Public Law 110-246 Farm Bill of 2008

PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 1651

Public Law 110–246
110th Congress
An Act
To provide for the continuation of agricultural and other programs of the Department
of Agriculture through fiscal year 2012, and for other purposes.

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, Conservation, and Energy Act of 2008’’.
(b) TABLE OF CONTENTS.—The table of contents of this Act
is as follows:
Sec.
Sec.
Sec.
Sec.

1.
2.
3.
4.

June 18, 2008
[H.R. 6124]
Food,
Conservation,
and Energy Act
of 2008.
7 USC 8701 note.

Short title; table of contents.
Definition of Secretary.
Explanatory Statement.
Repeal of duplicative enactment.
TITLE I—COMMODITY PROGRAMS

Sec. 1001. Definitions.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

1101.
1102.
1103.
1104.
1105.
1106.
1107.
1108.
1109.

Subtitle A—Direct Payments and Counter-Cyclical Payments
Base acres.
Payment yields.
Availability of direct payments.
Availability of counter-cyclical payments.
Average crop revenue election program.
Producer agreement required as condition of provision of payments.
Planting flexibility.
Special rule for long grain and medium grain rice.
Period of effectiveness.

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

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1301.
1302.
1303.
1304.
1305.
1306.
1307.

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Subtitle C—Peanuts
Definitions.
Base acres for peanuts for a farm.
Availability of direct payments for peanuts.
Availability of counter-cyclical payments for peanuts.
Producer agreement required as condition on provision of payments.
Planting flexibility.
Marketing assistance loans and loan deficiency payments for peanuts.

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122 STAT. 1652

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Sec. 1308. Adjustments of loans.
Sec.
Sec.
Sec.
Sec.
Sec.

1401.
1402.
1403.
1404.
1405.

Subtitle D—Sugar
Sugar program.
United States membership in the International Sugar Organization.
Flexible marketing allotments for sugar.
Storage facility loans.
Commodity Credit Corporation storage payments.

Subtitle E—Dairy
Dairy product price support program.
Dairy forward pricing program.
Dairy export incentive program.
Revision of Federal marketing order amendment procedures.
Dairy indemnity program.
Milk income loss contract program.
Dairy promotion and research program.
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.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

1501.
1502.
1503.
1504.
1505.
1506.
1507.
1508.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

1601.
1602.
1603.
1604.
1605.
1606.
1607.
1608.
1609.
1610.
1611.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

1612.
1613.
1614.
1615.
1616.
1617.
1618.
1619.
1620.
1621.
1622.
1623.

Subtitle F—Administration
Administration generally.
Suspension of permanent price support authority.
Payment limitations.
Adjusted gross income limitation.
Availability of quality incentive payments for covered oilseed producers.
Personal liability of producers for deficiencies.
Extension of existing administrative authority regarding loans.
Assignment of payments.
Tracking of benefits.
Government publication of cotton price forecasts.
Prevention of deceased individuals receiving payments under farm commodity programs.
Hard white wheat development program.
Durum wheat quality program.
Storage facility loans.
State, county, and area committees.
Prohibition on charging certain fees.
Signature authority.
Modernization of Farm Service Agency.
Information gathering.
Leasing of office space.
Geographically disadvantaged farmers and ranchers.
Implementation.
Repeals.
TITLE II—CONSERVATION

Subtitle A—Definitions and Highly Erodible Land and Wetland Conservation
Sec. 2001. Definitions relating to conservation title of Food Security Act of 1985.
Sec. 2002. Review of good faith determinations related to highly erodible land conservation.
Sec. 2003. Review of good faith determinations related to wetland conservation.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

2101.
2102.
2103.
2104.
2105.
2106.

Sec. 2107.
Sec. 2108.

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Sec. 2109.
Sec. 2110.

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Subtitle B—Conservation Reserve Program
Extension of conservation reserve program.
Land eligible for enrollment in conservation reserve.
Maximum enrollment of acreage in conservation reserve.
Designation of conservation priority areas.
Treatment of multi-year grasses and legumes.
Revised pilot program for enrollment of wetland and buffer acreage in
conservation reserve.
Additional duty of participants under conservation reserve contracts.
Managed haying, grazing, or other commercial use of forage on enrolled
land and installation of wind turbines.
Cost sharing payments relating to trees, windbreaks, shelterbelts, and
wildlife corridors.
Evaluation and acceptance of contract offers, annual rental payments,
and payment limitations.

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122 STAT. 1653

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

2201.
2202.
2203.
2204.
2205.
2206.

Sec. 2207.
Sec. 2208.
Sec. 2209.
Sec. 2210.

Subtitle C—Wetlands Reserve Program
Establishment and purpose of wetlands reserve program.
Maximum enrollment and enrollment methods.
Duration of wetlands reserve program and lands eligible for enrollment.
Terms of wetlands reserve program easements.
Compensation for easements under wetlands reserve program.
Wetlands reserve enhancement program and reserved rights pilot program.
Duties of Secretary of Agriculture under wetlands reserve program.
Payment limitations under wetlands reserve contracts and agreements.
Repeal of payment limitations exception for State agreements for wetlands reserve enhancement.
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.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

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Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

Subtitle G—Other Conservation Programs of the Food Security Act of 1985
2601. Conservation of private grazing land.
2602. Wildlife habitat incentive program.
2603. Grassroots source water protection program.
2604. Great Lakes Basin Program for soil erosion and sediment control.
2605. Chesapeake Bay watershed program.
2606. Voluntary public access and habitat incentive program.
Subtitle H—Funding and Administration of Conservation Programs
2701. Funding of conservation programs under Food Security Act of 1985.
2702. Authority to accept contributions to support conservation programs.
2703. Regional equity and flexibility.
2704. Assistance to certain farmers and ranchers to improve their access to
conservation programs.
2705. Report regarding enrollments and assistance under conservation programs.
2706. Delivery of conservation technical assistance.
2707. Cooperative conservation partnership initiative.
2708. Administrative requirements for conservation programs.
2709. Environmental services markets.
2710. Agriculture conservation experienced services program.
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

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Sec. 2807. Desert terminal lakes.
Subtitle J—Miscellaneous Conservation Provisions
Sec. 2901. High Plains water study.
Sec. 2902. Naming of National Plant Materials Center at Beltsville, Maryland, in
honor of Norman A. Berg.
Sec. 2903. Transition.
Sec. 2904. Regulations.
TITLE III—TRADE
Subtitle A—Food for Peace Act
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

3001.
3002.
3003.
3004.
3005.
3006.
3007.
3008.
3009.

Short title.
United States policy.
Food aid to developing countries.
Trade and development assistance.
Agreements regarding eligible countries and private entities.
Use of local currency payments.
General authority.
Provision of agricultural commodities.
Generation and use of currencies by private voluntary organizations and
cooperatives.
Levels of assistance.
Food Aid Consultative Group.
Administration.
Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods.
General authorities and requirements.
Definitions.
Use of Commodity Credit Corporation.
Administrative provisions.
Consolidation and modification of annual reports regarding agricultural
trade issues.
Expiration of assistance.
Authorization of appropriations.
Minimum level of nonemergency food assistance.
Coordination of foreign assistance programs.
Micronutrient fortification programs.
John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

Sec.
Sec.
Sec.
Sec.

3010.
3011.
3012.
3013.

Sec.
Sec.
Sec.
Sec.
Sec.

3014.
3015.
3016.
3017.
3018.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

3019.
3020.
3021.
3022.
3023.
3024.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

Subtitle B—Agricultural Trade Act of 1978 and Related Statutes
3101. Export credit guarantee program.
3102. Market access program.
3103. Export enhancement program.
3104. Foreign market development cooperator program.
3105. Food for Progress Act of 1985.
3106. McGovern-Dole International Food for Education and Child Nutrition
Program.

Subtitle C—Miscellaneous
Bill Emerson Humanitarian Trust.
Global Crop Diversity Trust.
Technical assistance for specialty crops.
Emerging markets and facility guarantee loan program.
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.
Sec.
Sec.
Sec.
Sec.
Sec.

3201.
3202.
3203.
3204.
3205.

Subtitle D—Softwood Lumber
Sec. 3301. Softwood lumber.
TITLE IV—NUTRITION
Subtitle A—Food Stamp Program

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PART I—RENAMING OF FOOD STAMP ACT
Sec. 4001. Renaming of Food Stamp Act and program.
Sec. 4002. Conforming amendments.

AND

PROGRAM

PART II—BENEFIT IMPROVEMENTS
Sec. 4101. Exclusion of certain military payments from income.

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PUBLIC LAW 110–246—JUNE 18, 2008
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

4102.
4103.
4104.
4105.
4106.
4107.
4108.

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

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

4111.
4112.
4113.
4114.
4115.
4116.
4117.
4118.
4119.
4120.
4121.
4122.

PART III—PROGRAM OPERATIONS
Nutrition education.
Technical clarification regarding eligibility.
Clarification of split issuance.
Accrual of benefits.
Issuance and use of program benefits.
Review of major changes in program design.
Civil rights compliance.
Codification of access rules.
State option for telephonic signature.
Privacy protections.
Preservation of access and payment accuracy.
Funding of employment and training programs.

122 STAT. 1655

PART IV—PROGRAM INTEGRITY
Sec. 4131. Eligibility disqualification.
Sec. 4132. Civil penalties and disqualification of retail food stores and wholesale
food concerns.
Sec. 4133. Major systems failures.
PART V—MISCELLANEOUS
Sec. 4141. Pilot projects to evaluate health and nutrition promotion in the supplemental nutrition assistance program.
Sec. 4142. Study on comparable access to supplemental nutrition assistance for
Puerto Rico.
Subtitle B—Food Distribution Programs
PART I—EMERGENCY FOOD ASSISTANCE PROGRAM
Sec. 4201. Emergency food assistance.
Sec. 4202. Emergency food program infrastructure grants.
PART II—FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS
Sec. 4211. Assessing the nutritional value of the FDPIR food package.
PART III—COMMODITY SUPPLEMENTAL FOOD PROGRAM
Sec. 4221. Commodity supplemental food program.
PART IV—SENIOR FARMERS’ MARKET NUTRITION PROGRAM
Sec. 4231. Seniors farmers’ market nutrition program.
Subtitle C—Child Nutrition and Related Programs
Sec. 4301. State performance on enrolling children receiving program benefits for
free school meals.
Sec. 4302. Purchases of locally produced foods.
Sec. 4303. Healthy food education and program replicability.
Sec. 4304. Fresh fruit and vegetable program.
Sec. 4305. Whole grain products.
Sec. 4306. Buy American requirements.
Sec. 4307. Survey of foods purchased by school food authorities.
Subtitle D—Miscellaneous
Sec. 4401. Bill Emerson National Hunger Fellows and Mickey Leland International
Hunger Fellows.
Sec. 4402. Assistance for community food projects.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404. Section 32 funds for purchase of fruits, vegetables, and nuts to support
domestic nutrition assistance programs.
Sec. 4405. Hunger-free communities.
Sec. 4406. Reauthorization of Federal food assistance programs.
Sec. 4407. Effective and implementation dates.
TITLE V—CREDIT
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Subtitle A—Farm Ownership Loans
Sec. 5001. Direct loans.

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Sec.
Sec.
Sec.
Sec.

5002.
5003.
5004.
5005.

Conservation loan and loan guarantee program.
Limitations on amount of farm ownership loans.
Down payment loan program.
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.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

5401.
5402.
5403.
5404.
5405.
5406.
5407.

Subtitle E—Farm Credit
Farm Credit System Insurance Corporation.
Technical correction.
Bank for cooperatives voting stock.
Premiums.
Certification of premiums.
Rural utility loans.
Equalization of loan-making powers of certain district associations.

Subtitle F—Miscellaneous
Sec. 5501. Loans to purchasers of highly fractioned land.

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TITLE VI—RURAL DEVELOPMENT

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Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

6001.
6002.
6003.
6004.
6005.
6006.
6007.
6008.
6009.
6010.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

6011.
6012.
6013.
6014.
6015.
6016.
6017.
6018.
6019.
6020.
6021.
6022.
6023.

Sec.
Sec.
Sec.
Sec.

6024.
6025.
6026.
6027.

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Subtitle A—Consolidated Farm and Rural Development Act
Water, waste disposal, and wastewater facility grants.
SEARCH grants.
Rural business opportunity grants.
Child day care facility grants, loans, and loan guarantees.
Community facility grants to advance broadband.
Rural water and wastewater circuit rider program.
Tribal College and University essential community facilities.
Emergency and imminent community water assistance grant program.
Water systems for rural and native villages in Alaska.
Grants to nonprofit organizations to finance the construction, refurbishing, and servicing of individually-owned household water well systems in rural areas for individuals with low or moderate incomes.
Interest rates for water and waste disposal facilities loans.
Cooperative equity security guarantee.
Rural cooperative development grants.
Grants to broadcasting systems.
Locally or regionally produced agricultural food products.
Appropriate technology transfer for rural areas.
Rural economic area partnership zones.
Definitions.
National rural development partnership.
Historic barn preservation.
Grants for NOAA weather radio transmitters.
Rural microentrepreneur assistance program.
Grants for expansion of employment opportunities for individuals with
disabilities in rural areas.
Health care services.
Delta Regional Authority.
Northern Great Plains Regional Authority.
Rural Business Investment Program.

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

6201.
6202.
6203.
6204.
6205.

Sec.
Sec.
Sec.
Sec.
Sec.

6301.
6302.
6303.
6304.
6305.

Subtitle D—Housing Assistance Council
Short title.
Assistance to Housing Assistance Council.
Audits and reports.
Persons not lawfully present in the United States.
Limitation on use of authorized amounts.

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TITLE VII—RESEARCH AND RELATED MATTERS
Subtitle A—National Agricultural Research, Extension, and Teaching Policy Act of
1977
Sec. 7101. Definitions.
Sec. 7102. National Agricultural Research, Extension, Education, and Economics
Advisory Board.
Sec. 7103. Specialty crop committee report.
Sec. 7104. Renewable energy committee.
Sec. 7105. Veterinary medicine loan repayment.
Sec. 7106. Eligibility of University of the District of Columbia for grants and fellowships for food and agricultural sciences education.
Sec. 7107. Grants to 1890 schools to expand extension capacity.
Sec. 7108. Expansion of food and agricultural sciences awards.
Sec. 7109. Grants and fellowships for food and agricultural sciences education.
Sec. 7110. Grants for research on production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products.
Sec. 7111. Policy research centers.
Sec. 7112. Education grants to Alaska Native-serving institutions and Native Hawaiian-serving institutions.
Sec. 7113. Emphasis of human nutrition initiative.
Sec. 7114. Human nutrition intervention and health promotion research program.
Sec. 7115. Pilot research program to combine medical and agricultural research.
Sec. 7116. Nutrition education program.
Sec. 7117. Continuing animal health and disease research programs.
Sec. 7118. Cooperation among eligible institutions.
Sec. 7119. Appropriations for research on national or regional problems.
Sec. 7120. Animal health and disease research program.
Sec. 7121. Authorization level for extension at 1890 land-grant colleges.
Sec. 7122. Authorization level for agricultural research at 1890 land-grant colleges.
Sec. 7123. Grants to upgrade agricultural and food sciences facilities at 1890 landgrant 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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Sec. 7126. National research and training virtual centers.
Sec. 7127. Matching funds requirement for research and extension activities of
1890 institutions.
Sec. 7128. Hispanic-serving institutions.
Sec. 7129. Hispanic-serving agricultural colleges and universities.
Sec. 7130. International agricultural research, extension, and education.
Sec. 7131. Competitive grants for international agricultural science and education
programs.
Sec. 7132. Administration.
Sec. 7133. Research equipment grants.
Sec. 7134. University research.
Sec. 7135. Extension Service.
Sec. 7136. Supplemental and alternative crops.
Sec. 7137. New Era Rural Technology Program.
Sec. 7138. Capacity building grants for NLGCA Institutions.
Sec. 7139. Borlaug international agricultural science and technology fellowship program.
Sec. 7140. Aquaculture assistance programs.
Sec. 7141. Rangeland research grants.
Sec. 7142. Special authorization for biosecurity planning and response.
Sec. 7143. Resident instruction and distance education grants program for insular
area institutions of higher education.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990
7201. National genetics resources program.
7202. National Agricultural Weather Information System.
7203. Partnerships.
7204. High-priority research and extension areas.
7205. Nutrient management research and extension initiative.
7206. Organic Agriculture Research and Extension Initiative.
7207. Agricultural bioenergy feedstock and energy efficiency research and extension initiative.
7208. Farm business management and benchmarking.
7209. Agricultural telecommunications program.
7210. Assistive technology program for farmers with disabilities.
7211. Research on honey bee diseases.
7212. National Rural Information Center Clearinghouse.

Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998
Sec. 7301. Peer and merit review.
Sec. 7302. Partnerships for high-value agricultural product quality research.
Sec. 7303. Precision agriculture.
Sec. 7304. Biobased products.
Sec. 7305. Thomas Jefferson Initiative for Crop Diversification.
Sec. 7306. Integrated research, education, and extension competitive grants program.
Sec. 7307. Fusarium graminearum grants.
Sec. 7308. Bovine Johne’s disease control program.
Sec. 7309. Grants for youth organizations.
Sec. 7310. Agricultural biotechnology research and development for developing
countries.
Sec. 7311. Specialty crop research initiative.
Sec. 7312. Food animal residue avoidance database program.
Sec. 7313. Office of pest management policy.
Subtitle D—Other Laws
Critical Agricultural Materials Act.
Equity in Educational Land-Grant Status Act of 1994.
Smith-Lever Act.
Hatch Act of 1887.
Agricultural Experiment Station Research Facilities Act.
Agriculture and food research initiative.
Agricultural Risk Protection Act of 2000.
Exchange or sale authority.
Enhanced use lease authority pilot program.
Beginning farmer and rancher development program.
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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Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

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7402.
7403.
7404.
7405.
7406.
7407.
7408.
7409.
7410.
7411.

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122 STAT. 1659

Sec. 7415. Construction of Chinese Garden at the National Arboretum.
Sec. 7416. National Agricultural Research, Extension, and Teaching Policy Act
Amendments of 1985.
Sec. 7417. Eligibility of University of the District of Columbia for certain landgrant university assistance.
Subtitle E—Miscellaneous
PART I—GENERAL PROVISIONS
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

7501.
7502.
7503.
7504.
7505.
7506.

Definitions.
Grazinglands research laboratory.
Fort Reno Science Park Research Facility.
Roadmap.
Review of plan of work requirements.
Budget submission and funding.

PART II—RESEARCH, EDUCATION,
Sec. 7511. Research, education, and economics.

AND

ECONOMICS

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

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

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

8101.
8102.
8103.
8104.
8105.
8106.
8107.

Subtitle B—Cultural and Heritage Cooperation Authority
Purposes.
Definitions.
Reburial of human remains and cultural items.
Temporary closure for traditional and cultural purposes.
Forest products for traditional and cultural purposes.
Prohibition on disclosure.
Severability and savings provisions.

Sec.
Sec.
Sec.
Sec.
Sec.

8201.
8202.
8203.
8204.
8205.

Subtitle C—Amendments to Other Forestry-Related Laws
Rural revitalization technologies.
Office of International Forestry.
Emergency forest restoration program.
Prevention of illegal logging practices.
Healthy forests reserve program.

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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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PUBLIC LAW 110–246—JUNE 18, 2008

Sec. 8402. Hispanic-serving institution agricultural land national resources leadership program.
TITLE IX—ENERGY
Sec. 9001. Energy.
Sec. 9002. Biofuels infrastructure study.
Sec. 9003. Renewable fertilizer study.
TITLE X—HORTICULTURE AND ORGANIC AGRICULTURE
Sec. 10001. Definitions.
Subtitle A—Horticulture Marketing and Information
Sec. 10101. Independent evaluation of Department of Agriculture commodity purchase process.
Sec. 10102. Quality requirements for clementines.
Sec. 10103. Inclusion of specialty crops in census of agriculture.
Sec. 10104. Mushroom promotion, research, and consumer information.
Sec. 10105. Food safety education initiatives.
Sec. 10106. Farmers’ market promotion program.
Sec. 10107. Specialty crops market news allocation.
Sec. 10108. Expedited marketing order for Hass avocados for grades and standards
and other purposes.
Sec. 10109. Specialty crop block grants.
Subtitle B—Pest and Disease Management
Plant pest and disease management and disaster prevention.
National Clean Plant Network.
Plant protection.
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.
Sec.
Sec.
Sec.
Sec.

10201.
10202.
10203.
10204.

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.
Sec.
Sec.
Sec.
Sec.

10401.
10402.
10403.
10404.

Subtitle D—Miscellaneous
National Honey Board.
Identification of honey.
Grant program to improve movement of specialty crops.
Market loss assistance for asparagus producers.

TITLE XI—LIVESTOCK
Livestock mandatory reporting.
Country of origin labeling.
Agricultural Fair Practices Act of 1967 definitions.
Annual report.
Production contracts.
Regulations.
Sense of Congress regarding pseudorabies eradication program.
Sense of Congress regarding the cattle fever tick eradication program.
National Sheep Industry Improvement Center.
Trichinae certification program.
Low pathogenic diseases.
Animal protection.
National Aquatic Animal Health Plan.
Study on bioenergy operations.
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.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

11001.
11002.
11003.
11004.
11005.
11006.
11007.
11008.
11009.
11010.
11011.
11012.
11013.
11014.
11015.

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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.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

12003.
12004.
12005.
12006.
12007.
12008.
12009.
12010.
12011.
12012.
12013.
12014.
12015.
12016.
12017.
12018.
12019.
12020.
12021.
12022.
12023.
12024.
12025.
12026.
12027.
12028.
12029.
12030.
12031.
12032.
12033.
12034.

122 STAT. 1661

Reduction in loss ratio.
Premiums adjustments.
Controlled business insurance.
Administrative fee.
Time for payment.
Catastrophic coverage reimbursement rate.
Grain sorghum price election.
Premium reduction authority.
Enterprise and whole farm units.
Payment of portion of premium for area revenue plans.
Denial of claims.
Settlement of crop insurance claims on farm-stored production.
Time for reimbursement.
Reimbursement rate.
Renegotiation of Standard Reinsurance Agreement.
Change in due date for Corporation payments for underwriting gains.
Malting barley.
Crop production on native sod.
Information management.
Research and development.
Contracts for additional policies and studies.
Funding from insurance fund.
Pilot programs.
Risk management education for beginning farmers or ranchers.
Coverage for aquaculture under noninsured crop assistance program.
Increase in service fees for noninsured crop assistance program.
Determination of certain sweet potato production.
Declining yield report.
Definition of basic unit.
Crop insurance mediation.
Supplemental agricultural disaster assistance.
Fisheries disaster assistance.

Subtitle B—Small Business Disaster Loan Program
Sec. 12051. Short title.
Sec. 12052. Definitions.

Sec.
Sec.

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

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

12081.
12082.
12083.
12084.
12085.
12086.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

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Sec.
Sec.
Sec.

12061.
12062.
12063.
12064.

PART II—DISASTER LENDING
Eligibility for additional disaster assistance.
Additional economic injury disaster loan assistance.
Private disaster loans.
Immediate Disaster Assistance program.
Expedited disaster assistance loan program.
Gulf Coast Disaster Loan Refinancing Program.

PART III—MISCELLANEOUS
Sec. 12091. Reports on disaster assistance.

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PUBLIC LAW 110–246—JUNE 18, 2008

TITLE XIII—COMMODITY FUTURES
Sec. 13001. Short title.
Subtitle A—General Provisions
Sec. 13101. Commission authority over agreements, contracts or transactions in
foreign currency.
Sec. 13102. Anti-fraud authority over principal-to-principal transactions.
Sec. 13103. Criminal and civil penalties.
Sec. 13104. Authorization of appropriations.
Sec. 13105. Technical and conforming amendments.
Sec. 13106. Portfolio margining and security index issues.
Subtitle B—Significant Price Discovery Contracts on Exempt Commercial Markets
Sec. 13201. Significant price discovery contracts.
Sec. 13202. Large trader reporting.
Sec. 13203. Conforming amendments.
Sec. 13204. Effective date.
TITLE XIV—MISCELLANEOUS
Subtitle A—Socially Disadvantaged Producers and Limited Resource Producers
Sec. 14001. Improved program delivery by Department of Agriculture on Indian
reservations.
Sec. 14002. Foreclosure.
Sec. 14003. Receipt for service or denial of service from certain Department of Agriculture agencies.
Sec. 14004. Outreach and technical assistance for socially disadvantaged farmers or
ranchers.
Sec. 14005. Accurate documentation in the Census of Agriculture and certain studies.
Sec. 14006. Transparency and accountability for socially disadvantaged farmers or
ranchers.
Sec. 14007. Oversight and compliance.
Sec. 14008. Minority Farmer Advisory Committee.
Sec. 14009. National Appeals Division.
Sec. 14010. Report of civil rights complaints, resolutions, and actions.
Sec. 14011. Sense of Congress relating to claims brought by socially disadvantaged
farmers or ranchers.
Sec. 14012. Determination on merits of Pigford claims.
Sec. 14013. Office of Advocacy and Outreach.
Subtitle B—Agricultural Security
Sec. 14101. Short title.
Sec. 14102. Definitions.
CHAPTER 1—AGRICULTURAL SECURITY
Sec. 14111. Office of Homeland Security.
Sec. 14112. Agricultural biosecurity communication center.
Sec. 14113. Assistance to build local capacity in agricultural biosecurity planning,
preparedness, and response.

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CHAPTER 2—OTHER PROVISIONS
Sec. 14121. Research and development of agricultural countermeasures.
Sec. 14122. Agricultural biosecurity grant program.
Subtitle C—Other Miscellaneous Provisions
Sec. 14201. Cotton classification services.
Sec. 14202. Designation of States for cotton research and promotion.
Sec. 14203. Grants to reduce production of methamphetamines from anhydrous ammonia.
Sec. 14204. Grants to improve supply, stability, safety, and training of agricultural
labor force.
Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978.
Sec. 14206. Report on stored quantities of propane.
Sec. 14207. Prohibitions on dog fighting ventures.
Sec. 14208. Department of Agriculture conference transparency.
Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act amendments.
Sec. 14210. Importation of live dogs.
Sec. 14211. Permanent debarment from participation in Department of Agriculture
programs for fraud.

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Sec. 14212. Prohibition on closure or relocation of county offices for the Farm Service Agency.
Sec. 14213. USDA Graduate School.
Sec. 14214. Fines for violations of the Animal Welfare Act.
Sec. 14215. Definition of central filing system.
Sec. 14216. Consideration of proposed recommendations of study on use of cats and
dogs in Federal research.
Sec. 14217. Regional economic and infrastructure development.
Sec. 14218. Coordinator for chronically underserved rural areas.
Sec. 14219. Elimination of statute of limitations applicable to collection of debt by
administrative offset.
Sec. 14220. Availability of excess and surplus computers in rural areas.
Sec. 14221. Repeal of section 3068 of the Water Resources Development Act of
2007.
Sec. 14222. Domestic food assistance programs.
Sec. 14223. Technical correction.
TITLE XV—TRADE AND TAX PROVISIONS
Sec. 15001. Short title; etc.
Subtitle A—Supplemental Agricultural Disaster Assistance From the Agricultural
Disaster Relief Trust Fund
Sec. 15101. Supplemental agricultural disaster assistance.
Subtitle B—Revenue Provisions for Agriculture Programs
Sec. 15201. Customs User Fees.
Sec. 15202. Time for payment of corporate estimated taxes.
Subtitle C—Tax Provisions
PART I—CONSERVATION
SUBPART A—LAND AND SPECIES PRESERVATION PROVISIONS

Sec. 15301. Exclusion of conservation reserve program payments from SECA tax
for certain individuals.
Sec. 15302. Two-year extension of special rule encouraging contributions of capital
gain real property for conservation purposes.
Sec. 15303. Deduction for endangered species recovery expenditures.
SUBPART B—TIMBER PROVISIONS
Sec. 15311. Temporary reduction in rate of tax on qualified timber gain of corporations.
Sec. 15312. Timber REIT modernization.
Sec. 15313. Mineral royalty income qualifying income for timber REITs.
Sec. 15314. Modification of taxable REIT subsidiary asset test for timber REITs.
Sec. 15315. Safe harbor for timber property.
Sec. 15316. Qualified forestry conservation bonds.

PART II—ENERGY PROVISIONS
SUBPART A—CELLULOSIC BIOFUEL

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

15331.
15332.
15333.
15334.

SUBPART B—REVENUE PROVISIONS
Modification of alcohol credit.
Calculation of volume of alcohol for fuel credits.
Ethanol tariff extension.
Limitations on duty drawback on certain imported ethanol.

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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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PUBLIC LAW 110–246—JUNE 18, 2008

Sec. 15352. Modification to optional method of computing net earnings from selfemployment.
Sec. 15353. Information reporting for Commodity Credit Corporation transactions.
PART V—PROTECTION
Sec. 15361. Protection of social security.

OF

SOCIAL SECURITY

Subtitle D—Trade Provisions
PART I—EXTENSION OF CERTAIN TRADE BENEFITS
Sec. 15401. Short title.
Sec. 15402. Benefits for apparel and other textile articles.
Sec. 15403. Labor Ombudsman and technical assistance improvement and compliance needs assessment and remediation program.
Sec. 15404. Petition process.
Sec. 15405. Conditions regarding enforcement of circumvention.
Sec. 15406. Presidential proclamation authority.
Sec. 15407. Regulations and procedures.
Sec. 15408. Extension of CBTPA.
Sec. 15409. Sense of Congress on interpretation of textile and apparel provisions
for Haiti.
Sec. 15410. Sense of Congress on trade mission to Haiti.
Sec. 15411. Sense of Congress on visa systems.
Sec. 15412. Effective date.
PART II—MISCELLANEOUS TRADE PROVISIONS
Sec. 15421. Unused merchandise drawback.
Sec. 15422. Requirements relating to determination of transaction value of imported merchandise.
SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ‘‘Secretary’’ means the Secretary of Agriculture.
7 USC 8701 note.

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.
7 USC 8701 note.

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
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SEC. 1001. DEFINITIONS.

In this title (other than subtitle C):

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122 STAT. 1665

(1) AVERAGE CROP REVENUE ELECTION PAYMENT.—The term
‘‘average crop revenue election payment’’ means a payment
made to producers on a farm under section 1105.
(2) BASE ACRES.—
(A) IN GENERAL.—The term ‘‘base acres’’, with respect
to a covered commodity on a farm, means the number
of acres established under section 1101 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911)
as in effect on September 30, 2007, subject to any adjustment under section 1101 of this Act.
(B) PEANUTS.—The term ‘‘base acres for peanuts’’ has
the meaning given the term in section 1301.
(3) COUNTER-CYCLICAL PAYMENT.—The term ‘‘countercyclical payment’’ means a payment made to producers on
a farm under section 1104.
(4) COVERED COMMODITY.—The term ‘‘covered commodity’’
means wheat, corn, grain sorghum, barley, oats, upland cotton,
long grain rice, medium grain rice, pulse crops, soybeans, and
other oilseeds.
(5) DIRECT PAYMENT.—The term ‘‘direct payment’’ means
a payment made to producers on a farm under section 1103.
(6) EFFECTIVE PRICE.—The term ‘‘effective price’’, with
respect to a covered commodity for a crop year, means the
price calculated by the Secretary under section 1104 to determine whether counter-cyclical payments are required to be
made for that crop year.
(7) EXTRA LONG STAPLE COTTON.—The term ‘‘extra long
staple cotton’’ means cotton that—
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid of the species, or other
similar types of extra long staple cotton, designated by
the Secretary, having characteristics needed for various
end uses for which United States upland cotton is not
suitable and grown in irrigated cotton-growing regions of
the United States designated by the Secretary or other
areas designated by the Secretary as suitable for the
production of the varieties or types; and
(B) is ginned on a roller-type gin or, if authorized
by the Secretary, ginned on another type gin for experimental purposes.
(8) LOAN COMMODITY.—The term ‘‘loan commodity’’ means
wheat, corn, grain sorghum, barley, oats, upland cotton, extra
long staple cotton, long grain rice, medium grain rice, soybeans,
other oilseeds, graded wool, nongraded wool, mohair, honey,
dry peas, lentils, small chickpeas, and large chickpeas.
(9) MEDIUM GRAIN RICE.—The term ‘‘medium grain rice’’
includes short grain rice.
(10) OTHER OILSEED.—The term ‘‘other oilseed’’ means a
crop of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, crambe, sesame seed, or any oilseed designated
by the Secretary.
(11) PAYMENT ACRES.—The term ‘‘payment acres’’ means,
in the case of direct payments and counter-cyclical payments—
(A) except as provided in subparagraph (B), 85 percent
of the base acres of a covered commodity on a farm on
which direct payments or counter-cyclical payments are
made; and

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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 established for counter-cyclical payments under section 1102 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7912) as in effect on September 30, 2007, or under section
1102 of this Act, for a farm for a covered commodity.
(13) PRODUCER.—
(A) IN GENERAL.—The term ‘‘producer’’ means an
owner, operator, landlord, tenant, or sharecropper that
shares in the risk of producing a crop and is entitled
to share in the crop available for marketing from the farm,
or would have shared had the crop been produced.
(B) HYBRID SEED.—In determining whether a grower
of hybrid seed is a producer, the Secretary shall—
(i) not take into consideration the existence of a
hybrid seed contract; and
(ii) ensure that program requirements do not
adversely affect the ability of the grower to receive
a payment under this title.
(14) PULSE CROP.—The term ‘‘pulse crop’’ means dry peas,
lentils, small chickpeas, and large chickpeas.
(15) STATE.—The term ‘‘State’’ means—
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(16) TARGET PRICE.—The term ‘‘target price’’ means the
price per bushel, pound, or hundredweight (or other appropriate
unit) of a covered commodity used to determine the payment
rate for counter-cyclical payments.
(17) UNITED STATES.—The term ‘‘United States’’, when used
in a geographical sense, means all of the States.
(18) UNITED STATES PREMIUM FACTOR.—The term ‘‘United
States Premium Factor’’ means the percentage by which the
difference in the United States loan schedule premiums for
Strict Middling (SM) 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 CounterCyclical Payments

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7 USC 8711.

SEC. 1101. BASE ACRES.

(a) ADJUSTMENT OF BASE ACRES.—
(1) IN GENERAL.—The Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities
for a farm whenever any of the following circumstances occurs:
(A) A conservation reserve contract entered into under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) with respect to the farm expires or is voluntarily
terminated, or was terminated or expired during the period

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122 STAT. 1667

beginning on October 1, 2007, and ending on the date
of enactment of this Act.
(B) Cropland is released from coverage under a conservation reserve contract by the Secretary, or was released
during the period beginning on October 1, 2007, and ending
on the date of enactment of this Act.
(C) The producer has eligible pulse crop acreage, which
shall be determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(D) The producer has eligible oilseed acreage as the
result of the Secretary designating additional oilseeds,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(2) SPECIAL CONSERVATION RESERVE ACREAGE PAYMENT
RULES.—For the crop year in which a base acres adjustment
under subparagraph (A) or (B) of paragraph (1) is first made,
the owner of the farm shall elect to receive either direct payments and counter-cyclical payments with respect to the acreage added to the farm under this subsection or a prorated
payment under the conservation reserve contract, but not both.
(b) PREVENTION OF EXCESS BASE ACRES.—
(1) REQUIRED REDUCTION.—If the sum of the base acres
for a farm, together with the acreage described in paragraph
(2) exceeds the actual cropland acreage of the farm, the Secretary shall reduce the base acres for 1 or more covered
commodities for the farm or the base acres for peanuts for
the farm so that the sum of the base acres and acreage
described in paragraph (2) does not exceed the actual cropland
acreage of the farm.
(2) OTHER ACREAGE.—For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for peanuts for the farm.
(B) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program under
chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a Federal
conservation program for which payments are made in
exchange for not producing an agricultural commodity on
the acreage.
(D) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed acreage
under section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional oilseeds, any
eligible oilseed acreage, which shall be determined in the
same manner as eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 7911(a)(2)).
(3) SELECTION OF ACRES.—The Secretary shall give the
owner of the farm the opportunity to select the base acres
for a covered commodity or the base acres for peanuts for
the farm against which the reduction required by paragraph
(1) will be made.

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(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE.—In
applying paragraph (1), the Secretary shall make an exception
in the case of double cropping, as determined by the Secretary.
(5) COORDINATED APPLICATION OF REQUIREMENTS.—The
Secretary shall take into account section 1302(b) when applying
the requirements of this subsection.
(c) REDUCTION IN BASE ACRES.—
(1) REDUCTION AT OPTION OF OWNER.—
(A) IN GENERAL.—The owner of a farm may reduce,
at any time, the base acres for any covered commodity
for the farm.
(B) EFFECT OF REDUCTION.—A reduction under
subparagraph (A) shall be permanent and made in a
manner prescribed by the Secretary.
(2) REQUIRED ACTION BY SECRETARY.—
(A) IN GENERAL.—The Secretary shall proportionately
reduce base acres on a farm for covered commodities for
land that has been subdivided and developed for multiple
residential units or other nonfarming uses if the size of
the tracts and the density of the subdivision is such that
the land is unlikely to return to the previous agricultural
use, unless the producers on the farm demonstrate that
the land—
(i) remains devoted to commercial agricultural
production; or
(ii) is likely to be returned to the previous agricultural use.
(B) REQUIREMENT.—The Secretary shall establish
procedures to identify land described in subparagraph (A).
(3) REVIEW AND REPORT.—Each year, to ensure, to the
maximum extent practicable, that payments are received only
by producers, the Secretary shall submit to Congress a report
that describes the results of the actions taken under paragraph
(2).
(d) TREATMENT OF FARMS WITH LIMITED BASE ACRES.—
(1) PROHIBITION ON PAYMENTS.—Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive direct payments,
counter-cyclical payments, or average crop revenue election payments if the sum of the base acres of the farm is 10 acres
or less, as determined by the Secretary.
(2) EXCEPTIONS.—Paragraph (1) shall not apply to a farm
owned by—
(A) a socially disadvantaged farmer or rancher (as
defined in section 355(e) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)); or
(B) a limited resource farmer or rancher, as defined
by the Secretary.
(3) DATA COLLECTION AND PUBLICATION.—The Secretary
shall—
(A) collect and publish segregated data and survey
information about the farm profiles, utilization of land,
and crop production; and
(B) perform an evaluation on the supply and price
of fruits and vegetables based on the effects of suspension
of base acres under this section.

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122 STAT. 1669
7 USC 8712.

SEC. 1102. PAYMENT YIELDS.

(a) ESTABLISHMENT AND PURPOSE.—For the purpose of making
direct payments and counter-cyclical payments under this subtitle,
the Secretary shall provide for the establishment of a yield for
each farm for any designated oilseed or eligible pulse crop for
which a payment yield was not established under section 1102
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7912) in accordance with this section.
(b) PAYMENT YIELDS FOR DESIGNATED OILSEEDS AND ELIGIBLE
PULSE CROPS.—
(1) DETERMINATION OF AVERAGE YIELD.—In the case of designated oilseeds and eligible pulse crops, the Secretary shall
determine the average yield per planted acre for the designated
oilseed or pulse crop on a farm for the 1998 through 2001
crop years, excluding any crop year in which the acreage
planted to the designated oilseed or pulse crop was zero.
(2) ADJUSTMENT FOR PAYMENT YIELD.—
(A) IN GENERAL.—The payment yield for a farm for
a designated oilseed or eligible pulse crop shall be equal
to the product of the following:
(i) The average yield for the designated oilseed
or pulse crop determined under paragraph (1).
(ii) The ratio resulting from dividing the national
average yield for the designated oilseed or pulse crop
for the 1981 through 1985 crops by the national average yield for the designated oilseed or pulse crop for
the 1998 through 2001 crops.
(B) NO NATIONAL AVERAGE YIELD INFORMATION AVAILABLE.—To the extent that national average yield information for a designated oilseed or pulse crop is not available,
the Secretary shall use such information as the Secretary
determines to be fair and equitable to establish a national
average yield under this section.
(3) USE OF PARTIAL COUNTY AVERAGE YIELD.—If the yield
per planted acre for a crop of a designated oilseed or pulse
crop for a farm for any of the 1998 through 2001 crop years
was less than 75 percent of the county yield for that designated
oilseed or pulse crop, the Secretary shall assign a yield for
that crop year equal to 75 percent of the county yield for
the purpose of determining the average under paragraph (1).
(4) NO HISTORIC YIELD DATA AVAILABLE.—In the case of
establishing yields for designated oilseeds and eligible pulse
crops, if historic yield data is not available, the Secretary shall
use the ratio for dry peas calculated under paragraph (2)(A)(ii)
in determining the yields for designated oilseeds and eligible
pulse crops, as determined to be fair and equitable by the
Secretary.

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SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

7 USC 8713.

(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.

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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 commodity for any of the 2008 through 2011 crop years
to the producers on a farm.
(ii) 2008 CROP YEAR.—If the producers on a farm
elect to receive advance direct payments under clause
(i) for a covered commodity for the 2008 crop year,
as soon as practicable after the election, the Secretary
shall make the advance direct payment to the producers on the farm.
(B) MONTH.—
(i) SELECTION.—Subject to clauses (ii) and (iii),
the producers on a farm shall select the month during
which the advance payment for a crop year will be
made.
(ii) OPTIONS.—The month selected may be any
month during the period—
(I) beginning on December 1 of the calendar
year before the calendar year in which the crop
of the covered commodity is harvested; and
(II) ending during the month within which
the direct payment would otherwise be made.
(iii) CHANGE.—The producers on a farm may
change the selected month for a subsequent advance
payment by providing advance notice to the Secretary.
(3) REPAYMENT OF ADVANCE PAYMENTS.—If a producer on
a farm that receives an advance direct payment for a crop
year ceases to be a producer on that farm, or the extent to
which the producer shares in the risk of producing a crop
changes, before the date the remainder of the direct payment
is made, the producer shall be responsible for repaying the

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

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SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

7 USC 8714.

(a) PAYMENT REQUIRED.—Except as provided in section 1105,
for each of the 2008 through 2012 crop years for each covered
commodity, the Secretary shall make counter-cyclical payments to
producers on farms for which payment yields and base acres are
established with respect to the covered commodity if the Secretary
determines that the effective price for the covered commodity is
less than the target price for the covered commodity.
(b) EFFECTIVE PRICE.—
(1) COVERED COMMODITIES OTHER THAN RICE.—Except as
provided in paragraph (2), for purposes of subsection (a), the
effective price for a covered commodity is equal to the sum
of the following:
(A) The higher of the following:
(i) The national average market price received by
producers during the 12-month marketing year for the
covered commodity, as determined by the Secretary.
(ii) The national average loan rate for a marketing
assistance loan for the covered commodity in effect
for the applicable period under subtitle B.
(B) The payment rate in effect for the covered commodity under section 1103 for the purpose of making direct
payments with respect to the covered commodity.
(2) RICE.—In the case of long grain rice and medium grain
rice, for purposes of subsection (a), the effective price for each
type or class of rice is equal to the sum of the following:
(A) The higher of the following:
(i) The national average market price received by
producers during the 12-month marketing year for the
type or class of rice, as determined by the Secretary.
(ii) The national average loan rate for a marketing
assistance loan for the type or class of rice in effect
for the applicable period under subtitle B.
(B) The payment rate in effect for the type or class
of rice under section 1103 for the purpose of making direct
payments with respect to the type or class of rice.
(c) TARGET PRICE.—
(1) 2008 CROP YEAR.—For purposes of the 2008 crop year,
the target prices for covered commodities shall be as follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $5.80 per bushel.
(J) Other oilseeds, $10.10 per hundredweight.
(2) 2009 CROP YEAR.—For purposes of the 2009 crop year,
the target prices for covered commodities shall be as follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.

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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 countercyclical 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 countercyclical 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 countercyclical payments are required to be made under this section
for the crop of a covered commodity, beginning October 1,
or as soon as practicable thereafter, after the end of the marketing year for the covered commodity, the Secretary shall
make the counter-cyclical payments for the crop.
(2) AVAILABILITY OF PARTIAL PAYMENTS.—
(A) IN GENERAL.—If, before the end of the 12-month
marketing year for a covered commodity, the Secretary
estimates that counter-cyclical payments will be required
for the crop of the covered commodity, the Secretary shall

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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 producers on a farm to make an election to receive partial
payments for a covered commodity under subparagraph
(A) at any time but not later than 60 days prior to
the end of the marketing year for that covered commodity.
(ii) DATE OF ISSUANCE.—The Secretary shall issue
the partial payment after the date of an announcement
by the Secretary but not later than 30 days prior
to the end of the marketing year.
(3) TIME FOR PARTIAL PAYMENTS.—When the Secretary
makes partial payments for a covered commodity for any of
the 2008 through 2010 crop years—
(A) the first partial payment shall be made after
completion of the first 180 days of the marketing year
for the covered commodity; and
(B) the final partial payment shall be made beginning
October 1, or as soon as practicable thereafter, after the
end of the applicable marketing year for the covered commodity.
(4) AMOUNT OF PARTIAL PAYMENT.—
(A) FIRST PARTIAL PAYMENT.—For each of the 2008
through 2010 crops of a covered commodity, the first partial
payment under paragraph (3) to the producers on a farm
may not exceed 40 percent of the projected counter-cyclical
payment for the covered commodity for the crop year, as
determined by the Secretary.
(B) FINAL PAYMENT.—The final payment for a covered
commodity for a crop year shall be equal to the difference
between—
(i) the actual counter-cyclical payment to be made
to the producers for the covered commodity for that
crop year; and
(ii) the amount of the partial payment made to
the producers under subparagraph (A).
(5) REPAYMENT.—The producers on a farm that receive
a partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total
of the partial payments exceed the actual counter-cyclical payment to be made for the covered commodity for that crop
year.

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SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM.

Deadlines.

7 USC 8715.

(a) AVAILABILITY AND ELECTION OF ALTERNATIVE APPROACH.—
(1) AVAILABILITY OF AVERAGE CROP REVENUE ELECTION PAYMENTS.—As an alternative to receiving counter-cyclical payments under section 1104 or 1304 and in exchange for a 20percent 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

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election to instead receive average crop revenue election
(referred to in this section as ‘‘ACRE’’) payments under this
section for the initial crop year for which the election is made
through the 2012 crop year.
(2) LIMITATION.—
(A) IN GENERAL.—The total number of planted acres
for which the producers on a farm may receive ACRE
payments under this section may not exceed the total base
acreage for all covered commodities and peanuts on the
farm.
(B) ELECTION.—If the total number of planted acres
to all covered commodities and peanuts of the producers
on a farm exceeds the total base acreage of the farm,
the producers on the farm may choose which planted acres
to enroll in the program under this section.
(3) ELECTION; TIME FOR ELECTION.—
(A) IN GENERAL.—The Secretary shall provide notice
to producers regarding the opportunity to make each of
the elections described in paragraph (1).
(B) NOTICE REQUIREMENTS.—The notice shall include—
(i) notice of the opportunity of the producers on
a farm to make the election; and
(ii) information regarding the manner in which
the election must be made and the time periods and
manner in which notice of the election must be submitted to the Secretary.
(4) ELECTION DEADLINE.—Within the time period and in
the manner prescribed pursuant to paragraph (3), all of the
producers on a farm shall submit to the Secretary notice of
an election made under paragraph (1).
(5) EFFECT OF FAILURE TO MAKE ELECTION.—If all of the
producers on a farm fail to make an election under paragraph
(1), make different elections under paragraph (1), or fail to
timely notify the Secretary of the election made, as required
by paragraph (4), all of the producers on the farm shall be
deemed to have made the election to receive counter-cyclical
payments under section 1104 or 1304 for all covered commodities and peanuts on the farm, and to otherwise not have
made the election described in paragraph (1), for the applicable
crop years.
(b) PAYMENTS REQUIRED.—
(1) IN GENERAL.—In the case of producers on a farm who
make an election under subsection (a) to receive ACRE payments for any of the 2009 through 2012 crop years for all
covered commodities and peanuts, the Secretary shall make
ACRE payments available to the producers on a farm in accordance with this subsection.
(2) ACRE PAYMENT.—
(A) IN GENERAL.—Subject to paragraph (3), in the case
of producers on a farm described in paragraph (1), the
Secretary shall make ACRE payments available to the
producers on a farm for each crop year if—
(i) the actual State revenue for the crop year for
the covered commodity or peanuts in the State determined under subsection (c); is less than

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 payments beginning October 1, or as soon as practicable thereafter,
after the end of the applicable marketing year for the covered
commodity or peanuts.
(c) ACTUAL STATE REVENUE.—
(1) IN GENERAL.—For purposes of subsection (b)(2)(A), the
amount of the actual State revenue for a crop year of a covered
commodity or peanuts shall equal the product obtained by
multiplying—
(A) the actual State yield for each planted acre for
the crop year for the covered commodity or peanuts determined under paragraph (2); and
(B) the national average market price for the crop
year for the covered commodity or peanuts determined
under paragraph (3).
(2) ACTUAL STATE YIELD.—For purposes of paragraph (1)(A),
the actual State yield for each planted acre for a crop year
for a covered commodity or peanuts in a State shall equal
(as determined by the Secretary)—
(A) the quantity of the covered commodity or peanuts
that is produced in the State during the crop year; divided
by
(B) the number of acres that are planted to the covered
commodity or peanuts in the State during the crop year.
(3) NATIONAL AVERAGE MARKET PRICE.—For purposes of
paragraph (1)(B), the national average market price for a crop
year for a covered commodity or peanuts in a State shall
equal the greater of—
(A) the national average market price received by producers during the 12-month marketing year for the covered
commodity or peanuts, as determined by the Secretary;
or
(B) the marketing assistance loan rate for the covered
commodity or peanuts under section 1202 or 1307, as
reduced under subsection (a)(1).
(d) ACRE PROGRAM GUARANTEE.—
(1) AMOUNT.—
(A) IN GENERAL.—For purposes of subsection (b)(2)(A)
and subject to subparagraph (B), the ACRE program guarantee for a crop year for a covered commodity or peanuts
in a State shall equal 90 percent of the product obtained
by multiplying—
(i) the benchmark State yield for each planted
acre for the crop year for the covered commodity or

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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 determined under paragraph (3).
(B) MINIMUM AND MAXIMUM GUARANTEE.—In the case
of each of the 2010 through 2012 crop years, the ACRE
program guarantee for a crop year for a covered commodity
or peanuts under subparagraph (A) shall not decrease or
increase more than 10 percent from the guarantee for
the preceding crop year.
(2) BENCHMARK STATE YIELD.—
(A) IN GENERAL.—For purposes of paragraph (1)(A)(i),
subject to subparagraph (B), the benchmark State yield
for each planted acre for a crop year for a covered commodity or peanuts in a State shall equal the average yield
per planted acre for the covered commodity or peanuts
in the State for the most recent 5 crop year yields, excluding
each of the crop years with the highest and lowest yields,
using National Agricultural Statistics Service data.
(B) ASSIGNED YIELD.—If the Secretary cannot establish
the benchmark State yield for each planted acre for a
crop year for a covered commodity or peanuts in a State
in accordance with subparagraph (A) or if the yield determined under subparagraph (A) is an unrepresentative average yield for the State (as determined by the Secretary),
the Secretary shall assign a benchmark State yield for
each planted acre for the crop year for the covered commodity or peanuts in the State on the basis of—
(i) previous average yields for a period of 5 crop
years, excluding each of the crop years with the highest
and lowest yields; or
(ii) benchmark State yields for planted acres for
the crop year for the covered commodity or peanuts
in similar States.
(3) ACRE PROGRAM GUARANTEE PRICE.—For purposes of
paragraph (1)(A)(ii), the ACRE program guarantee price for
a crop year for a covered commodity or peanuts in a State
shall be the simple average of the national average market
price received by producers of the covered commodity or peanuts
for the most recent 2 crop years, as determined by the Secretary.
(4) STATES WITH IRRIGATED AND NONIRRIGATED LAND.—In
the case of a State in which at least 25 percent of the acreage
planted to a covered commodity or peanuts in the State is
irrigated and at least 25 percent of the acreage planted to
the covered commodity or peanuts in the State is not irrigated,
the Secretary shall calculate a separate ACRE program guarantee for the irrigated and nonirrigated areas of the State
for the covered commodity or peanuts.
(e) ACTUAL FARM REVENUE.—For purposes of subsection
(b)(2)(B)(i), the amount of the actual farm revenue for a crop year
for a covered commodity or peanuts shall equal the amount determined by multiplying—
(1) the actual yield for the covered commodity or peanuts
of the producers on the farm; and

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(2) the national average market price for the crop year
for the covered commodity or peanuts determined under subsection (c)(3).
(f) FARM ACRE BENCHMARK REVENUE.—For purposes of subsection (b)(2)(B)(ii), the farm ACRE benchmark revenue for the
crop year for a covered commodity or peanuts shall equal the
sum obtained by adding—
(1) the amount determined by multiplying—
(A) the average yield per planted acre for the covered
commodity or peanuts of the producers on the farm for
the most recent 5 crop years, excluding each of the crop
years with the highest and lowest yields; and
(B) the ACRE program guarantee price for the
applicable crop year for the covered commodity or peanuts
in a State determined under subsection (d)(3); and
(2) the amount of the per acre crop insurance premium
required to be paid by the producers on the farm for the
applicable crop year for the covered commodity or peanuts
on the farm.
(g) PAYMENT AMOUNT.—If ACRE payments are required to
be paid for any of the 2009 through 2012 crop years of a covered
commodity or peanuts under this section, the amount of the ACRE
payment to be paid to the producers on the farm for the crop
year under this section shall be equal to the product obtained
by multiplying—
(1) the lesser of—
(A) the difference between—
(i) the ACRE program guarantee for the crop year
for the covered commodity or peanuts in the State
determined under subsection (d); and
(ii) the actual State revenue from the crop year
for the covered commodity or peanuts in the State
determined under subsection (c); and
(B) 25 percent of the ACRE program guarantee for
the crop year for the covered commodity or peanuts in
the State determined under subsection (d);
(2)(A) for each of the 2009 through 2011 crop years, 83.3
percent of the acreage planted or considered planted to the
covered commodity or peanuts for harvest on the farm in the
crop year; and
(B) for the 2012 crop year, 85 percent of the acreage planted
or considered planted to the covered commodity or peanuts
for harvest on the farm in the crop year; and
(3) the quotient obtained by dividing—
(A) the average yield per planted acre for the covered
commodity or peanuts of the producers on the farm for
the most recent 5 crop years, excluding each of the crop
years with the highest and lowest yields; by
(B) the benchmark State yield for the crop year, as
determined under subsection (d)(2).

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

7 USC 8716.

(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

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producers shall agree, during the crop year for which the payments are made and in exchange for the payments—
(A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security
Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility requirements
of section 1107;
(D) to use the land on the farm, in a quantity equal
to the attributable base acres for the farm and any base
acres for peanuts for the farm under subtitle C, for an
agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use, as
determined by the Secretary; and
(E) to effectively control noxious weeds and otherwise
maintain the land in accordance with sound agricultural
practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any
portion of the land referred to in subparagraph (D).
(2) COMPLIANCE.—The Secretary may issue such rules as
the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).
(3) MODIFICATION.—At the request of the transferee or
owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives
of this subsection, as determined by the Secretary.
(b) TRANSFER OR CHANGE OF INTEREST IN FARM.—
(1) TERMINATION.—
(A) IN GENERAL.—Except as provided in paragraph (2),
a transfer of (or change in) the interest of the producers
on a farm in base acres for which direct payments or
counter-cyclical payments are made, or on which average
crop revenue election payments are based, shall result in
the termination of the direct payments, counter-cyclical
payments, or average crop revenue election payments to
the extent the payments are made or based on the base
acres, unless the transferee or owner of the acreage agrees
to assume all obligations under subsection (a).
(B) EFFECTIVE DATE.—The termination shall take effect
on the date determined by the Secretary.
(2) EXCEPTION.—If a producer entitled to a direct payment,
counter-cyclical payment, or average crop revenue election payment dies, becomes incompetent, or is otherwise unable to
receive the payment, the Secretary shall make the payment,
in accordance with rules issued by the Secretary.
(c) REPORTS.—
(1) ACREAGE REPORTS.—As a condition on the receipt of
any benefits under this subtitle or subtitle B, the Secretary
shall require producers on a farm to submit to the Secretary
annual acreage reports with respect to all cropland on the
farm.
(2) PRODUCTION REPORTS.—As a condition on the receipt
of any benefits under this subtitle or subtitle B, the Secretary
shall require producers on a farm that receive payments under
section 1105 to submit to the Secretary annual production

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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 producers on a farm for an inaccurate acreage or production report
unless the producers on the farm knowingly and willfully falsified the acreage or production report.
(d) TENANTS AND SHARECROPPERS.—In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect
the interests of tenants and sharecroppers.
(e) SHARING OF PAYMENTS.—The Secretary shall provide for
the sharing of direct payments, counter-cyclical payments, or average crop revenue election payments among the producers on a
farm on a fair and equitable basis.

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SEC. 1107. PLANTING FLEXIBILITY.

7 USC 8717.

(a) PERMITTED CROPS.—Subject to subsection (b), any commodity or crop may be planted on base acres on a farm.
(b) LIMITATIONS REGARDING CERTAIN COMMODITIES.—
(1) GENERAL LIMITATION.—The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres unless the commodity, if planted, is destroyed before
harvest.
(2) TREATMENT OF TREES AND OTHER PERENNIALS.—The
planting of an agricultural commodity specified in paragraph
(3) that is produced on a tree or other perennial plant shall
be prohibited on base acres.
(3) COVERED AGRICULTURAL COMMODITIES.—Paragraphs (1)
and (2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse
crops).
(C) Wild rice.
(c) EXCEPTIONS.—Paragraphs (1) and (2) of subsection (b) shall
not limit the planting of an agricultural commodity specified in
paragraph (3) of that subsection—
(1) in any region in which there is a history of doublecropping 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 countercyclical payments shall be reduced by an acre for each acre
planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that—
(A) the quantity planted may not exceed the average
annual planting history of such agricultural commodity
by the producers on the farm in the 1991 through 1995
or 1998 through 2001 crop years (excluding any crop year
in which no plantings were made), as determined by the
Secretary; and
(B) direct payments and counter-cyclical payments
shall be reduced by an acre for each acre planted to such
agricultural commodity.

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(d) PLANTING TRANSFERABILITY PILOT PROJECT.—
(1) PILOT PROJECT AUTHORIZED.—Notwithstanding paragraphs (1) and (2) of subsection (b) and in addition to the
exceptions provided in subsection (c), the Secretary shall carry
out a pilot project to permit the planting of cucumbers, green
peas, lima beans, pumpkins, snap beans, sweet corn, and tomatoes grown for processing on base acres during each of the
2009 through 2012 crop years.
(2) PILOT PROJECT STATES AND ACRES.—The number of base
acres eligible during each crop year for the pilot project under
paragraph (1) shall be—
(A) 9,000 acres in the State of Illinois;
(B) 9,000 acres in the State of Indiana;
(C) 1,000 acres in the State of Iowa;
(D) 9,000 acres in the State of Michigan;
(E) 34,000 acres in the State of Minnesota;
(F) 4,000 acres in the State of Ohio; and
(G) 9,000 acres in the State of Wisconsin.
(3) CONTRACT AND MANAGEMENT REQUIREMENTS.—To be
eligible for selection to participate in the pilot project, the
producers on a farm shall—
(A) demonstrate to the Secretary that the producers
on the farm have entered into a contract to produce a
crop of a commodity specified in paragraph (1) for processing;
(B) agree to produce the crop as part of a program
of crop rotation on the farm to achieve agronomic and
pest and disease management benefits; and
(C) provide evidence of the disposition of the crop.
(4) TEMPORARY REDUCTION IN BASE ACRES.—The base acres
on a farm for a crop year shall be reduced by an acre for
each acre planted under the pilot program.
(5) DURATION OF REDUCTIONS.—The reduction in the base
acres of a farm for a crop year under paragraph (4) shall
expire at the end of the crop year.
(6) RECALCULATION OF BASE ACRES.—
(A) IN GENERAL.—If the Secretary recalculates base
acres for a farm while the farm is included in the pilot
project, the planting and production of a crop of a commodity specified in paragraph (1) on base acres for which
a temporary reduction was made under this section shall
be considered to be the same as the planting and production
of a covered commodity.
(B) PROHIBITION.—Nothing in this paragraph provides
authority for the Secretary to recalculate base acres for
a farm.
(7) PILOT IMPACT EVALUATION.—
(A) IN GENERAL.—The Secretary shall periodically
evaluate the pilot project conducted under this subsection
to determine the effects of the pilot project on the supply
and price of—
(i) fresh fruits and vegetables; and
(ii) fruits and vegetables for processing.
(B) DETERMINATION.—An evaluation under subparagraph (A) shall include a determination as to whether—
(i) producers of fresh fruits and vegetables are
being negatively impacted; and

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(ii) existing production capacities are being supplanted.
(C) REPORT.—As soon as practicable after conducting
an evaluation under subparagraph (A), the Secretary shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes
the results of the evaluation.
SEC. 1108. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.

7 USC 8718.

(a) CALCULATION METHOD.—Subject to subsections (b) and (c),
for the purposes of determining the amount of the counter-cyclical
payments to be paid to the producers on a farm for long grain
rice and medium grain rice under section 1104, the base acres
of rice on the farm shall be apportioned using the 4-year average
of the percentages of acreage planted in the applicable State to
long grain rice and medium grain rice during the 2003 through
2006 crop years, as determined by the Secretary.
(b) PRODUCER ELECTION.—As an alternative to the calculation
method described in subsection (a), the Secretary shall provide
producers on a farm the opportunity to elect to apportion rice
base acres on the farm using the 4-year average of—
(1) the percentages of acreage planted on the farm to long
grain rice and medium grain rice during the 2003 through
2006 crop years;
(2) the percentages of any acreage on the farm that the
producers were prevented from planting to long grain rice and
medium grain rice during the 2003 through 2006 crop years
because of drought, flood, other natural disaster, or other condition beyond the control of the producers, as determined by
the Secretary; and
(3) in the case of a crop year for which a producer on
a farm elected not to plant to long grain and medium grain
rice during the 2003 through 2006 crop years, the percentages
of acreage planted in the applicable State to long grain rice
and medium grain rice, as determined by the Secretary.
(c) LIMITATION.—In carrying out this section, the Secretary
shall use the same total base acres, payment acres, and payment
yields established with respect to rice under sections 1101 and
1102 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 7911, 7912), as in effect on September 30, 2007, subject
to any adjustment under section 1101 of this Act.
SEC. 1109. PERIOD OF EFFECTIVENESS.

7 USC 8719.

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

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

7 USC 8731.

(a) NONRECOURSE LOANS AVAILABLE.—
(1) AVAILABILITY.—For each of the 2008 through 2012 crops
of each loan commodity, the Secretary shall make available

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to producers on a farm nonrecourse marketing assistance loans
for loan commodities produced on the farm.
(2) TERMS AND CONDITIONS.—The marketing assistance
loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under
section 1202 for the loan commodity.
(b) ELIGIBLE PRODUCTION.—The producers on a farm shall be
eligible for a marketing assistance loan under subsection (a) for
any quantity of a loan commodity produced on the farm.
(c) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS.—As a condition of the receipt of a marketing assistance
loan under subsection (a), the producer shall comply with applicable
conservation requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland
protection requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.) during the term of the loan.

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7 USC 8732.

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

(a) 2008 CROP YEAR.—For purposes of the 2008 crop year,
the loan rate for a marketing assistance loan under section 1201
for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton, $0.52
per pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight
for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $6.22 per hundredweight.
(13) In the case of lentils, $11.72 per hundredweight.
(14) In the case of small chickpeas, $7.43 per hundredweight.
(15) In the case of graded wool, $1.00 per pound.
(16) In the case of nongraded wool, $0.40 per pound.
(17) In the case of mohair, $4.20 per pound.
(18) In the case of honey, $0.60 per pound.
(b) 2009 CROP YEAR.—Except as provided in section 1105, for
purposes of the 2009 crop year, the loan rate for a marketing

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

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(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per hundredweight.
(15) In the case of large chickpeas, $11.28 per hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.
(d) SINGLE COUNTY LOAN RATE FOR OTHER OILSEEDS.—The
Secretary shall establish a single loan rate in each county for
each kind of other oilseeds described in subsections (a)(11), (b)(11),
and (c)(11).
7 USC 8733.

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.

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7 USC 8734.

SEC. 1204. REPAYMENT OF LOANS.

