[United States Statutes at Large, Volume 122, 110th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

122 STAT. 1651

Public Law 110-246
110th Congress

An Act


 
To provide for the continuation of agricultural and other programs of
the Department of Agriculture through fiscal year 2012, and for other
purposes. [NOTE: June 18, 2008 -  [H.R. 6124]]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress [NOTE: Food, Conservation, and
Energy Act of 2008. 7 USC 8701 note.] assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
Sec. 3. Explanatory Statement.
Sec. 4. Repeal of duplicative enactment.

TITLE I--COMMODITY PROGRAMS

Sec. 1001. Definitions.

Subtitle A--Direct Payments and Counter-Cyclical Payments

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

Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

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

Subtitle C--Peanuts

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

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122 STAT. 1652

Sec. 1308. Adjustments of loans.

Subtitle D--Sugar

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

Subtitle E--Dairy

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

Subtitle F--Administration

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

TITLE II--CONSERVATION

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

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

Subtitle B--Conservation Reserve Program

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

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Sec. 2111. Conservation reserve program transition incentives for
beginning farmers or ranchers and socially disadvantaged
farmers or ranchers.

Subtitle C--Wetlands Reserve Program

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

Subtitle D--Conservation Stewardship Program

Sec. 2301. Conservation stewardship program.

Subtitle E--Farmland Protection and Grassland Reserve

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

Subtitle F--Environmental Quality Incentives Program

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

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

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

Subtitle H--Funding and Administration of Conservation Programs

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

Subtitle I--Conservation Programs Under Other Laws

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

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Sec. 2807. Desert terminal lakes.

Subtitle J--Miscellaneous Conservation Provisions

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

TITLE III--TRADE

Subtitle A--Food for Peace Act

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

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

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

Subtitle C--Miscellaneous

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

Subtitle D--Softwood Lumber

Sec. 3301. Softwood lumber.

TITLE IV--NUTRITION

Subtitle A--Food Stamp Program

PART I--Renaming of Food Stamp Act and Program

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

PART II--Benefit Improvements

Sec. 4101. Exclusion of certain military payments from income.

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122 STAT. 1655

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

PART III--Program Operations

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

PART IV--Program Integrity

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

PART V--Miscellaneous

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

Subtitle B--Food Distribution Programs

PART I--Emergency Food Assistance Program

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

PART II--Food Distribution Program on Indian Reservations

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

PART III--Commodity Supplemental Food Program

Sec. 4221. Commodity supplemental food program.

PART IV--Senior Farmers' Market Nutrition Program

Sec. 4231. 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.

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122 STAT. 1656

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

Subtitle B--Operating Loans

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

Subtitle C--Emergency Loans

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

Subtitle D--Administrative Provisions

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

Subtitle E--Farm Credit

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

Subtitle F--Miscellaneous

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

TITLE VI--RURAL DEVELOPMENT

Subtitle A--Consolidated Farm and Rural Development Act

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

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122 STAT. 1657

Sec. 6028. Rural Collaborative Investment Program.
Sec. 6029. Funding of pending rural development loan and grant
applications.

Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Energy efficiency programs.
Sec. 6102. Reinstatement of Rural Utility Services direct lending.
Sec. 6103. Deferment of payments to 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.

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122 STAT. 1658

Sec. 7126. National research and training virtual centers.
Sec. 7127. Matching funds requirement for research and extension
activities of 1890 institutions.
Sec. 7128. Hispanic-serving institutions.
Sec. 7129. Hispanic-serving agricultural colleges and universities.
Sec. 7130. International agricultural research, extension, and
education.
Sec. 7131. Competitive grants for international agricultural science and
education programs.
Sec. 7132. Administration.
Sec. 7133. Research equipment grants.
Sec. 7134. University research.
Sec. 7135. Extension Service.
Sec. 7136. Supplemental and alternative crops.
Sec. 7137. New Era Rural Technology Program.
Sec. 7138. Capacity building grants for NLGCA Institutions.
Sec. 7139. Borlaug international agricultural science and technology
fellowship program.
Sec. 7140. Aquaculture assistance programs.
Sec. 7141. Rangeland research grants.
Sec. 7142. Special authorization for biosecurity planning and response.
Sec. 7143. Resident instruction and distance education grants program
for insular area institutions of higher education.

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

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

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

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

Subtitle D--Other Laws

Sec. 7401. Critical Agricultural Materials Act.
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7403. Smith-Lever Act.
Sec. 7404. Hatch Act of 1887.
Sec. 7405. Agricultural Experiment Station Research Facilities Act.
Sec. 7406. Agriculture and food research initiative.
Sec. 7407. Agricultural Risk Protection Act of 2000.
Sec. 7408. Exchange or sale authority.
Sec. 7409. Enhanced use lease authority pilot program.
Sec. 7410. Beginning farmer and rancher development program.
Sec. 7411. Public education regarding use of biotechnology in producing
food for human consumption.
Sec. 7412. McIntire-Stennis Cooperative Forestry Act.
Sec. 7413. Renewable Resources Extension Act of 1978.
Sec. 7414. National Aquaculture Act of 1980.

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122 STAT. 1659

Sec. 7415. Construction of Chinese Garden at the National Arboretum.
Sec. 7416. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Sec. 7417. Eligibility of University of the District of Columbia for
certain land-grant university assistance.

Subtitle E--Miscellaneous

PART I--General Provisions

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

PART II--Research, Education, and Economics

Sec. 7511. Research, education, and economics.

PART III--New Grant and Research Programs

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

TITLE VIII--FORESTRY

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

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

Subtitle B--Cultural and Heritage Cooperation Authority

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

Subtitle C--Amendments to Other Forestry-Related Laws

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

Subtitle D--Boundary Adjustments and Land Conveyance Provisions

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

Subtitle E--Miscellaneous Provisions

Sec. 8401. Qualifying timber contract options.

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122 STAT. 1660

Sec. 8402. Hispanic-serving institution agricultural land national
resources leadership program.

TITLE IX--ENERGY

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

TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

Sec. 10001. Definitions.

Subtitle A--Horticulture Marketing and Information

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

Subtitle B--Pest and Disease Management

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

Subtitle C--Organic Agriculture

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

Subtitle D--Miscellaneous

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

TITLE XI--LIVESTOCK

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

TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS

Subtitle A--Crop Insurance and Disaster Assistance

Sec. 12001. Definition of organic crop.
Sec. 12002. General powers.

[[Page 1661]]
122 STAT. 1661

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

Subtitle B--Small Business Disaster Loan Program

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

PART I--Disaster Planning and Response

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

PART II--Disaster Lending

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

PART III--Miscellaneous

Sec. 12091. Reports on disaster assistance.

[[Page 1662]]
122 STAT. 1662

TITLE XIII--COMMODITY FUTURES

Sec. 13001. Short title.

Subtitle A--General Provisions

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

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

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

TITLE XIV--MISCELLANEOUS

Subtitle A--Socially Disadvantaged Producers and Limited Resource
Producers

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

Subtitle B--Agricultural Security

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

Chapter 1--Agricultural Security

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

Chapter 2--Other Provisions

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

Subtitle C--Other Miscellaneous Provisions

Sec. 14201. Cotton classification services.
Sec. 14202. Designation of States for cotton research and promotion.
Sec. 14203. Grants to reduce production of methamphetamines from
anhydrous ammonia.
Sec. 14204. Grants to improve supply, stability, safety, and training of
agricultural labor force.
Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978.
Sec. 14206. Report on stored quantities of propane.
Sec. 14207. Prohibitions on dog fighting ventures.
Sec. 14208. Department of Agriculture conference transparency.
Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act
amendments.
Sec. 14210. Importation of live dogs.
Sec. 14211. Permanent debarment from participation in Department of
Agriculture programs for fraud.

[[Page 1663]]
122 STAT. 1663

Sec. 14212. Prohibition on closure or relocation of county offices for
the Farm Service Agency.
Sec. 14213. USDA Graduate School.
Sec. 14214. Fines for violations of the Animal Welfare Act.
Sec. 14215. Definition of central filing system.
Sec. 14216. Consideration of proposed recommendations of study on use of
cats and dogs in Federal research.
Sec. 14217. Regional economic and infrastructure development.
Sec. 14218. Coordinator for chronically underserved rural areas.
Sec. 14219. Elimination of statute of limitations applicable to
collection of debt by administrative offset.
Sec. 14220. Availability of excess and surplus computers in rural areas.
Sec. 14221. Repeal of section 3068 of the Water Resources Development
Act of 2007.
Sec. 14222. Domestic food assistance programs.
Sec. 14223. Technical correction.

TITLE XV--TRADE AND TAX PROVISIONS

Sec. 15001. Short title; etc.

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

Sec. 15101. Supplemental agricultural disaster assistance.

Subtitle B--Revenue Provisions for Agriculture Programs

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

Subtitle C--Tax Provisions

PART I--Conservation

subpart a--land and species preservation provisions

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

subpart b--timber provisions

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

PART II--Energy Provisions

subpart a--cellulosic biofuel

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

subpart b--revenue provisions

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

PART III--Agricultural Provisions

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

PART IV--Other Revenue Provisions

Sec. 15351. Limitation on excess farm losses of certain taxpayers.

[[Page 1664]]
122 STAT. 1664

Sec. 15352. Modification to optional method of computing net earnings
from self-employment.
Sec. 15353. Information reporting for Commodity Credit Corporation
transactions.

PART V--Protection of Social Security

Sec. 15361. Protection of social security.

Subtitle D--Trade Provisions

PART I--Extension of Certain Trade Benefits

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

PART II--Miscellaneous Trade Provisions

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

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
SEC. 3. [NOTE: 7 USC 8701 note.]  EXPLANATORY STATEMENT.

The Joint Explanatory Statement submitted by the Committee of
Conference for the conference report to accompany H.R. 2419 of the 110th
Congress (House Report 110-627) shall be deemed to be part of the
legislative history of this Act and shall have the same effect with
respect to the implementation of this Act as it would have had with
respect to the implementation of H.R. 2419.
SEC. 4. [NOTE: 7 USC 8701 note.]  REPEAL OF DUPLICATIVE
ENACTMENT.

(a) In General.--The Act entitled ``An Act to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes'' (H.R. 2419 of the 110th Congress), and the amendments
made by that Act, are repealed, effective on the date of enactment of
that Act.
(b) Effective Date.--Except as otherwise provided in this Act, this
Act and the amendments made by this Act shall take effect on the earlier
of--
(1) the date of enactment of this Act; or
(2) the date of the enactment of the Act entitled ``An Act
to provide for the continuation of agricultural programs through
fiscal year 2012, and for other purposes'' (H.R. 2419 of the
110th Congress).

TITLE I--COMMODITY PROGRAMS

SEC. 1001. DEFINITIONS.

In this title (other than subtitle C):

[[Page 1665]]
122 STAT. 1665

(1) Average crop revenue election payment.--The term
``average crop revenue election payment'' means a payment made
to producers on a farm under section 1105.
(2) Base acres.--
(A) In general.--The term ``base acres'', with
respect to a covered commodity on a farm, means the
number of acres established under section 1101 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7911) as in effect on September 30, 2007, subject to any
adjustment under section 1101 of this Act.
(B) Peanuts.--The term ``base acres for peanuts''
has the meaning given the term in section 1301.
(3) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1104.
(4) Covered commodity.--The term ``covered commodity'' means
wheat, corn, grain sorghum, barley, oats, upland cotton, long
grain rice, medium grain rice, pulse crops, soybeans, and other
oilseeds.
(5) Direct payment.--The term ``direct payment'' means a
payment made to producers on a farm under section 1103.
(6) Effective price.--The term ``effective price'', with
respect to a covered commodity for a crop year, means the price
calculated by the Secretary under section 1104 to determine
whether counter-cyclical payments are required to be made for
that crop year.
(7) Extra long staple cotton.--The term ``extra long staple
cotton'' means cotton that--
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid of the species, or
other similar types of extra long staple cotton,
designated by the Secretary, having characteristics
needed for various end uses for which United States
upland cotton is not suitable and grown in irrigated
cotton-growing regions of the United States designated
by the Secretary or other areas designated by the
Secretary as suitable for the production of the
varieties or types; and
(B) is ginned on a roller-type gin or, if authorized
by the Secretary, ginned on another type gin for
experimental purposes.
(8) Loan commodity.--The term ``loan commodity'' means
wheat, corn, grain sorghum, barley, oats, upland cotton, extra
long staple cotton, long grain rice, medium grain rice,
soybeans, other oilseeds, graded wool, nongraded wool, mohair,
honey, dry peas, lentils, small chickpeas, and large chickpeas.
(9) Medium grain rice.--The term ``medium grain rice''
includes short grain rice.
(10) Other oilseed.--The term ``other oilseed'' means a crop
of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, crambe, sesame seed, or any oilseed designated by
the Secretary.
(11) Payment acres.--The term ``payment acres'' means, in
the case of direct payments and counter-cyclical payments--
(A) except as provided in subparagraph (B), 85
percent of the base acres of a covered commodity on a
farm on which direct payments or counter-cyclical
payments are made; and

[[Page 1666]]
122 STAT. 1666

(B) in the case of direct payments for each of the
2009 through 2011 crop years, 83.3 percent of the base
acres for the covered commodity on a farm on which
direct payments are made.
(12) Payment yield.--The term ``payment yield'' means the
yield established for direct payments and the yield established
for counter-cyclical payments under section 1102 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7912) as in
effect on September 30, 2007, or under section 1102 of this Act,
for a farm for a covered commodity.
(13) Producer.--
(A) In general.--The term ``producer'' means an
owner, operator, landlord, tenant, or sharecropper that
shares in the risk of producing a crop and is entitled
to share in the crop available for marketing from the
farm, or would have shared had the crop been produced.
(B) Hybrid seed.--In determining whether a grower of
hybrid seed is a producer, the Secretary shall--
(i) not take into consideration the existence
of a hybrid seed contract; and
(ii) ensure that program requirements do not
adversely affect the ability of the grower to
receive a payment under this title.
(14) Pulse crop.--The term ``pulse crop'' means dry peas,
lentils, small chickpeas, and large chickpeas.
(15) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(16) Target price.--The term ``target price'' means the
price per bushel, pound, or hundredweight (or other appropriate
unit) of a covered commodity used to determine the payment rate
for counter-cyclical payments.
(17) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
(18) United states premium factor.--The term ``United States
Premium Factor'' means the percentage by which the difference in
the United States loan schedule premiums for Strict Middling
(SM) 1\1/8\-inch upland cotton and for Middling (M) 1\3/32\-inch
upland cotton exceeds the difference in the applicable premiums
for comparable international qualities.

Subtitle A--Direct Payments and Counter-Cyclical Payments

SEC. 1101. [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

[[Page 1667]]
122 STAT. 1667

beginning on October 1, 2007, and ending on the date of
enactment of this Act.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary, or was
released during the period beginning on October 1, 2007,
and ending on the date of enactment of this Act.
(C) The producer has eligible pulse crop acreage,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(D) The producer has eligible oilseed acreage as the
result of the Secretary designating additional oilseeds,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(2) Special conservation reserve acreage payment rules.--For
the crop year in which a base acres adjustment under
subparagraph (A) or (B) of paragraph (1) is first made, the
owner of the farm shall elect to receive either direct payments
and counter-cyclical payments with respect to the acreage added
to the farm under this subsection or a prorated payment under
the conservation reserve contract, but not both.

(b) Prevention of Excess Base Acres.--
(1) Required reduction.--If the sum of the base acres for a
farm, together with the acreage described in paragraph (2)
exceeds the actual cropland acreage of the farm, the Secretary
shall reduce the base acres for 1 or more covered commodities
for the farm or the base acres for peanuts for the farm so that
the sum of the base acres and acreage described in paragraph (2)
does not exceed the actual cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for peanuts for the farm.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
Federal conservation program for which payments are made
in exchange for not producing an agricultural commodity
on the acreage.
(D) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional oilseeds,
any eligible oilseed acreage, which shall be determined
in the same manner as eligible oilseed acreage under
section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for a
covered commodity or the base acres for peanuts for the farm
against which the reduction required by paragraph (1) will be
made.

[[Page 1668]]
122 STAT. 1668

(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the case
of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1302(b) when applying the
requirements of this subsection.

(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may reduce, at
any time, the base acres for any covered commodity for
the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in a manner
prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall proportionately
reduce base acres on a farm for covered commodities for
land that has been subdivided and developed for multiple
residential units or other nonfarming uses if the size
of the tracts and the density of the subdivision is such
that the land is unlikely to return to the previous
agricultural use, unless the producers on the farm
demonstrate that the land--
(i) remains devoted to commercial agricultural
production; or
(ii) is likely to be returned to the previous
agricultural use.
(B) [NOTE: Procedures.]  Requirement.--The
Secretary shall establish procedures to identify land
described in subparagraph (A).
(3) Review and report.--Each year, to ensure, to the maximum
extent practicable, that payments are received only by
producers, the Secretary shall submit to Congress a report that
describes the results of the actions taken under paragraph (2).

(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive direct payments,
counter-cyclical payments, or average crop revenue election
payments if the sum of the base acres of the farm is 10 acres or
less, as determined by the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a farm
owned by--
(A) a socially disadvantaged farmer or rancher (as
defined in section 355(e) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)); or
(B) a limited resource farmer or rancher, as defined
by the Secretary.
(3) Data collection and publication.--The Secretary shall--
(A) collect and publish segregated data and survey
information about the farm profiles, utilization of
land, and crop production; and
(B) perform an evaluation on the supply and price of
fruits and vegetables based on the effects of suspension
of base acres under this section.

[[Page 1669]]
122 STAT. 1669

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 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.

[[Page 1670]]
122 STAT. 1670

(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Long grain rice, $2.35 per hundredweight.
(8) Medium grain rice, $2.35 per hundredweight.
(9) Soybeans, $0.44 per bushel.
(10) Other oilseeds, $0.80 per hundredweight.

(c) Payment Amount.--The amount of the direct payment to be paid to
the producers on a farm for a covered commodity for a crop year shall be
equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.

(d) Time for Payment.--
(1) In general.--Except as provided in paragraph (2), in the
case of each of the 2008 through 2012 crop years, the Secretary
may not make direct payments before October 1 of the calendar
year in which the crop of the covered commodity is harvested.
(2) Advance payments.--
(A) Option.--
(i) In general.--At the option of the
producers on a farm, the Secretary shall pay in
advance up to 22 percent of the direct payment for
a covered commodity for any of the 2008 through
2011 crop years to the producers on a farm.
(ii) 2008 crop year.--If the producers on a
farm elect to receive advance direct payments
under clause (i) for a covered commodity for the
2008 crop year, as soon as practicable after the
election, the Secretary shall make the advance
direct payment to the producers on the farm.
(B) Month.--
(i) Selection.--Subject to clauses (ii) and
(iii), the producers on a farm shall select the
month during which the advance payment for a crop
year will be made.
(ii) Options.--The month selected may be any
month during the period--
(I) beginning on December 1 of the
calendar year before the calendar year
in which the crop of the covered
commodity is harvested; and
(II) ending during the month within
which the direct payment would otherwise
be made.
(iii) Change.--The producers on a farm may
change the selected month for a subsequent advance
payment by providing advance notice to the
Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year ceases
to be a producer on that farm, or the extent to which the
producer shares in the risk of producing a crop changes, before
the date the remainder of the direct payment is made, the
producer shall be responsible for repaying the

[[Page 1671]]
122 STAT. 1671

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.
(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.

[[Page 1672]]
122 STAT. 1672

(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $5.80 per bushel.
(J) Other oilseeds, $10.10 per hundredweight.
(K) Dry peas, $8.32 per hundredweight.
(L) Lentils, $12.81 per hundredweight.
(M) Small chickpeas, $10.36 per hundredweight.
(N) Large chickpeas, $12.81 per hundredweight.
(3) Subsequent crop years.--For purposes of each of the 2010
through 2012 crop years, the target prices for covered
commodities shall be as follows:
(A) Wheat, $4.17 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.63 per bushel.
(D) Barley, $2.63 per bushel.
(E) Oats, $1.79 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $6.00 per bushel.
(J) Other oilseeds, $12.68 per hundredweight.
(K) Dry peas, $8.32 per hundredweight.
(L) Lentils, $12.81 per hundredweight.
(M) Small chickpeas, $10.36 per hundredweight.
(N) Large chickpeas, $12.81 per hundredweight.

(d) Payment Rate.--The payment rate used to make counter-cyclical
payments with respect to a covered commodity for a crop year shall be
equal to the difference between--
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection (b) for
the covered commodity.

(e) Payment Amount.--If counter-cyclical payments are required to be
paid under this section for any of the 2008 through 2012 crop years of a
covered commodity, the amount of the counter-cyclical payment to be paid
to the producers on a farm for that crop year shall be equal to the
product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.

(f) Time for Payments.--
(1) General rule.--Except as provided in paragraph (2), if
the Secretary determines under subsection (a) that counter-
cyclical payments are required to be made under this section for
the crop of a covered commodity, beginning October 1, or as soon
as practicable thereafter, after the end of the marketing year
for the covered commodity, the Secretary shall make the counter-
cyclical payments for the crop.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the 12-month
marketing year for a covered commodity, the Secretary
estimates that counter-cyclical payments will be
required for the crop of the covered commodity, the
Secretary shall

[[Page 1673]]
122 STAT. 1673

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 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

[[Page 1674]]
122 STAT. 1674

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) [NOTE: Notice.]  In general.--The Secretary
shall provide notice to producers regarding the
opportunity to make each of the elections described in
paragraph (1).
(B) Notice requirements.--The notice shall include--
(i) notice of the opportunity of the producers
on a farm to make the election; and
(ii) information regarding the manner in which
the election must be made and the time periods and
manner in which notice of the election must be
submitted to the Secretary.
(4) [NOTE: Notice.]  Election deadline.--Within the time
period and in the manner prescribed pursuant to paragraph (3),
all of the producers on a farm shall submit to the Secretary
notice of an election made under paragraph (1).
(5) Effect of failure to make election.--If all of the
producers on a farm fail to make an election under paragraph
(1), make different elections under paragraph (1), or fail to
timely notify the Secretary of the election made, as required by
paragraph (4), all of the producers on the farm shall be deemed
to have made the election to receive counter-cyclical payments
under section 1104 or 1304 for all covered commodities and
peanuts on the farm, and to otherwise not have made the election
described in paragraph (1), for the applicable crop years.

(b) Payments Required.--
(1) In general.--In the case of producers on a farm who make
an election under subsection (a) to receive ACRE payments for
any of the 2009 through 2012 crop years for all covered
commodities and peanuts, the Secretary shall make ACRE payments
available to the producers on a farm in accordance with this
subsection.
(2) ACRE payment.--
(A) In general.--Subject to paragraph (3), in the
case of producers on a farm described in paragraph (1),
the Secretary shall make ACRE payments available to the
producers on a farm for each crop year if--
(i) the actual State revenue for the crop year
for the covered commodity or peanuts in the State
determined under subsection (c); is less than

[[Page 1675]]
122 STAT. 1675

(ii) the ACRE program guarantee for the crop
year for the covered commodity or peanuts in the
State determined under subsection (d).
(B) Individual loss.--The Secretary shall make ACRE
payments available to the producers on a farm in a State
for a crop year only if (as determined by the
Secretary)--
(i) the actual farm revenue for the crop year
for the covered commodity or peanuts, as
determined under subsection (e); is less than
(ii) the farm ACRE benchmark revenue for the
crop year for the covered commodity or peanuts, as
determined under subsection (f).
(3) Time for payments.--In the case of each of the 2009
through 2012 crop years, the Secretary shall make ACRE payments
beginning October 1, or as soon as practicable thereafter, after
the end of the applicable marketing year for the covered
commodity or peanuts.

(c) Actual State Revenue.--
(1) In general.--For purposes of subsection (b)(2)(A), the
amount of the actual State revenue for a crop year of a covered
commodity or peanuts shall equal the product obtained by
multiplying--
(A) the actual State yield for each planted acre for
the crop year for the covered commodity or peanuts
determined under paragraph (2); and
(B) the national average market price for the crop
year for the covered commodity or peanuts determined
under paragraph (3).
(2) Actual state yield.--For purposes of paragraph (1)(A),
the actual State yield for each planted acre for a crop year for
a covered commodity or peanuts in a State shall equal (as
determined by the Secretary)--
(A) the quantity of the covered commodity or peanuts
that is produced in the State during the crop year;
divided by
(B) the number of acres that are planted to the
covered commodity or peanuts in the State during the
crop year.
(3) National average market price.--For purposes of
paragraph (1)(B), the national average market price for a crop
year for a covered commodity or peanuts in a State shall equal
the greater of--
(A) the national average market price received by
producers during the 12-month marketing year for the
covered commodity or peanuts, as determined by the
Secretary; or
(B) the marketing assistance loan rate for the
covered commodity or peanuts under section 1202 or 1307,
as reduced under subsection (a)(1).

(d) ACRE Program Guarantee.--
(1) Amount.--
(A) In general.--For purposes of subsection
(b)(2)(A) and subject to subparagraph (B), the ACRE
program guarantee for a crop year for a covered
commodity or peanuts in a State shall equal 90 percent
of the product obtained by multiplying--
(i) the benchmark State yield for each planted
acre for the crop year for the covered commodity
or

[[Page 1676]]
122 STAT. 1676

peanuts in a State determined under paragraph (2);
and
(ii) the ACRE program guarantee price for the
crop year for the covered commodity or peanuts
determined under paragraph (3).
(B) Minimum and maximum guarantee.--In the case of
each of the 2010 through 2012 crop years, the ACRE
program guarantee for a crop year for a covered
commodity or peanuts under subparagraph (A) shall not
decrease or increase more than 10 percent from the
guarantee for the preceding crop year.
(2) Benchmark state yield.--
(A) In general.--For purposes of paragraph
(1)(A)(i), subject to subparagraph (B), the benchmark
State yield for each planted acre for a crop year for a
covered commodity or peanuts in a State shall equal the
average yield per planted acre for the covered commodity
or peanuts in the State for the most recent 5 crop year
yields, excluding each of the crop years with the
highest and lowest yields, using National Agricultural
Statistics Service data.
(B) Assigned yield.--If the Secretary cannot
establish the benchmark State yield for each planted
acre for a crop year for a covered commodity or peanuts
in a State in accordance with subparagraph (A) or if the
yield determined under subparagraph (A) is an
unrepresentative average yield for the State (as
determined by the Secretary), the Secretary shall assign
a benchmark State yield for each planted acre for the
crop year for the covered commodity or peanuts in the
State on the basis of--
(i) previous average yields for a period of 5
crop years, excluding each of the crop years with
the highest and lowest yields; or
(ii) benchmark State yields for planted acres
for the crop year for the covered commodity or
peanuts in similar States.
(3) ACRE program guarantee price.--For purposes of paragraph
(1)(A)(ii), the ACRE program guarantee price for a crop year for
a covered commodity or peanuts in a State shall be the simple
average of the national average market price received by
producers of the covered commodity or peanuts for the most
recent 2 crop years, as determined by the Secretary.
(4) States with irrigated and nonirrigated land.--In the
case of a State in which at least 25 percent of the acreage
planted to a covered commodity or peanuts in the State is
irrigated and at least 25 percent of the acreage planted to the
covered commodity or peanuts in the State is not irrigated, the
Secretary shall calculate a separate ACRE program guarantee for
the irrigated and nonirrigated areas of the State for the
covered commodity or peanuts.

(e) Actual Farm Revenue.--For purposes of subsection (b)(2)(B)(i),
the amount of the actual farm revenue for a crop year for a covered
commodity or peanuts shall equal the amount determined by multiplying--
(1) the actual yield for the covered commodity or peanuts of
the producers on the farm; and

[[Page 1677]]
122 STAT. 1677

(2) the national average market price for the crop year for
the covered commodity or peanuts determined under subsection
(c)(3).

(f) Farm ACRE Benchmark Revenue.--For purposes of subsection
(b)(2)(B)(ii), the farm ACRE benchmark revenue for the crop year for a
covered commodity or peanuts shall equal the sum obtained by adding--
(1) the amount determined by multiplying--
(A) the average yield per planted acre for the
covered commodity or peanuts of the producers on the
farm for the most recent 5 crop years, excluding each of
the crop years with the highest and lowest yields; and
(B) the ACRE program guarantee price for the
applicable crop year for the covered commodity or
peanuts in a State determined under subsection (d)(3);
and
(2) the amount of the per acre crop insurance premium
required to be paid by the producers on the farm for the
applicable crop year for the covered commodity or peanuts on the
farm.

(g) Payment Amount.--If ACRE payments are required to be paid for
any of the 2009 through 2012 crop years of a covered commodity or
peanuts under this section, the amount of the ACRE payment to be paid to
the producers on the farm for the crop year under this section shall be
equal to the product obtained by multiplying--
(1) the lesser of--
(A) the difference between--
(i) the ACRE program guarantee for the crop
year for the covered commodity or peanuts in the
State determined under subsection (d); and
(ii) the actual State revenue from the crop
year for the covered commodity or peanuts in the
State determined under subsection (c); and
(B) 25 percent of the ACRE program guarantee for the
crop year for the covered commodity or peanuts in the
State determined under subsection (d);
(2)(A) for each of the 2009 through 2011 crop years, 83.3
percent of the acreage planted or considered planted to the
covered commodity or peanuts for harvest on the farm in the crop
year; and
(B) for the 2012 crop year, 85 percent of the acreage
planted or considered planted to the covered commodity or
peanuts for harvest on the farm in the crop year; and
(3) the quotient obtained by dividing--
(A) the average yield per planted acre for the
covered commodity or peanuts of the producers on the
farm for the most recent 5 crop years, excluding each of
the crop years with the highest and lowest yields; by
(B) the benchmark State yield for the crop year, as
determined under subsection (d)(2).
SEC. 1106. [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

[[Page 1678]]
122 STAT. 1678

producers shall agree, during the crop year for which the
payments are made and in exchange for the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 1107;
(D) to use the land on the farm, in a quantity equal
to the attributable base acres for the farm and any base
acres for peanuts for the farm under subtitle C, for an
agricultural or conserving use, and not for a
nonagricultural commercial, industrial, or residential
use, as determined by the Secretary; and
(E) to effectively control noxious weeds and
otherwise maintain the land in accordance with sound
agricultural practices, as determined by the Secretary,
if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to in
subparagraph (D).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance with
the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the Secretary.

(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph
(2), a transfer of (or change in) the interest of the
producers on a farm in base acres for which direct
payments or counter-cyclical payments are made, or on
which average crop revenue election payments are based,
shall result in the termination of the direct payments,
counter-cyclical payments, or average crop revenue
election payments to the extent the payments are made or
based on the base acres, unless the transferee or owner
of the acreage agrees to assume all obligations under
subsection (a).
(B) Effective date.--The termination shall take
effect on the date determined by the Secretary.
(2) Exception.--If a producer entitled to a direct payment,
counter-cyclical payment, or average crop revenue election
payment dies, becomes incompetent, or is otherwise unable to
receive the payment, the Secretary shall make the payment, in
accordance with rules issued by the Secretary.

(c) Reports.--
(1) Acreage reports.--As a condition on the receipt of any
benefits under this subtitle or subtitle B, the Secretary shall
require producers on a farm to submit to the Secretary annual
acreage reports with respect to all cropland on the farm.
(2) Production reports.--As a condition on the receipt of
any benefits under this subtitle or subtitle B, the Secretary
shall require producers on a farm that receive payments under
section 1105 to submit to the Secretary annual production

[[Page 1679]]
122 STAT. 1679

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 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.

[[Page 1680]]
122 STAT. 1680

(d) Planting Transferability Pilot Project.--
(1) Pilot project authorized.--Notwithstanding paragraphs
(1) and (2) of subsection (b) and in addition to the exceptions
provided in subsection (c), the Secretary shall carry out a
pilot project to permit the planting of cucumbers, green peas,
lima beans, pumpkins, snap beans, sweet corn, and tomatoes grown
for processing on base acres during each of the 2009 through
2012 crop years.
(2) Pilot project states and acres.--The number of base
acres eligible during each crop year for the pilot project under
paragraph (1) shall be--
(A) 9,000 acres in the State of Illinois;
(B) 9,000 acres in the State of Indiana;
(C) 1,000 acres in the State of Iowa;
(D) 9,000 acres in the State of Michigan;
(E) 34,000 acres in the State of Minnesota;
(F) 4,000 acres in the State of Ohio; and
(G) 9,000 acres in the State of Wisconsin.
(3) Contract and management requirements.--To be eligible
for selection to participate in the pilot project, the producers
on a farm shall--
(A) demonstrate to the Secretary that the producers
on the farm have entered into a contract to produce a
crop of a commodity specified in paragraph (1) for
processing;
(B) agree to produce the crop as part of a program
of crop rotation on the farm to achieve agronomic and
pest and disease management benefits; and
(C) provide evidence of the disposition of the crop.
(4) Temporary reduction in base acres.--The base acres on a
farm for a crop year shall be reduced by an acre for each acre
planted under the pilot program.
(5) Duration of reductions.--The reduction in the base acres
of a farm for a crop year under paragraph (4) shall expire at
the end of the crop year.
(6) Recalculation of base acres.--
(A) In general.--If the Secretary recalculates base
acres for a farm while the farm is included in the pilot
project, the planting and production of a crop of a
commodity specified in paragraph (1) on base acres for
which a temporary reduction was made under this section
shall be considered to be the same as the planting and
production of a covered commodity.
(B) Prohibition.--Nothing in this paragraph provides
authority for the Secretary to recalculate base acres
for a farm.
(7) Pilot impact evaluation.--
(A) In general.--The Secretary shall periodically
evaluate the pilot project conducted under this
subsection to determine the effects of the pilot project
on the supply and price of--
(i) fresh fruits and vegetables; and
(ii) fruits and vegetables for processing.
(B) Determination.--An evaluation under subparagraph
(A) shall include a determination as to whether--
(i) producers of fresh fruits and vegetables
are being negatively impacted; and

[[Page 1681]]
122 STAT. 1681

(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 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

[[Page 1682]]
122 STAT. 1682

to producers on a farm nonrecourse marketing assistance loans
for loan commodities produced on the farm.
(2) Terms and conditions.--The marketing assistance loans
shall be made under terms and conditions that are prescribed by
the Secretary and at the loan rate established under section
1202 for the loan commodity.

(b) Eligible Production.--The producers on a farm shall be eligible
for a marketing assistance loan under subsection (a) for any quantity of
a loan commodity produced on the farm.
(c) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under subsection
(a), the producer shall comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and applicable wetland protection requirements
under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.)
during the term of the loan.
SEC. 1202. [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

[[Page 1683]]
122 STAT. 1683

assistance loan under section 1201 for a loan commodity shall be equal
to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per
pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight
for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.00 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.60 per pound.

(c) 2010 Through 2012 Crop Years.--Except as provided in section
1105, for purposes of each of the 2010 through 2012 crop years, the loan
rate for a marketing assistance loan under section 1201 for a loan
commodity shall be equal to the following:
(1) In the case of wheat, $2.94 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per
pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per hundredweight
for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.

[[Page 1684]]
122 STAT. 1684

(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.

(d) Single County Loan Rate for Other Oilseeds.--The Secretary shall
establish a single loan rate in each county for each kind of other
oilseeds described in subsections (a)(11), (b)(11), and (c)(11).
SEC. 1203. [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;

[[Page 1685]]
122 STAT. 1685

(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally; and
(E) minimize discrepancies in marketing loan
benefits across State boundaries and across county
boundaries.

(b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium
Grain Rice.--The Secretary shall permit producers to repay a marketing
assistance loan under section 1201 for upland cotton, long grain rice,
and medium grain rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity, as
determined and adjusted by the Secretary in accordance with this
section.

(c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
marketing assistance loan for extra long staple cotton shall be at the
loan rate established for the commodity under section 1202, plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) [NOTE: Regulations.]  Prevailing World Market Price.--For
purposes of this section and section 1207, the Secretary shall prescribe
by regulation--
(1) a formula to determine the prevailing world market price
for each of upland cotton, long grain rice, and medium grain
rice; and
(2) a mechanism by which the Secretary shall announce
periodically those prevailing world market prices.

(e) Adjustment of Prevailing World Market Price for Upland Cotton,
Long Grain Rice, and Medium Grain Rice.--
(1) Rice.--The prevailing world market price for long grain
rice and medium grain rice determined under subsection (d) shall
be adjusted to United States quality and location.
(2) Cotton.--The prevailing world market price for upland
cotton determined under subsection (d)--
(A) shall be adjusted to United States quality and
location, with the adjustment to include--
(i) a reduction equal to any United States
Premium Factor for upland cotton of a quality
higher than Middling (M) 1\3/32\-inch; and
(ii) the average costs to market the
commodity, including average transportation costs,
as determined by the Secretary; and
(B) may be further adjusted, during the period
beginning on the date of enactment of this Act and
ending on July 31, 2013, if the Secretary determines the
adjustment is necessary to--
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of
upland cotton by the Federal Government;
(iii) ensure that upland cotton produced in
the United States can be marketed freely and
competitively, both domestically and
internationally; and

[[Page 1686]]
122 STAT. 1686

(iv) ensure an appropriate transition between
current-crop and forward-crop price quotations,
except that the Secretary may use forward-crop
price quotations prior to July 31 of a marketing
year only if--
(I) there are insufficient current-
crop price quotations; and
(II) the forward-crop price
quotation is the lowest such quotation
available.
(3) Guidelines for additional adjustments.--In making
adjustments under this subsection, the Secretary shall establish
a mechanism for determining and announcing the adjustments in
order to avoid undue disruption in the United States market.

(f) Repayment Rates for Confectionery and Other Kinds of Sunflower
Seeds.--The Secretary shall permit the producers on a farm to repay a
marketing assistance loan under section 1201 for confectionery and each
other kind of sunflower seed (other than oil sunflower seed) at a rate
that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the repayment rate established for oil sunflower seed.

(g) Payment of Cotton Storage Costs.--
(1) 2008 through 2011 crop years.--Effective for each of the
2008 through 2011 crop years, the Secretary shall provide cotton
storage payments in the same manner, and at the same rates as
the Secretary provided storage payments for the 2006 crop of
cotton, except that the rates shall be reduced by 10 percent.
(2) Subsequent crop years.--Beginning with the 2012 crop
year, the Secretary shall provide cotton storage payments in the
same manner, and at the same rates as the Secretary provided
storage payments for the 2006 crop of cotton, except that the
rates shall be reduced by 20 percent.

(h) Authority to Temporarily Adjust Repayment Rates.--
(1) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment rate
otherwise applicable under this section for marketing assistance
loans under section 1201 for a loan commodity.
(2) Duration.--Any adjustment made under paragraph (1) in
the repayment rate for marketing assistance loans for a loan
commodity shall be in effect on a short-term and temporary
basis, as determined by the Secretary.
SEC. 1205. [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

[[Page 1687]]
122 STAT. 1687

pelts and hay and silage derived from a loan commodity
are not eligible for a marketing assistance loan under
section 1201.
(B) Loan deficiency payment.--Effective for the 2008
through 2012 crop years, the Secretary may make loan
deficiency payments available under this section to
producers on a farm that produce unshorn pelts or hay
and silage derived from a loan commodity.

(b) Computation.--A loan deficiency payment for a loan commodity or
commodity referred to in subsection (a)(2) shall be computed by
multiplying--
(1) the payment rate determined under subsection (c) for the
commodity; by
(2) the quantity of the commodity produced by the eligible
producers, excluding any quantity for which the producers obtain
a marketing assistance loan under section 1201.

(c) Payment Rate.--
(1) In general.--In the case of a loan commodity, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
the loan commodity; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.
(2) Unshorn pelts.--In the case of unshorn pelts, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
ungraded wool; exceeds
(B) the rate at which a marketing assistance loan
for ungraded wool may be repaid under section 1204.
(3) Hay and silage.--In the case of hay or silage derived
from a loan commodity, the payment rate shall be the amount by
which--
(A) the loan rate established under section 1202 for
the loan commodity from which the hay or silage is
derived; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.

(d) Exception for Extra Long Staple Cotton.--This section shall not
apply with respect to extra long staple cotton.
(e) Effective Date for Payment Rate Determination.--The Secretary
shall determine the amount of the loan deficiency payment to be made
under this section to the producers on a farm with respect to a quantity
of a loan commodity or commodity referred to in subsection (a)(2) using
the payment rate in effect under subsection (c) as of the date the
producers request the payment.
SEC. 1206. [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

[[Page 1688]]
122 STAT. 1688

any other harvesting of the wheat, barley, or oats on that
acreage.
(2) Grazing of triticale acreage.--Effective for the 2008
through 2012 crop years, with respect to a producer on a farm
that uses acreage planted to triticale for the grazing of
livestock, the Secretary shall make a payment to the producer
under this section if the producer enters into an agreement with
the Secretary to forgo any other harvesting of triticale on that
acreage.

(b) Payment Amount.--
(1) In general.--The amount of a payment made under this
section to a producer on a farm described in subsection (a)(1)
shall be equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect, as of the date of the
agreement, for the county in which the farm is located;
by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the
farm with respect to which the producer elects to
forgo harvesting of wheat, barley, or oats; and
(ii) the payment yield in effect for the
calculation of direct payments under subtitle A
with respect to that loan commodity on the farm
or, in the case of a farm without a payment yield
for that loan commodity, an appropriate yield
established by the Secretary in a manner
consistent with section 1102 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7912).
(2) Grazing of triticale acreage.--The amount of a payment
made under this section to a producer on a farm described in
subsection (a)(2) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect for wheat, as of the
date of the agreement, for the county in which the farm
is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the
farm with respect to which the producer elects to
forgo harvesting of triticale; and
(ii) the payment yield in effect for the
calculation of direct payments under subtitle A
with respect to wheat on the farm or, in the case
of a farm without a payment yield for wheat, an
appropriate yield established by the Secretary in
a manner consistent with section 1102 of the Farm
Security and Rural Investment Act of 2002 (7
U.S.C. 7912).

(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan deficiency
payments are made under section 1205.
(2) Availability.--
(A) In general.--The Secretary shall establish an
availability period for the payments authorized by this
section.
(B) Certain commodities.--In the case of wheat,
barley, and oats, the availability period shall be
consistent

[[Page 1689]]
122 STAT. 1689

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.--
(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) [NOTE: President. Time period.]  In general.--
The President shall carry out an import quota program
during the period beginning on the date of enactment of
this Act through July 31, 2013, as provided in this
subsection.
(B) Program requirements.--Whenever the Secretary
determines and announces that for any consecutive 4-week
period, the Friday through Thursday average price
quotation for the lowest-priced United States growth, as
quoted for Middling (M) 1\3/32\-inch cotton, delivered
to a definable and significant international market, as
determined by the Secretary, exceeds the prevailing
world market price, there shall immediately be in effect
a special import quota.
(3) Quantity.--The quota shall be equal to 1 week's
consumption of cotton by domestic mills at the seasonally
adjusted average rate of the most recent 3 months for which data
are available.
(4) [NOTE: Deadlines.]  Application.--The quota shall
apply to upland cotton purchased not later than 90 days after
the date of the Secretary's announcement under paragraph (2) and
entered into the United States not later than 180 days after
that date.
(5) Overlap.--A special quota period may be established that
overlaps any existing quota period if required by paragraph (2),
except that a special quota period may not be established under
this subsection if a quota period has been established under
subsection (b).
(6) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act
(19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19
U.S.C. 2463(d)); and

[[Page 1690]]
122 STAT. 1690

(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(7) Limitation.--The quantity of cotton entered into the
United States during any marketing year under the special import
quota established under this subsection may not exceed the
equivalent of 10 week's consumption of upland cotton by domestic
mills at the seasonally adjusted average rate of the 3 months
immediately preceding the first special import quota established
in any marketing year.

(b) Limited Global Import Quota for Upland Cotton.--
(1) Definitions.--In this subsection:
(A) Supply.--The term ``supply'' means, using the
latest official data of the Bureau of the Census, the
Department of Agriculture, and the Department of the
Treasury--
(i) the carry-over of upland cotton at the
beginning of the marketing year (adjusted to 480-
pound bales) in which the quota is established;
(ii) production of the current crop; and
(iii) imports to the latest date available
during the marketing year.
(B) Demand.--The term ``demand'' means--
(i) the average seasonally adjusted annual
rate of domestic mill consumption of cotton during
the most recent 3 months for which data are
available; and
(ii) the larger of--
(I) average exports of upland cotton
during the preceding 6 marketing years;
or
(II) cumulative exports of upland
cotton plus outstanding export sales for
the marketing year in which the quota is
established.
(C) Limited global import quota.--The term ``limited
global import quota'' means a quantity of imports that
is not subject to the over-quota tariff rate of a
tariff-rate quota.
(2) [NOTE: President.]  Program.--The President shall
carry out an import quota program that provides that whenever
the Secretary determines and announces that the average price of
the base quality of upland cotton, as determined by the
Secretary, in the designated spot markets for a month exceeded
130 percent of the average price of the quality of cotton in the
markets for the preceding 36 months, notwithstanding any other
provision of law, there shall immediately be in effect a limited
global import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available or as
estimated by the Secretary.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12 months, the quantity of the quota next established
under this subsection shall be the smaller of 21 days of
domestic mill consumption calculated under subparagraph
(A) or the quantity required to increase the supply to
130 percent of the demand.

[[Page 1691]]
122 STAT. 1691

(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized
Tariff Schedule.
(D) Quota entry period.--When a quota is established
under this subsection, cotton may be entered under the
quota during the 90-day period beginning on the date the
quota is established by the Secretary.
(3) No overlap.--Notwithstanding paragraph (2), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(a).

(c) Economic Adjustment Assistance to Users of Upland Cotton.--
(1) In general.--Subject to paragraph (2), the Secretary
shall, on a monthly basis, provide economic adjustment
assistance to domestic users of upland cotton in the form of
payments for all documented use of that upland cotton during the
previous monthly period regardless of the origin of the upland
cotton.
(2) Value of assistance.--
(A) Beginning period.--During the period beginning
on August 1, 2008, and ending on July 31, 2012, the
value of the assistance provided under paragraph (1)
shall be 4 cents per pound.
(B) [NOTE: Effective date.]  Subsequent period.--
Effective beginning on August 1, 2012, the value of the
assistance provided under paragraph (1) shall be 3 cents
per pound.
(3) Allowable purposes.--Economic adjustment assistance
under this subsection shall be made available only to domestic
users of upland cotton that certify that the assistance shall be
used only to acquire, construct, install, modernize, develop,
convert, or expand land, plant, buildings, equipment,
facilities, or machinery.
(4) Review or audit.--The Secretary may conduct such review
or audit of the records of a domestic user under this subsection
as the Secretary determines necessary to carry out this
subsection.
(5) Improper use of assistance.--If the Secretary
determines, after a review or audit of the records of the
domestic user, that economic adjustment assistance under this
subsection was not used for the purposes specified in paragraph
(3), the domestic user shall be--
(A) liable to repay the assistance to the Secretary,
plus interest, as determined by the Secretary; and
(B) ineligible to receive assistance under this
subsection for a period of 1 year following the
determination of the Secretary.

[[Page 1692]]
122 STAT. 1692

SEC. 1208. [NOTE: 7 USC 8738.]  SPECIAL COMPETITIVE PROVISIONS
FOR EXTRA LONG STAPLE COTTON.

(a) [NOTE: Effective date. Termination date.]  Competitiveness
Program.--Notwithstanding any other provision of law, during the period
beginning on the date of enactment of this Act through July 31, 2013,
the Secretary shall carry out a program--
(1) to maintain and expand the domestic use of extra long
staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton produced
in the United States; and
(3) to ensure that extra long staple cotton produced in the
United States remains competitive in world markets.

(b) Payments Under Program; Trigger.--Under the program, the
Secretary shall make payments available under this section whenever--
(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is below the prevailing United
States price for a competing growth of extra long staple cotton;
and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is less than 134 percent of the
loan rate for extra long staple cotton.

(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long staple
cotton produced in the United States and exporters of extra long staple
cotton produced in the United States that enter into an agreement with
the Commodity Credit Corporation to participate in the program under
this section.
(d) Payment Amount.--Payments under this section shall be based on
the amount of the difference in the prices referred to in subsection
(b)(1) during the fourth week of the consecutive 4-week period
multiplied by the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such a
consecutive 4-week period.
SEC. 1209. [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,

[[Page 1693]]
122 STAT. 1693

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) [NOTE: Certification.]  certify that they were
the owners of the feed grain at the time of delivery to,
and that the quantity to be placed under loan under this
subsection was in fact harvested on the farm and
delivered to, a feedlot, feed mill, or commercial or on-
farm high-moisture storage facility, or to a facility
maintained by the users of corn and grain sorghum in a
high moisture state; and
(D) comply with deadlines established by the
Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection
within deadlines established by the Secretary.
(3) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain sorghum
of the same crop acquired by the producer equivalent to a
quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the producer's farm; by
(B) the lower of the farm program payment yield used
to make counter-cyclical payments under subtitle A or
the actual yield on a field, as determined by the
Secretary, that is similar to the field from which the
corn or grain sorghum was obtained.

(b) Recourse Loans Available for Seed Cotton.--For each of the 2008
through 2012 crops of upland cotton and extra long staple cotton, the
Secretary shall make available recourse seed cotton loans, as determined
by the Secretary, on any production.
(c) Repayment Rates.--Repayment of a recourse loan made under this
section shall be at the loan rate established for the commodity by the
Secretary, plus interest (determined in accordance with section 163 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7283)).
SEC. 1210. [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

[[Page 1694]]
122 STAT. 1694

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) [NOTE: Deadline.]  In general.--Not later than
180 days after the date of enactment of this Act, the
Secretary shall implement revisions in the
administration of the marketing assistance loan program
for upland cotton to more accurately and efficiently
reflect market values for upland cotton.
(B) Mandatory revisions.--Revisions under
subparagraph (A) shall include--
(i) the elimination of warehouse location
differentials;
(ii) the establishment of differentials for
the various quality factors and staple lengths of
cotton based on a 3-year, weighted moving average
of the weighted designated spot market regions, as
determined by regional production;
(iii) the elimination of any artificial split
in the premium or discount between upland cotton
with a 32 or 33 staple length due to micronaire;
and
(iv) a mechanism to ensure that no premium or
discount is established that exceeds the premium
or discount associated with a leaf grade that is 1
better than the applicable color grade.
(C) Discretionary revisions.--Revisions under
subparagraph (A) may include--
(i) the use of non-spot market price data, in
addition to spot market price data, that would
enhance the accuracy of the price information used
in determining quality adjustments under this
subsection;
(ii) adjustments in the premiums or discounts
associated with upland cotton with a staple length
of 33 or above due to micronaire with the goal of
eliminating any unnecessary artificial splits in
the calculations of the premiums or discounts; and
(iii) such other adjustments as the Secretary
determines appropriate, after consultations
conducted in accordance with paragraph (3).
(3) Consultation with private sector.--
(A) Prior to revision.--In making adjustments to the
loan rate for cotton (including any review of the
adjustments) as provided in this subsection, the
Secretary shall consult with representatives of the
United States cotton industry.
(B) Inapplicability of federal advisory committee
act.--The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to consultations under this subsection.

[[Page 1695]]
122 STAT. 1695

(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
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

[[Page 1696]]
122 STAT. 1696

from the farm, or would have shared had the crop been
produced.
(B) Hybrid seed.--In determining whether a grower of
hybrid seed is a producer, the Secretary shall--
(i) not take into consideration the existence
of a hybrid seed contract; and
(ii) ensure that program requirements do not
adversely affect the ability of the grower to
receive a payment under this subtitle.
(8) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(9) Target price.--The term ``target price'' means the price
per ton of peanuts used to determine the payment rate for
counter-cyclical payments.
(10) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
SEC. 1302. [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

[[Page 1697]]
122 STAT. 1697

farm, the Secretary shall reduce the base acres for peanuts for
the farm or the base acres for 1 or more covered commodities for
the farm so that the sum of the base acres for peanuts and
acreage described in paragraph (2) does not exceed the actual
cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for the farm for a covered
commodity.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
Federal conservation program for which payments are made
in exchange for not producing an agricultural commodity
on the acreage.
(D) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional oilseeds,
any eligible oilseed acreage, which shall be determined
in the same manner as eligible oilseed acreage under
section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for peanuts
or the base acres for covered commodities against which the
reduction required by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the case
of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1101(b) when applying the
requirements of this subsection.

(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may reduce, at
any time, the base acres for peanuts for the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in a manner
prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall proportionately
reduce base acres on a farm for peanuts for land that
has been subdivided and developed for multiple
residential units or other nonfarming uses if the size
of the tracts and the density of the subdivision is such
that the land is unlikely to return to the previous
agricultural use, unless the producers on the farm
demonstrate that the land--
(i) remains devoted to commercial agricultural
production; or
(ii) is likely to be returned to the previous
agricultural use.
(B) [NOTE: Procedures.]  Requirement.--The
Secretary shall establish procedures to identify land
described in subparagraph (A).

[[Page 1698]]
122 STAT. 1698

(3) Review and report.--Each year, to ensure, to the maximum
extent practicable, that payments are received only by
producers, the Secretary shall submit to Congress a report that
describes the results of the actions taken under paragraph (2).

(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive direct payments,
counter-cyclical payments, or average crop revenue election
payments if the sum of the base acres of the farm is 10 acres or
less, as determined by the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a farm
owned by--
(A) a socially disadvantaged farmer or rancher (as
defined in section 355(e) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)); or
(B) a limited resource farmer or rancher, as defined
by the Secretary.
(3) Data collection and publication.--The Secretary shall--
(A) collect and publish segregated data and survey
information about the farm profiles, utilization of
land, and crop production; and
(B) perform an evaluation on the supply and price of
fruits and vegetables based on the effects of suspension
of base acres under this section.
SEC. 1303. [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

[[Page 1699]]
122 STAT. 1699

(i) for peanuts for the 2008 crop year, as soon as
practicable after the election, the Secretary
shall make the advance direct payment to the
producers on the farm.
(B) Month.--
(i) Selection.--Subject to clauses (ii) and
(iii), the producers on a farm shall select the
month during which the advance payment for a crop
year will be made.
(ii) Options.--The month selected may be any
month during the period--
(I) beginning on December 1 of the
calendar year before the calendar year
in which the crop of peanuts is
harvested; and
(II) ending during the month within
which the direct payment would otherwise
be made.
(iii) Change.--The producers on a farm may
change the selected month for a subsequent advance
payment by providing advance notice to the
Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year ceases
to be a producer on that farm, or the extent to which the
producer shares in the risk of producing a crop changes, before
the date the remainder of the direct payment is made, the
producer shall be responsible for repaying the Secretary the
applicable amount of the advance payment, as determined by the
Secretary.
SEC. 1304. [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

[[Page 1700]]
122 STAT. 1700

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.--
(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.

[[Page 1701]]
122 STAT. 1701

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
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.--

[[Page 1702]]
122 STAT. 1702

(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.--
(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

[[Page 1703]]
122 STAT. 1703

(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--
(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.

[[Page 1704]]
122 STAT. 1704

(b) Loan Rate.--Except as provided in section 1105, the loan rate
for a marketing assistance loan for peanuts under subsection (a) shall
be equal to $355 per ton.
(c) Term of Loan.--
(1) In general.--A marketing assistance loan for peanuts
under subsection (a) shall have a term of 9 months beginning on
the first day of the first month after the month in which the
loan is made.
(2) Extensions prohibited.--The Secretary may not extend the
term of a marketing assistance loan for peanuts under subsection
(a).

(d) Repayment Rate.--
(1) In general.--The Secretary shall permit producers on a
farm to repay a marketing assistance loan for peanuts under
subsection (a) at a rate that is the lesser of--
(A) the loan rate established for peanuts under
subsection (b), plus interest (determined in accordance
with section 163 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7283)); or
(B) a rate that the Secretary determines will--
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of
peanuts by the Federal Government;
(iii) minimize the cost incurred by the
Federal Government in storing peanuts; and
(iv) allow peanuts produced in the United
States to be marketed freely and competitively,
both domestically and internationally.
(2) Authority to temporarily adjust repayment rates.--
(A) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment
rate otherwise applicable under this subsection for
marketing assistance loans for peanuts under subsection
(a).
(B) Duration.--An adjustment made under subparagraph
(A) in the repayment rate for marketing assistance loans
for peanuts shall be in effect on a short-term and
temporary basis, as determined by the Secretary.

(e) Loan Deficiency Payments.--
(1) Availability.--The Secretary may make loan deficiency
payments available to producers on a farm that, although
eligible to obtain a marketing assistance loan for peanuts under
subsection (a), agree to forgo obtaining the loan for the
peanuts in return for loan deficiency payments under this
subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the payment rate determined under paragraph (3)
for peanuts; by
(B) the quantity of the peanuts produced by the
producers, excluding any quantity for which the
producers obtain a marketing assistance loan under
subsection (a).
(3) Payment rate.--For purposes of this subsection, the
payment rate shall be the amount by which--
(A) the loan rate established under subsection (b);
exceeds

[[Page 1705]]
122 STAT. 1705

(B) the rate at which a loan may be repaid under
subsection (d).
(4) Effective date for payment rate determination.--The
Secretary shall determine the amount of the loan deficiency
payment to be made under this subsection to the producers on a
farm with respect to a quantity of peanuts using the payment
rate in effect under paragraph (3) as of the date the producers
request the payment.

(f) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under subsection
(a), the producer shall comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and applicable wetland protection requirements
under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.)
during the term of the loan.
(g) Reimbursable Agreements and Payment of Administrative
Expenses.--The Secretary may implement any reimbursable agreements or
provide for the payment of administrative expenses under this subtitle
only in a manner that is consistent with such activities in regard to
other commodities.
SEC. 1308. [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. [NOTE: Loans.]  SUGAR PROGRAM.

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

``(a) Sugarcane.--The Secretary shall make loans available to
processors of domestically grown sugarcane at a rate equal to--
``(1) 18.00 cents per pound for raw cane sugar for the 2008
crop year;
``(2) 18.25 cents per pound for raw cane sugar for the 2009
crop year;
``(3) 18.50 cents per pound for raw cane sugar for the 2010
crop year;

[[Page 1706]]
122 STAT. 1706

``(4) 18.75 cents per pound for raw cane sugar for the 2011
crop year; and
``(5) 18.75 cents per pound for raw cane sugar for the 2012
crop year.

``(b) Sugar Beets.--The Secretary shall make loans available to
processors of domestically grown sugar beets at a rate equal to--
``(1) 22.9 cents per pound for refined beet sugar for the
2008 crop year; and
``(2) a rate that is equal to 128.5 percent of the loan rate
per pound of raw cane sugar for the applicable crop year under
subsection (a) for each of the 2009 through 2012 crop years.

``(c) Term of Loans.--
``(1) In general.--A loan under this section during any
fiscal year shall be made available not earlier than the
beginning of the fiscal year and shall mature at the earlier
of--
``(A) the end of the 9-month period beginning on the
first day of the first month after the month in which
the loan is made; or
``(B) the end of the fiscal year in which the loan
is made.
``(2) Supplemental loans.--In the case of a loan made under
this section in the last 3 months of a fiscal year, the
processor may repledge the sugar as collateral for a second loan
in the subsequent fiscal year, except that the second loan
shall--
``(A) be made at the loan rate in effect at the time
the first loan was made; and
``(B) mature in 9 months less the quantity of time
that the first loan was in effect.

``(d) Loan Type; Processor Assurances.--
``(1) Nonrecourse loans.--The Secretary shall carry out this
section through the use of nonrecourse loans.
``(2) Processor assurances.--
``(A) In general.--The Secretary shall obtain from
each processor that receives a loan under this section
such assurances as the Secretary considers adequate to
ensure that the processor will provide payments to
producers that are proportional to the value of the loan
received by the processor for the sugar beets and
sugarcane delivered by producers to the processor.
``(B) Minimum payments.--
``(i) In general.--Subject to clause (ii), the
Secretary may establish appropriate minimum
payments for purposes of this paragraph.
``(ii) Limitation.--In the case of sugar
beets, the minimum payment established under
clause (i) shall not exceed the rate of payment
provided for under the applicable contract between
a sugar beet producer and a sugar beet processor.
``(3) Administration.--The Secretary may not impose or
enforce any prenotification requirement, or similar
administrative requirement not otherwise in effect on May 13,
2002, that has the effect of preventing a processor from
electing to forfeit the loan collateral (of an acceptable grade
and quality) on the maturity of the loan.

``(e) Loans for In-Process Sugar.--

[[Page 1707]]
122 STAT. 1707

``(1) Definition of in-process sugars and syrups.--In this
subsection, the term `in-process sugars and syrups' does not
include raw sugar, liquid sugar, invert sugar, invert syrup, or
other finished product that is otherwise eligible for a loan
under subsection (a) or (b).
``(2) Availability.--The Secretary shall make nonrecourse
loans available to processors of a crop of domestically grown
sugarcane and sugar beets for in-process sugars and syrups
derived from the crop.
``(3) Loan rate.--The loan rate shall be equal to 80 percent
of the loan rate applicable to raw cane sugar or refined beet
sugar, as determined by the Secretary on the basis of the source
material for the in-process sugars and syrups.
``(4) Further processing on forfeiture.--
``(A) In general.--As a condition of the forfeiture
of in-process sugars and syrups serving as collateral
for a loan under paragraph (2), the processor shall,
within such reasonable time period as the Secretary may
prescribe and at no cost to the Commodity Credit
Corporation, convert the in-process sugars and syrups
into raw cane sugar or refined beet sugar of acceptable
grade and quality for sugars eligible for loans under
subsection (a) or (b).
``(B) Transfer to corporation.--Once the in-process
sugars and syrups are fully processed into raw cane
sugar or refined beet sugar, the processor shall
transfer the sugar to the Commodity Credit Corporation.
``(C) Payment to processor.--On transfer of the
sugar, the Secretary shall make a payment to the
processor in an amount equal to the amount obtained by
multiplying--
``(i) the difference between--
``(I) the loan rate for raw cane
sugar or refined beet sugar, as
appropriate; and
``(II) the loan rate the processor
received under paragraph (3); by
``(ii) the quantity of sugar transferred to
the Secretary.
``(5) Loan conversion.--If the processor does not forfeit
the collateral as described in paragraph (4), but instead
further processes the in-process sugars and syrups into raw cane
sugar or refined beet sugar and repays the loan on the in-
process sugars and syrups, the processor may obtain a loan under
subsection (a) or (b) for the raw cane sugar or refined beet
sugar, as appropriate.
``(6) Term of loan.--The term of a loan made under this
subsection for a quantity of in-process sugars and syrups, when
combined with the term of a loan made with respect to the raw
cane sugar or refined beet sugar derived from the in-process
sugars and syrups, may not exceed 9 months, consistent with
subsection (c).

``(f) Avoiding Forfeitures; Corporation Inventory Disposition.--
``(1) In general.--Subject to subsection (d)(3), to the
maximum extent practicable, the Secretary shall operate the
program established under this section at no cost to the Federal
Government by avoiding the forfeiture of sugar to the Commodity
Credit Corporation.

[[Page 1708]]
122 STAT. 1708

``(2) Inventory disposition.--
``(A) In general.--To carry out paragraph (1), the
Commodity Credit Corporation may accept bids to obtain
raw cane sugar or refined beet sugar in the inventory of
the Commodity Credit Corporation from (or otherwise make
available such commodities, on appropriate terms and
conditions, to) processors of sugarcane and processors
of sugar beets (acting in conjunction with the producers
of the sugarcane or sugar beets processed by the
processors) in return for the reduction of production of
raw cane sugar or refined beet sugar, as appropriate.
``(B) Bioenergy feedstock.--If a reduction in the
quantity of production accepted under subparagraph (A)
involves sugar beets or sugarcane that has already been
planted, the sugar beets or sugarcane so planted may not
be used for any commercial purpose other than as a
bioenergy feedstock.
``(C) Additional authority.--The authority provided
under this paragraph is in addition to any authority of
the Commodity Credit Corporation under any other law.

``(g) Information Reporting.--
``(1) Duty of processors and refiners to report.--A
sugarcane processor, cane sugar refiner, and sugar beet
processor shall furnish the Secretary, on a monthly basis, such
information as the Secretary may require to administer sugar
programs, including the quantity of purchases of sugarcane,
sugar beets, and sugar, and production, importation,
distribution, and stock levels of sugar.
``(2) Duty of producers to report.--
``(A) Proportionate share states.--As a condition of
a loan made to a processor for the benefit of a
producer, the Secretary shall require each producer of
sugarcane located in a State (other than the
Commonwealth of Puerto Rico) in which there are in
excess of 250 producers of sugarcane to report, in the
manner prescribed by the Secretary, the sugarcane yields
and acres planted to sugarcane of the producer.
``(B) Other states.--The Secretary may require each
producer of sugarcane or sugar beets not covered by
subparagraph (A) to report, in a manner prescribed by
the Secretary, the yields of, and acres planted to,
sugarcane or sugar beets, respectively, of the producer.
``(3) Duty of importers to report.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall require an
importer of sugars, syrups, or molasses to be used for
human consumption or to be used for the extraction of
sugar for human consumption to report, in the manner
prescribed by the Secretary, the quantities of the
products imported by the importer and the sugar content
or equivalent of the products.
``(B) Tariff-rate quotas.--Subparagraph (A) shall
not apply to sugars, syrups, or molasses that are within
the quantities of tariff-rate quotas that are subject to
the lower rate of duties.
``(4) Collection of information on mexico.--
``(A) Collection.--The Secretary shall collect--

[[Page 1709]]
122 STAT. 1709

``(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) [NOTE: Publication.]  Monthly reports.--Taking into
consideration the information received under this subsection,
the Secretary shall publish on a monthly basis composite data on
production, imports, distribution, and stock levels of sugar.

``(h) Substitution of Refined Sugar.--For purposes of Additional
U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the
United States and the reexport programs and polyhydric alcohol program
administered by the Secretary, all refined sugars (whether derived from
sugar beets or sugarcane) produced by cane sugar refineries and beet
sugar processors shall be fully substitutable for the export of sugar
and sugar-containing products under those programs.
``(i) Effective Period.--This section shall be effective only for
the 2008 through 2012 crops of sugar beets and sugarcane.''.
(b) [NOTE: 7 USC 7272 note.]  Transition.--The Secretary shall
make loans for raw cane sugar and refined beet sugar available for the
2007 crop year on the terms and conditions provided in section 156 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272), as in effect on the day before the date of enactment of this Act.
SEC. 1402. [NOTE: Deadline. 7 USC 3602 note.]  UNITED STATES
MEMBERSHIP IN THE INTERNATIONAL SUGAR
ORGANIZATION.

The Secretary shall work with the Secretary of State to restore
United States membership in the International Sugar Organization not
later than 1 year after the date of enactment of this Act.
SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

(a) Definitions.--Section 359a of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359aa) is amended--
(1) by redesignating paragraphs (1), (2), (3), and (4) as
paragraphs (2), (4), (5), and (6), respectively;
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Human consumption.--The term `human consumption', when
used in the context of a reference to sugar (whether in the form
of sugar, in-process sugar, syrup, molasses, or in some other
form) for human consumption, includes sugar for use in human
food, beverages, or similar products.''; and
(3) by inserting after paragraph (2) (as so redesignated)
the following:
``(3) Market.--
``(A) In general.--The term `market' means to sell
or otherwise dispose of in commerce in the United
States.
``(B) Inclusions.--The term `market' includes--

[[Page 1710]]
122 STAT. 1710

``(i) the forfeiture of sugar under the loan
program for sugar established under section 156 of
the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7272);
``(ii) with respect to any integrated
processor and refiner, the movement of raw cane
sugar into the refining process; and
``(iii) the sale of sugar for the production
of ethanol or other bioenergy product, if the
disposition of the sugar is administered by the
Secretary under section 9010 of the Farm Security
and Rural Investment Act of 2002.
``(C) Marketing year.--Forfeited sugar described in
subparagraph (B)(i) shall be considered to have been
marketed during the crop year for which a loan is made
under the loan program described in that
subparagraph.''.

(b) Flexible Marketing Allotments for Sugar.--Section 359b of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended to read
as follows:
``SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

``(a) Sugar Estimates.--
``(1) [NOTE: Deadlines.]  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--

[[Page 1711]]
122 STAT. 1711

``(A) sufficient to maintain raw and refined sugar
prices above forfeiture levels so that there will be no
forfeitures of sugar to the Commodity Credit Corporation
under the loan program for sugar established under
section 156 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272); but
``(B) not less than 85 percent of the estimated
quantity of sugar for domestic human consumption for the
crop year.
``(2) Products.--The Secretary may include sugar products,
the majority content of which is sucrose for human consumption,
derived from sugar cane, sugar beets, molasses, or sugar in the
allotments established under paragraph (1) if the Secretary
determines it to be appropriate for purposes of this part.

``(c) Coverage of Allotments.--
``(1) [NOTE: Applicability.]  In general.--The marketing
allotments under this part shall apply to the marketing by
processors of sugar intended for domestic human consumption that
has been processed from sugar cane, sugar beets, or in-process
beet sugar, whether such sugar beets or in-process beet sugar
was produced domestically or imported.
``(2) Exceptions.--Consistent with the administration of
marketing allotments for each of the 2002 through 2007 crop
years, the marketing allotments shall not apply to sugar sold--
``(A) to facilitate the exportation of the sugar to
a foreign country, except that the exports of sugar
shall not be eligible to receive credits under reexport
programs for refined sugar or sugar containing products
administered by the Secretary;
``(B) to enable another processor to fulfill an
allocation established for that processor; or
``(C) for uses other than domestic human
consumption, except for the sale of sugar for the
production of ethanol or other bioenergy if the
disposition of the sugar is administered by the
Secretary under section 9010 of the Farm Security and
Rural Investment Act of 2002.
``(3) [NOTE: Deadline. Reports.]  Requirement.--The sale
of sugar described in paragraph (2)(B) shall be--
``(A) made prior to May 1; and
``(B) reported to the Secretary.

``(d) Prohibitions.--
``(1) In general.--During all or part of any crop year for
which marketing allotments have been established, no processor
of sugar beets or sugarcane shall market for domestic human
consumption a quantity of sugar in excess of the allocation
established for the processor, except--
``(A) to enable another processor to fulfill an
allocation established for that other processor; or
``(B) to facilitate the exportation of the sugar.
``(2) Civil penalty.--Any processor who knowingly violates
paragraph (1) shall be liable to the Commodity Credit
Corporation for a civil penalty in an amount equal to 3 times
the United States market value, at the time of the commission of
the violation, of that quantity of sugar involved in the
violation.''.

[[Page 1712]]
122 STAT. 1712

(c) Establishment of Flexible Marketing Allotments.--Section 359c of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--
(1) by striking subsection (b) and inserting the following:

``(b) Overall Allotment Quantity.--
``(1) In general.--The Secretary shall establish the overall
quantity of sugar to be allotted for the crop year (referred to
in this part as the `overall allotment quantity') at a level
that is--
``(A) sufficient to maintain raw and refined sugar
prices above forfeiture levels to avoid forfeiture of
sugar to the Commodity Credit Corporation; but
``(B) not less than a quantity equal to 85 percent
of the estimated quantity of sugar for domestic human
consumption for the crop year.
``(2) Adjustment.--Subject to paragraph (1), the Secretary
shall adjust the overall allotment quantity to maintain--
``(A) raw and refined sugar prices above forfeiture
levels to avoid the forfeiture of sugar to the Commodity
Credit Corporation; and
``(B) adequate supplies of raw and refined sugar in
the domestic market.'';
(2) in subsection (d)(2), by inserting ``or in-process beet
sugar'' before the period at the end;
(3) in subsection (g)(1)--
(A) by striking ``(1) in general.--The Secretary''
and inserting the following:
``(1) Adjustments.--
``(A) In general.--Subject to subparagraph (B), the
Secretary''; and
(B) by adding at the end the following:
``(B) Limitation.--In carrying out subparagraph (A),
the Secretary may not reduce the overall allotment
quantity to a quantity of less than 85 percent of the
estimated quantity of sugar for domestic human
consumption for the crop year.''; and
(4) by striking subsection (h).

(d) Allocation of Marketing Allotments.--Section 359d(b) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) is amended--
(1) in paragraph (1)(F), by striking ``Except as otherwise
provided in section 359f(c)(8), if'' and inserting ``If''; and
(2) in paragraph (2), by striking subparagraphs (G), (H),
and (I) and inserting the following:
``(G) Sale of factories of a processor to another
processor.--
``(i) Effect of sale.--Subject to
subparagraphs (E) and (F), if 1 or more factories
of a processor of beet sugar (but not all of the
assets of the processor) are sold to another
processor of beet sugar during a crop year, the
Secretary shall assign a pro rata portion of the
allocation of the seller to the allocation of the
buyer to reflect the historical contribution of
the production of the sold 1 or more factories to
the total allocation of the seller, unless the
buyer and the seller have agreed upon the transfer
of a different portion of the allocation of the
seller, in which case,

[[Page 1713]]
122 STAT. 1713

the Secretary shall transfer that portion agreed
upon by the buyer and seller.
``(ii) Application of allocation.--The
assignment of the allocation under clause (i)
shall apply--
``(I) during the remainder of the
crop year for which the sale described
in clause (i) occurs; and
``(II) during each subsequent crop
year.
``(iii) Use of other factories to fill
allocation.--If the assignment of the allocation
under clause (i) to the buyer for the 1 or more
purchased factories cannot be filled by the
production of the 1 or more purchased factories,
the remainder of the allocation may be filled by
beet sugar produced by the buyer from other
factories of the buyer.
``(H) New entrants starting production, reopening,
or acquiring an existing factory with production
history.--
``(i) Definition of new entrant.--
``(I) In general.--In this
subparagraph, the term `new entrant'
means an individual, corporation, or
other entity that--
``(aa) does not have an
allocation of the beet sugar
allotment under this part;
``(bb) is not affiliated
with any other individual,
corporation, or entity that has
an allocation of beet sugar
under this part (referred to in
this clause as a `third party');
and
``(cc) will process sugar
beets produced by sugar beet
growers under contract with the
new entrant for the production
of sugar at the new or re-opened
factory that is the basis for
the new entrant allocation.
``(II) Affiliation.--For purposes of
subclause (I)(bb), a new entrant and a
third party shall be considered to be
affiliated if--
``(aa) the third party has
an ownership interest in the new
entrant;
``(bb) the new entrant and
the third party have owners in
common;
``(cc) the third party has
the ability to exercise control
over the new entrant by
organizational rights,
contractual rights, or any other
means;
``(dd) the third party has a
contractual relationship with
the new entrant by which the new
entrant will make use of the
facilities or assets of the
third party; or
``(ee) there are any other
similar circumstances by which
the Secretary determines that
the new entrant and the third
party are affiliated.
``(ii) Allocation for a new entrant that has
constructed a new factory or reopened a factory
that was not operated since before 1998.--If a new
entrant constructs a new sugar beet processing
factory,

[[Page 1714]]
122 STAT. 1714

or acquires and reopens a sugar beet processing
factory that last processed sugar beets prior to
the 1998 crop year and there is no allocation
currently associated with the factory, the
Secretary shall--
``(I) assign an allocation for beet
sugar to the new entrant that provides a
fair and equitable distribution of the
allocations for beet sugar so as to
enable the new entrant to achieve a
factory utilization rate comparable to
the factory utilization rates of other
similarly-situated processors; and
``(II) reduce the allocations for
beet sugar of all other processors on a
pro rata basis to reflect the allocation
to the new entrant.
``(iii) Allocation for a new entrant that has
acquired an existing factory with a production
history.--
``(I) In general.--If a new entrant
acquires an existing factory that has
processed sugar beets from the 1998 or
subsequent crop year and has a
production history, on the mutual
agreement of the new entrant and the
company currently holding the allocation
associated with the factory, the
Secretary shall transfer to the new
entrant a portion of the allocation of
the current allocation holder to reflect
the historical contribution of the
production of the 1 or more sold
factories to the total allocation of the
current allocation holder, unless the
new entrant and current allocation
holder have agreed upon the transfer of
a different portion of the allocation of
the current allocation holder, in which
case, the Secretary shall transfer that
portion agreed upon by the new entrant
and the current allocation holder.
``(II) Prohibition.--In the absence
of a mutual agreement described in
subclause (I), the new entrant shall be
ineligible for a beet sugar allocation.
``(iv) Appeals.--Any decision made under this
subsection may be appealed to the Secretary in
accordance with section 359i.''.

(e) Reassignment of Deficits.--Section 359e(b) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended in paragraphs
(1)(D) and (2)(C), by inserting ``of raw cane sugar'' after ``imports''
each place it appears.
(f) Provisions Applicable to Producers.--Section 359f(c) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is amended--
(1) by striking paragraph (8);
(2) by redesignating paragraphs (1) through (7) as
paragraphs (2) through (8), respectively;
(3) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Definition of seed.--
``(A) In general.--In this subsection, the term
`seed' means only those varieties of seed that are
dedicated to

[[Page 1715]]
122 STAT. 1715

the production of sugarcane from which is produced sugar
for human consumption.
``(B) Exclusion.--The term `seed' does not include
seed of a high-fiber cane variety dedicated to other
uses, as determined by the Secretary'';
(4) in paragraph (3) (as so redesignated)--
(A) in the first sentence--
(i) by striking ``paragraph (1)'' and
inserting ``paragraph (2)''; and
(ii) by inserting ``sugar produced from''
after ``quantity of''; and
(B) in the second sentence, by striking ``paragraph
(7)'' and inserting ``paragraph (8)'';
(5) in the first sentence of paragraph (6)(C) (as so
redesignated), by inserting ``for sugar'' before ``in excess of
the farm's proportionate share''; and
(6) in paragraph (8) (as so redesignated), by inserting
``sugar from'' after ``the amount of''.

(g) Special Rules.--Section 359g of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359gg) is amended--
(1) by striking subsection (a) and inserting the following:

``(a) Transfer of Acreage Base History.--
``(1) Transfer authorized.--For the purpose of establishing
proportionate shares for sugarcane farms under section 359f(c),
the Secretary, on application of any producer, with the written
consent of all owners of a farm, may transfer the acreage base
history of the farm to any other parcels of land of the
applicant.
``(2) Converted acreage base.--
``(A) In general.--Sugarcane acreage base
established under section 359f(c) that has been or is
converted to nonagricultural use on or after May 13,
2002, may be transferred to other land suitable for the
production of sugarcane that can be delivered to a
processor in a proportionate share State in accordance
with this paragraph.
``(B) [NOTE: Deadline.]  Notification.--Not later
than 90 days after the Secretary becomes aware of a
conversion of any sugarcane acreage base to a
nonagricultural use, the Secretary shall notify the 1 or
more affected landowners of the transferability of the
applicable sugarcane acreage base.
``(C) Initial transfer period.--The owner of the
base attributable to the acreage at the time of the
conversion shall be afforded 90 days from the date of
the receipt of the notification under subparagraph (B)
to transfer the base to 1 or more farms owned by the
owner.
``(D) [NOTE: Notification. Time period.]  Grower
of record.--If a transfer under subparagraph (C) cannot
be accomplished during the period specified in that
subparagraph, the grower of record with regard to the
acreage base on the date on which the acreage was
converted to nonagricultural use shall--
``(i) be notified; and
``(ii) have 90 days from the date of the
receipt of the notification to transfer the base
to 1 or more farms operated by the grower.
``(E) Pool distribution.--
``(i) In general.--If transfers under
subparagraphs (B) and (C) cannot be accomplished
during the

[[Page 1716]]
122 STAT. 1716

periods specified in those subparagraphs, the
county committee of the Farm Service Agency for
the applicable county shall place the acreage base
in a pool for possible assignment to other farms.
``(ii) Acceptance of requests.--After
providing reasonable notice to farm owners,
operators, and growers of record in the county,
the county committee shall accept requests from
owners, operators, and growers of record in the
county.
``(iii) Assignment.--The county committee
shall assign the acreage base to other farms in
the county that are eligible and capable of
accepting the acreage base, based on a random
drawing from among the requests received under
clause (ii).
``(F) Statewide reallocation.--
``(i) In general.--Any acreage base remaining
unassigned after the transfers and processes
described in subparagraphs (A) through (E) shall
be made available to the State committee of the
Farm Service Agency for allocation among the
remaining county committees in the State
representing counties with farms eligible for
assignment of the base, based on a random drawing.
``(ii) Allocation.--Any county committee
receiving acreage base under this subparagraph
shall allocate the acreage base to eligible farms
using the process described in subparagraph (E).
``(G) Status of reassigned base.--After acreage base
has been reassigned in accordance with this
subparagraph, the acreage base shall--
``(i) remain on the farm; and
``(ii) be subject to the transfer provisions
of paragraph (1).''; and
(2) in subsection (d)--
(A) in paragraph (1)--
(i) by inserting ``affected'' before ``crop-
share owners'' each place it appears; and
(ii) by striking ``, and from the processing
company holding the applicable allocation for such
shares,''; and
(B) in paragraph (2), by striking ``based on'' and
all that follows through the end of subparagraph (B) and
inserting ``based on--
``(A) the number of acres of sugarcane base being
transferred; and
``(B) the pro rata amount of allocation at the
processing company holding the applicable allocation
that equals the contribution of the grower to allocation
of the processing company for the sugarcane acreage base
being transferred.''.

