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