(a) GENERAL RULE.—The Secretary shall permit the producers
on a farm to repay a marketing assistance loan under section
1201 for a loan commodity (other than upland cotton, long grain
rice, medium grain rice, extra long staple cotton, and confectionery
and each other kind of sunflower seed (other than oil sunflower
seed)) at a rate that is the lesser of—
(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section
163 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7283));
(2) a rate (as determined by the Secretary) that—
(A) is calculated based on average market prices for
the loan commodity during the preceding 30-day period;
and
(B) will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries;
or
(3) a rate that the Secretary may develop using alternative
methods for calculating a repayment rate for a loan commodity
that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the commodity by the Federal Government;
(C) minimize the cost incurred by the Federal Government in storing the commodity;

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(D) allow the commodity produced in the United States
to be marketed freely and competitively, both domestically
and internationally; and
(E) minimize discrepancies in marketing loan benefits
across State boundaries and across county boundaries.
(b) REPAYMENT RATES FOR UPLAND COTTON, LONG GRAIN RICE,
AND MEDIUM GRAIN RICE.—The Secretary shall permit producers
to repay a marketing assistance loan under section 1201 for upland
cotton, long grain rice, and medium grain rice at a rate that is
the lesser of—
(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section
163 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity,
as determined and adjusted by the Secretary in accordance
with this section.
(c) REPAYMENT RATES FOR EXTRA LONG STAPLE COTTON.—
Repayment of a marketing assistance loan for extra long staple
cotton shall be at the loan rate established for the commodity
under section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)).
(d) PREVAILING WORLD MARKET PRICE.—For purposes of this
section and section 1207, the Secretary shall prescribe by regulation—
(1) a formula to determine the prevailing world market
price for each of upland cotton, long grain rice, and medium
grain rice; and
(2) a mechanism by which the Secretary shall announce
periodically those prevailing world market prices.
(e) ADJUSTMENT OF PREVAILING WORLD MARKET PRICE FOR
UPLAND COTTON, LONG GRAIN RICE, AND MEDIUM GRAIN RICE.—
(1) RICE.—The prevailing world market price for long grain
rice and medium grain rice determined under subsection (d)
shall be adjusted to United States quality and location.
(2) COTTON.—The prevailing world market price for upland
cotton determined under subsection (d)—
(A) shall be adjusted to United States quality and
location, with the adjustment to include—
(i) a reduction equal to any United States Premium
Factor for upland cotton of a quality higher than Middling (M) 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 beginning on the date of enactment of this Act and ending
on July 31, 2013, if the Secretary determines the adjustment is necessary to—
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of upland
cotton by the Federal Government;
(iii) ensure that upland cotton produced in the
United States can be marketed freely and competitively, both domestically and internationally; and

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(iv) ensure an appropriate transition between current-crop and forward-crop price quotations, except
that the Secretary may use forward-crop price
quotations prior to July 31 of a marketing year only
if—
(I) there are insufficient current-crop price
quotations; and
(II) the forward-crop price quotation is the
lowest such quotation available.
(3) GUIDELINES FOR ADDITIONAL ADJUSTMENTS.—In making
adjustments under this subsection, the Secretary shall establish
a mechanism for determining and announcing the adjustments
in order to avoid undue disruption in the United States market.
(f) REPAYMENT RATES FOR CONFECTIONERY AND OTHER KINDS
OF SUNFLOWER SEEDS.—The Secretary shall permit the producers
on a farm to repay a marketing assistance loan under section
1201 for confectionery and each other kind of sunflower seed (other
than oil sunflower seed) at a rate that is the lesser of—
(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section
163 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7283)); or
(2) the repayment rate established for oil sunflower seed.
(g) PAYMENT OF COTTON STORAGE COSTS.—
(1) 2008 THROUGH 2011 CROP YEARS.—Effective for each
of the 2008 through 2011 crop years, the Secretary shall provide
cotton storage payments in the same manner, and at the same
rates as the Secretary provided storage payments for the 2006
crop of cotton, except that the rates shall be reduced by 10
percent.
(2) SUBSEQUENT CROP YEARS.—Beginning with the 2012
crop year, the Secretary shall provide cotton storage payments
in the same manner, and at the same rates as the Secretary
provided storage payments for the 2006 crop of cotton, except
that the rates shall be reduced by 20 percent.
(h) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT RATES.—
(1) ADJUSTMENT AUTHORITY.—In the event of a severe
disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise
applicable under this section for marketing assistance loans
under section 1201 for a loan commodity.
(2) DURATION.—Any adjustment made under paragraph (1)
in the repayment rate for marketing assistance loans for a
loan commodity shall be in effect on a short-term and temporary
basis, as determined by the Secretary.

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7 USC 8735.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.—
(1) IN GENERAL.—Except as provided in subsection (d), the
Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing
assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity
in return for loan deficiency payments under this section.
(2) UNSHORN PELTS, HAY, AND SILAGE.—
(A) MARKETING ASSISTANCE LOANS.—Subject to
subparagraph (B), nongraded wool in the form of unshorn

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pelts and hay and silage derived from a loan commodity
are not eligible for a marketing assistance loan under section 1201.
(B) LOAN DEFICIENCY PAYMENT.—Effective for the 2008
through 2012 crop years, the Secretary may make loan
deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and
silage derived from a loan commodity.
(b) COMPUTATION.—A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying—
(1) the payment rate determined under subsection (c) for
the commodity; by
(2) the quantity of the commodity produced by the eligible
producers, excluding any quantity for which the producers
obtain a marketing assistance loan under section 1201.
(c) PAYMENT RATE.—
(1) IN GENERAL.—In the case of a loan commodity, the
payment rate shall be the amount by which—
(A) the loan rate established under section 1202 for
the loan commodity; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.
(2) UNSHORN PELTS.—In the case of unshorn pelts, the
payment rate shall be the amount by which—
(A) the loan rate established under section 1202 for
ungraded wool; exceeds
(B) the rate at which a marketing assistance loan
for ungraded wool may be repaid under section 1204.
(3) HAY AND SILAGE.—In the case of hay or silage derived
from a loan commodity, the payment rate shall be the amount
by which—
(A) the loan rate established under section 1202 for
the loan commodity from which the hay or silage is derived;
exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.
(d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.—This section
shall not apply with respect to extra long staple cotton.
(e) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION.—The
Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm
with respect to a quantity of a loan commodity or commodity
referred to in subsection (a)(2) using the payment rate in effect
under subsection (c) as of the date the producers request the payment.

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

7 USC 8736.

(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

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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 harvesting of wheat, barley, or oats; and
(ii) the payment yield in effect for the calculation
of direct payments under subtitle A with respect to
that loan commodity on the farm or, in the case of
a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary in a manner consistent with section 1102 of
the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 7912).
(2) GRAZING OF TRITICALE ACREAGE.—The amount of a payment made under this section to a producer on a farm described
in subsection (a)(2) shall be equal to the amount determined
by multiplying—
(A) the loan deficiency payment rate determined under
section 1205(c) in effect for wheat, as of the date of the
agreement, for the county in which the farm is located;
by
(B) the payment quantity determined by multiplying—
(i) the quantity of the grazed acreage on the farm
with respect to which the producer elects to forgo harvesting of triticale; and
(ii) the payment yield in effect for the calculation
of direct payments under subtitle A with respect to
wheat on the farm or, in the case of a farm without
a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with
section 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912).
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.—
(1) TIME AND MANNER.—A payment under this section shall
be made at the same time and in the same manner as loan
deficiency payments are made under section 1205.
(2) AVAILABILITY.—
(A) IN GENERAL.—The Secretary shall establish an
availability period for the payments authorized by this
section.
(B) CERTAIN COMMODITIES.—In the case of wheat,
barley, and oats, the availability period shall be consistent

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

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

(a) SPECIAL IMPORT QUOTA.—
(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In this subsection, the term ‘‘special import quota’’ means a quantity of
imports that is not subject to the over-quota tariff rate of
a tariff-rate quota.
(2) ESTABLISHMENT.—
(A) IN GENERAL.—The President shall carry out an
import quota program during the period beginning on the
date of enactment of this Act through July 31, 2013, as
provided in this subsection.
(B) PROGRAM REQUIREMENTS.—Whenever the Secretary
determines and announces that for any consecutive 4-week
period, the Friday through Thursday average price
quotation for the lowest-priced United States growth, as
quoted for Middling (M) 13⁄32-inch cotton, delivered to a
definable and significant international market, as determined by the Secretary, exceeds the prevailing world
market price, there shall immediately be in effect a special
import quota.
(3) QUANTITY.—The quota shall be equal to 1 week’s
consumption of cotton by domestic mills at the seasonally
adjusted average rate of the most recent 3 months for which
data are available.
(4) APPLICATION.—The quota shall apply to upland cotton
purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (2) and entered into
the United States not later than 180 days after that date.
(5) OVERLAP.—A special quota period may be established
that overlaps any existing quota period if required by paragraph
(2), except that a special quota period may not be established
under this subsection if a quota period has been established
under subsection (b).
(6) PREFERENTIAL TARIFF TREATMENT.—The quantity under
a special import quota shall be considered to be an in-quota
quantity for purposes of—
(A) section 213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act
(19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and

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7 USC 8737.

President.
Time period.

Deadlines.

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122 STAT. 1690

(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(7) LIMITATION.—The quantity of cotton entered into the
United States during any marketing year under the special
import quota established under this subsection may not exceed
the equivalent of 10 week’s consumption of upland cotton by
domestic mills at the seasonally adjusted average rate of the
3 months immediately preceding the first special import quota
established in any marketing year.
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND COTTON.—
(1) DEFINITIONS.—In this subsection:
(A) SUPPLY.—The term ‘‘supply’’ means, using the
latest official data of the Bureau of the Census, the Department of Agriculture, and the Department of the Treasury—
(i) the carry-over of upland cotton at the beginning
of the marketing year (adjusted to 480-pound bales)
in which the quota is established;
(ii) production of the current crop; and
(iii) imports to the latest date available during
the marketing year.
(B) DEMAND.—The term ‘‘demand’’ means—
(i) the average seasonally adjusted annual rate
of domestic mill consumption of cotton during the most
recent 3 months for which data are available; and
(ii) the larger of—
(I) average exports of upland cotton during
the preceding 6 marketing years; or
(II) cumulative exports of upland cotton plus
outstanding export sales for the marketing year
in which the quota is established.
(C) LIMITED GLOBAL IMPORT QUOTA.—The term ‘‘limited
global import quota’’ means a quantity of imports that
is not subject to the over-quota tariff rate of a tariff-rate
quota.
(2) PROGRAM.—The President shall carry out an import
quota program that provides that whenever the Secretary determines and announces that the average price of the base quality
of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of
the average price of the quality of cotton in the markets for
the preceding 36 months, notwithstanding any other provision
of law, there shall immediately be in effect a limited global
import quota subject to the following conditions:
(A) QUANTITY.—The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the most
recent 3 months for which data are available or as estimated by the Secretary.
(B) QUANTITY IF PRIOR QUOTA.—If a quota has been
established under this subsection during the preceding 12
months, the quantity of the quota next established under
this subsection shall be the smaller of 21 days of domestic
mill consumption calculated under subparagraph (A) or
the quantity required to increase the supply to 130 percent
of the demand.

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President.

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(C) PREFERENTIAL TARIFF TREATMENT.—The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of—
(i) section 213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference
Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19
U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(D) QUOTA ENTRY PERIOD.—When a quota is established under this subsection, cotton may be entered under
the quota during the 90-day period beginning on the date
the quota is established by the Secretary.
(3) NO OVERLAP.—Notwithstanding paragraph (2), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(a).
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS OF UPLAND
COTTON.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary
shall, on a monthly basis, provide economic adjustment assistance to domestic users of upland cotton in the form of payments
for all documented use of that upland cotton during the previous
monthly period regardless of the origin of the upland cotton.
(2) VALUE OF ASSISTANCE.—
(A) BEGINNING PERIOD.—During the period beginning
on August 1, 2008, and ending on July 31, 2012, the value
of the assistance provided under paragraph (1) shall be
4 cents per pound.
(B) SUBSEQUENT PERIOD.—Effective beginning on
August 1, 2012, the value of the assistance provided under
paragraph (1) shall be 3 cents per pound.
(3) ALLOWABLE PURPOSES.—Economic adjustment assistance under this subsection shall be made available only to
domestic users of upland cotton that certify that the assistance
shall be used only to acquire, construct, install, modernize,
develop, convert, or expand land, plant, buildings, equipment,
facilities, or machinery.
(4) REVIEW OR AUDIT.—The Secretary may conduct such
review or audit of the records of a domestic user under this
subsection as the Secretary determines necessary to carry out
this subsection.
(5) IMPROPER USE OF ASSISTANCE.—If the Secretary determines, after a review or audit of the records of the domestic
user, that economic adjustment assistance under this subsection
was not used for the purposes specified in paragraph (3), the
domestic user shall be—
(A) liable to repay the assistance to the Secretary,
plus interest, as determined by the Secretary; and
(B) ineligible to receive assistance under this subsection for a period of 1 year following the determination
of the Secretary.

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122 STAT. 1692

PUBLIC LAW 110–246—JUNE 18, 2008

7 USC 8738.

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

Effective date.
Termination
date.

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

7 USC 8739.

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

(a) HIGH MOISTURE FEED GRAINS.—
(1) DEFINITION OF HIGH MOISTURE STATE.—In this subsection, the term ‘‘high moisture state’’ means corn or grain
sorghum having a moisture content in excess of Commodity
Credit Corporation standards for marketing assistance loans
made by the Secretary under section 1201.
(2) RECOURSE LOANS AVAILABLE.—For each of the 2008
through 2012 crops of corn and grain sorghum, the Secretary
shall make available recourse loans, as determined by the
Secretary, to producers on a farm that—
(A) normally harvest all or a portion of their crop
of corn or grain sorghum in a high moisture state;
(B) present—
(i) certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse,

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feedlot, feed mill, distillery, or other similar entity
approved by the Secretary, pursuant to regulations
issued by the Secretary; or
(ii) field or other physical measurements of the
standing or stored crop in regions of the United States,
as determined by the Secretary, that do not have certified commercial scales from which certified scale
tickets may be obtained within reasonable proximity
of harvest operation;
(C) certify that they were the owners of the feed grain
at the time of delivery to, and that the quantity to be
placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill,
or commercial or on-farm high-moisture storage facility,
or to a facility maintained by the users of corn and grain
sorghum in a high moisture state; and
(D) comply with deadlines established by the Secretary
for harvesting the corn or grain sorghum and submit
applications for loans under this subsection within deadlines established by the Secretary.
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—A loan under
this subsection shall be made on a quantity of corn or grain
sorghum of the same crop acquired by the producer equivalent
to a quantity determined by multiplying—
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the producer’s farm; by
(B) the lower of the farm program payment yield used
to make counter-cyclical payments under subtitle A or the
actual yield on a field, as determined by the Secretary,
that is similar to the field from which the corn or grain
sorghum was obtained.
(b) RECOURSE LOANS AVAILABLE FOR SEED COTTON.—For each
of the 2008 through 2012 crops of upland cotton and extra long
staple cotton, the Secretary shall make available recourse seed
cotton loans, as determined by the Secretary, on any production.
(c) REPAYMENT RATES.—Repayment of a recourse loan made
under this section shall be at the loan rate established for the
commodity by the Secretary, plus interest (determined in accordance
with section 163 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7283)).

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SEC. 1210. ADJUSTMENTS OF LOANS.

Certification.

7 USC 8740.

(a) ADJUSTMENT AUTHORITY.—Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for
any loan commodity (other than cotton) for differences in grade,
type, quality, location, and other factors.
(b) MANNER OF ADJUSTMENT.—The adjustments under subsection (a) shall, to the maximum extent practicable, be made
in such a manner that the average loan level for the commodity
will, on the basis of the anticipated incidence of the factors, be
equal to the level of support determined in accordance with this
subtitle and subtitles B through E.
(c) ADJUSTMENT ON COUNTY BASIS.—
(1) IN GENERAL.—The Secretary may establish loan rates
for a crop for producers in individual counties in a manner
that results in the lowest loan rate being 95 percent of the

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122 STAT. 1694

national average loan rate, if those loan rates do not result
in an increase in outlays.
(2) PROHIBITION.—Adjustments under this subsection shall
not result in an increase in the national average loan rate
for any year.
(d) ADJUSTMENT IN LOAN RATE FOR COTTON.—
(1) IN GENERAL.—The Secretary may make appropriate
adjustments in the loan rate for cotton for differences in quality
factors.
(2) REVISIONS TO QUALITY ADJUSTMENTS FOR UPLAND
COTTON.—
(A) IN GENERAL.—Not later than 180 days after the
date of enactment of this Act, the Secretary shall implement revisions in the administration of the marketing
assistance loan program for upland cotton to more
accurately and efficiently reflect market values for upland
cotton.
(B) MANDATORY REVISIONS.—Revisions under subparagraph (A) shall include—
(i) the elimination of warehouse location differentials;
(ii) the establishment of differentials for the various quality factors and staple lengths of cotton based
on a 3-year, weighted moving average of the weighted
designated spot market regions, as determined by
regional production;
(iii) the elimination of any artificial split in the
premium or discount between upland cotton with a
32 or 33 staple length due to micronaire; and
(iv) a mechanism to ensure that no premium or
discount is established that exceeds the premium or
discount associated with a leaf grade that is 1 better
than the applicable color grade.
(C) DISCRETIONARY REVISIONS.—Revisions under
subparagraph (A) may include—
(i) the use of non-spot market price data, in addition to spot market price data, that would enhance
the accuracy of the price information used in determining quality adjustments under this subsection;
(ii) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33
or above due to micronaire with the goal of eliminating
any unnecessary artificial splits in the calculations
of the premiums or discounts; and
(iii) such other adjustments as the Secretary determines appropriate, after consultations conducted in
accordance with paragraph (3).
(3) CONSULTATION WITH PRIVATE SECTOR.—
(A) PRIOR TO REVISION.—In making adjustments to
the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall
consult with representatives of the United States cotton
industry.
(B) INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE
ACT.—The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to consultations under this subsection.

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(4) REVIEW OF ADJUSTMENTS.—The Secretary may review
the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further
revisions to the administration of the loan program for upland
cotton, by—
(A) revoking or revising any actions taken under paragraph (2)(B); or
(B) revoking or revising any actions taken or authorized to be taken under paragraph (2)(C).
(e) RICE.—The Secretary shall not make adjustments in the
loan rates for long grain rice and medium grain rice, except for
differences in grade and quality (including milling yields).

Subtitle C—Peanuts

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SEC. 1301. DEFINITIONS.

7 USC 8751.

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 ‘‘countercyclical 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

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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.

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7 USC 8752.

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

(a) ADJUSTMENT OF BASE ACREAGE FOR PEANUTS.—
(1) IN GENERAL.—The Secretary shall provide for an adjustment, as appropriate, in the base acres for peanuts for a farm
whenever any of the following circumstances occur:
(A) A conservation reserve contract entered into under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) with respect to the farm expires or is voluntarily
terminated, or was terminated or expired during the period
beginning on October 1, 2007, and ending on the date
of enactment of this Act.
(B) Cropland is released from coverage under a conservation reserve contract by the Secretary, or was released
during the period beginning on October 1, 2007, and ending
on the date of enactment of this Act.
(C) The producer has eligible pulse crop acreage, which
shall be determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(D) The producer has eligible oilseed acreage as the
result of the Secretary designating additional oilseeds,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(2) SPECIAL CONSERVATION RESERVE ACREAGE PAYMENT
RULES.—For the crop year in which a base acres for peanuts
adjustment under subparagraph (A) or (B) of paragraph (1)
is first made, the owner of the farm shall elect to receive
either direct payments and counter-cyclical payments with
respect to the acreage added to the farm under this subsection
or a prorated payment under the conservation reserve contract,
but not both.
(b) PREVENTION OF EXCESS BASE ACRES FOR PEANUTS.—
(1) REQUIRED REDUCTION.—If the sum of the base acres
for peanuts for a farm, together with the acreage described
in paragraph (2), exceeds the actual cropland acreage of the

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farm, the Secretary shall reduce the base acres for peanuts
for the farm or the base acres for 1 or more covered commodities
for the farm so that the sum of the base acres for peanuts
and acreage described in paragraph (2) does not exceed the
actual cropland acreage of the farm.
(2) OTHER ACREAGE.—For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for the farm for a covered commodity.
(B) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program under
chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a Federal
conservation program for which payments are made in
exchange for not producing an agricultural commodity on
the acreage.
(D) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed acreage
under section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional oilseeds, any
eligible oilseed acreage, which shall be determined in the
same manner as eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 7911(a)(2)).
(3) SELECTION OF ACRES.—The Secretary shall give the
owner of the farm the opportunity to select the base acres
for peanuts or the base acres for covered commodities against
which the reduction required by paragraph (1) will be made.
(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE.—In
applying paragraph (1), the Secretary shall make an exception
in the case of double cropping, as determined by the Secretary.
(5) COORDINATED APPLICATION OF REQUIREMENTS.—The
Secretary shall take into account section 1101(b) when applying
the requirements of this subsection.
(c) REDUCTION IN BASE ACRES.—
(1) REDUCTION AT OPTION OF OWNER.—
(A) IN GENERAL.—The owner of a farm may reduce,
at any time, the base acres for peanuts for the farm.
(B) EFFECT OF REDUCTION.—A reduction under
subparagraph (A) shall be permanent and made in a
manner prescribed by the Secretary.
(2) REQUIRED ACTION BY SECRETARY.—
(A) IN GENERAL.—The Secretary shall proportionately
reduce base acres on a farm for peanuts for land that
has been subdivided and developed for multiple residential
units or other nonfarming uses if the size of the tracts
and the density of the subdivision is such that the land
is unlikely to return to the previous agricultural use, unless
the producers on the farm demonstrate that the land—
(i) remains devoted to commercial agricultural
production; or
(ii) is likely to be returned to the previous agricultural use.
(B) REQUIREMENT.—The Secretary shall establish
procedures to identify land described in subparagraph (A).

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(3) REVIEW AND REPORT.—Each year, to ensure, to the
maximum extent practicable, that payments are received only
by producers, the Secretary shall submit to Congress a report
that describes the results of the actions taken under paragraph
(2).
(d) TREATMENT OF FARMS WITH LIMITED BASE ACRES.—
(1) PROHIBITION ON PAYMENTS.—Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive direct payments,
counter-cyclical payments, or average crop revenue election payments if the sum of the base acres of the farm is 10 acres
or less, as determined by the Secretary.
(2) EXCEPTIONS.—Paragraph (1) shall not apply to a farm
owned by—
(A) a socially disadvantaged farmer or rancher (as
defined in section 355(e) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)); or
(B) a limited resource farmer or rancher, as defined
by the Secretary.
(3) DATA COLLECTION AND PUBLICATION.—The Secretary
shall—
(A) collect and publish segregated data and survey
information about the farm profiles, utilization of land,
and crop production; and
(B) perform an evaluation on the supply and price
of fruits and vegetables based on the effects of suspension
of base acres under this section.

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7 USC 8753.

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

(a) PAYMENT REQUIRED.—For each of the 2008 through 2012
crop years for peanuts, the Secretary shall make direct payments
to the producers on a farm for which a payment yield and base
acres for peanuts are established.
(b) PAYMENT RATE.—Except as provided in section 1105, the
payment rate used to make direct payments with respect to peanuts
for a crop year shall be equal to $36 per ton.
(c) PAYMENT AMOUNT.—The amount of the direct payment to
be paid to the producers on a farm for peanuts for a crop year
shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(d) TIME FOR PAYMENT.—
(1) IN GENERAL.—Except as provided in paragraph (2), in
the case of each of the 2008 through 2012 crop years, the
Secretary may not make direct payments under this section
before October 1 of the calendar year in which the crop is
harvested.
(2) ADVANCE PAYMENTS.—
(A) OPTION.—
(i) IN GENERAL.—At the option of the producers
on a farm, the Secretary shall pay in advance up
to 22 percent of the direct payment for peanuts for
any of the 2008 through 2011 crop years to the producers on a farm.
(ii) 2008 CROP YEAR.—If the producers on a farm
elect to receive advance direct payments under clause

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(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.

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

7 USC 8754.

(a) PAYMENT REQUIRED.—Except as provided in section 1105,
for each of the 2008 through 2012 crop years for peanuts, the
Secretary shall make counter-cyclical payments to producers on
farms for which payment yields and base acres for peanuts are
established if the Secretary determines that the effective price
for peanuts is less than the target price for peanuts.
(b) EFFECTIVE PRICE.—For purposes of subsection (a), the effective price for peanuts is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price for peanuts
received by producers during the 12-month marketing year
for peanuts, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for peanuts in effect for the applicable
period under this subtitle.
(2) The payment rate in effect for peanuts under section
1303 for the purpose of making direct payments.
(c) TARGET PRICE.—For purposes of subsection (a), the target
price for peanuts shall be equal to $495 per ton.
(d) PAYMENT RATE.—The payment rate used to make countercyclical 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

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Deadline.

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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 countercyclical 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 countercyclical 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 countercyclical payment projected to be made for the crop.
(B) ELECTION.—
(i) IN GENERAL.—The Secretary shall allow producers on a farm to make an election to receive partial
payments under subparagraph (A) at any time but
not later than 60 days prior to the end of the marketing
year for the crop.
(ii) DATE OF ISSUANCE.—The Secretary shall issue
the partial payment after the date of an announcement
by the Secretary but not later than 30 days prior
to the end of the marketing year.
(3) TIME FOR PARTIAL PAYMENTS.—When the Secretary
makes partial payments for any of the 2008 through 2010
crop years—
(A) the first partial payment shall be made after
completion of the first 180 days of the marketing year
for that crop; and
(B) the final partial payment shall be made beginning
October 1, or as soon as practicable thereafter, after the
end of the applicable marketing year for that crop.
(4) AMOUNT OF PARTIAL PAYMENTS.—
(A) FIRST PARTIAL PAYMENT.—For each of the 2008
through 2010 crop years, the first partial payment under
paragraph (3) to the producers on a farm may not exceed
40 percent of the projected counter-cyclical payment for
the crop year, as determined by the Secretary.
(B) FINAL PAYMENT.—The final payment for a crop
year shall be equal to the difference between—
(i) the actual counter-cyclical payment to be made
to the producers for that crop year; and
(ii) the amount of the partial payment made to
the producers under subparagraph (A).
(5) REPAYMENT.—The producers on a farm that receive
a partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total
of the partial payments exceed the actual counter-cyclical payment to be made for that crop year.

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

7 USC 8755.

(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.—
(1) REQUIREMENTS.—Before the producers on a farm may
receive direct payments or counter-cyclical payments under this
subtitle, or average crop revenue election payments under section 1105, with respect to the farm, the producers shall agree,
during the crop year for which the payments are made and
in exchange for the payments—
(A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security
Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility requirements
of section 1306;
(D) to use the land on the farm, in a quantity equal
to the attributable base acres for peanuts and any base
acres for the farm under subtitle A, for an agricultural
or conserving use, and not for a nonagricultural commercial, industrial, or residential use, as determined by the
Secretary; and
(E) to effectively control noxious weeds and otherwise
maintain the land in accordance with sound agricultural
practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any
portion of the land referred to in subparagraph (D).
(2) COMPLIANCE.—The Secretary may issue such rules as
the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).
(3) MODIFICATION.—At the request of the transferee or
owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives
of this subsection, as determined by the Secretary.
(b) TRANSFER OR CHANGE OF INTEREST IN FARM.—
(1) TERMINATION.—
(A) IN GENERAL.—Except as provided in paragraph (2),
a transfer of (or change in) the interest of the producers
on a farm in the base acres for peanuts for which direct
payments or counter-cyclical payments are made, or on
which average crop revenue election payments are based,
shall result in the termination of the direct payments,
counter-cyclical payments, or average crop revenue election
payments to the extent the payments are made or based
on the base acres, unless the transferee or owner of the
acreage agrees to assume all obligations under subsection
(a).
(B) EFFECTIVE DATE.—The termination shall take effect
on the date determined by the Secretary.
(2) EXCEPTION.—If a producer entitled to a direct payment,
counter-cyclical payment, or average crop revenue election payment dies, becomes incompetent, or is otherwise unable to
receive the payment, the Secretary shall make the payment,
in accordance with rules issued by the Secretary.
(c) ACREAGE REPORTS.—

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(1) IN GENERAL.—As a condition on the receipt of any
benefits under this subtitle, the Secretary shall require producers on a farm to submit to the Secretary annual acreage
reports with respect to all cropland on the farm.
(2) PENALTIES.—No penalty with respect to benefits under
this subtitle shall be assessed against the producers on a farm
for an inaccurate acreage report unless the producers on the
farm knowingly and willfully falsified the acreage report.
(d) TENANTS AND SHARECROPPERS.—In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect
the interests of tenants and sharecroppers.
(e) SHARING OF PAYMENTS.—The Secretary shall provide for
the sharing of direct payments, counter-cyclical payments, or average crop revenue election payments under section 1105 among
the producers on a farm on a fair and equitable basis.

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7 USC 8756.

SEC. 1306. PLANTING FLEXIBILITY.

(a) PERMITTED CROPS.—Subject to subsection (b), any commodity or crop may be planted on the base acres for peanuts
on a farm.
(b) LIMITATIONS REGARDING CERTAIN COMMODITIES.—
(1) GENERAL LIMITATION.—The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres for peanuts unless the commodity, if planted, is
destroyed before harvest.
(2) TREATMENT OF TREES AND OTHER PERENNIALS.—The
planting of an agricultural commodity specified in paragraph
(3) that is produced on a tree or other perennial plant shall
be prohibited on base acres for peanuts.
(3) COVERED AGRICULTURAL COMMODITIES.—Paragraphs (1)
and (2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse
crops).
(C) Wild rice.
(c) EXCEPTIONS.—Paragraphs (1) and (2) of subsection (b) shall
not limit the planting of an agricultural commodity specified in
paragraph (3) of that subsection—
(1) in any region in which there is a history of doublecropping of peanuts with agricultural commodities specified
in subsection (b)(3), as determined by the Secretary, in which
case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on the base acres for peanuts, except that direct payments
and counter-cyclical payments shall be reduced by an acre
for each acre planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that—
(A) the quantity planted may not exceed the average
annual planting history of such agricultural commodity
by the producers on the farm in the 1991 through 1995
or 1998 through 2001 crop years (excluding any crop year
in which no plantings were made), as determined by the
Secretary; and

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

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

7 USC 8757.

(a) NONRECOURSE LOANS AVAILABLE.—
(1) AVAILABILITY.—For each of the 2008 through 2012 crops
of peanuts, the Secretary shall make available to producers
on a farm nonrecourse marketing assistance loans for peanuts
produced on the farm.
(2) TERMS AND CONDITIONS.—The loans shall be made
under terms and conditions that are prescribed by the Secretary
and at the loan rate established under subsection (b).
(3) ELIGIBLE PRODUCTION.—The producers on a farm shall
be eligible for a marketing assistance loan under this subsection
for any quantity of peanuts produced on the farm.
(4) OPTIONS FOR OBTAINING LOAN.—A marketing assistance
loan under this subsection, and loan deficiency payments under
subsection (e), may be obtained at the option of the producers
on a farm through—
(A) a designated marketing association or marketing
cooperative of producers that is approved by the Secretary;
or
(B) the Farm Service Agency.
(5) STORAGE OF LOAN PEANUTS.—As a condition on the
Secretary’s approval of an individual or entity to provide storage
for peanuts for which a marketing assistance loan is made
under this section, the individual or entity shall agree—
(A) to provide such storage on a nondiscriminatory
basis; and
(B) to comply with such additional requirements as
the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.
(6) STORAGE, HANDLING, AND ASSOCIATED COSTS.—
(A) IN GENERAL.—Beginning with the 2008 crop of
peanuts, to ensure proper storage of peanuts for which
a loan is made under this section, the Secretary shall
pay handling and other associated costs (other than storage
costs) incurred at the time at which the peanuts are placed
under loan, as determined by the Secretary.
(B) REDEMPTION AND FORFEITURE.—The Secretary
shall—
(i) require the repayment of handling and other
associated costs paid under subparagraph (A) for all
peanuts pledged as collateral for a loan that is
redeemed under this section; and
(ii) pay storage, handling, and other associated
costs for all peanuts pledged as collateral that are
forfeited under this section.
(7) MARKETING.—A marketing association or cooperative
may market peanuts for which a loan is made under this
section in any manner that conforms to consumer needs,
including the separation of peanuts by type and quality.

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(b) LOAN RATE.—Except as provided in section 1105, the loan
rate for a marketing assistance loan for peanuts under subsection
(a) shall be equal to $355 per ton.
(c) TERM OF LOAN.—
(1) IN GENERAL.—A marketing assistance loan for peanuts
under subsection (a) shall have a term of 9 months beginning
on the first day of the first month after the month in which
the loan is made.
(2) EXTENSIONS PROHIBITED.—The Secretary may not
extend the term of a marketing assistance loan for peanuts
under subsection (a).
(d) REPAYMENT RATE.—
(1) IN GENERAL.—The Secretary shall permit producers on
a farm to repay a marketing assistance loan for peanuts under
subsection (a) at a rate that is the lesser of—
(A) the loan rate established for peanuts under subsection (b), plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7283)); or
(B) a rate that the Secretary determines will—
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of peanuts
by the Federal Government;
(iii) minimize the cost incurred by the Federal
Government in storing peanuts; and
(iv) allow peanuts produced in the United States
to be marketed freely and competitively, both domestically and internationally.
(2) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT
RATES.—
(A) ADJUSTMENT AUTHORITY.—In the event of a severe
disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate
otherwise applicable under this subsection for marketing
assistance loans for peanuts under subsection (a).
(B) DURATION.—An adjustment made under subparagraph (A) in the repayment rate for marketing assistance
loans for peanuts shall be in effect on a short-term and
temporary basis, as determined by the Secretary.
(e) LOAN DEFICIENCY PAYMENTS.—
(1) AVAILABILITY.—The Secretary may make loan deficiency
payments available to producers on a farm that, although
eligible to obtain a marketing assistance loan for peanuts under
subsection (a), agree to forgo obtaining the loan for the peanuts
in return for loan deficiency payments under this subsection.
(2) COMPUTATION.—A loan deficiency payment under this
subsection shall be computed by multiplying—
(A) the payment rate determined under paragraph (3)
for peanuts; by
(B) the quantity of the peanuts produced by the producers, excluding any quantity for which the producers
obtain a marketing assistance loan under subsection (a).
(3) PAYMENT RATE.—For purposes of this subsection, the
payment rate shall be the amount by which—
(A) the loan rate established under subsection (b);
exceeds

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(B) the rate at which a loan may be repaid under
subsection (d).
(4) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION.—
The Secretary shall determine the amount of the loan deficiency
payment to be made under this subsection to the producers
on a farm with respect to a quantity of peanuts using the
payment rate in effect under paragraph (3) as of the date
the producers request the payment.
(f) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS.—As a condition of the receipt of a marketing assistance
loan under subsection (a), the producer shall comply with applicable
conservation requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland
protection requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.) during the term of the loan.
(g) REIMBURSABLE AGREEMENTS AND PAYMENT OF ADMINISTRATIVE EXPENSES.—The Secretary may implement any reimbursable
agreements or provide for the payment of administrative expenses
under this subtitle only in a manner that is consistent with such
activities in regard to other commodities.
SEC. 1308. ADJUSTMENTS OF LOANS.

7 USC 8758.

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

Subtitle D—Sugar
SEC. 1401. SUGAR PROGRAM.

Loans.

(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:

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‘‘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;

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‘‘(4) 18.75 cents per pound for raw cane sugar for the
2011 crop year; and
‘‘(5) 18.75 cents per pound for raw cane sugar for the
2012 crop year.
‘‘(b) SUGAR BEETS.—The Secretary shall make loans available
to processors of domestically grown sugar beets at a rate equal
to—
‘‘(1) 22.9 cents per pound for refined beet sugar for the
2008 crop year; and
‘‘(2) a rate that is equal to 128.5 percent of the loan rate
per pound of raw cane sugar for the applicable crop year under
subsection (a) for each of the 2009 through 2012 crop years.
‘‘(c) TERM OF LOANS.—
‘‘(1) IN GENERAL.—A loan under this section during any
fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of—
‘‘(A) the end of the 9-month period beginning on the
first day of the first month after the month in which
the loan is made; or
‘‘(B) the end of the fiscal year in which the loan is
made.
‘‘(2) SUPPLEMENTAL LOANS.—In the case of a loan made
under this section in the last 3 months of a fiscal year, the
processor may repledge the sugar as collateral for a second
loan in the subsequent fiscal year, except that the second
loan shall—
‘‘(A) be made at the loan rate in effect at the time
the first loan was made; and
‘‘(B) mature in 9 months less the quantity of time
that the first loan was in effect.
‘‘(d) LOAN TYPE; PROCESSOR ASSURANCES.—
‘‘(1) NONRECOURSE LOANS.—The Secretary shall carry out
this section through the use of nonrecourse loans.
‘‘(2) PROCESSOR ASSURANCES.—
‘‘(A) IN GENERAL.—The Secretary shall obtain from
each processor that receives a loan under this section such
assurances as the Secretary considers adequate to ensure
that the processor will provide payments to producers that
are proportional to the value of the loan received by the
processor for the sugar beets and sugarcane delivered by
producers to the processor.
‘‘(B) MINIMUM PAYMENTS.—
‘‘(i) IN GENERAL.—Subject to clause (ii), the Secretary may establish appropriate minimum payments
for purposes of this paragraph.
‘‘(ii) LIMITATION.—In the case of sugar beets, the
minimum payment established under clause (i) shall
not exceed the rate of payment provided for under
the applicable contract between a sugar beet producer
and a sugar beet processor.
‘‘(3) ADMINISTRATION.—The Secretary may not impose or
enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on May 13, 2002,
that has the effect of preventing a processor from electing
to forfeit the loan collateral (of an acceptable grade and quality)
on the maturity of the loan.
‘‘(e) LOANS FOR IN-PROCESS SUGAR.—

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122 STAT. 1707

‘‘(1) DEFINITION OF IN-PROCESS SUGARS AND SYRUPS.—In
this subsection, the term ‘in-process sugars and syrups’ does
not include raw sugar, liquid sugar, invert sugar, invert syrup,
or other finished product that is otherwise eligible for a loan
under subsection (a) or (b).
‘‘(2) AVAILABILITY.—The Secretary shall make nonrecourse
loans available to processors of a crop of domestically grown
sugarcane and sugar beets for in-process sugars and syrups
derived from the crop.
‘‘(3) LOAN RATE.—The loan rate shall be equal to 80 percent
of the loan rate applicable to raw cane sugar or refined beet
sugar, as determined by the Secretary on the basis of the
source material for the in-process sugars and syrups.
‘‘(4) FURTHER PROCESSING ON FORFEITURE.—
‘‘(A) IN GENERAL.—As a condition of the forfeiture of
in-process sugars and syrups serving as collateral for a
loan under paragraph (2), the processor shall, within such
reasonable time period as the Secretary may prescribe
and at no cost to the Commodity Credit Corporation, convert the in-process sugars and syrups into raw cane sugar
or refined beet sugar of acceptable grade and quality for
sugars eligible for loans under subsection (a) or (b).
‘‘(B) TRANSFER TO CORPORATION.—Once the in-process
sugars and syrups are fully processed into raw cane sugar
or refined beet sugar, the processor shall transfer the sugar
to the Commodity Credit Corporation.
‘‘(C) PAYMENT TO PROCESSOR.—On transfer of the
sugar, the Secretary shall make a payment to the processor
in an amount equal to the amount obtained by multiplying—
‘‘(i) the difference between—
‘‘(I) the loan rate for raw cane sugar or refined
beet sugar, as appropriate; and
‘‘(II) the loan rate the processor received under
paragraph (3); by
‘‘(ii) the quantity of sugar transferred to the Secretary.
‘‘(5) LOAN CONVERSION.—If the processor does not forfeit
the collateral as described in paragraph (4), but instead further
processes the in-process sugars and syrups into raw cane sugar
or refined beet sugar and repays the loan on the in-process
sugars and syrups, the processor may obtain a loan under
subsection (a) or (b) for the raw cane sugar or refined beet
sugar, as appropriate.
‘‘(6) TERM OF LOAN.—The term of a loan made under this
subsection for a quantity of in-process sugars and syrups, when
combined with the term of a loan made with respect to the
raw cane sugar or refined beet sugar derived from the inprocess sugars and syrups, may not exceed 9 months, consistent
with subsection (c).
‘‘(f) AVOIDING FORFEITURES; CORPORATION INVENTORY DISPOSITION.—
‘‘(1) IN GENERAL.—Subject to subsection (d)(3), to the maximum extent practicable, the Secretary shall operate the program established under this section at no cost to the Federal
Government by avoiding the forfeiture of sugar to the Commodity Credit Corporation.

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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 bioenergy feedstock.
‘‘(C) ADDITIONAL AUTHORITY.—The authority provided
under this paragraph is in addition to any authority of
the Commodity Credit Corporation under any other law.
‘‘(g) INFORMATION REPORTING.—
‘‘(1) DUTY OF PROCESSORS AND REFINERS TO REPORT.—A
sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such
information as the Secretary may require to administer sugar
programs, including the quantity of purchases of sugarcane,
sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.
‘‘(2) DUTY OF PRODUCERS TO REPORT.—
‘‘(A) PROPORTIONATE SHARE STATES.—As a condition
of a loan made to a processor for the benefit of a producer,
the Secretary shall require each producer of sugarcane
located in a State (other than the Commonwealth of Puerto
Rico) in which there are in excess of 250 producers of
sugarcane to report, in the manner prescribed by the Secretary, the sugarcane yields and acres planted to sugarcane
of the producer.
‘‘(B) OTHER STATES.—The Secretary may require each
producer of sugarcane or sugar beets not covered by
subparagraph (A) to report, in a manner prescribed by
the Secretary, the yields of, and acres planted to, sugarcane
or sugar beets, respectively, of the producer.
‘‘(3) DUTY OF IMPORTERS TO REPORT.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary shall require an importer of sugars,
syrups, or molasses to be used for human consumption
or to be used for the extraction of sugar for human
consumption to report, in the manner prescribed by the
Secretary, the quantities of the products imported by the
importer and the sugar content or equivalent of the products.
‘‘(B) TARIFF-RATE QUOTAS.—Subparagraph (A) shall not
apply to sugars, syrups, or molasses that are within the
quantities of tariff-rate quotas that are subject to the lower
rate of duties.
‘‘(4) COLLECTION OF INFORMATION ON MEXICO.—
‘‘(A) COLLECTION.—The Secretary shall collect—

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‘‘(i) information on the production, consumption,
stocks, and trade of sugar in Mexico, including United
States exports of sugar to Mexico; and
‘‘(ii) publicly available information on Mexican
production, consumption, and trade of high fructose
corn syrups.
‘‘(B) PUBLICATION.—The data collected under subparagraph (A) shall be published in each edition of the World
Agricultural Supply and Demand Estimates.
‘‘(5) PENALTY.—Any person willfully failing or refusing to
furnish the information required to be reported by paragraph
(1), (2), or (3), or furnishing willfully false information, shall
be subject to a civil penalty of not more than $10,000 for
each such violation.
‘‘(6) MONTHLY REPORTS.—Taking into consideration the
information received under this subsection, the Secretary shall
publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar.
‘‘(h) SUBSTITUTION OF REFINED SUGAR.—For purposes of Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule
of the United States and the reexport programs and polyhydric
alcohol program administered by the Secretary, all refined sugars
(whether derived from sugar beets or sugarcane) produced by cane
sugar refineries and beet sugar processors shall be fully substitutable for the export of sugar and sugar-containing products under
those programs.
‘‘(i) EFFECTIVE PERIOD.—This section shall be effective only
for the 2008 through 2012 crops of sugar beets and sugarcane.’’.
(b) TRANSITION.—The Secretary shall make loans for raw cane
sugar and refined beet sugar available for the 2007 crop year
on the terms and conditions provided in section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272),
as in effect on the day before the date of enactment of this Act.
SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL
SUGAR ORGANIZATION.

Publication.

7 USC 7272 note.

Deadline.
7 USC 3602 note.

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.

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SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

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

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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 marketed during the crop year for which a loan is made under
the loan program described in that subparagraph.’’.
(b) FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.—Section
359b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb)
is amended to read as follows:
‘‘SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

‘‘(a) SUGAR ESTIMATES.—
‘‘(1) IN GENERAL.—Not later than August 1 before the beginning of each of the 2008 through 2012 crop years for sugarcane
and sugar beets, the Secretary shall estimate—
‘‘(A) the quantity of sugar that will be subject to human
consumption in the United States during the crop year;
‘‘(B) the quantity of sugar that would provide for
reasonable carryover stocks;
‘‘(C) the quantity of sugar that will be available from
carry-in stocks for human consumption in the United States
during the crop year;
‘‘(D) the quantity of sugar that will be available from
the domestic processing of sugarcane, sugar beets, and
in-process beet sugar; and
‘‘(E) the quantity of sugars, syrups, and molasses that
will be imported for human consumption or to be used
for the extraction of sugar for human consumption in the
United States during the crop year, whether the articles
are under a tariff-rate quota or are in excess or outside
of a tariff-rate quota.
‘‘(2) EXCLUSION.—The estimates under this subsection shall
not apply to sugar imported for the production of polyhydric
alcohol or to any sugar refined and reexported in refined form
or in products containing sugar.
‘‘(3) REESTIMATES.—The Secretary shall make reestimates
of sugar consumption, stocks, production, and imports for a
crop year as necessary, but not later than the beginning of
each of the second through fourth quarters of the crop year.
‘‘(b) SUGAR ALLOTMENTS.—
‘‘(1) ESTABLISHMENT.—By the beginning of each crop year,
the Secretary shall establish for that crop year appropriate
allotments under section 359c for the marketing by processors
of sugar processed from sugar cane or sugar beets or in-process
beet sugar (whether the sugar beets or in-process beet sugar
was produced domestically or imported) at a level that is—

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122 STAT. 1711

‘‘(A) sufficient to maintain raw and refined sugar prices
above forfeiture levels so that there will be no forfeitures
of sugar to the Commodity Credit Corporation under the
loan program for sugar established under section 156 of
the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7272); but
‘‘(B) not less than 85 percent of the estimated quantity
of sugar for domestic human consumption for the crop
year.
‘‘(2) PRODUCTS.—The Secretary may include sugar products,
the majority content of which is sucrose for human consumption, derived from sugar cane, sugar beets, molasses, or sugar
in the allotments established under paragraph (1) if the Secretary determines it to be appropriate for purposes of this
part.
‘‘(c) COVERAGE OF ALLOTMENTS.—
‘‘(1) IN GENERAL.—The marketing allotments under this
part shall apply to the marketing by processors of sugar
intended for domestic human consumption that has been processed from sugar cane, sugar beets, or in-process beet sugar,
whether such sugar beets or in-process beet sugar was produced
domestically or imported.
‘‘(2) EXCEPTIONS.—Consistent with the administration of
marketing allotments for each of the 2002 through 2007 crop
years, the marketing allotments shall not apply to sugar sold—
‘‘(A) to facilitate the exportation of the sugar to a
foreign country, except that the exports of sugar shall
not be eligible to receive credits under reexport programs
for refined sugar or sugar containing products administered
by the Secretary;
‘‘(B) to enable another processor to fulfill an allocation
established for that processor; or
‘‘(C) for uses other than domestic human consumption,
except for the sale of sugar for the production of ethanol
or other bioenergy if the disposition of the sugar is administered by the Secretary under section 9010 of the Farm
Security and Rural Investment Act of 2002.
‘‘(3) REQUIREMENT.—The sale of sugar described in paragraph (2)(B) shall be—
‘‘(A) made prior to May 1; and
‘‘(B) reported to the Secretary.
‘‘(d) PROHIBITIONS.—
‘‘(1) IN GENERAL.—During all or part of any crop year
for which marketing allotments have been established, no processor of sugar beets or sugarcane shall market for domestic
human consumption a quantity of sugar in excess of the allocation established for the processor, except—
‘‘(A) to enable another processor to fulfill an allocation
established for that other processor; or
‘‘(B) to facilitate the exportation of the sugar.
‘‘(2) CIVIL PENALTY.—Any processor who knowingly violates
paragraph (1) shall be liable to the Commodity Credit Corporation for a civil penalty in an amount equal to 3 times the
United States market value, at the time of the commission
of the violation, of that quantity of sugar involved in the violation.’’.

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Applicability.

Deadline.
Reports.

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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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the Secretary shall transfer that portion agreed upon
by the buyer and seller.
‘‘(ii) APPLICATION OF ALLOCATION.—The assignment of the allocation under clause (i) shall apply—
‘‘(I) during the remainder of the crop year
for which the sale described in clause (i) occurs;
and
‘‘(II) during each subsequent crop year.
‘‘(iii) USE OF OTHER FACTORIES TO FILL ALLOCATION.—If the assignment of the allocation under clause
(i) to the buyer for the 1 or more purchased factories
cannot be filled by the production of the 1 or more
purchased factories, the remainder of the allocation
may be filled by beet sugar produced by the buyer
from other factories of the buyer.
‘‘(H)
NEW
ENTRANTS
STARTING
PRODUCTION,
REOPENING, OR ACQUIRING AN EXISTING FACTORY WITH
PRODUCTION HISTORY.—
‘‘(i) DEFINITION OF NEW ENTRANT.—
‘‘(I) IN GENERAL.—In this subparagraph, the
term ‘new entrant’ means an individual, corporation, or other entity that—
‘‘(aa) does not have an allocation of the
beet sugar allotment under this part;
‘‘(bb) is not affiliated with any other individual, corporation, or entity that has an
allocation of beet sugar under this part
(referred to in this clause as a ‘third party’);
and
‘‘(cc) will process sugar beets produced by
sugar beet growers under contract with the
new entrant for the production of sugar at
the new or re-opened factory that is the basis
for the new entrant allocation.
‘‘(II) AFFILIATION.—For purposes of subclause
(I)(bb), a new entrant and a third party shall be
considered to be affiliated if—
‘‘(aa) the third party has an ownership
interest in the new entrant;
‘‘(bb) the new entrant and the third party
have owners in common;
‘‘(cc) the third party has the ability to
exercise control over the new entrant by
organizational rights, contractual rights, or
any other means;
‘‘(dd) the third party has a contractual
relationship with the new entrant by which
the new entrant will make use of the facilities
or assets of the third party; or
‘‘(ee) there are any other similar circumstances by which the Secretary determines
that the new entrant and the third party are
affiliated.
‘‘(ii) ALLOCATION FOR A NEW ENTRANT THAT HAS
CONSTRUCTED A NEW FACTORY OR REOPENED A FACTORY
THAT WAS NOT OPERATED SINCE BEFORE 1998.—If a new

entrant constructs a new sugar beet processing factory,

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or acquires and reopens a sugar beet processing factory
that last processed sugar beets prior to the 1998 crop
year and there is no allocation currently associated
with the factory, the Secretary shall—
‘‘(I) assign an allocation for beet sugar to the
new entrant that provides a fair and equitable
distribution of the allocations for beet sugar so
as to enable the new entrant to achieve a factory
utilization rate comparable to the factory utilization rates of other similarly-situated processors;
and
‘‘(II) reduce the allocations for beet sugar of
all other processors on a pro rata basis to reflect
the allocation to the new entrant.
‘‘(iii) ALLOCATION FOR A NEW ENTRANT THAT HAS

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ACQUIRED AN EXISTING FACTORY WITH A PRODUCTION
HISTORY.—
‘‘(I) IN GENERAL.—If a new entrant acquires

an existing factory that has processed sugar beets
from the 1998 or subsequent crop year and has
a production history, on the mutual agreement
of the new entrant and the company currently
holding the allocation associated with the factory,
the Secretary shall transfer to the new entrant
a portion of the allocation of the current allocation
holder to reflect the historical contribution of the
production of the 1 or more sold factories to the
total allocation of the current allocation holder,
unless the new entrant and current allocation
holder have agreed upon the transfer of a different
portion of the allocation of the current allocation
holder, in which case, the Secretary shall transfer
that portion agreed upon by the new entrant and
the current allocation holder.
‘‘(II) PROHIBITION.—In the absence of a mutual
agreement described in subclause (I), the new
entrant shall be ineligible for a beet sugar allocation.
‘‘(iv) APPEALS.—Any decision made under this subsection may be appealed to the Secretary in accordance
with section 359i.’’.
(e) REASSIGNMENT OF DEFICITS.—Section 359e(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended
in paragraphs (1)(D) and (2)(C), by inserting ‘‘of raw cane sugar’’
after ‘‘imports’’ each place it appears.
(f) PROVISIONS APPLICABLE TO PRODUCERS.—Section 359f(c) of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is
amended—
(1) by striking paragraph (8);
(2) by redesignating paragraphs (1) through (7) as paragraphs (2) through (8), respectively;
(3) by inserting before paragraph (2) (as so redesignated)
the following:
‘‘(1) DEFINITION OF SEED.—
‘‘(A) IN GENERAL.—In this subsection, the term ‘seed’
means only those varieties of seed that are dedicated to

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the production of sugarcane from which is produced sugar
for human consumption.
‘‘(B) EXCLUSION.—The term ‘seed’ does not include seed
of a high-fiber cane variety dedicated to other uses, as
determined by the Secretary’’;
(4) in paragraph (3) (as so redesignated)—
(A) in the first sentence—
(i) by striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph (2)’’; and
(ii) by inserting ‘‘sugar produced from’’ after
‘‘quantity of’’; and
(B) in the second sentence, by striking ‘‘paragraph
(7)’’ and inserting ‘‘paragraph (8)’’;
(5) in the first sentence of paragraph (6)(C) (as so redesignated), by inserting ‘‘for sugar’’ before ‘‘in excess of the farm’s
proportionate share’’; and
(6) in paragraph (8) (as so redesignated), by inserting
‘‘sugar from’’ after ‘‘the amount of’’.
(g) SPECIAL RULES.—Section 359g of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended—
(1) by striking subsection (a) and inserting the following:
‘‘(a) TRANSFER OF ACREAGE BASE HISTORY.—
‘‘(1) TRANSFER AUTHORIZED.—For the purpose of establishing proportionate shares for sugarcane farms under section
359f(c), the Secretary, on application of any producer, with
the written consent of all owners of a farm, may transfer
the acreage base history of the farm to any other parcels
of land of the applicant.
‘‘(2) CONVERTED ACREAGE BASE.—
‘‘(A) IN GENERAL.—Sugarcane acreage base established
under section 359f(c) that has been or is converted to
nonagricultural use on or after May 13, 2002, may be
transferred to other land suitable for the production of
sugarcane that can be delivered to a processor in a proportionate share State in accordance with this paragraph.
‘‘(B) NOTIFICATION.—Not later than 90 days after the
Secretary becomes aware of a conversion of any sugarcane
acreage base to a nonagricultural use, the Secretary shall
notify the 1 or more affected landowners of the transferability of the applicable sugarcane acreage base.
‘‘(C) INITIAL TRANSFER PERIOD.—The owner of the base
attributable to the acreage at the time of the conversion
shall be afforded 90 days from the date of the receipt
of the notification under subparagraph (B) to transfer the
base to 1 or more farms owned by the owner.
‘‘(D) GROWER OF RECORD.—If a transfer under subparagraph (C) cannot be accomplished during the period specified in that subparagraph, the grower of record with regard
to the acreage base on the date on which the acreage
was converted to nonagricultural use shall—
‘‘(i) be notified; and
‘‘(ii) have 90 days from the date of the receipt
of the notification to transfer the base to 1 or more
farms operated by the grower.
‘‘(E) POOL DISTRIBUTION.—
‘‘(i) IN GENERAL.—If transfers under subparagraphs (B) and (C) cannot be accomplished during the

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periods specified in those subparagraphs, the county
committee of the Farm Service Agency for the
applicable county shall place the acreage base in a
pool for possible assignment to other farms.
‘‘(ii) ACCEPTANCE OF REQUESTS.—After providing
reasonable notice to farm owners, operators, and
growers of record in the county, the county committee
shall accept requests from owners, operators, and
growers of record in the county.
‘‘(iii) ASSIGNMENT.—The county committee shall
assign the acreage base to other farms in the county
that are eligible and capable of accepting the acreage
base, based on a random drawing from among the
requests received under clause (ii).
‘‘(F) STATEWIDE REALLOCATION.—
‘‘(i) IN GENERAL.—Any acreage base remaining
unassigned after the transfers and processes described
in subparagraphs (A) through (E) shall be made available to the State committee of the Farm Service Agency
for allocation among the remaining county committees
in the State representing counties with farms eligible
for assignment of the base, based on a random drawing.
‘‘(ii) ALLOCATION.—Any county committee receiving
acreage base under this subparagraph shall allocate
the acreage base to eligible farms using the process
described in subparagraph (E).
‘‘(G) STATUS OF REASSIGNED BASE.—After acreage base
has been reassigned in accordance with this subparagraph,
the acreage base shall—
‘‘(i) remain on the farm; and
‘‘(ii) be subject to the transfer provisions of paragraph (1).’’; and
(2) in subsection (d)—
(A) in paragraph (1)—
(i) by inserting ‘‘affected’’ before ‘‘crop-share
owners’’ each place it appears; and
(ii) by striking ‘‘, and from the processing company
holding the applicable allocation for such shares,’’; and
(B) in paragraph (2), by striking ‘‘based on’’ and all
that follows through the end of subparagraph (B) and
inserting ‘‘based on—
‘‘(A) the number of acres of sugarcane base being transferred; and
‘‘(B) the pro rata amount of allocation at the processing
company holding the applicable allocation that equals the
contribution of the grower to allocation of the processing
company for the sugarcane acreage base being transferred.’’.
(h) APPEALS.—Section 359i of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359ii) is amended—
(1) in subsection (a), by inserting ‘‘or 359g(d)’’ after ‘‘359f’’;
and
(2) by striking subsection (c).
(i) REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS.—Section
359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk)
is repealed.

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

‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS.

‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2)
and notwithstanding any other provision of law, at the beginning of the quota year, the Secretary shall establish the tariffrate 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 tariffrate 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:

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‘‘SEC. 359l. PERIOD OF EFFECTIVENESS.

Deadlines.

7 USC 1359ll.

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

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

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

Subtitle E of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7281 et seq.) is amended by adding at
the end the following:
7 USC 7287.

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

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

Subtitle E—Dairy
7 USC 8771.

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SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

(a) DEFINITION OF NET REMOVALS.—In this section, the term
‘‘net removals’’ means—
(1) the sum of—
(A) the quantity of a product described in subsection
(b) purchased by the Commodity Credit Corporation under
this section; and
(B) the quantity of the product exported under section
153 of the Food Security Act of 1985 (15 U.S.C. 713a–
14); less
(2) the quantity of the product sold for unrestricted use
by the Commodity Credit Corporation.
(b) SUPPORT ACTIVITIES.—During the period beginning on
January 1, 2008, and ending December 31, 2012, the Secretary
shall support the price of cheddar cheese, butter, and nonfat dry
milk through the purchase of such products made from milk produced in the United States.
(c) PURCHASE PRICE.—To carry out subsection (b) during the
period specified in that subsection, the Secretary shall purchase—
(1) cheddar cheese in blocks at not less than $1.13 per
pound;

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(2) cheddar cheese in barrels at not less than $1.10 per
pound;
(3) butter at not less than $1.05 per pound; and
(4) nonfat dry milk at not less than $0.80 per pound.
(d) TEMPORARY PRICE ADJUSTMENT TO AVOID EXCESS INVENTORIES.—
(1) ADJUSTMENTS AUTHORIZED.—The Secretary may adjust
the minimum purchase prices established under subsection (c)
only as permitted under this subsection.
(2) CHEESE INVENTORIES IN EXCESS OF 200,000,000 POUNDS.—
If net removals for a period of 12 consecutive months exceed
200,000,000 pounds of cheese, but do not exceed 400,000,000
pounds, the Secretary may reduce the purchase prices under
paragraphs (1) and (2) of subsection (c) during the immediately
following month by not more than 10 cents per pound.
(3) CHEESE INVENTORIES IN EXCESS OF 400,000,000 POUNDS.—
If net removals for a period of 12 consecutive months exceed
400,000,000 pounds of cheese, the Secretary may reduce the
purchase prices under paragraphs (1) and (2) of subsection
(c) during the immediately following month by not more than
20 cents per pound.
(4) BUTTER INVENTORIES IN EXCESS OF 450,000,000 POUNDS.—
If net removals for a period of 12 consecutive months exceed
450,000,000 pounds of butter, but do not exceed 650,000,000
pounds, the Secretary may reduce the purchase price under
subsection (c)(3) during the immediately following month by
not more than 10 cents per pound.
(5) BUTTER INVENTORIES IN EXCESS OF 650,000,000 POUNDS.—
If net removals for a period of 12 consecutive months exceed
650,000,000 pounds of butter, the Secretary may reduce the
purchase price under subsection (c)(3) during the immediately
following month by not more than 20 cents per pound.
(6) NONFAT DRY MILK INVENTORIES IN EXCESS OF 600,000,000
POUNDS.—If net removals for a period of 12 consecutive months
exceed 600,000,000 pounds of nonfat dry milk, but do not exceed
800,000,000 pounds, the Secretary may reduce the purchase
price under subsection (c)(4) during the immediately following
month by not more than 5 cents per pound.
(7) NONFAT DRY MILK INVENTORIES IN EXCESS OF 800,000,000
POUNDS.—If net removals for a period of 12 consecutive months
exceed 800,000,000 pounds of nonfat dry milk, the Secretary
may reduce the purchase price under subsection (c)(4) during
the immediately following month by not more than 10 cents
per pound.
(e) UNIFORM PURCHASE PRICE.—The prices that the Secretary
pays for cheese, butter, or nonfat dry milk, respectively, under
subsection (b) shall be uniform for all regions of the United States.
(f) SALES FROM INVENTORIES.—In the case of each commodity
specified in subsection (c) that is available for unrestricted use
in the inventory of the Commodity Credit Corporation, the Secretary
may sell the commodity at the market prices prevailing for that
commodity at the time of sale, except that the sale price may
not be less than 110 percent of the minimum purchase price specified in subsection (c) for that commodity.

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122 STAT. 1720
7 USC 8772.

SEC. 1502. DAIRY FORWARD PRICING PROGRAM.

Applicability.

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(a) PROGRAM REQUIRED.—The Secretary shall establish a program under which milk producers and cooperative associations of
producers are authorized to voluntarily enter into forward price
contracts with milk handlers.
(b) MINIMUM MILK PRICE REQUIREMENTS.—Payments made by
milk handlers to milk producers and cooperative associations of
producers, and prices received by milk producers and cooperative
associations, in accordance with the terms of a forward price contract authorized by subsection (a), shall be treated as satisfying—
(1) all uniform and minimum milk price requirements of
subparagraphs (B) and (F) of paragraph (5) of section 8c of
the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement
Act of 1937; and
(2) the total payment requirement of subparagraph (C)
of that paragraph.
(c) MILK COVERED BY PROGRAM.—
(1) COVERED MILK.—The program shall apply only with
respect to the marketing of federally regulated milk that—
(A) is not classified as Class I milk or otherwise
intended for fluid use; and
(B) is in the current of interstate or foreign commerce
or directly burdens, obstructs, or affects interstate or foreign commerce in federally regulated milk.
(2) RELATION TO CLASS I MILK.—To assist milk handlers
in complying with paragraph (1)(A) without having to segregate
or otherwise individually track the source and disposition of
milk, a milk handler may allocate milk receipts from producers,
cooperatives, and other sources that are not subject to a forward
contract to satisfy the obligations of the handler with regard
to Class I milk usage.
(d) VOLUNTARY PROGRAM.—
(1) IN GENERAL.—A milk handler may not require participation in a forward pricing contract as a condition of the handler
receiving milk from a producer or cooperative association of
producers.
(2) PRICING.—A producer or cooperative association
described in paragraph (1) may continue to have their milk
priced in accordance with the minimum payment provisions
of the Federal milk marketing order.
(3) COMPLAINTS.—
(A) IN GENERAL.—The Secretary shall investigate complaints made by producers or cooperative associations of
coercion by handlers to enter into forward contracts.
(B) ACTION.—If the Secretary finds evidence of coercion, the Secretary shall take appropriate action.
(e) DURATION.—
(1) NEW CONTRACTS.—No forward price contract may be
entered into under the program established under this section
after September 30, 2012.
(2) APPLICATION.—No forward contract entered into under
the program may extend beyond September 30, 2015.

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122 STAT. 1721

SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM.

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

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

Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking subsection (17) and
inserting the following:
‘‘(17) PROVISIONS APPLICABLE TO AMENDMENTS.—
‘‘(A) APPLICABILITY TO AMENDMENTS.—The provisions
of this section and section 8d applicable to orders shall
be applicable to amendments to orders.
‘‘(B) SUPPLEMENTAL RULES OF PRACTICE.—
‘‘(i) IN GENERAL.—Not later than 60 days after
the date of enactment of this subparagraph, the Secretary shall issue, using informal rulemaking, supplemental rules of practice to define guidelines and timeframes for the rulemaking process relating to amendments to orders.
‘‘(ii) ISSUES.—At a minimum, the supplemental
rules of practice shall establish—
‘‘(I) proposal submission requirements;
‘‘(II) pre-hearing information session specifications;
‘‘(III) written testimony and data request
requirements;
‘‘(IV) public participation timeframes; and
‘‘(V) electronic document submission standards.
‘‘(iii) EFFECTIVE DATE.—The supplemental rules of
practice shall take effect not later than 120 days after

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122 STAT. 1722

the date of enactment of this subparagraph, as determined by the Secretary.
‘‘(C) HEARING TIMEFRAMES.—
‘‘(i) IN GENERAL.—Not more than 30 days after
the receipt of a proposal for an amendment hearing
regarding a milk marketing order, the Secretary
shall—
‘‘(I) issue a notice providing an action plan
and expected timeframes for completion of the
hearing not more than 120 days after the date
of the issuance of the notice;
‘‘(II)(aa) issue a request for additional information to be used by the Secretary in making a
determination regarding the proposal; and
‘‘(bb) if the additional information is not provided to the Secretary within the timeframe
requested by the Secretary, issue a denial of the
request; or
‘‘(III) issue a denial of the request.
‘‘(ii) REQUIREMENT.—A post-hearing brief may be
filed under this paragraph not later than 60 days after
the date of an amendment hearing regarding a milk
marketing order.
‘‘(iii) RECOMMENDED DECISIONS.—A recommended
decision on a proposed amendment to an order shall
be issued not later than 90 days after the deadline
for the submission of post-hearing briefs.
‘‘(iv) FINAL DECISIONS.—A final decision on a proposed amendment to an order shall be issued not later
than 60 days after the deadline for submission of comments and exceptions to the recommended decision
issued under clause (iii).
‘‘(D) INDUSTRY ASSESSMENTS.—If the Secretary determines it is necessary to improve or expedite rulemaking
under this subsection, the Secretary may impose an assessment on the affected industry to supplement appropriated
funds for the procurement of service providers, such as
court reporters.
‘‘(E) USE OF INFORMAL RULEMAKING.—The Secretary
may use rulemaking under section 553 of title 5, United
States Code, to amend orders, other than provisions of
orders that directly affect milk prices.
‘‘(F) AVOIDING DUPLICATION.—The Secretary shall not
be required to hold a hearing on any amendment proposed
to be made to a milk marketing order in response to an
application for a hearing on the proposed amendment if—
‘‘(i) the application requesting the hearing is
received by the Secretary not later than 90 days after
the date on which the Secretary has announced the
decision on a previously proposed amendment to that
order; and
‘‘(ii) the 2 proposed amendments are essentially
the same, as determined by the Secretary.
‘‘(G) MONTHLY FEED AND FUEL COSTS FOR MAKE ALLOWANCES.—As part of any hearing to adjust make allowances
under marketing orders commencing prior to September
30, 2012, the Secretary shall—

Deadlines.

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‘‘(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.

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

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SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM.

