies, becomes
            incompetent, is otherwise unable to receive the payment, or is
            succeeded by another person who renders or completes the
            required performance, the Secretary shall make the payment, in
            accordance with regulations promulgated by the Secretary and
            without regard to any other provision of law, in such manner as
            the Secretary determines is fair and reasonable in light of all
            the circumstances.
    ``SEC. 1238Q. <<NOTE: 16 USC 3838q.>>  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;

    [[Page 122 STAT. 1056]]

                        ``(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;

    [[Page 122 STAT. 1057]]

                        ``(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

    [[Page 122 STAT. 1058]]

                (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--

    [[Page 122 STAT. 1059]]

                        ``(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.

    [[Page 122 STAT. 1060]]

                ``(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.--

    [[Page 122 STAT. 1061]]

                ``(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.

    [[Page 122 STAT. 1062]]

                ``(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

    [[Page 122 STAT. 1063]]

                (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--

    [[Page 122 STAT. 1064]]

                ``(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:

    [[Page 122 STAT. 1065]]

                ``(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 <<NOTE: Effective
    date. Procedures. Contracts.>> 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.

    [[Page 122 STAT. 1066]]

                        ``(C) A description of the agricultural water
                    enhancement objectives to be achieved through the
                    partnership.
                        ``(D) A description of the partners collaborating to
                    achieve the project objectives and the roles,
                    responsibilities, and capabilities of each partner.
                        ``(E) A description of the program resources,
                    including payments the Secretary is requested to make.
                        ``(F) Such other such elements as the Secretary
                    considers necessary to adequately evaluate and
                    competitively select applications for partnership
                    agreements.
                ``(3) Duties of partners.--A <<NOTE: Reports.>> 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. <<NOTE: Public
            information.>> 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

    [[Page 122 STAT. 1067]]

                              ``(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.''.

    [[Page 122 STAT. 1068]]

    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.

    [[Page 122 STAT. 1069]]

        ``(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. <<NOTE: 16 USC 3839bb-4.>>  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

    [[Page 122 STAT. 1070]]

            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. <<NOTE: 16 USC 3839bb-5.>>  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

    [[Page 122 STAT. 1071]]

                        ``(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

    [[Page 122 STAT. 1072]]

                    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.''.

    [[Page 122 STAT. 1073]]

    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 <<NOTE: Deadline.>> 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.''.

    [[Page 122 STAT. 1074]]

    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

    [[Page 122 STAT. 1075]]

    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 <<NOTE: Deadline.>> 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 <<NOTE: Criteria.>> 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 <<NOTE: Effective date.>> 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 <<NOTE: Deadline.>> 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.

    [[Page 122 STAT. 1076]]

                        ``(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.

    [[Page 122 STAT. 1077]]

                ``(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.

    [[Page 122 STAT. 1078]]

                ``(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;

    [[Page 122 STAT. 1079]]

                        ``(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.--

    [[Page 122 STAT. 1080]]

                ``(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 <<NOTE: Procedures.>> 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

    [[Page 122 STAT. 1081]]

                ``(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 <<NOTE: Deadline.>> 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. <<NOTE: 16 USC 3845.>>  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

    [[Page 122 STAT. 1082]]

            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. <<NOTE: 16 USC 3851.>>  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

    [[Page 122 STAT. 1083]]

            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. <<NOTE: 16 USC 3861.>>  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 <<NOTE: Deadline.>> 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

    [[Page 122 STAT. 1084]]

    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. <<NOTE: 16 USC 3862.>>  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.''.

    [[Page 122 STAT. 1085]]

               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:

    [[Page 122 STAT. 1086]]

    ``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

    [[Page 122 STAT. 1087]]

                        (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. <<NOTE: President.>> 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--

    [[Page 122 STAT. 1088]]

                ``(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.

    [[Page 122 STAT. 1089]]

                ``(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)''.

    [[Page 122 STAT. 1090]]

                (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 <<NOTE: Effective
            date.>> 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. <<NOTE: Texas.>> 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.

    [[Page 122 STAT. 1091]]

    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) <<NOTE: 16 USC 3801 note.>>  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 <<NOTE: Time period. 16 USC 3839aa-9
    note.>> 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 <<NOTE: Deadline.>> 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.

    [[Page 122 STAT. 1092]]

                               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)--

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

    [[Page 122 STAT. 1093]]

                                    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)--

    [[Page 122 STAT. 1094]]

                              (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

    [[Page 122 STAT. 1095]]

                                        (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'';

    [[Page 122 STAT. 1096]]

                        (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) <<NOTE: 7 USC 2012 note.>>  The Hunger
                    Prevention Act of 1988 (Public Law 100-435; 102 Stat.
                    1645).
                        (B) <<NOTE: 7 USC 2012 note.>>  The Food Stamp
                    Program Improvements Act of 1994 (Public Law 103-225;
                    108 Stat. 106).
                        (C) <<NOTE: 7 USC 20163et seq.>>  Title IV of the
                    Farm Security and Rural Investment Act of 2002 (Public
                    Law 107-171; 116 Stat. 305).

    [[Page 122 STAT. 1097]]

                        (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) <<NOTE: 7 USC 2016 note.>>  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) <<NOTE: 7 USC 3315.>>  The National Agricultural
                    Research, Extension, and Teaching Policy Act of 1977 (7
                    U.S.C. 3101 et seq.).
                        (I) <<NOTE: 7 USC 7509.>>  The Emergency Food
                    Assistance Act of 1983 (7 U.S.C. 7501 et seq.).
                        (J) <<NOTE: 8 USC 1255a.>>  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) <<NOTE: 15 USC 5901, 5904.>>  The Armored Car
                    Industry Reciprocity Act of 1993 (15 U.S.C. 5901 et
                    seq.).
                        (M) <<NOTE: 18 USC 506, 1956. 20 USC 1087ss.>>
                    Title 18, United States Code.
                        (N) The Higher Education Act of 1965 (20 U.S.C. 1001
                    et seq.).
                        (O) <<NOTE: 26 USC 32 et seq.>>  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) <<NOTE: 29 USC 49b.>>  The Wagner-Peysner Act
                    (29 U.S.C. 49 et seq.).
                        (R) <<NOTE: 20 USC 29713et seq.>>  The Workforce
                    Investment Act of 1998 (29 U.S.C. 2801 et seq.).
                        (S) <<NOTE: 31 USC 3803.>>  Title 31, United States
                    Code.
                        (T) <<NOTE: 37 USC 402a.>>  Title 37, United States
                    Code.
                        (U) <<NOTE: 42 USC 290cc-22.>>  The Public Health
                    Service Act (42 U.S.C. 201 et seq.).
                        (V) <<NOTE: 42 USC 4053et seq.>>  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) <<NOTE: 42 USC 1437f.>>  The United States
                    Housing Act of 1937 (42 U.S.C. 1437 et seq.).
                        (Z) <<NOTE: 42 USC 1758, 1766.>>  The Richard B.
                    Russell National School Lunch Act (42 U.S.C. 1751 et
                    seq.).
                        (AA) <<NOTE: 42 USC 1786.>>  The Child Nutrition Act
                    of 1966 (42 U.S.C. 1771 et seq.).
                        (BB) <<NOTE: 42 USC 30123et seq.>>  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) <<NOTE: 42 USC 5179.>>  The Robert T. Stafford
                    Disaster Relief and Emergency Assistance Act (42 U.S.C.
                    5121 et seq.).
                        (EE) <<NOTE: 42 USC 8622, 8624.>>  The Low-Income
                    Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et
                    seq.).

    [[Page 122 STAT. 1098]]

                        (FF) Section 658K of the Child Care and Development
                    Block Grant Act of 1990 (42 U.S.C. 9858i).
                        (GG) <<NOTE: 43 USC 1626.>>  The Alaska Native
                    Claims Settlement Act (43 U.S.C. 1601 et seq.).
                        (HH) <<NOTE: 48 USC 1841.>>  Public Law 95-348 (92
                    Stat. 487).
                        (II) <<NOTE: 7 USC 2270, 4004a.>>  The Agriculture
                    and Food Act of 1981 (Public Law 97-98; 95 Stat. 1213).
                        (JJ) <<NOTE: 7 USC 2014 note, 2017 note.>>  The
                    Disaster Assistance Act of 1988 (Public Law 100-387; 102
                    Stat. 924).
                        (KK) <<NOTE: 7 USC 20113et seq.>>  The Food,
                    Agriculture, Conservation, and Trade Act of 1990 (Public
                    Law 101-624; 104 Stat. 3359).
                        (LL) <<NOTE: 42 USC 8011.>>  The Cranston-Gonzalez
                    National Affordable Housing Act (Public Law 101-625; 104
                    Stat. 4079).
                        (MM) <<NOTE: 7 USC 1421 note.>>  Section 388 of the
                    Persian Gulf Conflict Supplemental Authorization and
                    Personnel Benefits Act of 1991 (Public Law 102-25; 105
                    Stat. 98).
                        (NN) <<NOTE: 7 USC 1421 note, 2026 note.>>  The
                    Food, Agriculture, Conservation, and Trade Act
                    Amendments of 1991 (Public Law 102-237; 105 Stat. 1818).
                        (OO) <<NOTE: 7 USC 2014 note.>>  The Act of March
                    26, 1992 (Public Law 102-265; 106 Stat. 90).
                        (PP) <<NOTE: 7 USC 2011 note, 2020 note.>>  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) <<NOTE: 7 USC 2012 note.>>  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'';

    [[Page 122 STAT. 1099]]

                (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

    [[Page 122 STAT. 1100]]

    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 <<NOTE: Effective date.>> 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.

    [[Page 122 STAT. 1101]]

                        ``(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:

    [[Page 122 STAT. 1102]]

                              ``(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--

    [[Page 122 STAT. 1103]]

                (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 <<NOTE: Procedures.>> 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 <<NOTE: Deadline.>> 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:

    [[Page 122 STAT. 1104]]

    ``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 <<NOTE: Effective dates.>> 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.

    [[Page 122 STAT. 1105]]

                        ``(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

    [[Page 122 STAT. 1106]]

                              (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--

    [[Page 122 STAT. 1107]]

                        (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--

    [[Page 122 STAT. 1108]]

                        (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'';

    [[Page 122 STAT. 1109]]

                        (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) <<NOTE: 42 USC 411, 503.>>  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) <<NOTE: 42 USC 5179.>>  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--

    [[Page 122 STAT. 1110]]

                              (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) <<NOTE: 7 USC 2012 note.>>  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

    [[Page 122 STAT. 1111]]

                          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

    [[Page 122 STAT. 1112]]

                (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

    [[Page 122 STAT. 1113]]

                              ``(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''.

