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Food, Conservation, and Energy Act of 2008 (Public Law 110-246, 122 Stat. 1651), United States of America

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Main text(s) Main text(s) English Food, Conservation, and Energy Act of 2008 (Public Law 110-246, 122 Stat. 1651)        

122 STAT. 1651PUBLIC LAW 110–246—JUNE 18, 2008

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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Food, Con- servation, 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 commod-

ities. 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 cot-

ton. 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.

Food, Conservation, and Energy Act of 2008. 7 USC 8701 note.

June 18, 2008 [H.R. 6124]

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122 STAT. 1652 PUBLIC LAW 110–246—JUNE 18, 2008

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 com-

modity 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 con-

servation. 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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122 STAT. 1653PUBLIC LAW 110–246—JUNE 18, 2008

Sec. 2111. Conservation reserve program transition incentives for beginning farm- ers 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 pro-

gram. 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 wet-

lands 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 pro-

grams. 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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122 STAT. 1654 PUBLIC LAW 110–246—JUNE 18, 2008

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 dis-

tribution 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. 1655PUBLIC LAW 110–246—JUNE 18, 2008

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 supple-

mental 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 PUBLIC LAW 110–246—JUNE 18, 2008

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, refur-

bishing, and servicing of individually-owned household water well sys- tems 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. 1657PUBLIC LAW 110–246—JUNE 18, 2008

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 fellow-

ships 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 indus-

trial hydrocarbons from agricultural commodities and forest products. Sec. 7111. Policy research centers. Sec. 7112. Education grants to Alaska Native-serving institutions and Native Ha-

waiian-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 PUBLIC LAW 110–246—JUNE 18, 2008

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 pro-

gram. 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 ex-

tension 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 pro-

gram. 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. 1659PUBLIC LAW 110–246—JUNE 18, 2008

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 bac-

teria. 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 partner-

ship 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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Sec. 8402. Hispanic-serving institution agricultural land national resources leader- ship 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 pur-

chase 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.

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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 oper-

ating 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 dis-

aster 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.

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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 Agri-

culture agencies. Sec. 14004. Outreach and technical assistance for socially disadvantaged farmers or

ranchers. Sec. 14005. Accurate documentation in the Census of Agriculture and certain stud-

ies. 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 am-

monia. 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.

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Sec. 14212. Prohibition on closure or relocation of county offices for the Farm Serv- ice 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 corpora-

tions. 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.

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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 compli-

ance 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 im-

ported merchandise.

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ‘‘Secretary’’ means the Secretary of Agri- culture. SEC. 3. 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. 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):

7 USC 8701 note.

7 USC 8701 note.

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122 STAT. 1665PUBLIC LAW 110–246—JUNE 18, 2008

(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 Secu- rity and Rural Investment Act of 2002 (7 U.S.C. 7911) as in effect on September 30, 2007, subject to any adjust- ment 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 deter- mine 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 experi- mental 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

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122 STAT. 1666 PUBLIC LAW 110–246—JUNE 18, 2008

(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 estab- lished 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) 11⁄8-inch upland cotton and for Middling (M) 13⁄32-inch upland cotton exceeds the difference in the applicable premiums for comparable international qualities.

Subtitle A—Direct Payments and Counter- Cyclical Payments

SEC. 1101. BASE ACRES.

(a) ADJUSTMENT OF BASE ACRES.— (1) IN GENERAL.—The Secretary shall provide for an adjust-

ment, 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

7 USC 8711.

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beginning on October 1, 2007, and ending on the date of enactment of this Act.

(B) Cropland is released from coverage under a con- servation 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 Secu- rity 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 pay- ments and counter-cyclical payments with respect to the acre- age 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 Sec- retary 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 conserva-

tion 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.

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122 STAT. 1668 PUBLIC LAW 110–246—JUNE 18, 2008

(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 agricul- tural use. (B) REQUIREMENT.—The Secretary shall establish

procedures to identify land described in subparagraph (A). (3) REVIEW AND REPORT.—Each year, to ensure, to the

maximum extent practicable, that payments are received only by producers, the Secretary shall submit to Congress a report that describes the results of the actions taken under paragraph (2). (d) TREATMENT OF FARMS WITH LIMITED BASE ACRES.—

(1) PROHIBITION ON PAYMENTS.—Except as provided in paragraph (2) and notwithstanding any other provision of this title, a producer on a farm may not receive direct payments, counter-cyclical payments, or average crop revenue election pay- ments 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.

Procedures.

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122 STAT. 1669PUBLIC LAW 110–246—JUNE 18, 2008

SEC. 1102. PAYMENT YIELDS.

(a) ESTABLISHMENT AND PURPOSE.—For the purpose of making direct payments and counter-cyclical payments under this subtitle, the Secretary shall provide for the establishment of a yield for each farm for any designated oilseed or eligible pulse crop for which a payment yield was not established under section 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912) in accordance with this section.

(b) PAYMENT YIELDS FOR DESIGNATED OILSEEDS AND ELIGIBLE PULSE CROPS.—

(1) DETERMINATION OF AVERAGE YIELD.—In the case of des- ignated 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 aver- age yield for the designated oilseed or pulse crop for the 1998 through 2001 crops. (B) NO NATIONAL AVERAGE YIELD INFORMATION AVAIL-

ABLE.—To the extent that national average yield informa- tion for a designated oilseed or pulse crop is not available, the Secretary shall use such information as the Secretary determines to be fair and equitable to establish a national average yield under this section. (3) USE OF PARTIAL COUNTY AVERAGE YIELD.—If the yield

per planted acre for a crop of a designated oilseed or pulse crop for a farm for any of the 1998 through 2001 crop years was less than 75 percent of the county yield for that designated oilseed or pulse crop, the Secretary shall assign a yield for that crop year equal to 75 percent of the county yield for the purpose of determining the average under paragraph (1).

(4) NO HISTORIC YIELD DATA AVAILABLE.—In the case of establishing yields for designated oilseeds and eligible pulse crops, if historic yield data is not available, the Secretary shall use the ratio for dry peas calculated under paragraph (2)(A)(ii) in determining the yields for designated oilseeds and eligible pulse crops, as determined to be fair and equitable by the Secretary.

SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

(a) PAYMENT REQUIRED.—For each of the 2008 through 2012 crop years of each covered commodity (other than pulse crops), the Secretary shall make direct payments to producers on farms for which base acres and payment yields are established.

(b) PAYMENT RATE.—Except as provided in section 1105, the payment rates used to make direct payments with respect to covered commodities for a crop year shall be as follows:

(1) Wheat, $0.52 per bushel.

7 USC 8713.

7 USC 8712.

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(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 com- modity 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 pro- ducers 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

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Secretary the applicable amount of the advance payment, as determined by the Secretary.

SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

(a) PAYMENT REQUIRED.—Except as provided in section 1105, for each of the 2008 through 2012 crop years for each covered commodity, the Secretary shall make counter-cyclical payments to producers on farms for which payment yields and base acres are established with respect to the covered commodity if the Secretary determines that the effective price for the covered commodity is less than the target price for the covered commodity.

(b) EFFECTIVE PRICE.— (1) COVERED COMMODITIES OTHER THAN RICE.—Except as

provided in paragraph (2), for purposes of subsection (a), the effective price for a covered commodity is equal to the sum of the following:

(A) The higher of the following: (i) The national average market price received by

producers during the 12-month marketing year for the covered commodity, as determined by the Secretary.

(ii) The national average loan rate for a marketing assistance loan for the covered commodity in effect for the applicable period under subtitle B. (B) The payment rate in effect for the covered com-

modity 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.

7 USC 8714.

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(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 mar- keting 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

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give producers on a farm the option to receive partial payments of the counter-cyclical payment projected to be made for that crop of the covered commodity.

(B) ELECTION.— (i) IN GENERAL.—The Secretary shall allow pro-

ducers 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 com- modity.

(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 com- modity. (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 pay- ment to be made for the covered commodity for that crop year.

SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM.

(a) AVAILABILITY AND ELECTION OF ALTERNATIVE APPROACH.— (1) AVAILABILITY OF AVERAGE CROP REVENUE ELECTION PAY-

MENTS.—As an alternative to receiving counter-cyclical pay- ments 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

7 USC 8715.

Deadlines.

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122 STAT. 1674 PUBLIC LAW 110–246—JUNE 18, 2008

election to instead receive average crop revenue election (referred to in this section as ‘‘ACRE’’) payments under this section for the initial crop year for which the election is made through the 2012 crop year.

(2) LIMITATION.— (A) IN GENERAL.—The total number of planted acres

for which the producers on a farm may receive ACRE payments under this section may not exceed the total base acreage for all covered commodities and peanuts on the farm.

(B) ELECTION.—If the total number of planted acres to all covered commodities and peanuts of the producers on a farm exceeds the total base acreage of the farm, the producers on the farm may choose which planted acres to enroll in the program under this section. (3) ELECTION; TIME FOR ELECTION.—

(A) IN GENERAL.—The Secretary shall provide notice to producers regarding the opportunity to make each of the elections described in paragraph (1).

(B) NOTICE REQUIREMENTS.—The notice shall include— (i) notice of the opportunity of the producers on

a farm to make the election; and (ii) information regarding the manner in which

the election must be made and the time periods and manner in which notice of the election must be sub- mitted to the Secretary.

(4) ELECTION DEADLINE.—Within the time period and in the manner prescribed pursuant to paragraph (3), all of the producers on a farm shall submit to the Secretary notice of an election made under paragraph (1).

(5) EFFECT OF FAILURE TO MAKE ELECTION.—If all of the producers on a farm fail to make an election under paragraph (1), make different elections under paragraph (1), or fail to timely notify the Secretary of the election made, as required by paragraph (4), all of the producers on the farm shall be deemed to have made the election to receive counter-cyclical payments under section 1104 or 1304 for all covered commod- ities 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 pay- ments 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 accord- ance 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 deter- mined under subsection (c); is less than

Notice.

Notice.

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(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 pay- ments 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 deter- mined 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 pro- ducers 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 guar- antee 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

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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 deter- mined 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 com- modity 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 deter- mined under subparagraph (A) is an unrepresentative aver- age 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 com- modity 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 Sec- retary.

(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 guar- antee 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 deter- mined by multiplying—

(1) the actual yield for the covered commodity or peanuts of the producers on the farm; and

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(2) the national average market price for the crop year for the covered commodity or peanuts determined under sub- section (c)(3). (f) FARM ACRE BENCHMARK REVENUE.—For purposes of sub-

section (b)(2)(B)(ii), the farm ACRE benchmark revenue for the crop year for a covered commodity or peanuts shall equal the sum obtained by adding—

(1) the amount determined by multiplying— (A) the average yield per planted acre for the covered

commodity or peanuts of the producers on the farm for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; and

(B) the ACRE program guarantee price for the applicable crop year for the covered commodity or peanuts in a State determined under subsection (d)(3); and (2) the amount of the per acre crop insurance premium

required to be paid by the producers on the farm for the applicable crop year for the covered commodity or peanuts on the farm. (g) PAYMENT AMOUNT.—If ACRE payments are required to

be paid for any of the 2009 through 2012 crop years of a covered commodity or peanuts under this section, the amount of the ACRE payment to be paid to the producers on the farm for the crop year under this section shall be equal to the product obtained by multiplying—

(1) the lesser of— (A) the difference between—

(i) the ACRE program guarantee for the crop year for the covered commodity or peanuts in the State determined under subsection (d); and

(ii) the actual State revenue from the crop year for the covered commodity or peanuts in the State determined under subsection (c); and (B) 25 percent of the ACRE program guarantee for

the crop year for the covered commodity or peanuts in the State determined under subsection (d); (2)(A) for each of the 2009 through 2011 crop years, 83.3

percent of the acreage planted or considered planted to the covered commodity or peanuts for harvest on the farm in the crop year; and

(B) for the 2012 crop year, 85 percent of the acreage planted or considered planted to the covered commodity or peanuts for harvest on the farm in the crop year; and

(3) the quotient obtained by dividing— (A) the average yield per planted acre for the covered

commodity or peanuts of the producers on the farm for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; by

(B) the benchmark State yield for the crop year, as determined under subsection (d)(2).

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

(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— (1) REQUIREMENTS.—Before the producers on a farm may

receive direct payments, counter-cyclical payments, or average crop revenue election payments with respect to the farm, the

7 USC 8716.

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producers shall agree, during the crop year for which the pay- ments are made and in exchange for the payments—

(A) to comply with applicable conservation require- ments 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 non- agricultural 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 agricul- tural 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 compli- ance with the requirements of paragraph (1).

(3) MODIFICATION.—At the request of the transferee or owner, the Secretary may modify the requirements of this sub- section 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 pay- ment 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

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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 pro- ducers on a farm for an inaccurate acreage or production report unless the producers on the farm knowingly and willfully fal- sified the acreage or production report. (d) TENANTS AND SHARECROPPERS.—In carrying out this sub-

title, 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 aver- age crop revenue election payments among the producers on a farm on a fair and equitable basis.

SEC. 1107. PLANTING FLEXIBILITY.

(a) PERMITTED CROPS.—Subject to subsection (b), any com- modity 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 deter- mines has an established planting history of a specific agricul- tural 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.

7 USC 8717.

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(d) PLANTING TRANSFERABILITY PILOT PROJECT.— (1) PILOT PROJECT AUTHORIZED.—Notwithstanding para-

graphs (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 toma- toes 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 proc- essing;

(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 com- modity 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 subpara- graph (A) shall include a determination as to whether—

(i) producers of fresh fruits and vegetables are being negatively impacted; and

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122 STAT. 1681PUBLIC LAW 110–246—JUNE 18, 2008

(ii) existing production capacities are being sup- planted. (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, Nutri- tion, and Forestry of the Senate a report that describes the results of the evaluation.

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

(a) CALCULATION METHOD.—Subject to subsections (b) and (c), for the purposes of determining the amount of the counter-cyclical payments to be paid to the producers on a farm for long grain rice and medium grain rice under section 1104, the base acres of rice on the farm shall be apportioned using the 4-year average of the percentages of acreage planted in the applicable State to long grain rice and medium grain rice during the 2003 through 2006 crop years, as determined by the Secretary.

(b) PRODUCER ELECTION.—As an alternative to the calculation method described in subsection (a), the Secretary shall provide producers on a farm the opportunity to elect to apportion rice base acres on the farm using the 4-year average of—

(1) the percentages of acreage planted on the farm to long grain rice and medium grain rice during the 2003 through 2006 crop years;

(2) the percentages of any acreage on the farm that the producers were prevented from planting to long grain rice and medium grain rice during the 2003 through 2006 crop years because of drought, flood, other natural disaster, or other condi- tion beyond the control of the producers, as determined by the Secretary; and

(3) in the case of a crop year for which a producer on a farm elected not to plant to long grain and medium grain rice during the 2003 through 2006 crop years, the percentages of acreage planted in the applicable State to long grain rice and medium grain rice, as determined by the Secretary. (c) LIMITATION.—In carrying out this section, the Secretary

shall use the same total base acres, payment acres, and payment yields established with respect to rice under sections 1101 and 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7912), as in effect on September 30, 2007, subject to any adjustment under section 1101 of this Act.

SEC. 1109. PERIOD OF EFFECTIVENESS.

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

Subtitle B—Marketing Assistance Loans and Loan Deficiency Payments

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

(a) NONRECOURSE LOANS AVAILABLE.— (1) AVAILABILITY.—For each of the 2008 through 2012 crops

of each loan commodity, the Secretary shall make available

7 USC 8731.

7 USC 8719.

7 USC 8718.

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122 STAT. 1682 PUBLIC LAW 110–246—JUNE 18, 2008

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 pre- scribed 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 REQUIRE- MENTS.—As a condition of the receipt of a marketing assistance loan under subsection (a), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.) during the term of the loan.

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

(a) 2008 CROP YEAR.—For purposes of the 2008 crop year, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:

(1) In the case of wheat, $2.75 per bushel. (2) In the case of corn, $1.95 per bushel. (3) In the case of grain sorghum, $1.95 per bushel. (4) In the case of barley, $1.85 per bushel. (5) In the case of oats, $1.33 per bushel. (6) In the case of base quality of upland cotton, $0.52

per pound. (7) In the case of extra long staple cotton, $0.7977 per

pound. (8) In the case of long grain rice, $6.50 per hundredweight. (9) In the case of medium grain rice, $6.50 per hundred-

weight. (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 hundred-

weight. (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

7 USC 8732.

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122 STAT. 1683PUBLIC LAW 110–246—JUNE 18, 2008

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 hundred-

weight. (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 hundred-

weight. (15) In the case of large chickpeas, $11.28 per hundred-

weight. (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 hundred-

weight. (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.

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122 STAT. 1684 PUBLIC LAW 110–246—JUNE 18, 2008

(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 hundred-

weight. (15) In the case of large chickpeas, $11.28 per hundred-

weight. (16) In the case of graded wool, $1.15 per pound. (17) In the case of nongraded wool, $0.40 per pound. (18) In the case of mohair, $4.20 per pound. (19) In the case of honey, $0.69 per pound.

(d) SINGLE COUNTY LOAN RATE FOR OTHER OILSEEDS.—The Secretary shall establish a single loan rate in each county for each kind of other oilseeds described in subsections (a)(11), (b)(11), and (c)(11).

SEC. 1203. TERM OF LOANS.

(a) TERM OF LOAN.—In the case of each loan commodity, a marketing assistance loan under section 1201 shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.

(b) EXTENSIONS PROHIBITED.—The Secretary may not extend the term of a marketing assistance loan for any loan commodity.

SEC. 1204. REPAYMENT OF LOANS.

(a) GENERAL RULE.—The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for a loan commodity (other than upland cotton, long grain rice, medium grain rice, extra long staple cotton, and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of—

(1) the loan rate established for the commodity under sec- tion 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 bene- fits 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 com-

modity by the Federal Government; (C) minimize the cost incurred by the Federal Govern-

ment in storing the commodity;

7 USC 8734.

7 USC 8733.

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122 STAT. 1685PUBLIC LAW 110–246—JUNE 18, 2008

(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 sec- tion 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or

(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section. (c) REPAYMENT RATES FOR EXTRA LONG STAPLE COTTON.—

Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

(d) PREVAILING WORLD MARKET PRICE.—For purposes of this section and section 1207, the Secretary shall prescribe by regula- tion—

(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 Mid- dling (M) 13⁄32-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 begin-

ning on the date of enactment of this Act and ending on July 31, 2013, if the Secretary determines the adjust- ment 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 competi- tively, both domestically and internationally; and

Regulations.

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122 STAT. 1686 PUBLIC LAW 110–246—JUNE 18, 2008

(iv) ensure an appropriate transition between cur- rent-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 sec- tion 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 infrastruc- ture, the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans under section 1201 for a loan commodity.

(2) DURATION.—Any adjustment made under paragraph (1) in the repayment rate for marketing assistance loans for a loan commodity shall be in effect on a short-term and temporary basis, as determined by the Secretary.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— (1) IN GENERAL.—Except as provided in subsection (d), the

Secretary may make loan deficiency payments available to pro- ducers on a farm that, although eligible to obtain a marketing assistance loan under section 1201 with respect to a loan com- modity, 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

7 USC 8735.

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pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under sec- tion 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 pro- ducers 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 com- modity or commodity referred to in subsection (a)(2) shall be com- puted 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 pay- ment 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 pay- ment.

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

(a) ELIGIBLE PRODUCERS.— (1) IN GENERAL.—Effective for the 2008 through 2012 crop

years, in the case of a producer that would be eligible for a loan deficiency payment under section 1205 for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo

7 USC 8736.

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122 STAT. 1688 PUBLIC LAW 110–246—JUNE 18, 2008

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 har- vesting 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 com- modity, an appropriate yield established by the Sec- retary 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 pay- ment 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 har- vesting 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 estab- lished by the Secretary in a manner consistent with section 1102 of the Farm Security and Rural Invest- ment 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

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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 NON- INSURED CROP ASSISTANCE.—A 2008 through 2012 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

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

(a) SPECIAL IMPORT QUOTA.— (1) DEFINITION OF SPECIAL IMPORT QUOTA.—In this sub-

section, the term ‘‘special import quota’’ means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

(2) ESTABLISHMENT.— (A) IN GENERAL.—The President shall carry out an

import quota program during the period beginning on the date of enactment of this Act through July 31, 2013, as provided in this subsection.

(B) PROGRAM REQUIREMENTS.—Whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 13⁄32-inch cotton, delivered to a definable and significant international market, as deter- mined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota. (3) QUANTITY.—The quota shall be equal to 1 week’s

consumption of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which data are available.

(4) APPLICATION.—The quota shall apply to upland cotton purchased not later than 90 days after the date of the Sec- retary’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

Deadlines.

President. Time period.

7 USC 8737.

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122 STAT. 1690 PUBLIC LAW 110–246—JUNE 18, 2008

(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 Depart- ment of Agriculture, and the Department of the Treasury—

(i) the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;

(ii) production of the current crop; and (iii) imports to the latest date available during

the marketing year. (B) DEMAND.—The term ‘‘demand’’ means—

(i) the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which data are available; and

(ii) the larger of— (I) average exports of upland cotton during

the preceding 6 marketing years; or (II) cumulative exports of upland cotton plus

outstanding export sales for the marketing year in which the quota is established.

(C) LIMITED GLOBAL IMPORT QUOTA.—The term ‘‘limited global import quota’’ means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota. (2) PROGRAM.—The President shall carry out an import

quota program that provides that whenever the Secretary deter- mines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the des- ignated 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 esti- mated 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.

President.

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122 STAT. 1691PUBLIC LAW 110–246—JUNE 18, 2008

(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 estab-

lished 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 assist- ance to domestic users of upland cotton in the form of payments for all documented use of that upland cotton during the previous monthly period regardless of the origin of the upland cotton.

(2) VALUE OF ASSISTANCE.— (A) BEGINNING PERIOD.—During the period beginning

on August 1, 2008, and ending on July 31, 2012, the value of the assistance provided under paragraph (1) shall be 4 cents per pound.

(B) SUBSEQUENT PERIOD.—Effective beginning on August 1, 2012, the value of the assistance provided under paragraph (1) shall be 3 cents per pound. (3) ALLOWABLE PURPOSES.—Economic adjustment assist-

ance 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 deter- mines, 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 sub- section for a period of 1 year following the determination of the Secretary.

Effective date.

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122 STAT. 1692 PUBLIC LAW 110–246—JUNE 18, 2008

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

(a) COMPETITIVENESS PROGRAM.—Notwithstanding any other provision of law, during the period beginning on the date of enact- ment of this Act through July 31, 2013, the Secretary shall carry out a program—

(1) to maintain and expand the domestic use of extra long staple cotton produced in the United States;

(2) to increase exports of extra long staple cotton produced in the United States; and

(3) to ensure that extra long staple cotton produced in the United States remains competitive in world markets. (b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under the program,

the Secretary shall make payments available under this section whenever—

(1) for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and

(2) the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 134 percent of the loan rate for extra long staple cotton. (c) ELIGIBLE RECIPIENTS.—The Secretary shall make payments

available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States that enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.

(d) PAYMENT AMOUNT.—Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4- week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period. SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE

FEED GRAINS AND SEED COTTON.

(a) HIGH MOISTURE FEED GRAINS.— (1) DEFINITION OF HIGH MOISTURE STATE.—In this sub-

section, 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, cer-

tified commercial scale, including a licensed warehouse,

7 USC 8739.

Effective date. Termination date.

7 USC 8738.

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122 STAT. 1693PUBLIC LAW 110–246—JUNE 18, 2008

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 cer- tified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation; (C) certify that they were the owners of the feed grain

at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact har- vested 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 dead- lines established by the Secretary. (3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—A loan under

this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying—

(A) the acreage of the corn or grain sorghum in a high moisture state harvested on the producer’s farm; by

(B) the lower of the farm program payment yield used to make counter-cyclical payments under subtitle A or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.

(b) RECOURSE LOANS AVAILABLE FOR SEED COTTON.—For each of the 2008 through 2012 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.

(c) REPAYMENT RATES.—Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

SEC. 1210. ADJUSTMENTS OF LOANS.

(a) ADJUSTMENT AUTHORITY.—Subject to subsection (e), the Sec- retary 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 sub- section (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

7 USC 8740.

Certification.

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122 STAT. 1694 PUBLIC LAW 110–246—JUNE 18, 2008

national average loan rate, if those loan rates do not result in an increase in outlays.

(2) PROHIBITION.—Adjustments under this subsection shall not result in an increase in the national average loan rate for any year. (d) ADJUSTMENT IN LOAN RATE FOR COTTON.—

(1) IN GENERAL.—The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors.

(2) REVISIONS TO QUALITY ADJUSTMENTS FOR UPLAND COTTON.—

(A) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, the Secretary shall imple- ment 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 subpara- graph (A) shall include—

(i) the elimination of warehouse location differen- tials;

(ii) the establishment of differentials for the var- ious 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 addi-

tion to spot market price data, that would enhance the accuracy of the price information used in deter- mining quality adjustments under this subsection;

(ii) adjustments in the premiums or discounts asso- ciated 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 deter- mines 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 adjust- ments) 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.

Deadline.

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122 STAT. 1695PUBLIC LAW 110–246—JUNE 18, 2008

(4) REVIEW OF ADJUSTMENTS.—The Secretary may review the operation of the upland cotton quality adjustments imple- mented 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 para- graph (2)(B); or

(B) revoking or revising any actions taken or author- ized to be taken under paragraph (2)(C).

(e) RICE.—The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields).

Subtitle C—Peanuts

SEC. 1301. DEFINITIONS.

In this subtitle: (1) BASE ACRES FOR PEANUTS.—

(A) IN GENERAL.—The term ‘‘base acres for peanuts’’ means the number of acres assigned to a farm pursuant to section 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7952), as in effect on September 30, 2007, subject to any adjustment under section 1302 of this Act.

(B) COVERED COMMODITIES.—The term ‘‘base acres’’, with respect to a covered commodity, has the meaning given the term in section 1101. (2) COUNTER-CYCLICAL PAYMENT.—The term ‘‘counter-

cyclical payment’’ means a payment made to producers on a farm under section 1304.

(3) DIRECT PAYMENT.—The term ‘‘direct payment’’ means a direct payment made to producers on a farm under section 1303.

(4) EFFECTIVE PRICE.—The term ‘‘effective price’’ means the price calculated by the Secretary under section 1304 for peanuts to determine whether counter-cyclical payments are required to be made under that section for a crop year.

(5) PAYMENT ACRES.—The term ‘‘payment acres’’ means, in the case of direct payments and counter-cyclical payments—

(A) except as provided in subparagraph (B), 85 percent of the base acres of peanuts on a farm on which direct payments or counter-cyclical payments are made; and

(B) in the case of direct payments for each of the 2009 through 2011 crop years, 83.3 percent of the base acres for peanuts on a farm on which direct payments are made. (6) PAYMENT YIELD.—The term ‘‘payment yield’’ means the

yield established for direct payments and the yield established for counter-cyclical payments under section 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7952), as in effect on September 30, 2007, for a farm for peanuts.

(7) PRODUCER.— (A) IN GENERAL.—The term ‘‘producer’’ means an

owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop on a farm and is entitled to share in the crop available for marketing

7 USC 8751.

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122 STAT. 1696 PUBLIC LAW 110–246—JUNE 18, 2008

from the farm, or would have shared had the crop been produced.

(B) HYBRID SEED.—In determining whether a grower of hybrid seed is a producer, the Secretary shall—

(i) not take into consideration the existence of a hybrid seed contract; and

(ii) ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this subtitle.

(8) STATE.—The term ‘‘State’’ means— (A) a State; (B) the District of Columbia; (C) the Commonwealth of Puerto Rico; and (D) any other territory or possession of the United

States. (9) TARGET PRICE.—The term ‘‘target price’’ means the price

per ton of peanuts used to determine the payment rate for counter-cyclical payments.

(10) UNITED STATES.—The term ‘‘United States’’, when used in a geographical sense, means all of the States.

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

(a) ADJUSTMENT OF BASE ACREAGE FOR PEANUTS.— (1) IN GENERAL.—The Secretary shall provide for an adjust-

ment, 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 con- servation 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 Secu- rity 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

7 USC 8752.

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122 STAT. 1697PUBLIC LAW 110–246—JUNE 18, 2008

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 com- modity.