7 USC 8773.

(a) DEFINITIONS.—In this section:
(1) CLASS I MILK.—The term ‘‘Class I milk’’ means milk
(including milk components) classified as Class I milk under
a Federal milk marketing order.
(2) ELIGIBLE PRODUCTION.—The term ‘‘eligible production’’
means milk produced by a producer in a participating State.
(3) FEDERAL MILK MARKETING ORDER.—The term ‘‘Federal
milk marketing order’’ means an order issued under section
8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement
Act of 1937.
(4) PARTICIPATING STATE.—The term ‘‘participating State’’
means each State.
(5) PRODUCER.—The term ‘‘producer’’ means an individual
or entity that directly or indirectly (as determined by the Secretary)—
(A) shares in the risk of producing milk; and
(B) makes contributions (including land, labor,
management, equipment, or capital) to the dairy farming
operation of the individual or entity that are at least
commensurate with the share of the individual or entity
of the proceeds of the operation.
(b) PAYMENTS.—The Secretary shall offer to enter into contracts
with producers on a dairy farm located in a participating State
under which the producers receive payments on eligible production.
(c) AMOUNT.—Payments to a producer under this section shall
be calculated by multiplying (as determined by the Secretary)—
(1) the payment quantity for the producer during the
applicable month established under subsection (e);
(2) the amount equal to—
(A) $16.94 per hundredweight, as adjusted under subsection (d); less
(B) the Class I milk price per hundredweight in Boston
under the applicable Federal milk marketing order; by
(3)(A) for the period beginning October 1, 2007, and ending
September 30, 2008, 34 percent;
(B) for the period beginning October 1, 2008, and ending
August 31, 2012, 45 percent; and
(C) for the period beginning September 1, 2012, and thereafter, 34 percent.
(d) PAYMENT RATE ADJUSTMENT FOR FEED PRICES.—
(1) INITIAL ADJUSTMENT AUTHORITY.—During the period
beginning on January 1, 2008, and ending on August 31, 2012,
if the National Average Dairy Feed Ration Cost for a month
during that period is greater than $7.35 per hundredweight,

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Effective date.
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the amount specified in subsection (c)(2)(A) used to determine
the payment rate for that month shall be increased by 45
percent of the percentage by which the National Average Dairy
Feed Ration Cost exceeds $7.35 per hundredweight.
(2) SUBSEQUENT ADJUSTMENT AUTHORITY.—For any month
beginning on or after September 1, 2012, if the National Average Dairy Feed Ration Cost for the month is greater than
$9.50 per hundredweight, the amount specified in subsection
(c)(2)(A) used to determine the payment rate for that month
shall be increased by 45 percent of the percentage by which
the National Average Dairy Feed Ration Cost exceeds $9.50
per hundredweight.
(3) NATIONAL AVERAGE DAIRY FEED RATION COST.—For each
month, the Secretary shall calculate a National Average Dairy
Feed Ration Cost per hundredweight using the same procedures
(adjusted to a hundredweight basis) used to calculate the feed
components of the estimated price of 16% Mixed Dairy Feed
per pound noted on page 33 of the USDA March 2008 Agricultural Prices publication (including the data and factors noted
in footnote 4).
(e) PAYMENT QUANTITY.—
(1) IN GENERAL.—Subject to paragraph (2), the payment
quantity for a producer during the applicable month under
this section shall be equal to the quantity of eligible production
marketed by the producer during the month.
(2) LIMITATION.—
(A) IN GENERAL.—The payment quantity for all producers on a single dairy operation for which the producers
receive payments under subsection (b) shall not exceed—
(i) for the period beginning October 1, 2007, and
ending September 30, 2008, 2,400,000 pounds;
(ii) for the period beginning October 1, 2008, and
ending August 31, 2012, 2,985,000 pounds for each
fiscal year; and
(iii) effective beginning September 1, 2012,
2,400,000 pounds per fiscal year.
(B) STANDARDS.—For purposes of determining whether
producers are producers on separate dairy operations or
a single dairy operation, the Secretary shall apply the
same standards as were applied in implementing the dairy
program under section 805 of the Agriculture, Rural
Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2001 (as enacted into law
by Public Law 106–387; 114 Stat. 1549A–50).
(3) RECONSTITUTION.—The Secretary shall ensure that a
producer does not reconstitute a dairy operation for the sole
purpose of receiving additional payments under this section.
(f) PAYMENTS.—A payment under a contract under this section
shall be made on a monthly basis not later than 60 days after
the last day of the month for which the payment is made.
(g) SIGNUP.—The Secretary shall offer to enter into contracts
under this section during the period beginning on the date that
is 90 days after the date of enactment of this Act and ending
on September 30, 2012.
(h) DURATION OF CONTRACT.—
(1) IN GENERAL.—Except as provided in paragraph (2), any
contract entered into by producers on a dairy farm under this

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

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SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM.

(a) EXTENSION OF DAIRY PROMOTION AND RESEARCH
AUTHORITY.—Section 113(e)(2) of the Dairy Production Stabilization
Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking ‘‘2007’’
and inserting ‘‘2012’’.
(b) DEFINITION OF UNITED STATES FOR PROMOTION PROGRAM.—
Section 111 of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4502) is amended—
(1) by striking subsection (l) and inserting the following:
‘‘(l) the term ‘United States’, when used in a geographical
sense, means all of the States, the District of Columbia, and the
Commonwealth of Puerto Rico;’’; and
(2) in subsection (m), by striking ‘‘(as defined in subsection
(l))’’.
(c) DEFINITION OF UNITED STATES FOR RESEARCH PROGRAM.—
Section 130 of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4531)) is amended by striking paragraph (12) and inserting
the following:
‘‘(12) the term ‘United States’, when used in a geographical
sense, means all of the States, the District of Columbia, and
the Commonwealth of Puerto Rico.’’.
(d) ASSESSMENT RATE FOR IMPORTED DAIRY PRODUCTS.—Section
113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4504(g)) is amended by striking paragraph (3) and inserting the
following:
‘‘(3) RATE.—
‘‘(A) IN GENERAL.—The rate of assessment for milk
produced in the United States prescribed by the order
shall be 15 cents per hundredweight of milk for commercial
use or the equivalent thereof, as determined by the Secretary.
‘‘(B) IMPORTED DAIRY PRODUCTS.—The rate of assessment for imported dairy products prescribed by the order
shall be 7.5 cents per hundredweight of milk for commercial
use or the equivalent thereof, as determined by the Secretary.’’.
(e) TIME AND METHOD OF IMPORTER PAYMENTS.—Section
113(g)(6) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4504(g)(6)) is amended—
(1) by striking subparagraph (B); and
(2) by redesignating subparagraph (C) as subparagraph
(B).
(f) REFUND OF ASSESSMENTS ON CERTAIN IMPORTED DAIRY
PRODUCTS.—Section 113(g) of the Dairy Production Stabilization

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Act of 1983 (7 U.S.C. 4504(g)) is amended by adding at the end
the following:
‘‘(7) REFUND OF ASSESSMENTS ON CERTAIN IMPORTED PRODUCTS.—
‘‘(A) IN GENERAL.—An importer shall be entitled to
a refund of any assessment paid under this subsection
on imported dairy products imported under a contract
entered into prior to the date of enactment of the Food,
Conservation, and Energy Act of 2008.
‘‘(B) EXPIRATION.—Refunds under subparagraph (A)
shall expire 1 year after the date of enactment of the
Food, Conservation, and Energy Act of 2008.’’.
SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING
PROCEDURES FOR NONFAT DRY MILK.

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

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SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

(a) ESTABLISHMENT.—Subject to the availability of appropriations to carry out this section, the Secretary shall establish a
commission to be known as the ‘‘Federal Milk Marketing Order
Review Commission’’ (referred to in this section as the ‘‘commission’’), which shall conduct a comprehensive review and evaluation
of—
(1) the Federal milk marketing order system in effect on
the date of establishment of the commission; and
(2) non-Federal milk marketing order systems.
(b) ELEMENTS OF REVIEW AND EVALUATION.—As part of the
review and evaluation under subsection (a), the commission shall
consider legislative and regulatory options for—
(1) ensuring that the competitiveness of dairy products
with other competing products in the marketplace is preserved
and enhanced;
(2) enhancing the competitiveness of American dairy producers in world markets;
(3) ensuring the competitiveness and transparency in dairy
pricing;
(4) streamlining and expediting the process by which
amendments to Federal milk market orders are adopted;
(5) simplifying the Federal milk marketing order system;
(6) evaluating whether the Federal milk marketing order
system serves the interests of dairy producers, consumers, and
dairy processors; and
(7) evaluating the nutritional composition of milk, including
the potential benefits and costs of adjusting the milk content
standards.
(c) MEMBERSHIP.—
(1) COMPOSITION.—The commission shall consist of 14 members.
(2) MEMBERS.—As soon as practicable after the date on
which funds are first made available to carry out this section,

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122 STAT. 1727

the Secretary shall appoint members to the commission
according to the following requirements:
(A) At least 1 member shall represent a national consumer organization.
(B) At least 4 members shall represent land-grant
universities or NLGCA Institutions (as defined in section
1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)) with accredited
dairy economic programs, with at least 2 of those members
being experts in the field of economics.
(C) At least 1 member shall represent the food and
beverage retail sector.
(D) 4 dairy producers and 4 dairy processors, appointed
so as to balance geographical distribution of milk production and dairy processing, reflect all segments of dairy
processing, and represent all regions of the United States
equitably, including States that operate outside of a Federal
milk marketing order.
(3) CHAIR.—The commission shall elect 1 of the appointed
members of the commission to serve as chairperson for the
duration of the proceedings of the commission.
(4) VACANCY.—Any vacancy occurring before the termination of the commission shall be filled in the same manner
as the original appointment.
(5) COMPENSATION.—Members of the commission shall
serve without compensation, but shall be reimbursed by the
Secretary from existing budget authority for necessary and
reasonable expenses incurred in the performance of the duties
of the commission.
(d) REPORT.—
(1) IN GENERAL.—Not later than 2 years after the date
of the first meeting of the commission, the commission shall
submit to Congress and the Secretary a report describing the
results of the review and evaluation conducted under this section, including such recommendations regarding the legislative
and regulatory options considered under subsection (b) as the
commission considers to be appropriate.
(2) OPINIONS.—The report findings shall reflect, to the maximum extent practicable, a consensus opinion of the commission
members, but the report may include majority and minority
findings regarding those matters for which consensus was not
reached.
(e) ADVISORY NATURE.—The commission is wholly advisory in
nature, and the recommendations of the commission are nonbinding.
(f) NO EFFECT ON EXISTING PROGRAMS.—The Secretary shall
not allow the existence of the commission to impede, delay, or
otherwise affect any decisionmaking process of the Department
of Agriculture, including any rulemaking procedures planned, proposed, or near completion.
(g) ADMINISTRATIVE ASSISTANCE.—The Secretary shall provide
administrative support to the commission, and expend to carry
out this section such funds as necessary from budget authority
available to the Secretary.
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.

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

(a) ELECTRONIC REPORTING.—Section 273 of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637b) is amended—
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
‘‘(d) ELECTRONIC REPORTING.—
‘‘(1) IN GENERAL.—Subject to the availability of funds under
paragraph (3), the Secretary shall establish an electronic
reporting system to carry out this section.
‘‘(2) FREQUENCY OF REPORTS.—After the establishment of
the electronic reporting system in accordance with paragraph
(1), the Secretary shall increase the frequency of the reports
required under this section.
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary to
carry out this subsection.’’.
(b) QUARTERLY AUDITS.—Section 273(c) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(c)) is amended by striking
paragraph (3) and inserting the following:
‘‘(3) VERIFICATION.—
‘‘(A) IN GENERAL.—The Secretary shall take such
actions as the Secretary considers necessary to verify the
accuracy of the information submitted or reported under
this subtitle.
‘‘(B) QUARTERLY AUDITS.—The Secretary shall quarterly conduct an audit of information submitted or reported
under this subtitle and compare such information with
other related dairy market statistics.’’.

Subtitle F—Administration
7 USC 8781.

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SEC. 1601. ADMINISTRATION GENERALLY.

(a) USE OF COMMODITY CREDIT CORPORATION.—Except as otherwise provided in this title, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry
out this title.
(b) DETERMINATIONS BY SECRETARY.—A determination made
by the Secretary under this title shall be final and conclusive.
(c) REGULATIONS.—
(1) IN GENERAL.—Except as otherwise provided in this subsection, not later than 90 days after the date of enactment
of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are
necessary to implement this title and the amendments made
by this title.
(2) PROCEDURE.—The promulgation of the regulations and
administration of this title and the amendments made by this
title shall be made without regard to—
(A) chapter 35 of title 44, United States Code (commonly known as the ‘‘Paperwork Reduction Act’’);
(B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804),

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relating to notices of proposed rulemaking and public
participation in rulemaking; and
(C) the notice and comment provisions of section 553
of title 5, United States Code.
(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In
carrying out this subsection, the Secretary shall use the
authority provided under section 808 of title 5, United States
Code.
(4) INTERIM REGULATIONS.—Notwithstanding paragraphs
(1) and (2), the Secretary shall implement the amendments
made by sections 1603 and 1604 for the 2009 crop, fiscal,
or program year, as appropriate, through the promulgation
of an interim rule.
(d) ADJUSTMENT AUTHORITY RELATED TO TRADE AGREEMENTS
COMPLIANCE.—
(1) REQUIRED DETERMINATION; ADJUSTMENT.—If the Secretary determines that expenditures under this title that are
subject to the total allowable domestic support levels under
the Uruguay Round Agreements (as defined in section 2 of
the Uruguay Round Agreements Act (19 U.S.C. 3501)) will
exceed such allowable levels for any applicable reporting period,
the Secretary shall, to the maximum extent practicable, make
adjustments in the amount of such expenditures during that
period to ensure that such expenditures do not exceed such
allowable levels.
(2) CONGRESSIONAL NOTIFICATION.—Before making any
adjustment under paragraph (1), the Secretary shall submit
to the Committee on Agriculture of the House of Representatives or the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report describing the determination made under
that paragraph and the extent of the adjustment to be made.
(e) TREATMENT OF ADVANCE PAYMENT OPTION.—Section 1601(d)
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7991(d)) is amended—
(1) in paragraph (1), by striking ‘‘and’’ at the end;
(2) in paragraph (2), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) the advance payment of direct payments and countercyclical payments under title I of the Food, Conservation, and
Energy Act of 2008.’’.

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SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The following
provisions of the Agricultural Adjustment Act of 1938 shall not
be applicable to the 2008 through 2012 crops of covered commodities, peanuts, and sugar and shall not be applicable to milk during
the period beginning on the date of enactment of this Act through
December 31, 2012:
(1) Parts II through V of subtitle B of title III (7 U.S.C.
1326 et seq.).
(2) In the case of upland cotton, section 377 (7 U.S.C.
1377).
(3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
(4) Title IV (7 U.S.C. 1401 et seq.).
(b) AGRICULTURAL ACT OF 1949.—The following provisions of
the Agricultural Act of 1949 shall not be applicable to the 2008

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through 2012 crops of covered commodities, peanuts, and sugar
and shall not be applicable to milk during the period beginning
on the date of enactment of this Act and through December 31,
2012:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).
(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—The joint resolution entitled ‘‘A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as
amended’’, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall
not be applicable to the crops of wheat planted for harvest in
the calendar years 2008 through 2012.

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SEC. 1603. PAYMENT LIMITATIONS.

(a) EXTENSION OF LIMITATIONS.—Sections 1001 and 1001C(a)
of the Food Security Act of 1985 (7 U.S.C. 1308, 1308–3(a)) are
amended by striking ‘‘Farm Security and Rural Investment Act
of 2002’’ each place it appears and inserting ‘‘Food, Conservation,
and Energy Act of 2008’’.
(b) REVISION OF LIMITATIONS.—
(1) DEFINITIONS.—Section 1001(a) of the Food Security Act
of 1985 (7 U.S.C. 1308(a)) is amended—
(A) in the matter preceding paragraph (1), by inserting
‘‘through section 1001F’’after ‘‘section’’;
(B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (5); and
(C) by inserting after paragraph (1) the following:
‘‘(2) FAMILY MEMBER.—The term ‘family member’ means
a person to whom a member in the farming operation is related
as lineal ancestor, lineal descendant, sibling, spouse, or otherwise by marriage.
‘‘(3) LEGAL ENTITY.—The term ‘legal entity’ means an entity
that is created under Federal or State law and that—
‘‘(A) owns land or an agricultural commodity; or
‘‘(B) produces an agricultural commodity.
‘‘(4) PERSON.—The term ‘person’ means a natural person,
and does not include a legal entity.’’.
(2) LIMITATION ON DIRECT PAYMENTS AND COUNTERCYCLICAL PAYMENTS.—Section 1001 of the Food Security Act
of 1985 (7 U.S.C. 1308) is amended by striking subsections
(b), (c), and (d) and inserting the following:
‘‘(b) LIMITATION ON DIRECT PAYMENTS, COUNTER-CYCLICAL PAYMENTS, AND ACRE PAYMENTS FOR COVERED COMMODITIES (OTHER
THAN PEANUTS).—
‘‘(1) DIRECT PAYMENTS.—The total amount of direct payments received, directly or indirectly, by a person or legal

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

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Energy Act of 2008, the total amount of counter-cyclical payments received, directly or indirectly, by the person or legal
entity for any crop year under subtitle C of title I of that
Act for peanuts may not exceed $65,000.
‘‘(3) ACRE AND COUNTER-CYCLICAL PAYMENTS.—In the case
of a person or legal entity (except a joint venture or a general
partnership) that participates in the average crop revenue election program under section 1105 of the Food, Conservation,
and Energy Act of 2008, the total amount of average crop
revenue election payments received, directly or indirectly, by
the person or legal entity for any crop year for peanuts may
not exceed the sum of—
‘‘(A) $65,000; and
‘‘(B) the amount by which the direct payment limitation
is reduced under paragraph (1)(B).
‘‘(d) LIMITATION ON APPLICABILITY.—Nothing in this section
authorizes any limitation on any benefit associated with the marketing assistance loan program or the loan deficiency payment
program under title I of the Food, Conservation, and Energy Act
of 2008.’’.
(3) DIRECT ATTRIBUTION.—Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended—
(A) by striking subsections (e) and (f) and redesignating
subsection (g) as subsection (h); and
(B) by inserting after subsection (d) the following:
‘‘(e) ATTRIBUTION OF PAYMENTS.—
‘‘(1) IN GENERAL.—In implementing subsections (b) and (c)
and a program described in paragraphs (1)(C) and (2)(B) of
section 1001D(b), the Secretary shall issue such regulations
as are necessary to ensure that the total amount of payments
are attributed to a person by taking into account the direct
and indirect ownership interests of the person in a legal entity
that is eligible to receive the payments.
‘‘(2) PAYMENTS TO A PERSON.—Each payment made directly
to a person shall be combined with the pro rata interest of
the person in payments received by a legal entity in which
the person has a direct or indirect ownership interest unless
the payments of the legal entity have been reduced by the
pro rata share of the person.
‘‘(3) PAYMENTS TO A LEGAL ENTITY.—
‘‘(A) IN GENERAL.—Each payment made to a legal entity
shall be attributed to those persons who have a direct
or indirect ownership interest in the legal entity unless
the payment to the legal entity has been reduced by the
pro rata share of the person.
‘‘(B) ATTRIBUTION OF PAYMENTS.—
‘‘(i) PAYMENT LIMITS.—Except as provided in clause
(ii), payments made to a legal entity shall not exceed
the amounts specified in subsections (b) and (c).
‘‘(ii) EXCEPTION FOR JOINT VENTURES AND GENERAL
PARTNERSHIPS.—Payments made to a joint venture or
a general partnership shall not exceed, for each payment specified in subsections (b) and (c), the amount
determined by multiplying the maximum payment
amount specified in subsections (b) and (c) by the
number of persons and legal entities (other than joint

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122 STAT. 1733

ventures and general partnerships) that comprise the
ownership of the joint venture or general partnership.
‘‘(iii) REDUCTION.—Payments made to a legal entity
shall be reduced proportionately by an amount that
represents the direct or indirect ownership in the legal
entity by any person or legal entity that has otherwise
exceeded the applicable maximum payment limitation.
‘‘(4) 4 LEVELS OF ATTRIBUTION FOR EMBEDDED LEGAL ENTITIES.—
‘‘(A) IN GENERAL.—Attribution of payments made to
legal entities shall be traced through 4 levels of ownership
in legal entities.
‘‘(B) FIRST LEVEL.—Any payments made to a legal
entity (a first-tier legal entity) that is owned in whole
or in part by a person shall be attributed to the person
in an amount that represents the direct ownership in the
first-tier legal entity by the person.
‘‘(C) SECOND LEVEL.—
‘‘(i) IN GENERAL.—Any payments made to a firsttier legal entity that is owned (in whole or in part)
by another legal entity (a second-tier legal entity) shall
be attributed to the second-tier legal entity in proportion to the ownership of the second-tier legal entity
in the first-tier legal entity.
‘‘(ii) OWNERSHIP BY A PERSON.—If the second-tier
legal entity is owned (in whole or in part) by a person,
the amount of the payment made to the first-tier legal
entity shall be attributed to the person in the amount
that represents the indirect ownership in the firsttier 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 fourthtier legal entity.
‘‘(f) SPECIAL RULES.—
‘‘(1) MINOR CHILDREN.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), payments received by a child under the age of 18
shall be attributed to the parents of the child.
‘‘(B) REGULATIONS.—The Secretary shall issue regulations specifying the conditions under which payments
received by a child under the age of 18 will not be attributed
to the parents of the child.
‘‘(2) MARKETING COOPERATIVES.—Subsections (b) and (c)
shall not apply to a cooperative association of producers with
respect to commodities produced by the members of the association that are marketed by the association on behalf of the
members of the association but shall apply to the producers
as persons.

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

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loan under title I of the Food, Conservation, and Energy
Act of 2008 or title XII of this Act.
‘‘(B) TENANTS.—A lessee of land owned by a State
or local government, or political subdivision or agency of
the government, may receive payments described in subsections (b), (c), and (d) if the lessee otherwise meets all
applicable criteria.
‘‘(7) CHANGES IN FARMING OPERATIONS.—
‘‘(A) IN GENERAL.—In the administration of this section
through section 1001F, the Secretary may not approve
any change in a farming operation that otherwise will
increase the number of persons to which the limitations
under this section are applied unless the Secretary determines that the change is bona fide and substantive.
‘‘(B) FAMILY MEMBERS.—The addition of a family
member to a farming operation under the criteria set out
in section 1001A shall be considered a bona fide and substantive change in the farming operation.
‘‘(8) DEATH OF OWNER.—
‘‘(A) IN GENERAL.—If any ownership interest in land
or a commodity is transferred as the result of the death
of a program participant, the new owner of the land or
commodity may, if the person is otherwise eligible to
participate in the applicable program, succeed to the contract of the prior owner and receive payments subject to
this section without regard to the amount of payments
received by the new owner.
‘‘(B) LIMITATIONS ON PRIOR OWNER.—Payments made
under this paragraph shall not exceed the amount to which
the previous owner was entitled to receive under the terms
of the contract at the time of the death of the prior owner.
‘‘(g) PUBLIC SCHOOLS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection (f)(6)(A), a
State or local government, or political subdivision or agency
of the government, shall be eligible, subject to the limitation
in paragraph (2), to receive a payment described in subsection
(b) or (c) for land owned by the State or local government,
or political subdivision or agency of the government, that is
used to maintain a public school.
‘‘(2) LIMITATION.—
‘‘(A) IN GENERAL.—For each State, the total amount
of payments described in subsections (b) and (c) that are
received collectively by the State and local government
and all political subdivisions or agencies of those governments shall not exceed $500,000.
‘‘(B) EXCEPTION.—The limitation in subparagraph (A)
shall not apply to States with a population of less than
1,500,000.’’.
(c) REPEAL OF 3-ENTITY RULE.—Section 1001A of the Food
Security Act of 1985 (7 U.S.C. 1308–1) is amended—
(1) in the section heading, by striking ‘‘PREVENTION OF
CREATION OF ENTITIES TO QUALIFY AS SEPARATE PERSONS’’
and inserting ‘‘NOTIFICATION OF INTERESTS’’; and
(2) by striking subsection (a) and inserting the following:
‘‘(a) NOTIFICATION OF INTERESTS.—To facilitate administration
of section 1001 and this section, each person or legal entity receiving
payments described in subsections (b) and (c) of section 1001 as

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

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‘‘(C) if a legal entity that is a general partnership,
joint venture, or similar entity, as determined by the Secretary, separately makes a significant contribution (based
on the total value of the farming operation involved) of
capital, equipment, or land, and the standards provided
in clauses (ii) and (iii) of subparagraph (A), as applied
to the legal entity, are met by the legal entity, the partners
or members making a significant contribution of personal
labor or active personal management shall be considered
to be actively engaged in farming with respect to the
farming operation involved; and
‘‘(D) in making determinations under this subsection
regarding equipment and personal labor, the Secretary
shall take into consideration the equipment and personal
labor normally and customarily provided by farm operators
in the area involved to produce program crops.
‘‘(c) SPECIAL CLASSES ACTIVELY ENGAGED.—
‘‘(1) LANDOWNER.—A person or legal entity that is a landowner contributing the owned land to a farming operation
shall be considered to be actively engaged in farming with
respect to the farming operation if—
‘‘(A) the landowner receives rent or income for the
use of the land based on the production on the land or
the operating results of the operation; and
‘‘(B) the person or legal entity meets the standards
provided in clauses (ii) and (iii) of subsection (b)(2)(A).
‘‘(2) ADULT FAMILY MEMBER.—If a majority of the participants in a farming operation are family members, an adult
family member shall be considered to be actively engaged in
farming with respect to the farming operation if the person—
‘‘(A) makes a significant contribution, based on the
total value of the farming operation, of active personal
management or personal labor; and
‘‘(B) with respect to such contribution, meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).
‘‘(3) SHARECROPPER.—A sharecropper who makes a significant contribution of personal labor to a farming operation shall
be considered to be actively engaged in farming with respect
to the farming operation if the contribution meets the standards
provided in clauses (ii) and (iii) of subsection (b)(2)(A).
‘‘(4) GROWERS OF HYBRID SEED.—In determining whether
a person or legal entity growing hybrid seed under contract
shall be considered to be actively engaged in farming, the
Secretary shall not take into consideration the existence of
a hybrid seed contract.
‘‘(5) CUSTOM FARMING SERVICES.—
‘‘(A) IN GENERAL.—A person or legal entity receiving
custom farming services shall be considered separately
eligible for payment limitation purposes if the person or
legal entity is actively engaged in farming based on subsection (b)(2) or paragraphs (1) through (4) of this subsection.
‘‘(B) PROHIBITION.—No other rules with respect to custom farming shall apply.
‘‘(6) SPOUSE.—If 1 spouse (or estate of a deceased spouse)
is determined to be actively engaged, the other spouse shall

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be determined to have met the requirements of subsection
(b)(2)(A)(i)(II).
‘‘(d) CLASSES NOT ACTIVELY ENGAGED.—
‘‘(1) CASH RENT LANDLORD.—A landlord contributing land
to a farming operation shall not be considered to be actively
engaged in farming with respect to the farming operation if
the landlord receives cash rent, or a crop share guaranteed
as to the amount of the commodity to be paid in rent, for
the use of the land.
‘‘(2) OTHER PERSONS AND LEGAL ENTITIES.—Any other person or legal entity that the Secretary determines does not
meet the standards described in subsections (b)(2) and (c) shall
not be considered to be actively engaged in farming with respect
to a farming operation.’’.
(e) DENIAL OF PROGRAM BENEFITS.—Section 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308–2) is amended to read as
follows:
‘‘SEC. 1001B. DENIAL OF PROGRAM BENEFITS.

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‘‘(a) 2-YEAR DENIAL OF PROGRAM BENEFITS.—A person or legal
entity shall be ineligible to receive payments specified in subsections
(b) and (c) of section 1001 for the crop year, and the succeeding
crop year, in which the Secretary determines that the person or
legal entity—
‘‘(1) failed to comply with section 1001A(b) and adopted
or participated in adopting a scheme or device to evade the
application of section 1001, 1001A, or 1001C; or
‘‘(2) intentionally concealed the interest of the person or
legal entity in any farm or legal entity engaged in farming.
‘‘(b) EXTENDED INELIGIBILITY.—If the Secretary determines that
a person or legal entity, for the benefit of the person or legal
entity or the benefit of any other person or legal entity, has knowingly engaged in, or aided in the creation of a fraudulent document,
failed to disclose material information relevant to the administration of sections 1001 through 1001F, or committed other equally
serious actions (as identified in regulations issued by the Secretary),
the Secretary may for a period not to exceed 5 crop years deny
the issuance of payments to the person or legal entity.
‘‘(c) PRO RATA DENIAL.—
‘‘(1) IN GENERAL.—Payments otherwise owed to a person
or legal entity described in subsections (a) or (b) shall be
denied in a pro rata manner based on the ownership interest
of the person or legal entity in a farm.
‘‘(2) CASH RENT TENANT.—Payments otherwise payable to
a person or legal entity shall be denied in a pro rata manner
if the person or legal entity is a cash rent tenant on a farm
owned or under the control of a person or legal entity with
respect to which a determination has been made under subsection (a) or (b).
‘‘(d) JOINT AND SEVERAL LIABILITY.—Any legal entity (including
partnerships and joint ventures) and any member of any legal
entity determined to have knowingly participated in a scheme or
device to evade, or that has the purpose of evading, sections 1001,
1001A, or 1001C shall be jointly and severally liable for any
amounts that are payable to the Secretary as the result of the
scheme or device (including amounts necessary to recover those
amounts).

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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 following:
‘‘(4) ADJUSTED GROSS INCOME LIMITATION.—A person or
legal entity that has an average adjusted gross income in
excess of the average adjusted gross income limitation
applicable under section 1001D(b)(1)(A) of the Food Security
Act of 1985 (7 U.S.C. 1308–3a(b)(1)(A)), or a successor provision,
shall not be eligible to receive noninsured crop disaster assistance under this section.’’; and
(C) in paragraph (5)—
(i) by striking ‘‘necessary to ensure’’ and inserting
‘‘necessary—
‘‘(A) to ensure’’; and
(ii) by striking ‘‘this subsection.’’ and inserting the
following: ‘‘this subsection; and
‘‘(B) to ensure that payments under this section are
attributed to a person or legal entity (excluding a joint
venture or general partnership) in accordance with the
terms and conditions of sections 1001 through 1001D of
the Food Security Act of 1985 (7 U.S.C. 1308 et seq.),
as determined by the Secretary.’’.
(2) TRANSITION.—Section 196(i) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)), as
in effect on September 30, 2007, shall apply with respect to
the 2007 and 2008 crops of any eligible crop.
(g) CONFORMING AMENDMENTS.—
(1) Section 1009(e) of the Food Security Act of 1985 (7
U.S.C. 1308a(e)) is amended in the second sentence by striking
‘‘of $50,000’’.
(2) Section 609(b)(1) of the Emergency Livestock Feed
Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by
inserting ‘‘(before the amendment made by section 1703(a) of
the Food, Conservation, and Energy Act of 2008)’’ after ‘‘1985’’.
(3) Section 524(b)(3) of the Federal Crop Insurance Act
(7 U.S.C. 1524(b)(3)) is amended by inserting ‘‘(before the
amendment made by section 1703(a) of the Food, Conservation,
and Energy Act of 2008)’’ after ‘‘1308(5)))’’.

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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, Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A)) is
amended by inserting ‘‘(before the amendment made by section
1703(a) of the Food, Conservation, and Energy Act of 2008)’’
after ‘‘1308)’’.
(6) Section 291(2) of the Trade Act of 1974 (19 U.S.C.
2401(2)) is amended by inserting ‘‘(before the amendment made
by section 1703(a) of the Food, Conservation, and Energy Act
of 2008)’’ before the period at the end.
(h) TRANSITION.—Section 1001, 1001A, and 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308, 1308–1, 1308–2), as in effect
on September 30, 2007, shall continue to apply with respect to
the 2007 and 2008 crops of any covered commodity or peanuts.
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

(a) IN GENERAL.—Section 1001D of the Food Security Act of
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‘‘SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.

‘‘(a) DEFINITIONS.—
‘‘(1) IN GENERAL.—In this section:
‘‘(A) AVERAGE ADJUSTED GROSS INCOME.—The term
‘average adjusted gross income’, with respect to a person
or legal entity, means the average of the adjusted gross
income or comparable measure of the person or legal entity
over the 3 taxable years preceding the most immediately
preceding complete taxable year, as determined by the
Secretary.
‘‘(B) AVERAGE ADJUSTED GROSS FARM INCOME.—The
term ‘average adjusted gross farm income’, with respect
to a person or legal entity, means the average of the
portion of adjusted gross income of the person or legal
entity that is attributable to activities related to farming,
ranching, or forestry for the 3 taxable years described
in subparagraph (A), as determined by the Secretary in
accordance with subsection (c).
‘‘(C) AVERAGE ADJUSTED GROSS NONFARM INCOME.—
The term ‘average adjusted gross nonfarm income’, with
respect to a person or legal entity, means the difference
between—
‘‘(i) the average adjusted gross income of the person
or legal entity; and
‘‘(ii) the average adjusted gross farm income of
the person or legal entity.
‘‘(2) SPECIAL RULES FOR CERTAIN PERSONS AND LEGAL ENTITIES.—In the case of a legal entity that is not required to
file a Federal income tax return or a person or legal entity
that did not have taxable income in 1 or more of the taxable
years used to determine the average under subparagraph (A)
or (B) of paragraph (1), the Secretary shall provide, by regulation, a method for determining the average adjusted gross
income, the average adjusted gross farm income, and the average adjusted gross nonfarm income of the person or legal entity
for purposes of this section.

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‘‘(3) ALLOCATION OF INCOME.—On the request of any person
filing a joint tax return, the Secretary shall provide for the
allocation of average adjusted gross income, average adjusted
gross farm income, and average adjusted gross nonfarm income
among the persons filing the return if—
‘‘(A) the person provides a certified statement by a
certified public accountant or attorney that specifies the
method by which the average adjusted gross income, average adjusted gross farm income, and average adjusted gross
nonfarm income would have been declared and reported
had the persons filed 2 separate returns; and
‘‘(B) the Secretary determines that the method
described in the statement is consistent with the information supporting the filed joint tax return.
‘‘(b) LIMITATIONS.—
‘‘(1) COMMODITY PROGRAMS.—
‘‘(A) NONFARM LIMITATION.—Notwithstanding any
other provision of law, a person or legal entity shall not
be eligible to receive any benefit described in subparagraph
(C) during a crop, fiscal, or program year, as appropriate,
if the average adjusted gross nonfarm income of the person
or legal entity exceeds $500,000.
‘‘(B) FARM LIMITATION.—Notwithstanding any other
provision of law, a person or legal entity shall not be
eligible to receive a direct payment under subtitle A or
C of title I of the Food, Conservation, and Energy Act
of 2008 during a crop year, if the average adjusted gross
farm income of the person or legal entity exceeds $750,000.
‘‘(C) COVERED BENEFITS.—Subparagraph (A) applies
with respect to the following:
‘‘(i) A direct payment or counter-cyclical payment
under subtitle A or C of title I of the Food, Conservation, and Energy Act of 2008 or an average crop revenue election payment under subtitle A of title I of
that Act.
‘‘(ii) A marketing loan gain or loan deficiency payment under subtitle B or C of title I of the Food,
Conservation, and Energy Act of 2008.
‘‘(iii) A payment or benefit under section 196 of
the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333).
‘‘(iv) A payment or benefit under section 1506 of
the Food, Conservation, and Energy Act of 2008.
‘‘(v) A payment or benefit under title IX of the
Trade Act of 1974 or subtitle B of the Federal Crop
Insurance Act.
‘‘(2) CONSERVATION PROGRAMS.—
‘‘(A) LIMITS.—
‘‘(i) IN GENERAL.—Notwithstanding any other
provision of law, except as provided in clause (ii), a
person or legal entity shall not be eligible to receive
any benefit described in subparagraph (B) during a
crop, fiscal, or program year, as appropriate, if the
average adjusted gross nonfarm income of the person
or legal entity exceeds $1,000,000, unless not less than
66.66 percent of the average adjusted gross income

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Waiver authority.

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Applicability.

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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-bycase basis if the Secretary determines that environmentally sensitive land of special significance would
be protected.
‘‘(B) COVERED BENEFITS.—Subparagraph (A) applies
with respect to the following:
‘‘(i) A payment or benefit under title XII of this
Act.
‘‘(ii) A payment or benefit under title II of the
Farm Security and Rural Investment Act of 2002
(Public Law 107–171; 116 Stat. 223) or title II of the
Food, Conservation, and Energy Act of 2008.
‘‘(iii) A payment or benefit under section 524(b)
of the Federal Crop Insurance Act (7 U.S.C. 1524(b)).
‘‘(c) INCOME DETERMINATION.—
‘‘(1) IN GENERAL.—In determining the average adjusted
gross farm income of a person or legal entity, the Secretary
shall include income or benefits derived from or related to—
‘‘(A) the production of crops, including specialty crops
(as defined in section 3 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108–
465)) and unfinished raw forestry products;
‘‘(B) the production of livestock (including cattle, elk,
reindeer, bison, horses, deer, sheep, goats, swine, poultry,
fish, and other aquacultural products used for food, honeybees, and other animals designated by the Secretary) and
products produced by, or derived from, livestock;
‘‘(C) the production of farm-based renewable energy
(as defined in section 9001 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8101));
‘‘(D) the sale, including the sale of easements and
development rights, of farm, ranch, or forestry land, water
or hunting rights, or environmental benefits;
‘‘(E) the rental or lease of land or equipment used
for farming, ranching, or forestry operations, including
water or hunting rights;
‘‘(F) the processing (including packing), storing
(including shedding), and transporting of farm, ranch, and
forestry commodities, including renewable energy;
‘‘(G) the feeding, rearing, or finishing of livestock;
‘‘(H) the sale of land that has been used for agriculture;
‘‘(I) payments or other benefits received under any
program authorized under title I of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.)
or title I of the Food, Conservation, and Energy Act of
2008;
‘‘(J) payments or other benefits received under any
program authorized under title XII of this Act, title II
of the Farm Security and Rural Investment Act of 2002
(Public Law 107–171; 116 Stat. 223), or title II of the
Food, Conservation, and Energy Act of 2008;
‘‘(K) payments or other benefits received under section
196 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7333);

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‘‘(L) payments or other benefits received under title
IX of the Trade Act of 1974 or subtitle B of the Federal
Crop Insurance Act;
‘‘(M) risk management practices, including benefits
received under a program authorized under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.) (including a
catastrophic risk protection plan offered under section
508(b) of that Act (7 U.S.C. 1508(b))); and
‘‘(N) any other activity related to farming, ranching,
or forestry, as determined by the Secretary.
‘‘(2) INCOME DERIVED FROM FARMING, RANCHING, OR FORESTRY.—In determining the average adjusted gross farm income
of a person or legal entity, in addition to the inclusions
described in paragraph (1), the Secretary shall include any
income reported on the Schedule F or other schedule used
by the person or legal entity to report income from farming,
ranching, or forestry operations to the Internal Revenue
Service, to the extent such income is not already included
under paragraph (1).
‘‘(3) SPECIAL RULE.—If not less than 66.66 percent of the
average adjusted gross income of a person or legal entity is
derived from farming, ranching, or forestry operations described
in paragraphs (1) and (2), in determining the average adjusted
gross farm income of the person or legal entity, the Secretary
shall also include—
‘‘(A) the sale of equipment to conduct farm, ranch,
or forestry operations; and
‘‘(B) the provision of production inputs and services
to farmers, ranchers, foresters, and farm operations.
‘‘(d) ENFORCEMENT.—
‘‘(1) IN GENERAL.—To comply with subsection (b), at least
once every 3 years a person or legal entity shall provide to
the Secretary—
‘‘(A) a certification by a certified public accountant
or another third party that is acceptable to the Secretary
that the average adjusted gross income, average adjusted
gross farm income, and average adjusted gross nonfarm
income of the person or legal entity does not exceed the
applicable limitation specified in that subsection; or
‘‘(B) information and documentation regarding the
average adjusted gross income, average adjusted gross farm
income, and average adjusted gross nonfarm income of
the person or legal entity through other procedures established by the Secretary.
‘‘(2) DENIAL OF PROGRAM BENEFITS.—If the Secretary determines that a person or legal entity has failed to comply with
this section, the Secretary shall deny the issuance of applicable
payments and benefits specified in paragraphs (1)(C) and (2)(B)
of subsection (b) to the person or legal entity, under similar
terms and conditions as described in section 1001B.
‘‘(3) AUDIT.—The Secretary shall establish statistically valid
procedures under which the Secretary shall conduct targeted
audits of such persons or legal entities as the Secretary determines are most likely to exceed the limitations under subsection
(b).
‘‘(e) COMMENSURATE REDUCTION.—In the case of a payment
or benefit described in paragraphs (1)(C) and (2)(B) of subsection

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Deadline.

Certification.

Procedures.

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122 STAT. 1744

Applicability.
7 USC 1308–3a
note.

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7 USC 8783.

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 appropriate.’’.
(b) TRANSITION.—Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308–3a), as in effect on September 30, 2007, shall
apply with respect to the 2007 and 2008 crop, fiscal, or program
year, as appropriate, for each program described in paragraphs
(1)(C) and (2)(B) of subsection (b) of that section (as amended
by subsection (a)).
SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR COVERED OILSEED PRODUCERS.

(a) INCENTIVE PAYMENTS REQUIRED.—Subject to subsection (b)
and the availability of appropriations under subsection (h), the
Secretary shall use funds made available under subsection (h) to
provide quality incentive payments for the production of oilseeds
with specialized traits that enhance human health, as determined
by the Secretary.
(b) COVERED OILSEEDS.—The Secretary shall make payments
under this section only for the production of an oilseed variety
that has, as determined by the Secretary—
(1) been demonstrated to improve the health profile of
the oilseed for use in human consumption by—
(A) reducing or eliminating the need to partially hydrogenate the oil derived from the oilseed for use in human
consumption; or
(B) adopting new technology traits; and
(2) 1 or more impediments to commercialization.
(c) REQUEST FOR PROPOSALS.—
(1) ISSUANCE.—If funds are made available to carry out
this section for a crop year, the Secretary shall issue a request
for proposals for payments under this section.
(2) MULTIYEAR PROPOSALS.—A proponent may submit a
multiyear proposal for payments under this section.
(3) CONTENT OF PROPOSALS.—A proposal for payments
under this section shall include a description of—
(A) how use of the oilseed enhances human health;
(B) the impediments to commercial use of the oilseed;
(C) each oilseed variety described in subsection (b)
and the value of the oilseed variety as a matter of public
policy;
(D) a range for the base price and premiums per bushel
or hundredweight to be paid to producers;
(E) a per bushel or hundredweight amount of incentive
payments requested for each year under this section that
does not exceed 1⁄3 of the total premium offered for any
year;

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(F) the period of time, not to exceed 4 years, during
which incentive payments are to be provided to producers;
and
(G) the targeted total quantity of production and estimated acres needed to produce the targeted quantity for
each year under this section.
(d) CONTRACTS FOR PRODUCTION.—
(1) IN GENERAL.—The Secretary shall approve successful
proposals submitted under subsection (c) on a timely basis.
(2) TIMING OF PAYMENTS.—The Secretary shall make payments to producers under this section after the Secretary
receives documentation that the premium required under a
contract has been paid to covered producers.
(e) ADMINISTRATION.—
(1) IN GENERAL.—If funding provided for a crop year is
not fully allocated under the initial request for proposals under
subsection (c), the Secretary shall issue additional requests
for proposals for subsequent crop years under this section.
(2) PRORATED PAYMENTS.—If funding provided for a crop
year is less than the amount otherwise approved by the Secretary or for which approval is sought, the Secretary shall
prorate the payments or approvals in a manner determined
by the Secretary so that the total payments do not exceed
the funding level.
(f) PROPRIETARY INFORMATION.—The Secretary shall protect
proprietary information provided to the Secretary for the purpose
of administering this section.
(g) PROGRAM COMPLIANCE AND PENALTIES.—
(1) GUARANTEE.—The proponent, if approved, shall be
required to guarantee that the oilseed on which a payment
is made by the Secretary under this section is used for human
consumption as described in the proposal, as approved by the
Secretary.
(2) NONCOMPLIANCE.—If oilseeds on which a payment is
made by the Secretary under this section are not actually
used for the purpose the payment is made, the proponent
shall be required to pay to the Secretary an amount equal
to, as determined by the Secretary—
(A) in the case of an inadvertent failure, twice the
amount of the payment made by the Secretary under this
section to the producer of the oilseeds; and
(B) in any other case, up to twice the full value of
the oilseeds involved.
(3) DOCUMENTATION.—The Secretary may require such
assurances and documentation as may be needed to enforce
the guarantee.
(4) ADDITIONAL PENALTIES.—
(A) IN GENERAL.—In addition to payments required
under paragraph (2), the Secretary may impose penalties
on additional persons that use oilseeds the use of which
is restricted under this section for a purpose other than
the intended use.
(B) AMOUNT.—The amount of a penalty under this
paragraph shall—
(i) be in an amount determined appropriated by
the Secretary; but
(ii) not to exceed twice the full value of the oilseeds.

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

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

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

SEC. 1608. ASSIGNMENT OF PAYMENTS.

Applicability.

(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.

7 USC 8785.

SEC. 1609. TRACKING OF BENEFITS.

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

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

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7 USC 8786.

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

Deadline.

(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

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(2) preclude the issuance of payments to, and on behalf
of, deceased individuals that were not eligible for the payments.
(b) COORDINATION.—At least twice each year, the Secretary
shall reconcile the social security numbers of all individuals who
receive payments under this title, whether directly or indirectly,
with the Social Security Administration to determine if the individuals are alive.

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SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM.

7 USC 8787.

(a) DEFINITIONS.—In this section:
(1) ELIGIBLE HARD WHITE WHEAT SEED.—The term ‘‘eligible
hard white wheat seed’’ means hard white wheat seed that,
as determined by the Secretary, is—
(A) certified;
(B) of a variety that is suitable for the State in which
the seed will be planted;
(C) rated at least superior with respect to quality;
and
(D) specifically approved under a seed establishment
program established by the State Department of Agriculture and the State Wheat Commission of the 1 or more
States in which the seed will be planted.
(2) PROGRAM.—The term ‘‘program’’ means the hard white
wheat development program established under subsection
(b)(1).
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture, in consultation with the State Departments
of Agriculture and the State Wheat Commissions of the States
in regions in which hard white wheat is produced, as determined by the Secretary.
(b) ESTABLISHMENT.—
(1) IN GENERAL.—Subject to the availability of appropriations, the Secretary shall establish a hard white wheat development program in accordance with paragraph (2) to promote
the establishment of hard white wheat as a viable market
class of wheat in the United States by encouraging production
of at least 240,000,000 bushels of hard white wheat by 2012.
(2) PAYMENTS.—
(A) IN GENERAL.—Subject to subparagraphs (B) and
(C) and subsection (c), if funds are made available for
any of the 2009 through 2012 crops of hard white wheat,
the Secretary shall make available incentive payments to
producers of those crops.
(B) ACREAGE LIMITATION.—The Secretary shall carry
out subparagraph (A) subject to a regional limitation determined by the Secretary on the number of acres for which
payments may be received that takes into account planting
history and potential planting, but does not exceed a total
of 2,900,000 acres or the equivalent volume of production
based on a yield of 50 bushels per acre.
(C) PAYMENT LIMITATIONS.—Payments to producers on
a farm described in subparagraph (A) shall be—
(i) in an amount that is not less than $0.20 per
bushel; and
(ii) in an amount that is not less than $2.00 per
acre for planting eligible hard white wheat seed.

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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.
7 USC 8788.

SEC. 1613. DURUM WHEAT QUALITY PROGRAM.

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

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7 USC 8789.

SEC. 1614. STORAGE FACILITY LOANS.

(a) IN GENERAL.—As soon as practicable after the date of enactment of this Act, the Secretary shall establish a storage facility
loan program to provide funds for producers of grains, oilseeds,
pulse crops, hay, renewable biomass, and other storable commodities (other than sugar), as determined by the Secretary, to construct
or upgrade storage and handling facilities for the commodities.
(b) ELIGIBLE PRODUCERS.—A storage facility loan under this
section shall be made available to any producer described in subsection (a) that, as determined by the Secretary—
(1) has a satisfactory credit history;
(2) has a need for increased storage capacity; and
(3) demonstrates an ability to repay the loan.
(c) TERM OF LOANS.—A storage facility loan under this section
shall have a maximum term of 12 years.
(d) LOAN AMOUNT.—The maximum principal amount of a storage facility loan under this section shall be $500,000.
(e) LOAN DISBURSEMENTS.—The Secretary shall provide for 1
partial disbursement of loan principal and 1 final disbursement
of loan principal, as determined to be appropriate and subject
to acceptable documentation, to facilitate the purchase and construction of eligible facilities.
(f) LOAN SECURITY.—Approval of a storage facility loan under
this section shall—
(1) require the borrower to provide loan security to the
Secretary, in the form of—
(A) a lien on the real estate parcel on which the storage
facility is located; or
(B) such other security as is acceptable to the Secretary;
(2) under such rules and regulations as the Secretary may
prescribe, not require a severance agreement from the holder
of any prior lien on the real estate parcel on which the storage
facility is located, if the borrower—
(A) agrees to increase the down payment on the storage
facility by an amount determined appropriate by the Secretary; or

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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 subclause (II), a committee established’’; and
(3) by adding at the end the following:
‘‘(II) COMBINATION OR CONSOLIDATION OF
AREAS.—A committee established by combining or
consolidating 2 or more county or area committees
shall consist of not fewer than 3 nor more than
11 members that—
‘‘(aa) are fairly representative of the agricultural producers within the area covered by
the county, area, or local committee; and
‘‘(bb) are elected by the agricultural producers that participate or cooperate in programs administered within the area under the
jurisdiction of the county, area, or local committee.
‘‘(III) REPRESENTATION OF SOCIALLY DISADVANTAGED FARMERS AND RANCHERS.—The Secretary
shall develop procedures to maintain representation of socially disadvantaged farmers and
ranchers on combined or consolidated committees.
‘‘(IV) ELIGIBILITY FOR MEMBERSHIP.—Notwithstanding any other producer eligibility requirements for service on county or area committees,
if a county or area is consolidated or combined,
a producer shall be eligible to serve only as a
member of the county or area committee that the
producer elects to administer the farm records of
the producer.’’.

Procedures.

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SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES.

Public Law 108–470 (7 U.S.C. 7416a) is amended—
(1) in subsection (a), by striking ‘‘may’’ and inserting ‘‘shall’’;
and
(2) by adding at the end the following:
‘‘(c) PROHIBITION ON CHARGING CERTAIN FEES.—The Secretary
may not charge any fees or related costs for the collection of commodity assessments pursuant to this Act.’’.

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7 USC 8790.

PUBLIC LAW 110–246—JUNE 18, 2008

SEC. 1617. SIGNATURE AUTHORITY.

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

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SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY.
Deadline.
Reports.

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

7 USC 8791.

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.—

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 1751

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

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SEC. 1620. LEASING OF OFFICE SPACE.
Deadline.
Reports.

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

7 USC 8792.

SEC.

1621.

GEOGRAPHICALLY
RANCHERS.

DISADVANTAGED

FARMERS

AND

(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).
DISADVANTAGED
FARMER
OR
(2)
GEOGRAPHICALLY
RANCHER.—The term ‘‘geographically disadvantaged farmer or
rancher’’ has the meaning given the term in section 10906(a)
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 2204 note; Public Law 107–171).
(b) AUTHORIZATION.—Subject to the availability of funds under
subsection (d), the Secretary may provide geographically disadvantaged farmers or ranchers direct reimbursement payments for
activities described in subsection (c).
(c) TRANSPORTATION.—
(1) IN GENERAL.—Subject to paragraphs (2) and (3), the
Secretary may provide direct reimbursement payments to a
geographically disadvantaged farmer or rancher to transport
an agricultural commodity, or inputs used to produce an agricultural commodity, during a fiscal year.
(2) PROOF OF ELIGIBILITY.—To be eligible to receive assistance under paragraph (1), a geographically disadvantaged
farmer or rancher shall demonstrate to the Secretary that
transportation of the agricultural commodity or inputs occurred
over a distance of more than 30 miles, as determined by the
Secretary.
(3) AMOUNT.—
(A) IN GENERAL.—Subject to paragraph (2), the amount
of direct reimbursement payments made to a geographically
disadvantaged farmer or rancher under this section for
a fiscal year shall equal the product obtained by multiplying—
(i) the amount of costs incurred by the geographically disadvantaged farmer or rancher for transportation of the agricultural commodity or inputs during
the fiscal year; and
(ii)(I) the percentage of the allowance for that fiscal
year under section 5941 of title 5, United States Code,

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122 STAT. 1753

for Federal employees stationed in Alaska and Hawaii;
or
(II) in the case of an insular area (as defined
in section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103)), a comparable percentage of the allowance for
the fiscal year, as determined by the Secretary.
(B) LIMITATION.—The total amount of direct reimbursement payments provided by the Secretary under this section shall not exceed $15,000,000 for a fiscal year.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2009 through 2012.
SEC. 1622. IMPLEMENTATION.

7 USC 8793.

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

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

(a) BEGINNING FARMER OR RANCHER.—Section 1201(a) of the
Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended—
(1) by redesignating paragraphs (2) through (6), (7) through
(11), (12), (13) through (15), (16), (17), and (18) as paragraphs
(3) through (7), (9) through (13), (15), (20) through (22), (24),
(26), and (27), respectively; and
(2) by inserting after paragraph (1) the following new paragraph:
‘‘(2) BEGINNING FARMER OR RANCHER.—The term ‘beginning
farmer or rancher’ has the meaning given the term in section
343(a)(8) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a)(8)).’’.
(b) FARM.—Section 1201(a) of the Food Security Act of 1985
(16 U.S.C. 3801(a)) is amended by inserting after paragraph (7),
as redesignated by subsection (a)(1), the following new paragraph:
‘‘(8) FARM.—The term ‘farm’ means a farm that—
‘‘(A) is under the general control of one operator;
‘‘(B) has one or more owners;
‘‘(C) consists of one or more tracts of land, whether
or not contiguous;

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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 paragraph:
‘‘(14) INDIAN TRIBE.—The term ‘Indian tribe’ has the
meaning given the term in section 4(e) of the Indian SelfDetermination and Education Assistance Act (25 U.S.C.
450b(e)).’’.
(d) INTEGRATED PEST MANAGEMENT; LIVESTOCK; NONINDUSTRIAL PRIVATE FOREST LAND; PERSON AND LEGAL ENTITY.—Section
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is
amended by inserting after paragraph (15), as redesignated by
subsection (a)(1), the following new paragraphs:
‘‘(16)
INTEGRATED
PEST
MANAGEMENT.—The
term
‘integrated pest management’ means a sustainable approach
to managing pests by combining biological, cultural, physical,
and chemical tools in a way that minimizes economic, health,
and environmental risks.
‘‘(17) LIVESTOCK.—The term ‘livestock’ means all animals
raised on farms, as determined by the Secretary.
‘‘(18) NONINDUSTRIAL PRIVATE FOREST LAND.—The term
‘nonindustrial private forest land’ means rural land, as determined by the Secretary, that—
‘‘(A) has existing tree cover or is suitable for growing
trees; and
‘‘(B) is owned by any nonindustrial private individual,
group, association, corporation, Indian tribe, or other private legal entity that has definitive decisionmaking
authority over the land.
‘‘(19) PERSON AND LEGAL ENTITY.—For purposes of applying
payment limitations under subtitle D, the terms ‘person’ and
‘legal entity’ have the meanings given those terms in section
1001(a) of this Act (7 U.S.C. 1308(a)).’’.
(e) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—Section
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is
amended by inserting after paragraph (22), as redesignated by
subsection (a)(1), the following new paragraph:
‘‘(23) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The
term ‘socially disadvantaged farmer or rancher’ has the
meaning given the term in section 2501(e)(2) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e)(2)).’’.
(f) TECHNICAL ASSISTANCE.—Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting after
paragraph (24), as redesignated by subsection (a)(1), the following
new paragraph:
‘‘(25) TECHNICAL ASSISTANCE.—The term ‘technical assistance’ means technical expertise, information, and tools necessary for the conservation of natural resources on land active
in agricultural, forestry, or related uses. The term includes
the following:

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122 STAT. 1755

‘‘(A) Technical services provided directly to farmers,
ranchers, and other eligible entities, such as conservation
planning, technical consultation, and assistance with
design and implementation of conservation practices.
‘‘(B) Technical infrastructure, including activities, processes, tools, and agency functions needed to support
delivery of technical services, such as technical standards,
resource inventories, training, data, technology, monitoring,
and effects analyses.’’.

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

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

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PUBLIC LAW 110–246—JUNE 18, 2008
1211 for any subsequent crop year if, prior to the beginning
of the subsequent crop year, the Secretary determines that
the person is actively applying a conservation plan according
to the schedule specified in the plan.’’.

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

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

Subtitle B—Conservation Reserve Program
SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM.

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

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

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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 Chesapeake Bay Region’’.
SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES.

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

(a) REVISED PROGRAM.—
(1) IN GENERAL.—Title XII of the Food Security Act of
1985 is amended by inserting after section 1231 (16 U.S.C.
3831) the following new section:

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

16 USC 3831b.

‘‘(a) PROGRAM REQUIRED.—
‘‘(1) IN GENERAL.—During the 2008 through 2012 fiscal
years, the Secretary shall carry out a program in each State
under which the Secretary shall enroll eligible acreage
described in subsection (b).
‘‘(2) PARTICIPATION AMONG STATES.—The Secretary shall
ensure, to the maximum extent practicable, that owners and
operators in each State have an equitable opportunity to participate in the program established under this section.
‘‘(b) ELIGIBLE ACREAGE.—
‘‘(1) WETLAND AND RELATED LAND.—Subject to subsections
(c) and (d), an owner or operator may enroll in the conservation
reserve, pursuant to the program established under this section,
land—
‘‘(A) that is wetland (including a converted wetland
described in section 1222(b)(1)(A)) that had a cropping history during at least 3 of the immediately preceding 10
crop years;
‘‘(B) on which a constructed wetland is to be developed
that will receive flow from a row crop agriculture drainage

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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 aquaculture in any year during the period of calendar years
2002 through 2007; or
‘‘(D) that, after January 1, 1990, and before December
31, 2002, was—
‘‘(i) cropped during at least 3 of 10 crop years;
and
‘‘(ii) subject to the natural overflow of a prairie
wetland.
‘‘(2) BUFFER ACREAGE.—Subject to subsections (c) and (d),
an owner or operator may enroll in the conservation reserve,
pursuant to the program established under this section, buffer
acreage that—
‘‘(A) with respect to land described in subparagraph
(A), (B), or (C) of paragraph (1)—
‘‘(i) is contiguous to such land
‘‘(ii) is used to protect such land; and
‘‘(iii) is of such width as the Secretary determines
is necessary to protect such land, taking into consideration and accommodating the farming practices
(including the straightening of boundaries to accommodate machinery) used with respect to the cropland
that surrounds such land; and
‘‘(B) with respect to land described in subparagraph
(D) of paragraph (1), enhances a wildlife benefit to the
extent practicable in terms of upland to wetland ratios,
as determined by the Secretary.
‘‘(c) PROGRAM LIMITATIONS.—
‘‘(1) ACREAGE LIMITATION.—The Secretary may enroll in
the conservation reserve, pursuant to the program established
under this section, not more than—
‘‘(A) 100,000 acres in any State; and
‘‘(B) a total of 1,000,000 acres.
‘‘(2) RELATIONSHIP TO MAXIMUM ENROLLMENT.—Subject to
paragraph (3), any acreage enrolled in the conservation reserve
under this section shall be considered acres maintained in
the conservation reserve.
‘‘(3) RELATIONSHIP TO OTHER ENROLLED ACREAGE.—Acreage
enrolled in the conservation reserve under this section shall
not affect for any fiscal year the quantity of—
‘‘(A) acreage enrolled to establish conservation buffers
as part of the program announced on March 24, 1998
(63 Fed. Reg. 14109); or
‘‘(B) acreage enrolled into the conservation reserve
enhancement program announced on May 27, 1998 (63
Fed. Reg. 28965).
‘‘(4) REVIEW; POTENTIAL INCREASE IN ENROLLMENT ACREAGE.—The Secretary shall conduct a review of the program
established under this section with respect to each State that
has enrolled land in the conservation reserve pursuant to the
program. As a result of the review, the Secretary may increase
the number of acres that may be enrolled in a State under
the program to not more than 200,000 acres, notwithstanding
paragraph (1)(A).
‘‘(d) OWNER OR OPERATOR ENROLLMENT LIMITATIONS.—

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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 determined by the Secretary;
‘‘(2) to establish vegetative cover (which may include
emerging vegetation in water and bottomland hardwoods,
cypress, and other appropriate tree species) on the eligible
acreage, as determined by the Secretary;
‘‘(3) to a general prohibition of commercial use of the
enrolled land; and
‘‘(4) to carry out other duties described in section 1232.
‘‘(f) DUTIES OF THE SECRETARY.—
‘‘(1) IN GENERAL.—Except as provided in paragraphs (2)
and (3), in return for a contract entered into under this section,
the Secretary shall—
‘‘(A) make payments to the owner or operator based
on rental rates for cropland; and
‘‘(B) provide assistance to the owner or operator in
accordance with sections 1233 and 1234.
‘‘(2) CONTRACT OFFERS AND PAYMENTS.—The Secretary shall
use the method of determination described in section
1234(c)(2)(B) to determine the acceptability of contract offers
and the amount of rental payments under this section.
‘‘(3) INCENTIVES.—The amounts payable to owners and
operators in the form of rental payments under contracts
entered into under this section shall reflect incentives that
are provided to owners and operators to enroll filterstrips in
the conservation reserve under section 1234.’’.
(2) REPEAL OF SUPERCEDED PROGRAM.—Section 1231 of the
Food Security Act of 1985 (16 U.S.C. 3831) is amended—
(A) by striking subsection (h); and

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(B) by redesignating subsections (i) and (j) as subsections (h) and (i), respectively.
(b) CONFORMING CHANGES TO EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.—Subsection (k) of section 1231 of
the Food Security Act of 1985 (16 U.S.C. 3831) is amended—
(1) by striking ‘‘(k) EMERGENCY FORESTRY CONSERVATION
RESERVE PROGRAM.—’’ and inserting the following:
16 USC 3831a.

‘‘SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.’’;

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

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

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

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122 STAT. 1761

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

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

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under subsection (a)(8) on land that is subject to a contract under
this subchapter, the Secretary shall reduce the rental payment
otherwise payable under the contract by an amount commensurate
with the economic value of the authorized activity.’’.
SEC.

2109.

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

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

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

(a) EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS.—Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c))
is amended by striking paragraph (3) and inserting the following
new paragraph:
‘‘(3) ACCEPTANCE OF CONTRACT OFFERS.—
‘‘(A) EVALUATION OF OFFERS.—In determining the
acceptability of contract offers, the Secretary may take
into consideration the extent to which enrollment of the
land that is the subject of the contract offer would improve
soil resources, water quality, or wildlife habitat or provide
other environmental benefits.
‘‘(B) ESTABLISHMENT OF DIFFERENT CRITERIA IN VARIOUS STATES AND REGIONS.—The Secretary may establish

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122 STAT. 1763

different criteria for determining the acceptability of contract offers in various States and regions of the United
States based on the extent to which water quality or wildlife habitat may be improved or erosion may be abated.
‘‘(C) LOCAL PREFERENCE.—In determining the acceptability of contract offers for new enrollments, the Secretary
shall accept, to the maximum extent practicable, an offer
from an owner or operator that is a resident of the county
in which the land is located or of a contiguous county
if, as determined by the Secretary, the land would provide
at least equivalent conservation benefits to land under
competing offers.’’.
(b) ANNUAL SURVEY OF DRYLAND AND IRRIGATED CASH RENTAL
RATES.—
(1) ANNUAL ESTIMATES REQUIRED.—Section 1234(c) of the
Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended by
adding at the end the following new paragraph:
‘‘(5) RENTAL RATES.—
‘‘(A) ANNUAL ESTIMATES.—The Secretary (acting
through the National Agricultural Statistics Service) shall
conduct an annual survey of per acre estimates of county
average market dryland and irrigated cash rental rates
for cropland and pastureland in all counties or equivalent
subdivisions within each State that have 20,000 acres or
more of cropland and pastureland.
‘‘(B) PUBLIC AVAILABILITY OF ESTIMATES.—The estimates derived from the annual survey conducted under
subparagraph (A) shall be maintained on a website of the
Department of Agriculture for use by the general public.’’.
(2) FIRST SURVEY.—The first survey required by paragraph
(5) of section 1234(c) of the Food Security Act of 1985 (16
U.S.C. 3834(c)), as added by subsection (a), shall be conducted
not later than 1 year after the date of enactment of this Act.
(c) PAYMENT LIMITATIONS.—Section 1234(f) of the Food Security
Act of 1985 (16 U.S.C. 3834(f)) is amended—
(1) in paragraph (1), by striking ‘‘made to a person’’ and
inserting ‘‘received by a person or legal entity, directly or
indirectly,’’;
(2) by striking paragraph (2); and
(3) in paragraph (4), by striking ‘‘any person’’ and inserting
‘‘any person or legal entity’’.

Website.

Deadline.
16 USC 3834
note.

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

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

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Contracts.

Effective date.

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 operator, to make conservation and land improvements;
and
‘‘(ii) allow the covered farmer or rancher to begin
the certification process under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.);
‘‘(B) beginning on the date of termination of the contract, require the retired or retiring owner or operator
to sell or lease (under a long-term lease or a lease with
an option to purchase) to the covered farmer or rancher
the land subject to the contract for production purposes;
‘‘(C) require the covered farmer or rancher to develop
and implement a conservation plan;
‘‘(D) provide to the covered farmer or rancher an opportunity to enroll in the conservation stewardship program
or the environmental quality incentives program by not
later than the date on which the farmer or rancher takes
possession of the land through ownership or lease; and
‘‘(E) continue to make annual payments to the retired
or retiring owner or operator for not more than an additional 2 years after the date of termination of the contract,
if the retired or retiring owner or operator is not a family
member (as defined in section 1001A(b)(3)(B) of this Act)
of the covered farmer or rancher.
‘‘(2) REENROLLMENT.—The Secretary shall provide a covered farmer or rancher with the option to reenroll any
applicable partial field conservation practice that—
‘‘(A) is eligible for enrollment under the continuous
signup requirement of section 1231(h)(4)(B); and
‘‘(B) is part of an approved conservation plan.’’.

Subtitle C—Wetlands Reserve Program

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

Subsection (a) of section 1237 of the Food Security Act of
1985 (16 U.S.C. 3837) is amended to read as follows:
‘‘(a) ESTABLISHMENT AND PURPOSES.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish a wetlands reserve program to assist owners of eligible lands in
restoring and protecting wetlands.