    [[Page 122 STAT. 1114]]

                           PART IV--PROGRAM INTEGRITY

    SEC. 4131. <<NOTE: Regulations.>> 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:

    [[Page 122 STAT. 1115]]

        ``(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

    [[Page 122 STAT. 1116]]

                (6) by adding at the end the following:

        ``(h) Flagrant Violations.--
                ``(1) In general.--The <<NOTE: Procedures.>> 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

    [[Page 122 STAT. 1117]]

                          to the value of the overissuance caused by the
                          systemic error.
                              ``(iv) Administrative
                          and <<NOTE: Applicability.>> 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.--

    [[Page 122 STAT. 1118]]

                        ``(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

    [[Page 122 STAT. 1119]]

                        ``(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.

    [[Page 122 STAT. 1120]]

                        ``(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 <<NOTE: Transfer date.>> 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 -

    [[Page 122 STAT. 1121]]

                (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. <<NOTE: 7 USC 7511a.>>  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

    [[Page 122 STAT. 1122]]

                        ``(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

    [[Page 122 STAT. 1123]]

                    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 <<NOTE: Deadline. Reports.>>  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

    [[Page 122 STAT. 1124]]

    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

    [[Page 122 STAT. 1125]]

    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. <<NOTE: 42 USC 1758a.>>  STATE PERFORMANCE ON ENROLLING
                              CHILDREN RECEIVING PROGRAM BENEFITS FOR
                              FREE SCHOOL MEALS.

        (a) In General.--Not <<NOTE: Deadline. Reports.>>  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--

    [[Page 122 STAT. 1126]]

                ``(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) <<NOTE: Website.>>  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.

    [[Page 122 STAT. 1127]]

                        ``(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. <<NOTE: 42 USC 1769a.>>  FRESH FRUIT AND VEGETABLE
                          PROGRAM.

        ``(a) In General.--For <<NOTE: Grants.>>  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.--

    [[Page 122 STAT. 1128]]

                ``(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

    [[Page 122 STAT. 1129]]

                    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) <<NOTE: Effective date.>>  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,

    [[Page 122 STAT. 1130]]

            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) <<NOTE: 42 USC 1769a note. Waiver authority.>>
            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.

    [[Page 122 STAT. 1131]]

                          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. <<NOTE: 42 USC 1755a.>>  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 <<NOTE: Deadline.>>  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. <<NOTE: 7 USC 2208 note.>>  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

    [[Page 122 STAT. 1132]]

            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. <<NOTE: Bill Emerson National Hunger Fellows and
                              Mickey Leland International Hunger
                              Fellows Program Act of 2008.>>  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.--

    [[Page 122 STAT. 1133]]

                ``(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 <<NOTE: Grants.>>  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

    [[Page 122 STAT. 1134]]

                    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.--

    [[Page 122 STAT. 1135]]

                ``(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--

    [[Page 122 STAT. 1136]]

                        ``(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;

    [[Page 122 STAT. 1137]]

                        ``(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. <<NOTE: 7 USC 5311a.>>  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. <<NOTE: 7 USC 612c-5.>>  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.

    [[Page 122 STAT. 1138]]

                (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) <<NOTE: 7 USC 612c-4.>>  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. <<NOTE: 7 USC 7517.>>  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.

    [[Page 122 STAT. 1139]]

                (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

    [[Page 122 STAT. 1140]]

                              (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

    [[Page 122 STAT. 1141]]

                        (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

    [[Page 122 STAT. 1142]]

                        (B) in subsection (d)(2), by striking ``each of the
                    fiscal years 1991 through 2007'' and inserting ``each of
                    fiscal years 2008 through 2012''.
                (4) Distribution of surplus commodities to special nutrition
            projects.--Section 1114(a)(2)(A) of the Agriculture and Food Act
            of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence
            by striking ``Effective through September 30, 2007'' and
            inserting ``For each of fiscal years 2008 through 2012''.

        (c) Farm Security and Rural Investment.--
                (1) Seniors farmers' market nutrition program.--Section 4402
            of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
            3007) is amended by striking by striking subsection (a) and
            inserting the following:

        ``(a) Funding.--Of the funds of the Commodity Credit Corporation,
    the Secretary of Agriculture shall use to carry out and expand the
    seniors farmers' market nutrition program $20,600,000 for each of fiscal
    years 2008 through 2012.''.
                (2) Nutrition information and awareness pilot program.--
            Section 4403(f) of the Farm Security and Rural Investment Act of
            2002 (7 U.S.C. 3171 note; Public Law 107-171) is amended by
            striking ``2007'' and inserting ``2012''.
    SEC. 4407. <<NOTE: 2 USC 1161 note.>>  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.

    [[Page 122 STAT. 1143]]

                ``(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.''.

    [[Page 122 STAT. 1144]]

    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).''.

    [[Page 122 STAT. 1145]]

    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

    [[Page 122 STAT. 1146]]

                        ``(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--

    [[Page 122 STAT. 1147]]

                (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. <<NOTE: 7 USC 1983b.>>  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

    [[Page 122 STAT. 1148]]

                        ``(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;

    [[Page 122 STAT. 1149]]

                                        ``(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--

    [[Page 122 STAT. 1150]]

                        ``(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 <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1151]]

                    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

    [[Page 122 STAT. 1152]]

                        (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''

    [[Page 122 STAT. 1153]]

            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. <<NOTE: 7 USC 1993.>>  TRANSITION TO PRIVATE
                            COMMERCIAL OR OTHER SOURCES OF CREDIT.

        ``(a) In General.--In <<NOTE: Plan. Regulations. Criteria.>>  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:

    [[Page 122 STAT. 1154]]

    ``SEC. 365. <<NOTE: 7 USC 2008.>>  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:

    [[Page 122 STAT. 1155]]

                        ``(A) the average outstanding insured obligations
                    issued by the bank for the calendar year, after
                    deducting from the obligations the percentages of the
                    guaranteed portions of loans and investments described
                    in paragraph (2), multiplied by 0.0020; and
                        ``(B) the product obtained by multiplying--
                              ``(i) the sum of--
                                        ``(I) the average principal
                                    outstanding for the calendar year on
                                    loans made by the bank that are in
                                    nonaccrual status; and
                                        ``(II) the average amount
                                    outstanding for the calendar year of
                                    other-than-temporarily impaired
                                    investments made by the bank; by
                              ``(ii) 0.0010.'';
                (2) by striking paragraph (4);
                (3) by redesignating paragraphs (2) and (3) as paragraphs
            (3) and (4), respectively;
                (4) by inserting after paragraph (1) the following:
                ``(2) Deductions from average outstanding insured
            obligations.--The average outstanding insured obligations issued
            by the bank for the calendar year referred to in paragraph
            (1)(A) shall be reduced by deducting from the obligations the
            sum of (as determined by the Corporation)--
                        ``(A) 90 percent of each of--
                              ``(i) the average principal outstanding for
                          the calendar year on the guaranteed portions of
                          Federal government-guaranteed loans made by the
                          bank that are in accrual status; and
                              ``(ii) the average amount outstanding for the
                          calendar year of the guaranteed portions of
                          Federal government-guaranteed investments made by
                          the bank that are not permanently impaired; and
                        ``(B) 80 percent of each of--
                              ``(i) the average principal outstanding for
                          the calendar year on the guaranteed portions of
                          State government-guaranteed loans made by the bank
                          that are in accrual status; and
                              ``(ii) the average amount outstanding for the
                          calendar year of the guaranteed portions of State
                          government-guaranteed investments made by the bank
                          that are not permanently impaired.'';
                (5) in paragraph (3) (as so redesignated by paragraph (3) of
            this subsection), by striking ``annual''; and
                (6) in paragraph (4) (as so redesignated by paragraph (3) of
            this subsection)--
                        (A) in the paragraph heading, by inserting ``or
                    investments'' after ``loans'' ; and
                        (B) in the matter preceding subparagraph (A), by
                    striking ``As used'' and all that follows through
                    ``guaranteed--'' and inserting ``In this section, the
                    term `government-guaranteed', when applied to a loan or
                    an investment, means a loan, credit, or investment, or
                    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''.

    [[Page 122 STAT. 1156]]

        (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

    [[Page 122 STAT. 1157]]

                          (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--

    [[Page 122 STAT. 1158]]

                ``(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 <<NOTE: Deadline.>>  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)--

    [[Page 122 STAT. 1159]]

                        (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. <<NOTE: 12 USC 2279c.>>  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

    [[Page 122 STAT. 1160]]

                    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

    [[Page 122 STAT. 1161]]

                        (B) by striking ``, subject to such limitations''
                    and all that follows through the end of the paragraph
                    and inserting a period.

        (d) <<NOTE: 12 USC 2252 note.>>  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.--

    [[Page 122 STAT. 1162]]

                                        ``(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 <<NOTE: 7 USC 2009ee--2009ee-
    3.>>  (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'';

    [[Page 122 STAT. 1163]]

                (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--

    [[Page 122 STAT. 1164]]

                                        ``(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;

    [[Page 122 STAT. 1165]]

                        ``(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)''.

    [[Page 122 STAT. 1166]]

    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) <<NOTE: Contracts.>>  Cooperative research program.--
            The Secretary shall enter into a cooperative research agreement
            with 1 or

    [[Page 122 STAT. 1167]]

            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.

    [[Page 122 STAT. 1168]]

                              ``(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.--

    [[Page 122 STAT. 1169]]

                ``(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) <<NOTE: Effective date. Termination date.>>  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.''.

    [[Page 122 STAT. 1170]]

    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;

    [[Page 122 STAT. 1171]]

                                        ``(III) provide to the petitioner an
                                    opportunity to appeal to the Under
                                    Secretary a determination made under
                                    this subparagraph;
                                        ``(IV) <<NOTE: Public
                                    information. Notice. Deadline.>>
                                    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) <<NOTE: Time period.>>  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) <<NOTE: Reports.>>  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) <<NOTE: Termination date.>>
                                    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

    [[Page 122 STAT. 1172]]

                    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''.

    [[Page 122 STAT. 1173]]

    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. <<NOTE: 7 USC 2008s.>>  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

    [[Page 122 STAT. 1174]]

                        ``(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.--

    [[Page 122 STAT. 1175]]

                              ``(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) <<NOTE: Deadline.>>  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.''.