(B) Any acreage on the farm enrolled in the conserva- tion 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 agricul- tural use. (B) REQUIREMENT.—The Secretary shall establish

procedures to identify land described in subparagraph (A). Procedures.

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122 STAT. 1698 PUBLIC LAW 110–246—JUNE 18, 2008

(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 pay- ments if the sum of the base acres of the farm is 10 acres or less, as determined by the Secretary.

(2) EXCEPTIONS.—Paragraph (1) shall not apply to a farm owned by—

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

(B) a limited resource farmer or rancher, as defined by the Secretary. (3) DATA COLLECTION AND PUBLICATION.—The Secretary

shall— (A) collect and publish segregated data and survey

information about the farm profiles, utilization of land, and crop production; and

(B) perform an evaluation on the supply and price of fruits and vegetables based on the effects of suspension of base acres under this section.

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

(a) PAYMENT REQUIRED.—For each of the 2008 through 2012 crop years for peanuts, the Secretary shall make direct payments to the producers on a farm for which a payment yield and base acres for peanuts are established.

(b) PAYMENT RATE.—Except as provided in section 1105, the payment rate used to make direct payments with respect to peanuts for a crop year shall be equal to $36 per ton.

(c) PAYMENT AMOUNT.—The amount of the direct payment to be paid to the producers on a farm for peanuts for a crop year shall be equal to the product of the following:

(1) The payment rate specified in subsection (b). (2) The payment acres on the farm. (3) The payment yield for the farm.

(d) TIME FOR PAYMENT.— (1) IN GENERAL.—Except as provided in paragraph (2), in

the case of each of the 2008 through 2012 crop years, the Secretary may not make direct payments under this section before October 1 of the calendar year in which the crop is harvested.

(2) ADVANCE PAYMENTS.— (A) OPTION.—

(i) IN GENERAL.—At the option of the producers on a farm, the Secretary shall pay in advance up to 22 percent of the direct payment for peanuts for any of the 2008 through 2011 crop years to the pro- ducers on a farm.

(ii) 2008 CROP YEAR.—If the producers on a farm elect to receive advance direct payments under clause

7 USC 8753.

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122 STAT. 1699PUBLIC LAW 110–246—JUNE 18, 2008

(i) for peanuts for the 2008 crop year, as soon as practicable after the election, the Secretary shall make the advance direct payment to the producers on the farm. (B) MONTH.—

(i) SELECTION.—Subject to clauses (ii) and (iii), the producers on a farm shall select the month during which the advance payment for a crop year will be made.

(ii) OPTIONS.—The month selected may be any month during the period—

(I) beginning on December 1 of the calendar year before the calendar year in which the crop of peanuts is harvested; and

(II) ending during the month within which the direct payment would otherwise be made. (iii) CHANGE.—The producers on a farm may

change the selected month for a subsequent advance payment by providing advance notice to the Secretary.

(3) REPAYMENT OF ADVANCE PAYMENTS.—If a producer on a farm that receives an advance direct payment for a crop year ceases to be a producer on that farm, or the extent to which the producer shares in the risk of producing a crop changes, before the date the remainder of the direct payment is made, the producer shall be responsible for repaying the Secretary the applicable amount of the advance payment, as determined by the Secretary.

SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEA- NUTS.

(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 effec- tive 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

7 USC 8754.

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122 STAT. 1700 PUBLIC LAW 110–246—JUNE 18, 2008

peanuts, the amount of the counter-cyclical payment to be paid to the producers on a farm for that crop year shall be equal to the product of the following:

(1) The payment rate specified in subsection (d). (2) The payment acres on the farm. (3) The payment yield for the farm.

(f) TIME FOR PAYMENTS.— (1) GENERAL RULE.—Except as provided in paragraph (2),

if the Secretary determines under subsection (a) that counter- cyclical payments are required to be made under this section for a crop of peanuts, beginning October 1, or as soon as practicable after the end of the marketing year, the Secretary shall make the counter-cyclical payments for the crop.

(2) AVAILABILITY OF PARTIAL PAYMENTS.— (A) IN GENERAL.—If, before the end of the 12-month

marketing year, the Secretary estimates that counter- cyclical payments will be required under this section for a crop year, the Secretary shall give producers on a farm the option to receive partial payments of the counter- cyclical payment projected to be made for the crop.

(B) ELECTION.— (i) IN GENERAL.—The Secretary shall allow pro-

ducers 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 pay- ment to be made for that crop year.

Deadline.

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122 STAT. 1701PUBLIC LAW 110–246—JUNE 18, 2008

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

(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— (1) REQUIREMENTS.—Before the producers on a farm may

receive direct payments or counter-cyclical payments under this subtitle, or average crop revenue election payments under sec- tion 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 require- ments 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 commer- cial, 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 agricul- tural 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 compli- ance with the requirements of paragraph (1).

(3) MODIFICATION.—At the request of the transferee or owner, the Secretary may modify the requirements of this sub- section 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 pay- ment 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.—

7 USC 8755.

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122 STAT. 1702 PUBLIC LAW 110–246—JUNE 18, 2008

(1) IN GENERAL.—As a condition on the receipt of any benefits under this subtitle, the Secretary shall require pro- ducers 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 sub-

title, 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 aver- age crop revenue election payments under section 1105 among the producers on a farm on a fair and equitable basis.

SEC. 1306. PLANTING FLEXIBILITY.

(a) PERMITTED CROPS.—Subject to subsection (b), any com- modity 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 deter- mines has an established planting history of a specific agricul- tural 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

7 USC 8756.

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122 STAT. 1703PUBLIC LAW 110–246—JUNE 18, 2008

(B) direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such agricultural commodity.

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

(a) NONRECOURSE LOANS AVAILABLE.— (1) AVAILABILITY.—For each of the 2008 through 2012 crops

of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm.

(2) TERMS AND CONDITIONS.—The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b).

(3) ELIGIBLE PRODUCTION.—The producers on a farm shall be eligible for a marketing assistance loan under this subsection for any quantity of peanuts produced on the farm.

(4) OPTIONS FOR OBTAINING LOAN.—A marketing assistance loan under this subsection, and loan deficiency payments under subsection (e), may be obtained at the option of the producers on a farm through—

(A) a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or

(B) the Farm Service Agency. (5) STORAGE OF LOAN PEANUTS.—As a condition on the

Secretary’s approval of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—

(A) to provide such storage on a nondiscriminatory basis; and

(B) to comply with such additional requirements as the Secretary considers appropriate to accomplish the pur- poses of this section and promote fairness in the adminis- tration 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.

7 USC 8757.

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122 STAT. 1704 PUBLIC LAW 110–246—JUNE 18, 2008

(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 sub- section (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 domesti- cally and internationally.

(2) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT RATES.—

(A) ADJUSTMENT AUTHORITY.—In the event of a severe disruption to marketing, transportation, or related infra- structure, 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 subpara- graph (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 pro- ducers, 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

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122 STAT. 1705PUBLIC LAW 110–246—JUNE 18, 2008

(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 REQUIRE-

MENTS.—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 ADMINISTRA- TIVE EXPENSES.—The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subtitle only in a manner that is consistent with such activities in regard to other commodities. SEC. 1308. ADJUSTMENTS OF LOANS.

(a) ADJUSTMENT AUTHORITY.—The Secretary may make appro- priate adjustments in the loan rates for peanuts for differences in grade, type, quality, location, and other factors.

(b) MANNER OF ADJUSTMENT.—The adjustments under sub- section (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for peanuts will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subtitle and subtitles B, D, and E.

(c) ADJUSTMENT ON COUNTY BASIS.— (1) IN GENERAL.—Subject to paragraph (2), the Secretary

may establish loan rates for a crop of peanuts for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays.

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

Subtitle D—Sugar SEC. 1401. SUGAR PROGRAM.

(a) IN GENERAL.—Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended to read as follows: ‘‘SEC. 156. SUGAR PROGRAM.

‘‘(a) SUGARCANE.—The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to—

‘‘(1) 18.00 cents per pound for raw cane sugar for the 2008 crop year;

‘‘(2) 18.25 cents per pound for raw cane sugar for the 2009 crop year;

‘‘(3) 18.50 cents per pound for raw cane sugar for the 2010 crop year;

Loans.

7 USC 8758.

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122 STAT. 1706 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 begin- ning 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 Sec-

retary 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 administra- tive 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.—

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122 STAT. 1707PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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, con- vert 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 multi- plying—

‘‘(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 Sec-

retary. ‘‘(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 DISPOSI-

TION.— ‘‘(1) IN GENERAL.—Subject to subsection (d)(3), to the max-

imum extent practicable, the Secretary shall operate the pro- gram established under this section at no cost to the Federal Government by avoiding the forfeiture of sugar to the Com- modity Credit Corporation.

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122 STAT. 1708 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 bio- energy 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 proc- essor 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, distribu- tion, 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 Sec- retary, 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 prod- ucts.

‘‘(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—

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122 STAT. 1709PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 subpara-

graph (A) shall be published in each edition of the World Agricultural Supply and Demand Estimates. ‘‘(5) PENALTY.—Any person willfully failing or refusing to

furnish the information required to be reported by paragraph (1), (2), or (3), or furnishing willfully false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.

‘‘(6) MONTHLY REPORTS.—Taking into consideration the information received under this subsection, the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar. ‘‘(h) SUBSTITUTION OF REFINED SUGAR.—For purposes of Addi-

tional 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 substitut- able for the export of sugar and sugar-containing products under those programs.

‘‘(i) EFFECTIVE PERIOD.—This section shall be effective only for the 2008 through 2012 crops of sugar beets and sugarcane.’’.

(b) TRANSITION.—The Secretary shall make loans for raw cane sugar and refined beet sugar available for the 2007 crop year on the terms and conditions provided in section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), as in effect on the day before the date of enactment of this Act. SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL

SUGAR ORGANIZATION.

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

(a) DEFINITIONS.—Section 359a of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended—

(1) by redesignating paragraphs (1), (2), (3), and (4) as paragraphs (2), (4), (5), and (6), respectively;

(2) by inserting before paragraph (2) (as so redesignated) the following:

‘‘(1) HUMAN CONSUMPTION.—The term ‘human consump- tion’, 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—

Deadline. 7 USC 3602 note.

7 USC 7272 note.

Publication.

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‘‘(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 mar- keted during the crop year for which a loan is made under the loan program described in that subparagraph.’’.

(b) FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.—Section 359b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended to read as follows:

‘‘SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

‘‘(a) SUGAR ESTIMATES.— ‘‘(1) IN GENERAL.—Not later than August 1 before the begin-

ning 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—

Deadlines.

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122 STAT. 1711PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 consump- tion, derived from sugar cane, sugar beets, molasses, or sugar in the allotments established under paragraph (1) if the Sec- retary determines it to be appropriate for purposes of this part. ‘‘(c) COVERAGE OF ALLOTMENTS.—

‘‘(1) IN GENERAL.—The marketing allotments under this part shall apply to the marketing by processors of sugar intended for domestic human consumption that has been proc- essed 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 adminis- tered by the Secretary under section 9010 of the Farm Security and Rural Investment Act of 2002. ‘‘(3) REQUIREMENT.—The sale of sugar described in para-

graph (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 proc- essor of sugar beets or sugarcane shall market for domestic human consumption a quantity of sugar in excess of the alloca- tion 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 Corpora- tion 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 viola- tion.’’.

Deadline. Reports.

Applicability.

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122 STAT. 1712 PUBLIC LAW 110–246—JUNE 18, 2008

(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,

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122 STAT. 1713PUBLIC LAW 110–246—JUNE 18, 2008

the Secretary shall transfer that portion agreed upon by the buyer and seller.

‘‘(ii) APPLICATION OF ALLOCATION.—The assign- ment 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 ALLOCA-

TION.—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, corpora- tion, 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 indi- vidual, 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 cir- cumstances 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,

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122 STAT. 1714 PUBLIC LAW 110–246—JUNE 18, 2008

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 utiliza- tion 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 alloca- tion. ‘‘(iv) APPEALS.—Any decision made under this sub-

section may be appealed to the Secretary in accordance with section 359i.’’.

(e) REASSIGNMENT OF DEFICITS.—Section 359e(b) of the Agricul- tural 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 para-

graphs (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

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122 STAT. 1715PUBLIC LAW 110–246—JUNE 18, 2008

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 ‘‘para-

graph (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 redesig-

nated), 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 Adjust-

ment 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 estab-

lishing 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 propor- tionate share State in accordance with this paragraph.

‘‘(B) NOTIFICATION.—Not later than 90 days after the Secretary becomes aware of a conversion of any sugarcane acreage base to a nonagricultural use, the Secretary shall notify the 1 or more affected landowners of the transfer- ability of the applicable sugarcane acreage base.

‘‘(C) INITIAL TRANSFER PERIOD.—The owner of the base attributable to the acreage at the time of the conversion shall be afforded 90 days from the date of the receipt of the notification under subparagraph (B) to transfer the base to 1 or more farms owned by the owner.

‘‘(D) GROWER OF RECORD.—If a transfer under subpara- graph (C) cannot be accomplished during the period speci- fied 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 subpara- graphs (B) and (C) cannot be accomplished during the

Notification. Time period.

Deadline.

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122 STAT. 1716 PUBLIC LAW 110–246—JUNE 18, 2008

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 avail- able 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 para-

graph (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 trans- ferred; 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 trans- ferred.’’.

(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.

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122 STAT. 1717PUBLIC LAW 110–246—JUNE 18, 2008

(j) ADMINISTRATION OF TARIFF RATE QUOTAS.—Part VII of sub- title B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) (as amended by subsection (i)) is amended by adding at the end the following: ‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS.

‘‘(a) ESTABLISHMENT.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2)

and notwithstanding any other provision of law, at the begin- ning of the quota year, the Secretary shall establish the tariff- rate quotas for raw cane sugar and refined sugars at the minimum level necessary to comply with obligations under international trade agreements that have been approved by Congress.

‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to specialty sugar. ‘‘(b) ADJUSTMENT.—

‘‘(1) BEFORE APRIL 1.—Before April 1 of each fiscal year, if there is an emergency shortage of sugar in the United States market that is caused by a war, flood, hurricane, or other natural disaster, or other similar event as determined by the Secretary—

‘‘(A) the Secretary shall take action to increase the supply of sugar in accordance with sections 359c(b)(2) and 359e(b), including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and

‘‘(B) if there is still a shortage of sugar in the United States market, and marketing of domestic sugar has been maximized, and domestic raw cane sugar refining capacity has been maximized, the Secretary may increase the tariff- rate quota for refined sugars sufficient to accommodate the supply increase, if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272). ‘‘(2) ON OR AFTER APRIL 1.—On or after April 1 of each

fiscal year— ‘‘(A) the Secretary may take action to increase the

supply of sugar in accordance with sections 359c(b)(2) and 359e(b), including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and

‘‘(B) if there is still a shortage of sugar in the United States market, and marketing of domestic sugar has been maximized, the Secretary may increase the tariff-rate quota for raw cane sugar if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272).’’.

(k) PERIOD OF EFFECTIVENESS.—Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) (as amended by subsection (j)) is amended by adding at the end the following: ‘‘SEC. 359l. PERIOD OF EFFECTIVENESS.

‘‘(a) IN GENERAL.—This part shall be effective only for the 2008 through 2012 crop years for sugar.

7 USC 1359ll.

Deadlines.

7 USC 1359kk.

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122 STAT. 1718 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(b) TRANSITION.—The Secretary shall administer flexible mar- keting allotments for sugar for the 2007 crop year for sugar on the terms and conditions provided in this part as in effect on the day before the date of enactment of this section.’’. SEC. 1404. STORAGE FACILITY LOANS.

Section 1402(c) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7971(c)) is amended—

(1) in paragraph (1), by striking ‘‘and’’ at the end; (2) by redesignating paragraph (2) as paragraph (3); (3) by inserting after paragraph (1) the following: ‘‘(2) not include any penalty for prepayment; and’’; and (4) in paragraph (3) (as redesignated by paragraph (2)),

by inserting ‘‘other’’ after ‘‘on such’’. SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

Subtitle E of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7281 et seq.) is amended by adding at the end the following: ‘‘SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

‘‘(a) INITIAL CROP YEARS.—Notwithstanding any other provision of law, for each of the 2008 through 2011 crop years, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than—

‘‘(1) in the case of refined sugar, 15 cents per hundred- weight of refined sugar per month; and

‘‘(2) in the case of raw cane sugar, 10 cents per hundred- weight of raw cane sugar per month. ‘‘(b) SUBSEQUENT CROP YEARS.—For each of the 2012 and subse-

quent crop years, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in the same manner as was used on the day before the date of enactment of this section.’’.

Subtitle E—Dairy SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

(a) DEFINITION OF NET REMOVALS.—In this section, the term ‘‘net removals’’ means—

(1) the sum of— (A) the quantity of a product described in subsection

(b) purchased by the Commodity Credit Corporation under this section; and

(B) the quantity of the product exported under section 153 of the Food Security Act of 1985 (15 U.S.C. 713a– 14); less (2) the quantity of the product sold for unrestricted use

by the Commodity Credit Corporation. (b) SUPPORT ACTIVITIES.—During the period beginning on

January 1, 2008, and ending December 31, 2012, the Secretary shall support the price of cheddar cheese, butter, and nonfat dry milk through the purchase of such products made from milk pro- duced 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;

Time period.

7 USC 8771.

7 USC 7287.

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122 STAT. 1719PUBLIC LAW 110–246—JUNE 18, 2008

(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 INVEN- TORIES.—

(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 speci- fied in subsection (c) for that commodity.

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122 STAT. 1720 PUBLIC LAW 110–246—JUNE 18, 2008

SEC. 1502. DAIRY FORWARD PRICING PROGRAM.

(a) PROGRAM REQUIRED.—The Secretary shall establish a pro- gram 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 con- tract authorized by subsection (a), shall be treated as satisfying—

(1) all uniform and minimum milk price requirements of subparagraphs (B) and (F) of paragraph (5) of section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937; and

(2) the total payment requirement of subparagraph (C) of that paragraph. (c) MILK COVERED BY PROGRAM.—

(1) COVERED MILK.—The program shall apply only with respect to the marketing of federally regulated milk that—

(A) is not classified as Class I milk or otherwise intended for fluid use; and

(B) is in the current of interstate or foreign commerce or directly burdens, obstructs, or affects interstate or for- eign 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 participa- tion 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 com-

plaints made by producers or cooperative associations of coercion by handlers to enter into forward contracts.

(B) ACTION.—If the Secretary finds evidence of coer- cion, the Secretary shall take appropriate action.

(e) DURATION.— (1) NEW CONTRACTS.—No forward price contract may be

entered into under the program established under this section after September 30, 2012.

(2) APPLICATION.—No forward contract entered into under the program may extend beyond September 30, 2015.

Termination date.

Deadline.

Applicability.

7 USC 8772.

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122 STAT. 1721PUBLIC LAW 110–246—JUNE 18, 2008

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 allow- able 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 para- graph (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 Agree- ment Act of 1937, is amended by striking subsection (17) and inserting the following:

‘‘(17) PROVISIONS APPLICABLE TO AMENDMENTS.— ‘‘(A) APPLICABILITY TO AMENDMENTS.—The provisions

of this section and section 8d applicable to orders shall be applicable to amendments to orders.

‘‘(B) SUPPLEMENTAL RULES OF PRACTICE.— ‘‘(i) IN GENERAL.—Not later than 60 days after

the date of enactment of this subparagraph, the Sec- retary shall issue, using informal rulemaking, supple- mental rules of practice to define guidelines and time- frames for the rulemaking process relating to amend- ments to orders.

‘‘(ii) ISSUES.—At a minimum, the supplemental rules of practice shall establish—

‘‘(I) proposal submission requirements; ‘‘(II) pre-hearing information session specifica-

tions; ‘‘(III) written testimony and data request

requirements; ‘‘(IV) public participation timeframes; and ‘‘(V) electronic document submission stand-

ards. ‘‘(iii) EFFECTIVE DATE.—The supplemental rules of

practice shall take effect not later than 120 days after

Deadline.

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122 STAT. 1722 PUBLIC LAW 110–246—JUNE 18, 2008

the date of enactment of this subparagraph, as deter- mined by the Secretary. ‘‘(C) HEARING TIMEFRAMES.—

‘‘(i) IN GENERAL.—Not more than 30 days after the receipt of a proposal for an amendment hearing regarding a milk marketing order, the Secretary shall—

‘‘(I) issue a notice providing an action plan and expected timeframes for completion of the hearing not more than 120 days after the date of the issuance of the notice;

‘‘(II)(aa) issue a request for additional informa- tion to be used by the Secretary in making a determination regarding the proposal; and

‘‘(bb) if the additional information is not pro- vided 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 pro- posed amendment to an order shall be issued not later than 60 days after the deadline for submission of com- ments and exceptions to the recommended decision issued under clause (iii). ‘‘(D) INDUSTRY ASSESSMENTS.—If the Secretary deter-

mines it is necessary to improve or expedite rulemaking under this subsection, the Secretary may impose an assess- ment on the affected industry to supplement appropriated funds for the procurement of service providers, such as court reporters.

‘‘(E) USE OF INFORMAL RULEMAKING.—The Secretary may use rulemaking under section 553 of title 5, United States Code, to amend orders, other than provisions of orders that directly affect milk prices.

‘‘(F) AVOIDING DUPLICATION.—The Secretary shall not be required to hold a hearing on any amendment proposed to be made to a milk marketing order in response to an application for a hearing on the proposed amendment if—

‘‘(i) the application requesting the hearing is received by the Secretary not later than 90 days after the date on which the Secretary has announced the decision on a previously proposed amendment to that order; and

‘‘(ii) the 2 proposed amendments are essentially the same, as determined by the Secretary. ‘‘(G) MONTHLY FEED AND FUEL COSTS FOR MAKE ALLOW-

ANCES.—As part of any hearing to adjust make allowances under marketing orders commencing prior to September 30, 2012, the Secretary shall—

Deadline.

Notice.

Deadlines.

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122 STAT. 1723PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(i) determine the average monthly prices of feed and fuel incurred by dairy producers in the relevant marketing area;

‘‘(ii) consider the most recent monthly feed and fuel price data available; and

‘‘(iii) consider those prices in determining whether or not to adjust make allowances.’’.

SEC. 1505. DAIRY INDEMNITY PROGRAM.

Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM.

(a) DEFINITIONS.—In this section: (1) CLASS I MILK.—The term ‘‘Class I milk’’ means milk

(including milk components) classified as Class I milk under a Federal milk marketing order.

(2) ELIGIBLE PRODUCTION.—The term ‘‘eligible production’’ means milk produced by a producer in a participating State.

(3) FEDERAL MILK MARKETING ORDER.—The term ‘‘Federal milk marketing order’’ means an order issued under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937.

(4) PARTICIPATING STATE.—The term ‘‘participating State’’ means each State.

(5) PRODUCER.—The term ‘‘producer’’ means an individual or entity that directly or indirectly (as determined by the Sec- retary)—

(A) shares in the risk of producing milk; and (B) makes contributions (including land, labor,

management, equipment, or capital) to the dairy farming operation of the individual or entity that are at least commensurate with the share of the individual or entity of the proceeds of the operation.

(b) PAYMENTS.—The Secretary shall offer to enter into contracts with producers on a dairy farm located in a participating State under which the producers receive payments on eligible production.

(c) AMOUNT.—Payments to a producer under this section shall be calculated by multiplying (as determined by the Secretary)—

(1) the payment quantity for the producer during the applicable month established under subsection (e);

(2) the amount equal to— (A) $16.94 per hundredweight, as adjusted under sub-

section (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 there-

after, 34 percent. (d) PAYMENT RATE ADJUSTMENT FOR FEED PRICES.—

(1) INITIAL ADJUSTMENT AUTHORITY.—During the period beginning on January 1, 2008, and ending on August 31, 2012, if the National Average Dairy Feed Ration Cost for a month during that period is greater than $7.35 per hundredweight,

Time period.

Contracts.

7 USC 8773.

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122 STAT. 1724 PUBLIC LAW 110–246—JUNE 18, 2008

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 Aver- age 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 Agricul- tural Prices publication (including the data and factors noted in footnote 4). (e) PAYMENT QUANTITY.—

(1) IN GENERAL.—Subject to paragraph (2), the payment quantity for a producer during the applicable month under this section shall be equal to the quantity of eligible production marketed by the producer during the month.

(2) LIMITATION.— (A) IN GENERAL.—The payment quantity for all pro-

ducers on a single dairy operation for which the producers receive payments under subsection (b) shall not exceed—

(i) for the period beginning October 1, 2007, and ending September 30, 2008, 2,400,000 pounds;

(ii) for the period beginning October 1, 2008, and ending August 31, 2012, 2,985,000 pounds for each fiscal year; and

(iii) effective beginning September 1, 2012, 2,400,000 pounds per fiscal year. (B) STANDARDS.—For purposes of determining whether

producers are producers on separate dairy operations or a single dairy operation, the Secretary shall apply the same standards as were applied in implementing the dairy program under section 805 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (as enacted into law by Public Law 106–387; 114 Stat. 1549A–50). (3) RECONSTITUTION.—The Secretary shall ensure that a

producer does not reconstitute a dairy operation for the sole purpose of receiving additional payments under this section. (f) PAYMENTS.—A payment under a contract under this section

shall be made on a monthly basis not later than 60 days after the last day of the month for which the payment is made.

(g) SIGNUP.—The Secretary shall offer to enter into contracts under this section during the period beginning on the date that is 90 days after the date of enactment of this Act and ending on September 30, 2012.

(h) DURATION OF CONTRACT.— (1) IN GENERAL.—Except as provided in paragraph (2), any

contract entered into by producers on a dairy farm under this

Contracts. Time period.

Deadline.

Applicability.

Effective date.

Time periods.

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122 STAT. 1725PUBLIC LAW 110–246—JUNE 18, 2008

section shall cover eligible production marketed by the pro- ducers 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 Sec- retary.

‘‘(B) IMPORTED DAIRY PRODUCTS.—The rate of assess- ment 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 Sec- retary.’’.

(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

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122 STAT. 1726 PUBLIC LAW 110–246—JUNE 18, 2008

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 PROD- UCTS.—

‘‘(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 Depart- ment 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 appropria- tions 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 ‘‘commis- sion’’), 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 pro- ducers 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 mem- bers.

(2) MEMBERS.—As soon as practicable after the date on which funds are first made available to carry out this section,

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122 STAT. 1727PUBLIC LAW 110–246—JUNE 18, 2008

the Secretary shall appoint members to the commission according to the following requirements:

(A) At least 1 member shall represent a national con- sumer 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 produc- tion 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 termi- nation 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 sec- tion, 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 max- imum 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, pro- posed, 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.

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122 STAT. 1728 PUBLIC LAW 110–246—JUNE 18, 2008

(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 Mar-

keting 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 quar- terly conduct an audit of information submitted or reported under this subtitle and compare such information with other related dairy market statistics.’’.

Subtitle F—Administration

SEC. 1601. ADMINISTRATION GENERALLY.

(a) USE OF COMMODITY CREDIT CORPORATION.—Except as other- wise provided in this title, the Secretary shall use the funds, facili- ties, and authorities of the Commodity Credit Corporation to carry out this title.

(b) DETERMINATIONS BY SECRETARY.—A determination made by the Secretary under this title shall be final and conclusive.

(c) REGULATIONS.— (1) IN GENERAL.—Except as otherwise provided in this sub-

section, not later than 90 days after the date of enactment of this Act, the Secretary and the Commodity Credit Corpora- tion, 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 (com- monly known as the ‘‘Paperwork Reduction Act’’);

(B) the Statement of Policy of the Secretary of Agri- culture effective July 24, 1971 (36 Fed. Reg. 13804),

Deadline.

7 USC 8781.

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122 STAT. 1729PUBLIC LAW 110–246—JUNE 18, 2008

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 Sec-

retary determines that expenditures under this title that are subject to the total allowable domestic support levels under the Uruguay Round Agreements (as defined in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed such allowable levels for any applicable reporting period, the Secretary shall, to the maximum extent practicable, make adjustments in the amount of such expenditures during that period to ensure that such expenditures do not exceed such allowable levels.