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‘‘(2) PURPOSES.—The purposes of the wetlands reserve program are to restore, protect, or enhance wetlands on private
or tribal lands that are eligible under subsections (c) and (d).’’.
SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS.

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

Contracts.

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

(a) IN GENERAL.—Section 1237(c) of the Food Security Act
of 1985 (16 U.S.C. 3837(c)) is amended—
(1) in the matter preceding paragraph (1)—
(A) by striking ‘‘2007 calendar’’ and inserting ‘‘2012
fiscal’’; and
(B) by inserting ‘‘private or tribal’’ before ‘‘land’’ the
second place it appears;
(2) by striking paragraph (2) and inserting the following
new paragraph:
‘‘(2) such land is—
‘‘(A) farmed wetland or converted wetland, together
with the adjacent land that is functionally dependent on
the wetlands, except that converted wetland with respect
to which the conversion was not commenced prior to
December 23, 1985, shall not be eligible to be enrolled
in the program under this section; or
‘‘(B) cropland or grassland that was used for agricultural production prior to flooding from the natural overflow
of a closed basin lake or pothole, as determined by the
Secretary, together (where practicable) with the adjacent
land that is functionally dependent on the cropland or
grassland; and’’.
(b) CHANGE OF OWNERSHIP.—Section 1237E(a) of the Food Security Act of 1985 (16 U.S.C. 3837e(a)) is amended by striking ‘‘in
the preceding 12 months’’ and inserting ‘‘during the preceding 7year 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.—

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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 paragraph (1) for the State during the previous fiscal year.’’.

SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS.

Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16
U.S.C. 3837a(b)(2)(B)) is amended—
(1) in clause (i), by striking ‘‘or’’ at the end;
(2) in clause (ii), by striking ‘‘; and’’ and inserting ‘‘; or’’;
and
(3) by adding at the end the following new clause:
‘‘(iii) to meet habitat needs of specific wildlife species; and’’.
SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS
RESERVE PROGRAM.

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

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

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

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

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

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

Section 1237D(c)(1) of the Food Security Act of 1985 (16 U.S.C.
3837d(c)(1)) is amended—
(1) by striking ‘‘The total amount of easement payments
made to a person’’ and inserting ‘‘The total amount of payments
that a person or legal entity may receive, directly or indirectly,’’;
and
(2) by inserting ‘‘or under 30-year contracts’’ before the
period at the end.
SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE
AGREEMENTS FOR WETLANDS RESERVE ENHANCEMENT.

Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C.
3837d(c)) is amended by striking paragraph (4).
SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF CONSERVATION EASEMENTS.

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

Subtitle D—Conservation Stewardship
Program
SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM.

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

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

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16 USC 3838d.

‘‘SEC. 1238D. DEFINITIONS.

‘‘In this subchapter:

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

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‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

16 USC 3838e.

‘‘(a) ESTABLISHMENT AND PURPOSE.—During each of fiscal years
2009 through 2012, the Secretary shall carry out a conservation
stewardship program to encourage producers to address resource
concerns in a comprehensive manner—
‘‘(1) by undertaking additional conservation activities; and
‘‘(2) by improving, maintaining and managing existing conservation activities.
‘‘(b) ELIGIBLE LAND.—

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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 enrollment in the program, except that not more than 10 percent
of the annual acres enrolled nationally in any fiscal year may
be nonindustrial private forest land.
‘‘(3) AGRICULTURAL OPERATION.—Eligible land shall include
all acres of an agricultural operation of a producer, whether
or not contiguous, that are under the effective control of the
producer at the time the producer enters into a stewardship
contract, and is operated by the producer with equipment,
labor, management, and production or cultivation practices that
are substantially separate from other agricultural operations,
as determined by the Secretary.
‘‘(c) EXCLUSIONS.—
‘‘(1) LAND ENROLLED IN OTHER CONSERVATION PROGRAMS.—
Subject to paragraph (2), the following land is not be eligible
for enrollment in the program:
‘‘(A) Land enrolled in the conservation reserve program.
‘‘(B) Land enrolled in the wetlands reserve program.
‘‘(C) Land enrolled in the grassland reserve program.
‘‘(2) CONVERSION TO CROPLAND.—Land used for crop production after the date of enactment of the Food, Conservation,
and Energy Act of 2008 that had not been planted, considered
to be planted, or devoted to crop production for at least 4
of the 6 years preceding that date shall not be the basis for
any payment under the program, unless the land does not
meet the requirement because—
‘‘(A) the land had previously been enrolled in the conservation reserve program;
‘‘(B) the land has been maintained using long-term
crop rotation practices, as determined by the Secretary;
or
‘‘(C) the land is incidental land needed for efficient
operation of the farm or ranch, as determined by the Secretary.

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16 USC 3838f.

‘‘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

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the stewardship threshold for at least one resource concern;
and
‘‘(2) would, at a minimum, meet or exceed the stewardship
threshold for at least 1 priority resource concern by the end
of the stewardship contract by—
‘‘(A) installing and adopting additional conservation
activities; and
‘‘(B) improving, maintaining, and managing conservation activities in place at the operation of the producer
at the time the contract offer is accepted by the Secretary.
‘‘(b) EVALUATION OF CONTRACT OFFERS.—
‘‘(1) RANKING OF APPLICATIONS.—In evaluating contract
offers made by producers to enter into contracts under the
program, the Secretary shall rank applications based on—
‘‘(A) the level of conservation treatment on all
applicable priority resource concerns at the time of application, based to the maximum extent practicable on conservation measurement tools;
‘‘(B) the degree to which the proposed conservation
treatment on applicable priority resource concerns effectively increases conservation performance, based to the
maximum extent possible on conservation measurement
tools;
‘‘(C) the number of applicable priority resource concerns
proposed to be treated to meet or exceed the stewardship
threshold by the end of the contract;
‘‘(D) the extent to which other resource concerns, in
addition to priority resource concerns, will be addressed
to meet or exceed the stewardship threshold by the end
of the contract period; and
‘‘(E) the extent to which the actual and anticipated
environmental benefits from the contract are provided at
the least cost relative to other similarly beneficial contract
offers.
‘‘(2) PROHIBITION.—The Secretary may not assign a higher
priority to any application because the applicant is willing
to accept a lower payment than the applicant would otherwise
be eligible to receive.
‘‘(3) ADDITIONAL CRITERIA.—The Secretary may develop and
use such additional criteria for evaluating applications to enroll
in the program that the Secretary determines are necessary
to ensure that national, State, and local conservation priorities
are effectively addressed.
‘‘(c) ENTERING INTO CONTRACTS.—After a determination that
a producer is eligible for the program under subsection (a), and
a determination that the contract offer ranks sufficiently high under
the evaluation criteria under subsection (b), the Secretary shall
enter into a conservation stewardship contract with the producer
to enroll the land to be covered by the contract.
‘‘(d) CONTRACT PROVISIONS.—
‘‘(1) TERM.—A conservation stewardship contract shall be
for a term of 5 years.
‘‘(2) PROVISIONS.—The conservation stewardship contract
of a producer shall—
‘‘(A) state the amount of the payment the Secretary
agrees to make to the producer for each year of the conservation stewardship contract under section 1238G(e);

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‘‘(B) require the producer—
‘‘(i) to implement during the term of the conservation stewardship contract the conservation stewardship
plan approved by the Secretary;
‘‘(ii) to maintain, and make available to the Secretary at such times as the Secretary may request,
appropriate records showing the effective and timely
implementation of the conservation stewardship contract; and
‘‘(iii) not to engage in any activity during the term
of the conservation stewardship contract on the eligible
land covered by the contract that would interfere with
the purposes of the conservation stewardship contract;
‘‘(C) permit all economic uses of the land that—
‘‘(i) maintain the agricultural nature of the land;
and
‘‘(ii) are consistent with the conservation purposes
of the conservation stewardship contract;
‘‘(D) include a provision to ensure that a producer
shall not be considered in violation of the contract for
failure to comply with the contract due to circumstances
beyond the control of the producer, including a disaster
or related condition, as determined by the Secretary; and
‘‘(E) include such other provisions as the Secretary
determines necessary to ensure the purposes of the program are achieved.
‘‘(e) CONTRACT RENEWAL.—At the end of an initial conservation
stewardship contract of a producer, the Secretary may allow the
producer to renew the contract for one additional five-year period
if the producer—
‘‘(1) demonstrates compliance with the terms of the existing
contract; and
‘‘(2) agrees to adopt new conservation activities, as determined by the Secretary.
‘‘(f) MODIFICATION.—The Secretary may allow a producer to
modify a stewardship contract if the Secretary determines that
the modification is consistent with achieving the purposes of the
program.
‘‘(g) CONTRACT TERMINATION.—
‘‘(1) VOLUNTARY TERMINATION.—A producer may terminate
a conservation stewardship contract if the Secretary determines
that termination would not defeat the purposes of the program.
‘‘(2) INVOLUNTARY TERMINATION.—The Secretary may
terminate a contract under this subchapter if the Secretary
determines that the producer violated the contract.
‘‘(3) REPAYMENT.—If a contract is terminated, the Secretary
may, consistent with the purposes of the program—
‘‘(A) allow the producer to retain payments already
received under the contract; or
‘‘(B) require repayment, in whole or in part, of payments already received and assess liquidated damages.
‘‘(4) CHANGE OF INTEREST IN LAND SUBJECT TO A CONTRACT.—
‘‘(A) IN GENERAL.—Except as provided in paragraph
(B), a change in the interest of a producer in land covered
by a contract under this chapter shall result in the termination of the contract with regard to that land.

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‘‘(B) TRANSFER OF DUTIES AND RIGHTS.—Subparagraph
(A) shall not apply if—
‘‘(i) within a reasonable period of time (as determined by the Secretary) after the date of the change
in the interest in land covered by a contract under
the program, the transferee of the land provides written notice to the Secretary that all duties and rights
under the contract have been transferred to, and
assumed by, the transferee; and
‘‘(ii) the transferee meets the eligibility requirements of the program.
‘‘(h) COORDINATION WITH ORGANIC CERTIFICATION.—The Secretary shall establish a transparent means by which producers
may initiate organic certification under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. seq.) while participating in
a contract under this subchapter.
‘‘(i) ON-FARM RESEARCH AND DEMONSTRATION OR PILOT
TESTING.—The Secretary may approve a contract offer under this
subchapter that includes—
‘‘(1) on-farm conservation research and demonstration
activities; and
‘‘(2) pilot testing of new technologies or innovative conservation practices.

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

16 USC 3838g.

‘‘(a) IN GENERAL.—To achieve the conservation goals of a contract under the conservation stewardship program, the Secretary
shall—
‘‘(1) make the program available to eligible producers on
a continuous enrollment basis with 1 or more ranking periods,
one of which shall occur in the first quarter of each fiscal
year;
‘‘(2) identify not less than 3 nor more than 5 priority
resource concerns in a particular watershed or other appropriate region or area within a State; and
‘‘(3) develop reliable conservation measurement tools for
purposes of carrying out the program.
‘‘(b) ALLOCATION TO STATES.—The Secretary shall allocate acres
to States for enrollment, based—
‘‘(1) primarily on each State’s proportion of eligible acres
under section 1238E(b)(1) to the total number of eligible acres
in all States; and
‘‘(2) also on consideration of—
‘‘(A) the extent and magnitude of the conservation
needs associated with agricultural production in each State;
‘‘(B) the degree to which implementation of the program in the State is, or will be, effective in helping producers address those needs; and
‘‘(C) other considerations to achieve equitable
geographic distribution of funds, as determined by the Secretary.
‘‘(c) SPECIALTY CROP AND ORGANIC PRODUCERS.—The Secretary
shall ensure that outreach and technical assistance are available,
and program specifications are appropriate to enable specialty crop
and organic producers to participate in the program.

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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 associated with enrollment or participation in the program.
‘‘(e) CONSERVATION STEWARDSHIP PAYMENTS.—
‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall provide a payment under the program to compensate the producer
for—
‘‘(A) installing and adopting additional conservation
activities; and
‘‘(B) improving, maintaining, and managing conservation activities in place at the operation of the producer
at the time the contract offer is accepted by the Secretary.
‘‘(2) PAYMENT AMOUNT.—The amount of the conservation
stewardship payment shall be determined by the Secretary
and based, to the maximum extent practicable, on the following
factors:
‘‘(A) Costs incurred by the producer associated with
planning, design, materials, installation, labor, management, maintenance, or training.
‘‘(B) Income forgone by the producer.
‘‘(C) Expected environmental benefits as determined
by conservation measurement tools.
‘‘(3) EXCLUSIONS.—A payment to a producer under this
subsection shall not be provided for—
‘‘(A) the design, construction, or maintenance of animal
waste storage or treatment facilities or associated waste
transport or transfer devices for animal feeding operations;
or
‘‘(B) conservation activities for which there is no cost
incurred or income forgone to the producer.
‘‘(4) TIMING OF PAYMENTS.—
‘‘(A) IN GENERAL.—The Secretary shall make payments
as soon as practicable after October 1 of each fiscal year
for activities carried out in the previous fiscal year.
‘‘(B) ADDITIONAL ACTIVITIES.—The Secretary shall
make payments to compensate producers for installation
of additional practices at the time at which the practices
are installed and adopted.
‘‘(f) SUPPLEMENTAL PAYMENTS FOR RESOURCE-CONSERVING
CROP ROTATIONS.—
‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall provide additional payments to producers that, in participating
in the program, agree to adopt resource-conserving crop rotations to achieve beneficial crop rotations as appropriate for
the land of the producers.
‘‘(2) BENEFICIAL CROP ROTATIONS.—The Secretary shall
determine whether a resource-conserving crop rotation is a
beneficial crop rotation eligible for additional payments under
paragraph (1), based on whether the resource-conserving crop
rotation is designed to provide natural resource conservation
and production benefits.

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‘‘(3) ELIGIBILITY.—To be eligible to receive a payment
described in paragraph (1), a producer shall agree to adopt
and maintain beneficial resource-conserving crop rotations for
the term of the contract.
‘‘(4) RESOURCE-CONSERVING CROP ROTATION.—In this subsection, the term ‘resource-conserving crop rotation’ means a
crop rotation that—
‘‘(A) includes at least 1 resource conserving crop (as
defined by the Secretary);
‘‘(B) reduces erosion;
‘‘(C) improves soil fertility and tilth;
‘‘(D) interrupts pest cycles; and
‘‘(E) in applicable areas, reduces depletion of soil moisture or otherwise reduces the need for irrigation.
‘‘(g) PAYMENT LIMITATIONS.—A person or legal entity may not
receive, directly or indirectly, payments under this subchapter that,
in the aggregate, exceed $200,000 for all contracts entered into
during any 5-year period, excluding funding arrangements with
federally recognized Indian tribes or Alaska Native corporations,
regardless of the number of contracts entered into under the program by the person or entity.
‘‘(h) REGULATIONS.—The Secretary shall promulgate regulations
that—
‘‘(1) prescribe such other rules as the Secretary determines
to be necessary to ensure a fair and reasonable application
of the limitations established under subsection (g); and
‘‘(2) otherwise enable the Secretary to carry out the program.
‘‘(i) DATA.—The Secretary shall maintain detailed and segmented data on contracts and payments under the program to
allow for quantification of the amount of payments made for—
‘‘(1) the installation and adoption of additional conservation
activities and improvements to conservation activities in place
on the operation of a producer at the time the conservation
stewardship offer is accepted by the Secretary;
‘‘(2) participation in research, demonstration, and pilot
projects; and
‘‘(3) the development and periodic assessment and evaluation of conservation plans developed under this subchapter.’’.
(b) TERMINATION OF CONSERVATION SECURITY PROGRAM
AUTHORITY; EFFECT ON EXISTING CONTRACTS.—Section 1238A of
the Food Security Act of 1985 (16 U.S.C. 3838a) is amended by
adding at the end the following new subsection:
‘‘(g) PROHIBITION ON CONSERVATION SECURITY PROGRAM CONTRACTS; EFFECT ON EXISTING CONTRACTS.—
‘‘(1) PROHIBITION.—A conservation security contract may
not be entered into or renewed under this subchapter after
September 30, 2008.
‘‘(2) EXCEPTION.—This subchapter, and the terms and
conditions of the conservation security program, shall continue
to apply to—
‘‘(A) conservation security contracts entered into on
or before September 30, 2008; and
‘‘(B) any conservation security contract entered into
after that date, but for which the application for the contract was received during the 2008 sign-up period.

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‘‘(3) EFFECT ON PAYMENTS.—The Secretary shall make payments under this subchapter with respect to conservation security contracts described in paragraph (2) during the remaining
term of the contracts.
‘‘(4) REGULATIONS.—A contract described in paragraph (2)
may not be administered under the regulations issued to carry
out the conservation stewardship program.’’.
(c) REFERENCE TO REDESIGNATED SUBCHAPTER.—Section
1238A(b)(3)(C) of title XII of the Food Security Act of 1985 (16
U.S.C. 3838a(b)(3)(C)) is amended by striking ‘‘subchapter C’’ and
inserting ‘‘subchapter D’’.

Subtitle E—Farmland Protection and
Grassland Reserve

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SEC. 2401. FARMLAND PROTECTION PROGRAM.

(a) DEFINITIONS.—Section 1238H of the Food Security Act of
1985 (16 U.S.C. 3838h) is amended—
(1) by striking paragraph (1) and inserting the following
new paragraph:
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—
‘‘(A) any agency of any State or local government or
an Indian tribe (including a farmland protection board
or land resource council established under State law); or
‘‘(B) any organization that—
‘‘(i) is organized for, and at all times since the
formation of the organization has been operated principally for, 1 or more of the conservation purposes
specified in clause (i), (ii), (iii), or (iv) of section
170(h)(4)(A) of the Internal Revenue Code of 1986;
‘‘(ii) is an organization described in section
501(c)(3) of that Code that is exempt from taxation
under section 501(a) of that Code; and
‘‘(iii) is—
‘‘(I) described in paragraph (1) or (2) of section
509(a) of that Code; or
‘‘(II) described in section 509(a)(3), and is controlled by an organization described in section
509(a)(2), of that Code.’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘that—’’ and inserting ‘‘that is subject to a pending offer for purchase from an eligible
entity and—’’; and
(ii) by striking clauses (i) and (ii) and inserting
the following new clauses:
‘‘(i) has prime, unique, or other productive soil;
‘‘(ii) contains historical or archaeological resources;
or
‘‘(iii) the protection of which will further a State
or local policy consistent with the purposes of the program.’’; and
(B) in subparagraph (B)—
(i) in clause (iv), by striking ‘‘and’’ at the end;
and

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(ii) by striking clause (v) and inserting the following new clauses:
‘‘(v) forest land that—
‘‘(I) contributes to the economic viability of
an agricultural operation; or
‘‘(II) serves as a buffer to protect an agricultural operation from development; and
‘‘(vi) land that is incidental to land described in
clauses (i) through (v), if such land is necessary for
the efficient administration of a conservation easement,
as determined by the Secretary.’’.
(b) FARMLAND PROTECTION.—Section 1238I of the Food Security
Act of 1985 (16 U.S.C. 3838i) is amended to read as follows:

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‘‘SEC. 1238I. FARMLAND PROTECTION PROGRAM.

‘‘(a) ESTABLISHMENT.—The Secretary shall establish and carry
out a farmland protection program under which the Secretary shall
facilitate and provide funding for the purchase of conservation
easements or other interests in eligible land.
‘‘(b) PURPOSE.—The purpose of the program is to protect the
agricultural use and related conservation values of eligible land
by limiting nonagricultural uses of that land.
‘‘(c) COST-SHARE ASSISTANCE.—
‘‘(1) PROVISION OF ASSISTANCE.—The Secretary shall provide cost-share assistance to eligible entities for purchasing
a conservation easement or other interest in eligible land.
‘‘(2) FEDERAL SHARE.—The share of the cost provided by
the Secretary for purchasing a conservation easement or other
interest in eligible land shall not exceed 50 percent of the
appraised fair market value of the conservation easement or
other interest in eligible land.
‘‘(3) NON-FEDERAL SHARE.—
‘‘(A) SHARE PROVIDED BY ELIGIBLE ENTITY.—The eligible
entity shall provide a share of the cost of purchasing a
conservation easement or other interest in eligible land
in an amount that is not less than 25 percent of the
acquisition purchase price.
‘‘(B) LANDOWNER CONTRIBUTION.—As part of the nonFederal share of the cost of purchasing a conservation
easement or other interest in eligible land, an eligible
entity may include a charitable donation or qualified conservation contribution (as defined by section 170(h) of the
Internal Revenue Code of 1986) from the private landowner
from which the conservation easement or other interest
in land will be purchased.
‘‘(d) DETERMINATION OF FAIR MARKET VALUE.—Effective on the
date of enactment of the Food, Conservation, and Energy Act of
2008, the fair market value of the conservation easement or other
interest in eligible land shall be determined on the basis of an
appraisal using an industry approved method, selected by the
eligible entity and approved by the Secretary.
‘‘(e) BIDDING DOWN PROHIBITED.—If the Secretary determines
that 2 or more applications for cost-share assistance are comparable
in achieving the purpose of the program, the Secretary shall not
assign a higher priority to any 1 of those applications solely on
the basis of lesser cost to the program.
‘‘(f) CONDITION ON ASSISTANCE.—

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(1) CONSERVATION PLAN.—Any highly erodible cropland
for which a conservation easement or other interest is purchased using cost-share assistance provided under the program
shall be subject to a conservation plan that requires, at the
option of the Secretary, the conversion of the cropland to less
intensive uses.
‘‘(2) CONTINGENT RIGHT OF ENFORCEMENT.—The Secretary
shall require the inclusion of a contingent right of enforcement
for the Secretary in the terms of a conservation easement
or other interest in eligible land that is purchased using costshare assistance provided under the program.
‘‘(g) AGREEMENTS WITH ELIGIBLE ENTITIES.—
‘‘(1) IN GENERAL.—The Secretary shall enter into agreements with eligible entities to stipulate the terms and conditions under which the eligible entity is permitted to use costshare assistance provided under subsection (c).
‘‘(2) LENGTH OF AGREEMENTS.—An agreement under this
subsection shall be for a term that is—
‘‘(A) in the case of an eligible entity certified under
the process described in subsection (h), a minimum of five
years; and
‘‘(B) for all other eligible entities, at least three, but
not more than five years.
‘‘(3) SUBSTITUTION OF QUALIFIED PROJECTS.—An agreement
shall allow, upon mutual agreement of the parties, substitution
of qualified projects that are identified at the time of the
proposed substitution.
‘‘(4) MINIMUM REQUIREMENTS.—An eligible entity shall be
authorized to use its own terms and conditions, as approved
by the Secretary, for conservation easements and other purchases of interests in land, so long as such terms and conditions—
‘‘(A) are consistent with the purposes of the program;
‘‘(B) permit effective enforcement of the conservation
purposes of such easements or other interests; and
‘‘(C) include a limit on the impervious surfaces to be
allowed that is consistent with the agricultural activities
to be conducted.
‘‘(5) EFFECT OF VIOLATION.—If a violation occurs of a term
or condition of an agreement entered into under this subsection—
‘‘(A) the agreement shall remain in force; and
‘‘(B) the Secretary may require the eligible entity to
refund all or part of any payments received by the entity
under the program, with interest on the payments as determined appropriate by the Secretary.
‘‘(h) CERTIFICATION OF ELIGIBLE ENTITIES.—
‘‘(1) CERTIFICATION PROCESS.—The Secretary shall establish
a process under which the Secretary may—
‘‘(A) directly certify eligible entities that meet established criteria;
‘‘(B) enter into long-term agreements with certified
entities, as authorized by subsection (g)(2)(A); and
‘‘(C) accept proposals for cost-share assistance to certified entities for the purchase of conservation easements
or other interests in eligible land throughout the duration
of such agreements.

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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 agreement—
‘‘(A) a plan for administering easements that is consistent with the purpose of this subchapter;
‘‘(B) the capacity and resources to monitor and enforce
conservation easements or other interests in land; and
‘‘(C) policies and procedures to ensure—
‘‘(i) the long-term integrity of conservation easements or other interests in eligible land;
‘‘(ii) timely completion of acquisitions of easements
or other interests in eligible land; and
‘‘(iii) timely and complete evaluation and reporting
to the Secretary on the use of funds provided by the
Secretary under the program.
‘‘(3) REVIEW AND REVISION.—
‘‘(A) REVIEW.—The Secretary shall conduct a review
of eligible entities certified under paragraph (1) every three
years to ensure that such entities are meeting the criteria
established under paragraph (2).
‘‘(B) REVOCATION.—If the Secretary finds that the certified entity no longer meets the criteria established under
paragraph (2), the Secretary may—
‘‘(i) allow the certified entity a specified period
of time, at a minimum 180 days, in which to take
such actions as may be necessary to meet the criteria;
and
‘‘(ii) revoke the certification of the entity, if after
the specified period of time, the certified entity does
not meet the criteria established in paragraph (2).’’.
SEC. 2402. FARM VIABILITY PROGRAM.

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

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

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‘‘SEC. 1238N. GRASSLAND RESERVE PROGRAM.

16 USC 3838n.

‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary shall establish a grassland reserve program (referred to in this subchapter
as the ‘program’) for the purpose of assisting owners and operators
in protecting grazing uses and related conservation values by
restoring and conserving eligible land through rental contracts,
easements, and restoration agreements.
‘‘(b) ENROLLMENT OF ACREAGE.—
‘‘(1) ACREAGE ENROLLED.—The Secretary shall enroll an
additional 1,220,000 acres of eligible land in the program during
fiscal years 2009 through 2012.
‘‘(2) METHODS OF ENROLLMENT.—The Secretary shall enroll
eligible land in the program through the use of;
‘‘(A) a 10-year, 15-year, or 20-year rental contract;
‘‘(B) a permanent easement; or

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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 subsection (c); and
‘‘(ii) the Secretary determines that the land is of
high ecological value and under significant threat of
conversion to uses other than grazing.
‘‘(B) MAXIMUM ENROLLMENT.—The number of acres of
land enrolled under the priority described in subparagraph
(A) in a calendar year shall not exceed 10 percent of the
total number of acres enrolled in the program in that
calendar year.
‘‘(c) ELIGIBLE LAND DEFINED.—For purposes of the program,
the term ‘eligible land’ means private or tribal land that—
‘‘(1) is grassland, land that contains forbs, or shrubland
(including improved rangeland and pastureland) for which
grazing is the predominant use;
‘‘(2) is located in an area that has been historically dominated by grassland, forbs, or shrubland, and the land—
‘‘(A) could provide habitat for animal or plant populations of significant ecological value if the land—
‘‘(i) is retained in its current use; or
‘‘(ii) is restored to a natural condition;
‘‘(B) contains historical or archaeological resources; or
‘‘(C) would address issues raised by State, regional,
and national conservation priorities; or
‘‘(3) is incidental to land described in paragraph (1) or
(2), if the incidental land is determined by the Secretary to
be necessary for the efficient administration of a rental contract
or easement under the program.

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16 USC 3838o.

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

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

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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 easement signed by persons holding a security interest or any
vested interest in the land;
‘‘(4) to provide proof of unencumbered title to the underlying fee interest in the land that is the subject of the easement;
‘‘(5) to comply with the terms of the easement and, when
applicable, a restoration agreement;
‘‘(6) to implement a grazing management plan, as approved
by the Secretary, which may be modified upon mutual agreement of the parties; and
‘‘(7) to eliminate any existing cropland base and allotment
history for the land under another program administered by
the Secretary.
‘‘(c) RESTORATION AGREEMENTS.—
‘‘(1) WHEN APPLICABLE.—To be eligible for cost-share assistance to restore eligible land subject to a rental contract or
an easement under the program, the owner or operator of
the land shall agree to comply with the terms of a restoration
agreement.
‘‘(2) TERMS AND CONDITIONS.—The Secretary shall prescribe
the terms and conditions of a restoration agreement by which
eligible land that is subject to a rental contract or easement
under the program shall be restored.
‘‘(3) DUTIES.—The restoration agreement shall describe the
respective duties of the owner or operator and the Secretary,
including the Federal share of restoration payments and technical assistance.
‘‘(d) TERMS AND CONDITIONS APPLICABLE TO RENTAL CONTRACTS
AND EASEMENTS.—
‘‘(1) PERMISSIBLE ACTIVITIES.—The terms and conditions
of a rental contract or easement under the program shall
permit—
‘‘(A) common grazing practices, including maintenance
and necessary cultural practices, on the land in a manner
that is consistent with maintaining the viability of grassland, forb, and shrub species appropriate to that locality;
‘‘(B) haying, mowing, or harvesting for seed production,
subject to appropriate restrictions during the nesting season for birds in the local area that are in significant decline
or are conserved in accordance with Federal or State law,
as determined by the State Conservationist;
‘‘(C) fire presuppression, rehabilitation, and construction of fire breaks; and
‘‘(D) grazing related activities, such as fencing and
livestock watering.
‘‘(2) PROHIBITIONS.—The terms and conditions of a rental
contract or easement under the program shall prohibit—
‘‘(A) the production of crops (other than hay), fruit
trees, vineyards, or any other agricultural commodity that
is inconsistent with maintaining grazing land; and

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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 program.
‘‘(e) VIOLATIONS.—On a violation of the terms or conditions
of a rental contract, easement, or restoration agreement entered
into under this section—
‘‘(1) the contract or easement shall remain in force; and
‘‘(2) the Secretary may require the owner or operator to
refund all or part of any payments received under the program,
with interest on the payments as determined appropriate by
the Secretary.

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16 USC 3838p.

‘‘SEC. 1238P. DUTIES OF SECRETARY.

‘‘(a) EVALUATION AND RANKING OF APPLICATIONS.—
‘‘(1) CRITERIA.—The Secretary shall establish criteria to
evaluate and rank applications for rental contracts and easements under the program .
‘‘(2) CONSIDERATIONS.—In establishing the criteria, the Secretary shall emphasize support for—
‘‘(A) grazing operations;
‘‘(B) plant and animal biodiversity; and
‘‘(C) grassland, land that contains forbs, and shrubland
under the greatest threat of conversion to uses other than
grazing.
‘‘(b) PAYMENTS.—
‘‘(1) IN GENERAL.—In return for the execution of a rental
contract or the granting of an easement by an owner or operator
under the program, the Secretary shall—
‘‘(A) make rental contract or easement payments to
the owner or operator in accordance with paragraphs (2)
and (3); and
‘‘(B) make payments to the owner or operator under
a restoration agreement for the Federal share of the cost
of restoration in accordance with paragraph (4).
‘‘(2) RENTAL CONTRACT PAYMENTS.—
‘‘(A) PERCENTAGE OF GRAZING VALUE OF LAND.—In
return for the execution of a rental contract by an owner
or operator under the program, the Secretary shall make
annual payments during the term of the contract in an
amount, subject to subparagraph (B), that is not more
than 75 percent of the grazing value of the land covered
by the contract.
‘‘(B) PAYMENT LIMITATION.—Payments made under 1
or more rental contracts to a person or legal entity, directly
or indirectly, may not exceed, in the aggregate, $50,000
per year.
‘‘(3) EASEMENT PAYMENTS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), in
return for the granting of an easement by an owner under
the program, the Secretary shall make easement payments
in an amount not to exceed the fair market value of the

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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.

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‘‘SEC. 1238Q. DELEGATION OF DUTY.

16 USC 3838q.

‘‘(a) AUTHORITY TO DELEGATE.—The Secretary may delegate
a duty under the program—
‘‘(1) by transferring title of ownership to an easement to
an eligible entity to hold and enforce; or
‘‘(2) by entering into a cooperative agreement with an
eligible entity for the eligible entity to own, write, and enforce
an easement.
‘‘(b) ELIGIBLE ENTITY DEFINED.—In this section, the term
‘eligible entity’ means—
‘‘(1) an agency of State or local government or an Indian
tribe; or
‘‘(2) an organization that—
‘‘(A) is organized for, and at all times since the formation of the organization has been operated principally for,
one or more of the conservation purposes specified in clause
(i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal
Revenue Code of 1986;

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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 controlled by an organization described in section 509(a)(2)
of that Code.
‘‘(c) TRANSFER OF TITLE OF OWNERSHIP.—
‘‘(1) TRANSFER.—The Secretary may transfer title of ownership to an easement to an eligible entity to hold and enforce,
in lieu of the Secretary, subject to the right of the Secretary
to conduct periodic inspections and enforce the easement, if—
‘‘(A) the Secretary determines that the transfer will
promote protection of grassland, land that contains forbs,
or shrubland;
‘‘(B) the owner authorizes the eligible entity to hold
or enforce the easement; and
‘‘(C) the eligible entity agrees to assume the costs
incurred in administering and enforcing the easement,
including the costs of restoration or rehabilitation of the
land as specified by the owner and the eligible entity.
‘‘(2) APPLICATION.—An eligible entity that seeks to hold
and enforce an easement shall apply to the Secretary for
approval.
‘‘(3) APPROVAL BY SECRETARY.—The Secretary may approve
an application described in paragraph (2) if the eligible entity—
‘‘(A) has the relevant experience necessary, as appropriate for the application, to administer an easement on
grassland, land that contains forbs, or shrubland;
‘‘(B) has a charter that describes a commitment to
conserving ranchland, agricultural land, or grassland for
grazing and conservation purposes; and
‘‘(C) has the resources necessary to effectuate the purposes of the charter.
‘‘(d) COOPERATIVE AGREEMENTS.—
‘‘(1) AUTHORIZED; TERMS AND CONDITIONS.—The Secretary
shall establish the terms and conditions of a cooperative agreement under which an eligible entity shall use funds provided
by the Secretary to own, write, and enforce an easement, in
lieu of the Secretary.
‘‘(2) MINIMUM REQUIREMENTS.—At a minimum, the cooperative agreement shall—
‘‘(A) specify the qualification of the eligible entity to
carry out the entity’s responsibilities under the program,
including acquisition, monitoring, enforcement, and
implementation of management policies and procedures
that ensure the long-term integrity of the easement protections;
‘‘(B) require the eligible entity to assume the costs
incurred in administering and enforcing the easement,
including the costs of restoration or rehabilitation of the
land as specified by the owner and the eligible entity;
‘‘(C) specify the right of the Secretary to conduct periodic inspections to verify the eligible entity’s enforcement
of the easement;

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‘‘(D) subject to subparagraph (E), identify a specific
project or a range of projects to be funded under the agreement;
‘‘(E) allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified at the
time of substitution;
‘‘(F) specify the manner in which the eligible entity
will evaluate and report the use of funds to the Secretary;
‘‘(G) allow the eligible entity flexibility to develop and
use terms and conditions for easements, if the Secretary
finds the terms and conditions consistent with the purposes
of the program and adequate to enable effective enforcement of the easements;
‘‘(H) if applicable, allow an eligible entity to include
a charitable donation or qualified conservation contribution
(as defined by section 170(h) of the Internal Revenue Code
of 1986) from the landowner from which the easement
will be purchased as part of the entity’s share of the cost
to purchase an easement; and
‘‘(I) provide for a schedule of payments to an eligible
entity, as agreed to by the Secretary and the eligible entity.
‘‘(3) COST SHARING.—
‘‘(A) IN GENERAL.—As part of a cooperative agreement
with an eligible entity under this subsection, the Secretary
may provide a share of the purchase price of an easement
under the program.
‘‘(B) MINIMUM SHARE BY ELIGIBLE ENTITY.—The eligible
entity shall be required to provide a share of the purchase
price at least equivalent to that provided by the Secretary.
‘‘(C) PRIORITY.—The Secretary may accord a higher
priority to proposals from eligible entities that leverage
a greater share of the purchase price of the easement.
‘‘(4) VIOLATION.—If an eligible entity violates the terms
or conditions of a cooperative agreement entered into under
this subsection—
‘‘(A) the cooperative agreement shall remain in force;
and
‘‘(B) the Secretary may require the eligible entity to
refund all or part of any payments received by the eligible
entity under the program, with interest on the payments
as determined appropriate by the Secretary.
‘‘(e) PROTECTION OF FEDERAL INVESTMENT.—When delegating
a duty under this section, the Secretary shall ensure that the
terms of an easement include a contingent right of enforcement
for the Department.’’.

Subtitle F—Environmental Quality
Incentives Program

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SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

(a) REVISED PURPOSES.—Section 1240 of the Food Security Act
of 1985 (16 U.S.C. 3839aa) is amended—
(1) in the matter preceding paragraph (1), by inserting
‘‘, forest management,’’ after ‘‘agricultural production’’; and

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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 associated with livestock, pest or irrigation management, or other
practices on agricultural and forested land; and’’.
(b) TECHNICAL CORRECTION.—The Food Security Act of 1985
is amended by inserting immediately before section 1240 (16 U.S.C.
3839aa) the following:
‘‘CHAPTER 4—ENVIRONMENTAL QUALITY INCENTIVES
PROGRAM’’.
SEC. 2502. DEFINITIONS.

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

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‘‘SEC. 1240A. DEFINITIONS.

‘‘In this chapter:
‘‘(1) ELIGIBLE LAND.—
‘‘(A) IN GENERAL.—The term ‘eligible land’ means land
on which agricultural commodities, livestock, or forestrelated products are produced.
‘‘(B) INCLUSIONS.—The term ‘eligible land’ includes the
following:
‘‘(i) Cropland.
‘‘(ii) Grassland.
‘‘(iii) Rangeland.
‘‘(iv) Pasture land.
‘‘(v) Nonindustrial private forest land.
‘‘(vi) Other agricultural land (including cropped
woodland, marshes, and agricultural land used for the
production of livestock) on which resource concerns
related to agricultural production could be addressed
through a contract under the program, as determined
by the Secretary.
‘‘(2) NATIONAL ORGANIC PROGRAM.—The term ‘national
organic program’ means the national organic program established under the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et. seq.).
‘‘(3) ORGANIC SYSTEM PLAN.—The term ‘organic system plan’
means an organic plan approved under the national organic
program.
‘‘(4) PAYMENT.—The term ‘payment’ means financial assistance provided to a producer for performing practices under
this chapter, including compensation for—

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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 determined by the Secretary, including—
‘‘(A) improvements to eligible land of the producer,
including—
‘‘(i) structural practices;
‘‘(ii) land management practices;
‘‘(iii) vegetative practices;
‘‘(iv) forest management; and
‘‘(v) other practices that the Secretary determines
would further the purposes of the program; and
‘‘(B) conservation activities involving the development
of plans appropriate for the eligible land of the producer,
including—
‘‘(i) comprehensive nutrient management planning;
and
‘‘(ii) other plans that the Secretary determines
would further the purposes of the program under this
chapter.
‘‘(6) PROGRAM.—The term ‘program’ means the environmental quality incentives program established by this chapter.’’.
SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

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‘‘SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.

‘‘(a) ESTABLISHMENT.—During each of the 2002 through 2012
fiscal years, the Secretary shall provide payments to producers
that enter into contracts with the Secretary under the program.
‘‘(b) PRACTICES AND TERM.—
‘‘(1) PRACTICES.—A contract under the program may apply
to the performance of one or more practices.
‘‘(2) TERM.—A contract under the program shall have a
term that—
‘‘(A) at a minimum, is equal to the period beginning
on the date on which the contract is entered into and
ending on the date that is one year after the date on
which all practices under the contract have been implemented; but
‘‘(B) not to exceed 10 years.
‘‘(c) BIDDING DOWN.—If the Secretary determines that the
environmental values of two or more applications for payments
are comparable, the Secretary shall not assign a higher priority
to the application only because it would present the least cost
to the program.
‘‘(d) PAYMENTS.—
‘‘(1) AVAILABILITY OF PAYMENTS.—Payments are provided
to a producer to implement one or more practices under the
program.

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‘‘(2) LIMITATION ON PAYMENT AMOUNTS.—A payment to a
producer for performing a practice may not exceed, as determined by the Secretary—
‘‘(A) 75 percent of the costs associated with planning,
design, materials, equipment, installation, labor, management, maintenance, or training;
‘‘(B) 100 percent of income foregone by the producer;
or
‘‘(C) in the case of a practice consisting of elements
covered under subparagraphs (A) and (B)—
‘‘(i) 75 percent of the costs incurred for those elements covered under subparagraph (A); and
‘‘(ii) 100 percent of income foregone for those elements covered under subparagraph (B).
‘‘(3) SPECIAL RULE INVOLVING PAYMENTS FOR FOREGONE
INCOME.—In determining the amount and rate of payments
under paragraph (2)(B), the Secretary may accord great significance to a practice that, as determined by the Secretary, promotes—
‘‘(A) residue management;
‘‘(B) nutrient management;
‘‘(C) air quality management;
‘‘(D) invasive species management;
‘‘(E) pollinator habitat;
‘‘(F) animal carcass management technology; or
‘‘(G) pest management.
‘‘(4) INCREASED PAYMENTS FOR CERTAIN PRODUCERS.—
‘‘(A) IN GENERAL.—Notwithstanding paragraph (2), in
the case of a producer that is a limited resource, socially
disadvantaged farmer or rancher or a beginning farmer
or rancher, the Secretary shall increase the amount that
would otherwise be provided to a producer under this subsection—
‘‘(i) to not more than 90 percent of the costs associated with planning, design, materials, equipment,
installation, labor, management, maintenance, or
training; and
‘‘(ii) to not less than 25 percent above the otherwise
applicable rate.
‘‘(B) ADVANCE PAYMENTS.—Not more than 30 percent
of the amount determined under subparagraph (A) may
be provided in advance for the purpose of purchasing materials or contracting.
‘‘(5) FINANCIAL ASSISTANCE FROM OTHER SOURCES.—Except
as provided in paragraph (6), any payments received by a
producer from a State or private organization or person for
the implementation of one or more practices on eligible land
of the producer shall be in addition to the payments provided
to the producer under this subsection.
‘‘(6) OTHER PAYMENTS.—A producer shall not be eligible
for payments for practices on eligible land under the program
if the producer receives payments or other benefits for the
same practice on the same land under another program under
this subtitle.
‘‘(e) MODIFICATION OR TERMINATION OF CONTRACTS.—

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‘‘(1) VOLUNTARY MODIFICATION OR TERMINATION.—The Secretary may modify or terminate a contract entered into with
a producer under the program if—
‘‘(A) the producer agrees to the modification or termination; and
‘‘(B) the Secretary determines that the modification
or termination is in the public interest.
‘‘(2) INVOLUNTARY TERMINATION.—The Secretary may
terminate a contract under the program if the Secretary determines that the producer violated the contract.
‘‘(f) ALLOCATION OF FUNDING.—For each of fiscal years 2002
through 2012, 60 percent of the funds made available for payments
under the program shall be targeted at practices relating to livestock production.
‘‘(g) FUNDING FOR FEDERALLY RECOGNIZED NATIVE AMERICAN
INDIAN TRIBES AND ALASKA NATIVE CORPORATIONS.—The Secretary
may enter into alternative funding arrangements with federally
recognized Native American Indian Tribes and Alaska Native Corporations (including their affiliated membership organizations) if
the Secretary determines that the goals and objectives of the program will be met by such arrangements, and that statutory limitations regarding contracts with individual producers will not be
exceeded by any Tribal or Native Corporation member.
‘‘(h) WATER CONSERVATION OR IRRIGATION EFFICIENCY PRACTICE.—
‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary may provide payments under this subsection to a producer for a water
conservation or irrigation practice.
‘‘(2) PRIORITY.—In providing payments to a producer for
a water conservation or irrigation practice, the Secretary shall
give priority to applications in which—
‘‘(A) consistent with the law of the State in which
the eligible land of the producer is located, there is a
reduction in water use in the operation of the producer;
or
‘‘(B) the producer agrees not to use any associated
water savings to bring new land, other than incidental
land needed for efficient operations, under irrigated production, unless the producer is participating in a watershedwide project that will effectively conserve water, as determined by the Secretary.
‘‘(i) PAYMENTS FOR CONSERVATION PRACTICES RELATED TO
ORGANIC PRODUCTION.—
‘‘(1) PAYMENTS AUTHORIZED.—The Secretary shall provide
payments under this subsection for conservation practices, on
some or all of the operations of a producer, related—
‘‘(A) to organic production; and
‘‘(B) to the transition to organic production.
‘‘(2) ELIGIBILITY REQUIREMENTS.—As a condition for
receiving payments under this subsection, a producer shall
agree—
‘‘(A) to develop and carry out an organic system plan;
or
‘‘(B) to develop and implement conservation practices
for certified organic production that are consistent with
an organic system plan and the purposes of this chapter.

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‘‘(3) PAYMENT LIMITATIONS.—Payments under this subsection to a person or legal entity, directly or indirectly, may
not exceed, in the aggregate, $20,000 per year or $80,000 during
any 6-year period. In applying these limitations, the Secretary
shall not take into account payments received for technical
assistance.
‘‘(4) EXCLUSION OF CERTAIN ORGANIC CERTIFICATION
COSTS.—Payments may not be made under this subsection to
cover the costs associated with organic certification that are
eligible for cost-share payments under section 10606 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
6523).
‘‘(5) TERMINATION OF CONTRACTS.—The Secretary may
cancel or otherwise nullify a contract to provide payments
under this subsection if the Secretary determines that the
producer—
‘‘(A) is not pursuing organic certification; or
‘‘(B) is not in compliance with the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq).’’.

SEC. 2504. EVALUATION OF APPLICATIONS.

Section 1240C of the Food Security Act of 1985 (16 U.S.C.
3839aa–3) is amended to read as follows:
‘‘SEC. 1240C. EVALUATION OF APPLICATIONS.

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

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

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

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122 STAT. 1791

(3) in paragraph (4), by striking ‘‘cost-share payments and
incentive’’.
SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

(a) PLAN OF OPERATIONS.—Section 1240E(a) of the Food Security Act of 1985 (16 U.S.C. 3839aa–5(a)) is amended—
(1) in the subsection heading, by striking ‘‘IN GENERAL’’
and inserting ‘‘PLAN OF OPERATIONS’’;
(2) in matter preceding paragraph (1), by striking ‘‘costshare payments or incentive’’;
(3) in paragraph (2), by striking ‘‘and’’ after the semicolon
at the end;
(4) in paragraph (3), by striking the period at the end
and inserting ‘‘; and’’; and
(5) by adding at the end the following new paragraph:
‘‘(4) in the case of forest land, is consistent with the provisions of a forest management plan that is approved by the
Secretary, which may include—
‘‘(A) a forest stewardship plan described in section
5 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2103a);
‘‘(B) another practice plan approved by the State forester; or
‘‘(C) another plan determined appropriate by the Secretary.’’.
(b) AVOIDANCE OF DUPLICATION.—Subsection (b) of section
1240E of the Food Security Act of 1985 (16 U.S.C. 3839aa–5)
is amended to read as follows:
‘‘(b) AVOIDANCE OF DUPLICATION.—The Secretary shall—
‘‘(1) consider a plan developed in order to acquire a permit
under a water or air quality regulatory program as the equivalent of a plan of operations under subsection (a), if the plan
contains elements equivalent to those elements required by
a plan of operations; and
‘‘(2) to the maximum extent practicable, eliminate duplication of planning activities under the program under this chapter
and comparable conservation programs.’’.
SEC. 2507. DUTIES OF THE SECRETARY.

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

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

Section 1240G of the Food Security Act of 1985 (16 U.S.C.
3839aa–7) is amended—
(1) by striking ‘‘An individual or entity’’ and inserting ‘‘(a)
LIMITATION.—Subject to subsection (b), a person or legal
entity’’;
(2) by striking ‘‘$450,000’’ and inserting ‘‘$300,000’’;
(3) by striking ‘‘the individual’’ both places it appears and
inserting ‘‘the person’’; and
(4) by adding at the end the following new subsection:
‘‘(b) WAIVER AUTHORITY.—In the case of contracts under this
chapter for projects of special environmental significance (including
projects involving methane digesters), as determined by the Secretary, the Secretary may—

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‘‘(1) waive the limitation otherwise applicable under subsection (a); and
‘‘(2) raise the limitation to not more than $450,000 during
any six-year period.’’.

SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

Section 1240H of the Food Security Act of 1985 (16 U.S.C.
3839aa–8) is amended to read as follows:
‘‘SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

‘‘(a) COMPETITIVE GRANTS FOR INNOVATIVE CONSERVATION
APPROACHES.—
‘‘(1) GRANTS.—Out of the funds made available to carry
out this chapter, the Secretary may pay the cost of competitive
grants that are intended to stimulate innovative approaches
to leveraging the Federal investment in environmental enhancement and protection, in conjunction with agricultural production or forest resource management, through the program.
‘‘(2) USE.—The Secretary may provide grants under this
subsection to governmental and non-governmental organizations and persons, on a competitive basis, to carry out projects
that—
‘‘(A) involve producers who are eligible for payments
or technical assistance under the program;
‘‘(B) leverage Federal funds made available to carry
out the program under this chapter with matching funds
provided by State and local governments and private
organizations to promote environmental enhancement and
protection in conjunction with agricultural production;
‘‘(C) ensure efficient and effective transfer of innovative
technologies and approaches demonstrated through projects
that receive funding under this section, such as market
systems for pollution reduction and practices for the storage
of carbon in soil; and
‘‘(D) provide environmental and resource conservation
benefits through increased participation by producers of
specialty crops.
‘‘(b) AIR QUALITY CONCERNS FROM AGRICULTURAL OPERATIONS.—
‘‘(1) IMPLEMENTATION ASSISTANCE.—The Secretary shall
provide payments under this subsection to producers to implement practices to address air quality concerns from agricultural
operations and to meet Federal, State, and local regulatory
requirements. The funds shall be made available on the basis
of air quality concerns in a State and shall be used to provide
payments to producers that are cost effective and reflect innovative technologies.
‘‘(2) FUNDING.—Of the funds made available to carry out
this chapter, the Secretary shall carry out this subsection using
$37,500,000 for each of fiscal years 2009 through 2012.’’.
SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

Section 1240I of the Food Security Act of 1985 (16 U.S.C.
3839aa–9) is amended to read as follows:
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‘‘SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

‘‘(a) DEFINITIONS.—In this section:

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‘‘(1) AGRICULTURAL WATER ENHANCEMENT ACTIVITY.—The
term ‘agricultural water enhancement activity’ includes the
following activities carried out with respect to agricultural land:
‘‘(A) Water quality or water conservation plan development, including resource condition assessment and modeling.
‘‘(B) Water conservation restoration or enhancement
projects, including conversion to the production of less
water-intensive agricultural commodities or dryland
farming.
‘‘(C) Water quality or quantity restoration or enhancement projects.
‘‘(D) Irrigation system improvement and irrigation efficiency enhancement.
‘‘(E) Activities designed to mitigate the effects of
drought.
‘‘(F) Related activities that the Secretary determines
will help achieve water quality or water conservation benefits on agricultural land.
‘‘(2) PARTNER.—The term ‘partner’ means an entity that
enters into a partnership agreement with the Secretary to
carry out agricultural water enhancement activities on a
regional basis, including—
‘‘(A) an agricultural or silvicultural producer association or other group of such producers;
‘‘(B) a State or unit of local government; or
‘‘(C) a federally recognized Indian tribe.
‘‘(3) PARTNERSHIP AGREEMENT.—The term ‘partnership
agreement’ means an agreement between the Secretary and
a partner.
‘‘(4) PROGRAM.—The term ‘program’ means the agricultural
water enhancement program established under subsection (b).
‘‘(b) ESTABLISHMENT OF PROGRAM.—Beginning in fiscal year
2009, the Secretary shall carry out, in accordance with this section
and using such procedures as the Secretary determines to be appropriate, an agricultural water enhancement program as part of the
environmental quality incentives program to promote ground and
surface water conservation and improve water quality on agricultural lands—
‘‘(1) by entering into contracts with, and making payments
to, producers to carry out agricultural water enhancement
activities; or
‘‘(2) by entering into partnership agreements with partners,
in accordance with subsection (c), on a regional level to benefit
working agricultural land.
‘‘(c) PARTNERSHIP AGREEMENTS.—
‘‘(1) AGREEMENTS AUTHORIZED.—The Secretary may enter
into partnership agreements to meet the objectives of the program described in subsection (b).
‘‘(2) APPLICATIONS.—An application to the Secretary to
enter into a partnership agreement under paragraph (1) shall
include the following:
‘‘(A) A description of the geographical area to be covered by the partnership agreement.
‘‘(B) A description of the agricultural water quality
or water conservation issues to be addressed by the partnership agreement.

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Effective date.
Procedures.
Contracts.

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Reports.

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‘‘(C) A description of the agricultural water enhancement objectives to be achieved through the partnership.
‘‘(D) A description of the partners collaborating to
achieve the project objectives and the roles, responsibilities,
and capabilities of each partner.
‘‘(E) A description of the program resources, including
payments the Secretary is requested to make.
‘‘(F) Such other such elements as the Secretary considers necessary to adequately evaluate and competitively
select applications for partnership agreements.
‘‘(3) DUTIES OF PARTNERS.—A partner under a partnership
agreement shall—
‘‘(A) identify producers participating in the project and
act on their behalf in applying for the program;
‘‘(B) leverage funds provided by the Secretary with
additional funds to help achieve project objectives;
‘‘(C) conduct monitoring and evaluation of project
effects; and
‘‘(D) at the conclusion of the project, report to the
Secretary on project results.
‘‘(d) AGRICULTURAL WATER ENHANCEMENT ACTIVITIES BY PRODUCERS.—The Secretary shall select agricultural water enhancement activities proposed by producers according to applicable
requirements under the environmental quality incentives program.
‘‘(e) AGRICULTURAL WATER ENHANCEMENT ACTIVITIES BY PARTNERS.—
‘‘(1) COMPETITIVE PROCESS.—The Secretary shall conduct
a competitive process to select partners. In carrying out the
process, the Secretary shall make public the criteria used in
evaluating applications.
‘‘(2) AUTHORITY TO GIVE PRIORITY TO CERTAIN PROPOSALS.—
The Secretary may give a higher priority to proposals from
partners that—
‘‘(A) include high percentages of agricultural land and
producers in a region or other appropriate area;
‘‘(B) result in high levels of applied agricultural water
quality and water conservation activities;
‘‘(C) significantly enhance agricultural activity;
‘‘(D) allow for monitoring and evaluation; and
‘‘(E) assist producers in meeting a regulatory requirement that reduces the economic scope of the producer’s
operation.
‘‘(3) PRIORITY TO PROPOSALS FROM STATES WITH WATER
QUANTITY CONCERNS.—The Secretary shall give a higher priority to proposals from partners that—
‘‘(A) include the conversion of agricultural land from
irrigated farming to dryland farming;
‘‘(B) leverage Federal funds provided under the program with funds provided by partners; and
‘‘(C) assist producers in States with water quantity
concerns, as determined by the Secretary.
‘‘(4) ADMINISTRATION.—In carrying out this subsection, the
Secretary shall—
‘‘(A) accept qualified applications—
‘‘(i) directly from partners applying on behalf of
producers; or

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‘‘(ii) from producers applying through a partner
as part of a regional agricultural water enhancement
project; and
‘‘(B) ensure that resources made available for regional
agricultural water enhancement activities are delivered in
accordance with applicable program rules.
‘‘(f) AREAS EXPERIENCING EXCEPTIONAL DROUGHT.—Notwithstanding the purposes described in section 1240, the Secretary
shall consider as an eligible agricultural water enhancement activity
the use of a water impoundment to capture surface water runoff
on agricultural land if the agricultural water enhancement
activity—
‘‘(1) is located in an area that is experiencing or has experienced exceptional drought conditions during the previous two
calendar years; and
‘‘(2) will capture surface water runoff through the construction, improvement, or maintenance of irrigation ponds or small,
on-farm reservoirs.
‘‘(g) WAIVER AUTHORITY.—To assist in the implementation of
agricultural water enhancement activities under the program, the
Secretary shall waive the applicability of the limitation in section
1001D(b)(2)(B) of this Act for participating producers if the Secretary determines that the waiver is necessary to fulfill the objectives of the program.
‘‘(h) PAYMENTS UNDER PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall provide appropriate
payments to producers participating in agricultural water
enhancement activities in an amount determined by the secretary to be necessary to achieve the purposes of the program
described in subsection (b).
‘‘(2) PAYMENTS TO PRODUCERS IN STATES WITH WATER
QUANTITY CONCERNS.—The Secretary shall provide payments
for a period of five years to producers participating in agricultural water enhancement activities under proposals described
in subsection (e)(3) in an amount sufficient to encourage producers to convert from irrigated farming to dryland farming.
‘‘(i) CONSISTENCY WITH STATE LAW.—Any agricultural water
enhancement activity conducted under the program shall be conducted in a manner consistent with State water law.
‘‘(j) FUNDING.—
‘‘(1) AVAILABILITY OF FUNDS.—In addition to funds made
available to carry out this chapter under section 1241(a), the
Secretary shall carry out the program using, of the funds of
the Commodity Credit Corporation—
‘‘(A) $73,000,000 for each of fiscal years 2009 and 2010;
‘‘(B) $74,000,000 for fiscal year 2011; and
‘‘(C) $60,000,000 for fiscal year 2012 and each fiscal
year thereafter.
‘‘(2) LIMITATION ON ADMINISTRATIVE EXPENSES.—None of
the funds made available for regional agricultural water conservation activities under the program may be used to pay
for the administrative expenses of partners.’’.

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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 carrying out this section, the Secretary may give priority to projects
that would address issues raised by State, regional, and national
conservation initiatives.
‘‘(e) PAYMENT LIMITATION.—Payments made to a person or legal
entity, directly or indirectly, under the program may not exceed,
in the aggregate, $50,000 per year.’’.
SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C.
3839bb–2(b)) is amended by striking ‘‘$5,000,000 for each of fiscal
years 2002 through 2007’’ and inserting ‘‘$20,000,000 for each of
fiscal years 2008 through 2012’’.
SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND
SEDIMENT CONTROL.

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

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‘‘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:

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‘‘SEC. 1240Q. CHESAPEAKE BAY WATERSHED.

‘‘(a) CHESAPEAKE BAY WATERSHED DEFINED.—In this section,
the term ‘Chesapeake Bay watershed’ means all tributaries, backwaters, and side channels, including their watersheds, draining
into the Chesapeake Bay.
‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary shall assist
producers in implementing conservation activities on agricultural
lands in the Chesapeake Bay watershed for the purposes of—
‘‘(1) improving water quality and quantity in the Chesapeake Bay watershed; and
‘‘(2) restoring, enhancing, and preserving soil, air, and
related resources in the Chesapeake Bay watershed.
‘‘(c) CONSERVATION ACTIVITIES.—The Secretary shall deliver the
funds made available to carry out this section through applicable
programs under this subtitle to assist producers in enhancing land
and water resources—
‘‘(1) by controlling erosion and reducing sediment and
nutrient levels in ground and surface water; and
‘‘(2) by planning, designing, implementing, and evaluating
habitat conservation, restoration, and enhancement measures
where there is significant ecological value if the lands are—
‘‘(A) retained in their current use; or
‘‘(B) restored to their natural condition.
‘‘(d) AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall—
‘‘(A) enter into agreements with producers to carry
out the purposes of this section; and
‘‘(B) use the funds made available to carry out this
section to cover the costs of the program involved with
each agreement.
‘‘(2) SPECIAL CONSIDERATIONS.—In entering into agreements under this subsection, the Secretary shall give special

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consideration to, and begin evaluating, applications with producers in the following river basins:
‘‘(A) The Susquehanna River.
‘‘(B) The Shenandoah River.
‘‘(C) The Potomac River (including North and South
Potomac).
‘‘(D) The Patuxent River.
‘‘(e) DUTIES OF THE SECRETARY.—In carrying out the purposes
in this section, the Secretary shall—
‘‘(1) where available, use existing plans, models, and assessments to assist producers in implementing conservation activities; and
‘‘(2) proceed expeditiously with the implementation of any
agreement with a producer that is consistent with State strategies for the restoration of the Chesapeake Bay watershed.
‘‘(f) CONSULTATION.—The Secretary, in consultation with appropriate Federal agencies, shall ensure conservation activities carried
out under this section complement Federal and State programs,
including programs that address water quality, in the Chesapeake
Bay watershed.
‘‘(g) SENSE OF CONGRESS REGARDING CHESAPEAKE BAY EXECUTIVE COUNCIL.—It is the sense of Congress that the Secretary
should be a member of the Chesapeake Bay Executive Council,
and is authorized to do so under section 1(3) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590a(3)).
‘‘(h) FUNDING.—
‘‘(1) AVAILABILITY.—Of the funds of the Commodity Credit
Corporation, the Secretary shall use, to the maximum extent
practicable—
‘‘(A) $23,000,000 for fiscal year 2009;
‘‘(B) $43,000,000 for fiscal year 2010;
‘‘(C) $72,000,000 for fiscal year 2011; and
‘‘(D) $50,000,000 for fiscal year 2012.
‘‘(2) DURATION OF AVAILABILITY.—Funds made available
under paragraph (1) shall remain available until expended.’’
SEC. 2606. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

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

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16 USC
3839bb–5.

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

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a voluntary
public access program under which States and tribal governments
may apply for grants to encourage owners and operators of privately-held farm, ranch, and forest land to voluntarily make that
land available for access by the public for wildlife-dependent recreation, including hunting or fishing under programs administered
by the States and tribal governments.
‘‘(b) APPLICATIONS.—In submitting applications for a grant
under the program, a State or tribal government shall describe—
‘‘(1) the benefits that the State or tribal government intends
to achieve by encouraging public access to private farm and
ranch land for—
‘‘(A) hunting and fishing; and

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‘‘(B) to the maximum extent practicable, other recreational purposes; and
‘‘(2) the methods that will be used to achieve those benefits.
‘‘(c) PRIORITY.—In approving applications and awarding grants
under the program, the Secretary shall give priority to States
and tribal governments that propose—
‘‘(1) to maximize participation by offering a program the
terms of which are likely to meet with widespread acceptance
among landowners;
‘‘(2) to ensure that land enrolled under the State or tribal
government program has appropriate wildlife habitat;
‘‘(3) to strengthen wildlife habitat improvement efforts on
land enrolled in a special conservation reserve enhancement
program described in section 1234(f)(4) by providing incentives
to increase public hunting and other recreational access on
that land;
‘‘(4) to use additional Federal, State, tribal government,
or private resources in carrying out the program; and
‘‘(5) to make available to the public the location of land
enrolled.
‘‘(d) RELATIONSHIP TO OTHER LAWS.—
‘‘(1) NO PREEMPTION.—Nothing in this section preempts
a State or tribal government law, including any State or tribal
government liability law.
‘‘(2) EFFECT OF INCONSISTENT OPENING DATES FOR MIGRATORY BIRD HUNTING.—The Secretary shall reduce by 25 percent
the amount of a grant otherwise determined for a State under
the program if the opening dates for migratory bird hunting
in the State are not consistent for residents and non-residents.
‘‘(e) REGULATIONS.—The Secretary shall promulgate such regulations as are necessary to carry out this section.
‘‘(f) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use, to the maximum extent practicable,
$50,000,000 for the period of fiscal years 2009 through 2012.’’.

Subtitle H—Funding and Administration of
Conservation Programs

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

(a) IN GENERAL.—Section 1241(a) of the Food Security Act
of 1985 (16 U.S.C. 3841(a)) is amended in the matter preceding
paragraph (1), by striking ‘‘2007’’ and inserting ‘‘2012’’.
(b) CONSERVATION RESERVE PROGRAM.—Paragraph (1) of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a))
is amended by striking the period at the end and inserting the
following: ‘‘, including to the maximum extent practicable—
‘‘(A) $100,000,000 for the period of fiscal years 2009
through 2012 to provide cost share payments under paragraph (3) of section 1234(b) in connection with thinning
activities conducted on land described in subparagraph
(A)(iii) of such paragraph; and
‘‘(B) $25,000,000 for the period of fiscal years 2009
through 2012 to carry out section 1235(f) to facilitate the
transfer of land subject to contracts from retired or retiring

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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 conservation security program under subchapter A of chapter 2, using
such sums as are necessary to administer contracts entered
into before September 30, 2008.
‘‘(B) CONSERVATION STEWARDSHIP PROGRAM.—The conservation stewardship program under subchapter B of chapter 2.’’.
(d) FARMLAND PROTECTION PROGRAM.—Paragraph (4) of section
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
amended to read as follows:
‘‘(4) The farmland protection program under subchapter
C of chapter 2, using, to the maximum extent practicable—
‘‘(A) $97,000,000 in fiscal year 2008;
‘‘(B) $121,000,000 in fiscal year 2009;
‘‘(C) $150,000,000 in fiscal year 2010;
‘‘(D) $175,000,000 in fiscal year 2011; and
‘‘(E) $200,000,000 in fiscal year 2012.’’.
(e) GRASSLAND RESERVE PROGRAM.—Paragraph (5) of section
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
amended to read as follows:
‘‘(5) The grassland reserve program under subchapter D
of chapter 2.’’.
(f) ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.—Paragraph (6) of section 1241(a) of the Food Security Act of 1985 (16
U.S.C. 3841(a)) is amended to read as follows:
‘‘(6) The environmental quality incentives program under
chapter 4, using, to the maximum extent practicable—
‘‘(A) $1,200,000,000 in fiscal year 2008;
‘‘(B) $1,337,000,000 in fiscal year 2009;
‘‘(C) $1,450,000,000 in fiscal year 2010;
‘‘(D) $1,588,000,000 in fiscal year 2011; and
‘‘(E) $1,750,000,000 in fiscal year 2012.’’.
(g) WILDLIFE HABITAT INCENTIVES PROGRAM.—Paragraph (7)(D)
of section 1241(a) of the Food Security Act of 1985 (16 U.S.C.
3841(a)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

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

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841)
is amended by adding at the end the following new subsection:
‘‘(e) ACCEPTANCE AND USE OF CONTRIBUTIONS.—
‘‘(1) AUTHORITY TO ESTABLISH CONTRIBUTION ACCOUNTS.—
Subject to paragraph (2), the Secretary may establish a subaccount for each conservation program administered by the
Secretary under subtitle D to accept contributions of non-Federal funds to support the purposes of the program.
‘‘(2) DEPOSIT AND USE OF CONTRIBUTIONS.—Contributions
of non-Federal funds received for a conservation program
administered by the Secretary under subtitle D shall be deposited into the sub-account established under this subsection
for the program and shall be available to the Secretary, without
further appropriation and until expended, to carry out the
program.’’.

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SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY.

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

Deadline.