    [[Page 122 STAT. 1176]]

    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. <<NOTE: 7 USC 2000t.>>  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:

    [[Page 122 STAT. 1177]]

    ``SEC. 379G. <<NOTE: 7 USC 2008u.>>  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) <<NOTE: Deadline.>>  Federal member.--
                    Notwithstanding any other provision of this section, if
                    a Federal member described

    [[Page 122 STAT. 1178]]

                    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:

    [[Page 122 STAT. 1179]]

    ``SEC. 383C. <<NOTE: 7 USC 2009bb-1a.>>  INTERSTATE COOPERATION
                              FOR ECONOMIC OPPORTUNITY AND EFFICIENCY.

        ``(a) In General.--The <<NOTE: Plans.>>  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 <<NOTE: 7 USC 2009bb-2.>>  amended by
                    striking ``383I'' and inserting ``383J''.
                        (C) Section 383E of the Consolidated Farm and Rural
                    Development Act (as so redesignated) <<NOTE: 7 USC
                    2009bb-3.>>  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) <<NOTE: 7 USC
                    2009bb-5.>>  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) <<NOTE: 7 USC
                    2009bb-8.>>  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)) <<NOTE: 7 USC 2009bb-2.>>  is amended--
                (1) in subsection (a)--

    [[Page 122 STAT. 1180]]

                        (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)) <<NOTE: 7 USC 2009bb-3.>>  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)) <<NOTE: 7 USC 2009bb-4.>>  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

    [[Page 122 STAT. 1181]]

                        ``(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)) <<NOTE: 7 USC 2009bb-5.>>  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)) <<NOTE: 7 USC 2009bb-6.>>  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)) <<NOTE: 7 USC 2009bb-7.>>  is amended by inserting
    ``multistate or'' before ``regional''.

    [[Page 122 STAT. 1182]]

        (j) Authorization of Appropriations.--Section 383N(a) of the
    Consolidated Farm and Rural Development Act (as redesignated by
    subsection (c)(1)(A)) <<NOTE: 7 USC 2009bb-12.>>  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)) <<NOTE: 7 USC 2009bb-13.>>  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''.

    [[Page 122 STAT. 1183]]

        (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. <<NOTE: 7 USC 2009cc-18.>>  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. <<NOTE: 7 USC 2009dd.>>  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. <<NOTE: 7 USC 2009dd-1.>>  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).

    [[Page 122 STAT. 1184]]

                ``(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. <<NOTE: 7 USC 2009dd-2.>>  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) <<NOTE: Establishment.>>  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;

    [[Page 122 STAT. 1185]]

                        ``(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) <<NOTE: Certification.>>  certify the eligibility of
            Regional Boards to receive regional investment strategy grants
            and regional innovation grants;
                ``(5) <<NOTE: Grants.>>  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) <<NOTE: Reports.>>  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 <<NOTE: Establishment.>>  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) <<NOTE: Deadline. Regulations.>>  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 <<NOTE: Deadline.>>  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--

    [[Page 122 STAT. 1186]]

                        ``(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 <<NOTE: Deadline.>>  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.

    [[Page 122 STAT. 1187]]

                ``(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. <<NOTE: 7 USC 2009dd-3.>>  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) <<NOTE: Certification.>>  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--

    [[Page 122 STAT. 1188]]

                        ``(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) <<NOTE: Reports.>>  provide annual reports to the
            Secretary and the National Board on progress made in achieving
            the strategy, including an annual financial statement.

    [[Page 122 STAT. 1189]]

    ``SEC. 385E. <<NOTE: 7 USC 2009dd-4.>>  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--

    [[Page 122 STAT. 1190]]

                        ``(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. <<NOTE: 7 USC 2009dd-5.>>  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.--

    [[Page 122 STAT. 1191]]

                ``(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;

    [[Page 122 STAT. 1192]]

                        ``(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

    [[Page 122 STAT. 1193]]

            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. <<NOTE: 7 USC 2009dd-6.>>  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

    [[Page 122 STAT. 1194]]

                ``(3) be subject to such other terms and conditions as are
            determined appropriate by the Secretary.
    ``SEC. 385H. <<NOTE: 7 USC 2009dd-7.>>  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.

    [[Page 122 STAT. 1195]]

                  Subtitle B--Rural Electrification Act of 1936

    SEC. 6101. ENERGY EFFICIENCY PROGRAMS.

        Sections 2(a) and 4 of the Rural Electrification Act of 1936 (7
    U.S.C. 902(a), 904) are amended by inserting ``efficiency and'' before
    ``conservation'' each place it appears.
    SEC. 6102. REINSTATEMENT OF RURAL UTILITY SERVICES DIRECT LENDING.

        (a) In General.--Section 4 of the Rural Electrification Act of 1936
    (7 U.S.C. 904) is amended--
                (1) by designating the first, second, and third sentences as
            subsections (a), (b), and (d), respectively; and
                (2) by inserting after subsection (b) (as so designated) the
            following:

        ``(c) Direct Loans.--
                ``(1) Direct hardship loans.--Direct hardship loans under
            this section shall be for the same purposes and on the same
            terms and conditions as hardship loans made under section
            305(c)(1).
                ``(2) Other direct loans.--All other direct loans under this
            section shall bear interest at a rate equal to the then current
            cost of money to the Government of the United States for loans
            of similar maturity, plus \1/8\ of 1 percent.''.

        (b) Elimination of Federal Financing Bank Guaranteed Loans.--Section
    306 of the Rural Electrification Act of 1936 (7 U.S.C. 936) is amended--
                (1) in the third sentence, by striking ``guarantee,
            accommodation, or subordination'' and inserting ``accommodation
            or subordination''; and
                (2) by striking the fourth sentence.
    SEC. 6103. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED
                              ENERGY EFFICIENCY AND DEMAND REDUCTION
                              AND FOR ENERGY EFFICIENCY AND USE
                              AUDITS.

        Section 12 of the Rural Electrification Act of 1936 (7 U.S.C. 912)
    is amended by adding at the end the following:
        ``(c) Deferment of Payments on Loans.--
                ``(1) In general.--The Secretary shall allow borrowers to
            defer payment of principal and interest on any direct loan made
            under this Act to enable the borrower to make loans to
            residential, commercial, and industrial consumers--
                        ``(A) to conduct energy efficiency and use audits;
                    and
                        ``(B) to install energy efficient measures or
                    devices that reduce the demand on electric systems.
                ``(2) Amount.--The total amount of a deferment under this
            subsection shall not exceed the sum of the principal and
            interest on the loans made to a customer of the borrower, as
            determined by the Secretary.
                ``(3) Term.--The term of a deferment under this subsection
            shall not exceed 60 months.''.
    SEC. 6104. RURAL ELECTRIFICATION ASSISTANCE.

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

    [[Page 122 STAT. 1196]]

    ``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. <<NOTE: 7 USC 936f.>>  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) <<NOTE: Waiver authority.>>  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;

    [[Page 122 STAT. 1197]]

                ``(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) <<NOTE: Recommen- dations.>>  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) <<NOTE: 7 USC 940c-1 note.>>  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.

    [[Page 122 STAT. 1198]]

    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. <<NOTE: 7 USC 940g.>>  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:

    [[Page 122 STAT. 1199]]

    ``SEC. 318. <<NOTE: 7 USC 940h.>>  BONDING REQUIREMENTS.

        ``The <<NOTE: Review.>>  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. <<NOTE: Loans.>>  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.--

    [[Page 122 STAT. 1200]]

                        ``(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) <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1201]]

                          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) <<NOTE: Publication.>>  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--

    [[Page 122 STAT. 1202]]

                                        ``(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;

    [[Page 122 STAT. 1203]]

                ``(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) <<NOTE: 7 USC 950bb note.>>  Regulations.--The Secretary may
    implement the amendment made by subsection (a) through the promulgation
    of an interim regulation.

        (c) <<NOTE: 7 USC 950bb note.>>  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:

    [[Page 122 STAT. 1204]]

    ``SEC. 602. <<NOTE: 7 USC 950bb-1.>>  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) <<NOTE: Publication. Reports.>>  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 <<NOTE: Deadline. Reports.>>  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--

    [[Page 122 STAT. 1205]]

                (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 <<NOTE: Deadline.>>  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.''.

    [[Page 122 STAT. 1206]]

        (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

    [[Page 122 STAT. 1207]]

                    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.''.

    [[Page 122 STAT. 1208]]

    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).

    [[Page 122 STAT. 1209]]

        ``(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''.

    [[Page 122 STAT. 1210]]

    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 <<NOTE: Housing Assistance Council Authorization Act
    of 2008. 42 USC 1490e note.>>  Assistance Council
    SEC. 6301. SHORT TITLE.

        This subtitle may be cited as the ``Housing Assistance Council
    Authorization Act of 2008''.
    SEC. 6302. <<NOTE: 42 USC 1490e note.>>  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;

    [[Page 122 STAT. 1211]]

                (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. <<NOTE: 42 USC 1490e note.>>  AUDITS AND REPORTS.

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

        (b) GAO Report.--The Comptroller General of the United States shall
    conduct a study and submit a report to the Committee on Banking,
    Housing, and Urban Affairs of the Senate and the Committee on Financial
    Services of the House of Representative on the use of any funds
    appropriated to the Housing Assistance Council over the past 7 years.
    SEC. 6304. <<NOTE: 42 USC 1490e note.>>  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. <<NOTE: 42 USC 1490e note.>>  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.

    [[Page 122 STAT. 1212]]

                     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

    [[Page 122 STAT. 1213]]

            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

    [[Page 122 STAT. 1214]]

                    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.

    [[Page 122 STAT. 1215]]

                        ``(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) <<NOTE: 7 USC 3123 note.>>  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.''.

    [[Page 122 STAT. 1216]]

    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. <<NOTE: 7 USC 3123b.>>  RENEWABLE ENERGY COMMITTEE.

        ``(a) Initial Members.--Not <<NOTE: Deadline. Establishment.>>
    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.'';

    [[Page 122 STAT. 1217]]

                (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 <<NOTE: Deadline.>>  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.--

    [[Page 122 STAT. 1218]]

                        ``(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) <<NOTE: 7 USC 3152 note.>>  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.

    [[Page 122 STAT. 1219]]

        (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) <<NOTE: 7 USC 3156.>>  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''.

    [[Page 122 STAT. 1220]]

    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

    [[Page 122 STAT. 1221]]

                          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) <<NOTE: 7 USC 3175 note.>>  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''.

    [[Page 122 STAT. 1222]]

    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. <<NOTE: 7 USC 3222b-1.>> 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.

    [[Page 122 STAT. 1223]]

        ``(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. <<NOTE: 7 USC 3222b-2.>>  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''.