(h) Appeals.--Section 359i of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359ii) is amended--
(1) in subsection (a), by inserting ``or 359g(d)'' after
``359f''; and
(2) by striking subsection (c).

(i) Reallocating Sugar Quota Import Shortfalls.--Section 359k of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is repealed.

[[Page 1717]]
122 STAT. 1717

(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 international
trade agreements that have been approved by Congress.
``(2) Exception.--Paragraph (1) shall not apply to specialty
sugar.

``(b) [NOTE: Deadlines.]  Adjustment.--
``(1) Before april 1.--Before April 1 of each fiscal year,
if there is an emergency shortage of sugar in the United States
market that is caused by a war, flood, hurricane, or other
natural disaster, or other similar event as determined by the
Secretary--
``(A) the Secretary shall take action to increase
the supply of sugar in accordance with sections
359c(b)(2) and 359e(b), including an increase in the
tariff-rate quota for raw cane sugar to accommodate the
reassignment to imports; and
``(B) if there is still a shortage of sugar in the
United States market, and marketing of domestic sugar
has been maximized, and domestic raw cane sugar refining
capacity has been maximized, the Secretary may increase
the tariff-rate quota for refined sugars sufficient to
accommodate the supply increase, if the further increase
will not threaten to result in the forfeiture of sugar
pledged as collateral for a loan under section 156 of
the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7272).
``(2) On or after april 1.--On or after April 1 of each
fiscal year--
``(A) the Secretary may take action to increase the
supply of sugar in accordance with sections 359c(b)(2)
and 359e(b), including an increase in the tariff-rate
quota for raw cane sugar to accommodate the reassignment
to imports; and
``(B) if there is still a shortage of sugar in the
United States market, and marketing of domestic sugar
has been maximized, the Secretary may increase the
tariff-rate quota for raw cane sugar if the further
increase will not threaten to result in the forfeiture
of sugar pledged as collateral for a loan under section
156 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7272).''.

(k) Period of Effectiveness.--Part VII of subtitle B of title III of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) (as amended by
subsection (j)) is amended by adding at the end the following:
``SEC. 359l. [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.

[[Page 1718]]
122 STAT. 1718

``(b) Transition.--The Secretary shall administer flexible marketing
allotments for sugar for the 2007 crop year for sugar on the terms and
conditions provided in this part as in effect on the day before the date
of enactment of this section.''.
SEC. 1404. STORAGE FACILITY LOANS.

Section 1402(c) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7971(c)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3);
(3) by inserting after paragraph (1) the following:
``(2) not include any penalty for prepayment; and''; and
(4) in paragraph (3) (as redesignated by paragraph (2)), by
inserting ``other'' after ``on such''.
SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

Subtitle E of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7281 et seq.) is amended by adding at the end the
following:
``SEC. 167. [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) [NOTE: Time period.]  Support Activities.--During the period
beginning on January 1, 2008, and ending December 31, 2012, the
Secretary shall support the price of cheddar cheese, butter, and nonfat
dry milk through the purchase of such products made from milk produced
in the United States.

(c) Purchase Price.--To carry out subsection (b) during the period
specified in that subsection, the Secretary shall purchase--
(1) cheddar cheese in blocks at not less than $1.13 per
pound;

[[Page 1719]]
122 STAT. 1719

(2) cheddar cheese in barrels at not less than $1.10 per
pound;
(3) butter at not less than $1.05 per pound; and
(4) nonfat dry milk at not less than $0.80 per pound.

(d) Temporary Price Adjustment to Avoid Excess Inventories.--
(1) Adjustments authorized.--The Secretary may adjust the
minimum purchase prices established under subsection (c) only as
permitted under this subsection.
(2) Cheese inventories in excess of 200,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
200,000,000 pounds of cheese, but do not exceed 400,000,000
pounds, the Secretary may reduce the purchase prices under
paragraphs (1) and (2) of subsection (c) during the immediately
following month by not more than 10 cents per pound.
(3) Cheese inventories in excess of 400,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
400,000,000 pounds of cheese, the Secretary may reduce the
purchase prices under paragraphs (1) and (2) of subsection (c)
during the immediately following month by not more than 20 cents
per pound.
(4) Butter inventories in excess of 450,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
450,000,000 pounds of butter, but do not exceed 650,000,000
pounds, the Secretary may reduce the purchase price under
subsection (c)(3) during the immediately following month by not
more than 10 cents per pound.
(5) Butter inventories in excess of 650,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
650,000,000 pounds of butter, the Secretary may reduce the
purchase price under subsection (c)(3) during the immediately
following month by not more than 20 cents per pound.
(6) Nonfat dry milk inventories in excess of 600,000,000
pounds.--If net removals for a period of 12 consecutive months
exceed 600,000,000 pounds of nonfat dry milk, but do not exceed
800,000,000 pounds, the Secretary may reduce the purchase price
under subsection (c)(4) during the immediately following month
by not more than 5 cents per pound.
(7) Nonfat dry milk inventories in excess of 800,000,000
pounds.--If net removals for a period of 12 consecutive months
exceed 800,000,000 pounds of nonfat dry milk, the Secretary may
reduce the purchase price under subsection (c)(4) during the
immediately following month by not more than 10 cents per pound.

(e) Uniform Purchase Price.--The prices that the Secretary pays for
cheese, butter, or nonfat dry milk, respectively, under subsection (b)
shall be uniform for all regions of the United States.
(f) Sales From Inventories.--In the case of each commodity specified
in subsection (c) that is available for unrestricted use in the
inventory of the Commodity Credit Corporation, the Secretary may sell
the commodity at the market prices prevailing for that commodity at the
time of sale, except that the sale price may not be less than 110
percent of the minimum purchase price specified in subsection (c) for
that commodity.

[[Page 1720]]
122 STAT. 1720

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 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) [NOTE: Applicability.]  Covered milk.--The program
shall apply only with respect to the marketing of federally
regulated milk that--
(A) is not classified as Class I milk or otherwise
intended for fluid use; and
(B) is in the current of interstate or foreign
commerce or directly burdens, obstructs, or affects
interstate or foreign commerce in federally regulated
milk.
(2) Relation to class i milk.--To assist milk handlers in
complying with paragraph (1)(A) without having to segregate or
otherwise individually track the source and disposition of milk,
a milk handler may allocate milk receipts from producers,
cooperatives, and other sources that are not subject to a
forward contract to satisfy the obligations of the handler with
regard to Class I milk usage.

(d) Voluntary Program.--
(1) In general.--A milk handler may not require
participation in a forward pricing contract as a condition of
the handler receiving milk from a producer or cooperative
association of producers.
(2) Pricing.--A producer or cooperative association
described in paragraph (1) may continue to have their milk
priced in accordance with the minimum payment provisions of the
Federal milk marketing order.
(3) Complaints.--
(A) In general.--The Secretary shall investigate
complaints made by producers or cooperative associations
of coercion by handlers to enter into forward contracts.
(B) Action.--If the Secretary finds evidence of
coercion, the Secretary shall take appropriate action.

(e) Duration.--
(1) [NOTE: Deadline.]  New contracts.--No forward price
contract may be entered into under the program established under
this section after September 30, 2012.
(2) [NOTE: Termination date.]  Application.--No forward
contract entered into under the program may extend beyond
September 30, 2015.

[[Page 1721]]
122 STAT. 1721

SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM.

(a) Extension.--Section 153(a) of the Food Security Act of 1985 (15
U.S.C. 713a-14(a)) is amended by striking ``2007'' and inserting
``2012''.
(b) Compliance With Trade Agreements.--Section 153 of the Food
Security Act of 1985 (15 U.S.C. 713a-14) is amended--
(1) in subsection (c), by striking paragraph (3) and
inserting the following:
``(3) the maximum volume of dairy product exports allowable
consistent with the obligations of the United States under the
Uruguay Round Agreements approved under section 101 of the
Uruguay Round Agreements Act (19 U.S.C. 3511) is exported under
the program each year (minus the volume sold under section 1163
of this Act during that year), except to the extent that the
export of such a volume under the program would, in the judgment
of the Secretary, exceed the limitations on the value permitted
under subsection (f); and''; and.
(2) in subsection (f), by striking paragraph (1) and
inserting the following:
``(1) Funds and commodities.--Except as provided in
paragraph (2), the Commodity Credit Corporation shall in each
year use money and commodities for the program under this
section in the maximum amount consistent with the obligations of
the United States under the Uruguay Round Agreements approved
under section 101 of the Uruguay Round Agreements Act (19 U.S.C.
3511), minus the amount expended under section 1163 of this Act
during that year.''.
SEC. 1504. REVISION OF FEDERAL MARKETING ORDER AMENDMENT
PROCEDURES.

Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural Marketing Agreement Act of
1937, is amended by striking subsection (17) and inserting the
following:
``(17) Provisions applicable to amendments.--
``(A) Applicability to amendments.--The provisions
of this section and section 8d applicable to orders
shall be applicable to amendments to orders.
``(B) Supplemental rules of practice.--
``(i) [NOTE: Deadline.]  In general.--Not
later than 60 days after the date of enactment of
this subparagraph, the Secretary shall issue,
using informal rulemaking, supplemental rules of
practice to define guidelines and timeframes for
the rulemaking process relating to amendments to
orders.
``(ii) Issues.--At a minimum, the supplemental
rules of practice shall establish--
``(I) proposal submission
requirements;
``(II) pre-hearing information
session specifications;
``(III) written testimony and data
request requirements;
``(IV) public participation
timeframes; and
``(V) electronic document submission
standards.
``(iii) Effective date.--The supplemental
rules of practice shall take effect not later than
120 days after

[[Page 1722]]
122 STAT. 1722

the date of enactment of this subparagraph, as
determined by the Secretary.
``(C) [NOTE: Deadlines.]  Hearing timeframes.--
``(i) In general.--Not more than 30 days after
the receipt of a proposal for an amendment hearing
regarding a milk marketing order, the Secretary
shall--
``(I) [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
``(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--

[[Page 1723]]
122 STAT. 1723

``(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:
(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) [NOTE: Contracts.]  Payments.--The Secretary shall offer to
enter into contracts with producers on a dairy farm located in a
participating State under which the producers receive payments on
eligible production.

(c) Amount.--Payments to a producer under this section shall be
calculated by multiplying (as determined by the Secretary)--
(1) the payment quantity for the producer during the
applicable month established under subsection (e);
(2) the amount equal to--
(A) $16.94 per hundredweight, as adjusted under
subsection (d); less
(B) the Class I milk price per hundredweight in
Boston under the applicable Federal milk marketing
order; by
(3)(A) for the period beginning October 1, 2007, and ending
September 30, 2008, 34 percent;
(B) for the period beginning October 1, 2008, and ending
August 31, 2012, 45 percent; and
(C) for the period beginning September 1, 2012, and
thereafter, 34 percent.

(d) Payment Rate Adjustment for Feed Prices.--
(1) [NOTE: Time period.]  Initial adjustment authority.--
During the period beginning on January 1, 2008, and ending on
August 31, 2012, if the National Average Dairy Feed Ration Cost
for a month during that period is greater than $7.35 per
hundredweight,

[[Page 1724]]
122 STAT. 1724

the amount specified in subsection (c)(2)(A) used to determine
the payment rate for that month shall be increased by 45 percent
of the percentage by which the National Average Dairy Feed
Ration Cost exceeds $7.35 per hundredweight.
(2) Subsequent adjustment authority.--For any month
beginning on or after September 1, 2012, if the National Average
Dairy Feed Ration Cost for the month is greater than $9.50 per
hundredweight, the amount specified in subsection (c)(2)(A) used
to determine the payment rate for that month shall be increased
by 45 percent of the percentage by which the National Average
Dairy Feed Ration Cost exceeds $9.50 per hundredweight.
(3) National average dairy feed ration cost.--For each
month, the Secretary shall calculate a National Average Dairy
Feed Ration Cost per hundredweight using the same procedures
(adjusted to a hundredweight basis) used to calculate the feed
components of the estimated price of 16% 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) [NOTE: Time periods.]  In general.--The
payment quantity for all producers on a single dairy
operation for which the producers receive payments under
subsection (b) shall not exceed--
(i) for the period beginning October 1, 2007,
and ending September 30, 2008, 2,400,000 pounds;
(ii) for the period beginning October 1, 2008,
and ending August 31, 2012, 2,985,000 pounds for
each fiscal year; and
(iii) [NOTE: Effective date.]  effective
beginning September 1, 2012, 2,400,000 pounds per
fiscal year.
(B) [NOTE: Applicability.]  Standards.--For
purposes of determining whether producers are producers
on separate dairy operations or a single dairy
operation, the Secretary shall apply the same standards
as were applied in implementing the dairy program under
section 805 of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies
Appropriations Act, 2001 (as enacted into law by Public
Law 106-387; 114 Stat. 1549A-50).
(3) Reconstitution.--The Secretary shall ensure that a
producer does not reconstitute a dairy operation for the sole
purpose of receiving additional payments under this section.

(f) [NOTE: Deadline.]  Payments.--A payment under a contract under
this section shall be made on a monthly basis not later than 60 days
after the last day of the month for which the payment is made.

(g) [NOTE: Contracts. Time period.]  Signup.--The Secretary shall
offer to enter into contracts under this section during the period
beginning on the date that is 90 days after the date of enactment of
this Act and ending on September 30, 2012.

(h) Duration of Contract.--
(1) In general.--Except as provided in paragraph (2), any
contract entered into by producers on a dairy farm under this

[[Page 1725]]
122 STAT. 1725

section shall cover eligible production marketed by the
producers on the dairy farm during the period starting with the
first day of month the producers on the dairy farm enter into
the contract and ending on September 30, 2012.
(2) Violations.--If a producer violates the contract, the
Secretary may--
(A) terminate the contract and allow the producer to
retain any payments received under the contract; or
(B) allow the contract to remain in effect and
require the producer to repay a portion of the payments
received under the contract based on the severity of the
violation.
SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM.

(a) Extension of Dairy Promotion and Research Authority.--Section
113(e)(2) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4504(e)(2)) is amended by striking ``2007'' and inserting ``2012''.
(b) Definition of United States for Promotion Program.--Section 111
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is
amended--
(1) by striking subsection (l) and inserting the following:

``(l) the term `United States', when used in a geographical sense,
means all of the States, the District of Columbia, and the Commonwealth
of Puerto Rico;''; and
(2) in subsection (m), by striking ``(as defined in
subsection (l))''.

(c) Definition of United States for Research Program.--Section 130
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4531)) is
amended by striking paragraph (12) and inserting the following:
``(12) the term `United States', when used in a geographical
sense, means all of the States, the District of Columbia, and
the Commonwealth of Puerto Rico.''.

(d) Assessment Rate for Imported Dairy Products.--Section 113(g) of
the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is
amended by striking paragraph (3) and inserting the following:
``(3) Rate.--
``(A) In general.--The rate of assessment for milk
produced in the United States prescribed by the order
shall be 15 cents per hundredweight of milk for
commercial use or the equivalent thereof, as determined
by the Secretary.
``(B) Imported dairy products.--The rate of
assessment for imported dairy products prescribed by the
order shall be 7.5 cents per hundredweight of milk for
commercial use or the equivalent thereof, as determined
by the Secretary.''.

(e) Time and Method of Importer Payments.--Section 113(g)(6) of the
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)(6)) is
amended--
(1) by striking subparagraph (B); and
(2) by redesignating subparagraph (C) as subparagraph (B).

(f) Refund of Assessments on Certain Imported Dairy Products.--
Section 113(g) of the Dairy Production Stabilization

[[Page 1726]]
122 STAT. 1726

Act of 1983 (7 U.S.C. 4504(g)) is amended by adding at the end the
following:
``(7) Refund of assessments on certain imported products.--
``(A) In general.--An importer shall be entitled to
a refund of any assessment paid under this subsection on
imported dairy products imported under a contract
entered into prior to the date of enactment of the Food,
Conservation, and Energy Act of 2008.
``(B) Expiration.--Refunds under subparagraph (A)
shall expire 1 year after the date of enactment of the
Food, Conservation, and Energy Act of 2008.''.
SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING
PROCEDURES FOR NONFAT DRY MILK.

Not later than 90 days after the date of enactment of this Act, the
Secretary shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report regarding Department of Agriculture
reporting procedures for nonfat dry milk and the impact of the
procedures on Federal milk marketing order minimum prices during the
period beginning on July 1, 2006, and ending on the date of enactment of
this Act.
SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

(a) Establishment.--Subject to the availability of appropriations to
carry out this section, the Secretary shall establish a commission to be
known as the ``Federal Milk Marketing Order Review Commission''
(referred to in this section as the ``commission''), which shall conduct
a comprehensive review and evaluation of--
(1) the Federal milk marketing order system in effect on the
date of establishment of the commission; and
(2) non-Federal milk marketing order systems.

(b) Elements of Review and Evaluation.--As part of the review and
evaluation under subsection (a), the commission shall consider
legislative and regulatory options for--
(1) ensuring that the competitiveness of dairy products with
other competing products in the marketplace is preserved and
enhanced;
(2) enhancing the competitiveness of American dairy
producers in world markets;
(3) ensuring the competitiveness and transparency in dairy
pricing;
(4) streamlining and expediting the process by which
amendments to Federal milk market orders are adopted;
(5) simplifying the Federal milk marketing order system;
(6) evaluating whether the Federal milk marketing order
system serves the interests of dairy producers, consumers, and
dairy processors; and
(7) evaluating the nutritional composition of milk,
including the potential benefits and costs of adjusting the milk
content standards.

(c) Membership.--
(1) Composition.--The commission shall consist of 14
members.
(2) Members.--As soon as practicable after the date on which
funds are first made available to carry out this section,

[[Page 1727]]
122 STAT. 1727

the Secretary shall appoint members to the commission according
to the following requirements:
(A) At least 1 member shall represent a national
consumer organization.
(B) At least 4 members shall represent land-grant
universities or NLGCA Institutions (as defined in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103)) with accredited dairy economic programs, with at
least 2 of those members being experts in the field of
economics.
(C) At least 1 member shall represent the food and
beverage retail sector.
(D) 4 dairy producers and 4 dairy processors,
appointed so as to balance geographical distribution of
milk production and dairy processing, reflect all
segments of dairy processing, and represent all regions
of the United States equitably, including States that
operate outside of a Federal milk marketing order.
(3) Chair.--The commission shall elect 1 of the appointed
members of the commission to serve as chairperson for the
duration of the proceedings of the commission.
(4) Vacancy.--Any vacancy occurring before the termination
of the commission shall be filled in the same manner as the
original appointment.
(5) Compensation.--Members of the commission shall serve
without compensation, but shall be reimbursed by the Secretary
from existing budget authority for necessary and reasonable
expenses incurred in the performance of the duties of the
commission.

(d) Report.--
(1) In general.--Not later than 2 years after the date of
the first meeting of the commission, the commission shall submit
to Congress and the Secretary a report describing the results of
the review and evaluation conducted under this section,
including such recommendations regarding the legislative and
regulatory options considered under subsection (b) as the
commission considers to be appropriate.
(2) Opinions.--The report findings shall reflect, to the
maximum extent practicable, a consensus opinion of the
commission members, but the report may include majority and
minority findings regarding those matters for which consensus
was not reached.

(e) Advisory Nature.--The commission is wholly advisory in nature,
and the recommendations of the commission are nonbinding.
(f) No Effect on Existing Programs.--The Secretary shall not allow
the existence of the commission to impede, delay, or otherwise affect
any decisionmaking process of the Department of Agriculture, including
any rulemaking procedures planned, proposed, or near completion.
(g) Administrative Assistance.--The Secretary shall provide
administrative support to the commission, and expend to carry out this
section such funds as necessary from budget authority available to the
Secretary.
(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

[[Page 1728]]
122 STAT. 1728

(i) Termination.--The commission shall terminate effective on the
date of the submission of the report under subsection (d).
SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES.

(a) Electronic Reporting.--Section 273 of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1637b) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:

``(d) Electronic Reporting.--
``(1) In general.--Subject to the availability of funds
under paragraph (3), the Secretary shall establish an electronic
reporting system to carry out this section.
``(2) Frequency of reports.--After the establishment of the
electronic reporting system in accordance with paragraph (1),
the Secretary shall increase the frequency of the reports
required under this section.
``(3) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
subsection.''.

(b) Quarterly Audits.--Section 273(c) of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1637b(c)) is amended by striking paragraph (3) and
inserting the following:
``(3) Verification.--
``(A) In general.--The Secretary shall take such
actions as the Secretary considers necessary to verify
the accuracy of the information submitted or reported
under this subtitle.
``(B) Quarterly audits.--The Secretary shall
quarterly conduct an audit of information submitted or
reported under this subtitle and compare such
information with other related dairy market
statistics.''.

Subtitle F--Administration

SEC. 1601. [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) [NOTE: Deadline.]  In general.--Except as otherwise
provided in this subsection, not later than 90 days after the
date of enactment of this Act, the Secretary and the Commodity
Credit Corporation, as appropriate, shall promulgate such
regulations as are necessary to implement this title and the
amendments made by this title.
(2) Procedure.--The promulgation of the regulations and
administration of this title and the amendments made by this
title shall be made without regard to--
(A) chapter 35 of title 44, United States Code
(commonly known as the ``Paperwork Reduction Act'');
(B) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804),

[[Page 1729]]
122 STAT. 1729

relating to notices of proposed rulemaking and public
participation in rulemaking; and
(C) the notice and comment provisions of section 553
of title 5, United States Code.
(3) Congressional review of agency rulemaking.--In carrying
out this subsection, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(4) Interim regulations.--Notwithstanding paragraphs (1) and
(2), the Secretary shall implement the amendments made by
sections 1603 and 1604 for the 2009 crop, fiscal, or program
year, as appropriate, through the promulgation of an interim
rule.

(d) Adjustment Authority Related to Trade Agreements Compliance.--
(1) Required determination; adjustment.--If the Secretary
determines that expenditures under this title that are subject
to the total allowable domestic support levels under the Uruguay
Round Agreements (as defined in section 2 of the Uruguay Round
Agreements Act (19 U.S.C. 3501)) will exceed such allowable
levels for any applicable reporting period, the Secretary shall,
to the maximum extent practicable, make adjustments in the
amount of such expenditures during that period to ensure that
such expenditures do not exceed such allowable levels.
(2) [NOTE: Reports.]  Congressional notification.--Before
making any adjustment under paragraph (1), the Secretary shall
submit to the Committee on Agriculture of the House of
Representatives or the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report describing the determination
made under that paragraph and the extent of the adjustment to be
made.

(e) Treatment of Advance Payment Option.--Section 1601(d) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7991(d)) is
amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) the advance payment of direct payments and counter-
cyclical payments under title I of the Food, Conservation, and
Energy Act of 2008.''.
SEC. 1602. [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

[[Page 1730]]
122 STAT. 1730

through 2012 crops of covered commodities, peanuts, and sugar and shall
not be applicable to milk during the period beginning on the date of
enactment of this Act and through December 31, 2012:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).

(c) Suspension of Certain Quota Provisions.--The joint resolution
entitled ``A joint resolution relating to corn and wheat marketing
quotas under the Agricultural Adjustment Act of 1938, as amended'',
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable
to the crops of wheat planted for harvest in the calendar years 2008
through 2012.
SEC. 1603. PAYMENT LIMITATIONS.

(a) Extension of Limitations.--Sections 1001 and 1001C(a) of the
Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are amended by
striking ``Farm Security and Rural Investment Act of 2002'' each place
it appears and inserting ``Food, Conservation, and Energy Act of 2008''.
(b) Revision of Limitations.--
(1) Definitions.--Section 1001(a) of the Food Security Act
of 1985 (7 U.S.C. 1308(a)) is amended--
(A) in the matter preceding paragraph (1), by
inserting ``through section 1001F''after ``section'';
(B) by striking paragraph (2) and redesignating
paragraph (3) as paragraph (5); and
(C) by inserting after paragraph (1) the following:
``(2) Family member.--The term `family member' means a
person to whom a member in the farming operation is related as
lineal ancestor, lineal descendant, sibling, spouse, or
otherwise by marriage.
``(3) Legal entity.--The term `legal entity' means an entity
that is created under Federal or State law and that--
``(A) owns land or an agricultural commodity; or
``(B) produces an agricultural commodity.
``(4) Person.--The term `person' means a natural person, and
does not include a legal entity.''.
(2) Limitation on direct payments and counter-cyclical
payments.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended by striking subsections (b), (c), and
(d) and inserting the following:

``(b) Limitation on Direct Payments, Counter-Cyclical Payments, and
ACRE Payments for Covered Commodities (other Than Peanuts).--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or legal

[[Page 1731]]
122 STAT. 1731

entity (except a joint venture or a general partnership) for any
crop year under subtitle A of title I of the Food, Conservation,
and Energy Act of 2008 for 1 or more covered commodities (except
for peanuts) may not exceed--
``(A) in the case of a person or legal entity that
does not participate in the average crop revenue
election program under section 1105 of that Act,
$40,000; or
``(B) in the case of a person or legal entity that
participates in the average crop revenue election
program under section 1105 of that Act, an amount equal
to--
``(i) the payment limit specified in
subparagraph (A); less
``(ii) the amount of the reduction in direct
payments under section 1105(a)(1) of that Act.
``(2) Counter-cyclical payments.--In the case of a person or
legal entity (except a joint venture or a general partnership)
that does not participate in the average crop revenue election
program under section 1105 of the Food, Conservation, and Energy
Act of 2008, the total amount of counter-cyclical payments
received, directly or indirectly, by the person or legal entity
for any crop year under subtitle A of title I of that Act for 1
or more covered commodities (except for peanuts) may not exceed
$65,000.
``(3) ACRE and counter-cyclical payments.--In the case of a
person or legal entity (except a joint venture or a general
partnership) that participates in the average crop revenue
election program under section 1105 of the Food, Conservation,
and Energy Act of 2008, the total amount of average crop revenue
election payments and counter-cyclical payments received,
directly or indirectly, by the person or legal entity for any
crop year for 1 or more covered commodities (except for peanuts)
may not exceed the sum of--
``(A) $65,000; and
``(B) the amount by which the direct payment
limitation is reduced under paragraph (1)(B).

``(c) Limitation on Direct Payments, Counter-Cyclical Payments, and
ACRE Payments for Peanuts.--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or legal entity
(except a joint venture or a general partnership) for any crop
year under subtitle C of title I of the Food, Conservation, and
Energy Act of 2008 for peanuts may not exceed--
``(A) in the case of a person or legal entity that
does not participate in the average crop revenue
election program under section 1105 of that Act,
$40,000; or
``(B) in the case of a person or legal entity that
participates in the average crop revenue election
program under section 1105 of that Act, an amount equal
to--
``(i) the payment limit specified in
subparagraph (A); less
``(ii) the amount of the reduction in direct
payments under section 1105(a)(1) of that Act.
``(2) Counter-cyclical payments.--In the case of a person or
legal entity (except a joint venture or a general partnership)
that does not participate in the average crop revenue election
program under section 1105 of the Food, Conservation, and

[[Page 1732]]
122 STAT. 1732

Energy Act of 2008, the total amount of counter-cyclical
payments received, directly or indirectly, by the person or
legal entity for any crop year under subtitle C of title I of
that Act for peanuts may not exceed $65,000.
``(3) ACRE and counter-cyclical payments.--In the case of a
person or legal entity (except a joint venture or a general
partnership) that participates in the average crop revenue
election program under section 1105 of the Food, Conservation,
and Energy Act of 2008, the total amount of average crop revenue
election payments received, directly or indirectly, by the
person or legal entity for any crop year for peanuts may not
exceed the sum of--
``(A) $65,000; and
``(B) the amount by which the direct payment
limitation is reduced under paragraph (1)(B).

``(d) Limitation on Applicability.--Nothing in this section
authorizes any limitation on any benefit associated with the marketing
assistance loan program or the loan deficiency payment program under
title I of the Food, Conservation, and Energy Act of 2008.''.
(3) Direct attribution.--Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended--
(A) by striking subsections (e) and (f) and
redesignating subsection (g) as subsection (h); and
(B) by inserting after subsection (d) the following:

``(e) Attribution of Payments.--
``(1) In general.--In implementing subsections (b) and (c)
and a program described in paragraphs (1)(C) and (2)(B) of
section 1001D(b), the Secretary shall issue such regulations as
are necessary to ensure that the total amount of payments are
attributed to a person by taking into account the direct and
indirect ownership interests of the person in a legal entity
that is eligible to receive the payments.
``(2) Payments to a person.--Each payment made directly to a
person shall be combined with the pro rata interest of the
person in payments received by a legal entity in which the
person has a direct or indirect ownership interest unless the
payments of the legal entity have been reduced by the pro rata
share of the person.
``(3) Payments to a legal entity.--
``(A) [NOTE: Regulations.]  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

[[Page 1733]]
122 STAT. 1733

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 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) [NOTE: Applicability.]  Marketing cooperatives.--
Subsections (b) and (c) shall not apply to a cooperative
association of producers with respect to commodities produced by
the members of the association that are marketed by the
association on behalf of the members of the association but
shall apply to the producers as persons.

[[Page 1734]]
122 STAT. 1734

``(3) Trusts and estates.--
``(A) In general.--With respect to irrevocable
trusts and estates, the Secretary shall administer this
section through section 1001F in such manner as the
Secretary determines will ensure the fair and equitable
treatment of the beneficiaries of the trusts and
estates.
``(B) Irrevocable trust.--
``(i) In general.--In order for a trust to be
considered an irrevocable trust, the terms of the
trust agreement shall not--
``(I) allow for modification or
termination of the trust by the grantor;
``(II) allow for the grantor to have
any future, contingent, or remainder
interest in the corpus of the trust; or
``(III) except as provided in clause
(ii), provide for the transfer of the
corpus of the trust to the remainder
beneficiary in less than 20 years
beginning on the date the trust is
established.
``(ii) Exception.--Clause (i)(III) shall not
apply in a case in which the transfer is--
``(I) contingent on the remainder
beneficiary achieving at least the age
of majority; or
``(II) contingent on the death of
the grantor or income beneficiary.
``(C) Revocable trust.--For the purposes of this
section through section 1001F, a revocable trust shall
be considered to be the same person as the grantor of
the trust.
``(4) Cash rent tenants.--
``(A) Definition.--In this paragraph, the term `cash
rent tenant' means a person or legal entity that rents
land--
``(i) for cash; or
``(ii) for a crop share guaranteed as to the
amount of the commodity to be paid in rent.
``(B) Restriction.--A cash rent tenant who makes a
significant contribution of active personal management,
but not of personal labor, with respect to a farming
operation shall be eligible to receive a payment
described in subsection (b) or (c) only if the tenant
makes a significant contribution of equipment to the
farming operation.
``(5) Federal agencies.--
``(A) In general.--Notwithstanding subsection (d), a
Federal agency shall not be eligible to receive any
payment, benefit, or loan under title I of the Food,
Conservation, and Energy Act of 2008 or title XII of
this Act.
``(B) Land rental.--A lessee of land owned by a
Federal agency may receive a payment described in
subsection (b), (c), or (d) if the lessee otherwise
meets all applicable criteria.
``(6) State and local governments.--
``(A) In general.--Notwithstanding subsection (d),
except as provided in subsection (g), a State or local
government, or political subdivision or agency of the
government, shall not be eligible to receive any
payment, benefit, or

[[Page 1735]]
122 STAT. 1735

loan under title I of the Food, Conservation, and Energy
Act of 2008 or title XII of this Act.
``(B) Tenants.--A lessee of land owned by a State or
local government, or political subdivision or agency of
the government, may receive payments described in
subsections (b), (c), and (d) if the lessee otherwise
meets all applicable criteria.
``(7) Changes in farming operations.--
``(A) In general.--In the administration of this
section through section 1001F, the Secretary may not
approve any change in a farming operation that otherwise
will increase the number of persons to which the
limitations under this section are applied unless the
Secretary determines that the change is bona fide and
substantive.
``(B) Family members.--The addition of a family
member to a farming operation under the criteria set out
in section 1001A shall be considered a bona fide and
substantive change in the farming operation.
``(8) Death of owner.--
``(A) In general.--If any ownership interest in land
or a commodity is transferred as the result of the death
of a program participant, the new owner of the land or
commodity may, if the person is otherwise eligible to
participate in the applicable program, succeed to the
contract of the prior owner and receive payments subject
to this section without regard to the amount of payments
received by the new owner.
``(B) Limitations on prior owner.--Payments made
under this paragraph shall not exceed the amount to
which the previous owner was entitled to receive under
the terms of the contract at the time of the death of
the prior owner.

``(g) Public Schools.--
``(1) In general.--Notwithstanding subsection (f)(6)(A), a
State or local government, or political subdivision or agency of
the government, shall be eligible, subject to the limitation in
paragraph (2), to receive a payment described in subsection (b)
or (c) for land owned by the State or local government, or
political subdivision or agency of the government, that is used
to maintain a public school.
``(2) Limitation.--
``(A) In general.--For each State, the total amount
of payments described in subsections (b) and (c) that
are received collectively by the State and local
government and all political subdivisions or agencies of
those governments shall not exceed $500,000.
``(B) Exception.--The limitation in subparagraph (A)
shall not apply to States with a population of less than
1,500,000.''.

(c) Repeal of 3-Entity Rule.--Section 1001A of the Food Security Act
of 1985 (7 U.S.C. 1308-1) is amended--
(1) in the section heading, by striking ``prevention of
creation of entities to qualify as separate persons'' and
inserting ``notification of interests''; and
(2) by striking subsection (a) and inserting the following:

``(a) Notification of Interests.--To facilitate administration of
section 1001 and this section, each person or legal entity receiving
payments described in subsections (b) and (c) of section 1001 as

[[Page 1736]]
122 STAT. 1736

a separate person or legal entity shall separately provide to the
Secretary, at such times and in such manner as prescribed by the
Secretary--
``(1) the name and social security number of each person, or
the name and taxpayer identification number of each legal
entity, that holds or acquires an ownership interest in the
separate person or legal entity; and
``(2) the name and taxpayer identification number of each
legal entity in which the person or legal entity holds an
ownership interest.''.

(d) Amendment for Consistency.--Section 1001A of the Food Security
Act of 1985 (7 U.S.C. 1308-1) is amended by striking subsection (b) and
inserting the following:
``(b) Actively Engaged.--
``(1) In general.--To be eligible to receive a payment
described in subsection (b) or (c) of section 1001, a person or
legal entity shall be actively engaged in farming with respect
to a farming operation as provided in this subsection or
subsection (c).
``(2) Classes actively engaged.--Except as provided in
subsections (c) and (d)--
``(A) a person (including a person participating in
a farming operation as a partner in a general
partnership, a participant in a joint venture, a grantor
of a revocable trust, or a participant in a similar
entity, as determined by the Secretary) shall be
considered to be actively engaged in farming with
respect to a farming operation if--
``(i) the person makes a significant
contribution (based on the total value of the
farming operation) to the farming operation of--
``(I) capital, equipment, or land;
and
``(II) personal labor or active
personal management;
``(ii) the person's share of the profits or
losses from the farming operation is commensurate
with the contributions of the person to the
farming operation; and
``(iii) the contributions of the person are at
risk;
``(B) a legal entity that is a corporation, joint
stock company, association, limited partnership,
charitable organization, or other similar entity
determined by the Secretary (including any such legal
entity participating in the farming operation as a
partner in a general partnership, a participant in a
joint venture, a grantor of a revocable trust, or as a
participant in a similar legal entity as determined by
the Secretary) shall be considered as actively engaged
in farming with respect to a farming operation if--
``(i) the legal entity separately makes a
significant contribution (based on the total value
of the farming operation) of capital, equipment,
or land;
``(ii) the stockholders or members
collectively make a significant contribution of
personal labor or active personal management to
the operation; and
``(iii) the standards provided in clauses (ii)
and (iii) of subparagraph (A), as applied to the
legal entity, are met by the legal entity;

[[Page 1737]]
122 STAT. 1737

``(C) if a legal entity that is a general
partnership, joint venture, or similar entity, as
determined by the Secretary, separately makes a
significant contribution (based on the total value of
the farming operation involved) of capital, equipment,
or land, and the standards provided in clauses (ii) and
(iii) of subparagraph (A), as applied to the legal
entity, are met by the legal entity, the partners or
members making a significant contribution of personal
labor or active personal management shall be considered
to be actively engaged in farming with respect to the
farming operation involved; and
``(D) in making determinations under this subsection
regarding equipment and personal labor, the Secretary
shall take into consideration the equipment and personal
labor normally and customarily provided by farm
operators in the area involved to produce program crops.

``(c) Special Classes Actively Engaged.--
``(1) Landowner.--A person or legal entity that is a
landowner contributing the owned land to a farming operation
shall be considered to be actively engaged in farming with
respect to the farming operation if--
``(A) the landowner receives rent or income for the
use of the land based on the production on the land or
the operating results of the operation; and
``(B) the person or legal entity meets the standards
provided in clauses (ii) and (iii) of subsection
(b)(2)(A).
``(2) Adult family member.--If a majority of the
participants in a farming operation are family members, an adult
family member shall be considered to be actively engaged in
farming with respect to the farming operation if the person--
``(A) makes a significant contribution, based on the
total value of the farming operation, of active personal
management or personal labor; and
``(B) with respect to such contribution, meets the
standards provided in clauses (ii) and (iii) of
subsection (b)(2)(A).
``(3) Sharecropper.--A sharecropper who makes a significant
contribution of personal labor to a farming operation shall be
considered to be actively engaged in farming with respect to the
farming operation if the contribution meets the standards
provided in clauses (ii) and (iii) of subsection (b)(2)(A).
``(4) Growers of hybrid seed.--In determining whether a
person or legal entity growing hybrid seed under contract shall
be considered to be actively engaged in farming, the Secretary
shall not take into consideration the existence of a hybrid seed
contract.
``(5) Custom farming services.--
``(A) In general.--A person or legal entity
receiving custom farming services shall be considered
separately eligible for payment limitation purposes if
the person or legal entity is actively engaged in
farming based on subsection (b)(2) or paragraphs (1)
through (4) of this subsection.
``(B) Prohibition.--No other rules with respect to
custom farming shall apply.
``(6) Spouse.--If 1 spouse (or estate of a deceased spouse)
is determined to be actively engaged, the other spouse shall

[[Page 1738]]
122 STAT. 1738

be determined to have met the requirements of subsection
(b)(2)(A)(i)(II).

``(d) Classes Not Actively Engaged.--
``(1) Cash rent landlord.--A landlord contributing land to a
farming operation shall not be considered to be actively engaged
in farming with respect to the farming operation if the landlord
receives cash rent, or a crop share guaranteed as to the amount
of the commodity to be paid in rent, for the use of the land.
``(2) Other persons and legal entities.--Any other person or
legal entity that the Secretary determines does not meet the
standards described in subsections (b)(2) and (c) shall not be
considered to be actively engaged in farming with respect to a
farming operation.''.

(e) Denial of Program Benefits.--Section 1001B of the Food Security
Act of 1985 (7 U.S.C. 1308-2) is amended to read as follows:
``SEC. 1001B. DENIAL OF PROGRAM BENEFITS.

``(a) 2-Year Denial of Program Benefits.--A person or legal entity
shall be ineligible to receive payments specified in subsections (b) and
(c) of section 1001 for the crop year, and the succeeding crop year, in
which the Secretary determines that the person or legal entity--
``(1) failed to comply with section 1001A(b) and adopted or
participated in adopting a scheme or device to evade the
application of section 1001, 1001A, or 1001C; or
``(2) intentionally concealed the interest of the person or
legal entity in any farm or legal entity engaged in farming.

``(b) [NOTE: Fraud. Regulations.]  Extended Ineligibility.--If the
Secretary determines that a person or legal entity, for the benefit of
the person or legal entity or the benefit of any other person or legal
entity, has knowingly engaged in, or aided in the creation of a
fraudulent document, failed to disclose material information relevant to
the administration of sections 1001 through 1001F, or committed other
equally serious actions (as identified in regulations issued by the
Secretary), the Secretary may for a period not to exceed 5 crop years
deny the issuance of payments to the person or legal entity.

``(c) Pro Rata Denial.--
``(1) In general.--Payments otherwise owed to a person or
legal entity described in subsections (a) or (b) shall be denied
in a pro rata manner based on the ownership interest of the
person or legal entity in a farm.
``(2) Cash rent tenant.--Payments otherwise payable to a
person or legal entity shall be denied in a pro rata manner if
the person or legal entity is a cash rent tenant on a farm owned
or under the control of a person or legal entity with respect to
which a determination has been made under subsection (a) or (b).

``(d) Joint and Several Liability.--Any legal entity (including
partnerships and joint ventures) and any member of any legal entity
determined to have knowingly participated in a scheme or device to
evade, or that has the purpose of evading, sections 1001, 1001A, or
1001C shall be jointly and severally liable for any amounts that are
payable to the Secretary as the result of the scheme or device
(including amounts necessary to recover those amounts).

[[Page 1739]]
122 STAT. 1739

``(e) Release.--The Secretary may partially or fully release from
liability any person or legal entity who cooperates with the Secretary
in enforcing sections 1001, 1001A, and 1001C, and this section.''.
(f) Conforming Amendment to Apply Direct Attribution to NAP.--
(1) In general.--Section 196(i) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is
amended--
(A) by striking paragraphs (1) and (2) and inserting
the following:
``(1) Definitions.--In this subsection, the terms `legal
entity' and `person' have the meanings given those terms in
section 1001(a) of the Food Security Act of 1985 (7 U.S.C.
1308(a)).
``(2) Payment limitation.--The total amount of payments
received, directly or indirectly, by a person or legal entity
(excluding a joint venture or general partnership) for any crop
year may not exceed $100,000.'';
(B) by striking paragraph (4) and inserting the
following:
``(4) Adjusted gross income limitation.--A person or legal
entity that has an average adjusted gross income in excess of
the average adjusted gross income limitation applicable under
section 1001D(b)(1)(A) of the Food Security Act of 1985 (7
U.S.C. 1308-3a(b)(1)(A)), or a successor provision, shall not be
eligible to receive noninsured crop disaster assistance under
this section.''; and
(C) in paragraph (5)--
(i) by striking ``necessary to ensure'' and
inserting ``necessary--
``(A) to ensure''; and
(ii) by striking ``this subsection.'' and
inserting the following: ``this subsection; and
``(B) to ensure that payments under this section are
attributed to a person or legal entity (excluding a
joint venture or general partnership) in accordance with
the terms and conditions of sections 1001 through 1001D
of the Food Security Act of 1985 (7 U.S.C. 1308 et
seq.), as determined by the Secretary.''.
(2) [NOTE: 7 USC 7333 note.]  Transition.--Section 196(i)
of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333(i)), as in effect on September 30, 2007, shall apply
with respect to the 2007 and 2008 crops of any eligible crop.

(g) Conforming Amendments.--
(1) Section 1009(e) of the Food Security Act of 1985 (7
U.S.C. 1308a(e)) is amended in the second sentence by striking
``of $50,000''.
(2) Section 609(b)(1) of the Emergency Livestock Feed
Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by
inserting ``(before the amendment made by section 1703(a) of the
Food, Conservation, and Energy Act of 2008)'' after ``1985''.
(3) Section 524(b)(3) of the Federal Crop Insurance Act (7
U.S.C. 1524(b)(3)) is amended by inserting ``(before the
amendment made by section 1703(a) of the Food, Conservation, and
Energy Act of 2008)'' after ``1308(5)))''.

[[Page 1740]]
122 STAT. 1740

(4) Section 10204(c)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by
inserting ``(before the amendment made by section 1703(a) of the
Food, Conservation, and Energy Act of 2008)'' after ``1308)''.
(5) Section 1271(c)(3)(A) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A))
is amended by inserting ``(before the amendment made by section
1703(a) of the Food, Conservation, and Energy Act of 2008)''
after ``1308)''.
(6) Section 291(2) of the Trade Act of 1974 (19 U.S.C.
2401(2)) is amended by inserting ``(before the amendment made by
section 1703(a) of the Food, Conservation, and Energy Act of
2008)'' before the period at the end.

(h) [NOTE: Applicability. 7 USC 1308 note.]  Transition.--Section
1001, 1001A, and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308,
1308-1, 1308-2), as in effect on September 30, 2007, shall continue to
apply with respect to the 2007 and 2008 crops of any covered commodity
or peanuts.
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

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

``(a) Definitions.--
``(1) In general.--In this section:
``(A) Average adjusted gross income.--The term
`average adjusted gross income', with respect to a
person or legal entity, means the average of the
adjusted gross income or comparable measure of the
person or legal entity over the 3 taxable years
preceding the most immediately preceding complete
taxable year, as determined by the Secretary.
``(B) Average adjusted gross farm income.--The term
`average adjusted gross farm income', with respect to a
person or legal entity, means the average of the portion
of adjusted gross income of the person or legal entity
that is attributable to activities related to farming,
ranching, or forestry for the 3 taxable years described
in subparagraph (A), as determined by the Secretary in
accordance with subsection (c).
``(C) Average adjusted gross nonfarm income.--The
term `average adjusted gross nonfarm income', with
respect to a person or legal entity, means the
difference between--
``(i) the average adjusted gross income of the
person or legal entity; and
``(ii) the average adjusted gross farm income
of the person or legal entity.
``(2) Special rules for certain persons and legal
entities.--In the case of a legal entity that is not required to
file a Federal income tax return or a person or legal entity
that did not have taxable income in 1 or more of the taxable
years used to determine the average under subparagraph (A) or
(B) of paragraph (1), the Secretary shall provide, by
regulation, a method for determining the average adjusted gross
income, the average adjusted gross farm income, and the average
adjusted gross nonfarm income of the person or legal entity for
purposes of this section.

[[Page 1741]]
122 STAT. 1741

``(3) Allocation of income.--On the request of any person
filing a joint tax return, the Secretary shall provide for the
allocation of average adjusted gross income, average adjusted
gross farm income, and average adjusted gross nonfarm income
among the persons filing the return if--
``(A) the person provides a certified statement by a
certified public accountant or attorney that specifies
the method by which the average adjusted gross income,
average adjusted gross farm income, and average adjusted
gross nonfarm income would have been declared and
reported had the persons filed 2 separate returns; and
``(B) the Secretary determines that the method
described in the statement is consistent with the
information supporting the filed joint tax return.

``(b) Limitations.--
``(1) Commodity programs.--
``(A) Nonfarm limitation.--Notwithstanding any other
provision of law, a person or legal entity shall not be
eligible to receive any benefit described in
subparagraph (C) during a crop, fiscal, or program year,
as appropriate, if the average adjusted gross nonfarm
income of the person or legal entity exceeds $500,000.
``(B) Farm limitation.--Notwithstanding any other
provision of law, a person or legal entity shall not be
eligible to receive a direct payment under subtitle A or
C of title I of the Food, Conservation, and Energy Act
of 2008 during a crop year, if the average adjusted
gross farm income of the person or legal entity exceeds
$750,000.
``(C) [NOTE: Applicability.]  Covered benefits.--
Subparagraph (A) applies with respect to the following:
``(i) A direct payment or counter-cyclical
payment under subtitle A or C of title I of the
Food, Conservation, and Energy Act of 2008 or an
average crop revenue election payment under
subtitle A of title I of that Act.
``(ii) A marketing loan gain or loan
deficiency payment under subtitle B or C of title
I of the Food, Conservation, and Energy Act of
2008.
``(iii) A payment or benefit under section 196
of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7333).
``(iv) A payment or benefit under section 1506
of the Food, Conservation, and Energy Act of 2008.
``(v) A payment or benefit under title IX of
the Trade Act of 1974 or subtitle B of the Federal
Crop Insurance Act.
``(2) Conservation programs.--
``(A) Limits.--
``(i) In general.--Notwithstanding any other
provision of law, except as provided in clause
(ii), a person or legal entity shall not be
eligible to receive any benefit described in
subparagraph (B) during a crop, fiscal, or program
year, as appropriate, if the average adjusted
gross nonfarm income of the person or legal entity
exceeds $1,000,000, unless not less than 66.66
percent of the average adjusted gross income

[[Page 1742]]
122 STAT. 1742

of the person or legal entity is average adjusted
gross farm income.
``(ii) [NOTE: Waiver authority.]
Exception.--The Secretary may waive the limitation
established under clause (i) on a case-by-case
basis if the Secretary determines that
environmentally sensitive land of special
significance would be protected.
``(B) [NOTE: Applicability.]  Covered benefits.--
Subparagraph (A) applies with respect to the following:
``(i) A payment or benefit under title XII of
this Act.
``(ii) A payment or benefit under title II of
the Farm Security and Rural Investment Act of 2002
(Public Law 107-171; 116 Stat. 223) or title II of
the Food, Conservation, and Energy Act of 2008.
``(iii) A payment or benefit under section
524(b) of the Federal Crop Insurance Act (7 U.S.C.
1524(b)).

``(c) Income Determination.--
``(1) In general.--In determining the average adjusted gross
farm income of a person or legal entity, the Secretary shall
include income or benefits derived from or related to--
``(A) the production of crops, including specialty
crops (as defined in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
Law 108-465)) and unfinished raw forestry products;
``(B) the production of livestock (including cattle,
elk, reindeer, bison, horses, deer, sheep, goats, swine,
poultry, fish, and other aquacultural products used for
food, honeybees, and other animals designated by the
Secretary) and products produced by, or derived from,
livestock;
``(C) the production of farm-based renewable energy
(as defined in section 9001 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8101));
``(D) the sale, including the sale of easements and
development rights, of farm, ranch, or forestry land,
water or hunting rights, or environmental benefits;
``(E) the rental or lease of land or equipment used
for farming, ranching, or forestry operations, including
water or hunting rights;
``(F) the processing (including packing), storing
(including shedding), and transporting of farm, ranch,
and forestry commodities, including renewable energy;
``(G) the feeding, rearing, or finishing of
livestock;
``(H) the sale of land that has been used for
agriculture;
``(I) payments or other benefits received under any
program authorized under title I of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.)
or title I of the Food, Conservation, and Energy Act of
2008;
``(J) payments or other benefits received under any
program authorized under title XII of this Act, title II
of the Farm Security and Rural Investment Act of 2002
(Public Law 107-171; 116 Stat. 223), or title II of the
Food, Conservation, and Energy Act of 2008;
``(K) payments or other benefits received under
section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333);

[[Page 1743]]
122 STAT. 1743

``(L) payments or other benefits received under
title IX of the Trade Act of 1974 or subtitle B of the
Federal Crop Insurance Act;
``(M) risk management practices, including benefits
received under a program authorized under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.) (including a
catastrophic risk protection plan offered under section
508(b) of that Act (7 U.S.C. 1508(b))); and
``(N) any other activity related to farming,
ranching, or forestry, as determined by the Secretary.
``(2) Income derived from farming, ranching, or forestry.--
In determining the average adjusted gross farm income of a
person or legal entity, in addition to the inclusions described
in paragraph (1), the Secretary shall include any income
reported on the Schedule F or other schedule used by the person
or legal entity to report income from farming, ranching, or
forestry operations to the Internal Revenue Service, to the
extent such income is not already included under paragraph (1).
``(3) Special rule.--If not less than 66.66 percent of the
average adjusted gross income of a person or legal entity is
derived from farming, ranching, or forestry operations described
in paragraphs (1) and (2), in determining the average adjusted
gross farm income of the person or legal entity, the Secretary
shall also include--
``(A) the sale of equipment to conduct farm, ranch,
or forestry operations; and
``(B) the provision of production inputs and
services to farmers, ranchers, foresters, and farm
operations.

``(d) Enforcement.--
``(1) [NOTE: Deadline.]  In general.--To comply with
subsection (b), at least once every 3 years a person or legal
entity shall provide to the Secretary--
``(A) [NOTE: Certification.]  a certification by a
certified public accountant or another third party that
is acceptable to the Secretary that the average adjusted
gross income, average adjusted gross farm income, and
average adjusted gross nonfarm income of the person or
legal entity does not exceed the applicable limitation
specified in that subsection; or
``(B) information and documentation regarding the
average adjusted gross income, average adjusted gross
farm income, and average adjusted gross nonfarm income
of the person or legal entity through other procedures
established by the Secretary.
``(2) Denial of program benefits.--If the Secretary
determines that a person or legal entity has failed to comply
with this section, the Secretary shall deny the issuance of
applicable payments and benefits specified in paragraphs (1)(C)
and (2)(B) of subsection (b) to the person or legal entity,
under similar terms and conditions as described in section
1001B.
``(3) [NOTE: Procedures.]  Audit.--The Secretary shall
establish statistically valid procedures under which the
Secretary shall conduct targeted audits of such persons or legal
entities as the Secretary determines are most likely to exceed
the limitations under subsection (b).

``(e) Commensurate Reduction.--In the case of a payment or benefit
described in paragraphs (1)(C) and (2)(B) of subsection

[[Page 1744]]
122 STAT. 1744

(b) made in a crop, program, or fiscal year, as appropriate, to an
entity, general partnership, or joint venture, the amount of the payment
or benefit shall be reduced by an amount that is commensurate with the
direct and indirect ownership interest in the entity, general
partnership, or joint venture of each person who has an average adjusted
gross income, average adjusted gross farm income, or average adjusted
gross nonfarm income in excess of the applicable limitation specified in
subsection (b).
``(f) Effective Period.--This section shall apply only during the
2009 through 2012 crop, program, or fiscal years, as appropriate.''.
(b) [NOTE: Applicability. 7 USC 1308-3a note.]  Transition.--
Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a), as in
effect on September 30, 2007, shall apply with respect to the 2007 and
2008 crop, fiscal, or program year, as appropriate, for each program
described in paragraphs (1)(C) and (2)(B) of subsection (b) of that
section (as amended by subsection (a)).
SEC. 1605. [NOTE: 7 USC 8783.]  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;

[[Page 1745]]
122 STAT. 1745

(F) the period of time, not to exceed 4 years,
during which incentive payments are to be provided to
producers; and
(G) the targeted total quantity of production and
estimated acres needed to produce the targeted quantity
for each year under this section.

(d) Contracts for Production.--
(1) In general.--The Secretary shall approve successful
proposals submitted under subsection (c) on a timely basis.
(2) Timing of payments.--The Secretary shall make payments
to producers under this section after the Secretary receives
documentation that the premium required under a contract has
been paid to covered producers.

(e) Administration.--
(1) In general.--If funding provided for a crop year is not
fully allocated under the initial request for proposals under
subsection (c), the Secretary shall issue additional requests
for proposals for subsequent crop years under this section.
(2) Prorated payments.--If funding provided for a crop year
is less than the amount otherwise approved by the Secretary or
for which approval is sought, the Secretary shall prorate the
payments or approvals in a manner determined by the Secretary so
that the total payments do not exceed the funding level.

(f) Proprietary Information.--The Secretary shall protect
proprietary information provided to the Secretary for the purpose of
administering this section.
(g) Program Compliance and Penalties.--
(1) Guarantee.--The proponent, if approved, shall be
required to guarantee that the oilseed on which a payment is
made by the Secretary under this section is used for human
consumption as described in the proposal, as approved by the
Secretary.
(2) Noncompliance.--If oilseeds on which a payment is made
by the Secretary under this section are not actually used for
the purpose the payment is made, the proponent shall be required
to pay to the Secretary an amount equal to, as determined by the
Secretary--
(A) in the case of an inadvertent failure, twice the
amount of the payment made by the Secretary under this
section to the producer of the oilseeds; and
(B) in any other case, up to twice the full value of
the oilseeds involved.
(3) Documentation.--The Secretary may require such
assurances and documentation as may be needed to enforce the
guarantee.
(4) Additional penalties.--
(A) In general.--In addition to payments required
under paragraph (2), the Secretary may impose penalties
on additional persons that use oilseeds the use of which
is restricted under this section for a purpose other
than the intended use.
(B) Amount.--The amount of a penalty under this
paragraph shall--
(i) be in an amount determined appropriated by
the Secretary; but
(ii) not to exceed twice the full value of the
oilseeds.

[[Page 1746]]
122 STAT. 1746

(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2009 through 2012.
SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

Section 164 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7284) is amended by striking ``and title I of the Farm
Security and Rural Investment Act of 2002'' each place it appears and
inserting ``title I of the Farm Security and Rural Investment Act of
2002, and title I of the Food, Conservation, and Energy Act of 2008''.
SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY
REGARDING LOANS.

Section 166 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7286) is amended--
(1) by striking ``and subtitle B and C of title I of the
Farm Security and Rural Investment Act of 2002'' each place it
appears and inserting ``, title I of the Farm Security and Rural
Investment Act of 2002, and title I of the Food, Conservation,
and Energy Act of 2008''; and
(2) in subsection (c), by adding at the end the following:
``(3) Termination of authority.--The authority to carry out
paragraph (1) terminates effective ending with the 2009 crop
year.''.
SEC. 1608. [NOTE: 7 USC 8784.]  ASSIGNMENT OF PAYMENTS.

(a) [NOTE: Applicability.]  In General.--The provisions of section
8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(g)), relating to assignment of payments, shall apply to payments
made under this title.

(b) Notice.--The producer making the assignment, or the assignee,
shall provide the Secretary with notice, in such manner as the Secretary
may require, of any assignment made under this section.
SEC. 1609. [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) [NOTE: Deadline.]  Regulations.--Not later than 180 days after
the date of enactment of this Act, the Secretary shall promulgate
regulations that--
(1) describe the circumstances under which, in order to
allow for the settlement of estates and for related purposes,
payments may be issued in the name of a deceased individual; and

[[Page 1747]]
122 STAT. 1747

(2) preclude the issuance of payments to, and on behalf of,
deceased individuals that were not eligible for the payments.

(b) Coordination.--At least twice each year, the Secretary shall
reconcile the social security numbers of all individuals who receive
payments under this title, whether directly or indirectly, with the
Social Security Administration to determine if the individuals are
alive.
SEC. 1612. [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.

[[Page 1748]]
122 STAT. 1748

(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 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

[[Page 1749]]
122 STAT. 1749

(B) provides other security acceptable to the
Secretary; and
(3) allow a borrower, upon the approval of the Secretary, to
define a subparcel of real estate as security for the storage
facility loan if the subparcel is--
(A) of adequate size and value to adequately secure
the loan; and
(B) not subject to any other liens or mortgages that
are superior to the lien interest of the Commodity
Credit Corporation.
SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES.

Section 8(b)(5)(B)(ii) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is amended--
(1) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively, and indenting appropriately;
(2) in the matter preceding item (aa) (as redesignated by
paragraph (1)), by striking ``A committee established'' and
inserting the following:
``(I) In general.--Except as
provided in subclause (II), a committee
established''; and
(3) by adding at the end the following:
``(II) Combination or consolidation
of areas.--A committee established by
combining or consolidating 2 or more
county or area committees shall consist
of not fewer than 3 nor more than 11
members that--
``(aa) are fairly
representative of the
agricultural producers within
the area covered by the county,
area, or local committee; and
``(bb) are elected by the
agricultural producers that
participate or cooperate in
programs administered within the
area under the jurisdiction of
the county, area, or local
committee.
``(III) Representation of socially
disadvantaged farmers and ranchers.--
The [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.''.

[[Page 1750]]
122 STAT. 1750

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, 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.--

[[Page 1751]]
122 STAT. 1751

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

[[Page 1752]]
122 STAT. 1752

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--
(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,

[[Page 1753]]
122 STAT. 1753

for Federal employees stationed in Alaska and
Hawaii; or
(II) in the case of an insular area (as
defined in section 1404 of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)), a comparable
percentage of the allowance for the fiscal year,
as determined by the Secretary.
(B) Limitation.--The total amount of direct
reimbursement payments provided by the Secretary under
this section shall not exceed $15,000,000 for a fiscal
year.

(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2009 through 2012.
SEC. 1622. [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;

[[Page 1754]]
122 STAT. 1754

``(D) is located within a county or region, as
determined by the Secretary; and
``(E) may contain lands that are incidental to the
production of perennial crops, including conserving
uses, forestry, and livestock, as determined by the
Secretary.''.

(c) Indian Tribe.--Section 1201(a) of the Food Security Act of 1985
(16 U.S.C. 3801(a)) is amended by inserting after paragraph (13), as
redesignated by subsection (a)(1), the following new paragraph:
``(14) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b(e)).''.

(d) Integrated Pest Management; Livestock; Nonindustrial Private
Forest Land; Person and Legal Entity.--Section 1201(a) of the Food
Security Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting after
paragraph (15), as redesignated by subsection (a)(1), the following new
paragraphs:
``(16) Integrated pest management.--The term `integrated
pest management' means a sustainable approach to managing pests
by combining biological, cultural, physical, and chemical tools
in a way that minimizes economic, health, and environmental
risks.
``(17) Livestock.--The term `livestock' means all animals
raised on farms, as determined by the Secretary.
``(18) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land, as
determined by the Secretary, that--
``(A) has existing tree cover or is suitable for
growing trees; and
``(B) is owned by any nonindustrial private
individual, group, association, corporation, Indian
tribe, or other private legal entity that has definitive
decisionmaking authority over the land.
``(19) Person and legal entity.--For purposes of applying
payment limitations under subtitle D, the terms `person' and
`legal entity' have the meanings given those terms in section
1001(a) of this Act (7 U.S.C. 1308(a)).''.

(e) Socially Disadvantaged Farmer or Rancher.--Section 1201(a) of
the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended by
inserting after paragraph (22), as redesignated by subsection (a)(1),
the following new paragraph:
``(23) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning given
the term in section 2501(e)(2) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)(2)).''.

(f) Technical Assistance.--Section 1201(a) of the Food Security Act
of 1985 (16 U.S.C. 3801(a)) is amended by inserting after paragraph
(24), as redesignated by subsection (a)(1), the following new paragraph:
``(25) Technical assistance.--The term `technical
assistance' means technical expertise, information, and tools
necessary for the conservation of natural resources on land
active in agricultural, forestry, or related uses. The term
includes the following:

[[Page 1755]]
122 STAT. 1755

``(A) Technical services provided directly to
farmers, ranchers, and other eligible entities, such as
conservation planning, technical consultation, and
assistance with design and implementation of
conservation practices.
``(B) Technical infrastructure, including
activities, processes, tools, and agency functions
needed to support delivery of technical services, such
as technical standards, resource inventories, training,
data, technology, monitoring, and effects analyses.''.
SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO HIGHLY
ERODIBLE LAND CONSERVATION.

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

[[Page 1756]]
122 STAT. 1756

1211 for any subsequent crop year if, prior to the beginning of
the subsequent crop year, the Secretary determines that the
person is actively applying a conservation plan according to the
schedule specified in the plan.''.
SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO WETLAND
CONSERVATION.

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

Subtitle B--Conservation Reserve Program

SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM.

Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a))
is amended--
(1) by striking ``2007 calendar year'' and inserting ``2012
fiscal year''; and
(2) by inserting before the period the following: ``and to
address issues raised by State, regional, and national
conservation initiatives''; and
SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION RESERVE.

Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 3831(b))
is amended--
(1) in paragraph (1)(B)--
(A) by striking ``Farm Security and Rural Investment
Act of 2002'' and inserting ``Food, Conservation, and
Energy Act of 2008''; and
(B) by striking the period at the end and inserting
a semicolon; and
(2) in paragraph (4)--
(A) in subparagraph (C), by striking ``; or'' and
inserting a semicolon;
(B) in subparagraph (D), by striking ``and'' at the
end and inserting ``or''; and
(C) in subparagraph (E), by inserting ``or'' after
the semicolon at the end.
SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION RESERVE.

Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d))
is amended--
(1) by striking ``2007 calendar years'' and inserting ``2009
fiscal years'';

[[Page 1757]]
122 STAT. 1757

(2) by striking ``( 16 U.S.C.'' and inserting ``(16
U.S.C.''; and
(3) by adding at the end the following new sentence:
``During fiscal years 2010, 2011, and 2012, the Secretary may
maintain up to 32,000,000 acres in the conservation reserve at
any 1 time.''.
SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS.

Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 3831(f))
is amended by striking ``the Chesapeake Bay Region (Pennsylvania,
Maryland, and Virginia)'' and inserting ``the Chesapeake Bay Region''.
SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES.

Subsection (g) of section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amended to read as follows:
``(g) Multi-Year Grasses and Legumes.--
``(1) In general.--For purposes of this subchapter, alfalfa
and other multi-year grasses and legumes in a rotation practice,
approved by the Secretary, shall be considered agricultural
commodities.
``(2) Cropping history.--Alfalfa, when grown as part of a
rotation practice, as determined by the Secretary, is an
agricultural commodity subject to the cropping history criteria
under subsection (b)(1)(B) for the purpose of determining
whether highly erodible cropland has been planted or considered
planted for 4 of the 6 years referred to in such subsection.''.
SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND
BUFFER ACREAGE IN CONSERVATION RESERVE.

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

[[Page 1758]]
122 STAT. 1758

system and is designed to provide nitrogen removal in
addition to other wetland functions;
``(C) that was devoted to commercial pond-raised
aquaculture in any year during the period of calendar
years 2002 through 2007; or
``(D) that, after January 1, 1990, and before
December 31, 2002, was--
``(i) cropped during at least 3 of 10 crop
years; and
``(ii) subject to the natural overflow of a
prairie wetland.
``(2) Buffer acreage.--Subject to subsections (c) and (d),
an owner or operator may enroll in the conservation reserve,
pursuant to the program established under this section, buffer
acreage that--
``(A) with respect to land described in subparagraph
(A), (B), or (C) of paragraph (1)--
``(i) is contiguous to such land
``(ii) is used to protect such land; and
``(iii) is of such width as the Secretary
determines is necessary to protect such land,
taking into consideration and accommodating the
farming practices (including the straightening of
boundaries to accommodate machinery) used with
respect to the cropland that surrounds such land;
and
``(B) with respect to land described in subparagraph
(D) of paragraph (1), enhances a wildlife benefit to the
extent practicable in terms of upland to wetland ratios,
as determined by the Secretary.

``(c) Program Limitations.--
``(1) Acreage limitation.--The Secretary may enroll in the
conservation reserve, pursuant to the program established under
this section, not more than--
``(A) 100,000 acres in any State; and
``(B) a total of 1,000,000 acres.
``(2) Relationship to maximum enrollment.--Subject to
paragraph (3), any acreage enrolled in the conservation reserve
under this section shall be considered acres maintained in the
conservation reserve.
``(3) Relationship to other enrolled acreage.--Acreage
enrolled in the conservation reserve under this section shall
not affect for any fiscal year the quantity of--
``(A) acreage enrolled to establish conservation
buffers as part of the program announced on March 24,
1998 (63 Fed. Reg. 14109); or
``(B) acreage enrolled into the conservation reserve
enhancement program announced on May 27, 1998 (63 Fed.
Reg. 28965).
``(4) Review; potential increase in enrollment acreage.--The
Secretary shall conduct a review of the program established
under this section with respect to each State that has enrolled
land in the conservation reserve pursuant to the program. As a
result of the review, the Secretary may increase the number of
acres that may be enrolled in a State under the program to not
more than 200,000 acres, notwithstanding paragraph (1)(A).

``(d) Owner or Operator Enrollment Limitations.--

[[Page 1759]]
122 STAT. 1759

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

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

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

[[Page 1760]]
122 STAT. 1760

(B) by redesignating subsections (i) and (j) as
subsections (h) and (i), respectively.

(b) Conforming Changes to Emergency Forestry Conservation Reserve
Program.--Subsection (k) of section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) is amended--
(1) by striking ``(k) Emergency Forestry Conservation
Reserve Program.--'' and inserting the following:
``SEC. 1231A. [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 1761]]
122 STAT. 1761

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 1762]]
122 STAT. 1762

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 1763]]
122 STAT. 1763

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) [NOTE: Web site.]  Public availability of
estimates.--The estimates derived from the annual survey
conducted under subparagraph (A) shall be maintained on
a website of the Department of Agriculture for use by
the general public.''.
(2) [NOTE: Deadline. 16 USC 3834 note.]  First survey.--
The first survey required by paragraph (5) of section 1234(c) of
the Food Security Act of 1985 (16 U.S.C. 3834(c)), as added by
subsection (a), shall be conducted not later than 1 year after
the date of enactment of this Act.

(c) Payment Limitations.--Section 1234(f) of the Food Security Act
of 1985 (16 U.S.C. 3834(f)) is amended--
(1) in paragraph (1), by striking ``made to a person'' and
inserting ``received by a person or legal entity, directly or
indirectly,'';
(2) by striking paragraph (2); and
(3) in paragraph (4), by striking ``any person'' and
inserting ``any person or legal entity''.
SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCENTIVES FOR
BEGINNING FARMERS OR RANCHERS AND
SOCIALLY DISADVANTAGED FARMERS OR
RANCHERS.

(a) Contract Modification Authority.--Section 1235(c)(1)(B) of the
Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is amended--
(1) in clause (ii), by striking ``or'' at the end;
(2) by redesignating clause (iii) as clause (iv); and
(3) by inserting after clause (ii) the following new clause:
``(iii) to facilitate a transition of land
subject to the contract from a retired or retiring
owner or operator to a beginning farmer or rancher
or socially disadvantaged farmer or rancher for
the purpose of returning some or all of the land
into production using sustainable grazing or crop
production methods; or''.

[[Page 1764]]
122 STAT. 1764

(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) [NOTE: Contracts.]  Duties of the secretary.--In the
case of a contract modification approved in order to facilitate
the transfer, as described in subsection (c)(1)(B)(iii), of land
to a beginning farmer or rancher or socially disadvantaged
farmer or rancher (in this subsection referred to as a `covered
farmer or rancher'), the Secretary shall--
``(A) [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 1765]]
122 STAT. 1765

``(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) [NOTE: Contracts.]  Acreage owned by indian
tribes.--In the case of acreage owned by an Indian tribe, the
Secretary shall enroll acreage into the wetlands reserve program
through the use of--
``(A) a 30-year contract (the value of which shall
be equivalent to the value of a 30-year easement);
``(B) restoration cost-share agreements; or
``(C) any combination of the options described in
subparagraphs (A) and (B).''.
SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS ELIGIBLE
FOR ENROLLMENT.

(a) In General.--Section 1237(c) of the Food Security Act of 1985
(16 U.S.C. 3837(c)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``2007 calendar'' and inserting
``2012 fiscal''; and
(B) by inserting ``private or tribal'' before
``land'' the second place it appears;
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) such land is--
``(A) farmed wetland or converted wetland, together
with the adjacent land that is functionally dependent on
the wetlands, except that converted wetland with respect
to which the conversion was not commenced prior to
December 23, 1985, shall not be eligible to be enrolled
in the program under this section; or
``(B) cropland or grassland that was used for
agricultural production prior to flooding from the
natural overflow of a closed basin lake or pothole, as
determined by the Secretary, together (where
practicable) with the adjacent land that is functionally
dependent on the cropland or grassland; and''.

(b) Change of Ownership.--Section 1237E(a) of the Food Security Act
of 1985 (16 U.S.C. 3837e(a)) is amended by striking ``in the preceding
12 months'' and inserting ``during the preceding 7-year period''.
(c) Annual Survey and Reallocation.--Section 1237F of the Food
Security Act of 1985 (16 U.S.C. 3837f) is amended by adding at the end
the following new subsection:
``(c) Prairie Pothole Region Survey and Reallocation.--

[[Page 1766]]
122 STAT. 1766

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

[[Page 1767]]
122 STAT. 1767

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 1768]]
122 STAT. 1768

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 [NOTE: 16 USC 3838h et seq., 3838n et seq.]
(grassland reserve program) as subchapters C and D,
respectively; and
(2) by inserting after subchapter A the following new
subchapter:

``Subchapter B--Conservation Stewardship Program

``SEC. 1238D. [NOTE: 16 USC 3838d.]  DEFINITIONS.

``In this subchapter:

[[Page 1769]]
122 STAT. 1769

``(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 1770]]
122 STAT. 1770

``(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 1771]]
122 STAT. 1771

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 1772]]
122 STAT. 1772

``(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 1773]]
122 STAT. 1773

``(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 1774]]
122 STAT. 1774

``(d) [NOTE: Time period.]  Acreage Enrollment Limitation.--During
the period beginning on October 1, 2008, and ending on September 30,
2017, the Secretary shall, to the maximum extent practicable--
``(1) enroll in the program an additional 12,769,000 acres
for each fiscal year; and
``(2) manage the program to achieve a national average rate
of $18 per acre, which shall include the costs of all financial
assistance, technical assistance, and any other expenses
associated with enrollment or participation in the program.

``(e) Conservation Stewardship Payments.--
``(1) Availability of payments.--The Secretary shall provide
a payment under the program to compensate the producer for--
``(A) installing and adopting additional
conservation activities; and
``(B) improving, maintaining, and managing
conservation activities in place at the operation of the
producer at the time the contract offer is accepted by
the Secretary.
``(2) Payment amount.--The amount of the conservation
stewardship payment shall be determined by the Secretary and
based, to the maximum extent practicable, on the following
factors:
``(A) Costs incurred by the producer associated with
planning, design, materials, installation, labor,
management, maintenance, or training.
``(B) Income forgone by the producer.
``(C) Expected environmental benefits as determined
by conservation measurement tools.
``(3) Exclusions.--A payment to a producer under this
subsection shall not be provided for--
``(A) the design, construction, or maintenance of
animal waste storage or treatment facilities or
associated waste transport or transfer devices for
animal feeding operations; or
``(B) conservation activities for which there is no
cost incurred or income forgone to the producer.
``(4) Timing of payments.--
``(A) In general.--The Secretary shall make payments
as soon as practicable after October 1 of each fiscal
year for activities carried out in the previous fiscal
year.
``(B) Additional activities.--The Secretary shall
make payments to compensate producers for installation
of additional practices at the time at which the
practices are installed and adopted.

``(f) Supplemental Payments for Resource-Conserving Crop
Rotations.--
``(1) Availability of payments.--The Secretary shall provide
additional payments to producers that, in participating in the
program, agree to adopt resource-conserving crop rotations to
achieve beneficial crop rotations as appropriate for the land of
the producers.
``(2) Beneficial crop rotations.--The Secretary shall
determine whether a resource-conserving crop rotation is a
beneficial crop rotation eligible for additional payments under
paragraph (1), based on whether the resource-conserving crop
rotation is designed to provide natural resource conservation
and production benefits.

[[Page 1775]]
122 STAT. 1775

``(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) [NOTE: Contracts.]  Data.--The Secretary shall maintain
detailed and segmented data on contracts and payments under the program
to allow for quantification of the amount of payments made for--
``(1) the installation and adoption of additional
conservation activities and improvements to conservation
activities in place on the operation of a producer at the time
the conservation stewardship offer is accepted by the Secretary;
``(2) participation in research, demonstration, and pilot
projects; and
``(3) the development and periodic assessment and evaluation
of conservation plans developed under this subchapter.''.

(b) Termination of Conservation Security Program Authority; Effect
on Existing Contracts.--Section 1238A of the Food Security Act of 1985
(16 U.S.C. 3838a) is amended by adding at the end the following new
subsection:
``(g) Prohibition on Conservation Security Program Contracts; Effect
on Existing Contracts.--
``(1) Prohibition.--A conservation security contract may not
be entered into or renewed under this subchapter after September
30, 2008.
``(2) Exception.--This subchapter, and the terms and
conditions of the conservation security program, shall continue
to apply to--
``(A) conservation security contracts entered into
on or before September 30, 2008; and
``(B) any conservation security contract entered
into after that date, but for which the application for
the contract was received during the 2008 sign-up
period.

[[Page 1776]]
122 STAT. 1776

``(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 1777]]
122 STAT. 1777

(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) [NOTE: Effective date.]  Determination of Fair Market
Value.--Effective on the date of enactment of the Food, Conservation,
and Energy Act of 2008, the fair market value of the conservation
easement or other interest in eligible land shall be determined on the
basis of an appraisal using an industry approved method, selected by the
eligible entity and approved by the Secretary.

``(e) Bidding Down Prohibited.--If the Secretary determines that 2
or more applications for cost-share assistance are comparable in
achieving the purpose of the program, the Secretary shall not assign a
higher priority to any 1 of those applications solely on the basis of
lesser cost to the program.
``(f) Condition on Assistance.--

[[Page 1778]]
122 STAT. 1778

``(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 1779]]
122 STAT. 1779

``(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 1780]]
122 STAT. 1780

``(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 1781]]
122 STAT. 1781

``(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 1782]]
122 STAT. 1782

``(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 1783]]
122 STAT. 1783

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 1784]]
122 STAT. 1784

``(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 1785]]
122 STAT. 1785

``(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 1786]]
122 STAT. 1786

(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 1787]]
122 STAT. 1787

``(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 1788]]
122 STAT. 1788

``(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 1789]]
122 STAT. 1789

``(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 1790]]
122 STAT. 1790

``(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 1791]]
122 STAT. 1791

(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 1792]]
122 STAT. 1792

``(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 1793]]
122 STAT. 1793

``(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) [NOTE: Effective date. Procedures. Contracts.]
Establishment of Program.--Beginning in fiscal year 2009, the Secretary
shall carry out, in accordance with this section and using such
procedures as the Secretary determines to be appropriate, an
agricultural water enhancement program as part of the environmental
quality incentives program to promote ground and surface water
conservation and improve water quality on agricultural lands--
``(1) by entering into contracts with, and making payments
to, producers to carry out agricultural water enhancement
activities; or
``(2) by entering into partnership agreements with partners,
in accordance with subsection (c), on a regional level to
benefit working agricultural land.

``(c) Partnership Agreements.--
``(1) Agreements authorized.--The Secretary may enter into
partnership agreements to meet the objectives of the program
described in subsection (b).
``(2) Applications.--An application to the Secretary to
enter into a partnership agreement under paragraph (1) shall
include the following:
``(A) A description of the geographical area to be
covered by the partnership agreement.
``(B) A description of the agricultural water
quality or water conservation issues to be addressed by
the partnership agreement.

[[Page 1794]]
122 STAT. 1794

``(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) [NOTE: Reports.]  Duties of partners.--A partner
under a partnership agreement shall--
``(A) identify producers participating in the
project and act on their behalf in applying for the
program;
``(B) leverage funds provided by the Secretary with
additional funds to help achieve project objectives;
``(C) conduct monitoring and evaluation of project
effects; and
``(D) at the conclusion of the project, report to
the Secretary on project results.