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

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841)
is amended by inserting after subsection (f), as added by section
2703(b), the following new subsection:
‘‘(g) ASSISTANCE TO CERTAIN FARMERS OR RANCHERS FOR CONSERVATION ACCESS.—
‘‘(1) ASSISTANCE.—Of the funds made available for each
of fiscal years 2009 through 2012 to carry out the environmental
quality incentives program and the acres made available for
each of such fiscal years to carry out the conservation stewardship program, the Secretary shall use, to the maximum extent
practicable—
‘‘(A) 5 percent to assist beginning farmers or ranchers;
and
‘‘(B) 5 percent to assist socially disadvantaged farmers
or ranchers.
‘‘(2) REPOOLING OF FUNDS.—In any fiscal year, amounts
not obligated under paragraph (1) by a date determined by
the Secretary shall be available for payments and technical
assistance to all persons eligible for payments or technical
assistance in that fiscal year under the environmental quality
incentives program.
‘‘(3) REPOOLING OF ACRES.—In any fiscal year, acres not
obligated under paragraph (1) by a date determined by the
Secretary shall be available for use in that fiscal year under
the conservation stewardship program.’’.

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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, Nutrition, and Forestry of the Senate a semiannual report containing
statistics by State related to enrollments in conservation programs
under this subtitle, as follows:
‘‘(1) Payments made under the wetlands reserve program
for easements valued at $250,000 or greater.
‘‘(2) Payments made under the farmland protection program for easements in which the Federal share is $250,000
or greater.
‘‘(3) Payments made under the grassland reserve program
valued at $250,000 or greater.
‘‘(4) Payments made under the environmental quality incentives program for land determined to have special environmental significance pursuant to section 1240G(b).
‘‘(5) Payments made under the agricultural water enhancement program subject to the waiver of adjusted gross income
limitations pursuant to section 1240I(g).
‘‘(6) Waivers granted by the Secretary under section
1001D(b)(2) of this Act in order to protect environmentally
sensitive land of special significance.’’.
SEC. 2706. DELIVERY OF CONSERVATION TECHNICAL ASSISTANCE.

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

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‘‘SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

‘‘(a) DEFINITION OF ELIGIBLE PARTICIPANT.—In this section, the
term ‘eligible participant’ means a producer, landowner, or entity
that is participating in, or seeking to participate in, programs
for which the producer, landowner, or entity is otherwise eligible
to participate in under this title or the agricultural management
assistance program under section 524 of the Federal Crop Insurance
Act (7 U.S.C. 1524).
‘‘(b) PURPOSE OF TECHNICAL ASSISTANCE.—The purpose of technical assistance authorized by this section is to provide eligible
participants with consistent, science-based, site-specific practices
designed to achieve conservation objectives on land active in agricultural, forestry, or related uses.
‘‘(c) PROVISION OF TECHNICAL ASSISTANCE.—The Secretary shall
provide technical assistance under this title to an eligible participant—
‘‘(1) directly;
‘‘(2) through an agreement with a third-party provider;
or
‘‘(3) at the option of the eligible participant, through a
payment, as determined by the Secretary, to the eligible participant for an approved third-party provider, if available.
‘‘(d) NON-FEDERAL ASSISTANCE.—The Secretary may request
the services of, and enter into cooperative agreements or contracts

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122 STAT. 1803

with, other agencies within the Department or non-Federal entities
to assist the Secretary in providing technical assistance necessary
to assist in implementing conservation programs under this title.
‘‘(e) CERTIFICATION OF THIRD-PARTY PROVIDERS.—
‘‘(1) PURPOSE.—The purpose of the third-party provider
program is to increase the availability and range of technical
expertise available to eligible participants to plan and implement conservation measures.
‘‘(2) REGULATIONS.—Not later than 180 days after the date
of the enactment of the Food, Conservation, and Energy Act
of 2008, the Secretary shall promulgate such regulations as
are necessary to carry out this section.
‘‘(3) EXPERTISE.—In promulgating such regulations, the
Secretary, to the maximum extent practicable, shall—
‘‘(A) ensure that persons with expertise in the technical
aspects of conservation planning, watershed planning, and
environmental engineering, including commercial entities,
nonprofit entities, State or local governments or agencies,
and other Federal agencies, are eligible to become approved
providers of the technical assistance;
‘‘(B) provide national criteria for the certification of
third party providers; and
‘‘(C) approve any unique certification standards established at the State level.
‘‘(f) ADMINISTRATION.—
‘‘(1) FUNDING.—Effective for fiscal year 2008 and each subsequent fiscal year, funds of the Commodity Credit Corporation
made available to carry out technical assistance for each of
the programs specified in section 1241 shall be available for
the provision of technical assistance from third-party providers
under this section.
‘‘(2) TERM OF AGREEMENT.—An agreement with a thirdparty provider under this section shall have a term that—
‘‘(A) at a minimum, is equal to the period beginning
on the date on which the agreement is entered into and
ending on the date that is 1 year after the date on which
all activities performed pursuant to the agreement have
been completed;
‘‘(B) does not exceed 3 years; and
‘‘(C) can be renewed, as determined by the Secretary.
‘‘(3) REVIEW OF CERTIFICATION REQUIREMENTS.—Not later
than 1 year after the date of enactment of the Food, Conservation, and Energy Act of 2008, the Secretary shall—
‘‘(A) review certification requirements for third-party
providers; and
‘‘(B) make any adjustments considered necessary by
the Secretary to improve participation.
‘‘(4) ELIGIBLE ACTIVITIES.—
‘‘(A) INCLUSION OF ACTIVITIES.—The Secretary may
include as activities eligible for payments to a third party
provider—
‘‘(i) technical services provided directly to eligible
participants, such as conservation planning, education
and outreach, and assistance with design and
implementation of conservation practices; and
‘‘(ii) related technical assistance services that accelerate conservation program delivery.

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Deadline.

Criteria.

Effective date.

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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 customarily provided at no cost.
‘‘(5) PAYMENT AMOUNTS.—The Secretary shall establish fair
and reasonable amounts of payments for technical services
provided by third-party providers.
‘‘(g) AVAILABILITY OF TECHNICAL SERVICES.—
‘‘(1) IN GENERAL.—In carrying out the programs under this
title and the agricultural management assistance program
under section 524 of the Federal Crop Insurance Act (7 U.S.C.
1524), the Secretary shall make technical services available
to all eligible participants who are installing an eligible practice.
‘‘(2) TECHNICAL SERVICE CONTRACTS.—In any case in which
financial assistance is not provided under a program referred
to in paragraph (1), the Secretary may enter into a technical
service contract with the eligible participant for the purposes
of assisting in the planning, design, or installation of an eligible
practice.
‘‘(h) REVIEW OF CONSERVATION PRACTICE STANDARDS.—
‘‘(1) REVIEW REQUIRED.—The Secretary shall—
‘‘(A) review conservation practice standards, including
engineering design specifications, in effect on the date of
the enactment of the Food, Conservation, and Energy Act
of 2008;
‘‘(B) ensure, to the maximum extent practicable, the
completeness and relevance of the standards to local agricultural, forestry, and natural resource needs, including
specialty crops, native and managed pollinators, bioenergy
crop production, forestry, and such other needs as are
determined by the Secretary; and
‘‘(C) ensure that the standards provide for the optimal
balance between meeting site-specific conservation needs
and minimizing risks of design failure and associated costs
of construction and installation.
‘‘(2) CONSULTATION.—In conducting the review under paragraph (1), the Secretary shall consult with eligible participants,
crop consultants, cooperative extension and land grant universities, nongovernmental organizations, and other qualified entities.
‘‘(3) EXPEDITED REVISION OF STANDARDS.—If the Secretary
determines under paragraph (1) that revisions to the conservation practice standards, including engineering design specifications, are necessary, the Secretary shall establish an administrative process for expediting the revisions.
‘‘(i) ADDRESSING CONCERNS OF SPECIALITY CROP, ORGANIC, AND
PRECISION AGRICULTURE PRODUCERS.—
‘‘(1) IN GENERAL.—The Secretary shall—
‘‘(A) to the maximum extent practicable, fully incorporate specialty crop production, organic crop production,
and precision agriculture into the conservation practice
standards; and
‘‘(B) provide for the appropriate range of conservation
practices and resource mitigation measures available to
producers involved with organic or specialty crop production or precision agriculture.

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‘‘(2) AVAILABILITY OF ADEQUATE TECHNICAL ASSISTANCE.—
‘‘(A) IN GENERAL.—The Secretary shall ensure that adequate technical assistance is available for the implementation of conservation practices by producers involved with
organic, specialty crop production, or precision agriculture
through Federal conservation programs.
‘‘(B) REQUIREMENTS.—In carrying out subparagraph
(A), the Secretary shall develop—
‘‘(i) programs that meet specific needs of producers
involved with organic, specialty crop production or
precision agriculture through cooperative agreements
with other agencies and nongovernmental organizations; and
‘‘(ii) program specifications that allow for innovative approaches to engage local resources in providing
technical assistance for planning and implementation
of conservation practices.’’.
SEC. 2707. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

(a) TRANSFER OF EXISTING PROVISIONS.—Subsections (a), (c),
and (d) of section 1243 of the Food Security Act of 1985 (16 U.S.C.
3843) are—
(1) redesignated as subsections (c), (d), and (e), respectively;
and
(2) transferred to appear at the end of section 1244 of
such Act (16 U.S.C. 3844).
(b) ESTABLISHMENT OF PARTNERSHIP INITIATIVE.—Section 1243
of the Food Security Act of 1985 (16 U.S.C. 3843), as amended
by subsection (a), is amended to read as follows:

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‘‘SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

‘‘(a) ESTABLISHMENT OF INITIATIVE.—The Secretary shall establish a cooperative conservation partnership initiative (in this section
referred to as the ‘Initiative’) to work with eligible partners to
provide assistance to producers enrolled in a program described
in subsection (c)(1) that will enhance conservation outcomes on
agricultural and nonindustrial private forest land.
‘‘(b) PURPOSES.—The purposes of a partnership entered into
under the Initiative shall be—
‘‘(1) to address conservation priorities involving agriculture
and nonindustrial private forest land on a local, State, multiState, 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 partnership under the Initiative with one or more of the following:
‘‘(1) States and local governments.
‘‘(2) Indian tribes.
‘‘(3) Producer associations.
‘‘(4) Farmer cooperatives.
‘‘(5) Institutions of higher education.
‘‘(6) Nongovernmental organizations with a history of
working cooperatively with producers to effectively address conservation priorities related to agricultural production and nonindustrial private forest land.
‘‘(e) IMPLEMENTATION AGREEMENTS.—The Secretary shall carry
out the Initiative—
‘‘(1) by selecting, through a competitive process, eligible
partners from among applications submitted under subsection
(f); and
‘‘(2) by entering into multi-year agreements with eligible
partners so selected for a period not to exceed 5 years.
‘‘(f) APPLICATIONS.—
‘‘(1) REQUIRED INFORMATION.—An application to enter into
a partnership agreement under the Initiative shall include the
following:
‘‘(A) A description of the area covered by the agreement,
conservation priorities in the area, conservation objectives
to be achieved, and the expected level of participation by
agricultural producers and nonindustrial private forest
landowners.
‘‘(B) A description of the partner, or partners, collaborating to achieve the objectives of the agreement, and the
roles, responsibilities, and capabilities of the partner.
‘‘(C) A description of the resources that are requested
from the Secretary, and the non-Federal resources that
will be leveraged by the Federal contribution.
‘‘(D) A description of the plan for monitoring, evaluating, and reporting on progress made towards achieving
the objectives of the agreement.
‘‘(E) Such other information that may be required by
the Secretary.
‘‘(2) PRIORITIES.—The Secretary shall give priority to
applications for agreements that—
‘‘(A) have a high percentage of producers involved and
working agricultural or nonindustrial private forest land
included in the area covered by the agreement;
‘‘(B) significantly leverage non-Federal financial and
technical resources and coordinate with other local, State,
or Federal efforts;
‘‘(C) deliver high percentages of applied conservation
to address water quality, water conservation, or State,
regional, or national conservation initiatives;

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‘‘(D) provide innovation in conservation methods and
delivery, including outcome-based performance measures
and methods; or
‘‘(E) meet other factors, as determined by the Secretary.
‘‘(g) RELATIONSHIP TO COVERED PROGRAMS.—
‘‘(1) COMPLIANCE WITH PROGRAM RULES.—Except as provided in paragraph (2), the Secretary shall ensure that
resources made available under the Initiative are delivered
in accordance with the applicable rules of programs specified
in subsection (c)(1) through normal program mechanisms
relating to program functions, including rules governing
appeals, payment limitations, and conservation compliance.
‘‘(2) ADJUSTMENT.—The Secretary may adjust the elements
of any program specified in subsection (c)(1)—
‘‘(A) to better reflect unique local circumstances and
purposes if the Secretary determines such adjustments are
necessary to achieve the purposes of the Initiative; and
‘‘(B) to provide preferential enrollment to producers
who are eligible for the applicable program and to participate in the Initiative.
‘‘(h) TECHNICAL AND FINANCIAL ASSISTANCE.—The Secretary
shall provide appropriate technical and financial assistance to producers participating in the Initiative in an amount determined
to be necessary to achieve the purposes of the Initiative.
‘‘(i) FUNDING.—
‘‘(1) RESERVATION.—Of the funds and acres made available
for each of fiscal years 2009 through 2012 to implement the
programs described in subsection (c)(1), the Secretary shall
reserve 6 percent of the funds and acres to ensure an adequate
source of funds and acres for the Initiative.
‘‘(2) ALLOCATION REQUIREMENTS.—Of the funds and acres
reserved for the Initiative for a fiscal year, the Secretary shall
allocate—
‘‘(A) 90 percent of the funds and acres to projects
based on the direction of State conservationists, with the
advice of State technical committees; and
‘‘(B) 10 percent of the funds and acres to projects
based on a national competitive process established by
the Secretary.
‘‘(3) UNUSED FUNDING.—Any funds and acres reserved for
a fiscal year under paragraph (1) that are not obligated by
April 1 of that fiscal year may be used to carry out other
activities under the program that is the source of the funds
or acres during the remainder of that fiscal year.
‘‘(4) ADMINISTRATIVE COSTS OF PARTNERS.—Overhead or
administrative costs of partners may not be covered by funds
provided through the Initiative.’’.

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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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Procedures.

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‘‘(1) INCENTIVES AUTHORIZED.—In carrying out any conservation program administered by the Secretary, the Secretary
may provide to a person or entity specified in paragraph (2)
incentives to participate in the conservation program—
‘‘(A) to foster new farming and ranching opportunities;
and
‘‘(B) to enhance long-term environmental goals.
‘‘(2) COVERED PERSONS.—Incentives authorized by paragraph (1) may be provided to the following:
‘‘(A) Beginning farmers or ranchers.
‘‘(B) Socially disadvantaged farmers or ranchers.
‘‘(C) Limited resource farmers or ranchers.
‘‘(D) Indian tribes.’’; and
(2) by adding at the end the following new subsections:
‘‘(f) ACREAGE LIMITATIONS.—
‘‘(1) LIMITATIONS.—
‘‘(A) ENROLLMENTS.—The Secretary shall not enroll
more than 25 percent of the cropland in any county in
the programs administered under subchapters B and C
of chapter 1 of subtitle D.
‘‘(B) EASEMENTS.—Not more than 10 percent of the
cropland in a country may be subject to an easement
acquired under subchapter C of chapter 1 of subtitle D.
‘‘(2) EXCEPTIONS.—The Secretary may exceed the limitation
in paragraph (1)(A), if the Secretary determines that—
‘‘(A) the action would not adversely affect the local
economy of a county; and
‘‘(B) operators in the county are having difficulties
complying with conservation plans implemented under section 1212.
‘‘(3) WAIVER TO EXCLUDE CERTAIN ACREAGE.—The Secretary
may grant a waiver to exclude acreage enrolled under subsection (c)(2)(B) or (f)(4) of section 1234 from the limitations
in paragraph (1)(A) with the concurrence of the county government of the county involved.
‘‘(4) SHELTERBELTS AND WINDBREAKS.—The limitations
established under paragraph (1) shall not apply to cropland
that is subject to an easement under subchapter C of chapter
1 that is used for the establishment of shelterbelts and
windbreaks.
‘‘(g) COMPLIANCE AND PERFORMANCE.—For each conservation
program under subtitle D, the Secretary shall develop procedures—
‘‘(1) to monitor compliance with program requirements;
‘‘(2) to measure program performance;
‘‘(3) to demonstrate whether the long-term conservation
benefits of the program are being achieved;
‘‘(4) to track participation by crop and livestock types; and
‘‘(5) to coordinate activities described in this subsection
with the national conservation program authorized under section 5 of the Soil and Water Resources Conservation Act of
1977 (16 U.S.C. 2004).
‘‘(h) ENCOURAGEMENT OF POLLINATOR HABITAT DEVELOPMENT
AND PROTECTION.—In carrying out any conservation program
administered by the Secretary, the Secretary may, as appropriate,
encourage—
‘‘(1) the development of habitat for native and managed
pollinators; and

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

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

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‘‘SEC. 1245. ENVIRONMENTAL SERVICES MARKETS.

16 USC 3845.

‘‘(a) TECHNICAL GUIDELINES REQUIRED.—The Secretary shall
establish technical guidelines that outline science-based methods
to measure the environmental services benefits from conservation
and land management activities in order to facilitate the participation of farmers, ranchers, and forest landowners in emerging
environmental services markets. The Secretary shall give priority
to the establishment of guidelines related to farmer, rancher, and
forest landowner participation in carbon markets.
‘‘(b) ESTABLISHMENT.—The Secretary shall establish guidelines
under subsection (a) for use in developing the following:
‘‘(1) A procedure to measure environmental services benefits.
‘‘(2) A protocol to report environmental services benefits.
‘‘(3) A registry to collect, record and maintain the benefits
measured.
‘‘(c) VERIFICATION REQUIREMENTS.—
‘‘(1) VERIFICATION OF REPORTS.—The Secretary shall establish guidelines for a process to verify that a farmer, rancher,
or forest landowner who reports an environmental services

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benefit pursuant to the protocol required by paragraph (2)
of subsection (b) for inclusion in the registry required by paragraph (3) of such subsection has implemented the conservation
or land management activity covered by the report.
‘‘(2) ROLE OF THIRD PARTIES.—In establishing the
verification guidelines required by paragraph (1), the Secretary
shall consider the role of third-parties in conducting independent verification of benefits produced for environmental
services markets and other functions, as determined by the
Secretary.
‘‘(d) USE OF EXISTING INFORMATION.—In carrying out subsection
(b), the Secretary shall build on activities or information in existence
on the date of the enactment of the Food, Conservation, and Energy
Act of 2008 regarding environmental services markets.
‘‘(e) CONSULTATION.—In carrying out this section, the Secretary
shall consult with the following:
‘‘(1) Federal and State government agencies.
‘‘(2) Nongovernmental interests including—
‘‘(A) farm, ranch, and forestry producers;
‘‘(B) financial institutions involved in environmental
services trading;
‘‘(C) institutions of higher education with relevant
expertise or experience;
‘‘(D) nongovernmental organizations with relevant
expertise or experience; and
‘‘(E) private sector representatives with relevant expertise or experience.
‘‘(3) Other interested persons, as determined by the Secretary.’’.
SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES
PROGRAM.

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

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16 USC 3851.

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

‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary shall establish a conservation experienced services program (in this section
referred to as the ‘ACES Program’) for the purpose of utilizing
the talents of individuals who are age 55 or older, but who are
not employees of the Department of Agriculture or a State agriculture department, to provide technical services in support of the
conservation-related programs and authorities carried out by the
Secretary. Such technical services may include conservation planning assistance, technical consultation, and assistance with design
and implementation of conservation practices.
‘‘(b) PROGRAM AGREEMENTS.—
‘‘(1) RELATION TO OLDER AMERICAN COMMUNITY SERVICE
EMPLOYMENT PROGRAM.—Notwithstanding any other provision
of law relating to Federal grants, cooperative agreements, or
contracts, to carry out the ACES program during a fiscal year,
the Secretary may enter into agreements with nonprofit private
agencies and organizations eligible to receive grants for that
fiscal year under the Community Service Senior Opportunities
Act (42 U.S.C. 3056 et seq.) to secure participants for the

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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 substantially-equivalent job or function with the Department; or
‘‘(C) affect existing contracts for services.
‘‘(c) FUNDING SOURCE.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the Secretary may carry out the ACES program using funds
made available to carry out each program under this title.
‘‘(2) EXCLUSIONS.—Funds made available to carry out the
following programs may not be used to carry out the ACES
program:
‘‘(A) The conservation reserve program.
‘‘(B) The wetlands reserve program.
‘‘(C) The grassland reserve program.
‘‘(D) The conservation stewardship program.
‘‘(d) LIABILITY.—An individual providing technical services
under the ACES program is deemed to be an employee of the
United States Government for purposes of chapter 171 of title
28, United States Code, if the individual—
‘‘(1) is providing technical services pursuant to an agreement entered into under subsection (b); and
‘‘(2) is acting within the scope of the agreement.’’.
SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND
THEIR RESPONSIBILITIES.

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

‘‘Subtitle G—State Technical Committees

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

16 USC 3861.

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a technical
committee in each State to assist the Secretary in the considerations
relating to implementation and technical aspects of the conservation
programs under this title.
‘‘(b) STANDARDS.—Not later than 180 days after the date of
enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall develop—
‘‘(1) standard operating procedures to standardize the operations of State technical committees; and
‘‘(2) standards to be used by State technical committees
in the development of technical guidelines under section 1262(b)
for the implementation of the conservation provisions of this
title.
‘‘(c) COMPOSITION.—Each State technical committee shall be
composed of agricultural producers and other professionals that

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represent a variety of disciplines in the soil, water, wetland, and
wildlife sciences. The technical committee for a State shall include
representatives from among the following:
‘‘(1) The Natural Resources Conservation Service.
‘‘(2) The Farm Service Agency.
‘‘(3) The Forest Service.
‘‘(4) The National Institute of Food and Agriculture.
‘‘(5) The State fish and wildlife agency.
‘‘(6) The State forester or equivalent State official.
‘‘(7) The State water resources agency.
‘‘(8) The State department of agriculture.
‘‘(9) The State association of soil and water conservation
districts.
‘‘(10) Agricultural producers representing the variety of
crops and livestock or poultry raised within the State.
‘‘(11) Owners of nonindustrial private forest land.
‘‘(12) Nonprofit organizations within the meaning of section
501(c)(3) of the Internal Revenue Code of 1986 with demonstrable conservation expertise and experience working with
agriculture producers in the State.
‘‘(13) Agribusiness.
16 USC 3862.

‘‘SEC. 1262. RESPONSIBILITIES.

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‘‘(a) IN GENERAL.—Each State technical committee established
under section 1261 shall meet regularly to provide information,
analysis, and recommendations to appropriate officials of the
Department of Agriculture who are charged with implementing
the conservation provisions of this title.
‘‘(b) PUBLIC NOTICE AND ATTENDANCE.—Each State technical
committee shall provide public notice of, and permit public attendance at, meetings considering issues of concern related to carrying
out this title.
‘‘(c) ROLE.—
‘‘(1) IN GENERAL.—The role of State technical committees
is advisory in nature, and such committees shall have no
implementation or enforcement authority. However, the Secretary shall give strong consideration to the recommendations
of such committees in administering the programs under this
title.
‘‘(2) ADVISORY ROLE IN ESTABLISHING PROGRAM PRIORITIES
AND CRITERIA.—Each State technical committee shall advise
the Secretary in establishing priorities and criteria for the
programs in this title, including the review of whether local
working groups are addressing those priorities.
‘‘(d) FACA REQUIREMENTS.—
‘‘(1) EXEMPTION.—Each State technical committee shall be
exempt from the Federal Advisory Committee Act (5 U.S.C.
App.).
‘‘(2) LOCAL WORKING GROUPS.—For purposes of the Federal
Advisory Committee Act (5 U.S.C. App.), any local working
group established under this subtitle shall be considered to
be a subcommittee of the applicable State technical committee.’’.

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122 STAT. 1813

Subtitle I—Conservation Programs Under
Other Laws
SEC. 2801. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

(a) ELIGIBLE STATES.—Section 524(b)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(1)) is amended by inserting
‘‘Hawaii,’’ after ‘‘Delaware,’’.
(b) FUNDING.—Section 524(b)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended—
(1) in clause (i), by striking ‘‘Except as provided in clauses
(ii) and (iii)’’ and inserting ‘‘Except as provided in clause (ii)’’;
and
(2) by striking clauses (ii) and (iii) and inserting the following new clause:
‘‘(ii) EXCEPTION FOR FISCAL YEARS 2008 THROUGH
2012.—For each of fiscal years 2008 through 2012, the
Commodity Credit Corporation shall make available
to carry out this subsection $15,000,000.’’.
(c) CERTAIN USES.—Section 524(b)(4) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)) is amended by adding at the end
the following new subparagraph:
‘‘(C) CERTAIN USES.—Of the amounts made available
to carry out this subsection for a fiscal year, the Commodity
Credit Corporation shall use not less than—
‘‘(i) 50 percent to carry out subparagraphs (A),
(B), and (C) of paragraph (2) through the Natural
Resources Conservation Service;
‘‘(ii) 10 percent to provide organic certification cost
share assistance through the Agricultural Marketing
Service; and
‘‘(iii) 40 percent to conduct activities to carry out
subparagraph (F) of paragraph (2) through the Risk
Management Agency.’’.
SEC. 2802. TECHNICAL ASSISTANCE UNDER SOIL CONSERVATION AND
DOMESTIC ALLOTMENT ACT.

(a) PREVENTION OF SOIL EROSION.—
(1) IN GENERAL.—The first section of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590a) is amended—
(A) by striking ‘‘That it’’ and inserting the following:
‘‘SECTION 1. PURPOSE.

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‘‘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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‘‘SEC. 10. DEFINITIONS.

‘‘In this Act:
‘‘(1) AGRICULTURAL COMMODITY.—The term ‘agricultural
commodity’ means—
‘‘(A) an agricultural commodity; and
‘‘(B) any regional or market classification, type, or
grade of an agricultural commodity.
‘‘(2) TECHNICAL ASSISTANCE.—
‘‘(A) IN GENERAL.—The term ‘technical assistance’
means technical expertise, information, and tools necessary
for the conservation of natural resources on land active
in agricultural, forestry, or related uses.
‘‘(B) INCLUSIONS.—The term ‘technical assistance’
includes—
‘‘(i) technical services provided directly to farmers,
ranchers, and other eligible entities, such as conservation planning, technical consultation, and assistance
with design and implementation of conservation practices; and
‘‘(ii) technical infrastructure, including activities,
processes, tools, and agency functions needed to support delivery of technical services, such as technical
standards, resource inventories, training, data, technology, monitoring, and effects analyses.’’.
SEC. 2803. SMALL WATERSHED REHABILITATION PROGRAM.

(a) AVAILABILITY OF FUNDS.—Section 14(h)(1) of the Watershed
Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is
amended by adding at the end the following new subparagraph:
‘‘(G) $100,000,000 for fiscal year 2009, to be available
until expended.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 14(h)(2)(E) of
the Watershed Protection and Flood Prevention Act (16 U.S.C.
1012(h)(2)(E)) is amended by striking ‘‘fiscal year 2007’’ and
inserting ‘‘each of fiscal years 2008 through 2012’’.

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

(a) CONGRESSIONAL FINDINGS.—Section 2 of the Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended—
(1) in paragraph (2), by striking ‘‘base, of the’’ and inserting
‘‘base of the’’; and
(2) in paragraph (3), by striking ‘‘(3)’’ and all that follows
through ‘‘Since individual’’ and inserting the following:
‘‘(3) Appraisal and inventory of resources, assessment and
inventory of conservation needs, evaluation of the effects of
conservation practices, and analyses of alternative approaches
to existing conservation programs are basic to effective soil,
water, and related natural resource conservation.
‘‘(4) Since individual’’.
(b) CONTINUING APPRAISAL OF SOIL, WATER, AND RELATED
RESOURCES.—Section 5 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2004) is amended—
(1) in subsection (a)—
(A) in paragraph (5), by striking ‘‘and’’ at the end;
(B) in paragraph (6), by striking the period at the
end and inserting ‘‘; and’’; and

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(C) by adding at the end the following new paragraph:
‘‘(7) data on conservation plans, conservation practices
planned or implemented, environmental outcomes, economic
costs, and related matters under conservation programs
administered by the Secretary.’’;
(2) by redesignating subsection (d) as subsection (e);
(3) by inserting after subsection (c) the following new subsection:
‘‘(d) EVALUATION OF APPRAISAL.—In conducting the appraisal
described in subsection (a), the Secretary shall concurrently solicit
and evaluate recommendations for improving the appraisal,
including the content, scope, process, participation in, and other
elements of the appraisal, as determined by the Secretary.’’; and
(4) in subsection (e), as redesignated by paragraph (2),
by striking the first sentence and inserting the following: ‘‘The
Secretary shall conduct comprehensive appraisals under this
section, to be completed by December 31, 2010, and December
31, 2015.’’.
(c) SOIL AND WATER CONSERVATION PROGRAM.—Section 6 of
the Soil and Water Resources Conservation Act of 1977 (16 U.S.C.
2005) is amended—
(1) by redesignating subsection (b) as subsection (d);
(2) by inserting after subsection (a) the following new subsections:
‘‘(b) EVALUATION OF EXISTING CONSERVATION PROGRAMS.—In
evaluating existing conservation programs, the Secretary shall
emphasize demonstration, innovation, and monitoring of specific
program components in order to encourage further development
and adoption of practices and performance-based standards.
‘‘(c) IMPROVEMENT TO PROGRAM.—In developing a national soil
and water conservation program under subsection (a), the Secretary
shall solicit and evaluate recommendations for improving the program, including the content, scope, process, participation in, and
other elements of the program, as determined by the Secretary.’’;
and
(3) in subsection (d), as redesignated by paragraph (1),
by striking ‘‘December 31, 1979’’ and all that follows through
‘‘December 31, 2007’’ and inserting ‘‘December 31, 2011, and
December 31, 2016’’.
(d) REPORTS TO CONGRESS.—Section 7 of the Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2006) is amended
to read as follows:

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‘‘SEC. 7. REPORTS TO CONGRESS.

President.

‘‘(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—

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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 Department of Agriculture for improving the resource appraisal and
national conservation program required under this Act, based on
the recommendations received under sections 5(d) and 6(c).’’.
(e) TERMINATION OF PROGRAM.—Section 10 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is
amended by striking ‘‘2008’’ and inserting ‘‘2018’’.

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SEC. 2805. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

(a) LOCALLY LED PLANNING PROCESS.—Section 1528 of the Agriculture and Food Act of 1981 (16 U.S.C. 3451) is amended—
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ‘‘planning process’’ and inserting ‘‘locally led
planning process’’;
(2) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (8), respectively, and moving those paragraphs so as
to appear in numerical order;
(3) in paragraph (8) (as so redesignated)—
(A) by striking ‘‘PLANNING PROCESS’’ and inserting
‘‘LOCALLY LED PLANNING PROCESS’’; and
(B) by striking ‘‘council’’ and inserting ‘‘locally led
council’’.
(b) AUTHORIZED TECHNICAL ASSISTANCE.—Section 1528(13) of
the Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is
amended by striking subparagraphs (C) and (D) and inserting the
following new subparagraphs:
‘‘(C) providing assistance for the implementation of
area plans and projects; and
‘‘(D) providing services that involve the resources of
Department of Agriculture programs in a local community,
as defined in the locally led planning process.’’.
(c) IMPROVED PROVISION OF TECHNICAL ASSISTANCE.—Section
1531 of the Agriculture and Food Act of 1981 (16 U.S.C. 3454)
is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘In carrying’’;
and
(2) by adding at the end the following new subsection:
‘‘(b) COORDINATOR.—
‘‘(1) IN GENERAL.—To improve the provision of technical
assistance to councils under this subtitle, the Secretary shall
designate for each council an individual to be the coordinator
for the council.

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‘‘(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.

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

(a) IN GENERAL.—Section 202(a) of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding
at the end the following new paragraph:
‘‘(7) BASIN STATES PROGRAM.—
‘‘(A) IN GENERAL.—A Basin States Program that the
Secretary, acting through the Bureau of Reclamation, shall
implement to carry out salinity control activities in the
Colorado River Basin using funds made available under
section 205(f).
‘‘(B) ASSISTANCE.—The Secretary, in consultation with
the Colorado River Basin Salinity Control Advisory Council,
shall carry out this paragraph using funds described in
subparagraph (A) directly or by providing grants, grant
commitments, or advance funds to Federal or non-Federal
entities under such terms and conditions as the Secretary
may require.
‘‘(C) ACTIVITIES.—Funds described in subparagraph (A)
shall be used to carry out, as determined by the Secretary—
‘‘(i) cost-effective measures and associated works
to reduce salinity from saline springs, leaking wells,
irrigation sources, industrial sources, erosion of public
and private land, or other sources;
‘‘(ii) operation and maintenance of salinity control
features constructed under the Colorado River Basin
salinity control program; and
‘‘(iii) studies, planning, and administration of
salinity control activities.
‘‘(D) REPORT.—
‘‘(i) IN GENERAL.—Not later than 30 days before
implementing the program established under this paragraph, the Secretary shall submit to the appropriate
committees of Congress a planning report that
describes the proposed implementation of the program.
‘‘(ii) IMPLEMENTATION.—The Secretary may not
expend funds to implement the program established
under this paragraph before the expiration of the 30day period beginning on the date on which the Secretary submits the report, or any revision to the report,
under clause (i).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 202 of the Colorado River Basin Salinity Control
Act (43 U.S.C. 1592) is amended—
(A) in subsection (a), in the matter preceding paragraph
(1), by striking ‘‘program’’ and inserting ‘‘programs’’; and
(B) in subsection (b)(4)—
(i) by striking ‘‘program’’ and inserting ‘‘programs’’;
and
(ii) by striking ‘‘and (6)’’ and inserting ‘‘(6), and
(7)’’.

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(2) Section 205 of the Colorado River Basin Salinity Control
Act (43 U.S.C. 1595) is amended by striking subsection (f)
and inserting the following new subsection:
‘‘(f) UP-FRONT COST SHARE.—
‘‘(1) IN GENERAL.—Effective beginning on the date of enactment of this paragraph, subject to paragraph (3), the cost
share obligations required by this section shall be met through
an up-front cost share from the Basin Funds, in the same
proportions as the cost allocations required under subsection
(a), as provided in paragraph (2).
‘‘(2) BASIN STATES PROGRAM.—The Secretary shall expend
the required cost share funds described in paragraph (1)
through the Basin States Program for salinity control activities
established under section 202(a)(7).
‘‘(3) EXISTING SALINITY CONTROL ACTIVITIES.—The cost
share contribution required by this section shall continue to
be met through repayment in a manner consistent with this
section for all salinity control activities for which repayment
was commenced prior to the date of enactment of this paragraph.’’.

Effective date.

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

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Texas.

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.

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122 STAT. 1819

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

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

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SEC. 2903. TRANSITION.

(a) CONTINUATION OF PROGRAMS IN FISCAL YEAR 2008.—Except
as otherwise provided by an amendment made by this title, the
Secretary of Agriculture shall continue to carry out any program
or activity covered by title XII of the Food Security Act (16 U.S.C.
3801 et seq.) until September 30, 2008, using the provisions of
law applicable to the program or activity as they existed on the
day before the date of the enactment of this Act and using funds
made available under such title for fiscal year 2008 for the program
or activity.
(b) GROUND AND SURFACE WATER CONSERVATION PROGRAM.—
During the period beginning on the date of the enactment of this
Act and ending on September 30, 2008, the Secretary of Agriculture
shall continue to carry out the ground and surface water conservation program under section 1240I of the Food Security Act of 1985
(16 U.S.C. 3839aa–9), as in effect before the amendment made
by section 2510, using the terms, conditions, and funds available
to the Secretary to carry out such program on the day before
the date of the enactment of this Act.

16 USC 3801
note.

SEC. 2904. REGULATIONS.

16 USC 3801
note.
Deadline.

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

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Time period.
16 USC
3839aa–9 note.

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TITLE III—TRADE
Subtitle A—Food for Peace Act
SEC. 3001. SHORT TITLE.

22 USC 2431e.

(a) IN GENERAL.—Section 1 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 note; 104 Stat.
3633) is amended by striking ‘‘Agricultural Trade Development
and Assistance Act of 1954’’ and inserting ‘‘Food for Peace Act’’.
(b) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—Each provision of law described in paragraph (2) is amended—
(A) by striking ‘‘Agricultural Trade Development and
Assistance Act of 1954’’ each place it appears and inserting
‘‘Food for Peace Act’’; and
(B) in each section heading, by striking ‘‘AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF
1954’’ each place it appears and inserting ‘‘FOOD FOR PEACE
ACT’’.
(2) PROVISIONS OF LAW.—The provisions of law referred

7 USC 1446c–1.
7 USC 1431.

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7 USC 1691 note,
5201.
7 USC 5676,
5693, 5713.
12 USC 635i–6.

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to in paragraph (1) are the following:
(A) The Agriculture and Food Act of 1981 (Public Law
97–98; 95 Stat. 1213).
(B) The Agricultural Act of 1949 (7 U.S.C. 1421 et
seq.).
(C) Section 9(a) of the Military Construction Codification Act (7 U.S.C. 1704c).
(D) Section 201 of the Africa: Seeds of Hope Act of
1998 (7 U.S.C. 1721 note; Public Law 105–385).
(E) The Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f–1 et seq.).
(F) The Food for Progress Act of 1985 (7 U.S.C. 1736o).
(G) Section 3107 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 1736o–1).
(H) Sections 605B and 606C of the Act of August
28, 1954 (commonly known as the ‘‘Agricultural Act of
1954’’) (7 U.S.C. 1765b, 1766b).
(I) Section 206 of the Agricultural Act of 1956 (7 U.S.C.
1856).
(J) The Agricultural Competitiveness and Trade Act
of 1988 (7 U.S.C. 5201 et seq.).
(K) The Agricultural Trade Act of 1978 (7 U.S.C. 5601
et seq.).
(L) The Export-Import Bank Act of 1945 (12 U.S.C.
635 et seq.).
(M) Section 301 of title 13, United States Code.
(N) Section 8 of the Endangered Species Act of 1973
(16 U.S.C. 1537).
(O) Section 604 of the Enterprise for the Americas
Act of 1992 (22 U.S.C. 2077).
(P) Section 5 of the International Health Research
Act of 1960 (22 U.S.C. 2103).
(Q) The Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.).
(R) The Horn of Africa Recovery and Food Security
Act (22 U.S.C. 2151 note; Public Law 102–274).

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 1821

(S) Section 105 of the Mutual Educational and Cultural
Exchange Act of 1961 (22 U.S.C. 2455).
(T) Section 35 of the Foreign Military Sales Act (22
U.S.C. 2775).
(U) The Support for East European Democracy (SEED)
Act of 1989 (22 U.S.C. 5401 et seq.).
(V) Section 1707 of the Cuban Democracy Act of 1992
(22 U.S.C. 6006).
(W) The Cuban Liberty and Democratic Solidarity
(LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.).
(X) Section 902 of the Trade Sanctions Reform and
Export Enhancement Act of 2000 (22 U.S.C. 7201).
(Y) Chapter 553 of title 46, United State Code.
(Z) Section 4 of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98c).
(AA) The Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101–624; 104 Stat. 3359).
(BB) Section 738 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2001 (Public Law 106–387; 114 Stat
1549A–34).
(c) REFERENCES.—Any reference in any Federal, State, tribal,
or local law (including regulations) to the ‘‘Agricultural Trade
Development and Assistance Act of 1954’’ shall be considered to
be a reference to the ‘‘Food for Peace Act’’.

22 USC 5413,
5423, 5425.

22 USC 6041,
6062.

46 USC 55314,
55316.

7 USC 1765d–1.

7 USC 1691 note.

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.

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SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

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

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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 disincentives to local agricultural production and marketing
and with minimal potential for disruption of commercial markets; and’’.

SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

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

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

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SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

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

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SEC. 3007. GENERAL AUTHORITY.

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

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SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

Section 202 of the Food for Peace Act (7 U.S.C. 1722) is
amended—
(1) in subsection (b)(2), by striking ‘‘may not deny a request
for funds’’ and inserting ‘‘may not use as a sole rationale
for denying a request for funds’’;
(2) in subsection (e)(1)—
(A) in the matter preceding subparagraph (A), by
striking ‘‘not less than 5 percent nor more than 10 percent’’
and inserting ‘‘not less than 7.5 percent nor more than
13 percent’’;
(B) in subparagraph (A), by striking ‘‘; and’’ and
inserting a semicolon;
(C) in subparagraph (B), by striking the period at
the end and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(C) improving and implementing methodologies for
food aid programs, including needs assessments (upon the
request of the Administrator), monitoring, and evaluation.’’;
and
(3) by striking subsection (h) and inserting the following:
‘‘(h) FOOD AID QUALITY.—
‘‘(1) IN GENERAL.—The Administrator shall use funds made
available for fiscal year 2009 and subsequent fiscal years to
carry out this title—
‘‘(A) to assess the types and quality of agricultural
commodities and products donated for food aid;
‘‘(B) to adjust products and formulations (including
the potential introduction of new fortificants and products)
as necessary to cost-effectively meet nutrient needs of target populations; and
‘‘(C) to test prototypes.
‘‘(2) ADMINISTRATION.—The Administrator—
‘‘(A) shall carry out this subsection in consultation
with and through independent entities with proven expertise in food aid commodity quality enhancements;
‘‘(B) may enter into contracts to obtain the services
of such entities; and

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‘‘(C) shall consult with the Food Aid Consultative
Group on how to carry out this subsection.
‘‘(3) FUNDING LIMITATION.—Of the funds made available
under section 207(f), for fiscal years 2009 through 2011, not
more than $4,500,000 may be used to carry out this subsection.’’.

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

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

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

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

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Procedures.

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Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is
amended—
(1) in subsection (a)(3), by striking ‘‘and the conditions
that must be met for the approval of such proposal’’;
(2) in subsection (c), by striking paragraph (3);
(3) by striking subsection (d) and inserting the following:
‘‘(d) TIMELY PROVISION OF COMMODITIES.—The Administrator,
in consultation with the Secretary, shall develop procedures that
ensure expedited processing of commodity call forwards in order
to provide commodities overseas in a timely manner and to the
extent feasible, according to planned delivery schedules.’’; and
(4) by adding at the end the following:
‘‘(f) PROGRAM OVERSIGHT, MONITORING, AND EVALUATION.—
‘‘(1) DUTIES OF ADMINISTRATOR.—The Administrator, in consultation with the Secretary, shall establish systems and carry
out activities—
‘‘(A) to determine the need for assistance provided
under this title; and
‘‘(B) to improve, monitor, and evaluate the effectiveness
and efficiency of the assistance provided under this title
to maximize the impact of the assistance.
‘‘(2) REQUIREMENTS OF SYSTEMS AND ACTIVITIES.—The systems and activities described in paragraph (1) shall include—

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122 STAT. 1825

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

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122 STAT. 1826

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$8,000,000 may be used by the Administrator to carry
out paragraph (2)(E).
‘‘(ii) CONDITION.—No funds shall be made available
under subparagraph (A), in accordance with clause
(i), unless not less than $8,000,000 is made available
under chapter 1 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.) for such purposes
for such fiscal year.
‘‘(g) PROJECT REPORTING.—
‘‘(1) IN GENERAL.—In submitting project reports to the
Administrator, a private voluntary organization or cooperative
shall provide a copy of the report in such form as is necessary
for the report to be displayed for public use on the website
of the United States Agency for International Development.
‘‘(2) CONFIDENTIAL INFORMATION.—An organization or
cooperative described in paragraph (1) may omit any confidential information from the copy of the report submitted for
public display under that paragraph.’’.

SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF SHELFSTABLE 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’’.

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SEC. 3015. DEFINITIONS.

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

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SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

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

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

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

(a) ANNUAL REPORTS.—Section 407 of the Food for Peace Act
(7 U.S.C. 1736a) is amended by striking subsection (f) and inserting
the following:
‘‘(f) ANNUAL REPORTS.—
‘‘(1) ANNUAL REPORT REGARDING AGRICULTURAL TRADE PROGRAMS AND ACTIVITIES.—
‘‘(A) ANNUAL REPORT.—Not later than April 1 of each
fiscal year, the Administrator and the Secretary shall
jointly prepare and submit to the appropriate committees
of Congress a report regarding each program and activity
carried out under this Act during the prior fiscal year.
‘‘(B) CONTENTS.—An annual report described in
subparagraph (A) shall include, with respect to the prior
fiscal year—
‘‘(i) a list that contains a description of each
country and organization that receives food and other
assistance under this Act (including the quantity of
food and assistance provided to each country and
organization);

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‘‘(ii) a general description of each project and
activity implemented under this Act (including each
activity funded through the use of local currencies);
‘‘(iii) a statement describing the quantity of agricultural commodities made available to each country
pursuant to—
‘‘(I) section 416(b) of the Agricultural Act of
1949 (7 U.S.C. 1431(b)); and
‘‘(II) the Food for Progress Act of 1985 (7
U.S.C. 1736o);
‘‘(iv) an assessment of the progress made through
programs under this Act towards reducing food insecurity in the populations receiving food assistance from
the United States;
‘‘(v) a description of efforts undertaken by the Food
Aid Consultative Group under section 205 to achieve
an integrated and effective food assistance program;
‘‘(vi) an assessment of—
‘‘(I) each program oversight, monitoring, and
evaluation system implemented under section
207(f); and
‘‘(II) the impact of each program oversight,
monitoring, and evaluation system on the effectiveness and efficiency of assistance provided under
this title; and
‘‘(vii) an assessment of the progress made by the
Administrator in addressing issues relating to quality
with respect to the provision of food assistance.
‘‘(2) ANNUAL REPORT REGARDING THE PROVISION OF AGRICULTURAL COMMODITIES TO FOREIGN COUNTRIES.—
‘‘(A) ANNUAL REPORT.—Not later than February 1 of
each fiscal year, the Administrator shall prepare and
submit to the appropriate committees of Congress a report
regarding the administration of food assistance programs
under title II to benefit foreign countries during the prior
fiscal year.
‘‘(B) CONTENTS.—An annual report described in
subparagraph (A) shall include, with respect to the prior
fiscal year—
‘‘(i) a list that contains a description of each program, country, and commodity approved for assistance
under section 207; and
‘‘(ii) a statement that contains a description of
the total amount of funds approved for transportation
and administrative costs under section 207.’’.
(b) CONFORMING AMENDMENT.—Section 207(e) of the Food for
Peace Act (7 U.S.C. 1726a(e)) is amended—
(1) by striking ‘‘TIMELY APPROVAL.’’ and all that follows
through ‘‘The Administrator’’ and inserting ‘‘TIMELY
APPROVAL.—The Administrator’’; and
(2) by striking paragraph (2).

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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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SEC. 3020. AUTHORIZATION OF APPROPRIATIONS.

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

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

President.

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SEC. 3022. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is
amended—
(1) by striking ‘‘To the maximum’’ and inserting the following:
‘‘(a) IN GENERAL.—To the maximum’’; and
(2) by adding at the end the following:
‘‘(b) REPORT REGARDING EFFORTS TO IMPROVE PROCUREMENT
PLANNING.—

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

SEC. 3023. MICRONUTRIENT FORTIFICATION PROGRAMS.

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

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

(a) MINIMUM FUNDING.—Section 501(d) of the Food for Peace
Act (7 U.S.C. 1737(d)) is amended in the matter preceding paragraph (1)—
(1) by striking ‘‘not less than’’ and inserting ‘‘not less than
the greater of $10,000,000 or’’; and

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(2) by striking ‘‘2002 through 2007’’ and inserting ‘‘2008
through 2012’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 501(e) of the
Food for Peace Act (7 U.S.C. 1737(e)) is amended by striking paragraph (1) and inserting the following:
‘‘(1) IN GENERAL.—There are authorized to be appropriated
for each of fiscal years 2008 through 2012 to carry out the
programs under this section—
‘‘(A) $10,000,000 for sub-Saharan African and Caribbean Basin countries; and
‘‘(B) $5,000,000 for other developing or middle-income
countries or emerging markets not described in subparagraph (A).’’.

Subtitle B—Agricultural Trade Act of 1978
and Related Statutes

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SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.

(a) REPEAL OF SUPPLIER CREDIT GUARANTEE PROGRAM AND
INTERMEDIATE EXPORT CREDIT GUARANTEE PROGRAM.—Section 202
of the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended—
(1) in subsection (a)—
(A) by striking ‘‘GUARANTEES.—’’ and all that follows
through ‘‘The Commodity’’ in paragraph (1) and inserting
‘‘GUARANTEES.—The Commodity’’; and
(B) by striking paragraphs (2) and (3);
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) through (l) as subsections (b) through (j), respectively; and
(4) by adding at the end the following:
‘‘(k) ADMINISTRATION.—
‘‘(1) DEFINITION OF LONG TERM.—In this subsection, the
term ‘long term’ means a period of 10 or more years.
‘‘(2) GUARANTEES.—In administering the export credit
guarantees authorized under this section, the Secretary shall—
‘‘(A) maximize the export sales of agricultural commodities;
‘‘(B) maximize the export credit guarantees that are
made available and used during the course of a fiscal
year;
‘‘(C) develop an approach to risk evaluation that facilitates accurate country risk designations and timely adjustments to the designations (on an ongoing basis) in response
to material changes in country risk conditions, with ongoing
opportunity for input and evaluation from the private
sector;
‘‘(D) adjust risk-based guarantees as necessary to
ensure program effectiveness and United States competitiveness; and
‘‘(E) work with industry to ensure, to the maximum
extent practicable, that risk-based fees associated with the
guarantees cover, but do not exceed, the operating costs
and losses over the long term.’’.
(b) FUNDING LEVELS.—Section 211 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5641) is amended by striking subsection
(b) and inserting the following:

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‘‘(b) EXPORT CREDIT GUARANTEE PROGRAMS.—The Commodity
Credit Corporation shall make available for each of fiscal years
1996 through 2012 credit guarantees under section 202(a) in an
amount equal to but not more than the lesser of—
‘‘(1) $5,500,000,000 in credit guarantees; or
‘‘(2) the sum of—
‘‘(A) the amount of credit guarantees that the Commodity Credit Corporation can make available using budget
authority of $40,000,000 for each fiscal year for the costs
of the credit guarantees; and
‘‘(B) the amount of credit guarantees that the Commodity Credit Corporation can make available using unobligated budget authority for prior fiscal years.’’.
(c) CONFORMING AMENDMENTS.—Section 202 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5622) is amended—
(1) in subsection (b)(4) (as redesignated by subsection
(a)(3)), by striking ‘‘, consistent with the provisions of subsection
(c)’’;
(2) in subsection (d) (as redesignated by subsection (a)(3))—
(A) by striking ‘‘(1)’’ and all that follows through ‘‘The
Commodity’’ and inserting ‘‘The Commodity’’; and
(B) by striking paragraph (2); and
(3) in subsection (g)(2) (as redesignated by subsection
(a)(3)), by striking ‘‘subsections (a) and (b)’’ and inserting ‘‘subsection (a)’’.
SEC. 3102. MARKET ACCESS PROGRAM.

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

(a) IN GENERAL.—Section 301 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5651) is repealed.
(b) CONFORMING AMENDMENTS.—The Agricultural Trade Act
of 1978 is amended—
(1) in title III, by striking the title heading and inserting
the following:

‘‘TITLE III—BARRIERS TO EXPORTS’’;
(2) by redesignating sections 302 and 303 (7 U.S.C. 5652
and 5653) as sections 301 and 302, respectively;
(3) in section 302 (as redesignated by paragraph (2)), by
striking ‘‘, such as that established under section 301,’’;
(4) in section 401 (7 U.S.C. 5661)—
(A) in subsection (a), by striking ‘‘section 201, 202,
or 301’’ and inserting ‘‘section 201 or 202’’; and
(B) in subsection (b), by striking ‘‘sections 201, 202,
and 301’’ and inserting ‘‘sections 201 and 202’’; and

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7 USC 5653.

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

(a) REPORT TO CONGRESS.—Section 702(c) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5722(c)) is amended by striking ‘‘Committee on International Relations’’ and inserting ‘‘Committee on
Foreign Affairs’’.
(b) FUNDING.—Section 703(a) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5723(a)) is amended by striking ‘‘2002 through
2007’’ and inserting ‘‘2008 through 2012’’.
SEC. 3105. FOOD FOR PROGRESS ACT OF 1985.

(a) IN GENERAL.—The Food for Progress Act of 1985 (7 U.S.C.
1736o) is amended by striking ‘‘2007’’ each place it appears and
inserting ‘‘2012’’.
(b) DESIGNATION OF PROJECT IN SUB-SAHARAN AFRICA.—The
Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended in
subsection (f) by adding at the end the following:
‘‘(6) PROJECT IN MALAWI.—
‘‘(A) IN GENERAL.—In carrying out this section during
fiscal year 2009, the President shall approve not less than
1 multiyear project for Malawi—
‘‘(i) to promote sustainable agriculture; and
‘‘(ii) to increase the number of women in leadership
positions.
‘‘(B) USE OF ELIGIBLE COMMODITIES.—Of the eligible
commodities used to carry out this section during the period
in which the project described in subparagraph (A) is carried out, the President shall carry out the project using
eligible commodities with a total value of not less than
$3,000,000 during the course of the project.’’.

President.

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

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

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Subtitle C—Miscellaneous

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SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

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

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

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‘‘(1) IN GENERAL.—The Secretary shall provide for the
management of eligible commodities and funds held in the
trust in a manner that is consistent with maximizing the value
of the trust, as determined by the Secretary.
‘‘(2) ELIGIBLE COMMODITIES.—The Secretary shall provide—
’’;
(C) in paragraph (2) (as redesignated by subparagraph
(B))—
(i) in subparagraph (B) (as redesignated by
subparagraph (A)), by striking ‘‘and’’ at the end; and
(ii) in subparagraph (C) (as redesignated by
subparagraph (A)), by striking the period at the end
and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(3) FUNDS.—
‘‘(A) EXCHANGES.—If any commodity held in the trust
is exchanged for funds under subsection (b)(1)(D)(ii), the
funds shall be held in the trust until the date on which
the funds are released in the case of an emergency under
subsection (c).
‘‘(B) INVESTMENT.—The Secretary may invest funds
held in the trust in any short-term obligation of the United
States or any other low-risk short-term instrument or security insured by the Federal Government in which a regulated insurance company may invest under the laws of
the District of Columbia.’’; and
(5) in subsection (h), in each of paragraphs (1) and (2),
by striking ‘‘2007’’ each place it appears and inserting ‘‘2012’’.

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SEC. 3202. GLOBAL CROP DIVERSITY TRUST.

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

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122 STAT. 1837

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

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

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

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

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(B) 20 years.’’; and
(3) in subsection (d)(1)(A)(i) by striking ‘‘2007’’ and inserting
‘‘2012’’.

22 USC 7112
note.

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Deadlines.
Recommendations.

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

(a) DEFINITIONS.—In this section:
(1) CHILD LABOR.—The term ‘‘child labor’’ means the worst
forms of child labor as defined in International Labor Convention 182, the Convention Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child
Labor, done at Geneva on June 17, 1999.
(2) CONSULTATIVE GROUP.—The term ‘‘Consultative Group’’
means the Consultative Group to Eliminate the Use of Child
Labor and Forced Labor in Imported Agricultural Products
established under subsection (b).
(3) FORCED LABOR.—The term ‘‘forced labor’’ means all
work or service—
(A) that is exacted from any individual under menace
of any penalty for nonperformance of the work or service,
and for which—
(i) the work or service is not offered voluntarily;
or
(ii) the work or service is performed as a result
of coercion, debt bondage, or involuntary servitude (as
those terms are defined in section 103 of the Trafficking Victims Protection Act of 2000 (22 U.S.C.
7102)); and
(B) by 1 or more individuals who, at the time of performing the work or service, were being subjected to a
severe form of trafficking in persons (as that term is defined
in that section).
(b) ESTABLISHMENT.—There is established a group to be known
as the ‘‘Consultative Group to Eliminate the Use of Child Labor
and Forced Labor in Imported Agricultural Products’’ to develop
recommendations relating to guidelines to reduce the likelihood
that agricultural products or commodities imported into the United
States are produced with the use of forced labor and child labor.
(c) DUTIES.—
(1) IN GENERAL.—Not later than 2 years after the date
of enactment of this Act and in accordance with section 105(d)
of the Trafficking Victims Protection Act of 2000 (22 U.S.C.
7103(d)), as applicable to the importation of agricultural products made with the use of child labor or forced labor, the
Consultative Group shall develop, and submit to the Secretary,
recommendations relating to a standard set of practices for
independent, third-party monitoring and verification for the
production, processing, and distribution of agricultural products
or commodities to reduce the likelihood that agricultural products or commodities imported into the United States are produced with the use of forced labor or child labor.
(2) GUIDELINES.—
(A) IN GENERAL.—Not later than 1 year after the date
on which the Secretary receives recommendations under
paragraph (1), the Secretary shall release guidelines for
a voluntary initiative to enable entities to address issues

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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 Agriculture, as determined by the Secretary;
(2) 1 member shall be the Deputy Under Secretary for
International Affairs of the Department of Labor;
(3) 1 member shall represent the Department of State,
as determined by the Secretary of State;
(4) 3 members shall represent private agriculture-related
enterprises, which may include retailers, food processors,
importers, and producers, of whom at least 1 member shall
be an importer, food processor, or retailer who utilizes independent, third-party supply chain monitoring for forced labor
or child labor;
(5) 2 members shall represent institutions of higher education and research institutions, as determined appropriate
by the Bureau of International Labor Affairs of the Department
of Labor;
(6) 1 member shall represent an organization that provides
independent, third-party certification services for labor standards for producers or importers of agricultural commodities
or products; and
(7) 3 members shall represent organizations described in
section 501(c)(3) of the Internal Revenue Code of 1986 that
have expertise on the issues of international child labor and
do not possess a conflict of interest associated with establishment of the guidelines issued under subsection (c)(2), as determined by the Bureau of International Labor Affairs of the
Department of Labor, including representatives from consumer
organizations and trade unions, if appropriate.
(e) CHAIRPERSON.—A representative of the Department of Agriculture appointed under subsection (d)(1), as determined by the
Secretary, shall serve as the chairperson of the Consultative Group.
(f) REQUIREMENTS.—Not less than 4 times per year, the
Consultative Group shall meet at the call of the Chairperson, after
reasonable notice to all members, to develop recommendations
described in subsection (c)(1).
(g) NONAPPLICABILITY OF FACA.—The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Consultative
Group.
(h) ANNUAL REPORTS.—Not later than 1 year after the date
of enactment of this Act, and annually thereafter through December
31, 2012, the Secretary shall submit to the Committees on Agriculture and Foreign Affairs of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report describing the activities and recommendations of the
Consultative Group.
(i) TERMINATION OF AUTHORITY.—The Consultative Group shall
terminate on December 31, 2012.

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122 STAT. 1840
7 USC 1726c.

SEC.

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3206.

LOCAL AND
PROJECTS.

REGIONAL

FOOD

AID

PROCUREMENT

(a) DEFINITIONS.—In this section:
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the
Administrator of the Agency for International Development.
(2) APPROPRIATE COMMITTEE OF CONGRESS.—The term
‘‘appropriate committee of Congress’’ means—
(A) the Committee on Agriculture, Nutrition, and Forestry of the Senate;
(B) the Committee on Agriculture of the House of Representatives; and
(C) the Committee on Foreign Affairs of the House
of Representatives.
(3) ELIGIBLE COMMODITY.—The term ‘‘eligible commodity’’
means an agricultural commodity (or the product of an agricultural commodity) that—
(A) is produced in, and procured from, a developing
country; and
(B) at a minimum, meets each nutritional, quality,
and labeling standard of the country that receives the
agricultural commodity, as determined by the Secretary.
(4) ELIGIBLE ORGANIZATION.—The term ‘‘eligible organization’’ means an organization that is—
(A) described in section 202(d) of the Food for Peace
Act (7 U.S.C. 1722(d)); and
(B) with respect to nongovernmental organizations,
subject to regulations promulgated or guidelines issued
to carry out this section, including United States audit
requirements that are applicable to nongovernmental
organizations.
(b) STUDY; FIELD-BASED PROJECTS.—
(1) STUDY.—
(A) IN GENERAL.—Not later than 30 days after the
date of enactment of this Act, the Secretary shall initiate
a study of prior local and regional procurements for food
aid programs conducted by—
(i) other donor countries;
(ii) private voluntary organizations; and
(iii) the World Food Program of the United
Nations.
(B) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report containing
the results of the study conducted under subparagraph
(A).
(2) FIELD-BASED PROJECTS.—
(A) IN GENERAL.—In accordance with subparagraph
(B), the Secretary shall provide grants to, or enter into
cooperative agreements with, eligible organizations to carry
out field-based projects that consist of local or regional
procurements of eligible commodities to respond to food
crises and disasters in accordance with this section.
(B) CONSULTATION WITH ADMINISTRATOR.—In carrying
out the development and implementation of field-based
projects under subparagraph (A), the Secretary shall consult with the Administrator.
(c) PROCUREMENT.—

Deadline.

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122 STAT. 1841

(1) IN GENERAL.—Any eligible commodity that is procured
for a field-based project carried out under subsection (b)(2)
shall be procured through any approach or methodology that
the Secretary considers to be an effective approach or methodology to provide adequate information regarding the manner
by which to expedite, to the maximum extent practicable, the
provision of food aid to affected populations without significantly increasing commodity costs for low-income consumers
who procure commodities sourced from the same markets at
which the eligible commodity is procured.
(2) REQUIREMENTS.—
(A) IMPACT ON LOCAL FARMERS AND COUNTRIES.—The
Secretary shall ensure that the local or regional procurement of any eligible commodity under this section will
not have a disruptive impact on farmers located in, or
the economy of—
(i) the recipient country of the eligible commodity;
or
(ii) any country in the region in which the eligible
commodity may be procured.
(B) TRANSSHIPMENT.—The Secretary shall, in accordance with such terms and conditions as the Secretary considers to be appropriate, require from each eligible
organization commitments designed to prevent or restrict—
(i) the resale or transshipment of any eligible commodity procured under this section to any country other
than the recipient country; and
(ii) the use of the eligible commodity for any purpose other than food aid.
(C) WORLD PRICES.—
(i) IN GENERAL.—In carrying out this section, the
Secretary shall take any precaution that the Secretary
considers to be reasonable to ensure that the procurement of eligible commodities will not unduly disrupt—
(I) world prices for agricultural commodities;
or
(II) normal patterns of commercial trade with
foreign countries.
(ii) PROCUREMENT PRICE.—The procurement of any
eligible commodity shall be made at a reasonable
market price with respect to the economy of the country
in which the eligible commodity is procured, as determined by the Secretary.
(d) REGULATIONS; GUIDELINES.—
(1) IN GENERAL.—In accordance with paragraph (2), not
later than 180 days after the date of completion of the study
under subsection (b)(1), the Secretary shall promulgate regulations or issue guidelines to carry out field-based projects under
this section.
(2) REQUIREMENTS.—
(A) USE OF STUDY.—In promulgating regulations or
issuing guidelines under paragraph (1), the Secretary shall
take into consideration the results of the study described
in subsection (b)(1).
(B) PUBLIC REVIEW AND COMMENT.—In promulgating
regulations or issuing guidelines under paragraph (1), the

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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 AGREEMENTS.—
(1) IN GENERAL.—The Secretary shall award grants to,
or enter into cooperative agreements with, eligible organizations
to carry out field-based projects.
(2) REQUIREMENTS OF ELIGIBLE ORGANIZATIONS.—
(A) APPLICATION.—
(i) IN GENERAL.—To be eligible to receive a grant
from, or enter into a cooperative agreement with, the
Secretary under this subsection, an eligible organization shall submit to the Secretary an application by
such date, in such manner, and containing such
information as the Secretary may require.
(ii) OTHER APPLICABLE REQUIREMENTS.—Any other
applicable requirement relating to the submission of
proposals for consideration shall apply to the submission of an application required under clause (i), as
determined by the Secretary.
(B) COMPLETION REQUIREMENT.—To be eligible to
receive a grant from, or enter into a cooperative agreement
with, the Secretary under this subsection, an eligible
organization shall agree—
(i) to collect by September 30, 2011, data containing the information required under subsection
(f)(1)(B) relating to the field-based project funded
through the grant; and
(ii) to provide to the Secretary the data collected
under clause (i).
(3) REQUIREMENTS OF SECRETARY.—
(A) PROJECT DIVERSITY.—
(i) IN GENERAL.—Subject to clause (ii) and subparagraph (B), in selecting proposals for field-based projects
to fund under this section, the Secretary shall select
a diversity of projects, including projects located in—
(I) food surplus regions;
(II) food deficit regions (that are carried out
using regional procurement methods); and
(III) multiple geographical regions.
(ii) PRIORITY.—In selecting proposals for fieldbased projects under clause (i), the Secretary shall
ensure that the majority of selected proposals are for
field-based projects that—
(I) are located in Africa; and
(II) procure eligible commodities that are produced in Africa.
(B) DEVELOPMENT ASSISTANCE.—A portion of the funds
provided under this subsection shall be made available
for field-based projects that provide development assistance
for a period of not less than 1 year.
(4) AVAILABILITY.—The Secretary shall not award a grant
to any eligible organization under paragraph (1) until the date

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

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(iv) to the extent adequate information is available
(including the results of the report required under
subsection (b)(1)(B)), a comparison of the different
methodologies used by other donor countries to make
local and regional procurements.
(C) INDEPENDENT THIRD PARTY ACCESS TO RECORDS
AND REPORTS.—The Secretary shall provide to the independent third party access to each record and report that
the independent third party determines to be necessary
to complete the independent evaluation.
(D) PUBLIC ACCESS TO RECORDS AND REPORTS.—Not
later than 180 days after the date described in paragraph
(2), the Secretary shall provide public access to each record
and report described in subparagraph (C).
(2) REPORT.—Not later than 4 years after the date of enactment of this Act, the Secretary shall submit to the appropriate
committees of Congress a report that contains the analysis
and findings of the independent evaluation conducted under
paragraph (1)(A).
(g) FUNDING.—
(1) COMMODITY CREDIT CORPORATION.—The Secretary shall
use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this section.
(2) FUNDING AMOUNTS.—Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section—
(A) $5,000,000 for fiscal year 2009;
(B) $25,000,000 for fiscal year 2010;
(C) $25,000,000 for fiscal year 2011; and
(D) $5,000,000 for fiscal year 2012.

Deadline.

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

Softwood Lumber
Act of 2008.

‘‘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:

19 USC 1654
note.

‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
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19 USC 1683.