    [[Page 122 STAT. 1224]]

    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. <<NOTE: 7 USC 3243.>>  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--

    [[Page 122 STAT. 1225]]

                        ``(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 <<NOTE: Applicability.>>  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.--

    [[Page 122 STAT. 1226]]

                ``(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

    [[Page 122 STAT. 1227]]

            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

    [[Page 122 STAT. 1228]]

                        ``(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''.

    [[Page 122 STAT. 1229]]

    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. <<NOTE: 7 USC 3319e.>>  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 <<NOTE: Grants.>>  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.

    [[Page 122 STAT. 1230]]

        ``(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. <<NOTE: 7 USC 3319c.>>  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.''.

    [[Page 122 STAT. 1231]]

    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. <<NOTE: 7 USC 3319j.>>  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.--

    [[Page 122 STAT. 1232]]

                ``(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''.

    [[Page 122 STAT. 1233]]

        (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

    [[Page 122 STAT. 1234]]

            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.

    [[Page 122 STAT. 1235]]

                ``(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

    [[Page 122 STAT. 1236]]

            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) <<NOTE: Appropriation authorization.>>  Honey bee pest
            and pathogen surveillance.--There is authorized to be
            appropriated to conduct a nationwide honey

    [[Page 122 STAT. 1237]]

            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)''.

    [[Page 122 STAT. 1238]]

    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 <<NOTE: Applicability.>>  (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.

    [[Page 122 STAT. 1239]]

                ``(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) <<NOTE: 7 USC 5925b note.>>  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. <<NOTE: 7 USC 5925e.>>  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

    [[Page 122 STAT. 1240]]

                              ``(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 <<NOTE: Public information.>>
    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 <<NOTE: Applicability.>>  (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) <<NOTE: Grants.>>  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.

    [[Page 122 STAT. 1241]]

                ``(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. <<NOTE: 7 USC 5925f.>>  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 <<NOTE: Applicability.>>  (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''.

    [[Page 122 STAT. 1242]]

    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''.

    [[Page 122 STAT. 1243]]

    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. <<NOTE: 7 USC 7632.>>  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;

    [[Page 122 STAT. 1244]]

                ``(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 <<NOTE: Grants.>>  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) <<NOTE: Grants.>>  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

    [[Page 122 STAT. 1245]]

            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) <<NOTE: 7 USC 7632 note.>>  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.''.

    [[Page 122 STAT. 1246]]

        (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) <<NOTE: 7 USC 1301 note.>>  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

    [[Page 122 STAT. 1247]]

                        (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--

    [[Page 122 STAT. 1248]]

                              ``(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--

    [[Page 122 STAT. 1249]]

                              ``(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) <<NOTE: Grants.>>  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

    [[Page 122 STAT. 1250]]

                        ``(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

    [[Page 122 STAT. 1251]]

                          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) <<NOTE: 7 USC 450i note.>>  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.

    [[Page 122 STAT. 1252]]

        (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. <<NOTE: 7 USC 2241a.>>  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:

    [[Page 122 STAT. 1253]]

    ``SEC. 308. <<NOTE: 7 USC 3125a note.>>  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;

    [[Page 122 STAT. 1254]]

                        ``(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) <<NOTE: Maryland.>>  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) <<NOTE: Deadline. Reports.>>  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

    [[Page 122 STAT. 1255]]

                              ``(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) <<NOTE: 16 USC 502a-1 note.>>  Effective Date.--The amendment
    made by subsection (a) takes effect on October 1, 2008.

    [[Page 122 STAT. 1256]]

    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. <<NOTE: 20 USC 197.>>  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. <<NOTE: 7 USC 7614.>>  DEFINITIONS.

        Except as otherwise provided in this subtitle, in this subtitle:

    [[Page 122 STAT. 1257]]

                (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. <<NOTE: Oklahoma.>>  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. <<NOTE: Oklahoma.>>  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. <<NOTE: 7 USC 7614a.>>  ROADMAP.

        (a) In General.--Not <<NOTE: Deadline.>>  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--

    [[Page 122 STAT. 1258]]

                (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. <<NOTE: 7 USC 7614b.>>  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).

    [[Page 122 STAT. 1259]]

        (b) Consultation.--In carrying out the review and formulating and
    compiling the recommendations, the Secretary shall consult with the
    land-grant institutions.
    SEC. 7506. <<NOTE: 7 USC 7614c.>>  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) <<NOTE: 5 USC 5314.>>  by redesignating subsection (e)
            as subsection (g); and
                (4) by inserting after subsection (a) the following:

        ``(b) <<NOTE: President. Congress.>>  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

    [[Page 122 STAT. 1260]]

            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;

    [[Page 122 STAT. 1261]]

                              ``(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

    [[Page 122 STAT. 1262]]

                              ``(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).

    [[Page 122 STAT. 1263]]

                              ``(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

    [[Page 122 STAT. 1264]]

                    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.

    [[Page 122 STAT. 1265]]

                        ``(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 <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1266]]

                                        ``(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) <<NOTE: Procedures.>>  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

    [[Page 122 STAT. 1267]]

                    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) <<NOTE: Effective date. 7 USC 1522 note.>>  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:

    [[Page 122 STAT. 1268]]

                              ``(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.

    [[Page 122 STAT. 1269]]

                (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''.

    [[Page 122 STAT. 1270]]

                (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''.

    [[Page 122 STAT. 1271]]

                (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. <<NOTE: 7 USC 3202.>>  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 <<NOTE: Applicability.>>  (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.

    [[Page 122 STAT. 1272]]

    SEC. 7522. <<NOTE: 7 USC 5936.>>  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. <<NOTE: 7 USC 415-1.>>  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 <<NOTE: Applicability.>>  (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.

    [[Page 122 STAT. 1273]]

        (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. <<NOTE: 21 USC 113a note. Permits.>>  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. <<NOTE: 7 USC 5937.>>  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.

    [[Page 122 STAT. 1274]]

    SEC. 7526. <<NOTE: 7 USC 8114.>>  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) <<NOTE: State listing.>>  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.

    [[Page 122 STAT. 1275]]

                        (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

    [[Page 122 STAT. 1276]]

                                    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

    [[Page 122 STAT. 1277]]

                        (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

    [[Page 122 STAT. 1278]]

                        (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. <<NOTE: Effective date.>>  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. <<NOTE: 7 USC 5938.>>  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.

    [[Page 122 STAT. 1279]]

        (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

    [[Page 122 STAT. 1280]]

    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. <<NOTE: 16 USC 2101a.>>  STATE-WIDE ASSESSMENT AND
                          STRATEGIES FOR FOREST RESOURCES.

        ``(a) <<NOTE: Deadline.>>  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.

    [[Page 122 STAT. 1281]]

        ``(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) <<NOTE: 16 USC 2103d note.>>  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. <<NOTE: 16 USC 2103d.>>  COMMUNITY FOREST AND OPEN
                          SPACE CONSERVATION PROGRAM.

        ``(a) Definitions.--In this section:

    [[Page 122 STAT. 1282]]

                ``(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.

    [[Page 122 STAT. 1283]]

                ``(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.''.

    [[Page 122 STAT. 1284]]

    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;

    [[Page 122 STAT. 1285]]

                        ``(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. <<NOTE: 16 USC 2109a.>>  COMPETITIVE ALLOCATION OF
                            FUNDS TO STATE FORESTERS OR EQUIVALENT
                            STATE OFFICIALS.

        ``(a) Competition.--Beginning <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1286]]

    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. <<NOTE: 16 USC 2109b.>>  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 <<NOTE: Native Americans.>>  and Heritage
    Cooperation Authority
    SEC. 8101. <<NOTE: 25 USC 3051.>>  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;

    [[Page 122 STAT. 1287]]

                (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. <<NOTE: 25 USC 3052.>>  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. <<NOTE: 25 USC 3053.>>  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

    [[Page 122 STAT. 1288]]

    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. <<NOTE: 25 USC 3054.>>  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. <<NOTE: 25 USC 3055.>>  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. <<NOTE: 25 USC 3056.>>  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

    [[Page 122 STAT. 1289]]

                        (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. <<NOTE: 25 USC 3057.>>  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

    [[Page 122 STAT. 1290]]

                (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. <<NOTE: 16 USC 2206.>>  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

    [[Page 122 STAT. 1291]]

    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) <<NOTE: Deadline. 16 USC 2206 note.>>  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.--

    [[Page 122 STAT. 1292]]

                ``(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 <<NOTE: Effective
            date.>>  180 days from the date of enactment of this subsection,
            and except as provided

    [[Page 122 STAT. 1293]]

            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 <<NOTE: Deadline.>>  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;

    [[Page 122 STAT. 1294]]

                        ``(B) <<NOTE: Recommen- dations.>>  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 <<NOTE: Deadline.>>
            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) <<NOTE: Regulations.>>  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) <<NOTE: Effective date. 16 USC 3373 note. 16 USC 3373.>>
    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--

    [[Page 122 STAT. 1295]]

                (1) by striking subsections (e) and (f);
                (2) by redesignating subsection (g) as subsection (f); and
                (3) by inserting after subsection (d) the following new
            subsection:

        ``(e) Methods of Enrollment.--
                ``(1) Authorized methods.--Land may be enrolled in the
            healthy forests reserve program in accordance with--
                        ``(A) a 10-year cost-share agreement;
                        ``(B) a 30-year easement; or
                        ``(C)(i) a permanent easement; or
                        ``(ii) in a State that imposes a maximum duration
                    for easements, an easement for the maximum duration
                    allowed under State law.
                ``(2) Limitation on use of cost-share agreements and
            easements.--
                        ``(A) In general.--Of the total amount of funds
                    expended under the program for a fiscal year to acquire
                    easements and enter into cost-share agreements described
                    in paragraph (1)--
                              ``(i) not more than 40 percent shall be used
                          for cost-share agreements described in paragraph
                          (1)(A); and
                              ``(ii) not more than 60 percent shall be used
                          for easements described in subparagraphs (B) and
                          (C) of paragraph (1).
                        ``(B) Repooling.--The Secretary may use any funds
                    allocated under clause (i) or (ii) of subparagraph (A)
                    that are not obligated by April 1 of the fiscal year for
                    which the funds are made available to carry out a
                    different method of enrollment during that fiscal year.
                ``(3) Acreage owned by indian tribes.--In the case of
            acreage owned by an Indian tribe, the Secretary may enroll
            acreage into the healthy forests reserve program through the use
            of--
                        ``(A) a 30-year contract (the value of which shall
                    be equivalent to the value of a 30-year easement);
                        ``(B) a 10-year cost-share agreement; or
                        ``(C) any combination of the options described in
                    subparagraphs (A) and (B).''.