``(d) Agricultural Water Enhancement Activities by Producers.--The
Secretary shall select agricultural water enhancement activities
proposed by producers according to applicable requirements under the
environmental quality incentives program.
``(e) Agricultural Water Enhancement Activities by Partners.--
``(1) Competitive process.--The Secretary shall conduct a
competitive process to select partners. [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 1795]]
122 STAT. 1795

``(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 1796]]
122 STAT. 1796

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 1797]]
122 STAT. 1797

``(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 1798]]
122 STAT. 1798

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 1799]]
122 STAT. 1799

``(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 1800]]
122 STAT. 1800

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 1801]]
122 STAT. 1801

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) [NOTE: Deadline.]  Review.--Not later than January
1, 2012, the Secretary shall conduct a review of conservation
programs and authorities under this title that utilize
allocation formulas to determine the sufficiency of the formulas
in accounting for State-level economic factors, level of
agricultural infrastructure, or related factors that affect
conservation program costs.
``(2) Update.--The Secretary shall improve conservation
program allocation formulas as necessary to ensure that the
formulas adequately reflect the costs of carrying out the
conservation programs.''.
SEC. 2704. ASSISTANCE TO CERTAIN FARMERS AND RANCHERS TO IMPROVE
THEIR ACCESS TO CONSERVATION PROGRAMS.

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

[[Page 1802]]
122 STAT. 1802

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 1803]]
122 STAT. 1803

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) [NOTE: Deadline.]  Regulations.--Not later than 180
days after the date of the enactment of the Food, Conservation,
and Energy Act of 2008, the Secretary shall promulgate such
regulations as are necessary to carry out this section.
``(3) Expertise.--In promulgating such regulations, the
Secretary, to the maximum extent practicable, shall--
``(A) ensure that persons with expertise in the
technical aspects of conservation planning, watershed
planning, and environmental engineering, including
commercial entities, nonprofit entities, State or local
governments or agencies, and other Federal agencies, are
eligible to become approved providers of the technical
assistance;
``(B) [NOTE: Criteria.]  provide national criteria
for the certification of third party providers; and
``(C) approve any unique certification standards
established at the State level.

``(f) Administration.--
``(1) [NOTE: Effective date.]  Funding.--Effective for
fiscal year 2008 and each subsequent fiscal year, funds of the
Commodity Credit Corporation made available to carry out
technical assistance for each of the programs specified in
section 1241 shall be available for the provision of technical
assistance from third-party providers under this section.
``(2) Term of agreement.--An agreement with a third-party
provider under this section shall have a term that--
``(A) at a minimum, is equal to the period beginning
on the date on which the agreement is entered into and
ending on the date that is 1 year after the date on
which all activities performed pursuant to the agreement
have been completed;
``(B) does not exceed 3 years; and
``(C) can be renewed, as determined by the
Secretary.
``(3) [NOTE: Deadline.]  Review of certification
requirements.--Not later than 1 year after the date of enactment
of the Food, Conservation, and Energy Act of 2008, the Secretary
shall--
``(A) review certification requirements for third-
party providers; and
``(B) make any adjustments considered necessary by
the Secretary to improve participation.
``(4) Eligible activities.--
``(A) Inclusion of activities.--The Secretary may
include as activities eligible for payments to a third
party provider--
``(i) technical services provided directly to
eligible participants, such as conservation
planning, education and outreach, and assistance
with design and implementation of conservation
practices; and
``(ii) related technical assistance services
that accelerate conservation program delivery.

[[Page 1804]]
122 STAT. 1804

``(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 1805]]
122 STAT. 1805

``(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 1806]]
122 STAT. 1806

``(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 1807]]
122 STAT. 1807

``(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 1808]]
122 STAT. 1808

``(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) [NOTE: Procedures.]  Compliance and Performance.--For each
conservation program under subtitle D, the Secretary shall develop
procedures--
``(1) to monitor compliance with program requirements;
``(2) to measure program performance;
``(3) to demonstrate whether the long-term conservation
benefits of the program are being achieved;
``(4) to track participation by crop and livestock types;
and
``(5) to coordinate activities described in this subsection
with the national conservation program authorized under section
5 of the Soil and Water Resources Conservation Act of 1977 (16
U.S.C. 2004).

``(h) Encouragement of Pollinator Habitat Development and
Protection.--In carrying out any conservation program administered by
the Secretary, the Secretary may, as appropriate, encourage--
``(1) the development of habitat for native and managed
pollinators; and

[[Page 1809]]
122 STAT. 1809

``(2) the use of conservation practices that benefit native
and managed pollinators.

``(i) Streamlined Application Process.--
``(1) In general.--In carrying out each conservation program
under this title, the Secretary shall ensure that the
application process used by producers and landowners is
streamlined to minimize complexity and eliminate redundancy.
``(2) Review and streamlining.--
``(A) Review.--The Secretary shall carry out a
review of the application forms and processes for each
conservation program covered by this subsection.
``(B) Streamlining.--On completion of the review the
Secretary shall revise application forms and processes,
as necessary, to ensure that--
``(i) all required application information is
essential for the efficient, effective, and
accountable implementation of conservation
programs;
``(ii) conservation program applicants are not
required to provide information that is readily
available to the Secretary through existing
information systems of the Department of
Agriculture;
``(iii) information provided by the applicant
is managed and delivered efficiently for use in
all stages of the application process, or for
multiple applications; and
``(iv) information technology is used
effectively to minimize data and information input
requirements.
``(3) Implementation and notification.--Not later than 1
year after the date of enactment of the Food, Conservation, and
Energy Act of 2008, the Secretary shall submit to Congress a
written notification of completion of the requirements of this
subsection.''.
SEC. 2709. ENVIRONMENTAL SERVICES MARKETS.

Subtitle E of title XII of the Food Security Act of 1985 is amended
by inserting after section 1244 (16 U.S.C. 3844) the following new
section:
``SEC. 1245. [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 1810]]
122 STAT. 1810

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 1811]]
122 STAT. 1811

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) [NOTE: Deadline.]  Standards.--Not later than 180 days after
the date of enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall develop--
``(1) standard operating procedures to standardize the
operations of State technical committees; and
``(2) standards to be used by State technical committees in
the development of technical guidelines under section 1262(b)
for the implementation of the conservation provisions of this
title.

``(c) Composition.--Each State technical committee shall be composed
of agricultural producers and other professionals that

[[Page 1812]]
122 STAT. 1812

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 1813]]
122 STAT. 1813

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 1814]]
122 STAT. 1814

``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 1815]]
122 STAT. 1815

(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 1816]]
122 STAT. 1816

``(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 1817]]
122 STAT. 1817

``(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 1818]]
122 STAT. 1818

(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) [NOTE: Effective date.]  In general.--Effective
beginning on the date of enactment of this paragraph, subject to
paragraph (3), the cost share obligations required by this
section shall be met through an up-front cost share from the
Basin Funds, in the same proportions as the cost allocations
required under subsection (a), as provided in paragraph (2).
``(2) Basin states program.--The Secretary shall expend the
required cost share funds described in paragraph (1) through the
Basin States Program for salinity control activities established
under section 202(a)(7).
``(3) Existing salinity control activities.--The cost share
contribution required by this section shall continue to be met
through repayment in a manner consistent with this section for
all salinity control activities for which repayment was
commenced prior to the date of enactment of this paragraph.''.
SEC. 2807. DESERT TERMINAL LAKES.

Section 2507 of the Farm Security and Rural Investment Act of 2002
(43 U.S.C. 2211 note; Public Law 107-171) is amended--
(1) in subsection (a)--
(A) by striking ``(a)'' and all that follows through
``$200,000,000'' and inserting ``(a) Transfer.--Subject
to subsection (b) and paragraph (1) of section 207(a) of
Public Law 108-7 (117 Stat. 146), notwithstanding
paragraph (3) of that section, on the date of enactment
of the Food, Conservation, and Energy Act of 2008, the
Secretary of Agriculture shall transfer $175,000,000'';
and
(B) by striking the quotation marks at the beginning
of paragraphs (1) and (2); and
(2) by striking subsection (b) and inserting the following
new subsection:

``(b) Permitted Uses.--In any case in which there are willing
sellers, the funds described in subsection (a) may be used--
``(1) to lease water; or
``(2) to purchase land, water appurtenant to the land, and
related interests in the Walker River Basin in accordance with
section 208(a)(1)(A) of the Energy and Water Development
Appropriations Act, 2006 (Public Law 109-103; 119 Stat.
2268).''.

Subtitle J--Miscellaneous Conservation Provisions

SEC. 2901. [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 1819]]
122 STAT. 1819

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) [NOTE: Time period. 16 USC 3839aa-9 note.]  Ground and Surface
Water Conservation Program.--During the period beginning on the date of
the enactment of this Act and ending on September 30, 2008, the
Secretary of Agriculture shall continue to carry out the ground and
surface water conservation program under section 1240I of the Food
Security Act of 1985 (16 U.S.C. 3839aa-9), as in effect before the
amendment made by section 2510, using the terms, conditions, and funds
available to the Secretary to carry out such program on the day before
the date of the enactment of this Act.
SEC. 2904. [NOTE: 16 USC 3801 note. Deadline.]  REGULATIONS.

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

(c) Congressional Review of Agency Rulemaking.--In carrying out this
section, the Secretary shall use the authority provided under section
808(2) of title 5, United States Code.

[[Page 1820]]
122 STAT. 1820

TITLE III--TRADE

Subtitle A--Food for Peace Act

SEC. 3001. SHORT TITLE.

(a) In General.--Section 1 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691 note; 104 Stat. 3633) is amended
by striking ``Agricultural Trade Development and Assistance Act of
1954'' and inserting ``Food for Peace Act''.
(b) Conforming Amendments.--
(1) In general.--Each provision of law described in
paragraph (2) is amended--
(A) by striking ``Agricultural Trade Development and
Assistance Act of 1954'' each place it appears and
inserting ``Food for Peace Act''; and
(B) [NOTE: 22 USC 2431e.]  in each section
heading, by striking ``agricultural trade development
and assistance act of 1954'' each place it appears and
inserting ``food for peace act''.
(2) Provisions of law.--The provisions of law referred to in
paragraph (1) are the following:
(A) [NOTE: 7 USC 1446c-1.]  The Agriculture and
Food Act of 1981 (Public Law 97-98; 95 Stat. 1213).
(B) [NOTE: 7 USC 1431.]  The Agricultural Act of
1949 (7 U.S.C. 1421 et seq.).
(C) Section 9(a) of the Military Construction
Codification Act (7 U.S.C. 1704c).
(D) Section 201 of the Africa: Seeds of Hope Act of
1998 (7 U.S.C. 1721 note; Public Law 105-385).
(E) The Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f-1 et seq.).
(F) The Food for Progress Act of 1985 (7 U.S.C.
1736o).
(G) Section 3107 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 1736o-1).
(H) Sections 605B and 606C of the Act of August 28,
1954 (commonly known as the ``Agricultural Act of
1954'') (7 U.S.C. 1765b, 1766b).
(I) Section 206 of the Agricultural Act of 1956 (7
U.S.C. 1856).
(J) [NOTE: 7 USC 1691 note, 5201.]  The
Agricultural Competitiveness and Trade Act of 1988 (7
U.S.C. 5201 et seq.).
(K) [NOTE: 7 USC 5676, 5693, 5713.]  The
Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.).
(L) [NOTE: 12 USC 635i-6.]  The Export-Import Bank
Act of 1945 (12 U.S.C. 635 et seq.).
(M) Section 301 of title 13, United States Code.
(N) Section 8 of the Endangered Species Act of 1973
(16 U.S.C. 1537).
(O) Section 604 of the Enterprise for the Americas
Act of 1992 (22 U.S.C. 2077).
(P) Section 5 of the International Health Research
Act of 1960 (22 U.S.C. 2103).
(Q) The Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.).
(R) The Horn of Africa Recovery and Food Security
Act (22 U.S.C. 2151 note; Public Law 102-274).

[[Page 1821]]
122 STAT. 1821

(S) Section 105 of the Mutual Educational and
Cultural Exchange Act of 1961 (22 U.S.C. 2455).
(T) Section 35 of the Foreign Military Sales Act (22
U.S.C. 2775).
(U) [NOTE: 22 USC 5413, 5423, 5425.]  The Support
for East European Democracy (SEED) Act of 1989 (22
U.S.C. 5401 et seq.).
(V) Section 1707 of the Cuban Democracy Act of 1992
(22 U.S.C. 6006).
(W) [NOTE: 22 USC 6041, 6062.]  The Cuban Liberty
and Democratic Solidarity (LIBERTAD) Act of 1996 (22
U.S.C. 6021 et seq.).
(X) Section 902 of the Trade Sanctions Reform and
Export Enhancement Act of 2000 (22 U.S.C. 7201).
(Y) [NOTE: 46 USC 55314, 55316.]  Chapter 553 of
title 46, United State Code.
(Z) Section 4 of the Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98c).
(AA) The Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101-624; 104 Stat. 3359).
(BB) [NOTE: 7 USC 1765d-1.]  Section 738 of the
Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act,
2001 (Public Law 106-387; 114 Stat 1549A-34).

(c) [NOTE: 7 USC 1691 note.]  References.--Any reference in any
Federal, State, tribal, or local law (including regulations) to the
``Agricultural Trade Development and Assistance Act of 1954'' shall be
considered to be a reference to the ``Food for Peace Act''.
SEC. 3002. UNITED STATES POLICY.

Section 2 of the Food for Peace Act (7 U.S.C. 1691) is amended--
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively.
SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

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

[[Page 1822]]
122 STAT. 1822

commodities, on the condition that the provision of
those commodities or funds--
``(i) is based on assessments of need and
intended to benefit the food security of, or
otherwise assist, recipients, and
``(ii) is provided in a manner that avoids
disincentives to local agricultural production and
marketing and with minimal potential for
disruption of commercial markets; and''.
SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

(a) Title I of the Food for Peace Act (7 U.S.C. 1701 et seq.) is
amended in the title heading, by striking ``TRADE AND DEVELOPMENT
ASSISTANCE'' and inserting ``ECONOMIC ASSISTANCE AND FOOD SECURITY''.
(b) Section 101 of the Food for Peace Act (7 U.S.C. 1701) is amended
in the section heading, by striking ``trade and development assistance''
and inserting ``economic assistance and food security''.
SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE
ENTITIES.

Section 102 of the Food for Peace Act (7 U.S.C. 1702) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively; and
(2) by striking subsection (c).
SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

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

[[Page 1823]]
122 STAT. 1823

SEC. 3007. GENERAL AUTHORITY.

Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) address famine and food crises, and respond to
emergency food needs, arising from man-made and natural
disasters;'';
(2) in paragraph (5)--
(A) by inserting ``food security and support'' after
``promote''; and
(B) by striking ``; and'' and inserting a semicolon;
(3) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(7) promote economic and nutritional security by
increasing educational, training, and other productive
activities.''.
SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

Section 202 of the Food for Peace Act (7 U.S.C. 1722) is amended--
(1) in subsection (b)(2), by striking ``may not deny a
request for funds'' and inserting ``may not use as a sole
rationale for denying a request for funds'';
(2) in subsection (e)(1)--
(A) in the matter preceding subparagraph (A), by
striking ``not less than 5 percent nor more than 10
percent'' and inserting ``not less than 7.5 percent nor
more than 13 percent'';
(B) in subparagraph (A), by striking ``; and'' and
inserting a semicolon;
(C) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(C) improving and implementing methodologies for
food aid programs, including needs assessments (upon the
request of the Administrator), monitoring, and
evaluation.''; and
(3) by striking subsection (h) and inserting the following:

``(h) Food Aid Quality.--
``(1) In general.--The Administrator shall use funds made
available for fiscal year 2009 and subsequent fiscal years to
carry out this title--
``(A) to assess the types and quality of
agricultural commodities and products donated for food
aid;
``(B) to adjust products and formulations (including
the potential introduction of new fortificants and
products) as necessary to cost-effectively meet nutrient
needs of target populations; and
``(C) to test prototypes.
``(2) Administration.--The Administrator--
``(A) shall carry out this subsection in
consultation with and through independent entities with
proven expertise in food aid commodity quality
enhancements;
``(B) may enter into contracts to obtain the
services of such entities; and

[[Page 1824]]
122 STAT. 1824

``(C) shall consult with the Food Aid Consultative
Group on how to carry out this subsection.
``(3) Funding limitation.--Of the funds made available under
section 207(f), for fiscal years 2009 through 2011, not more
than $4,500,000 may be used to carry out this subsection.''.
SEC. 3009. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY
ORGANIZATIONS AND COOPERATIVES.

Section 203(b) of the Food for Peace Act (7 U.S.C. 1723(b)) is
amended by striking ``1 or more recipient countries'' and inserting ``in
1 or more recipient countries''.
SEC. 3010. LEVELS OF ASSISTANCE.

Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is
amended--
(1) in paragraph (1), by striking ``2002 through 2007'' and
inserting ``2008 through 2012''; and
(2) in paragraph (2), by striking ``2002 through 2007'' and
inserting ``2008 through 2012''.
SEC. 3011. FOOD AID CONSULTATIVE GROUP.

Section 205 of the Food for Peace Act (7 U.S.C. 1725) is amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period and
inserting ``; and''; and
(C) by inserting at the end the following:
``(7) representatives from the maritime transportation
sector involved in transporting agricultural commodities
overseas for programs under this Act.''; and
(2) in subsection (f), by striking ``2007'' and inserting
``2012''.
SEC. 3012. ADMINISTRATION.

Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is amended--
(1) in subsection (a)(3), by striking ``and the conditions
that must be met for the approval of such proposal'';
(2) in subsection (c), by striking paragraph (3);
(3) by striking subsection (d) and inserting the following:

``(d) [NOTE: Procedures.]  Timely Provision of Commodities.--The
Administrator, in consultation with the Secretary, shall develop
procedures that ensure expedited processing of commodity call forwards
in order to provide commodities overseas in a timely manner and to the
extent feasible, according to planned delivery schedules.''; and
(4) by adding at the end the following:

``(f) Program Oversight, Monitoring, and Evaluation.--
``(1) Duties of administrator.--The Administrator, in
consultation with the Secretary, shall establish systems and
carry out activities--
``(A) to determine the need for assistance provided
under this title; and
``(B) to improve, monitor, and evaluate the
effectiveness and efficiency of the assistance provided
under this title to maximize the impact of the
assistance.
``(2) Requirements of systems and activities.--The systems
and activities described in paragraph (1) shall include--

[[Page 1825]]
122 STAT. 1825

``(A) program monitors in countries that receive
assistance under this title;
``(B) country and regional food aid impact
evaluations;
``(C) the identification and implementation of best
practices for food aid programs;
``(D) the evaluation of monetization programs;
``(E) early warning assessments and systems to help
prevent famines; and
``(F) upgraded information technology systems.
``(3) Implementation report.--Not later than 180 days after
the date of enactment of the Food, Conservation, and Energy Act
of 2008, the Administrator shall submit to the appropriate
committees of Congress a report on efforts undertaken by the
Administrator to conduct oversight of nonemergency programs
under this title.
``(4) Government accountability office report.--Not later
than 270 days after the date of submission of the report under
paragraph (3), the Comptroller General of the United States
shall submit to the appropriate committees of Congress a report
that contains--
``(A) a review of, and comments addressing, the
report described in paragraph (3); and
``(B) recommendations relating to any additional
actions that the Comptroller General of the United
States determines to be necessary to improve the
monitoring and evaluation of assistance provided under
this title.
``(5) Contract authority.--
``(A) In general.--Subject to subparagraphs (B) and
(C), in carrying out administrative and management
activities relating to each activity carried out by the
Administrator under paragraph (1), the Administrator may
enter into contracts with 1 or more individuals for
personal service to be performed in recipient countries
or neighboring countries.
``(B) Prohibition.--An individual who enters into a
contract with the Administrator under subparagraph (A)
shall not be considered to be an employee of the Federal
Government for the purpose of any law (including
regulations) administered by the Office of Personnel
Management.
``(C) Personal service.--Subparagraph (A) does not
limit the ability of the Administrator to enter into a
contract with any individual for personal service under
section 202(a).
``(6) Funding.--
``(A) In general.--Subject to section 202(h)(3), in
addition to other funds made available to the
Administrator to carry out the monitoring of emergency
food assistance, the Administrator may implement this
subsection using up to $22,000,000 of the funds made
available under this title for each of fiscal years 2009
through 2012, except for paragraph (2)(F), for which
only $2,500,000 shall be made available during fiscal
year 2009.
``(B) Limitations.--
``(i) In general.--Subject to clause (ii), of
the funds made available under subparagraph (A),
for each of fiscal years 2009 through 2012, not
more than

[[Page 1826]]
122 STAT. 1826

$8,000,000 may be used by the Administrator to
carry out paragraph (2)(E).
``(ii) Condition.--No funds shall be made
available under subparagraph (A), in accordance
with clause (i), unless not less than $8,000,000
is made available under chapter 1 of part I of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.) for such purposes for such fiscal year.

``(g) Project Reporting.--
``(1) In general.--In submitting project reports to the
Administrator, a private voluntary organization or cooperative
shall provide a copy of the report in such form as is necessary
for the report to be displayed for public use on the website of
the United States Agency for International Development.
``(2) Confidential information.--An organization or
cooperative described in paragraph (1) may omit any confidential
information from the copy of the report submitted for public
display under that paragraph.''.
SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
DELIVERY, AND DISTRIBUTION OF SHELF-
STABLE PREPACKAGED FOODS.

Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is
amended--
(1) by striking ``$3,000,000'' and inserting ``$8,000,000'';
and
(2) by striking ``2007'' and inserting ``2012''.
SEC. 3014. GENERAL AUTHORITIES AND REQUIREMENTS.

(a) In General.--Section 401 of the Food for Peace Act (7 U.S.C.
1731) is amended--
(1) by striking subsection (a);
(2) by redesignating subsections (b) and (c) as subsections
(a) and (b), respectively; and
(3) in subsection (b) (as so redesignated), by striking
``(b)(1)'' and inserting ``(a)(1)''.

(b) Conforming Amendments.--
(1) Section 406(a) of the Food for Peace Act (7 U.S.C.
1736(a)) is amended by striking ``(that have been determined to
be available under section 401(a))''.
(2) Subsection (e)(1) of the Food for Progress Act of 1985
(7 U.S.C. 1736o(e)(1)) is amended by striking ``determined to be
available under section 401 of the Food for Peace Act''.
SEC. 3015. DEFINITIONS.

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

[[Page 1827]]
122 STAT. 1827

SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

Section 406(b)(2) of the Food for Peace Act (7 U.S.C. 1736(b)(2)) is
amended by inserting ``, including the costs of carrying out section
415'' before the semicolon.
SEC. 3017. ADMINISTRATIVE PROVISIONS.

Section 407(c) of the Food for Peace Act (7 U.S.C. 1736a(c)) is
amended--
(1) in paragraph (4)--
(A) by striking ``Funds made'' and inserting the
following:
``(A) In general.--Funds made'';
(B) in subparagraph (A) (as so designated)--
(i) by striking ``2007'' and inserting
``2012''; and
(ii) by striking ``$2,000,000'' and inserting
``$10,000,000''; and
(C) by adding at the end the following:
``(B) Additional prepositioning sites.--
``(i) Feasibility assessments.--The
Administrator may carry out assessments for the
establishment of not less than 2 sites to
determine the feasibility of, and costs associated
with, using the sites to store and handle
agricultural commodities for prepositioning in
foreign countries.
``(ii) Establishment of sites.--Based on the
results of each assessment carried out under
clause (i), the Administrator may establish
additional sites for prepositioning in foreign
countries.''; and
(2) by adding at the end the following:
``(5) Nonemergency or multiyear agreements.--Annual resource
requests for ongoing nonemergency or ongoing multiyear
agreements under title II shall be finalized not later than
October 1 of the fiscal year in which the agricultural
commodities will be shipped under the agreement.''.
SEC. 3018. CONSOLIDATION AND MODIFICATION OF ANNUAL REPORTS
REGARDING AGRICULTURAL TRADE ISSUES.

(a) Annual Reports.--Section 407 of the Food for Peace Act (7 U.S.C.
1736a) is amended by striking subsection (f) and inserting the
following:
``(f) Annual Reports.--
``(1) Annual report regarding agricultural trade programs
and activities.--
``(A) Annual report.--Not later than April 1 of each
fiscal year, the Administrator and the Secretary shall
jointly prepare and submit to the appropriate committees
of Congress a report regarding each program and activity
carried out under this Act during the prior fiscal year.
``(B) Contents.--An annual report described in
subparagraph (A) shall include, with respect to the
prior fiscal year--
``(i) a list that contains a description of
each country and organization that receives food
and other assistance under this Act (including the
quantity of food and assistance provided to each
country and organization);

[[Page 1828]]
122 STAT. 1828

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

(b) Conforming Amendment.--Section 207(e) of the Food for Peace Act
(7 U.S.C. 1726a(e)) is amended--
(1) by striking ``Timely Approval.'' and all that follows
through ``The Administrator'' and inserting ``Timely Approval.--
The Administrator''; and
(2) by striking paragraph (2).
SEC. 3019. EXPIRATION OF ASSISTANCE.

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

[[Page 1829]]
122 STAT. 1829

SEC. 3020. AUTHORIZATION OF APPROPRIATIONS.

Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended by
striking subsection (a) and inserting the following:
``(a) Authorization of Appropriations.--There are authorized to be
appropriated--
``(1) for fiscal year 2008 and each fiscal year thereafter,
$2,500,000,000 to carry out the emergency and nonemergency food
assistance programs under title II; and
``(2) such sums as are necessary--
``(A) to carry out the concessional credit sales
program established under title I;
``(B) to carry out the grant program established
under title III; and
``(C) to make payments to the Commodity Credit
Corporation to the extent the Commodity Credit
Corporation is not reimbursed under the programs under
this Act for the actual costs incurred or to be incurred
by the Commodity Credit Corporation in carrying out such
programs.''.
SEC. 3021. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended by
adding at the end the following:
``(e) Minimum Level of Nonemergency Food Assistance.--
``(1) Funds and commodities.--Of the amounts made available
to carry out emergency and nonemergency food assistance programs
under title II, not less than $375,000,000 for fiscal year 2009,
$400,000,000 for fiscal year 2010, $425,000,000 for fiscal year
2011, and $450,000,000 for fiscal year 2012 shall be expended
for nonemergency food assistance programs under title II.
``(2) Exception.--The President may use less than the amount
specified in paragraph (1) in a fiscal year for nonemergency
food assistance programs under title II only if--
``(A) the President has made a determination that
there is an urgent need for additional emergency food
assistance;
``(B) the funds and commodities held in the Bill
Emerson Humanitarian Trust have been exhausted; and
``(C) the President has submitted to Congress a
supplemental appropriations request for a sum equal to
the amount needed to reach the required spending level
for nonemergency food assistance under paragraph (1) and
the amount exhausted under paragraph (2)(B).
``(3) [NOTE: President.]  Notification to congress.--If
the President makes the determination described in paragraph
(2)(A), the President shall submit to Congress written
notification that the determination has been made.''.
SEC. 3022. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is amended--
(1) by striking ``To the maximum'' and inserting the
following:

``(a) In General.--To the maximum''; and
(2) by adding at the end the following:

``(b) Report Regarding Efforts to Improve Procurement Planning.--

[[Page 1830]]
122 STAT. 1830

``(1) Report required.--Not later than 90 days after the
date of enactment of the Food, Conservation, and Energy Act of
2008, the Administrator and the Secretary shall submit to each
appropriate committee of Congress a report that contains a
description of each effort taken by the Administrator and the
Secretary to improve planning for food and transportation
procurement (including efforts to eliminate bunching of food
purchases).
``(2) Contents.--A report required under paragraph (1)
should include a description of each effort taken by the
Administrator and the Secretary--
``(A) to improve the coordination of food purchases
made by--
``(i) the United States Agency for
International Development; and
``(ii) the Department of Agriculture;
``(B) to increase flexibility with respect to
procurement schedules;
``(C) to increase the use of historical analyses and
forecasting; and
``(D) to improve and streamline legal claims
processes for resolving transportation disputes.''.
SEC. 3023. MICRONUTRIENT FORTIFICATION PROGRAMS.

Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``Not later than
September 30, 2003, the Administrator, in consultation
with the Secretary'' and inserting ``Not later than
September 30, 2008, the Administrator, in consultation
with the Secretary''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by adding ``and''
after the semicolon at the end; and
(ii) by striking subparagraphs (B) and (C) and
inserting the following:
``(B) assess and apply technologies and systems to
improve and ensure the quality, shelf life,
bioavailability, and safety of fortified food aid
agricultural commodities, and products of those
agricultural commodities, using recommendations included
in the report entitled `Micronutrient Compliance Review
of Fortified Public Law 480 Commodities', published in
October 2001, with implementation by independent
entities with proven experience and expertise in food
aid commodity quality enhancements.'';
(2) by striking subsection (b) and redesignating subsections
(c) and (d) as subsections (b) and (c), respectively; and
(3) in subsection (c) (as redesignated by paragraph (2)), by
striking ``2007'' and inserting ``2012''.
SEC. 3024. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER
PROGRAM.

(a) Minimum Funding.--Section 501(d) of the Food for Peace Act (7
U.S.C. 1737(d)) is amended in the matter preceding paragraph (1)--
(1) by striking ``not less than'' and inserting ``not less
than the greater of $10,000,000 or''; and

[[Page 1831]]
122 STAT. 1831

(2) by striking ``2002 through 2007'' and inserting ``2008
through 2012''.

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

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

SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.

(a) Repeal of Supplier Credit Guarantee Program and Intermediate
Export Credit Guarantee Program.--Section 202 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (a)--
(A) by striking ``Guarantees.--'' and all that
follows through ``The Commodity'' in paragraph (1) and
inserting ``Guarantees.--The Commodity''; and
(B) by striking paragraphs (2) and (3);
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) through (l) as
subsections (b) through (j), respectively; and
(4) by adding at the end the following:

``(k) Administration.--
``(1) Definition of long term.--In this subsection, the term
`long term' means a period of 10 or more years.
``(2) Guarantees.--In administering the export credit
guarantees authorized under this section, the Secretary shall--
``(A) maximize the export sales of agricultural
commodities;
``(B) maximize the export credit guarantees that are
made available and used during the course of a fiscal
year;
``(C) develop an approach to risk evaluation that
facilitates accurate country risk designations and
timely adjustments to the designations (on an ongoing
basis) in response to material changes in country risk
conditions, with ongoing opportunity for input and
evaluation from the private sector;
``(D) adjust risk-based guarantees as necessary to
ensure program effectiveness and United States
competitiveness; and
``(E) work with industry to ensure, to the maximum
extent practicable, that risk-based fees associated with
the guarantees cover, but do not exceed, the operating
costs and losses over the long term.''.

(b) Funding Levels.--Section 211 of the Agricultural Trade Act of
1978 (7 U.S.C. 5641) is amended by striking subsection (b) and inserting
the following:

[[Page 1832]]
122 STAT. 1832

``(b) Export Credit Guarantee Programs.--The Commodity Credit
Corporation shall make available for each of fiscal years 1996 through
2012 credit guarantees under section 202(a) in an amount equal to but
not more than the lesser of--
``(1) $5,500,000,000 in credit guarantees; or
``(2) the sum of--
``(A) the amount of credit guarantees that the
Commodity Credit Corporation can make available using
budget authority of $40,000,000 for each fiscal year for
the costs of the credit guarantees; and
``(B) the amount of credit guarantees that the
Commodity Credit Corporation can make available using
unobligated budget authority for prior fiscal years.''.

(c) Conforming Amendments.--Section 202 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (b)(4) (as redesignated by subsection
(a)(3)), by striking ``, consistent with the provisions of
subsection (c)'';
(2) in subsection (d) (as redesignated by subsection
(a)(3))--
(A) by striking ``(1)'' and all that follows through
``The Commodity'' and inserting ``The Commodity''; and
(B) by striking paragraph (2); and
(3) in subsection (g)(2) (as redesignated by subsection
(a)(3)), by striking ``subsections (a) and (b)'' and inserting
``subsection (a)''.
SEC. 3102. MARKET ACCESS PROGRAM.

(a) Organic Commodities.--Section 203(a) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5623(a)) is amended by inserting after
``agricultural commodities'' the following: ``(including commodities
that are organically produced (as defined in section 2103 of the Organic
Foods Production Act of 1990 (7 U.S.C. 6502)))''.
(b) Funding.--Section 211(c)(1)(A) of the Agricultural Trade Act of
1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking ``$200,000,000 for
each of fiscal years 2006 and 2007'' and inserting ``$200,000,000 for
each of fiscal years 2008 through 2012''.
SEC. 3103. EXPORT ENHANCEMENT PROGRAM.

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

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

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

[[Page 1833]]
122 STAT. 1833

(5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking
``sections 201, 202, 203, and 301'' and inserting ``sections
201, 202, and 203''.
SEC. 3104. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

(a) Report to Congress.--Section 702(c) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5722(c)) is amended by striking ``Committee on
International Relations'' and inserting ``Committee on Foreign
Affairs''.
(b) Funding.--Section 703(a) of the Agricultural Trade Act of 1978
(7 U.S.C. 5723(a)) is amended by striking ``2002 through 2007'' and
inserting ``2008 through 2012''.
SEC. 3105. FOOD FOR PROGRESS ACT OF 1985.

(a) In General.--The Food for Progress Act of 1985 (7 U.S.C. 1736o)
is amended by striking ``2007'' each place it appears and inserting
``2012''.
(b) Designation of Project in Sub-Saharan Africa.--The Food for
Progress Act of 1985 (7 U.S.C. 1736o) is amended in subsection (f) by
adding at the end the following:
``(6) Project in malawi.--
``(A) [NOTE: President.]  In general.--In carrying
out this section during fiscal year 2009, the President
shall approve not less than 1 multiyear project for
Malawi--
``(i) to promote sustainable agriculture; and
``(ii) to increase the number of women in
leadership positions.
``(B) Use of eligible commodities.--Of the eligible
commodities used to carry out this section during the
period in which the project described in subparagraph
(A) is carried out, the President shall carry out the
project using eligible commodities with a total value of
not less than $3,000,000 during the course of the
project.''.
SEC. 3106. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND
CHILD NUTRITION PROGRAM.

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

[[Page 1834]]
122 STAT. 1834

Subtitle C--Miscellaneous

SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C.
1736f-1) is amended--
(1) in subsection (a)--
(A) by striking ``establish a trust stock'' and
inserting ``establish and maintain a trust''; and
(B) by striking ``or any combination of the
commodities, totaling not more than 4,000,000 metric
tons'' and inserting ``any combination of the
commodities, or funds'';
(2) in subsection (b)--
(A) in paragraph (1), by striking subparagraph (D)
and inserting the following:
``(D) funds made available--
``(i) under paragraph (2)(B);
``(ii) as a result of an exchange of any
commodity held in the trust for an equivalent
amount of funds from the market, if the Secretary
determines that such a sale of the commodity on
the market will not unduly disrupt domestic
markets; or
``(iii) to maximize the value of the trust, in
accordance with subsection (d)(3).''; and
(B) in paragraph (2)(B)--
(i) in clause (i)--
(I) by striking ``2007'' each place
it appears and inserting ``2012'';
(II) by striking ``(c)(2)'' and
inserting ``(c)(1)''; and
(III) by striking ``and'' at the
end;
(ii) in clause (ii), by striking the period at
the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(iii) from funds accrued through the
management of the trust under subsection (d).'';
(3) in subsection (c)--
(A) by striking paragraphs (1) and (2) and inserting
the following:
``(1) Releases for emergency assistance.--
``(A) Definition of emergency.--
``(i) In general.--In this paragraph, the term
`emergency' means an urgent situation--
``(I) in which there is clear
evidence that an event or series of
events described in clause (ii) has
occurred--
``(aa) that causes human
suffering; and
``(bb) for which a
government concerned has not
chosen, or has not the means, to
remedy; or
``(II) created by a demonstrably
abnormal event or series of events that
produces dislocation in the lives of
residents of a country or region of a
country on an exceptional scale.
``(ii) Event or series of events.--An event or
series of events referred to in clause (i)
includes 1 or more of--

[[Page 1835]]
122 STAT. 1835

``(I) a sudden calamity, such as an
earthquake, flood, locust infestation,
or similar unforeseen disaster;
``(II) a human-made emergency
resulting in--
``(aa) a significant influx
of refugees;
``(bb) the internal
displacement of populations; or
``(cc) the suffering of
otherwise affected populations;
``(III) food scarcity conditions
caused by slow-onset events, such as
drought, crop failure, pest infestation,
and disease, that result in an erosion
of the ability of communities and
vulnerable populations to meet food
needs; and
``(IV) severe food access or
availability conditions resulting from
sudden economic shocks, market failure,
or economic collapse, that result in an
erosion of the ability of communities
and vulnerable populations to meet food
needs.
``(B) Releases.--
``(i) In general.--Any funds or commodities
held in the trust may be released to provide food,
and cover any associated costs, under title II of
the Food for Peace Act (7 U.S.C. 1721 et seq.)--
``(I) to assist in averting an
emergency, including during the period
immediately preceding the emergency;
``(II) to respond to an emergency;
or
``(III) for recovery and
rehabilitation after an emergency.
``(ii) Procedure.--A release under clause (i)
shall be carried out in the same manner, and
pursuant to the same authority as provided in
title II of that Act.
``(C) Insufficiency of other funds.--The funds and
commodities held in the trust shall be made immediately
available on a determination by the Administrator that
funds available for emergency needs under title II of
that Act (7 U.S.C. 1721 et seq.) for a fiscal year are
insufficient to meet emergency needs during the fiscal
year.
``(D) Waiver relating to minimum tonnage
requirements.--Nothing in this paragraph requires a
waiver by the Administrator of the Agency for
International Development under section 204(a)(3) of the
Food for Peace Act (7 U.S.C. 1724(a)(3)) as a condition
for a release of funds or commodities under subparagraph
(B).''; and
(B) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (d)--
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and
indenting the subparagraphs appropriately;
(B) by striking the subsection designation and
heading and all that follows through ``provide--'' and
inserting the following:

``(d) Management of Trust.--

[[Page 1836]]
122 STAT. 1836

``(1) In general.--The Secretary shall provide for the
management of eligible commodities and funds held in the trust
in a manner that is consistent with maximizing the value of the
trust, as determined by the Secretary.
``(2) Eligible commodities.--The Secretary shall provide--
'';
(C) in paragraph (2) (as redesignated by
subparagraph (B))--
(i) in subparagraph (B) (as redesignated by
subparagraph (A)), by striking ``and'' at the end;
and
(ii) in subparagraph (C) (as redesignated by
subparagraph (A)), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(3) Funds.--
``(A) Exchanges.--If any commodity held in the trust
is exchanged for funds under subsection (b)(1)(D)(ii),
the funds shall be held in the trust until the date on
which the funds are released in the case of an emergency
under subsection (c).
``(B) Investment.--The Secretary may invest funds
held in the trust in any short-term obligation of the
United States or any other low-risk short-term
instrument or security insured by the Federal Government
in which a regulated insurance company may invest under
the laws of the District of Columbia.''; and
(5) in subsection (h), in each of paragraphs (1) and (2), by
striking ``2007'' each place it appears and inserting ``2012''.
SEC. 3202. [NOTE: 22 USC 2220a note.]  GLOBAL CROP DIVERSITY
TRUST.

(a) Contribution.--The Administrator of the United States Agency for
International Development shall contribute funds to endow the Global
Crop Diversity Trust (referred to in this section as the ``Trust'') to
assist in the conservation of genetic diversity in food crops through
the collection and storage of the germplasm of food crops in a manner
that provides for--
(1) the maintenance and storage of seed collections;
(2) the documentation and cataloguing of the genetics and
characteristics of conserved seeds to ensure efficient reference
for researchers, plant breeders, and the public;
(3) building the capacity of seed collection in developing
countries;
(4) making information regarding crop genetic data publicly
available for researchers, plant breeders, and the public
(including through the provision of an accessible Internet
website);
(5) the operation and maintenance of a back-up facility in
which are stored duplicate samples of seeds, in the case of
natural or man-made disasters; and
(6) oversight designed to ensure international coordination
of those actions and efficient, public accessibility to that
diversity through a cost-effective system.

(b) United States Contribution Limit.--The aggregate contributions
of funds of the Federal Government provided to the Trust shall not
exceed 25 percent of the total amount of funds contributed to the Trust
from all sources.

[[Page 1837]]
122 STAT. 1837

(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $60,000,000 for the period of
fiscal years 2008 through 2012.
SEC. 3203. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

Section 3205 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 5680) is amended by striking subsection (d) and inserting the
following:
``(d) Annual Report.--Not later than 180 days after the date of
enactment of the Food, Conservation, and Energy Act of 2008 and annually
thereafter, the Secretary shall submit to the appropriate committees of
Congress a report that contains, for the period covered by the report, a
description of each factor that affects the export of specialty crops,
including each factor relating to any--
``(1) significant sanitary or phytosanitary issue; or
``(2) trade barrier.

``(e) Funding.--
``(1) Commodity credit corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this section.
``(2) Funding amounts.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section--
``(A) $4,000,000 for fiscal year 2008;
``(B) $7,000,000 for fiscal year 2009;
``(C) $8,000,000 for fiscal year 2010;
``(D) $9,000,000 for fiscal year 2011; and
``(E) $9,000,000 for fiscal year 2012.''.
SEC. 3204. EMERGING MARKETS AND FACILITY GUARANTEE LOAN PROGRAM.

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

[[Page 1838]]
122 STAT. 1838

``(B) 20 years.''; and
(3) in subsection (d)(1)(A)(i) by striking ``2007'' and
inserting ``2012''.
SEC. 3205. [NOTE: 22 USC 7112 note.]  CONSULTATIVE GROUP TO
ELIMINATE THE USE OF CHILD LABOR AND
FORCED LABOR IN IMPORTED AGRICULTURAL
PRODUCTS.

(a) Definitions.--In this section:
(1) Child labor.--The term ``child labor'' means the worst
forms of child labor as defined in International Labor
Convention 182, the Convention Concerning the Prohibition and
Immediate Action for the Elimination of the Worst Forms of Child
Labor, done at Geneva on June 17, 1999.
(2) Consultative group.--The term ``Consultative Group''
means the Consultative Group to Eliminate the Use of Child Labor
and Forced Labor in Imported Agricultural Products established
under subsection (b).
(3) Forced labor.--The term ``forced labor'' means all work
or service--
(A) that is exacted from any individual under menace
of any penalty for nonperformance of the work or
service, and for which--
(i) the work or service is not offered
voluntarily; or
(ii) the work or service is performed as a
result of coercion, debt bondage, or involuntary
servitude (as those terms are defined in section
103 of the Trafficking Victims Protection Act of
2000 (22 U.S.C. 7102)); and
(B) by 1 or more individuals who, at the time of
performing the work or service, were being subjected to
a severe form of trafficking in persons (as that term is
defined in that section).

(b) Establishment.--There is established a group to be known as the
``Consultative Group to Eliminate the Use of Child Labor and Forced
Labor in Imported Agricultural Products'' to develop recommendations
relating to guidelines to reduce the likelihood that agricultural
products or commodities imported into the United States are produced
with the use of forced labor and child labor.
(c) [NOTE: Deadlines.]  Duties.--
(1) [NOTE: Recommenda- tions.]  In general.--Not later
than 2 years after the date of enactment of this Act and in
accordance with section 105(d) of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7103(d)), as applicable to the
importation of agricultural products made with the use of child
labor or forced labor, the Consultative Group shall develop, and
submit to the Secretary, recommendations relating to a standard
set of practices for independent, third-party monitoring and
verification for the production, processing, and distribution of
agricultural products or commodities to reduce the likelihood
that agricultural products or commodities imported into the
United States are produced with the use of forced labor or child
labor.
(2) Guidelines.--
(A) In general.--Not later than 1 year after the
date on which the Secretary receives recommendations
under paragraph (1), the Secretary shall release
guidelines for a voluntary initiative to enable entities
to address issues

[[Page 1839]]
122 STAT. 1839

raised by the Trafficking Victims Protection Act of 2000
(22 U.S.C. 7101 et seq.).
(B) Requirements.--Guidelines released under
subparagraph (A) shall be published in the Federal
Register and made available for public comment for a
period of 90 days.

(d) Membership.--The Consultative Group shall be composed of not
more than 13 individuals, of whom--
(1) 2 members shall represent the Department of Agriculture,
as determined by the Secretary;
(2) 1 member shall be the Deputy Under Secretary for
International Affairs of the Department of Labor;
(3) 1 member shall represent the Department of State, as
determined by the Secretary of State;
(4) 3 members shall represent private agriculture-related
enterprises, which may include retailers, food processors,
importers, and producers, of whom at least 1 member shall be an
importer, food processor, or retailer who utilizes independent,
third-party supply chain monitoring for forced labor or child
labor;
(5) 2 members shall represent institutions of higher
education and research institutions, as determined appropriate
by the Bureau of International Labor Affairs of the Department
of Labor;
(6) 1 member shall represent an organization that provides
independent, third-party certification services for labor
standards for producers or importers of agricultural commodities
or products; and
(7) 3 members shall represent organizations described in
section 501(c)(3) of the Internal Revenue Code of 1986 that have
expertise on the issues of international child labor and do not
possess a conflict of interest associated with establishment of
the guidelines issued under subsection (c)(2), as determined by
the Bureau of International Labor Affairs of the Department of
Labor, including representatives from consumer organizations and
trade unions, if appropriate.

(e) Chairperson.--A representative of the Department of Agriculture
appointed under subsection (d)(1), as determined by the Secretary, shall
serve as the chairperson of the Consultative Group.
(f) Requirements.--Not less than 4 times per year, the Consultative
Group shall meet at the call of the Chairperson, after reasonable notice
to all members, to develop recommendations described in subsection
(c)(1).
(g) Nonapplicability of FACA.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the Consultative Group.
(h) Annual Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter through December 31,
2012, the Secretary shall submit to the Committees on Agriculture and
Foreign Affairs of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report describing
the activities and recommendations of the Consultative Group.
(i) Termination of Authority.--The Consultative Group shall
terminate on December 31, 2012.

[[Page 1840]]
122 STAT. 1840

SEC. 3206. [NOTE: 7 USC 1726c.]  LOCAL AND REGIONAL FOOD AID
PROCUREMENT PROJECTS.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Agency for International Development.
(2) Appropriate committee of congress.--The term
``appropriate committee of Congress'' means--
(A) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
(B) the Committee on Agriculture of the House of
Representatives; and
(C) the Committee on Foreign Affairs of the House of
Representatives.
(3) Eligible commodity.--The term ``eligible commodity''
means an agricultural commodity (or the product of an
agricultural commodity) that--
(A) is produced in, and procured from, a developing
country; and
(B) at a minimum, meets each nutritional, quality,
and labeling standard of the country that receives the
agricultural commodity, as determined by the Secretary.
(4) Eligible organization.--The term ``eligible
organization'' means an organization that is--
(A) described in section 202(d) of the Food for
Peace Act (7 U.S.C. 1722(d)); and
(B) with respect to nongovernmental organizations,
subject to regulations promulgated or guidelines issued
to carry out this section, including United States audit
requirements that are applicable to nongovernmental
organizations.

(b) Study; Field-Based Projects.--
(1) Study.--
(A) [NOTE: Deadline.]  In general.--Not later than
30 days after the date of enactment of this Act, the
Secretary shall initiate a study of prior local and
regional procurements for food aid programs conducted
by--
(i) other donor countries;
(ii) private voluntary organizations; and
(iii) the World Food Program of the United
Nations.
(B) Report.--Not later than 180 days after the date
of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report
containing the results of the study conducted under
subparagraph (A).
(2) Field-based projects.--
(A) In general.--In accordance with subparagraph
(B), the Secretary shall provide grants to, or enter
into cooperative agreements with, eligible organizations
to carry out field-based projects that consist of local
or regional procurements of eligible commodities to
respond to food crises and disasters in accordance with
this section.
(B) Consultation with administrator.--In carrying
out the development and implementation of field-based
projects under subparagraph (A), the Secretary shall
consult with the Administrator.

(c) Procurement.--

[[Page 1841]]
122 STAT. 1841

(1) In general.--Any eligible commodity that is procured for
a field-based project carried out under subsection (b)(2) shall
be procured through any approach or methodology that the
Secretary considers to be an effective approach or methodology
to provide adequate information regarding the manner by which to
expedite, to the maximum extent practicable, the provision of
food aid to affected populations without significantly
increasing commodity costs for low-income consumers who procure
commodities sourced from the same markets at which the eligible
commodity is procured.
(2) Requirements.--
(A) Impact on local farmers and countries.--The
Secretary shall ensure that the local or regional
procurement of any eligible commodity under this section
will not have a disruptive impact on farmers located in,
or the economy of--
(i) the recipient country of the eligible
commodity; or
(ii) any country in the region in which the
eligible commodity may be procured.
(B) Transshipment.--The Secretary shall, in
accordance with such terms and conditions as the
Secretary considers to be appropriate, require from each
eligible organization commitments designed to prevent or
restrict--
(i) the resale or transshipment of any
eligible commodity procured under this section to
any country other than the recipient country; and
(ii) the use of the eligible commodity for any
purpose other than food aid.
(C) World prices.--
(i) In general.--In carrying out this section,
the Secretary shall take any precaution that the
Secretary considers to be reasonable to ensure
that the procurement of eligible commodities will
not unduly disrupt--
(I) world prices for agricultural
commodities; or
(II) normal patterns of commercial
trade with foreign countries.
(ii) Procurement price.--The procurement of
any eligible commodity shall be made at a
reasonable market price with respect to the
economy of the country in which the eligible
commodity is procured, as determined by the
Secretary.

(d) Regulations; Guidelines.--
(1) [NOTE: Deadline.]  In general.--In accordance with
paragraph (2), not later than 180 days after the date of
completion of the study under subsection (b)(1), the Secretary
shall promulgate regulations or issue guidelines to carry out
field-based projects under this section.
(2) Requirements.--
(A) Use of study.--In promulgating regulations or
issuing guidelines under paragraph (1), the Secretary
shall take into consideration the results of the study
described in subsection (b)(1).
(B) Public review and comment.--In promulgating
regulations or issuing guidelines under paragraph (1),
the

[[Page 1842]]
122 STAT. 1842

Secretary shall provide an opportunity for public review
and comment.
(3) Availability.--The Secretary shall not approve the
procurement of any eligible commodity under this section until
the date on which the Secretary promulgates regulations or
issues guidelines under paragraph (1).

(e) Field-Based Project Grants or Cooperative Agreements.--
(1) In general.--The Secretary shall award grants to, or
enter into cooperative agreements with, eligible organizations
to carry out field-based projects.
(2) Requirements of eligible organizations.--
(A) Application.--
(i) In general.--To be eligible to receive a
grant from, or enter into a cooperative agreement
with, the Secretary under this subsection, an
eligible organization shall submit to the
Secretary an application by such date, in such
manner, and containing such information as the
Secretary may require.
(ii) Other applicable requirements.--Any other
applicable requirement relating to the submission
of proposals for consideration shall apply to the
submission of an application required under clause
(i), as determined by the Secretary.
(B) Completion requirement.--To be eligible to
receive a grant from, or enter into a cooperative
agreement with, the Secretary under this subsection, an
eligible organization shall agree--
(i) to collect by September 30, 2011, data
containing the information required under
subsection (f)(1)(B) relating to the field-based
project funded through the grant; and
(ii) to provide to the Secretary the data
collected under clause (i).
(3) Requirements of secretary.--
(A) Project diversity.--
(i) In general.--Subject to clause (ii) and
subparagraph (B), in selecting proposals for
field-based projects to fund under this section,
the Secretary shall select a diversity of
projects, including projects located in--
(I) food surplus regions;
(II) food deficit regions (that are
carried out using regional procurement
methods); and
(III) multiple geographical regions.
(ii) Priority.--In selecting proposals for
field-based projects under clause (i), the
Secretary shall ensure that the majority of
selected proposals are for field-based projects
that--
(I) are located in Africa; and
(II) procure eligible commodities
that are produced in Africa.
(B) Development assistance.--A portion of the funds
provided under this subsection shall be made available
for field-based projects that provide development
assistance for a period of not less than 1 year.
(4) Availability.--The Secretary shall not award a grant to
any eligible organization under paragraph (1) until the date

[[Page 1843]]
122 STAT. 1843

on which the Secretary promulgates regulations or issues
guidelines under subsection (d)(1).

(f) Independent Evaluations; Report.--
(1) Independent evaluations.--
(A) [NOTE: Deadline.]  In general.--Not later than
November 1, 2011, the Secretary shall ensure that an
independent third party conducts an independent
evaluation of all field-based projects that--
(i) addresses each factor described in
subparagraph (B); and
(ii) is conducted in accordance with this
section.
(B) Required factors.--The Secretary shall require
the independent third party to develop--
(i) with respect to each relevant market in
which an eligible commodity was procured under
this section, a description of--
(I) the prevailing and historic
supply, demand, and price movements of
the market (including the extent of
competition for procurement bids);
(II) the impact of the procurement
of the eligible commodity on producer
and consumer prices in the market;
(III) each government market
interference or other activity of the
donor country that might have
significantly affected the supply or
demand of the eligible commodity in the
area at which the local or regional
procurement occurred;
(IV) the quantities and types of
eligible commodities procured in the
market;
(V) the time frame for procurement
of each eligible commodity; and
(VI) the total cost of the
procurement of each eligible commodity
(including storage, handling,
transportation, and administrative
costs);
(ii) an assessment regarding--
(I) whether the requirements of this
section have been met;
(II) the impact of different
methodologies and approaches on--
(aa) local and regional
agricultural producers
(including large and small
agricultural producers);
(bb) markets;
(cc) low-income consumers;
and
(dd) program recipients; and
(III) the length of the period
beginning on the date on which the
Secretary initiated the procurement
process and ending on the date of
delivery of eligible commodities;
(iii) a comparison of different methodologies
used to carry out this section, with respect to--
(I) the benefits to local
agriculture;
(II) the impact on markets and
consumers;
(III) the period of time required
for procurement and delivery;
(IV) quality and safety assurances;
and
(V) implementation costs; and

[[Page 1844]]
122 STAT. 1844

(iv) to the extent adequate information is
available (including the results of the report
required under subsection (b)(1)(B)), a comparison
of the different methodologies used by other donor
countries to make local and regional procurements.
(C) Independent third party access to records and
reports.--The Secretary shall provide to the independent
third party access to each record and report that the
independent third party determines to be necessary to
complete the independent evaluation.
(D) [NOTE: Deadline.]  Public access to records
and reports.--Not later than 180 days after the date
described in paragraph (2), the Secretary shall provide
public access to each record and report described in
subparagraph (C).
(2) Report.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall submit to the
appropriate committees of Congress a report that contains the
analysis and findings of the independent evaluation conducted
under paragraph (1)(A).

(g) Funding.--
(1) Commodity credit corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this section.
(2) Funding amounts.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section--
(A) $5,000,000 for fiscal year 2009;
(B) $25,000,000 for fiscal year 2010;
(C) $25,000,000 for fiscal year 2011; and
(D) $5,000,000 for fiscal year 2012.

Subtitle D--Softwood Lumber

SEC. 3301. SOFTWOOD LUMBER.

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

``TITLE VIII--SOFTWOOD [NOTE: Softwood Lumber Act of 2008.]  LUMBER
``SEC. 801. SHORT TITLE; TABLE OF CONTENTS.

``(a) [NOTE: 19 USC 1654 note.]  Short Title.--This title may be
cited as the `Softwood Lumber Act of 2008'.

``(b) Table of Contents.--The table of contents for this title is as
follows:

``TITLE VIII--SOFTWOOD LUMBER

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

``SEC. 802. [NOTE: 19 USC 1683.]  DEFINITIONS.

``In this title:

[[Page 1845]]
122 STAT. 1845

``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means the Committee on
Finance of the Senate and the Committee on Ways and Means of the
House of Representatives.
``(2) Country of export.--The term `country of export' means
the country (including any political subdivision of the country)
from which softwood lumber or a softwood lumber product is
exported before entering the United States.
``(3) Customs laws of the united states.--The term `customs
laws of the United States' means any law or regulation enforced
or administered by U.S. Customs and Border Protection.
``(4) Export charges.--The term `export charges' means any
tax, charge, or other fee collected by the country from which
softwood lumber or a softwood lumber product, described in
section 804(a), is exported pursuant to an international
agreement entered into by that country and the United States.
``(5) Export price.--
``(A) In general.--The term `export price' means one
of the following:
``(i) In the case of softwood lumber or a
softwood lumber product that has undergone only
primary processing, the value that would be
determined F.O.B. at the facility where the
product underwent the last primary processing
before export.
``(ii)(I) In the case of softwood lumber or a
softwood lumber product described in subclause
(II), the value that would be determined F.O.B. at
the facility where the lumber or product underwent
the last primary processing.
``(II) Softwood lumber or a softwood lumber
product described in this subclause is lumber or a
product that underwent the last remanufacturing
before export by a manufacturer who--
``(aa) does not hold tenure rights
provided by the country of export;
``(bb) did not acquire standing
timber directly from the country of
export; and
``(cc) is not related to the person
who holds tenure rights or acquired
standing timber directly from the
country of export.
``(iii)(I) In the case of softwood lumber or a
softwood lumber product described in subclause
(II), the value that would be determined F.O.B. at
the facility where the product underwent the last
processing before export.
``(II) Softwood lumber or a softwood lumber
product described in this subclause is lumber or a
product that undergoes the last remanufacturing
before export by a manufacturer who--
``(aa) holds tenure rights provided
by the country of export;
``(bb) acquired standing timber
directly from the country of export; or
``(cc) is related to a person who
holds tenure rights or acquired standing
timber directly from the country of
export.

[[Page 1846]]
122 STAT. 1846

``(B) Related persons.--For purposes of this
paragraph, a person is related to another person if--
``(i) the person bears a relationship to such
other person described in section 152(a) of the
Internal Revenue Code of 1986;
``(ii) the person bears a relationship to such
other person described in section 267(b) of such
Code, except that `5 percent' shall be substituted
for `50 percent' each place it appears;
``(iii) the person and such other person are
part of a controlled group of corporations, as
that term is defined in section 1563(a) of such
Code, except that `5 percent' shall be substituted
for `80 percent' each place it appears;
``(iv) the person is an officer or director of
such other person; or
``(v) the person is the employer of such other
person.
``(C) Tenure rights.--For purposes of this
paragraph, the term `tenure rights' means rights to
harvest timber from public land granted by the country
of export.
``(D) Export price where f.o.b. value cannot be
determined.--
``(i) In general.--In the case of softwood
lumber or a softwood lumber product described in
clause (i), (ii), or (iii) of subparagraph (A) for
which an F.O.B. value cannot be determined, the
export price shall be the market price for the
identical lumber or product sold in an arm's-
length transaction in the country of export at
approximately the same time as the exported lumber
or product. The market price shall be determined
in the following order of preference:
``(I) The market price for the
lumber or a product sold at
substantially the same level of trade as
the exported lumber or product but in
different quantities.
``(II) The market price for the
lumber or a product sold at a different
level of trade than the exported lumber
or product but in similar quantities.
``(III) The market price for the
lumber or a product sold at a different
level of trade than the exported lumber
or product and in different quantities.
``(ii) Level of trade.--For purposes of clause
(i), `level of trade' shall be determined in the
same manner as provided under section 351.412(c)
of title 19, Code of Federal Regulations (as in
effect on January 1, 2008).
``(6) F.O.B.--The term `F.O.B.' means a value consisting of
all charges payable by a purchaser, including those charges
incurred in the placement of merchandise on board of a
conveyance for shipment, but does not include the actual
shipping charges or any applicable export charges.
``(7) HTS.--The term `HTS' means the Harmonized Tariff
Schedule of the United States (19 U.S.C. 1202) (as in effect on
January 1, 2008).

[[Page 1847]]
122 STAT. 1847

``(8) Person.--The term `person' includes any individual,
partnership, corporation, association, organization, business
trust, government entity, or other entity subject to the
jurisdiction of the United States.
``(9) United states.--The term `United States' means the
customs territory of the United States, as defined in General
Note 2 of the HTS.
``SEC. 803. [NOTE: President. 19 USC 1683a.]  ESTABLISHMENT OF
SOFTWOOD LUMBER IMPORTER DECLARATION
PROGRAM.

``(a) Establishment of Program.--
``(1) In general.--The President shall establish and
maintain an importer declaration program with respect to the
importation of softwood lumber and softwood lumber products
described in section 804(a). The importer declaration program
shall require importers of softwood lumber and softwood lumber
products described in section 804(a) to provide the information
required under subsection (b) and declare the information
required by subsection (c), and require that such information
accompany the entry summary documentation.
``(2) Electronic record.--The President shall establish an
electronic record that includes the importer information
required under subsection (b) and the declarations required
under subsection (c).

``(b) Required Information.--The President shall require the
following information to be submitted by any person seeking to import
softwood lumber or softwood lumber products described in section 804(a):
``(1) The export price for each shipment of softwood lumber
or softwood lumber products.
``(2) The estimated export charge, if any, applicable to
each shipment of softwood lumber or softwood lumber products as
calculated by applying the percentage determined and published
by the Under Secretary for International Trade of the Department
of Commerce pursuant to section 805 to the export price provided
in subsection (b)(1).

``(c) [NOTE: Procedures.]  Importer Declarations.--Pursuant to
procedures prescribed by the President, any person seeking to import
softwood lumber or softwood lumber products described in section 804(a)
shall declare that--
``(1) the person has made appropriate inquiry, including
seeking appropriate documentation from the exporter and
consulting the determinations published by the Under Secretary
for International Trade of the Department of Commerce pursuant
to section 805(b); and
``(2) to the best of the person's knowledge and belief--
``(A) the export price provided pursuant to
subsection (b)(1) is determined in accordance with the
definition provided in section 802(5);
``(B) the export price provided pursuant to
subsection (b)(1) is consistent with the export price
provided on the export permit, if any, granted by the
country of export; and
``(C) the exporter has paid, or committed to pay,
all export charges due--
``(i) in accordance with the volume, export
price, and export charge rate or rates, if any, as
calculated

[[Page 1848]]
122 STAT. 1848

under an international agreement entered into by
the country of export and the United States; and
``(ii) consistent with the export charge
determinations published by the Under Secretary
for International Trade pursuant to section
805(b).
``SEC. 804. [NOTE: 19 USC 1683b.]  SCOPE OF SOFTWOOD LUMBER
IMPORTER DECLARATION PROGRAM.

``(a) Products Included in Program.--The following products shall be
subject to the importer declaration program established under section
803:
``(1) In general.--All softwood lumber and softwood lumber
products classified under subheading 4407.10.00, 4409.10.10,
4409.10.20, or 4409.10.90 of the HTS, including the following
softwood lumber, flooring, and siding:
``(A) Coniferous wood, sawn or chipped lengthwise,
sliced or peeled, whether or not planed, sanded, or
finger-jointed, of a thickness exceeding 6 millimeters.
``(B) Coniferous wood siding (including strips and
friezes for parquet flooring, not assembled)
continuously shaped (tongued, grooved, rabbeted,
chamfered, v-jointed, beaded, molded, rounded, or the
like) along any of its edges or faces, whether or not
planed, sanded, or finger-jointed.
``(C) Other coniferous wood (including strips and
friezes for parquet flooring, not assembled)
continuously shaped (tongued, grooved, rabbeted,
chamfered, v-jointed, beaded, molded, rounded, or the
like) along any of its edges or faces (other than wood
moldings and wood dowel rods) whether or not planed,
sanded, or finger-jointed.
``(D) Coniferous wood flooring (including strips and
friezes for parquet flooring, not assembled)
continuously shaped (tongued, grooved, rabbeted,
chamfered, v-jointed, beaded, molded, rounded, or the
like) along any of its edges or faces, whether or not
planed, sanded, or finger-jointed.
``(E) Coniferous drilled and notched lumber and
angle cut lumber.
``(2) Products continually shaped.--Any product classified
under subheading 4409.10.05 of the HTS that is continually
shaped along its end or side edges.
``(3) Other lumber products.--Except as otherwise provided
in subsection (b) or (c), softwood lumber products that are
stringers, radius-cut box-spring frame components, fence
pickets, truss components, pallet components, and door and
window frame parts classified under subheading 4418.90.46.95,
4421.90.70.40, or 4421.90.97.40 of the HTS.

``(b) Products Excluded From Program.--The following products shall
be excluded from the importer declaration program established under
section 803:
``(1) Trusses and truss kits, properly classified under
subheading 4418.90 of the HTS.
``(2) I-joist beams.
``(3) Assembled box-spring frames.
``(4) Pallets and pallet kits, properly classified under
subheading 4415.20 of HTS.
``(5) Garage doors.

[[Page 1849]]
122 STAT. 1849

``(6) Edge-glued wood, properly classified under subheading
4421.90.97.40 of the HTS.
``(7) Complete door frames.
``(8) Complete window frames.
``(9) Furniture.
``(10) Articles brought into the United States temporarily
and for which an exemption from duty is claimed under subchapter
XIII of chapter 98 of the HTS.
``(11) Household and personal effects.

``(c) Exceptions for Certain Products.--The following softwood
lumber products shall not be subject to the importer declaration program
established under section 803:
``(1) Stringers.--Stringers (pallet components used for
runners), if the stringers--
``(A) have at least 2 notches on the side,
positioned at equal distance from the center, to
properly accommodate forklift blades; and
``(B) are properly classified under subheading
4421.90.97.40 of the HTS.
``(2) Box-spring frame kits.--
``(A) In general.--Box-spring frame kits, if--
``(i) the kits contain--
``(I) 2 wooden side rails;
``(II) 2 wooden end (or top) rails;
and
``(III) varying numbers of wooden
slats; and
``(ii) the side rails and the end rails are
radius-cut at both ends.
``(B) Packaging.--Any kit described in subparagraph
(A) shall be individually packaged, and contain the
exact number of wooden components needed to make the
box-spring frame described on the entry documents, with
no further processing required. None of the components
contained in the package may exceed 1 inch in actual
thickness or 83 inches in length.
``(3) Radius-cut box-spring frame components.--Radius-cut
box-spring frame components, not exceeding 1 inch in actual
thickness or 83 inches in length, ready for assembly without
further processing, if radius cuts are present on both ends of
the boards and are substantial cuts so as to completely round 1
corner.
``(4) Fence pickets.--Fence pickets requiring no further
processing and properly classified under subheading 4421.90.70
of the HTS, 1 inch or less in actual thickness, up to 8 inches
wide, and 6 feet or less in length, and having finials or
decorative cuttings that clearly identify them as fence pickets.
In the case of dog-eared fence pickets, the corners of the
boards shall be cut off so as to remove pieces of wood in the
shape of isosceles right angle triangles with sides measuring
\3/4\ of an inch or more.
``(5) United states-origin lumber.--Lumber originating in
the United States that is exported to another country for minor
processing and imported into the United States if--
``(A) the processing occurring in another country is
limited to kiln drying, planing to create smooth-to-size
board, and sanding; and

[[Page 1850]]
122 STAT. 1850

``(B) the importer establishes to the satisfaction
of U.S. Customs and Border Protection upon entry that
the lumber originated in the United States.
``(6) Softwood lumber.--Any softwood lumber or softwood
lumber product that originated in the United States, if the
importer, exporter, foreign processor, or original United States
producer establishes to the satisfaction of U.S. Customs and
Border Protection upon entry that the softwood lumber entered
and documented as originating in the United States was first
produced in the United States.
``(7) Home packages or kits.--
``(A) In general.--Softwood lumber or softwood
lumber products contained in a single family home
package or kit, regardless of the classification under
the HTS, if the importer declares that the following
requirements have been met:
``(i) The package or kit constitutes a full
package of the number of wooden pieces specified
in the plan, design, or blueprint necessary to
produce a home of at least 700 square feet
produced to a specified plan, design, or
blueprint.
``(ii) The package or kit contains--
``(I) all necessary internal and
external doors and windows, nails,
screws, glue, subfloor, sheathing,
beams, posts, and connectors; and
``(II) if included in the purchase
contract, the decking, trim, drywall,
and roof shingles specified in the plan,
design, or blueprint.
``(iii) Prior to importation, the package or
kit is sold to a United States retailer that sells
complete home packages or kits pursuant to a valid
purchase contract referencing the particular home
design, plan, or blueprint, and the contract is
signed by a customer not affiliated with the
importer.
``(iv) Softwood lumber products entered as
part of the package or kit, whether in a single
entry or multiple entries on multiple days, are to
be used solely for the construction of the single
family home specified by the home design, plan, or
blueprint matching the U.S. Customs and Border
Protection import entry.
``(B) Additional documentation required for home
packages and kits.--In the case of each entry of
products described in clauses (i) through (iv) of
subparagraph (A) the following documentation shall be
retained by the importer and made available to U.S.
Customs and Border Protection upon request:
``(i) A copy of the appropriate home design,
plan, or blueprint matching the customs entry in
the United States.
``(ii) A purchase contract from a retailer of
home kits or packages signed by a customer not
affiliated with the importer.
``(iii) A listing of all parts in the package
or kit being entered into the United States that
conforms to the home design, plan, or blueprint
for which such parts are being imported.

[[Page 1851]]
122 STAT. 1851

``(iv) If a single contract involves multiple
entries, an identification of all the items
required to be listed under clause (iii) that are
included in each individual shipment.

``(d) Products Covered.--For purposes of determining if a product is
covered by the importer declaration program, the President shall be
guided by the article descriptions provided in this section.
``SEC. 805. [NOTE: 19 USC 1683c.]  EXPORT CHARGE DETERMINATION
AND PUBLICATION.

``(a) Determination.--The Under Secretary for International Trade of
the Department of Commerce shall determine, on a monthly basis, any
export charges (expressed as a percentage of export price) to be
collected by a country of export from exporters of softwood lumber or
softwood lumber products described in section 804(a) in order to ensure
compliance with any international agreement entered into by that country
and the United States.
``(b) [NOTE: Web site.]  Publication.--The Under Secretary for
International Trade shall immediately publish any determination made
under subsection (a) on the website of the International Trade
Administration of the Department of Commerce, and in any other manner
the Under Secretary considers appropriate.
``SEC. 806. [NOTE: 19 USC 1683d.]  RECONCILIATION.

``The Secretary of the Treasury shall conduct reconciliations to
ensure the proper implementation and operation of international
agreements entered into between a country of export of softwood lumber
or softwood lumber products described in section 804(a) and the United
States. The Secretary of Treasury shall reconcile the following:
``(1) The export price declared by a United States importer
pursuant to section 803(b)(1) with the export price reported to
the United States by the country of export, if any.
``(2) The export price declared by a United States importer
pursuant to section 803(b)(1) with the revised export price
reported to the United States by the country of export, if any.
``SEC. 807. [NOTE: 19 USC 1683e.]  VERIFICATION.

``(a) In General.--The Secretary of Treasury shall periodically
verify the declarations made by a United States importer pursuant to
section 803(c), including by determining whether--
``(1) the export price declared by a United States importer
pursuant to section 803(b)(1) is the same as the export price
provided on the export permit, if any, issued by the country of
export; and
``(2) the estimated export charge declared by a United
States importer pursuant to section 803(b)(2) is consistent with
the determination published by the Under Secretary for
International Trade pursuant to section 805(b).

``(b) Examination of Books and Records.--
``(1) In general.--Any record relating to the importer
declaration program required under section 803 shall be treated
as a record required to be maintained and produced under title V
of this Act.
``(2) Examination of records.--The Secretary of the Treasury
is authorized to take such action, and examine such

[[Page 1852]]
122 STAT. 1852

records, under section 509 of this Act, as the Secretary
determines necessary to verify the declarations made pursuant to
section 803(c) are true and accurate.
``SEC. 808. [NOTE: 19 USC 1683f.]  PENALTIES.

``(a) In General.--It shall be unlawful for any person to import
into the United States softwood lumber or softwood lumber products in
knowing violation of this title.
``(b) Civil Penalties.--Any person who commits an unlawful act as
set forth in subsection (a) shall be liable for a civil penalty not to
exceed $10,000 for each knowing violation.
``(c) Other Penalties.--In addition to the penalties provided for in
subsection (b), any violation of this title that violates any other
customs law of the United States shall be subject to any applicable
civil and criminal penalty, including seizure and forfeiture, that may
be imposed under such custom law or title 18, United States Code, with
respect to the importation of softwood lumber and softwood lumber
products described in section 804(a).
``(d) Factors To Consider in Assessing Penalties.--In determining
the amount of civil penalties to be assessed under this section,
consideration shall be given to any history of prior violations of this
title by the person, the ability of the person to pay the penalty, the
seriousness of the violation, and such other matters as fairness may
require.
``(e) Notice.--No penalty may be assessed under this section against
a person for violating a provision of this title unless the person is
given notice and opportunity to make statements, both oral and written,
with respect to such violation.
``(f) Exception.--Notwithstanding any other provision of this title,
and without limitation, an importer shall not be found to have violated
subsection 803(c) if--
``(1) the importer made an appropriate inquiry in accordance
with section 803(c)(1) with respect to the declaration;
``(2) the importer produces records maintained pursuant to
section 807(b) that substantiate the declaration; and
``(3) there is not substantial evidence indicating that the
importer knew that the fact to which the importer made the
declaration was false.
``SEC. 809. [NOTE: 19 USC 1683g.]  REPORTS.

``(a) [NOTE: President.]  Semiannual Reports.--Not later than 180
days after the effective date of this title, and every 180 days
thereafter, the President shall submit to the appropriate congressional
committees a report--
``(1) describing the reconciliations conducted under section
806, and the verifications conducted under section 807;
``(2) identifying the manner in which the United States
importers subject to reconciliations conducted under section 806
and verifications conducted under section 807 were chosen;
``(3) identifying any penalties imposed under section 808;
``(4) identifying any patterns of noncompliance with this
title; and
``(5) identifying any problems or obstacles encountered in
the implementation and enforcement of this title.

``(b) Subsidies Reports.--Not later than 180 days after the date of
the enactment of this title, and every 180 days thereafter, the
Secretary of Commerce shall provide to the appropriate congressional
committees a report on any subsidies on softwood lumber

[[Page 1853]]
122 STAT. 1853

or softwood lumber products, including stumpage subsidies, provided by
countries of export.
``(c) GAO Reports.--The Comptroller General of the United States
shall submit the following reports to the appropriate congressional
committees:
``(1) Not later than 18 months after the date of the
enactment of this title, a report on the effectiveness of the
reconciliations conducted under section 806, and verifications
conducted under section 807.
``(2) Not later than 12 months after the date of the
enactment of this title, a report on whether countries that
export softwood lumber or softwood lumber products to the United
States are complying with any international agreements entered
into by those countries and the United States.''.

(b) [NOTE: 19 USC 1683 note.]  Effective Date.--The amendments
made by this section shall take effect on the date that is 60 days after
the date of the enactment of this Act.

TITLE IV--NUTRITION

Subtitle A--Food Stamp Program

PART I--RENAMING OF FOOD STAMP ACT AND PROGRAM

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

(a) Short Title.--The first section of the Food Stamp Act of 1977 (7
U.S.C. 2011 note; Public Law 88-525) is amended by striking ``Food Stamp
Act of 1977'' and inserting ``Food and Nutrition Act of 2008''.
(b) Program.--The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.) (as amended by subsection (a)) is amended by striking ``food stamp
program'' each place it appears and inserting ``supplemental nutrition
assistance program''.
SEC. 4002. CONFORMING AMENDMENTS.

(a) In General.--
(1) Section 4 of the Food and Nutrition Act of 2008 (7
U.S.C. 2013) is amended in the section heading by striking
``food stamp program'' and inserting ``supplemental nutrition
assistance program''.
(2) Section 5(h)(2)(A) of the Food and Nutrition Act of 2008
(7 U.S.C. 2014(h)(2)(A)) is amended by striking ``Food Stamp
Disaster Task Force'' and inserting ``Disaster Task Force''.
(3) Section 6 of the Food and Nutrition Act of 2008 (7
U.S.C. 2015) is amended--
(A) in subsection (d)(3), by striking ``for food
stamps'';
(B) in subsection (j), in the subsection heading, by
striking ``Food Stamp''; and
(C) in subsection (o)--
(i) in paragraph (2), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition
assistance program benefits''; and
(ii) in paragraph (6)--
(I) in subparagraph (A)--

[[Page 1854]]
122 STAT. 1854

(aa) in clause (i), by
striking ``food stamps'' and
inserting ``supplemental
nutrition assistance program
benefits''; and
(bb) in clause (ii)--
(AA) in the matter
preceding subclause (I), by
striking ``a food stamp
recipient'' and inserting
``a member of a household
that receives supplemental
nutrition assistance program
benefits''; and
(BB) by striking ``food
stamp benefits'' each place
it appears and inserting
``supplemental nutrition
assistance program
benefits''; and
(II) in subparagraphs (D) and (E),
by striking ``food stamp recipients''
each place it appears and inserting
``members of households that receive
supplemental nutrition assistance
program benefits''.
(4) Section 7 of the Food and Nutrition Act of 2008 (7
U.S.C. 2016) is amended--
(A) in subsection (i)--
(i) in paragraph (3)(B)(ii), by striking
``food stamp households'' and inserting
``households receiving supplemental nutrition
assistance program benefits''; and
(ii) in paragraph (7), by striking ``food
stamp issuance'' and inserting ``supplemental
nutrition assistance issuance''; and
(B) in subsection (k)--
(i) in paragraph (2), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition
assistance program benefits''; and
(ii) in paragraph (3), by striking ``food
stamp retail'' and inserting ``retail''.
(5) Section 9(b)(1) of that Food and Nutrition Act of 2008
(7 U.S.C. 2018(b)(1)) is amended by striking ``food stamp
households'' and inserting ``households that receive
supplemental nutrition assistance program benefits''.
(6) Section 11 of the Food and Nutrition Act of 2008 (7
U.S.C. 2020) is amended--
(A) in subsection (e)--
(i) by striking ``food stamps'' each place it
appears and inserting ``supplemental nutrition
assistance program benefits'';
(ii) by striking ``food stamp offices'' each
place it appears and inserting ``supplemental
nutrition assistance program offices'';
(iii) by striking ``food stamp office'' each
place it appears and inserting ``supplemental
nutrition assistance program office''; and
(iv) in paragraph (25)--
(I) in the matter preceding
subparagraph (A), by striking
``Simplified Food Stamp Program'' and
inserting ``Simplified Supplemental
Nutrition Assistance Program''; and

[[Page 1855]]
122 STAT. 1855

(II) in subparagraph (A), by
striking ``food stamp benefits'' and
inserting ``supplemental nutrition
assistance program benefits'';
(B) in subsection (k), by striking ``may issue, upon
request by the State agency, food stamps'' and inserting
``may provide, on request by the State agency,
supplemental nutrition assistance program benefits'';
(C) in subsection (l), by striking ``food stamp
participation'' and inserting ``supplemental nutrition
assistance program participation'';
(D) in subsections (q) and (r), in the subsection
headings, by striking ``Food Stamps'' each place it
appears and inserting ``Benefits'';
(E) in subsection (s), by striking ``food stamp
benefits'' each place it appears and inserting
``supplemental nutrition assistance program benefits'';
and
(F) in subsection (t)(1)--
(i) in subparagraph (A), by striking ``food
stamp application'' and inserting ``supplemental
nutrition assistance program application''; and
(ii) in subparagraph (B), by striking ``food
stamp benefits'' and inserting ``supplemental
nutrition assistance program benefits''.
(7) Section 14(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2023(b)) is amended by striking ``food stamp''.
(8) Section 16 of the Food and Nutrition Act of 2008 (7
U.S.C. 2025) is amended--
(A) in subsection (a)(4), by striking ``food stamp
informational activities'' and inserting ``informational
activities relating to the supplemental nutrition
assistance program'';
(B) in subsection (c)(9)(C), by striking ``food
stamp caseload'' and inserting ``the caseload under the
supplemental nutrition assistance program''; and
(C) in subsection (h)(1)(E)(i), by striking ``food
stamp recipients'' and inserting ``members of households
receiving supplemental nutrition assistance program
benefits''.
(9) Section 17 of the Food and Nutrition Act of 2008 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``food stamp
benefits'' each place it appears and inserting
``supplemental nutrition assistance program benefits'';
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A), by striking
``food stamp benefits'' and inserting
``supplemental nutrition assistance
program benefits''; and
(II) in subparagraph (B)--
(aa) in clause (ii)(II), by
striking ``food stamp
recipients'' and inserting
``supplemental nutrition
assistance program recipients'';
(bb) in clause (iii)(I), by
striking ``the State's food
stamp households'' and inserting
``the number of households in
the State receiving supplemental
nutrition assistance program
benefits''; and

[[Page 1856]]
122 STAT. 1856

(cc) in clause (iv)(IV)(bb),
by striking ``food stamp
deductions'' and inserting
``supplemental nutrition
assistance program deductions'';
(ii) in paragraph (2), by striking ``food
stamp benefits'' and inserting ``supplemental
nutrition assistance program benefits''; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by striking
``food stamp employment'' and inserting
``supplemental nutrition assistance
program employment'';
(II) in subparagraph (B), by
striking ``food stamp recipients'' and
inserting ``supplemental nutrition
assistance program recipients'';
(III) in subparagraph (C), by
striking ``food stamps'' and inserting
``supplemental nutrition assistance
program benefits''; and
(IV) in subparagraph (D), by
striking ``food stamp benefits'' and
inserting ``supplemental nutrition
assistance program benefits'';
(C) in subsection (c), by striking ``food stamps''
and inserting ``supplemental nutrition assistance'';
(D) in subsection (d)--
(i) in paragraph (1)(B), by striking ``food
stamp benefits'' and inserting ``supplemental
nutrition assistance program benefits'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by striking
``food stamp allotments'' each place it
appears and inserting ``allotments'';
and
(II) in subparagraph (C)(ii), by
striking ``food stamp benefit'' and
inserting ``supplemental nutrition
assistance program benefits''; and
(iii) in paragraph (3)(E), by striking ``food
stamp benefits'' and inserting ``supplemental
nutrition assistance program benefits'';
(E) in subsections (e) and (f), by striking ``food
stamp benefits'' each place it appears and inserting
``supplemental nutrition assistance program benefits'';
(F) in subsection (g), in the first sentence, by
striking ``receipt of food stamp'' and inserting
``receipt of supplemental nutrition assistance
program''; and
(G) in subsection (j), by striking ``food stamp
agencies'' and inserting ``supplemental nutrition
assistance program agencies''.
(10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking
``food stamps'' and inserting ``supplemental nutrition
assistance program benefits''.
(11) Section 22 of the Food and Nutrition Act of 2008 (7
U.S.C. 2031) is amended--
(A) in the section heading, by striking ``food stamp
portion of minnesota family investment plan'' and
inserting ``minnesota family investment project'';
(B) in subsections (b)(12) and (d)(3), by striking
``the Food Stamp Act, as amended,'' each place it
appears and inserting ``this Act''; and

[[Page 1857]]
122 STAT. 1857

(C) in subsection (g)(1), by striking ``the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.)'' and
inserting ``this Act''.
(12) Section 26 of the Food and Nutrition Act of 2008 (7
U.S.C. 2035) is amended--
(A) in the section heading, by striking ``simplified
food stamp program'' and inserting ``simplified
supplemental nutrition assistance program''; and
(B) in subsection (b), by striking ``simplified food
stamp program'' and inserting ``simplified supplemental
nutrition assistance program''.