801.
802.
803.
804.
805.
806.
807.
808.
809.

‘‘TITLE VIII—SOFTWOOD LUMBER
Short title; table of contents.
Definitions.
Establishment of softwood lumber importer declaration program.
Scope of softwood lumber importer declaration program.
Export charge determination and publication.
Reconciliation.
Verification.
Penalties.
Reports.

‘‘SEC. 802. DEFINITIONS.

‘‘In this title:

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

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

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‘‘(8) PERSON.—The term ‘person’ includes any individual,
partnership, corporation, association, organization, business
trust, government entity, or other entity subject to the jurisdiction of the United States.
‘‘(9) UNITED STATES.—The term ‘United States’ means the
customs territory of the United States, as defined in General
Note 2 of the HTS.

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

‘‘(a) ESTABLISHMENT OF PROGRAM.—
‘‘(1) IN GENERAL.—The President shall establish and maintain an importer declaration program with respect to the
importation of softwood lumber and softwood lumber products
described in section 804(a). The importer declaration program
shall require importers of softwood lumber and softwood lumber
products described in section 804(a) to provide the information
required under subsection (b) and declare the information
required by subsection (c), and require that such information
accompany the entry summary documentation.
‘‘(2) ELECTRONIC RECORD.—The President shall establish
an electronic record that includes the importer information
required under subsection (b) and the declarations required
under subsection (c).
‘‘(b) REQUIRED INFORMATION.—The President shall require the
following information to be submitted by any person seeking to
import softwood lumber or softwood lumber products described in
section 804(a):
‘‘(1) The export price for each shipment of softwood lumber
or softwood lumber products.
‘‘(2) The estimated export charge, if any, applicable to each
shipment of softwood lumber or softwood lumber products as
calculated by applying the percentage determined and published by the Under Secretary for International Trade of the
Department of Commerce pursuant to section 805 to the export
price provided in subsection (b)(1).
‘‘(c) IMPORTER DECLARATIONS.—Pursuant to procedures prescribed by the President, any person seeking to import softwood
lumber or softwood lumber products described in section 804(a)
shall declare that—
‘‘(1) the person has made appropriate inquiry, including
seeking appropriate documentation from the exporter and consulting the determinations published by the Under Secretary
for International Trade of the Department of Commerce pursuant to section 805(b); and
‘‘(2) to the best of the person’s knowledge and belief—
‘‘(A) the export price provided pursuant to subsection
(b)(1) is determined in accordance with the definition provided in section 802(5);
‘‘(B) the export price provided pursuant to subsection
(b)(1) is consistent with the export price provided on the
export permit, if any, granted by the country of export;
and
‘‘(C) the exporter has paid, or committed to pay, all
export charges due—
‘‘(i) in accordance with the volume, export price,
and export charge rate or rates, if any, as calculated

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President.
19 USC 1683a.

Procedures.

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under an international agreement entered into by the
country of export and the United States; and
‘‘(ii) consistent with the export charge determinations published by the Under Secretary for International Trade pursuant to section 805(b).

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19 USC 1683b.

‘‘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 fingerjointed, 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 fingerjointed.
‘‘(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 fingerjointed.
‘‘(E) Coniferous drilled and notched lumber and angle
cut lumber.
‘‘(2) PRODUCTS CONTINUALLY SHAPED.—Any product classified under subheading 4409.10.05 of the HTS that is continually
shaped along its end or side edges.
‘‘(3) OTHER LUMBER PRODUCTS.—Except as otherwise provided in subsection (b) or (c), softwood lumber products that
are stringers, radius-cut box-spring frame components, fence
pickets, truss components, pallet components, and door and
window frame parts classified under subheading 4418.90.46.95,
4421.90.70.40, or 4421.90.97.40 of the HTS.
‘‘(b) PRODUCTS EXCLUDED FROM PROGRAM.—The following products shall be excluded from the importer declaration program established under section 803:
‘‘(1) Trusses and truss kits, properly classified under subheading 4418.90 of the HTS.
‘‘(2) I-joist beams.
‘‘(3) Assembled box-spring frames.
‘‘(4) Pallets and pallet kits, properly classified under subheading 4415.20 of HTS.
‘‘(5) Garage doors.

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122 STAT. 1849

‘‘(6) Edge-glued wood, properly classified under subheading
4421.90.97.40 of the HTS.
‘‘(7) Complete door frames.
‘‘(8) Complete window frames.
‘‘(9) Furniture.
‘‘(10) Articles brought into the United States temporarily
and for which an exemption from duty is claimed under subchapter XIII of chapter 98 of the HTS.
‘‘(11) Household and personal effects.
‘‘(c) EXCEPTIONS FOR CERTAIN PRODUCTS.—The following
softwood lumber products shall not be subject to the importer
declaration program established under section 803:
‘‘(1) STRINGERS.—Stringers (pallet components used for runners), if the stringers—
‘‘(A) have at least 2 notches on the side, positioned
at equal distance from the center, to properly accommodate
forklift blades; and
‘‘(B) are properly classified under subheading
4421.90.97.40 of the HTS.
‘‘(2) BOX-SPRING FRAME KITS.—
‘‘(A) IN GENERAL.—Box-spring frame kits, if—
‘‘(i) the kits contain—
‘‘(I) 2 wooden side rails;
‘‘(II) 2 wooden end (or top) rails; and
‘‘(III) varying numbers of wooden slats; and
‘‘(ii) the side rails and the end rails are radiuscut 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 boxspring frame described on the entry documents, with no
further processing required. None of the components contained in the package may exceed 1 inch in actual thickness
or 83 inches in length.
‘‘(3) RADIUS-CUT BOX-SPRING FRAME COMPONENTS.—Radiuscut box-spring frame components, not exceeding 1 inch in actual
thickness or 83 inches in length, ready for assembly without
further processing, if radius cuts are present on both ends
of the boards and are substantial cuts so as to completely
round 1 corner.
‘‘(4) FENCE PICKETS.—Fence pickets requiring no further
processing and properly classified under subheading 4421.90.70
of the HTS, 1 inch or less in actual thickness, up to 8 inches
wide, and 6 feet or less in length, and having finials or decorative cuttings that clearly identify them as fence pickets. In
the case of dog-eared fence pickets, the corners of the boards
shall be cut off so as to remove pieces of wood in the shape
of isosceles right angle triangles with sides measuring 3⁄4 of
an inch or more.
‘‘(5) UNITED STATES-ORIGIN LUMBER.—Lumber originating
in the United States that is exported to another country for
minor processing and imported into the United States if—
‘‘(A) the processing occurring in another country is
limited to kiln drying, planing to create smooth-to-size
board, and sanding; and

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(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. 1851

‘‘(iv) If a single contract involves multiple entries,
an identification of all the items required to be listed
under clause (iii) that are included in each individual
shipment.
‘‘(d) PRODUCTS COVERED.—For purposes of determining if a
product is covered by the importer declaration program, the President shall be guided by the article descriptions provided in this
section.
‘‘SEC. 805. EXPORT CHARGE DETERMINATION AND PUBLICATION.

19 USC 1683c.

‘‘(a) DETERMINATION.—The Under Secretary for International
Trade of the Department of Commerce shall determine, on a
monthly basis, any export charges (expressed as a percentage of
export price) to be collected by a country of export from exporters
of softwood lumber or softwood lumber products described in section
804(a) in order to ensure compliance with any international agreement entered into by that country and the United States.
‘‘(b) PUBLICATION.—The Under Secretary for International
Trade shall immediately publish any determination made under
subsection (a) on the website of the International Trade Administration of the Department of Commerce, and in any other manner
the Under Secretary considers appropriate.
‘‘SEC. 806. RECONCILIATION.

Website.

19 USC 1683d.

‘‘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.

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‘‘SEC. 807. VERIFICATION.

19 USC 1683e.

‘‘(a) IN GENERAL.—The Secretary of Treasury shall periodically
verify the declarations made by a United States importer pursuant
to section 803(c), including by determining whether—
‘‘(1) the export price declared by a United States importer
pursuant to section 803(b)(1) is the same as the export price
provided on the export permit, if any, issued by the country
of export; and
‘‘(2) the estimated export charge declared by a United
States importer pursuant to section 803(b)(2) is consistent with
the determination published by the Under Secretary for International Trade pursuant to section 805(b).
‘‘(b) EXAMINATION OF BOOKS AND RECORDS.—
‘‘(1) IN GENERAL.—Any record relating to the importer declaration program required under section 803 shall be treated
as a record required to be maintained and produced under
title V of this Act.
‘‘(2) EXAMINATION OF RECORDS.—The Secretary of the
Treasury is authorized to take such action, and examine such

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PUBLIC LAW 110–246—JUNE 18, 2008
records, under section 509 of this Act, as the Secretary determines necessary to verify the declarations made pursuant to
section 803(c) are true and accurate.

19 USC 1683f.

‘‘SEC. 808. PENALTIES.

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

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19 USC 1683g.

‘‘SEC. 809. REPORTS.

President.

‘‘(a) SEMIANNUAL REPORTS.—Not later than 180 days after the
effective date of this title, and every 180 days thereafter, the President shall submit to the appropriate congressional committees a
report—
‘‘(1) describing the reconciliations conducted under section
806, and the verifications conducted under section 807;
‘‘(2) identifying the manner in which the United States
importers subject to reconciliations conducted under section
806 and verifications conducted under section 807 were chosen;
‘‘(3) identifying any penalties imposed under section 808;
‘‘(4) identifying any patterns of noncompliance with this
title; and
‘‘(5) identifying any problems or obstacles encountered in
the implementation and enforcement of this title.
‘‘(b) SUBSIDIES REPORTS.—Not later than 180 days after the
date of the enactment of this title, and every 180 days thereafter,
the Secretary of Commerce shall provide to the appropriate congressional committees a report on any subsidies on softwood lumber

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122 STAT. 1853

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

19 USC 1683
note.

TITLE IV—NUTRITION
Subtitle A—Food Stamp Program
PART I—RENAMING OF FOOD STAMP ACT AND
PROGRAM
SEC. 4001. RENAMING OF FOOD STAMP ACT AND PROGRAM.

(a) SHORT TITLE.—The first section of the Food Stamp Act
of 1977 (7 U.S.C. 2011 note; Public Law 88–525) is amended by
striking ‘‘Food Stamp Act of 1977’’ and inserting ‘‘Food and Nutrition Act of 2008’’.
(b) PROGRAM.—The Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.) (as amended by subsection (a)) is amended by striking
‘‘food stamp program’’ each place it appears and inserting ‘‘supplemental nutrition assistance program’’.

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SEC. 4002. CONFORMING AMENDMENTS.

(a) IN GENERAL.—
(1) Section 4 of the Food and Nutrition Act of 2008 (7
U.S.C. 2013) is amended in the section heading by striking
‘‘FOOD STAMP PROGRAM’’ and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM’’.
(2) Section 5(h)(2)(A) of the Food and Nutrition Act of
2008 (7 U.S.C. 2014(h)(2)(A)) is amended by striking ‘‘Food
Stamp Disaster Task Force’’ and inserting ‘‘Disaster Task
Force’’.
(3) Section 6 of the Food and Nutrition Act of 2008 (7
U.S.C. 2015) is amended—
(A) in subsection (d)(3), by striking ‘‘for food stamps’’;
(B) in subsection (j), in the subsection heading, by
striking ‘‘FOOD STAMP’’; and
(C) in subsection (o)—
(i) in paragraph (2), by striking ‘‘food stamp benefits’’ and inserting ‘‘supplemental nutrition assistance
program benefits’’; and
(ii) in paragraph (6)—
(I) in subparagraph (A)—

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PUBLIC LAW 110–246—JUNE 18, 2008
(aa) in clause (i), by striking ‘‘food stamps’’
and inserting ‘‘supplemental nutrition assistance program benefits’’; and
(bb) in clause (ii)—
(AA) in the matter preceding subclause (I), by striking ‘‘a food stamp
recipient’’ and inserting ‘‘a member of a
household that receives supplemental
nutrition assistance program benefits’’;
and
(BB) by striking ‘‘food stamp benefits’’
each place it appears and inserting
‘‘supplemental nutrition assistance program benefits’’; and
(II) in subparagraphs (D) and (E), by striking
‘‘food stamp recipients’’ each place it appears and
inserting ‘‘members of households that receive
supplemental nutrition assistance program benefits’’.
(4) Section 7 of the Food and Nutrition Act of 2008 (7
U.S.C. 2016) is amended—
(A) in subsection (i)—
(i) in paragraph (3)(B)(ii), by striking ‘‘food stamp
households’’ and inserting ‘‘households receiving
supplemental nutrition assistance program benefits’’;
and
(ii) in paragraph (7), by striking ‘‘food stamp
issuance’’ and inserting ‘‘supplemental nutrition assistance issuance’’; and
(B) in subsection (k)—
(i) in paragraph (2), by striking ‘‘food stamp benefits’’ and inserting ‘‘supplemental nutrition assistance
program benefits’’; and
(ii) in paragraph (3), by striking ‘‘food stamp retail’’
and inserting ‘‘retail’’.
(5) Section 9(b)(1) of that Food and Nutrition Act of 2008
(7 U.S.C. 2018(b)(1)) is amended by striking ‘‘food stamp households’’ and inserting ‘‘households that receive supplemental
nutrition assistance program benefits’’.
(6) Section 11 of the Food and Nutrition Act of 2008 (7
U.S.C. 2020) is amended—
(A) in subsection (e)—
(i) by striking ‘‘food stamps’’ each place it appears
and inserting ‘‘supplemental nutrition assistance program benefits’’;
(ii) by striking ‘‘food stamp offices’’ each place it
appears and inserting ‘‘supplemental nutrition assistance program offices’’;
(iii) by striking ‘‘food stamp office’’ each place it
appears and inserting ‘‘supplemental nutrition assistance program office’’; and
(iv) in paragraph (25)—
(I) in the matter preceding subparagraph (A),
by striking ‘‘Simplified Food Stamp Program’’ and
inserting ‘‘Simplified Supplemental Nutrition
Assistance Program’’; and

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122 STAT. 1855

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

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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 ‘‘supplemental nutrition assistance program deductions’’;
(ii) in paragraph (2), by striking ‘‘food stamp benefits’’ and inserting ‘‘supplemental nutrition assistance
program benefits’’; and
(iii) in paragraph (3)—
(I) in subparagraph (A), by striking ‘‘food
stamp employment’’ and inserting ‘‘supplemental
nutrition assistance program employment’’;
(II) in subparagraph (B), by striking ‘‘food
stamp recipients’’ and inserting ‘‘supplemental
nutrition assistance program recipients’’;
(III) in subparagraph (C), by striking ‘‘food
stamps’’ and inserting ‘‘supplemental nutrition
assistance program benefits’’; and
(IV) in subparagraph (D), by striking ‘‘food
stamp benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’;
(C) in subsection (c), by striking ‘‘food stamps’’ and
inserting ‘‘supplemental nutrition assistance’’;
(D) in subsection (d)—
(i) in paragraph (1)(B), by striking ‘‘food stamp
benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’;
(ii) in paragraph (2)—
(I) in subparagraph (A), by striking ‘‘food
stamp allotments’’ each place it appears and
inserting ‘‘allotments’’; and
(II) in subparagraph (C)(ii), by striking ‘‘food
stamp benefit’’ and inserting ‘‘supplemental nutrition assistance program benefits’’; and
(iii) in paragraph (3)(E), by striking ‘‘food stamp
benefits’’ and inserting ‘‘supplemental nutrition assistance program benefits’’;
(E) in subsections (e) and (f), by striking ‘‘food stamp
benefits’’ each place it appears and inserting ‘‘supplemental
nutrition assistance program benefits’’;
(F) in subsection (g), in the first sentence, by striking
‘‘receipt of food stamp’’ and inserting ‘‘receipt of supplemental nutrition assistance program’’; and
(G) in subsection (j), by striking ‘‘food stamp agencies’’
and inserting ‘‘supplemental nutrition assistance program
agencies’’.
(10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking ‘‘food
stamps’’ and inserting ‘‘supplemental nutrition assistance program benefits’’.
(11) Section 22 of the Food and Nutrition Act of 2008
(7 U.S.C. 2031) is amended—
(A) in the section heading, by striking ‘‘FOOD STAMP
PORTION OF MINNESOTA FAMILY INVESTMENT PLAN’’ and
inserting ‘‘MINNESOTA FAMILY INVESTMENT PROJECT’’;
(B) in subsections (b)(12) and (d)(3), by striking ‘‘the
Food Stamp Act, as amended,’’ each place it appears and
inserting ‘‘this Act’’; and

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(C) in subsection (g)(1), by striking ‘‘the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.)’’ and inserting ‘‘this
Act’’.
(12) Section 26 of the Food and Nutrition Act of 2008
(7 U.S.C. 2035) is amended—
(A) in the section heading, by striking ‘‘SIMPLIFIED
FOOD STAMP PROGRAM’’ and inserting ‘‘SIMPLIFIED
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM’’; and
(B) in subsection (b), by striking ‘‘simplified food stamp
program’’ and inserting ‘‘simplified supplemental nutrition
assistance program’’.
(b) CONFORMING CROSS-REFERENCES.—
(1) IN GENERAL.—Each provision of law described in paragraph (2) is amended (as applicable)—
(A) by striking ‘‘food stamp program’’ each place it
appears and inserting ‘‘supplemental nutrition assistance
program’’;
(B) by striking ‘‘Food Stamp Act of 1977’’ each place
it appears and inserting ‘‘Food and Nutrition Act of 2008’’;
(C) by striking ‘‘Food Stamp Act’’ each place it appears
and inserting ‘‘Food and Nutrition Act of 2008’’;
(D) by striking ‘‘food stamp’’ each place it appears
and inserting ‘‘supplemental nutrition assistance program
benefits’’;
(E) by striking ‘‘food stamps’’ each place it appears
and inserting ‘‘supplemental nutrition assistance program
benefits’’;
(F) in each applicable title, subtitle, chapter, subchapter, and section heading, by striking ‘‘FOOD STAMP
ACT’’ each place it appears and inserting ‘‘FOOD AND NUTRITION ACT OF 2008’’;
(G) in each applicable subsection and appropriations
heading, by striking ‘‘FOOD STAMP ACT’’ each place it
appears and inserting ‘‘FOOD AND NUTRITION ACT OF 2008’’;
(H) in each applicable heading other than a title, subtitle, chapter, subchapter, section, subsection, or appropriations heading, by striking ‘‘FOOD STAMP ACT’’ each place
it appears and inserting ‘‘FOOD AND NUTRITION ACT OF
2008’’;
(I) in each applicable title, subtitle, chapter, subchapter, and section heading, by striking ‘‘FOOD STAMP
PROGRAM’’ each place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM’’;
(J) in each applicable subsection and appropriations
heading, by striking ‘‘FOOD STAMP PROGRAM’’ each place
it appears and inserting ‘‘SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM’’;
(K) in each applicable heading other than a title, subtitle, chapter, subchapter, section, subsection, or appropriations heading, by striking ‘‘FOOD STAMP PROGRAM’’ each
place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM’’;
(L) in each applicable title, subtitle, chapter, subchapter, and section heading, by striking ‘‘FOOD STAMPS’’
each place it appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS’’;

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7 USC 1421 note;
42 USC 1786.

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122 STAT. 1858

42 USC 1758,
8011.

7 USC 2012 note.
7 USC 2012 note.
7 USC
2016 et seq.

7 USC 2016 note.

7 USC 3315.
7 USC 7509.
8 USC 1255a.

15 USC 5901,
5904.
18 USC 506,
1956.
20 USC 1087ss.
26 USC 32 et seq.

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29 USC 49b.
29 USC
2971 et seq.
31 USC 3803.
37 USC 402a.
42 USC
290cc–22.
42 USC
405 et seq.

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(M) in each applicable subsection and appropriations
heading, by striking ‘‘FOOD STAMPS’’ each place it appears
and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS’’; and
(N) in each applicable heading other than a title, subtitle, chapter, subchapter, section, subsection, or appropriations heading, by striking ‘‘FOOD STAMPS’’ each place it
appears and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS’’.
(2) PROVISIONS OF LAW.—The provisions of law referred
to in paragraph (1) are the following:
(A) The Hunger Prevention Act of 1988 (Public Law
100–435; 102 Stat. 1645).
(B) The Food Stamp Program Improvements Act of
1994 (Public Law 103–225; 108 Stat. 106).
(C) Title IV of the Farm Security and Rural Investment
Act of 2002 (Public Law 107–171; 116 Stat. 305).
(D) Section 2 of Public Law 103–205 (7 U.S.C. 2012
note).
(E) Section 807(b) of the Stewart B. McKinney Homeless Assistance Act (7 U.S.C. 2014 note; Public Law 100–
77).
(F) The Electronic Benefit Transfer Interoperability
and Portability Act of 2000 (Public Law 106–171; 114 Stat.
3).
(G) Section 502(b) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 2025
note; Public Law 105–185).
(H) The National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.).
(I) The Emergency Food Assistance Act of 1983 (7
U.S.C. 7501 et seq.).
(J) The Immigration and Nationality Act (8 U.S.C.
1101 et seq.).
(K) Section 8119 of the Department of Defense Appropriations Act, 1999 (10 U.S.C. 113 note; Public Law 105–
262).
(L) The Armored Car Industry Reciprocity Act of 1993
(15 U.S.C. 5901 et seq.).
(M) Title 18, United States Code.
(N) The Higher Education Act of 1965 (20 U.S.C. 1001
et seq.).
(O) The Internal Revenue Code of 1986.
(P) Section 650 of the Treasury and General Government Appropriations Act, 2000 (26 U.S.C. 7801 note; Public
Law 106–58).
(Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.).
(R) The Workforce Investment Act of 1998 (29 U.S.C.
2801 et seq.).
(S) Title 31, United States Code.
(T) Title 37, United States Code.
(U) The Public Health Service Act (42 U.S.C. 201 et
seq.).
(V) Titles II through XIX of the Social Security Act
(42 U.S.C. 401 et seq.).
(W) Section 406 of the Family Support Act of 1988
(Public Law 100–485; 102 Stat. 2400).

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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 Emergency Assistance Act (42 U.S.C. 5121 et seq.).
(EE) The Low-Income Home Energy Assistance Act
of 1981 (42 U.S.C. 8621 et seq.).
(FF) Section 658K of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858i).
(GG) The Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.).
(HH) Public Law 95–348 (92 Stat. 487).
(II) The Agriculture and Food Act of 1981 (Public Law
97–98; 95 Stat. 1213).
(JJ) The Disaster Assistance Act of 1988 (Public Law
100–387; 102 Stat. 924).
(KK) The Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101–624; 104 Stat. 3359).
(LL) The Cranston-Gonzalez National Affordable
Housing Act (Public Law 101–625; 104 Stat. 4079).
(MM) Section 388 of the Persian Gulf Conflict Supplemental Authorization and Personnel Benefits Act of 1991
(Public Law 102–25; 105 Stat. 98).
(NN) The Food, Agriculture, Conservation, and Trade
Act Amendments of 1991 (Public Law 102–237; 105 Stat.
1818).
(OO) The Act of March 26, 1992 (Public Law 102–
265; 106 Stat. 90).
(PP) Public Law 105–379 (112 Stat. 3399).
(QQ) Section 101(c) of the Emergency Supplemental
Act, 2000 (Public Law 106–246; 114 Stat. 528).
(c) REFERENCES.—Any reference in any Federal, State, tribal,
or local law (including regulations) to the ‘‘food stamp program’’
established under the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.) shall be considered to be a reference to the ‘‘supplemental nutrition assistance program’’ established under that Act.

42 USC 1437f.
42 USC 1758,
1766.
42 USC 1786.
42 USC
3012 et seq.

42 USC 5179.
42 USC 8622,
8624.

43 USC 1626.
48 USC 1841.
7 USC 2270,
4004a.
7 USC 2014 note,
2017 note.
7 USC 2011 note.
42 USC 8011.
7 USC 1421 note.

7 USC 1421 note,
2026 note.

7 USC 2011 note,
2020 note.
7 USC 2012 note.

PART II—BENEFIT IMPROVEMENTS

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

Section 5(d) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(d)) is amended—
(1) by striking ‘‘(d) Household’’ and inserting ‘‘(d) EXCLUSIONS FROM INCOME.—Household’’;
(2) by striking ‘‘only (1) any’’ and inserting ‘‘only—
‘‘(1) any’’;

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PUBLIC LAW 110–246—JUNE 18, 2008
(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.’’.

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SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOWINCOME 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 subparagraphs (A)(ii)(II) and (B)(ii)(II) shall be based on the
unrounded amount for the prior 12-month period.’’.
SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE
EXPENSES.

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

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SEC.

4104.

ASSET INDEXATION,
ACCOUNTS.

EDUCATION,

AND

RETIREMENT

(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:

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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’’.

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

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

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

PART III—PROGRAM OPERATIONS

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SEC. 4111. NUTRITION EDUCATION.

(a) AUTHORITY TO PROVIDE NUTRITION EDUCATION.—Section
4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a))
is amended in the first sentence by inserting ‘‘and, through an
approved State plan, nutrition education’’ after ‘‘an allotment’’.
(b) IMPLEMENTATION.—Section 11 of the Food and Nutrition
Act of 2008 (7 U.S.C. 2020) is amended by striking subsection
(f) and inserting the following:
‘‘(f) NUTRITION EDUCATION.—
‘‘(1) IN GENERAL.—State agencies may implement a nutrition education program for individuals eligible for program
benefits that promotes healthy food choices consistent with
the most recent Dietary Guidelines for Americans published
under section 301 of the National Nutrition Monitoring and
Related Research Act of 1990 (7 U.S.C. 5341).
‘‘(2) DELIVERY OF NUTRITION EDUCATION.—State agencies
may deliver nutrition education directly to eligible persons or
through agreements with the National Institute of Food and
Agriculture, including through the expanded food and nutrition
education program under section 3(d) of the Act of May 8,
1914 (7 U.S.C. 343(d)), and other State and community health
and nutrition providers and organizations.
‘‘(3) NUTRITION EDUCATION STATE PLANS.—
‘‘(A) IN GENERAL.—A State agency that elects to provide
nutrition education under this subsection shall submit a
nutrition education State plan to the Secretary for
approval.

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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 Secretary through regulations or guidance.
‘‘(C) REIMBURSEMENT.—State costs for providing nutrition education under this subsection shall be reimbursed
pursuant to section 16(a).
‘‘(4) NOTIFICATION.—To the maximum extent practicable,
State agencies shall notify applicants, participants, and eligible
program participants of the availability of nutrition education
under this subsection.’’.

SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

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

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

Procedures.

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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.

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

(a) IN GENERAL.—Section 7 of the Food and Nutrition Act
of 2008 (7 U.S.C. 2016) is amended—
(1) by striking the section designation and heading and
all that follows through ‘‘subsection (j)) shall be’’ and inserting
the following:

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

‘‘(a) IN GENERAL.—Except as provided in subsection (i), EBT
cards shall be’’;
(2) in subsection (b)—
(A) by striking ‘‘(b) Coupons’’ and inserting the following:
‘‘(b) USE.—Benefits’’; and
(B) by striking the second proviso;
(3) in subsection (c)—
(A) by striking ‘‘(c) Coupons’’ and inserting the following:
‘‘(c) DESIGN.—
‘‘(1) IN GENERAL.—EBT cards’’;
(B) in the first sentence, by striking ‘‘and define their
denomination’’; and
(C) by striking the second sentence and inserting the
following:
‘‘(2) PROHIBITION.—The name of any public official shall
not appear on any EBT card.’’;
(4) by striking subsection (d);
(5) in subsection (e)—
(A) by striking ‘‘coupons’’ each place it appears and
inserting ‘‘benefits’’; and
(B) by striking ‘‘coupon issuers’’ each place it appears
and inserting ‘‘benefit issuers’’;
(6) in subsection (f)—
(A) by striking ‘‘coupons’’ each place it appears and
inserting ‘‘benefits’’;
(B) by striking ‘‘coupon issuer’’ and inserting ‘‘benefit
issuers’’;
(C) by striking ‘‘including any losses’’ and all that
follows through ‘‘section 11(e)(20),’’; and
(D) by striking ‘‘and allotments’’;
(7) by striking subsection (g) and inserting the following:
‘‘(g) ALTERNATIVE BENEFIT DELIVERY.—
‘‘(1) IN GENERAL.—If the Secretary determines, in consultation with the Inspector General of the Department of Agriculture, that it would improve the integrity of the supplemental
nutrition assistance program, the Secretary shall require a
State agency to issue or deliver benefits using alternative
methods.

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Effective dates.

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PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(2) NO IMPOSITION OF COSTS.—The cost of documents or
systems that may be required by this subsection may not be
imposed upon a retail food store participating in the supplemental nutrition assistance program.
‘‘(3) DEVALUATION AND TERMINATION OF ISSUANCE OF PAPER
COUPONS.—
‘‘(A) COUPON ISSUANCE.—Effective on the date of enactment of the Food, Conservation, and Energy Act of 2008,
no State shall issue any coupon, stamp, certificate, or
authorization card to a household that receives supplemental nutrition assistance under this Act.
‘‘(B) EBT CARDS.—Effective beginning on the date that
is 1 year after the date of enactment of the Food, Conservation, and Energy Act of 2008, only an EBT card issued
under subsection (i) shall be eligible for exchange at any
retail food store.
‘‘(C) DE-OBLIGATION OF COUPONS.—Coupons not
redeemed during the 1-year period beginning on the date
of enactment of the Food, Conservation, and Energy Act
of 2008 shall—
‘‘(i) no longer be an obligation of the Federal
Government; and
‘‘(ii) not be redeemable.’’;
(8) in subsection (h)(1), by striking ‘‘coupons’’ and inserting
‘‘benefits’’;
(9) in subsection (i), by adding at the end the following:
‘‘(12) INTERCHANGE FEES.—No interchange fees shall apply
to electronic benefit transfer transactions under this subsection.’’;
(10) in subsection (j)—
(A) in paragraph (2)(A)(ii), by striking ‘‘printing, shipping, and redeeming coupons’’ and inserting ‘‘issuing and
redeeming benefits’’; and
(B) in paragraph (5), by striking ‘‘coupon’’ and inserting
‘‘benefit’’;
(11) in subsection (k)—
(A) by striking ‘‘coupons in the form of’’ each place
it appears and inserting ‘‘program benefits in the form
of’’;
(B) by striking ‘‘a coupon issued in the form of’’ each
place it appears and inserting ‘‘program benefits in the
form of’’; and
(C) in subparagraph (A), by striking ‘‘subsection
(i)(11)(A)’’ and inserting ‘‘subsection (h)(11)(A)’’; and
(12) by redesignating subsections (e) through (k) as subsections (d) through (j), respectively.
(b) CONFORMING AMENDMENTS.—
(1) Section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012) is amended—
(A) in subsection (a), by striking ‘‘coupons’’ and
inserting ‘‘benefits’’;
(B) by striking subsection (b) and inserting the following:
‘‘(b) BENEFIT.—The term ‘benefit’ means the value of supplemental nutrition assistance provided to a household by means of—
‘‘(1) an electronic benefit transfer under section 7(i); or

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 1867

‘‘(2) other means of providing assistance, as determined
by the Secretary.’’;
(C) in subsection (c), in the first sentence, by striking
‘‘authorization cards’’ and inserting ‘‘benefits’’;
(D) in subsection (d), by striking ‘‘or access device’’
and all that follows through the end of the subsection
and inserting a period;
(E) in subsection (e)—
(i) by striking ‘‘(e) ‘Coupon issuer’ means’’ and
inserting the following:
‘‘(e) BENEFIT ISSUER.—The term ‘benefit issuer’ means’’; and
(ii) by striking ‘‘coupons’’ and inserting ‘‘benefits’’;
(F) in subsection (g)(7), by striking ‘‘subsection (r)’’
and inserting ‘‘subsection (j)’’;
(G) in subsection (i)(5)—
(i) in subparagraph (B), by striking ‘‘subsection
(r)’’ and inserting ‘‘subsection (j)’’; and
(ii) in subparagraph (D), by striking ‘‘coupons’’ and
inserting ‘‘benefits’’;
(H) in subsection (j), by striking ‘‘(as that term is
defined in subsection (p))’’;
(I) in subsection (k)—
(i) in paragraph (1)(A), by striking ‘‘subsection
(u)(1)’’ and inserting ‘‘subsection (r)(1)’’;
(ii) in paragraph (2), by striking ‘‘subsections (g)(3),
(4), (5), (7), (8), and (9) of this section’’ and inserting
‘‘paragraphs (3), (4), (5), (7), (8), and (9) of subsection
(k)’’; and
(iii) in paragraph (3), by striking ‘‘subsection (g)(6)
of this section’’ and inserting ‘‘subsection (k)(6)’’;
(J) in subsection (t), by inserting ‘‘, including point
of sale devices,’’ after ‘‘other means of access’’;
(K) in subsection (u), by striking ‘‘(as defined in subsection (g))’’;
(L) by adding at the end the following:
‘‘(v) EBT CARD.—The term ‘EBT card’ means an electronic
benefit transfer card issued under section 7(i).’’; and
(M) by redesignating subsections (a) through (v) as
subsections (b), (d), (f), (g), (e), (h), (k), (l), (n), (o), (p),
(q), (s), (t), (u), (v), (c), (j), (m), (a), (r), and (i), respectively,
and moving the subsections so as to appear in alphabetical
order.
(2) Section 4(a) of the Food and Nutrition Act of 2008
(7 U.S.C. 2013(a)) is amended—
(A) by striking ‘‘coupons’’ each place it appears and
inserting ‘‘benefits’’; and
(B) by striking ‘‘Coupons issued’’ and inserting ‘‘benefits
issued’’.
(3) Section 5 of the Food and Nutrition Act of 2008 (7
U.S.C. 2014) is amended—
(A) in subsection (a), by striking ‘‘section 3(i)(4)’’ and
inserting ‘‘section 3(n)(4)’’;
(B) in subsection (h)(3)(B), in the second sentence, by
striking ‘‘section 7(i)’’ and inserting ‘‘section 7(h)’’; and
(C) in subsection (i)(2)(E), by striking ‘‘, as defined
in section 3(i) of this Act,’’.

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PUBLIC LAW 110–246—JUNE 18, 2008
(4) Section 6 of the Food and Nutrition Act of 2008 (7
U.S.C. 2015) is amended—
(A) in subsection (b)(1)—
(i) in subparagraph (B), by striking ‘‘coupons or
authorization cards’’ and inserting ‘‘program benefits’’;
and
(ii) by striking ‘‘coupons’’ each place it appears
and inserting ‘‘benefits’’; and
(B) in subsection (d)(4)(L), by striking ‘‘section
11(e)(22)’’ and inserting ‘‘section 11(e)(19)’’.
(5) Section 8 of the Food and Nutrition Act of 2008 (7
U.S.C. 2017) is amended—
(A) in subsection (b), by striking ‘‘, whether through
coupons, access devices, or otherwise’’; and
(B) in subsections (e)(1) and (f), by striking ‘‘section
3(i)(5)’’ each place it appears and inserting ‘‘section 3(n)(5)’’.
(6) Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) is amended—
(A) by striking ‘‘coupons’’ each place it appears and
inserting ‘‘benefits’’;
(B) in subsection (a)—
(i) in paragraph (1), by striking ‘‘coupon business’’
and inserting ‘‘benefit transactions’’; and
(ii) by striking paragraph (3) and inserting the
following:
‘‘(3) AUTHORIZATION PERIODS.—The Secretary shall establish specific time periods during which authorization to accept
and redeem benefits shall be valid under the supplemental
nutrition assistance program.’’; and
(C) in subsection (g), by striking ‘‘section 3(g)(9)’’ and
inserting ‘‘section 3(k)(9)’’.
(7) Section 10 of the Food and Nutrition Act of 2008 (7
U.S.C. 2019) is amended—
(A) by striking the section designation and heading
and all that follows through ‘‘Regulations’’ and inserting
the following:

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‘‘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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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 1869

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

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7 USC 2012 note;
18 USC 1956;
42 USC 411,
503, 8011.
42 USC 1382e
note, 5179.
42 USC 5179.

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42 USC 1382e
note.

42 USC 411, 503.

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PUBLIC LAW 110–246—JUNE 18, 2008
(aa) by striking ‘‘countersigned food coupons or similar’’; and
(bb) by striking ‘‘food coupons’’ and
inserting ‘‘EBT cards’’; and
(ii) in subparagraph (C)(i)(I), by striking ‘‘coupons’’
and inserting ‘‘EBT cards’’;
(C) in subsection (f), by striking ‘‘section 7(g)(2)’’ and
inserting ‘‘section 7(f)(2)’’; and
(D) in subsection (j), by striking ‘‘coupon’’ and inserting
‘‘benefit’’.
(13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ‘‘section 3(o)(4)’’ and inserting ‘‘section 3(u)(4)’’.
(14) Section 21 of the Food and Nutrition Act of 2008
(7 U.S.C. 2030) is repealed.
(15) Section 22 of the Food and Nutrition Act of 2008
(7 U.S.C. 2031) is amended—
(A) by striking ‘‘food coupons’’ each place it appears
and inserting ‘‘benefits’’;
(B) by striking ‘‘coupons’’ each place it appears and
inserting ‘‘benefits’’; and
(C) in subsection (g)(1)(A), by striking ‘‘coupon’’ and
inserting ‘‘benefits’’.
(16) Section 26(f)(3) of the Food and Nutrition Act of 2008
(7 U.S.C. 2035(f)(3)) is amended—
(A) in subparagraph (A), by striking ‘‘subsections (a)
through (g)’’ and inserting ‘‘subsections (a) through (f)’’;
and
(B) in subparagraph (E), by striking ‘‘(16), (18), (20),
(24), and (25)’’ and inserting ‘‘(15), (17), (18), (22), and
(23)’’.
(c) CONFORMING CROSS-REFERENCES.—
(1) IN GENERAL.—
(A) USE OF TERMS.—Each provision of law described
in subparagraph (B) is amended (as applicable)—
(i) by striking ‘‘coupons’’ each place it appears and
inserting ‘‘benefits’’;
(ii) by striking ‘‘coupon’’ each place it appears and
inserting ‘‘benefit’’;
(iii) by striking ‘‘food coupons’’ each place it
appears and inserting ‘‘benefits’’;
(iv) in each section heading, by striking ‘‘FOOD
COUPONS’’ each place it appears and inserting ‘‘BENEFITS’’;
(v) by striking ‘‘food stamp coupon’’ each place
it appears and inserting ‘‘benefit’’; and
(vi) by striking ‘‘food stamps’’ each place it appears
and inserting ‘‘benefits’’.
(B) PROVISIONS OF LAW.—The provisions of law referred
to in subparagraph (A) are the following:
(i) Section 2 of Public Law 103–205 (7 U.S.C. 2012
note; 107 Stat. 2418).
(ii) Section 1956(c)(7)(D) of title 18, United States
Code.
(iii) Titles II through XIX of the Social Security
Act (42 U.S.C. 401 et seq.).

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(iv) Section 401(b)(3) of the Social Security Amendments of 1972 (42 U.S.C. 1382e note; Public Law 92–
603).
(v) The Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.).
(vi) Section 802(d)(2)(A)(i)(II) of the CranstonGonzalez National Affordable Housing Act (42 U.S.C.
8011(d)(2)(A)(i)(II)).
(2) DEFINITION REFERENCES.—
(A) Section 2 of Public Law 103–205 (7 U.S.C. 2012
note; 107 Stat. 2418) is amended by striking ‘‘section
3(k)(1)’’ and inserting ‘‘section 3(p)(1)’’.
(B) Section 205 of the Food Stamp Program Improvements Act of 1994 (7 U.S.C. 2012 note; Public Law 103–
225) is amended by striking ‘‘section 3(k) of such Act (as
amended by section 201)’’ and inserting ‘‘section 3(p) of
that Act’’.
(C) Section 115 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (21 U.S.C.
862a) is amended—
(i) by striking ‘‘section 3(h)’’ each place it appears
and inserting ‘‘section 3(l)’’; and
(ii) in subsection (e)(2), by striking ‘‘section 3(m)’’
and inserting ‘‘section 3(s)’’.
(D) Section 402(a) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8 U.S.C.
1612(a)) is amended—
(i) in paragraph (2)(F)(ii), by striking ‘‘section 3(r)’’
and inserting ‘‘section 3(j)’’; and
(ii) in paragraph (3)(B), by striking ‘‘section 3(h)’’
and inserting ‘‘section 3(l)’’.
(E) Section 3803(c)(2)(C)(vii) of title 31, United States
Code, is amended by striking ‘‘section 3(h)’’ and inserting
‘‘section 3(l)’’.
(F) Section 303(d)(4) of the Social Security Act (42
U.S.C. 503(d)(4)) is amended by striking ‘‘section 3(n)(1)’’
and inserting ‘‘section 3(t)(1)’’.
(G) Section 404 of the Social Security Act (42 U.S.C.
604) is amended by striking ‘‘section 3(h)’’ each place it
appears and inserting ‘‘section 3(l)’’.
(H) Section 531 of the Social Security Act (42 U.S.C.
654) is amended by striking ‘‘section 3(h)’’ each place it
appears and inserting ‘‘section 3(l)’’.
(I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez
National
Affordable
Housing
Act
(42
U.S.C.
8011(d)(2)(A)(i)(II)) is amended by striking ‘‘(as defined in
section 3(e) of such Act)’’.
(d) REFERENCES.—Any reference in any Federal, State, tribal,
or local law (including regulations) to a ‘‘coupon’’, ‘‘authorization
card’’, or other access device provided under the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be
a reference to a ‘‘benefit’’ provided under that Act.

42 USC 5179.

7 USC 2012 note.

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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:

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‘‘SEC. 11. ADMINISTRATION.

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

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SEC. 4117. CIVIL RIGHTS COMPLIANCE.

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
2020) is amended by striking subsection (c) and inserting the following:
‘‘(c) CIVIL RIGHTS COMPLIANCE.—

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

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

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SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE.

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

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member provides verbal assent considered as the
date of application for all purposes; and
‘‘(VII) comply with such other standards as
the Secretary may establish.’’.

SEC. 4120. PRIVACY PROTECTIONS.

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

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SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

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

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

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

PART IV—PROGRAM INTEGRITY
SEC. 4131. ELIGIBILITY DISQUALIFICATION.

Regulations.

Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C.
2015) is amended by adding at the end the following:
‘‘(p) DISQUALIFICATION FOR OBTAINING CASH BY DESTROYING
FOOD AND COLLECTING DEPOSITS.—Subject to any requirements
established by the Secretary, any person who has been found by
a State or Federal court or administrative agency in a hearing
under subsection (b) to have intentionally obtained cash by purchasing products with supplemental nutrition assistance program
benefits that have containers that require return deposits, discarding the product, and returning the container for the deposit
amount shall be ineligible for benefits under this Act for such
period of time as the Secretary shall prescribe by regulation.
‘‘(q) DISQUALIFICATION FOR SALE OF FOOD PURCHASED WITH
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS.—Subject to any requirements established by the Secretary, any person
who has been found by a State or Federal court or administrative
agency in a hearing under subsection (b) to have intentionally
sold any food that was purchased using supplemental nutrition
assistance program benefits shall be ineligible for benefits under
this Act for such period of time as the Secretary shall prescribe
by regulation.’’.
SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.

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

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

‘‘(a) DISQUALIFICATION.—
‘‘(1) IN GENERAL.—An approved retail food store or wholesale food concern that violates a provision of this Act or a
regulation under this Act may be—

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‘‘(A) disqualified for a specified period of time from
further participation in the supplemental nutrition assistance program;
‘‘(B) assessed a civil penalty of up to $100,000 for
each violation; or
‘‘(C) both.
‘‘(2) REGULATIONS.—Regulations promulgated under this
Act shall provide criteria for the finding of a violation of,
the suspension or disqualification of and the assessment of
a civil penalty against a retail food store or wholesale food
concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption
data, or evidence obtained through a transaction report under
an electronic benefit transfer system.’’;
(2) in subsection (b)—
(A) by striking ‘‘(b) Disqualification’’ and inserting the
following:
‘‘(b) PERIOD OF DISQUALIFICATION.—Subject to subsection (c),
a disqualification’’;
(B) in paragraph (1), by striking ‘‘of no less than six
months nor more than five years’’ and inserting ‘‘not to
exceed 5 years’’;
(C) in paragraph (2), by striking ‘‘of no less than twelve
months nor more than ten years’’ and inserting ‘‘not to
exceed 10 years’’;
(D) in paragraph (3)(B)—
(i) by inserting ‘‘or a finding of the unauthorized
redemption, use, transfer, acquisition, alteration, or
possession of EBT cards’’ after ‘‘concern’’ the first place
it appears; and
(ii) by striking ‘‘civil money penalties’’ and
inserting ‘‘civil penalties’’; and
(E) by striking ‘‘civil money penalty’’ each place it
appears and inserting ‘‘civil penalty’’;
(3) in subsection (c)—
(A) by striking ‘‘(c) The action’’ and inserting the following:
‘‘(c) CIVIL PENALTY AND REVIEW OF DISQUALIFICATION AND PENALTY DETERMINATIONS.—
‘‘(1) CIVIL PENALTY.—In addition to a disqualification under
this section, the Secretary may assess a civil penalty in an
amount not to exceed $100,000 for each violation.
‘‘(2) REVIEW.—The action’’; and
(B) in paragraph (2) (as designated by subparagraph
(A)), by striking ‘‘civil money penalty’’ and inserting ‘‘civil
penalty’’;
(4) in subsection (d)—
(A) by striking ‘‘(d)’’ and all that follows through ‘‘.
The Secretary shall’’ and inserting the following:
‘‘(d) CONDITIONS OF AUTHORIZATION.—
‘‘(1) IN GENERAL.—As a condition of authorization to accept
and redeem benefits, the Secretary may require a retail food
store or wholesale food concern that, pursuant to subsection
(a), has been disqualified for more than 180 days, or has been
subjected to a civil penalty in lieu of a disqualification period
of more than 180 days, to furnish a collateral bond or irrevocable letter of credit for a period of not more than 5 years

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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 establish procedures under which the processing of program benefit
redemptions for a retail food store or wholesale food concern
may be immediately suspended pending administrative action
to disqualify the retail food store or wholesale food concern.
‘‘(2) REQUIREMENTS.—Under the procedures described in
paragraph (1), if the Secretary, in consultation with the
Inspector General, determines that a retail food store or wholesale food concern is engaged in flagrant violations of this Act
(including regulations promulgated under this Act), unsettled
program benefits that have been redeemed by the retail food
store or wholesale food concern—
‘‘(A) may be suspended; and
‘‘(B)(i) if the program disqualification is upheld, may
be subject to forfeiture pursuant to section 15(g); or
‘‘(ii) if the program disqualification is not upheld, shall
be released to the retail food store or wholesale food concern.
‘‘(3) NO LIABILITY FOR INTEREST.—The Secretary shall not
be liable for the value of any interest on funds suspended
under this subsection.’’.

Procedures.

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SEC. 4133. MAJOR SYSTEMS FAILURES.

Section 13(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
2022(b)) is amended by adding at the end the following:
‘‘(5) OVERISSUANCES CAUSED BY SYSTEMIC STATE ERRORS.—
‘‘(A) IN GENERAL.—If the Secretary determines that
a State agency overissued benefits to a substantial number
of households in a fiscal year as a result of a major systemic
error by the State agency, as defined by the Secretary,
the Secretary may prohibit the State agency from collecting
these overissuances from some or all households.
‘‘(B) PROCEDURES.—
‘‘(i) INFORMATION REPORTING BY STATES.—Every
State agency shall provide to the Secretary all information requested by the Secretary concerning the issuance

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PUBLIC LAW 110–246—JUNE 18, 2008
of benefits to households by the State agency in the
applicable fiscal year.
‘‘(ii) FINAL DETERMINATION.—After reviewing relevant information provided by a State agency, the Secretary shall make a final determination—
‘‘(I) whether the State agency overissued benefits to a substantial number of households as a
result of a systemic error in the applicable fiscal
year; and
‘‘(II) as to the amount of the overissuance in
the applicable fiscal year for which the State
agency is liable.
‘‘(iii) ESTABLISHING A CLAIM.—Upon determining
under clause (ii) that a State agency has overissued
benefits to households due to a major systemic error
determined under subparagraph (A), the Secretary
shall establish a claim against the State agency equal
to the value of the overissuance caused by the systemic
error.
‘‘(iv) ADMINISTRATIVE AND JUDICIAL REVIEW.—
Administrative and judicial review, as provided in section 14, shall apply to the final determinations by
the Secretary under clause (ii).
‘‘(v) REMISSION TO THE SECRETARY.—
‘‘(I) DETERMINATION NOT APPEALED.—If the
determination of the Secretary under clause (ii)
is not appealed, the State agency shall, as soon
as practicable, remit to the Secretary the dollar
amount specified in the claim under clause (iii).
‘‘(II) DETERMINATION APPEALED.—If the determination of the Secretary under clause (ii) is
appealed, upon completion of administrative and
judicial review under clause (iv), and a finding
of liability on the part of the State, the appealing
State agency shall, as soon as practicable, remit
to the Secretary a dollar amount subject to the
finding made in the administrative and judicial
review.
‘‘(vi) ALTERNATIVE METHOD OF COLLECTION.—
‘‘(I) IN GENERAL.—If a State agency fails to
make a payment under clause (v) within a reasonable period of time, as determined by the Secretary, the Secretary may reduce any amount due
to the State agency under any other provision
of this Act by the amount due.
‘‘(II) ACCRUAL OF INTEREST.—During the
period of time determined by the Secretary to be
reasonable under subclause (I), interest in the
amount owed shall not accrue.
‘‘(vii) LIMITATION.—Any liability amount established under section 16(c)(1)(C) shall be reduced by
the amount of the claim established under this
subparagraph.’’.

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Applicability.

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122 STAT. 1879

PART V—MISCELLANEOUS

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

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

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

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‘‘(I) the impact of the pilot project on appropriate health, nutrition, and associated behavioral
outcomes among households participating in the
pilot project;
‘‘(II) baseline information relevant to the
stated goals and desired outcomes of the pilot
project; and
‘‘(III) equivalent information about similar or
identical measures among control or comparison
groups that did not participate in the pilot project.
‘‘(C) PUBLIC DISSEMINATION.—In addition to the
reporting requirements under subparagraph (B), evaluation
results shall be shared broadly to inform policy makers,
service providers, other partners, and the public in order
to promote wide use of successful strategies.
‘‘(5) FUNDING.—
‘‘(A) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2008
through 2012.
‘‘(B) MANDATORY FUNDING.—Out of any funds made
available under section 18, on October 1, 2008, the Secretary shall make available $20,000,000 to carry out a
project described in paragraph (3)(E), to remain available
until expended.’’.

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

(a) IN GENERAL.—The Secretary shall carry out a study of
the feasibility and effects of including the Commonwealth of Puerto
Rico in the definition of the term ‘‘State’’ under section 3 of the
Food and Nutrition Act of 2008 (7 U.S.C. 2012), in lieu of providing
block grants under section 19 of that Act (7 U.S.C. 2028).
(b) INCLUSIONS.—The study shall include—
(1) an assessment of the administrative, financial management, and other changes that would be necessary for the
Commonwealth to establish a comparable supplemental nutrition assistance program, including compliance with appropriate
program rules under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.), such as—
(A) benefit levels under section 3(u) of that Act (7
U.S.C. 2012(u));
(B) income eligibility standards under sections 5(c) and
6 of that Act (7 U.S.C. 2014(c), 2015); and
(C) deduction levels under section 5(e) of that Act
(7 U.S.C. 2014(e));
(2) an estimate of the impact on Federal and Commonwealth benefit and administrative costs;
(3) an assessment of the impact of the program on lowincome Puerto Ricans, as compared to the program under section 19 of that Act (7 U.S.C. 2028); and
(4) such other matters as the Secretary considers to be
appropriate.
(c) REPORT.—Not later than 2 years after the date of enactment
of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on

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Transfer date.

PUBLIC LAW 110–246—JUNE 18, 2008

Agriculture, Nutrition, and Forestry of the Senate a report that
describes the results of the study conducted under this section.
(d) FUNDING.—
(1) IN GENERAL.—On October 1, 2008, out of any funds
in the Treasury not otherwise appropriated, the Secretary of
the Treasury shall transfer to the Secretary to carry out this
section $1,000,000, to remain available until expended.
(2) RECEIPT AND ACCEPTANCE.—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this
section the funds transferred under paragraph (1), without
further appropriation.

Subtitle B—Food Distribution Programs
PART I—EMERGENCY FOOD ASSISTANCE
PROGRAM
SEC. 4201. EMERGENCY FOOD ASSISTANCE.

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Submissions.

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(a) PURCHASE OF COMMODITIES.—Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by –
(1) by striking ‘‘(A) PURCHASE OF COMMODITIES’’ and all
that follows through ‘‘$140,000,000 of’’ and inserting the following:
‘‘(a) PURCHASE OF COMMODITIES.—
‘‘(1) IN GENERAL.—From amounts made available to carry
out this Act, for each of the fiscal years 2008 through 2012,
the Secretary shall purchase a dollar amount described in paragraph (2) of’’; and
(2) by adding at the end the following:
‘‘(2) AMOUNTS.—The Secretary shall use to carry out paragraph (1)—
‘‘(A) for fiscal year 2008, $190,000,000;
‘‘(B) for fiscal year 2009, $250,000,000; and
‘‘(C) for each of fiscal years 2010 through 2012, the
dollar amount of commodities specified in subparagraph
(B) adjusted by the percentage by which the thrifty food
plan has been adjusted under section 3(u)(4) between June
30, 2008, and June 30 of the immediately preceding fiscal
year.’’.
(b) STATE PLANS.—Section 202A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7503) is amended by striking subsection
(a) and inserting the following:
‘‘(a) PLANS.—
‘‘(1) IN GENERAL.—To receive commodities under this Act,
a State shall submit to the Secretary an operation and administration plan for the provision of benefits under this Act.
‘‘(2) UPDATES.—A State shall submit to the Secretary for
approval any amendment to a plan submitted under paragraph
(1) in any case in which the State proposes to make a change
to the operation or administration of a program described in
the plan.’’.
(c) AUTHORIZATION AND APPROPRIATIONS.—Section 204(a)(1) of
the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1))
is amended in the first sentence—
(1) by striking ‘‘$60,000,000’’ and inserting ‘‘$100,000,000’’;
and

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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.

7 USC 7511a.

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

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PUBLIC LAW 110–246—JUNE 18, 2008

PART II—FOOD DISTRIBUTION PROGRAM ON
INDIAN RESERVATIONS

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

(a) IN GENERAL.—Section 4 of the Food and Nutrition Act
of 2008 (7 U.S.C. 2013) is amended by striking subsection (b)
and inserting the following:
‘‘(b) FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.—
‘‘(1) IN GENERAL.—Distribution of commodities, with or
without the supplemental nutrition assistance program, shall
be made whenever a request for concurrent or separate food
program operations, respectively, is made by a tribal organization.
‘‘(2) ADMINISTRATION.—
‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and
(C), in the event of distribution on all or part of an Indian
reservation, the appropriate agency of the State government in the area involved shall be responsible for the
distribution.
‘‘(B) ADMINISTRATION BY TRIBAL ORGANIZATION.—If the
Secretary determines that a tribal organization is capable
of effectively and efficiently administering a distribution
described in paragraph (1), then the tribal organization
shall administer the distribution.
‘‘(C) PROHIBITION.—The Secretary shall not approve
any plan for a distribution described in paragraph (1) that
permits any household on any Indian reservation to participate simultaneously in the supplemental nutrition assistance program and the program established under this subsection.
‘‘(3) DISQUALIFIED PARTICIPANTS.—An individual who is disqualified from participation in the food distribution program
on Indian reservations under this subsection is not eligible
to participate in the supplemental nutrition assistance program
under this Act for a period of time to be determined by the
Secretary.
‘‘(4) ADMINISTRATIVE COSTS.—The Secretary is authorized
to pay such amounts for administrative costs and distribution
costs on Indian reservations as the Secretary finds necessary
for effective administration of such distribution by a State
agency or tribal organization.
‘‘(5) BISON MEAT.—Subject to the availability of appropriations to carry out this paragraph, the Secretary may purchase
bison meat for recipients of food distributed under this subsection, including bison meat from—
‘‘(A) Native American bison producers; and
‘‘(B) producer–owned cooperatives of bison ranchers.
‘‘(6) TRADITIONAL AND LOCALLY-GROWN FOOD FUND.—
‘‘(A) IN GENERAL.—Subject to the availability of appropriations, the Secretary shall establish a fund for use in
purchasing traditional and locally-grown foods for recipients of food distributed under this subsection.
‘‘(B) NATIVE AMERICAN PRODUCERS.—Where practicable, of the food provided under subparagraph (A), at

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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 Secretary shall—
‘‘(i) survey participants of the food distribution program on Indian reservations established under this
subsection to determine which traditional foods are
most desired by those participants; and
‘‘(ii) purchase or offer to purchase those traditional
foods that may be procured cost-effectively.
‘‘(E) REPORT.—Not later than 1 year after the date
of enactment of this paragraph, and annually thereafter,
the Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
describing the activities carried out under this paragraph
during the preceding calendar year.
‘‘(F) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary to carry
out this paragraph $5,000,000 for each of fiscal years 2008
through 2012.’’.
(b) FDPIR FOOD PACKAGE.—Not later than 180 days after
the date of enactment of this Act, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes—
(1) how the Secretary derives the process for determining
the food package under the food distribution program on Indian
reservations established under section 4(b) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2013(b)) (referred to in this
subsection as the ‘‘food package’’);
(2) the extent to which the food package—
(A) addresses the nutritional needs of low-income
Native Americans compared to the supplemental nutrition
assistance program, particularly for very low-income households;
(B) conforms (or fails to conform) to the 2005 Dietary
Guidelines for Americans published under section 301 of
the National Nutrition Monitoring and Related Research
Act of 1990 (7 U.S.C. 5341);
(C) addresses (or fails to address) the nutritional and
health challenges that are specific to Native Americans;
and
(D) is limited by distribution costs or challenges in
infrastructure; and
(3)(A) any plans of the Secretary to revise and update
the food package to conform with the most recent Dietary
Guidelines for Americans, including any costs associated with
the planned changes; or
(B) if the Secretary does not plan changes to the food
package, the rationale of the Secretary for retaining the food
package.

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PUBLIC LAW 110–246—JUNE 18, 2008

PART III—COMMODITY SUPPLEMENTAL FOOD
PROGRAM
SEC. 4221. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

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

PART IV—SENIOR FARMERS’ MARKET
NUTRITION PROGRAM
SEC. 4231. SENIORS FARMERS’ MARKET NUTRITION PROGRAM.

Section 4402 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3007) is amended—
(1) in subsection (b)(1), by inserting ‘‘honey,’’ after ‘‘vegetables,’’;
(2) by striking subsection (c) and inserting the following:
‘‘(c) EXCLUSION OF BENEFITS IN DETERMINING ELIGIBILITY FOR
OTHER PROGRAMS.—The value of any benefit provided to any eligible
seniors farmers’ market nutrition program recipient under this
section shall not be considered to be income or resources for any
purposes under any Federal, State, or local law.’’; and
(3) by adding at the end the following:
‘‘(d) PROHIBITION ON COLLECTION OF SALES TAX.—Each State
shall ensure that no State or local tax is collected within the
State on a purchase of food with a benefit distributed under the
seniors farmers’ market nutrition program.
‘‘(e) REGULATIONS.—The Secretary may promulgate such regulations as the Secretary considers to be necessary to carry out the
seniors farmers’ market nutrition program.’’.

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Subtitle C—Child Nutrition and Related
Programs

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42 USC 1758a.

SEC.

Deadline.
Reports.

(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—

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RECEIVING PROGRAM BENEFITS FOR FREE SCHOOL
MEALS.

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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.’’.

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SEC.

4303.

HEALTHY
FOOD
REPLICABILITY.

EDUCATION

AND

Website.

PROGRAM

Section 18(h) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1769(h)) is amended—
(1) in paragraph (1)(C), by inserting ‘‘promotes healthy
food education in the school curriculum and’’ before ‘‘incorporates’’;
(2) by redesignating paragraph (2) as paragraph (4); and
(3) by inserting after paragraph (1) the following:
‘‘(2) ADMINISTRATION.—In providing grants under paragraph (1), the Secretary shall give priority to projects that
can be replicated in schools.
‘‘(3) PILOT PROGRAM FOR HIGH-POVERTY SCHOOLS.—
‘‘(A) DEFINITIONS.—In this paragraph:

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(i) ELIGIBLE PROGRAM.—The term ‘eligible program’ means—
‘‘(I) a school-based program with hands-on
vegetable gardening and nutrition education that
is incorporated into the curriculum for 1 or more
grades at 2 or more eligible schools; or
‘‘(II) a community-based summer program
with hands-on vegetable gardening and nutrition
education that is part of, or coordinated with, a
summer enrichment program at 2 or more eligible
schools.
‘‘(ii) ELIGIBLE SCHOOL.—The term ‘eligible school’
means a public school, at least 50 percent of the students of which are eligible for free or reduced price
meals under this Act.
‘‘(B) ESTABLISHMENT.—The Secretary shall carry out
a pilot program under which the Secretary shall provide
to nonprofit organizations or public entities in not more
than 5 States grants to develop and run, through eligible
programs, community gardens at eligible schools in the
States that would—
‘‘(i) be planted, cared for, and harvested by students at the eligible schools; and
‘‘(ii) teach the students participating in the community gardens about agriculture production practices and
diet.
‘‘(C) PRIORITY STATES.—Of the States in which grantees
under this paragraph are located—
‘‘(i) at least 1 State shall be among the 15 largest
States, as determined by the Secretary;
‘‘(ii) at least 1 State shall be among the 16th
to 30th largest States, as determined by the Secretary;
and
‘‘(iii) at least 1 State shall be a State that is
not described in clause (i) or (ii).
‘‘(D) USE OF PRODUCE.—Produce from a community
garden provided a grant under this paragraph may be—
‘‘(i) used to supplement food provided at the eligible
school;
‘‘(ii) distributed to students to bring home to the
families of the students; or
‘‘(iii) donated to a local food bank or senior center
nutrition program.
‘‘(E) NO COST-SHARING REQUIREMENT.—A nonprofit
organization or public entity that receives a grant under
this paragraph shall not be required to share the cost
of carrying out the activities assisted under this paragraph.
‘‘(F) EVALUATION.—A nonprofit organization or public
entity that receives a grant under this paragraph shall
be required to cooperate in an evaluation in accordance
with paragraph (1)(H).’’.

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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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122 STAT. 1889

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

42 USC 1769a.

‘‘(a) IN GENERAL.—For the school year beginning July 2008
and each subsequent school year, the Secretary shall provide grants
to States to carry out a program to make free fresh fruits and
vegetables available in elementary schools (referred to in this section as the ‘program’).
‘‘(b) PROGRAM.—A school participating in the program shall
make free fresh fruits and vegetables available to students throughout the school day (or at such other times as are considered appropriate by the Secretary) in 1 or more areas designated by the
school.
‘‘(c) FUNDING TO STATES.—
‘‘(1) MINIMUM GRANT.—Except as provided in subsection
(i)(2), the Secretary shall provide to each of the 50 States
and the District of Columbia an annual grant in an amount
equal to 1 percent of the funds made available for a year
to carry out the program.
‘‘(2) ADDITIONAL FUNDING.—Of the funds remaining after
grants are made under paragraph (1), the Secretary shall allocate additional funds to each State that is operating a school
lunch program under section 4 based on the proportion that—
‘‘(A) the population of the State; bears to
‘‘(B) the population of the United States.
‘‘(d) SELECTION OF SCHOOLS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2)
of this subsection and section 4304(a)(2) of the Food, Conservation, and Energy Act of 2008, each year, in selecting schools
to participate in the program, each State shall—
‘‘(A) ensure that each school chosen to participate in
the program is a school—
‘‘(i) in which not less than 50 percent of the students are eligible for free or reduced price meals under
this Act; and
‘‘(ii) that submits an application in accordance with
subparagraph (D);
‘‘(B) to the maximum extent practicable, give the
highest priority to schools with the highest proportion of
children who are eligible for free or reduced price meals
under this Act;
‘‘(C) ensure that each school selected is an elementary
school (as defined in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801));
‘‘(D) solicit applications from interested schools that
include—
‘‘(i) information pertaining to the percentage of
students enrolled in the school submitting the application who are eligible for free or reduced price school
lunches under this Act;
‘‘(ii) a certification of support for participation in
the program signed by the school food manager, the
school principal, and the district superintendent (or
equivalent positions, as determined by the school);
‘‘(iii) a plan for implementation of the program,
including efforts to integrate activities carried out
under this section with other efforts to promote sound
health and nutrition, reduce overweight and obesity,
or promote physical activity; and

Grants.