        (b) Financial Assistance.--Section 504(a) of the Healthy Forests
    Restoration Act of 2003 (16 U.S.C. 6574(a)) is amended by striking ``(a)
    Easements of Not More Than 99 Years'' and all that follows through
    ``502(f)(1)(C)'' and inserting the following:
        ``(a) Permanent Easements.--In the case of land enrolled in the
    healthy forests reserve program using a permanent easement (or an
    easement described in section 502(f)(1)(C)(ii))''.
        (c) Funding.--Section 508 of the Healthy Forests Restoration Act of
    2003 (16 U.S.C. 6578) is amended to read as follows:
    ``SEC. 508. FUNDING.

        ``(a) In General.--Of the funds of the Commodity Credit Corporation,
    the Secretary of Agriculture shall make available $9,750,000 for each of
    fiscal years 2009 through 2012 to carry out this title.
        ``(b) Duration of Availability.--The funds made available under
    subsection (a) shall remain available until expended.''.

    [[Page 122 STAT. 1296]]

         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;

    [[Page 122 STAT. 1297]]

                (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

    [[Page 122 STAT. 1298]]

            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

    [[Page 122 STAT. 1299]]

                          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).

    [[Page 122 STAT. 1300]]

                (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. <<NOTE: 16 USC 472a note.>>  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--

    [[Page 122 STAT. 1301]]

                              (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.

    [[Page 122 STAT. 1302]]

                (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. <<NOTE: 16 USC 1649a.>>  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

    [[Page 122 STAT. 1303]]

    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. <<NOTE: 7 USC 8101.>>  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.

    [[Page 122 STAT. 1304]]

                ``(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--

    [[Page 122 STAT. 1305]]

                                                ``(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. <<NOTE: 7 USC 8102.>>  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--

    [[Page 122 STAT. 1306]]

                                                ``(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.

    [[Page 122 STAT. 1307]]

                ``(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) <<NOTE: Effective date.>>  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.--

    [[Page 122 STAT. 1308]]

                        ``(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) <<NOTE: Deadline. Reports.>>  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 <<NOTE: Reports.>>  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.--

    [[Page 122 STAT. 1309]]

                        ``(A) Criteria.--
                              ``(i) In general.--Not <<NOTE: Deadline.>>
                          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 <<NOTE: Effective date.>>  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 <<NOTE: Establishment.>>  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

    [[Page 122 STAT. 1310]]

                    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. <<NOTE: 7 USC 8103.>>  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.

    [[Page 122 STAT. 1311]]

        ``(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.

    [[Page 122 STAT. 1312]]

                        ``(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

    [[Page 122 STAT. 1313]]

                    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. <<NOTE: 7 USC 8104.>>  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

    [[Page 122 STAT. 1314]]

    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. <<NOTE: 7 USC 8105.>>  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) <<NOTE: Records.>>  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

    [[Page 122 STAT. 1315]]

            available to eligible producers for production at facilities
            with a total refining capacity exceeding 150,000,000 gallons per
            year.
    ``SEC. 9006. <<NOTE: 7 USC 8106.>>  BIODIESEL FUEL EDUCATION
                              PROGRAM.

        ``(a) Establishment.--The <<NOTE: Grants.>>  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. <<NOTE: 7 USC 8107.>>  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 <<NOTE: Grants.>>  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;

    [[Page 122 STAT. 1316]]

                        ``(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;

    [[Page 122 STAT. 1317]]

                        ``(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) <<NOTE: Effective date.>>  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

    [[Page 122 STAT. 1318]]

                    (1), 4 percent shall be available to carry out
                    subsection (b).
                        ``(B) <<NOTE: Deadline.>>  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. <<NOTE: 7 USC 8108.>>  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;

    [[Page 122 STAT. 1319]]

                        ``(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;

    [[Page 122 STAT. 1320]]

                              ``(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 <<NOTE: Establishment.>>  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--

    [[Page 122 STAT. 1321]]

                        ``(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.

    [[Page 122 STAT. 1322]]

                ``(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) <<NOTE: Publication.>>  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

    [[Page 122 STAT. 1323]]

                                    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.

    [[Page 122 STAT. 1324]]

                ``(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. <<NOTE: 7 USC 8109.>>  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.

    [[Page 122 STAT. 1325]]

                ``(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. <<NOTE: 7 USC 8110.>>  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 <<NOTE: Deadlines.>>  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

    [[Page 122 STAT. 1326]]

                    and sale for the crop year following the date of the
                    notice under this section.
                        ``(B) Reestimates.--Not <<NOTE: Deadlines.>>  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) <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1327]]

                          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 <<NOTE: Deadline.>>  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 <<NOTE: Sugar.>>  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. <<NOTE: 7 USC 8111.>>  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--

    [[Page 122 STAT. 1328]]

                              ``(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.

    [[Page 122 STAT. 1329]]

        ``(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;

    [[Page 122 STAT. 1330]]

                              ``(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--

    [[Page 122 STAT. 1331]]

                                        ``(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. <<NOTE: 7 USC 8112.>>  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.

    [[Page 122 STAT. 1332]]

        ``(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. <<NOTE: 7 USC 8113.>>  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;

    [[Page 122 STAT. 1333]]

                        ``(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) <<NOTE: Reports.>>  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.

    [[Page 122 STAT. 1334]]

                (2) Considerations.--In addressing the issues described in
            paragraph (1), the Secretaries shall consider--
                        (A) the effects of increased tank truck, rail, and
                    barge transport on existing infrastructure and safety;
                        (B) the feasibility of shipping biofuels through
                    pipelines in existence as the date of enactment of this
                    Act;
                        (C) the development of new biofuels pipelines,
                    including siting, financing, timing, and other economic
                    issues;
                        (D) the implications of various biofuel blend levels
                    on infrastructure needs;
                        (E) the implications of various approaches to
                    infrastructure development on resource use and
                    conservation;
                        (F) regional differences in biofuels infrastructure
                    needs; and
                        (G) other infrastructure issues, as determined by
                    the Secretaries.

        (c) Implementation.--In carrying out this section, the Secretaries
    --
                (1) shall--
                        (A) consult with individuals and entities with
                    interest or expertise in the areas described in
                    subsection (b);
                        (B) to the extent available, use the information
                    developed and results of the related studies authorized
                    under sections 243 and 245 of the Energy Independence
                    and Security Act of 2007 (Public Law 110-140; 121 Stat.
                    1540, 1546)); and
                        (C) submit to Congress the report required under
                    subsection (a)(3), including--
                              (i) in the Senate--
                                        (I) the Committee on Agriculture,
                                    Nutrition, and Forestry ;
                                        (II) the Committee on Commerce,
                                    Science, and Transportation;
                                        (III) the Committee on Energy and
                                    Natural Resources; and
                                        (IV) the Committee on Environment
                                    and Public Works; and
                              (ii) in the House of Representatives--
                                        (I) the Committee on Agriculture;
                                        (II) the Committee on Energy and
                                    Commerce;
                                        (III) the Committee on
                                    Transportation and Infrastructure; and
                                        (IV) the Committee on Science and
                                    Technology; and
                (2) may issue a solicitation for a competition to select a
            contractor to support the Secretaries.
    SEC. 9003. RENEWABLE FERTILIZER STUDY.

        (a) In General.--Not <<NOTE: Deadline.>>  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;

    [[Page 122 STAT. 1335]]

                        (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) <<NOTE: Reports.>>  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. <<NOTE: 7 USC 1622b note.>>  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 <<NOTE: Deadline.>>  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,''.

    [[Page 122 STAT. 1336]]

    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. <<NOTE: 7 USC 7655a.>>  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--

    [[Page 122 STAT. 1337]]

                (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. <<NOTE: 7 USC 1622b.>>  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.

    [[Page 122 STAT. 1338]]

        (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. <<NOTE: 7 USC 608c note.>>  EXPEDITED MARKETING ORDER
                                FOR HASS AVOCADOS FOR GRADES AND
                                STANDARDS AND OTHER PURPOSES.

        (a) In General.--The <<NOTE: Procedures.>>  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 <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1339]]

                ``(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. <<NOTE: 7 USC 7721.>>  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

    [[Page 122 STAT. 1340]]

            agriculture that agrees to conduct early plant pest detection
            and surveillance activities.
                ``(2) Consultation.--In carrying out this subsection, the
            Secretary shall consult with--
                        ``(A) the National Plant Board; and
                        ``(B) other interested parties.
                ``(3) Federal advisory committee act.--The Federal Advisory
            Committee Act (5 U.S.C. App.) shall not apply to consultations
            under this subsection.
                ``(4) Application.--
                        ``(A) In general.--A State department of agriculture
                    seeking to enter into a cooperative agreement under this
                    subsection shall submit to the Secretary an application
                    containing such information as the Secretary may
                    require.
                        ``(B) Notification.--The Secretary shall notify
                    applicants of--
                              ``(i) the requirements to be imposed on a
                          State department of agriculture for auditing of,
                          and reporting on, the use of any funds provided by
                          the Secretary under the cooperative agreement;
                              ``(ii) the criteria to be used to ensure that
                          early pest detection and surveillance activities
                          supported under the cooperative agreement are
                          based on sound scientific data or thorough risk
                          assessments; and
                              ``(iii) the means of identifying pathways of
                          pest introductions.
                ``(5) Use of funds.--
                        ``(A) Plant pest detection and surveillance
                    activities.--A State department of agriculture that
                    receives funds under this subsection shall use the funds
                    to carry out early plant pest detection and surveillance
                    activities approved by the Secretary to prevent the
                    introduction or spread of a plant pest.
                        ``(B) Subagreements.--Nothing in this subsection
                    prevents a State department of agriculture from using
                    funds received under paragraph (4) to enter into
                    subagreements with political subdivisions of the State
                    that have legal responsibilities relating to
                    agricultural plant pest and disease surveillance.
                        ``(C) Non-federal share.--The non-Federal share of
                    the cost of carrying out a cooperative agreement under
                    this section may be provided in-kind, including through
                    provision of such indirect costs of the cooperative
                    agreement as the Secretary considers to be appropriate.
                        ``(D) Ability to provide funds.--The Secretary shall
                    not take the ability to provide non-Federal costs to
                    carry out a cooperative agreement entered into under
                    subparagraph (A) into consideration when deciding
                    whether to enter into a cooperative agreement with a
                    State department of agriculture.
                ``(6) Special funding considerations.--The Secretary shall
            provide funds to a State department of agriculture if the
            Secretary determines that--
                        ``(A) the State department of agriculture is in a
                    State that has a high risk of being affected by 1 or
                    more plant pests or diseases, taking into
                    consideration--

    [[Page 122 STAT. 1341]]

                              ``(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

    [[Page 122 STAT. 1342]]

                ``(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. <<NOTE: 7 USC 7761.>>  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''.