(b) Conforming Cross-References.--
(1) In general.--Each provision of law described in
paragraph (2) is amended (as applicable)--
(A) by striking ``food stamp program'' each place it
appears and inserting ``supplemental nutrition
assistance program'';
(B) by striking ``Food Stamp Act of 1977'' each
place it appears and inserting ``Food and Nutrition Act
of 2008'';
(C) by striking ``Food Stamp Act'' each place it
appears and inserting ``Food and Nutrition Act of
2008'';
(D) by striking ``food stamp'' each place it appears
and inserting ``supplemental nutrition assistance
program benefits'';
(E) by striking ``food stamps'' each place it
appears and inserting ``supplemental nutrition
assistance program benefits'';
(F) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``food
stamp act'' each place it appears and inserting ``food
and nutrition act of 2008'';
(G) in each applicable subsection and appropriations
heading, by striking ``Food Stamp Act'' each place it
appears and inserting ``Food and Nutrition Act of
2008'';
(H) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``food stamp act''
each place it appears and inserting ``food and nutrition
act of 2008'';
(I) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``food
stamp program'' each place it appears and inserting
``supplemental nutrition assistance program'';
(J) [NOTE: 7 USC 1421 note; 42 USC 1786.]  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'';

[[Page 1858]]
122 STAT. 1858

(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) [NOTE: 42 USC 1758, 8011.]  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 2016 et seq.]  Title IV of the
Farm Security and Rural Investment Act of 2002 (Public
Law 107-171; 116 Stat. 305).
(D) Section 2 of Public Law 103-205 (7 U.S.C. 2012
note).
(E) Section 807(b) of the Stewart B. McKinney
Homeless Assistance Act (7 U.S.C. 2014 note; Public Law
100-77).
(F) [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: 29 USC 2971 et 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 405 et 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).

[[Page 1859]]
122 STAT. 1859

(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 3012 et 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.).
(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 2011 note.]  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) 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'';

[[Page 1860]]
122 STAT. 1860

(3) by indenting each of paragraphs (2) through (18) so as
to align with the margin of paragraph (1) (as amended by
paragraph (2));
(4) by striking the comma at the end of each of paragraphs
(1) through (16) and inserting a semicolon;
(5) in paragraph (3)--
(A) by striking ``like (A) awarded'' and inserting
``like--
``(A) awarded'';
(B) by striking ``thereof, (B) to'' and inserting
``thereof;
``(B) to''; and
(C) by striking ``program, and (C) to'' and
inserting ``program; and
``(C) to'';
(6) in paragraph (11), by striking ``)), or (B) a'' and
inserting ``)); or
``(B) a'';
(7) in paragraph (17), by striking ``, and'' at the end and
inserting a semicolon;
(8) in paragraph (18), by striking the period at the end and
inserting ``; and''; and
(9) by adding at the end the following:
``(19) any additional payment under chapter 5 of title 37,
United States Code, or otherwise designated by the Secretary to
be appropriate for exclusion under this paragraph, that is
received by or from a member of the United States Armed Forces
deployed to a designated combat zone, if the additional pay--
``(A) is the result of deployment to or service in a
combat zone; and
``(B) was not received immediately prior to serving
in a combat zone.''.
SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME
AMERICANS.

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

[[Page 1861]]
122 STAT. 1861

nearest lower dollar increment to
reflect changes for the 12-month period
ending on the preceding June 30 in the
Consumer Price Index for All Urban
Consumers published by the Bureau of
Labor Statistics of the Department of
Labor, for items other than food.''; and
(3) by adding at the end the following:
``(C) Requirement.--Each adjustment under
subparagraphs (A)(ii)(II) and (B)(ii)(II) shall be based
on the unrounded amount for the prior 12-month
period.''.
SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE EXPENSES.

Section 5(e)(3)(A) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(e)(3)(A)) is amended by striking ``, the maximum allowable level of
which shall be $200 per month for each dependent child under 2 years of
age and $175 per month for each other dependent,''.
SEC. 4104. ASSET INDEXATION, EDUCATION, AND RETIREMENT ACCOUNTS.

(a) Adjusting Countable Resources for Inflation.--Section (5)(g) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is amended--
(1) by striking ``(g)(1) The Secretary'' and inserting the
following:

``(g) Allowable Financial Resources.--
``(1) Total amount.--
``(A) In general.--The Secretary''.
(2) in subparagraph (A) (as so designated by paragraph
(1))--
(A) by inserting ``(as adjusted in accordance with
subparagraph (B))'' after ``$2,000''; and
(B) by inserting ``(as adjusted in accordance with
subparagraph (B))'' after ``$3,000''; and
(3) by adding at the end the following:
``(B) Adjustment for inflation.--
``(i) [NOTE: Effective date.]  In general.--
Beginning on October 1, 2008, and each October 1
thereafter, the amounts specified in subparagraph
(A) shall be adjusted and rounded down to the
nearest $250 increment to reflect changes for the
12-month period ending the preceding June in the
Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the
Department of Labor.
``(ii) Requirement.--Each adjustment under
clause (i) shall be based on the unrounded amount
for the prior 12-month period.''.

(b) Exclusion of Retirement Accounts From Allowable Financial
Resources.--
(1) In general.--Section 5(g)(2)(B)(v) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by
striking ``or retirement account (including an individual
account)'' and inserting ``account''.
(2) Mandatory and discretionary exclusions.--Section 5(g) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is amended
by adding at the end the following:

[[Page 1862]]
122 STAT. 1862

``(7) Exclusion of retirement accounts from allowable
financial resources.--
``(A) Mandatory exclusions.--The Secretary shall
exclude from financial resources under this subsection
the value of--
``(i) any funds in a plan, contract, or
account, described in sections 401(a), 403(a),
403(b), 408, 408A, 457(b), and 501(c)(18) of the
Internal Revenue Code of 1986 and the value of
funds in a Federal Thrift Savings Plan account as
provided in section 8439 of title 5, United States
Code; and
``(ii) any retirement program or account
included in any successor or similar provision
that may be enacted and determined to be exempt
from tax under the Internal Revenue Code of 1986.
``(B) Discretionary exclusions.--The Secretary may
exclude from financial resources under this subsection
the value of any other retirement plans, contracts, or
accounts (as determined by the Secretary).''.

(c) Exclusion of Education Accounts From Allowable Financial
Resources.--Section 5(g) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(g)) (as amended by subsection (b)) is amended by adding at the end
the following:
``(8) Exclusion of education accounts from allowable
financial resources.--
``(A) Mandatory exclusions.--The Secretary shall
exclude from financial resources under this subsection
the value of any funds in a qualified tuition program
described in section 529 of the Internal Revenue Code of
1986 or in a Coverdell education savings account under
section 530 of that Code.
``(B) Discretionary exclusions.--The Secretary may
exclude from financial resources under this subsection
the value of any other education programs, contracts, or
accounts (as determined by the Secretary).''.
SEC. 4105. FACILITATING SIMPLIFIED REPORTING.

Section 6(c)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(c)(1)(A)) is amended--
(1) by striking ``reporting by'' and inserting
``reporting'';
(2) in clause (i), by inserting ``for periods shorter than 4
months by'' before ``migrant'';
(3) in clause (ii), by inserting ``for periods shorter than
4 months by'' before ``households''; and
(4) in clause (iii), by inserting ``for periods shorter than
1 year by'' before ``households''.
SEC. 4106. TRANSITIONAL BENEFITS OPTION.

Section 11(s)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2020(s)(1)) is amended--
(1) by striking ``benefits to a household''; and inserting
``benefits--
``(A) to a household'';
(2) by striking the period at the end and inserting ``;
or''; and
(3) by adding at the end the following:

[[Page 1863]]
122 STAT. 1863

``(B) at the option of the State, to a household
with children that ceases to receive cash assistance
under a State-funded public assistance program.''.
SEC. 4107. INCREASING THE MINIMUM BENEFIT.

Section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
2017(a)) is amended by striking ``$10 per month'' and inserting ``8
percent of the cost of the thrifty food plan for a household containing
1 member, as determined by the Secretary under section 3, rounded to the
nearest whole dollar increment''.
SEC. 4108. EMPLOYMENT, TRAINING, AND JOB RETENTION.

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

PART III--PROGRAM OPERATIONS

SEC. 4111. NUTRITION EDUCATION.

(a) Authority to Provide Nutrition Education.--Section 4(a) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended in the
first sentence by inserting ``and, through an approved State plan,
nutrition education'' after ``an allotment''.
(b) Implementation.--Section 11 of the Food and Nutrition Act of
2008 (7 U.S.C. 2020) is amended by striking subsection (f) and inserting
the following:
``(f) Nutrition Education.--
``(1) In general.--State agencies may implement a nutrition
education program for individuals eligible for program benefits
that promotes healthy food choices consistent with the most
recent Dietary Guidelines for Americans published under section
301 of the National Nutrition Monitoring and Related Research
Act of 1990 (7 U.S.C. 5341).
``(2) Delivery of nutrition education.--State agencies may
deliver nutrition education directly to eligible persons or
through agreements with the National Institute of Food and
Agriculture, including through the expanded food and nutrition
education program under section 3(d) of the Act of May 8, 1914
(7 U.S.C. 343(d)), and other State and community health and
nutrition providers and organizations.
``(3) Nutrition education state plans.--
``(A) In general.--A State agency that elects to
provide nutrition education under this subsection shall
submit a nutrition education State plan to the Secretary
for approval.

[[Page 1864]]
122 STAT. 1864

``(B) Requirements.--The plan shall--
``(i) identify the uses of the funding for
local projects; and
``(ii) conform to standards established by the
Secretary through regulations or guidance.
``(C) Reimbursement.--State costs for providing
nutrition education under this subsection shall be
reimbursed pursuant to section 16(a).
``(4) Notification.--To the maximum extent practicable,
State agencies shall notify applicants, participants, and
eligible program participants of the availability of nutrition
education under this subsection.''.
SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

Section 6(k) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(k)) is amended--
(1) by redesignating paragraphs (1) and (2) as subparagraphs
(A) and (B), respectively, and indenting appropriately;
(2) by striking ``No member'' and inserting the following:
``(1) In general.--No member''; and
(3) by adding at the end the following:
``(2) Procedures.--The Secretary shall--
``(A) define the terms `fleeing' and `actively
seeking' for purposes of this subsection; and
``(B) ensure that State agencies use consistent
procedures established by the Secretary that disqualify
individuals whom law enforcement authorities are
actively seeking for the purpose of holding criminal
proceedings against the individual.''.
SEC. 4113. CLARIFICATION OF SPLIT ISSUANCE.

Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
2016(h)) is amended by striking paragraph (2) and inserting the
following:
``(2) Requirements.--
``(A) In general.--Any procedure established under
paragraph (1) shall--
``(i) not reduce the allotment of any
household for any period; and
``(ii) ensure that no household experiences an
interval between issuances of more than 40 days.
``(B) Multiple issuances.--The procedure may include
issuing benefits to a household in more than 1 issuance
during a month only when a benefit correction is
necessary.''.
SEC. 4114. ACCRUAL OF BENEFITS.

Section 7(i) of the Food and Nutrition Act of 2008 (7 U.S.C.
2016(i)) is amended by adding at the end the following:
``(12) Recovering electronic benefits.--
``(A) [NOTE: Procedures.]  In general.--A State
agency shall establish a procedure for recovering
electronic benefits from the account of a household due
to inactivity.
``(B) [NOTE: Deadline.]  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.

[[Page 1865]]
122 STAT. 1865

``(C) Benefit expunging.--A State agency shall
expunge benefits that have not been accessed by a
household after a period of 12 months.
``(D) Notice.--A State agency shall--
``(i) send notice to a household the benefits
of which are stored under subparagraph (B); and
``(ii) not later than 48 hours after request
by the household, make the stored benefits
available to the household.''.
SEC. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS.

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

``(a) In General.--Except as provided in subsection (i), EBT cards
shall be'';
(2) in subsection (b)--
(A) by striking ``(b) Coupons'' and inserting the
following:

``(b) Use.--Benefits''; and
(B) by striking the second proviso;
(3) in subsection (c)--
(A) by striking ``(c) Coupons'' and inserting the
following:

``(c) Design.--
``(1) In general.--EBT cards'';
(B) in the first sentence, by striking ``and define
their denomination''; and
(C) by striking the second sentence and inserting
the following:
``(2) Prohibition.--The name of any public official shall
not appear on any EBT card.'';
(4) by striking subsection (d);
(5) in subsection (e)--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits''; and
(B) by striking ``coupon issuers'' each place it
appears and inserting ``benefit issuers'';
(6) in subsection (f)--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits'';
(B) by striking ``coupon issuer'' and inserting
``benefit issuers'';
(C) by striking ``including any losses'' and all
that follows through ``section 11(e)(20),''; and
(D) by striking ``and allotments'';
(7) by striking subsection (g) and inserting the following:

``(g) Alternative Benefit Delivery.--
``(1) In general.--If the Secretary determines, in
consultation with the Inspector General of the Department of
Agriculture, that it would improve the integrity of the
supplemental nutrition assistance program, the Secretary shall
require a State agency to issue or deliver benefits using
alternative methods.

[[Page 1866]]
122 STAT. 1866

``(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) [NOTE: Effective dates.]  Devaluation and
termination of issuance of paper coupons.--
``(A) Coupon issuance.--Effective on the date of
enactment of the Food, Conservation, and Energy Act of
2008, no State shall issue any coupon, stamp,
certificate, or authorization card to a household that
receives supplemental nutrition assistance under this
Act.
``(B) Ebt cards.--Effective beginning on the date
that is 1 year after the date of enactment of the Food,
Conservation, and Energy Act of 2008, only an EBT card
issued under subsection (i) shall be eligible for
exchange at any retail food store.
``(C) De-obligation of coupons.--Coupons not
redeemed during the 1-year period beginning on the date
of enactment of the Food, Conservation, and Energy Act
of 2008 shall--
``(i) no longer be an obligation of the
Federal Government; and
``(ii) not be redeemable.'';
(8) in subsection (h)(1), by striking ``coupons'' and
inserting ``benefits'';
(9) in subsection (i), by adding at the end the following:
``(12) Interchange fees.--No interchange fees shall apply to
electronic benefit transfer transactions under this
subsection.'';
(10) in subsection (j)--
(A) in paragraph (2)(A)(ii), by striking ``printing,
shipping, and redeeming coupons'' and inserting
``issuing and redeeming benefits''; and
(B) in paragraph (5), by striking ``coupon'' and
inserting ``benefit'';
(11) in subsection (k)--
(A) by striking ``coupons in the form of'' each
place it appears and inserting ``program benefits in the
form of'';
(B) by striking ``a coupon issued in the form of''
each place it appears and inserting ``program benefits
in the form of''; and
(C) in subparagraph (A), by striking ``subsection
(i)(11)(A)'' and inserting ``subsection (h)(11)(A)'';
and
(12) by redesignating subsections (e) through (k) as
subsections (d) through (j), respectively.

(b) Conforming Amendments.--
(1) Section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012) is amended--
(A) in subsection (a), by striking ``coupons'' and
inserting ``benefits'';
(B) by striking subsection (b) and inserting the
following:

``(b) Benefit.--The term `benefit' means the value of supplemental
nutrition assistance provided to a household by means of--
``(1) an electronic benefit transfer under section 7(i); or

[[Page 1867]]
122 STAT. 1867

``(2) other means of providing assistance, as determined by
the Secretary.'';
(C) in subsection (c), in the first sentence, by
striking ``authorization cards'' and inserting
``benefits'';
(D) in subsection (d), by striking ``or access
device'' and all that follows through the end of the
subsection and inserting a period;
(E) in subsection (e)--
(i) by striking ``(e) `Coupon issuer' means''
and inserting the following:

``(e) Benefit Issuer.--The term `benefit issuer' means''; and
(ii) by striking ``coupons'' and inserting
``benefits'';
(F) in subsection (g)(7), by striking ``subsection
(r)'' and inserting ``subsection (j)'';
(G) in subsection (i)(5)--
(i) in subparagraph (B), by striking
``subsection (r)'' and inserting ``subsection
(j)''; and
(ii) in subparagraph (D), by striking
``coupons'' and inserting ``benefits'';
(H) in subsection (j), by striking ``(as that term
is defined in subsection (p))'';
(I) in subsection (k)--
(i) in paragraph (1)(A), by striking
``subsection (u)(1)'' and inserting ``subsection
(r)(1)'';
(ii) in paragraph (2), by striking
``subsections (g)(3), (4), (5), (7), (8), and (9)
of this section'' and inserting ``paragraphs (3),
(4), (5), (7), (8), and (9) of subsection (k)'';
and
(iii) in paragraph (3), by striking
``subsection (g)(6) of this section'' and
inserting ``subsection (k)(6)'';
(J) in subsection (t), by inserting ``, including
point of sale devices,'' after ``other means of
access'';
(K) in subsection (u), by striking ``(as defined in
subsection (g))'';
(L) by adding at the end the following:

``(v) EBT Card.--The term `EBT card' means an electronic benefit
transfer card issued under section 7(i).''; and
(M) by redesignating subsections (a) through (v) as
subsections (b), (d), (f), (g), (e), (h), (k), (l), (n),
(o), (p), (q), (s), (t), (u), (v), (c), (j), (m), (a),
(r), and (i), respectively, and moving the subsections
so as to appear in alphabetical order.
(2) Section 4(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(a)) is amended--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits''; and
(B) by striking ``Coupons issued'' and inserting
``benefits issued''.
(3) Section 5 of the Food and Nutrition Act of 2008 (7
U.S.C. 2014) is amended--
(A) in subsection (a), by striking ``section
3(i)(4)'' and inserting ``section 3(n)(4)'';
(B) in subsection (h)(3)(B), in the second sentence,
by striking ``section 7(i)'' and inserting ``section
7(h)''; and
(C) in subsection (i)(2)(E), by striking ``, as
defined in section 3(i) of this Act,''.

[[Page 1868]]
122 STAT. 1868

(4) Section 6 of the Food and Nutrition Act of 2008 (7
U.S.C. 2015) is amended--
(A) in subsection (b)(1)--
(i) in subparagraph (B), by striking ``coupons
or authorization cards'' and inserting ``program
benefits''; and
(ii) by striking ``coupons'' each place it
appears and inserting ``benefits''; and
(B) in subsection (d)(4)(L), by striking ``section
11(e)(22)'' and inserting ``section 11(e)(19)''.
(5) Section 8 of the Food and Nutrition Act of 2008 (7
U.S.C. 2017) is amended--
(A) in subsection (b), by striking ``, whether
through coupons, access devices, or otherwise''; and
(B) in subsections (e)(1) and (f), by striking
``section 3(i)(5)'' each place it appears and inserting
``section 3(n)(5)''.
(6) Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) is amended--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits'';
(B) in subsection (a)--
(i) in paragraph (1), by striking ``coupon
business'' and inserting ``benefit transactions'';
and
(ii) by striking paragraph (3) and inserting
the following:
``(3) Authorization periods.--The Secretary shall establish
specific time periods during which authorization to accept and
redeem benefits shall be valid under the supplemental nutrition
assistance program.''; and
(C) in subsection (g), by striking ``section
3(g)(9)'' and inserting ``section 3(k)(9)''.
(7) Section 10 of the Food and Nutrition Act of 2008 (7
U.S.C. 2019) is amended--
(A) by striking the section designation and heading
and all that follows through ``Regulations'' and
inserting the following:
``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.

``Regulations'';
(B) by striking ``section 3(k)(4) of this Act'' and
inserting ``section 3(p)(4)'';
(C) by striking ``section 7(i)'' and inserting
``section 7(h)''; and
(D) by striking ``coupons'' each place it appears
and inserting ``benefits''.
(8) Section 11 of the Food and Nutrition Act of 2008 (7
U.S.C. 2020) is amended--
(A) in subsection (d)--
(i) by striking ``section 3(n)(1) of this
Act'' each place it appears and inserting
``section 3(t)(1)''; and
(ii) by striking ``section 3(n)(2) of this
Act'' each place it appears and inserting
``section 3(t)(2)'';
(B) in subsection (e)--
(i) in paragraph (8)(E), by striking
``paragraph (16) or (20)(B)'' and inserting
``paragraph (15) or (18)(B)'';
(ii) by striking paragraphs (15) and (19);

[[Page 1869]]
122 STAT. 1869

(iii) by redesignating paragraphs (16) through
(18) and (20) through (25) as paragraphs (15)
through (17) and (18) through (23), respectively;
and
(iv) in paragraph (17) (as so redesignated),
by striking ``(described in section 3(n)(1) of
this Act)'' and inserting ``described in section
3(t)(1)'';
(C) in subsection (h), by striking ``coupon or
coupons'' and inserting ``benefits'';
(D) by striking ``coupon'' each place it appears and
inserting ``benefit'';
(E) by striking ``coupons'' each place it appears
and inserting ``benefits''; and
(F) in subsection (q), by striking ``section
11(e)(20)(B)'' and inserting ``subsection (e)(18)(B)''.
(9) Section 13 of the Food and Nutrition Act of 2008 (7
U.S.C. 2022) is amended by striking ``coupons'' each place it
appears and inserting ``benefits''.
(10) Section 15 of the Food and Nutrition Act of 2008 (7
U.S.C. 2024) is amended--
(A) in subsection (a), by striking ``coupons'' and
inserting ``benefits'';
(B) in subsection (b)(1)--
(i) by striking ``coupons, authorization
cards, or access devices'' each place it appears
and inserting ``benefits'';
(ii) by striking ``coupons or authorization
cards'' and inserting ``benefits''; and
(iii) by striking ``access device'' each place
it appears and inserting ``benefit'';
(C) in subsection (c), by striking ``coupons'' each
place it appears and inserting ``benefits'';
(D) in subsection (d), by striking ``Coupons'' and
inserting ``Benefits'';
(E) by striking subsections (e) and (f);
(F) by redesignating subsections (g) and (h) as
subsections (e) and (f), respectively; and
(G) in subsection (e) (as so redesignated), by
striking ``coupon, authorization cards or access
devices'' and inserting ``benefits''.
(11) Section 16(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(a)) is amended by striking ``coupons'' each place it
appears and inserting ``benefits''.
(12) Section 17 of the Food and Nutrition Act of 2008 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``coupon'' and
inserting ``benefit'';
(B) in subsection (b)(1)--
(i) in subparagraph (B)--
(I) in clause (iv)--
(aa) in subclause (I),
inserting ``or otherwise
providing benefits in a form not
restricted to the purchase of
food'' after ``of cash'';
(bb) in subclause (III)(aa),
by striking ``section 3(i)'' and
inserting ``section 3(n)''; and
(cc) in subclause (VII), by
striking ``section 7(j)'' and
inserting ``section 7(i)''; and
(II) in clause (v)--

[[Page 1870]]
122 STAT. 1870

(aa) by striking
``countersigned food coupons or
similar''; and
(bb) by striking ``food
coupons'' and inserting ``EBT
cards''; and
(ii) in subparagraph (C)(i)(I), by striking
``coupons'' and inserting ``EBT cards'';
(C) in subsection (f), by striking ``section
7(g)(2)'' and inserting ``section 7(f)(2)''; and
(D) in subsection (j), by striking ``coupon'' and
inserting ``benefit''.
(13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking
``section 3(o)(4)'' and inserting ``section 3(u)(4)''.
(14) Section 21 of the Food and Nutrition Act of 2008 (7
U.S.C. 2030) is repealed.
(15) Section 22 of the Food and Nutrition Act of 2008 (7
U.S.C. 2031) is amended--
(A) by striking ``food coupons'' each place it
appears and inserting ``benefits'';
(B) by striking ``coupons'' each place it appears
and inserting ``benefits''; and
(C) in subsection (g)(1)(A), by striking ``coupon''
and inserting ``benefits''.
(16) Section 26(f)(3) of the Food and Nutrition Act of 2008
(7 U.S.C. 2035(f)(3)) is amended--
(A) in subparagraph (A), by striking ``subsections
(a) through (g)'' and inserting ``subsections (a)
through (f)''; and
(B) in subparagraph (E), by striking ``(16), (18),
(20), (24), and (25)'' and inserting ``(15), (17), (18),
(22), and (23)''.

(c) Conforming Cross-References.--
(1) In general.--
(A) Use of terms.--Each provision of law described
in subparagraph (B) is amended (as applicable)--
(i) [NOTE: 7 USC 2012 note; 18 USC 1956; 42
USC 411, 503, 8011. 42 USC 1382e note, 5179.]  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) [NOTE: 42 USC 5179.]  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) [NOTE: 42 USC 1382e note.]  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.).

[[Page 1871]]
122 STAT. 1871

(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--
(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:

[[Page 1872]]
122 STAT. 1872

``SEC. 11. ADMINISTRATION.

``(a) State Responsibility.--
``(1) In general.--The State agency of each participating
State shall have responsibility for certifying applicant
households and issuing EBT cards.
``(2) Local administration.--The responsibility of the
agency of the State government shall not be affected by whether
the program is operated on a State-administered or county-
administered basis, as provided under section 3(t)(1).
``(3) Records.--
``(A) In general.--Each State agency shall keep such
records as may be necessary to determine whether the
program is being conducted in compliance with this Act
(including regulations issued under this Act).
``(B) Inspection and audit.--Records described in
subparagraph (A) shall--
``(i) be available for inspection and audit at
any reasonable time;
``(ii) subject to subsection (e)(8), be
available for review in any action filed by a
household to enforce any provision of this Act
(including regulations issued under this Act); and
``(iii) be preserved for such period of not
less than 3 years as may be specified in
regulations.
``(4) Review of major changes in program design.--
``(A) In general.--The Secretary shall develop
standards for identifying major changes in the
operations of a State agency, including--
``(i) large or substantially-increased numbers
of low-income households that do not live in
reasonable proximity to an office performing the
major functions described in subsection (e);
``(ii) substantial increases in reliance on
automated systems for the performance of
responsibilities previously performed by personnel
described in subsection (e)(6)(B);
``(iii) changes that potentially increase the
difficulty of reporting information under
subsection (e) or section 6(c); and
``(iv) changes that may disproportionately
increase the burdens on any of the types of
households described in subsection (e)(2)(A).
``(B) Notification.--If a State agency implements a
major change in operations, the State agency shall--
``(i) notify the Secretary; and
``(ii) collect such information as the
Secretary shall require to identify and correct
any adverse effects on program integrity or
access, including access by any of the types of
households described in subsection (e)(2)(A).''.
SEC. 4117. CIVIL RIGHTS COMPLIANCE.

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is
amended by striking subsection (c) and inserting the following:
``(c) Civil Rights Compliance.--

[[Page 1873]]
122 STAT. 1873

``(1) In general.--In the certification of applicant
households for the supplemental nutrition assistance program,
there shall be no discrimination by reason of race, sex,
religious creed, national origin, or political affiliation.
``(2) Relation to other laws.--The administration of the
program by a State agency shall be consistent with the rights of
households under the following laws (including implementing
regulations):
``(A) The Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.).
``(B) Section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794).
``(C) The Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.).
``(D) Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.).''.
SEC. 4118. CODIFICATION OF ACCESS RULES.

Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2020(e)(1)) is amended--
(1) by striking ``shall (A) at'' and inserting ``shall--
``(A) at''; and
(2) by striking ``and (B) use'' and inserting ``and
``(B) comply with regulations of the Secretary
requiring the use of''.
SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE.

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

[[Page 1874]]
122 STAT. 1874

member provides verbal assent considered
as the date of application for all
purposes; and
``(VII) comply with such other
standards as the Secretary may
establish.''.
SEC. 4120. PRIVACY PROTECTIONS.

Section 11(e)(8) of the Food and Nutrition Act of 2008 (7 U.S.C.
2020(e)(8)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``limit'' and inserting
``prohibit''; and
(B) by striking ``to persons'' and all that follows
through ``State programs'';
(2) by redesignating subparagraphs (A) through (E) as
subparagraphs (B) through (F), respectively;
(3) by inserting before subparagraph (B) (as so
redesignated) the following:
``(A) the safeguards shall permit--
``(i) the disclosure of such information to
persons directly connected with the administration
or enforcement of the provisions of this Act,
regulations issued pursuant to this Act, Federal
assistance programs, or federally-assisted State
programs; and
``(ii) the subsequent use of the information
by persons described in clause (i) only for such
administration or enforcement;''; and
(4) in subparagraph (F) (as so redesignated) by inserting
``or subsection (u)'' before the semicolon at the end.
SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is
amended by striking subsection (g) and inserting the following:
``(g) Cost Sharing for Computerization.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the Secretary is authorized to pay to each State agency the
amount provided under subsection (a)(6) for the costs incurred
by the State agency in the planning, design, development, or
installation of 1 or more automatic data processing and
information retrieval systems that the Secretary determines--
``(A) would assist in meeting the requirements of
this Act;
``(B) meet such conditions as the Secretary
prescribes;
``(C) are likely to provide more efficient and
effective administration of the supplemental nutrition
assistance program;
``(D) would be compatible with other systems used in
the administration of State programs, including the
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.);
``(E) would be tested adequately before and after
implementation, including through pilot projects in
limited areas for major systems changes as determined
under rules promulgated by the Secretary, data from
which shall be thoroughly evaluated before the Secretary
approves the system to be implemented more broadly; and
``(F) would be operated in accordance with an
adequate plan for--

[[Page 1875]]
122 STAT. 1875

``(i) continuous updating to reflect changed
policy and circumstances; and
``(ii) testing the effect of the system on
access for eligible households and on payment
accuracy.
``(2) Limitation.--The Secretary shall not make payments to
a State agency under paragraph (1) to the extent that the State
agency--
``(A) is reimbursed for the costs under any other
Federal program; or
``(B) uses the systems for purposes not connected
with the supplemental nutrition assistance program.''.
SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

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

PART IV--PROGRAM INTEGRITY

SEC. 4131. [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--

[[Page 1876]]
122 STAT. 1876

``(A) disqualified for a specified period of time
from further participation in the supplemental nutrition
assistance program;
``(B) assessed a civil penalty of up to $100,000 for
each violation; or
``(C) both.
``(2) Regulations.--Regulations promulgated under this Act
shall provide criteria for the finding of a violation of, the
suspension or disqualification of and the assessment of a civil
penalty against a retail food store or wholesale food concern on
the basis of evidence that may include facts established through
on-site investigations, inconsistent redemption data, or
evidence obtained through a transaction report under an
electronic benefit transfer system.'';
(2) in subsection (b)--
(A) by striking ``(b) Disqualification'' and
inserting the following:

``(b) Period of Disqualification.--Subject to subsection (c), a
disqualification'';
(B) in paragraph (1), by striking ``of no less than
six months nor more than five years'' and inserting
``not to exceed 5 years'';
(C) in paragraph (2), by striking ``of no less than
twelve months nor more than ten years'' and inserting
``not to exceed 10 years'';
(D) in paragraph (3)(B)--
(i) by inserting ``or a finding of the
unauthorized redemption, use, transfer,
acquisition, alteration, or possession of EBT
cards'' after ``concern'' the first place it
appears; and
(ii) by striking ``civil money penalties'' and
inserting ``civil penalties''; and
(E) by striking ``civil money penalty'' each place
it appears and inserting ``civil penalty'';
(3) in subsection (c)--
(A) by striking ``(c) The action'' and inserting the
following:

``(c) Civil Penalty and Review of Disqualification and Penalty
Determinations.--
``(1) Civil penalty.--In addition to a disqualification
under this section, the Secretary may assess a civil penalty in
an amount not to exceed $100,000 for each violation.
``(2) Review.--The action''; and
(B) in paragraph (2) (as designated by subparagraph
(A)), by striking ``civil money penalty'' and inserting
``civil penalty'';
(4) in subsection (d)--
(A) by striking ``(d)'' and all that follows through
``. The Secretary shall'' and inserting the following:

``(d) Conditions of Authorization.--
``(1) In general.--As a condition of authorization to accept
and redeem benefits, the Secretary may require a retail food
store or wholesale food concern that, pursuant to subsection
(a), has been disqualified for more than 180 days, or has been
subjected to a civil penalty in lieu of a disqualification
period of more than 180 days, to furnish a collateral bond or
irrevocable letter of credit for a period of not more than 5
years

[[Page 1877]]
122 STAT. 1877

to cover the value of benefits that the store or concern may in
the future accept and redeem in violation of this Act.
``(2) Collateral.--The Secretary also may require a retail
food store or wholesale food concern that has been sanctioned
for a violation and incurs a subsequent sanction regardless of
the length of the disqualification period to submit a collateral
bond or irrevocable letter of credit.
``(3) Bond requirements.--The Secretary shall'';
(B) by striking ``If the Secretary finds'' and
inserting the following
``(4) Forfeiture.--If the Secretary finds''; and
(C) by striking ``Such store or concern'' and
inserting the following:
``(5) Hearing.--A store or concern described in paragraph
(4)'';
(5) in subsection (e), by striking ``civil money penalty''
each place it appears and inserting ``civil penalty''; and
(6) by adding at the end the following:

``(h) Flagrant Violations.--
``(1) [NOTE: Procedures.]  In general.--The Secretary, in
consultation with the Inspector General of the Department of
Agriculture, shall establish procedures under which the
processing of program benefit redemptions for a retail food
store or wholesale food concern may be immediately suspended
pending administrative action to disqualify the retail food
store or wholesale food concern.
``(2) Requirements.--Under the procedures described in
paragraph (1), if the Secretary, in consultation with the
Inspector General, determines that a retail food store or
wholesale food concern is engaged in flagrant violations of this
Act (including regulations promulgated under this Act),
unsettled program benefits that have been redeemed by the retail
food store or wholesale food concern--
``(A) may be suspended; and
``(B)(i) if the program disqualification is upheld,
may be subject to forfeiture pursuant to section 15(g);
or
``(ii) if the program disqualification is not
upheld, shall be released to the retail food store or
wholesale food concern.
``(3) No liability for interest.--The Secretary shall not be
liable for the value of any interest on funds suspended under
this subsection.''.
SEC. 4133. MAJOR SYSTEMS FAILURES.

Section 13(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
2022(b)) is amended by adding at the end the following:
``(5) Overissuances caused by systemic state errors.--
``(A) In general.--If the Secretary determines that
a State agency overissued benefits to a substantial
number of households in a fiscal year as a result of a
major systemic error by the State agency, as defined by
the Secretary, the Secretary may prohibit the State
agency from collecting these overissuances from some or
all households.
``(B) Procedures.--
``(i) Information reporting by states.--Every
State agency shall provide to the Secretary all
information requested by the Secretary concerning
the issuance

[[Page 1878]]
122 STAT. 1878

of benefits to households by the State agency in
the applicable fiscal year.
``(ii) Final determination.--After reviewing
relevant information provided by a State agency,
the Secretary shall make a final determination--
``(I) whether the State agency
overissued benefits to a substantial
number of households as a result of a
systemic error in the applicable fiscal
year; and
``(II) as to the amount of the
overissuance in the applicable fiscal
year for which the State agency is
liable.
``(iii) Establishing a claim.--Upon
determining under clause (ii) that a State agency
has overissued benefits to households due to a
major systemic error determined under subparagraph
(A), the Secretary shall establish a claim against
the State agency equal to the value of the
overissuance caused by the systemic error.
``(iv) [NOTE: Applicability.]
Administrative and judicial review.--
Administrative and judicial review, as provided in
section 14, shall apply to the final
determinations by the Secretary under clause (ii).
``(v) Remission to the secretary.--
``(I) Determination not appealed.--
If the determination of the Secretary
under clause (ii) is not appealed, the
State agency shall, as soon as
practicable, remit to the Secretary the
dollar amount specified in the claim
under clause (iii).
``(II) Determination appealed.--If
the determination of the Secretary under
clause (ii) is appealed, upon completion
of administrative and judicial review
under clause (iv), and a finding of
liability on the part of the State, the
appealing State agency shall, as soon as
practicable, remit to the Secretary a
dollar amount subject to the finding
made in the administrative and judicial
review.
``(vi) Alternative method of collection.--
``(I) In general.--If a State agency
fails to make a payment under clause (v)
within a reasonable period of time, as
determined by the Secretary, the
Secretary may reduce any amount due to
the State agency under any other
provision of this Act by the amount due.
``(II) Accrual of interest.--During
the period of time determined by the
Secretary to be reasonable under
subclause (I), interest in the amount
owed shall not accrue.
``(vii) Limitation.--Any liability amount
established under section 16(c)(1)(C) shall be
reduced by the amount of the claim established
under this subparagraph.''.

[[Page 1879]]
122 STAT. 1879

PART V--MISCELLANEOUS

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

Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is
amended by adding at the end the following:
``(k) Pilot Projects to Evaluate Health and Nutrition Promotion in
the Supplemental Nutrition Assistance Program.--
``(1) In general.--The Secretary shall carry out, under such
terms and conditions as the Secretary considers to be
appropriate, pilot projects to develop and test methods--
``(A) of using the supplemental nutrition assistance
program to improve the dietary and health status of
households eligible for or participating in the
supplemental nutrition assistance program; and
``(B) to reduce overweight, obesity (including
childhood obesity), and associated co-morbidities in the
United States.
``(2) Grants.--
``(A) In general.--In carrying out this subsection,
the Secretary may enter into competitively awarded
contracts or cooperative agreements with, or provide
grants to, public or private organizations or agencies
(as defined by the Secretary), for use in accordance
with projects that meet the strategy goals of this
subsection.
``(B) Application.--To be eligible to receive a
contract, cooperative agreement, or grant under this
paragraph, an organization shall submit to the Secretary
an application at such time, in such manner, and
containing such information as the Secretary may
require.
``(C) Selection criteria.--Pilot projects shall be
evaluated against publicly disseminated criteria that
may include--
``(i) identification of a low-income target
audience that corresponds to individuals living in
households with incomes at or below 185 percent of
the poverty level;
``(ii) incorporation of a scientifically based
strategy that is designed to improve diet quality
through more healthful food purchases,
preparation, or consumption;
``(iii) a commitment to a pilot project that
allows for a rigorous outcome evaluation,
including data collection;
``(iv) strategies to improve the nutritional
value of food served during school hours and
during after-school hours;
``(v) innovative ways to provide significant
improvement to the health and wellness of
children;
``(vi) other criteria, as determined by the
Secretary.
``(D) Use of funds.--Funds provided under this
paragraph shall not be used for any project that limits
the use of benefits under this Act.
``(3) Projects.--Pilot projects carried out under paragraph
(1) may include projects to determine whether healthier food

[[Page 1880]]
122 STAT. 1880

purchases by and healthier diets among households participating
in the supplemental nutrition assistance program result from
projects that--
``(A) increase the supplemental nutrition assistance
purchasing power of the participating households by
providing increased supplemental nutrition assistance
program benefit allotments to the participating
households;
``(B) increase access to farmers markets by
participating households through the electronic
redemption of supplemental nutrition assistance program
benefits at farmers' markets;
``(C) provide incentives to authorized supplemental
nutrition assistance program retailers to increase the
availability of healthy foods to participating
households;
``(D) subject authorized supplemental nutrition
assistance program retailers to stricter retailer
requirements with respect to carrying and stocking
healthful foods;
``(E) provide incentives at the point of purchase to
encourage households participating in the supplemental
nutrition assistance program to purchase fruits,
vegetables, or other healthful foods; or
``(F) provide to participating households integrated
communication and education programs, including the
provision of funding for a portion of a school-based
nutrition coordinator to implement a broad nutrition
action plan and parent nutrition education programs in
elementary schools, separately or in combination with
pilot projects carried out under subparagraphs (A)
through (E).
``(4) Evaluation and reporting.--
``(A) Evaluation.--
``(i) Independent evaluation.--
``(I) In general.--The Secretary
shall provide for an independent
evaluation of projects selected under
this subsection that measures the impact
of the pilot program on health and
nutrition as described in paragraph (1).
``(II) Requirement.--The independent
evaluation under subclause (I) shall use
rigorous methodologies, particularly
random assignment or other methods that
are capable of producing scientifically
valid information regarding which
activities are effective.
``(ii) Costs.--The Secretary may use funds
provided to carry out this section to pay costs
associated with monitoring and evaluating each
pilot project.
``(B) Reporting.--Not later than 90 days after the
last day of fiscal year 2009 and each fiscal year
thereafter until the completion of the last evaluation
under subparagraph (A), the Secretary shall submit to
the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
includes a description of--
``(i) the status of each pilot project;
``(ii) the results of the evaluation completed
during the previous fiscal year; and
``(iii) to the maximum extent practicable--

[[Page 1881]]
122 STAT. 1881

``(I) the impact of the pilot
project on appropriate health,
nutrition, and associated behavioral
outcomes among households participating
in the pilot project;
``(II) baseline information relevant
to the stated goals and desired outcomes
of the pilot project; and
``(III) equivalent information about
similar or identical measures among
control or comparison groups that did
not participate in the pilot project.
``(C) Public dissemination.--In addition to the
reporting requirements under subparagraph (B),
evaluation results shall be shared broadly to inform
policy makers, service providers, other partners, and
the public in order to promote wide use of successful
strategies.
``(5) Funding.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2008
through 2012.
``(B) Mandatory funding.--Out of any funds made
available under section 18, on October 1, 2008, the
Secretary shall make available $20,000,000 to carry out
a project described in paragraph (3)(E), to remain
available until expended.''.
SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL NUTRITION
ASSISTANCE FOR PUERTO RICO.

(a) In General.--The Secretary shall carry out a study of the
feasibility and effects of including the Commonwealth of Puerto Rico in
the definition of the term ``State'' under section 3 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012), in lieu of providing block grants
under section 19 of that Act (7 U.S.C. 2028).
(b) Inclusions.--The study shall include--
(1) an assessment of the administrative, financial
management, and other changes that would be necessary for the
Commonwealth to establish a comparable supplemental nutrition
assistance program, including compliance with appropriate
program rules under the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.), such as--
(A) benefit levels under section 3(u) of that Act (7
U.S.C. 2012(u));
(B) income eligibility standards under sections 5(c)
and 6 of that Act (7 U.S.C. 2014(c), 2015); and
(C) deduction levels under section 5(e) of that Act
(7 U.S.C. 2014(e));
(2) an estimate of the impact on Federal and Commonwealth
benefit and administrative costs;
(3) an assessment of the impact of the program on low-income
Puerto Ricans, as compared to the program under section 19 of
that Act (7 U.S.C. 2028); and
(4) such other matters as the Secretary considers to be
appropriate.

(c) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on

[[Page 1882]]
122 STAT. 1882

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 -
(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

[[Page 1883]]
122 STAT. 1883

(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
``(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.''.

[[Page 1884]]
122 STAT. 1884

PART II--FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS

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

(a) In General.--Section 4 of the Food and Nutrition Act of 2008 (7
U.S.C. 2013) is amended by striking subsection (b) and inserting the
following:
``(b) Food Distribution Program on Indian Reservations.--
``(1) In general.--Distribution of commodities, with or
without the supplemental nutrition assistance program, shall be
made whenever a request for concurrent or separate food program
operations, respectively, is made by a tribal organization.
``(2) Administration.--
``(A) In general.--Subject to subparagraphs (B) and
(C), in the event of distribution on all or part of an
Indian reservation, the appropriate agency of the State
government in the area involved shall be responsible for
the distribution.
``(B) Administration by tribal organization.--If the
Secretary determines that a tribal organization is
capable of effectively and efficiently administering a
distribution described in paragraph (1), then the tribal
organization shall administer the distribution.
``(C) Prohibition.--The Secretary shall not approve
any plan for a distribution described in paragraph (1)
that permits any household on any Indian reservation to
participate simultaneously in the supplemental nutrition
assistance program and the program established under
this subsection.
``(3) Disqualified participants.--An individual who is
disqualified from participation in the food distribution program
on Indian reservations under this subsection is not eligible to
participate in the supplemental nutrition assistance program
under this Act for a period of time to be determined by the
Secretary.
``(4) Administrative costs.--The Secretary is authorized to
pay such amounts for administrative costs and distribution costs
on Indian reservations as the Secretary finds necessary for
effective administration of such distribution by a State agency
or tribal organization.
``(5) Bison meat.--Subject to the availability of
appropriations to carry out this paragraph, the Secretary may
purchase bison meat for recipients of food distributed under
this subsection, including bison meat from--
``(A) Native American bison producers; and
``(B) producer-owned cooperatives of bison ranchers.
``(6) Traditional and locally-grown food fund.--
``(A) In general.--Subject to the availability of
appropriations, the Secretary shall establish a fund for
use in purchasing traditional and locally-grown foods
for recipients of food distributed under this
subsection.
``(B) Native american producers.--Where practicable,
of the food provided under subparagraph (A), at

[[Page 1885]]
122 STAT. 1885

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 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.

[[Page 1886]]
122 STAT. 1886

PART III--COMMODITY SUPPLEMENTAL FOOD PROGRAM

SEC. 4221. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

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

PART IV--SENIOR FARMERS' MARKET NUTRITION PROGRAM

SEC. 4231. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

Section 4402 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 3007) is amended--
(1) in subsection (b)(1), by inserting ``honey,'' after
``vegetables,'';
(2) by striking subsection (c) and inserting the following:

``(c) Exclusion of Benefits in Determining Eligibility for Other
Programs.--The value of any benefit provided to any eligible seniors
farmers' market nutrition program recipient under this section shall not
be considered to be income or resources for any purposes under any
Federal, State, or local law.''; and
(3) by adding at the end the following:

``(d) Prohibition on Collection of Sales Tax.--Each State shall
ensure that no State or local tax is collected within the State on a
purchase of food with a benefit distributed under the seniors farmers'
market nutrition program.
``(e) Regulations.--The Secretary may promulgate such regulations as
the Secretary considers to be necessary to carry out the seniors
farmers' market nutrition program.''.

Subtitle C--Child Nutrition and Related Programs

SEC. 4301. [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--

[[Page 1887]]
122 STAT. 1887

(1) an estimate of the number of school-aged children, by
State, who were members of a household receiving program
benefits at any time in July, August, or September of the prior
year;
(2) an estimate of the number of school-aged children, by
State, who were directly certified as eligible for free lunches
under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.), based on receipt of program benefits, as
of October 1 of the prior year; and
(3) an estimate of the number of school-aged children, by
State, who were members of a household receiving program
benefits at any time in July, August, or September of the prior
year who were not candidates for direct certification because on
October 1 of the prior year the children attended a school
operating under the special assistance provisions of section
11(a)(1) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1759a(a)(1)) that is not operating in a base year.

(c) Performance Innovations.--The report of the Secretary shall
describe best practices from States with the best performance or the
most improved performance from the previous year.
SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS.

Section 9(j) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1758(j)) is amended to read as follows:
``(j) Purchases of Locally Produced Foods.--The Secretary shall--
``(1) encourage institutions receiving funds under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to
purchase unprocessed agricultural products, both locally grown
and locally raised, to the maximum extent practicable and
appropriate;
``(2) [NOTE: Web site.]  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:

[[Page 1888]]
122 STAT. 1888

``(i) Eligible program.--The term `eligible
program' means--
``(I) a school-based program with
hands-on vegetable gardening and
nutrition education that is incorporated
into the curriculum for 1 or more grades
at 2 or more eligible schools; or
``(II) a community-based summer
program with hands-on vegetable
gardening and nutrition education that
is part of, or coordinated with, a
summer enrichment program at 2 or more
eligible schools.
``(ii) Eligible school.--The term `eligible
school' means a public school, at least 50 percent
of the students of which are eligible for free or
reduced price meals under this Act.
``(B) Establishment.--The Secretary shall carry out
a pilot program under which the Secretary shall provide
to nonprofit organizations or public entities in not
more than 5 States grants to develop and run, through
eligible programs, community gardens at eligible schools
in the States that would--
``(i) be planted, cared for, and harvested by
students at the eligible schools; and
``(ii) teach the students participating in the
community gardens about agriculture production
practices and diet.
``(C) Priority states.--Of the States in which
grantees under this paragraph are located--
``(i) at least 1 State shall be among the 15
largest States, as determined by the Secretary;
``(ii) at least 1 State shall be among the
16th to 30th largest States, as determined by the
Secretary; and
``(iii) at least 1 State shall be a State that
is not described in clause (i) or (ii).
``(D) Use of produce.--Produce from a community
garden provided a grant under this paragraph may be--
``(i) used to supplement food provided at the
eligible school;
``(ii) distributed to students to bring home
to the families of the students; or
``(iii) donated to a local food bank or senior
center nutrition program.
``(E) No cost-sharing requirement.--A nonprofit
organization or public entity that receives a grant
under this paragraph shall not be required to share the
cost of carrying out the activities assisted under this
paragraph.
``(F) Evaluation.--A nonprofit organization or
public entity that receives a grant under this paragraph
shall be required to cooperate in an evaluation in
accordance with paragraph (1)(H).''.
SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM.

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

[[Page 1889]]
122 STAT. 1889

``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.--
``(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

[[Page 1890]]
122 STAT. 1890

``(iv) such other information as may be
requested by the Secretary; and
``(E) encourage applicants to submit a plan for
implementation of the program that includes a
partnership with 1 or more entities that will provide
non-Federal resources (including entities representing
the fruit and vegetable industry).
``(2) Exception.--Clause (i) of paragraph (1)(A) shall not
apply to a State if all schools that meet the requirements of
that clause have been selected and the State does not have a
sufficient number of additional schools that meet the
requirement of that clause.
``(3) Outreach to low-income schools.--
``(A) In general.--Prior to making decisions
regarding school participation in the program, a State
agency shall inform the schools within the State with
the highest proportion of free and reduced price meal
eligibility, including Native American schools, of the
eligibility of the schools for the program with respect
to priority granted to schools with the highest
proportion of free and reduced price eligibility under
paragraph (1)(B).
``(B) Requirement.--In providing information to
schools in accordance with subparagraph (A), a State
agency shall inform the schools that would likely be
chosen to participate in the program under paragraph
(1)(B).

``(e) Notice of Availability.--If selected to participate in the
program, a school shall widely publicize within the school the
availability of free fresh fruits and vegetables under the program.
``(f) Per-Student Grant.--The per-student grant provided to a school
under this section shall be--
``(1) determined by a State agency; and
``(2) not less than $50, nor more than $75.

``(g) Limitation.--To the maximum extent practicable, each State
agency shall ensure that in making the fruits and vegetables provided
under this section available to students, schools offer the fruits and
vegetables separately from meals otherwise provided at the school under
this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
``(h) Evaluation and Reports.--
``(1) In general.--The Secretary shall conduct an evaluation
of the program, including a determination as to whether children
experienced, as a result of participating in the program--
``(A) increased consumption of fruits and
vegetables;
``(B) other dietary changes, such as decreased
consumption of less nutritious foods; and
``(C) such other outcomes as are considered
appropriate by the Secretary.
``(2) Report.--Not later than September 30, 2011, the
Secretary shall submit to the Committee on Education and Labor
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report that
describes the results of the evaluation under paragraph (1).

``(i) Funding.--
``(1) In general.--Out of the funds made available under
subsection (b)(2)(A) of section 14222 of the Food, Conservation,

[[Page 1891]]
122 STAT. 1891

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, 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.]  Transition of existing
schools.--

[[Page 1892]]
122 STAT. 1892

(A) [NOTE: Waiver authority.]  Existing secondary
schools.--Section 19(d)(1)(C) of the Richard B. Russell
National School Lunch Act (as amended by paragraph (1))
may be waived by a State until July 1, 2010, for each
secondary school in the State that has been awarded
funding under section 18(f) of that Act (42 U.S.C.
1769(f)) for the school year beginning July 1, 2008.
(B) School year beginning july 1, 2008.--To
facilitate transition from the program authorized under
section 18(f) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769(f)) (as in effect on the day
before the date of enactment of this Act) to the program
established under section 19 of that Act (as amended by
paragraph (1))--
(i) for the school year beginning July 1,
2008, the Secretary may permit any school selected
for participation under section 18(f) of that Act
(42 U.S.C. 1769(f)) for that school year to
continue to participate under section 19 of that
Act until the end of that school year; and
(ii) funds made available under that Act for
fiscal year 2009 may be used to support the
participation of any schools selected to
participate in the program authorized under
section 18(f) of that Act (42 U.S.C. 1769(f)) (as
in effect on the day before the date of enactment
of this Act).

(b) Conforming Amendments.--Section 18 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769) is amended--
(1) by striking subsection (f); and
(2) by redesignating subsections (g) through (j) as
subsections (f) through (i), respectively.
SEC. 4305. [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) [NOTE: Deadline.]  Evaluation.--Not later than September 30,
2011, the Secretary shall conduct an evaluation of the activities
conducted under subsection (c) that includes--
(1) an evaluation of whether children participating in the
school lunch and breakfast programs increased their consumption
of whole grains;

[[Page 1893]]
122 STAT. 1893

(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 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.

[[Page 1894]]
122 STAT. 1894

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.--
``(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) [NOTE: Grants.]  In general.--Subject to
subparagraph (B), the Secretary shall offer to provide a
grant to the Congressional Hunger Center to administer
the Fellowship Programs.

[[Page 1895]]
122 STAT. 1895

``(B) Terms of grant.--The terms of the grant
provided under subparagraph (A), including the length of
the grant and provisions for the alteration or
termination of the grant, shall be determined by the
Secretary in accordance with this section.

``(d) Fellowships.--
``(1) In general.--The Director shall make available Bill
Emerson Hunger Fellowships and Mickey Leland Hunger Fellowships
in accordance with this subsection.
``(2) Curriculum.--
``(A) In general.--The Fellowship Programs shall
provide experience and training to develop the skills
necessary to train fellows to carry out the purposes
described in subsection (c)(2), including--
``(i) training in direct service programs for
the hungry and other anti-hunger programs in
conjunction with community-based organizations
through a program of field placement; and
``(ii) providing experience in policy
development through placement in a governmental
entity or nongovernmental, nonprofit, or private
sector organization.
``(B) Work plan.--To carry out subparagraph (A) and
assist in the evaluation of the fellowships under
paragraph (6), the Director shall, for each fellow,
approve a work plan that identifies the target
objectives for the fellow in the fellowship, including
specific duties and responsibilities relating to those
objectives.
``(3) Period of fellowship.--
``(A) Bill emerson hunger fellow.--A Bill Emerson
Hunger Fellowship awarded under this section shall be
for not more than 15 months.
``(B) Mickey leland hunger fellow.--A Mickey Leland
Hunger Fellowship awarded under this section shall be
for not more than 2 years.
``(4) Selection of fellows.--
``(A) In general.--Fellowships shall be awarded
pursuant to a nationwide competition established by the
Director.
``(B) Qualifications.--A successful program
applicant shall be an individual who has demonstrated--
``(i) an intent to pursue a career in
humanitarian services and outstanding potential
for such a career;
``(ii) leadership potential or actual
leadership experience;
``(iii) diverse life experience;
``(iv) proficient writing and speaking skills;
``(v) an ability to live in poor or diverse
communities; and
``(vi) such other attributes as are considered
to be appropriate by the Director.
``(5) Amount of award.--
``(A) In general.--A fellow shall receive--
``(i) a living allowance during the term of
the Fellowship; and
``(ii) subject to subparagraph (B), an end-of-
service award.
``(B) Requirement for successful completion of
fellowship.--Each fellow shall be entitled to receive an

[[Page 1896]]
122 STAT. 1896

end-of-service award at an appropriate rate for each
month of satisfactory service completed, as determined
by the Director.
``(C) Terms of fellowship.--A fellow shall not be
considered an employee of--
``(i) the Department of Agriculture;
``(ii) the Congressional Hunger Center; or
``(iii) a host agency in the field or policy
placement of the fellow.
``(D) Recognition of fellowship award.--
``(i) Emerson fellow.--An individual awarded a
fellowship from the Bill Emerson Hunger Fellowship
shall be known as an `Emerson Fellow'.
``(ii) Leland fellow.--An individual awarded a
fellowship from the Mickey Leland Hunger
Fellowship shall be known as a `Leland Fellow'.
``(6) Evaluations and audits.--Under terms stipulated in the
contract entered into under subsection (c)(3), the Director
shall--
``(A) conduct periodic evaluations of the Fellowship
Programs; and
``(B) arrange for annual independent financial
audits of expenditures under the Fellowship Programs.

``(e) Authority.--
``(1) In general.--Subject to paragraph (2), in carrying out
this section, the Director may solicit, accept, use, and dispose
of gifts, bequests, or devises of services or property, both
real and personal, for the purpose of facilitating the work of
the Fellowship Programs.
``(2) Limitation.--Gifts, bequests, or devises of money and
proceeds from sales of other property received as gifts,
bequests, or devises shall be used exclusively for the purposes
of the Fellowship Programs.

``(f) Report.--The Director shall annually submit to the Secretary
of Agriculture, the Committee on Agriculture of the House of
Representatives, and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that--
``(1) describes the activities and expenditures of the
Fellowship Programs during the preceding fiscal year, including
expenditures made from funds made available under subsection
(g); and
``(2) includes the results of evaluations and audits
required by subsection (d).

``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary to carry out
this section, to remain available until expended.''.
SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is
amended--
(1) by striking subsection (a) and inserting the following:

``(a) Definitions.--In this section:
``(1) Community food project.--In this section, the term
`community food project' means a community-based project that--
``(A) requires a 1-time contribution of Federal
assistance to become self-sustaining; and

[[Page 1897]]
122 STAT. 1897

``(B) is designed--
``(i)(I) to meet the food needs of low-income
individuals;
``(II) to increase the self-reliance of
communities in providing for the food needs of the
communities; and
``(III) to promote comprehensive responses to
local food, farm, and nutrition issues; or
``(ii) to meet specific State, local, or
neighborhood food and agricultural needs,
including needs relating to--
``(I) infrastructure improvement and
development;
``(II) planning for long-term
solutions; or
``(III) the creation of innovative
marketing activities that mutually
benefit agricultural producers and low-
income consumers.
``(2) Center.--The term `Center' means the healthy urban
food enterprise development center established under subsection
(h).
``(3) Underserved community.--The term `underserved
community' means a community (including an urban or rural
community or an Indian tribe) that, as determined by the
Secretary, has--
``(A) limited access to affordable, healthy foods,
including fresh fruits and vegetables;
``(B) a high incidence of a diet-related disease
(including obesity) as compared to the national average;
``(C) a high rate of hunger or food insecurity; or
``(D) severe or persistent poverty.'';
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following:

``(h) Healthy Urban Food Enterprise Development Center.--
``(1) Definition of eligible entity.--In this subsection,
the term `eligible entity' means--
``(A) a nonprofit organization;
``(B) a cooperative;
``(C) a commercial entity;
``(D) an agricultural producer;
``(E) an academic institution;
``(F) an individual; and
``(G) such other entities as the Secretary may
designate.
``(2) Establishment.--The Secretary shall offer to provide a
grant to a nonprofit organization to establish and support a
healthy urban food enterprise development center to carry out
the purpose described in paragraph (3).
``(3) Purpose.--The purpose of the Center is to increase
access to healthy affordable foods, including locally produced
agricultural products, to underserved communities.
``(4) Activities.--
``(A) Technical assistance and information.--The
Center shall collect, develop, and provide technical
assistance and information to small and medium-sized
agricultural producers, food wholesalers and retailers,
schools, and other individuals and entities regarding
best practices and the availability of assistance for
aggregating, storing,

[[Page 1898]]
122 STAT. 1898

processing, and marketing locally produced agricultural
products and increasing the availability of such
products in underserved communities.
``(B) Authority to subgrant.--The Center may provide
subgrants to eligible entities--
``(i) to carry out feasibility studies to
establish businesses for the purpose described in
paragraph (3); and
``(ii) to establish and otherwise assist
enterprises that process, distribute, aggregate,
store, and market healthy affordable foods.
``(5) Priority.--In providing technical assistance and
grants under paragraph (4), the Center shall give priority to
applications that include projects--
``(A) to benefit underserved communities; and
``(B) to develop market opportunities for small and
mid-sized farm and ranch operations.
``(6) Report.--For each fiscal year for which the nonprofit
organization described in paragraph (2) receives funds, the
organization shall submit to the Secretary a report describing
the activities carried out in the preceding fiscal year,
including--
``(A) a description of technical assistance provided
by the Center;
``(B) the total number and a description of the
subgrants provided under paragraph (4)(B);
``(C) a complete listing of cases in which the
activities of the Center have resulted in increased
access to healthy, affordable foods, such as fresh fruit
and vegetables, particularly for school-aged children
and individuals in low-income communities; and
``(D) a determination of whether the activities
identified in subparagraph (C) are sustained during the
years following the initial provision of technical
assistance and subgrants under this section.
``(7) Competitive award process.--The Secretary shall use a
competitive process to award funds to establish the Center.
``(8) Limitation on administrative expenses.--Not more than
10 percent of the total amount allocated for this subsection in
a given fiscal year may be used for administrative expenses.
``(9) Funding.--
``(A) In general.--Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out
this subsection $1,000,000 for each of fiscal years 2009
through 2011.
``(B) Additional funding.--There is authorized to be
appropriated $2,000,000 to carry out this subsection for
fiscal year 2012.''.
SEC. 4403. [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--

[[Page 1899]]
122 STAT. 1899

(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.
(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

[[Page 1900]]
122 STAT. 1900

in section 201A of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7501).
(3) Hunger-free communities goal.--The term ``hunger-free
communities goal'' means any of the 14 goals described in the H.
Con. Res. 302 (102nd Congress).

(b) Hunger-Free Communities Collaborative Grants.--
(1) Program.--
(A) In general.--The Secretary shall use not more
than 50 percent of any funds made available under
subsection (e) to make grants to eligible entities to
pay the Federal share of the costs of an activity
described in paragraph (2).
(B) Federal share.--The Federal share of the cost of
carrying out an activity under this subsection shall not
exceed 80 percent.
(C) Non-federal share.--
(i) Calculation.--The non-Federal share of the
cost of an activity under this subsection may be
provided in cash or fairly evaluated in-kind
contributions, including facilities, equipment, or
services.
(ii) Sources.--Any entity may provide the non-
Federal share of the cost of an activity under
this subsection through a State government, a
local government, or a private source.
(2) Use of funds.--An eligible entity in a community shall
use a grant received under this subsection for any fiscal year
for hunger relief activities, including--
(A) meeting the immediate needs of people who
experience hunger in the community served by the
eligible entity by--
(i) distributing food;
(ii) providing community outreach to assist in
participation in federally assisted nutrition
programs, including--
(I) the school breakfast program
established by section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773);
(II) the school lunch program
established under the Richard B. Russell
National School Lunch Act (42 U.S.C.
1751 et seq.);
(III) the summer food service
program for children established under
section 13 of that Act; and
(IV) other Federal programs that
provide food for children in child care
facilities and homeless and older
individuals; or
(iii) improving access to food as part of a
comprehensive service; and
(B) developing new resources and strategies to help
reduce hunger in the community and prevent hunger in the
future by--
(i) developing creative food resources, such
as community gardens, buying clubs, food
cooperatives, community-owned and operated grocery
stores, and farmers' markets;
(ii) coordinating food services with park and
recreation programs and other community-based
outlets to reduce barriers to access; or

[[Page 1901]]
122 STAT. 1901

(iii) creating nutrition education programs
for at-risk populations to enhance food-purchasing
and food-preparation skills and to heighten
awareness of the connection between diet and
health.

(c) Hunger-Free Communities Infrastructure Grants.--
(1) Program authorized.--
(A) In general.--The Secretary shall use not more
than 50 percent of any funds made available for a fiscal
year under subsection (e) to make grants to eligible
entities to pay the Federal share of the costs of an
activity described in paragraph (2).
(B) Federal share.--The Federal share of the cost of
carrying out an activity under this subsection shall not
exceed 80 percent.
(2) Application.--
(A) In general.--To receive a grant under this
subsection, an eligible entity shall submit an
application at such time, in such form, and containing
such information as the Secretary may prescribe.
(B) Contents.--Each application submitted under
subparagraph (A) shall--
(i) identify any activity described in
paragraph (3) that the grant will be used to fund;
and
(ii) describe the means by which an activity
identified under clause (i) will reduce hunger in
the community of the eligible entity.
(C) Priority.--In making grants under this
subsection, the Secretary shall give priority to
eligible entities that demonstrate 2 or more of the
following:
(i) The eligible entity serves a community in
which the rates of food insecurity, hunger,
poverty, or unemployment are demonstrably higher
than national average rates.
(ii) The eligible entity serves a community
that has successfully carried out long-term
efforts to reduce hunger in the community.
(iii) The eligible entity serves a community
that provides public support for the efforts of
the eligible entity.
(iv) The eligible entity is committed to
achieving more than 1 hunger-free communities
goal.
(3) Use of funds.--An eligible entity shall use a grant
received under this subsection to construct, expand, or repair a
facility or equipment to support hunger relief efforts in the
community.

(d) Report.--If funds are made available under subsection (e) to
carry out this section, not later than September 30, 2012, the Secretary
shall submit to Congress a report that describes--
(1) each grant made under this section, including--
(A) a description of any activity funded; and
(B) the degree of success of each activity funded in
achieving hunger free-communities goals; and
(2) the degree of success of all activities funded under
this section in achieving domestic hunger goals.

(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.

[[Page 1902]]
122 STAT. 1902

SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PROGRAMS.

(a) Supplemental Nutrition Assistance Program.--
(1) Authorization of appropriations.--Section 18(a)(1) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) is
amended in the first sentence by striking ``for each of the
fiscal years 2003 through 2007'' and inserting ``for each of
fiscal years 2008 through 2012''.
(2) Grants for simple application and eligibility
determination systems and improved access to benefits.--Section
11(t)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2020(t)(1)) is amended by striking ``For each of fiscal years
2003 through 2007'' and inserting ``Subject to the availability
of appropriations under section 18(a), for each fiscal year''.
(3) Funding of employment and training programs.--Section
16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(h)(1)) is amended--
(A) in subparagraph (A), by striking ``the amount
of--'' and all that follows through the end of the
subparagraph and inserting ``, $90,000,000 for each
fiscal year.''; and
(B) in subparagraph (E)(i), by striking ``for each
of fiscal years 2002 through 2007'' and inserting ``for
each fiscal year''.
(4) Reductions in payments for administrative costs.--
Section 16(k)(3) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(k)(3)) is amended--
(A) in the first sentence of subparagraph (A), by
striking ``effective for each of fiscal years 1999
through 2007,''; and
(B) in subparagraph (B)(ii), by striking ``through
fiscal year 2007''.
(5) Cash payment pilot projects.--Section 17(b)(1)(B)(vi) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(vi))
is amended--
(A) by striking ``Any pilot'' and inserting
``Subject to the availability of appropriations under
section 18(a), any pilot''; and
(B) by striking ``through October 1, 2007,''.
(6) Consolidated block grants for puerto rico and american
samoa.--Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of
2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ``for
each of fiscal years 2004 through 2007'' and inserting ``subject
to the availability of appropriations under section 18(a), for
each fiscal year thereafter''.
(7) Assistance for community food projects.--Section 25 of
the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended--
(A) in subsection (b)(2)(B), by striking ``for each
of fiscal years 1997 through 2007'' and inserting ``for
fiscal year 2008 and each fiscal year thereafter''; and
(B) in subsection (i)(4) (as redesignated by section
4402), by striking ``of fiscal years 2003 through 2007''
and inserting ``fiscal year thereafter''.

(b) Commodity Distribution.--
(1) Emergency food assistance.--Section 204(a)(1) of the
Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is
amended in the first sentence by striking ``for each of the

[[Page 1903]]
122 STAT. 1903

fiscal years 2003 through 2007'' and inserting ``for fiscal year
2008 and each fiscal year thereafter''.
(2) Commodity distribution program.--Section 4(a) of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c
note; Public Law 93-86) is amended in the first sentence by
striking ``years 1991 through 2007'' and inserting ``years 2008
through 2012''.
(3) Commodity supplemental food program.--Section 5 of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c
note; Public Law 93-86) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``each of
fiscal years 2003 through 2007'' and inserting
``each of fiscal years 2008 through 2012''; and
(ii) in paragraph (2)(B), by striking the
subparagraph designation and heading and all that
follows through ``2007'' and inserting the
following:
``(B) Subsequent fiscal years.--For each of fiscal
years 2004 through 2012''; and
(B) in subsection (d)(2), by striking ``each of the
fiscal years 1991 through 2007'' and inserting ``each of
fiscal years 2008 through 2012''.
(4) Distribution of surplus commodities to special nutrition
projects.--Section 1114(a)(2)(A) of the Agriculture and Food Act
of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence
by striking ``Effective through September 30, 2007'' and
inserting ``For each of fiscal years 2008 through 2012''.

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

[[Page 1904]]
122 STAT. 1904

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

``(a) In General.--The Secretary may''; and
(2) in subsection (a)(2), by inserting ``, taking into
consideration all farming experience of the applicant, without
regard to any lapse between farming experiences'' after
``farming operations''.
SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

Section 304 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1924) is amended to read as follows:
``SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

``(a) In General.--The Secretary may make or guarantee qualified
conservation loans to eligible borrowers under this section.
``(b) Definitions.--In this section:
``(1) Qualified conservation loan.--The term `qualified
conservation loan' means a loan, the proceeds of which are used
to cover the costs to the borrower of carrying out a qualified
conservation project.
``(2) Qualified conservation project.--The term `qualified
conservation project' means conservation measures that address
provisions of a conservation plan of the eligible borrower.
``(3) Conservation plan.--The term `conservation plan' means
a plan, approved by the Secretary, that, for a farming or
ranching operation, identifies the conservation activities that
will be addressed with loan funds provided under this section,
including--
``(A) the installation of conservation structures to
address soil, water, and related resources;
``(B) the establishment of forest cover for
sustained yield timber management, erosion control, or
shelter belt purposes;
``(C) the installation of water conservation
measures;
``(D) the installation of waste management systems;
``(E) the establishment or improvement of permanent
pasture;
``(F) compliance with section 1212 of the Food
Security Act of 1985; and
``(G) other purposes consistent with the plan,
including the adoption of any other emerging or existing
conservation practices, techniques, or technologies
approved by the Secretary.

``(c) Eligibility.--
``(1) In general.--The Secretary may make or guarantee loans
to farmers or ranchers in the United States, farm cooperatives,
private domestic corporations, partnerships, joint operations,
trusts, or limited liability companies that are controlled by
farmers or ranchers and engaged primarily and directly in
agricultural production in the United States.
``(2) Requirements.--To be eligible for a loan under this
section, applicants shall meet the requirements in paragraphs
(1) and (2) of section 302(a).

``(d) Priority.--In making or guaranteeing loans under this section,
the Secretary shall give priority to--
``(1) qualified beginning farmers or ranchers and socially
disadvantaged farmers or ranchers;

[[Page 1905]]
122 STAT. 1905

``(2) owners or tenants who use the loans to convert to
sustainable or organic agricultural production systems; and
``(3) producers who use the loans to build conservation
structures or establish conservation practices to comply with
section 1212 of the Food Security Act of 1985.

``(e) Limitations Applicable to Loan Guarantees.--The portion of a
loan that the Secretary may guarantee under this section shall be 75
percent of the principal amount of the loan.
``(f) Administrative Provisions.--The Secretary shall ensure, to the
maximum extent practicable, that loans made or guaranteed under this
section are distributed across diverse geographic regions.
``(g) Credit Eligibility.--The provisions of paragraphs (1) and (3)
of section 333 shall not apply to loans made or guaranteed under this
section.
``(h) Authorization of Appropriations.--For each of fiscal years
2008 through 2012, there are authorized to be appropriated to the
Secretary such funds as are necessary to carry out this section.''.
SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

Section 305(a)(2) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1925(a)(2)) is amended by striking ``$200,000'' and inserting
``$300,000''.
SEC. 5004. DOWN PAYMENT LOAN PROGRAM.

Section 310E of the Consolidated Farm and Rural Development Act (7
U.S.C. 1935) is amended--
(1) in subsection (a)(1), by striking ``and ranchers'' and
inserting ``or ranchers and socially disadvantaged farmers or
ranchers'';
(2) in subsection (b)--
(A) by striking paragraph (1) and inserting the
following;
``(1) Principal.--Each loan made under this section shall be
in an amount that does not exceed 45 percent of the least of--
``(A) the purchase price of the farm or ranch to be
acquired;
``(B) the appraised value of the farm or ranch to be
acquired; or
``(C) $500,000.
``(2) Interest rate.--The interest rate on any loan made by
the Secretary under this section shall be a rate equal to the
greater of--
``(A) the difference obtained by subtracting 4
percent from the interest rate for farm ownership loans
under this subtitle; or
``(B) 1.5 percent.''; and
(B) in paragraph (3), by striking ``15'' and
inserting ``20'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``10'' and
inserting ``5'';
(B) by striking paragraph (2) and redesignating
paragraph (3) as paragraph (2); and
(C) in paragraph (2)(B) (as so redesignated), by
striking ``15-year'' and inserting ``20-year'';
(4) in subsection (d)--

[[Page 1906]]
122 STAT. 1906

(A) in paragraph (3)--
(i) by inserting ``and socially disadvantaged
farmers or ranchers'' after ``ranchers''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (4), by striking ``and ranchers.''
and inserting `` or ranchers or socially disadvantaged
farmers or ranchers; and''; and
(C) by adding at the end the following:
``(5) establish annual performance goals to promote the use
of the down payment loan program and other joint financing
arrangements as the preferred choice for direct real estate
loans made by any lender to a qualified beginning farmer or
rancher or socially disadvantaged farmer or rancher.''; and
(5) by adding at the end the following:

``(e) Socially Disadvantaged Farmer or Rancher Defined.--In this
section, the term `socially disadvantaged farmer or rancher' has the
meaning given that term in section 355(e)(2).''.
SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED
FARMER OR RANCHER CONTRACT LAND SALES
PROGRAM.

Section 310F of the Consolidated Farm and Rural Development Act (7
U.S.C. 1936) is amended to read as follows:
``SEC. 310F. BEGINNING FARMER OR RANCHER AND SOCIALLY
DISADVANTAGED FARMER OR RANCHER CONTRACT
LAND SALES PROGRAM.

``(a) In General.--The Secretary shall, in accordance with this
section, guarantee a loan made by a private seller of a farm or ranch to
a qualified beginning farmer or rancher or socially disadvantaged farmer
or rancher (as defined in section 355(e)(2)) on a contract land sales
basis.
``(b) Eligibility.--In order to be eligible for a loan guarantee
under subsection (a)--
``(1) the qualified beginning farmer or rancher or socially
disadvantaged farmer or rancher shall--
``(A) on the date the contract land sale that is
subject of the loan is complete, own and operate the
farm or ranch that is the subject of the contract land
sale;
``(B) have a credit history that--
``(i) includes a record of satisfactory debt
repayment, as determined by the Secretary; and
``(ii) is acceptable to the Secretary; and
``(C) demonstrate to the Secretary that the farmer
or rancher, as the case may be, is unable to obtain
sufficient credit without a guarantee to finance any
actual need of the farmer or rancher, as the case may
be, at a reasonable rate or term; and
``(2) the loan shall meet applicable underwriting criteria,
as determined by the Secretary.

``(c) Limitations.--
``(1) Down payment.--The Secretary shall not provide a loan
guarantee under subsection (a) if the contribution of the
qualified beginning farmer or rancher or socially disadvantaged
farmer or rancher to the down payment for the farm or ranch that
is the subject of the contract land sale would be less than 5
percent of the purchase price of the farm or ranch.

[[Page 1907]]
122 STAT. 1907

``(2) Maximum purchase price.--The Secretary shall not
provide a loan guarantee under subsection (a) if the purchase
price or the appraisal value of the farm or ranch that is the
subject of the contract land sale is greater than $500,000.

``(d) Period of Guarantee.--The period during which a loan guarantee
under this section is in effect shall be the 10-year period beginning
with the date the guarantee is provided.
``(e) Guarantee Plan.--
``(1) Selection of plan.--A private seller of a farm or
ranch who makes a loan that is guaranteed by the Secretary under
subsection (a) may select--
``(A) a prompt payment guarantee plan, which shall
cover--
``(i) 3 amortized annual installments; or
``(ii) an amount equal to 3 annual
installments (including an amount equal to the
total cost of any tax and insurance incurred
during the period covered by the annual
installments); or
``(B) a standard guarantee plan, which shall cover
an amount equal to 90 percent of the outstanding
principal of the loan.
``(2) Eligiblity for standard guarantee plan.--In order for
a private seller to be eligible for a standard guarantee plan
referred to in paragraph (1)(B), the private seller shall--
``(A) secure a commercial lending institution or
similar entity, as determined by the Secretary, to serve
as an escrow agent; or
``(B) in cooperation with the farmer or rancher, use
an appropriate alternate arrangement, as determined by
the Secretary.

``(f) Transition From Pilot Program.--
``(1) In general.--The Secretary may phase-in the
implementation of the changes to the Beginning Farmer and
Rancher and Socially Disadvantaged Farmer or Rancher Contract
Land Sales Program provided for in this section.
``(2) Limitation.--All changes to the Beginning Farmer and
Rancher and Socially Disadvantaged Farmer or Rancher Contract
Land Sales Program must be implemented for the 2011 Fiscal
Year.''.

Subtitle B--Operating Loans

SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.