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PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(iv) such other information as may be requested
by the Secretary; and
‘‘(E) encourage applicants to submit a plan for
implementation of the program that includes a partnership
with 1 or more entities that will provide non-Federal
resources (including entities representing the fruit and
vegetable industry).
‘‘(2) EXCEPTION.—Clause (i) of paragraph (1)(A) shall not
apply to a State if all schools that meet the requirements
of that clause have been selected and the State does not have
a sufficient number of additional schools that meet the requirement of that clause.
‘‘(3) OUTREACH TO LOW-INCOME SCHOOLS.—
‘‘(A) IN GENERAL.—Prior to making decisions regarding
school participation in the program, a State agency shall
inform the schools within the State with the highest proportion of free and reduced price meal eligibility, including
Native American schools, of the eligibility of the schools
for the program with respect to priority granted to schools
with the highest proportion of free and reduced price eligibility under paragraph (1)(B).
‘‘(B) REQUIREMENT.—In providing information to
schools in accordance with subparagraph (A), a State
agency shall inform the schools that would likely be chosen
to participate in the program under paragraph (1)(B).
‘‘(e) NOTICE OF AVAILABILITY.—If selected to participate in the
program, a school shall widely publicize within the school the availability of free fresh fruits and vegetables under the program.
‘‘(f) PER-STUDENT GRANT.—The per-student grant provided to
a school under this section shall be—
‘‘(1) determined by a State agency; and
‘‘(2) not less than $50, nor more than $75.
‘‘(g) LIMITATION.—To the maximum extent practicable, each
State agency shall ensure that in making the fruits and vegetables
provided under this section available to students, schools offer
the fruits and vegetables separately from meals otherwise provided
at the school under this Act or the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.).
‘‘(h) EVALUATION AND REPORTS.—
‘‘(1) IN GENERAL.—The Secretary shall conduct an evaluation of the program, including a determination as to whether
children experienced, as a result of participating in the program—
‘‘(A) increased consumption of fruits and vegetables;
‘‘(B) other dietary changes, such as decreased consumption of less nutritious foods; and
‘‘(C) such other outcomes as are considered appropriate
by the Secretary.
‘‘(2) REPORT.—Not later than September 30, 2011, the Secretary shall submit to the Committee on Education and Labor
of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that
describes the results of the evaluation under paragraph (1).
‘‘(i) FUNDING.—
‘‘(1) IN GENERAL.—Out of the funds made available under
subsection (b)(2)(A) of section 14222 of the Food, Conservation,

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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 obligation until September 30, 2010.
‘‘(4) RECEIPT AND ACCEPTANCE.—The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section any funds transferred for that purpose, without
further appropriation.
‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—In addition to
any other amounts made available to carry out this section,
there are authorized to be appropriated such sums as are
necessary to expand the program established under this section.
‘‘(6) ADMINISTRATIVE COSTS.—
‘‘(A) IN GENERAL.—Of funds made available to carry
out this section for a fiscal year, the Secretary may use
not more than $500,000 for the administrative costs of
carrying out the program.
‘‘(B) RESERVATION OF FUNDS.—The Secretary shall
allow each State to reserve such funding as the Secretary
determines to be necessary to administer the program in
the State (with adjustments for the size of the State and
the grant amount), but not to exceed the amount required
to pay the costs of 1 full-time coordinator for the program
in the State.
‘‘(7) REALLOCATION.—
‘‘(A) AMONG STATES.—The Secretary may reallocate any
amounts made available to carry out this section that are
not obligated or expended by a date determined by the
Secretary.
‘‘(B) WITHIN STATES.—A State that receives a grant
under this section may reallocate any amounts made available under the grant that are not obligated or expended
by a date determined by the Secretary.’’.
(2) TRANSITION OF EXISTING SCHOOLS.—

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42 USC 1769a
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122 STAT. 1892
Waiver authority.

(A) EXISTING SECONDARY SCHOOLS.—Section 19(d)(1)(C)
of the Richard B. Russell National School Lunch Act (as
amended by paragraph (1)) may be waived by a State
until July 1, 2010, for each secondary school in the State
that has been awarded funding under section 18(f) of that
Act (42 U.S.C. 1769(f)) for the school year beginning July
1, 2008.
(B) SCHOOL YEAR BEGINNING JULY 1, 2008.—To facilitate
transition from the program authorized under section 18(f)
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769(f)) (as in effect on the day before the date
of enactment of this Act) to the program established under
section 19 of that Act (as amended by paragraph (1))—
(i) for the school year beginning July 1, 2008,
the Secretary may permit any school selected for
participation under section 18(f) of that Act (42 U.S.C.
1769(f)) for that school year to continue to participate
under section 19 of that Act until the end of that
school year; and
(ii) funds made available under that Act for fiscal
year 2009 may be used to support the participation
of any schools selected to participate in the program
authorized under section 18(f) of that Act (42 U.S.C.
1769(f)) (as in effect on the day before the date of
enactment of this Act).
(b) CONFORMING AMENDMENTS.—Section 18 of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769) is amended—
(1) by striking subsection (f); and
(2) by redesignating subsections (g) through (j) as subsections (f) through (i), respectively.

42 USC 1755a.

SEC. 4305. WHOLE GRAIN PRODUCTS.

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(a) PURPOSE.—The purpose of this section is to encourage
greater awareness and interest in the number and variety of whole
grain products available to schoolchildren, as recommended by the
2005 Dietary Guidelines for Americans.
(b) DEFINITION OF ELIGIBLE WHOLE GRAINS AND WHOLE GRAIN
PRODUCTS.—In this section, the terms ‘‘whole grains’’ and ‘‘whole
grain products’’ have the meaning given the terms by the Food
and Nutrition Service in the HealthierUS School Challenge.
(c) PURCHASE OF WHOLE GRAINS AND WHOLE GRAIN PRODUCTS.—In addition to the commodities delivered under section 6
of the Richard B. Russell National School Lunch Act (42 U.S.C.
1755), the Secretary shall purchase whole grains and whole grain
products for use in—
(1) the school lunch program established under the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.);
and
(2) the school breakfast program established by section
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(d) EVALUATION.—Not later than September 30, 2011, the Secretary shall conduct an evaluation of the activities conducted under
subsection (c) that includes—
(1) an evaluation of whether children participating in the
school lunch and breakfast programs increased their consumption of whole grains;

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(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.

7 USC 2208 note.

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

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

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

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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:
Bill Emerson
National Hunger
Fellows and
Mickey Leland
International
Hunger Fellows
Program Act
of 2008.

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Grants.

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

‘‘(a) SHORT TITLE.—This section may be cited as the ‘Bill
Emerson National Hunger Fellows and Mickey Leland International
Hunger Fellows Program Act of 2008’.
‘‘(b) DEFINITIONS.—In this subsection:
‘‘(1) DIRECTOR.—The term ‘Director’ means the head of
the Congressional Hunger Center.
‘‘(2) FELLOW.—The term ‘fellow’ means—
‘‘(A) a Bill Emerson Hunger Fellow; or
‘‘(B) Mickey Leland Hunger Fellow.
‘‘(3) FELLOWSHIP PROGRAMS.—The term ‘Fellowship Programs’ means the Bill Emerson National Hunger Fellowship
Program and the Mickey Leland International Hunger Fellowship Program established under subsection (c)(1).
‘‘(c) FELLOWSHIP PROGRAMS.—
‘‘(1) IN GENERAL.—There is established the Bill Emerson
National Hunger Fellowship Program and the Mickey Leland
International Hunger Fellowship Program.
‘‘(2) PURPOSES.—
‘‘(A) IN GENERAL.—The purposes of the Fellowship Programs are—
‘‘(i) to encourage future leaders of the United
States—
‘‘(I) to pursue careers in humanitarian and
public service;
‘‘(II) to recognize the needs of low-income
people and hungry people;
‘‘(III) to provide assistance to people in need;
and
‘‘(IV) to seek public policy solutions to the
challenges of hunger and poverty;
‘‘(ii) to provide training and development
opportunities for such leaders through placement in
programs operated by appropriate organizations or
entities; and
‘‘(iii) to increase awareness of the importance of
public service.
‘‘(B) BILL EMERSON HUNGER FELLOWSHIP PROGRAM.—
The purpose of the Bill Emerson Hunger Fellowship Program is to address hunger and poverty in the United States.
‘‘(C) MICKEY LELAND HUNGER FELLOWSHIP PROGRAM.—
The purpose of the Mickey Leland Hunger Fellowship Program is to address international hunger and other humanitarian needs.
‘‘(3) ADMINISTRATION.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary shall offer to provide a grant to the Congressional
Hunger Center to administer the Fellowship Programs.

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‘‘(B) TERMS OF GRANT.—The terms of the grant provided under subparagraph (A), including the length of the
grant and provisions for the alteration or termination of
the grant, shall be determined by the Secretary in accordance with this section.
‘‘(d) FELLOWSHIPS.—
‘‘(1) IN GENERAL.—The Director shall make available Bill
Emerson Hunger Fellowships and Mickey Leland Hunger
Fellowships in accordance with this subsection.
‘‘(2) CURRICULUM.—
‘‘(A) IN GENERAL.—The Fellowship Programs shall provide experience and training to develop the skills necessary
to train fellows to carry out the purposes described in
subsection (c)(2), including—
‘‘(i) training in direct service programs for the
hungry and other anti-hunger programs in conjunction
with community-based organizations through a program of field placement; and
‘‘(ii) providing experience in policy development
through placement in a governmental entity or nongovernmental, nonprofit, or private sector organization.
‘‘(B) WORK PLAN.—To carry out subparagraph (A) and
assist in the evaluation of the fellowships under paragraph
(6), the Director shall, for each fellow, approve a work
plan that identifies the target objectives for the fellow
in the fellowship, including specific duties and responsibilities relating to those objectives.
‘‘(3) PERIOD OF FELLOWSHIP.—
‘‘(A) BILL EMERSON HUNGER FELLOW.—A Bill Emerson
Hunger Fellowship awarded under this section shall be
for not more than 15 months.
‘‘(B) MICKEY LELAND HUNGER FELLOW.—A Mickey
Leland Hunger Fellowship awarded under this section shall
be for not more than 2 years.
‘‘(4) SELECTION OF FELLOWS.—
‘‘(A) IN GENERAL.—Fellowships shall be awarded pursuant to a nationwide competition established by the Director.
‘‘(B) QUALIFICATIONS.—A successful program applicant
shall be an individual who has demonstrated—
‘‘(i) an intent to pursue a career in humanitarian
services and outstanding potential for such a career;
‘‘(ii) leadership potential or actual leadership
experience;
‘‘(iii) diverse life experience;
‘‘(iv) proficient writing and speaking skills;
‘‘(v) an ability to live in poor or diverse communities; and
‘‘(vi) such other attributes as are considered to
be appropriate by the Director.
‘‘(5) AMOUNT OF AWARD.—
‘‘(A) IN GENERAL.—A fellow shall receive—
‘‘(i) a living allowance during the term of the
Fellowship; and
‘‘(ii) subject to subparagraph (B), an end-of-service
award.
‘‘(B) REQUIREMENT FOR SUCCESSFUL COMPLETION OF
FELLOWSHIP.—Each fellow shall be entitled to receive an

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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 Programs; and
‘‘(B) arrange for annual independent financial audits
of expenditures under the Fellowship Programs.
‘‘(e) AUTHORITY.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), in carrying
out this section, the Director may solicit, accept, use, and
dispose of gifts, bequests, or devises of services or property,
both real and personal, for the purpose of facilitating the work
of the Fellowship Programs.
‘‘(2) LIMITATION.—Gifts, bequests, or devises of money and
proceeds from sales of other property received as gifts, bequests,
or devises shall be used exclusively for the purposes of the
Fellowship Programs.
‘‘(f) REPORT.—The Director shall annually submit to the Secretary of Agriculture, the Committee on Agriculture of the House
of Representatives, and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that—
‘‘(1) describes the activities and expenditures of the Fellowship Programs during the preceding fiscal year, including
expenditures made from funds made available under subsection
(g); and
‘‘(2) includes the results of evaluations and audits required
by subsection (d).
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary such sums as are necessary
to carry out this section, to remain available until expended.’’.

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SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C.
2034) is amended—
(1) by striking subsection (a) and inserting the following:
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) COMMUNITY FOOD PROJECT.—In this section, the term
‘community food project’ means a community-based project
that—
‘‘(A) requires a 1-time contribution of Federal assistance to become self-sustaining; and

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122 STAT. 1897

‘‘(B) is designed—
‘‘(i)(I) to meet the food needs of low-income individuals;
‘‘(II) to increase the self-reliance of communities
in providing for the food needs of the communities;
and
‘‘(III) to promote comprehensive responses to local
food, farm, and nutrition issues; or
‘‘(ii) to meet specific State, local, or neighborhood
food and agricultural needs, including needs relating
to—
‘‘(I) infrastructure improvement and development;
‘‘(II) planning for long-term solutions; or
‘‘(III) the creation of innovative marketing
activities that mutually benefit agricultural producers and low-income consumers.
‘‘(2) CENTER.—The term ‘Center’ means the healthy urban
food enterprise development center established under subsection (h).
‘‘(3) UNDERSERVED COMMUNITY.—The term ‘underserved
community’ means a community (including an urban or rural
community or an Indian tribe) that, as determined by the
Secretary, has—
‘‘(A) limited access to affordable, healthy foods,
including fresh fruits and vegetables;
‘‘(B) a high incidence of a diet-related disease (including
obesity) as compared to the national average;
‘‘(C) a high rate of hunger or food insecurity; or
‘‘(D) severe or persistent poverty.’’;
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following:
‘‘(h) HEALTHY URBAN FOOD ENTERPRISE DEVELOPMENT
CENTER.—
‘‘(1) DEFINITION OF ELIGIBLE ENTITY.—In this subsection,
the term ‘eligible entity’ means—
‘‘(A) a nonprofit organization;
‘‘(B) a cooperative;
‘‘(C) a commercial entity;
‘‘(D) an agricultural producer;
‘‘(E) an academic institution;
‘‘(F) an individual; and
‘‘(G) such other entities as the Secretary may designate.
‘‘(2) ESTABLISHMENT.—The Secretary shall offer to provide
a grant to a nonprofit organization to establish and support
a healthy urban food enterprise development center to carry
out the purpose described in paragraph (3).
‘‘(3) PURPOSE.—The purpose of the Center is to increase
access to healthy affordable foods, including locally produced
agricultural products, to underserved communities.
‘‘(4) ACTIVITIES.—
‘‘(A) TECHNICAL ASSISTANCE AND INFORMATION.—The
Center shall collect, develop, and provide technical assistance and information to small and medium-sized agricultural producers, food wholesalers and retailers, schools,
and other individuals and entities regarding best practices
and the availability of assistance for aggregating, storing,

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PUBLIC LAW 110–246—JUNE 18, 2008
processing, and marketing locally produced agricultural
products and increasing the availability of such products
in underserved communities.
‘‘(B) AUTHORITY TO SUBGRANT.—The Center may provide subgrants to eligible entities—
‘‘(i) to carry out feasibility studies to establish
businesses for the purpose described in paragraph (3);
and
‘‘(ii) to establish and otherwise assist enterprises
that process, distribute, aggregate, store, and market
healthy affordable foods.
‘‘(5) PRIORITY.—In providing technical assistance and
grants under paragraph (4), the Center shall give priority to
applications that include projects—
‘‘(A) to benefit underserved communities; and
‘‘(B) to develop market opportunities for small and
mid-sized farm and ranch operations.
‘‘(6) REPORT.—For each fiscal year for which the nonprofit
organization described in paragraph (2) receives funds, the
organization shall submit to the Secretary a report describing
the activities carried out in the preceding fiscal year,
including—
‘‘(A) a description of technical assistance provided by
the Center;
‘‘(B) the total number and a description of the subgrants provided under paragraph (4)(B);
‘‘(C) a complete listing of cases in which the activities
of the Center have resulted in increased access to healthy,
affordable foods, such as fresh fruit and vegetables, particularly for school-aged children and individuals in low-income
communities; and
‘‘(D) a determination of whether the activities identified
in subparagraph (C) are sustained during the years following the initial provision of technical assistance and subgrants under this section.
‘‘(7) COMPETITIVE AWARD PROCESS.—The Secretary shall
use a competitive process to award funds to establish the
Center.
‘‘(8) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more
than 10 percent of the total amount allocated for this subsection
in a given fiscal year may be used for administrative expenses.
‘‘(9) FUNDING.—
‘‘(A) IN GENERAL.—Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this subsection
$1,000,000 for each of fiscal years 2009 through 2011.
‘‘(B) ADDITIONAL FUNDING.—There is authorized to be
appropriated $2,000,000 to carry out this subsection for
fiscal year 2012.’’.

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7 USC 5311a.

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

The Secretary and the Secretary of Health and Human Services
shall continue to provide jointly for national nutrition monitoring
and related research activities carried out as of the date of enactment of this Act—

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(1) to collect continuous dietary, health, physical activity,
and diet and health knowledge data on a nationally representative sample;
(2) to periodically collect data on special at-risk populations,
as identified by the Secretaries;
(3) to distribute information on health, nutrition, the
environment, and physical activity to the public in a timely
fashion;
(4) to analyze new data that becomes available;
(5) to continuously update food composition tables; and
(6) to research and develop data collection methods and
standards.
SEC. 4404. SECTION 32 FUNDS FOR PURCHASE OF FRUITS, VEGETABLES, AND NUTS TO SUPPORT DOMESTIC NUTRITION
ASSISTANCE PROGRAMS.

7 USC 612c–5.

(a) FUNDING FOR ADDITIONAL PURCHASES OF FRUITS, VEGETABLES, AND NUTS.—In addition to the purchases of fruits, vegetables,
and nuts required by section 10603 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 612c–4), the Secretary
of Agriculture shall purchase fruits, vegetables, and nuts for the
purpose of providing nutritious foods for use in domestic nutrition
assistance programs, using, of the funds made available under
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), the
following amounts:
(1) $190,000,000 for fiscal year 2008.
(2) $193,000,000 for fiscal year 2009.
(3) $199,000,000 for fiscal year 2010.
(4) $203,000,000 for fiscal year 2011.
(5) $206,000,000 for fiscal year 2012 and each fiscal year
thereafter.
(b) FORM OF PURCHASES.—Fruits, vegetables, and nuts may
be purchased under this section in the form of frozen, canned,
dried, or fresh fruits, vegetables, and nuts.
(c) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS.—Section 10603 of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
612c–4) is amended by striking subsection (b) and inserting the
following:
‘‘(b) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS.—The Secretary
of Agriculture shall purchase fresh fruits and vegetables for distribution to schools and service institutions in accordance with
section 6(a) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1755(a)) using, of the amount specified in subsection
(a), not less than $50,000,000 for each of fiscal years 2008 through
2012.’’.

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SEC. 4405. HUNGER-FREE COMMUNITIES.

7 USC 612c–4.

7 USC 7517.

(a) DEFINITIONS.—In this section:
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a
public food program service provider or nonprofit organization,
including an emergency feeding organization, that has collaborated, or will collaborate, with 1 or more local partner organizations to achieve at least 1 hunger-free communities goal.
(2) EMERGENCY FEEDING ORGANIZATION.—The term ‘‘emergency feeding organization’’ has the meaning given the term

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PUBLIC LAW 110–246—JUNE 18, 2008
in section 201A of the Emergency Food Assistance Act of 1983
(7 U.S.C. 7501).
(3) HUNGER-FREE COMMUNITIES GOAL.—The term ‘‘hungerfree communities goal’’ means any of the 14 goals described
in the H. Con. Res. 302 (102nd Congress).
(b) HUNGER-FREE COMMUNITIES COLLABORATIVE GRANTS.—
(1) PROGRAM.—
(A) IN GENERAL.—The Secretary shall use not more
than 50 percent of any funds made available under subsection (e) to make grants to eligible entities to pay the
Federal share of the costs of an activity described in paragraph (2).
(B) FEDERAL SHARE.—The Federal share of the cost
of carrying out an activity under this subsection shall not
exceed 80 percent.
(C) NON-FEDERAL SHARE.—
(i) CALCULATION.—The non-Federal share of the
cost of an activity under this subsection may be provided in cash or fairly evaluated in-kind contributions,
including facilities, equipment, or services.
(ii) SOURCES.—Any entity may provide the nonFederal share of the cost of an activity under this
subsection through a State government, a local government, or a private source.
(2) USE OF FUNDS.—An eligible entity in a community
shall use a grant received under this subsection for any fiscal
year for hunger relief activities, including—
(A) meeting the immediate needs of people who experience hunger in the community served by the eligible entity
by—
(i) distributing food;
(ii) providing community outreach to assist in
participation in federally assisted nutrition programs,
including—
(I) the school breakfast program established
by section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773);
(II) the school lunch program established
under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.);
(III) the summer food service program for children established under section 13 of that Act; and
(IV) other Federal programs that provide food
for children in child care facilities and homeless
and older individuals; or
(iii) improving access to food as part of a comprehensive service; and
(B) developing new resources and strategies to help
reduce hunger in the community and prevent hunger in
the future by—
(i) developing creative food resources, such as
community gardens, buying clubs, food cooperatives,
community-owned and operated grocery stores, and
farmers’ markets;
(ii) coordinating food services with park and recreation programs and other community-based outlets to
reduce barriers to access; or

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(iii) creating nutrition education programs for atrisk populations to enhance food-purchasing and foodpreparation skills and to heighten awareness of the
connection between diet and health.
(c) HUNGER-FREE COMMUNITIES INFRASTRUCTURE GRANTS.—
(1) PROGRAM AUTHORIZED.—
(A) IN GENERAL.—The Secretary shall use not more
than 50 percent of any funds made available for a fiscal
year under subsection (e) to make grants to eligible entities
to pay the Federal share of the costs of an activity described
in paragraph (2).
(B) FEDERAL SHARE.—The Federal share of the cost
of carrying out an activity under this subsection shall not
exceed 80 percent.
(2) APPLICATION.—
(A) IN GENERAL.—To receive a grant under this subsection, an eligible entity shall submit an application at
such time, in such form, and containing such information
as the Secretary may prescribe.
(B) CONTENTS.—Each application submitted under
subparagraph (A) shall—
(i) identify any activity described in paragraph
(3) that the grant will be used to fund; and
(ii) describe the means by which an activity identified under clause (i) will reduce hunger in the community of the eligible entity.
(C) PRIORITY.—In making grants under this subsection,
the Secretary shall give priority to eligible entities that
demonstrate 2 or more of the following:
(i) The eligible entity serves a community in which
the rates of food insecurity, hunger, poverty, or
unemployment are demonstrably higher than national
average rates.
(ii) The eligible entity serves a community that
has successfully carried out long-term efforts to reduce
hunger in the community.
(iii) The eligible entity serves a community that
provides public support for the efforts of the eligible
entity.
(iv) The eligible entity is committed to achieving
more than 1 hunger-free communities goal.
(3) USE OF FUNDS.—An eligible entity shall use a grant
received under this subsection to construct, expand, or repair
a facility or equipment to support hunger relief efforts in the
community.
(d) REPORT.—If funds are made available under subsection
(e) to carry out this section, not later than September 30, 2012,
the Secretary shall submit to Congress a report that describes—
(1) each grant made under this section, including—
(A) a description of any activity funded; and
(B) the degree of success of each activity funded in
achieving hunger free-communities goals; and
(2) the degree of success of all activities funded under
this section in achieving domestic hunger goals.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2008 through 2012.

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SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PROGRAMS.

(a) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—
(1) AUTHORIZATION OF APPROPRIATIONS.—Section 18(a)(1)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1))
is amended in the first sentence by striking ‘‘for each of the
fiscal years 2003 through 2007’’ and inserting ‘‘for each of
fiscal years 2008 through 2012’’.
(2) GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY
DETERMINATION SYSTEMS AND IMPROVED ACCESS TO BENEFITS.—
Section 11(t)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2020(t)(1)) is amended by striking ‘‘For each of fiscal years
2003 through 2007’’ and inserting ‘‘Subject to the availability
of appropriations under section 18(a), for each fiscal year’’.
(3) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.—
Section 16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(h)(1)) is amended—
(A) in subparagraph (A), by striking ‘‘the amount of—
’’ and all that follows through the end of the subparagraph
and inserting ‘‘, $90,000,000 for each fiscal year.’’; and
(B) in subparagraph (E)(i), by striking ‘‘for each of
fiscal years 2002 through 2007’’ and inserting ‘‘for each
fiscal year’’.
(4) REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.—
Section 16(k)(3) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(k)(3)) is amended—
(A) in the first sentence of subparagraph (A), by
striking ‘‘effective for each of fiscal years 1999 through
2007,’’; and
(B) in subparagraph (B)(ii), by striking ‘‘through fiscal
year 2007’’.
(5) CASH PAYMENT PILOT PROJECTS.—Section 17(b)(1)(B)(vi)
of the Food and Nutrition Act of 2008 (7 U.S.C.
2026(b)(1)(B)(vi)) is amended—
(A) by striking ‘‘Any pilot’’ and inserting ‘‘Subject to
the availability of appropriations under section 18(a), any
pilot’’; and
(B) by striking ‘‘through October 1, 2007,’’.
(6) CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND
AMERICAN SAMOA.—Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by
striking ‘‘for each of fiscal years 2004 through 2007’’ and
inserting ‘‘subject to the availability of appropriations under
section 18(a), for each fiscal year thereafter’’.
(7) ASSISTANCE FOR COMMUNITY FOOD PROJECTS.—Section
25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034)
is amended—
(A) in subsection (b)(2)(B), by striking ‘‘for each of
fiscal years 1997 through 2007’’ and inserting ‘‘for fiscal
year 2008 and each fiscal year thereafter’’; and
(B) in subsection (i)(4) (as redesignated by section
4402), by striking ‘‘of fiscal years 2003 through 2007’’ and
inserting ‘‘fiscal year thereafter’’.
(b) COMMODITY DISTRIBUTION.—
(1) EMERGENCY FOOD ASSISTANCE.—Section 204(a)(1) of the
Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1))
is amended in the first sentence by striking ‘‘for each of the

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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 subparagraph designation and heading and all that follows
through ‘‘2007’’ and inserting the following:
‘‘(B) SUBSEQUENT FISCAL YEARS.—For each of fiscal
years 2004 through 2012’’; and
(B) in subsection (d)(2), by striking ‘‘each of the fiscal
years 1991 through 2007’’ and inserting ‘‘each of fiscal
years 2008 through 2012’’.
(4) DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL
NUTRITION PROJECTS.—Section 1114(a)(2)(A) of the Agriculture
and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in
the first sentence by striking ‘‘Effective through September
30, 2007’’ and inserting ‘‘For each of fiscal years 2008 through
2012’’.
(c) FARM SECURITY AND RURAL INVESTMENT.—
(1) SENIORS FARMERS’ MARKET NUTRITION PROGRAM.—Section 4402 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3007) is amended by striking by striking
subsection (a) and inserting the following:
‘‘(a) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall use to carry out and expand
the seniors farmers’ market nutrition program $20,600,000 for each
of fiscal years 2008 through 2012.’’.
(2) NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.—Section 4403(f) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3171 note; Public Law 107–171)
is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES.

2 USC 1161 note.

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

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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:

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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 consideration all farming experience of the applicant, without regard
to any lapse between farming experiences’’ after ‘‘farming operations’’.
SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

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

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

‘‘(a) IN GENERAL.—The Secretary may make or guarantee qualified conservation loans to eligible borrowers under this section.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) QUALIFIED CONSERVATION LOAN.—The term ‘qualified
conservation loan’ means a loan, the proceeds of which are
used to cover the costs to the borrower of carrying out a
qualified conservation project.
‘‘(2) QUALIFIED CONSERVATION PROJECT.—The term ‘qualified conservation project’ means conservation measures that
address provisions of a conservation plan of the eligible borrower.
‘‘(3) CONSERVATION PLAN.—The term ‘conservation plan’
means a plan, approved by the Secretary, that, for a farming
or ranching operation, identifies the conservation activities that
will be addressed with loan funds provided under this section,
including—
‘‘(A) the installation of conservation structures to
address soil, water, and related resources;
‘‘(B) the establishment of forest cover for sustained
yield timber management, erosion control, or shelter belt
purposes;
‘‘(C) the installation of water conservation measures;
‘‘(D) the installation of waste management systems;
‘‘(E) the establishment or improvement of permanent
pasture;
‘‘(F) compliance with section 1212 of the Food Security
Act of 1985; and
‘‘(G) other purposes consistent with the plan, including
the adoption of any other emerging or existing conservation
practices, techniques, or technologies approved by the Secretary.
‘‘(c) ELIGIBILITY.—
‘‘(1) IN GENERAL.—The Secretary may make or guarantee
loans to farmers or ranchers in the United States, farm cooperatives, private domestic corporations, partnerships, joint operations, trusts, or limited liability companies that are controlled
by farmers or ranchers and engaged primarily and directly
in agricultural production in the United States.
‘‘(2) REQUIREMENTS.—To be eligible for a loan under this
section, applicants shall meet the requirements in paragraphs
(1) and (2) of section 302(a).
‘‘(d) PRIORITY.—In making or guaranteeing loans under this
section, the Secretary shall give priority to—
‘‘(1) qualified beginning farmers or ranchers and socially
disadvantaged farmers or ranchers;

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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 portion of a loan that the Secretary may guarantee under this section
shall be 75 percent of the principal amount of the loan.
‘‘(f) ADMINISTRATIVE PROVISIONS.—The Secretary shall ensure,
to the maximum extent practicable, that loans made or guaranteed
under this section are distributed across diverse geographic regions.
‘‘(g) CREDIT ELIGIBILITY.—The provisions of paragraphs (1) and
(3) of section 333 shall not apply to loans made or guaranteed
under this section.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For each of fiscal
years 2008 through 2012, there are authorized to be appropriated
to the Secretary such funds as are necessary to carry out this
section.’’.
SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

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

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SEC. 5004. DOWN PAYMENT LOAN PROGRAM.

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

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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 DISADVANTAGED FARMER OR RANCHER CONTRACT LAND
SALES PROGRAM.

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

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

‘‘(a) IN GENERAL.—The Secretary shall, in accordance with this
section, guarantee a loan made by a private seller of a farm or
ranch to a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher (as defined in section 355(e)(2)) on
a contract land sales basis.
‘‘(b) ELIGIBILITY.—In order to be eligible for a loan guarantee
under subsection (a)—
‘‘(1) the qualified beginning farmer or rancher or socially
disadvantaged farmer or rancher shall—
‘‘(A) on the date the contract land sale that is subject
of the loan is complete, own and operate the farm or
ranch that is the subject of the contract land sale;
‘‘(B) have a credit history that—
‘‘(i) includes a record of satisfactory debt repayment, as determined by the Secretary; and
‘‘(ii) is acceptable to the Secretary; and
‘‘(C) demonstrate to the Secretary that the farmer or
rancher, as the case may be, is unable to obtain sufficient
credit without a guarantee to finance any actual need
of the farmer or rancher, as the case may be, at a reasonable rate or term; and
‘‘(2) the loan shall meet applicable underwriting criteria,
as determined by the Secretary.
‘‘(c) LIMITATIONS.—
‘‘(1) DOWN PAYMENT.—The Secretary shall not provide a
loan guarantee under subsection (a) if the contribution of the
qualified beginning farmer or rancher or socially disadvantaged
farmer or rancher to the down payment for the farm or ranch
that is the subject of the contract land sale would be less
than 5 percent of the purchase price of the farm or ranch.

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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 Contract Land Sales Program provided for in this section.
‘‘(2) LIMITATION.—All changes to the Beginning Farmer
and Rancher and Socially Disadvantaged Farmer or Rancher
Contract Land Sales Program must be implemented for the
2011 Fiscal Year.’’.

Subtitle B—Operating Loans
SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.

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

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‘‘SEC. 311. PERSONS ELIGIBLE FOR LOANS.

‘‘(a) IN GENERAL.—The Secretary may’’;
(2) in subsection (a)(2), by inserting ‘‘, taking into consideration all farming experience of the applicant, without regard
to any lapse between farming experiences’’ after ‘‘farming operations’’.

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SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

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

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

Subtitle C—Emergency Loans
SEC. 5201. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR
EMERGENCY LOANS.

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

Subtitle D—Administrative Provisions
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS PILOT PROGRAM.

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

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7 USC 1983b.

‘‘SEC.

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

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) DEMONSTRATION PROGRAM.—The term ‘demonstration
program’ means a demonstration program carried out by a
qualified entity under the pilot program established in subsection (b)(1).
‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligible participant’
means a qualified beginning farmer or rancher that—
‘‘(A) lacks significant financial resources or assets; and
‘‘(B) has an income that is less than—
‘‘(i) 80 percent of the median income of the State
in which the farmer or rancher resides; or
‘‘(ii) 200 percent of the most recent annual Federal
Poverty Income Guidelines published by the Department of Health and Human Services for the State.
‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.—The term ‘individual development account’ means a savings account described
in subsection (b)(4)(A).
‘‘(4) QUALIFIED ENTITY.—
‘‘(A) IN GENERAL.—The term ‘qualified entity’ means—
‘‘(i) 1 or more organizations—

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

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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 agreement between the eligible participant and the
qualified entity;
‘‘(II) to use the funds described in subclause
(I) only for 1 or more eligible expenditures
described in paragraph (5)(A); and
‘‘(III) to complete financial training; and
‘‘(ii) the qualified entity agrees—
‘‘(I) to deposit, not later than 1 month after
an amount is deposited pursuant to clause (i)(I),
at least a 100-percent, and up to a 200-percent,
match of that amount into the individual development account established for the eligible participant; and
‘‘(II) with uses of funds proposed by the eligible
participant.
‘‘(C) LIMITATION.—
‘‘(i) IN GENERAL.—A qualified entity administering
a demonstration program under this section may provide not more than $6,000 for each fiscal year in
matching funds to the individual development account
established by the qualified entity for an eligible
participant.
‘‘(ii) TREATMENT OF AMOUNT.—An amount provided
under clause (i) shall not be considered to be a gift
or loan for mortgage purposes.
‘‘(5) ELIGIBLE EXPENDITURES.—
‘‘(A) IN GENERAL.—An eligible expenditure described
in this subparagraph is an expenditure—
‘‘(i) to purchase farmland or make a down payment
on an accepted purchase offer for farmland;
‘‘(ii) to make mortgage payments on farmland purchased pursuant to clause (i), for up to 180 days after
the date of the purchase;
‘‘(iii) to purchase breeding stock, fruit or nut trees,
or trees to harvest for timber; and
‘‘(iv) for other similar expenditures, as determined
by the Secretary.
‘‘(B) TIMING.—
‘‘(i) IN GENERAL.—An eligible participant may
make an eligible expenditure at any time during the

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

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‘‘(1) IN GENERAL.—The Secretary shall make a grant to
a qualified entity authorized to carry out a demonstration program under this section.
‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The aggregate amount
of grant funds provided to a demonstration program carried
out under this section shall not exceed $250,000.
‘‘(3) TIMING OF GRANT PAYMENTS.—The Secretary shall pay
the amounts awarded under a grant made under this section—
‘‘(A) on the awarding of the grant; or
‘‘(B) pursuant to such payment plan as the qualified
entity may specify.
‘‘(e) REPORTS.—
‘‘(1) ANNUAL PROGRESS REPORTS.—
‘‘(A) IN GENERAL.—Not later than 60 days after the
end of the calendar year in which the Secretary authorizes
a qualified entity to carry out a demonstration program
under this section, and annually thereafter until the conclusion of the demonstration program, the qualified entity
shall prepare an annual report that includes, for the period
covered by the report—
‘‘(i) an evaluation of the progress of the demonstration program;
‘‘(ii) information about the demonstration program,
including the eligible participants and the individual
development accounts that have been established; and
‘‘(iii) such other information as the Secretary may
require.
‘‘(B) SUBMISSION OF REPORTS.—A qualified entity shall
submit each report required under subparagraph (A) to
the Secretary.
‘‘(2) REPORTS BY THE SECRETARY.—Not later than 1 year
after the date on which all demonstration programs under
this section are concluded, the Secretary shall submit to Congress a final report that describes the results and findings
of all reports and evaluations carried out under this section.
‘‘(f) ANNUAL REVIEW.—The Secretary may conduct an annual
review of the financial records of a qualified entity—
‘‘(1) to assess the financial soundness of the qualified entity;
and
‘‘(2) to determine the use of grant funds made available
to the qualified entity under this section.
‘‘(g) REGULATIONS.—In carrying out this section, the Secretary
may promulgate regulations to ensure that the program includes
provisions for—
‘‘(1) the termination of demonstration programs;
‘‘(2) control of the reserve funds in the case of such a
termination;
‘‘(3) transfer of demonstration programs to other qualified
entities; and
‘‘(4) remissions from a reserve fund to the Secretary in
a case in which a demonstration program is terminated without
transfer to a new qualified entity.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $5,000,000 for each
of fiscal years 2008 through 2012.’’.

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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 disadvantaged farmer or rancher’’ after ‘‘or rancher’’;
(iii) in clause (ii), by inserting ‘‘or socially disadvantaged farmer or rancher’’ after ‘‘or rancher’’;
(iv) in clause (iii), by inserting ‘‘or a socially disadvantaged farmer or rancher’’ after ‘‘or rancher’’; and
(v) in clause (iv), by striking ‘‘and ranchers’’ and
inserting ‘‘or ranchers and socially disadvantaged
farmers or ranchers’’; and
(B) in subparagraph (C), by inserting ‘‘or a socially
disadvantaged farmer or rancher’’ after ‘‘or rancher’’;
(2) in paragraph (5)(B)—
(A) in clause (i)—
(i) in the clause heading, by inserting ‘‘; SOCIALLY
DISADVANTAGED FARMER OR RANCHER’’ after ‘‘OR
RANCHER’’;
(ii) by inserting ‘‘or a socially disadvantaged farmer
or rancher’’ after ‘‘a beginning farmer or rancher’’; and
(iii) by inserting ‘‘or the socially disadvantaged
farmer or rancher’’ after ‘‘the beginning farmer or
rancher’’; and
(B) in clause (ii)—
(i) in the matter preceding subclause (I), by
inserting ‘‘or a socially disadvantaged farmer or
rancher’’ after ‘‘or rancher’’; and
(ii) in subclause (II), by inserting ‘‘or the socially
disadvantaged farmer or rancher’’ after ‘‘or rancher’’;
and
(3) in paragraph (6)—
(A) in subparagraph (A), by inserting ‘‘or a socially
disadvantaged farmer or rancher’’ after ‘‘or rancher’’; and
(B) in subparagraph (C)—
(i) in clause (i)(I), by striking ‘‘and ranchers’’ and
inserting ‘‘or ranchers and socially disadvantaged
farmers or ranchers’’; and
(ii) in clause (ii), by inserting ‘‘or socially disadvantaged farmers or ranchers’’ after ‘‘or ranchers’’.
(b) LOAN FUND SET-ASIDES.—Section 346(b)(2) of such Act (7
U.S.C. 1994(b)(2)) is amended—
(1) in subparagraph (A)—
(A) in clause (i)—
(i) in subclause (I), by striking ‘‘70 percent’’ and
inserting ‘‘an amount that is not less than 75 percent
of the total amount’’; and
(ii) in subclause (II)—
(I) in the subclause heading, by inserting ‘‘;
JOINT FINANCING ARRANGEMENTS’’ after ‘‘PAYMENT
LOANS’’;

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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 arrangements under section 307(a)(3)(D)’’ after ‘‘section
310E’’; and
(B) in clause (ii)(III), by striking ‘‘2003 through 2007,
35 percent’’ and inserting ‘‘2008 through 2012, an amount
that is not less than 50 percent of the total amount’’;
and
(2) in subparagraph (B)(i), by striking ‘‘25 percent’’ and
inserting ‘‘an amount that is not less than 40 percent of the
total amount’’.

SEC. 5303. LOAN AUTHORIZATION LEVELS.

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

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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:

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7 USC 1993.

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

Plan.
Regulations.
Criteria.

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

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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 borrowerowner or a member of the immediate family of the borrowerowner’’; and
(2) in the 2nd sentence, by inserting ‘‘or immediate family
member, as the case may be,’’ before ‘‘from’’.
SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981–2008r) is amended by inserting after section
364 the following:
‘‘SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

7 USC 2008.

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

Subtitle E—Farm Credit
SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION.

(a) IN GENERAL.—Section 1.12(b) of the Farm Credit Act of
1971 (12 U.S.C. 2020(b)) is amended—
(1) in the first sentence, by striking ‘‘Each Farm’’ and
inserting the following;
‘‘(1) IN GENERAL.—Each Farm’’; and
(2) by striking the second sentence and inserting the following:
‘‘(2) COMPUTATION.—The assessment on any association or
other financing institution described in paragraph (1) for any
period shall be computed in an equitable manner, as determined
by the Corporation.’’.
(b) RULES AND REGULATIONS.—Section 5.58(10) of such Act
(12 U.S.C. 2277a-7(10)) is amended by inserting ‘‘and section
1.12(b)’’ after ‘‘part’’.
SEC. 5402. TECHNICAL CORRECTION.

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

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SEC. 5403. BANK FOR COOPERATIVES VOTING STOCK.

(a) IN GENERAL.—Section 3.3(c) of the Farm Credit Act of
1971 (12 U.S.C. 2124(c)) is amended by striking ‘‘and (ii)’’ and
inserting ‘‘(ii) other categories of persons and entities described
in sections 3.7 and 3.8 eligible to borrow from the bank, as determined by the bank’s board of directors; and (iii)’’.

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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);’’.

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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. 2277a4(a)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph (A)—
(i) by striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’; and
(ii) by striking ‘‘annual’’ ; and
(B) by striking subparagraphs (A) through (D) and
inserting the following:
‘‘(A) the average outstanding insured obligations issued
by the bank for the calendar year, after deducting from
the obligations the percentages of the guaranteed portions
of loans and investments described in paragraph (2), multiplied by 0.0020; and
‘‘(B) the product obtained by multiplying—
‘‘(i) the sum of—
‘‘(I) the average principal outstanding for the
calendar year on loans made by the bank that
are in nonaccrual status; and
‘‘(II) the average amount outstanding for the
calendar year of other-than-temporarily impaired
investments made by the bank; by
‘‘(ii) 0.0010.’’;
(2) by striking paragraph (4);
(3) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(4) by inserting after paragraph (1) the following:
‘‘(2) DEDUCTIONS FROM AVERAGE OUTSTANDING INSURED
OBLIGATIONS.—The average outstanding insured obligations
issued by the bank for the calendar year referred to in paragraph (1)(A) shall be reduced by deducting from the obligations
the sum of (as determined by the Corporation)—
‘‘(A) 90 percent of each of—
‘‘(i) the average principal outstanding for the calendar year on the guaranteed portions of Federal
government-guaranteed loans made by the bank that
are in accrual status; and
‘‘(ii) the average amount outstanding for the calendar year of the guaranteed portions of Federal
government-guaranteed investments made by the bank
that are not permanently impaired; and
‘‘(B) 80 percent of each of—
‘‘(i) the average principal outstanding for the calendar year on the guaranteed portions of State government-guaranteed loans made by the bank that are
in accrual status; and

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‘‘(ii) the average amount outstanding for the calendar year of the guaranteed portions of State government-guaranteed investments made by the bank that
are not permanently impaired.’’;
(5) in paragraph (3) (as so redesignated by paragraph (3)
of this subsection), by striking ‘‘annual’’; and
(6) in paragraph (4) (as so redesignated by paragraph (3)
of this subsection)—
(A) in the paragraph heading, by inserting ‘‘OR INVESTMENTS’’ after ‘‘LOANS’’ ; and
(B) in the matter preceding subparagraph (A), by
striking ‘‘As used’’ and all that follows through ‘‘guaranteed—’’ and inserting ‘‘In this section, the term ‘government-guaranteed’, when applied to a loan or an investment,
means a loan, credit, or investment, or portion of a loan,
credit, or investment, that is guaranteed—’’.
(b) AMOUNT IN FUND EXCEEDING SECURE BASE AMOUNT.—Section 5.55(b) of such Act (12 U.S.C. 2277a-4(b)) is amended by
striking ‘‘annual’’.
(c) SECURE BASE AMOUNT.—Section 5.55(c) of such Act (12
U.S.C. 2277a-4(c)) is amended—
(1) by striking ‘‘For purposes’’ and inserting the following:
‘‘(1) IN GENERAL.—For purposes’’;
(2) by striking ‘‘(adjusted downward’’ and all that follows
through ‘‘by the Corporation)’’ and inserting ‘‘(as adjusted under
paragraph (2))’’; and
(3) by adding at the end the following:
‘‘(2) ADJUSTMENT.—The aggregate outstanding insured
obligations of all insured System banks under paragraph (1)
shall be adjusted downward to exclude an amount equal to
the sum of (as determined by the corporation)—
‘‘(A) 90 percent of each of—
‘‘(i) the guaranteed portions of principal outstanding on Federal government-guaranteed loans in
accrual status made by the banks; and
‘‘(ii) the guaranteed portions of the amount of Federal government-guaranteed investments made by the
banks that are not permanently impaired; and
‘‘(B) 80 percent of each of—
‘‘(i) the guaranteed portions of principal outstanding on State government-guaranteed loans in
accrual status made by the banks; and
‘‘(ii) the guaranteed portions of the amount of State
government-guaranteed investments made by the
banks that are not permanently impaired.’’.
(d) DETERMINATION OF LOAN AND INVESTMENT AMOUNTS.—Section 5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended—
(1) in the subsection heading, by striking ‘‘PRINCIPAL OUTSTANDING’’ and inserting ‘‘LOAN AND INVESTMENT AMOUNTS’’;
(2) in the matter preceding paragraph (1), by striking ‘‘For
the purpose’’ and all that follows through ‘‘made—’’ and
inserting ‘‘For the purpose of subsections (a) and (c), the principal outstanding on all loans made by an insured System
bank, and the amount outstanding on all investments made
by an insured System bank, shall be determined based on—
’’;

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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 calendar year on insured obligations issued by the bank
(after deducting from the principal the percentages
of the guaranteed portions of loans and investments
described in subsection (a)(2)); bears to
‘‘(ii) the average principal outstanding for the calendar year on insured obligations issued by all insured
System banks (after deducting from the principal the
percentages of the guaranteed portions of loans and
investments described in subsection (a)(2)).’’; and
(3) in paragraph (6)—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i), by striking
‘‘beginning more’’ and all that follows through ‘‘January
1, 2005’’;
(ii) by striking clause (i) and inserting the following:
‘‘(i) subject to subparagraph (D), pay to each
insured System bank, in a manner determined by the
Corporation, an amount equal to the balance in the
Allocated Insurance Reserves Account of the System
bank; and’’; and
(iii) in clause (ii)—
(I) by striking ‘‘subparagraphs (C), (E), and
(F)’’ and inserting ‘‘subparagraphs (C) and (E)’’;
and
(II) by striking ‘‘, of the lesser of—’’ and all
that follows through the end of subclause (II) and
inserting ‘‘at the time of the termination of the
Financial Assistance Corporation, of the balance
in the Allocated Insurance Reserves Account established under paragraph (1)(B).’’;
(B) in subparagraph (C)—
(i) in clause (i), by striking ‘‘(in addition to the
amounts described in subparagraph (F)(ii))’’; and
(ii) by striking clause (ii) and inserting the following:

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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 paragraph (1)(B); and
‘‘(II) transfer any remaining funds in the
Account to the remaining Allocated Insurance
Reserves Accounts in accordance with paragraph
(4)(B) for the calendar year in which the transfer
occurs.’’; and
(C) by striking subparagraph (F).

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SEC. 5405. CERTIFICATION OF PREMIUMS.

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

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(1) by striking subsection (d); and
(2) by redesignating subsection (e) as subsection (d).

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SEC. 5406. RURAL UTILITY LOANS.

(a) DEFINITION OF QUALIFIED LOAN.—Section 8.0(9) of the Farm
Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended—
(1) in subparagraph (A)(iii), by striking ‘‘or’’ at the end;
(2) in subparagraph (B)(ii), by striking the period at the
end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(C) that is a loan, or an interest in a loan, for an
electric or telephone facility by a cooperative lender to
a borrower that has received, or is eligible to receive,
a loan under the Rural Electrification Act of 1936 (7 U.S.C.
901 et seq.).’’.
(b) GUARANTEE OF QUALIFIED LOANS.—Section 8.6(a)(1) of such
Act (12 U.S.C. 2279aa–6(a)(1)) is amended by inserting ‘‘applicable’’
before ‘‘standards’’ each place it appears in subparagraphs (A) and
(B)(i).
(c) STANDARDS FOR QUALIFIED LOANS.—Section 8.8 of such Act
(12 U.S.C. 2279aa–8) is amended—
(1) in subsection (a)—
(A) by striking the first sentence and inserting the
following:
‘‘(1) IN GENERAL.—The Corporation shall establish underwriting, security appraisal, and repayment standards for qualified loans taking into account the nature, risk profile, and
other differences between different categories of qualified loans.
‘‘(2) SUPERVISION, EXAMINATION, AND REPORT OF CONDITION.—The standards shall be subject to the authorities of
the Farm Credit Administration under section 8.11.’’; and
(B) in the last sentence, by striking ‘‘In establishing’’
and inserting the following:
‘‘(3) MORTGAGE LOANS.—In establishing’’;
(2) in subsection (b)—
(A) in the matter preceding paragraph (1), by inserting
‘‘with respect to loans secured by agricultural real estate’’
after ‘‘subsection (a)’’; and
(B) in paragraph (5)—
(i) by striking ‘‘borrower’’ the first place it appears
and inserting ‘‘farmer or rancher’’; and
(ii) by striking ‘‘site’’ and inserting ‘‘farm or ranch’’;
(3) in subsection (c)(1), by inserting ‘‘secured by agricultural
real estate’’ after ‘‘A loan’’;
(4) by striking subsection (d); and
(5) by redesignating subsection (e) as subsection (d).
(d) RISK-BASED CAPITAL LEVELS.—Section 8.32(a)(1) of such
Act (12 U.S.C. 2279bb–1(a)(1)) is amended—
(1) by striking ‘‘With respect’’ and inserting the following:
‘‘(A) IN GENERAL.—With respect’’; and
(2) by adding at the end the following:
‘‘(B) RURAL UTILITY LOANS.—With respect to securities
representing an interest in, or obligation backed by, a
pool of qualified loans described in section 8.0(9)(C) owned
or guaranteed by the Corporation, losses occur at a rate
of default and severity reasonably related to risks in electric

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and telephone facility loans (as applicable), as determined
by the Director.’’.
SEC. 5407. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT ASSOCIATIONS.

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

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

12 USC 2279c.

‘‘(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 longterm loans and otherwise operate, directly or through a
subsidiary association, as a Federal land bank association
or Federal land credit association under title I in the
geographic area.
‘‘(C) FARM CREDIT BANK.—Notwithstanding section
5.17(a), the Farm Credit Bank with which any association
had a written financing agreement as of January 1, 2007,
may make loans and extend other comparable financial
assistance with respect to, and may purchase, any loans
made under the new authority provided under subparagraph (A) or (B) by an association exercising such authority.
‘‘(2) REQUIRED APPROVALS.—An association may exercise
the additional authority provided for in paragraph (1) only
after the exercise of the authority is approved by—
‘‘(A) the board of directors of the association; and
‘‘(B) a majority of the voting stockholders of the association (or, if the association is a subsidiary of another association, the voting stockholders of the parent association)
voting, in person or by proxy, at a duly authorized meeting
of stockholders in accordance with the process described
in section 7.11.
‘‘(b) APPLICABILITY.—This section applies only to associations
the chartered territory of which was within the geographic area
served by the Federal intermediate credit bank immediately prior
to its merger with a Farm Credit Bank under section 410(e)(1)
of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public
Law 100–233).’’.
(b) CHARTER AMENDMENTS.—Section 5.17(a) of the Farm Credit
Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the end
the following:
‘‘(15)(A) Approve amendments to the charters of institutions
of the Farm Credit System to implement the equalization of

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PUBLIC LAW 110–246—JUNE 18, 2008

loan-making powers of a Farm Credit System association under
section 7.7.
‘‘(B) Amendments described in subparagraph (A) to the
charters of an association and the related Farm Credit Bank
shall be approved by the Farm Credit Administration, subject
to any conditions of approval imposed, by not later than 30
days after the date on which the Farm Credit Administration
receives all approvals required by section 7.7(a)(2).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12
U.S.C. 2252(a)(2)) is amended—
(A) by striking ‘‘(2)(A)’’ and inserting ‘‘(2)’’; and
(B) by striking subparagraphs (B) and (C).
(2) SECTION 410 OF THE 1987 ACT.—Section 410(e)(1)(A)(iii)
of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note;
Public Law 100–233) is amended by inserting ‘‘(except section
7.7 of that Act)’’ after ‘‘(12 U.S.C. 2001 et seq.)’’.
(3) SECTION 401 OF THE 1992 ACT.—Section 401(b) of the
Farm Credit Banks and Associations Safety and Soundness
Act of 1992 (12 U.S.C. 2011 note; Public Law 102–552) is
amended—
(A) by inserting ‘‘(except section 7.7 of the Farm Credit
Act of 1971)’’ after ‘‘provision of law’’; and
(B) by striking ‘‘, subject to such limitations’’ and all
that follows through the end of the paragraph and inserting
a period.
(d) EFFECTIVE DATE.—The amendments made by this section
take effect on January 1, 2010.

Subtitle F—Miscellaneous
SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

The first section of Public Law 91–229 (25 U.S.C. 488) is
amended—
(1) by striking ‘‘That the Secretary’’ and inserting the following:
‘‘SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

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‘‘(a) IN GENERAL.—The Secretary’’; and
(2) by adding at the end the following:
‘‘(b) HIGHLY FRACTIONATED LAND.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary
of Agriculture may make and insure loans in accordance with
section 309 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1929) to eligible purchasers of highly fractionated
land pursuant to section 205(c) of the Indian Land Consolidation Act (25 U.S.C. 2204(c)).
‘‘(2) EXCLUSION.—Section 4 shall not apply to trust land,
restricted tribal land, or tribal corporation land that is mortgaged in accordance with paragraph (1).’’.

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TITLE VI—RURAL DEVELOPMENT
Subtitle A—Consolidated Farm and Rural
Development Act
SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY
GRANTS.

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

(a) IN GENERAL.—Section 306(a)(2) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1926(a)(2)) is amended by
adding at the end the following:
‘‘(C) SPECIAL EVALUATION ASSISTANCE FOR RURAL
COMMUNITIES AND HOUSEHOLDS PROGRAM.—
‘‘(i) IN GENERAL.—The Secretary may establish the
Special Evaluation Assistance for Rural Communities
and Households (SEARCH) program, to make
predevelopment planning grants for feasibility studies,
design assistance, and technical assistance, to financially distressed communities in rural areas with populations of 2,500 or fewer inhabitants for water and
waste disposal projects described in paragraph (1), this
paragraph, and paragraph (24).
‘‘(ii) TERMS.—
‘‘(I) DOCUMENTATION.—With respect to grants
made under this subparagraph, the Secretary shall
require the lowest amount of documentation practicable.
‘‘(II) MATCHING.—Notwithstanding any other
provisions in this subsection, the Secretary may
fund up to 100 percent of the eligible costs of
grants provided under this subparagraph, as determined by the Secretary.
‘‘(iii) FUNDING.—The Secretary may use not more
than 4 percent of the total amount of funds made
available for a fiscal year for water, waste disposal,
and essential community facility activities under this
title to carry out this subparagraph.
‘‘(iv) RELATIONSHIP TO OTHER AUTHORITY.—The
funds and authorities provided under this subparagraph are in addition to any other funds or authorities
the Secretary may have to carry out activities described
in clause (i).’’.
(b) CONFORMING AMENDMENT.—Subtitle D of title VI of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 2009ee
et seq.) is repealed.

7 USC 2009ee–
2009ee–3.

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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’’.

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

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

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

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

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

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

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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 SYSTEMS IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR
MODERATE INCOMES.

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

Section 307(a)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)) is amended by adding at the end
the following:
‘‘(E) INTEREST RATES FOR WATER AND WASTE DISPOSAL
FACILITIES LOANS.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii) and notwithstanding subparagraph (A), in the case
of a direct loan for a water or waste disposal facility—
‘‘(I) in the case of a loan that would be subject
to the 5 percent interest rate limitation under
subparagraph (A), the Secretary shall establish
the interest rate at a rate that is equal to 60
percent of the current market yield for outstanding
municipal obligations with remaining periods to
maturity comparable to the average maturity of
the loan, adjusted to the nearest 1⁄8 of 1 percent;
and
‘‘(II) in the case of a loan that would be subject
to the 7 percent limitation under subparagraph
(A), the Secretary shall establish the interest rate
at a rate that is equal to 80 percent of the current
market yield for outstanding municipal obligations
with remaining periods to maturity comparable
to the average maturity of the loan, adjusted to
the nearest 1⁄8 of 1 percent.
‘‘(ii) EXCEPTION.—Clause (i) does not apply to a
loan for a specific project that is the subject of a
loan that has been approved, but not closed, as of
the date of enactment of this subparagraph.’’.

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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 subsection, the’’ (as moved by subparagraph (A)), by striking
‘‘As used in this subsection, the’’ and inserting the following:
‘‘(A) AQUACULTURE.—The’’;
(C) in the sentence beginning ‘‘For the purposes of
this subsection, the’’, by striking ‘‘For the purposes of this
subsection, the’’ and inserting the following:
‘‘(B) SOLAR ENERGY.—The’’;
(D) in the sentence beginning ‘‘The Secretary may
also’’—
(i) by striking ‘‘The Secretary may also’’ and
inserting the following:
‘‘(2) LOAN PURPOSES.—The Secretary may’’;
(ii) by inserting ‘‘and private investment funds that
invest primarily in cooperative organizations’’ after ‘‘or
nonprofit’’;
(iii) by striking ‘‘of (1) improving’’ and inserting
‘‘of—
‘‘(A) improving’’;
(iv) by striking ‘‘control, (2) the’’ and inserting
‘‘control;
‘‘(B) the’’;
(v) by striking ‘‘areas, (3) reducing’’ and inserting
‘‘areas;
‘‘(C) reducing’’;
(vi) by striking ‘‘areas, and (4) to’’ and inserting
‘‘areas; and
‘‘(D) to’’;
(E) in the sentence beginning ‘‘Such loans,’’, by striking
‘‘Such loans,’’ and inserting the following:
‘‘(3) LOAN GUARANTEES.—Loans described in paragraph
(2),’’; and
(F) in the last sentence, by striking ‘‘No loan’’ and
inserting the following:
‘‘(4) MAXIMUM AMOUNT OF PRINCIPAL.—No loan’’; and
(3) in subsection (g)—
(A) in paragraph (1), by inserting ‘‘, including guarantees described in paragraph (3)(A)(ii)’’ before the period
at the end;
(B) in paragraph (3)(A)—
(i) by striking ‘‘(A) IN GENERAL.—The Secretary’’
and inserting the following:
‘‘(A) ELIGIBILITY.—
‘‘(i) IN GENERAL.—The Secretary’’; and
(ii) by adding at the end the following:
‘‘(ii) EQUITY.—The Secretary may guarantee a loan
made for the purchase of preferred stock or similar
equity issued by a cooperative organization or a fund
that invests primarily in cooperative organizations, if
the guarantee significantly benefits 1 or more entities

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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 Secretary.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 307(a)(6)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by
striking clause (ii) and inserting the following:
‘‘(ii) section 310B(a)(2)(A); and’’.
(2) Section 310B(g) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(g)) is amended by striking
‘‘subsection (a)(1)’’ each place it appears in paragraphs (1),
(6)(A)(iii), and (8)(C) and inserting ‘‘subsection (a)(2)(A)’’.
(3) Section 333A(g)(1)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended
by striking ‘‘section 310B(a)(1)’’ and inserting ‘‘section
310B(a)(2)(A)’’.
(4) Section 381E(d)(3)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended
by striking ‘‘section 310B(a)(1)’’ and inserting ‘‘section
310B(a)(2)(A)’’.

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SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS.

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

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Contracts.

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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 determined by the Secretary.’’.
(c) AUTHORITY TO EXTEND GRANT PERIOD.—Section 310B(e)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) is amended—
(1) by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (12), respectively; and
(2) by inserting after paragraph (6) the following:
‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.—The Secretary
may extend for 1 additional 12-month period the period in
which a grantee may use a grant made under this subsection.’’.
(d) COOPERATIVE RESEARCH PROGRAM.—Section 310B(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e))
is amended by inserting after paragraph (9) (as redesignated by
subsection (c)(1)) the following:
‘‘(10) COOPERATIVE RESEARCH PROGRAM.—The Secretary
shall enter into a cooperative research agreement with 1 or
more qualified academic institutions in each fiscal year to conduct research on the effects of all types of cooperatives on
the national economy.’’.
(e) ADDRESSING NEEDS OF MINORITY COMMUNITIES.—Section
310B(e) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932(e)) is amended by inserting after paragraph (10) (as
added by subsection (d)) the following:
‘‘(11) ADDRESSING NEEDS OF MINORITY COMMUNITIES.—
‘‘(A) DEFINITION OF SOCIALLY DISADVANTAGED GROUP.—
In this paragraph, the term ‘socially disadvantaged group’
has the meaning given the term in section 355(e).
‘‘(B) RESERVATION OF FUNDS.—
‘‘(i) IN GENERAL.—If the total amount appropriated
under paragraph (12) for a fiscal year exceeds
$7,500,000, the Secretary shall reserve an amount
equal to 20 percent of the total amount appropriated
for grants for cooperative development centers, individual cooperatives, or groups of cooperatives—
‘‘(I) that serve socially disadvantaged groups;
and
‘‘(II) a majority of the boards of directors or
governing boards of which are comprised of individuals who are members of socially disadvantaged
groups.
‘‘(ii) INSUFFICIENT APPLICATIONS.—To the extent
there are insufficient applications to carry out clause

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(i), the Secretary shall use the funds as otherwise
authorized by this subsection.’’.
(f) AUTHORIZATION OF APPROPRIATIONS.—Paragraph (12) of section 310B(e) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(e)) (as redesignated by subsection (c)(1)) is
amended by striking ‘‘1996 through 2007’’ and inserting ‘‘2008
through 2012’’.
SEC. 6014. GRANTS TO BROADCASTING SYSTEMS.

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

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

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

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locally or regionally produced agricultural food products.
‘‘(iii) PRIORITY.—In making or guaranteeing a loan
under clause (i), the Secretary shall give priority to
projects that have components benefitting underserved
communities.
‘‘(iv) REPORTS.—Not later than 2 years after the
date of enactment of this paragraph and annually
thereafter, the Secretary shall submit to the Committee
on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that describes projects carried
out using loans or loan guarantees made under clause
(i), including—
‘‘(I) the characteristics of the communities
served; and
‘‘(II) resulting benefits.
‘‘(v) RESERVATION OF FUNDS.—
‘‘(I) IN GENERAL.—For each of fiscal years 2008
through 2012, the Secretary shall reserve not less
than 5 percent of the funds made available to
carry out this subsection to carry out this subparagraph.
‘‘(II) AVAILABILITY OF FUNDS.—Funds reserved
under subclause (I) for a fiscal year shall be
reserved until April 1 of the fiscal year.’’.

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SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.

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

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‘‘(D) expand markets for agricultural commodities produced by the producers by using practices that enhance
the environment, natural resource base, and quality of
life.
‘‘(3) IMPLEMENTATION.—
‘‘(A) IN GENERAL.—The Secretary shall carry out the
program under this subsection by making a grant to, or
offering to enter into a cooperative agreement with, a
national nonprofit agricultural assistance institution.
‘‘(B) GRANT AMOUNT.—A grant made, or cooperative
agreement entered into, under subparagraph (A) shall provide 100 percent of the cost of providing information
described in paragraph (2).
‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this subsection
$5,000,000 for each of fiscal years 2008 through 2012.’’.
SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

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

Effective date.
Termination
date.

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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—

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‘‘(I) an urbanized area described in subparagraphs (A)(ii) and (F) that—
‘‘(aa) has 2 points on its boundary that
are at least 40 miles apart; and
‘‘(bb) is not contiguous or adjacent to a
city or town that has a population of greater
than 150,000 inhabitants or an urbanized area
of such city or town; and
‘‘(II) an area within an urbanized area
described in subparagraphs (A)(ii) and (F) that
is within 1⁄4-mile of a rural area described in
subparagraph (A).
‘‘(ii) DETERMINATION.—Notwithstanding any other
provision of this paragraph, on the petition of a unit
of local government in an area described in clause
(i) or on the initiative of the Under Secretary for Rural
Development, the Under Secretary may determine that
a part of an area described in clause (i) is a rural
area for the purposes of this paragraph, if the Under
Secretary finds that the part is rural in character,
as determined by the Under Secretary.
‘‘(iii) ADMINISTRATION.—In carrying out this
subparagraph, the Under Secretary for Rural Development shall—
‘‘(I) not delegate the authority to carry out
this subparagraph;
‘‘(II) consult with the applicable rural development State or regional director of the Department
of Agriculture and the governor of the respective
State;
‘‘(III) provide to the petitioner an opportunity
to appeal to the Under Secretary a determination
made under this subparagraph;
‘‘(IV) release to the public notice of a petition
filed or initiative of the Under Secretary under
this subparagraph not later than 30 days after
receipt of the petition or the commencement of
the initiative, as appropriate;
‘‘(V) make a determination under this subparagraph not less than 15 days, and not more than
60 days, after the release of the notice under subclause (IV);
‘‘(VI) submit to the Committee on Agriculture
of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate an annual report on actions taken to carry
out this subparagraph; and
‘‘(VII) terminate a determination under this
subparagraph that part of an area is a rural area
on the date that data is available for the next
decennial census conducted under section 141(a)
of title 13, United States Code.
‘‘(E) EXCLUSIONS.—Notwithstanding any other provision of this paragraph, in determining which census blocks
in an urbanized area are not in a rural area (as defined
in this paragraph), the Secretary shall exclude any cluster
of census blocks that would otherwise be considered not

Public
information.
Notice.
Deadline.
Time period.

Reports.

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Termination
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in a rural area only because the cluster is adjacent to
not more than 2 census blocks that are otherwise considered not in a rural area under this paragraph.
‘‘(F) URBAN AREA GROWTH.—
‘‘(i) APPLICATION.—This subparagraph applies to—
‘‘(I) any area that—
‘‘(aa) is a collection of census blocks that
are contiguous to each other;
‘‘(bb) has a housing density that the Secretary estimates is greater than 200 housing
units per square mile; and
‘‘(cc) is contiguous or adjacent to an
existing boundary of a rural area; and
‘‘(II) any urbanized area contiguous and adjacent to a city or town described in subparagraph
(A)(i).
‘‘(ii) ADJUSTMENTS.—The Secretary may, by regulation only, consider—
‘‘(I) an area described in clause (i)(I) not to
be a rural area for purposes of subparagraphs
(A) and (C); and
‘‘(II) an area described in clause (i)(II) not
to be a rural area for purposes of subparagraph
(C).
‘‘(iii) APPEALS.—A program applicant may appeal
an estimate made under clause (i)(I) based on appropriate data for an area, as determined by the Secretary.
‘‘(G) HAWAII AND PUERTO RICO.—Notwithstanding any
other provision of this paragraph, within the areas of the
County of Honolulu, Hawaii, and the Commonwealth of
Puerto Rico, the Secretary may designate any part of the
areas as a rural area if the Secretary determines that
the part is not urban in character, other than any area
included in the Honolulu Census Designated Place or the
San Juan Census Designated Place.’’.
(b) REPORT.—Not later than 2 years after the date of enactment
of this Act, the Secretary shall prepare and submit to the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
that—
(1) assesses the various definitions of the term ‘‘rural’’
and ‘‘rural area’’ that are used with respect to programs
administered by the Secretary;
(2) describes the effects that the variations in those definitions have on those programs;
(3) make recommendations for ways to better target funds
provided through rural development programs; and
(4) determines the effect of the amendment made by subsection (a) on the level of rural development funding and participation in those programs in each State.

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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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PUBLIC LAW 110–246—JUNE 18, 2008
(2) in subsection (h), by striking ‘‘the date that is 5 years
after the date of enactment of this section’’ and inserting ‘‘September 30, 2012’’.

SEC. 6020. HISTORIC BARN PRESERVATION.