(2) CONGRESSIONAL NOTIFICATION.—Before making any adjustment under paragraph (1), the Secretary shall submit to the Committee on Agriculture of the House of Representa- tives or the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the determination made under that paragraph and the extent of the adjustment to be made. (e) TREATMENT OF ADVANCE PAYMENT OPTION.—Section 1601(d)

of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7991(d)) is amended—

(1) in paragraph (1), by striking ‘‘and’’ at the end; (2) in paragraph (2), by striking the period at the end

and inserting ‘‘; and’’; and (3) by adding at the end the following: ‘‘(3) the advance payment of direct payments and counter-

cyclical payments under title I of the Food, Conservation, and Energy Act of 2008.’’.

SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 2008 through 2012 crops of covered commod- ities, 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

Time period. 7 USC 8782.

Reports.

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122 STAT. 1730 PUBLIC LAW 110–246—JUNE 18, 2008

through 2012 crops of covered commodities, peanuts, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act and through December 31, 2012:

(1) Section 101 (7 U.S.C. 1441). (2) Section 103(a) (7 U.S.C. 1444(a)). (3) Section 105 (7 U.S.C. 1444b). (4) Section 107 (7 U.S.C. 1445a). (5) Section 110 (7 U.S.C. 1445e). (6) Section 112 (7 U.S.C. 1445g). (7) Section 115 (7 U.S.C. 1445k). (8) Section 201 (7 U.S.C. 1446). (9) Title III (7 U.S.C. 1447 et seq.). (10) Title IV (7 U.S.C. 1421 et seq.), other than sections

404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431). (11) Title V (7 U.S.C. 1461 et seq.). (12) Title VI (7 U.S.C. 1471 et seq.).

(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—The joint reso- lution entitled ‘‘A joint resolution relating to corn and wheat mar- keting 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 para-

graph (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 other- wise 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 PAY-

MENTS, AND ACRE PAYMENTS FOR COVERED COMMODITIES (OTHER THAN PEANUTS).—

‘‘(1) DIRECT PAYMENTS.—The total amount of direct pay- ments received, directly or indirectly, by a person or legal

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122 STAT. 1731PUBLIC LAW 110–246—JUNE 18, 2008

entity (except a joint venture or a general partnership) for any crop year under subtitle A of title I of the Food, Conserva- tion, 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 pro- gram under section 1105 of that Act, $40,000; or

‘‘(B) in the case of a person or legal entity that partici- pates 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 pay- ments 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 elec- tion 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 PAY-

MENTS, AND ACRE PAYMENTS FOR PEANUTS.— ‘‘(1) DIRECT PAYMENTS.—The total amount of direct pay-

ments 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, Conserva- tion, 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 pro- gram under section 1105 of that Act, $40,000; or

‘‘(B) in the case of a person or legal entity that partici- pates 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

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122 STAT. 1732 PUBLIC LAW 110–246—JUNE 18, 2008

Energy Act of 2008, the total amount of counter-cyclical pay- ments 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 elec- tion 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 mar- keting assistance loan program or the loan deficiency payment program under title I of the Food, Conservation, and Energy Act of 2008.’’.

(3) DIRECT ATTRIBUTION.—Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—

(A) by striking subsections (e) and (f) and redesignating subsection (g) as subsection (h); and

(B) by inserting after subsection (d) the following: ‘‘(e) ATTRIBUTION OF PAYMENTS.—

‘‘(1) IN GENERAL.—In implementing subsections (b) and (c) and a program described in paragraphs (1)(C) and (2)(B) of section 1001D(b), the Secretary shall issue such regulations as are necessary to ensure that the total amount of payments are attributed to a person by taking into account the direct and indirect ownership interests of the person in a legal entity that is eligible to receive the payments.

‘‘(2) PAYMENTS TO A PERSON.—Each payment made directly to a person shall be combined with the pro rata interest of the person in payments received by a legal entity in which the person has a direct or indirect ownership interest unless the payments of the legal entity have been reduced by the pro rata share of the person.

‘‘(3) PAYMENTS TO A LEGAL ENTITY.— ‘‘(A) IN GENERAL.—Each payment made to a legal entity

shall be attributed to those persons who have a direct or indirect ownership interest in the legal entity unless the payment to the legal entity has been reduced by the pro rata share of the person.

‘‘(B) ATTRIBUTION OF PAYMENTS.— ‘‘(i) PAYMENT LIMITS.—Except as provided in clause

(ii), payments made to a legal entity shall not exceed the amounts specified in subsections (b) and (c).

‘‘(ii) EXCEPTION FOR JOINT VENTURES AND GENERAL PARTNERSHIPS.—Payments made to a joint venture or a general partnership shall not exceed, for each pay- ment 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

Regulations.

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122 STAT. 1733PUBLIC LAW 110–246—JUNE 18, 2008

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 ENTI- TIES.—

‘‘(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 propor- tion 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 regula- tions specifying the conditions under which payments received by a child under the age of 18 will not be attributed to the parents of the child. ‘‘(2) MARKETING COOPERATIVES.—Subsections (b) and (c)

shall not apply to a cooperative association of producers with respect to commodities produced by the members of the associa- tion that are marketed by the association on behalf of the members of the association but shall apply to the producers as persons.

Applicability.

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122 STAT. 1734 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 consid-

ered an irrevocable trust, the terms of the trust agree- ment 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 begin- ning 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 sec-

tion 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 sub- section (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 Fed- eral 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 govern- ment, or political subdivision or agency of the government, shall not be eligible to receive any payment, benefit, or

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122 STAT. 1735PUBLIC LAW 110–246—JUNE 18, 2008

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 sub- sections (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 deter- mines 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 sub- stantive 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 con- tract 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 govern- ments 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

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122 STAT. 1736 PUBLIC LAW 110–246—JUNE 18, 2008

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 owner- ship 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 sub- section (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 manage-

ment; ‘‘(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 partner- ship, a participant in a joint venture, a grantor of a rev- ocable 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;

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122 STAT. 1737PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(C) if a legal entity that is a general partnership, joint venture, or similar entity, as determined by the Sec- retary, 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 land-

owner 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 partici-

pants 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 stand- ards provided in clauses (ii) and (iii) of subsection (b)(2)(A). ‘‘(3) SHARECROPPER.—A sharecropper who makes a signifi-

cant 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 sub- section (b)(2) or paragraphs (1) through (4) of this sub- section.

‘‘(B) PROHIBITION.—No other rules with respect to cus- tom farming shall apply. ‘‘(6) SPOUSE.—If 1 spouse (or estate of a deceased spouse)

is determined to be actively engaged, the other spouse shall

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122 STAT. 1738 PUBLIC LAW 110–246—JUNE 18, 2008

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 per- son or legal entity that the Secretary determines does not meet the standards described in subsections (b)(2) and (c) shall not be considered to be actively engaged in farming with respect to a farming operation.’’. (e) DENIAL OF PROGRAM BENEFITS.—Section 1001B of the Food

Security Act of 1985 (7 U.S.C. 1308–2) is amended to read as follows:

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

‘‘(a) 2-YEAR DENIAL OF PROGRAM BENEFITS.—A person or legal entity shall be ineligible to receive payments specified in subsections (b) and (c) of section 1001 for the crop year, and the succeeding crop year, in which the Secretary determines that the person or legal entity—

‘‘(1) failed to comply with section 1001A(b) and adopted or participated in adopting a scheme or device to evade the application of section 1001, 1001A, or 1001C; or

‘‘(2) intentionally concealed the interest of the person or legal entity in any farm or legal entity engaged in farming. ‘‘(b) EXTENDED INELIGIBILITY.—If the Secretary determines that

a person or legal entity, for the benefit of the person or legal entity or the benefit of any other person or legal entity, has know- ingly engaged in, or aided in the creation of a fraudulent document, failed to disclose material information relevant to the administra- tion 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 sub- section (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).

Fraud. Regulations.

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‘‘(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 fol- lowing: ‘‘(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 assist- ance under this section.’’; and

(C) in paragraph (5)— (i) by striking ‘‘necessary to ensure’’ and inserting

‘‘necessary— ‘‘(A) to ensure’’; and

(ii) by striking ‘‘this subsection.’’ and inserting the following: ‘‘this subsection; and ‘‘(B) to ensure that payments under this section are

attributed to a person or legal entity (excluding a joint venture or general partnership) in accordance with the terms and conditions of sections 1001 through 1001D of the Food Security Act of 1985 (7 U.S.C. 1308 et seq.), as determined by the Secretary.’’. (2) TRANSITION.—Section 196(i) of the Federal Agriculture

Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)), as in effect on September 30, 2007, shall apply with respect to the 2007 and 2008 crops of any eligible crop. (g) CONFORMING AMENDMENTS.—

(1) Section 1009(e) of the Food Security Act of 1985 (7 U.S.C. 1308a(e)) is amended in the second sentence by striking ‘‘of $50,000’’.

(2) Section 609(b)(1) of the Emergency Livestock Feed Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by inserting ‘‘(before the amendment made by section 1703(a) of the Food, Conservation, and Energy Act of 2008)’’ after ‘‘1985’’.

(3) Section 524(b)(3) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(3)) is amended by inserting ‘‘(before the amendment made by section 1703(a) of the Food, Conservation, and Energy Act of 2008)’’ after ‘‘1308(5)))’’.

7 USC 7333 note.

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(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, Conserva- tion, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A)) is amended by inserting ‘‘(before the amendment made by section 1703(a) of the Food, Conservation, and Energy Act of 2008)’’ after ‘‘1308)’’.

(6) Section 291(2) of the Trade Act of 1974 (19 U.S.C. 2401(2)) is amended by inserting ‘‘(before the amendment made by section 1703(a) of the Food, Conservation, and Energy Act of 2008)’’ before the period at the end. (h) TRANSITION.—Section 1001, 1001A, and 1001B of the Food

Security Act of 1985 (7 U.S.C. 1308, 1308–1, 1308–2), as in effect on September 30, 2007, shall continue to apply with respect to the 2007 and 2008 crops of any covered commodity or peanuts. SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

(a) IN GENERAL.—Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a(e)) is amended to read as follows: ‘‘SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.

‘‘(a) DEFINITIONS.— ‘‘(1) IN GENERAL.—In this section:

‘‘(A) AVERAGE ADJUSTED GROSS INCOME.—The term ‘average adjusted gross income’, with respect to a person or legal entity, means the average of the adjusted gross income or comparable measure of the person or legal entity over the 3 taxable years preceding the most immediately preceding complete taxable year, as determined by the Secretary.

‘‘(B) AVERAGE ADJUSTED GROSS FARM INCOME.—The term ‘average adjusted gross farm income’, with respect to a person or legal entity, means the average of the portion of adjusted gross income of the person or legal entity that is attributable to activities related to farming, ranching, or forestry for the 3 taxable years described in subparagraph (A), as determined by the Secretary in accordance with subsection (c).

‘‘(C) AVERAGE ADJUSTED GROSS NONFARM INCOME.— The term ‘average adjusted gross nonfarm income’, with respect to a person or legal entity, means the difference between—

‘‘(i) the average adjusted gross income of the person or legal entity; and

‘‘(ii) the average adjusted gross farm income of the person or legal entity.

‘‘(2) SPECIAL RULES FOR CERTAIN PERSONS AND LEGAL ENTI- TIES.—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 regula- tion, a method for determining the average adjusted gross income, the average adjusted gross farm income, and the aver- age adjusted gross nonfarm income of the person or legal entity for purposes of this section.

Applicability. 7 USC 1308 note.

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122 STAT. 1741PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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, aver- age 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 informa- tion supporting the filed joint tax return.

‘‘(b) LIMITATIONS.— ‘‘(1) COMMODITY PROGRAMS.—

‘‘(A) NONFARM LIMITATION.—Notwithstanding any other provision of law, a person or legal entity shall not be eligible to receive any benefit described in subparagraph (C) during a crop, fiscal, or program year, as appropriate, if the average adjusted gross nonfarm income of the person or legal entity exceeds $500,000.

‘‘(B) FARM LIMITATION.—Notwithstanding any other provision of law, a person or legal entity shall not be eligible to receive a direct payment under subtitle A or C of title I of the Food, Conservation, and Energy Act of 2008 during a crop year, if the average adjusted gross farm income of the person or legal entity exceeds $750,000.

‘‘(C) COVERED BENEFITS.—Subparagraph (A) applies with respect to the following:

‘‘(i) A direct payment or counter-cyclical payment under subtitle A or C of title I of the Food, Conserva- tion, and Energy Act of 2008 or an average crop rev- enue election payment under subtitle A of title I of that Act.

‘‘(ii) A marketing loan gain or loan deficiency pay- ment 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

Applicability.

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122 STAT. 1742 PUBLIC LAW 110–246—JUNE 18, 2008

of the person or legal entity is average adjusted gross farm income.

‘‘(ii) EXCEPTION.—The Secretary may waive the limitation established under clause (i) on a case-by- case basis if the Secretary determines that environ- mentally sensitive land of special significance would be protected. ‘‘(B) COVERED BENEFITS.—Subparagraph (A) applies

with respect to the following: ‘‘(i) A payment or benefit under title XII of this

Act. ‘‘(ii) A payment or benefit under title II of the

Farm Security and Rural Investment Act of 2002 (Public Law 107–171; 116 Stat. 223) or title II of the Food, Conservation, and Energy Act of 2008.

‘‘(iii) A payment or benefit under section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)).

‘‘(c) INCOME DETERMINATION.— ‘‘(1) IN GENERAL.—In determining the average adjusted

gross farm income of a person or legal entity, the Secretary shall include income or benefits derived from or related to—

‘‘(A) the production of crops, including specialty crops (as defined in section 3 of the Specialty Crops Competitive- ness 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, honey- bees, 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);

Applicability.

Waiver authority.

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122 STAT. 1743PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 FOR-

ESTRY.—In determining the average adjusted gross farm income of a person or legal entity, in addition to the inclusions described in paragraph (1), the Secretary shall include any income reported on the Schedule F or other schedule used by the person or legal entity to report income from farming, ranching, or forestry operations to the Internal Revenue Service, to the extent such income is not already included under paragraph (1).

‘‘(3) SPECIAL RULE.—If not less than 66.66 percent of the average adjusted gross income of a person or legal entity is derived from farming, ranching, or forestry operations described in paragraphs (1) and (2), in determining the average adjusted gross farm income of the person or legal entity, the Secretary shall also include—

‘‘(A) the sale of equipment to conduct farm, ranch, or forestry operations; and

‘‘(B) the provision of production inputs and services to farmers, ranchers, foresters, and farm operations.

‘‘(d) ENFORCEMENT.— ‘‘(1) IN GENERAL.—To comply with subsection (b), at least

once every 3 years a person or legal entity shall provide to the Secretary—

‘‘(A) a certification by a certified public accountant or another third party that is acceptable to the Secretary that the average adjusted gross income, average adjusted gross farm income, and average adjusted gross nonfarm income of the person or legal entity does not exceed the applicable limitation specified in that subsection; or

‘‘(B) information and documentation regarding the average adjusted gross income, average adjusted gross farm income, and average adjusted gross nonfarm income of the person or legal entity through other procedures estab- lished by the Secretary. ‘‘(2) DENIAL OF PROGRAM BENEFITS.—If the Secretary deter-

mines that a person or legal entity has failed to comply with this section, the Secretary shall deny the issuance of applicable payments and benefits specified in paragraphs (1)(C) and (2)(B) of subsection (b) to the person or legal entity, under similar terms and conditions as described in section 1001B.

‘‘(3) AUDIT.—The Secretary shall establish statistically valid procedures under which the Secretary shall conduct targeted audits of such persons or legal entities as the Secretary deter- mines 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

Procedures.

Certification.

Deadline.

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122 STAT. 1744 PUBLIC LAW 110–246—JUNE 18, 2008

(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 appro- priate.’’.

(b) TRANSITION.—Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a), as in effect on September 30, 2007, shall apply with respect to the 2007 and 2008 crop, fiscal, or program year, as appropriate, for each program described in paragraphs (1)(C) and (2)(B) of subsection (b) of that section (as amended by subsection (a)).

SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR COV- ERED 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 hydro- genate 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;

7 USC 8783.

Applicability. 7 USC 1308–3a note.

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122 STAT. 1745PUBLIC LAW 110–246—JUNE 18, 2008

(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 esti- mated 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 pay-

ments 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 Sec- retary 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.

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122 STAT. 1746 PUBLIC LAW 110–246—JUNE 18, 2008

(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, Conserva- tion, 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, Conserva- tion, and Energy Act of 2008’’; and

(2) in subsection (c), by adding at the end the following: ‘‘(3) TERMINATION OF AUTHORITY.—The authority to carry

out paragraph (1) terminates effective ending with the 2009 crop year.’’.

SEC. 1608. ASSIGNMENT OF PAYMENTS.

(a) IN GENERAL.—The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of payments, shall apply to payments made under this title.

(b) NOTICE.—The producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require, of any assignment made under this section. SEC. 1609. TRACKING OF BENEFITS.

As soon as practicable after the date of enactment of this Act, the Secretary may track the benefits provided, directly or indirectly, to individuals and entities under titles I and II and the amendments made by those titles. SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE FORE-

CASTS.

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 sub-

sections (d) through (f), respectively. SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAY-

MENTS UNDER FARM COMMODITY PROGRAMS.

(a) REGULATIONS.—Not later than 180 days after the date of enactment of this Act, the Secretary shall promulgate regulations that—

(1) describe the circumstances under which, in order to allow for the settlement of estates and for related purposes, payments may be issued in the name of a deceased individual; and

Deadline.

7 USC 8786.

7 USC 8785.

Applicability.

7 USC 8784.

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122 STAT. 1747PUBLIC LAW 110–246—JUNE 18, 2008

(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 individ- uals are alive.

SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM.

(a) DEFINITIONS.—In this section: (1) ELIGIBLE HARD WHITE WHEAT SEED.—The term ‘‘eligible

hard white wheat seed’’ means hard white wheat seed that, as determined by the Secretary, is—

(A) certified; (B) of a variety that is suitable for the State in which

the seed will be planted; (C) rated at least superior with respect to quality;

and (D) specifically approved under a seed establishment

program established by the State Department of Agri- culture 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 deter- mined by the Secretary. (b) ESTABLISHMENT.—

(1) IN GENERAL.—Subject to the availability of appropria- tions, the Secretary shall establish a hard white wheat develop- ment 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 deter- mined 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.

7 USC 8787.

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122 STAT. 1748 PUBLIC LAW 110–246—JUNE 18, 2008

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section $35,000,000 for the period of fiscal years 2009 through 2012. SEC. 1613. DURUM WHEAT QUALITY PROGRAM.

(a) IN GENERAL.—Subject to the availability of funds under subsection (c), the Secretary shall provide compensation to pro- ducers 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 appro- priated for a fiscal year under subsection (c) are insufficient to fulfill all eligible requests for compensation under this section, the Secretary shall prorate the compensation payments in a manner determined by the Secretary to be equitable.

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2009 through 2012. SEC. 1614. STORAGE FACILITY LOANS.

(a) IN GENERAL.—As soon as practicable after the date of enact- ment 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 commod- ities (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 sub- section (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 stor- age 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 construc- tion 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 Sec- retary; (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 Sec- retary; or

7 USC 8789.

7 USC 8788.

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(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 sub- clause (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 agri- cultural producers within the area covered by the county, area, or local committee; and

‘‘(bb) are elected by the agricultural pro- ducers that participate or cooperate in pro- grams administered within the area under the jurisdiction of the county, area, or local com- mittee. ‘‘(III) REPRESENTATION OF SOCIALLY DISADVAN-

TAGED FARMERS AND RANCHERS.—The Secretary shall develop procedures to maintain representa- tion of socially disadvantaged farmers and ranchers on combined or consolidated committees.

‘‘(IV) ELIGIBILITY FOR MEMBERSHIP.—Notwith- standing any other producer eligibility require- ments 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 com- modity assessments pursuant to this Act.’’.

Procedures.

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SEC. 1617. SIGNATURE AUTHORITY.

(a) IN GENERAL.—In carrying out this title and title II and amendments made by those titles, if the Secretary approves a document, the Secretary shall not subsequently determine the docu- ment 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 Sec-

retary 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 require- ments

SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY.

Not later than 180 days after the date of enactment of this Act, the Secretary shall transmit to the Committee on Agriculture and the Committee on Appropriations of the House of Representa- tives and the Committee on Agriculture, Nutrition, and Forestry and the Committee on Appropriations of the Senate a report pre- pared by a third party that describes—

(1) the data processing and information technology chal- lenges 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 mod- ernization and stabilization of Farm Service Agency information technology systems;

(6) the benefits associated with such modernization and stabilization; and

(7) an evaluation of the existence of appropriate oversight within the Department to ensure that funds needed for systems upgrades can be appropriately managed.

SEC. 1619. INFORMATION GATHERING.

(a) GEOSPATIAL SYSTEMS.—The Secretary shall ensure that all the geospatial data of the agencies of the Department of Agriculture are portable and standardized.

(b) LIMITATION ON DISCLOSURES.—

7 USC 8791.

Deadline. Reports.

7 USC 8790.

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122 STAT. 1751PUBLIC LAW 110–246—JUNE 18, 2008

(1) DEFINITION OF AGRICULTURAL OPERATION.—In this sub- section, the term ‘‘agricultural operation’’ includes the produc- tion 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 Depart- ment 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 Depart- ment; 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 Sec- retary determines that the information described in para- graph (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 author- ized 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 para- graph (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 para- graph (2) pursuant to the consent of the agricultural pro- ducer 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.

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122 STAT. 1752 PUBLIC LAW 110–246—JUNE 18, 2008

SEC. 1620. LEASING OF OFFICE SPACE.

Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture and the Committee on Appropriations of the House of Representa- tives 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 rel- ative to the previous independent leasing procedures of the Department of Agriculture;

(2) the additional staffing needs associated with complying with those procedures; and

(3) the value added to the leasing process and the ability of the Department to secure best-value leases by complying with the General Services Administration leasing procedures.

SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

(a) DEFINITIONS.—In this section: (1) AGRICULTURAL COMMODITY.—The term ‘‘agricultural

commodity’’ has the meaning given the term in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).

(2) GEOGRAPHICALLY DISADVANTAGED FARMER OR RANCHER.—The term ‘‘geographically disadvantaged farmer or rancher’’ has the meaning given the term in section 10906(a) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 2204 note; Public Law 107–171). (b) AUTHORIZATION.—Subject to the availability of funds under

subsection (d), the Secretary may provide geographically disadvan- taged 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 agricul- tural commodity, during a fiscal year.

(2) PROOF OF ELIGIBILITY.—To be eligible to receive assist- ance 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 multi- plying—

(i) the amount of costs incurred by the geographi- cally disadvantaged farmer or rancher for transpor- tation 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,

7 USC 8792.

Deadline. Reports.

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122 STAT. 1753PUBLIC LAW 110–246—JUNE 18, 2008

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 reimburse-

ment payments provided by the Secretary under this sec- tion shall not exceed $15,000,000 for a fiscal year.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2009 through 2012. SEC. 1622. IMPLEMENTATION.

The Secretary shall make available to the Farm Service Agency to carry out this title $50,000,000. SEC. 1623. REPEALS.

(a) COMMISSION ON APPLICATION OF PAYMENT LIMITATIONS.— Section 1605 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7993) is repealed.

(b) RENEWED AVAILABILITY OF MARKET LOSS ASSISTANCE AND CERTAIN EMERGENCY ASSISTANCE TO PERSONS THAT FAILED TO RECEIVE ASSISTANCE UNDER EARLIER AUTHORITIES.—Section 1617 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8000) is repealed.

TITLE II—CONSERVATION

Subtitle A—Definitions and Highly Erodible Land and Wetland Conservation

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

(a) BEGINNING FARMER OR RANCHER.—Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended—

(1) by redesignating paragraphs (2) through (6), (7) through (11), (12), (13) through (15), (16), (17), and (18) as paragraphs (3) through (7), (9) through (13), (15), (20) through (22), (24), (26), and (27), respectively; and

(2) by inserting after paragraph (1) the following new para- graph:

‘‘(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;

7 USC 8793.

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‘‘(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 para- graph:

‘‘(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; NONINDUS-

TRIAL 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 deter- mined 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 pri- vate 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, Agri- culture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)(2)).’’. (f) TECHNICAL ASSISTANCE.—Section 1201(a) of the Food Secu-

rity 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 assist- ance’ means technical expertise, information, and tools nec- essary for the conservation of natural resources on land active in agricultural, forestry, or related uses. The term includes the following:

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‘‘(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, proc- esses, 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 Sec- retary, 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 Sec-

retary 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 con- tinue to be eligible for all of the benefits described in section

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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 para-

graph: ‘‘(2) ELIGIBLE REVIEWERS.—A determination of the Sec-

retary, 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 conserva- tion 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’’;

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(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 Chesa- peake 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 agri- cultural 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 consid- ered planted for 4 of the 6 years referred to in such subsection.’’.

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

(a) REVISED PROGRAM.— (1) IN GENERAL.—Title XII of the Food Security Act of

1985 is amended by inserting after section 1231 (16 U.S.C. 3831) the following new section:

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

‘‘(a) PROGRAM REQUIRED.— ‘‘(1) IN GENERAL.—During the 2008 through 2012 fiscal

years, the Secretary shall carry out a program in each State under which the Secretary shall enroll eligible acreage described in subsection (b).

‘‘(2) PARTICIPATION AMONG STATES.—The Secretary shall ensure, to the maximum extent practicable, that owners and operators in each State have an equitable opportunity to partici- pate 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 his- tory 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

16 USC 3831b.

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system and is designed to provide nitrogen removal in addition to other wetland functions;

‘‘(C) that was devoted to commercial pond-raised aqua- culture 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 consider- ation and accommodating the farming practices (including the straightening of boundaries to accommo- date 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 ACRE-

AGE.—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.—

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‘‘(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 deter- mined 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

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122 STAT. 1760 PUBLIC LAW 110–246—JUNE 18, 2008

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

(b) CONFORMING CHANGES TO EMERGENCY FORESTRY CON- SERVATION RESERVE PROGRAM.—Subsection (k) of section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended—

(1) by striking ‘‘(k) EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.—’’ and inserting the following:

‘‘SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PRO- GRAM.’’;

(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 sub- sections (a), (b), and (c), respectively;

(4) in subsection (a), as so redesignated, by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respec- tively; 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 subpara-

graphs (A) and (B), respectively; and (ii) by striking ‘‘subsection (d)’’ and inserting ‘‘sec-

tion 1231(d)’’; (D) in paragraph (4), as so redesignated, by redesig-

nating 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 sub-

paragraphs (A) through (E), respectively, and sub- clauses (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 redesig-

nating 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 CONSERVA- TION 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 para- graphs (6) through (11), respectively; and

(2) by inserting after paragraph (4) the following new para- graph:

‘‘(5) to undertake management on the land as needed throughout the term of the contract to implement the conserva- tion plan;’’.

16 USC 3831a.

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122 STAT. 1761PUBLIC LAW 110–246—JUNE 18, 2008

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 har- vesting of biomass), except that in permitting managed harvesting, the Secretary, in coordination with the State technical committee—

‘‘(i) shall develop appropriate vegetation manage- ment 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 con- trol 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 manage- ment 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 consider- ation 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 character- istics of the land;

‘‘(ii) the extent to which the land contains wildlife and wildlife habitat; and

‘‘(iii) the purposes of the conservation reserve pro- gram 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

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122 STAT. 1762 PUBLIC LAW 110–246—JUNE 18, 2008

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 COR- RIDORS.

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 COR- RIDORS.—

‘‘(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 sec- tion 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 subpara- graph (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 pay- ments 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 LIMITA- TIONS.

(a) EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS.—Sec- tion 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 VAR- IOUS STATES AND REGIONS.—The Secretary may establish

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122 STAT. 1763PUBLIC LAW 110–246—JUNE 18, 2008

different criteria for determining the acceptability of con- tract offers in various States and regions of the United States based on the extent to which water quality or wild- life habitat may be improved or erosion may be abated.

‘‘(C) LOCAL PREFERENCE.—In determining the accept- ability of contract offers for new enrollments, the Secretary shall accept, to the maximum extent practicable, an offer from an owner or operator that is a resident of the county in which the land is located or of a contiguous county if, as determined by the Secretary, the land would provide at least equivalent conservation benefits to land under competing offers.’’.