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

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

[[Page 1908]]
122 STAT. 1908

SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

Section 313(a)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1943(a)(1)) is amended by striking ``$200,000'' and inserting
``$300,000''.
SEC. 5103. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS
ARE ELIGIBLE FOR GUARANTEED ASSISTANCE.

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

Subtitle C--Emergency Loans

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

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

Subtitle D--Administrative Provisions

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

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

[[Page 1909]]
122 STAT. 1909

``(I) described in section 501(c)(3)
of the Internal Revenue Code of 1986;
and
``(II) exempt from taxation under
section 501(a) of such Code; or
``(ii) a State, local, or tribal government
submitting an application jointly with an
organization described in clause (i).
``(B) No prohibition on collaboration.--An
organization described in subparagraph (A)(i) may
collaborate with a financial institution or for-profit
community development corporation to carry out the
purposes of this section.

``(b) Pilot Program.--
``(1) In general.--The Secretary shall establish a pilot
program to be known as the `New Farmer Individual Development
Accounts Pilot Program' under which the Secretary shall work
through qualified entities to establish demonstration programs--
``(A) of at least 5 years in duration; and
``(B) in at least 15 States.
``(2) Coordination.--The Secretary shall operate the pilot
program through, and in coordination with the farm loan programs
of, the Farm Service Agency.
``(3) Reserve funds.--
``(A) In general.--A qualified entity carrying out a
demonstration program under this section shall establish
a reserve fund consisting of a non-Federal match of 50
percent of the total amount of the grant awarded to the
demonstration program under this section.
``(B) Federal funds.--After the qualified entity has
deposited the non-Federal matching funds described in
subparagraph (A) in the reserve fund, the Secretary
shall provide the total amount of the grant awarded
under this section to the demonstration program for
deposit in the reserve fund.
``(C) Use of funds.--Of the funds deposited under
subparagraph (B) in the reserve fund established for a
demonstration program, the qualified entity carrying out
the demonstration program--
``(i) may use up to 10 percent for
administrative expenses; and
``(ii) shall use the remainder in making
matching awards described in paragraph
(4)(B)(ii)(I).
``(D) Interest.--Any interest earned on amounts in a
reserve fund established under subparagraph (A) may be
used by the qualified entity as additional matching
funds for, or to administer, the demonstration program.
``(E) Guidance.--The Secretary shall issue guidance
regarding the investment requirements of reserve funds
established under this paragraph.
``(F) Reversion.--On the date on which all funds
remaining in any individual development account
established by a qualified entity have reverted under
paragraph (5)(B)(ii) to the reserve fund established by
the qualified entity, there shall revert to the Treasury
of the United States a percentage of the amount (if any)
in the reserve fund equal to--

[[Page 1910]]
122 STAT. 1910

``(i) the amount of Federal funds deposited in
the reserve fund under subparagraph (B) that were
not used for administrative expenses; divided by
``(ii) the total amount of funds deposited in
the reserve fund.
``(4) Individual development accounts.--
``(A) In general.--A qualified entity receiving a
grant under this section shall establish and administer
individual development accounts for eligible
participants.
``(B) Contract requirements.--To be eligible to
receive funds under this section from a qualified
entity, an eligible participant shall enter into a
contract with only 1 qualified entity under which--
``(i) the eligible participant agrees--
``(I) to deposit a certain amount of
funds of the eligible participant in a
personal savings account, as prescribed
by the contractual agreement between the
eligible participant and the qualified
entity;
``(II) to use the funds described in
subclause (I) only for 1 or more
eligible expenditures described in
paragraph (5)(A); and
``(III) to complete financial
training; and
``(ii) the qualified entity agrees--
``(I) to deposit, not later than 1
month after an amount is deposited
pursuant to clause (i)(I), at least a
100-percent, and up to a 200-percent,
match of that amount into the individual
development account established for the
eligible participant; and
``(II) with uses of funds proposed
by the eligible participant.
``(C) Limitation.--
``(i) In general.--A qualified entity
administering a demonstration program under this
section may provide not more than $6,000 for each
fiscal year in matching funds to the individual
development account established by the qualified
entity for an eligible participant.
``(ii) Treatment of amount.--An amount
provided under clause (i) shall not be considered
to be a gift or loan for mortgage purposes.
``(5) Eligible expenditures.--
``(A) In general.--An eligible expenditure described
in this subparagraph is an expenditure--
``(i) to purchase farmland or make a down
payment on an accepted purchase offer for
farmland;
``(ii) to make mortgage payments on farmland
purchased pursuant to clause (i), for up to 180
days after the date of the purchase;
``(iii) to purchase breeding stock, fruit or
nut trees, or trees to harvest for timber; and
``(iv) for other similar expenditures, as
determined by the Secretary.
``(B) Timing.--
``(i) In general.--An eligible participant may
make an eligible expenditure at any time during
the

[[Page 1911]]
122 STAT. 1911

2-year period beginning on the date on which the
last matching funds are provided under paragraph
(4)(B)(ii)(I) to the individual development
account established for the eligible participant.
``(ii) Unexpended funds.--At the end of the
period described in clause (i), any funds
remaining in an individual development account
established for an eligible participant shall
revert to the reserve fund of the demonstration
program under which the account was established.

``(c) Applications.--
``(1) In general.--A qualified entity that seeks to carry
out a demonstration program under this section may submit to the
Secretary an application at such time, in such form, and
containing such information as the Secretary may prescribe.
``(2) Criteria.--In considering whether to approve an
application to carry out a demonstration program under this
section, the Secretary shall assess--
``(A) the degree to which the demonstration program
described in the application is likely to aid eligible
participants in successfully pursuing new farming
opportunities;
``(B) the experience and ability of the qualified
entity to responsibly administer the demonstration
program;
``(C) the experience and ability of the qualified
entity in recruiting, educating, and assisting eligible
participants to increase economic independence and
pursue or advance farming opportunities;
``(D) the aggregate amount of direct funds from non-
Federal public sector and private sources that are
formally committed to the demonstration program as
matching contributions;
``(E) the adequacy of the plan of the qualified
entity to provide information relevant to an evaluation
of the demonstration program; and
``(F) such other factors as the Secretary considers
to be appropriate.
``(3) Preferences.--In considering an application to conduct
a demonstration program under this section, the Secretary shall
give preference to an application from a qualified entity that
demonstrates--
``(A) a track record of serving clients targeted by
the program, including, as appropriate, socially
disadvantaged farmers or ranchers (as defined in section
355(e)(2)); and
``(B) expertise in dealing with financial management
aspects of farming.
``(4) [NOTE: Deadline.]  Approval.--Not later than 1 year
after the date of enactment of this section, in accordance with
this section, the Secretary shall, on a competitive basis,
approve such applications to conduct demonstration programs as
the Secretary considers appropriate.
``(5) Term of authority.--If the Secretary approves an
application to carry out a demonstration program, the Secretary
shall authorize the applicant to carry out the project for a
period of 5 years, plus an additional 2 years to make eligible
expenditures in accordance with subsection (b)(5)(B).

``(d) Grant Authority.--

[[Page 1912]]
122 STAT. 1912

``(1) In general.--The Secretary shall make a grant to a
qualified entity authorized to carry out a demonstration program
under this section.
``(2) Maximum amount of grants.--The aggregate amount of
grant funds provided to a demonstration program carried out
under this section shall not exceed $250,000.
``(3) Timing of grant payments.--The Secretary shall pay the
amounts awarded under a grant made under this section--
``(A) on the awarding of the grant; or
``(B) pursuant to such payment plan as the qualified
entity may specify.

``(e) Reports.--
``(1) Annual progress reports.--
``(A) In general.--Not later than 60 days after the
end of the calendar year in which the Secretary
authorizes a qualified entity to carry out a
demonstration program under this section, and annually
thereafter until the conclusion of the demonstration
program, the qualified entity shall prepare an annual
report that includes, for the period covered by the
report--
``(i) an evaluation of the progress of the
demonstration program;
``(ii) information about the demonstration
program, including the eligible participants and
the individual development accounts that have been
established; and
``(iii) such other information as the
Secretary may require.
``(B) Submission of reports.--A qualified entity
shall submit each report required under subparagraph (A)
to the Secretary.
``(2) Reports by the secretary.--Not later than 1 year after
the date on which all demonstration programs under this section
are concluded, the Secretary shall submit to Congress a final
report that describes the results and findings of all reports
and evaluations carried out under this section.

``(f) Annual Review.--The Secretary may conduct an annual review of
the financial records of a qualified entity--
``(1) to assess the financial soundness of the qualified
entity; and
``(2) to determine the use of grant funds made available to
the qualified entity under this section.

``(g) Regulations.--In carrying out this section, the Secretary may
promulgate regulations to ensure that the program includes provisions
for--
``(1) the termination of demonstration programs;
``(2) control of the reserve funds in the case of such a
termination;
``(3) transfer of demonstration programs to other qualified
entities; and
``(4) remissions from a reserve fund to the Secretary in a
case in which a demonstration program is terminated without
transfer to a new qualified entity.

``(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2008 through 2012.''.

[[Page 1913]]
122 STAT. 1913

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

(a) Inventory Sales Preferences.--Section 335(c) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1985(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B)--
(i) in the subparagraph heading, by inserting
``; socially disadvantaged farmer or rancher''
after ``or rancher'';
(ii) in clause (i), by inserting `` or a
socially disadvantaged farmer or rancher'' after
``or rancher'';
(iii) in clause (ii), by inserting ``or
socially disadvantaged farmer or rancher'' after
``or rancher'';
(iv) in clause (iii), by inserting ``or a
socially disadvantaged farmer or rancher'' after
``or rancher''; and
(v) in clause (iv), by striking ``and
ranchers'' and inserting ``or ranchers and
socially disadvantaged farmers or ranchers''; and
(B) in subparagraph (C), by inserting ``or a
socially disadvantaged farmer or rancher'' after ``or
rancher'';
(2) in paragraph (5)(B)--
(A) in clause (i)--
(i) in the clause heading, by inserting ``;
socially disadvantaged farmer or rancher'' after
``or rancher'';
(ii) by inserting ``or a socially
disadvantaged farmer or rancher'' after ``a
beginning farmer or rancher''; and
(iii) by inserting ``or the socially
disadvantaged farmer or rancher'' after ``the
beginning farmer or rancher''; and
(B) in clause (ii)--
(i) in the matter preceding subclause (I), by
inserting ``or a socially disadvantaged farmer or
rancher'' after ``or rancher''; and
(ii) in subclause (II), by inserting ``or the
socially disadvantaged farmer or rancher'' after
``or rancher''; and
(3) in paragraph (6)--
(A) in subparagraph (A), by inserting ``or a
socially disadvantaged farmer or rancher'' after ``or
rancher''; and
(B) in subparagraph (C)--
(i) in clause (i)(I), by striking ``and
ranchers'' and inserting ``or ranchers and
socially disadvantaged farmers or ranchers''; and
(ii) in clause (ii), by inserting ``or
socially disadvantaged farmers or ranchers'' after
``or ranchers''.

(b) Loan Fund Set-Asides.--Section 346(b)(2) of such Act (7 U.S.C.
1994(b)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i)--
(i) in subclause (I), by striking ``70
percent'' and inserting ``an amount that is not
less than 75 percent of the total amount''; and
(ii) in subclause (II)--
(I) in the subclause heading, by
inserting ``; joint financing
arrangements'' after ``payment loans'';

[[Page 1914]]
122 STAT. 1914

(II) by striking ``60 percent'' and
inserting ``an amount not less than \2/
3\ of the amount''; and
(III) by inserting ``and joint
financing arrangements under section
307(a)(3)(D)'' after ``section 310E'';
and
(B) in clause (ii)(III), by striking ``2003 through
2007, 35 percent'' and inserting ``2008 through 2012, an
amount that is not less than 50 percent of the total
amount''; and
(2) in subparagraph (B)(i), by striking ``25 percent'' and
inserting ``an amount that is not less than 40 percent of the
total amount''.
SEC. 5303. LOAN AUTHORIZATION LEVELS.

Section 346(b)(1) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1994(b)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``$3,796,000,000 for each of fiscal years 2003 through 2007''
and inserting ``$4,226,000,000 for each of fiscal years 2008
through 2012''; and
(2) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``$770,000,000'' and inserting ``$1,200,000,000'';
(B) in clause (i), by striking ``$205,000,000'' and
inserting ``$350,000,000''; and
(C) in clause (ii), by striking ``$565,000,000'' and
inserting ``$850,000,000''.
SEC. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF
CREDIT.

Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981-2008r) is amended by inserting after section 344 the
following:
``SEC. 345. [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.''.

[[Page 1915]]
122 STAT. 1915

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

Section 352(c)(4)(B) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2000(c)(4)(B)) is amended--
(1) in the 1st sentence, by striking ``, the borrower-
owner'' inserting ``of a borrower-owner who is a socially
disadvantaged farmer or rancher (as defined in section
355(e)(2)), the borrower-owner or a member of the immediate
family of the borrower-owner''; and
(2) in the 2nd sentence, by inserting ``or immediate family
member, as the case may be,'' before ``from''.
SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981-2008r) is amended by inserting after section 364 the
following:
``SEC. 365. [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)''.

[[Page 1916]]
122 STAT. 1916

(b) Conforming Amendments.--Section 4.3A(c)(1)(D) of such Act (12
U.S.C. 2154a(c)(1)(D)) is amended by redesignating clauses (ii) and
(iii) as clauses (iii) and (iv), respectively, and inserting after
clause (i) the following:
``(ii) persons and entities eligible to borrow
from the banks for cooperatives, as described in
section 3.3(c)(ii);''.
SEC. 5404. PREMIUMS.

(a) Amount in Fund Not Exceeding Secure Base Amount.--Section
5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(a)) is
amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``paragraph (2)'' and
inserting ``paragraph (3)''; and
(ii) by striking ``annual'' ; and
(B) by striking subparagraphs (A) through (D) and
inserting the following:
``(A) the average outstanding insured obligations
issued by the bank for the calendar year, after
deducting from the obligations the percentages of the
guaranteed portions of loans and investments described
in paragraph (2), multiplied by 0.0020; and
``(B) the product obtained by multiplying--
``(i) the sum of--
``(I) the average principal
outstanding for the calendar year on
loans made by the bank that are in
nonaccrual status; and
``(II) the average amount
outstanding for the calendar year of
other-than-temporarily impaired
investments made by the bank; by
``(ii) 0.0010.'';
(2) by striking paragraph (4);
(3) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Deductions from average outstanding insured
obligations.--The average outstanding insured obligations issued
by the bank for the calendar year referred to in paragraph
(1)(A) shall be reduced by deducting from the obligations the
sum of (as determined by the Corporation)--
``(A) 90 percent of each of--
``(i) the average principal outstanding for
the calendar year on the guaranteed portions of
Federal government-guaranteed loans made by the
bank that are in accrual status; and
``(ii) the average amount outstanding for the
calendar year of the guaranteed portions of
Federal government-guaranteed investments made by
the bank that are not permanently impaired; and
``(B) 80 percent of each of--
``(i) the average principal outstanding for
the calendar year on the guaranteed portions of
State government-guaranteed loans made by the bank
that are in accrual status; and

[[Page 1917]]
122 STAT. 1917

``(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''.
(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--'';

[[Page 1918]]
122 STAT. 1918

(3) in each of paragraphs (1), (2), and (3), by inserting
``all loans or investments made'' before ``by'' the first place
it appears; and
(4) in each of paragraphs (1) and (2), by inserting ``or
investments'' after ``that is able to make such loans'' each
place it appears.

(e) Allocation to System Institutions of Excess Reserves.--Section
5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is amended--
(1) in paragraph (3), by striking ``the average secure base
amount for the calendar year (as calculated on an average daily
balance basis)'' and inserting ``the secure base amount'';
(2) in paragraph (4), by striking subparagraph (B) and
inserting the following:
``(B) there shall be credited to the allocated
insurance reserves account of each insured system bank
an amount that bears the same ratio to the total amount
(less any amount credited under subparagraph (A)) as--
``(i) the average principal outstanding for
the calendar year on insured obligations issued by
the bank (after deducting from the principal the
percentages of the guaranteed portions of loans
and investments described in subsection (a)(2));
bears to
``(ii) the average principal outstanding for
the calendar year on insured obligations issued by
all insured System banks (after deducting from the
principal the percentages of the guaranteed
portions of loans and investments described in
subsection (a)(2)).''; and
(3) in paragraph (6)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by
striking ``beginning more'' and all that follows
through ``January 1, 2005'';
(ii) by striking clause (i) and inserting the
following:
``(i) subject to subparagraph (D), pay to each
insured System bank, in a manner determined by the
Corporation, an amount equal to the balance in the
Allocated Insurance Reserves Account of the System
bank; and''; and
(iii) in clause (ii)--
(I) by striking ``subparagraphs (C),
(E), and (F)'' and inserting
``subparagraphs (C) and (E)''; and
(II) by striking ``, of the lesser
of--'' and all that follows through the
end of subclause (II) and inserting ``at
the time of the termination of the
Financial Assistance Corporation, of the
balance in the Allocated Insurance
Reserves Account established under
paragraph (1)(B).'';
(B) in subparagraph (C)--
(i) in clause (i), by striking ``(in addition
to the amounts described in subparagraph
(F)(ii))''; and
(ii) by striking clause (ii) and inserting the
following:

[[Page 1919]]
122 STAT. 1919

``(ii) Termination of account.--On
disbursement of an amount equal to $56,000,000,
the Corporation shall--
``(I) close the account established
under paragraph (1)(B); and
``(II) transfer any remaining funds
in the Account to the remaining
Allocated Insurance Reserves Accounts in
accordance with paragraph (4)(B) for the
calendar year in which the transfer
occurs.''; and
(C) by striking subparagraph (F).
SEC. 5405. CERTIFICATION OF PREMIUMS.

(a) Filing Certified Statement.--Section 5.56 of the Farm Credit Act
of 1971 (12 U.S.C. 2277a-5) is amended by striking subsection (a) and
inserting the following:
``(a) Filing Certified Statement.--On a date to be determined in the
sole discretion of the Board of Directors of the Corporation, each
insured System bank that became insured before the beginning of the
period for which premiums are being assessed (referred to in this
section as the `period') shall file with the Corporation a certified
statement showing--
``(1) the average outstanding insured obligations for the
period issued by the bank;
``(2)(A) the average principal outstanding for the period on
the guaranteed portion of Federal government-guaranteed loans
that are in accrual status; and
``(B) the average amount outstanding for the period of
Federal government-guaranteed investments that are not
permanently impaired (as defined in section 5.55(a)(4));
``(3)(A) the average principal outstanding for the period on
State government-guaranteed loans that are in accrual status;
and
``(B) the average amount outstanding for the period of State
government-guaranteed investments that are not permanently
impaired (as defined in section 5.55(a)(4));
``(4)(A) the average principal outstanding for the period on
loans that are in nonaccrual status; and
``(B) the average amount outstanding for the period of
other-than-temporarily impaired investments; and
``(5) the amount of the premium due the Corporation from the
bank for the period.''.

(b) Premium Payments.--Section 5.56 of such Act (12 U.S.C. 2277a-5)
is amended by striking subsection (c) and inserting the following:
``(c) Premium Payments.--
``(1) In general.--Except as provided in paragraph (2), each
insured System bank shall pay to the Corporation the premium
payments required under subsection (a), not more frequently than
once in each calendar quarter, in such manner and at such 1 or
more times as the Board of Directors shall prescribe.
``(2) Premium amount.--The [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--

[[Page 1920]]
122 STAT. 1920

(1) by striking subsection (d); and
(2) by redesignating subsection (e) as subsection (d).
SEC. 5406. RURAL UTILITY LOANS.

(a) Definition of Qualified Loan.--Section 8.0(9) of the Farm Credit
Act of 1971 (12 U.S.C. 2279aa(9)) is amended--
(1) in subparagraph (A)(iii), by striking ``or'' at the end;
(2) in subparagraph (B)(ii), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following:
``(C) that is a loan, or an interest in a loan, for
an electric or telephone facility by a cooperative
lender to a borrower that has received, or is eligible
to receive, a loan under the Rural Electrification Act
of 1936 (7 U.S.C. 901 et seq.).''.

(b) Guarantee of Qualified Loans.--Section 8.6(a)(1) of such Act (12
U.S.C. 2279aa-6(a)(1)) is amended by inserting ``applicable'' before
``standards'' each place it appears in subparagraphs (A) and (B)(i).
(c) Standards for Qualified Loans.--Section 8.8 of such Act (12
U.S.C. 2279aa-8) is amended--
(1) in subsection (a)--
(A) by striking the first sentence and inserting the
following:
``(1) In general.--The Corporation shall establish
underwriting, security appraisal, and repayment standards for
qualified loans taking into account the nature, risk profile,
and other differences between different categories of qualified
loans.
``(2) Supervision, examination, and report of condition.--
The standards shall be subject to the authorities of the Farm
Credit Administration under section 8.11.''; and
(B) in the last sentence, by striking ``In
establishing'' and inserting the following:
``(3) Mortgage loans.--In establishing'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by
inserting ``with respect to loans secured by
agricultural real estate'' after ``subsection (a)''; and
(B) in paragraph (5)--
(i) by striking ``borrower'' the first place
it appears and inserting ``farmer or rancher'';
and
(ii) by striking ``site'' and inserting ``farm
or ranch'';
(3) in subsection (c)(1), by inserting ``secured by
agricultural real estate'' after ``A loan'';
(4) by striking subsection (d); and
(5) by redesignating subsection (e) as subsection (d).

(d) Risk-Based Capital Levels.--Section 8.32(a)(1) of such Act (12
U.S.C. 2279bb-1(a)(1)) is amended--
(1) by striking ``With respect'' and inserting the
following:
``(A) In general.--With respect''; and
(2) by adding at the end the following:
``(B) Rural utility loans.--With respect to
securities representing an interest in, or obligation
backed by, a pool of qualified loans described in
section 8.0(9)(C) owned or guaranteed by the
Corporation, losses occur at a rate of default and
severity reasonably related to risks in electric

[[Page 1921]]
122 STAT. 1921

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 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

[[Page 1922]]
122 STAT. 1922

loan-making powers of a Farm Credit System association under
section 7.7.
``(B) Amendments described in subparagraph (A) to the
charters of an association and the related Farm Credit Bank
shall be approved by the Farm Credit Administration, subject to
any conditions of approval imposed, by not later than 30 days
after the date on which the Farm Credit Administration receives
all approvals required by section 7.7(a)(2).''.

(c) Conforming Amendments.--
(1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12
U.S.C. 2252(a)(2)) is amended--
(A) by striking ``(2)(A)'' and inserting ``(2)'';
and
(B) by striking subparagraphs (B) and (C).
(2) Section 410 of the 1987 act.--Section 410(e)(1)(A)(iii)
of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note;
Public Law 100-233) is amended by inserting ``(except section
7.7 of that Act)'' after ``(12 U.S.C. 2001 et seq.)''.
(3) Section 401 of the 1992 act.--Section 401(b) of the Farm
Credit Banks and Associations Safety and Soundness Act of 1992
(12 U.S.C. 2011 note; Public Law 102-552) is amended--
(A) by inserting ``(except section 7.7 of the Farm
Credit Act of 1971)'' after ``provision of law''; and
(B) by striking ``, subject to such limitations''
and all that follows through the end of the paragraph
and inserting a period.

(d) [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).''.

[[Page 1923]]
122 STAT. 1923

TITLE VI--RURAL DEVELOPMENT

Subtitle A--Consolidated Farm and Rural Development Act

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

Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended by striking
``2002 through 2007'' and inserting ``2008 through 2012''.
SEC. 6002. SEARCH GRANTS.

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

(b) Conforming Amendment.--Subtitle [NOTE: 7 USC 2009ee-- 2009ee-
3.]  D of title VI of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 2009ee et seq.) is repealed.
SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

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

[[Page 1924]]
122 STAT. 1924

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

Section 306(a)(19)(C)(ii) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) is amended by striking
``April'' and inserting ``June''.
SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE BROADBAND.

Section 306(a)(20)(E) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(20)(E)) is amended--
(1) by striking ``state'' and inserting ``State''; and
(2) by striking ``dial-up Internet access or''.
SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

Section 306(a)(22)(C) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(22)(C)) is amended by striking ``$15,000,000 for
fiscal year 2003'' and inserting ``$25,000,000 for fiscal year 2008''.
SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY
FACILITIES.

Section 306(a)(25) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(25)) is amended--
(1) in subparagraph (A)--
(A) by striking ``tribal colleges and universities''
and inserting ``an entity that is a Tribal College or
University''; and
(B) by striking ``tribal college or university'' and
inserting ``Tribal College or University'';
(2) by striking subparagraph (B) and inserting the
following:
``(B) Federal share.--The Secretary shall establish
the maximum percentage of the cost of the facility that
may be covered by a grant under this paragraph, except
that the Secretary may not require non-Federal financial
support in an amount that is greater than 5 percent of
the total cost of the facility.''; and
(3) in subparagraph (C), by striking ``2003 through 2007''
and inserting ``2008 through 2012''.
SEC. 6008. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT
PROGRAM.

Section 306A(i)(2) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926a(i)(2)) is amended by striking ``2003 through 2007''
and inserting ``2008 through 2012''.
SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

(a) In General.--Section 306D(d)(1) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking
``2001 through 2007'' and inserting ``2008 through 2012''.
(b) Rural Communities Assistance.--Section 4009 of the Solid Waste
Disposal Act (42 U.S.C. 6949) is amended by adding at the end the
following:
``(e) Additional Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section for the Denali Commission to provide

[[Page 1925]]
122 STAT. 1925

assistance to municipalities in the State of Alaska $1,500,000
for each of fiscal years 2008 through 2012.
``(2) Administration.--For the purpose of carrying out this
subsection, the Denali Commission shall--
``(A) be considered a State; and
``(B) comply with all other requirements and
limitations of this section.''.
SEC. 6010. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE
CONSTRUCTION, REFURBISHING, AND
SERVICING OF INDIVIDUALLY-OWNED
HOUSEHOLD WATER WELL SYSTEMS IN RURAL
AREAS FOR INDIVIDUALS WITH LOW OR
MODERATE INCOMES.

Section 306E of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926e) is amended--
(1) in subsection (b)(2)(C), by striking ``$8,000'' and
inserting ``$11,000''; and
(2) in subsection (d), by striking ``2003 through 2007'' and
inserting ``2008 through 2012''.
SEC. 6011. INTEREST RATES FOR WATER AND WASTE DISPOSAL FACILITIES
LOANS.

Section 307(a)(3) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1927(a)(3)) is amended by adding at the end the following:
``(E) Interest rates for water and waste disposal
facilities loans.--
``(i) In general.--Except as provided in
clause (ii) and notwithstanding subparagraph (A),
in the case of a direct loan for a water or waste
disposal facility--
``(I) in the case of a loan that
would be subject to the 5 percent
interest rate limitation under
subparagraph (A), the Secretary shall
establish the interest rate at a rate
that is equal to 60 percent of the
current market yield for outstanding
municipal obligations with remaining
periods to maturity comparable to the
average maturity of the loan, adjusted
to the nearest \1/8\ of 1 percent; and
``(II) in the case of a loan that
would be subject to the 7 percent
limitation under subparagraph (A), the
Secretary shall establish the interest
rate at a rate that is equal to 80
percent of the current market yield for
outstanding municipal obligations with
remaining periods to maturity comparable
to the average maturity of the loan,
adjusted to the nearest \1/8\ of 1
percent.
``(ii) Exception.--Clause (i) does not apply
to a loan for a specific project that is the
subject of a loan that has been approved, but not
closed, as of the date of enactment of this
subparagraph.''.
SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE.

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

[[Page 1926]]
122 STAT. 1926

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

``(a) Loans to Private Business Enterprises.--
``(1) Definitions.--In this subsection:'';
(2) in subsection (a)--
(A) by moving the second and fourth sentences so as
to appear as the second and first sentences,
respectively;
(B) in the sentence beginning ``As used in this
subsection, the'' (as moved by subparagraph (A)), by
striking ``As used in this subsection, the'' and
inserting the following:
``(A) Aquaculture.--The'';
(C) in the sentence beginning ``For the purposes of
this subsection, the'', by striking ``For the purposes
of this subsection, the'' and inserting the following:
``(B) Solar energy.--The'';
(D) in the sentence beginning ``The Secretary may
also''--
(i) by striking ``The Secretary may also'' and
inserting the following:
``(2) Loan purposes.--The Secretary may'';
(ii) by inserting ``and private investment
funds that invest primarily in cooperative
organizations'' after ``or nonprofit'';
(iii) by striking ``of (1) improving'' and
inserting ``of--
``(A) improving'';
(iv) by striking ``control, (2) the'' and
inserting ``control;
``(B) the'';
(v) by striking ``areas, (3) reducing'' and
inserting ``areas;
``(C) reducing'';
(vi) by striking ``areas, and (4) to'' and
inserting ``areas; and
``(D) to'';
(E) in the sentence beginning ``Such loans,'', by
striking ``Such loans,'' and inserting the following:
``(3) Loan guarantees.--Loans described in paragraph (2),'';
and
(F) in the last sentence, by striking ``No loan''
and inserting the following:
``(4) Maximum amount of principal.--No loan''; and
(3) in subsection (g)--
(A) in paragraph (1), by inserting ``, including
guarantees described in paragraph (3)(A)(ii)'' before
the period at the end;
(B) in paragraph (3)(A)--
(i) by striking ``(A) In general.--The
Secretary'' and inserting the following:
``(A) Eligibility.--
``(i) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(ii) Equity.--The Secretary may guarantee a
loan made for the purchase of preferred stock or
similar equity issued by a cooperative
organization or a fund that invests primarily in
cooperative organizations, if the guarantee
significantly benefits 1 or more entities

[[Page 1927]]
122 STAT. 1927

eligible for assistance for the purposes described
in subsection (a)(1), as determined by the
Secretary.''; and
(C) in paragraph (8)(A)(ii), by striking ``a
project--'' and all that follows through the end of
subclause (II) and inserting ``a project that--
``(I)(aa) is in a rural area; and
``(bb) provides for the value-added
processing of agricultural commodities;
or
``(II) significantly benefits 1 or
more entities eligible for assistance
for the purposes described in subsection
(a)(1), as determined by the
Secretary.''.

(b) Conforming Amendments.--
(1) Section 307(a)(6)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by striking
clause (ii) and inserting the following:
``(ii) section 310B(a)(2)(A); and''.
(2) Section 310B(g) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(g)) is amended by striking
``subsection (a)(1)'' each place it appears in paragraphs (1),
(6)(A)(iii), and (8)(C) and inserting ``subsection (a)(2)(A)''.
(3) Section 333A(g)(1)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended by striking
``section 310B(a)(1)'' and inserting ``section 310B(a)(2)(A)''.
(4) Section 381E(d)(3)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended by striking
``section 310B(a)(1)'' and inserting ``section 310B(a)(2)(A)''.
SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS.

(a) Eligibility.--Section 310B(e)(5) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932(e)(5)) is amended--
(1) in subparagraph (A), by striking ``administering a
nationally coordinated, regionally or State-wide operated
project'' and inserting ``carrying out activities to promote and
assist the development of cooperatively and mutually owned
businesses'';
(2) in subparagraph (B), by inserting ``to promote and
assist the development of cooperatively and mutually owned
businesses'' before the semicolon;
(3) by striking subparagraph (D);
(4) by redesignating subparagraph (E) as subparagraph (D);
(5) in subparagraph (D) (as so redesignated), by striking
``and'' at the end;
(6) by inserting after subparagraph (D) (as so redesignated)
the following:
``(E) demonstrate a commitment to--
``(i) networking with and sharing the results
of the efforts of the center with other
cooperative development centers and other
organizations involved in rural economic
development efforts; and
``(ii) developing multiorganization and
multistate approaches to addressing the economic
development and cooperative needs of rural areas;
and''; and

[[Page 1928]]
122 STAT. 1928

(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 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

[[Page 1929]]
122 STAT. 1929

(i), the Secretary shall use the funds as
otherwise authorized by this subsection.''.

(f) Authorization of Appropriations.--Paragraph (12) of section
310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) (as redesignated by subsection (c)(1)) is amended by striking
``1996 through 2007'' and inserting ``2008 through 2012''.
SEC. 6014. GRANTS TO BROADCASTING SYSTEMS.

Section 310B(f)(3) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(f)(3)) is amended by striking ``2002 through 2007''
and inserting ``2008 through 2012''.
SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD
PRODUCTS.

Section 310B(g) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1932(g)) is amended by adding at the end the following:
``(9) Locally or regionally produced agricultural food
products.--
``(A) Definitions.--In this paragraph:
``(i) Locally or regionally produced
agricultural food product.--The term `locally or
regionally produced agricultural food product'
means any agricultural food product that is
raised, produced, and distributed in--
``(I) the locality or region in
which the final product is marketed, so
that the total distance that the product
is transported is less than 400 miles
from the origin of the product; or
``(II) the State in which the
product is produced.
``(ii) Underserved community.--The term
`underserved community' means a community
(including an urban or rural community and an
Indian tribal community) that has, as determined
by the Secretary--
``(I) limited access to affordable,
healthy foods, including fresh fruits
and vegetables, in grocery retail stores
or farmer-to-consumer direct markets;
and
``(II) a high rate of hunger or food
insecurity or a high poverty rate.
``(B) Loan and loan guarantee program.--
``(i) In general.--The Secretary shall make or
guarantee loans to individuals, cooperatives,
cooperative organizations, businesses, and other
entities to establish and facilitate enterprises
that process, distribute, aggregate, store, and
market locally or regionally produced agricultural
food products to support community development and
farm and ranch income.
``(ii) Requirement.--The recipient of a loan
or loan guarantee under clause (i) shall include
in an appropriate agreement with retail and
institutional facilities to which the recipient
sells locally or regionally produced agricultural
food products a requirement to inform consumers of
the retail or institutional facilities that the
consumers are purchasing or consuming

[[Page 1930]]
122 STAT. 1930

locally or regionally produced agricultural food
products.
``(iii) Priority.--In making or guaranteeing a
loan under clause (i), the Secretary shall give
priority to projects that have components
benefitting underserved communities.
``(iv) Reports.--Not later than 2 years after
the date of enactment of this paragraph and
annually thereafter, the Secretary shall submit to
the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report
that describes projects carried out using loans or
loan guarantees made under clause (i), including--
``(I) the characteristics of the
communities served; and
``(II) resulting benefits.
``(v) Reservation of funds.--
``(I) In general.--For each of
fiscal years 2008 through 2012, the
Secretary shall reserve not less than 5
percent of the funds made available to
carry out this subsection to carry out
this subparagraph.
``(II) Availability of funds.--Funds
reserved under subclause (I) for a
fiscal year shall be reserved until
April 1 of the fiscal year.''.
SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.

Section 310B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) is amended by adding at the end the following:
``(i) Appropriate Technology Transfer for Rural Areas Program.--
``(1) Definition of national nonprofit agricultural
assistance institution.--In this subsection, the term `national
nonprofit agricultural assistance institution' means an
organization that--
``(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation
under 501(a) of that Code;
``(B) has staff and offices in multiple regions of
the United States;
``(C) has experience and expertise in operating
national agriculture technical assistance programs;
``(D) expands markets for the agricultural
commodities produced by producers through the use of
practices that enhance the environment, natural resource
base, and quality of life; and
``(E) improves the economic viability of
agricultural operations.
``(2) Establishment.--The Secretary shall establish a
national appropriate technology transfer for rural areas program
to assist agricultural producers that are seeking information
to--
``(A) reduce input costs;
``(B) conserve energy resources;
``(C) diversify operations through new energy crops
and energy generation facilities; and

[[Page 1931]]
122 STAT. 1931

``(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.''.
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--

[[Page 1932]]
122 STAT. 1932

``(I) an urbanized area described in
subparagraphs (A)(ii) and (F) that--
``(aa) has 2 points on its
boundary that are at least 40
miles apart; and
``(bb) is not contiguous or
adjacent to a city or town that
has a population of greater than
150,000 inhabitants or an
urbanized area of such city or
town; and
``(II) an area within an urbanized
area described in subparagraphs (A)(ii)
and (F) that is within \1/4\-mile of a
rural area described in subparagraph
(A).
``(ii) Determination.--Notwithstanding any
other provision of this paragraph, on the petition
of a unit of local government in an area described
in clause (i) or on the initiative of the Under
Secretary for Rural Development, the Under
Secretary may determine that a part of an area
described in clause (i) is a rural area for the
purposes of this paragraph, if the Under Secretary
finds that the part is rural in character, as
determined by the Under Secretary.
``(iii) Administration.--In carrying out this
subparagraph, the Under Secretary for Rural
Development shall--
``(I) not delegate the authority to
carry out this subparagraph;
``(II) consult with the applicable
rural development State or regional
director of the Department of
Agriculture and the governor of the
respective State;
``(III) provide to the petitioner an
opportunity to appeal to the Under
Secretary a determination made under
this subparagraph;
``(IV) [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

[[Page 1933]]
122 STAT. 1933

in a rural area only because the cluster is adjacent to
not more than 2 census blocks that are otherwise
considered not in a rural area under this paragraph.
``(F) Urban area growth.--
``(i) Application.--This subparagraph applies
to--
``(I) any area that--
``(aa) is a collection of
census blocks that are
contiguous to each other;
``(bb) has a housing density
that the Secretary estimates is
greater than 200 housing units
per square mile; and
``(cc) is contiguous or
adjacent to an existing boundary
of a rural area; and
``(II) any urbanized area contiguous
and adjacent to a city or town described
in subparagraph (A)(i).
``(ii) Adjustments.--The Secretary may, by
regulation only, consider--
``(I) an area described in clause
(i)(I) not to be a rural area for
purposes of subparagraphs (A) and (C);
and
``(II) an area described in clause
(i)(II) not to be a rural area for
purposes of subparagraph (C).
``(iii) Appeals.--A program applicant may
appeal an estimate made under clause (i)(I) based
on appropriate data for an area, as determined by
the Secretary.
``(G) Hawaii and puerto rico.--Notwithstanding any
other provision of this paragraph, within the areas of
the County of Honolulu, Hawaii, and the Commonwealth of
Puerto Rico, the Secretary may designate any part of the
areas as a rural area if the Secretary determines that
the part is not urban in character, other than any area
included in the Honolulu Census Designated Place or the
San Juan Census Designated Place.''.

(b) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall prepare and submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report that--
(1) assesses the various definitions of the term ``rural''
and ``rural area'' that are used with respect to programs
administered by the Secretary;
(2) describes the effects that the variations in those
definitions have on those programs;
(3) make recommendations for ways to better target funds
provided through rural development programs; and
(4) determines the effect of the amendment made by
subsection (a) on the level of rural development funding and
participation in those programs in each State.
SEC. 6019. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

Section 378 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008m) is amended--
(1) in subsection (g)(1), by striking ``2003 through 2007''
and inserting ``2008 through 2012''; and

[[Page 1934]]
122 STAT. 1934

(2) in subsection (h), by striking ``the date that is 5
years after the date of enactment of this section'' and
inserting ``September 30, 2012''.
SEC. 6020. HISTORIC BARN PRESERVATION.

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

(b) Authorization of Appropriations.--Section 379A(c)(5) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2008o(c)(5)) (as
redesignated by subsection (a)(2)) is amended by striking ``2002 through
2007'' and inserting ``2008 through 2012''.
SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

Section 379B(d) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2008p(d)) is amended by striking ``2002 through 2007'' and
inserting ``2008 through 2012''.
SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) is amended by adding at the end the following:
``SEC. 379E. [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;

[[Page 1935]]
122 STAT. 1935

``(B) provides training and technical assistance to
rural microentrepreneurs;
``(C) facilitates access to capital or another
service described in subsection (b) for rural
microenterprises; and
``(D) has a demonstrated record of delivering
services to rural microentrepreneurs, or an effective
plan to develop a program to deliver services to rural
microentrepreneurs, as determined by the Secretary.
``(4) Microloan.--The term `microloan' means a business loan
of not more than $50,000 that is provided to a rural
microenterprise.
``(5) Program.--The term `program' means the rural
microentrepreneur assistance program established under
subsection (b).
``(6) Rural microenterprise.--The term `rural
microenterprise' means--
``(A) a sole proprietorship located in a rural area;
or
``(B) a business entity with not more than 10 full-
time-equivalent employees located in a rural area.

``(b) Rural Microentrepreneur Assistance Program.--
``(1) Establishment.--The Secretary shall establish a rural
microentrepreneur assistance program to provide loans and grants
to support microentrepreneurs in the development and ongoing
success of rural microenterprises.
``(2) Purpose.--The purpose of the program is to provide
microentrepreneurs with--
``(A) the skills necessary to establish new rural
microenterprises; and
``(B) continuing technical and financial assistance
related to the successful operation of rural
microenterprises.
``(3) Loans.--
``(A) In general.--The Secretary shall make loans to
microenterprise development organizations for the
purpose of providing fixed interest rate microloans to
microentrepreneurs for startup and growing rural
microenterprises.
``(B) Loan terms.--A loan made by the Secretary to a
microenterprise development organization under this
paragraph shall--
``(i) be for a term not to exceed 20 years;
and
``(ii) bear an annual interest rate of at
least 1 percent.
``(C) Loan loss reserve fund.--The Secretary shall
require each microenterprise development organization
that receives a loan under this paragraph to--
``(i) establish a loan loss reserve fund; and
``(ii) maintain the reserve fund in an amount
equal to at least 5 percent of the outstanding
balance of such loans owed by the microenterprise
development organization, until all obligations
owed to the Secretary under this paragraph are
repaid.
``(D) Deferral of interest and principal.--The
Secretary may permit the deferral of payments on
principal and interest due on a loan to a
microenterprise development organization made under this
paragraph for a 2-year period beginning on the date the
loan is made.
``(4) Grants.--

[[Page 1936]]
122 STAT. 1936

``(A) Grants to support rural microenterprise
development.--
``(i) In general.--The Secretary shall make
grants to microenterprise development
organizations to--
``(I) provide training, operational
support, business planning, and market
development assistance, and other
related services to rural
microentrepreneurs; and
``(II) carry out such other projects
and activities as the Secretary
determines appropriate to further the
purposes of the program.
``(ii) Selection.--In making grants under
clause (i), the Secretary shall--
``(I) place an emphasis on
microenterprise development
organizations that serve
microentrepreneurs that are located in
rural areas that have suffered
significant outward migration, as
determined by the Secretary; and
``(II) ensure, to the maximum extent
practicable, that grant recipients
include microenterprise development
organizations--
``(aa) of varying sizes; and
``(bb) that serve racially
and ethnically diverse
populations.
``(B) Grants to assist microentrepreneurs.--
``(i) In general.--The Secretary shall make
grants to microenterprise development
organizations to provide marketing, management,
and other technical assistance to
microentrepreneurs that--
``(I) received a loan from the
microenterprise development organization
under paragraph (3); or
``(II) are seeking a loan from the
microenterprise development organization
under paragraph (3).
``(ii) Maximum amount of grant.--A
microenterprise development organization shall be
eligible to receive an annual grant under this
subparagraph in an amount equal to not more than
25 percent of the total outstanding balance of
microloans made by the microenterprise development
organization under paragraph (3), as of the date
the grant is awarded.
``(C) Administrative expenses.--Not more than 10
percent of a grant received by a microenterprise
development organization for a fiscal year under this
paragraph may be used to pay administrative expenses.

``(c) Administration.--
``(1) Cost share.--
``(A) Federal share.--Subject to subparagraph (B),
the Federal share of the cost of a project funded under
this section shall not exceed 75 percent.
``(B) Matching requirement.--As a condition of any
grant made under this subparagraph, the Secretary shall
require the microenterprise development organization to
match not less than 15 percent of the total amount of
the grant in the form of matching funds, indirect costs,
or in-kind goods or services.

[[Page 1937]]
122 STAT. 1937

``(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.''.
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;

[[Page 1938]]
122 STAT. 1938

``(3) expertise in removing barriers to employment for
individuals with disabilities, including access to
transportation, assistive technology, and other accommodations;
and
``(4) existing relationships with national organizations
focused primarily on the needs of rural areas.

``(d) Uses.--A grant received under this section may be used only to
expand or enhance--
``(1) employment opportunities for individuals with
disabilities in rural areas by developing national technical
assistance and education resources to assist small businesses in
a rural area to recruit, hire, accommodate, and employ
individuals with disabilities; and
``(2) self-employment and entrepreneurship opportunities for
individuals with disabilities in a rural area.

``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000 for each of fiscal
years 2008 through 2012.''.
SEC. 6024. HEALTH CARE SERVICES.

Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) (as amended by section 6023) is amended by adding
at the end the following:
``SEC. 379G. [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''.

[[Page 1939]]
122 STAT. 1939

(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 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

[[Page 1940]]
122 STAT. 1940

development organizations and districts, and resource
conservation districts in the region;''; and
(E) in paragraph (7), by inserting ``renewable
energy,'' after ``commercial,''.
(3) in subsection (f)(2), by striking ``the Federal
cochairperson'' and inserting ``a cochairperson'';
(4) in subsection (g)(1), by striking subparagraphs (A)
through (C) and inserting the following:
``(A) for each of fiscal years 2008 and 2009, 100
percent;
``(B) for fiscal year 2010, 75 percent; and
``(C) for fiscal year 2011 and each fiscal year
thereafter, 50 percent.''.

(c) Interstate Cooperation for Economic Opportunity and
Efficiency.--
(1) In general.--Subtitle G of the Consolidated Farm and
Rural Development Act is amended--
(A) by redesignating sections 383C through 383N (7
U.S.C. 2009bb-2 through 2009bb-13) as sections 383D
through 383O, respectively; and
(B) by inserting after section 383B (7 U.S.C.
2009bb-1) the following:
``SEC. 383C. [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

[[Page 1941]]
122 STAT. 1941

(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)--
(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

[[Page 1942]]
122 STAT. 1942

effective opportunity for other nonprofit groups
to contribute to the development and
implementation of programs in the region;
``(ii) a nonprofit incorporated body organized
or chartered under the law of the State in which
the entity is located;
``(iii) a nonprofit agency or instrumentality
of a State or local government;
``(iv) a public organization established
before the date of enactment of this subtitle
under State law for creation of
multijurisdictional, area-wide planning
organizations;
``(v) a nonprofit agency or instrumentality of
a State that was established for the purpose of
assisting with multistate cooperation; or
``(vi) a nonprofit association or combination
of bodies, agencies, and instrumentalities
described in clauses (ii) through (v); and
``(2) that has not, as certified by the Authority (in
consultation with the Federal cochairperson or Secretary, as
appropriate)--
``(A) inappropriately used Federal grant funds from
any Federal source; or
``(B) appointed an officer who, during the period in
which another entity inappropriately used Federal grant
funds from any Federal source, was an officer of the
other entity.

``(b) Grants to Multistate, Local, or Regional Development Districts
and Organizations.--
``(1) In general.--The Authority may make grants for
administrative expenses under this section to multistate, local,
and regional development districts and organizations.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant
awarded under paragraph (1) shall not exceed 80 percent
of the administrative expenses of the multistate, local,
or regional development district or organization
receiving the grant.
``(B) Maximum period.--No grant described in
paragraph (1) shall be awarded for a period greater than
3 years.
``(3) Local share.--The contributions of a multistate,
local, or regional development district or organization for
administrative expenses may be in cash or in kind, fairly
evaluated, including space, equipment, and services.

``(c) Duties.--
``(1) In general.--Except as provided in paragraph (2), a
local development district shall operate as a lead organization
serving multicounty areas in the region at the local level.
``(2) Designation.--The Federal cochairperson may designate
an Indian tribe or multijurisdictional organization to serve as
a lead organization in such cases as the Federal cochairperson
or Secretary, as appropriate, determines appropriate.''.

(g) Distressed Counties and Areas and Nondistressed Counties.--
Section 383G of the Consolidated Farm and Rural

[[Page 1943]]
122 STAT. 1943

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''.

(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:

[[Page 1944]]
122 STAT. 1944

``(C) shall not exceed $500 for any fee collected
under this subsection.''; and
(C) by adding at the end the following:
``(3) Prohibition on collection of certain fees.--In the
case of a license described in paragraph (1) that was approved
before July 1, 2007, the Secretary shall not collect any fees
due on or after the date of enactment of this paragraph.''.

(c) Rural Business Investment Companies.--Section 384I(c) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-8(c)) is
amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Time frame.--Each rural business investment company
shall have a period of 2 years to meet the capital requirements
of this subsection.''.

(d) Financial Institution Investments.--Section 384J of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-9) is
amended--
(1) in subsection (a)(1), by inserting ``, including an
investment pool created entirely by such bank or savings
association'' before the period at the end; and
(2) in subsection (c), by striking ``15'' and inserting
``25''.

(e) Contracting of Functions.--Section 384Q of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009cc-16) is repealed.
(f) Funding.--The Consolidated Farm and Rural Development Act is
amended by striking section 384S (7 U.S.C. 2009cc-18) and inserting the
following:
``SEC. 384S. [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-1.]  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

[[Page 1945]]
122 STAT. 1945

of scale that are essential for the long-term competitiveness of
rural regions; and
``(5) to better use Department of Agriculture and other
Federal, State, and local governmental resources, and to
leverage those resources with private, nonprofit, and
philanthropic investments, in order to achieve measurable
community and economic prosperity, growth, and sustainability.
``SEC. 385B. DEFINITIONS.

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

[[Page 1946]]
122 STAT. 1946

and opportunities that need to be addressed to receive
the greatest regional competitive advantage;
``(B) the provision of support for best practices
developed by the Regional Boards;
``(C) the establishment of programs to support the
development of appropriate governance and leadership
skills in the applicable regions; and
``(D) the evaluation of the progress and performance
of the Regional Boards in achieving benchmarks
established in a regional investment strategy;
``(3) work with the National Board to develop a national
rural investment plan that shall--
``(A) create a framework to encourage and support a
more collaborative and targeted rural investment
portfolio in the United States;
``(B) establish a Rural Philanthropic Initiative, to
work with rural communities to create and enhance the
pool of permanent philanthropic resources committed to
rural community and economic development;
``(C) cooperate with the Regional Boards and State
and local governments, organizations, and entities to
ensure investment strategies are developed that take
into consideration existing rural assets; and
``(D) encourage the organization of Regional Boards;
``(4) [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) [NOTE: Establishment.]  National Rural Investment Board.--
The Secretary shall establish within the Department of Agriculture a
board to be known as the `National Rural Investment Board'.

``(d) Duties of National Board.--The National Board shall--

[[Page 1947]]
122 STAT. 1947

``(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) [NOTE: Deadline.]  In general.--The National Board
shall consist of 14 members appointed by the Secretary not later
than 180 days after the date of enactment of the Food,
Conservation, and Energy Act of 2008.
``(2) Supervision.--The National Board shall be subject to
the general supervision and direction of the Secretary.
``(3) Sectors represented.--The National Board shall consist
of representatives from each of--
``(A) nationally recognized entrepreneurship
organizations;
``(B) regional strategy and development
organizations;
``(C) community-based organizations;
``(D) elected members of local governments;
``(E) members of State legislatures;
``(F) primary, secondary, and higher education, job
skills training, and workforce development institutions;
``(G) the rural philanthropic community;
``(H) financial, lending, venture capital,
entrepreneurship, and other related institutions;
``(I) private sector business organizations,
including chambers of commerce and other for-profit
business interests;
``(J) Indian tribes; and
``(K) cooperative organizations.
``(4) Selection of members.--
``(A) In general.--In selecting members of the
National Board, the Secretary shall consider
recommendations made by--
``(i) the chairman and ranking member of each
of the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate;
``(ii) the Majority Leader and Minority Leader
of the Senate; and
``(iii) the Speaker and Minority Leader of the
House of Representatives.
``(B) Ex-officio members.--In consultation with the
chairman and ranking member of each of the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate, the Secretary may appoint not more than 3 other
officers or employees of the Executive Branch to serve
as ex-officio, nonvoting members of the National Board.
``(5) Term of office.--

[[Page 1948]]
122 STAT. 1948

``(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.
``(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)));

[[Page 1949]]
122 STAT. 1949

``(ii) tribally controlled colleges or universities
(as defined in section 2(a) of Tribally Controlled
College or University Assistance Act of 1978 (25 U.S.C.
1801(a))); and
``(iii) tribal technical institutions;
``(H) workforce and job training organizations;
``(I) other entities and organizations, as
determined by the Regional Board;
``(J) cooperatives; and
``(K) consortia of entities and organizations
described in subparagraphs (A) through (J);
``(4) represents a region inhabited by--
``(A) more than 25,000 individuals, as determined in
the latest available decennial census conducted under
section 141(a) of title 13, United States Code; or
``(B) in the case of a region with a population
density of less than 2 individuals per square mile, at
least 10,000 individuals, as determined in that latest
available decennial census;
``(5) has a membership of which not less than 25 percent,
nor more than 40 percent, represents--
``(A) units of local government and Indian tribes
described in subparagraphs (A) and (D) of paragraph (3);
``(B) nonprofit community and economic development
organizations and institutions of higher education
described in subparagraphs (B) and (G) of paragraph (3);
or
``(C) private business (including chambers of
commerce and cooperatives) and agricultural, natural
resource, and other asset-based related industries
described in subparagraphs (C) and (F) of paragraph (3);
``(6) has a membership that may include an officer or
employee of a Federal agency, serving as an ex-officio,
nonvoting member of the Regional Board to represent the agency;
and
``(7) has organizational documents that demonstrate that the
Regional Board will--
``(A) create a collaborative public-private strategy
process;
``(B) develop, and submit to the Secretary for
approval, a regional investment strategy that meets the
requirements of section 385E, with benchmarks--
``(i) to promote investment in rural areas
through the use of grants made available under
this subtitle; and
``(ii) to provide financial and technical
assistance to promote a broad-based regional
development program aimed at increasing and
diversifying economic growth, improved community
facilities, and improved quality of life;
``(C) implement the approved regional investment
strategy;
``(D) provide annual reports to the Secretary and
the National Board on progress made in achieving the
benchmarks of the regional investment strategy,
including an annual financial statement; and
``(E) select a non-Federal organization (such as a
regional development organization) in the local area
served by the Regional Board that has previous
experience in

[[Page 1950]]
122 STAT. 1950

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

``(a) In General.--The Secretary shall make regional investment
strategy grants available to Regional Boards for use in developing,
implementing, and maintaining regional investment strategies.
``(b) Regional Investment Strategy.--A regional investment strategy
shall provide--
``(1) an assessment of the competitive advantage of a
region, including--
``(A) an analysis of the economic conditions of the
region;
``(B) an assessment of the current economic
performance of the region;
``(C) an overview of the population, geography,
workforce, transportation system, resources,
environment, and infrastructure needs of the region; and
``(D) such other pertinent information as the
Secretary may request;
``(2) an analysis of regional economic and community
development challenges and opportunities, including--
``(A) incorporation of relevant material from other
government-sponsored or supported plans and consistency
with applicable State, regional, and local workforce
investment strategies or comprehensive economic
development plans; and
``(B) an identification of past, present, and
projected Federal and State economic and community
development investments in the region;
``(3) a section describing goals and objectives necessary to
solve regional competitiveness challenges and meet the potential
of the region;
``(4) an overview of resources available in the region for
use in--
``(A) establishing regional goals and objectives;
``(B) developing and implementing a regional action
strategy;
``(C) identifying investment priorities and funding
sources; and
``(D) identifying lead organizations to execute
portions of the strategy;

[[Page 1951]]
122 STAT. 1951

``(5) an analysis of the current state of collaborative
public, private, and nonprofit participation and investment, and
of the strategic roles of public, private, and nonprofit
entities in the development and implementation of the regional
investment strategy;
``(6) a section identifying and prioritizing vital projects,
programs, and activities for consideration by the Secretary,
including--
``(A) other potential funding sources; and
``(B) recommendations for leveraging past and
potential investments;
``(7) a plan of action to implement the goals and objectives
of the regional investment strategy;
``(8) a list of performance measures to be used to evaluate
implementation of the regional investment strategy, including--
``(A) the number and quality of jobs, including
self-employment, created during implementation of the
regional rural investment strategy;
``(B) the number and types of investments made in
the region;
``(C) the growth in public, private, and nonprofit
investment in the human, community, and economic assets
of the region;
``(D) changes in per capita income and the rate of
unemployment; and
``(E) other changes in the economic environment of
the region;
``(9) a section outlining the methodology for use in
integrating the regional investment strategy with the economic
priorities of the State; and
``(10) such other information as the Secretary determines to
be appropriate.

``(c) Maximum Amount of Grant.--A regional investment strategy grant
shall not exceed $150,000.
``(d) Cost Sharing.--
``(1) In general.--Subject to paragraph (2), of the share of
the costs of developing, maintaining, evaluating, implementing,
and reporting with respect to a regional investment strategy
funded by a grant under this section--
``(A) not more than 40 percent may be paid using
funds from the grant; and
``(B) the remaining share shall be provided by the
applicable Regional Board or other eligible grantee.
``(2) Form.--A Regional Board or other eligible grantee
shall pay the share described in paragraph (1)(B) in the form of
cash, services, materials, or other in-kind contributions, on
the condition that not more than 50 percent of that share is
provided in the form of services, materials, and other in-kind
contributions.
``SEC. 385F. [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.

[[Page 1952]]
122 STAT. 1952

``(2) Timing.--After October 1, 2008, the Secretary shall
provide awards under this section on a quarterly funding cycle.

``(b) Eligibility.--To be eligible to receive a regional innovation
grant, a Regional Board shall demonstrate to the Secretary that--
``(1) the regional rural investment strategy of a Regional
Board has been reviewed by the National Board prior to approval
by the Secretary;
``(2) the management and organizational structure of the
Regional Board is sufficient to oversee grant projects,
including management of Federal funds; and
``(3) the Regional Board has a plan to achieve, to the
maximum extent practicable, the performance-based benchmarks of
the project in the regional rural investment strategy.

``(c) Limitations.--
``(1) Amount received.--A Regional Board may not receive
more than $6,000,000 in regional innovation grants under this
section during any 5-year period.
``(2) Determination of amount.--The Secretary shall
determine the amount of a regional innovation grant based on--
``(A) the needs of the region being addressed by the
applicable regional rural investment strategy consistent
with the purposes described in subsection (f)(2); and
``(B) the size of the geographical area of the
region.
``(3) Geographic diversity.--The Secretary shall ensure that
not more than 10 percent of funding made available under this
section is provided to Regional Boards in any State.

``(d) Cost-Sharing.--
``(1) Limitation.--Subject to paragraph (2), the amount of a
grant made under this section shall not exceed 50 percent of the
cost of the project.
``(2) Waiver of grantee share.--The Secretary may waive the
limitation in paragraph (1) under special circumstances, as
determined by the Secretary, including--
``(A) a sudden or severe economic dislocation;
``(B) significant chronic unemployment or poverty;
``(C) a natural disaster; or
``(D) other severe economic, social, or cultural
duress.
``(3) Other federal assistance.--For the purpose of
determining cost-share limitations for any other Federal
program, funds provided under this section shall be considered
to be non-Federal funds.

``(e) Preferences.--In providing regional innovation grants under
this section, the Secretary shall give--
``(1) a high priority to strategies that demonstrate
significant leverage of capital and quality job creation; and
``(2) a preference to an application proposing projects and
initiatives that would--
``(A) advance the overall regional competitiveness
of a region;
``(B) address the priorities of a regional rural
investment strategy, including priorities that--
``(i) promote cross-sector collaboration,
public-private partnerships, or the provision of
interim financing or seed capital for program
implementation;

[[Page 1953]]
122 STAT. 1953

``(ii) exhibit collaborative innovation and
entrepreneurship, particularly within a public-
private partnership; and
``(iii) represent a broad coalition of
interests described in section 385D(a);
``(C) include a strategy to leverage public non-
Federal and private funds and existing assets, including
agricultural, natural resource, and public
infrastructure assets, with substantial emphasis placed
on the existence of real financial commitments to
leverage available funds;
``(D) create quality jobs;
``(E) enhance the role, relevance, and leveraging
potential of community and regional foundations in
support of regional investment strategies;
``(F) demonstrate a history, or involve
organizations with a history, of successful leveraging
of capital for economic development and public purposes;
``(G) address gaps in existing basic services,
including technology, within a region;
``(H) address economic diversification, including
agricultural and non-agriculturally based economies,
within a regional framework;
``(I) improve the overall quality of life in the
region;
``(J) enhance the potential to expand economic
development successes across diverse stakeholder groups
within the region;
``(K) include an effective working relationship with
1 or more institutions of higher education, tribally
controlled colleges or universities, or tribal technical
institutions;
``(L) help to meet the other regional
competitiveness needs identified by a Regional Board; or
``(M) protect and promote rural heritage.

``(f) Uses.--
``(1) Leverage.--A Regional Board shall prioritize projects
and initiatives carried out using funds from a regional
innovation grant provided under this section, based in part on
the degree to which members of the Regional Board are able to
leverage additional funds for the implementation of the
projects.
``(2) Purposes.--A Regional Board may use a regional
innovation grant--
``(A) to support the development of critical
infrastructure (including technology deployment and
services) necessary to facilitate the competitiveness of
a region;
``(B) to provide assistance to entities within the
region that provide essential public and community
services;
``(C) to enhance the value-added production,
marketing, and use of agricultural and natural resources
within the region, including activities relating to
renewable and alternative energy production and usage;
``(D) to assist with entrepreneurship, job training,
workforce development, housing, educational, or other
quality of life services or needs, relating to the
development and maintenance of strong local and regional
economies;
``(E) to assist in the development of unique new
collaborations that link public, private, and
philanthropic resources, including community
foundations;

[[Page 1954]]
122 STAT. 1954

``(F) to provide support for business and
entrepreneurial investment, strategy, expansion, and
development, including feasibility strategies, technical
assistance, peer networks, business development funds,
and other activities to strengthen the economic
competitiveness of the region;
``(G) to provide matching funds to enable community
foundations located within the region to build
endowments which provide permanent philanthropic
resources to implement a regional investment strategy;
and
``(H) to preserve and promote rural heritage.
``(3) Availability of funds.--The funds made available to a
Regional Board or any other eligible grantee through a regional
innovation grant shall remain available for the 7-year period
beginning on the date on which the award is provided, on the
condition that the Regional Board or other grantee continues to
be certified by the Secretary as making adequate progress toward
achieving established benchmarks.

``(g) Cost Sharing.--
``(1) Waiver of grantee share.--The Secretary may waive the
share of a grantee of the costs of a project funded by a
regional innovation grant under this section if the Secretary
determines that such a waiver is appropriate, including with
respect to special circumstances within tribal regions, in the
event an area experiences--
``(A) a sudden or severe economic dislocation;
``(B) significant chronic unemployment or poverty;
``(C) a natural disaster; or
``(D) other severe economic, social, or cultural
duress.
``(2) Other federal programs.--For the purpose of
determining cost-sharing requirements for any other Federal
program, funds provided as a regional innovation grant under
this section shall be considered to be non-Federal funds.

``(h) Noncompliance.--If a Regional Board or other eligible grantee
fails to comply with any requirement relating to the use of funds
provided under this section, the Secretary may--
``(1) take such actions as are necessary to obtain
reimbursement of unused grant funds; and
``(2) reprogram the recaptured funds for purposes relating
to implementation of this subtitle.

``(i) Priority to Areas With Awards and Approved Strategies.--
``(1) In general.--Subject to paragraph (3), in providing
rural development assistance under other programs, the Secretary
shall give a high priority to areas that receive innovation
grants under this section.
``(2) Consultation.--The Secretary shall consult with the
heads of other Federal agencies to promote the development of
priorities similar to those described in paragraph (1).
``(3) Exclusion of certain programs.--Paragraph (1) shall
not apply to the provision of rural development assistance under
any program relating to basic health, safety, or infrastructure,
including broadband deployment or minimum environmental needs.

[[Page 1955]]
122 STAT. 1955

``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
``(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.

[[Page 1956]]
122 STAT. 1956

(3) Priority.--In providing funding under this section for
pending applications for loans or grants described in subsection
(b), the Secretary shall provide funding in the following order
of priority (until funds made available under this section are
exhausted):
(A) Pending applications for water systems.
(B) Pending applications for waste disposal systems.

(d) Funding.--Notwithstanding any other provision of law, of the
funds of the Commodity Credit Corporation, the Secretary shall use to
carry out this section $120,000,000, to remain available until expended.

Subtitle B--Rural Electrification Act of 1936

SEC. 6101. ENERGY EFFICIENCY PROGRAMS.

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

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

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

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

[[Page 1957]]
122 STAT. 1957

``(B) to install energy efficient measures or
devices that reduce the demand on electric systems.
``(2) Amount.--The total amount of a deferment under this
subsection shall not exceed the sum of the principal and
interest on the loans made to a customer of the borrower, as
determined by the Secretary.
``(3) Term.--The term of a deferment under this subsection
shall not exceed 60 months.''.
SEC. 6104. RURAL ELECTRIFICATION ASSISTANCE.

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

``In this Act:
``(1) Farm.--The term `farm' means a farm, as defined by the
Bureau of the Census.
``(2) Indian tribe.--The term `Indian tribe' has the meaning
given the term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
``(3) Rural area.--Except as provided otherwise in this Act,
the term `rural area' means the farm and nonfarm population of--
``(A) any area described in section 343(a)(13)(C) of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)(13)(C)); and
``(B) any area within a service area of a borrower
for which a borrower has an outstanding loan made under
titles I through V as of the date of enactment of this
paragraph.
``(4) Territory.--The term `territory' includes any insular
possession of the United States.
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.''.
SEC. 6105. [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.

[[Page 1958]]
122 STAT. 1958

``(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;
``(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: Recommenda- tions.]  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

[[Page 1959]]
122 STAT. 1959

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.
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.

[[Page 1960]]
122 STAT. 1960

``(c) Rate.--The rate of a loan under this section shall be equal to
the average tax-exempt municipal bond rate of similar maturities.''.
SEC. 6109. BONDING REQUIREMENTS.

Title III of the Rural Electrification Act of 1936 is amended by
inserting after section 317 (as added by section 6108) the following:
``SEC. 318. [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

[[Page 1961]]
122 STAT. 1961

funds for the construction, improvement, or acquisition of
facilities and equipment for the provision of broadband service
in rural areas.
``(2) Priority.--In making or guaranteeing loans under
paragraph (1), the Secretary shall give the highest priority to
applicants that offer to provide broadband service to the
greatest proportion of households that, prior to the provision
of the broadband service, had no incumbent service provider.

``(d) Eligibility.--
``(1) Eligible entities.--
``(A) In general.--To be eligible to obtain a loan
or loan guarantee under this section, an entity shall--
``(i) demonstrate the ability to furnish,
improve, or extend a broadband service to a rural
area;
``(ii) submit to the Secretary a loan
application at such time, in such manner, and
containing such information as the Secretary may
require; and
``(iii) [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.

[[Page 1962]]
122 STAT. 1962

``(3) Equity and market survey requirements.--
``(A) In general.--The Secretary may require an
entity to provide a cost share in an amount not to
exceed 10 percent of the amount of the loan or loan
guarantee requested in the application of the entity,
unless the Secretary determines that a higher percentage
is required for financial feasibility.
``(B) Market survey.--
``(i) In general.--The Secretary may require
an entity that proposes to have a subscriber
projection of more than 20 percent of the
broadband service market in a rural area to submit
to the Secretary a market survey.
``(ii) Less than 20 percent.--The Secretary
may not require an entity that proposes to have a
subscriber projection of less than 20 percent of
the broadband service market in a rural area to
submit to the Secretary a market survey.
``(4) State and local governments and indian tribes.--
Subject to paragraph (1), a State or local government (including
any agency, subdivision, or instrumentality thereof (including
consortia thereof)) and an Indian tribe shall be eligible for a
loan or loan guarantee under this section to provide broadband
services to a rural area.
``(5) Notice requirement.--The [NOTE: Publication.]
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

[[Page 1963]]
122 STAT. 1963

this section, the Secretary shall use criteria that are technologically
neutral.
``(g) Terms and Conditions for Loans and Loan Guarantees.--
``(1) In general.--Notwithstanding any other provision of
law, a loan or loan guarantee under this section shall--
``(A) bear interest at an annual rate of, as
determined by the Secretary--
``(i) in the case of a direct loan, a rate
equivalent to--
``(I) the cost of borrowing to the
Department of the Treasury for
obligations of comparable maturity; or
``(II) 4 percent; and
``(ii) in the case of a guaranteed loan, the
current applicable market rate for a loan of
comparable maturity; and
``(B) have a term of such length, not exceeding 35
years, as the borrower may request, if the Secretary
determines that the loan is adequately secured.
``(2) Term.--In determining the term of a loan or loan
guarantee, the Secretary shall consider whether the recipient is
or would be serving an area that is not receiving broadband
services.
``(3) Recurring revenue.--The Secretary shall consider the
existing recurring revenues of the entity at the time of
application in determining an adequate level of credit support.

``(h) Adequacy of Security.--
``(1) In general.--The Secretary shall ensure that the type
and amount of, and method of security used to secure, any loan
or loan guarantee under this section is commensurate to the risk
involved with the loan or loan guarantee, particularly in any
case in which the loan or loan guarantee is issued to a
financially strong and stable entity, as determined by the
Secretary.
``(2) Determination of amount and method of security.--In
determining the amount of, and method of security used to
secure, a loan or loan guarantee under this section, the
Secretary shall consider reducing the security in a rural area
that does not have broadband service.

``(i) Use of Loan Proceeds to Refinance Loans for Deployment of
Broadband Service.--Notwithstanding any other provision of this Act, the
proceeds of any loan made or guaranteed by the Secretary under this Act
may be used by the recipient of the loan for the purpose of refinancing
an outstanding obligation of the recipient on another telecommunications
loan made under this Act if the use of the proceeds for that purpose
will support the construction, improvement, or acquisition of facilities
and equipment for the provision of broadband service in rural areas.
``(j) Reports.--Not later than 1 year after the date of enactment of
the Food, Conservation, and Energy Act of 2008, and annually thereafter,
the Administrator shall submit to Congress a report that describes the
extent of participation in the loan and loan guarantee program under
this section for the preceding fiscal year, including a description of
--
``(1) the number of loans applied for and provided under
this section;

[[Page 1964]]
122 STAT. 1964

``(2)(A) the communities proposed to be served in each loan
application submitted for the fiscal year; and
``(B) the communities served by projects funded by loans and
loan guarantees provided under this section;
``(3) the period of time required to approve each loan
application under this section;
``(4) any outreach activities carried out by the Secretary
to encourage entities in rural areas without broadband service
to submit applications under this section;
``(5) the method by which the Secretary determines that a
service enables a subscriber to originate and receive high-
quality voice, data, graphics, and video for purposes of
subsection (b)(1); and
``(6) each broadband service, including the type and speed
of broadband service, for which assistance was sought, and each
broadband service for which assistance was provided, under this
section.

``(k) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$25,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.
``(2) Allocation of funds.--
``(A) In general.--From amounts made available for
each fiscal year under this subsection, the Secretary
shall--
``(i) establish a national reserve for loans
and loan guarantees to eligible entities in States
under this section; and
``(ii) allocate amounts in the reserve to each
State for each fiscal year for loans and loan
guarantees to eligible entities in the State.
``(B) Amount.--The amount of an allocation made to a
State for a fiscal year under subparagraph (A) shall
bear the same ratio to the amount of allocations made
for all States for the fiscal year as--
``(i) the number of communities with a
population of 2,500 inhabitants or less in the
State; bears to
``(ii) the number of communities with a
population of 2,500 inhabitants or less in all
States.
``(C) Unobligated amounts.--Any amounts in the
reserve established for a State for a fiscal year under
subparagraph (B) that are not obligated by April 1 of
the fiscal year shall be available to the Secretary to
make loans and loan guarantees under this section to
eligible entities in any State, as determined by the
Secretary.

``(l) Termination of Authority.--No loan or loan guarantee may be
made under this section after September 30, 2012.''.
(b) Regulations.--The [NOTE: 7 USC 950bb note.]  Secretary may
implement the amendment made by subsection (a) through the promulgation
of an interim regulation.

(c) Application.--The [NOTE: 7 USC 950bb note.]  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

[[Page 1965]]
122 STAT. 1965

(B) is pending on the date of enactment of this Act;
or
(2) a petition for reconsideration of a decision on an
application described in paragraph (1).
SEC. 6111. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS
ASSESSMENT.

Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb et
seq.) is amended by adding at the end the following:
``SEC. 602. [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).

[[Page 1966]]
122 STAT. 1966

``(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--
(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.

[[Page 1967]]
122 STAT. 1967

Subtitle C--Miscellaneous

SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.

(a) In General.--Section 2333(c)(1) of the Food, Agriculture,
Conservation and Trade Act of 1990 (7 U.S.C. Sec. 950aaa-2(a)(1)) is
amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(C) libraries.''.

(b) Authorization of Appropriations.--Section 2335A of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is
amended by striking ``2007'' and inserting ``2012''.
(c) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7
U.S.C. 950aaa note; Public Law 102-551) is amended by striking ``2007''
and inserting ``2012''.
SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM
GRANTS.

(a) Definitions.--Section 231 of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is amended by
striking subsection (a) and inserting the following:
``(a) Definitions.--In this section:
``(1) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning given the term in section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)).
``(2) Family farm.--The term `family farm' has the meaning
given the term in section 761.2 of title 7, Code of Federal
Regulations (as in effect on December 30, 2007).
``(3) Mid-tier value chain.--The term `mid-tier value chain'
means local and regional supply networks that link independent
producers with businesses and cooperatives that market value-
added agricultural products in a manner that--
``(A) targets and strengthens the profitability and
competitiveness of small and medium-sized farms and
ranches that are structured as a family farm; and
``(B) obtains agreement from an eligible
agricultural producer group, farmer or rancher
cooperative, or majority-controlled producer-based
business venture that is engaged in the value chain on a
marketing strategy.
``(4) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning given
the term in section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e)).
``(5) Value-added agricultural product.--The term `value-
added agricultural product' means any agricultural commodity or
product that--
``(A)(i) has undergone a change in physical state;
``(ii) was produced in a manner that enhances the
value of the agricultural commodity or product, as
demonstrated through a business plan that shows the
enhanced value, as determined by the Secretary;

[[Page 1968]]
122 STAT. 1968

``(iii) is physically segregated in a manner that
results in the enhancement of the value of the
agricultural commodity or product;
``(iv) is a source of farm- or ranch-based renewable
energy, including E-85 fuel; or
``(v) is aggregated and marketed as a locally-
produced agricultural food product; and
``(B) as a result of the change in physical state or the
manner in which the agricultural commodity or product was
produced, marketed, or segregated--
``(i) the customer base for the agricultural
commodity or product is expanded; and
``(ii) a greater portion of the revenue derived from
the marketing, processing, or physical segregation of
the agricultural commodity or product is available to
the producer of the commodity or product.''.

(b) Grant Program.--Section 231(b) of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is
amended--
(1) in paragraph (1), by striking ``paragraph (4)'' and
inserting ``paragraph (7)''; and
(2) by striking paragraph (4) and inserting the following:
``(4) Term.--A grant under this subsection shall have a term
that does not exceed 3 years.
``(5) Simplified application.--The Secretary shall offer a
simplified application form and process for project proposals
requesting less than $50,000.
``(6) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to projects that contribute to
increasing opportunities for--
``(A) beginning farmers or ranchers;
``(B) socially disadvantaged farmers or ranchers;
and
``(C) operators of small- and medium-sized farms and
ranches that are structured as a family farm.
``(7) Funding.--
``(A) Mandatory funding.--On October 1, 2008, of the
funds of the Commodity Credit Corporation, the Secretary
shall make available to carry out this subsection
$15,000,000, to remain available until expended.
``(B) Discretionary funding.--There is authorized to
be appropriated to carry out this subsection $40,000,000
for each of fiscal years 2008 through 2012.
``(C) Reservation of funds for projects to benefit
beginning farmers or ranchers, socially disadvantaged
farmers or ranchers, and mid-tier value chains.--
``(i) In general.--The Secretary shall reserve
10 percent of the amounts made available for each
fiscal year under this paragraph to fund projects
that benefit beginning farmers or ranchers or
socially disadvantaged farmers or ranchers.
``(ii) Mid-tier value chains.--The Secretary
shall reserve 10 percent of the amounts made
available for each fiscal year under this
paragraph to fund applications of eligible
entities described in paragraph (1) that propose
to develop mid-tier value chains.

[[Page 1969]]
122 STAT. 1969

``(iii) Unobligated amounts.--Any amounts in
the reserves for a fiscal year established under
clauses (i) and (ii) that are not obligated by
June 30 of the fiscal year shall be available to
the Secretary to make grants under this subsection
to eligible entities in any State, as determined
by the Secretary.''.
SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

Section 6402 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 1621 note; Public Law 107-171) is amended by striking
subsection (i) and inserting the following:
``(i) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $6,000,000 for
each of fiscal years 2008 through 2012.''.
SEC. 6204. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE
ASSISTANCE PROGRAM.

Section 6405 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 2655) is amended to read as follows:
``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE
ASSISTANCE PROGRAM.

``(a) Definition of Emergency Medical Services.--In this section:
``(1) In general.--The term `emergency medical services'
means resources used by a public or nonprofit entity to deliver
medical care outside of a medical facility under emergency
conditions that occur as a result of--
``(A) the condition of a patient; or
``(B) a natural disaster or related condition.
``(2) Inclusion.--The term `emergency medical services'
includes services (whether compensated or volunteer) delivered
by an emergency medical services provider or other provider
recognized by the State involved that is licensed or certified
by the State as--
``(A) an emergency medical technician or the
equivalent (as determined by the State);
``(B) a registered nurse;
``(C) a physician assistant; or
``(D) a physician that provides services similar to
services provided by such an emergency medical services
provider.

``(b) Grants.--The Secretary shall award grants to eligible
entities--
``(1) to enable the entities to provide for improved
emergency medical services in rural areas; and
``(2) to pay the cost of training firefighters and emergency
medical personnel in firefighting, emergency medical practices,
and responding to hazardous materials and bioagents in rural
areas.

``(c) Eligibility.--To be eligible to receive a grant under this
section, an entity shall--
``(1) be--
``(A) a State emergency medical services office;
``(B) a State emergency medical services
association;
``(C) a State office of rural health or an
equivalent agency;

[[Page 1970]]
122 STAT. 1970

``(D) a local government entity;
``(E) an Indian tribe (as defined in section 4 of
the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b));
``(F) a State or local ambulance provider; or
``(G) any other public or nonprofit entity
determined appropriate by the Secretary; and
``(2) prepare and submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require, that includes--
``(A) a description of the activities to be carried
out under the grant; and
``(B) an assurance that the applicant will comply
with the matching requirement of subsection (f).

``(d) Use of Funds.--An entity shall use amounts received under a
grant made under subsection (b) only in a rural area--
``(1) to hire or recruit emergency medical service
personnel;
``(2) to recruit or retain volunteer emergency medical
service personnel;
``(3) to train emergency medical service personnel in
emergency response, injury prevention, safety awareness, or
other topics relevant to the delivery of emergency medical
services;
``(4) to fund training to meet State or Federal
certification requirements;
``(5) to provide training for firefighters or emergency
medical personnel for improvements to the training facility,
equipment, curricula, or personnel;
``(6) to develop new ways to educate emergency health care
providers through the use of technology-enhanced educational
methods (such as distance learning);
``(7) to acquire emergency medical services vehicles,
including ambulances;
``(8) to acquire emergency medical services equipment,
including cardiac defibrillators;
``(9) to acquire personal protective equipment for emergency
medical services personnel as required by the Occupational
Safety and Health Administration; or
``(10) to educate the public concerning cardiopulmonary
resuscitation (CPR), first aid, injury prevention, safety
awareness, illness prevention, or other related emergency
preparedness topics.

``(e) Preference.--In awarding grants under this section, the
Secretary shall give preference to--
``(1) applications that reflect a collaborative effort by 2
or more of the entities described in subparagraphs (A) through
(G) of subsection (c)(1); and
``(2) applications submitted by entities that intend to use
amounts provided under the grant to fund activities described in
any of paragraphs (1) through (5) of subsection (d).