    [[Page 122 STAT. 1343]]

        (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. <<NOTE: 7 USC 7701 note.>>  REGULATIONS TO IMPROVE
                                MANAGEMENT AND OVERSIGHT OF CERTAIN
                                REGULATED ARTICLES.

        (a) In General.--Not <<NOTE: Deadlines.>>  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.

    [[Page 122 STAT. 1344]]

        (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. <<NOTE: 16 USC 2104a.>>  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

    [[Page 122 STAT. 1345]]

            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) <<NOTE: Deadline.>>  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--

    [[Page 122 STAT. 1346]]

                                        (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) <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1347]]

    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.''.

    [[Page 122 STAT. 1348]]

                            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 <<NOTE: Deadline.>>  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.

    [[Page 122 STAT. 1349]]

                        ``(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) <<NOTE: 7 USC 1622 note.>>  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. <<NOTE: 7 USC 1622c.>>  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

    [[Page 122 STAT. 1350]]

    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;

    [[Page 122 STAT. 1351]]

                              ``(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) <<NOTE: 7 USC 1636 note.>>  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)-- <<NOTE: 7 USC 1638.>>
                        (A) in clause (v), by striking ``and'';

    [[Page 122 STAT. 1352]]

                        (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-- <<NOTE: 7 USC 1638a.>>
                        (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

    [[Page 122 STAT. 1353]]

                    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

    [[Page 122 STAT. 1354]]

            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;

    [[Page 122 STAT. 1355]]

                (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. <<NOTE: 7 USC 229.>>  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

    [[Page 122 STAT. 1356]]

                    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) <<NOTE: 7 USC 729 note.>>  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. <<NOTE: 7 USC 197a.>>  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--

    [[Page 122 STAT. 1357]]

                        ``(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. <<NOTE: 7 USC 197b.>>  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. <<NOTE: 7 USC 197c.>>  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,

    [[Page 122 STAT. 1358]]

    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. <<NOTE: 7 USC 228 note.>>  REGULATIONS.

        As soon <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1359]]

                (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) <<NOTE: 7 USC 2008j note.>>  Effective date.--The
            amendment made by paragraph (1) takes effect on May 1, 2007.
    SEC. 11010. TRICHINAE CERTIFICATION PROGRAM.

        (a) <<NOTE: Deadlines. 7 USC 8304 note.>>  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) <<NOTE: 7 USC 8304 note.>>  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).

    [[Page 122 STAT. 1360]]

        (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)) <<NOTE: 7 USC 8313.>>  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

    [[Page 122 STAT. 1361]]

                (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. <<NOTE: 7 USC 8322.>>  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;

    [[Page 122 STAT. 1362]]

                (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. <<NOTE: 21 USC 683.>>  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

    [[Page 122 STAT. 1363]]

            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).

    [[Page 122 STAT. 1364]]

        ``(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) <<NOTE: Deadlines.>>  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

    [[Page 122 STAT. 1365]]

                        ``(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 <<NOTE: Deadline.>>  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 <<NOTE: Deadline.>>  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. <<NOTE: 21 USC 472.>>  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

    [[Page 122 STAT. 1366]]

            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

    [[Page 122 STAT. 1367]]

                              ``(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--

    [[Page 122 STAT. 1368]]

                              ``(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) <<NOTE: Deadlines.>>  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 <<NOTE: Deadline. Regulations.>>
            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--

    [[Page 122 STAT. 1369]]

                ``(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) <<NOTE: 21 USC 606.>>  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 <<NOTE: 21 USC 625.>>  any other
    provision of this Act, the requirements of sections 3, 4, 5, 10(b), and
    23 shall not apply to catfish.''.
                (2) <<NOTE: 21 USC 601 note.>>  Effective date.--

    [[Page 122 STAT. 1370]]

                        (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 <<NOTE: Deadline.>>  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 <<NOTE: Deadline.>>  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. <<NOTE: 21 USC 612.>>  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. <<NOTE: 21 USC 613.>>  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

    [[Page 122 STAT. 1371]]

    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''.

    [[Page 122 STAT. 1372]]

        (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)

    [[Page 122 STAT. 1373]]

                    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);

    [[Page 122 STAT. 1374]]

                        (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) <<NOTE: Deadlines.>>  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 <<NOTE: Contracts.>>  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

    [[Page 122 STAT. 1375]]

                                    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.''.

    [[Page 122 STAT. 1376]]

    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.

    [[Page 122 STAT. 1377]]

                        ``(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

    [[Page 122 STAT. 1378]]

                              ``(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.''.

    [[Page 122 STAT. 1379]]

    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) <<NOTE: Effective date.>>  to be
                          effective for the 2011 reinsurance year beginning
                          July 1, 2010; and
                              ``(ii) <<NOTE: Time period.>>  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

    [[Page 122 STAT. 1380]]

                          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.''.

    [[Page 122 STAT. 1381]]

    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

    [[Page 122 STAT. 1382]]

                    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

    [[Page 122 STAT. 1383]]

                          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

    [[Page 122 STAT. 1384]]

                          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 <<NOTE: Deadline.>>
                    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.).

    [[Page 122 STAT. 1385]]

                        ``(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 <<NOTE: Procedures.>>
                          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,

    [[Page 122 STAT. 1386]]

                          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

    [[Page 122 STAT. 1387]]

                          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.

    [[Page 122 STAT. 1388]]

                        ``(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--

    [[Page 122 STAT. 1389]]

                              ``(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 <<NOTE: Texas.>>  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;

    [[Page 122 STAT. 1390]]

                        ``(B) be actuarially sound; and
                        ``(C) require the payment of premiums and
                    administrative fees by a producer obtaining the
                    insurance.
                ``(3) Location.--The <<NOTE: Minnesota. North Dakota.>>
            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)--

    [[Page 122 STAT. 1391]]

                        (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

    [[Page 122 STAT. 1392]]

                ``(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. <<NOTE: 7 USC 1531.>>  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

    [[Page 122 STAT. 1393]]

            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.

    [[Page 122 STAT. 1394]]

                ``(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--

    [[Page 122 STAT. 1395]]

                              ``(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--

    [[Page 122 STAT. 1396]]

                                        ``(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--

    [[Page 122 STAT. 1397]]

                        ``(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

    [[Page 122 STAT. 1398]]

                    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

    [[Page 122 STAT. 1399]]

                          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

    [[Page 122 STAT. 1400]]

                                    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).

    [[Page 122 STAT. 1401]]

                        ``(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

    [[Page 122 STAT. 1402]]

                          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

    [[Page 122 STAT. 1403]]

                              ``(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

    [[Page 122 STAT. 1404]]

                    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 <<NOTE: Applicability.>>
            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.

    [[Page 122 STAT. 1405]]

                ``(4) Direct attribution.--
            Subsections <<NOTE: Applicability.>>  (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) <<NOTE: 7 USC 1501, 1515.>>  by striking ``This
                    title'' each place it appears and inserting ``This
                    subtitle''; and
                        (B) <<NOTE: 7 USC 1501-1503, 1505-1510, 1514, 1515,
                    1517, 1518, 1520-1523. State listing.>>  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.

    [[Page 122 STAT. 1406]]

         Subtitle B--Small <<NOTE: Small Business Disaster Response and
      Loan Improvements Act of 2008. 15 USC 631 note.>>  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. <<NOTE: 15 USC 636e.>>  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,''.

    [[Page 122 STAT. 1407]]

    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 <<NOTE: 15 USC 631 note.>>
            as section 44; and
                (2) by inserting after section 36 the following:
    ``SEC. 37. <<NOTE: 15 USC 657i.>>  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 <<NOTE: Deadline.>>  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) <<NOTE: Reports.>>  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--

    [[Page 122 STAT. 1408]]

                              ``(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 <<NOTE: Deadline. Plan. 15 USC 636
    note.>>  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.--

    [[Page 122 STAT. 1409]]

                (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.''.

    [[Page 122 STAT. 1410]]

        (b) <<NOTE: 15 USC 636f.>>  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. <<NOTE: 15 USC 657j.>>  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)-- <<NOTE: 15 USC 633.>>
                        (A) in paragraph (1), by striking ``7(c)(2)'' and
                    inserting ``7(d)(2)''; and
                        (B) in paragraph (2)--

    [[Page 122 STAT. 1411]]

                              (i) by striking ``7(c)(2)'' and inserting
                          ``7(d)(2)''; and
                              (ii) by striking ``7(e),''; and
                (2) in section 7(b), <<NOTE: 15 USC 636.>>  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. <<NOTE: 15 USC 657k.>>  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. <<NOTE: 15 USC 636g.>>  DEVELOPMENT AND IMPLEMENTATION
                                OF MAJOR DISASTER RESPONSE PLAN.

        (a) In General.--Not <<NOTE: Deadline.>>  later than 3 months after
    the date of enactment of this Act, the Administrator shall--
                (1) <<NOTE: Regulations.>>  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) <<NOTE: Reports.>>  submit a report to the Committee on
            Small Business and Entrepreneurship of the Senate and the
            Committee on

    [[Page 122 STAT. 1412]]

            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

    [[Page 122 STAT. 1413]]

            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. <<NOTE: 15 USC 1636h.>>  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).

    [[Page 122 STAT. 1414]]

    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. <<NOTE: 15 USC 657l.>>  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 <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1415]]

    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. <<NOTE: 15 USC 657m.>>  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) <<NOTE: 15 USC 636 note.>>  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--

    [[Page 122 STAT. 1416]]

                (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. <<NOTE: 15 USC 636i.>>  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

    [[Page 122 STAT. 1417]]

                                    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;

    [[Page 122 STAT. 1418]]

                                        ``(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

    [[Page 122 STAT. 1419]]

            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.

    [[Page 122 STAT. 1420]]

                ``(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 <<NOTE: Deadline.>>  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) <<NOTE: 15 USC 636 note.>>  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. <<NOTE: 15 USC 657n.>>  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.--

    [[Page 122 STAT. 1421]]

                ``(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) <<NOTE: Deadline.>>  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. <<NOTE: 15 USC 636j.>>  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 <<NOTE: Deadline.>>  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. <<NOTE: Applicability. Effective date.>>  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

    [[Page 122 STAT. 1422]]

                              (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. <<NOTE: Deadline.>>  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.