(b) ANNUAL SURVEY OF DRYLAND AND IRRIGATED CASH RENTAL RATES.—

(1) ANNUAL ESTIMATES REQUIRED.—Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended by adding at the end the following new paragraph:

‘‘(5) RENTAL RATES.— ‘‘(A) ANNUAL ESTIMATES.—The Secretary (acting

through the National Agricultural Statistics Service) shall conduct an annual survey of per acre estimates of county average market dryland and irrigated cash rental rates for cropland and pastureland in all counties or equivalent subdivisions within each State that have 20,000 acres or more of cropland and pastureland.

‘‘(B) PUBLIC AVAILABILITY OF ESTIMATES.—The esti- mates derived from the annual survey conducted under subparagraph (A) shall be maintained on a website of the Department of Agriculture for use by the general public.’’. (2) FIRST SURVEY.—The first survey required by paragraph

(5) of section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)), as added by subsection (a), shall be conducted not later than 1 year after the date of enactment of this Act. (c) PAYMENT LIMITATIONS.—Section 1234(f) of the Food Security

Act of 1985 (16 U.S.C. 3834(f)) is amended— (1) in paragraph (1), by striking ‘‘made to a person’’ and

inserting ‘‘received by a person or legal entity, directly or indirectly,’’;

(2) by striking paragraph (2); and (3) in paragraph (4), by striking ‘‘any person’’ and inserting

‘‘any person or legal entity’’.

SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCEN- TIVES 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 oper- ator to a beginning farmer or rancher or socially dis- advantaged farmer or rancher for the purpose of returning some or all of the land into production using sustainable grazing or crop production methods; or’’.

Deadline. 16 USC 3834 note.

Website.

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122 STAT. 1764 PUBLIC LAW 110–246—JUNE 18, 2008

(b) TRANSITION OPTION.—Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended by adding at the end the following new subsection:

‘‘(f) TRANSITION OPTION FOR CERTAIN FARMERS OR RANCHERS.— ‘‘(1) DUTIES OF THE SECRETARY.—In the case of a contract

modification approved in order to facilitate the transfer, as described in subsection (c)(1)(B)(iii), of land to a beginning farmer or rancher or socially disadvantaged farmer or rancher (in this subsection referred to as a ‘covered farmer or rancher’), the Secretary shall—

‘‘(A) beginning on the date that is 1 year before the date of termination of the contract—

‘‘(i) allow the covered farmer or rancher, in conjunction with the retired or retiring owner or oper- ator, 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 con-

tract, 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 oppor- tunity 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 addi- tional 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 cov-

ered 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 wet-

lands reserve program to assist owners of eligible lands in restoring and protecting wetlands.

Effective date.

Contracts.

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122 STAT. 1765PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(2) PURPOSES.—The purposes of the wetlands reserve pro- gram are to restore, protect, or enhance wetlands on private or tribal lands that are eligible under subsections (c) and (d).’’.

SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS.

Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 3837(b)) is amended—

(1) by striking paragraph (1) and inserting the following new paragraph:

‘‘(1) MAXIMUM ENROLLMENT.—The total number of acres enrolled in the wetlands reserve program shall not exceed 3,041,200 acres.’’;

(2) in paragraph (2), by striking ‘‘The Secretary’’ and inserting ‘‘Subject to paragraph (3), the Secretary’’; and

(3) by adding at the end the following new paragraph: ‘‘(3) ACREAGE OWNED BY INDIAN TRIBES.—In the case of

acreage owned by an Indian tribe, the Secretary shall enroll acreage into the wetlands reserve program through the use of—

‘‘(A) a 30-year contract (the value of which shall be equivalent to the value of a 30-year easement);

‘‘(B) restoration cost-share agreements; or ‘‘(C) any combination of the options described in sub-

paragraphs (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 agricul- tural 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 Secu- rity 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.—

Contracts.

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122 STAT. 1766 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 para- graph (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 spe- cies; and’’.

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

Subsection (f) of section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is amended to read as follows:

‘‘(f) COMPENSATION.— ‘‘(1) DETERMINATION.—Effective on the date of the enact-

ment of the Food, Conservation, and Energy Act of 2008, the Secretary shall pay as compensation for a conservation ease- ment 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 Profes- sional 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 pay- ment, in an amount determined under paragraph (1) and speci- fied in the easement agreement.

‘‘(3) PAYMENT SCHEDULE FOR EASEMENTS.— ‘‘(A) EASEMENTS VALUED AT $500,000 OR LESS.—For ease-

ments valued at $500,000 or less, the Secretary may pro- vide easement payments in not more than 30 annual pay- ments.

‘‘(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.—Pay-

ments made to a person or legal entity, directly or indirectly, pursuant to a restoration cost-share agreement under this sub- chapter 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.’’.

Effective date.

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122 STAT. 1767PUBLIC LAW 110–246—JUNE 18, 2008

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 sub- section:

‘‘(h) WETLANDS RESERVE ENHANCEMENT PROGRAM.— ‘‘(1) PROGRAM AUTHORIZED.—The Secretary may enter into

1 or more agreements with a State (including a political subdivi- sion or agency of a State), nongovernmental organization, or Indian tribe to carry out a special wetlands reserve enhance- ment 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 land- owner may reserve grazing rights in the warranty easement deed restriction if the Secretary determines that the res- ervation and use of the grazing rights—

‘‘(i) is compatible with the land subject to the ease- ment;

‘‘(ii) is consistent with the long-term wetland protection and enhancement goals for which the ease- ment 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 WET-

LANDS 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 CONSIDER- ATIONS.—When evaluating offers from landowners, the Sec- retary 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 environ- mental 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.’’.

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SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE CON- TRACTS 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 CON-

SERVATION EASEMENTS.

(a) REPORT REQUIRED.—Not later than January 1, 2010, the Secretary of Agriculture shall submit to the Committee on Agri- culture 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 Agri- culture.

(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 avail- ability of resources, including technical assistance.

(3) An assessment of the uses and value of agreements with partner organizations.

(4) Any other relevant information relating to costs or other effects that would be helpful to the Committees referred to in subsection (a).

Subtitle D—Conservation Stewardship Program

SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM.

(a) ESTABLISHMENT OF PROGRAM.—Chapter 2 of subtitle D of title XII of the Food Security Act of 1985 is amended—

(1) by redesignating subchapters B (farmland protection program) and C (grassland reserve program) as subchapters C and D, respectively; and

(2) by inserting after subchapter A the following new sub- chapter:

‘‘Subchapter B—Conservation Stewardship Program

‘‘SEC. 1238D. DEFINITIONS.

‘‘In this subchapter: 16 USC 3838d.

16 USC 3838h et seq., 3838n et seq.

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122 STAT. 1769PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 ‘con-

servation 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 ‘con- servation 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 imple-

mented, managed, or improved; and ‘‘(D) includes a schedule and evaluation plan for the

planning, installation, and management of the new and existing conservation activities. ‘‘(4) PRIORITY RESOURCE CONCERN.—The term ‘priority

resource concern’ means a resource concern that is identified at the State level, in consultation with the State Technical Committee, as a priority for a particular watershed or area of the State.

‘‘(5) PROGRAM.—The term ‘program’ means the conservation stewardship program established by this subchapter.

‘‘(6) RESOURCE CONCERN.—The term ‘resource concern’ means a specific natural resource impairment or problem, as determined by the Secretary, that—

‘‘(A) represents a significant concern in a State or region; and

‘‘(B) is likely to be addressed successfully through the implementation of conservation activities by producers on land eligible for enrollment in the program. ‘‘(7) STEWARDSHIP THRESHOLD.—The term ‘stewardship

threshold’ means the level of natural resource conservation and environmental management required, as determined by the Secretary using conservation measurement tools, to improve and conserve the quality and condition of a resource concern.

‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

‘‘(a) ESTABLISHMENT AND PURPOSE.—During each of fiscal years 2009 through 2012, the Secretary shall carry out a conservation stewardship program to encourage producers to address resource concerns in a comprehensive manner—

‘‘(1) by undertaking additional conservation activities; and ‘‘(2) by improving, maintaining and managing existing con-

servation activities. ‘‘(b) ELIGIBLE LAND.—

16 USC 3838e.

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122 STAT. 1770 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 enroll- ment 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 produc- tion 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 con- servation 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 Sec- retary.

‘‘SEC. 1238F. STEWARDSHIP CONTRACTS.

‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eligible to participate in the conservation stewardship program, a producer shall submit to the Secretary for approval a contract offer that—

‘‘(1) demonstrates to the satisfaction of the Secretary that the producer, at the time of the contract offer, is meeting

16 USC 3838f.

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122 STAT. 1771PUBLIC LAW 110–246—JUNE 18, 2008

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 conserva- tion 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 applica- tion, based to the maximum extent practicable on conserva- tion measurement tools;

‘‘(B) the degree to which the proposed conservation treatment on applicable priority resource concerns effec- tively 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 con- servation stewardship contract under section 1238G(e);

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122 STAT. 1772 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(B) require the producer— ‘‘(i) to implement during the term of the conserva-

tion stewardship contract the conservation stewardship plan approved by the Secretary;

‘‘(ii) to maintain, and make available to the Sec- retary at such times as the Secretary may request, appropriate records showing the effective and timely implementation of the conservation stewardship con- tract; 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 pro- gram 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 deter- mined 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 pay- ments already received and assess liquidated damages. ‘‘(4) CHANGE OF INTEREST IN LAND SUBJECT TO A CON-

TRACT.— ‘‘(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 termi- nation of the contract with regard to that land.

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122 STAT. 1773PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(B) TRANSFER OF DUTIES AND RIGHTS.—Subparagraph (A) shall not apply if—

‘‘(i) within a reasonable period of time (as deter- mined 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 writ- ten 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 require- ments of the program.

‘‘(h) COORDINATION WITH ORGANIC CERTIFICATION.—The Sec- retary shall establish a transparent means by which producers may initiate organic certification under the Organic Foods Produc- tion 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 conserva- tion practices.

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

‘‘(a) IN GENERAL.—To achieve the conservation goals of a con- tract 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 appro- priate 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 pro-

gram in the State is, or will be, effective in helping pro- ducers address those needs; and

‘‘(C) other considerations to achieve equitable geographic distribution of funds, as determined by the Sec- retary.

‘‘(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.

16 USC 3838g.

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‘‘(d) ACREAGE ENROLLMENT LIMITATION.—During the period beginning on October 1, 2008, and ending on September 30, 2017, the Secretary shall, to the maximum extent practicable—

‘‘(1) enroll in the program an additional 12,769,000 acres for each fiscal year; and

‘‘(2) manage the program to achieve a national average rate of $18 per acre, which shall include the costs of all financial assistance, technical assistance, and any other expenses associ- ated with enrollment or participation in the program. ‘‘(e) CONSERVATION STEWARDSHIP PAYMENTS.—

‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall pro- vide a payment under the program to compensate the producer for—

‘‘(A) installing and adopting additional conservation activities; and

‘‘(B) improving, maintaining, and managing conserva- tion 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, manage- ment, 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 pro- vide additional payments to producers that, in participating in the program, agree to adopt resource-conserving crop rota- tions 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.

Time period.

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122 STAT. 1775PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 sub- section, 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 mois-

ture 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 pro- gram 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 pro- gram. ‘‘(i) DATA.—The Secretary shall maintain detailed and seg-

mented 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 evalua- tion 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 CON- TRACTS; 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 con- tract was received during the 2008 sign-up period.

Contracts.

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122 STAT. 1776 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(3) EFFECT ON PAYMENTS.—The Secretary shall make pay- ments under this subchapter with respect to conservation secu- rity 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 prin- cipally 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 con-

trolled 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 sub- ject 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 pro- gram.’’; and (B) in subparagraph (B)—

(i) in clause (iv), by striking ‘‘and’’ at the end; and

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122 STAT. 1777PUBLIC LAW 110–246—JUNE 18, 2008

(ii) by striking clause (v) and inserting the fol- lowing 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 agricul-

tural 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 pro-

vide 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 con- servation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) from the private landowner from which the conservation easement or other interest in land will be purchased.

‘‘(d) DETERMINATION OF FAIR MARKET VALUE.—Effective on the date of enactment of the Food, Conservation, and Energy Act of 2008, the fair market value of the conservation easement or other interest in eligible land shall be determined on the basis of an appraisal using an industry approved method, selected by the eligible entity and approved by the Secretary.

‘‘(e) BIDDING DOWN PROHIBITED.—If the Secretary determines that 2 or more applications for cost-share assistance are comparable in achieving the purpose of the program, the Secretary shall not assign a higher priority to any 1 of those applications solely on the basis of lesser cost to the program.

‘‘(f) CONDITION ON ASSISTANCE.—

Effective date.

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122 STAT. 1778 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(1) CONSERVATION PLAN.—Any highly erodible cropland for which a conservation easement or other interest is pur- chased 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 agree- ments with eligible entities to stipulate the terms and condi- tions 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 pur- chases of interests in land, so long as such terms and condi- tions—

‘‘(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 sub- section—

‘‘(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 deter- mined 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 estab-

lished 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 cer-

tified entities for the purchase of conservation easements or other interests in eligible land throughout the duration of such agreements.

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‘‘(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 agree- ment—

‘‘(A) a plan for administering easements that is con- sistent 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 ease-

ments 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 cer- tified entity no longer meets the criteria established under paragraph (2), the Secretary may—

‘‘(i) allow the certified entity a specified period of time, at a minimum 180 days, in which to take such actions as may be necessary to meet the criteria; and

‘‘(ii) revoke the certification of the entity, if after the specified period of time, the certified entity does not meet the criteria established in paragraph (2).’’.

SEC. 2402. FARM VIABILITY PROGRAM.

Section 1238J(b) of the Food Security Act of 1985 (16 U.S.C. 3838j(b)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. SEC. 2403. GRASSLAND RESERVE PROGRAM.

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

‘‘Subchapter D—Grassland Reserve Program

‘‘SEC. 1238N. GRASSLAND RESERVE PROGRAM.

‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary shall estab- lish 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

16 USC 3838n.

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‘‘(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 sub- section (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 domi- nated by grassland, forbs, or shrubland, and the land—

‘‘(A) could provide habitat for animal or plant popu- lations of significant ecological value if the land—

‘‘(i) is retained in its current use; or ‘‘(ii) is restored to a natural condition;

‘‘(B) contains historical or archaeological resources; or ‘‘(C) would address issues raised by State, regional,

and national conservation priorities; or ‘‘(3) is incidental to land described in paragraph (1) or

(2), if the incidental land is determined by the Secretary to be necessary for the efficient administration of a rental contract or easement under the program.

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

‘‘(a) RENTAL CONTRACTS.—To be eligible to enroll eligible land in the program under a rental contract, the owner or operator of the land shall agree—

‘‘(1) to comply with the terms of the contract and, when applicable, a restoration agreement;

‘‘(2) to suspend any existing cropland base and allotment history for the land under another program administered by the Secretary; and

‘‘(3) to implement a grazing management plan, as approved by the Secretary, which may be modified upon mutual agree- ment of the parties.

16 USC 3838o.

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‘‘(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 ease- ment signed by persons holding a security interest or any vested interest in the land;

‘‘(4) to provide proof of unencumbered title to the under- lying 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 agree- ment 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 assist- ance 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 tech- nical 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 grass- land, forb, and shrub species appropriate to that locality;

‘‘(B) haying, mowing, or harvesting for seed production, subject to appropriate restrictions during the nesting sea- son 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 construc- tion 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

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‘‘(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 pro- gram. ‘‘(e) VIOLATIONS.—On a violation of the terms or conditions

of a rental contract, easement, or restoration agreement entered into under this section—

‘‘(1) the contract or easement shall remain in force; and ‘‘(2) the Secretary may require the owner or operator to

refund all or part of any payments received under the program, with interest on the payments as determined appropriate by the Secretary.

‘‘SEC. 1238P. DUTIES OF SECRETARY.

‘‘(a) EVALUATION AND RANKING OF APPLICATIONS.— ‘‘(1) CRITERIA.—The Secretary shall establish criteria to

evaluate and rank applications for rental contracts and ease- ments under the program .

‘‘(2) CONSIDERATIONS.—In establishing the criteria, the Sec- retary 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

16 USC 3838p.

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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. 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 forma- tion 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;

16 USC 3838q.

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‘‘(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 con-

trolled 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 owner-

ship 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 appro- priate 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 pur- poses of the charter.

‘‘(d) COOPERATIVE AGREEMENTS.— ‘‘(1) AUTHORIZED; TERMS AND CONDITIONS.—The Secretary

shall establish the terms and conditions of a cooperative agree- ment 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 coopera- tive 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 protec- tions;

‘‘(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 peri- odic inspections to verify the eligible entity’s enforcement of the easement;

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‘‘(D) subject to subparagraph (E), identify a specific project or a range of projects to be funded under the agree- ment;

‘‘(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 enforce- ment 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 PRO- GRAM.

(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

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(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 associ- ated 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 estab- lished 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 assist- ance provided to a producer for performing practices under this chapter, including compensation for—

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‘‘(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 deter- mined 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 environ- mental quality incentives program established by this chapter.’’.

SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRON- MENTAL 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 imple- mented; 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.

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‘‘(2) LIMITATION ON PAYMENT AMOUNTS.—A payment to a producer for performing a practice may not exceed, as deter- mined by the Secretary—

‘‘(A) 75 percent of the costs associated with planning, design, materials, equipment, installation, labor, manage- ment, 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 ele- ments covered under subparagraph (A); and

‘‘(ii) 100 percent of income foregone for those ele- ments 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 signifi- cance to a practice that, as determined by the Secretary, pro- motes—

‘‘(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 sub- section—

‘‘(i) to not more than 90 percent of the costs associ- ated 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 mate- rials 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.—

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‘‘(1) VOLUNTARY MODIFICATION OR TERMINATION.—The Sec- retary may modify or terminate a contract entered into with a producer under the program if—

‘‘(A) the producer agrees to the modification or termi- nation; 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 deter- mines 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 live- stock 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 Cor- porations (including their affiliated membership organizations) if the Secretary determines that the goals and objectives of the pro- gram will be met by such arrangements, and that statutory limita- tions regarding contracts with individual producers will not be exceeded by any Tribal or Native Corporation member.

‘‘(h) WATER CONSERVATION OR IRRIGATION EFFICIENCY PRAC- TICE.—

‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary may pro- vide 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 produc- tion, unless the producer is participating in a watershed- wide project that will effectively conserve water, as deter- mined 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.

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‘‘(3) PAYMENT LIMITATIONS.—Payments under this sub- section 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 cri- teria for evaluating applications that will ensure that national, State, and local conservation priorities are effectively addressed.

‘‘(b) PRIORITIZATION OF APPLICATIONS.—In evaluating applica- tions under this chapter, the Secretary shall prioritize applica- tions—

‘‘(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 prac-

ticable, 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 oper- ations.’’.

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 ‘‘tech- nical assistance, cost-share payments, or incentive’’;

(2) in paragraph (2), by striking ‘‘farm or ranch’’ and inserting ‘‘farm, ranch, or forest land’’; and

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(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 Secu- rity 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 provi-

sions 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 for- ester; or

‘‘(C) another plan determined appropriate by the Sec- retary.’’.

(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 equiva- lent 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 duplica- tion 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 incen- tive’’. 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 Sec- retary, the Secretary may—

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‘‘(1) waive the limitation otherwise applicable under sub- section (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 enhance- ment and protection, in conjunction with agricultural produc- tion or forest resource management, through the program.

‘‘(2) USE.—The Secretary may provide grants under this subsection to governmental and non-governmental organiza- tions 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 OPER- ATIONS.—

‘‘(1) IMPLEMENTATION ASSISTANCE.—The Secretary shall provide payments under this subsection to producers to imple- ment 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 innova- tive 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:

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122 STAT. 1793PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 develop- ment, including resource condition assessment and mod- eling.

‘‘(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 enhance- ment projects.

‘‘(D) Irrigation system improvement and irrigation effi- ciency 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 bene- fits 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 associa- tion or other group of such producers;

‘‘(B) a State or unit of local government; or ‘‘(C) a federally recognized Indian tribe.

‘‘(3) PARTNERSHIP AGREEMENT.—The term ‘partnership agreement’ means an agreement between the Secretary and a partner.

‘‘(4) PROGRAM.—The term ‘program’ means the agricultural water enhancement program established under subsection (b). ‘‘(b) ESTABLISHMENT OF PROGRAM.—Beginning in fiscal year

2009, the Secretary shall carry out, in accordance with this section and using such procedures as the Secretary determines to be appro- priate, 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 agricul- tural 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 pro- gram 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 cov- ered by the partnership agreement.

‘‘(B) A description of the agricultural water quality or water conservation issues to be addressed by the partner- ship agreement.

Effective date. Procedures. Contracts.

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122 STAT. 1794 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(C) A description of the agricultural water enhance- ment 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 con- siders necessary to adequately evaluate and competitively select applications for partnership agreements. ‘‘(3) DUTIES OF PARTNERS.—A partner under a partnership

agreement shall— ‘‘(A) identify producers participating in the project and

act on their behalf in applying for the program; ‘‘(B) leverage funds provided by the Secretary with

additional funds to help achieve project objectives; ‘‘(C) conduct monitoring and evaluation of project

effects; and ‘‘(D) at the conclusion of the project, report to the

Secretary on project results. ‘‘(d) AGRICULTURAL WATER ENHANCEMENT ACTIVITIES BY PRO-

DUCERS.—The Secretary shall select agricultural water enhance- ment activities proposed by producers according to applicable requirements under the environmental quality incentives program.

‘‘(e) AGRICULTURAL WATER ENHANCEMENT ACTIVITIES BY PART- NERS.—

‘‘(1) COMPETITIVE PROCESS.—The Secretary shall conduct a competitive process to select partners. In carrying out the process, the Secretary shall make public the criteria used in evaluating applications.

‘‘(2) AUTHORITY TO GIVE PRIORITY TO CERTAIN PROPOSALS.— The Secretary may give a higher priority to proposals from partners that—

‘‘(A) include high percentages of agricultural land and producers in a region or other appropriate area;

‘‘(B) result in high levels of applied agricultural water quality and water conservation activities;

‘‘(C) significantly enhance agricultural activity; ‘‘(D) allow for monitoring and evaluation; and ‘‘(E) assist producers in meeting a regulatory require-

ment 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 pri- ority 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 pro- gram 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

Public information.

Reports.

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122 STAT. 1795PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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.—Notwith- standing 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 experi- enced exceptional drought conditions during the previous two calendar years; and

‘‘(2) will capture surface water runoff through the construc- tion, 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 Sec- retary determines that the waiver is necessary to fulfill the objec- tives 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 sec- retary 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 agricul- tural water enhancement activities under proposals described in subsection (e)(3) in an amount sufficient to encourage pro- ducers to convert from irrigated farming to dryland farming. ‘‘(i) CONSISTENCY WITH STATE LAW.—Any agricultural water

enhancement activity conducted under the program shall be con- ducted 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 con- servation activities under the program may be used to pay for the administrative expenses of partners.’’.

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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 car- rying 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.

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‘‘(b) CONSULTATION AND COOPERATION.—The Secretary shall carry out the program in consultation with the Great Lakes Commission created by Article IV of the Great Lakes Basin Compact (82 Stat. 415) and in cooperation with the Administrator of the Environmental Protection Agency and the Secretary of the Army.

‘‘(c) ASSISTANCE.—In carrying out the program, the Secretary may—

‘‘(1) provide project demonstration grants, provide technical assistance, and carry out information and educational programs to improve water quality in the Great Lakes basin by reducing soil erosion and improving sediment control; and

‘‘(2) establish a priority for projects and activities that— ‘‘(A) directly reduce soil erosion or improve sediment

control; ‘‘(B) reduce soil loss in degraded rural watersheds;

or ‘‘(C) improve water quality for downstream watersheds.

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out the program $5,000,000 for each of fiscal years 2008 through 2012.’’. SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM.

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

‘‘(a) CHESAPEAKE BAY WATERSHED DEFINED.—In this section, the term ‘Chesapeake Bay watershed’ means all tributaries, back- waters, 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 Chesa- peake 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 agree-

ments under this subsection, the Secretary shall give special

16 USC 3839bb–4.

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122 STAT. 1798 PUBLIC LAW 110–246—JUNE 18, 2008

consideration to, and begin evaluating, applications with pro- ducers 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 assess- ments to assist producers in implementing conservation activi- ties; and

‘‘(2) proceed expeditiously with the implementation of any agreement with a producer that is consistent with State strate- gies for the restoration of the Chesapeake Bay watershed. ‘‘(f) CONSULTATION.—The Secretary, in consultation with appro-

priate 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 EXECU- TIVE 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 PRO- GRAM.

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

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

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a voluntary public access program under which States and tribal governments may apply for grants to encourage owners and operators of pri- vately-held farm, ranch, and forest land to voluntarily make that land available for access by the public for wildlife-dependent recre- ation, 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

16 USC 3839bb–5.

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‘‘(B) to the maximum extent practicable, other rec- reational 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 MIGRA- TORY 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 regu-

lations as are necessary to carry out this section. ‘‘(f) FUNDING.—Of the funds of the Commodity Credit Corpora-

tion, 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 sec- tion 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 para- graph (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

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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 conserva- tion 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 conserva- tion 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.—Para-

graph (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 CON- SERVATION 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-Fed- eral 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 depos- ited 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.’’.

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122 STAT. 1801PUBLIC LAW 110–246—JUNE 18, 2008

SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY.

(a) REGIONAL EQUITY AND FLEXIBILITY.—Section 1241(d) of the Food Security Act of 1985 (16 U.S.C. 3841(d)) is amended—

(1) by striking ‘‘Before April 1’’ and inserting the following: ‘‘(1) PRIORITY FUNDING TO PROMOTE EQUITY.—Before April

1’’; (2) by striking ‘‘$12,000,000’’ and inserting ‘‘$15,000,000’’;

and (3) by adding at the end the following new paragraph: ‘‘(2) SPECIFIC FUNDING ALLOCATIONS.—In determining the

specific funding allocations for States under paragraph (1), the Secretary shall consider the respective demand in each State for each program covered by such paragraph.’’. (b) ALLOCATIONS REVIEW AND UPDATE.—Section 1241 of the

Food Security Act of 1985 (16 U.S.C. 3841) is amended by inserting after subsection (e), as added by section 2702, the following new subsection:

‘‘(f) ALLOCATIONS REVIEW AND UPDATE.— ‘‘(1) REVIEW.—Not later than January 1, 2012, the Sec-

retary 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 con- servation 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 CON- SERVATION 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 steward- ship 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.’’.

Deadline.

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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, Nutri- tion, 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 pro- gram 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 incen- tives program for land determined to have special environ- mental significance pursuant to section 1240G(b).

‘‘(5) Payments made under the agricultural water enhance- ment 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 tech- nical 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 agricul- tural, forestry, or related uses.

‘‘(c) PROVISION OF TECHNICAL ASSISTANCE.—The Secretary shall provide technical assistance under this title to an eligible partici- pant—

‘‘(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 partici- pant 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

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122 STAT. 1803PUBLIC LAW 110–246—JUNE 18, 2008

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 imple- ment conservation measures.

‘‘(2) REGULATIONS.—Not later than 180 days after the date of the enactment of the Food, Conservation, and Energy Act of 2008, the Secretary shall promulgate such regulations as are necessary to carry out this section.

‘‘(3) EXPERTISE.—In promulgating such regulations, the Secretary, to the maximum extent practicable, shall—

‘‘(A) ensure that persons with expertise in the technical aspects of conservation planning, watershed planning, and environmental engineering, including commercial entities, nonprofit entities, State or local governments or agencies, and other Federal agencies, are eligible to become approved providers of the technical assistance;

‘‘(B) provide national criteria for the certification of third party providers; and

‘‘(C) approve any unique certification standards estab- lished at the State level.

‘‘(f) ADMINISTRATION.— ‘‘(1) FUNDING.—Effective for fiscal year 2008 and each sub-

sequent fiscal year, funds of the Commodity Credit Corporation made available to carry out technical assistance for each of the programs specified in section 1241 shall be available for the provision of technical assistance from third-party providers under this section.

‘‘(2) TERM OF AGREEMENT.—An agreement with a third- party provider under this section shall have a term that—

‘‘(A) at a minimum, is equal to the period beginning on the date on which the agreement is entered into and ending on the date that is 1 year after the date on which all activities performed pursuant to the agreement have been completed;

‘‘(B) does not exceed 3 years; and ‘‘(C) can be renewed, as determined by the Secretary.