``(f) Matching Requirement.--The Secretary may not make a grant
under this section to an entity unless the entity makes available
(directly or through contributions from other public or private
entities) non-Federal contributions toward the activities to be carried
out under the grant in an amount equal to at least 5 percent of the
amount received under the grant.
``(g) Authorization of Appropriations.--

[[Page 1971]]
122 STAT. 1971

``(1) In general.--There is authorized to be appropriated to
the Secretary to carry out this section not more than
$30,000,000 for each of fiscal years 2008 through 2012.
``(2) Administrative costs.--Not more than 5 percent of the
amount appropriated under paragraph (1) for a fiscal year may be
used for administrative expenses incurred in carrying out this
section.''.
SEC. 6205. INSURANCE OF LOANS FOR HOUSING AND RELATED FACILITIES
FOR DOMESTIC FARM LABOR.

Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C. 1484(f)(3))
is amended by striking ``or the handling of such commodities in the
unprocessed stage'' and inserting ``, the handling of agricultural or
aquacultural commodities in the unprocessed stage, or the processing of
agricultural or aquacultural commodities''.
SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES.

(a) In General.--The Secretary of Agriculture and the Secretary of
Transportation shall jointly conduct a study of transportation issues
regarding the movement of agricultural products, domestically produced
renewable fuels, and domestically produced resources for the production
of electricity for rural areas of the United States, and economic
development in those areas.
(b) Inclusions.--The study shall include an examination of--
(1) the importance of freight transportation, including
rail, truck, and barge, to--
(A) the delivery of equipment, seed, fertilizer, and
other such products important to the development of
agricultural commodities and products;
(B) the movement of agricultural commodities and
products to market;
(C) the delivery of ethanol and other renewable
fuels;
(D) the delivery of domestically produced resources
for use in the generation of electricity for rural
areas;
(E) the location of grain elevators, ethanol plants,
and other facilities;
(F) the development of manufacturing facilities in
rural areas; and
(G) the vitality and economic development of rural
communities;
(2) the sufficiency in rural areas of transportation
capacity, the sufficiency of competition in the transportation
system, the reliability of transportation services, and the
reasonableness of transportation rates;
(3) the sufficiency of facility investment in rural areas
necessary for efficient and cost-effective transportation; and
(4) the accessibility to shippers in rural areas of Federal
processes for the resolution of grievances arising within
various transportation modes.

(c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary and the Secretary of Transportation
shall submit to Congress a report that contains the results of the study
required by subsection (a).

[[Page 1972]]
122 STAT. 1972

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;
(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.

[[Page 1973]]
122 STAT. 1973

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.

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--

[[Page 1974]]
122 STAT. 1974

``(i) qualify as Hispanic-serving
institutions; and
``(ii) offer associate, bachelors, or other
accredited degree programs in agriculture-related
fields.
``(B) Exception.--The term `Hispanic-serving
agricultural colleges and universities' does not include
1862 institutions (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7601)).'';
(5) by striking paragraph (11) (as so redesignated) and
inserting the following:
``(11) Hispanic-serving institution.--The term `Hispanic-
serving institution' has the meaning given the term in section
502 of the Higher Education Act of 1965 (20 U.S.C. 1101a).'';
and
(6) by inserting after paragraph (13) (as so redesignated)
the following:
``(14) NLGCA institution; non-land-grant college of
agriculture.--
``(A) In general.--The terms `NLGCA Institution' and
`non-land-grant college of agriculture' mean a public
college or university offering a baccalaureate or higher
degree in the study of agriculture or forestry.
``(B) Exclusions.--The terms `NLGCA Institution' and
`non-land-grant college of agriculture' do not include--
``(i) Hispanic-serving agricultural colleges
and universities; or
``(ii) any institution designated under--
``(I) the Act of July 2, 1862
(commonly known as the `First Morrill
Act'; 7 U.S.C. 301 et seq.);
``(II) the Act of August 30, 1890
(commonly known as the `Second Morrill
Act') (7 U.S.C. 321 et seq.);
``(III) the Equity in Educational
Land-Grant Status Act of 1994 (Public
Law 103-382; 7 U.S.C. 301 note); or
``(IV) Public Law 87-788 (commonly
known as the `McIntire-Stennis
Cooperative Forestry Act') (16 U.S.C.
582a et seq.).''.

(b) Conforming Amendments.--
(1) Section 2(3) of the Research Facilities Act (7 U.S.C.
390(3)) is amended by striking ``section 1404(8) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103(8))'' and inserting ``section 1404 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)''.
(2) Section 2(k) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(k)) is amended in the second
sentence by striking ``section 1404(17) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103(17))'' and inserting ``section 1404 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)''.
(3) Section 18(a)(3)(B) of the Food and Nutrition Act of
2008 (7 U.S.C. 2027(a)(3)(B)) is amended by striking ``section
1404(5) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(5)))'' and inserting

[[Page 1975]]
122 STAT. 1975

``section 1404 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3103))''.
(4) Section 1473 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is
amended in the first sentence by striking ``section 1404(16) of
this title'' and inserting ``section 1404(18)''.
(5) Section 1619(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
(A) in paragraph (1), by striking ``section 1404(17)
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(17))'' and
inserting ``section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)'';
(B) in paragraph (5), by striking ``section 1404(7)
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(7))'' and
inserting ``section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)''; and
(C) in paragraph (8), by striking ``section 1404(13)
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(13))'' and
inserting ``section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)''.
(6) Section 125(c)(1)(C) of Public Law 100-238 (5 U.S.C.
8432 note) is amended by striking ``section 1404(5) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103(5))'' and inserting ``section 1404 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)''.
SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION,
AND ECONOMICS ADVISORY BOARD.

(a) In General.--Section 1408 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``31'' and
inserting ``25''; and
(B) by striking paragraph (3) and inserting the
following:
``(3) Membership categories.--The Advisory Board shall
consist of members from each of the following categories:
``(A) 1 member representing a national farm
organization.
``(B) 1 member representing farm cooperatives.
``(C) 1 member actively engaged in the production of
a food animal commodity, recommended by a coalition of
national livestock organizations.
``(D) 1 member actively engaged in the production of
a plant commodity, recommended by a coalition of
national crop organizations.
``(E) 1 member actively engaged in aquaculture,
recommended by a coalition of national aquacultural
organizations.

[[Page 1976]]
122 STAT. 1976

``(F) 1 member representing a national food animal
science society.
``(G) 1 member representing a national crop, soil,
agronomy, horticulture, plant pathology, or weed science
society.
``(H) 1 member representing a national food science
organization.
``(I) 1 member representing a national human health
association.
``(J) 1 member representing a national nutritional
science society.
``(K) 1 member representing the land-grant colleges
and universities eligible to receive funds under the Act
of July 2, 1862 (7 U.S.C. 301 et seq.).
``(L) 1 member representing the land-grant colleges
and universities eligible to receive funds under the Act
of August 30, 1890 (7 U.S.C. 321 et seq.), including
Tuskegee University.
``(M) 1 member representing the 1994 Institutions
(as defined in section 532 of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103-382)).
``(N) 1 member representing NLGCA Institutions.
``(O) 1 member representing Hispanic-serving
institutions.
``(P) 1 member representing the American Colleges of
Veterinary Medicine.
``(Q) 1 member engaged in the transportation of food
and agricultural products to domestic and foreign
markets.
``(R) 1 member representing food retailing and
marketing interests.
``(S) 1 member representing food and fiber
processors.
``(T) 1 member actively engaged in rural economic
development.
``(U) 1 member representing a national consumer
interest group.
``(V) 1 member representing a national forestry
group.
``(W) 1 member representing a national conservation
or natural resource group.
``(X) 1 member representing private sector
organizations involved in international development.
``(Y) 1 member representing a national social
science association.'';
(2) in subsection (g)(1), by striking ``$350,000'' and
inserting ``$500,000''; and
(3) in subsection (h), by striking ``2007'' and inserting
``2012''.

(b) [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:

[[Page 1977]]
122 STAT. 1977

``(4) Analyses of changes in macroeconomic conditions,
technologies, and policies on specialty crop production and
consumption, with particular focus on the effect of those
changes on the financial stability of producers.
``(5) Development of data that provide applied information
useful to specialty crop growers, their associations, and other
interested beneficiaries in evaluating that industry from a
regional and national perspective.''.
SEC. 7104. RENEWABLE ENERGY COMMITTEE.

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

[[Page 1978]]
122 STAT. 1978

``(b) Determination of Veterinarian Shortage Situations.--In
determining `veterinarian shortage situations', the Secretary may
consider--
``(1) geographical areas that the Secretary determines have
a shortage of veterinarians; and
``(2) areas of veterinary practice that the Secretary
determines have a shortage of veterinarians, such as food animal
medicine, public health, epidemiology, and food safety.'';
(2) in subsection (c), by adding at the end the following:
``(8) Priority.--In administering the program, the Secretary
shall give priority to agreements with veterinarians for the
practice of food animal medicine in veterinarian shortage
situations.'';
(3) by redesignating subsection (d) as subsection (f); and
(4) by inserting after subsection (c) the following:

``(d) Use of Funds.--None of the funds appropriated to the Secretary
under subsection (f) may be used to carry out section 5379 of title 5,
United States Code.
``(e) Regulations.--Notwithstanding [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--

[[Page 1979]]
122 STAT. 1979

(1) in the subsection heading, by striking ``Teaching
Awards'' and inserting ``Teaching, Extension, and Research
Awards''; and
(2) by striking paragraph (1) and inserting the following:
``(1) Establishment.--
``(A) In general.--The Secretary shall establish a
National Food and Agricultural Sciences Teaching,
Extension, and Research Awards program to recognize and
promote excellence in teaching, extension, and research
in the food and agricultural sciences at a college or
university.
``(B) Minimum requirement.--The Secretary shall make
at least 1 cash award in each fiscal year to a nominee
selected by the Secretary for excellence in each of the
areas of teaching, extension, and research of food and
agricultural science at a college or university.''.
SEC. 7109. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL
SCIENCES EDUCATION.

(a) Education Teaching Programs.--Section 1417(j) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3152(j)) is amended--
(1) in the subsection heading, by striking ``Secondary
Education and 2-Year Postsecondary Education Teaching Programs''
and inserting ``Secondary Education, 2-Year Postsecondary
Education, and Agriculture in the K-12 Classroom''; and
(2) in paragraph (3)--
(A) by striking ``secondary schools, and
institutions of higher education that award an
associate's degree'' and inserting ``secondary schools,
institutions of higher education that award an
associate's degree, other institutions of higher
education, and nonprofit organizations'';
(B) in subparagraph (E), by striking ``and'' at the
end;
(C) in subparagraph (F), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(G) to support current agriculture in the
classroom programs for grades K-12.''.

(b) Report.--Section 1417 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:

``(l) Report.--The Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a biennial report
detailing the distribution of funds used to implement the teaching
programs under subsection (j).''.
(c) Authorization of Appropriations.--Section 1417(m) of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (as redesignated by subsection (b)(1)) is amended by striking
``2007'' and inserting ``2012''.
(d) [NOTE: 7 USC 3152 note.]  Effective Date.--The amendments made
by subsection (a) take effect on October 1, 2008.

[[Page 1980]]
122 STAT. 1980

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

(a) In General.--Section 1419 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is repealed.
(b) Conforming Amendment.--Section 1463(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3311(a)) is amended by striking ``1419,''.
SEC. 7111. POLICY RESEARCH CENTERS.

Section 1419A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
(1) in subsection (a)(1), by inserting ``(including
commodities, livestock, dairy, and specialty crops)'' after
``agricultural sectors'';
(2) in subsection (b), by inserting ``(including the Food
Agricultural Policy Research Institute, the Agricultural and
Food Policy Center, the Rural Policy Research Institute, and the
National Drought Mitigation Center)'' after ``research
institutions and organizations''; and
(3) in subsection (d), by striking ``2007'' and inserting
``2012''.
SEC. 7112. EDUCATION GRANTS TO ALASKA NATIVE-SERVING INSTITUTIONS
AND NATIVE HAWAIIAN-SERVING
INSTITUTIONS.

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

[[Page 1981]]
122 STAT. 1981

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

Section 1424(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7115. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND
AGRICULTURAL RESEARCH.

Section 1424A(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7116. NUTRITION EDUCATION PROGRAM.

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

``(a) Definition of 1862 Institution and 1890 Institution.--In this
section, the terms `1862 Institution' and `1890 Institution' have the
meaning given those terms in section 2 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7601).'';
(3) in subsection (b) (as redesignated by paragraph (1)), by
striking ``(b) The Secretary'' and inserting the following:

``(b) Establishment.--The Secretary'';
(4) in subsection (c) (as so redesignated), by striking
``(c) In order to enable'' and inserting the following:

``(c) Employment and Training.--To enable'';
(5) in subsection (d) (as redesignated by paragraph (1))--
(A) by striking ``(d) Beginning'' and inserting the
following:

``(d) Allocation of Funding.--Beginning'';
(B) in paragraph (2), by striking subparagraph (B)
and inserting the following:
``(B) Notwithstanding section 3(d) of the Act of May
8, 1914 (7 U.S.C. 343(d)), the remainder shall be
allocated among the States as follows:
``(i) $100,000 shall be distributed to each
1862 Institution and 1890 Institution.
``(ii) Subject to clause (iii), the remainder
shall be allocated to each State in an amount that
bears the same ratio to the total amount to be
allocated under this clause as--
``(I) the population living at or
below 125 percent of the income poverty
guidelines (as prescribed by the Office
of Management and Budget and as adjusted
pursuant to section 673(2) of the
Community Services Block Grant Act (42
U.S.C. 9902(2))) in the State; bears to
``(II) the total population living
at or below 125 percent of those income
poverty guidelines in all States;

[[Page 1982]]
122 STAT. 1982

as determined by the most recent decennial census
at the time at which each such additional amount
is first appropriated.
``(iii)(I) Before any allocation of funds
under clause (ii), for any fiscal year for which
the amount of funds appropriated for the conduct
of the expanded food and nutrition education
program exceeds the amount of funds appropriated
for the program for fiscal year 2007, the
following percentage of such excess funds for the
fiscal year shall be allocated to the 1890
Institutions in accordance with subclause (II):
``(aa) 10 percent for fiscal year
2009.
``(bb) 11 percent for fiscal year
2010.
``(cc) 12 percent for fiscal year
2011.
``(dd) 13 percent for fiscal year
2012.
``(ee) 14 percent for fiscal year
2013.
``(ff) 15 percent for fiscal year
2014 and for each fiscal year
thereafter.
``(II) Funds made available under subclause
(I) shall be allocated to each 1890 Institution in
an amount that bears the same ratio to the total
amount to be allocated under this clause as--
``(aa) the population living at or
below 125 percent of the income poverty
guidelines (as prescribed by the Office
of Management and Budget and as adjusted
pursuant to section 673(2) of the
Community Services Block Grant Act (42
U.S.C. 9902(2))) in the State in which
the 1890 Institution is located; bears
to
``(bb) the total population living
at or below 125 percent of those income
poverty guidelines in all States in
which 1890 Institutions are located;
as determined by the most recent decennial census
at the time at which each such additional amount
is first appropriated.
``(iv) Nothing in this subparagraph precludes
the Secretary from developing educational
materials and programs for persons in income
ranges above the level designated in this
subparagraph.''; and
(C) by striking paragraph (3); and
(6) by adding at the end the following:

``(e) Complementary Administration.--The Secretary shall ensure the
complementary administration of the expanded food and nutrition
education program by 1862 Institutions and 1890 Institutions in a State.
``(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the expanded food and nutrition education
program established under section 3(d) of the Act of May 8, 1914 (7
U.S.C. 343(d)), and this section $90,000,000 for each of fiscal years
2009 through 2012.''.
(b) Conforming Amendment.--Section 1588(b) of the Food Security Act
of 1985 (7 U.S.C. 3175e(b)) is amended by striking ``section
1425(c)(2)'' and inserting ``section 1425(d)(2)''.
(c) [NOTE: 7 USC 3175 note.]  Effective Date.--The amendments made
by this section take effect on October 1, 2008.

[[Page 1983]]
122 STAT. 1983

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

Section 1433(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended in the
first sentence by striking ``2007'' and inserting ``2012''.
SEC. 7118. COOPERATION AMONG ELIGIBLE INSTITUTIONS.

Section 1433 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by adding at the
end the following:
``(g) Cooperation Among Eligible Institutions.--The Secretary, to
the maximum extent practicable, shall encourage eligible institutions to
cooperate in setting research priorities under this section through the
conduct of regular regional and national meetings.''.
SEC. 7119. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL
PROBLEMS.

Section 1434(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7120. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM.

Section 1434(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3196(b)) is amended by
inserting after ``universities'' the following: ``(including 1890
Institutions (as defined in section 2 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)))''.
SEC. 7121. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-GRANT
COLLEGES.

Section 1444(a)(2) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)(2)) is amended by
striking ``15 percent'' and inserting ``20 percent''.
SEC. 7122. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT 1890
LAND-GRANT COLLEGES.

Section 1445(a)(2) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)(2)) is amended by
striking ``25 percent'' and inserting ``30 percent''.
SEC. 7123. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES
FACILITIES AT 1890 LAND-GRANT COLLEGES,
INCLUDING TUSKEGEE UNIVERSITY.

Section 1447(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7124. [NOTE: 7 USC 3222b-1.]  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:

[[Page 1984]]
122 STAT. 1984

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

``(a) Purpose.--It is the intent of Congress to assist the land-
grant university in the District of Columbia established under section
208 of the District of Columbia Public Postsecondary Education
Reorganization Act (Public Law 93-471; 88 Stat. 1428) in efforts to
acquire, alter, or repair facilities or relevant equipment necessary for
conducting agricultural research.
``(b) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $750,000 for each of fiscal years
2008 through 2012.''.
SEC. 7125. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AND EQUIPMENT AT INSULAR AREA
LAND-GRANT INSTITUTIONS.

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

[[Page 1985]]
122 STAT. 1985

SEC. 7128. HISPANIC-SERVING INSTITUTIONS.

Section 1455 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3241) is amended--
(1) in subsection (a) by striking ``(or grants without
regard to any requirement for competition)'';
(2) in subsection (b)(1), by striking ``of consortia''; and
(3) in subsection (c)--
(A) by striking ``$20,000,000'' and inserting
``$40,000,000''; and
(B) by striking ``2007'' and inserting ``2012''.
SEC. 7129. HISPANIC-SERVING AGRICULTURAL COLLEGES AND
UNIVERSITIES.

(a) In General.--The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended by inserting after section 1455
(7 U.S.C. 3241) the following:
``SEC. 1456. [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.

[[Page 1986]]
122 STAT. 1986

``(6) Endowments.--Amounts made available under this
subsection shall be held and considered to be granted to
Hispanic-serving agricultural colleges and universities to
establish an endowment in accordance with this subsection.
``(7) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as are necessary
to carry out this subsection for fiscal year 2008 and each
fiscal year thereafter.

``(c) Authorization for Annual Payments.--
``(1) In general.--For fiscal year 2008 and each fiscal year
thereafter, there are authorized to be appropriated to the
Department of Agriculture to carry out this subsection an amount
equal to the product obtained by multiplying--
``(A) $80,000; by
``(B) the number of Hispanic-serving agricultural
colleges and universities.
``(2) Payments.--For fiscal year 2008 and each fiscal year
thereafter, the Secretary of the Treasury shall pay to the
treasurer of each Hispanic-serving agricultural college and
university an amount equal to--
``(A) the total amount made available by
appropriations under paragraph (1); divided by
``(B) the number of Hispanic-serving agricultural
colleges and universities.
``(3) Use of funds.--
``(A) In general.--Amounts authorized to be
appropriated under this subsection shall be used in the
same manner as is prescribed for colleges under the Act
of August 30, 1890 (commonly known as the `Second
Morrill Act') (7 U.S.C. 321 et seq.).
``(B) Relationship to other law.--
Except [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

[[Page 1987]]
122 STAT. 1987

for a project after making a reasonable effort to
otherwise obtain the funding.
``(C) Payment of non-federal share.--A grant awarded
under this subsection shall be made only if the
recipient of the grant pays a non-Federal share in an
amount that is specified by the Secretary and based on
assessed institutional needs.
``(3) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as are necessary
to carry out this subsection for fiscal year 2008 and each
fiscal year thereafter.

``(e) Competitive Grants Program.--
``(1) In general.--The Secretary shall establish a
competitive grants program to fund fundamental and applied
research at Hispanic-serving agricultural colleges and
universities in agriculture, human nutrition, food science,
bioenergy, and environmental science.
``(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as are necessary
to carry out this subsection for fiscal year 2008 and each
fiscal year thereafter.''.

(b) Extension.--Section 3 of the Smith-Lever Act (7 U.S.C. 343) is
amended--
(1) in subsection (b), by adding at the end the following:
``(4) Annual appropriation for hispanic-serving agricultural
colleges and universities.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary for
payments to Hispanic-serving agricultural colleges and
universities (as defined in section 1404 of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)) such sums as are necessary
to carry out this paragraph for fiscal year 2008 and
each fiscal year thereafter, to remain available until
expended.
``(B) Additional amount.--Amounts made available
under this paragraph shall be in addition to any other
amounts made available under this section to States, the
Commonwealth of Puerto Rico, Guam, or the United States
Virgin Islands.
``(C) Administration.--Amounts made available under
this paragraph shall be--
``(i) distributed on the basis of a
competitive application process to be developed
and implemented by the Secretary;
``(ii) paid by the Secretary to the State
institutions established in accordance with the
Act of July 2, 1862 (commonly known as the `First
Morrill Act') (7 U.S.C. 301 et seq.); and
``(iii) administered by State institutions
through cooperative agreements with the Hispanic-
serving agricultural colleges and universities in
the State in accordance with regulations
promulgated by the Secretary.''; and
(2) in subsection (f)--
(A) in the subsection heading, by inserting ``and
Hispanic-Serving Agricultural Colleges and
Universities'' after ``1994 Institutions''; and

[[Page 1988]]
122 STAT. 1988

(B) by striking ``pursuant to subsection (b)(3)''
and inserting ``or Hispanic-serving agricultural
colleges and universities in accordance with paragraphs
(3) and (4) of subsection (b)''.

(c) Conforming Amendments.--
(1) Section 2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601) is amended--
(A) by redesignating paragraph (6) as paragraph (7);
and
(B) by inserting after paragraph (5) the following:
``(6) Hispanic-serving agricultural colleges and
universities.--The term `Hispanic-serving agricultural colleges
and universities' has the meaning given the term in section 1404
of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103).''.
(2) Section 102(c) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7612(c)) is amended--
(A) in the subsection heading, by inserting ``and
Hispanic-Serving Agricultural Colleges and
Universities'' after ``Institutions''; and
(B) in paragraph (1), by striking `` and 1994
Institution'' and inserting ``1994 Institution, and
Hispanic-serving agricultural college and university''.
(3) Section 103(e) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613(e)) is amended
by adding at the end the following:
``(3) Hispanic-serving agricultural colleges and
universities.--To be eligible to obtain agricultural extension
funds from the Secretary for an activity, each Hispanic-serving
agricultural college and university shall--
``(A) establish a process for merit review of the
activity; and
``(B) review the activity in accordance with such
process.''.
(4) Section 406(b) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended
by striking ``and 1994 Institutions'' and inserting ``, 1994
Institutions, and Hispanic-serving agricultural colleges and
universities''.
SEC. 7130. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND
EDUCATION.

Section 1458(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``and'' after
the semicolon;
(B) in subparagraph (B), by adding ``and'' at the
end; and
(C) by adding at the end the following:
``(C) giving priority to those institutions with
existing memoranda of understanding, agreements, or
other formal ties to United States institutions, or
Federal or State agencies;'';
(2) by striking paragraph (3) and inserting the following:

[[Page 1989]]
122 STAT. 1989

``(3) enter into agreements with land-grant colleges and
universities, Hispanic-serving agricultural colleges and
universities, the Agency for International Development, and
international organizations (such as the United Nations, the
World Bank, regional development banks, international
agricultural research centers), or other organizations,
institutions, or individuals with comparable goals, to promote
and support--
``(A) the development of a viable and sustainable
global agricultural system;
``(B) antihunger and improved international
nutrition efforts; and
``(C) increased quantity, quality, and availability
of food;'';
(3) in paragraph (7)(A), by striking ``and land-grant
colleges and universities'' and inserting ``, land-grant
colleges and universities, and Hispanic-serving agricultural
colleges and universities'';
(4) in paragraph (9)--
(A) in subparagraph (A), by striking ``or other
colleges and universities'' and inserting ``, Hispanic-
serving agricultural colleges and universities, or other
colleges and universities''; and
(B) in subparagraph (D), by striking ``and'' at the
end;
(5) in paragraph (10), by striking the period at the end and
inserting ``; and''; and
(6) by adding at the end the following:
``(11) establish a program for the purpose of providing
fellowships to United States or foreign students to study at
foreign agricultural colleges and universities working under
agreements provided for under paragraph (3).''.
SEC. 7131. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL
SCIENCE AND EDUCATION PROGRAMS.

Section 1459A(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7132. ADMINISTRATION.

(a) Limitation on Indirect Costs for Agricultural Research,
Education, and Extension Programs.--Section 1462(a) of the National
Agriculture Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3310(a)) is amended--
(1) by striking ``a competitive'' and inserting ``any''; and
(2) by striking ``19 percent'' and inserting ``22 percent''.

(b) Auditing, Reporting, Bookkeeping, and Administrative
Requirements.--Section 1469(a)(3) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3315(a)(3)) is
amended by striking ``appropriated'' and inserting ``made available''.
SEC. 7133. RESEARCH EQUIPMENT GRANTS.

Section 1462A(e) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3310a(e)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7134. UNIVERSITY RESEARCH.

Section 1463 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by

[[Page 1990]]
122 STAT. 1990

striking ``2007'' each place it appears in subsections (a) and (b) and
inserting ``2012''.
SEC. 7135. EXTENSION SERVICE.

Section 1464 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7136. SUPPLEMENTAL AND ALTERNATIVE CROPS.

Section 1473D(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7137. NEW ERA RURAL TECHNOLOGY PROGRAM.

Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) is amended by adding
at the end the following:
``SEC. 1473E. [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) [NOTE: Grants.]  In general.--The Secretary
shall establish a program to be known as the `New Era
Rural Technology Program', to make grants available for
technology development, applied research, and training
to aid in the development of an agriculture-based
renewable energy workforce.
``(B) Support.--The initiative under this section
shall support the fields of--
``(i) bioenergy;
``(ii) pulp and paper manufacturing; and
``(iii) agriculture-based renewable energy
resources.
``(2) Requirements for funding.--To receive funding under
this section, an entity shall--
``(A) be a community college or advanced
technological center, located in a rural area and in
existence on the

[[Page 1991]]
122 STAT. 1991

date of the enactment of this section, that participates
in agricultural or bioenergy research and applied
research;
``(B) have a proven record of development and
implementation of programs to meet the needs of
students, educators, and business and industry to supply
the agriculture-based, renewable energy or pulp and
paper manufacturing fields with certified technicians,
as determined by the Secretary; and
``(C) have the ability to leverage existing
partnerships and occupational outreach and training
programs for secondary schools, 4-year institutions, and
relevant nonprofit organizations.

``(c) Grant Priority.--In providing grants under this section, the
Secretary shall give preference to eligible entities working in
partnership--
``(1) to improve information-sharing capacity; and
``(2) to maximize the ability to meet the requirements of
this section.

``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2008 through 2012.''.
SEC. 7138. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7137) is amended by adding at the end the following:
``SEC. 1473F. [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--

[[Page 1992]]
122 STAT. 1992

``(i) the purchase or other acquisition of
equipment and other infrastructure (not including
alteration, repair, renovation, or construction of
buildings);
``(ii) the professional growth and development
of the faculty of the NLGCA Institution; and
``(iii) the development of graduate
assistantships.

``(b) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2008 through 2012.''.
SEC. 7139. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND
TECHNOLOGY FELLOWSHIP PROGRAM.

Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7138) is amended by adding at the end the following:
``SEC. 1473G. [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

[[Page 1993]]
122 STAT. 1993

research scientists, faculty, and policymakers from
eligible countries;
``(B) collaborative research to improve agricultural
productivity;
``(C) the transfer of new science and agricultural
technologies to strengthen agricultural practice; and
``(D) the reduction of barriers to technology
adoption.

``(d) Fellowship Recipients.--
``(1) Eligible candidates.--The Secretary may provide
fellowships under this section to individuals from eligible
countries who specialize or have experience in agricultural
education, research, extension, or related fields, including--
``(A) individuals from the public and private
sectors; and
``(B) private agricultural producers.
``(2) Candidate identification.--The Secretary shall use the
expertise of United States land-grant colleges and universities
and similar universities, international organizations working in
agricultural research and outreach, and national agricultural
research organizations to help identify program candidates for
fellowships under this section from the public and private
sectors of eligible countries.

``(e) Use of Fellowships.--A fellowship provided under this section
shall be used--
``(1) to promote collaborative programs among agricultural
professionals of eligible countries, agricultural professionals
of the United States, the international agricultural research
system, and, as appropriate, United States entities conducting
research; and
``(2) to support fellowship recipients through programs
described in subsection (a)(2).

``(f) Program Implementation.--The Secretary shall provide for the
management, coordination, evaluation, and monitoring of the Borlaug
International Agricultural Science and Technology Fellowship Program and
for the individual programs described in subsection (a)(2), except that
the Secretary may contract out to 1 or more collaborating universities
the management of 1 or more of the fellowship programs.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section, to
remain available until expended.''.
SEC. 7140. AQUACULTURE ASSISTANCE PROGRAMS.

Section 1477 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7141. RANGELAND RESEARCH GRANTS.

Section 1483(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7142. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND
RESPONSE.

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

[[Page 1994]]
122 STAT. 1994

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

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

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

SEC. 7201. NATIONAL GENETICS RESOURCES PROGRAM.

Section 1635(b) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 7202. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

Section 1641(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1991 through
1997'' and inserting ``2008 through 2012''.
SEC. 7203. PARTNERSHIPS.

Section 1672(d) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5925(d)) is amended by striking ``may'' and
inserting ``shall''.
SEC. 7204. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.

(a) In General.--Section 1672 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended--
(1) in subsection (e)--
(A) in paragraph (3), by striking ``and controlling
aflatoxin in the food and feed chains.'' and inserting
``, improving, and eventually commercializing, alfatoxin
controls in corn and other affected agricultural
products and crops.'';
(B) by striking paragraphs (1), (4), (7), (8), (15),
(17), (21), (23), (26), (27), (32), (34), (41), (42),
(43), and (45);
(C) by redesignating paragraphs (2), (3), (5), (6),
(9) through (14), (16), (18) through (20), (22), (24),
(25), (28) through (31), (33), (35) through (40), and
(44) as paragraphs (1) through (29), respectively; and
(D) by adding at the end the following:
``(30) Air emissions from livestock operations.--Research
and extension grants may be made under this section for the
purpose of conducting field verification tests and developing
mitigation options for air emissions from animal feeding
operations.

[[Page 1995]]
122 STAT. 1995

``(31) Swine genome project.--Research grants may be made
under this section to conduct swine genome research, including
the mapping of the swine genome.
``(32) Cattle fever tick program.--Research and extension
grants may be made under this section to study cattle fever
ticks to facilitate understanding of the role of wildlife in the
persistence and spread of cattle fever ticks, to develop
advanced methods for eradication of cattle fever ticks, and to
improve management of diseases relating to cattle fever ticks
that are associated with wildlife, livestock, and human health.
``(33) Synthetic gypsum.--Research and extension grants may
be made under this section to study the uses of synthetic gypsum
from electric power plants to remediate soil and nutrient
losses.
``(34) Cranberry research program.--Research and extension
grants may be made under this section to study new technologies
to assist cranberry growers in complying with Federal and State
environmental regulations, increase production, develop new
growing techniques, establish more efficient growing
methodologies, and educate cranberry producers about sustainable
growth practices.
``(35) Sorghum research initiative.--Research and extension
grants may be made under this section to study the use of
sorghum as a bioenergy feedstock, promote diversification in,
and the environmental benefits of sorghum production, and
promote water conservation through the use of sorghum.
``(36) Marine shrimp farming program.--Research and
extension grants may be made under this section to establish a
research program to advance and maintain a domestic shrimp
farming industry in the United States.
``(37) Turfgrass research initiative.--Research and
extension grants may be made under this section to study the
production of turfgrass (including the use of water, fertilizer,
pesticides, fossil fuels, and machinery for turf establishment
and maintenance) and environmental protection and enhancement
relating to turfgrass production.
``(38) Agricultural worker safety research initiative.--
Research and extension grants may be made under this section--
``(A) to study and demonstrate methods to minimize
exposure of farm and ranch owners and operators,
pesticide handlers, and agricultural workers to
pesticides, including research addressing the unique
concerns of farm workers resulting from long-term
exposure to pesticides; and
``(B) to develop rapid tests for on-farm use to
better inform and educate farmers, ranchers, and farm
and ranch workers regarding safe field re-entry
intervals.
``(39) High plains aquifer region.--Research and extension
grants may be made under this section to carry out
interdisciplinary research relating to diminishing water levels
and increased demand for water in the High Plains aquifer
region.
``(40) Deer initiative.--Research and extension grants may
be made under this section to support collaborative research
focusing on the development of viable strategies for the
prevention, diagnosis, and treatment of infectious, parasitic,
and toxic diseases of farmed deer and the mapping of the deer
genome.

[[Page 1996]]
122 STAT. 1996

``(41) Pasture-based beef systems research initiative.--
Research and extension grants may be made under this section to
study the development of forage sequences and combinations for
cow-calf, heifer development, stocker, and finishing systems, to
deliver optimal nutritive value for efficient production of
cattle for pasture finishing, to optimize forage systems to
improve marketability of pasture-finished beef, and to assess
the effect of forage quality on reproductive fitness.
``(42) Agricultural practices relating to climate change.--
Research and extension grants may be made under this section for
field and laboratory studies that examine the ecosystem from
gross to minute scales and for projects that explore the
relationship of agricultural practices to climate change.
``(43) Brucellosis control and eradication.--Research and
extension grants may be made under this section to conduct
research relating to the development of vaccines and vaccine
delivery systems to effectively control and eliminate
brucellosis in wildlife, and to assist with the controlling of
the spread of brucellosis from wildlife to domestic animals.
``(44) Bighorn and domestic sheep disease mechanisms.--
Research and extension grants may be made under this section to
conduct research relating to the health status of (including the
presence of infectious diseases in) bighorn and domestic sheep
under range conditions.
``(45) Agricultural development in the american-pacific
region.--Research and extension grants may be made under this
section to support food and agricultural science at a consortium
of land-grant institutions in the American-Pacific region.
``(46) Tropical and subtropical agricultural research.--
Research grants may be made under this section, in equal dollar
amounts to the Caribbean and Pacific Basins, to support tropical
and subtropical agricultural research, including pest and
disease research, at the land-grant institutions in the
Caribbean and Pacific regions.
``(47) Viral hemorrhagic septicemia.--Research and extension
grants may be made under this section to study--
``(A) the effects of viral hemorrhagic septicemia
(referred to in this paragraph as `VHS') on freshwater
fish throughout the natural and expanding range of VHS;
and
``(B) methods for transmission and human-mediated
transport of VHS among waterbodies.
``(48) Farm and ranch safety.--Research and extension grants
may be made under this section to carry out projects to decrease
the incidence of injury and death on farms and ranches,
including--
``(A) on-site farm or ranch safety reviews;
``(B) outreach and dissemination of farm safety
research and interventions to agricultural employers,
employees, youth, farm and ranch families, seasonal
workers, or other individuals; and
``(C) agricultural safety education and training.
``(49) Women and minorities in stem fields.--Research and
extension grants may be made under this section to

[[Page 1997]]
122 STAT. 1997

increase participation by women and underrepresented minorities
from rural areas in the fields of science, technology,
engineering, and mathematics, with priority given to eligible
institutions that carry out continuing programs funded by the
Secretary.
``(50) Alfalfa and forage research program.--Research and
extension grants may be made under this section for the purpose
of studying improvements in alfalfa and forage yields, biomass
and persistence, pest pressures, the bioenergy potential of
alfalfa and other forages, and systems to reduce losses during
harvest and storage.
``(51) Food systems veterinary medicine.--Research grants
may be made under this section to address health issues that
affect food-producing animals, food safety, and the environment,
and to improve information resources, curriculum, and clinical
education of students with respect to food animal veterinary
medicine and food safety.
``(52) Biochar research.--Grants may be made under this
section for research, extension, and integrated activities
relating to the study of biochar production and use, including
considerations of agronomic and economic impacts, synergies of
coproduction with bioenergy, and the value of soil enhancements
and soil carbon sequestration.'';
(2) by redesignating subsection (h) as subsection (j);
(3) by inserting after subsection (g) the following:

``(h) Pollinator Protection.--
``(1) Research and extension.--
``(A) Grants.--Research and extension grants may be
made under this section--
``(i) to survey and collect data on bee colony
production and health;
``(ii) to investigate pollinator biology,
immunology, ecology, genomics, and bioinformatics;
``(iii) to conduct research on various factors
that may be contributing to or associated with
colony collapse disorder, and other serious
threats to the health of honey bees and other
pollinators, including--
``(I) parasites and pathogens of
pollinators; and
``(II) the sublethal effects of
insecticides, herbicides, and fungicides
on honey bees and native and managed
pollinators;
``(iv) to develop mitigative and preventative
measures to improve native and managed pollinator
health; and
``(v) to promote the health of honey bees and
native pollinators through habitat conservation
and best management practices.
``(B) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $10,000,000 for each of fiscal years 2008
through 2012.
``(2) Department of agriculture capacity and
infrastructure.--
``(A) In general.--The Secretary shall, to the
maximum extent practicable, increase the capacity and
infrastructure of the Department--

[[Page 1998]]
122 STAT. 1998

``(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 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''.

[[Page 1999]]
122 STAT. 1999

(b) Conforming Amendments.--Section 1672 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended--
(1) in the first sentence of subsection (a), by striking
``(e), (f), and (g)'' and inserting ``(e) through (i)''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``paragraphs (1),
(6), (7), and (11)'' and inserting ``paragraphs (4),
(7), (8), and (11)(B)''; and
(B) in paragraph (2), by striking ``subsection (e)''
and inserting ``subsections (e) through (i)''.
SEC. 7205. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

Section 1672A of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925a) is amended--
(1) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) [NOTE: Applicability.]  In general.--Paragraphs (4),
(7), (8), and (11)(B) of subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C. 450i) shall
apply with respect to the making of grants under this
section.'';
(2) by striking subsection (d) and inserting the following:

``(d) Priority.--Following the completion of a peer review process
for grant proposals received under this section, the Secretary shall
give priority to those grant proposals that involve--
``(1) the cooperation of multiple entities; and
``(2) States or regions with a high concentration of
livestock, dairy, or poultry operations.'';
(3) in subsection (e)--
(A) in paragraph (1)(B), by inserting ``and dairy
and beef cattle waste'' after ``swine waste''; and
(B) by striking paragraph (5) and inserting the
following:
``(5) Alternative uses and renewable energy.--Research and
extension grants may be made under this section for the purpose
of finding innovative methods and technologies to allow
agricultural operators to make use of animal waste, such as use
as fertilizer, methane digestion, composting, and other useful
byproducts.'';
(4) by redesignating subsection (g) as subsection (f); and
(5) in subsection (f) (as so redesignated), by striking
``2007'' and inserting ``2012''.
SEC. 7206. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

(a) In General.--Section 1672B of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) (commonly known as
the ``Organic Agriculture Research and Extension Initiative'') is
amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) in paragraph (6), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:

[[Page 2000]]
122 STAT. 2000

``(7) examining optimal conservation and environmental
outcomes relating to organically produced agricultural products;
and
``(8) developing new and improved seed varieties that are
particularly suited for organic agriculture.''; and
(2) by adding at the end the following:

``(f) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section--
``(A) $18,000,000 for fiscal year 2009; and
``(B) $20,000,000 for each of fiscal years 2010
through 2012.
``(2) Additional funding.--In addition to amounts made
available under paragraph (1), there is authorized to be
appropriated to carry out this section $25,000,000 for each of
fiscal years 2009 through 2012.''.

(b) [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;

[[Page 2001]]
122 STAT. 2001

``(ii) crop production;
``(iii) soil and water science;
``(iv) use of agricultural waste; and
``(v) carbohydrate, lipid, protein, and lignin
chemistry, enzyme development, and biochemistry;
and
``(D) supporting the dissemination of any of the
research conducted under this subsection that will
assist in achieving the goals of this section.
``(2) Selection criteria.--In selecting grant recipients for
projects under paragraph (1), the Secretary shall consider--
``(A) the capabilities and experiences of the
applicant, including--
``(i) research in actual field conditions; and
``(ii) engineering and research knowledge
relating to biofuels or the production of inputs
for biofuel production;
``(B) the range of species types and cropping
practices proposed for study (including species types
and practices studied using side-by-side comparisons of
those types and practices);
``(C) the need for regional diversity among
feedstocks;
``(D) the importance of developing multiyear data
relevant to the production of biomass feedstock crops;
``(E) the extent to which the project involves
direct participation of agricultural producers;
``(F) the extent to which the project proposal
includes a plan or commitment to use the biomass
produced as part of the project in commercial channels;
and
``(G) such other factors as the Secretary may
determine.

``(d) Energy-Efficiency Research and Extension Areas.--On-farm
energy-efficiency research and extension activities funded under the
Initiative shall focus on developing and demonstrating technologies and
production practices relating to--
``(1) improving on-farm renewable energy production;
``(2) encouraging efficient on-farm energy use;
``(3) promoting on-farm energy conservation;
``(4) making a farm or ranch energy-neutral; and
``(5) enhancing on-farm usage of advanced technologies to
promote energy efficiency.

``(e) [NOTE: Public information.]  Best Practices Database.--The
Secretary shall develop a best-practices database that includes
information, to be available to the public, on--
``(1) the production potential of a variety of biomass
crops; and
``(2) best practices for production, collection, harvesting,
storage, and transportation of biomass crops to be used as a
source of bioenergy.

``(f) Administration.--
``(1) [NOTE: Applicability.]  In general.--Paragraphs (4),
(7), (8), and (11)(B) of subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b))
shall apply with respect to making grants under this section.
``(2) Consultation and coordination.--The Secretary shall--
``(A) [NOTE: Grants.]  make the grants in
consultation with the National Agricultural Research,
Extension, Education, and Economics Advisory Board; and

[[Page 2002]]
122 STAT. 2002

``(B) coordinate projects and activities carried out
under the Initiative with projects and activities under
section 9008 of the Farm Security and Rural Investment
Act of 2002 to ensure, to the maximum extent
practicable, that--
``(i) unnecessary duplication of effort is
eliminated or minimized; and
``(ii) the respective strengths of the
Department of Agriculture and the Department of
Energy are appropriately used.
``(3) Grant priority.--The Secretary shall give priority to
grant applications that integrate research and extension
activities established under subsections (c) and (d),
respectively.
``(4) Matching funds required.--As a condition of receiving
a grant under this section, the Secretary shall require the
recipient of the grant to provide funds or in-kind support from
non-Federal sources in an amount that is at least equal to the
amount provided by the Federal Government.
``(5) Partnerships encouraged.--Following the completion of
a peer review process for grant proposals received under this
section, the Secretary may provide a priority to those grant
proposals found as a result of the peer review process--
``(A) to be scientifically meritorious; and
``(B) that involve cooperation--
``(i) among multiple entities; and
``(ii) with agricultural producers.

``(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2008 through 2012.''.
SEC. 7208. FARM BUSINESS MANAGEMENT AND BENCHMARKING.

The Food, Agriculture, Conservation and Trade Act of 1990 is amended
by inserting after section 1672C (as added by section 7207) the
following:
``SEC. 1672D. [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) [NOTE: Applicability.]  Administration.--Paragraphs (4),
(7), (8), and (11)(B) of subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b)) shall apply with
respect to the making of grants under this section.

[[Page 2003]]
122 STAT. 2003

``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
SEC. 7209. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

Section 1673 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5926) is repealed.
SEC. 7210. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH
DISABILITIES.

Section 1680(c)(1) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 7211. RESEARCH ON HONEY BEE DISEASES.

Section 1681 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5934) is repealed.
SEC. 7212. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

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

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

SEC. 7301. PEER AND MERIT REVIEW.

Section 103(a) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended by adding at
the end the following:
``(3) Consideration.--Peer and merit review procedures
established under paragraphs (1) and (2) shall not take the
offer or availability of matching funds into consideration.''.
SEC. 7302. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT
QUALITY RESEARCH.

Section 402 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7622) is repealed.
SEC. 7303. PRECISION AGRICULTURE.

Section 403 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7623) is repealed.
SEC. 7304. BIOBASED PRODUCTS.

(a) Pilot Project.--Section 404(e)(2) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is
amended by striking ``2007'' and inserting ``2012''.
(b) Authorization of Appropriations.--Section 404(h) of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7624(h)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7305. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

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

[[Page 2004]]
122 STAT. 2004

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

Section 406(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7307. FUSARIUM GRAMINEARUM GRANTS.

Section 408 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7628) is amended--
(1) in subsection (a), in the subsection heading, by
striking ``Grant'' and inserting ``Grants''; and
(2) in subsection (e), by striking ``2007'' and inserting
``2012''.
SEC. 7308. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

Section 409(b) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7309. GRANTS FOR YOUTH ORGANIZATIONS.

Section 410 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7630) is amended by striking subsections
(b) and (c) and inserting the following:
``(b) Flexibility.--The Secretary shall provide maximum flexibility
in content delivery to each organization receiving funds under this
section so as to ensure that the unique goals of each organization, as
well as the local community needs, are fully met.
``(c) Redistribution of Funding Within Organizations Authorized.--
Recipients of funds under this section may redistribute all or part of
the funds received to individual councils or local chapters within the
councils without further need of approval from the Secretary.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2008 through 2012.''.
SEC. 7310. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR
DEVELOPING COUNTRIES.

Section 411(c) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7311. SPECIALTY CROP RESEARCH INITIATIVE.

(a) In General.--Title IV of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is amended by
adding at the end the following:
``SEC. 412. [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

[[Page 2005]]
122 STAT. 2005

the critical needs of the specialty crop industry by developing and
disseminating science-based tools to address needs of specific crops and
their regions, including--
``(1) research in plant breeding, genetics, and genomics to
improve crop characteristics, such as--
``(A) product, taste, quality, and appearance;
``(B) environmental responses and tolerances;
``(C) nutrient management, including plant nutrient
uptake efficiency;
``(D) pest and disease management, including
resistance to pests and diseases resulting in reduced
application management strategies; and
``(E) enhanced phytonutrient content;
``(2) efforts to identify and address threats from pests and
diseases, including threats to specialty crop pollinators;
``(3) efforts to improve production efficiency,
productivity, and profitability over the long term (including
specialty crop policy and marketing);
``(4) new innovations and technology, including improved
mechanization and technologies that delay or inhibit ripening;
and
``(5) methods to prevent, detect, monitor, control, and
respond to potential food safety hazards in the production and
processing of specialty crops, including fresh produce.

``(c) Eligible Entities.--The Secretary may carry out the Initiative
through--
``(1) Federal agencies;
``(2) national laboratories;
``(3) colleges and universities;
``(4) research institutions and organizations;
``(5) private organizations or corporations;
``(6) State agricultural experiment stations;
``(7) individuals; or
``(8) groups consisting of 2 or more entities described in
paragraphs (1) through (7).

``(d) [NOTE: Grants.]  Research Projects.--In carrying out this
section, the Secretary shall award grants on a competitive basis.

``(e) Administration.--
``(1) In general.--With respect to grants awarded under
subsection (d), the Secretary shall--
``(A) seek and accept proposals for grants;
``(B) determine the relevance and merit of proposals
through a system of peer and merit review in accordance
with section 103; and
``(C) [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.

[[Page 2006]]
122 STAT. 2006

``(f) Priorities.--In making grants under this section, the
Secretary shall provide a higher priority to projects that--
``(1) are multistate, multi-institutional, or
multidisciplinary; and
``(2) include explicit mechanisms to communicate results to
producers and the public.

``(g) Buildings and Facilities.--Funds made available under this
section shall not be used for the construction of a new building or
facility or the acquisition, expansion, remodeling, or alteration of an
existing building or facility (including site grading and improvement,
and architect fees).
``(h) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section $30,000,000 for fiscal year 2008 and $50,000,000
for each of fiscal years 2009 through 2012, from which
activities under each of paragraphs (1) through (5) of
subsection (b) shall be allocated not less than 10 percent.
``(2) Authorization of appropriations.--In addition to funds
made available under paragraph (1), there is authorized to be
appropriated to carry out this section $100,000,000 for each of
fiscal years 2008 through 2012.
``(3) Transfer.--Of the funds made available to the
Secretary under paragraph (1) for fiscal year 2008 and
authorized for use for payment of administrative expenses under
section 1469(a)(3) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3315(a)(3)), the Secretary shall transfer, upon the date of
enactment of this section, $200,000 to the Office of Prevention,
Pesticides, and Toxic Substances of the Environmental Protection
Agency for use in conducting a meta-analysis relating to methyl
bromide.
``(4) Availability.--Funds made available pursuant to this
subsection for a fiscal year shall remain available until
expended to pay for obligations incurred in that fiscal year.''.

(b) [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''.

[[Page 2007]]
122 STAT. 2007

Subtitle D--Other Laws

SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.

Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
178n(a)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

(a) Definition of 1994 Institutions.--Section 532 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103-382) is amended by adding at the end the following:
``(34) Ilisagvik College.''.

(b) Endowment for 1994 Institutions.--Section 533 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103-382) is amended--
(1) in subsection (a)(3), in the matter preceding
subparagraph (A), by inserting ``this section and'' before
``sections 534,''; and
(2) in the first sentence of subsection (b), by striking
``2007'' and inserting ``2012''.

(c) Redistribution.--Section 534(a)(3) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is
amended--
(1) by striking ``The amounts'' and inserting the following:
``(A) In general.--Except as provided in
subparagraph (B), the amounts''; and
(2) by adding at the end the following:
``(B) Redistribution.--Funds that would be paid to a
1994 Institution under paragraph (2) shall be withheld
from that 1994 Institution and redistributed among the
other 1994 Institutions if that 1994 Institution--
``(i) declines to accept funds under paragraph
(2); or
``(ii) fails to meet the accreditation
requirements under section 533(a)(3).''.

(d) Institutional Capacity Building Grants.--Section 535 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382) is amended by striking ``2007'' each place it
appears and inserting ``2012''.
(e) Research Grants.--Section 536(c) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is
amended in the first sentence by striking ``2007'' and inserting
``2012''.
(f) [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.

[[Page 2008]]
122 STAT. 2008

(c) Conforming Amendment.--Section 1444(a)(2) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3221(a)(2)) is amended by striking ``after September 30, 1995,
under section 3(d) of that Act (7 U.S.C. 343(d))'' and all that follows
through the end of the sentence and inserting ``under section 3(d) of
that Act (7 U.S.C. 343(d)).''.
SEC. 7404. HATCH ACT OF 1887.

(a) District of Columbia.--Section 3(d)(4) of the Hatch Act of 1887
(7 U.S.C. 361c(d)(4)) is amended--
(1) in the paragraph heading, by inserting ``and the
district of columbia'' after ``areas'';
(2) in subparagraph (A)--
(A) by inserting ``and the District of Columbia''
after ``United States''; and
(B) by inserting ``and the District of Columbia''
after ``respectively,''; and
(3) in subparagraph (B), by inserting ``or the District of
Columbia'' after ``area''.

(b) Elimination of Penalty Mail Authorities.--
(1) In general.--Section 6 of the Hatch Act of 1887 (7
U.S.C. 361f) is amended in the first sentence by striking
``under penalty indicia:'' and all that follows through the end
of the sentence and inserting a period.
(2) Conforming amendments in other laws.--
(A) National agricultural research, extension, and
teaching policy act of 1977.--
(i) Section 1444(f) of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3221(f)) is amended
by striking ``under penalty indicia:'' and all
that follows through the end of the sentence and
inserting a period.
(ii) Section 1445(e) of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3222(e)) is amended
by striking ``under penalty indicia:'' and all
that follows through the end of the sentence and
inserting a period.
(B) Other provisions.--Section 3202(a) of title 39,
United States Code, is amended--
(i) in paragraph (1)--
(I) in subparagraph (D), by adding
``and'' at the end;
(II) in subparagraph (E), by
striking ``sections; and'' and inserting
``sections.''; and
(III) by striking subparagraph (F);
(ii) in paragraph (2), by adding ``and'' at
the end;
(iii) in paragraph (3) by striking ``thereof;
and'' and inserting ``thereof.''; and
(iv) by striking paragraph (4).
SEC. 7405. AGRICULTURAL EXPERIMENT STATION RESEARCH FACILITIES
ACT.

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

[[Page 2009]]
122 STAT. 2009

SEC. 7406. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

(a) In General.--Subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended to read as
follows:
``(b) Agriculture and Food Research Initiative.--
``(1) Establishment.--There is established in the Department
of Agriculture an Agriculture and Food Research Initiative under
which the Secretary of Agriculture (referred to in this
subsection as `the Secretary') may make competitive grants for
fundamental and applied research, extension, and education to
address food and agricultural sciences (as defined under section
1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)).
``(2) Priority areas.--The competitive grants program
established under this subsection shall address the following
areas:
``(A) Plant health and production and plant
products.--Plant systems, including--
``(i) plant genome structure and function;
``(ii) molecular and cellular genetics and
plant biotechnology;
``(iii) conventional breeding, including
cultivar and breed development, selection theory,
applied quantitative genetics, breeding for
improved food quality, breeding for improved local
adaptation to biotic stress and abiotic stress,
and participatory breeding;
``(iv) plant-pest interactions and biocontrol
systems;
``(v) crop plant response to environmental
stresses;
``(vi) unproved nutrient qualities of plant
products; and
``(vii) new food and industrial uses of plant
products.
``(B) Animal health and production and animal
products.--Animal systems, including--
``(i) aquaculture;
``(ii) cellular and molecular basis of animal
reproduction, growth, disease, and health;
``(iii) animal biotechnology;
``(iv) conventional breeding, including breed
development, selection theory, applied
quantitative genetics, breeding for improved food
quality, breeding for improved local adaptation to
biotic stress and abiotic stress, and
participatory breeding;
``(v) identification of genes responsible for
improved production traits and resistance to
disease;
``(vi) improved nutritional performance of
animals;
``(vii) improved nutrient qualities of animal
products and uses; and
``(viii) the development of new and improved
animal husbandry and production systems that take
into account production efficiency, animal well-
being, and animal systems applicable to
aquaculture.
``(C) Food safety, nutrition, and health.--
Nutrition, food safety and quality, and health,
including--
``(i) microbial contaminants and pesticides
residue relating to human health;

[[Page 2010]]
122 STAT. 2010

``(ii) links between diet and health;
``(iii) bioavailability of nutrients;
``(iv) postharvest physiology and practices;
and
``(v) improved processing technologies.
``(D) Renewable energy, natural resources, and
environment.--Natural resources and the environment,
including--
``(i) fundamental structures and functions of
ecosystems;
``(ii) biological and physical bases of
sustainable production systems;
``(iii) minimizing soil and water losses and
sustaining surface water and ground water quality;
``(iv) global climate effects on agriculture;
``(v) forestry; and
``(vi) biological diversity.
``(E) Agriculture systems and technology.--
Engineering, products, and processes, including--
``(i) new uses and new products from
traditional and nontraditional crops, animals,
byproducts, and natural resources;
``(ii) robotics, energy efficiency, computing,
and expert systems;
``(iii) new hazard and risk assessment and
mitigation measures; and
``(iv) water quality and management.
``(F) Agriculture economics and rural communities.--
Markets, trade, and policy, including--
``(i) strategies for entering into and being
competitive in domestic and overseas markets;
``(ii) farm efficiency and profitability,
including the viability and competitiveness of
small and medium-sized dairy, livestock, crop and
other commodity operations;
``(iii) new decision tools for farm and market
systems;
``(iv) choices and applications of technology;
``(v) technology assessment; and
``(vi) new approaches to rural development,
including rural entrepreneurship.
``(3) Term.--The term of a competitive grant made under this
subsection may not exceed 10 years.
``(4) [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

[[Page 2011]]
122 STAT. 2011

``(E) in seeking proposals for grants under this
subsection and in performing peer review evaluations of
such proposals, seek the widest participation of
qualified individuals in the Federal Government,
colleges and universities, State agricultural experiment
stations, and the private sector.
``(5) Allocation of funds.--In making grants under this
subsection, the Secretary shall allocate funds to the
Agriculture and Food Research Initiative to ensure that, of
funds allocated for research activities--
``(A) not less than 60 percent is made available to
make grants for fundamental research (as defined in
subsection (f)(1) of section 251 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971)),
of which--
``(i) not less than 30 percent is made
available to make grants for research to be
conducted by multidisciplinary teams; and
``(ii) not more than 2 percent is used for
equipment grants under paragraph (6)(A); and
``(B) not less than 40 percent is made available to
make grants for applied research (as defined in
subsection (f)(1) of section 251 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971)).
``(6) Special considerations.--In making grants under this
subsection, the Secretary may assist in the development of
capabilities in the agricultural, food, and environmental
sciences by providing grants--
``(A) to an institution to allow for the improvement
of the research, development, technology transfer, and
education capacity of the institution through the
acquisition of special research equipment and the
improvement of agricultural education and teaching,
except that the Secretary shall use not less than 25
percent of the funds made available for grants under
this subparagraph to provide fellowships to outstanding
pre- and post-doctoral students for research in the
agricultural sciences;
``(B) to a single investigator or coinvestigators
who are beginning research careers and do not have an
extensive research publication record, except that, to
be eligible for a grant under this subparagraph, an
individual shall be within 5 years of the beginning of
the initial career track position of the individual;
``(C) to ensure that the faculty of small, mid-
sized, and minority-serving institutions who have not
previously been successful in obtaining competitive
grants under this subsection receive a portion of the
grants; and
``(D) to improve research, extension, and education
capabilities in States (as defined in section 1404 of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)) in which
institutions have been less successful in receiving
funding under this subsection, based on a 3-year rolling
average of funding levels.
``(7) Eligible entities.--The Secretary may make grants to
carry out research, extension, and education under this
subsection to--
``(A) State agricultural experiment stations;

[[Page 2012]]
122 STAT. 2012

``(B) colleges and universities;
``(C) university research foundations;
``(D) other research institutions and organizations;
``(E) Federal agencies;
``(F) national laboratories;
``(G) private organizations or corporations;
``(H) individuals; or
``(I) any group consisting of 2 or more of the
entities described in subparagraphs (A) through (H).
``(8) Construction prohibited.--Funds made available for
grants under this subsection shall not be used for the
construction of a new building or facility or the acquisition,
expansion, remodeling, or alteration of an existing building or
facility (including site grading and improvement, and architect
fees).
``(9) Matching funds.--
``(A) Equipment grants.--
``(i) In general.--Except as provided in
clause (ii), in the case of a grant made under
paragraph (6)(A), the amount provided under this
subsection may not exceed 50 percent of the cost
of the special research equipment or other
equipment acquired using funds from the grant.
``(ii) Waiver.--The Secretary may waive all or
part of the matching requirement under clause (i)
in the case of a college, university, or research
foundation maintained by a college or university
that ranks in the lowest \1/3\ of such colleges,
universities, and research foundations on the
basis of Federal research funds received, if the
equipment to be acquired using funds from the
grant costs not more than $25,000 and has multiple
uses within a single research project or is usable
in more than 1 research project.
``(B) Applied research.--As a condition of making a
grant under paragraph (5)(B), the Secretary shall
require the funding of the grant to be matched with
equal matching funds from a non-Federal source if the
grant is for applied research that is--
``(i) commodity-specific; and
``(ii) not of national scope.
``(10) Program administration.--To the maximum extent
practicable, the Director of the National Institute of Food and
Agriculture, in coordination with the Under Secretary for
Research, Education, and Economics, shall allocate grants under
this subsection to high-priority research, taking into
consideration, when available, the determinations made by the
National Agricultural Research, Extension, Education, and
Economics Advisory Board (as established under section 1408 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3123)).
``(11) Authorization of appropriations.--
``(A) In general.--There is authorized to be
appropriated to carry out this subsection $700,000,000
for each of fiscal years 2008 through 2012, of which--
``(i) not less than 30 percent shall be made
available for integrated research pursuant to
section 406 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7
U.S.C. 7626); and

[[Page 2013]]
122 STAT. 2013

``(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.

(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

[[Page 2014]]
122 STAT. 2014

property for the purpose of carrying out the research functions of the
Department, may exchange, sell, or otherwise dispose of any qualified
item of personal property, including by way of public auction, and may
retain and apply the sale or other proceeds, without further
appropriation and without fiscal year limitation, in whole or in partial
payment--
``(1) to acquire any qualified item of personal property; or
``(2) to offset costs related to the maintenance, care, or
feeding of any qualified item of personal property.

``(c) Exception.--Subsection (b) does not apply to the free
dissemination of new varieties of seeds and germplasm in accordance with
section 520 of the Revised Statutes (commonly known as the `Department
of Agriculture Organic Act') (7 U.S.C. 2201).''.
SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

Title III of the Department of Agriculture Reorganization Act of
1994 (Public Law 103-354; 108 Stat. 3238) (as amended by section 7408)
is amended by adding at the end the following:
``SEC. 308. [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.

[[Page 2015]]
122 STAT. 2015

``(B) Use of funds.--
``(i) In general.--Consideration provided for
a lease under this section shall be--
``(I) deposited in a capital asset
account to be established by the
Secretary; and
``(II) available until expended,
without further appropriation, for
maintenance, capital revitalization, and
improvements of the Department
properties and facilities at the
Beltsville Agricultural Research Center
and National Agricultural Library.
``(ii) Budgetary treatment.--For purposes of
the budget, the amounts described in clause (i)
shall not be treated as a receipt of any
Department agency or any other agency leasing
property under this section.
``(4) Costs.--The lessee shall cover all costs associated
with a lease under this section, including the cost of--
``(A) the project to be carried out on property or
at a facility covered by the lease;
``(B) provision and administration of the lease;
``(C) construction of any needed facilities;
``(D) provision of applicable utilities; and
``(E) any other facility cost normally associated
with the operation of a leased facility.
``(5) Prohibition of use of appropriations.--The Secretary
shall not use any funds made available to the Secretary in an
appropriations Act for the construction or operating costs of
any space covered by a lease under this section.
``(6) Termination of authority.--This section and the
authority provided by this section terminate--
``(A) on the date that is 5 years after the date of
enactment of this section; or
``(B) with respect to any particular leased
property, on the date of termination of the lease.

``(c) Effect of Other Laws.--
``(1) Utilization.--Property that is leased pursuant to this
section shall not be considered to be unutilized or
underutilized for purposes of section 501 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11411).
``(2) [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) [NOTE: Deadline. Reports.]  Administration.--
``(1) In general.--Not later than 90 days after the date of
enactment of this section, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
a report that describes detailed management objectives and
performance measurements by which the Secretary intends to
evaluate the success of the program under this section.
``(2) Reports.--Not later than 1, 3, and 5 years after the
date of enactment of this section, the Secretary shall submit

[[Page 2016]]
122 STAT. 2016

to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report describing the implementation of the program
under this section, including--
``(A) a copy of each lease entered into pursuant to
this section; and
``(B) an assessment by the Secretary of the success
of the program using the management objectives and
performance measurements developed by the Secretary.''.
SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

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

(b) Funding.--Section 7405 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 3319f) is amended by striking subsection (h) and
inserting the following:
``(h) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section--
``(A) $18,000,000 for fiscal year 2009; and

[[Page 2017]]
122 STAT. 2017

``(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.
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''.

[[Page 2018]]
122 STAT. 2018

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:
(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).

[[Page 2019]]
122 STAT. 2019

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

[[Page 2020]]
122 STAT. 2020

(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).

(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.

[[Page 2021]]
122 STAT. 2021

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
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.

[[Page 2022]]
122 STAT. 2022

``(2) Division designations.--The Divisions within the
Research, Education, and Extension Office shall be as follows:
``(A) Renewable energy, natural resources, and
environment.
``(B) Food safety, nutrition, and health.
``(C) Plant health and production and plant
products.
``(D) Animal health and production and animal
products.
``(E) Agricultural systems and technology.
``(F) Agricultural economics and rural communities.
``(3) Division chiefs.--
``(A) Selection.--The Under Secretary shall select a
Division Chief for each Division using available
personnel authority under title 5, United States Code,
including--
``(i) by term, temporary, or other
appointment, without regard to--
``(I) the provisions of title 5,
United States Code, governing
appointments in the competitive service;
``(II) the provisions of subchapter
I of chapter 35 of title 5, United
States Code, relating to retention
preference; and
``(III) the provisions of chapter 51
and subchapter III of chapter 53 of
title 5, United States Code, relating to
classification and General Schedule pay
rates;
``(ii) by detail, notwithstanding any Act
making appropriations for the Department of
Agriculture, whether enacted before, on, or after
the date of enactment of this paragraph, requiring
reimbursement for those details unless the
appropriation Act specifically refers to this
subsection and specifically includes these
details;
``(iii) by reassignment or transfer from any
other civil service position; and
``(iv) by an assignment under subchapter VI of
chapter 33 of title 5, United States Code.
``(B) Selection guidelines.--To the maximum extent
practicable, the Under Secretary shall select Division
Chiefs under subparagraph (A) in a manner that--
``(i) promotes leadership and professional
development;
``(ii) enables personnel to interact with
other agencies of the Department; and
``(iii) maximizes the ability of the Under
Secretary to allow for rotations of Department
personnel into the position of Division Chief.
``(C) Term of service.--Notwithstanding title 5,
United States Code, the maximum length of service for an
individual selected as a Division Chief under
subparagraph (A) shall not exceed 4 years.
``(D) Qualifications.--To be eligible for selection
as a Division Chief, an individual shall have--
``(i) conducted exemplary research, education,
or extension in the field of agriculture or
forestry; and

[[Page 2023]]
122 STAT. 2023

``(ii) earned an advanced degree at an
institution of higher education (as defined in
section 101 of the Higher Education Act of 1965
(20 U.S.C. 1001)).
``(E) Duties of division chiefs.--Except as
otherwise provided in this Act, each Division Chief
shall--
``(i) assist the Under Secretary in
identifying and addressing emerging agricultural
research, education, and extension needs;
``(ii) assist the Under Secretary in
identifying and prioritizing Department-wide
agricultural research, education, and extension
needs, including funding;
``(iii) assess the strategic workforce needs
of the research, education, and extension
functions of the Department, and develop strategic
workforce plans to ensure that existing and future
workforce needs are met;
``(iv) communicate with research, education,
and extension beneficiaries, including the public,
and representatives of the research, education,
and extension system, including the National
Agricultural Research, Extension, Education, and
Economics Advisory Board, to promote the benefits
of agricultural research, education, and
extension;
``(v) assist the Under Secretary in preparing
and implementing the roadmap for agricultural
research, education, and extension, as described
in section 7504 of the Food, Conservation, and
Energy Act of 2008; and
``(vi) perform such other duties as the Under
Secretary may determine.
``(4) General administration.--
``(A) Funding.--Notwithstanding any Act making
appropriations for the Department of Agriculture,
whether enacted before, on, or after the date of
enactment of this paragraph unless the appropriation Act
specifically refers to this subsection and specifically
includes the administration of funds under this section,
the Secretary may transfer funds made available to an
agency in the research, education, and economics mission
area to fund the costs of Division personnel.
``(B) Limitation.--To the maximum extent
practicable--
``(i) the Under Secretary shall minimize the
number of full-time equivalent positions in the
Divisions; and
``(ii) at no time shall the aggregate number
of staff for all Divisions exceed 30 full-time
equivalent positions.
``(C) Rotation of personnel.--To the maximum extent
practicable, and using the authority described in
paragraph (3)(A), the Under Secretary shall rotate
personnel among the Divisions, and between the Divisions
and agencies of the Department, in a manner that--
``(i) promotes leadership and professional
development; and
``(ii) enables personnel to interact with
other agencies of the Department.

[[Page 2024]]
122 STAT. 2024

``(5) Organization.--The Under Secretary shall integrate
leadership functions of the national program staff of the
research agencies into the Research, Education and Extension
Office in such form as is required to ensure that administrative
duplication does not occur.

``(f) National Institute of Food and Agriculture.--
``(1) Definitions.--In this subsection:
``(A) Advisory board.--The term `Advisory Board'
means the National Agricultural Research, Extension,
Education, and Economics Advisory Board established
under section 1408 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3123).
``(B) Applied research.--The term `applied research'
means research that includes expansion of the findings
of fundamental research to uncover practical ways in
which new knowledge can be advanced to benefit
individuals and society.
``(C) Capacity and infrastructure program.--The term
`capacity and infrastructure program' means each of the
following agricultural research, extension, education,
and related programs for which the Secretary has
administrative or other authority as of the day before
the date of enactment of the Food, Conservation, and
Energy Act of 2008:
``(i) Each program providing funding to any of
the 1994 Institutions under sections 533, 534(a),
and 535 of the Equity in Educational Land-Grant
Status Act of 1994 (7 U.S.C. 301 note; Public Law
103-382).
``(ii) The program established under section
536 of the Equity in Educational Land-Grant Status
Act of 1994 (7 U.S.C. 301 note; Public Law 103-
382) providing research grants for 1994
Institutions.
``(iii) Each program established under
subsections (b) and (c) of section 3 of the Smith-
Lever Act (7 U.S.C. 343).
``(iv) Each program established under the
Hatch Act of 1887 (7 U.S.C. 361a et seq.).
``(v) Each program established under section
1417(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3152(b)).
``(vi) The animal health and disease research
program established under subtitle E of the
National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3191 et
seq.).
``(vii) Each extension program available to
1890 Institutions established under section 1444
of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3221).
``(viii) The program established under section
1445 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3222).
``(ix) The program providing grants to upgrade
agricultural and food sciences facilities at 1890
Institutions established under section 1447 of the
National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222b).

[[Page 2025]]
122 STAT. 2025

``(x) The program providing distance education
grants for insular areas established under section
1490 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3362).
``(xi) The program providing resident
instruction grants for insular areas established
under section 1491 of the National Agricultural
Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3363).
``(xii) Each research and development and
related program established under Public Law 87-
788 (commonly known as the `McIntire-Stennis
Cooperative Forestry Act') (16 U.S.C. 582a et
seq.).
``(xiii) Each program established under the
Renewable Resources Extension Act of 1978 (16
U.S.C. 1671 et seq.).
``(xiv) Each program providing funding to
Hispanic-serving agricultural colleges and
universities under section 1456 of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977.
``(xv) The program providing capacity grants
to NLGCA Institutions under section 1473F of the
National Agricultural Research, Extension, and
Teaching Policy Act of 1977.
``(xvi) Other programs that are capacity and
infrastructure programs, as determined by the
Secretary.
``(D) Competitive program.--The term `competitive
program' means each of the following agricultural
research, extension, education, and related programs for
which the Secretary has administrative or other
authority as of the day before the date of enactment of
the Food, Conservation, and Energy Act of 2008:
``(i) The Agriculture and Food Research
Initiative established under section 2(b) of the
Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i(b)).
``(ii) The program providing competitive
grants for risk management education established
under section 524(a)(3) of the Federal Crop
Insurance Act (7 U.S.C. 1524(a)(3)).
``(iii) The program providing community food
project competitive grants established under
section 25 of the Food and Nutrition Act of 2008
(7 U.S.C. 2034).
``(iv) The program providing grants for
beginning farmer and rancher development
established under section 7405 of the Farm
Security and Rural Investment Act of 2002 (7
U.S.C. 3319f).
``(v) The program providing grants under
section 1417(j) of the National Agricultural
Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3152(j)).
``(vi) The program providing grants for
Hispanic-serving institutions established under
section 1455 of the National Agricultural
Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3241).
``(vii) The program providing competitive
grants for international agricultural science and
education

[[Page 2026]]
122 STAT. 2026

programs under section 1459A of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3292b).
``(viii) The research and extension projects
carried out under section 1621 of the Food,
Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 5811).
``(ix) The organic agriculture research and
extension initiative established under section
1672B of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925b).
``(x) The specialty crop research initiative
under section 412 of the Agricultural Research,
Extension, and Education Reform Act of 1998.
``(xi) The administration and management of
the Agricultural Bioenergy Feedstock and Energy
Efficiency Research and Extension Initiative
carried out under section 1672C of the Food,
Agriculture, Conservation, and Trade Act of 1990.
``(xii) The research, extension, and education
programs authorized by section 407 of the
Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7627) relating to the
competitiveness, viability and sustainability of
small- and medium-sized dairy, livestock, and
poultry operations.
``(xiii) Other programs that are competitive
programs, as determined by the Secretary.
``(E) Director.--The term `Director' means the
Director of the Institute.
``(F) Fundamental research.--The term `fundamental
research' means research that--
``(i) increases knowledge or understanding of
the fundamental aspects of phenomena and has the
potential for broad application; and
``(ii) has an effect on agriculture, food,
nutrition, or the environment.
``(G) Institute.--The term `Institute' means the
National Institute of Food and Agriculture established
by paragraph (2)(A).
``(2) Establishment of national institute of food and
agriculture.--
``(A) Establishment.--The Secretary shall establish
within the Department an agency to be known as the
`National Institute of Food and Agriculture'.
``(B) [NOTE: Deadline.]  Transfer of
authorities.--The Secretary shall transfer to the
Institute, effective not later than October 1, 2009, the
authorities (including all budget authorities, available
appropriations, and personnel), duties, obligations, and
related legal and administrative functions prescribed by
law or otherwise granted to the Secretary, the
Department, or any other agency or official of the
Department under--
``(i) the capacity and infrastructure
programs;
``(ii) the competitive programs;
``(iii) the research, education, economic,
cooperative State research programs, cooperative
extension and education programs, international
programs, and other

[[Page 2027]]
122 STAT. 2027

functions and authorities delegated by the Under
Secretary to the Administrator of the Cooperative
State Research, Education, and Extension Service
pursuant to section 2.66 of title 7, Code of
Federal Regulations (or successor regulations);
and
``(iv) any and all other authorities
administered by the Administrator of the
Cooperative State Research, Education, and
Extension Service.
``(3) Director.--
``(A) In general.--The Institute shall be headed by
a Director, who shall be an individual who is--
``(i) a distinguished scientist; and
``(ii) appointed by the President.
``(B) Supervision.--The Director shall report
directly to the Secretary, or the designee of the
Secretary.
``(C) Functions of the director.--The Director
shall--
``(i) serve for a 6-year term, subject to
reappointment for an additional 6-year term;
``(ii) periodically report to the Secretary,
or the designee of the Secretary, with respect to
activities carried out by the Institute; and
``(iii) consult regularly with the Secretary,
or the designee of the Secretary, to ensure, to
the maximum extent practicable, that--
``(I) research of the Institute is
relevant to agriculture in the United
States and otherwise serves the national
interest; and
``(II) the research of the Institute
supplements and enhances, and does not
supplant, research conducted or funded
by other Federal agencies.
``(D) Compensation.--The Director shall receive
basic pay at a rate not to exceed the maximum amount of
compensation payable to a member of the Senior Executive
Service under subsection (b) of section 5382 of title 5,
United States Code, except that the certification
requirement in that subsection shall not apply to the
compensation of the Director.
``(E) Authority and responsibilities of director.--
Except as otherwise specifically provided in this
subsection, the Director shall--
``(i) exercise all of the authority provided
to the Institute by this subsection;
``(ii) formulate and administer programs in
accordance with policies adopted by the Institute,
in coordination with the Under Secretary;
``(iii) establish offices within the
Institute;
``(iv) [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.--

[[Page 2028]]
122 STAT. 2028

``(A) In general.--The Director shall organize
offices and functions within the Institute to administer
fundamental and applied research and extension and
education programs.
``(B) Research priorities.--The Director shall
ensure the research priorities established by the Under
Secretary through the Research, Education and Extension
Office are carried out by the offices and functions of
the Institute, where applicable.
``(C) Fundamental and applied research.--The
Director shall--
``(i) determine an appropriate balance between
fundamental and applied research programs and
functions to ensure future research needs are met;
and
``(ii) designate staff, as appropriate, to
assist in carrying out this subparagraph.
``(D) Competitively funded awards.--The Director
shall--
``(i) promote the use and growth of grants
awarded through a competitive process; and
``(ii) designate staff, as appropriate, to
assist in carrying out this subparagraph.
``(E) Coordination.--The Director shall ensure that
the offices and functions established under subparagraph
(A) are effectively coordinated for maximum efficiency.
``(6) Funding.--
``(A) In general.--In addition to funds otherwise
appropriated to carry out each program administered by
the Institute, there are authorized to be appropriated
such sums as are necessary to carry out this subsection
for each fiscal year.
``(B) Allocation.--Funding made available under
subparagraph (A) shall be allocated according to
recommendations contained in the roadmap described in
section 7504 of the Food, Conservation, and Energy Act
of 2008.''.

(b) Functions.--Section 296(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(6) the authority of the Secretary to establish in the
Department, under section 251--
``(A) the position of Under Secretary of Agriculture
for Research, Education, and Economics;
``(B) the Research, Education, and Extension Office;
and
``(C) the National Institute of Food and
Agriculture.''.

(c) [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

[[Page 2029]]
122 STAT. 2029

(3)(A) by striking ``the Cooperative State Research, Education,
and Extension Service'' each place it appears and inserting
``the National Institute of Food and Agriculture''.
(3) Section 306(a)(11)(C) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(11)(C)) is amended by striking
``the Cooperative State Research, Education, and Extension
Service'' and inserting ``the National Institute of Food and
Agriculture''.
(4) Section 5(b)(2)(E) of the Agricultural Credit
Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102-554)
is amended by striking ``Cooperative Extension Service'' and
inserting ``National Institute of Food and Agriculture''.
(5) Section 11(f)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2020(f)(1)) is amended by striking ``Cooperative
Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(6) Section 502(h) of the Rural Development Act of 1972 (7
U.S.C. 2662(h)) is amended--
(A) in paragraph (1), by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''; and
(B) in paragraph (4), by striking ``Extension
Service staff'' and inserting ``National Institute of
Food and Agriculture staff''.
(7) Section 7404(b)(1)(B) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107-171)
is amended by striking clause (vi) and inserting the following:
``(vi) the National Institute of Food and
Agriculture.''.
(8) Section 1408(b)(4) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3123(b)(4)) is amended by striking ``the Administrator of the
Cooperative State Research, Education, and Extension Service''
and inserting ``the Director of the National Institute of Food
and Agriculture''.
(9) Section 2381(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 3125b(a)) is amended by striking
``Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(10) The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended--
(A) in section 1424A(b) (7 U.S.C. 3174a(b)), by
striking ``the Cooperative State Research, Education,
and Extension Service'' and inserting ``the National
Institute of Food and Agriculture''; and
(B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)),
by striking ``the Cooperative State Research, Education,
and Extension Service'' and inserting ``the National
Institute of Food and Agriculture''.
(11) Section 1587(a) of the Food Security Act of 1985 (7
U.S.C. 3175d(a)) is amended by striking ``Extension Service''
each place it appears and inserting ``National Institute of Food
and Agriculture''.
(12) Section 1444(b)(2)(A) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.