    [[Page 122 STAT. 1423]]

        (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. <<NOTE: 15 USC 636k.>>  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;

    [[Page 122 STAT. 1424]]

                        (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;

    [[Page 122 STAT. 1425]]

                        (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--

    [[Page 122 STAT. 1426]]

                        (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. <<NOTE: 15 USC 657o.>>  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

    [[Page 122 STAT. 1427]]

    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 <<NOTE: CFTC Reauthorization Act of 2008. 7 USC 1
    note.>>  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) <<NOTE: Applicability.>>  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

    [[Page 122 STAT. 1428]]

                                            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) <<NOTE: Applicability. Effective
                          dates.>>  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

    [[Page 122 STAT. 1429]]

                          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

    [[Page 122 STAT. 1430]]

                          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) <<NOTE: Applicability.>>  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.

    [[Page 122 STAT. 1431]]

                        ``(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

    [[Page 122 STAT. 1432]]

                              ``(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) <<NOTE: Applicability.>>  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) <<NOTE: 7 USC 2 note.>>  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;

    [[Page 122 STAT. 1433]]

                        ``(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,

    [[Page 122 STAT. 1434]]

            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 <<NOTE: 7 USC 6q.>>  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''.

    [[Page 122 STAT. 1435]]

        (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) <<NOTE: Reparations.>>  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. <<NOTE: Applicability. Deadline.>>  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. <<NOTE: 7 USC 2 note.>>  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) <<NOTE: Deadlines.>>  The SEC, the CFTC, or both, as
    appropriate, shall take action under their existing authorities to
    permit--
                (1) by September 30, 2009, risk-based portfolio margining
            for security options and security futures products (as defined
            in section 1a(32) of the Commodity Exchange Act); and
                (2) by June 30, 2009, the trading of futures on certain
            security indexes by resolving issues related to foreign security
            indexes.

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

    SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS.

        (a) Definitions.--Section la of the Commodity Exchange Act (7 U.S.C.
    la) is amended--
                (1) by redesignating paragraph (33) as paragraph (34); and
                (2) by inserting after paragraph (32) the following:
                ``(33) Significant price discovery contract.--The term
            `significant price discovery contract' means an agreement,
            contract, or transaction subject to section 2(h)(7).''.

    [[Page 122 STAT. 1436]]

        (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,

    [[Page 122 STAT. 1437]]

                          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) <<NOTE: Regulations.>>
                                            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) <<NOTE: Regulations.>>
                                    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

    [[Page 122 STAT. 1438]]

                                    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) <<NOTE: Regulations.>>
                                            establish and enforce rules to
                                            minimize conflicts of interest
                                            in its decision-making process;
                                            and

                                            ``(bb) <<NOTE: Procedures.>>
                                            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

    [[Page 122 STAT. 1439]]

    ``, 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--

    [[Page 122 STAT. 1440]]

                (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

    [[Page 122 STAT. 1441]]

            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 <<NOTE: Contracts.>>  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. <<NOTE: Notice.>>
    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. <<NOTE: 7 USC 2 note.>>  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) <<NOTE: Deadlines.>>  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) <<NOTE: Review. Deadline.>>  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

    [[Page 122 STAT. 1442]]

    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 <<NOTE: Effective date.>>  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.

    [[Page 122 STAT. 1443]]

                ``(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--

    [[Page 122 STAT. 1444]]

                              ``(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) <<NOTE: Public information.>>  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''.

    [[Page 122 STAT. 1445]]

    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 <<NOTE: Website.>>  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).

    [[Page 122 STAT. 1446]]

                ``(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. <<NOTE: 7 USC 2279-1 note.>>  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. <<NOTE: 7 USC 2279 note.>>  MINORITY FARMER ADVISORY
                                COMMITTEE.

        (a) Establishment.--Not <<NOTE: Deadline.>>  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.--

    [[Page 122 STAT. 1447]]

                ``(1) In general.--Not <<NOTE: Website.>>  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 <<NOTE: Website.>>  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. <<NOTE: 7 USC 2279-2.>>  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) <<NOTE: Public information. Website.>>  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:

    [[Page 122 STAT. 1448]]

                (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.

    [[Page 122 STAT. 1449]]

                (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

    [[Page 122 STAT. 1450]]

                (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. <<NOTE: 7 USC 6934.>>  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--

    [[Page 122 STAT. 1451]]

                              ``(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

    [[Page 122 STAT. 1452]]

                    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.

    [[Page 122 STAT. 1453]]

                ``(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 <<NOTE: Agricultural Security Improvement Act
    of 2008. 7 USC 8901 note.>>  Security
    SEC. 14101. SHORT TITLE.

        This subtitle may be cited as the ``Agricultural Security
    Improvement Act of 2008''.
    SEC. 14102. <<NOTE: 7 USC 8901.>>  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--

    [[Page 122 STAT. 1454]]

                              (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. <<NOTE: 7 USC 8911.>>  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

    [[Page 122 STAT. 1455]]

                (3) advise the Secretary on policies, regulations,
            processes, budget, and actions pertaining to homeland security.
    SEC. 14112. <<NOTE: 7 USC 8912.>>  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. <<NOTE: 7 USC 8913.>>  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. <<NOTE: 7 USC 8921.>>  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.

    [[Page 122 STAT. 1456]]

                (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. <<NOTE: 7 USC 8922.>>  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

    [[Page 122 STAT. 1457]]

    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 <<NOTE: Deadline.>>
            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,

    [[Page 122 STAT. 1458]]

    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. <<NOTE: 21 USC 864a.>>  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

    [[Page 122 STAT. 1459]]

    section $15,000,000 for the period of fiscal years 2008 through 2012.
    SEC. 14204. <<NOTE: 7 USC 2008q-1.>>  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

    [[Page 122 STAT. 1460]]

                        ``(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

    [[Page 122 STAT. 1461]]

                (3) Form.--The report under paragraph (1) shall be submitted
            in unclassified form, but may include a classified annex.

        (b) Educational Outreach.--Not <<NOTE: Deadline.>>  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

    [[Page 122 STAT. 1462]]

                              (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) <<NOTE: 39 USC 3001.>>  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. <<NOTE: 7 USC 2255b.>>  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

    [[Page 122 STAT. 1463]]

                    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 <<NOTE: Website.>>  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.''.

    [[Page 122 STAT. 1464]]

    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. <<NOTE: 7 USC 2148.>>  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) <<NOTE: 7 USC 2148 note.>>  Effective Date.--The amendment made
    by subsection (a) takes effect on the date of the enactment of this Act.
    SEC. 14211. <<NOTE: 7 USC 2209j.>>  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.

    [[Page 122 STAT. 1465]]

        (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. <<NOTE: 7 USC 6932a.>>  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) <<NOTE: Deadlines.>>  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:

    [[Page 122 STAT. 1466]]

    ``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 <<NOTE: Deadline.>>  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 <<NOTE: Effective
    date. 7 USC 2279b note.>>  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)--

    [[Page 122 STAT. 1467]]

                        (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) <<NOTE: Reports.>>  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:

    [[Page 122 STAT. 1468]]

         ``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).

    [[Page 122 STAT. 1469]]

                ``(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 <<NOTE: President.>>  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.

    [[Page 122 STAT. 1470]]

        ``(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,

    [[Page 122 STAT. 1471]]

            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) <<NOTE: Deadline. Plans.>>  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;

    [[Page 122 STAT. 1472]]

                ``(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.

    [[Page 122 STAT. 1473]]

                ``(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 <<NOTE: Deadline.>>  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.--

    [[Page 122 STAT. 1474]]

                ``(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--

    [[Page 122 STAT. 1475]]

                ``(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.

    [[Page 122 STAT. 1476]]

    ``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--

    [[Page 122 STAT. 1477]]

                ``(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,

    [[Page 122 STAT. 1478]]

    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 <<NOTE: Applicability.>>  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.

    [[Page 122 STAT. 1479]]

                       ``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 <<NOTE: Deadlines.>>  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

    [[Page 122 STAT. 1480]]

                        ``(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 <<NOTE: Applicability.>>
    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

    [[Page 122 STAT. 1481]]

    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. <<NOTE: State listing.>>  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.

    [[Page 122 STAT. 1482]]

                ``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 <<NOTE: 40 USC 15101 note.>>  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. <<NOTE: 7 USC 6941a.>>  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.

    [[Page 122 STAT. 1483]]

        ``(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) <<NOTE: 31 USC 3716 note.>>  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. <<NOTE: 7 USC 2206b.>>  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. <<NOTE: 7 USC 612c-5.>>  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

    [[Page 122 STAT. 1484]]

    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 <<NOTE: Heartland, Habitat, Harvest, and Horticulture
    Act of 2008.>>  AND TAX PROVISIONS
    SEC. 15001. <<NOTE: 26 USC 1 note.>>  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. <<NOTE: 19 USC 2497.>>  SUPPLEMENTAL AGRICULTURAL
                            DISASTER ASSISTANCE.

        ``(a) Definitions.--In this section:

    [[Page 122 STAT. 1485]]

                ``(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

    [[Page 122 STAT. 1486]]

                          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

    [[Page 122 STAT. 1487]]

            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--

    [[Page 122 STAT. 1488]]

                                                ``(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;

    [[Page 122 STAT. 1489]]

                              ``(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--

    [[Page 122 STAT. 1490]]

                              ``(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;

    [[Page 122 STAT. 1491]]

                                        ``(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

    [[Page 122 STAT. 1492]]

                                        ``(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

    [[Page 122 STAT. 1493]]

                                    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.

    [[Page 122 STAT. 1494]]

                              ``(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.--

    [[Page 122 STAT. 1495]]

                        ``(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

    [[Page 122 STAT. 1496]]

                    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.

    [[Page 122 STAT. 1497]]

                ``(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 <<NOTE: Applicability.>>
            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 <<NOTE: Applicability.>>  (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.

    [[Page 122 STAT. 1498]]

        ``(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. <<NOTE: 19 USC 2497a.>>  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

    [[Page 122 STAT. 1499]]

                    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. <<NOTE: 19 USC 2497b.>>  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) <<NOTE: 19 USC 2497 note.>>  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:

    [[Page 122 STAT. 1500]]

            ``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) <<NOTE: 19 USC 58c note.>>  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. <<NOTE: 26 USC 6655 note.>>  TIME FOR PAYMENT OF
                                CORPORATE ESTIMATED TAXES.