‘‘(3) REVIEW OF CERTIFICATION REQUIREMENTS.—Not later than 1 year after the date of enactment of the Food, Conserva- tion, 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 accel- erate conservation program delivery.

Deadline.

Effective date.

Criteria.

Deadline.

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‘‘(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 custom- arily 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 agri- cultural, 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 para-

graph (1), the Secretary shall consult with eligible participants, crop consultants, cooperative extension and land grant univer- sities, nongovernmental organizations, and other qualified enti- ties.

‘‘(3) EXPEDITED REVISION OF STANDARDS.—If the Secretary determines under paragraph (1) that revisions to the conserva- tion practice standards, including engineering design specifica- tions, are necessary, the Secretary shall establish an adminis- trative 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 incor- porate 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 produc- tion or precision agriculture.

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122 STAT. 1805PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(2) AVAILABILITY OF ADEQUATE TECHNICAL ASSISTANCE.— ‘‘(A) IN GENERAL.—The Secretary shall ensure that ade-

quate technical assistance is available for the implementa- tion 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 organiza- tions; and

‘‘(ii) program specifications that allow for innova- tive 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 estab- lish 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.

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‘‘(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 part- nership 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 con- servation priorities related to agricultural production and non- industrial 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, collabo- rating 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, evalu- ating, 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;

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122 STAT. 1807PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 pro- vided 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 partici- pate in the Initiative.

‘‘(h) TECHNICAL AND FINANCIAL ASSISTANCE.—The Secretary shall provide appropriate technical and financial assistance to pro- ducers 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.—

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‘‘(1) INCENTIVES AUTHORIZED.—In carrying out any con- servation 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 para-

graph (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 sec- tion 1212. ‘‘(3) WAIVER TO EXCLUDE CERTAIN ACREAGE.—The Secretary

may grant a waiver to exclude acreage enrolled under sub- section (c)(2)(B) or (f)(4) of section 1234 from the limitations in paragraph (1)(A) with the concurrence of the county govern- ment of the county involved.

‘‘(4) SHELTERBELTS AND WINDBREAKS.—The limitations established under paragraph (1) shall not apply to cropland that is subject to an easement under subchapter C of chapter 1 that is used for the establishment of shelterbelts and windbreaks. ‘‘(g) COMPLIANCE AND PERFORMANCE.—For each conservation

program under subtitle D, the Secretary shall develop procedures— ‘‘(1) to monitor compliance with program requirements; ‘‘(2) to measure program performance; ‘‘(3) to demonstrate whether the long-term conservation

benefits of the program are being achieved; ‘‘(4) to track participation by crop and livestock types; and ‘‘(5) to coordinate activities described in this subsection

with the national conservation program authorized under sec- tion 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

Procedures.

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‘‘(2) the use of conservation practices that benefit native and managed pollinators. ‘‘(i) STREAMLINED APPLICATION PROCESS.—

‘‘(1) IN GENERAL.—In carrying out each conservation pro- gram 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 implementa- tion of conservation programs;

‘‘(ii) conservation program applicants are not required to provide information that is readily avail- able to the Secretary through existing information sys- tems of the Department of Agriculture;

‘‘(iii) information provided by the applicant is man- aged 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 fol- lowing new section: ‘‘SEC. 1245. ENVIRONMENTAL SERVICES MARKETS.

‘‘(a) TECHNICAL GUIDELINES REQUIRED.—The Secretary shall establish technical guidelines that outline science-based methods to measure the environmental services benefits from conservation and land management activities in order to facilitate the participa- tion 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 bene- fits.

‘‘(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 estab- lish guidelines for a process to verify that a farmer, rancher, or forest landowner who reports an environmental services

16 USC 3845.

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benefit pursuant to the protocol required by paragraph (2) of subsection (b) for inclusion in the registry required by para- graph (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 inde- pendent 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 exper-

tise or experience. ‘‘(3) Other interested persons, as determined by the Sec-

retary.’’.

SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

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

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

‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary shall estab- lish 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 agri- culture 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 plan- ning 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

16 USC 3851.

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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 substan- tially-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 agree- ment entered into under subsection (b); and

‘‘(2) is acting within the scope of the agreement.’’. SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND

THEIR RESPONSIBILITIES.

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

‘‘Subtitle G—State Technical Committees

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

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a technical committee in each State to assist the Secretary in the considerations relating to implementation and technical aspects of the conservation programs under this title.

‘‘(b) STANDARDS.—Not later than 180 days after the date of enactment of the Food, Conservation, and Energy Act of 2008, the Secretary shall develop—

‘‘(1) standard operating procedures to standardize the oper- ations 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

Deadline.

16 USC 3861.

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122 STAT. 1812 PUBLIC LAW 110–246—JUNE 18, 2008

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 demon- strable conservation expertise and experience working with agriculture producers in the State.

‘‘(13) Agribusiness.

‘‘SEC. 1262. RESPONSIBILITIES.

‘‘(a) IN GENERAL.—Each State technical committee established under section 1261 shall meet regularly to provide information, analysis, and recommendations to appropriate officials of the Department of Agriculture who are charged with implementing the conservation provisions of this title.

‘‘(b) PUBLIC NOTICE AND ATTENDANCE.—Each State technical committee shall provide public notice of, and permit public attend- ance 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 Sec- retary 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.’’.

16 USC 3862.

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122 STAT. 1813PUBLIC LAW 110–246—JUNE 18, 2008

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 Insur- ance 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 fol- lowing 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 Insur- ance 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:

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122 STAT. 1814 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘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 conserva- tion planning, technical consultation, and assistance with design and implementation of conservation prac- tices; and

‘‘(ii) technical infrastructure, including activities, processes, tools, and agency functions needed to sup- port delivery of technical services, such as technical standards, resource inventories, training, data, tech- nology, 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 CONSERVA-

TION 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 Conserva- tion 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

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122 STAT. 1815PUBLIC LAW 110–246—JUNE 18, 2008

(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 sub-

section: ‘‘(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 sub-

sections: ‘‘(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 pro- gram, including the content, scope, process, participation in, and other elements of the program, as determined by the Secretary.’’; and

(3) in subsection (d), as redesignated by paragraph (1), by striking ‘‘December 31, 1979’’ and all that follows through ‘‘December 31, 2007’’ and inserting ‘‘December 31, 2011, and December 31, 2016’’. (d) REPORTS TO CONGRESS.—Section 7 of the Soil and Water

Resources Conservation Act of 1977 (16 U.S.C. 2006) is amended to read as follows:

‘‘SEC. 7. REPORTS TO CONGRESS.

‘‘(a) APPRAISAL.—Not later than the date on which Congress convenes in 2011 and 2016, the President shall transmit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate the appraisal developed under section 5 and completed before the end of the previous year.

‘‘(b) PROGRAM AND STATEMENT OF POLICY.—Not later than the date on which Congress convenes in 2012 and 2017, the President shall transmit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate—

President.

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‘‘(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 Depart- ment 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 Agri- culture 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.

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122 STAT. 1817PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 para- graph, 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 Sec- retary 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)’’.

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122 STAT. 1818 PUBLIC LAW 110–246—JUNE 18, 2008

(2) Section 205 of the Colorado River Basin Salinity Control Act (43 U.S.C. 1595) is amended by striking subsection (f) and inserting the following new subsection: ‘‘(f) UP-FRONT COST SHARE.—

‘‘(1) IN GENERAL.—Effective beginning on the date of enact- ment 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 para- graph.’’.

SEC. 2807. DESERT TERMINAL LAKES.

Section 2507 of the Farm Security and Rural Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107–171) is amended—

(1) in subsection (a)— (A) by striking ‘‘(a)’’ and all that follows through

‘‘$200,000,000’’ and inserting ‘‘(a) TRANSFER.—Subject to subsection (b) and paragraph (1) of section 207(a) of Public Law 108–7 (117 Stat. 146), notwithstanding paragraph (3) of that section, on the date of enactment of the Food, Conservation, and Energy Act of 2008, the Secretary of Agriculture shall transfer $175,000,000’’; and

(B) by striking the quotation marks at the beginning of paragraphs (1) and (2); and (2) by striking subsection (b) and inserting the following

new subsection: ‘‘(b) PERMITTED USES.—In any case in which there are willing

sellers, the funds described in subsection (a) may be used— ‘‘(1) to lease water; or ‘‘(2) to purchase land, water appurtenant to the land, and

related interests in the Walker River Basin in accordance with section 208(a)(1)(A) of the Energy and Water Development Appropriations Act, 2006 (Public Law 109–103; 119 Stat. 2268).’’.

Subtitle J—Miscellaneous Conservation Provisions

SEC. 2901. HIGH PLAINS WATER STUDY.

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

Texas.

Effective date.

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122 STAT. 1819PUBLIC LAW 110–246—JUNE 18, 2008

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

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

SEC. 2903. TRANSITION.

(a) CONTINUATION OF PROGRAMS IN FISCAL YEAR 2008.—Except as otherwise provided by an amendment made by this title, the Secretary of Agriculture shall continue to carry out any program or activity covered by title XII of the Food Security Act (16 U.S.C. 3801 et seq.) until September 30, 2008, using the provisions of law applicable to the program or activity as they existed on the day before the date of the enactment of this Act and using funds made available under such title for fiscal year 2008 for the program or activity.

(b) GROUND AND SURFACE WATER CONSERVATION PROGRAM.— During the period beginning on the date of the enactment of this Act and ending on September 30, 2008, the Secretary of Agriculture shall continue to carry out the ground and surface water conserva- tion program under section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9), as in effect before the amendment made by section 2510, using the terms, conditions, and funds available to the Secretary to carry out such program on the day before the date of the enactment of this Act.

SEC. 2904. REGULATIONS.

(a) ISSUANCE.—Except as otherwise provided in this title or an amendment made by this title, not later than 90 days after the date of enactment of this Act, the Secretary of Agriculture, in consultation with the Commodity Credit Corporation, shall promulgate such regulations as are necessary to implement this title.

(b) APPLICABLE AUTHORITY.—The promulgation of regulations under subsection (a) and administration of this title—

(1) shall be carried out without regard to— (A) chapter 35 of title 44, United States Code (com-

monly known as the Paperwork Reduction Act); and (B) the Statement of Policy of the Secretary of Agri-

culture 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 car- rying out this section, the Secretary shall use the authority provided under section 808(2) of title 5, United States Code.

16 USC 3801 note. Deadline.

Time period. 16 USC 3839aa–9 note.

16 USC 3801 note.

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122 STAT. 1820 PUBLIC LAW 110–246—JUNE 18, 2008

TITLE III—TRADE

Subtitle A—Food for Peace Act SEC. 3001. SHORT TITLE.

(a) IN GENERAL.—Section 1 of the Agricultural Trade Develop- ment 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 para-

graph (2) is amended— (A) by striking ‘‘Agricultural Trade Development and

Assistance Act of 1954’’ each place it appears and inserting ‘‘Food for Peace Act’’; and

(B) in each section heading, by striking ‘‘AGRICUL- TURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954’’ each place it appears and inserting ‘‘FOOD FOR PEACE ACT’’. (2) PROVISIONS OF LAW.—The provisions of law referred

to in paragraph (1) are the following: (A) The Agriculture and Food Act of 1981 (Public Law

97–98; 95 Stat. 1213). (B) The Agricultural Act of 1949 (7 U.S.C. 1421 et

seq.). (C) Section 9(a) of the Military Construction Codifica-

tion Act (7 U.S.C. 1704c). (D) Section 201 of the Africa: Seeds of Hope Act of

1998 (7 U.S.C. 1721 note; Public Law 105–385). (E) The Bill Emerson Humanitarian Trust Act (7

U.S.C. 1736f–1 et seq.). (F) The Food for Progress Act of 1985 (7 U.S.C. 1736o). (G) Section 3107 of the Farm Security and Rural

Investment Act of 2002 (7 U.S.C. 1736o–1). (H) Sections 605B and 606C of the Act of August

28, 1954 (commonly known as the ‘‘Agricultural Act of 1954’’) (7 U.S.C. 1765b, 1766b).

(I) Section 206 of the Agricultural Act of 1956 (7 U.S.C. 1856).

(J) The Agricultural Competitiveness and Trade Act of 1988 (7 U.S.C. 5201 et seq.).

(K) The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.).

(L) The Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.).

(M) Section 301 of title 13, United States Code. (N) Section 8 of the Endangered Species Act of 1973

(16 U.S.C. 1537). (O) Section 604 of the Enterprise for the Americas

Act of 1992 (22 U.S.C. 2077). (P) Section 5 of the International Health Research

Act of 1960 (22 U.S.C. 2103). (Q) The Foreign Assistance Act of 1961 (22 U.S.C.

2151 et seq.). (R) The Horn of Africa Recovery and Food Security

Act (22 U.S.C. 2151 note; Public Law 102–274).

12 USC 635i–6.

7 USC 5676, 5693, 5713.

7 USC 1691 note, 5201.

7 USC 1431.

7 USC 1446c–1.

22 USC 2431e.

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122 STAT. 1821PUBLIC LAW 110–246—JUNE 18, 2008

(S) Section 105 of the Mutual Educational and Cultural Exchange Act of 1961 (22 U.S.C. 2455).

(T) Section 35 of the Foreign Military Sales Act (22 U.S.C. 2775).

(U) The Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).

(V) Section 1707 of the Cuban Democracy Act of 1992 (22 U.S.C. 6006).

(W) The Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.).

(X) Section 902 of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201).

(Y) Chapter 553 of title 46, United State Code. (Z) Section 4 of the Strategic and Critical Materials

Stock Piling Act (50 U.S.C. 98c). (AA) The Food, Agriculture, Conservation, and Trade

Act of 1990 (Public Law 101–624; 104 Stat. 3359). (BB) Section 738 of the Agriculture, Rural Develop-

ment, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (Public Law 106–387; 114 Stat 1549A–34).

(c) REFERENCES.—Any reference in any Federal, State, tribal, or local law (including regulations) to the ‘‘Agricultural Trade Development and Assistance Act of 1954’’ shall be considered to be a reference to the ‘‘Food for Peace Act’’. SEC. 3002. UNITED STATES POLICY.

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

(4) and (5), respectively. SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b)) is amended by striking ‘‘(b)’’ and all that follows through paragraph (1) and inserting the following:

‘‘(b) SENSE OF CONGRESS.—It is the sense of Congress that— ‘‘(1) in negotiations at the Food Aid Convention, the World

Trade Organization, the United Nations Food and Agriculture Organization, and other appropriate venues, the President shall—

‘‘(A) seek commitments of higher levels of food aid by donors in order to meet the legitimate needs of devel- oping 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 non- emergency needs shall not be subject to limitation, including in-kind commodities, provision of funds for agri- cultural commodity procurement, and monetization of

7 USC 1691 note.

7 USC 1765d–1.

46 USC 55314, 55316.

22 USC 6041, 6062.

22 USC 5413, 5423, 5425.

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122 STAT. 1822 PUBLIC LAW 110–246—JUNE 18, 2008

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 disincen- tives to local agricultural production and marketing and with minimal potential for disruption of commer- cial 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 PRI- VATE 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 para-

graphs (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 vol- untary 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 para- graphs (1) through (8), respectively.

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122 STAT. 1823PUBLIC LAW 110–246—JUNE 18, 2008

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 emer-

gency food needs, arising from man-made and natural disas- ters;’’;

(2) in paragraph (5)— (A) by inserting ‘‘food security and support’’ after ‘‘pro-

mote’’; 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 activi- ties.’’.

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 tar- get 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 exper- tise in food aid commodity quality enhancements;

‘‘(B) may enter into contracts to obtain the services of such entities; and

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122 STAT. 1824 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 sub- section.’’.

SEC. 3009. GENERATION AND USE OF CURRENCIES BY PRIVATE VOL- UNTARY 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 over- seas for programs under this Act.’’; and

(2) in subsection (f), by striking ‘‘2007’’ and inserting ‘‘2012’’. SEC. 3012. ADMINISTRATION.

Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is amended—

(1) in subsection (a)(3), by striking ‘‘and the conditions that must be met for the approval of such proposal’’;

(2) in subsection (c), by striking paragraph (3); (3) by striking subsection (d) and inserting the following:

‘‘(d) TIMELY PROVISION OF COMMODITIES.—The Administrator, in consultation with the Secretary, shall develop procedures that ensure expedited processing of commodity call forwards in order to provide commodities overseas in a timely manner and to the extent feasible, according to planned delivery schedules.’’; and

(4) by adding at the end the following: ‘‘(f) PROGRAM OVERSIGHT, MONITORING, AND EVALUATION.—

‘‘(1) DUTIES OF ADMINISTRATOR.—The Administrator, in con- sultation 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 sys-

tems and activities described in paragraph (1) shall include—

Procedures.

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122 STAT. 1825PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(A) program monitors in countries that receive assist- ance under this title;

‘‘(B) country and regional food aid impact evaluations; ‘‘(C) the identification and implementation of best prac-

tices 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 under- taken by the Administrator to conduct oversight of non- emergency 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 activi- ties relating to each activity carried out by the Adminis- trator under paragraph (1), the Administrator may enter into contracts with 1 or more individuals for personal service to be performed in recipient countries or neigh- boring 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 regula- tions) administered by the Office of Personnel Management.

‘‘(C) PERSONAL SERVICE.—Subparagraph (A) does not limit the ability of the Administrator to enter into a con- tract with any individual for personal service under section 202(a). ‘‘(6) FUNDING.—

‘‘(A) IN GENERAL.—Subject to section 202(h)(3), in addi- tion 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

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122 STAT. 1826 PUBLIC LAW 110–246—JUNE 18, 2008

$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 confiden- tial information from the copy of the report submitted for public display under that paragraph.’’.

SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPOR- TATION, 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 para- graphs (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 For-

estry 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.’’.

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122 STAT. 1827PUBLIC LAW 110–246—JUNE 18, 2008

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 fol-

lowing: ‘‘(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 PRO-

GRAMS 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);

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122 STAT. 1828 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 agricul- tural 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 insecu- rity 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 effective- ness 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 AGRICUL- TURAL 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 pro- gram, 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’’.

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122 STAT. 1829PUBLIC LAW 110–246—JUNE 18, 2008

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 Cor-

poration 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 Com- modity 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 avail-

able 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 non- emergency 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 supple- mental appropriations request for a sum equal to the amount needed to reach the required spending level for nonemergency food assistance under paragraph (1) and the amount exhausted under paragraph (2)(B). ‘‘(3) NOTIFICATION TO CONGRESS.—If the President makes

the determination described in paragraph (2)(A), the President shall submit to Congress written notification that the deter- mination 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 fol- lowing: ‘‘(a) IN GENERAL.—To the maximum’’; and

(2) by adding at the end the following: ‘‘(b) REPORT REGARDING EFFORTS TO IMPROVE PROCUREMENT

PLANNING.—

President.

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122 STAT. 1830 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 con- tains a description of each effort taken by the Administrator and the Secretary to improve planning for food and transpor- tation 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 Adminis- trator 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 fore-

casting; 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 Sep-

tember 30, 2003, the Administrator, in consultation with the Secretary’’ and inserting ‘‘Not later than September 30, 2008, the Administrator, in consultation with the Sec- retary’’; 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 rec- ommendations included in the report entitled ‘Micro- nutrient Compliance Review of Fortified Public Law 480 Commodities’, published in October 2001, with implementa- tion 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 para- graph (1)—

(1) by striking ‘‘not less than’’ and inserting ‘‘not less than the greater of $10,000,000 or’’; and

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122 STAT. 1831PUBLIC LAW 110–246—JUNE 18, 2008

(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 para- graph (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 Carib- bean Basin countries; and

‘‘(B) $5,000,000 for other developing or middle-income countries or emerging markets not described in subpara- graph (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 sub-

sections (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 commod-

ities; ‘‘(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 facili- tates accurate country risk designations and timely adjust- ments 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 competi- tiveness; 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:

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122 STAT. 1832 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 Com- modity 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 Com- modity Credit Corporation can make available using unobli- gated 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 ‘‘sub- section (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 commod- ities that are organically produced (as defined in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502)))’’.

(b) FUNDING.—Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking ‘‘$200,000,000 for each of fiscal years 2006 and 2007’’ and inserting ‘‘$200,000,000 for each of fiscal years 2008 through 2012’’.

SEC. 3103. EXPORT ENHANCEMENT PROGRAM.

(a) IN GENERAL.—Section 301 of the Agricultural Trade Act of 1978 (7 U.S.C. 5651) is repealed.

(b) CONFORMING AMENDMENTS.—The Agricultural Trade Act of 1978 is amended—

(1) in title III, by striking the title heading and inserting the following:

‘‘TITLE III—BARRIERS TO EXPORTS’’;

(2) by redesignating sections 302 and 303 (7 U.S.C. 5652 and 5653) as sections 301 and 302, respectively;

(3) in section 302 (as redesignated by paragraph (2)), by striking ‘‘, such as that established under section 301,’’;

(4) in section 401 (7 U.S.C. 5661)— (A) in subsection (a), by striking ‘‘section 201, 202,

or 301’’ and inserting ‘‘section 201 or 202’’; and (B) in subsection (b), by striking ‘‘sections 201, 202,

and 301’’ and inserting ‘‘sections 201 and 202’’; and

7 USC 5653.

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122 STAT. 1833PUBLIC LAW 110–246—JUNE 18, 2008

(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 ‘‘Com- mittee on International Relations’’ and inserting ‘‘Committee on Foreign Affairs’’.

(b) FUNDING.—Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 5723(a)) is amended by striking ‘‘2002 through 2007’’ and inserting ‘‘2008 through 2012’’. SEC. 3105. FOOD FOR PROGRESS ACT OF 1985.

(a) IN GENERAL.—The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking ‘‘2007’’ each place it appears and inserting ‘‘2012’’.

(b) DESIGNATION OF PROJECT IN SUB-SAHARAN AFRICA.—The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended in subsection (f) by adding at the end the following:

‘‘(6) PROJECT IN MALAWI.— ‘‘(A) IN GENERAL.—In carrying out this section during

fiscal year 2009, the President shall approve not less than 1 multiyear project for Malawi—

‘‘(i) to promote sustainable agriculture; and ‘‘(ii) to increase the number of women in leadership

positions. ‘‘(B) USE OF ELIGIBLE COMMODITIES.—Of the eligible

commodities used to carry out this section during the period in which the project described in subparagraph (A) is car- ried 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 des- ignate 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 fol-

lowing: ‘‘(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’’.

President.

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122 STAT. 1834 PUBLIC LAW 110–246—JUNE 18, 2008

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 accord- ance 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—

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122 STAT. 1835PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(I) a sudden calamity, such as an earthquake, flood, locust infestation, or similar unforeseen dis- aster;

‘‘(II) a human-made emergency resulting in— ‘‘(aa) a significant influx of refugees; ‘‘(bb) the internal displacement of popu-

lations; 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 popu- lations to meet food needs; and

‘‘(IV) severe food access or availability condi- tions 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 REQUIRE- MENTS.—Nothing in this paragraph requires a waiver by the Administrator of the Agency for International Develop- ment 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.—

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122 STAT. 1836 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 secu- rity insured by the Federal Government in which a regu- lated insurance company may invest under the laws of the District of Columbia.’’; and (5) in subsection (h), in each of paragraphs (1) and (2),

by striking ‘‘2007’’ each place it appears and inserting ‘‘2012’’.

SEC. 3202. GLOBAL CROP DIVERSITY TRUST.

(a) CONTRIBUTION.—The Administrator of the United States Agency for International Development shall contribute funds to endow the Global Crop Diversity Trust (referred to in this section as the ‘‘Trust’’) to assist in the conservation of genetic diversity in food crops through the collection and storage of the germplasm of food crops in a manner that provides for—

(1) the maintenance and storage of seed collections; (2) the documentation and cataloguing of the genetics and

characteristics of conserved seeds to ensure efficient reference for researchers, plant breeders, and the public;

(3) building the capacity of seed collection in developing countries;

(4) making information regarding crop genetic data publicly available for researchers, plant breeders, and the public (including through the provision of an accessible Internet website);

(5) the operation and maintenance of a back-up facility in which are stored duplicate samples of seeds, in the case of natural or man-made disasters; and

(6) oversight designed to ensure international coordination of those actions and efficient, public accessibility to that diver- sity through a cost-effective system. (b) UNITED STATES CONTRIBUTION LIMIT.—The aggregate con-

tributions 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.

22 USC 2220a note.

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122 STAT. 1837PUBLIC LAW 110–246—JUNE 18, 2008

(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 appro- priate 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 PRO- GRAM.

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

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122 STAT. 1838 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(B) 20 years.’’; and (3) in subsection (d)(1)(A)(i) by striking ‘‘2007’’ and inserting

‘‘2012’’.

SEC. 3205. CONSULTATIVE GROUP TO ELIMINATE THE USE OF CHILD LABOR AND FORCED LABOR IN IMPORTED AGRICUL- TURAL 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 Conven- tion 182, the Convention Concerning the Prohibition and Imme- diate 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 Traf- ficking Victims Protection Act of 2000 (22 U.S.C. 7102)); and (B) by 1 or more individuals who, at the time of per-

forming the work or service, were being subjected to a severe form of trafficking in persons (as that term is defined in that section).

(b) ESTABLISHMENT.—There is established a group to be known as the ‘‘Consultative Group to Eliminate the Use of Child Labor and Forced Labor in Imported Agricultural Products’’ to develop recommendations relating to guidelines to reduce the likelihood that agricultural products or commodities imported into the United States are produced with the use of forced labor and child labor.

(c) DUTIES.— (1) IN GENERAL.—Not later than 2 years after the date

of enactment of this Act and in accordance with section 105(d) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7103(d)), as applicable to the importation of agricultural prod- ucts 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 prod- ucts or commodities imported into the United States are pro- duced 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

Recommen- dations.

Deadlines.

22 USC 7112 note.

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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 Agri- culture, 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 inde- pendent, third-party supply chain monitoring for forced labor or child labor;

(5) 2 members shall represent institutions of higher edu- cation 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 stand- ards 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 establish- ment of the guidelines issued under subsection (c)(2), as deter- mined 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 Agri-

culture 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 Com- mittee 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 Agri- culture 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.

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

(a) DEFINITIONS.—In this section: (1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the

Administrator of the Agency for International Development. (2) APPROPRIATE COMMITTEE OF CONGRESS.—The term

‘‘appropriate committee of Congress’’ means— (A) the Committee on Agriculture, Nutrition, and For-

estry of the Senate; (B) the Committee on Agriculture of the House of Rep-

resentatives; 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 agricul- tural 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 organiza-

tion’’ means an organization that is— (A) described in section 202(d) of the Food for Peace

Act (7 U.S.C. 1722(d)); and (B) with respect to nongovernmental organizations,

subject to regulations promulgated or guidelines issued to carry out this section, including United States audit requirements that are applicable to nongovernmental organizations.

(b) STUDY; FIELD-BASED PROJECTS.— (1) STUDY.—

(A) IN GENERAL.—Not later than 30 days after the date of enactment of this Act, the Secretary shall initiate a study of prior local and regional procurements for food aid programs conducted by—

(i) other donor countries; (ii) private voluntary organizations; and (iii) the World Food Program of the United

Nations. (B) REPORT.—Not later than 180 days after the date

of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report containing the results of the study conducted under subparagraph (A). (2) FIELD-BASED PROJECTS.—

(A) IN GENERAL.—In accordance with subparagraph (B), the Secretary shall provide grants to, or enter into cooperative agreements with, eligible organizations to carry out field-based projects that consist of local or regional procurements of eligible commodities to respond to food crises and disasters in accordance with this section.

(B) CONSULTATION WITH ADMINISTRATOR.—In carrying out the development and implementation of field-based projects under subparagraph (A), the Secretary shall con- sult with the Administrator.

(c) PROCUREMENT.—

Deadline.

7 USC 1726c.

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122 STAT. 1841PUBLIC LAW 110–246—JUNE 18, 2008

(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 method- ology 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 signifi- cantly 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 procure- ment 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 accord-

ance with such terms and conditions as the Secretary con- siders to be appropriate, require from each eligible organization commitments designed to prevent or restrict—

(i) the resale or transshipment of any eligible com- modity procured under this section to any country other than the recipient country; and

(ii) the use of the eligible commodity for any pur- pose 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 procure- ment 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 deter- mined by the Secretary.