[[Page 2030]]
122 STAT. 2030

3221(b)(2)(A)) is amended by striking ``Extension Service'' and
inserting ``National Institute of Food and Agriculture''.
(13) Section 1473D(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(d))
is amended by striking ``the Cooperative State Research Service,
the Extension Service'' and inserting ``the National Institute
of Food and Agriculture''.
(14) Section 1499(c) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5506(c)) is amended by striking
``the Cooperative State Research Service'' and all that follows
through ``extension services;'' and inserting ``the National
Institute of Food and Agriculture, in conjunction with the
system of State agricultural experiment stations and State and
county cooperative extension services; the Economic Research
Service;''.
(15) Section 1622 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5812) is amended--
(A) in subsection (a)(1), by striking ``the
Cooperative State Research Service in close cooperation
with the Extension Service'' and inserting ``the
National Institute of Food and Agriculture'';
(B) in subsection (b)(1)--
(i) by striking subparagraphs (B) and (C) and
inserting the following:
``(B) the National Institute of Food and
Agriculture;''; and
(ii) by redesignating subparagraphs (D)
through (L) as subparagraphs (C) through (K),
respectively.
(16) Section 1627(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5821(d)) is amended by striking
``Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(17) Section 1629 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5832) is amended--
(A) in subsection (b), in the first sentence, by
striking ``the Extension Service'' and inserting ``the
National Institute of Food and Agriculture''; and
(B) in subsection (h), by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''.
(18) Section 1638(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5852(b)) is amended--
(A) in paragraph (3), by striking ``Cooperative
State Research Service'' and inserting ``National
Institute of Food and Agriculture''; and
(B) in paragraph (5), by striking ``Cooperative
State Research Service'' and inserting ``National
Institute of Food and Agriculture''.
(19) Section 1640(a)(2) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5854(a)(2)) is
amended by striking ``the Administrator of the Extension
Service, the Administrator of the Cooperative State Research
Service'' and inserting ``the Director of the National Institute
of Food and Agriculture''.
(20) Section 1641(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5855(a)) is amended--

[[Page 2031]]
122 STAT. 2031

(A) in paragraph (2), by striking ``Cooperative
State Research Service'' and inserting ``National
Institute of Food and Agriculture''; and
(B) in paragraph (4,) by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''.
(21) Section 1668(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5921(b)) is amended by striking
``Cooperative State Research, Education, and Extension Service''
and inserting ``National Institute of Food and Agriculture''.
(22) Section 1670(a)(4) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is
amended by striking ``the Administrator of the Cooperative State
Research, Education, and Extension Service'' and inserting ``the
Director of the National Institute of Food and Agriculture''.
(23) Section 1677(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5930(a)) is amended by striking
``Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(24) Section 2122(b)(1) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 6521(b)(1)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(25) Section 2371 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6601) is amended--
(A) in subsection (a), by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''; and
(B) in subsection (c)(3), by striking ``Service''
and inserting ``System''.
(26) Section 2377(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6615(a)) is amended by striking
``Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(27) Section 212(a)(2)(A) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6912(a)(2)(A)) is amended
by striking ``251(d),'' and inserting ``251(f),''.
(28) Section 537 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7446) is amended in each of
subsections (a)(2) and (b)(3)(B)(i) by striking ``Cooperative
State Research, Education, and Extension Service'' and inserting
``cooperative extension''.
(29) Section 101(b)(2) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7611(b)(2)) is amended by striking ``Cooperative State Research,
Education, and Extension Service'' and inserting ``National
Institute of Food and Agriculture''.
(30) Section 103(a) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended--
(A) in the subsection heading, by striking
``Cooperative State Research, Education, and Extension
Service'' and inserting ``National Institute of Food and
Agriculture''; and
(B) in each of paragraphs (1) and (2)(A), by
striking ``the Cooperative State Research, Education,
and Extension Service'' and inserting ``the National
Institute of Food and Agriculture''.

[[Page 2032]]
122 STAT. 2032

(31) Section 407(c) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7627(c)) is amended
by striking ``the Cooperative State Research, Education, and
Extension Service'' and inserting ``the National Institute of
Food and Agriculture''.
(32) Section 410(a) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7630(a)) is amended
by striking ``the Administrator of the Cooperative State
Research, Education, and Extension Service'' and inserting ``the
Director of the National Institute of Food and Agriculture''.
(33) Section 307(g)(5) of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking
``Administrator of the Cooperative State Research, Education,
and Extension Service'' and inserting ``Director of the National
Institute of Food and Agriculture''.
(34) Section 5(a) of the Renewable Resources Extension Act
of 1978 (16 U.S.C. 1674a(a)) is amended by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''.
(35) Section 6(b) of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2103b(b)) is amended by striking ``the
Cooperative State Research, Education, and Extension Service,
may provide technical, financial, and related assistance to
State foresters, equivalent State officials, or Cooperative
Extension officials'' and inserting ``the National Institute of
Food and Agriculture, may provide technical, financial, and
related assistance to State foresters, equivalent State
officials, or cooperative extension officials''.
(36) Section 9(g)(2)(A)(viii) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2105(g)(2)(A)(viii)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(37) Section 19(b)(1)(B)(i) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2113(b)(1)(B)(i)) is amended
by striking ``Extension Service'' and inserting ``National
Institute of Food and Agriculture''.
(38) Section 1261(c)(4) of the Food Security Act of 1985 (16
U.S.C. 3861(c)(4)) is amended by striking ``Extension Service''
and inserting ``National Institute of Food and Agriculture''.
(39) Section 105(a) of the Africa: Seeds of Hope Act of 1998
(22 U.S.C. 2293 note; Public Law 105-385) is amended by striking
``the Cooperative State, Research, Education, and Extension
Service (CSREES)'' and inserting ``the National Institute of
Food and Agriculture''.
(40) Section 307(a)(4) of the National Aeronautic and Space
Administration Authorization Act of 2005 (42 U.S.C. 16657(a)(4))
is amended by striking subparagraph (B) and inserting the
following:
``(B) the program and structure of, peer review
process of, management of conflicts of interest by,
compensation of reviewers of, and the effects of
compensation on reviewer efficiency and quality within,
the National Institute of Food and Agriculture of the
Department of Agriculture;''.

[[Page 2033]]
122 STAT. 2033

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) [NOTE: Applicability.]  Administration.--Paragraphs (4), (7),
(8), and (11)(B) of subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i) shall apply with respect
to the making of grants under this section.

(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.
SEC. 7522. [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.

[[Page 2034]]
122 STAT. 2034

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) [NOTE: Applicability.]  Administration.--Paragraphs (4), (7),
(8), and (11)(B) of subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i) shall apply with respect
to the making of grants under this section.

(d) Selection.--An eligible entity selected to receive a grant under
subsection (a) shall have--
(1) expertise regarding the distribution of vegetable seeds
donated by commercial seed companies; and
(2) the ability to achieve the purpose of the seed
distribution program.

(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.
SEC. 7524. [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.

[[Page 2035]]
122 STAT. 2035

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.
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) [NOTE: State listing.]  Grants.--
(1) In general.--The Secretary shall use amounts made
available under subsection (g) to provide grants to each of the
following:
(A) North-central center.--A north-central sun grant
center at South Dakota State University for the

[[Page 2036]]
122 STAT. 2036

region composed of the States of Illinois, Indiana,
Iowa, Minnesota, Montana, Nebraska, North Dakota, South
Dakota, Wisconsin, and Wyoming.
(B) Southeastern center.--A southeastern sun grant
center at the University of Tennessee at Knoxville for
the region composed of--
(i) the States of Alabama, Florida, Georgia,
Kentucky, Mississippi, North Carolina, South
Carolina, Tennessee, and Virginia;
(ii) the Commonwealth of Puerto Rico; and
(iii) the United States Virgin Islands.
(C) South-central center.--A south-central sun grant
center at Oklahoma State University for the region
composed of the States of Arkansas, Colorado, Kansas,
Louisiana, Missouri, New Mexico, Oklahoma, and Texas.
(D) Western center.--A western sun grant center at
Oregon State University for the region composed of--
(i) the States of Alaska, Arizona, California,
Hawaii, Idaho, Nevada, Oregon, Utah, and
Washington; and
(ii) insular areas (as defined in section 1404
of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3103
(other than the insular areas referred to in
clauses (ii) and (iii) of subparagraph (B))).
(E) Northeastern center.--A northeastern sun grant
center at Cornell University for the region composed of
the States of Connecticut, Delaware, Massachusetts,
Maryland, Maine, Michigan, New Hampshire, New Jersey,
New York, Ohio, Pennsylvania, Rhode Island, Vermont, and
West Virginia.
(F) Western insular pacific subcenter.--A western
insular Pacific sun grant subcenter at the University of
Hawaii for the region of Alaska, Hawaii, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands,
the Federated States of Micronesia, the Republic of the
Marshall Islands, and the Republic of Palau.
(2) Manner of distribution.--
(A) Centers.--In providing any funds made available
under subsection (g), the Secretary shall distribute the
grants in equal amounts to the sun grant centers
described in subparagraphs (A) through (E) of paragraph
(1).
(B) Subcenter.--The sun grant center described in
paragraph (1)(D) shall allocate a portion of the funds
received under paragraph (1) to the subcenter described
in paragraph (1)(F) pursuant to guidance issued by the
Secretary.
(3) Failure to comply with requirements.--If the Secretary
finds on the basis of a review of the annual report required
under subsection (f) or on the basis of an audit of a sun grant
center or subcenter conducted by the Secretary that the center
or subcenter has not complied with the requirements of this
section, the sun grant center or subcenter shall be ineligible
to receive further grants under this section for such period of
time as may be prescribed by the Secretary.

(c) Use of Funds.--
(1) Competitive grants.--

[[Page 2037]]
122 STAT. 2037

(A) In general.--A sun grant center or subcenter
shall use 75 percent of the funds described in
subsection (b) to provide competitive grants to entities
that are--
(i) eligible to receive grants under
subsection (b)(7) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C.
450i(b)(7)); and
(ii) located in the region covered by the sun
grant center or subcenter.
(B) Activities.--Grants described in subparagraph
(A) shall be used by the grant recipient to conduct, in
a manner consistent with the purposes described in
subsection (a), multi-institutional and multistate--
(i) research, extension, and education
programs on technology development; and
(ii) integrated research, extension, and
education programs on technology implementation.
(C) Funding allocation.--Of the amount of funds that
is used to provide grants under subparagraph (A), the
sun grant center or subcenter shall use--
(i) not less than 30 percent of the funds to
carry out the programs described in subparagraph
(B)(i); and
(ii) not less than 30 percent of the funds to
carry out the programs described in subparagraph
(B)(ii).
(D) Administration.--
(i) Peer and merit review.--In making grants
under this paragraph, a sun grant center or
subcenter shall--
(I) seek and accept proposals for
grants;
(II) determine the relevance and
merit of proposals through a system of
peer review similar to that established
by the Secretary pursuant to section 103
of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7
U.S.C. 7613); and
(III) award grants on the basis of
merit, quality, and relevance to
advancing the purposes of this section.
(ii) Priority.--A sun grant center or
subcenter shall give a higher priority to programs
that are consistent with the plan approved by the
Secretary under subsection (d).
(iii) Term.--A grant awarded by a sun grant
center or subcenter shall have a term that does
not exceed 5 years.
(iv) Matching funds required.--
(I) In general.--Except as provided
in subclauses (II) and (III), as a
condition of receiving a grant under
this paragraph, the sun grant center or
subcenter shall require that not less
than 20 percent of the cost of an
activity described in subparagraph (B)
be matched with funds, including in-kind
contributions, from a non-Federal
source.
(II) Exclusion.--Subclause (I) shall
not apply to fundamental research (as
defined in subsection

[[Page 2038]]
122 STAT. 2038

(f)(1) of section 251 of the Department
of Agriculture Reorganization Act of
1994 (7 U.S.C. 6971) (as added by
section 7511(a)(4)).
(III) Reduction.--The sun grant
center or subcenter may reduce or
eliminate the requirement for non-
Federal funds under subclause (I) for
applied research (as defined in
subsection (f)(1) of section 251 of the
Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6971) (as added by
section 7511(a)(4)) if the sun grant
center or subcenter determines that the
reduction is necessary and appropriate
pursuant to guidance issued by the
Secretary.
(v) Buildings and facilities.--Funds made
available for grants shall not be used for the
construction of a new building or facility or the
acquisition, expansion, remodeling, or alteration
of an existing building or facility (including
site grading and improvement and architect fees).
(vi) Limitation on indirect costs.--A sun
grant center or subcenter may not recover the
indirect costs of making grants under subparagraph
(A).
(2) Administrative expenses.--A sun grant center or
subcenter may use up to 4 percent of the funds described in
subsection (b) to pay administrative expenses incurred in
carrying out paragraph (1).
(3) Research, extension and educational activities.--The sun
grant centers and subcenter shall use the remainder of the funds
described in subsection (b) to conduct, in a manner consistent
with the purposes described in subsection (a), multi-
institutional and multistate--
(A) research, extension, and educational programs on
technology development; and
(B) integrated research, extension, and educational
programs on technology implementation.

(d) Plan for Research Activities to Be Funded.--
(1) In general.--Subject to the availability of funds under
subsection (g), and in cooperation with land-grant colleges and
universities and private industry in accordance with paragraph
(2), the sun grant centers and subcenter shall jointly develop
and submit to the Secretary for approval a plan for addressing
the bioenergy, biomass, and gasification research priorities of
the Department of Agriculture and the Department of Energy at
the State and regional levels.
(2) Gasification coordination.--With respect to gasification
research activity, the sun grant centers and subcenter shall
coordinate planning with land-grant colleges and universities in
their respective regions that have ongoing research activities
in that area.
(3) Funding.--Funds described in subsection (c)(2) shall be
available to carry out planning coordination under paragraph
(1).
(4) Use of plan.--The sun grant centers and subcenter shall
use the plan described in paragraph (1) in making grants under
subsection (c)(1).

(e) Grant Information Analysis Center.--The sun grant centers and
subcenter shall maintain a Sun Grant Information

[[Page 2039]]
122 STAT. 2039

Analysis Center at the sun grant center specified in subsection
(b)(1)(A) to provide the sun grant centers and subcenter with analysis
and data management support.
(f) Annual Reports.--Not later than 90 days after the end of each
fiscal year, a sun grant center or subcenter receiving a grant under
this section shall submit to the Secretary a report that describes the
policies, priorities, and operations of the program carried out by the
center or subcenter during the fiscal year, including--
(1) the results of all peer and merit review procedures
conducted pursuant to subsection (c)(1)(D)(i); and
(2) a description of progress made in facilitating the
priorities described in subsection (d)(1).

(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $75,000,000 for each of fiscal
years 2008 through 2012, of which not more than $4,000,000 for each
fiscal year shall be made available to carry out subsection (e).
SEC. 7527. STUDY AND REPORT ON FOOD DESERTS.

(a) Definition of Food Desert.--In this section, the term ``food
desert'' means an area in the United States with limited access to
affordable and nutritious food, particularly such an area composed of
predominantly lower-income neighborhoods and communities.
(b) Study and Report.--The Secretary shall carry out a study of, and
prepare a report on, food deserts.
(c) Contents.--The study and report shall--
(1) assess the incidence and prevalence of food deserts;
(2) identify--
(A) characteristics and factors causing and
influencing food deserts; and
(B) the effect on local populations of limited
access to affordable and nutritious food; and
(3) provide recommendations for addressing the causes and
effects of food deserts through measures that include--
(A) community and economic development initiatives;
(B) incentives for retail food market development,
including supermarkets, small grocery stores, and
farmers' markets; and
(C) improvements to Federal food assistance and
nutrition education programs.

(d) Coordination With Other Agencies and Organizations.--The
Secretary shall conduct the study under this section in coordination and
consultation with--
(1) the Secretary of Health and Human Services;
(2) the Administrator of the Small Business Administration;
(3) the Institute of Medicine; and
(4) representatives of appropriate businesses, academic
institutions, and nonprofit and faith-based organizations.

(e) Submission to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate the report prepared
under this section, including the findings and recommendations described
in subsection (c).

[[Page 2040]]
122 STAT. 2040

(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.

(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.

[[Page 2041]]
122 STAT. 2041

TITLE VIII--FORESTRY

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

SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION.

Section 2 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2101) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (b) the following new
subsections:

``(c) Priorities.--In allocating funds appropriated or otherwise
made available under this Act, the Secretary shall focus on the
following national private forest conservation priorities,
notwithstanding other priorities specified elsewhere in this Act:
``(1) Conserving and managing working forest landscapes for
multiple values and uses.
``(2) Protecting forests from threats, including
catastrophic wildfires, hurricanes, tornados, windstorms, snow
or ice storms, flooding, drought, invasive species, insect or
disease outbreak, or development, and restoring appropriate
forest types in response to such threats.
``(3) Enhancing public benefits from private forests,
including air and water quality, soil conservation, biological
diversity, carbon storage, forest products, forestry-related
jobs, production of renewable energy, wildlife, wildlife
corridors and wildlife habitat, and recreation.

``(d) Reporting Requirement.--Not later than September 30, 2011, the
Secretary shall submit to Congress a report describing how funds were
used under this Act, and through other programs administered by the
Secretary, to address the national priorities specified in subsection
(c) and the outcomes achieved in meeting the national priorities.''.
SEC. 8002. LONG-TERM STATE-WIDE ASSESSMENTS AND STRATEGIES FOR
FOREST RESOURCES.

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

[[Page 2042]]
122 STAT. 2042

``(B) the threats to forest lands and resources in
that State consistent with the national priorities
specified in section 2(c);
``(C) any areas or regions of that State that are a
priority; and
``(D) any multi-State areas that are a regional
priority.
``(2) A long-term State-wide forest resource strategy,
including--
``(A) strategies for addressing threats to forest
resources in the State outlined in the assessment
required by paragraph (1); and
``(B) a description of the resources necessary for
the State forester or equivalent State official from all
sources to address the State-wide strategy.

``(b) Updating.--At such times as the Secretary determines to be
necessary, the State forester or equivalent State official shall update
and resubmit to the Secretary the State-wide assessment and State-wide
strategy required by subsection (a).
``(c) Coordination.--In developing or updating the State-wide
assessment and State-wide strategy required by subsection (a), the State
Forester or equivalent State official shall coordinate with--
``(1) the State Forest Stewardship Coordinating Committee
established for the State under section 19(b);
``(2) the State wildlife agency, with respect to strategies
contained in the State wildlife action plans;
``(3) the State Technical Committee;
``(4) applicable Federal land management agencies; and
``(5) for purposes of the Forest Legacy Program under
section 7, the State lead agency designated by the Governor.

``(d) Incorporation of Other Plans.--In developing or updating the
State-wide assessment and State-wide strategy required by subsection
(a), the State forester or equivalent State official shall incorporate
any forest management plan of the State, including community wildfire
protection plans and State wildlife action plans.
``(e) Sufficiency.--Once approved by the Secretary, a State-wide
assessment and State-wide strategy developed under subsection (a) shall
be deemed to be sufficient to satisfy all relevant State planning and
assessment requirements under this Act.
``(f) Funding.--
``(1) Authorization of appropriations.--There are authorized
to be appropriated to carry out this section up to $10,000,000
for each of fiscal years 2008 through 2012.
``(2) Additional funding sources.--In addition to the funds
appropriated for a fiscal year pursuant to the authorization of
appropriations in paragraph (1) to carry out this section, the
Secretary may use any other funds made available for planning
under this Act to carry out this section, except that the total
amount of combined funding used to carry out this section may
not exceed $10,000,000 in any fiscal year.

``(g) Annual Report on Use of Funds.--The State forester or
equivalent State official shall submit to the Secretary an annual report
detailing how funds made available to the State under this Act are being
used.''.

[[Page 2043]]
122 STAT. 2043

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:
``(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).

[[Page 2044]]
122 STAT. 2044

``(6) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Chief of the Forest Service.

``(b) Establishment.--The Secretary shall establish a program, to be
known as the `community forest and open space conservation program'.
``(c) Grant Program.--
``(1) In general.--The Secretary may award grants to
eligible entities to acquire private forest land, to be owned in
fee simple, that--
``(A) are threatened by conversion to nonforest
uses; and
``(B) provide public benefits to communities,
including--
``(i) economic benefits through sustainable
forest management;
``(ii) environmental benefits, including clean
water and wildlife habitat;
``(iii) benefits from forest-based educational
programs, including vocational education programs
in forestry;
``(iv) benefits from serving as models of
effective forest stewardship for private
landowners; and
``(v) recreational benefits, including hunting
and fishing.
``(2) Federal cost share.--An eligible entity may receive a
grant under the Program in an amount equal to not more than 50
percent of the cost of acquiring 1 or more parcels, as
determined by the Secretary.
``(3) Non-federal share.--As a condition of receipt of the
grant, an eligible entity that receives a grant under the
Program shall provide, in cash, donation, or in kind, a non-
Federal matching share in an amount that is at least equal to
the amount of the grant received.
``(4) Appraisal of parcels.--To determine the non-Federal
share of the cost of a parcel of privately-owned forest land
under paragraph (2), an eligible entity shall require appraisals
of the land that comply with the Uniform Appraisal Standards for
Federal Land Acquisitions developed by the Interagency Land
Acquisition Conference.
``(5) Application.--An eligible entity that seeks to receive
a grant under the Program shall submit to the State forester or
equivalent official (or in the case of an Indian tribe, an
equivalent official of the Indian tribe) an application that
includes--
``(A) a description of the land to be acquired;
``(B) a forest plan that provides--
``(i) a description of community benefits to
be achieved from the acquisition of the private
forest land; and
``(ii) an explanation of the manner in which
any private forest land to be acquired using funds
from the grant will be managed; and
``(C) such other relevant information as the
Secretary may require.
``(6) Effect on trust land.--
``(A) Ineligibility.--The Secretary shall not
provide a grant under the Program for any project on
land held

[[Page 2045]]
122 STAT. 2045

in trust by the United States (including Indian
reservations and allotment land).
``(B) Acquired land.--No land acquired using a grant
provided under the Program shall be converted to land
held in trust by the United States on behalf of any
Indian tribe.
``(7) Applications to secretary.--The State forester or
equivalent official (or in the case of an Indian tribe, an
equivalent official of the Indian tribe) shall submit to the
Secretary a list that includes a description of each project
submitted by an eligible entity at such times and in such form
as the Secretary shall prescribe.

``(d) Duties of Eligible Entity.--An eligible entity shall provide
public access to, and manage, forest land acquired with a grant under
this section in a manner that is consistent with the purposes for which
the land was acquired under the Program.
``(e) Prohibited Uses.--
``(1) In general.--Subject to paragraphs (2) and (3), an
eligible entity that acquires a parcel under the Program shall
not sell the parcel or convert the parcel to nonforest use.
``(2) Reimbursement of funds.--An eligible entity that sells
or converts to nonforest use a parcel acquired under the Program
shall pay to the Federal Government an amount equal to the
greater of the current sale price, or current appraised value,
of the parcel.
``(3) Loss of eligibility.--An eligible entity that sells or
converts a parcel acquired under the Program shall not be
eligible for additional grants under the Program.

``(f) State Administration and Technical Assistance.--The Secretary
may allocate not more than 10 percent of all funds made available to
carry out the Program for each fiscal year to State foresters or
equivalent officials (including equivalent officials of Indian tribes)
for Program administration and technical assistance.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
SEC. 8004. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA, THE
REPUBLIC OF THE MARSHALL ISLANDS, AND
THE REPUBLIC OF PALAU.

Section 13(d)(1) of the Cooperative Forestry Act of 1978 (16 U.S.C.
2109(d)(1)) is amended by striking ``the Trust Territory of the Pacific
Islands,'' and inserting ``the Federated States of Micronesia, the
Republic of the Marshall Islands, the Republic of Palau,''.
SEC. 8005. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE.

Section 19 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2113) is amended by striking subsection (a) and inserting the
following new subsection:
``(a) Forest Resource Coordinating Committee.--
``(1) Establishment.--The Secretary shall establish a
committee, to be known as the `Forest Resource Coordinating
Committee' (in this section referred to as the `Coordinating
Committee'), to coordinate nonindustrial private forestry
activities within the Department of Agriculture and with the
private sector.

[[Page 2046]]
122 STAT. 2046

``(2) Composition.--The Coordinating Committee shall be
composed of the following:
``(A) The Chief of the Forest Service.
``(B) The Chief of the Natural Resources
Conservation Service.
``(C) The Director of the Farm Service Agency.
``(D) The Director of the National Institute of Food
and Agriculture.
``(E) Non-Federal representatives appointed by the
Secretary to 3 year terms, although initial appointees
shall have staggered terms, including the following
persons:
``(i) At least three State foresters or
equivalent State officials from geographically
diverse regions of the United States.
``(ii) A representative of a State fish and
wildlife agency.
``(iii) An owner of nonindustrial private
forest land.
``(iv) A forest industry representative.
``(v) A conservation organization
representative.
``(vi) A land-grant university or college
representative.
``(vii) A private forestry consultant.
``(viii) A representative from a State
Technical Committee established under section 1261
of the Food Security Act of 1985 (16 U.S.C. 3861).
``(F) Such other persons as determined by the
Secretary to be appropriate.
``(3) Chairperson.--The Chief of the Forest Service shall
serve as chairperson of the Coordinating Committee.
``(4) Duties.--The Coordinating Committee shall--
``(A) provide direction and coordination of actions
within the Department of Agriculture, and coordination
with State agencies and the private sector, to
effectively address the national priorities specified in
section 2(c), with specific focus owners of
nonindustrial private forest land;
``(B) clarify individual agency responsibilities of
each agency represented on the Coordinating Committee
concerning the national priorities specified in section
2(c), with specific focus on nonindustrial private
forest land;
``(C) provide advice on the allocation of funds,
including the competitive funds set-aside by sections
13A and 13B; and
``(D) assist the Secretary in developing and
reviewing the report required by section 2(d).
``(5) Meeting.--The Coordinating Committee shall meet
annually to discuss progress in addressing the national
priorities specified in section 2(c) and issues regarding
nonindustrial private forest land.
``(6) Compensation.--
``(A) Federal members.--Members of the Coordinating
Committee who are full-time officers or employees of the
United States shall receive no additional pay,
allowances, or benefits by reason of their service on
the Coordinating Committee.
``(B) Non-federal members.--Non-federal members of
the Coordinating Committee shall serve without pay, but

[[Page 2047]]
122 STAT. 2047

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) [NOTE: Deadline.]  Competition.--Beginning not later than 3
years after the date of the enactment of the Food, Conservation, and
Energy Act of 2008, the Secretary shall competitively allocate a
portion, to be determined by the Secretary, of the funds available under
this Act to State foresters or equivalent State officials.

``(b) Determination.--In determining the competitive allocation of
funds under subsection (a), the Secretary shall consult with the Forest
Resource Coordinating Committee established by section 19(a).
``(c) Priority.--The Secretary shall give priority for funding to
States for which the long-term State-wide forest resource strategies
submitted under section 2A(a)(2) will best promote the national
priorities specified in section 2(c).''.
SEC. 8008. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE FOREST
INNOVATION PARTNERSHIP PROJECTS.

The Cooperative Forestry Assistance Act of 1978 is amended by
inserting after section 13A, as added by section 8006, the following new
section:
``SEC. 13B. [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).

[[Page 2048]]
122 STAT. 2048

``(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;
(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.

[[Page 2049]]
122 STAT. 2049

(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 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.

[[Page 2050]]
122 STAT. 2050

(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
(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--

[[Page 2051]]
122 STAT. 2051

(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
(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:

[[Page 2052]]
122 STAT. 2052

``(1) Emergency measures.--The term `emergency measures'
means those measures that--
``(A) are necessary to address damage caused by a
natural disaster to natural resources on nonindustrial
private forest land, and the damage, if not treated--
``(i) would impair or endanger the natural
resources on the land; and
``(ii) would materially affect future use of
the land; and
``(B) would restore forest health and forest-related
resources on the land.
``(2) Natural disaster.--The term `natural disaster'
includes wildfires, hurricanes or excessive winds, drought, ice
storms or blizzards, floods, or other resource-impacting events,
as determined by the Secretary.
``(3) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land, as
determined by the Secretary, that--
``(A) has existing tree cover (or had tree cover
immediately before the natural disaster and is suitable
for growing trees); and
``(B) is owned by any nonindustrial private
individual, group, association, corporation, or other
private legal entity, that has definitive decision-
making authority over the land.
``(4) Secretary.--The term `Secretary' means the Secretary
of Agriculture.

``(b) Availability of Assistance.--The Secretary may make payments
to an owner of nonindustrial private forest land who carries out
emergency measures to restore the land after the land is damaged by a
natural disaster.
``(c) Eligibility.--To be eligible to receive a payment under
subsection (b), an owner must demonstrate to the satisfaction of the
Secretary that the nonindustrial private forest land on which the
emergency measures are carried out had tree cover immediately before the
natural disaster.
``(d) Cost Share Requirement.--Payments made under subsection (b)
shall not exceed 75 percent of the total cost of the emergency measures
carried out by an owner of nonindustrial private forest land.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such funds as may be necessary to carry
out this section. Amounts so appropriated shall remain available until
expended.''.
(b) [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,

[[Page 2053]]
122 STAT. 2053

or products thereof, and including trees from either natural or
planted forest stands.
``(2) Exclusions.--The terms `plant' and `plants' exclude--
``(A) common cultivars, except trees, and common
food crops (including roots, seeds, parts, or products
thereof);
``(B) a scientific specimen of plant genetic
material (including roots, seeds, germplasm, parts, or
products thereof) that is to be used only for laboratory
or field research; and
``(C) any plant that is to remain planted or to be
planted or replanted.
``(3) Exceptions to application of exclusions.--The
exclusions made by subparagraphs (B) and (C) of paragraph (2) do
not apply if the plant is listed--
``(A) in an appendix to the Convention on
International Trade in Endangered Species of Wild Fauna
and Flora (27 UST 1087; TIAS 8249);
``(B) as an endangered or threatened species under
the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.); or
``(C) pursuant to any State law that provides for
the conservation of species that are indigenous to the
State and are threatened with extinction.''.
(2) Inclusion of secretary of agriculture.--Section 2(h) of
the Lacey Act Amendments of 1981 (16 U.S.C. 3371(h)) is amended
by striking ``plants the term means'' and inserting ``plants,
the term also means''.
(3) Taken and taking.--Subsection (j) of section 2 of the
Lacey Act Amendments of 1981 (16 U.S.C. 3371) is amended to read
as follows:

``(j) Taken and Taking.--
``(1) Taken.--The term `taken' means captured, killed, or
collected and, with respect to a plant, also means harvested,
cut, logged, or removed.
``(2) Taking.--The term `taking' means the act by which
fish, wildlife, or plants are taken.''.

(b) Prohibited Acts.--
(1) Offenses other than marking.--Section 3(a) of the Lacey
Act Amendments of 1981 (16 U.S.C. 3372(a)) is amended--
(A) in paragraph (2), by striking subparagraph (B)
and inserting the following new subparagraph:
``(B) any plant--
``(i) taken, possessed, transported, or sold
in violation of any law or regulation of any
State, or any foreign law, that protects plants or
that regulates--
``(I) the theft of plants;
``(II) the taking of plants from a
park, forest reserve, or other
officially protected area;
``(III) the taking of plants from an
officially designated area; or
``(IV) the taking of plants without,
or contrary to, required authorization;
``(ii) taken, possessed, transported, or sold
without the payment of appropriate royalties,
taxes, or stumpage fees required for the plant by
any law or regulation of any State or any foreign
law; or

[[Page 2054]]
122 STAT. 2054

``(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) [NOTE: Effective date.]  Import declaration.--
Effective 180 days from the date of enactment of this
subsection, and except as provided in paragraph (3), it shall be
unlawful for any person to import any plant unless the person
files upon importation a declaration that contains--
``(A) the scientific name of any plant (including
the genus and species of the plant) contained in the
importation;
``(B) a description of--
``(i) the value of the importation; and
``(ii) the quantity, including the unit of
measure, of the plant; and
``(C) the name of the country from which the plant
was taken.
``(2) Declaration relating to plant products.--Until the
date on which the Secretary promulgates a regulation under
paragraph (6), a declaration relating to a plant product shall--
``(A) in the case in which the species of plant used
to produce the plant product that is the subject of the
importation varies, and the species used to produce the
plant product is unknown, contain the name of each
species of plant that may have been used to produce the
plant product;
``(B) in the case in which the species of plant used
to produce the plant product that is the subject of the
importation is commonly taken from more than one
country, and the country from which the plant was taken
and used to produce the plant product is unknown,
contain

[[Page 2055]]
122 STAT. 2055

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) [NOTE: Deadline.]  Review.--Not later than two years
after the date of enactment of this subsection, the Secretary
shall review the implementation of each requirement imposed by
paragraphs (1) and (2) and the effect of the exclusion provided
by paragraph (3). In conducting the review, the Secretary shall
provide public notice and an opportunity for comment.
``(5) Report.--Not later than 180 days after the date on
which the Secretary completes the review under paragraph (4),
the Secretary shall submit to the appropriate committees of
Congress a report containing--
``(A) an evaluation of--
``(i) the effectiveness of each type of
information required under paragraphs (1) and (2)
in assisting enforcement of this section; and
``(ii) the potential to harmonize each
requirement imposed by paragraphs (1) and (2) with
other applicable import regulations in existence
as of the date of the report;
``(B) [NOTE: Recommenda- tions.]  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) [NOTE: Deadline.]  Promulgation of regulations.--Not
later than 180 days after the date on which the Secretary
completes the review under paragraph (4), the Secretary may
promulgate regulations--
``(A) to limit the applicability of any requirement
imposed by paragraph (2) to specific plant products;
``(B) to make any other necessary modification to
any requirement imposed by paragraph (2), as determined
by the Secretary based on the review; and
``(C) to limit the scope of the exclusion provided
by paragraph (3), if the limitations in scope are
warranted as a result of the review.''.

(c) Cross-References to New Requirement.--Section 4 of the Lacey Act
Amendments of 1981 (16 U.S.C. 3373) is amended--
(1) by striking ``subsections (b) and (d)'' each place it
appears and inserting ``subsections (b), (d), and (f)'';
(2) by striking ``section 3(d)'' each place it appears and
inserting ``subsection (d) or (f) of section 3''; and

[[Page 2056]]
122 STAT. 2056

(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--
(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

[[Page 2057]]
122 STAT. 2057

are not obligated by April 1 of the fiscal year for
which the funds are made available to carry out a
different method of enrollment during that fiscal year.
``(3) Acreage owned by indian tribes.--In the case of
acreage owned by an Indian tribe, the Secretary may enroll
acreage into the healthy forests reserve program through the use
of--
``(A) a 30-year contract (the value of which shall
be equivalent to the value of a 30-year easement);
``(B) a 10-year cost-share agreement; or
``(C) any combination of the options described in
subparagraphs (A) and (B).''.

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

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

Subtitle D--Boundary Adjustments and Land Conveyance Provisions

SEC. 8301. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY ADJUSTMENT.

(a) In General.--The boundary of the Green Mountain National Forest
is modified to include the 13 designated expansion units as generally
depicted on the forest maps entitled ``Green Mountain Expansion Area Map
I'' and ``Green Mountain Expansion Area Map II'' and dated February 20,
2002 (copies of which shall be on file and available for public
inspection in the Office of the Chief of the Forest Service, Washington,
District of Columbia), and more particularly described according to the
site specific maps and legal descriptions on file in the office of the
Forest Supervisor, Green Mountain National Forest.
(b) Management.--Federally owned land delineated on the maps
acquired for National Forest purposes shall continue to be managed in
accordance with the laws (including regulations) applicable to the
National Forest System.
(c) Land and Water Conservation Fund.--For the purposes of section 7
of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460 l-9),
the boundaries of the Green Mountain National Forest, as adjusted by
this section, shall be considered to be the boundaries of the national
forest as of January 1, 1965.

[[Page 2058]]
122 STAT. 2058

SEC. 8302. LAND CONVEYANCES, CHIHUAHUAN DESERT NATURE PARK, NEW
MEXICO, AND GEORGE WASHINGTON NATIONAL
FOREST, VIRGINIA.

(a) Chihuahuan Desert Nature Park Conveyance.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, subject to valid existing rights and
subsection (b), the Secretary of Agriculture shall convey to the
Chihuahuan Desert Nature Park, Inc., a nonprofit corporation in
the State of New Mexico (in this section referred to as the
``Nature Park''), by quitclaim deed and for no consideration,
all right, title, and interest of the United States in and to
the land described in paragraph (2)
(2) Description of land.--
(A) In general.--The parcel of land referred to in
paragraph (1) consists of the approximately 935.62 acres
of land in Dona Ana County, New Mexico, which is more
particularly described--
(i) as sections 17, 20, and 21 of T. 21 S., R.
2 E., N.M.P.M.; and
(ii) in an easement deed dated May 14, 1998,
from the Department of Agriculture to the Nature
Park.
(B) Modifications.--The Secretary may modify the
description of the land under subparagraph (A) to--
(i) correct errors in the description; or
(ii) facilitate management of the land.

(b) Conditions.--The conveyance of land under subsection (a) shall
be subject to--
(1) the reservation by the United States of all mineral and
subsurface rights to the land, including any geothermal
resources;
(2) the condition that the Chihuahuan Desert Nature Park
Board pay any costs relating to the conveyance;
(3) any rights-of-way reserved by the Secretary;
(4) a covenant or restriction in the deed to the land
requiring that--
(A) the land may be used only for educational or
scientific purposes; and
(B) if the land is no longer used for the purposes
described in subparagraph (A), the land may, at the
discretion of the Secretary, revert to the United States
in accordance with subsection (c); and
(5) any other terms and conditions that the Secretary
determines to be appropriate.

(c) Reversion.--If the land conveyed under subsection (a) is no
longer used for the purposes described in subsection (b)(4)(A), the land
may, at the discretion of the Secretary, revert to the United States. If
the Secretary chooses to have the land revert to the United States, the
Secretary shall--
(1) determine whether the land is environmentally
contaminated, including contamination from hazardous wastes,
hazardous substances, pollutants, contaminants, petroleum, or
petroleum by-products; and
(2) if the Secretary determines that the land is
environmentally contaminated, the Nature Park, the successor to
the Nature Park, or any other person responsible for the
contamination shall be required to remediate the contamination.

[[Page 2059]]
122 STAT. 2059

(d) Withdrawal.--All federally owned mineral and subsurface rights
to the land to be conveyed under subsection (a) are withdrawn from--
(1) location, entry, and patent under the mining laws; and
(2) the operation of the mineral leasing laws, including the
geothermal leasing laws.

(e) Water Rights.--Nothing in subsection (a) authorizes the
conveyance of water rights to the Nature Park.
(f) George Washington National Forest Conveyance, Virginia.--
(1) Conveyance required.--The Secretary of Agriculture shall
convey, without consideration, to the Central Advent Christian
Church of Alleghany County, Virginia (in this subsection
referred to as the ``recipient''), all right, title, and
interest of the United States in and to a parcel of real
property in the George Washington National Forest, Alleghany
County, Virginia, consisting of not more than 8 acres, including
a cemetery encompassing approximately 6 acres designated as an
area of special use for the recipient, and depicted on the
Forest Service map showing tract G-2032c and dated August 20,
2002, and the Forest Service map showing the area of special use
and dated March 14, 2001.
(2) Condition of conveyance.--The conveyance under this
subsection shall be subject to the condition that the recipient
accept the real property described in paragraph (1) in its
condition at the time of the conveyance, commonly known as
conveyance ``as is''.
(3) Description of property.--The exact acreage and legal
description of the real property to be conveyed under this
subsection shall be determined by a survey satisfactory to the
Secretary. The cost of the survey shall be borne by the
recipient.
(4) Additional terms and conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under this subsection as the Secretary considers
appropriate to protect the interests of the United States.
SEC. 8303. SALE AND EXCHANGE OF NATIONAL FOREST SYSTEM LAND,
VERMONT.

(a) Definitions.--In this section:
(1) Bromley.--The term ``Bromley'' means Bromley Mountain
Ski Resort, Inc.
(2) Map.--The term ``map'' means the map entitled ``Proposed
Bromley Land Sale or Exchange'' and dated April 7, 2004.
(3) State.--The term ``State'' means the State of Vermont.

(b) Sale or Exchange of Green Mountain National Forest Land.--
(1) In general.--The Secretary of Agriculture may, under any
terms and conditions that the Secretary may prescribe, sell or
exchange any right, title, and interest of the United States in
and to the parcels of National Forest System land described in
paragraph (2).
(2) Description of land.--The parcels of National Forest
System land referred to in paragraph (1) are the 5 parcels

[[Page 2060]]
122 STAT. 2060

of land in Bennington County in the State, as generally depicted
on the map.
(3) Map and legal descriptions.--
(A) In general.--The map shall be on file and
available for public inspection in--
(i) the office of the Chief of the Forest
Service; and
(ii) the office of the Supervisor of the Green
Mountain National Forest.
(B) Modifications.--The Secretary may modify the map
and legal descriptions to--
(i) correct technical errors; or
(ii) facilitate the conveyance under paragraph
(1).
(4) Consideration.--Consideration for the sale or exchange
of land described in paragraph (2)--
(A) shall be equal to an amount that is not less
than the fair market value of the land sold or
exchanged; and
(B) may be in the form of cash, land, or a
combination of cash and land.
(5) Appraisals.--Any appraisal carried out to facilitate the
sale or exchange of land under paragraph (1) shall conform with
the Uniform Appraisal Standards for Federal Land Acquisitions.
(6) Methods of sale.--
(A) Conveyance to bromley.--
(i) In general.--Before soliciting offers
under subparagraph (B), the Secretary shall offer
to convey to Bromley the land described in
paragraph (2).
(ii) Contract deadline.--If Bromley accepts
the offer under clause (i), the Secretary and
Bromley shall have not more than 180 days after
the date on which any environmental analyses with
respect to the land are completed to enter into a
contract for the sale or exchange of the land.
(B) Public or private sale.--If the Secretary and
Bromley do not enter into a contract for the sale or
exchange of the land by the date specified in
subparagraph (A)(ii), the Secretary may sell or exchange
the land at public or private sale (including auction),
in accordance with such terms, conditions, and
procedures as the Secretary determines to be in the
public interest.
(C) Rejection of offers.--The Secretary may reject
any offer received under this paragraph if the Secretary
determines that the offer is not adequate or is not in
the public interest.
(D) Brokers.--In any sale or exchange of land under
this subsection, the Secretary may--
(i) use a real estate broker or other third
party; and
(ii) pay the real estate broker or third party
a commission in an amount comparable to the
amounts of commission generally paid for real
estate transactions in the area.
(7) Cash equalization.--Notwithstanding section 206(b) of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1716(b)), the Secretary may accept a cash equalization

[[Page 2061]]
122 STAT. 2061

payment in excess of 25 percent of the value of any Federal land
exchanged under this section.

(c) Disposition of Proceeds.--
(1) In general.--The Secretary shall deposit the net
proceeds from a sale or exchange under this section in the fund
established under Public Law 90-171 (16 U.S.C. 484a) (commonly
known as the ``Sisk Act'').
(2) Use.--Amounts deposited under paragraph (1) shall be
available to the Secretary until expended, without further
appropriation, for--
(A) the location and relocation of the Appalachian
National Scenic Trail and the Long National Recreation
Trail in the State;
(B) the acquisition of land and interests in land by
the Secretary for National Forest System purposes within
the boundary of the Green Mountain National Forest,
including land for and adjacent to the Appalachian
National Scenic Trail and the Long National Recreation
Trail;
(C) the acquisition of wetland or an interest in
wetland within the boundary of the Green Mountain
National Forest to offset the loss of wetland from the
parcels sold or exchanged; and
(D) the payment of direct administrative costs
incurred in carrying out this section.
(3) Limitation.--Amounts deposited under paragraph (1) shall
not--
(A) be paid or distributed to the State or counties
or towns in the State under any provision of law; or
(B) be considered to be money received from units of
the National Forest System for purposes of--
(i) the Act of May 23, 1908 (16 U.S.C. 500);
or
(ii) the Act of March 4, 1913 (16 U.S.C. 501).
(4) Prohibition of transfer or reprogramming.--Amounts
deposited under paragraph (1) shall not be subject to transfer
or reprogramming for wildfire management or any other emergency
purposes.

(d) Acquisition of Land.--The Secretary may acquire, using funds
made available under subsection (c) or otherwise made available for
acquisition, land or an interest in land for National Forest System
purposes within the boundary of the Green Mountain National Forest.
(e) Exemption From Certain Laws.--Subtitle I of title 40, United
States Code, shall not apply to any sale or exchange of National Forest
System land under this section.

Subtitle E--Miscellaneous Provisions

SEC. 8401. [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);

[[Page 2062]]
122 STAT. 2062

(C) the wood chip index (code number PCU
3211133211135); and
(D) any other subsequent comparable index, as
established by the Bureau of Labor Statistics of the
Department of Labor and utilized by the Secretary of
Agriculture.
(2) Qualifying contract.--The term ``qualifying contract''
means a contract for the sale of timber on National Forest
System land--
(A) that was awarded during the period beginning on
July 1, 2004, and ending on December 31, 2006;
(B) for which there is unharvested volume remaining;
(C) for which, not later than 90 days after the date
of enactment of this Act, the timber purchaser makes a
written request to the Secretary for one or more of the
options described in subsection (b);
(D) that is not a salvage sale;
(E) for which the Secretary determines there is not
an urgent need to harvest due to deteriorating timber
conditions that developed after the award of the
contract; and
(F) that is not in breach or in default.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Chief of the Forest Service.

(b) Options for Qualifying Contracts.--
(1) Cancellation or rate redetermination.--Notwithstanding
any other provision of law, if the rate at which a qualifying
contract would be advertised as of the date of enactment of this
Act is at least 50 percent less than the sum of the original bid
rates for all of the species of timber that are the subject of
the qualifying contract, the Secretary may, at the sole
discretion of the Secretary--
(A) cancel the qualifying contract if the timber
purchaser--
(i) pays 30 percent of the total value of the
timber remaining in the qualifying contract based
on bid rates;
(ii) completes each contractual obligation
(including the removal of downed timber, the
completion of road work, and the completion of
erosion control work) of the timber purchaser with
respect to each unit on which harvest has begun to
a logical stopping point, as determined by the
Secretary after consultation with the timber
purchaser; and
(iii) terminates its rights under the
qualifying contract; or
(B) modify the qualifying contract to redetermine
the current contract rate of the qualifying contract to
equal the sum obtained by adding--
(i) 25 percent of the bid premium on the
qualifying contract; and
(ii) the rate at which the qualifying contract
would be advertised as of the date of enactment of
this Act.
(2) Substitution of index.--
(A) Substitution.--Notwithstanding any other
provision of law, the Secretary may, at the sole
discretion of the Secretary, substitute the Producer
Price Index specified in the qualifying contract of a
timber purchaser if the timber purchaser identifies--

[[Page 2063]]
122 STAT. 2063

(i) the products the timber purchaser intends
to produce from the timber harvested under the
qualifying contract; and
(ii) a substitute index from an authorized
Producer Price Index that more accurately
represents the predominant product identified in
clause (i) for which there is an index.
(B) Rate redetermination following substitution of
index.--If the Secretary substitutes the Producer Price
Index of a qualifying contract under subparagraph (A),
the Secretary may, at the sole discretion of the
Secretary, modify the qualifying contract to provide
for--
(i) an emergency rate redetermination under
the terms of the contract; or
(ii) a rate redetermination under paragraph
(1)(B).
(C) Limitation on market-related contract term
addition; periodic payments.--Notwithstanding any other
provision of law, if the Secretary substitutes the
Producer Price Index of a qualifying contract under
subparagraph (A), the Secretary may, at the sole
discretion of the Secretary, modify the qualifying
contract--
(i) to adjust the term in accordance with the
market-related contract term addition provision in
the qualifying contract and section 223.52 of
title 36, Code of Federal Regulations, as in
effect on the date of the adjustment, but only if
the drastic reduction criteria in such section are
met for 2 or more consecutive calendar year
quarters beginning with the calendar quarter in
which the Secretary substitutes the Producer Price
Index under subparagraph (A); and
(ii) to adjust the periodic payments required
under the contract in accordance with applicable
law and policies.
(3) Contracts using hardwood lumber index.--With respect to
a qualifying contract using the hardwood commodity index
referred to in subsection (a)(1)(B) for which the Secretary does
not substitute the Producer Price Index under paragraph (2), the
Secretary may, at the sole discretion of the Secretary--
(A) extend the contract term for a 1-year period
beginning on the current contract termination date; and
(B) adjust the periodic payments required under the
contract in accordance with applicable law and policies.

(c) Extension of Market-Related Contract Term Addition Time Limit
for Certain Contracts.--Notwithstanding any other provision of law, upon
the written request of a timber purchaser, the Secretary may, at the
sole discretion of the Secretary, modify a timber sale contract
(including a qualifying contract) awarded to the purchaser before
January 1, 2007, to adjust the term of the contract in accordance with
the market-related contract term addition provision in the contract and
section 223.52 of title 36, Code of Federal Regulations, as in effect on
the date of the modification, except that the Secretary may add no more
than 4 years to the original contract length.
(d) Effect of Options.--
(1) No surrender of claims.--Operation of this section shall
not have the effect of surrendering any claim by the United
States against any timber purchaser that arose--

[[Page 2064]]
122 STAT. 2064

(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 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:

[[Page 2065]]
122 STAT. 2065

``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.
``(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).

[[Page 2066]]
122 STAT. 2066

``(9) Indian tribe.--The term `Indian tribe' has the meaning
given the term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given the term
in section 102(a) of the Higher Education Act of 1965 (20 U.S.C.
1002(a)).
``(11) Intermediate ingredient or feedstock.--The term
`intermediate ingredient or feedstock' means a material or
compound made in whole or in significant part from biological
products, including renewable agricultural materials (including
plant, animal, and marine materials) or forestry materials, that
are subsequently used to make a more complex compound or
product.
``(12) Renewable biomass.--The term `renewable biomass'
means--
``(A) materials, pre-commercial thinnings, or
invasive species from National Forest System land and
public lands (as defined in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1702))
that--
``(i) are byproducts of preventive treatments
that are removed--
``(I) to reduce hazardous fuels;
``(II) to reduce or contain disease
or insect infestation; or
``(III) to restore ecosystem health;
``(ii) would not otherwise be used for higher-
value products; and
``(iii) are harvested in accordance with--
``(I) applicable law and land
management plans; and
``(II) the requirements for--
``(aa) old-growth
maintenance, restoration, and
management direction of
paragraphs (2), (3), and (4) of
subsection (e) of section 102 of
the Healthy Forests Restoration
Act of 2003 (16 U.S.C. 6512);
and
``(bb) large-tree retention
of subsection (f) of that
section; or
``(B) any organic matter that is available on a
renewable or recurring basis from non-Federal land or
land belonging to an Indian or Indian tribe that is held
in trust by the United States or subject to a
restriction against alienation imposed by the United
States, including--
``(i) renewable plant material, including--
``(I) feed grains;
``(II) other agricultural
commodities;
``(III) other plants and trees; and
``(IV) algae; and
``(ii) waste material, including--
``(I) crop residue;
``(II) other vegetative waste
material (including wood waste and wood
residues);
``(III) animal waste and byproducts
(including fats, oils, greases, and
manure); and
``(IV) food waste and yard waste.

[[Page 2067]]
122 STAT. 2067

``(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--
``(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--

[[Page 2068]]
122 STAT. 2068

``(i) be consistent with applicable provisions
of Federal procurement law;
``(ii) ensure that items composed of biobased
products will be purchased to the maximum extent
practicable;
``(iii) include a component to promote the
procurement program;
``(iv) provide for an annual review and
monitoring of the effectiveness of the procurement
program; and
``(v) adopt 1 of the 2 polices described in
subparagraph (D) or (E), or a policy substantially
equivalent to either of those policies.
``(D) Case-by-case policy.--
``(i) In general.--Subject to subparagraph (B)
and except as provided in clause (ii), a procuring
agency adopting the case-by-case policy shall
award a contract to the vendor offering an item
composed of the highest percentage of biobased
products practicable.
``(ii) Exception.--Subject to subparagraph
(B), an agency adopting the policy described in
clause (i) may make an award to a vendor offering
items with less than the maximum biobased products
content.
``(E) Minimum content standards.--Subject to
subparagraph (B), a procuring agency adopting the
minimum content standards policy shall establish minimum
biobased products content specifications for awarding
contracts in a manner that ensures that the biobased
products content required is consistent with this
subsection.
``(F) Certification.--After the date specified in
any applicable guidelines prepared pursuant to paragraph
(3), contracting offices shall require that vendors
certify that the biobased products to be used in the
performance of the contract will comply with the
applicable specifications or other contractual
requirements.
``(3) Guidelines.--
``(A) In general.--The Secretary, after consultation
with the Administrator, the Administrator of General
Services, and the Secretary of Commerce (acting through
the Director of the National Institute of Standards and
Technology), shall prepare, and from time to time
revise, guidelines for the use of procuring agencies in
complying with the requirements of this subsection.
``(B) Requirements.--The guidelines under this
paragraph shall--
``(i) designate those items (including
finished products) that are or can be produced
with biobased products (including biobased
products for which there is only a single product
or manufacturer in the category) that will be
subject to the preference described in paragraph
(2);
``(ii) designate those intermediate
ingredients and feedstocks that are or can be used
to produce items that will be subject to the
preference described in paragraph (2);
``(iii) automatically designate items composed
of intermediate ingredients and feedstocks
designated

[[Page 2069]]
122 STAT. 2069

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.--
``(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) [NOTE: Reports.]  Other agencies.--To assist
the Office of Federal Procurement Policy in carrying out
subparagraph (A)--
``(i) each procuring agency shall submit each
year to the Office of Federal Procurement Policy,
to the maximum extent practicable, information
concerning--

[[Page 2070]]
122 STAT. 2070

``(I) actions taken to implement
paragraph (2);
``(II) the results of the annual
review and monitoring program
established under paragraph (2)(C)(iv);
``(III) the number and dollar value
of contracts entered into during the
year that include the direct procurement
of biobased products;
``(IV) the number of service and
construction (including renovations)
contracts entered into during the year
that include language on the use of
biobased products; and
``(V) the types and dollar value of
biobased products actually used by
contractors in carrying out service and
construction (including renovations)
contracts during the previous year; and
``(ii) the General Services Administration and
the Defense Logistics Agency shall submit each
year to the Office of Federal Procurement Policy
information concerning, to the maximum extent
practicable, the types and dollar value of
biobased products purchased by procuring agencies.
``(C) Procurement subject to other law.--Any
procurement by any Federal agency that is subject to
regulations of the Administrator under section 6002 of
the Solid Waste Disposal Act (42 U.S.C. 6962) shall not
be subject to the requirements of this section to the
extent that the requirements are inconsistent with the
regulations.

``(b) Labeling.--
``(1) In general.--The Secretary, in consultation with the
Administrator, shall establish a voluntary program under which
the Secretary authorizes producers of biobased products to use
the label `USDA Certified Biobased Product'.
``(2) Eligibility criteria.--
``(A) Criteria.--
``(i) [NOTE: Deadline.]  In general.--Not
later than 90 days after the date of the enactment
of the Food, Conservation, and Energy Act of 2008
and except as provided in clause (ii), the
Secretary, in consultation with the Administrator
and representatives from small and large
businesses, academia, other Federal agencies, and
such other persons as the Secretary considers
appropriate, shall issue criteria (as of the date
of enactment of that Act) for determining which
products may qualify to receive the label under
paragraph (1).
``(ii) Exception.--Clause (i) shall not apply
to final criteria that have been issued (as of the
date of enactment of that Act) by the Secretary.
``(B) Requirements.--Criteria issued under
subparagraph (A) shall--
``(i) encourage the purchase of products with
the maximum biobased content;
``(ii) provide that the Secretary may
designate as biobased for the purposes of the
voluntary program established under this
subsection finished products that contain
significant portions of biobased materials or
components; and

[[Page 2071]]
122 STAT. 2071

``(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) [NOTE: Effective date.]  Inclusion.--Effective beginning on
the date that is 90 days after the date of enactment of the Food,
Conservation, and Energy Act of 2008, the Architect of the Capitol, the
Sergeant at Arms of the Senate, and the Chief Administrative Officer of
the House of Representatives shall consider the biobased product
designations made under this section in making procurement decisions for
the Capitol Complex.

``(f) [NOTE: Establishment.]  National Testing Center Registry.--
The Secretary shall establish a national registry of testing centers for
biobased products that will serve biobased product manufacturers.

``(g) Reports.--
``(1) In general.--Not later than 180 days after the date of
enactment of the Food, Conservation, and Energy Act of 2008 and
each year thereafter, the Secretary shall submit to Congress a
report on the implementation of this section.
``(2) Contents.--The report shall include--
``(A) a comprehensive management plan that
establishes tasks, milestones, and timelines,
organizational roles and responsibilities, and funding
allocations for fully implementing this section; and
``(B) information on the status of implementation
of--
``(i) item designations (including designation
of intermediate ingredients and feedstocks); and
``(ii) the voluntary labeling program
established under subsection (b).

``(h) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to provide mandatory
funding for biobased products testing and labeling as required
to carry out this section--
``(A) $1,000,000 for fiscal year 2008; and
``(B) $2,000,000 for each of fiscal years 2009
through 2012.
``(2) Discretionary funding.--In addition to any other funds
made available to carry out this section, there is authorized to
be appropriated to carry out this section $2,000,000 for each of
fiscal years 2009 through 2012.

[[Page 2072]]
122 STAT. 2072

``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.

``(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;

[[Page 2073]]
122 STAT. 2073

``(ii) the level of financial participation by
the applicant, including support from non-Federal
and private sources;
``(iii) whether the applicant is proposing to
use a feedstock not previously used in the
production of advanced biofuels;
``(iv) whether the applicant is proposing to
work with producer associations or cooperatives;
``(v) whether the applicant has established
that the adoption of the process proposed in the
application will have a positive impact on
resource conservation, public health, and the
environment;
``(vi) the potential for rural economic
development;
``(vii) whether the area in which the
applicant proposes to locate the biorefinery has
other similar facilities;
``(viii) whether the project can be
replicated; and
``(ix) scalability for commercial use.
``(3) Cost sharing.--
``(A) Limits.--The amount of a grant awarded for
development and construction of a biorefinery under
subsection (c)(1) shall not exceed an amount equal to 30
percent of the cost of the project.
``(B) Form of grantee share.--
``(i) In general.--The grantee share of the
cost of a project may be made in the form of cash
or material.
``(ii) Limitation.--The amount of the grantee
share that is made in the form of material shall
not exceed 15 percent of the amount of the grantee
share determined under subparagraph (A).

``(e) Loan Guarantees.--
``(1) Selection criteria.--
``(A) In general.--In approving loan guarantee
applications, the Secretary shall establish a priority
scoring system that assigns priority scores to each
application and only approve applications that exceed a
specified minimum, as determined by the Secretary.
``(B) Feasibility.--In approving a loan guarantee
application, the Secretary shall determine the technical
and economic feasibility of the project based on a
feasibility study of the project described in the
application conducted by an independent third party.
``(C) Scoring system.--In determining the priority
scoring system for loan guarantees under subsection
(c)(2), the Secretary shall consider--
``(i) whether the applicant has established a
market for the advanced biofuel and the byproducts
produced;
``(ii) whether the area in which the applicant
proposes to place the biorefinery has other
similar facilities;
``(iii) whether the applicant is proposing to
use a feedstock not previously used in the
production of advanced biofuels;
``(iv) whether the applicant is proposing to
work with producer associations or cooperatives;

[[Page 2074]]
122 STAT. 2074

``(v) the level of financial participation by
the applicant, including support from non-Federal
and private sources;
``(vi) whether the applicant has established
that the adoption of the process proposed in the
application will have a positive impact on
resource conservation, public health, and the
environment;
``(vii) whether the applicant can establish
that if adopted, the biofuels production
technology proposed in the application will not
have any significant negative impacts on existing
manufacturing plants or other facilities that use
similar feedstocks;
``(viii) the potential for rural economic
development;
``(ix) the level of local ownership proposed
in the application; and
``(x) whether the project can be replicated.
``(2) Limitations.--
``(A) Maximum amount of loan guaranteed.--The
principal amount of a loan guaranteed under subsection
(c)(2) may not exceed $250,000,000.
``(B) Maximum percentage of loan guaranteed.--
``(i) In general.--Except as otherwise
provided in this subparagraph, a loan guaranteed
under subsection (c)(2) shall be in an amount not
to exceed 80 percent of the project costs, as
determined by the Secretary.
``(ii) Other direct federal funding.--The
amount of a loan guaranteed for a project under
subsection (c)(2) shall be reduced by the amount
of other direct Federal funding that the eligible
entity receives for the same project.
``(iii) Authority to guarantee the loan.--The
Secretary may guarantee up to 90 percent of the
principal and interest due on a loan guaranteed
under subsection (c)(2).
``(C) Loan guarantee fund distribution.--Of the
funds made available for loan guarantees for a fiscal
year under subsection (h), 50 percent of the funds shall
be reserved for obligation during the second half of the
fiscal year.

``(f) Consultation.--In carrying out this section, the Secretary
shall consult with the Secretary of Energy.
``(g) Condition on Provision of Assistance.--
``(1) In general.--As a condition of receiving a grant or
loan guarantee under this section, an eligible entity shall
ensure that all laborers and mechanics employed by contractors
or subcontractors in the performance of construction work
financed, in whole or in part, with the grant or loan guarantee,
as the case may be, shall be paid wages at rates not less than
those prevailing on similar construction in the locality, as
determined by the Secretary of Labor in accordance with sections
3141 through 3144, 3146, and 3147 of title 40, United States
Code.
``(2) Authority and functions.--The Secretary of Labor shall
have, with respect to the labor standards described in

[[Page 2075]]
122 STAT. 2075

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 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.

[[Page 2076]]
122 STAT. 2076

``(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
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) [NOTE: Grants.]  Establishment.--The Secretary shall, under
such terms and conditions as the Secretary determines to be appropriate,
make competitive grants to eligible entities to educate governmental and
private entities that operate vehicle fleets, other interested entities
(as determined by the Secretary), and the public about the benefits of
biodiesel fuel use.

``(b) Eligible Entities.--To receive a grant under subsection (b),
an entity shall--
``(1) be a nonprofit organization or institution of higher
education;
``(2) have demonstrated knowledge of biodiesel fuel
production, use, or distribution; and

[[Page 2077]]
122 STAT. 2077

``(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) [NOTE: Grants.]  In general.--The Secretary shall
make competitive grants to eligible entities to provide
assistance to agricultural producers and rural small
businesses--
``(A) to become more energy efficient; and
``(B) to use renewable energy technologies and
resources.
``(2) Eligible entities.--An eligible entity under this
subsection is--
``(A) a unit of State, tribal, or local government;
``(B) a land-grant college or university or other
institution of higher education;
``(C) a rural electric cooperative or public power
entity; and
``(D) any other similar entity, as determined by the
Secretary.
``(3) Selection criteria.--In reviewing applications of
eligible entities to receive grants under paragraph (1), the
Secretary shall consider--
``(A) the ability and expertise of the eligible
entity in providing professional energy audits and
renewable energy assessments;
``(B) the geographic scope of the program proposed
by the eligible entity in relation to the identified
need;
``(C) the number of agricultural producers and rural
small businesses to be assisted by the program;
``(D) the potential of the proposed program to
produce energy savings and environmental benefits;
``(E) the plan of the eligible entity for performing
outreach and providing information and assistance to
agricultural producers and rural small businesses on the
benefits of energy efficiency and renewable energy
development; and
``(F) the ability of the eligible entity to leverage
other sources of funding.
``(4) Use of grant funds.--A recipient of a grant under
paragraph (1) shall use the grant funds to assist agricultural
producers and rural small businesses by--

[[Page 2078]]
122 STAT. 2078

``(A) conducting and promoting energy audits; and
``(B) providing recommendations and information on
how--
``(i) to improve the energy efficiency of the
operations of the agricultural producers and rural
small businesses; and
``(ii) to use renewable energy technologies
and resources in the operations.
``(5) Limitation.--Grant recipients may not use more than 5
percent of a grant for administrative expenses.
``(6) Cost sharing.--A recipient of a grant under paragraph
(1) that conducts an energy audit for an agricultural producer
or rural small business under paragraph (4) shall require that,
as a condition of the energy audit, the agricultural producer or
rural small business pay at least 25 percent of the cost of the
energy audit, which shall be retained by the eligible entity for
the cost of the energy audit.

``(c) Financial Assistance for Energy Efficiency Improvements and
Renewable Energy Systems.--
``(1) In general.--In addition to any similar authority, the
Secretary shall provide loan guarantees and grants to
agricultural producers and rural small businesses--
``(A) to purchase renewable energy systems,
including systems that may be used to produce and sell
electricity; and
``(B) to make energy efficiency improvements.
``(2) Award considerations.--In determining the amount of a
loan guarantee or grant provided under this section, the
Secretary shall take into consideration, as applicable--
``(A) the type of renewable energy system to be
purchased;
``(B) the estimated quantity of energy to be
generated by the renewable energy system;
``(C) the expected environmental benefits of the
renewable energy system;
``(D) the quantity of energy savings expected to be
derived from the activity, as demonstrated by an energy
audit;
``(E) the estimated period of time for the energy
savings generated by the activity to equal the cost of
the activity;
``(F) the expected energy efficiency of the
renewable energy system; and
``(G) other appropriate factors.
``(3) Feasibility studies.--
``(A) In general.--The Secretary may provide
assistance in the form of grants to an agricultural
producer or rural small business to conduct a
feasibility study for a project for which assistance may
be provided under this subsection.
``(B) Limitation.--The Secretary shall use not more
than 10 percent of the funds made available to carry out
this subsection to provide assistance described in
subparagraph (A).
``(C) Avoidance of duplicative assistance.--An
entity shall be ineligible to receive assistance to
carry out a feasibility study for a project under this
paragraph

[[Page 2079]]
122 STAT. 2079

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 (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

[[Page 2080]]
122 STAT. 2080

``(B) a commercial or industrial product (including
animal feed and electric power) derived in connection
with the conversion of biomass to fuel.
``(2) Demonstration.--The term `demonstration' means
demonstration of technology in a pilot plant or semi-works scale
facility, including a plant or facility located on a farm.
``(3) Initiative.--The term `Initiative' means the Biomass
Research and Development Initiative established under subsection
(e).

``(b) Cooperation and Coordination in Biomass Research and
Development.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy shall coordinate policies and procedures
that promote research and development regarding the production
of biofuels and biobased products.
``(2) Points of contact.--To coordinate research and
development programs and activities relating to biofuels and
biobased products that are carried out by their respective
departments--
``(A) the Secretary of Agriculture shall designate,
as the point of contact for the Department of
Agriculture, an officer of the Department of Agriculture
appointed by the President to a position in the
Department before the date of the designation, by and
with the advice and consent of the Senate; and
``(B) the Secretary of Energy shall designate, as
the point of contact for the Department of Energy, an
officer of the Department of Energy appointed by the
President to a position in the Department before the
date of the designation, by and with the advice and
consent of the Senate.

``(c) Biomass Research and Development Board.--
``(1) Establishment.--There is established the Biomass
Research and Development Board to carry out the duties described
in paragraph (3).
``(2) Membership.--The Board shall consist of--
``(A) the point of contacts of the Department of
Energy and the Department of Agriculture, who shall
serve as cochairpersons of the Board;
``(B) a senior officer of each of the Department of
the Interior, the Environmental Protection Agency, the
National Science Foundation, and the Office of Science
and Technology Policy, each of whom shall have a rank
that is equivalent to the rank of the points of contact;
and
``(C) at the option of the Secretary of Agriculture
and the Secretary of Energy, other members appointed by
the Secretaries (after consultation with the Board).
``(3) Duties.--The Board shall--
``(A) coordinate research and development activities
relating to biofuels and biobased products--
``(i) between the Department of Agriculture
and the Department of Energy; and
``(ii) with other departments and agencies of
the Federal Government;
``(B) provide recommendations to the points of
contact concerning administration of this title;

[[Page 2081]]
122 STAT. 2081

``(C) ensure that--
``(i) solicitations are open and competitive
with awards made annually; and
``(ii) objectives and evaluation criteria of
the solicitations are clearly stated and minimally
prescriptive, with no areas of special interest;
and
``(D) ensure that the panel of scientific and
technical peers assembled under subsection (e) to review
proposals is composed predominantly of independent
experts selected from outside the Departments of
Agriculture and Energy.
``(4) Funding.--Each agency represented on the Board is
encouraged to provide funds for any purpose under this section.
``(5) Meetings.--The Board shall meet at least quarterly.

``(d) Biomass Research and Development Technical Advisory
Committee.--
``(1) Establishment.--There is established the Biomass
Research and Development Technical Advisory Committee to carry
out the duties described in paragraph (3).
``(2) Membership.--
``(A) In general.--The Advisory Committee shall
consist of--
``(i) an individual affiliated with the
biofuels industry;
``(ii) an individual affiliated with the
biobased industrial and commercial products
industry;
``(iii) an individual affiliated with an
institution of higher education who has expertise
in biofuels and biobased products;
``(iv) 2 prominent engineers or scientists
from government or academia who have expertise in
biofuels and biobased products;
``(v) an individual affiliated with a
commodity trade association;
``(vi) 2 individuals affiliated with
environmental or conservation organizations;
``(vii) an individual associated with State
government who has expertise in biofuels and
biobased products;
``(viii) an individual with expertise in
energy and environmental analysis;
``(ix) an individual with expertise in the
economics of biofuels and biobased products;
``(x) an individual with expertise in
agricultural economics;
``(xi) an individual with expertise in plant
biology and biomass feedstock development;
``(xii) an individual with expertise in
agronomy, crop science, or soil science; and
``(xiii) at the option of the points of
contact, other members.
``(B) Appointment.--The members of the Advisory
Committee shall be appointed by the points of contact.
``(3) Duties.--The Advisory Committee shall--
``(A) advise the points of contact with respect to
the Initiative; and
``(B) evaluate and make recommendations in writing
to the Board regarding whether--

[[Page 2082]]
122 STAT. 2082

``(i) funds authorized for the Initiative are
distributed and used in a manner that is
consistent with the objectives, purposes, and
considerations of the Initiative;
``(ii) solicitations are open and competitive
with awards made annually;
``(iii) objectives and evaluation criteria of
the solicitations are clearly stated and minimally
prescriptive, with no areas of special interest;
``(iv) the points of contact are funding
proposals under this title that are selected on
the basis of merit, as determined by an
independent panel of scientific and technical
peers predominantly from outside the Departments
of Agriculture and Energy; and
``(v) activities under this title are carried
out in accordance with this title.
``(4) Coordination.--To avoid duplication of effort, the
Advisory Committee shall coordinate its activities with those of
other Federal advisory committees working in related areas.
``(5) Meetings.--The Advisory Committee shall meet at least
quarterly.
``(6) Terms.--Members of the Advisory Committee shall be
appointed for a term of 3 years.

``(e) Biomass Research and Development Initiative.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy, acting through their respective points of
contact and in consultation with the Board, shall establish and
carry out a Biomass Research and Development Initiative under
which competitively awarded grants, contracts, and financial
assistance are provided to, or entered into with, eligible
entities to carry out research on and development and
demonstration of--
``(A) biofuels and biobased products; and
``(B) the methods, practices, and technologies, for
the production of biofuels and biobased products.
``(2) Objectives.--The objectives of the Initiative are to
develop--
``(A) technologies and processes necessary for
abundant commercial production of biofuels at prices
competitive with fossil fuels;
``(B) high-value biobased products--
``(i) to enhance the economic viability of
biofuels and power;
``(ii) to serve as substitutes for petroleum-
based feedstocks and products; and
``(iii) to enhance the value of coproducts
produced using the technologies and processes; and
``(C) a diversity of economically and
environmentally sustainable domestic sources of
renewable biomass for conversion to biofuels, bioenergy,
and biobased products.
``(3) Technical areas.--The Secretary of Agriculture and the
Secretary of Energy, in consultation with the Administrator of
the Environmental Protection Agency and heads of other
appropriate departments and agencies (referred to in this
subsection as the `Secretaries'), shall direct the Initiative in
the 3 following areas:

[[Page 2083]]
122 STAT. 2083

``(A) Feedstocks development.--Research,
development, and demonstration activities regarding
feedstocks and feedstock logistics (including the
harvest, handling, transport, preprocessing, and
storage) relevant to production of raw materials for
conversion to biofuels and biobased products.
``(B) Biofuels and biobased products development.--
Research, development, and demonstration activities to
support--
``(i) the development of diverse cost-
effective technologies for the use of cellulosic
biomass in the production of biofuels and biobased
products; and
``(ii) product diversification through
technologies relevant to production of a range of
biobased products (including chemicals, animal
feeds, and cogenerated power) that potentially can
increase the feasibility of fuel production in a
biorefinery.
``(C) Biofuels development analysis.--
``(i) Strategic guidance.--The development of
analysis that provides strategic guidance for the
application of renewable biomass technologies to
improve sustainability and environmental quality,
cost effectiveness, security, and rural economic
development.
``(ii) Energy and environmental impact.--
Development of systematic evaluations of the
impact of expanded biofuel production on the
environment (including forest land) and on the
food supply for humans and animals, including the
improvement and development of tools for life
cycle analysis of current and potential biofuels.
``(iii) Assessment of federal land.--
Assessments of the potential of Federal land
resources to increase the production of feedstocks
for biofuels and biobased products, consistent
with the integrity of soil and water resources and
with other environmental considerations.
``(4) Additional considerations.--Within the technical areas
described in paragraph (3), the Secretaries shall support
research and development--
``(A) to create continuously expanding opportunities
for participants in existing biofuels production by
seeking synergies and continuity with current
technologies and practices;
``(B) to maximize the environmental, economic, and
social benefits of production of biofuels and derived
biobased products on a large scale; and
``(C) to facilitate small-scale production and local
and on-farm use of biofuels, including the development
of small-scale gasification technologies for production
of biofuel from cellulosic feedstocks.
``(5) Eligibility.--To be eligible for a grant, contract, or
assistance under this section, an applicant shall be--
``(A) an institution of higher education;
``(B) a National Laboratory;
``(C) a Federal research agency;
``(D) a State research agency;
``(E) a private sector entity;

[[Page 2084]]
122 STAT. 2084

``(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 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

[[Page 2085]]
122 STAT. 2085

are necessary to enable the Board and the Advisory Committee to
carry out their duties under this section.
``(2) Other agencies.--The heads of the agencies referred to
in subsection (c)(2)(B), and the other members of the Board
appointed under subsection (c)(2)(C), are encouraged to provide
administrative support and funds of their respective agencies to
the Board and the Advisory Committee.
``(3) Limitation.--Not more than 4 percent of the amount
made available for each fiscal year under subsection (h) may be
used to pay the administrative costs of carrying out this
section.

``(g) Reports.--For each fiscal year for which funds are made
available to carry out this section, the Secretary of Energy and the
Secretary of Agriculture shall jointly submit to Congress a detailed
report on--
``(1) the status and progress of the Initiative, including a
report from the Advisory Committee on whether funds appropriated
for the Initiative have been distributed and used in a manner
that is consistent with the objectives and requirements of this
section;
``(2) the general status of cooperation and research and
development efforts carried out at each agency with respect to
biofuels and biobased products; and
``(3) the plans of the Secretary of Energy and the Secretary
of Agriculture for addressing concerns raised in the report,
including concerns raised by the Advisory Committee.

``(h) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary of Agriculture shall use to
carry out this section, to remain available until expended--
``(A) $20,000,000 for fiscal year 2009;
``(B) $28,000,000 for fiscal year 2010;
``(C) $30,000,000 for fiscal year 2011; and
``(D) $40,000,000 for fiscal year 2012.
``(2) Discretionary funding.--In addition to any other funds
made available to carry out this section, there is authorized to
be appropriated to carry out this section $35,000,000 for each
of fiscal years 2009 through 2012.
``SEC. 9009. [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

[[Page 2086]]
122 STAT. 2086

for the purpose of enabling eligible rural communities to substantially
increase the energy self-sufficiency of the eligible rural communities.
``(c) Grant Assistance.--
``(1) In general.--The Secretary shall make grants available
under the Initiative to eligible rural communities to carry out
an activity described in paragraph (2).
``(2) Use of grant funds.--An eligible rural community may
use a grant--
``(A) to conduct an energy assessment that assesses
the total energy use of all energy users in the eligible
rural community;
``(B) to formulate and analyze ideas for reducing
energy usage by the eligible rural community from
conventional sources; and
``(C) to develop and install an integrated renewable
energy system.
``(3) Grant selection.--
``(A) Application.--To be considered for a grant, an
eligible rural community shall submit an application to
the Secretary that describes the ways in which the
community would use the grant to carry out an activity
described in paragraph (2).
``(B) Preference.--The Secretary shall give
preference to those applications that propose to carry
out an activity in coordination with--
``(i) institutions of higher education or
nonprofit foundations of institutions of higher
education;
``(ii) Federal, State, or local government
agencies;
``(iii) public or private power generation
entities; or
``(iv) government entities with responsibility
for water or natural resources.
``(4) Report.--An eligible rural community receiving a grant
under the Initiative shall submit to the Secretary a report on
the project of the eligible rural community.
``(5) Cost-sharing.--The amount of a grant under the
Initiative shall not exceed 50 percent of the cost of the
activities described in the application.

``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2009 through 2012.
``SEC. 9010. [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.

[[Page 2087]]
122 STAT. 2087

``(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) [NOTE: Deadlines.]  Notice.--
``(A) In general.--As soon as practicable after the
date of enactment of the Food, Conservation, and Energy
Act of 2008 and each September 1 thereafter through
September 1, 2012, the Secretary shall provide notice to
eligible entities and bioenergy producers of the
quantity of eligible commodities that shall be made
available for purchase and sale for the crop year
following the date of the notice under this section.
``(B) Reestimates.--Not later than the January 1,
April 1, and July 1 of the calendar year following the
date of a notice under subparagraph (A), the Secretary
shall reestimate the quantity of eligible commodities
determined under subparagraph (A), and provide notice
and make purchases and sales based on such reestimates.
``(3) Commodity credit corporation inventory.--
``(A) Dispositions.--
``(i) Bioenergy and generally.--Except as
provided in clause (ii), to the extent that an
eligible commodity is owned and held in inventory
by the Commodity Credit Corporation (accumulated
pursuant to the program authorized under section
156 of the Federal Agriculture Improvement and
Reform Act (7 U.S.C. 7272)), the Secretary shall--
``(I) sell the eligible commodity to
bioenergy producers under this section
consistent with paragraph (1)(C);

[[Page 2088]]
122 STAT. 2088

``(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 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) [NOTE: Deadline.]  Special transfer
rule.--If the Secretary makes a sale and purchase
referred to in clause (i), the Secretary shall
ensure that the bioenergy producer that purchased
eligible commodities takes possession

[[Page 2089]]
122 STAT. 2089

of such commodities within 30 calendar days of the
date the Commodity Credit Corporation purchases
the eligible commodities.
``(5) [NOTE: Sugar.]  Relation to other laws.--If sugar
that is subject to a marketing allotment under part VII of
subtitle B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359aa et seq.) is the subject of a payment under
this section, the sugar shall be considered marketed and shall
count against a processor's allocation of an allotment under
such part, as applicable.
``(6) Funding.--The Secretary shall use the funds,
facilities, and authorities of the Commodity Credit Corporation,
including the use of such sums as are necessary, to carry out
this section.
``SEC. 9011. [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--
``(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;

[[Page 2090]]
122 STAT. 2090

``(iii) land enrolled in the conservation
reserve program established under subchapter B of
chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831 et seq.);
``(iv) land enrolled in the wetlands reserve
program established under subchapter C of chapter
1 of subtitle D of title XII of that Act (16
U.S.C. 3837 et seq.); or
``(v) land enrolled in the grassland reserve
program established under subchapter D of chapter
2 of subtitle D of title XII of that Act (16
U.S.C. 3838n et seq.).
``(6) Eligible material.--
``(A) In general.--The term `eligible material'
means renewable biomass.
``(B) Exclusions.--The term `eligible material' does
not include--
``(i) any crop that is eligible to receive
payments under title I of the Food, Conservation,
and Energy Act of 2008 or an amendment made by
that title;
``(ii) animal waste and byproducts (including
fats, oils, greases, and manure);
``(iii) food waste and yard waste; or
``(iv) algae.
``(7) Producer.--The term `producer' means an owner or
operator of contract acreage that is physically located within a
BCAP project area.
``(8) Project sponsor.--The term `project sponsor' means--
``(A) a group of producers; or
``(B) a biomass conversion facility.