        The percentage under subparagraph (B) of section 401(1) of the Tax
    Increase Prevention and Reconciliation Act of 2005 in effect on the date
    of the enactment of this Act is increased by 7.75 percentage points.

    [[Page 122 STAT. 1501]]

                           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 <<NOTE: 26 USC 1402.>>
    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 <<NOTE: 42 USC 411.>>  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) <<NOTE: 26 USC 1402 note.>>  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

    [[Page 122 STAT. 1502]]

                    by inserting ``; endangered species recovery
                    expenditures'' before the period.

        (b) Limitations.--Paragraph <<NOTE: 26 USC 175.>>  (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) <<NOTE: 26 USC 175 note.>>  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) <<NOTE: Applicability.>>  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

    [[Page 122 STAT. 1503]]

                        ``(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 <<NOTE: 26 USC 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) <<NOTE: 26 USC 55 note.>>  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:

    [[Page 122 STAT. 1504]]

                ``(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) <<NOTE: 26 USC 856 note.>>  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 <<NOTE: 26 USC 856.>>  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) <<NOTE: 26 USC 856 note.>>  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) <<NOTE: 26 USC 856 note.>>  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

    [[Page 122 STAT. 1505]]

                                        ``(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 <<NOTE: 26 USC 857.>>
    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) <<NOTE: 26 USC 857 note.>>  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

    [[Page 122 STAT. 1506]]

            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. <<NOTE: Applicability.>>  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

    [[Page 122 STAT. 1507]]

                          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

    [[Page 122 STAT. 1508]]

                              ``(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) <<NOTE: Certification.>>  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.

    [[Page 122 STAT. 1509]]

        ``(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 <<NOTE: Regulations.>>
    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 <<NOTE: Deadline.>>  Secretary shall solicit applications
            for allocations of the national qualified forestry conservation
            bond limitation described in subsection (c)

    [[Page 122 STAT. 1510]]

            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

    [[Page 122 STAT. 1511]]

                    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 <<NOTE: 26 USC
    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''.

    [[Page 122 STAT. 1512]]

        (d) <<NOTE: 26 USC 54 note.>>  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 <<NOTE: 26 USC 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

    [[Page 122 STAT. 1513]]

                    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 <<NOTE: Applicability.>>  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 <<NOTE: Time
                    period.>>  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) <<NOTE: 26 USC
                    4101.>>  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

    [[Page 122 STAT. 1514]]

            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 <<NOTE: 26 USC 40.>>  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) <<NOTE: 26 USC 40 note.>>  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 <<NOTE: Contracts.>>  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,

    [[Page 122 STAT. 1515]]

                (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) <<NOTE: 26 USC 40.>>  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) <<NOTE: Applicability.>>  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'.

    [[Page 122 STAT. 1516]]

                        ``(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 <<NOTE: 26 USC
            6426.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: 26 USC 40 note.>>  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) <<NOTE: 26 USC 40 note.>>  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''.

    [[Page 122 STAT. 1517]]

    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) <<NOTE: Applicability. 19 USC 1313 note.>>  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 <<NOTE: 26 USC 147.>>
    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) <<NOTE: 26 USC 147 note.>>  Effective Date.--The amendments made
    by this section shall apply to bonds issued after the date of the
    enactment of this Act.

    [[Page 122 STAT. 1518]]

    SEC. 15342. ALLOWANCE OF SECTION 1031 TREATMENT FOR EXCHANGES
                                INVOLVING CERTAIN MUTUAL DITCH,
                                RESERVOIR, OR IRRIGATION COMPANY
                                STOCK.

        (a) In General.--Section 1031 <<NOTE: 26 USC 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) <<NOTE: 26 USC 1031 note.>>  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,

    [[Page 122 STAT. 1519]]

                ``(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 <<NOTE: Applicability.>>  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) <<NOTE: 26 USC 38.>>  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 <<NOTE: 26 USC 280C.>>
    is amended by adding at the end the following new subsection:

    [[Page 122 STAT. 1520]]

        ``(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) <<NOTE: 26 USC 38 note.>>  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) <<NOTE: 26 USC
    168.>>  (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) <<NOTE: 26 USC 168 note.>>  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 <<NOTE: Applicability.>>  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).

    [[Page 122 STAT. 1521]]

        (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) <<NOTE: 26 USC 1400N.>>  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,

    [[Page 122 STAT. 1522]]

                        (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 <<NOTE: 26 USC 1400Q.>>  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,

    [[Page 122 STAT. 1523]]

                        (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, <<NOTE: 26 USC 1400.>>  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 <<NOTE: 119 Stat. 2028.>> 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) <<NOTE: Applicability. 26 USC 48A note.>>  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.

    [[Page 122 STAT. 1524]]

                ``(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

    [[Page 122 STAT. 1525]]

                          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 <<NOTE: Applicability.>>  subsection shall be applied
            before the application of section 469.''.

        (b) <<NOTE: 26 USC 461 note.>>  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) <<NOTE: 26 USC 1402.>>  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)--

    [[Page 122 STAT. 1526]]

                ``(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 <<NOTE: 42 USC 411.>>
            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 <<NOTE: 42 USC
            412.>>  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) <<NOTE: 26 USC 1402 note.>>  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 <<NOTE: Regulations.>>
    Commodity Credit Corporation, through the Secretary of Agriculture,
    shall make a return,

    [[Page 122 STAT. 1527]]

    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) <<NOTE: 26 USC 6039J note.>>  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. <<NOTE: 42 USC 401 note.>>  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 <<NOTE: Haitian Hemispheric Opportunity through
     Partnership Encouragement Act of 2008. 19 USC 2701 note.>>  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.--

    [[Page 122 STAT. 1528]]

                        ``(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

    [[Page 122 STAT. 1529]]

                                        (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)--

    [[Page 122 STAT. 1530]]

                                        (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

    [[Page 122 STAT. 1531]]

                                        (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).''.

    [[Page 122 STAT. 1532]]

        (b) Special Rule for Woven Articles and Certain Knit Articles.--
    Section 213A(b) of the Carribean Basin Economic Recovery Act <<NOTE: 19
    USC 2703a.>>  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 <<NOTE: Extension. Effective date.>>
                          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.

    [[Page 122 STAT. 1533]]

                                        ``(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 <<NOTE: Extension. Effective date.>>
                          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 <<NOTE: 19 USC 2703a.>>  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

    [[Page 122 STAT. 1534]]

                          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 <<NOTE: 19 USC 2703a.>>  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

    [[Page 122 STAT. 1535]]

                    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

    [[Page 122 STAT. 1536]]

                                    (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) <<NOTE: Procedures.>>  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

    [[Page 122 STAT. 1537]]

                          (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) <<NOTE: Penalty.>>  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 <<NOTE: 19 USC 2703a.>>  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

    [[Page 122 STAT. 1538]]

                          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) <<NOTE: President.>>  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 <<NOTE: 19 USC 2703a.>>  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--

    [[Page 122 STAT. 1539]]

                                        ``(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;

    [[Page 122 STAT. 1540]]

                        ``(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 <<NOTE: Effective
                    date.>>  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) <<NOTE: Deadlines. Reports.>>  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

    [[Page 122 STAT. 1541]]

                          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

    [[Page 122 STAT. 1542]]

                          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;

    [[Page 122 STAT. 1543]]

                              ``(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 <<NOTE: Public
                    information.>>  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

    [[Page 122 STAT. 1544]]

                          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) <<NOTE: President.>>  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

    [[Page 122 STAT. 1545]]

                          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) <<NOTE: Time period.>>  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 <<NOTE: President.>>
            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) <<NOTE: President. Certification.>>
                    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

    [[Page 122 STAT. 1546]]

                    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. <<NOTE: 19 USC 2703a note.>>  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. <<NOTE: President. Deadlines. 19 USC 2703a note.>>
                                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).

    [[Page 122 STAT. 1547]]

    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. <<NOTE: 19 USC 2703a note.>>  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) <<NOTE: 19 USC 1313 note.>>  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. <<NOTE: 19 USC 1484 note.>>  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

    [[Page 122 STAT. 1548]]

            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

    [[Page 122 STAT. 1549]]

            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 <<NOTE: Notice. Deadlines.>>  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)).

    [[Page 122 STAT. 1550]]

            (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)).

    Nancy Pelosi

    Speaker of the House of Representatives.

    Jon Tester

    Acting President of the Senate pro tempore.

                      IN THE HOUSE OF REPRESENTATIVES, U.S.

    May 21, 2008.

      The House of Representatives having proceeded to reconsider the bill
    (H.R. 2419) entitled ``An Act to provide for the continuation of
    agricultural programs through fiscal year 2012, and for other
    purposes'', returned by the President of the United States with his
    objections, to the House of Representatives, in which it originated, it
    was
      Resolved, That the said bill pass, two-thirds of the House of
    Representatives agreeing to pass the same.

    Lorraine C. Miller

    Clerk.

       I certify that this Act originated in the House of Representatives.

    Lorraine C. Miller

    Clerk.

    [[Page 122 STAT. 1551]]

                       IN THE SENATE OF THE UNITED STATES,

    May 22, 2008.

      The Senate having proceeded to reconsider the bill (H.R. 2419)
    entitled ``An Act to provide for the continuation of agricultural
    programs through fiscal year 2012, and for other purposes'', returned by
    the President of the United States with his objections, to the House of
    Representatives, in which it originated, and passed by the House of
    Representatives on reconsideration of the same, it was
      Resolved, That the said bill pass, two-thirds of the Senators present
    having voted in the affirmative.

    Nancy Erickson

    Secretary.

    LEGISLATIVE HISTORY--H.R. 2419 (S. 2302):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 110-256, Pt. 1 (Comm. on Agriculture) and 110-627
    (Comm. of Conference).
    SENATE REPORTS: No. 110-220 accompanying S. 2302 (Comm. on Agriculture,
    Nutrition, and Forestry).
    CONGRESSIONAL RECORD:
                                                            Vol. 153 (2007):
                                        July 26, 27, considered and passed
                                            House.
                                        Nov. 5, 6, 8, 13-16, Dec. 5, 7, 10-
                                            14, considered and passed
                                            Senate, amended.
                                                            Vol. 154 (2008):
                                        May 14, House agreed to conference
                                            report. Senate considered
                                            conference report.
                                        May 15, Senate agreed to conference
                                            report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 44 (2008):
                May 21, Presidential veto message.
    CONGRESSIONAL RECORD, Vol. 154 (2008):
                May 21, House overrode veto.
                May 22, Senate overrode veto.

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