(d) REGULATIONS; GUIDELINES.— (1) IN GENERAL.—In accordance with paragraph (2), not

later than 180 days after the date of completion of the study under subsection (b)(1), the Secretary shall promulgate regula- tions 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

Deadline.

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122 STAT. 1842 PUBLIC LAW 110–246—JUNE 18, 2008

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 AGREE-

MENTS.— (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 organiza- tion 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 submis- sion 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 con- taining 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 subpara- graph (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 pro-

duced 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

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122 STAT. 1843PUBLIC LAW 110–246—JUNE 18, 2008

on which the Secretary promulgates regulations or issues guide- lines under subsection (d)(1). (f) INDEPENDENT EVALUATIONS; REPORT.—

(1) INDEPENDENT EVALUATIONS.— (A) IN GENERAL.—Not later than November 1, 2011,

the Secretary shall ensure that an independent third party conducts an independent evaluation of all field-based projects that—

(i) addresses each factor described in subparagraph (B); and

(ii) is conducted in accordance with this section. (B) REQUIRED FACTORS.—The Secretary shall require

the independent third party to develop— (i) with respect to each relevant market in which

an eligible commodity was procured under this section, a description of—

(I) the prevailing and historic supply, demand, and price movements of the market (including the extent of competition for procurement bids);

(II) the impact of the procurement of the eligible commodity on producer and consumer prices in the market;

(III) each government market interference or other activity of the donor country that might have significantly affected the supply or demand of the eligible commodity in the area at which the local or regional procurement occurred;

(IV) the quantities and types of eligible commodities procured in the market;

(V) the time frame for procurement of each eligible commodity; and

(VI) the total cost of the procurement of each eligible commodity (including storage, handling, transportation, and administrative costs); (ii) an assessment regarding—

(I) whether the requirements of this section have been met;

(II) the impact of different methodologies and approaches on—

(aa) local and regional agricultural pro- ducers (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 procure-

ment and delivery; (IV) quality and safety assurances; and (V) implementation costs; and

Deadline.

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122 STAT. 1844 PUBLIC LAW 110–246—JUNE 18, 2008

(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 inde- pendent third party access to each record and report that the independent third party determines to be necessary to complete the independent evaluation.

(D) PUBLIC ACCESS TO RECORDS AND REPORTS.—Not later than 180 days after the date described in paragraph (2), the Secretary shall provide public access to each record and report described in subparagraph (C). (2) REPORT.—Not later than 4 years after the date of enact-

ment of this Act, the Secretary shall submit to the appropriate committees of Congress a report that contains the analysis and findings of the independent evaluation conducted under paragraph (1)(A). (g) FUNDING.—

(1) COMMODITY CREDIT CORPORATION.—The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section.

(2) FUNDING AMOUNTS.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section—

(A) $5,000,000 for fiscal year 2009; (B) $25,000,000 for fiscal year 2010; (C) $25,000,000 for fiscal year 2011; and (D) $5,000,000 for fiscal year 2012.

Subtitle D—Softwood Lumber SEC. 3301. SOFTWOOD LUMBER.

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

‘‘TITLE VIII—SOFTWOOD LUMBER ‘‘SEC. 801. SHORT TITLE; TABLE OF CONTENTS.

‘‘(a) SHORT TITLE.—This title may be cited as the ‘Softwood Lumber Act of 2008’.

‘‘(b) TABLE OF CONTENTS.—The table of contents for this title is as follows:

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

‘‘SEC. 802. DEFINITIONS.

‘‘In this title: 19 USC 1683.

19 USC 1654 note.

Softwood Lumber Act of 2008.

Deadline.

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122 STAT. 1845PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 ‘cus- toms laws of the United States’ means any law or regulation enforced or administered by U.S. Customs and Border Protec- tion.

‘‘(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 proc- essing, 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.

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122 STAT. 1846 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(B) RELATED PERSONS.—For purposes of this para- graph, 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 Rev- enue 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 per- son. ‘‘(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 deter- mined 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 quan- tities.

‘‘(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 quan- tities. ‘‘(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 convey- ance 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).

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122 STAT. 1847PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(8) PERSON.—The term ‘person’ includes any individual, partnership, corporation, association, organization, business trust, government entity, or other entity subject to the jurisdic- tion of the United States.

‘‘(9) UNITED STATES.—The term ‘United States’ means the customs territory of the United States, as defined in General Note 2 of the HTS.

‘‘SEC. 803. ESTABLISHMENT OF SOFTWOOD LUMBER IMPORTER DEC- LARATION PROGRAM.

‘‘(a) ESTABLISHMENT OF PROGRAM.— ‘‘(1) IN GENERAL.—The President shall establish and main-

tain 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 pub- lished by the Under Secretary for International Trade of the Department of Commerce pursuant to section 805 to the export price provided in subsection (b)(1). ‘‘(c) IMPORTER DECLARATIONS.—Pursuant to procedures pre-

scribed 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 con- sulting the determinations published by the Under Secretary for International Trade of the Department of Commerce pursu- ant 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 pro- vided 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

Procedures.

President. 19 USC 1683a.

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122 STAT. 1848 PUBLIC LAW 110–246—JUNE 18, 2008

under an international agreement entered into by the country of export and the United States; and

‘‘(ii) consistent with the export charge determina- tions published by the Under Secretary for Inter- national Trade pursuant to section 805(b).

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

‘‘(a) PRODUCTS INCLUDED IN PROGRAM.—The following products shall be subject to the importer declaration program established under section 803:

‘‘(1) IN GENERAL.—All softwood lumber and softwood lumber products classified under subheading 4407.10.00, 4409.10.10, 4409.10.20, or 4409.10.90 of the HTS, including the following softwood lumber, flooring, and siding:

‘‘(A) Coniferous wood, sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded, or finger- jointed, of a thickness exceeding 6 millimeters.

‘‘(B) Coniferous wood siding (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) along any of its edges or faces, whether or not planed, sanded, or finger- jointed.

‘‘(C) Other coniferous wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) along any of its edges or faces (other than wood moldings and wood dowel rods) whether or not planed, sanded, or finger-jointed.

‘‘(D) Coniferous wood flooring (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) along any of its edges or faces, whether or not planed, sanded, or finger- jointed.

‘‘(E) Coniferous drilled and notched lumber and angle cut lumber. ‘‘(2) PRODUCTS CONTINUALLY SHAPED.—Any product classi-

fied 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 pro- vided 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 prod-

ucts shall be excluded from the importer declaration program estab- lished under section 803:

‘‘(1) Trusses and truss kits, properly classified under sub- heading 4418.90 of the HTS.

‘‘(2) I-joist beams. ‘‘(3) Assembled box-spring frames. ‘‘(4) Pallets and pallet kits, properly classified under sub-

heading 4415.20 of HTS. ‘‘(5) Garage doors.

19 USC 1683b.

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‘‘(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 sub- chapter 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 run- ners), 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 con- tained 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 decora- tive 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

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‘‘(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.

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122 STAT. 1851PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 Presi- dent shall be guided by the article descriptions provided in this section.

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

‘‘(a) DETERMINATION.—The Under Secretary for International Trade of the Department of Commerce shall determine, on a monthly basis, any export charges (expressed as a percentage of export price) to be collected by a country of export from exporters of softwood lumber or softwood lumber products described in section 804(a) in order to ensure compliance with any international agree- ment entered into by that country and the United States.

‘‘(b) PUBLICATION.—The Under Secretary for International Trade shall immediately publish any determination made under subsection (a) on the website of the International Trade Administra- tion of the Department of Commerce, and in any other manner the Under Secretary considers appropriate.

‘‘SEC. 806. RECONCILIATION.

‘‘The Secretary of the Treasury shall conduct reconciliations to ensure the proper implementation and operation of international agreements entered into between a country of export of softwood lumber or softwood lumber products described in section 804(a) and the United States. The Secretary of Treasury shall reconcile the following:

‘‘(1) The export price declared by a United States importer pursuant to section 803(b)(1) with the export price reported to the United States by the country of export, if any.

‘‘(2) The export price declared by a United States importer pursuant to section 803(b)(1) with the revised export price reported to the United States by the country of export, if any.

‘‘SEC. 807. VERIFICATION.

‘‘(a) IN GENERAL.—The Secretary of Treasury shall periodically verify the declarations made by a United States importer pursuant to section 803(c), including by determining whether—

‘‘(1) the export price declared by a United States importer pursuant to section 803(b)(1) is the same as the export price provided on the export permit, if any, issued by the country of export; and

‘‘(2) the estimated export charge declared by a United States importer pursuant to section 803(b)(2) is consistent with the determination published by the Under Secretary for Inter- national Trade pursuant to section 805(b). ‘‘(b) EXAMINATION OF BOOKS AND RECORDS.—

‘‘(1) IN GENERAL.—Any record relating to the importer dec- laration 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

19 USC 1683e.

19 USC 1683d.

Website.

19 USC 1683c.

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122 STAT. 1852 PUBLIC LAW 110–246—JUNE 18, 2008

records, under section 509 of this Act, as the Secretary deter- mines necessary to verify the declarations made pursuant to section 803(c) are true and accurate.

‘‘SEC. 808. PENALTIES.

‘‘(a) IN GENERAL.—It shall be unlawful for any person to import into the United States softwood lumber or softwood lumber products in knowing violation of this title.

‘‘(b) CIVIL PENALTIES.—Any person who commits an unlawful act as set forth in subsection (a) shall be liable for a civil penalty not to exceed $10,000 for each knowing violation.

‘‘(c) OTHER PENALTIES.—In addition to the penalties provided for in subsection (b), any violation of this title that violates any other customs law of the United States shall be subject to any applicable civil and criminal penalty, including seizure and for- feiture, 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 deter- mining 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 accord- ance with section 803(c)(1) with respect to the declaration;

‘‘(2) the importer produces records maintained pursuant to section 807(b) that substantiate the declaration; and

‘‘(3) there is not substantial evidence indicating that the importer knew that the fact to which the importer made the declaration was false.

‘‘SEC. 809. REPORTS.

‘‘(a) SEMIANNUAL REPORTS.—Not later than 180 days after the effective date of this title, and every 180 days thereafter, the Presi- dent 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 congres- sional committees a report on any subsidies on softwood lumber

President.

19 USC 1683g.

19 USC 1683f.

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122 STAT. 1853PUBLIC LAW 110–246—JUNE 18, 2008

or softwood lumber products, including stumpage subsidies, pro- vided by countries of export.

‘‘(c) GAO REPORTS.—The Comptroller General of the United States shall submit the following reports to the appropriate congres- sional committees:

‘‘(1) Not later than 18 months after the date of the enact- ment of this title, a report on the effectiveness of the reconcili- ations conducted under section 806, and verifications conducted under section 807.

‘‘(2) Not later than 12 months after the date of the enact- ment of this title, a report on whether countries that export softwood lumber or softwood lumber products to the United States are complying with any international agreements entered into by those countries and the United States.’’. (b) EFFECTIVE DATE.—The amendments made by this section

shall take effect on the date that is 60 days after the date of the enactment of this Act.

TITLE IV—NUTRITION

Subtitle A—Food Stamp Program PART I—RENAMING OF FOOD STAMP ACT AND

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

(a) SHORT TITLE.—The first section of the Food Stamp Act of 1977 (7 U.S.C. 2011 note; Public Law 88–525) is amended by striking ‘‘Food Stamp Act of 1977’’ and inserting ‘‘Food and Nutri- tion 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 ‘‘supple- mental 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 NUTRI- TION 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 bene- fits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’; and

(ii) in paragraph (6)— (I) in subparagraph (A)—

19 USC 1683 note.

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122 STAT. 1854 PUBLIC LAW 110–246—JUNE 18, 2008

(aa) in clause (i), by striking ‘‘food stamps’’ and inserting ‘‘supplemental nutrition assist- ance program benefits’’; and

(bb) in clause (ii)— (AA) in the matter preceding sub-

clause (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 pro- gram 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 bene- fits’’.

(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 assist- ance issuance’’; and (B) in subsection (k)—

(i) in paragraph (2), by striking ‘‘food stamp bene- fits’’ 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 house- holds’’ 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 pro- gram benefits’’;

(ii) by striking ‘‘food stamp offices’’ each place it appears and inserting ‘‘supplemental nutrition assist- ance program offices’’;

(iii) by striking ‘‘food stamp office’’ each place it appears and inserting ‘‘supplemental nutrition assist- ance 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

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122 STAT. 1855PUBLIC LAW 110–246—JUNE 18, 2008

(II) in subparagraph (A), by striking ‘‘food stamp benefits’’ and inserting ‘‘supplemental nutri- tion 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 participa- tion’’ and inserting ‘‘supplemental nutrition assistance pro- gram 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 assist- ance 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 case- load’’ 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 bene-

fits’’ 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 nutri- tion 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

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122 STAT. 1856 PUBLIC LAW 110–246—JUNE 18, 2008

(cc) in clause (iv)(IV)(bb), by striking ‘‘food stamp deductions’’ and inserting ‘‘supple- mental nutrition assistance program deduc- tions’’;

(ii) in paragraph (2), by striking ‘‘food stamp bene- fits’’ 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 nutri- tion 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 assist- ance 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 nutri- tion assistance program benefits’’; and (iii) in paragraph (3)(E), by striking ‘‘food stamp

benefits’’ and inserting ‘‘supplemental nutrition assist- ance 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 supple- mental 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 pro- gram 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

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122 STAT. 1857PUBLIC LAW 110–246—JUNE 18, 2008

(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 para-

graph (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, sub- chapter, and section heading, by striking ‘‘FOOD STAMP ACT’’ each place it appears and inserting ‘‘FOOD AND NUTRI- TION 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, sub- title, chapter, subchapter, section, subsection, or appropria- tions 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, sub- chapter, and section heading, by striking ‘‘FOOD STAMP PROGRAM’’ each place it appears and inserting ‘‘SUPPLE- MENTAL NUTRITION ASSISTANCE PROGRAM’’;

(J) in each applicable subsection and appropriations heading, by striking ‘‘FOOD STAMP PROGRAM’’ each place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM’’;

(K) in each applicable heading other than a title, sub- title, chapter, subchapter, section, subsection, or appropria- tions heading, by striking ‘‘FOOD STAMP PROGRAM’’ each place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM’’;

(L) in each applicable title, subtitle, chapter, sub- chapter, and section heading, by striking ‘‘FOOD STAMPS’’ each place it appears and inserting ‘‘SUPPLEMENTAL NUTRI- TION ASSISTANCE PROGRAM BENEFITS’’;

7 USC 1421 note; 42 USC 1786.

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122 STAT. 1858 PUBLIC LAW 110–246—JUNE 18, 2008

(M) in each applicable subsection and appropriations heading, by striking ‘‘FOOD STAMPS’’ each place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PRO- GRAM BENEFITS’’; and

(N) in each applicable heading other than a title, sub- title, chapter, subchapter, section, subsection, or appropria- tions heading, by striking ‘‘FOOD STAMPS’’ each place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSIST- ANCE PROGRAM BENEFITS’’. (2) PROVISIONS OF LAW.—The provisions of law referred

to in paragraph (1) are the following: (A) The Hunger Prevention Act of 1988 (Public Law

100–435; 102 Stat. 1645). (B) The Food Stamp Program Improvements Act of

1994 (Public Law 103–225; 108 Stat. 106). (C) Title IV of the Farm Security and Rural Investment

Act of 2002 (Public Law 107–171; 116 Stat. 305). (D) Section 2 of Public Law 103–205 (7 U.S.C. 2012

note). (E) Section 807(b) of the Stewart B. McKinney Home-

less Assistance Act (7 U.S.C. 2014 note; Public Law 100– 77).

(F) The Electronic Benefit Transfer Interoperability and Portability Act of 2000 (Public Law 106–171; 114 Stat. 3).

(G) Section 502(b) of the Agricultural Research, Exten- sion, and Education Reform Act of 1998 (7 U.S.C. 2025 note; Public Law 105–185).

(H) The National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.).

(I) The Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.).

(J) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

(K) Section 8119 of the Department of Defense Appro- priations Act, 1999 (10 U.S.C. 113 note; Public Law 105– 262).

(L) The Armored Car Industry Reciprocity Act of 1993 (15 U.S.C. 5901 et seq.).

(M) Title 18, United States Code. (N) The Higher Education Act of 1965 (20 U.S.C. 1001

et seq.). (O) The Internal Revenue Code of 1986. (P) Section 650 of the Treasury and General Govern-

ment Appropriations Act, 2000 (26 U.S.C. 7801 note; Public Law 106–58).

(Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.). (R) The Workforce Investment Act of 1998 (29 U.S.C.

2801 et seq.). (S) Title 31, United States Code. (T) Title 37, United States Code. (U) The Public Health Service Act (42 U.S.C. 201 et

seq.). (V) Titles II through XIX of the Social Security Act

(42 U.S.C. 401 et seq.). (W) Section 406 of the Family Support Act of 1988

(Public Law 100–485; 102 Stat. 2400).

42 USC 405 et seq.

42 USC 290cc–22.

37 USC 402a. 31 USC 3803.

29 USC 2971 et seq.

29 USC 49b.

26 USC 32 et seq.

18 USC 506, 1956. 20 USC 1087ss.

15 USC 5901, 5904.

8 USC 1255a.

7 USC 7509.

7 USC 3315.

7 USC 2016 note.

7 USC 2016 et seq.

7 USC 2012 note.

7 USC 2012 note.

42 USC 1758, 8011.

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(X) Section 232 of the Social Security Act Amendments of 1994 (42 U.S.C. 1314a).

(Y) The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.).

(Z) The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.).

(AA) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

(BB) The Older Americans Act of 1965 (42 U.S.C. 3001 et seq.).

(CC) Section 208 of the Intergovernmental Personnel Act of 1970 (42 U.S.C. 4728).

(DD) The Robert T. Stafford Disaster Relief and Emer- gency Assistance Act (42 U.S.C. 5121 et seq.).

(EE) The Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).

(FF) Section 658K of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858i).

(GG) The Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

(HH) Public Law 95–348 (92 Stat. 487). (II) The Agriculture and Food Act of 1981 (Public Law

97–98; 95 Stat. 1213). (JJ) The Disaster Assistance Act of 1988 (Public Law

100–387; 102 Stat. 924). (KK) The Food, Agriculture, Conservation, and Trade

Act of 1990 (Public Law 101–624; 104 Stat. 3359). (LL) The Cranston-Gonzalez National Affordable

Housing Act (Public Law 101–625; 104 Stat. 4079). (MM) Section 388 of the Persian Gulf Conflict Supple-

mental Authorization and Personnel Benefits Act of 1991 (Public Law 102–25; 105 Stat. 98).

(NN) The Food, Agriculture, Conservation, and Trade Act Amendments of 1991 (Public Law 102–237; 105 Stat. 1818).

(OO) The Act of March 26, 1992 (Public Law 102– 265; 106 Stat. 90).

(PP) Public Law 105–379 (112 Stat. 3399). (QQ) Section 101(c) of the Emergency Supplemental

Act, 2000 (Public Law 106–246; 114 Stat. 528). (c) REFERENCES.—Any reference in any Federal, State, tribal,

or local law (including regulations) to the ‘‘food stamp program’’ established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be a reference to the ‘‘supple- mental 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) EXCLU- SIONS FROM INCOME.—Household’’;

(2) by striking ‘‘only (1) any’’ and inserting ‘‘only— ‘‘(1) any’’;

7 USC 2012 note.

7 USC 2011 note, 2020 note.

7 USC 1421 note, 2026 note.

7 USC 1421 note.

42 USC 8011.

7 USC 2011 note.

7 USC 2014 note, 2017 note.

7 USC 2270, 4004a.

48 USC 1841.

43 USC 1626.

42 USC 8622, 8624.

42 USC 5179.

42 USC 3012 et seq.

42 USC 1786.

42 USC 1758, 1766.

42 USC 1437f.

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(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

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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 subpara-

graphs (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 allow- able level of which shall be $200 per month for each dependent child under 2 years of age and $175 per month for each other dependent,’’.

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

(a) ADJUSTING COUNTABLE RESOURCES FOR INFLATION.—Section (5)(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is amended—

(1) by striking ‘‘(g)(1) The Secretary’’ and inserting the following: ‘‘(g) ALLOWABLE FINANCIAL RESOURCES.—

‘‘(1) TOTAL AMOUNT.— ‘‘(A) IN GENERAL.—The Secretary’’.

(2) in subparagraph (A) (as so designated by paragraph (1))—

(A) by inserting ‘‘(as adjusted in accordance with subparagraph (B))’’ after ‘‘$2,000’’; and

(B) by inserting ‘‘(as adjusted in accordance with subparagraph (B))’’ after ‘‘$3,000’’; and (3) by adding at the end the following:

‘‘(B) ADJUSTMENT FOR INFLATION.— ‘‘(i) IN GENERAL.—Beginning on October 1, 2008,

and each October 1 thereafter, the amounts specified in subparagraph (A) shall be adjusted and rounded down to the nearest $250 increment to reflect changes for the 12-month period ending the preceding June in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

‘‘(ii) REQUIREMENT.—Each adjustment under clause (i) shall be based on the unrounded amount for the prior 12-month period.’’.

(b) EXCLUSION OF RETIREMENT ACCOUNTS FROM ALLOWABLE FINANCIAL RESOURCES.—

(1) IN GENERAL.—Section 5(g)(2)(B)(v) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by striking ‘‘or retirement account (including an individual account)’’ and inserting ‘‘account’’.

(2) MANDATORY AND DISCRETIONARY EXCLUSIONS.—Section 5(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is amended by adding at the end the following:

Effective date.

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‘‘(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:

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122 STAT. 1863PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 partici-

pate 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 nutri-

tion 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.

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‘‘(B) REQUIREMENTS.—The plan shall— ‘‘(i) identify the uses of the funding for local

projects; and ‘‘(ii) conform to standards established by the Sec-

retary through regulations or guidance. ‘‘(C) REIMBURSEMENT.—State costs for providing nutri-

tion 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 subpara- graphs (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 proce- dures established by the Secretary that disqualify individ- uals 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 nec- essary.’’.

SEC. 4114. ACCRUAL OF BENEFITS.

Section 7(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(i)) is amended by adding at the end the following:

‘‘(12) RECOVERING ELECTRONIC BENEFITS.— ‘‘(A) IN GENERAL.—A State agency shall establish a

procedure for recovering electronic benefits from the account of a household due to inactivity.

‘‘(B) BENEFIT STORAGE.—A State agency may store recovered electronic benefits off-line in accordance with subparagraph (D), if the household has not accessed the account after 6 months.

Deadline.

Procedures.

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122 STAT. 1865PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(C) BENEFIT EXPUNGING.—A State agency shall expunge benefits that have not been accessed by a house- hold 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 fol-

lowing: ‘‘(b) USE.—Benefits’’; and

(B) by striking the second proviso; (3) in subsection (c)—

(A) by striking ‘‘(c) Coupons’’ and inserting the fol- lowing:

‘‘(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 consulta-

tion with the Inspector General of the Department of Agri- culture, 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.

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‘‘(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 supple- mental nutrition assistance program.

‘‘(3) DEVALUATION AND TERMINATION OF ISSUANCE OF PAPER COUPONS.—

‘‘(A) COUPON ISSUANCE.—Effective on the date of enact- ment 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 supple- mental 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, Conserva- tion, 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 sub- section.’’;

(10) in subsection (j)— (A) in paragraph (2)(A)(ii), by striking ‘‘printing, ship-

ping, 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 sub-

sections (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 fol- lowing:

‘‘(b) BENEFIT.—The term ‘benefit’ means the value of supple- mental nutrition assistance provided to a household by means of—

‘‘(1) an electronic benefit transfer under section 7(i); or

Effective dates.

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‘‘(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 sub-

section (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,’’.

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(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 estab- lish 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);

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122 STAT. 1869PUBLIC LAW 110–246—JUNE 18, 2008

(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 sub-

sections (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 other-

wise providing benefits in a form not restricted to the purchase of food’’ after ‘‘of cash’’;

(bb) in subclause (III)(aa), by striking ‘‘sec- tion 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)—

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122 STAT. 1870 PUBLIC LAW 110–246—JUNE 18, 2008

(aa) by striking ‘‘countersigned food cou- pons 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 ‘‘sec- tion 3(o)(4)’’ and inserting ‘‘section 3(u)(4)’’.

(14) Section 21 of the Food and Nutrition Act of 2008 (7 U.S.C. 2030) is repealed.

(15) Section 22 of the Food and Nutrition Act of 2008 (7 U.S.C. 2031) is amended—

(A) by striking ‘‘food coupons’’ each place it appears and inserting ‘‘benefits’’;

(B) by striking ‘‘coupons’’ each place it appears and inserting ‘‘benefits’’; and

(C) in subsection (g)(1)(A), by striking ‘‘coupon’’ and inserting ‘‘benefits’’. (16) Section 26(f)(3) of the Food and Nutrition Act of 2008

(7 U.S.C. 2035(f)(3)) is amended— (A) in subparagraph (A), by striking ‘‘subsections (a)

through (g)’’ and inserting ‘‘subsections (a) through (f)’’; and

(B) in subparagraph (E), by striking ‘‘(16), (18), (20), (24), and (25)’’ and inserting ‘‘(15), (17), (18), (22), and (23)’’.

(c) CONFORMING CROSS-REFERENCES.— (1) IN GENERAL.—

(A) USE OF TERMS.—Each provision of law described in subparagraph (B) is amended (as applicable)—

(i) by striking ‘‘coupons’’ each place it appears and inserting ‘‘benefits’’;

(ii) by striking ‘‘coupon’’ each place it appears and inserting ‘‘benefit’’;

(iii) by striking ‘‘food coupons’’ each place it appears and inserting ‘‘benefits’’;

(iv) in each section heading, by striking ‘‘FOOD COUPONS’’ each place it appears and inserting ‘‘BENE- FITS’’;

(v) by striking ‘‘food stamp coupon’’ each place it appears and inserting ‘‘benefit’’; and

(vi) by striking ‘‘food stamps’’ each place it appears and inserting ‘‘benefits’’. (B) PROVISIONS OF LAW.—The provisions of law referred

to in subparagraph (A) are the following: (i) Section 2 of Public Law 103–205 (7 U.S.C. 2012

note; 107 Stat. 2418). (ii) Section 1956(c)(7)(D) of title 18, United States

Code. (iii) Titles II through XIX of the Social Security

Act (42 U.S.C. 401 et seq.). 42 USC 411, 503.

42 USC 1382e note.

42 USC 5179.

7 USC 2012 note; 18 USC 1956; 42 USC 411, 503, 8011. 42 USC 1382e note, 5179.

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122 STAT. 1871PUBLIC LAW 110–246—JUNE 18, 2008

(iv) Section 401(b)(3) of the Social Security Amend- ments of 1972 (42 U.S.C. 1382e note; Public Law 92– 603).

(v) The Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).

(vi) Section 802(d)(2)(A)(i)(II) of the Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 8011(d)(2)(A)(i)(II)).

(2) DEFINITION REFERENCES.— (A) Section 2 of Public Law 103–205 (7 U.S.C. 2012

note; 107 Stat. 2418) is amended by striking ‘‘section 3(k)(1)’’ and inserting ‘‘section 3(p)(1)’’.

(B) Section 205 of the Food Stamp Program Improve- ments Act of 1994 (7 U.S.C. 2012 note; Public Law 103– 225) is amended by striking ‘‘section 3(k) of such Act (as amended by section 201)’’ and inserting ‘‘section 3(p) of that Act’’.

(C) Section 115 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) is amended—

(i) by striking ‘‘section 3(h)’’ each place it appears and inserting ‘‘section 3(l)’’; and

(ii) in subsection (e)(2), by striking ‘‘section 3(m)’’ and inserting ‘‘section 3(s)’’. (D) Section 402(a) of the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)) is amended—

(i) in paragraph (2)(F)(ii), by striking ‘‘section 3(r)’’ and inserting ‘‘section 3(j)’’; and

(ii) in paragraph (3)(B), by striking ‘‘section 3(h)’’ and inserting ‘‘section 3(l)’’. (E) Section 3803(c)(2)(C)(vii) of title 31, United States

Code, is amended by striking ‘‘section 3(h)’’ and inserting ‘‘section 3(l)’’.

(F) Section 303(d)(4) of the Social Security Act (42 U.S.C. 503(d)(4)) is amended by striking ‘‘section 3(n)(1)’’ and inserting ‘‘section 3(t)(1)’’.