``(b) Establishment and Purpose.--The Secretary shall establish and
administer a Biomass Crop Assistance Program to--
``(1) support the establishment and production of eligible
crops for conversion to bioenergy in selected BCAP project
areas; and
``(2) assist agricultural and forest land owners and
operators with collection, harvest, storage, and transportation
of eligible material for use in a biomass conversion facility.

``(c) BCAP Project Area.--
``(1) In general.--The Secretary shall provide financial
assistance to producers of eligible crops in a BCAP project
area.
``(2) Selection of project areas.--
``(A) In general.--To be considered for selection as
a BCAP project area, a project sponsor shall submit to
the Secretary a proposal that includes, at a minimum--
``(i) a description of the eligible land and
eligible crops of each producer that will
participate in the proposed BCAP project area;
``(ii) a letter of commitment from a biomass
conversion facility that the facility will use the
eligible crops intended to be produced in the
proposed BCAP project area;
``(iii) evidence that the biomass conversion
facility has sufficient equity available, as
determined by the Secretary, if the biomass
conversion facility is not operational at the time
the proposal is submitted to the Secretary; and

[[Page 2091]]
122 STAT. 2091

``(iv) any other appropriate information about
the biomass conversion facility or proposed
biomass conversion facility that gives the
Secretary a reasonable assurance that the plant
will be in operation by the time that the eligible
crops are ready for harvest.
``(B) BCAP project area selection criteria.--In
selecting BCAP project areas, the Secretary shall
consider--
``(i) the volume of the eligible crops
proposed to be produced in the proposed BCAP
project area and the probability that such crops
will be used for the purposes of the BCAP;
``(ii) the volume of renewable biomass
projected to be available from sources other than
the eligible crops grown on contract acres;
``(iii) the anticipated economic impact in the
proposed BCAP project area;
``(iv) the opportunity for producers and local
investors to participate in the ownership of the
biomass conversion facility in the proposed BCAP
project area;
``(v) the participation rate by--
``(I) beginning farmers or ranchers
(as defined in accordance with section
343(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C.
1991(a))); or
``(II) socially disadvantaged
farmers or ranchers (as defined in
section 2501(e) of the Food,
Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279(e)));
``(vi) the impact on soil, water, and related
resources;
``(vii) the variety in biomass production
approaches within a project area, including (as
appropriate)--
``(I) agronomic conditions;
``(II) harvest and postharvest
practices; and
``(III) monoculture and polyculture
crop mixes;
``(viii) the range of eligible crops among
project areas; and
``(ix) any additional information, as
determined by the Secretary.
``(3) Contract.--
``(A) In general.--On approval of a BCAP project
area by the Secretary, each producer in the BCAP project
area shall enter into a contract directly with the
Secretary.
``(B) Minimum terms.--At a minimum, contracts shall
include terms that cover--
``(i) an agreement to make available to the
Secretary, or to an institution of higher
education or other entity designated by the
Secretary, such information as the Secretary
considers to be appropriate to promote the
production of eligible crops and the development
of biomass conversion technology;
``(ii) compliance with the highly erodible
land conservation requirements of subtitle B of
title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and the wetland conservation
requirements of subtitle C of title XII of that
Act (16 U.S.C. 3821 et seq.);

[[Page 2092]]
122 STAT. 2092

``(iii) the implementation of (as determined
by the Secretary)--
``(I) a conservation plan; or
``(II) a forest stewardship plan or
an equivalent plan; and
``(iv) any additional requirements the
Secretary considers appropriate.
``(C) Duration.--A contract under this subsection
shall have a term of up to--
``(i) 5 years for annual and perennial crops;
or
``(ii) 15 years for woody biomass.
``(4) Relationship to other programs.--In carrying out this
subsection, the Secretary shall provide for the preservation of
cropland base and yield history applicable to the land enrolled
in a BCAP contract.
``(5) Payments.--
``(A) In general.--The Secretary shall make
establishment and annual payments directly to producers
to support the establishment and production of eligible
crops on contract acreage.
``(B) Amount of establishment payments.--The amount
of an establishment payment under this subsection shall
be up to 75 percent of the costs of establishing an
eligible perennial crop covered by the contract,
including--
``(i) the cost of seeds and stock for
perennials;
``(ii) the cost of planting the perennial
crop, as determined by the Secretary; and
``(iii) in the case of nonindustrial private
forestland, the costs of site preparation and tree
planting.
``(C) Amount of annual payments.--
``(i) In general.--Subject to clause (ii), the
amount of an annual payment under this subsection
shall be determined by the Secretary.
``(ii) Reduction.--The Secretary shall reduce
an annual payment by an amount determined to be
appropriate by the Secretary, if--
``(I) an eligible crop is used for
purposes other than the production of
energy at the biomass conversion
facility;
``(II) an eligible crop is delivered
to the biomass conversion facility;
``(III) the producer receives a
payment under subsection (d);
``(IV) the producer violates a term
of the contract; or
``(V) there are such other
circumstances, as determined by the
Secretary to be necessary to carry out
this section.

``(d) Assistance With Collection, Harvest, Storage, and
Transportation.--
``(1) In general.--The Secretary shall make a payment for
the delivery of eligible material to a biomass conversion
facility to--
``(A) a producer of an eligible crop that is
produced on BCAP contract acreage; or
``(B) a person with the right to collect or harvest
eligible material.

[[Page 2093]]
122 STAT. 2093

``(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.
``(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.

[[Page 2094]]
122 STAT. 2094

``(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;
``(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.''.

[[Page 2095]]
122 STAT. 2095

(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.
(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);

[[Page 2096]]
122 STAT. 2096

(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) [NOTE: Deadline.]  In General.--Not later than 1 year after
the date of receipt of appropriations to carry out this section, the
Secretary shall--
(1) conduct a study to assess the current state of knowledge
regarding the potential for the production of fertilizer from
renewable energy sources in rural areas, including--
(A) identification of the critical challenges to
commercialization of rural production of nitrogen and
phosphorus-based fertilizer from renewables;
(B) the most promising processes and technologies
for renewable fertilizer production;
(C) the potential cost-competitiveness of renewable
fertilizer; and
(D) the potential impacts of renewable fertilizer on
fossil fuel use and the environment; and
(2) [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

[[Page 2097]]
122 STAT. 2097

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) [NOTE: Deadline.]  Submission of Results.--Not later than 18
months after the date of the enactment of this Act, the Secretary shall
submit to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report on the results of the evaluation.
SEC. 10102. QUALITY REQUIREMENTS FOR CLEMENTINES.

Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 608e-
1(a)), reenacted with amendments by the Agricultural Marketing Agreement
Act of 1937, is amended in the matter preceding the first proviso in the
first sentence by inserting ``clementines,'' after ``nectarines,''.
SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRICULTURE.

Section 2(a) of the Census of Agriculture Act of 1997 (7 U.S.C.
2204g(a)) is amended--
(1) by striking ``In 1998'' and inserting the following:
``(1) In general.--In 1998''; and
(2) by adding at the end the following:
``(2) Inclusion of specialty crops.--Effective beginning
with the census of agriculture required to be conducted in 2008,
the Secretary shall conduct as part of each census of
agriculture a census of specialty crops (as that term is defined
in section 3 of the Specialty Crops Competitiveness Act of 2004
(7 U.S.C. 1621 note; Public Law 108-465)).''.
SEC. 10104. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER
INFORMATION.

(a) Regions and Members.--Section 1925(b)(2) of the Mushroom
Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C.
6104(b)(2)) is amended--
(1) in subparagraph (B), by striking ``4 regions'' and
inserting ``3 regions'';
(2) in subparagraph (D), by striking ``35,000,000 pounds''
and inserting ``50,000,000 pounds''; and

[[Page 2098]]
122 STAT. 2098

(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--
(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'';

[[Page 2099]]
122 STAT. 2099

(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.

(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) [NOTE: Procedures.]  In General.--The Secretary shall initiate
procedures under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.),
reenacted with amendments by the Agricultural Marketing Agreement Act of
1937, to determine whether it would be appropriate to establish a
Federal marketing order for Hass avocados relating to grades and
standards and for other purposes under that Act.

(b) Expedited Procedures.--
(1) Proposal for an order.--An organization of domestic
avocado producers in existence on the date of enactment of this
Act may request the issuance of, and submit to the Secretary a
proposal for, an order described in subsection (a).
(2) [NOTE: Deadline.]  Publication of proposal.--Not later
than 60 days after the date on which the Secretary receives a
proposed order under paragraph (1), the Secretary shall initiate
procedures described in subsection (a) to determine whether the
proposed order should proceed.

[[Page 2100]]
122 STAT. 2100

(c) Effective Date.--Any order issued under this section shall
become effective not later than 15 months after the date on which the
Secretary initiates procedures under the Agricultural Adjustment Act (7
U.S.C. 601 et seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937.
SEC. 10109. SPECIALTY CROP BLOCK GRANTS.

(a) Definition of Specialty Crop.--Section 3(1) of the Specialty
Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621
note) is amended by inserting ``horticulture and'' before ``nursery''.
(b) Definition of State.--Section 3(2) of the Specialty Crops
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 note) is
amended by striking ``and the Commonwealth of Puerto Rico'' and
inserting ``the Commonwealth of Puerto Rico, Guam, American Samoa, the
United States Virgin Islands, and the Commonwealth of the Northern
Mariana Islands''.
(c) Specialty Crop Block Grants.--Section 101 of the Specialty Crops
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 note) is
amended--
(1) in subsection (a)--
(A) by striking ``Subject to the appropriation of
funds to carry out this section'' and inserting ``Using
the funds made available under subsection (j)''; and
(B) by striking ``2009'' and inserting ``2012'';
(2) in subsection (b), by striking ``appropriated pursuant
to the authorization of appropriations in subsection (i)'' and
inserting ``made available under subsection (j)'';
(3) by striking subsection (c) and inserting the following:

``(c) Minimum Grant Amount.--Notwithstanding subsection (b), each
State shall receive a grant under this section for each fiscal year in
an amount that is at least equal to the higher of--
``(1) $100,000; or
``(2) \1/3\ of 1 percent of the total amount of funding made
available to carry out this section for the fiscal year.''; and
(4) by striking subsection (i) and inserting the following:

``(i) Reallocation.--
``(1) In general.--The Secretary shall reallocate to other
States in accordance with paragraph (2) any amounts made
available for a fiscal year under this section that are not
obligated or expended by a date during that fiscal year
determined by the Secretary.
``(2) Pro rata allocation.--The Secretary shall allocate
funds described in paragraph (1) pro rata to the remaining
States that applied during the specified grant application
period.
``(3) Use of reallocated funds.--Funds allocated to a State
under this subsection shall be used by the State only to carry
out projects that were previously approved in the State plan of
the State.

``(j) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary of Agriculture shall make grants under this section,
using--
``(1) $10,000,000 for fiscal year 2008;
``(2) $49,000,000 for fiscal year 2009; and

[[Page 2101]]
122 STAT. 2101

``(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
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

[[Page 2102]]
122 STAT. 2102

under the cooperative agreement are based on sound
scientific data or thorough risk assessments; and
``(iii) the means of identifying pathways of
pest introductions.
``(5) Use of funds.--
``(A) Plant pest detection and surveillance
activities.--A State department of agriculture that
receives funds under this subsection shall use the funds
to carry out early plant pest detection and surveillance
activities approved by the Secretary to prevent the
introduction or spread of a plant pest.
``(B) Subagreements.--Nothing in this subsection
prevents a State department of agriculture from using
funds received under paragraph (4) to enter into
subagreements with political subdivisions of the State
that have legal responsibilities relating to
agricultural plant pest and disease surveillance.
``(C) Non-federal share.--The non-Federal share of
the cost of carrying out a cooperative agreement under
this section may be provided in-kind, including through
provision of such indirect costs of the cooperative
agreement as the Secretary considers to be appropriate.
``(D) Ability to provide funds.--The Secretary shall
not take the ability to provide non-Federal costs to
carry out a cooperative agreement entered into under
subparagraph (A) into consideration when deciding
whether to enter into a cooperative agreement with a
State department of agriculture.
``(6) Special funding considerations.--The Secretary shall
provide funds to a State department of agriculture if the
Secretary determines that--
``(A) the State department of agriculture is in a
State that has a high risk of being affected by 1 or
more plant pests or diseases, taking into
consideration--
``(i) the number of international ports of
entry in the State;
``(ii) the volume of international passenger
and cargo entry into the State;
``(iii) the geographic location of the State
and if the location or types of agricultural
commodities produced in the State are conducive to
agricultural pest and disease establishment due to
the climate, crop diversity, or natural resources
(including unique plant species) of the State; and
``(iv) whether the Secretary has determined
that an agricultural pest or disease in the State
is a Federal concern ; and
``(B) the early plant pest detection and
surveillance activities supported with the funds will
likely--
``(i) prevent the introduction and
establishment of plant pests; and
``(ii) provide a comprehensive approach to
compliment Federal detection efforts.
``(7) Reporting requirement.--Not later than 90 days after
the date of completion of an early plant pest detection and
surveillance activity conducted by a State department of
agriculture using funds provided under this section, the State

[[Page 2103]]
122 STAT. 2103

department of agriculture shall submit to the Secretary a report
that describes the purposes and results of the activities.

``(c) Threat Identification and Mitigation Program.--
``(1) Establishment.--The Secretary shall establish a threat
identification and mitigation program to determine and address
threats to the domestic production of crops.
``(2) Requirements.--In conducting the program established
under paragraph (1), the Secretary shall--
``(A) develop risk assessments of the potential
threat to the agricultural industry of the United States
from foreign sources;
``(B) collaborate with the National Plant Board; and
``(C) implement action plans for high consequence
plant pest and diseases to assist in preventing the
introduction and widespread dissemination of new plant
pest and disease threats in the United States.
``(3) Reports.--Not later than 1 year after the date of
enactment of this paragraph, and annually thereafter, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report on the action
plans described in paragraph (2), including an accounting of
funds expended on the action plans.

``(d) Specialty Crop Certification and Risk Management Systems.--The
Secretary shall provide funds and technical assistance to specialty crop
growers, organizations representing specialty crop growers, and State
and local agencies working with specialty crop growers and organizations
for the development and implementation of--
``(1) audit-based certification systems, such as best
management practices--
``(A) to address plant pests; and
``(B) to mitigate the risk of plant pests in the
movement of plants and plant products; and
``(2) nursery plant pest risk management systems, in
collaboration with the nursery industry, research institutions,
and other appropriate entities--
``(A) to enable growers to identify and prioritize
nursery plant pests and diseases of regulatory
significance;
``(B) to prevent the introduction, establishment,
and spread of those plant pests and diseases; and
``(C) to reduce the risk of and mitigate those plant
pests and diseases.

``(e) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall make available to carry out this section--
``(1) $12,000,000 for fiscal year 2009;
``(2) $45,000,000 for fiscal year 2010;
``(3) $50,000,000 for fiscal year 2011; and
``(4) $50,000,000 for fiscal year 2012 and each fiscal year
thereafter.''.

(b) Congressional Disapproval.--Congress disapproves the rule
submitted by the Secretary of Agriculture relating to cost-sharing for
animal and plant health emergency programs (68 Fed. Reg. 40541 (2003)),
and such rule shall have no force or effect.

[[Page 2104]]
122 STAT. 2104

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''.
(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''.

[[Page 2105]]
122 STAT. 2105

(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.

(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.

[[Page 2106]]
122 STAT. 2106

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 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

[[Page 2107]]
122 STAT. 2107

(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) [NOTE: Deadlines.]  Requirements relating to
loan repayment schedule.--A loan repayment schedule
established under subparagraph (A) shall require the
eligible unit of local government--
(i) to repay to the Secretary of the Treasury,
not later than 1 year after the date on which the
eligible unit of local government receives a loan
under paragraph (1), and semiannually thereafter,
an amount equal to the quotient obtained by
dividing--
(I) the principal amount of the loan
(including interest); by
(II) the total quantity of payments
that the eligible unit of local
government is required to make during
the repayment period of the loan; and
(ii) not later than 20 years after the date on
which the eligible unit of local government
receives a loan under paragraph (1), to complete
repayment to the Secretary of the Treasury of the
loan made under this section (including interest).

(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Fund such sums as are necessary to carry out this
section.
SEC. 10206. COOPERATIVE AGREEMENTS RELATING TO PLANT PEST AND
DISEASE PREVENTION ACTIVITIES.

Section 431 of the Plant Protection Act (7 U.S.C. 7751) is amended
by adding at the end the following:
``(f) Transfer of Cooperative Agreement Fund.--

[[Page 2108]]
122 STAT. 2108

``(1) In general.--A State may provide to a unit of local
government in the State described in paragraph (2) any cost-
sharing assistance or financing mechanism provided to the State
under a cooperative agreement entered into under this Act
between the Secretary and the State relating to the eradication,
prevention, control, or suppression of plant pests.
``(2) Requirements.--To be eligible for assistance or
financing under paragraph (1), a unit of local government shall
be--
``(A) engaged in any activity relating to the
eradication, prevention, control, or suppression of the
plant pest infestation covered under the cooperative
agreement between the Secretary and the State; and
``(B) capable of documenting each plant pest
infestation eradication, prevention, control, or
suppression activity generally carried out by--
``(i) the Department of Agriculture; or
``(ii) the State department of agriculture
that has jurisdiction over the unit of local
government.''.

Subtitle C--Organic Agriculture

SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

Section 10606 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 6523) is amended--
(1) in subsection (a), by striking ``$5,000,000 for fiscal
year 2002'' and inserting ``$22,000,000 for fiscal year 2008'';
(2) in subsection (b)(2), by striking ``$500'' and inserting
``$750''; and
(3) by adding at the end the following:

``(c) Reporting.--Not later than March 1 of each year, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes the requests by,
disbursements to, and expenditures for each State under the program
during the current and previous fiscal year, including the number of
producers and handlers served by the program in the previous fiscal
year.''.
SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

Section 7407 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 5925c) is amended to read as follows:
``SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

``(a) In General.--The Secretary shall collect and report data on
the production and marketing of organic agricultural products.
``(b) Requirements.--In carrying out subsection (a), the Secretary
shall, at a minimum--
``(1) collect and distribute comprehensive reporting of
prices relating to organically produced agricultural products;
``(2) conduct surveys and analysis and publish reports
relating to organic production, handling, distribution, retail,
and trend studies (including consumer purchasing patterns); and
``(3) develop surveys and report statistical analysis on
organically produced agricultural products.

[[Page 2109]]
122 STAT. 2109

``(c) Report.--Not later than 180 days after the date of enactment
of this subsection, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report that--
``(1) describes the progress that has been made in
implementing this section; and
``(2) identifies any additional production and marketing
data needs.

``(d) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section
$5,000,000, to remain available until expended.
``(2) Additional funding.--In addition to funds made
available under paragraph (1), there are authorized to be
appropriated to carry out this section not more than $5,000,000
for each of fiscal years 2008 through 2012, to remain available
until expended.''.
SEC. 10303. NATIONAL ORGANIC PROGRAM.

Section 2123 of the Organic Foods Production Act of 1990 (7 U.S.C.
6522) is amended--
(1) by striking ``There are'' and inserting the following:

``(a) In General.--There are''; and
(2) by adding at the end the following:

``(b) National Organic Program.--Notwithstanding any other provision
of law, in order to carry out activities under the national organic
program established under this title, there are authorized to be
appropriated--
``(1) $5,000,000 for fiscal year 2008;
``(2) $6,500,000 for fiscal year 2009;
``(3) $8,000,000 for fiscal year 2010;
``(4) $9,500,000 for fiscal year 2011;
``(5) $11,000,000 for fiscal year 2012; and
``(6) in addition to those amounts, such additional sums as
are necessary for fiscal year 2009 and each fiscal year
thereafter.''.

Subtitle D--Miscellaneous

SEC. 10401. NATIONAL HONEY BOARD.

Section 7(c) of the Honey Research, Promotion, and Consumer
Information Act (7 U.S.C. 4606(c)) is amended by adding at the end the
following:
``(12) Referendum requirement.--
``(A) Definition of existing honey board.--The term
`existing Honey Board' means the Honey Board in effect
on the date of enactment of this paragraph.
``(B) Conduct of referenda.--
Notwithstanding [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

[[Page 2110]]
122 STAT. 2110

packer-importer board or a United States honey producer
board.
``(C) Requirements.--In conducting referenda under
subparagraph (B), and in exercising fiduciary
responsibilities in any transition to any 1 or more
successor boards, the Secretary shall--
``(i) conduct a referendum of eligible United
States honey producers for the establishment of a
marketing board solely for United States honey
producers;
``(ii) conduct a referendum of eligible
packers, importers, and handlers of honey for the
establishment of a marketing board for packers,
importers, and handlers of honey;
``(iii) notwithstanding the timing of the
referenda required under clauses (i) and (ii) or
of the establishment of any 1 or more successor
boards pursuant to those referenda, ensure that
the rights and interests of honey producers,
importers, packers, and handlers of honey are
equitably protected in any disposition of the
assets, facilities, intellectual property, and
programs of the existing Honey Board and in the
transition to any 1 or more new successor
marketing boards;
``(iv) ensure that the existing Honey Board
continues in operation until such time as the
Secretary determines that--
``(I) any 1 or more successor
boards, if approved, are operational;
and
``(II) the interests of producers,
importers, packers, and handlers of
honey can be equitably protected during
any remaining period in which a
referendum on a successor board or the
establishment of such a board is
pending; and
``(v) discontinue collection of assessments
under the order establishing the existing Honey
Board on the date the Secretary requires that
collections commence pursuant to an order approved
in a referendum by eligible producers or
processors and importers of honey.
``(D) Honey board referendum.--If 1 or more orders
are approved pursuant to paragraph (C)--
``(i) the Secretary shall not be required to
conduct a continuation referendum on the order in
existence on the date of enactment of this
paragraph; and
``(ii) that order shall be terminated pursuant
to the provisions of the order.''.
SEC. 10402. IDENTIFICATION OF HONEY.

(a) In General.--Section 203(h) of the Agricultural Marketing Act of
1946 (7 U.S.C. 1622(h)) is amended--
(1) by designating the first through sixth sentences as
paragraphs (1), (2)(A), (2)(B), (3), (4), and (5), respectively;
and
(2) by adding at the end the following:
``(6) Identification of honey.--
``(A) In general.--The use of a label or advertising
material on, or in conjunction with, packaged honey that

[[Page 2111]]
122 STAT. 2111

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 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

[[Page 2112]]
122 STAT. 2112

this section shall be equal to the average quantity of the 2003 crop of
asparagus produced by producers on the farm.
(d) Funding.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make available $15,000,000 of the funds of the Commodity
Credit Corporation to carry out a program to provide market loss
payments to producers of asparagus under this section.
(2) Allocation.--Of the amount made available under
paragraph (1), the Secretary shall use--
(A) $7,500,000 to make payments to producers of
asparagus for the fresh market; and
(B) $7,500,000 to make payments to producers of
asparagus for the processed or frozen market.

TITLE XI--LIVESTOCK

SEC. 11001. LIVESTOCK MANDATORY REPORTING.

(a) Web Site Improvements and User Education.--
(1) In general.--Section 251(g) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1636(g)) is amended to read as
follows:

``(g) Electronic Reporting and Publishing.--
``(1) In general.--The Secretary shall, to the maximum
extent practicable, provide for the reporting and publishing of
the information required under this subtitle by electronic
means.
``(2) Improvements and education.--
``(A) Enhanced electronic publishing.--The Secretary
shall develop and implement an enhanced system of
electronic publishing to disseminate information
collected pursuant to this subtitle. Such system shall--
``(i) present information in a format that can
be readily understood by producers, packers, and
other market participants;
``(ii) adhere to the publication deadlines in
this subtitle;
``(iii) present information in charts and
graphs, as appropriate;
``(iv) present comparative information for
prior reporting periods, as the Secretary
considers appropriate; and
``(v) be updated as soon as practicable after
information is reported to the Secretary.
``(B) Education.--The Secretary shall carry out a
market news education program to educate the public and
persons in the livestock and meat industries about--
``(i) usage of the system developed under
subparagraph (A); and
``(ii) interpreting and understanding
information collected and disseminated through
such system.''.
(2) [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

[[Page 2113]]
122 STAT. 2113

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) [NOTE: 7 USC 1638.]  in section 281(2)(A)--
(A) in clause (v), by striking ``and'';
(B) in clause (vi), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(vii) meat produced from goats;
``(viii) chicken, in whole and in part;
``(ix) ginseng;
``(x) pecans; and
``(xi) macadamia nuts.'';
(2) [NOTE: 7 USC 1638a.]  in section 282--
(A) in subsection (a), by striking paragraphs (2)
and (3) and inserting the following:
``(2) Designation of country of origin for beef, lamb, pork,
chicken, and goat meat.--
``(A) United states country of origin.--A retailer
of a covered commodity that is beef, lamb, pork,
chicken, or goat meat may designate the covered
commodity as exclusively having a United States country
of origin only

[[Page 2114]]
122 STAT. 2114

if the covered commodity is derived from an animal that
was--
``(i) exclusively born, raised, and
slaughtered in the United States;
``(ii) born and raised in Alaska or Hawaii and
transported for a period of not more than 60 days
through Canada to the United States and
slaughtered in the United States; or
``(iii) present in the United States on or
before July 15, 2008, and once present in the
United States, remained continuously in the United
States.
``(B) Multiple countries of origin.--
``(i) In general.--A retailer of a covered
commodity that is beef, lamb, pork, chicken, or
goat meat that is derived from an animal that is--
``(I) not exclusively born, raised,
and slaughtered in the United States,
``(II) born, raised, or slaughtered
in the United States, and
``(III) not imported into the United
States for immediate slaughter,
may designate the country of origin of such
covered commodity as all of the countries in which
the animal may have been born, raised, or
slaughtered.
``(ii) Relation to general requirement.--
Nothing in this subparagraph alters the mandatory
requirement to inform consumers of the country of
origin of covered commodities under paragraph (1).
``(C) Imported for immediate slaughter.--A retailer
of a covered commodity that is beef, lamb, pork,
chicken, or goat meat that is derived from an animal
that is imported into the United States for immediate
slaughter shall designate the origin of such covered
commodity as--
``(i) the country from which the animal was
imported; and
``(ii) the United States.
``(D) Foreign country of origin.--A retailer of a
covered commodity that is beef, lamb, pork, chicken, or
goat meat that is derived from an animal that is not
born, raised, or slaughtered in the United States shall
designate a country other than the United States as the
country of origin of such commodity.
``(E) Ground beef, pork, lamb, chicken, and goat.--
The notice of country of origin for ground beef, ground
pork, ground lamb, ground chicken, or ground goat shall
include--
``(i) a list of all countries of origin of
such ground beef, ground pork, ground lamb, ground
chicken, or ground goat; or
``(ii) a list of all reasonably possible
countries of origin of such ground beef, ground
pork, ground lamb, ground chicken, or ground goat.
``(3) Designation of country of origin for fish.--
``(A) In general.--A retailer of a covered commodity
that is farm-raised fish or wild fish may designate the
covered commodity as having a United States country of
origin only if the covered commodity--

[[Page 2115]]
122 STAT. 2115

``(i) in the case of farm-raised fish, is
hatched, raised, harvested, and processed in the
United States; and
``(ii) in the case of wild fish, is--
``(I) harvested in the United
States, a territory of the United
States, or a State, or by a vessel that
is documented under chapter 121 of title
46, United States Code, or registered in
the United States; and
``(II) processed in the United
States, a territory of the United
States, or a State, including the waters
thereof, or aboard a vessel that is
documented under chapter 121 of title
46, United States Code, or registered in
the United States.
``(B) Designation of wild fish and farm-raised
fish.--The notice of country of origin for wild fish and
farm-raised fish shall distinguish between wild fish and
farm-raised fish.
``(4) Designation of country of origin for perishable
agricultural commodities, ginseng, peanuts, pecans, and
macadamia nuts.--
``(A) In general.--A retailer of a covered commodity
that is a perishable agricultural commodity, ginseng,
peanut, pecan, or macadamia nut may designate the
covered commodity as having a United States country of
origin only if the covered commodity is exclusively
produced in the United States.
``(B) State, region, locality of the united
states.--With respect to a covered commodity that is a
perishable agricultural commodity, ginseng, peanut,
pecan, or macadamia nut produced exclusively in the
United States, designation by a retailer of the State,
region, or locality of the United States where such
commodity was produced shall be sufficient to identify
the United States as the country of origin.''; and
(B) by striking subsection (d) and inserting the
following:

``(d) Audit Verification System.--
``(1) In general.--The Secretary may conduct an audit of any
person that prepares, stores, handles, or distributes a covered
commodity for retail sale to verify compliance with this
subtitle (including the regulations promulgated under section
284(b)).
``(2) Record requirements.--
``(A) In general.--A person subject to an audit
under paragraph (1) shall provide the Secretary with
verification of the country of origin of covered
commodities. Records maintained in the course of the
normal conduct of the business of such person, including
animal health papers, import or customs documents, or
producer affidavits, may serve as such verification.
``(B) Prohibition on requirement of additional
records.--The Secretary may not require a person that
prepares, stores, handles, or distributes a covered
commodity to maintain a record of the country of origin
of a covered commodity other than those maintained in
the

[[Page 2116]]
122 STAT. 2116

course of the normal conduct of the business of such
person.''; and
(3) in section 283--
(A) by striking subsections (a) and (c);
(B) by redesignating subsection (b) as subsection
(a);
(C) in subsection (a) (as so redesignated), by
striking ``retailer'' and inserting ``retailer or person
engaged in the business of supplying a covered commodity
to a retailer''; and
(D) by adding at the end the following new
subsection:

``(b) Fines.--If, on completion of the 30-day period described in
subsection (a)(2), the Secretary determines that the retailer or person
engaged in the business of supplying a covered commodity to a retailer
has--
``(1) not made a good faith effort to comply with section
282, and
``(2) continues to willfully violate section 282 with
respect to the violation about which the retailer or person
received notification under subsection (a)(1),

after providing notice and an opportunity for a hearing before the
Secretary with respect to the violation, the Secretary may fine the
retailer or person in an amount of not more than $1,000 for each
violation.''.
SEC. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967 DEFINITIONS.

Section 3 of the Agricultural Fair Practices Act of 1967 (7 U.S.C.
2302) is amended--
(1) by striking ``When used in this Act--'' and inserting
``In this Act:'';
(2) in subsection (a)--
(A) by redesignating paragraphs (1) through (4) as
clauses (i) through (iv), respectively; and
(B) in clause (iv) (as so redesignated), by striking
``clause (1), (2), or (3) of this paragraph'' and
inserting ``clause (i), (ii), or (iii)'';
(3) by striking subsection (d);
(4) by redesignating subsections (a), (b), (c), and (e) as
paragraphs (3), (4), (2), (1), respectively, indenting
appropriately, and moving those paragraphs so as to appear in
numerical order;
(5) in each paragraph (as so redesignated) that does not
have a heading, by inserting a heading, in the same style as the
heading in the amendment made by paragraph (6), the text of
which is comprised of the term defined in the paragraph;
(6) in paragraph (2) (as so redesignated)--
(A) by striking ``The term `association of
producers' means'' and inserting the following:
``(2) Association of producers.--
``(A) In general.--The term `association of
producers' means''; and
(B) by adding at the end the following:
``(B) Inclusion.--The term `association of
producers' includes an organization whose membership is
exclusively

[[Page 2117]]
122 STAT. 2117

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 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;

[[Page 2118]]
122 STAT. 2118

``(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--
``(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

[[Page 2119]]
122 STAT. 2119

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, 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.''.

[[Page 2120]]
122 STAT. 2120

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
(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:

[[Page 2121]]
122 STAT. 2121

``(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).

(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'';

[[Page 2122]]
122 STAT. 2122

(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
(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.

[[Page 2123]]
122 STAT. 2123

(b) Cooperative Agreements Between Eligible Entities and the
Secretary.--
(1) Duties.--As a condition of entering into a cooperative
agreement with the Secretary under this section, an eligible
entity shall agree to--
(A) assume responsibility for the non-Federal share
of the cost of carrying out the project under the
national aquatic health plan, as determined by the
Secretary in accordance with paragraph (2); and
(B) act in accordance with applicable disease and
species specific best management practices relating to
activities to be carried out under such project.
(2) Non-federal share.--The Secretary shall determine the
non-Federal share of the cost of carrying out a project under
the national aquatic health plan on a case-by-case basis for
each such project. Such non-Federal share may be provided in
cash or in-kind.

(c) Applicability of Other Laws.--In carrying out this section, the
Secretary may make use of the authorities under the Animal Health
Protection Act (7 U.S.C. 8301 et seq.), including the authority to carry
out operations and measures to detect, control, and eradicate pests and
diseases and the authority to pay claims arising out of the destruction
of any animal, article, or means of conveyance.
(d) Authorization of Appropriations.--There is authorized to be
appropriated such sums as may be necessary to carry out this section for
each of fiscal years 2008 through 2012.
(e) Eligible Entity Defined.--In this section, the term ``eligible
entity'' means a State, a political subdivision of a State, Indian
tribe, or other appropriate entity, as determined by the Secretary of
Agriculture.
SEC. 11014. STUDY ON BIOENERGY OPERATIONS.

(a) Study.--The Secretary of Agriculture shall conduct a study to
evaluate the role of animal manure as a source of fertilizer and its
potential additional uses. Such study shall include--
(1) a determination of the extent to which animal manure is
utilized as fertilizer in agricultural operations by type
(including species and agronomic practices employed) and size;
(2) an evaluation of the potential impact on consumers and
on agricultural operations (by size) resulting from limitations
being placed on the utilization of animal manure as fertilizer;
and
(3) an evaluation of the effects on agriculture production
contributable to the increased competition for animal manure use
due to bioenergy production, including as a feedstock or a
replacement for fossil fuels.

(b) Report.--Not later than one year after the date of the enactment
of this Act, the Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate the results of the study conducted
under subsection (a).

[[Page 2124]]
122 STAT. 2124

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
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.

[[Page 2125]]
122 STAT. 2125

``(2) Prohibited establishments.--In carrying out paragraph
(1), the Secretary, in coordination with an appropriate State
agency, shall not select an establishment that--
``(A) on average, employs more than 25 employees
(including supervisory and nonsupervisory employees), as
defined by the Secretary;
``(B) as of the date of the enactment of this
section, ships in interstate commerce carcasses,
portions of carcasses, or meat items that are inspected
by the Secretary in accordance with this Act;
``(C)(i) is a Federal establishment;
``(ii) was a Federal establishment that was
reorganized on a later date under the same name or a
different name or person by the person, firm, or
corporation that controlled the establishment as of the
date of the enactment of this section; or
``(iii) was a State establishment as of the date of
the enactment of this section that--
``(I) as of the date of the enactment of this
section, employed more than 25 employees; and
``(II) was reorganized on a later date by the
person, firm, or corporation that controlled the
establishment as of the date of the enactment of
this section;
``(D) is in violation of this Act;
``(E) is located in a State that does not have a
State inspection program; or
``(F) is the subject of a transition carried out in
accordance with a procedure developed by the Secretary
under paragraph (3)(A).
``(3) Establishments that employ more than 25 employees.--
``(A) Development of procedure.--The Secretary may
develop a procedure to transition to a Federal
establishment any establishment under this section that,
on average, consistently employs more than 25 employees.
``(B) Eligibility of certain establishments.--
``(i) In general.--A State establishment that
employs more than 25 employees but less than 35
employees as of the date of the enactment of this
section may be selected as a selected
establishment under this subsection.
``(ii) Procedures.--A State establishment
shall be subject to the procedures established
under subparagraph (A) beginning on the date that
is 3 years after the effective date described in
subsection (j).

``(c) Reimbursement of State Costs.--The Secretary shall reimburse a
State for costs related to the inspection of selected establishments in
the State in accordance with Federal requirements in an amount of not
less than 60 percent of eligible State costs.
``(d) Coordination Between Federal and State Agencies.--
``(1) In general.--The Secretary shall designate an employee
of the Federal Government as State coordinator for each
appropriate State agency--
``(A) to provide oversight and enforcement of this
title; and

[[Page 2126]]
122 STAT. 2126

``(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
``(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--

[[Page 2127]]
122 STAT. 2127

``(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 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

[[Page 2128]]
122 STAT. 2128

``(B) this Act, including rules and regulations
issued under this Act.
``(4) Poultry item.--The term `poultry item' means--
``(A) a portion of poultry; and
``(B) a poultry product.
``(5) Selected establishment.--The term `selected
establishment' means an eligible establishment that is selected
by the Secretary, in coordination with the appropriate State
agency of the State in which the eligible establishment is
located, under subsection (b) to ship poultry items in
interstate commerce.

``(b) Authority of Secretary to Allow Shipments.--
``(1) In general.--Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the State
in which an establishment is located, may select the
establishment to ship poultry items in interstate commerce, and
place on each poultry item shipped in interstate commerce a
Federal mark, stamp, tag, or label of inspection, if--
``(A) the poultry item qualifies for the Federal
mark, stamp, tag, or label of inspection under the
requirements of this Act;
``(B) the establishment is an eligible
establishment; and
``(C) inspection services for the establishment are
provided by designated personnel.
``(2) Prohibited establishments.--In carrying out paragraph
(1), the Secretary, in coordination with an appropriate State
agency, shall not select an establishment that--
``(A) on average, employs more than 25 employees
(including supervisory and nonsupervisory employees), as
defined by the Secretary;
``(B) as of the date of the enactment of this
section, ships in interstate commerce carcasses,
portions of carcasses, or poultry items that are
inspected by the Secretary in accordance with this Act;
``(C)(i) is a Federal establishment;
``(ii) was a Federal establishment as of the date of
the enactment of this section, and was reorganized on a
later date under the same name or a different name or
person by the person, firm, or corporation that
controlled the establishment as of the date of the
enactment of this section; or
``(iii) was a State establishment as of the date of
the enactment of this section that--
``(I) as of the date of the enactment of this
section, employed more than 25 employees; and
``(II) was reorganized on a later date by the
person, firm, or corporation that controlled the
establishment as of the date of the enactment of
this section;
``(D) is in violation of this Act;
``(E) is located in a State that does not have a
State inspection program; or
``(F) is the subject of a transition carried out in
accordance with a procedure developed by the Secretary
under paragraph (3)(A).
``(3) Establishments that employ more than 25 employees.--

[[Page 2129]]
122 STAT. 2129

``(A) Development of procedure.--The Secretary may
develop a procedure to transition to a Federal
establishment any establishment under this section that,
on average, consistently employs more than 25 employees.
``(B) Eligibility of certain establishments.--
``(i) In general.--A State establishment that
employs more than 25 employees but less than 35
employees as of the date of the enactment of this
section may be selected as a selected
establishment under this subsection.
``(ii) Procedures.--A State establishment
shall be subject to the procedures established
under subparagraph (A) beginning on the date that
is 3 years after the effective date described in
subsection (i).

``(c) Reimbursement of State Costs.--The Secretary shall reimburse a
State for costs related to the inspection of selected establishments in
the State in accordance with Federal requirements in an amount of not
less than 60 percent of eligible State costs.
``(d) Coordination Between Federal and State Agencies.--
``(1) In general.--The Secretary shall designate an employee
of the Federal Government as State coordinator for each
appropriate State agency--
``(A) to provide oversight and enforcement of this
section; and
``(B) to oversee the training and inspection
activities of designated personnel of the State agency.
``(2) Supervision.--A State coordinator shall be under the
direct supervision of the Secretary.
``(3) Duties of state coordinator.--
``(A) In general.--A State coordinator shall visit
selected establishments with a frequency that is
appropriate to ensure that selected establishments are
operating in a manner that is consistent with this Act
(including regulations and policies under this Act).
``(B) Quarterly reports.--A State coordinator shall,
on a quarterly basis, submit to the Secretary a report
that describes the status of each selected establishment
that is under the jurisdiction of the State coordinator
with respect to the level of compliance of each selected
establishment with the requirements of this Act.
``(C) Immediate notification requirement.--If a
State coordinator determines that any selected
establishment that is under the jurisdiction of the
State coordinator is in violation of any requirement of
this Act, the State coordinator shall--
``(i) immediately notify the Secretary of the
violation; and
``(ii) deselect the selected establishment or
suspend inspection at the selected establishment.
``(4) Performance evaluations.--Performance evaluations of
State coordinators designated under this subsection shall be
conducted by the Secretary as part of the Federal agency
management control system.

``(e) [NOTE: Deadlines.]  Audits.--
``(1) Periodic audits conducted by inspector general of the
department of agriculture.--Not later than 2 years

[[Page 2130]]
122 STAT. 2130

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--
``(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)) --

[[Page 2131]]
122 STAT. 2131

(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.--
(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).

[[Page 2132]]
122 STAT. 2132

(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 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

[[Page 2133]]
122 STAT. 2133

``(3) upon request, make the procedures and reassessed
process control plans available to inspectors appointed by the
Secretary for review and copying.''.

TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS

Subtitle A--Crop Insurance and Agricultural Disaster Assistance

SEC. 12001. DEFINITION OF ORGANIC CROP.

Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b))
is amended--
(1) by redesignating paragraphs (7) and (8) as paragraphs
(8) and (9), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) Organic crop.--The term `organic crop' means an
agricultural commodity that is organically produced consistent
with section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502).''.
SEC. 12002. GENERAL POWERS.

(a) In General.--Section 506 of the Federal Crop Insurance Act (7
U.S.C. 1506) is amended--
(1) in the first sentence of subsection (d), by striking
``The Corporation'' and inserting ``Subject to section
508(j)(2)(A), the Corporation''; and
(2) by striking subsection (n).

(b) Conforming Amendments.--
(1) Section 506 of the Federal Crop Insurance Act (7 U.S.C.
1506) is amended by redesignating subsections (o), (p), and (q)
as subsections (n), (o), and (p), respectively.
(2) Section 521 of the Federal Crop Insurance Act (7 U.S.C.
1521) is amended by striking the last sentence.
SEC. 12003. REDUCTION IN LOSS RATIO.

(a) Projected Loss Ratio.--Subsection (n)(2) of section 506 of the
Federal Crop Insurance Act (7 U.S.C. 1506) (as redesignated by section
12002(b)(1)) is amended--
(1) in the paragraph heading, by striking ``as of october 1,
1998'';
(2) by striking ``, on and after October 1, 1998,''; and
(3) by striking ``1.075'' and inserting ``1.0''.

(b) Premiums Required.--Section 508(d)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking ``not greater
than 1.1'' and all that follows and inserting ``not greater than--
``(A) 1.1 through September 30, 1998;
``(B) 1.075 for the period beginning October 1,
1998, and ending on the day before the date of enactment
of the Food, Conservation, and Energy Act of 2008; and
``(C) 1.0 on and after the date of enactment of that
Act.''.

[[Page 2134]]
122 STAT. 2134

SEC. 12004. PREMIUMS ADJUSTMENTS.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a))
is amended by adding at the end the following:
``(9) Premium adjustments.--
``(A) Prohibition.--Except as provided in
subparagraph (B), no person shall pay, allow, or give,
or offer to pay, allow, or give, directly or indirectly,
either as an inducement to procure insurance or after
insurance has been procured, any rebate, discount,
abatement, credit, or reduction of the premium named in
an insurance policy or any other valuable consideration
or inducement not specified in the policy.
``(B) Exceptions.--Subparagraph (A) does not apply
with respect to--
``(i) a payment authorized under subsection
(b)(5)(B);
``(ii) a performance-based discount authorized
under subsection (d)(3); or
``(iii) a patronage dividend, or similar
payment, that is paid--
``(I) by an entity that was approved
by the Corporation to make such payments
for the 2005, 2006, or 2007 reinsurance
year, in accordance with subsection
(b)(5)(B) as in effect on the day before
the date of enactment of this paragraph;
and
``(II) in a manner consistent with
the payment plan approved in accordance
with that subsection for the entity by
the Corporation for the applicable
reinsurance year.''.
SEC. 12005. CONTROLLED BUSINESS INSURANCE.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a))
(as amended by section 12004) is amended by adding at the end the
following:
``(10) Commissions.--
``(A) Definition of immediate family.--In this
paragraph, the term `immediate family' means an
individual's father, mother, stepfather, stepmother,
brother, sister, stepbrother, stepsister, son, daughter,
stepson, stepdaughter, grandparent, grandson,
granddaughter, father-in-law, mother-in-law, brother-in-
law, sister-in-law, son-in-law, daughter-in-law, the
spouse of the foregoing, and the individual's spouse.
``(B) Prohibition.--No individual (including a
subagent) may receive directly, or indirectly through an
entity, any compensation (including any commission,
profit sharing, bonus, or any other direct or indirect
benefit) for the sale or service of a policy or plan of
insurance offered under this title if--
``(i) the individual has a substantial
beneficial interest, or a member of the
individual's immediate family has a substantial
beneficial interest, in the policy or plan of
insurance; and
``(ii) the total compensation to be paid to
the individual with respect to the sale or service
of the policies or plans of insurance that meet
the condition described

[[Page 2135]]
122 STAT. 2135

in clause (i) exceeds 30 percent or the percentage
specified in State law, whichever is less, of the
total of all compensation received directly or
indirectly by the individual for the sale or
service of all policies and plans of insurance
offered under this title for the reinsurance year.
``(C) Reporting.--Not later than 90 days after the
annual settlement date of the reinsurance year, any
individual that received directly or indirectly any
compensation for the service or sale of any policy or
plan of insurance offered under this title in the prior
reinsurance year shall certify to applicable approved
insurance providers that the compensation that the
individual received was in compliance with this
paragraph.
``(D) Sanctions.--The procedural requirements and
sanctions prescribed in section 515(h) shall apply to
the prosecution of a violation of this paragraph.
``(E) Applicability.--
``(i) In general.--Sanctions for violations
under this paragraph shall only apply to the
individuals or entities directly responsible for
the certification required under subparagraph (C)
or the failure to comply with the requirements of
this paragraph.
``(ii) Prohibition.--No sanctions shall apply
with respect to the policy or plans of insurance
upon which compensation is received, including the
reinsurance for those policies or plans.''.
SEC. 12006. ADMINISTRATIVE FEE.

(a) In General.--Section 508(b)(5) of the Federal Crop Insurance Act
(7 U.S.C. 1508(b)(5)) is amended--
(1) by striking subparagraph (A) and inserting the
following:
``(A) Basic fee.--Each producer shall pay an
administrative fee for catastrophic risk protection in
the amount of $300 per crop per county.''; and
(2) in subparagraph (B)--
(A) by striking ``payment on behalf of producers''
and inserting ``payment of catastrophic risk protection
fee on behalf of producers'';
(B) in clause (i)--
(i) by striking ``or other payment''; and
(ii) by striking ``with catastrophic risk
protection or additional coverage'' and inserting
``through the payment of catastrophic risk
protection administrative fees'';
(C) by striking clauses (ii) and (vi);
(D) by redesignating clauses (iii), (iv), and (v) as
clauses (ii), (iii), and (iv), respectively;
(E) in clause (iii) (as so redesignated), by
striking ``A policy or plan of insurance'' and inserting
``Catastrophic risk protection coverage''; and
(F) in clause (iv) (as so redesignated)--
(i) by striking ``or other arrangement under
this subparagraph''; and
(ii) by striking ``additional''.

[[Page 2136]]
122 STAT. 2136

(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 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

[[Page 2137]]
122 STAT. 2137

``(cc) 1 shall be an
economist nominated by the grain
sorghum industry.
``(iii) Recommendations.--
``(I) In general.--Not later than 90
days after the date of contracting with
the expert reviewers under clause (ii),
the expert reviewers shall submit, and
the Corporation shall make available to
the public, the recommendations of the
expert reviewers.
``(II) Consideration.--The
Corporation shall consider the
recommendations under subclause (I) when
determining the appropriate pricing
methodology to determine the expected
market price for grain sorghum under
both the production and revenue-based
plans of insurance.
``(III) Publication.--Not later than
60 days after the date on which the
Corporation receives the recommendations
of the expert reviewers, the Corporation
shall publish the proposed pricing
methodology for both the production and
revenue-based plans of insurance for
notice and comment and, during the
comment period, conduct at least 1
public meeting to discuss the proposed
pricing methodologies.
``(iv) Appropriate pricing methodology.--
``(I) In general.--Not later than
180 days after the close of the comment
period in clause (iii)(III), but
effective not later than the 2010 crop
year, the Corporation shall implement a
pricing methodology for grain sorghum
under the production and revenue-based
plans of insurance that is transparent
and replicable.
``(II) Interim methodology.--Until
the date on which the new pricing
methodology is implemented, the
Corporation may continue to use the
pricing methodology that the Corporation
determines best establishes the expected
market price.
``(III) Availability.--On an annual
basis, the Corporation shall make
available the pricing methodology and
data used to determine the expected
market prices for grain sorghum under
the production and revenue-based plans
of insurance, including any changes to
the methodology used to determine the
expected market prices for grain sorghum
from the previous year.''.
SEC. 12010. PREMIUM REDUCTION AUTHORITY.

Subsection 508(e) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)) is amended--
(1) in paragraph (2), by striking ``paragraph (4)'' and
inserting ``paragraph (3)'';
(2) by striking paragraph (3); and
(3) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.

[[Page 2138]]
122 STAT. 2138

SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS.

Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) (as
amended by section 12010) is amended by adding at the end the following:
``(5) Enterprise and whole farm units.--
``(A) In general.--The Corporation may carry out a
pilot program under which the Corporation pays a portion
of the premiums for plans or policies of insurance for
which the insurable unit is defined on a whole farm or
enterprise unit basis that is higher than would
otherwise be paid in accordance with paragraph (2).
``(B) Amount.--The percentage of the premium paid by
the Corporation to a policyholder for a policy with an
enterprise or whole farm unit under this paragraph
shall, to the maximum extent practicable, provide the
same dollar amount of premium subsidy per acre that
would otherwise have been paid by the Corporation under
paragraph (2) if the policyholder had purchased a basic
or optional unit for the crop for the crop year.
``(C) Limitation.--The amount of the premium paid by
the Corporation under this paragraph may not exceed 80
percent of the total premium for the enterprise or whole
farm unit policy.''.
SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE PLANS.

Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))
(as amended by section 12011) is amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``paragraph (4)'' and inserting ``paragraphs
(4), (6), and (7)''; and
(2) by adding at the end the following:
``(6) Premium subsidy for area revenue plans.--Subject to
paragraph (4), in the case of a policy or plan of insurance that
covers losses due to a reduction in revenue in an area, the
amount of the premium paid by the Corporation shall be as
follows:
``(A) In the case of additional area coverage equal
to or greater than 70 percent, but less than 75 percent,
of the recorded county yield indemnified at not greater
than 100 percent of the expected market price, the
amount shall be equal to the sum of--
``(i) 59 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(B) In the case of additional area coverage equal
to or greater than 75 percent, but less than 85 percent,
of the recorded county yield indemnified at not greater
than 100 percent of the expected market price, the
amount shall be equal to the sum of--
``(i) 55 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and

[[Page 2139]]
122 STAT. 2139

``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(C) In the case of additional area coverage equal
to or greater than 85 percent, but less than 90 percent,
of the recorded county yield indemnified at not greater
than 100 percent of the expected market price, the
amount shall be equal to the sum of--
``(i) 49 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(D) In the case of additional area coverage equal
to or greater than 90 percent of the recorded county
yield indemnified at not greater than 100 percent of the
expected market price, the amount shall be equal to the
sum of--
``(i) 44 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(7) Premium subsidy for area yield plans.--Subject to
paragraph (4), in the case of a policy or plan of insurance that
covers losses due to a loss of yield or prevented planting in an
area, the amount of the premium paid by the Corporation shall be
as follows:
``(A) In the case of additional area coverage equal
to or greater than 70 percent, but less than 80 percent,
of the recorded county yield indemnified at not greater
than 100 percent of the expected market price, the
amount shall be equal to the sum of--
``(i) 59 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(B) In the case of additional area coverage equal
to or greater than 80 percent, but less than 90 percent,
of the recorded county yield indemnified at not greater
than 100 percent of the expected market price, the
amount shall be equal to the sum of--
``(i) 55 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.
``(C) In the case of additional area coverage equal
to or greater than 90 percent, of the recorded county
yield indemnified at not greater than 100 percent of the
expected market price, the amount shall be equal to the
sum of--

[[Page 2140]]
122 STAT. 2140

``(i) 51 percent of the amount of the premium
established under subsection (d)(2)(B)(i) for the
coverage level selected; and
``(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to
cover operating and administrative expenses.''.
SEC. 12013. DENIAL OF CLAIMS.

Section 508(j)(2)(A) of the Federal Crop Insurance Act (7 U.S.C.
1508(j)(2)(A)) is amended by inserting ``on behalf of the Corporation''
after ``approved provider''.
SEC. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON FARM-STORED
PRODUCTION.

(a) In General.--Section 508(j) of the Federal Crop Insurance Act (7
U.S.C. 1508(j)) is amended by adding at the end the following:
``(5) Settlement of claims on farm-stored production.--A
producer with farm-stored production may, at the option of the
producer, delay settlement of a crop insurance claim relating to
the farm-stored production for up to 4 months after the last
date on which claims may be submitted under the policy of
insurance.''.

(b) Study on the Efficacy of Pack Factors.--
(1) In general.--The Secretary shall conduct a study of the
efficacy and accuracy of the application of pack factors
regarding the measurement of farm-stored production for purposes
of providing policies or plans of insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.).
(2) Considerations.--The study shall consider--
(A) structural shape and size;
(B) time in storage;
(C) the impact of facility aeration systems; and
(D) any other factors the Secretary considers
appropriate.
(3) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
a report that includes the findings of the study and any related
policy recommendations.
SEC. 12015. TIME FOR REIMBURSEMENT.

Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(4)) is amended by adding at the end the following:
``(D) Time for reimbursement.--Effective beginning
with the 2012 reinsurance year, the Corporation shall
reimburse approved insurance providers and agents for
the allowable administrative and operating costs of the
providers and agents as soon as practicable after
October 1 (but not later than October 31) after the
reinsurance year for which reimbursements are earned.''.
SEC. 12016. REIMBURSEMENT RATE.

Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(4)) (as amended by section 12015) is amended--
(1) in subparagraph (A), by striking ``Except as provided in
subparagraph (B)'' and inserting ``Except as otherwise provided
in this paragraph''; and

[[Page 2141]]
122 STAT. 2141

(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 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

[[Page 2142]]
122 STAT. 2142

the Committee on Agriculture, Nutrition, and Forestry of
the Senate of the renegotiation.
``(D) Consultation.--The approved insurance
providers may confer with each other and collectively
with the Corporation during any renegotiation under
subparagraph (A).
``(E) 2011 reinsurance year.--
``(i) In general.--As part of the Standard
Reinsurance Agreement renegotiation authorized
under subparagraph (A)(i), the Corporation shall
consider alternative methods to determine
reimbursement rates for administrative and
operating costs.
``(ii) Alternative methods.--Alternatives
considered under clause (i) shall include--
``(I) methods that--
``(aa) are graduated and
base reimbursement rates in a
State on changes in premiums in
that State;
``(bb) are graduated and
base reimbursement rates in a
State on the loss ratio for crop
insurance for that State; and
``(cc) are graduated and
base reimbursement rates on
individual policies on the level
of total premium for each
policy; and
``(II) any other method that takes
into account current financial
conditions of the program and ensures
continued availability of the program to
producers on a nationwide basis.''.
SEC. 12018. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR
UNDERWRITING GAINS.

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k))
(as amended by section 12017) is amended by adding at the end the
following:
``(9) Due date for payment of underwriting gains.--Effective
beginning with the 2011 reinsurance year, the Corporation shall
make payments for underwriting gains under this title on--
``(A) for the 2011 reinsurance year, October 1,
2012; and
``(B) for each reinsurance year thereafter, October
1 of the following calendar year.''.
SEC. 12019. MALTING BARLEY.

Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m))
is amended by adding at the end the following:
``(5) Special provisions for malting barley.--The
Corporation shall promulgate special provisions under this
subsection specific to malting barley, taking into consideration
any changes in quality factors, as required by applicable market
conditions.''.
SEC. 12020. CROP PRODUCTION ON NATIVE SOD.

(a) Federal Crop Insurance.--Section 508 of the Federal Crop
Insurance Act (7 U.S.C. 1508) is amended by adding at the end the
following:
``(o) Crop Production on Native Sod.--

[[Page 2143]]
122 STAT. 2143

``(1) Definition of native sod.--In this subsection, the
term `native sod' means land--
``(A) on which the plant cover is composed
principally of native grasses, grasslike plants, forbs,
or shrubs suitable for grazing and browsing; and
``(B) that has never been tilled for the production
of an annual crop as of the date of enactment of this
subsection.
``(2) Ineligibility for benefits.--
``(A) In general.--Subject to subparagraph (B) and
paragraph (3), native sod acreage that has been tilled
for the production of an annual crop after the date of
enactment of this subsection shall be ineligible during
the first 5 crop years of planting, as determined by the
Secretary, for benefits under--
``(i) this title; and
``(ii) section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C.
7333).
``(B) De minimis acreage exemption.--The Secretary
shall exempt areas of 5 acres or less from subparagraph
(A).
``(3) Application.--Paragraph (2) may apply to native sod
acreage in the Prairie Pothole National Priority Area at the
election of the Governor of the respective State.''.

(b) Noninsured Crop Disaster Assistance.--Section 196(a) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333(a)) is amended by adding at the end the following:
``(4) Program ineligibility relating to crop production on
native sod.--
``(A) Definition of native sod.--In this paragraph,
the term `native sod' means land--
``(i) on which the plant cover is composed
principally of native grasses, grasslike plants,
forbs, or shrubs suitable for grazing and
browsing; and
``(ii) that has never been tilled for the
production of an annual crop as of the date of
enactment of this paragraph.
``(B) Ineligibility for benefits.--
``(i) In general.--Subject to clause (ii) and
subparagraph (C), native sod acreage that has been
tilled for the production of an annual crop after
the date of enactment of this paragraph shall be
ineligible during the first 5 crop years of
planting, as determined by the Secretary, for
benefits under--
``(I) this section; and
``(II) the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.).
``(ii) De minimis acreage exemption.--The
Secretary shall exempt areas of 5 acres or less
from clause (i).
``(C) Application.--Subparagraph (B) may apply to
native sod acreage in the Prairie Pothole National
Priority Area at the election of the Governor of the
respective State.''.

[[Page 2144]]
122 STAT. 2144

SEC. 12021. INFORMATION MANAGEMENT.

Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) is
amended--
(a) in subsection (j)(3), by adding before the period at the end
the following: ``, which shall be subject to competition on a periodic
basis, as determined by the Secretary''; and
(b) by striking subsection (k) and inserting the following:
``(k) Funding.--
``(1) Information technology.--To carry out subsection
(j)(1), the Corporation may use, from amounts made available
from the insurance fund established under section 516(c), not
more than $15,000,000 for each of fiscal years 2008 through
2011.
``(2) Data mining.--To carry out subsection (j)(2), the
Corporation may use, from amounts made available from the
insurance fund established under section 516(c), not more than
$4,000,000 for fiscal year 2009 and each subsequent fiscal
year.''.
SEC. 12022. RESEARCH AND DEVELOPMENT.

(a) In General.--Section 522(b) of the Federal Crop Insurance Act (7
U.S.C. 1522(b)) is amended by striking paragraphs (1) and (2) and
inserting the following:
``(1) Research and development payment.--
``(A) In general.--The Corporation shall provide a
payment to an applicant for research and development
costs in accordance with this subsection.
``(B) Reimbursement.--An applicant who submits a
policy under section 508(h) shall be eligible for the
reimbursement of reasonable research and development
costs directly related to the policy if the policy is
approved by the Board for sale to producers.
``(2) Advance payments.--
``(A) In general.--Subject to the other provisions
of this paragraph, the Board may approve the request of
an applicant for advance payment of a portion of
reasonable research and development costs prior to
submission and approval of the policy by the Board under
section 508(h).
``(B) Procedures.--The Board shall establish
procedures for approving advance payment of reasonable
research and development costs to applicants.
``(C) Concept proposal.--As a condition of
eligibility for advance payments, an applicant shall
submit a concept proposal for the policy that the
applicant plans to submit to the Board under section
508(h), consistent with procedures established by the
Board for submissions under subparagraph (B),
including--
``(i) a summary of the qualifications of the
applicant, including any prior concept proposals
and submissions to the Board under section 508(h)
and, if applicable, any work conducted under this
section;
``(ii) a projection of total research and
development costs that the applicant expects to
incur;
``(iii) a description of the need for the
policy, the marketability of and expected demand
for the policy among affected producers, and the
potential impact

[[Page 2145]]
122 STAT. 2145

of the policy on producers and the crop insurance
delivery system;
``(iv) a summary of data sources available to
demonstrate that the policy can reasonably be
developed and actuarially appropriate rates
established; and
``(v) an identification of the risks the
proposed policy will cover and an explanation of
how the identified risks are insurable under this
title.
``(D) Review.--
``(i) Experts.--If the requirements of
subparagraph (B) and (C) are met, the Board may
submit a concept proposal described in
subparagraph (C) to not less than 2 independent
expert reviewers, whose services are appropriate
for the type of concept proposal submitted, to
assess the likelihood that the proposed policy
being developed will result in a viable and
marketable policy, as determined by the Board.
``(ii) Timing.--The time frames described in
subparagraphs (C) and (D) of section 508(h)(4)
shall apply to the review of concept proposals
under this subparagraph.
``(E) Approval.--The Board may approve up to 50
percent of the projected total research and development
costs to be paid in advance to an applicant, in
accordance with the procedures developed by the Board
for the making of such payments, if, after consideration
of the reviewer reports described in subparagraph (D)
and such other information as the Board determines
appropriate, the Board determines that--
``(i) the concept, in good faith, will likely
result in a viable and marketable policy
consistent with section 508(h);
``(ii) in the sole opinion of the Board, the
concept, if developed into a policy and approved
by the Board, would provide crop insurance
coverage--
``(I) in a significantly improved
form;
``(II) to a crop or region not
traditionally served by the Federal crop
insurance program; or
``(III) in a form that addresses a
recognized flaw or problem in the
program;
``(iii) the applicant agrees to provide such
reports as the Corporation determines are
necessary to monitor the development effort;
``(iv) the proposed budget and timetable are
reasonable; and
``(v) the concept proposal meets any other
requirements that the Board determines
appropriate.
``(F) Submission of policy.--If the Board approves
an advanced payment under subparagraph (E), the Board
shall establish a date by which the applicant shall
present a submission in compliance with section 508(h)
(including the procedures implemented under that
section) to the Board for approval.
``(G) Final payment.--
``(i) Approved policies.--If a policy is
submitted under subparagraph (F) and approved by
the Board under section 508(h) and the procedures
established

[[Page 2146]]
122 STAT. 2146

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.).
``(B) Review of underwriting risk and loss
experience.--

[[Page 2147]]
122 STAT. 2147

``(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, with a goal of applying this procedure
to all organic crops not later than the fifth full
crop year that begins

[[Page 2148]]
122 STAT. 2148

after the date of enactment of Food, Conservation,
and Energy Act of 2008.
``(D) Reporting requirements.--
``(i) In general.--The Corporation shall
submit to the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate
an annual report on progress made in developing
and improving Federal crop insurance for organic
crops, including--
``(I) the numbers and varieties of
organic crops insured;
``(II) the development of new
insurance approaches; and
``(III) the progress of implementing
the initiatives required under this
paragraph, including the rate at which
additional price elections are adopted
for organic crops.
``(ii) Recommendations.--The report shall
include such recommendations as the Corporation
considers appropriate to improve Federal crop
insurance coverage for organic crops.
``(11) Energy crop insurance policy.--
``(A) Definition of dedicated energy crop.--In this
subsection, the term `dedicated energy crop' means an
annual or perennial crop that--
``(i) is grown expressly for the purpose of
producing a feedstock for renewable biofuel,
renewable electricity, or biobased products; and
``(ii) is not typically used for food, feed,
or fiber.
``(B) Authority.--The Corporation shall offer to
enter into 1 or more contracts with qualified entities
to carry out research and development regarding a policy
to insure dedicated energy crops.
``(C) Research and development.--Research and
development described in subparagraph (B) shall evaluate
the effectiveness of risk management tools for the
production of dedicated energy crops, including policies
and plans of insurance that--
``(i) are based on market prices and yields;
``(ii) to the extent that insufficient data
exist to develop a policy based on market prices
and yields, evaluate the policies and plans of
insurance based on the use of weather or rainfall
indices to protect the interests of crop
producers; and
``(iii) provide protection for production or
revenue losses, or both.
``(12) Aquaculture insurance policy.--
``(A) Definition of aquaculture.--In this
subsection:
``(i) In general.--The term `aquaculture'
means the propagation and rearing of aquatic
species in controlled or selected environments,
including shellfish cultivation on grants or
leased bottom and ocean ranching.
``(ii) Exclusion.--The term `aquaculture' does
not include the private ocean ranching of Pacific
salmon for profit in any State in which private
ocean ranching

[[Page 2149]]
122 STAT. 2149

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 2150]]
122 STAT. 2150

``(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 2151]]
122 STAT. 2151

``(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 2152]]
122 STAT. 2152

``(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 2153]]
122 STAT. 2153

(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 2154]]
122 STAT. 2154

``(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 2155]]
122 STAT. 2155

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 2156]]
122 STAT. 2156

``(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 2157]]
122 STAT. 2157

``(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 2158]]
122 STAT. 2158

``(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 2159]]
122 STAT. 2159

``(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 2160]]
122 STAT. 2160

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 2161]]
122 STAT. 2161

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 2162]]
122 STAT. 2162

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 2163]]
122 STAT. 2163

``(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 2164]]
122 STAT. 2164

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 2165]]
122 STAT. 2165

``(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 2166]]
122 STAT. 2166

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 2167]]
122 STAT. 2167

``(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 2168]]
122 STAT. 2168

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 2169]]
122 STAT. 2169

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) Deadlines.--
Notwithstanding [NOTE: Reports.]  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 2170]]
122 STAT. 2170

``(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 2171]]
122 STAT. 2171

(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 2172]]
122 STAT. 2172

(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) [NOTE: 15 USC 633.]  in section 4(c)--
(A) in paragraph (1), by striking ``7(c)(2)'' and
inserting ``7(d)(2)''; and
(B) in paragraph (2)--

[[Page 2173]]
122 STAT. 2173

(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 2174]]
122 STAT. 2174

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 2175]]
122 STAT. 2175

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 2176]]
122 STAT. 2176

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 2177]]
122 STAT. 2177

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 2178]]
122 STAT. 2178

(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 2179]]
122 STAT. 2179

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 2180]]
122 STAT. 2180

``(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 2181]]
122 STAT. 2181

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 2182]]
122 STAT. 2182

``(9) Documentation.--A qualified private lender or
preferred lender may use its own loan documentation for a loan
guaranteed by the Administrator under this subsection, to the
extent authorized by the Administrator. The ability of a lender
to use its own loan documentation for a loan guaranteed under
this subsection shall not be considered part of the criteria for
becoming a qualified private lender under the regulations
promulgated under paragraph (10).
``(10) Implementation regulations.--
``(A) In general.--Not later than 1 year after the
date of enactment of the Small Business Disaster
Response and Loan Improvements Act of 2008, the
Administrator shall issue final regulations establishing
permanent criteria for qualified private lenders.
``(B) Report to congress.--Not later than 6 months
after the date of enactment of the Small Business
Disaster Response and Loan Improvements Act of 2008, the
Administrator shall submit a report on the progress of
the regulations required by subparagraph (A) to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House
of Representatives.
``(11) Authorization of appropriations.--
``(A) In general.--Amounts necessary to carry out
this subsection shall be made available from amounts
appropriated to the Administration to carry out
subsection (b).
``(B) Authority to reduce interest rates and other
terms and conditions.--Funds appropriated to the
Administration to carry out this subsection, may be used
by the Administrator to meet the loan terms and
conditions specified in paragraph (6).
``(12) Purchase of loans.--The Administrator may enter into
an agreement with a qualified private lender or preferred lender
to purchase any loan guaranteed under this subsection.''.

(b) [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 2183]]
122 STAT. 2183

``(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 2184]]
122 STAT. 2184

(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 2185]]
122 STAT. 2185

(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 2186]]
122 STAT. 2186

(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 2187]]
122 STAT. 2187

(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 2188]]
122 STAT. 2188

(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 2189]]
122 STAT. 2189

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 [NOTE: CFTC Reauthorization Act of 2008. 7 USC 1 note.]  XIII--
COMMODITY FUTURES
SEC. 13001. SHORT TITLE.

This title may be cited as the ``CFTC Reauthorization Act of 2008''.

Subtitle A--General Provisions

SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS OR
TRANSACTIONS IN FOREIGN CURRENCY.

(a) In General.--Section 2(c)(2) of the Commodity Exchange Act (7
U.S.C. 2(c)(2)) is amended by striking subparagraphs (B) and (C) and
inserting the following:
``(B) Agreements, contracts, and transactions in
retail foreign currency.--
``(i) [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 2190]]
122 STAT. 2190

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 2191]]
122 STAT. 2191

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 2192]]
122 STAT. 2192

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 2193]]
122 STAT. 2193

``(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 2194]]
122 STAT. 2194

``(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 2195]]
122 STAT. 2195

``(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 2196]]
122 STAT. 2196

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 2197]]
122 STAT. 2197

(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 2198]]
122 STAT. 2198

(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 2199]]
122 STAT. 2199

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 2200]]
122 STAT. 2200

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 2201]]
122 STAT. 2201

``, 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 2202]]
122 STAT. 2202

(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 2203]]
122 STAT. 2203

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 2204]]
122 STAT. 2204

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 2205]]
122 STAT. 2205

``(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 2206]]
122 STAT. 2206

``(i) reaching current and prospective
socially disadvantaged farmers or ranchers in a
linguistically appropriate manner; and
``(ii) improving the participation of those
farmers and ranchers in Department programs, as
reported under section 2501A.''.
(2) Grants and contracts under program.--Section 2501(a)(3)
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279(a)(3)) is amended--
(A) in subparagraph (A), by striking ``entity to
provide information'' and inserting ``entity that has
demonstrated an ability to carry out the requirements
described in paragraph (2) to provide outreach''; and
(B) by adding at the end the following new
subparagraph:
``(D) Report.--The [NOTE: Public information.]
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 2207]]
122 STAT. 2207

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: Web
site.]  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 2208]]
122 STAT. 2208

``(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 2209]]
122 STAT. 2209

``(1) In general.--Not [NOTE: Web site.]  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: Web site.]  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. Web site.]  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 2210]]
122 STAT. 2210

(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 2211]]
122 STAT. 2211

(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 2212]]
122 STAT. 2212

(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 2213]]
122 STAT. 2213

``(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 2214]]
122 STAT. 2214

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 2215]]
122 STAT. 2215

``(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 [NOTE: Agricultural Security Improvement Act of 2008. 7 USC
8901 note.]  B--Agricultural 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 2216]]
122 STAT. 2216

(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 2217]]
122 STAT. 2217

(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 2218]]
122 STAT. 2218

(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 2219]]
122 STAT. 2219

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 2220]]
122 STAT. 2220

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 2221]]
122 STAT. 2221

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 2222]]
122 STAT. 2222

``(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 2223]]
122 STAT. 2223

(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 2224]]
122 STAT. 2224

(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 2225]]
122 STAT. 2225

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: Web site.]  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 2226]]
122 STAT. 2226

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 2227]]
122 STAT. 2227

(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) [NOTE: Deadlines.]  are located less than 20
miles from another office of the Farm Service Agency;
and
(B) have two or fewer permanent full-time employees.
(2) Notice.--After the period referred to in subsection
(a)(1), the Secretary of Agriculture may not close a county or
field office of the Farm Service Agency unless--
(A) not later than 30 days after the Secretary
proposes to close such office, the Secretary holds a
public meeting regarding the proposed closure in the
county in which such office is located; and
(B) after the public meeting referred to in
subparagraph (A), but not less than 90 days before the
date on which the Secretary approves the closure of such
office, the Secretary notifies the Committee on
Agriculture and the Committee on Appropriations of the
House of Representatives, the Committee on Agriculture,
Nutrition, and Forestry and the Committee on
Appropriations of the Senate, each Senator representing
the State in which the office proposed to be closed is
located, and the member of the House of Representatives
who represents the Congressional district in which the
office proposed to be closed is located of the proposed
closure of such office.
SEC. 14213. USDA GRADUATE SCHOOL.

(a) In General.--Section 921 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 2279b) is amended--
(1) in the heading, to read as follows:

[[Page 2228]]
122 STAT. 2228

``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 2229]]
122 STAT. 2229

(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 2230]]
122 STAT. 2230

``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 2231]]
122 STAT. 2231

``(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 2232]]
122 STAT. 2232

``(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 2233]]
122 STAT. 2233

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 2234]]
122 STAT. 2234

``(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 2235]]
122 STAT. 2235

``(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 2236]]
122 STAT. 2236

``(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 2237]]
122 STAT. 2237

``(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 2238]]
122 STAT. 2238

``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 2239]]
122 STAT. 2239

``(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 2240]]
122 STAT. 2240

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 2241]]
122 STAT. 2241



``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 2242]]
122 STAT. 2242

``(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 2243]]
122 STAT. 2243

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 2244]]
122 STAT. 2244

``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) [NOTE: 40 USC 15101 note.]  Effective Date.--This section, and
the amendments made by this section, shall take effect on the first day
of the first fiscal year beginning after the date of the enactment of
this Act.
SEC. 14218. [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 2245]]
122 STAT. 2245

``(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 2246]]
122 STAT. 2246

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 2247]]
122 STAT. 2247

``(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 2248]]
122 STAT. 2248

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 2249]]
122 STAT. 2249

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 2250]]
122 STAT. 2250

``(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 2251]]
122 STAT. 2251

``(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 2252]]
122 STAT. 2252

``(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 2253]]
122 STAT. 2253

``(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 2254]]
122 STAT. 2254

``(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 2255]]
122 STAT. 2255

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 2256]]
122 STAT. 2256

``(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 2257]]
122 STAT. 2257

``(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 2258]]
122 STAT. 2258

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 2259]]
122 STAT. 2259

``(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 2260]]
122 STAT. 2260

``(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 2261]]
122 STAT. 2261

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 2262]]
122 STAT. 2262

``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 2263]]
122 STAT. 2263

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 2264]]
122 STAT. 2264

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 2265]]
122 STAT. 2265

``(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 2266]]
122 STAT. 2266

``(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 2267]]
122 STAT. 2267

``(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 2268]]
122 STAT. 2268

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 2269]]
122 STAT. 2269

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 2270]]
122 STAT. 2270

``(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 2271]]
122 STAT. 2271

``(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 2272]]
122 STAT. 2272

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 2273]]
122 STAT. 2273

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 2274]]
122 STAT. 2274

(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 2275]]
122 STAT. 2275

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 2276]]
122 STAT. 2276

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) [NOTE: 26
USC 40.]  is amended by striking ``Producer'' in the
heading and inserting ``Small ethanol producer''.
(B) Subparagraph (E) of section 40(d)(3), as
redesignated by paragraph (1), is amended by striking
``or (C)'' and inserting ``(C), or (D)''.

(d) Biofuel Produced in the United States.--Section 40(d) is amended
by adding at the end the following new paragraph:
``(6) Special rule for cellulosic biofuel producer credit.--
No cellulosic biofuel producer credit shall be determined under
subsection (a) with respect to any cellulosic biofuel unless
such cellulosic biofuel is produced in the United States and
used as a fuel in the United States. For purposes of this
subsection, the term `United States' includes any possession of
the United States.''.

(e) Waiver of Credit Limit for Cellulosic Biofuel Production by
Small Ethanol Producers.--Section 40(b)(4)(C) is amended by inserting
``(determined without regard to any qualified cellulosic biofuel
production)'' after ``15,000,000 gallons''.
(f) Denial of Double Benefit.--
(1) Biodiesel.--Paragraph (1) of section 40A(d) is amended
by adding at the end the following new flush sentence:
``Such term shall not include any liquid with respect to which a
credit may be determined under section 40.''.
(2) Renewable diesel.--Paragraph (3) of section 40A(f) is
amended by adding at the end the following new flush sentence:
``Such term shall not include any liquid with respect to which a
credit may be determined under section 40.''.

(g) [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 2277]]
122 STAT. 2277

(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 2278]]
122 STAT. 2278

``(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 2279]]
122 STAT. 2279

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 2280]]
122 STAT. 2280

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 2281]]
122 STAT. 2281

``(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 2282]]
122 STAT. 2282

``(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 2283]]
122 STAT. 2283

(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 2284]]
122 STAT. 2284

(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 2285]]
122 STAT. 2285

(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
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 2286]]
122 STAT. 2286

``(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 2287]]
122 STAT. 2287

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 2288]]
122 STAT. 2288

``(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 [NOTE: 42 USC 412.]
212 of such Act is amended--
(A) in subsection (b), by striking ``For'' and
inserting ``Except as provided in subsection (c), for'';
and
(B) by adding at the end the following new
subsection:

``(c) For the purpose of determining average indexed monthly
earnings, average monthly wage, and quarters of coverage in the case of
any individual who elects the option described in clause (ii) or (iv) in
the matter following section 211(a)(16) for any taxable year that does
not begin with or during a particular calendar year and end with or
during such year, the self-employment income of such individual deemed
to be derived during such taxable year shall be allocated to the two
calendar years, portions of which are included within such taxable year,
in the same proportion to the total of such deemed self-employment
income as the sum of the amounts applicable under section 213(d) for the
calendar quarters ending with or within each such calendar year bears to
the lower limit for such taxable year specified in section 211(k)(1).''.
(c) [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 2289]]
122 STAT. 2289

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 2290]]
122 STAT. 2290

``(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 2291]]
122 STAT. 2291

(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 2292]]
122 STAT. 2292

(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 2293]]
122 STAT. 2293

(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 2294]]
122 STAT. 2294

(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 2295]]
122 STAT. 2295

``(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 2296]]
122 STAT. 2296

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 2297]]
122 STAT. 2297

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 2298]]
122 STAT. 2298

(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 2299]]
122 STAT. 2299

(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 2300]]
122 STAT. 2300

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
amended [NOTE: 19 USC 2703a.]  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 2301]]
122 STAT. 2301

``(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 2302]]
122 STAT. 2302

``(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 2303]]
122 STAT. 2303

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 2304]]
122 STAT. 2304

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 2305]]
122 STAT. 2305

``(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 2306]]
122 STAT. 2306

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 2307]]
122 STAT. 2307

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 2308]]
122 STAT. 2308

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 2309]]
122 STAT. 2309

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 2310]]
122 STAT. 2310

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 2311]]
122 STAT. 2311

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)).
(4) Transaction value of the imported merchandise.--The term
``transaction value of the imported merchandise'' has

[[Page 2312]]
122 STAT. 2312

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.

June 18, 2008.

The House of Representatives having proceeded to reconsider the bill
(H.R. 6124) entitled ``An Act to provide for the continuation of
agricultural and other programs of the Department of Agriculture 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 2313]]
122 STAT. 2313

IN THE SENATE OF THE UNITED STATES,

June 18, 2008.

The Senate having proceeded to reconsider the bill (H.R. 6124)
entitled ``An Act to provide for the continuation of agricultural and
other programs of the Department of Agriculture 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. 6124 (S. 2302):
---------------------------------------------------------------------------

SENATE REPORTS: No. 110-220 accompanying S. 2302 (Comm. on Agriculture,
Nutrition, and Forestry).
CONGRESSIONAL RECORD, Vol. 154 (2008):
May 22, considered and passed House.
June 5, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 44 (2008):
June 18, Presidential veto message.
CONGRESSIONAL RECORD, Vol. 154 (2008):
June 18, House and Senate overrode veto.