(G) Section 404 of the Social Security Act (42 U.S.C. 604) is amended by striking ‘‘section 3(h)’’ each place it appears and inserting ‘‘section 3(l)’’.

(H) Section 531 of the Social Security Act (42 U.S.C. 654) is amended by striking ‘‘section 3(h)’’ each place it appears and inserting ‘‘section 3(l)’’.

(I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011(d)(2)(A)(i)(II)) is amended by striking ‘‘(as defined in section 3(e) of such Act)’’.

(d) REFERENCES.—Any reference in any Federal, State, tribal, or local law (including regulations) to a ‘‘coupon’’, ‘‘authorization card’’, or other access device provided under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be a reference to a ‘‘benefit’’ provided under that Act.

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

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

7 USC 2012 note.

42 USC 5179.

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122 STAT. 1872 PUBLIC LAW 110–246—JUNE 18, 2008

‘‘SEC. 11. ADMINISTRATION.

‘‘(a) STATE RESPONSIBILITY.— ‘‘(1) IN GENERAL.—The State agency of each participating

State shall have responsibility for certifying applicant house- holds 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 stand-

ards 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 pre- viously performed by personnel described in subsection (e)(6)(B);

‘‘(iii) changes that potentially increase the dif- ficulty 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 fol- lowing:

‘‘(c) CIVIL RIGHTS COMPLIANCE.—

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122 STAT. 1873PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(1) IN GENERAL.—In the certification of applicant house- holds 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 informa- tion to which assent was given;

‘‘(II) include effective safeguards against impersonation, identity theft, and invasions of pri- vacy;

‘‘(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 applica- tion, 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

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122 STAT. 1874 PUBLIC LAW 110–246—JUNE 18, 2008

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 sub-

paragraphs (B) through (F), respectively; (3) by inserting before subparagraph (B) (as so redesig-

nated) the following: ‘‘(A) the safeguards shall permit—

‘‘(i) the disclosure of such information to persons directly connected with the administration or enforce- ment 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 per- sons 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 fol- lowing:

‘‘(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, develop- ment, or installation of 1 or more automatic data processing and information retrieval systems that the Secretary deter- mines—

‘‘(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 pro- gram 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—

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122 STAT. 1875PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(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 Fed- eral 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 avail- able for 15 months’’.

PART IV—PROGRAM INTEGRITY

SEC. 4131. ELIGIBILITY DISQUALIFICATION.

Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is amended by adding at the end the following:

‘‘(p) DISQUALIFICATION FOR OBTAINING CASH BY DESTROYING FOOD AND COLLECTING DEPOSITS.—Subject to any requirements established by the Secretary, any person who has been found by a State or Federal court or administrative agency in a hearing under subsection (b) to have intentionally obtained cash by pur- chasing products with supplemental nutrition assistance program benefits that have containers that require return deposits, dis- carding 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.—Sub- ject 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 whole-

sale food concern that violates a provision of this Act or a regulation under this Act may be—

Regulations.

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‘‘(A) disqualified for a specified period of time from further participation in the supplemental nutrition assist- ance 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 estab- lished 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 fol- lowing:

‘‘(c) CIVIL PENALTY AND REVIEW OF DISQUALIFICATION AND PEN- ALTY 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 irrev- ocable letter of credit for a period of not more than 5 years

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to cover the value of benefits that the store or concern may in the future accept and redeem in violation of this Act.

‘‘(2) COLLATERAL.—The Secretary also may require a retail food store or wholesale food concern that has been sanctioned for a violation and incurs a subsequent sanction regardless of the length of the disqualification period to submit a collateral bond or irrevocable letter of credit.

‘‘(3) BOND REQUIREMENTS.—The Secretary shall’’; (B) by striking ‘‘If the Secretary finds’’ and inserting

the following ‘‘(4) FORFEITURE.—If the Secretary finds’’; and

(C) by striking ‘‘Such store or concern’’ and inserting the following: ‘‘(5) HEARING.—A store or concern described in paragraph

(4)’’; (5) in subsection (e), by striking ‘‘civil money penalty’’ each

place it appears and inserting ‘‘civil penalty’’; and (6) by adding at the end the following:

‘‘(h) FLAGRANT VIOLATIONS.— ‘‘(1) IN GENERAL.—The Secretary, in consultation with the

Inspector General of the Department of Agriculture, shall estab- lish 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 whole- sale 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 con- cern. ‘‘(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 informa- tion requested by the Secretary concerning the issuance

Procedures.

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of benefits to households by the State agency in the applicable fiscal year.

‘‘(ii) FINAL DETERMINATION.—After reviewing rel- evant information provided by a State agency, the Sec- retary shall make a final determination—

‘‘(I) whether the State agency overissued bene- fits to a substantial number of households as a result of a systemic error in the applicable fiscal year; and

‘‘(II) as to the amount of the overissuance in the applicable fiscal year for which the State agency is liable. ‘‘(iii) ESTABLISHING A CLAIM.—Upon determining

under clause (ii) that a State agency has overissued benefits to households due to a major systemic error determined under subparagraph (A), the Secretary shall establish a claim against the State agency equal to the value of the overissuance caused by the systemic error.

‘‘(iv) ADMINISTRATIVE AND JUDICIAL REVIEW.— Administrative and judicial review, as provided in sec- tion 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 deter- mination 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 reason- able period of time, as determined by the Sec- retary, 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 estab-

lished under section 16(c)(1)(C) shall be reduced by the amount of the claim established under this subparagraph.’’.

Applicability.

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122 STAT. 1879PUBLIC LAW 110–246—JUNE 18, 2008

PART V—MISCELLANEOUS

SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION PROMOTION IN THE SUPPLEMENTAL NUTRITION ASSIST- ANCE 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 PRO- GRAM.—

‘‘(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 house- holds eligible for or participating in the supplemental nutri- tion 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 informa- tion as the Secretary may require.

‘‘(C) SELECTION CRITERIA.—Pilot projects shall be evalu- ated 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 improve- ment to the health and wellness of children;

‘‘(vi) other criteria, as determined by the Secretary. ‘‘(D) USE OF FUNDS.—Funds provided under this para-

graph 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

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purchases by and healthier diets among households partici- pating in the supplemental nutrition assistance program result from projects that—

‘‘(A) increase the supplemental nutrition assistance purchasing power of the participating households by pro- viding increased supplemental nutrition assistance pro- gram benefit allotments to the participating households;

‘‘(B) increase access to farmers markets by partici- pating 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 avail- ability of healthy foods to participating households;

‘‘(D) subject authorized supplemental nutrition assist- ance 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 evalua- tion under subclause (I) shall use rigorous meth- odologies, particularly random assignment or other methods that are capable of producing scientif- ically valid information regarding which activities are effective. ‘‘(ii) COSTS.—The Secretary may use funds pro-

vided 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 subpara- graph (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—

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122 STAT. 1881PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(I) the impact of the pilot project on appro- priate 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 Sec- retary 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 manage-

ment, and other changes that would be necessary for the Commonwealth to establish a comparable supplemental nutri- tion 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 Common-

wealth benefit and administrative costs; (3) an assessment of the impact of the program on low-

income Puerto Ricans, as compared to the program under sec- tion 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 Agri- culture of the House of Representatives and the Committee on

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Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under this section.

(d) FUNDING.— (1) IN GENERAL.—On October 1, 2008, out of any funds

in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section $1,000,000, to remain available until expended.

(2) RECEIPT AND ACCEPTANCE.—The Secretary shall be enti- tled 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 fol- lowing: ‘‘(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 para- graph (2) of’’; and

(2) by adding at the end the following: ‘‘(2) AMOUNTS.—The Secretary shall use to carry out para-

graph (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 Assist- ance 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 adminis- tration 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

Submissions.

Transfer date.

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(2) by inserting ‘‘and donated wild game’’ before the period at the end.

SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

The Emergency Food Assistance Act of 1983 is amended by inserting after section 208 (7 U.S.C. 7511) the following: ‘‘SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term ‘eligible entity’ means an emergency feeding organization.

‘‘(b) PROGRAM AUTHORIZED.— ‘‘(1) IN GENERAL.—The Secretary shall use funds made

available under subsection (d) to make grants to eligible entities to pay the costs of an activity described in subsection (c).

‘‘(2) RURAL PREFERENCE.—The Secretary shall use not less than 50 percent of the funds described in paragraph (1) for a fiscal year to make grants to eligible entities that serve predominantly rural communities for the purposes of—

‘‘(A) expanding the capacity and infrastructure of food banks, State-wide food bank associations, and food bank collaboratives that operate in rural areas; and

‘‘(B) improving the capacity of the food banks to pro- cure, 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 pro- ducers 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 equip-

ment 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.’’.

7 USC 7511a.

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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 organiza- tion.

‘‘(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 govern- ment 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 partici- pate simultaneously in the supplemental nutrition assist- ance program and the program established under this sub- section. ‘‘(3) DISQUALIFIED PARTICIPANTS.—An individual who is dis-

qualified 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 appropria- tions to carry out this paragraph, the Secretary may purchase bison meat for recipients of food distributed under this sub- section, 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 appro-

priations, the Secretary shall establish a fund for use in purchasing traditional and locally-grown foods for recipi- ents of food distributed under this subsection.

‘‘(B) NATIVE AMERICAN PRODUCERS.—Where prac- ticable, of the food provided under subparagraph (A), at

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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 Sec- retary shall—

‘‘(i) survey participants of the food distribution pro- gram on Indian reservations established under this subsection to determine which traditional foods are most desired by those participants; and

‘‘(ii) purchase or offer to purchase those traditional foods that may be procured cost-effectively. ‘‘(E) REPORT.—Not later than 1 year after the date

of enactment of this paragraph, and annually thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the activities carried out under this paragraph during the preceding calendar year.

‘‘(F) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out this paragraph $5,000,000 for each of fiscal years 2008 through 2012.’’.

(b) FDPIR FOOD PACKAGE.—Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes—

(1) how the Secretary derives the process for determining the food package under the food distribution program on Indian reservations established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)) (referred to in this subsection as the ‘‘food package’’);

(2) the extent to which the food package— (A) addresses the nutritional needs of low-income

Native Americans compared to the supplemental nutrition assistance program, particularly for very low-income house- holds;

(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.

Deadline. Reports.

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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 individ- uals 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 ‘‘vegeta- bles,’’;

(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 regula- tions as the Secretary considers to be necessary to carry out the seniors farmers’ market nutrition program.’’.

Subtitle C—Child Nutrition and Related Programs

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

(a) IN GENERAL.—Not later than December 31, 2008 and June 30 of each year thereafter, the Secretary shall submit to the Committees on Agriculture and Education and Labor of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that assesses the effectiveness of each State in enrolling school-aged children in households receiving program benefits under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) (referred to in this section as ‘‘program benefits’’) for free school meals using direct certification.

(b) SPECIFIC MEASURES.—The assessment of the Secretary of the performance of each State shall include—

Deadline. Reports.

42 USC 1758a.

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(1) an estimate of the number of school-aged children, by State, who were members of a household receiving program benefits at any time in July, August, or September of the prior year;

(2) an estimate of the number of school-aged children, by State, who were directly certified as eligible for free lunches under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), based on receipt of program benefits, as of October 1 of the prior year; and

(3) an estimate of the number of school-aged children, by State, who were members of a household receiving program benefits at any time in July, August, or September of the prior year who were not candidates for direct certification because on October 1 of the prior year the children attended a school operating under the special assistance provisions of section 11(a)(1) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)) that is not operating in a base year. (c) PERFORMANCE INNOVATIONS.—The report of the Secretary

shall describe best practices from States with the best performance or the most improved performance from the previous year.

SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS.

Section 9(j) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(j)) is amended to read as follows:

‘‘(j) PURCHASES OF LOCALLY PRODUCED FOODS.—The Secretary shall—

‘‘(1) encourage institutions receiving funds under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to purchase unprocessed agricultural products, both locally grown and locally raised, to the maximum extent practicable and appropriate;

‘‘(2) advise institutions participating in a program described in paragraph (1) of the policy described in that paragraph and paragraph (3) and post information concerning the policy on the website maintained by the Secretary; and

‘‘(3) allow institutions receiving funds under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), including the Department of Defense Fresh Fruit and Vegetable Program, to use a geographic preference for the procurement of unprocessed agricultural products, both locally grown and locally raised.’’.

SEC. 4303. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.

Section 18(h) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(h)) is amended—

(1) in paragraph (1)(C), by inserting ‘‘promotes healthy food education in the school curriculum and’’ before ‘‘incor- porates’’;

(2) by redesignating paragraph (2) as paragraph (4); and (3) by inserting after paragraph (1) the following: ‘‘(2) ADMINISTRATION.—In providing grants under para-

graph (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:

Website.

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‘‘(i) ELIGIBLE PROGRAM.—The term ‘eligible pro- gram’ 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 stu- dents 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 stu- dents at the eligible schools; and

‘‘(ii) teach the students participating in the commu- nity 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:

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

‘‘(a) IN GENERAL.—For the school year beginning July 2008 and each subsequent school year, the Secretary shall provide grants to States to carry out a program to make free fresh fruits and vegetables available in elementary schools (referred to in this sec- tion as the ‘program’).

‘‘(b) PROGRAM.—A school participating in the program shall make free fresh fruits and vegetables available to students through- out the school day (or at such other times as are considered appro- priate 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 allo- cate 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, Conserva- tion, 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 stu- dents 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 applica- tion 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 schoon( �

‘‘(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

Grants.

42 USC 1769a.

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‘‘(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 require- ment 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 propor- tion 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 eligi- bility 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 avail- ability 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 evalua-

tion of the program, including a determination as to whether children experienced, as a result of participating in the pro- gram—

‘‘(A) increased consumption of fruits and vegetables; ‘‘(B) other dietary changes, such as decreased consump-

tion 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 Sec-

retary shall submit to the Committee on Education and Labor of the House of Representatives and the Committee on Agri- culture, 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,

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and Energy Act of 2008, the Secretary shall use the following amounts to carry out this section:

‘‘(A) On October 1, 2008, $40,000,000. ‘‘(B) On July 1, 2009, $65,000,000. ‘‘(C) On July 1, 2010, $101,000,000. ‘‘(D) On July 1, 2011, $150,000,000. ‘‘(E) On July 1, 2012, and each July 1 thereafter,

the amount made available for the preceding fiscal year, as adjusted to reflect changes for the 12-month period ending the preceding April 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food. ‘‘(2) MAINTENANCE OF EXISTING FUNDING.—In allocating

funding made available under paragraph (1) among the States in accordance with subsection (c), the Secretary shall ensure that each State that received funding under section 18(f) on the day before the date of enactment of the Food, Conservation, and Energy Act of 2008 shall continue to receive sufficient funding under this section to maintain the caseload level of the State under that section as in effect on that date.

‘‘(3) EVALUATION FUNDING.—On October 1, 2008, out of any funds made available under subsection (b)(2)(A) of section 14222 of the Food, Conservation, and Energy Act of 2008, the Secretary shall use to carry out the evaluation required under subsection (h), $3,000,000, to remain available for obliga- tion 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 avail- able under the grant that are not obligated or expended by a date determined by the Secretary.’’. (2) TRANSITION OF EXISTING SCHOOLS.— 42 USC 1769a

note.

Effective date.

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122 STAT. 1892 PUBLIC LAW 110–246—JUNE 18, 2008

(A) EXISTING SECONDARY SCHOOLS.—Section 19(d)(1)(C) of the Richard B. Russell National School Lunch Act (as amended by paragraph (1)) may be waived by a State until July 1, 2010, for each secondary school in the State that has been awarded funding under section 18(f) of that Act (42 U.S.C. 1769(f)) for the school year beginning July 1, 2008.

(B) SCHOOL YEAR BEGINNING JULY 1, 2008.—To facilitate transition from the program authorized under section 18(f) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(f)) (as in effect on the day before the date of enactment of this Act) to the program established under section 19 of that Act (as amended by paragraph (1))—

(i) for the school year beginning July 1, 2008, the Secretary may permit any school selected for participation under section 18(f) of that Act (42 U.S.C. 1769(f)) for that school year to continue to participate under section 19 of that Act until the end of that school year; and

(ii) funds made available under that Act for fiscal year 2009 may be used to support the participation of any schools selected to participate in the program authorized under section 18(f) of that Act (42 U.S.C. 1769(f)) (as in effect on the day before the date of enactment of this Act).

(b) CONFORMING AMENDMENTS.—Section 18 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is amended—

(1) by striking subsection (f); and (2) by redesignating subsections (g) through (j) as sub-

sections (f) through (i), respectively.

SEC. 4305. WHOLE GRAIN PRODUCTS.

(a) PURPOSE.—The purpose of this section is to encourage greater awareness and interest in the number and variety of whole grain products available to schoolchildren, as recommended by the 2005 Dietary Guidelines for Americans.

(b) DEFINITION OF ELIGIBLE WHOLE GRAINS AND WHOLE GRAIN PRODUCTS.—In this section, the terms ‘‘whole grains’’ and ‘‘whole grain products’’ have the meaning given the terms by the Food and Nutrition Service in the HealthierUS School Challenge.

(c) PURCHASE OF WHOLE GRAINS AND WHOLE GRAIN PROD- UCTS.—In addition to the commodities delivered under section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755), the Secretary shall purchase whole grains and whole grain products for use in—

(1) the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); and

(2) the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). (d) EVALUATION.—Not later than September 30, 2011, the Sec-

retary 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 consump- tion of whole grains;

Deadline.

42 USC 1755a.

Waiver authority.

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122 STAT. 1893PUBLIC LAW 110–246—JUNE 18, 2008

(2) an evaluation of which whole grains and whole grain products are most acceptable for use in the school lunch and breakfast programs;

(3) any recommendations of the Secretary regarding the integration of whole grain products in the school lunch and breakfast programs; and

(4) an evaluation of any other outcomes determined to be appropriate by the Secretary. (e) REPORT.—As soon as practicable after the completion of

the evaluation under subsection (d), the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Education and Labor of the House of Representative a report describing the results of the evaluation.

SEC. 4306. BUY AMERICAN REQUIREMENTS.

(a) FINDINGS.—The Congress finds the following: (1) Federal law requires that commodities and products

purchased with Federal funds be, to the extent practicable, of domestic origin.

(2) Federal Buy American statutory requirements seek to ensure that purchases made with Federal funds benefit domestic producers.

(3) The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) requires the use of domestic food products for all meals served under the program, including food products purchased with local funds. (b) BUY AMERICAN STATUTORY REQUIREMENTS.—The Depart-

ment of Agriculture should undertake training, guidance, and enforcement of the various current Buy American statutory require- ments 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 AUTHORI- TIES.

(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 Sec-

retary shall submit to the Committees on Agriculture and Edu- cation 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 Corpora-

tion, the Secretary shall use to carry out this section not more than $3,000,000.

7 USC 2208 note.

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Subtitle D—Miscellaneous

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

Section 4404 of the Farm Security and Rural Investment Act of 2002 (2 U.S.C. 1161) is amended to read as follows: ‘‘SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY

LELAND INTERNATIONAL HUNGER FELLOWS.

‘‘(a) SHORT TITLE.—This section may be cited as the ‘Bill Emerson National Hunger Fellows and Mickey Leland International Hunger Fellows Program Act of 2008’.

‘‘(b) DEFINITIONS.—In this subsection: ‘‘(1) DIRECTOR.—The term ‘Director’ means the head of

the Congressional Hunger Center. ‘‘(2) FELLOW.—The term ‘fellow’ means—

‘‘(A) a Bill Emerson Hunger Fellow; or ‘‘(B) Mickey Leland Hunger Fellow.

‘‘(3) FELLOWSHIP PROGRAMS.—The term ‘Fellowship Pro- grams’ means the Bill Emerson National Hunger Fellowship Program and the Mickey Leland International Hunger Fellow- ship 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 Pro-

grams 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 Pro- gram is to address hunger and poverty in the United States.

‘‘(C) MICKEY LELAND HUNGER FELLOWSHIP PROGRAM.— The purpose of the Mickey Leland Hunger Fellowship Pro- gram is to address international hunger and other humani- tarian needs. ‘‘(3) ADMINISTRATION.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the Secretary shall offer to provide a grant to the Congressional Hunger Center to administer the Fellowship Programs.

Grants.

Bill Emerson National Hunger Fellows and Mickey Leland International Hunger Fellows Program Act of 2008.

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‘‘(B) TERMS OF GRANT.—The terms of the grant pro- vided 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 accord- ance 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 pro-

vide 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 pro- gram of field placement; and

‘‘(ii) providing experience in policy development through placement in a governmental entity or non- governmental, 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 responsibil- ities 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 pursu- ant 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 commu-

nities; 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

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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 Pro- grams; 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 Sec-

retary 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 Fellow- ship 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 assist- ance to become self-sustaining; and

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‘‘(B) is designed— ‘‘(i)(I) to meet the food needs of low-income individ-

uals; ‘‘(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 develop- ment;

‘‘(II) planning for long-term solutions; or ‘‘(III) the creation of innovative marketing

activities that mutually benefit agricultural pro- ducers and low-income consumers.

‘‘(2) CENTER.—The term ‘Center’ means the healthy urban food enterprise development center established under sub- section (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 assist- ance and information to small and medium-sized agricul- tural producers, food wholesalers and retailers, schools, and other individuals and entities regarding best practices and the availability of assistance for aggregating, storing,

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processing, and marketing locally produced agricultural products and increasing the availability of such products in underserved communities.

‘‘(B) AUTHORITY TO SUBGRANT.—The Center may pro- vide 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 sub- grants 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, particu- larly 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 fol- lowing the initial provision of technical assistance and sub- grants under this section. ‘‘(7) COMPETITIVE AWARD PROCESS.—The Secretary shall

use a competitive process to award funds to establish the Center.

‘‘(8) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more than 10 percent of the total amount allocated for this subsection in a given fiscal year may be used for administrative expenses.

‘‘(9) FUNDING.— ‘‘(A) IN GENERAL.—Out of any funds in the Treasury

not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this subsection $1,000,000 for each of fiscal years 2009 through 2011.

‘‘(B) ADDITIONAL FUNDING.—There is authorized to be appropriated $2,000,000 to carry out this subsection for fiscal year 2012.’’.

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

The Secretary and the Secretary of Health and Human Services shall continue to provide jointly for national nutrition monitoring and related research activities carried out as of the date of enact- ment of this Act—

7 USC 5311a.

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(1) to collect continuous dietary, health, physical activity, and diet and health knowledge data on a nationally representa- tive sample;

(2) to periodically collect data on special at-risk populations, as identified by the Secretaries;

(3) to distribute information on health, nutrition, the environment, and physical activity to the public in a timely fashion;

(4) to analyze new data that becomes available; (5) to continuously update food composition tables; and (6) to research and develop data collection methods and

standards.

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

(a) FUNDING FOR ADDITIONAL PURCHASES OF FRUITS, VEGETA- BLES, 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 DISTRIBU- TION TO SCHOOLS AND SERVICE INSTITUTIONS.—Section 10603 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c–4) is amended by striking subsection (b) and inserting the following:

‘‘(b) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DIS- TRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS.—The Secretary of Agriculture shall purchase fresh fruits and vegetables for dis- tribution to schools and service institutions in accordance with section 6(a) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755(a)) using, of the amount specified in subsection (a), not less than $50,000,000 for each of fiscal years 2008 through 2012.’’.

SEC. 4405. HUNGER-FREE COMMUNITIES.

(a) DEFINITIONS.—In this section: (1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a

public food program service provider or nonprofit organization, including an emergency feeding organization, that has collabo- rated, or will collaborate, with 1 or more local partner organiza- tions to achieve at least 1 hunger-free communities goal.

(2) EMERGENCY FEEDING ORGANIZATION.—The term ‘‘emer- gency feeding organization’’ has the meaning given the term

7 USC 7517.

7 USC 612c–4.

7 USC 612c–5.

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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 sub- section (e) to make grants to eligible entities to pay the Federal share of the costs of an activity described in para- graph (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 pro- vided 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 govern- ment, 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 experi- ence 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 chil- dren 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 com-

prehensive 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 recre- ation programs and other community-based outlets to reduce barriers to access; or

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(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 sub- section, 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 identi- fied under clause (i) will reduce hunger in the commu- nity 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.

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SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PRO- GRAMS.

(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 Nutri- tion 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

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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 subpara- graph 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.—Sec- tion 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 Corpora-

tion, 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 PRO- GRAM.—Section 4403(f) of the Farm Security and Rural Invest- ment Act of 2002 (7 U.S.C. 3171 note; Public Law 107–171) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES.

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

TITLE V—CREDIT

Subtitle A—Farm Ownership Loans SEC. 5001. DIRECT LOANS.

Section 302 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922) is amended—

(1) by striking the section designation and heading and all that follows through ‘‘(a) The Secretary is authorized to’’ and inserting the following:

2 USC 1161 note.

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

‘‘(a) IN GENERAL.—The Secretary may’’; and (2) in subsection (a)(2), by inserting ‘‘, taking into consider-

ation all farming experience of the applicant, without regard to any lapse between farming experiences’’ after ‘‘farming oper- ations’’.

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 quali- fied 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 ‘quali- fied conservation project’ means conservation measures that address provisions of a conservation plan of the eligible bor- rower.

‘‘(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 Sec- retary.

‘‘(c) ELIGIBILITY.— ‘‘(1) IN GENERAL.—The Secretary may make or guarantee

loans to farmers or ranchers in the United States, farm coopera- tives, private domestic corporations, partnerships, joint oper- ations, 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;

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‘‘(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 por-

tion 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 Develop- ment 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 fol-

lowing; ‘‘(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 para- graph (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)—

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(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 DIS- ADVANTAGED 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 DIS- ADVANTAGED 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 dis- advantaged 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 repay-

ment, 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 reason- able 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.

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‘‘(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 Con- tract 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 consider-

ation all farming experience of the applicant, without regard to any lapse between farming experiences’’ after ‘‘farming oper- ations’’.

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SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

Section 313(a)(1) of the Consolidated Farm and Rural Develop- ment 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 BOR-

ROWERS 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 Develop- ment 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 DEVELOP- MENT ACCOUNTS PILOT PROGRAM.

Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981–2008r) is amended by inserting after section 333A the following: ‘‘SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL

DEVELOPMENT ACCOUNTS PILOT PROGRAM.

‘‘(a) DEFINITIONS.—In this section: ‘‘(1) DEMONSTRATION PROGRAM.—The term ‘demonstration

program’ means a demonstration program carried out by a qualified entity under the pilot program established in sub- section (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 Depart- ment of Health and Human Services for the State.

‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.—The term ‘indi- vidual 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—

7 USC 1983b.

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‘‘(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 collabo- rate 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 Develop- ment Accounts Pilot Program’ under which the Secretary shall work through qualified entities to establish demonstration pro- grams—

‘‘(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 pro- grams 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 estab- lished 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—

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‘‘(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 agree- ment 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 develop- ment account established for the eligible partici- pant; 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 pro- vide 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 pur-

chased 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

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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 pre- scribe.

‘‘(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 partici- pants 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 con- tributions;

‘‘(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 con-

duct a demonstration program under this section, the Secretary shall give preference to an application from a qualified entity that demonstrates—

‘‘(A) a track record of serving clients targeted by the program, including, as appropriate, socially disadvantaged farmers or ranchers (as defined in section 355(e)(2)); and

‘‘(B) expertise in dealing with financial management aspects of farming. ‘‘(4) APPROVAL.—Not later than 1 year after the date of

enactment of this section, in accordance with this section, the Secretary shall, on a competitive basis, approve such applica- tions to conduct demonstration programs as the Secretary con- siders 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.—

Deadline.

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‘‘(1) IN GENERAL.—The Secretary shall make a grant to a qualified entity authorized to carry out a demonstration pro- gram 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 conclu- sion 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 demonstra- tion 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 Con- gress 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.’’.

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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 dis- advantaged farmer or rancher’’ after ‘‘or rancher’’;

(iii) in clause (ii), by inserting ‘‘or socially disadvan- taged farmer or rancher’’ after ‘‘or rancher’’;

(iv) in clause (iii), by inserting ‘‘or a socially dis- advantaged 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 disadvan- taged 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’’;

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122 STAT. 1914 PUBLIC LAW 110–246—JUNE 18, 2008

(II) by striking ‘‘60 percent’’ and inserting ‘‘an amount not less than 2⁄3 of the amount’’; and

(III) by inserting ‘‘and joint financing arrange- ments 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 Develop- ment Act (7 U.S.C. 1994(b)(1)) is amended—

(1) in the matter preceding subparagraph (A), by striking ‘‘$3,796,000,000 for each of fiscal years 2003 through 2007’’ and inserting ‘‘$4,226,000,000 for each of fiscal years 2008 through 2012’’; and

(2) in subparagraph (A)— (A) in the matter preceding clause (i), by striking

‘‘$770,000,000’’ and inserting ‘‘$1,200,000,000’’; (B) in clause (i), by striking ‘‘$205,000,000’’ and

inserting ‘‘$350,000,000’’; and (C) in clause (ii), by striking ‘‘$565,000,000’’ and

inserting ‘‘$850,000,000’’.

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

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

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

‘‘(a) IN GENERAL.—In making or insuring a farm loan under subtitle A or B, the Secretary shall establish a plan and promulgate regulations (including performance criteria) that promote the goal of transitioning borrowers to private commercial credit and other sources of credit in the shortest period of time practicable.

‘‘(b) COORDINATION.—In carrying out this section, the Secretary shall integrate and coordinate the transition policy described in subsection (a) with—

‘‘(1) the borrower training program established by section 359;

‘‘(2) the loan assessment process established by section 360;

‘‘(3) the supervised credit requirement established by sec- tion 361;

‘‘(4) the market placement program established by section 362; and

‘‘(5) other appropriate programs and authorities, as deter- mined by the Secretary.’’.

Plan. Regulations. Criteria.

7 USC 1993.

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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 ACTIVI- TIES.

Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981–2008r) is amended by inserting after section 364 the following: ‘‘SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVI-

TIES.

‘‘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 fol-

lowing: ‘‘(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 deter- mined by the bank’s board of directors; and (iii)’’.

7 USC 2008.

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(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 ‘‘para- graph (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), multi- plied 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 para- graph (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 cal-

endar 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 cal- endar 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 cal- endar year on the guaranteed portions of State govern- ment-guaranteed loans made by the bank that are in accrual status; and

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122 STAT. 1917PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(ii) the average amount outstanding for the cal- endar year of the guaranteed portions of State govern- ment-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 INVEST- MENTS’’ after ‘‘LOANS’’ ; and

(B) in the matter preceding subparagraph (A), by striking ‘‘As used’’ and all that follows through ‘‘guaran- teed—’’ and inserting ‘‘In this section, the term ‘govern- ment-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.—Sec- tion 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 out-

standing on Federal government-guaranteed loans in accrual status made by the banks; and

‘‘(ii) the guaranteed portions of the amount of Fed- eral 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 out- standing 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.—Sec- tion 5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended—

(1) in the subsection heading, by striking ‘‘PRINCIPAL OUT- STANDING’’ 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 prin- cipal 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— ’’;

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(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 cal- endar 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 cal- endar 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 fol- lowing:

‘‘(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 estab- lished 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 fol-

lowing:

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‘‘(ii) TERMINATION OF ACCOUNT.—On disbursement of an amount equal to $56,000,000, the Corporation shall—

‘‘(I) close the account established under para- graph (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 perma- nently impaired (as defined in section 5.55(a)(4));

‘‘(4)(A) the average principal outstanding for the period on loans that are in nonaccrual status; and

‘‘(B) the average amount outstanding for the period of other-than-temporarily impaired investments; and

‘‘(5) the amount of the premium due the Corporation from the bank for the period.’’. (b) PREMIUM PAYMENTS.—Section 5.56 of such Act (12 U.S.C.

2277a–5) is amended by striking subsection (c) and inserting the following:

‘‘(c) PREMIUM PAYMENTS.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

each insured System bank shall pay to the Corporation the premium payments required under subsection (a), not more frequently than once in each calendar quarter, in such manner and at such 1 or more times as the Board of Directors shall prescribe.

‘‘(2) PREMIUM AMOUNT.—The amount of the premium shall be established not later than 60 days after filing the certified statement specifying the amount of the premium.’’. (c) SUBSEQUENT PREMIUM PAYMENTS.—Section 5.56 of such Act

(12 U.S.C. 2277a–5) is amended—

Deadline.

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(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 under-

writing, security appraisal, and repayment standards for quali- fied loans taking into account the nature, risk profile, and other differences between different categories of qualified loans.

‘‘(2) SUPERVISION, EXAMINATION, AND REPORT OF CONDI- TION.—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

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and telephone facility loans (as applicable), as determined by the Director.’’.

SEC. 5407. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DIS- TRICT ASSOCIATIONS.

(a) IN GENERAL.—The Farm Credit Act of 1971 is amended by inserting after section 7.6 (12 U.S.C. 2279b) the following: ‘‘SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DIS-

TRICT 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 subpara- graph (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 associa-

tion (or, if the association is a subsidiary of another associa- tion, 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

12 USC 2279c.

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loan-making powers of a Farm Credit System association under section 7.7.

‘‘(B) Amendments described in subparagraph (A) to the charters of an association and the related Farm Credit Bank shall be approved by the Farm Credit Administration, subject to any conditions of approval imposed, by not later than 30 days after the date on which the Farm Credit Administration receives all approvals required by section 7.7(a)(2).’’. (c) CONFORMING AMENDMENTS.—

(1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12 U.S.C. 2252(a)(2)) is amended—

(A) by striking ‘‘(2)(A)’’ and inserting ‘‘(2)’’; and (B) by striking subparagraphs (B) and (C).

(2) SECTION 410 OF THE 1987 ACT.—Section 410(e)(1)(A)(iii) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100–233) is amended by inserting ‘‘(except section 7.7 of that Act)’’ after ‘‘(12 U.S.C. 2001 et seq.)’’.

(3) SECTION 401 OF THE 1992 ACT.—Section 401(b) of the Farm Credit Banks and Associations Safety and Soundness Act of 1992 (12 U.S.C. 2011 note; Public Law 102–552) is amended—

(A) by inserting ‘‘(except section 7.7 of the Farm Credit Act of 1971)’’ after ‘‘provision of law’’; and

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

(d) EFFECTIVE DATE.—The amendments made by this section take effect on January 1, 2010.

Subtitle F—Miscellaneous

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

The first section of Public Law 91–229 (25 U.S.C. 488) is amended—

(1) by striking ‘‘That the Secretary’’ and inserting the fol- lowing:

‘‘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 Consolida- tion 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 mort- gaged in accordance with paragraph (1).’’.

12 USC 2252 note.

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122 STAT. 1923PUBLIC LAW 110–246—JUNE 18, 2008

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 finan- cially distressed communities in rural areas with popu- lations 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 prac- ticable.

‘‘(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 deter- mined 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 subpara- graph are in addition to any other funds or authorities the Secretary may have to carry out activities described in clause (i).’’.

(b) CONFORMING AMENDMENT.—Subtitle D of title VI of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 2009ee et seq.) is repealed.

SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

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

7 USC 2009ee– 2009ee–3.

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122 STAT. 1924 PUBLIC LAW 110–246—JUNE 18, 2008

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 PRO- GRAM.

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 Develop- ment 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 fol-

lowing: ‘‘(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 ASSIST- ANCE GRANT PROGRAM.

Section 306A(i)(2) of the Consolidated Farm and Rural Develop- ment 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

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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 SYS- TEMS 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 FACILI- TIES LOANS.

Section 307(a)(3) of the Consolidated Farm and Rural Develop- ment 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:

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‘‘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 sub- section, the’’ (as moved by subparagraph (A)), by striking ‘‘As used in this subsection, the’’ and inserting the fol- lowing:

‘‘(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 guaran- tees 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

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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 Sec- retary.’’.

(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 develop- ment 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

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(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 deter- mined 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 para- graphs (8), (9), and (12), respectively; and

(2) by inserting after paragraph (6) the following: ‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.—The Secretary

may extend for 1 additional 12-month period the period in which a grantee may use a grant made under this subsection.’’. (d) COOPERATIVE RESEARCH PROGRAM.—Section 310B(e) of the

Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is amended by inserting after paragraph (9) (as redesignated by subsection (c)(1)) the following:

‘‘(10) COOPERATIVE RESEARCH PROGRAM.—The Secretary shall enter into a cooperative research agreement with 1 or more qualified academic institutions in each fiscal year to con- duct 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, indi- vidual 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 individ- uals who are members of socially disadvantaged groups. ‘‘(ii) INSUFFICIENT APPLICATIONS.—To the extent

there are insufficient applications to carry out clause

Contracts.

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

(f) AUTHORIZATION OF APPROPRIATIONS.—Paragraph (12) of sec- tion 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 Develop- ment 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 Develop- ment 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 AGRICUL-

TURAL FOOD PRODUCT.—The term ‘locally or regionally produced agricultural food product’ means any agricul- tural food product that is raised, produced, and distrib- uted 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 pro- duced. ‘‘(ii) UNDERSERVED COMMUNITY.—The term ‘under-

served community’ means a community (including an urban or rural community and an Indian tribal commu- nity) 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, coopera- tive organizations, businesses, and other entities to establish and facilitate enterprises that process, dis- tribute, aggregate, store, and market locally or region- ally 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 appro- priate agreement with retail and institutional facilities to which the recipient sells locally or regionally pro- duced agricultural food products a requirement to inform consumers of the retail or institutional facilities that the consumers are purchasing or consuming

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locally or regionally produced agricultural food prod- ucts.

‘‘(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 subpara- graph.

‘‘(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 pro- gram to assist agricultural producers that are seeking informa- tion to—

‘‘(A) reduce input costs; ‘‘(B) conserve energy resources; ‘‘(C) diversify operations through new energy crops and

energy generation facilities; and

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‘‘(D) expand markets for agricultural commodities pro- duced 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 pro- vide 100 percent of the cost of providing information described in paragraph (2). ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—There are

authorized to be appropriated to carry out this subsection $5,000,000 for each of fiscal years 2008 through 2012.’’.

SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) (as amended by section 6016) is amended by adding at the end the following:

‘‘(j) RURAL ECONOMIC AREA PARTNERSHIP ZONES.—Effective beginning on the date of enactment of this subsection through September 30, 2012, the Secretary shall carry out those rural eco- nomic 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—

Effective date. Termination date.

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‘‘(I) an urbanized area described in subpara- graphs (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 Develop- ment shall—

‘‘(I) not delegate the authority to carry out this subparagraph;

‘‘(II) consult with the applicable rural develop- ment State or regional director of the Department of Agriculture and the governor of the respective State;

‘‘(III) provide to the petitioner an opportunity to appeal to the Under Secretary a determination made under this subparagraph;

‘‘(IV) release to the public notice of a petition filed or initiative of the Under Secretary under this subparagraph not later than 30 days after receipt of the petition or the commencement of the initiative, as appropriate;

‘‘(V) make a determination under this subpara- graph not less than 15 days, and not more than 60 days, after the release of the notice under sub- clause (IV);

‘‘(VI) submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report on actions taken to carry out this subparagraph; and

‘‘(VII) terminate a determination under this subparagraph that part of an area is a rural area on the date that data is available for the next decennial census conducted under section 141(a) of title 13, United States Code.

‘‘(E) EXCLUSIONS.—Notwithstanding any other provi- sion 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

Termination date.

Reports.

Time period.

Public information. Notice. Deadline.

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in a rural area only because the cluster is adjacent to not more than 2 census blocks that are otherwise consid- ered 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 Sec-

retary 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 adja-

cent to a city or town described in subparagraph (A)(i). ‘‘(ii) ADJUSTMENTS.—The Secretary may, by regula-

tion 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 appro- priate 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 defini- tions 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 sub- section (a) on the level of rural development funding and partici- pation 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

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(2) in subsection (h), by striking ‘‘the date that is 5 years after the date of enactment of this section’’ and inserting ‘‘Sep- tember 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 Develop- ment Act (7 U.S.C. 2008p(d)) is amended by striking ‘‘2002 through 2007’’ and inserting ‘‘2008 through 2012’’.

SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

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

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

‘‘(a) DEFINITIONS.—In this section: ‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning

given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

‘‘(2) MICROENTREPRENEUR.—The term ‘microentrepreneur’ means an owner and operator, or prospective owner and oper- ator, of a rural microenterprise who is unable to obtain suffi- cient 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 organiza-

tion 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;

7 USC 2008s.

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‘‘(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 micro- entrepreneur assistance program established under subsection (b).

‘‘(6) RURAL MICROENTERPRISE.—The term ‘rural microenter- prise’ 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 micro- enterprises; and

‘‘(B) continuing technical and financial assistance related to the successful operation of rural microenter- prises. ‘‘(3) LOANS.—

‘‘(A) IN GENERAL.—The Secretary shall make loans to microenterprise development organizations for the purpose of providing fixed interest rate microloans to microentre- preneurs 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 Sec-

retary may permit the deferral of payments on principal and interest due on a loan to a microenterprise develop- ment organization made under this paragraph for a 2- year period beginning on the date the loan is made. ‘‘(4) GRANTS.—

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‘‘(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, busi- ness planning, and market development assist- ance, and other related services to rural micro- entrepreneurs; and

‘‘(II) carry out such other projects and activi- ties 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 microentre- preneurs that are located in rural areas that have suffered significant outward migration, as deter- mined by the Secretary; and

‘‘(II) ensure, to the maximum extent prac- ticable, that grant recipients include microenter- prise 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 pro- vide 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 microenter- prise development organization under paragraph (3). ‘‘(ii) MAXIMUM AMOUNT OF GRANT.—A microenter-

prise 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 para- graph (3), as of the date the grant is awarded. ‘‘(C) ADMINISTRATIVE EXPENSES.—Not more than 10

percent of a grant received by a microenterprise develop- ment 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.

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‘‘(C) FORM OF NON-FEDERAL SHARE.—The non-Federal share of the cost of a project funded under this section may be provided—

‘‘(i) in cash (including through fees, grants (including community development block grants), and gifts); or

‘‘(ii) in the form of in-kind contributions. ‘‘(2) OVERSIGHT.—At a minimum, not later than December

1 of each fiscal year, a microenterprise development organiza- tion that receives a loan or grant under this section shall provide to the Secretary such information as the Secretary may require to ensure that assistance provided under this section is used for the purposes for which the loan or grant was made. ‘‘(d) FUNDING.—

‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to remain available until expended—

‘‘(A) $4,000,000 for each of fiscal years 2009 through 2011; and

‘‘(B) $3,000,000 for fiscal year 2012. ‘‘(2) DISCRETIONARY FUNDING.—In addition to amounts

made available under paragraph (1), there are authorized to be appropriated to carry out this section $40,000,000 for each of fiscal years 2009 through 2012.’’.

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

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

‘‘SEC. 379F. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNI- TIES 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 dis- ability. ‘‘(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;

7 USC 2000t.

Deadline.

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‘‘(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 disabil-

ities in rural areas by developing national technical assistance and education resources to assist small businesses in a rural area to recruit, hire, accommodate, and employ individuals with disabilities; and

‘‘(2) self-employment and entrepreneurship opportunities for individuals with disabilities in a rural area. ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out this section $2,000,000 for each of fiscal years 2008 through 2012.’’.

SEC. 6024. HEALTH CARE SERVICES.

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

‘‘SEC. 379G. HEALTH CARE SERVICES.

‘‘(a) PURPOSE.—The purpose of this section is to address the continued unmet health needs in the Delta region through coopera- tion among health care professionals, institutions of higher edu- cation, 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 experi- ence 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’’.

7 USC 2008u.

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(b) TERMINATION OF AUTHORITY.—Section 382N of the Consoli- dated Farm and Rural Development Act (7 U.S.C. 2009aa–13) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

(c) EXPANSION.—Section 4(2) of the Delta Development Act (42 U.S.C. 3121 note; Public Law 100–460) is amended—

(1) in subparagraph (D), by inserting ‘‘Beauregard, Bienville, Cameron, Claiborne, DeSoto, Jefferson Davis, Red River, St. Mary, Vermillion, Webster,’’ after ‘‘St. James,’’; and

(2) in subparagraph (E)— (A) by inserting ‘‘Jasper,’’ after ‘‘Copiah,’’; and (B) by inserting ‘‘Smith,’’ after ‘‘Simpson,’’.

SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

(a) DEFINITION OF REGION.—Section 383A(4) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb(4)) is amended by inserting ‘‘Missouri (other than counties included in the Delta Regional Authority),’’ after ‘‘Minnesota,’’.

(b) ESTABLISHMENT.—Section 383B of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb–1) is amended—

(1) in subsection (a), by adding at the end the following: ‘‘(4) FAILURE TO CONFIRM.—

‘‘(A) FEDERAL MEMBER.—Notwithstanding any other provision of this section, if a Federal member described in paragraph (2)(A) has not been confirmed by the Senate by not later than 180 days after the date of enactment of this paragraph, the Authority may organize and operate without the Federal member.

‘‘(B) INDIAN CHAIRPERSON.—In the case of the Indian Chairperson, if no Indian Chairperson is confirmed by the Senate, the regional authority shall consult and coordinate with the leaders of Indian tribes in the region concerning the activities of the Authority, as appropriate.’’; (2) in subsection (d)—

(A) in paragraph (1), by striking ‘‘to establish priorities and’’ and inserting ‘‘for multistate cooperation to advance the economic and social well-being of the region and to’’;

(B) in paragraph (3), by striking ‘‘local development districts,’’ and inserting ‘‘regional and local development districts or organizations, regional boards established under subtitle I,’’;

(C) in paragraph (4), by striking ‘‘cooperation;’’ and inserting ‘‘cooperation for—

‘‘(i) renewable energy development and trans- mission;

‘‘(ii) transportation planning and economic develop- ment;

‘‘(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 fol- lowing: ‘‘(6) enhance the capacity of, and provide support for,

multistate development and research organizations, local

Deadline.

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development organizations and districts, and resource conserva- tion districts in the region;’’; and

(E) in paragraph (7), by inserting ‘‘renewable energy,’’ after ‘‘commercial,’’. (3) in subsection (f)(2), by striking ‘‘the Federal cochair-

person’’ and inserting ‘‘a cochairperson’’; (4) in subsection (g)(1), by striking subparagraphs (A)

through (C) and inserting the following: ‘‘(A) for each of fiscal years 2008 and 2009, 100 percent; ‘‘(B) for fiscal year 2010, 75 percent; and ‘‘(C) for fiscal year 2011 and each fiscal year thereafter,

50 percent.’’. (c) INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND

EFFICIENCY.— (1) IN GENERAL.—Subtitle G of the Consolidated Farm and

Rural Development Act is amended— (A) by redesignating sections 383C through 383N (7

U.S.C. 2009bb–2 through 2009bb–13) as sections 383D through 383O, respectively; and

(B) by inserting after section 383B (7 U.S.C. 2009bb– 1) the following:

‘‘SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPOR- TUNITY AND EFFICIENCY.

‘‘(a) IN GENERAL.—The Authority shall provide assistance to States in developing regional plans to address multistate economic issues, including plans—

‘‘(1) to develop a regional transmission system for move- ment 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 edu-

cation; and ‘‘(6) conservation land management.’’. (2) CONFORMING AMENDMENTS.—

(A) Section 383B(c)(3)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb–1(c)(3)(B)) is amended by striking ‘‘383I’’ and inserting ‘‘383J’’.

(B) Section 383D(a) of the Consolidated Farm and Rural Development Act (as redesignated by paragraph (1)(A)) is amended by striking ‘‘383I’’ and inserting ‘‘383J’’.

(C) Section 383E of the Consolidated Farm and Rural Development Act (as so redesignated) is amended—

(i) in subsection (b)(1), by striking ‘‘383F(b)’’ and inserting ‘‘383G(b)’’; and

7 USC 2009bb–3.

7 USC 2009bb–2.

Plans.

7 USC 2009bb–1a.

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(ii) in subsection (c)(2)(A), by striking ‘‘383I’’ and inserting ‘‘383J’’. (D) Section 383G of the Consolidated Farm and Rural

Development Act (as so redesignated) is amended— (i) in subsection (b)—

(I) in paragraph (1), by striking ‘‘383M’’ and inserting ‘‘383N’’; and

(II) in paragraph (2), by striking ‘‘383D(b)’’ and inserting ‘‘383E(b)’’; (ii) in subsection (c)(2)(A), by striking ‘‘383E(b)’’

and inserting ‘‘383F(b)’’; and (iii) in subsection (d)—

(I) by striking ‘‘383M’’ and inserting ‘‘383N’’; and

(II) by striking ‘‘383C(a)’’ and inserting ‘‘383D(a)’’.

(E) Section 383J(c)(2) of the Consolidated Farm and Rural Development Act (as so redesignated) is amended by striking ‘‘383H’’ and inserting ‘‘383I’’.

(d) ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.—Sec- tion 383D of the Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended—

(1) in subsection (a)— (A) in paragraph (1), by striking ‘‘transportation and

telecommunication’’ and inserting ‘‘transportation, renew- able energy transmission, and telecommunication’’; and

(B) by redesignating paragraphs (1) and (2) as para- graphs (2) and (1), respectively, and moving those para- graphs 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 activi- ties’’. (e) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.—Section

383E(a) of the Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended by striking ‘‘, including local development districts,’’.

(f) MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.—Section 383F of the Consolidated Farm and Rural Development Act (as redesig- nated by subsection (c)(1)(A)) is amended—

(1) by striking the section heading and inserting ‘‘MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.’’; and

(2) by striking subsections (a) through (c) and inserting the following: ‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DEVELOPMENT DIS-

TRICT 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

7 USC 2009bb–4.

7 USC 2009bb–3.

7 USC 2009bb–2.

7 USC 2009bb–8.

7 USC 2009bb–5.

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effective opportunity for other nonprofit groups to con- tribute to the development and implementation of pro- grams 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 consulta- tion with the Federal cochairperson or Secretary, as appro- priate)—

‘‘(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 DEVELOP- MENT 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 para- graph (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 administra- tive 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 des- ignate an Indian tribe or multijurisdictional organization to serve as a lead organization in such cases as the Federal cochairperson or Secretary, as appropriate, determines appro- priate.’’. (g) DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED

COUNTIES.—Section 383G of the Consolidated Farm and Rural

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Development Act (as redesignated by subsection (c)(1)(A)) is amended—

(1) in subsection (b)(1), by striking ‘‘75’’ and inserting ‘‘50’’; (2) by striking subsection (c); (3) by redesignating subsection (d) as subsection (c); and (4) in subsection (c) (as so redesignated)—

(A) in the subsection heading, by inserting ‘‘RENEW- ABLE ENERGY,’’ after‘‘TELECOMMUNICATION’’; and

(B) by inserting ‘‘, renewable energy,’’ after ‘‘tele- communication,’’.

(h) DEVELOPMENT PLANNING PROCESS.—Section 383H of the Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended—

(1) in subsection (c)(1), by striking subparagraph (A) and inserting the following:

‘‘(A) multistate, regional, and local development dis- tricts and organizations; and’’; and (2) in subsection (d)(1), by striking ‘‘State and local develop-

ment districts’’ and inserting ‘‘multistate, regional, and local development districts and organizations’’. (i) PROGRAM DEVELOPMENT CRITERIA.—Section 383I(a)(1) of the

Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended by inserting ‘‘multistate or’’ before ‘‘regional’’.

(j) AUTHORIZATION OF APPROPRIATIONS.—Section 383N(a) of the Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended by striking ‘‘2002 through 2007’’ and inserting ‘‘2008 through 2012’’.

(k) TERMINATION OF AUTHORITY.—Section 383O of the Consoli- dated Farm and Rural Development Act (as redesignated by sub- section (c)(1)(A)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM.

(a) ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.—Sec- tion 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 Sec- retary’’ 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:

7 USC 2009bb–13.

7 USC 2009bb–12.

7 USC 2009bb–7.

7 USC 2009bb–6.

7 USC 2009bb–5.

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‘‘(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 com-

pany shall have a period of 2 years to meet the capital require- ments 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 invest- ment 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 Consoli-

dated Farm and Rural Development Act (7 U.S.C. 2009cc–16) is repealed.

(f) FUNDING.—The Consolidated Farm and Rural Development Act is amended by striking section 384S (7 U.S.C. 2009cc–18) and inserting the following:

‘‘SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 6028. RURAL COLLABORATIVE INVESTMENT PROGRAM.

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

‘‘Subtitle I—Rural Collaborative Investment Program

‘‘SEC. 385A. PURPOSE.

‘‘The purpose of this subtitle is to establish a regional rural collaborative investment program—

‘‘(1) to provide rural regions with a flexible investment vehicle, allowing for local control with Federal oversight, assist- ance, 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 develop- ment collaborations that will optimize the asset-based competi- tive advantages of rural regions with particular emphasis on innovation, entrepreneurship, and the creation of quality jobs;

‘‘(4) to foster collaborations necessary to provide the profes- sional technical expertise, institutional capacity, and economies

7 USC 2009dd–1.

7 USC 2009cc–18.

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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 lever- age 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 invest- ment 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 Competitive- ness 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, neighbor- hoods, farmsteads, scenic and historic trails, heritage areas, and historic landscapes.

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

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a Rural Collaborative Investment Program to support comprehensive regional investment strategies for achieving rural competitiveness.

‘‘(b) DUTIES OF SECRETARY.—In carrying out this subtitle, the Secretary shall—

‘‘(1) appoint and provide administrative and program sup- port to the National Board;

‘‘(2) establish a national institute, to be known as the ‘National Institute on Regional Rural Competitiveness and Entrepreneurship’, to provide technical assistance to the Sec- retary and the National Board regarding regional competitive- ness and rural entrepreneurship, including technical assistance for—

‘‘(A) the development of rigorous analytic programs to assist Regional Boards in determining the challenges

Establishment.

7 USC 2009dd–2.

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and opportunities that need to be addressed to receive the greatest regional competitive advantage;

‘‘(B) the provision of support for best practices devel- oped 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 estab- lished in a regional investment strategy; ‘‘(3) work with the National Board to develop a national

rural investment plan that shall— ‘‘(A) create a framework to encourage and support a

more collaborative and targeted rural investment portfolio in the United States;

‘‘(B) establish a Rural Philanthropic Initiative, to work with rural communities to create and enhance the pool of permanent philanthropic resources committed to rural community and economic development;

‘‘(C) cooperate with the Regional Boards and State and local governments, organizations, and entities to ensure investment strategies are developed that take into consideration existing rural assets; and

‘‘(D) encourage the organization of Regional Boards; ‘‘(4) certify the eligibility of Regional Boards to receive

regional investment strategy grants and regional innovation grants;

‘‘(5) provide grants for Regional Boards to develop and implement regional investment strategies;

‘‘(6) provide technical assistance to Regional Boards on issues, best practices, and emerging trends relating to rural development, in cooperation with the National Rural Invest- ment 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 appro- priate governance and leadership skills in the region; and

‘‘(D) a review and evaluation of the performance of the Regional Boards (including progress in achieving bench- marks established in a regional investment strategy) in an annual report submitted to—

‘‘(i) the Committee on Agriculture of the House of Representatives; and

‘‘(ii) the Committee on Agriculture, Nutrition, and Forestry of the Senate.

‘‘(c) NATIONAL RURAL INVESTMENT BOARD.—The Secretary shall establish within the Department of Agriculture a board to be known as the ‘National Rural Investment Board’.

‘‘(d) DUTIES OF NATIONAL BOARD.—The National Board shall—

Establishment.

Reports.

Grants.

Certification.

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122 STAT. 1947PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(1) not later than 180 days after the date of establishment of the National Board, develop rules relating to the operation of the National Board; and

‘‘(2) provide advice to— ‘‘(A) the Secretary and subsequently review the design,

development, and execution of the National Rural Invest- ment 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 sub- title.

‘‘(e) MEMBERSHIP.— ‘‘(1) IN GENERAL.—The National Board shall consist of 14

members appointed by the Secretary not later than 180 days after the date of enactment of the Food, Conservation, and Energy Act of 2008.

‘‘(2) SUPERVISION.—The National Board shall be subject to the general supervision and direction of the Secretary.

‘‘(3) SECTORS REPRESENTED.—The National Board shall con- sist of representatives from each of—

‘‘(A) nationally recognized entrepreneurship organiza- tions;

‘‘(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, entrepreneur-

ship, 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 recommenda- tions made by—

‘‘(i) the chairman and ranking member of each of the Committee on Agriculture of the House of Rep- resentatives and the Committee on Agriculture, Nutri- tion, 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, Nutritio