(a) GRANT PRIORITY.—Section 379A(c) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2008o(c)) is amended—
(1) in paragraph (2)—
(A) in subparagraphs (A) and (B), by striking ‘‘a historic
barn’’ each place it appears and inserting ‘‘historic barns’’;
and
(B) in subparagraph (C), by striking ‘‘on a historic
barn’’ and inserting ‘‘on historic barns (including surveys)’’;
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
‘‘(3) PRIORITY.—In making grants under this subsection,
the Secretary shall give the highest priority to funding projects
described in paragraph (2)(C).’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 379A(c)(5) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2008o(c)(5)) (as redesignated by subsection (a)(2)) is amended by
striking ‘‘2002 through 2007’’ and inserting ‘‘2008 through 2012’’.
SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

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

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

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7 USC 2008s.

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

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
‘‘(2) MICROENTREPRENEUR.—The term ‘microentrepreneur’
means an owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under
this section, as determined by the Secretary.
‘‘(3) MICROENTERPRISE DEVELOPMENT ORGANIZATION.—The
term ‘microenterprise development organization’ means an
organization that—
‘‘(A) is—
‘‘(i) a nonprofit entity;
‘‘(ii) an Indian tribe, the tribal government of which
certifies to the Secretary that—
‘‘(I) no microenterprise development organization serves the Indian tribe; and
‘‘(II) no rural microentrepreneur assistance
program exists under the jurisdiction of the Indian
tribe; or
‘‘(iii) a public institution of higher education;

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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 microentrepreneur assistance program established under subsection
(b).
‘‘(6) RURAL MICROENTERPRISE.—The term ‘rural microenterprise’ means—
‘‘(A) a sole proprietorship located in a rural area; or
‘‘(B) a business entity with not more than 10 fulltime-equivalent employees located in a rural area.
‘‘(b) RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish a rural
microentrepreneur assistance program to provide loans and
grants to support microentrepreneurs in the development and
ongoing success of rural microenterprises.
‘‘(2) PURPOSE.—The purpose of the program is to provide
microentrepreneurs with—
‘‘(A) the skills necessary to establish new rural microenterprises; and
‘‘(B) continuing technical and financial assistance
related to the successful operation of rural microenterprises.
‘‘(3) LOANS.—
‘‘(A) IN GENERAL.—The Secretary shall make loans to
microenterprise development organizations for the purpose
of providing fixed interest rate microloans to microentrepreneurs for startup and growing rural microenterprises.
‘‘(B) LOAN TERMS.—A loan made by the Secretary to
a microenterprise development organization under this
paragraph shall—
‘‘(i) be for a term not to exceed 20 years; and
‘‘(ii) bear an annual interest rate of at least 1
percent.
‘‘(C) LOAN LOSS RESERVE FUND.—The Secretary shall
require each microenterprise development organization
that receives a loan under this paragraph to—
‘‘(i) establish a loan loss reserve fund; and
‘‘(ii) maintain the reserve fund in an amount equal
to at least 5 percent of the outstanding balance of
such loans owed by the microenterprise development
organization, until all obligations owed to the Secretary
under this paragraph are repaid.
‘‘(D) DEFERRAL OF INTEREST AND PRINCIPAL.—The Secretary may permit the deferral of payments on principal
and interest due on a loan to a microenterprise development organization made under this paragraph for a 2year 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, business planning, and market development assistance, and other related services to rural microentrepreneurs; and
‘‘(II) carry out such other projects and activities as the Secretary determines appropriate to
further the purposes of the program.
‘‘(ii) SELECTION.—In making grants under clause
(i), the Secretary shall—
‘‘(I) place an emphasis on microenterprise
development organizations that serve microentrepreneurs that are located in rural areas that have
suffered significant outward migration, as determined by the Secretary; and
‘‘(II) ensure, to the maximum extent practicable, that grant recipients include microenterprise development organizations—
‘‘(aa) of varying sizes; and
‘‘(bb) that serve racially and ethnically
diverse populations.
‘‘(B) GRANTS TO ASSIST MICROENTREPRENEURS.—
‘‘(i) IN GENERAL.—The Secretary shall make grants
to microenterprise development organizations to provide marketing, management, and other technical
assistance to microentrepreneurs that—
‘‘(I) received a loan from the microenterprise
development organization under paragraph (3); or
‘‘(II) are seeking a loan from the microenterprise development organization under paragraph
(3).
‘‘(ii) MAXIMUM AMOUNT OF GRANT.—A microenterprise development organization shall be eligible to
receive an annual grant under this subparagraph in
an amount equal to not more than 25 percent of the
total outstanding balance of microloans made by the
microenterprise development organization under paragraph (3), as of the date the grant is awarded.
‘‘(C) ADMINISTRATIVE EXPENSES.—Not more than 10
percent of a grant received by a microenterprise development organization for a fiscal year under this paragraph
may be used to pay administrative expenses.
‘‘(c) ADMINISTRATION.—
‘‘(1) COST SHARE.—
‘‘(A) FEDERAL SHARE.—Subject to subparagraph (B),
the Federal share of the cost of a project funded under
this section shall not exceed 75 percent.
‘‘(B) MATCHING REQUIREMENT.—As a condition of any
grant made under this subparagraph, the Secretary shall
require the microenterprise development organization to
match not less than 15 percent of the total amount of
the grant in the form of matching funds, indirect costs,
or in-kind goods or services.

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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 organization that receives a loan or grant under this section shall
provide to the Secretary such information as the Secretary
may require to ensure that assistance provided under this
section is used for the purposes for which the loan or grant
was made.
‘‘(d) FUNDING.—
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section, to remain available until expended—
‘‘(A) $4,000,000 for each of fiscal years 2009 through
2011; and
‘‘(B) $3,000,000 for fiscal year 2012.
‘‘(2) DISCRETIONARY FUNDING.—In addition to amounts
made available under paragraph (1), there are authorized to
be appropriated to carry out this section $40,000,000 for each
of fiscal years 2009 through 2012.’’.

Deadline.

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:

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

7 USC 2000t.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) INDIVIDUAL WITH A DISABILITY.—The term ‘individual
with a disability’ means an individual with a disability (as
defined in section 3 of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12102)).
‘‘(2) INDIVIDUALS WITH DISABILITIES.—The term ‘individuals
with disabilities’ means more than 1 individual with a disability.
‘‘(b) GRANTS.—The Secretary shall make grants to nonprofit
organizations, or to a consortium of nonprofit organizations, to
expand and enhance employment opportunities for individuals with
disabilities in rural areas.
‘‘(c) ELIGIBILITY.—To be eligible to receive a grant under this
section, a nonprofit organization or consortium of nonprofit
organizations shall have—
‘‘(1) a significant focus on serving the needs of individuals
with disabilities;
‘‘(2) demonstrated knowledge and expertise in—
‘‘(A) employment of individuals with disabilities; and
‘‘(B) advising private entities on accessibility issues
involving individuals with disabilities;

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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 disabilities in rural areas by developing national technical assistance
and education resources to assist small businesses in a rural
area to recruit, hire, accommodate, and employ individuals
with disabilities; and
‘‘(2) self-employment and entrepreneurship opportunities
for individuals with disabilities in a rural area.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $2,000,000 for each
of fiscal years 2008 through 2012.’’.
SEC. 6024. HEALTH CARE SERVICES.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 6023) is amended
by adding at the end the following:
7 USC 2008u.

‘‘SEC. 379G. HEALTH CARE SERVICES.

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

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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’’.

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(b) TERMINATION OF AUTHORITY.—Section 382N of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa–13) is
amended by striking ‘‘2007’’ and inserting ‘‘2012’’.
(c) EXPANSION.—Section 4(2) of the Delta Development Act
(42 U.S.C. 3121 note; Public Law 100–460) is amended—
(1) in subparagraph (D), by inserting ‘‘Beauregard,
Bienville, Cameron, Claiborne, DeSoto, Jefferson Davis, Red
River, St. Mary, Vermillion, Webster,’’ after ‘‘St. James,’’; and
(2) in subparagraph (E)—
(A) by inserting ‘‘Jasper,’’ after ‘‘Copiah,’’; and
(B) by inserting ‘‘Smith,’’ after ‘‘Simpson,’’.

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SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

(a) DEFINITION OF REGION.—Section 383A(4) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009bb(4)) is amended
by inserting ‘‘Missouri (other than counties included in the Delta
Regional Authority),’’ after ‘‘Minnesota,’’.
(b) ESTABLISHMENT.—Section 383B of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009bb–1) is amended—
(1) in subsection (a), by adding at the end the following:
‘‘(4) FAILURE TO CONFIRM.—
‘‘(A) FEDERAL MEMBER.—Notwithstanding any other
provision of this section, if a Federal member described
in paragraph (2)(A) has not been confirmed by the Senate
by not later than 180 days after the date of enactment
of this paragraph, the Authority may organize and operate
without the Federal member.
‘‘(B) INDIAN CHAIRPERSON.—In the case of the Indian
Chairperson, if no Indian Chairperson is confirmed by the
Senate, the regional authority shall consult and coordinate
with the leaders of Indian tribes in the region concerning
the activities of the Authority, as appropriate.’’;
(2) in subsection (d)—
(A) in paragraph (1), by striking ‘‘to establish priorities
and’’ and inserting ‘‘for multistate cooperation to advance
the economic and social well-being of the region and to’’;
(B) in paragraph (3), by striking ‘‘local development
districts,’’ and inserting ‘‘regional and local development
districts or organizations, regional boards established under
subtitle I,’’;
(C) in paragraph (4), by striking ‘‘cooperation;’’ and
inserting ‘‘cooperation for—
‘‘(i) renewable energy development and transmission;
‘‘(ii) transportation planning and economic development;
‘‘(iii) information technology;
‘‘(iv) movement of freight and individuals within
the region;
‘‘(v) federally-funded research at institutions of
higher education; and
‘‘(vi) conservation land management;’’;
(D) by striking paragraph (6) and inserting the following:
‘‘(6) enhance the capacity of, and provide support for,
multistate development and research organizations, local

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development organizations and districts, and resource conservation districts in the region;’’; and
(E) in paragraph (7), by inserting ‘‘renewable energy,’’
after ‘‘commercial,’’.
(3) in subsection (f)(2), by striking ‘‘the Federal cochairperson’’ and inserting ‘‘a cochairperson’’;
(4) in subsection (g)(1), by striking subparagraphs (A)
through (C) and inserting the following:
‘‘(A) for each of fiscal years 2008 and 2009, 100 percent;
‘‘(B) for fiscal year 2010, 75 percent; and
‘‘(C) for fiscal year 2011 and each fiscal year thereafter,
50 percent.’’.
(c) INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND
EFFICIENCY.—
(1) IN GENERAL.—Subtitle G of the Consolidated Farm and
Rural Development Act is amended—
(A) by redesignating sections 383C through 383N (7
U.S.C. 2009bb–2 through 2009bb–13) as sections 383D
through 383O, respectively; and
(B) by inserting after section 383B (7 U.S.C. 2009bb–
1) the following:
7 USC
2009bb–1a.

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

Plans.

‘‘(a) IN GENERAL.—The Authority shall provide assistance to
States in developing regional plans to address multistate economic
issues, including plans—
‘‘(1) to develop a regional transmission system for movement of renewable energy to markets outside the region;
‘‘(2) to address regional transportation concerns, including
the establishment of a Northern Great Plains Regional
Transportation Working Group;
‘‘(3) to encourage and support interstate collaboration on
federally-funded research that is in the national interest; and
‘‘(4) to establish a Regional Working Group on Agriculture
Development and Transportation.
‘‘(b) ECONOMIC ISSUES.—The multistate economic issues
referred to in subsection (a) shall include—
‘‘(1) renewable energy development and transmission;
‘‘(2) transportation planning and economic development;
‘‘(3) information technology;
‘‘(4) movement of freight and individuals within the region;
‘‘(5) federally-funded research at institutions of higher education; and
‘‘(6) conservation land management.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 383B(c)(3)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009bb–1(c)(3)(B)) is
amended by striking ‘‘383I’’ and inserting ‘‘383J’’.
(B) Section 383D(a) of the Consolidated Farm and
Rural Development Act (as redesignated by paragraph
(1)(A)) is amended by striking ‘‘383I’’ and inserting ‘‘383J’’.
(C) Section 383E of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended—
(i) in subsection (b)(1), by striking ‘‘383F(b)’’ and
inserting ‘‘383G(b)’’; and

7 USC 2009bb–2.

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7 USC 2009bb–3.

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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.—Section 383D of the Consolidated Farm and Rural Development Act
(as redesignated by subsection (c)(1)(A)) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘transportation and
telecommunication’’ and inserting ‘‘transportation, renewable energy transmission, and telecommunication’’; and
(B) by redesignating paragraphs (1) and (2) as paragraphs (2) and (1), respectively, and moving those paragraphs so as to appear in numerical order; and
(2) in subsection (b)(2), by striking ‘‘the activities in the
following order or priority’’ and inserting ‘‘the following activities’’.
(e) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.—Section
383E(a) of the Consolidated Farm and Rural Development Act
(as redesignated by subsection (c)(1)(A)) is amended by striking
‘‘, including local development districts,’’.
(f) MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND
ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.—Section 383F
of the Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended—
(1) by striking the section heading and inserting
‘‘MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND
ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.’’; and
(2) by striking subsections (a) through (c) and inserting
the following:
‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DEVELOPMENT DISTRICT OR ORGANIZATION.—In this section, the term ‘multistate and
local development district or organization’ means an entity—
‘‘(1) that—
‘‘(A) is a planning district in existence on the date
of enactment of this subtitle that is recognized by the
Economic Development Administration of the Department
of Commerce; or
‘‘(B) is—
‘‘(i) organized and operated in a manner that
ensures broad-based community participation and an

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7 USC 2009bb–8.

7 USC 2009bb–2.

7 USC 2009bb–3.

7 USC 2009bb–4.

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PUBLIC LAW 110–246—JUNE 18, 2008

effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region;
‘‘(ii) a nonprofit incorporated body organized or
chartered under the law of the State in which the
entity is located;
‘‘(iii) a nonprofit agency or instrumentality of a
State or local government;
‘‘(iv) a public organization established before the
date of enactment of this subtitle under State law
for creation of multijurisdictional, area-wide planning
organizations;
‘‘(v) a nonprofit agency or instrumentality of a
State that was established for the purpose of assisting
with multistate cooperation; or
‘‘(vi) a nonprofit association or combination of
bodies, agencies, and instrumentalities described in
clauses (ii) through (v); and
‘‘(2) that has not, as certified by the Authority (in consultation with the Federal cochairperson or Secretary, as appropriate)—
‘‘(A) inappropriately used Federal grant funds from
any Federal source; or
‘‘(B) appointed an officer who, during the period in
which another entity inappropriately used Federal grant
funds from any Federal source, was an officer of the other
entity.
‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS.—
‘‘(1) IN GENERAL.—The Authority may make grants for
administrative expenses under this section to multistate, local,
and regional development districts and organizations.
‘‘(2) CONDITIONS FOR GRANTS.—
‘‘(A) MAXIMUM AMOUNT.—The amount of any grant
awarded under paragraph (1) shall not exceed 80 percent
of the administrative expenses of the multistate, local, or
regional development district or organization receiving the
grant.
‘‘(B) MAXIMUM PERIOD.—No grant described in paragraph (1) shall be awarded for a period greater than 3
years.
‘‘(3) LOCAL SHARE.—The contributions of a multistate, local,
or regional development district or organization for administrative expenses may be in cash or in kind, fairly evaluated,
including space, equipment, and services.
‘‘(c) DUTIES.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
a local development district shall operate as a lead organization
serving multicounty areas in the region at the local level.
‘‘(2) DESIGNATION.—The Federal cochairperson may designate an Indian tribe or multijurisdictional organization to
serve as a lead organization in such cases as the Federal
cochairperson or Secretary, as appropriate, determines appropriate.’’.
(g) DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED
COUNTIES.—Section 383G of the Consolidated Farm and Rural

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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 ‘‘RENEWABLE ENERGY,’’ after‘‘TELECOMMUNICATION’’; and
(B) by inserting ‘‘, renewable energy,’’ after ‘‘telecommunication,’’.
(h) DEVELOPMENT PLANNING PROCESS.—Section 383H of the
Consolidated Farm and Rural Development Act (as redesignated
by subsection (c)(1)(A)) is amended—
(1) in subsection (c)(1), by striking subparagraph (A) and
inserting the following:
‘‘(A) multistate, regional, and local development districts and organizations; and’’; and
(2) in subsection (d)(1), by striking ‘‘State and local development districts’’ and inserting ‘‘multistate, regional, and local
development districts and organizations’’.
(i) PROGRAM DEVELOPMENT CRITERIA.—Section 383I(a)(1) of the
Consolidated Farm and Rural Development Act (as redesignated
by subsection (c)(1)(A)) is amended by inserting ‘‘multistate or’’
before ‘‘regional’’.
(j) AUTHORIZATION OF APPROPRIATIONS.—Section 383N(a) of the
Consolidated Farm and Rural Development Act (as redesignated
by subsection (c)(1)(A)) is amended by striking ‘‘2002 through 2007’’
and inserting ‘‘2008 through 2012’’.
(k) TERMINATION OF AUTHORITY.—Section 383O of the Consolidated Farm and Rural Development Act (as redesignated by subsection (c)(1)(A)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

7 USC 2009bb–5.

7 USC 2009bb–6.

7 USC 2009bb–7.

7 USC
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SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM.

(a) ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.—Section 384F(b)(3)(A) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009cc–5(b)(3)(A)) is amended by striking ‘‘In the
event’’ and inserting the following:
‘‘(i) AUTHORITY TO PREPAY.—A debenture may be
prepaid at any time without penalty.
‘‘(ii) REDUCTION OF GUARANTEE.—Subject to clause
(i), if’’.
(b) FEES.—Section 384G of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009cc–6) is amended—
(1) in subsection (a), by striking ‘‘such fees as the Secretary
considers appropriate’’ and inserting ‘‘a fee that does not exceed
$500’’;
(2) in subsection (b), by striking ‘‘approved by the Secretary’’ and inserting ‘‘that does not exceed $500’’; and
(3) in subsection (c)—
(A) in paragraph (1), by striking ‘‘The’’ and inserting
‘‘Except as provided in paragraph (3), the’’;
(B) in paragraph (2)—
(i) in subparagraph (A), by striking ‘‘and’’ at the
end;
(ii) in subparagraph (B), by striking the period
at the end and inserting ‘‘; and’’; and
(iii) by adding at the end the following:

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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 company shall have a period of 2 years to meet the capital requirements of this subsection.’’.
(d) FINANCIAL INSTITUTION INVESTMENTS.—Section 384J of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc–
9) is amended—
(1) in subsection (a)(1), by inserting ‘‘, including an investment pool created entirely by such bank or savings association’’
before the period at the end; and
(2) in subsection (c), by striking ‘‘15’’ and inserting ‘‘25’’.
(e) CONTRACTING OF FUNCTIONS.—Section 384Q of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc–16) is
repealed.
(f) FUNDING.—The Consolidated Farm and Rural Development
Act is amended by striking section 384S (7 U.S.C. 2009cc–18) and
inserting the following:
‘‘SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

7 USC
2009cc–18.

‘‘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

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7 USC 2009dd–1.

‘‘SEC. 385A. PURPOSE.

‘‘The purpose of this subtitle is to establish a regional rural
collaborative investment program—
‘‘(1) to provide rural regions with a flexible investment
vehicle, allowing for local control with Federal oversight, assistance, and accountability;
‘‘(2) to provide rural regions with incentives and resources
to develop and implement comprehensive strategies for
achieving regional competitiveness, innovation, and prosperity;
‘‘(3) to foster multisector community and economic development collaborations that will optimize the asset-based competitive advantages of rural regions with particular emphasis on
innovation, entrepreneurship, and the creation of quality jobs;
‘‘(4) to foster collaborations necessary to provide the professional technical expertise, institutional capacity, and economies

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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 leverage those resources with private, nonprofit, and philanthropic
investments, in order to achieve measurable community and
economic prosperity, growth, and sustainability.
‘‘SEC. 385B. DEFINITIONS.

‘‘In this subtitle:
‘‘(1) BENCHMARK.—The term ‘benchmark’ means an annual
set of goals and performance measures established for the
purpose of assessing performance in meeting a regional investment strategy of a Regional Board.
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
‘‘(3) NATIONAL BOARD.—The term ‘National Board’ means
the National Rural Investment Board established under section
385C(c).
‘‘(4) NATIONAL INSTITUTE.—The term ‘National Institute’
means the National Institute on Regional Rural Competitiveness and Entrepreneurship established under section
385C(b)(2).
‘‘(5) REGIONAL BOARD.—The term ‘Regional Board’ means
a Regional Rural Investment Board described in section
385D(a).
‘‘(6) REGIONAL INNOVATION GRANT.—The term ‘regional
innovation grant’ means a grant made by the Secretary to
a certified Regional Board under section 385F.
‘‘(7) REGIONAL INVESTMENT STRATEGY GRANT.—The term
‘regional investment strategy grant’ means a grant made by
the Secretary to a certified Regional Board under section 385E.
‘‘(8) RURAL HERITAGE.—
‘‘(A) IN GENERAL.—The term ‘rural heritage’ means
historic sites, structures, and districts.
‘‘(B) INCLUSIONS.—The term ‘rural heritage’ includes
historic rural downtown areas and main streets, neighborhoods, farmsteads, scenic and historic trails, heritage areas,
and historic landscapes.

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‘‘SEC.

385C.

ESTABLISHMENT AND ADMINISTRATION
COLLABORATIVE INVESTMENT PROGRAM.

OF

RURAL

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a Rural
Collaborative Investment Program to support comprehensive
regional investment strategies for achieving rural competitiveness.
‘‘(b) DUTIES OF SECRETARY.—In carrying out this subtitle, the
Secretary shall—
‘‘(1) appoint and provide administrative and program support to the National Board;
‘‘(2) establish a national institute, to be known as the
‘National Institute on Regional Rural Competitiveness and
Entrepreneurship’, to provide technical assistance to the Secretary and the National Board regarding regional competitiveness and rural entrepreneurship, including technical assistance
for—
‘‘(A) the development of rigorous analytic programs
to assist Regional Boards in determining the challenges

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Grants.

Reports.

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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 developed by the Regional Boards;
‘‘(C) the establishment of programs to support the
development of appropriate governance and leadership
skills in the applicable regions; and
‘‘(D) the evaluation of the progress and performance
of the Regional Boards in achieving benchmarks established in a regional investment strategy;
‘‘(3) work with the National Board to develop a national
rural investment plan that shall—
‘‘(A) create a framework to encourage and support a
more collaborative and targeted rural investment portfolio
in the United States;
‘‘(B) establish a Rural Philanthropic Initiative, to work
with rural communities to create and enhance the pool
of permanent philanthropic resources committed to rural
community and economic development;
‘‘(C) cooperate with the Regional Boards and State
and local governments, organizations, and entities to
ensure investment strategies are developed that take into
consideration existing rural assets; and
‘‘(D) encourage the organization of Regional Boards;
‘‘(4) certify the eligibility of Regional Boards to receive
regional investment strategy grants and regional innovation
grants;
‘‘(5) provide grants for Regional Boards to develop and
implement regional investment strategies;
‘‘(6) provide technical assistance to Regional Boards on
issues, best practices, and emerging trends relating to rural
development, in cooperation with the National Rural Investment Board; and
‘‘(7) provide analytic and programmatic support for regional
rural competitiveness through the National Institute,
including—
‘‘(A) programs to assist Regional Boards in determining
the challenges and opportunities that must be addressed
to receive the greatest regional competitive advantage;
‘‘(B) support for best practices development by the
regional investment boards;
‘‘(C) programs to support the development of appropriate governance and leadership skills in the region; and
‘‘(D) a review and evaluation of the performance of
the Regional Boards (including progress in achieving benchmarks established in a regional investment strategy) in
an annual report submitted to—
‘‘(i) the Committee on Agriculture of the House
of Representatives; and
‘‘(ii) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
‘‘(c) NATIONAL RURAL INVESTMENT BOARD.—The Secretary shall
establish within the Department of Agriculture a board to be known
as the ‘National Rural Investment Board’.
‘‘(d) DUTIES OF NATIONAL BOARD.—The National Board shall—

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‘‘(1) not later than 180 days after the date of establishment
of the National Board, develop rules relating to the operation
of the National Board; and
‘‘(2) provide advice to—
‘‘(A) the Secretary and subsequently review the design,
development, and execution of the National Rural Investment Plan;
‘‘(B) Regional Boards on issues, best practices, and
emerging trends relating to rural development; and
‘‘(C) the Secretary and the National Institute on the
development and execution of the program under this subtitle.
‘‘(e) MEMBERSHIP.—
‘‘(1) IN GENERAL.—The National Board shall consist of 14
members appointed by the Secretary not later than 180 days
after the date of enactment of the Food, Conservation, and
Energy Act of 2008.
‘‘(2) SUPERVISION.—The National Board shall be subject
to the general supervision and direction of the Secretary.
‘‘(3) SECTORS REPRESENTED.—The National Board shall consist of representatives from each of—
‘‘(A) nationally recognized entrepreneurship organizations;
‘‘(B) regional strategy and development organizations;
‘‘(C) community-based organizations;
‘‘(D) elected members of local governments;
‘‘(E) members of State legislatures;
‘‘(F) primary, secondary, and higher education, job
skills training, and workforce development institutions;
‘‘(G) the rural philanthropic community;
‘‘(H) financial, lending, venture capital, entrepreneurship, and other related institutions;
‘‘(I) private sector business organizations, including
chambers of commerce and other for-profit business
interests;
‘‘(J) Indian tribes; and
‘‘(K) cooperative organizations.
‘‘(4) SELECTION OF MEMBERS.—
‘‘(A) IN GENERAL.—In selecting members of the
National Board, the Secretary shall consider recommendations made by—
‘‘(i) the chairman and ranking member of each
of the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate;
‘‘(ii) the Majority Leader and Minority Leader of
the Senate; and
‘‘(iii) the Speaker and Minority Leader of the House
of Representatives.
‘‘(B) EX-OFFICIO MEMBERS.—In consultation with the
chairman and ranking member of each of the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate, the Secretary may appoint not more than 3 other
officers or employees of the Executive Branch to serve
as ex-officio, nonvoting members of the National Board.
‘‘(5) TERM OF OFFICE.—

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Regulations.

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‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
term of office of a member of the National Board appointed
under paragraph (1)(A) shall be for a period of not more
than 4 years.
‘‘(B) STAGGERED TERMS.—The members of the National
Board shall be appointed to serve staggered terms.
‘‘(6) INITIAL APPOINTMENTS.—Not later than 1 year after
the date of enactment of the Food, Conservation, and Energy
Act of 2008, the Secretary shall appoint the initial members
of the National Board.
‘‘(7) VACANCIES.—A vacancy on the National Board shall
be filled in the same manner as the original appointment.
‘‘(8) COMPENSATION.—A member of the National Board
shall receive no compensation for service on the National Board,
but shall be reimbursed for related travel and other expenses
incurred in carrying out the duties of the member of the
National Board in accordance with section 5702 and 5703 of
title 5, United States Code.
‘‘(9) CHAIRPERSON.—The National Board shall select a
chairperson from among the members of the National Board.
‘‘(10) FEDERAL STATUS.—For purposes of Federal law, a
member of the National Board shall be considered a special
Government employee (as defined in section 202(a) of title
18, United States Code).
‘‘(f) ADMINISTRATIVE SUPPORT.—The Secretary, on a reimbursable basis from funds made available under section 385H, may
provide such administrative support to the National Board as the
Secretary determines is necessary.

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7 USC 2009dd–3.

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

‘‘(a) IN GENERAL.—A Regional Rural Investment Board shall
be a multijurisdictional and multisectoral group that—
‘‘(1) represents the long-term economic, community, and
cultural interests of a region;
‘‘(2) is certified by the Secretary to establish a rural investment strategy and compete for regional innovation grants;
‘‘(3) is composed of residents of a region that are broadly
representative of diverse public, nonprofit, and private sector
interests in investment in the region, including (to the maximum extent practicable) representatives of—
‘‘(A) units of local, multijurisdictional, or State government, including not more than 1 representative from each
State in the region;
‘‘(B) nonprofit community-based development organizations, including community development financial institutions and community development corporations;
‘‘(C) agricultural, natural resource, and other assetbased related industries;
‘‘(D) in the case of regions with federally recognized
Indian tribes, Indian tribes;
‘‘(E) regional development organizations;
‘‘(F) private business organizations, including chambers
of commerce;
‘‘(G)(i) institutions of higher education (as defined in
section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)));

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

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PUBLIC LAW 110–246—JUNE 18, 2008

the management of Federal funds to serve as fiscal manager of any funds of the Regional Board.
‘‘(b) URBAN AREAS.—A resident of an urban area may serve
as an ex-officio member of a Regional Board.
‘‘(c) DUTIES.—A Regional Board shall—
‘‘(1) create a collaborative planning process for public-private investment within a region;
‘‘(2) develop, and submit to the Secretary for approval,
a regional investment strategy;
‘‘(3) develop approaches that will create permanent
resources for philanthropic giving in the region, to the maximum extent practicable;
‘‘(4) implement an approved strategy; and
‘‘(5) provide annual reports to the Secretary and the
National Board on progress made in achieving the strategy,
including an annual financial statement.

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

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

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‘‘(5) an analysis of the current state of collaborative public,
private, and nonprofit participation and investment, and of
the strategic roles of public, private, and nonprofit entities
in the development and implementation of the regional investment strategy;
‘‘(6) a section identifying and prioritizing vital projects,
programs, and activities for consideration by the Secretary,
including—
‘‘(A) other potential funding sources; and
‘‘(B) recommendations for leveraging past and potential
investments;
‘‘(7) a plan of action to implement the goals and objectives
of the regional investment strategy;
‘‘(8) a list of performance measures to be used to evaluate
implementation of the regional investment strategy, including—
‘‘(A) the number and quality of jobs, including selfemployment, created during implementation of the regional
rural investment strategy;
‘‘(B) the number and types of investments made in
the region;
‘‘(C) the growth in public, private, and nonprofit investment in the human, community, and economic assets of
the region;
‘‘(D) changes in per capita income and the rate of
unemployment; and
‘‘(E) other changes in the economic environment of
the region;
‘‘(9) a section outlining the methodology for use in integrating the regional investment strategy with the economic
priorities of the State; and
‘‘(10) such other information as the Secretary determines
to be appropriate.
‘‘(c) MAXIMUM AMOUNT OF GRANT.—A regional investment
strategy grant shall not exceed $150,000.
‘‘(d) COST SHARING.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), of the share
of the costs of developing, maintaining, evaluating, implementing, and reporting with respect to a regional investment
strategy funded by a grant under this section—
‘‘(A) not more than 40 percent may be paid using
funds from the grant; and
‘‘(B) the remaining share shall be provided by the
applicable Regional Board or other eligible grantee.
‘‘(2) FORM.—A Regional Board or other eligible grantee
shall pay the share described in paragraph (1)(B) in the form
of cash, services, materials, or other in-kind contributions, on
the condition that not more than 50 percent of that share
is provided in the form of services, materials, and other inkind contributions.

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

7 USC 2009dd–5.

‘‘(a) GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall provide, on a
competitive basis, regional innovation grants to Regional
Boards for use in implementing projects and initiatives that
are identified in a regional rural investment strategy approved
under section 385E.

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‘‘(2) TIMING.—After October 1, 2008, the Secretary shall
provide awards under this section on a quarterly funding cycle.
‘‘(b) ELIGIBILITY.—To be eligible to receive a regional innovation
grant, a Regional Board shall demonstrate to the Secretary that—
‘‘(1) the regional rural investment strategy of a Regional
Board has been reviewed by the National Board prior to
approval by the Secretary;
‘‘(2) the management and organizational structure of the
Regional Board is sufficient to oversee grant projects, including
management of Federal funds; and
‘‘(3) the Regional Board has a plan to achieve, to the
maximum extent practicable, the performance-based benchmarks of the project in the regional rural investment strategy.
‘‘(c) LIMITATIONS.—
‘‘(1) AMOUNT RECEIVED.—A Regional Board may not receive
more than $6,000,000 in regional innovation grants under this
section during any 5-year period.
‘‘(2) DETERMINATION OF AMOUNT.—The Secretary shall
determine the amount of a regional innovation grant based
on—
‘‘(A) the needs of the region being addressed by the
applicable regional rural investment strategy consistent
with the purposes described in subsection (f)(2); and
‘‘(B) the size of the geographical area of the region.
‘‘(3) GEOGRAPHIC DIVERSITY.—The Secretary shall ensure
that not more than 10 percent of funding made available under
this section is provided to Regional Boards in any State.
‘‘(d) COST-SHARING.—
‘‘(1) LIMITATION.—Subject to paragraph (2), the amount
of a grant made under this section shall not exceed 50 percent
of the cost of the project.
‘‘(2) WAIVER OF GRANTEE SHARE.—The Secretary may waive
the limitation in paragraph (1) under special circumstances,
as determined by the Secretary, including—
‘‘(A) a sudden or severe economic dislocation;
‘‘(B) significant chronic unemployment or poverty;
‘‘(C) a natural disaster; or
‘‘(D) other severe economic, social, or cultural duress.
‘‘(3) OTHER FEDERAL ASSISTANCE.—For the purpose of determining cost-share limitations for any other Federal program,
funds provided under this section shall be considered to be
non-Federal funds.
‘‘(e) PREFERENCES.—In providing regional innovation grants
under this section, the Secretary shall give—
‘‘(1) a high priority to strategies that demonstrate significant leverage of capital and quality job creation; and
‘‘(2) a preference to an application proposing projects and
initiatives that would—
‘‘(A) advance the overall regional competitiveness of
a region;
‘‘(B) address the priorities of a regional rural investment strategy, including priorities that—
‘‘(i) promote cross-sector collaboration, public-private partnerships, or the provision of interim financing
or seed capital for program implementation;

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‘‘(ii)
exhibit
collaborative
innovation
and
entrepreneurship, particularly within a public-private
partnership; and
‘‘(iii) represent a broad coalition of interests
described in section 385D(a);
‘‘(C) include a strategy to leverage public non-Federal
and private funds and existing assets, including agricultural, natural resource, and public infrastructure assets,
with substantial emphasis placed on the existence of real
financial commitments to leverage available funds;
‘‘(D) create quality jobs;
‘‘(E) enhance the role, relevance, and leveraging potential of community and regional foundations in support of
regional investment strategies;
‘‘(F) demonstrate a history, or involve organizations
with a history, of successful leveraging of capital for economic development and public purposes;
‘‘(G) address gaps in existing basic services, including
technology, within a region;
‘‘(H) address economic diversification, including agricultural and non-agriculturally based economies, within
a regional framework;
‘‘(I) improve the overall quality of life in the region;
‘‘(J) enhance the potential to expand economic development successes across diverse stakeholder groups within
the region;
‘‘(K) include an effective working relationship with 1
or more institutions of higher education, tribally controlled
colleges or universities, or tribal technical institutions;
‘‘(L) help to meet the other regional competitiveness
needs identified by a Regional Board; or
‘‘(M) protect and promote rural heritage.
‘‘(f) USES.—
‘‘(1) LEVERAGE.—A Regional Board shall prioritize projects
and initiatives carried out using funds from a regional innovation grant provided under this section, based in part on the
degree to which members of the Regional Board are able to
leverage additional funds for the implementation of the projects.
‘‘(2) PURPOSES.—A Regional Board may use a regional
innovation grant—
‘‘(A) to support the development of critical infrastructure (including technology deployment and services) necessary to facilitate the competitiveness of a region;
‘‘(B) to provide assistance to entities within the region
that provide essential public and community services;
‘‘(C) to enhance the value-added production, marketing,
and use of agricultural and natural resources within the
region, including activities relating to renewable and alternative energy production and usage;
‘‘(D) to assist with entrepreneurship, job training,
workforce development, housing, educational, or other
quality of life services or needs, relating to the development
and maintenance of strong local and regional economies;
‘‘(E) to assist in the development of unique new
collaborations that link public, private, and philanthropic
resources, including community foundations;

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‘‘(F) to provide support for business and entrepreneurial investment, strategy, expansion, and development,
including feasibility strategies, technical assistance, peer
networks, business development funds, and other activities
to strengthen the economic competitiveness of the region;
‘‘(G) to provide matching funds to enable community
foundations located within the region to build endowments
which provide permanent philanthropic resources to implement a regional investment strategy; and
‘‘(H) to preserve and promote rural heritage.
‘‘(3) AVAILABILITY OF FUNDS.—The funds made available
to a Regional Board or any other eligible grantee through
a regional innovation grant shall remain available for the 7year period beginning on the date on which the award is
provided, on the condition that the Regional Board or other
grantee continues to be certified by the Secretary as making
adequate progress toward achieving established benchmarks.
‘‘(g) COST SHARING.—
‘‘(1) WAIVER OF GRANTEE SHARE.—The Secretary may waive
the share of a grantee of the costs of a project funded by
a regional innovation grant under this section if the Secretary
determines that such a waiver is appropriate, including with
respect to special circumstances within tribal regions, in the
event an area experiences—
‘‘(A) a sudden or severe economic dislocation;
‘‘(B) significant chronic unemployment or poverty;
‘‘(C) a natural disaster; or
‘‘(D) other severe economic, social, or cultural duress.
‘‘(2) OTHER FEDERAL PROGRAMS.—For the purpose of determining cost-sharing requirements for any other Federal program, funds provided as a regional innovation grant under
this section shall be considered to be non-Federal funds.
‘‘(h) NONCOMPLIANCE.—If a Regional Board or other eligible
grantee fails to comply with any requirement relating to the use
of funds provided under this section, the Secretary may—
‘‘(1) take such actions as are necessary to obtain reimbursement of unused grant funds; and
‘‘(2) reprogram the recaptured funds for purposes relating
to implementation of this subtitle.
‘‘(i) PRIORITY TO AREAS WITH AWARDS AND APPROVED STRATEGIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (3), in providing
rural development assistance under other programs, the Secretary shall give a high priority to areas that receive innovation
grants under this section.
‘‘(2) CONSULTATION.—The Secretary shall consult with the
heads of other Federal agencies to promote the development
of priorities similar to those described in paragraph (1).
‘‘(3) EXCLUSION OF CERTAIN PROGRAMS.—Paragraph (1)
shall not apply to the provision of rural development assistance
under any program relating to basic health, safety, or infrastructure, including broadband deployment or minimum
environmental needs.

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

7 USC 2009dd–6.

‘‘(a) IN GENERAL.—The Secretary may provide long-term loans
to eligible community foundations to assist in the implementation
of regional investment strategies.
‘‘(b) ELIGIBLE COMMUNITY FOUNDATIONS.—To be eligible to
receive a loan under this section, a community foundation shall—
‘‘(1) be located in an area that is covered by a regional
investment strategy;
‘‘(2) match the amount of the loan with an amount that
is at least 250 percent of the amount of the loan; and
‘‘(3) use the loan and the matching amount to carry out
the regional investment strategy in a manner that is targeted
to community and economic development, including through
the development of community foundation endowments.
‘‘(c) TERMS.—A loan made under this section shall—
‘‘(1) have a term of not less than 10, nor more than 20,
years;
‘‘(2) bear an interest rate of 1 percent per annum; and
‘‘(3) be subject to such other terms and conditions as are
determined appropriate by the Secretary.
‘‘SEC. 385H. AUTHORIZATION OF APPROPRIATIONS.

7 USC 2009dd–7.

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

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

(a) DEFINITION OF APPLICATION.—In this section, the term
‘‘application’’ does not include an application for a loan or grant
that, as of the date of enactment of this Act, is in the preapplication
phase of consideration under regulations of the Secretary in effect
on the date of enactment of this Act.
(b) USE OF FUNDS.—Subject to subsection (c), the Secretary
shall use funds made available under subsection (d) to provide
funds for applications that are pending on the date of enactment
of this Act for—
(1) water or waste disposal grants or direct loans under
paragraph (1) or (2) of section 306(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1926(a)); and
(2) emergency community water assistance grants under
section 306A of that Act (7 U.S.C. 1926a).
(c) LIMITATIONS.—
(1) APPROPRIATED AMOUNTS.—Funds made available under
this section shall be available to the Secretary to provide funds
for applications for loans and grants described in subsection
(b) that are pending on the date of enactment of this Act
only to the extent that funds for the loans and grants appropriated in the annual appropriations Act for fiscal year 2007
have been exhausted.
(2) PROGRAM REQUIREMENTS.—The Secretary may use
funds made available under this section to provide funds for
a pending application for a loan or grant described in subsection
(b) only if the Secretary processes, reviews, and approves the
application in accordance with regulations in effect on the date
of enactment of this Act.

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(3) PRIORITY.—In providing funding under this section for
pending applications for loans or grants described in subsection
(b), the Secretary shall provide funding in the following order
of priority (until funds made available under this section are
exhausted):
(A) Pending applications for water systems.
(B) Pending applications for waste disposal systems.
(d) FUNDING.—Notwithstanding any other provision of law, of
the funds of the Commodity Credit Corporation, the Secretary shall
use to carry out this section $120,000,000, to remain available
until expended.

Subtitle B—Rural Electrification Act of
1936
SEC. 6101. ENERGY EFFICIENCY PROGRAMS.

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

(a) IN GENERAL.—Section 4 of the Rural Electrification Act
of 1936 (7 U.S.C. 904) is amended—
(1) by designating the first, second, and third sentences
as subsections (a), (b), and (d), respectively; and
(2) by inserting after subsection (b) (as so designated) the
following:
‘‘(c) DIRECT LOANS.—
‘‘(1) DIRECT HARDSHIP LOANS.—Direct hardship loans under
this section shall be for the same purposes and on the same
terms and conditions as hardship loans made under section
305(c)(1).
‘‘(2) OTHER DIRECT LOANS.—All other direct loans under
this section shall bear interest at a rate equal to the then
current cost of money to the Government of the United States
for loans of similar maturity, plus 1⁄8 of 1 percent.’’.
(b) ELIMINATION OF FEDERAL FINANCING BANK GUARANTEED
LOANS.—Section 306 of the Rural Electrification Act of 1936 (7
U.S.C. 936) is amended—
(1) in the third sentence, by striking ‘‘guarantee, accommodation, or subordination’’ and inserting ‘‘accommodation or
subordination’’; and
(2) by striking the fourth sentence.

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

Section 12 of the Rural Electrification Act of 1936 (7 U.S.C.
912) is amended by adding at the end the following:
‘‘(c) DEFERMENT OF PAYMENTS ON LOANS.—
‘‘(1) IN GENERAL.—The Secretary shall allow borrowers to
defer payment of principal and interest on any direct loan
made under this Act to enable the borrower to make loans
to residential, commercial, and industrial consumers—
‘‘(A) to conduct energy efficiency and use audits; and

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

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

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

7 USC 936f.

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

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

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE PROGRAM.—The term ‘eligible program’ means
a program administered by the Rural Utilities Service and
authorized in—
‘‘(A) this Act; or
‘‘(B) paragraph (1), (2), (14), (22), or (24) of section
306(a) or section 306A, 306C, 306D, or 306E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a),
1926a, 1926c, 1926d, 1926e).
‘‘(2) SUBSTANTIALLY UNDERSERVED TRUST AREA.—The term
‘substantially underserved trust area’ means a community in
‘trust land’ (as defined in section 3765 of title 38, United
States Code) with respect to which the Secretary determines
has a high need for the benefits of an eligible program.
‘‘(b) INITIATIVE.—The Secretary, in consultation with local
governments and Federal agencies, may implement an initiative
to identify and improve the availability of eligible programs in
communities in substantially underserved trust areas.

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‘‘(c) AUTHORITY OF SECRETARY.—In carrying out subsection (b),
the Secretary—
‘‘(1) may make available from loan or loan guarantee programs administered by the Rural Utilities Service to qualified
utilities or applicants financing with an interest rate as low
as 2 percent, and with extended repayment terms;
‘‘(2) may waive nonduplication restrictions, matching fund
requirements, or credit support requirements from any loan
or grant program administered by the Rural Utilities Service
to facilitate the construction, acquisition, or improvement of
infrastructure;
‘‘(3) may give the highest funding priority to designated
projects in substantially underserved trust areas; and
‘‘(4) shall only make loans or loan guarantees that are
found to be financially feasible and that provide eligible program benefits to substantially underserved trust areas.
‘‘(d) REPORT.—Not later than 1 year after the date of enactment
of this section and annually thereafter, the Secretary shall submit
to Congress a report that describes—
‘‘(1) the progress of the initiative implemented under subsection (b); and
‘‘(2) recommendations for any regulatory or legislative
changes that would be appropriate to improve services to
substantially underserved trust areas.’’.

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

(a) IN GENERAL.—Section 313A of the Rural Electrification
Act of 1936 (7 U.S.C. 940c–1) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘for electrification’’
and all that follows through the end and inserting ‘‘for
eligible electrification or telephone purposes consistent with
this Act.’’; and
(B) by striking paragraph (4) and inserting the following:
‘‘(4) ANNUAL AMOUNT.—The total amount of guarantees
provided by the Secretary under this section during a fiscal
year shall not exceed $1,000,000,000, subject to the availability
of funds under subsection (e).’’;
(2) in subsection (c), by striking paragraphs (2) and (3)
and inserting the following:
‘‘(2) AMOUNT.—
‘‘(A) IN GENERAL.—The amount of the annual fee paid
for the guarantee of a bond or note under this section
shall be equal to 30 basis points of the amount of the
unpaid principal of the bond or note guaranteed under
this section.
‘‘(B) PROHIBITION.—Except as otherwise provided in
this subsection and subsection (e)(2), no other fees shall
be assessed.
‘‘(3) PAYMENT.—
‘‘(A) IN GENERAL.—A lender shall pay the fees required
under this subsection on a semiannual basis.
‘‘(B) STRUCTURED SCHEDULE.—The Secretary shall,
with the consent of the lender, structure the schedule for
payment of the fee to ensure that sufficient funds are

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available to pay the subsidy costs for note or bond guarantees as provided for in subsection (e)(2).’’; and
(3) in subsection (f), by striking ‘‘2007’’ and inserting ‘‘2012’’.
(b) ADMINISTRATION.—The Secretary shall continue to carry
out section 313A of the Rural Electrification Act of 1936 (7 U.S.C.
940c–1) in the same manner as on the day before the date of
enactment of this Act, except without regard to the limitations
prescribed in subsection (b)(1) of that section, until such time as
any regulations necessary to carry out the amendments made by
this section are fully implemented.

7 USC 940c–1
note.

SEC. 6107. EXPANSION OF 911 ACCESS.

Section 315 of the Rural Electrification Act of 1936 (7 U.S.C.
940e) is amended to read as follows:
‘‘SEC. 315. EXPANSION OF 911 ACCESS.

‘‘(a) IN GENERAL.—Subject to subsection (c) and such terms
and conditions as the Secretary may prescribe, the Secretary may
make loans under this title to entities eligible to borrow from
the Rural Utilities Service, State or local governments, Indian tribes
(as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)), or other public entities
for facilities and equipment to expand or improve in rural areas—
‘‘(1) 911 access;
‘‘(2) integrated interoperable emergency communications,
including multiuse networks that provide commercial or
transportation information services in addition to emergency
communications services;
‘‘(3) homeland security communications;
‘‘(4) transportation safety communications; or
‘‘(5) location technologies used outside an urbanized area.
‘‘(b) LOAN SECURITY.—Government-imposed fees related to
emergency communications (including State or local 911 fees) may
be considered to be security for a loan under this section.
‘‘(c) EMERGENCY COMMUNICATIONS EQUIPMENT PROVIDERS.—
The Secretary may make a loan under this section to an emergency
communication equipment provider to expand or improve 911 access
or other communications or technologies described in subsection
(a) if the local government that has jurisdiction over the project
is not allowed to acquire the debt resulting from the loan.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—The Secretary shall
use to make loans under this section any funds otherwise made
available for telephone loans for each of fiscal years 2008 through
2012.’’.
SEC. 6108. ELECTRIC LOANS FOR RENEWABLE ENERGY.

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

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

7 USC 940g.

‘‘(a) DEFINITION OF RENEWABLE ENERGY SOURCE.—In this section, the term ‘renewable energy source’ means an energy conversion
system fueled from a solar, wind, hydropower, biomass, or geothermal source of energy.
‘‘(b) LOANS.—In addition to any other funds or authorities otherwise made available under this Act, the Secretary may make electric
loans under this title for electric generation from renewable energy
resources for resale to rural and nonrural residents.

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

Title III of the Rural Electrification Act of 1936 is amended
by inserting after section 317 (as added by section 6108) the following:
7 USC 940h.

‘‘SEC. 318. BONDING REQUIREMENTS.

Review.

‘‘The Secretary shall review the bonding requirements for all
programs administered by the Rural Utilities Service under this
Act to ensure that bonds are not required if—
‘‘(1) the interests of the Secretary are adequately protected
by product warranties; or
‘‘(2) the costs or conditions associated with a bond exceed
the benefit of the bond.’’.
SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES
IN RURAL AREAS.

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

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Loans.

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

‘‘(a) PURPOSE.—The purpose of this section is to provide loans
and loan guarantees to provide funds for the costs of the construction, improvement, and acquisition of facilities and equipment for
broadband service in rural areas.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) BROADBAND SERVICE.—The term ‘broadband service’
means any technology identified by the Secretary as having
the capacity to transmit data to enable a subscriber to the
service to originate and receive high-quality voice, data,
graphics, and video.
‘‘(2) INCUMBENT SERVICE PROVIDER.—The term ‘incumbent
service provider’, with respect to an application submitted under
this section, means an entity that, as of the date of submission
of the application, is providing broadband service to not less
than 5 percent of the households in the service territory proposed in the application.
‘‘(3) RURAL AREA.—
‘‘(A) IN GENERAL.—The term ‘rural area’ means any
area other than—
‘‘(i) an area described in clause (i) or (ii) of section
343(a)(13)(A) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)(13)(A)); and
‘‘(ii) a city, town, or incorporated area that has
a population of greater than 20,000 inhabitants.
‘‘(B) URBAN AREA GROWTH.—The Secretary may, by
regulation only, consider an area described in section
343(a)(13)(F)(i)(I) of that Act to not be a rural area for
purposes of this section.
‘‘(c) LOANS AND LOAN GUARANTEES.—
‘‘(1) IN GENERAL.—The Secretary shall make or guarantee
loans to eligible entities described in subsection (d) to provide

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funds for the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in
rural areas.
‘‘(2) PRIORITY.—In making or guaranteeing loans under
paragraph (1), the Secretary shall give the highest priority
to applicants that offer to provide broadband service to the
greatest proportion of households that, prior to the provision
of the broadband service, had no incumbent service provider.
‘‘(d) ELIGIBILITY.—
‘‘(1) ELIGIBLE ENTITIES.—
‘‘(A) IN GENERAL.—To be eligible to obtain a loan or
loan guarantee under this section, an entity shall—
‘‘(i) demonstrate the ability to furnish, improve,
or extend a broadband service to a rural area;
‘‘(ii) submit to the Secretary a loan application
at such time, in such manner, and containing such
information as the Secretary may require; and
‘‘(iii) agree to complete buildout of the broadband
service described in the loan application by not later
than 3 years after the initial date on which proceeds
from the loan made or guaranteed under this section
are made available.
‘‘(B) LIMITATION.—An eligible entity that provides telecommunications or broadband service to at least 20 percent
of the households in the United States may not receive
an amount of funds under this section for a fiscal year
in excess of 15 percent of the funds authorized and appropriated under subsection (k) for the fiscal year.
‘‘(2) ELIGIBLE PROJECTS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), the proceeds of a loan made or guaranteed under this section may be used to carry out a project
in a proposed service territory only if, as of the date on
which the application for the loan or loan guarantee is
submitted—
‘‘(i) not less than 25 percent of the households
in the proposed service territory is offered broadband
service by not more than 1 incumbent service provider;
and
‘‘(ii) broadband service is not provided in any part
of the proposed service territory by 3 or more incumbent service providers.
‘‘(B) EXCEPTION TO 25 PERCENT REQUIREMENT.—
Subparagraph (A)(i) shall not apply to the proposed service
territory of a project if a loan or loan guarantee has been
made under this section to the applicant to provide
broadband service in the proposed service territory.
‘‘(C) EXCEPTION TO 3 OR MORE INCUMBENT SERVICE
PROVIDER REQUIREMENT.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), subparagraph (A)(ii) shall not apply to an incumbent service provider that is upgrading broadband
service to the existing territory of the incumbent
service provider.
‘‘(ii) EXCEPTION.—Clause (i) shall not apply if the
applicant is eligible for funding under another title
of this Act.

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‘‘(3) EQUITY AND MARKET SURVEY REQUIREMENTS.—
‘‘(A) IN GENERAL.—The Secretary may require an entity
to provide a cost share in an amount not to exceed 10
percent of the amount of the loan or loan guarantee
requested in the application of the entity, unless the Secretary determines that a higher percentage is required
for financial feasibility.
‘‘(B) MARKET SURVEY.—
‘‘(i) IN GENERAL.—The Secretary may require an
entity that proposes to have a subscriber projection
of more than 20 percent of the broadband service
market in a rural area to submit to the Secretary
a market survey.
‘‘(ii) LESS THAN 20 PERCENT.—The Secretary may
not require an entity that proposes to have a subscriber
projection of less than 20 percent of the broadband
service market in a rural area to submit to the Secretary a market survey.
‘‘(4) STATE AND LOCAL GOVERNMENTS AND INDIAN TRIBES.—
Subject to paragraph (1), a State or local government (including
any agency, subdivision, or instrumentality thereof (including
consortia thereof)) and an Indian tribe shall be eligible for
a loan or loan guarantee under this section to provide
broadband services to a rural area.
‘‘(5) NOTICE REQUIREMENT.—The Secretary shall publish
a notice of each application for a loan or loan guarantee under
this section describing the application, including—
‘‘(A) the identity of the applicant;
‘‘(B) each area proposed to be served by the applicant;
and
‘‘(C) the estimated number of households without
terrestrial-based broadband service in those areas.
‘‘(6) PAPERWORK REDUCTION.—The Secretary shall take
steps to reduce, to the maximum extent practicable, the cost
and paperwork associated with applying for a loan or loan
guarantee under this section by first-time applicants (particularly first-time applicants who are small and start-up
broadband service providers), including by providing for a new
application that maintains the ability of the Secretary to make
an analysis of the risk associated with the loan involved.
‘‘(7) PREAPPLICATION PROCESS.—The Secretary shall establish a process under which a prospective applicant may seek
a determination of area eligibility prior to preparing a loan
application under this section.
‘‘(e) BROADBAND SERVICE.—
‘‘(1) IN GENERAL.—The Secretary shall, from time to time
as advances in technology warrant, review and recommend
modifications of rate-of-data transmission criteria for purposes
of the identification of broadband service technologies under
subsection (b)(1).
‘‘(2) PROHIBITION.—The Secretary shall not establish
requirements for bandwidth or speed that have the effect of
precluding the use of evolving technologies appropriate for rural
areas.
‘‘(f) TECHNOLOGICAL NEUTRALITY.—For purposes of determining
whether to make a loan or loan guarantee for a project under

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this section, the Secretary shall use criteria that are technologically
neutral.
‘‘(g) TERMS AND CONDITIONS FOR LOANS AND LOAN GUARANTEES.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law, a loan or loan guarantee under this section shall—
‘‘(A) bear interest at an annual rate of, as determined
by the Secretary—
‘‘(i) in the case of a direct loan, a rate equivalent
to—
‘‘(I) the cost of borrowing to the Department
of the Treasury for obligations of comparable maturity; or
‘‘(II) 4 percent; and
‘‘(ii) in the case of a guaranteed loan, the current
applicable market rate for a loan of comparable maturity; and
‘‘(B) have a term of such length, not exceeding 35
years, as the borrower may request, if the Secretary determines that the loan is adequately secured.
‘‘(2) TERM.—In determining the term of a loan or loan
guarantee, the Secretary shall consider whether the recipient
is or would be serving an area that is not receiving broadband
services.
‘‘(3) RECURRING REVENUE.—The Secretary shall consider
the existing recurring revenues of the entity at the time of
application in determining an adequate level of credit support.
‘‘(h) ADEQUACY OF SECURITY.—
‘‘(1) IN GENERAL.—The Secretary shall ensure that the type
and amount of, and method of security used to secure, any
loan or loan guarantee under this section is commensurate
to the risk involved with the loan or loan guarantee, particularly in any case in which the loan or loan guarantee is issued
to a financially strong and stable entity, as determined by
the Secretary.
‘‘(2) DETERMINATION OF AMOUNT AND METHOD OF SECURITY.—In determining the amount of, and method of security
used to secure, a loan or loan guarantee under this section,
the Secretary shall consider reducing the security in a rural
area that does not have broadband service.
‘‘(i) USE OF LOAN PROCEEDS TO REFINANCE LOANS FOR DEPLOYMENT OF BROADBAND SERVICE.—Notwithstanding any other provision of this Act, the proceeds of any loan made or guaranteed
by the Secretary under this Act may be used by the recipient
of the loan for the purpose of refinancing an outstanding obligation
of the recipient on another telecommunications loan made under
this Act if the use of the proceeds for that purpose will support
the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in rural areas.
‘‘(j) REPORTS.—Not later than 1 year after the date of enactment
of the Food, Conservation, and Energy Act of 2008, and annually
thereafter, the Administrator shall submit to Congress a report
that describes the extent of participation in the loan and loan
guarantee program under this section for the preceding fiscal year,
including a description of —
‘‘(1) the number of loans applied for and provided under
this section;

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7 USC 950bb
note.

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7 USC 950bb
note.

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‘‘(2)(A) the communities proposed to be served in each
loan application submitted for the fiscal year; and
‘‘(B) the communities served by projects funded by loans
and loan guarantees provided under this section;
‘‘(3) the period of time required to approve each loan
application under this section;
‘‘(4) any outreach activities carried out by the Secretary
to encourage entities in rural areas without broadband service
to submit applications under this section;
‘‘(5) the method by which the Secretary determines that
a service enables a subscriber to originate and receive highquality voice, data, graphics, and video for purposes of subsection (b)(1); and
‘‘(6) each broadband service, including the type and speed
of broadband service, for which assistance was sought, and
each broadband service for which assistance was provided,
under this section.
‘‘(k) FUNDING.—
‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out this
section $25,000,000 for each of fiscal years 2008 through 2012,
to remain available until expended.
‘‘(2) ALLOCATION OF FUNDS.—
‘‘(A) IN GENERAL.—From amounts made available for
each fiscal year under this subsection, the Secretary shall—
‘‘(i) establish a national reserve for loans and loan
guarantees to eligible entities in States under this
section; and
‘‘(ii) allocate amounts in the reserve to each State
for each fiscal year for loans and loan guarantees to
eligible entities in the State.
‘‘(B) AMOUNT.—The amount of an allocation made to
a State for a fiscal year under subparagraph (A) shall
bear the same ratio to the amount of allocations made
for all States for the fiscal year as—
‘‘(i) the number of communities with a population
of 2,500 inhabitants or less in the State; bears to
‘‘(ii) the number of communities with a population
of 2,500 inhabitants or less in all States.
‘‘(C) UNOBLIGATED AMOUNTS.—Any amounts in the
reserve established for a State for a fiscal year under
subparagraph (B) that are not obligated by April 1 of
the fiscal year shall be available to the Secretary to make
loans and loan guarantees under this section to eligible
entities in any State, as determined by the Secretary.
‘‘(l) TERMINATION OF AUTHORITY.—No loan or loan guarantee
may be made under this section after September 30, 2012.’’.
(b) REGULATIONS.—The Secretary may implement the amendment made by subsection (a) through the promulgation of an interim
regulation.
(c) APPLICATION.—The amendment made by subsection (a) shall
not apply to—
(1) an application submitted under section 601 of the Rural
Electrification Act of 1936 (7 U.S.C. 950bb) (as it existed before
the amendment made by subsection (a)) that—
(A) was pending on the date that is 45 days prior
to the date of enactment of this Act; and

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

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

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

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

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Publication.
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‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Secretary to carry out this section
$1,000,000 for each of fiscal years 2008 through 2012.’’.
SEC. 6112. COMPREHENSIVE RURAL BROADBAND STRATEGY.
Deadline.
Reports.

Deadline.

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

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SEC. 6113. STUDY ON RURAL ELECTRIC POWER GENERATION.

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

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Subtitle C—Miscellaneous
SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.

(a) IN GENERAL.—Section 2333(c)(1) of the Food, Agriculture,
Conservation and Trade Act of 1990 (7 U.S.C. Sec. 950aaa–2(a)(1))
is amended—
(1) in subparagraph (A), by striking ‘‘and’’ at the end;
(2) in subparagraph (B), by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(C) libraries.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 2335A of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
950aaa–5) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.
(c) CONFORMING AMENDMENT.—Section 1(b) of Public Law 102–
551 (7 U.S.C. 950aaa note; Public Law 102–551) is amended by
striking ‘‘2007’’ and inserting ‘‘2012’’.

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

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

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‘‘(iii) is physically segregated in a manner that results
in the enhancement of the value of the agricultural commodity or product;
‘‘(iv) is a source of farm- or ranch-based renewable
energy, including E–85 fuel; or
‘‘(v) is aggregated and marketed as a locally-produced
agricultural food product; and
‘‘(B) as a result of the change in physical state or the
manner in which the agricultural commodity or product was
produced, marketed, or segregated—
‘‘(i) the customer base for the agricultural commodity
or product is expanded; and
‘‘(ii) a greater portion of the revenue derived from
the marketing, processing, or physical segregation of the
agricultural commodity or product is available to the producer of the commodity or product.’’.
(b) GRANT PROGRAM.—Section 231(b) of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224)
is amended—
(1) in paragraph (1), by striking ‘‘paragraph (4)’’ and
inserting ‘‘paragraph (7)’’; and
(2) by striking paragraph (4) and inserting the following:
‘‘(4) TERM.—A grant under this subsection shall have a
term that does not exceed 3 years.
‘‘(5) SIMPLIFIED APPLICATION.—The Secretary shall offer a
simplified application form and process for project proposals
requesting less than $50,000.
‘‘(6) PRIORITY.—In awarding grants under this subsection,
the Secretary shall give priority to projects that contribute
to increasing opportunities for—
‘‘(A) beginning farmers or ranchers;
‘‘(B) socially disadvantaged farmers or ranchers; and
‘‘(C) operators of small- and medium-sized farms and
ranches that are structured as a family farm.
‘‘(7) FUNDING.—
‘‘(A) MANDATORY FUNDING.—On October 1, 2008, of
the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this subsection
$15,000,000, to remain available until expended.
‘‘(B) DISCRETIONARY FUNDING.—There is authorized to
be appropriated to carry out this subsection $40,000,000
for each of fiscal years 2008 through 2012.
‘‘(C) RESERVATION OF FUNDS FOR PROJECTS TO BENEFIT
BEGINNING FARMERS OR RANCHERS, SOCIALLY DISADVANTAGED FARMERS OR RANCHERS, AND MID-TIER VALUE
CHAINS.—
‘‘(i) IN GENERAL.—The Secretary shall reserve 10
percent of the amounts made available for each fiscal
year under this paragraph to fund projects that benefit
beginning farmers or ranchers or socially disadvantaged farmers or ranchers.
‘‘(ii) MID-TIER VALUE CHAINS.—The Secretary shall
reserve 10 percent of the amounts made available for
each fiscal year under this paragraph to fund applications of eligible entities described in paragraph (1)
that propose to develop mid-tier value chains.

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

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

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

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‘‘SEC.

6405.

RURAL FIREFIGHTERS AND EMERGENCY
SERVICE ASSISTANCE PROGRAM.

MEDICAL

‘‘(a) DEFINITION OF EMERGENCY MEDICAL SERVICES.—In this
section:
‘‘(1) IN GENERAL.—The term ‘emergency medical services’
means resources used by a public or nonprofit entity to deliver
medical care outside of a medical facility under emergency
conditions that occur as a result of—
‘‘(A) the condition of a patient; or
‘‘(B) a natural disaster or related condition.
‘‘(2) INCLUSION.—The term ‘emergency medical services’
includes services (whether compensated or volunteer) delivered
by an emergency medical services provider or other provider
recognized by the State involved that is licensed or certified
by the State as—
‘‘(A) an emergency medical technician or the equivalent
(as determined by the State);
‘‘(B) a registered nurse;
‘‘(C) a physician assistant; or
‘‘(D) a physician that provides services similar to services provided by such an emergency medical services provider.
‘‘(b) GRANTS.—The Secretary shall award grants to eligible entities—
‘‘(1) to enable the entities to provide for improved emergency medical services in rural areas; and
‘‘(2) to pay the cost of training firefighters and emergency
medical personnel in firefighting, emergency medical practices,
and responding to hazardous materials and bioagents in rural
areas.
‘‘(c) ELIGIBILITY.—To be eligible to receive a grant under this
section, an entity shall—
‘‘(1) be—
‘‘(A) a State emergency medical services office;
‘‘(B) a State emergency medical services association;
‘‘(C) a State office of rural health or an equivalent
agency;

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‘‘(D) a local government entity;
‘‘(E) an Indian tribe (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b));
‘‘(F) a State or local ambulance provider; or
‘‘(G) any other public or nonprofit entity determined
appropriate by the Secretary; and
‘‘(2) prepare and submit to the Secretary an application
at such time, in such manner, and containing such information
as the Secretary may require, that includes—
‘‘(A) a description of the activities to be carried out
under the grant; and
‘‘(B) an assurance that the applicant will comply with
the matching requirement of subsection (f).
‘‘(d) USE OF FUNDS.—An entity shall use amounts received
under a grant made under subsection (b) only in a rural area—
‘‘(1) to hire or recruit emergency medical service personnel;
‘‘(2) to recruit or retain volunteer emergency medical service
personnel;
‘‘(3) to train emergency medical service personnel in emergency response, injury prevention, safety awareness, or other
topics relevant to the delivery of emergency medical services;
‘‘(4) to fund training to meet State or Federal certification
requirements;
‘‘(5) to provide training for firefighters or emergency medical personnel for improvements to the training facility, equipment, curricula, or personnel;
‘‘(6) to develop new ways to educate emergency health
care providers through the use of technology-enhanced educational methods (such as distance learning);
‘‘(7) to acquire emergency medical services vehicles,
including ambulances;
‘‘(8) to acquire emergency medical services equipment,
including cardiac defibrillators;
‘‘(9) to acquire personal protective equipment for emergency
medical services personnel as required by the Occupational
Safety and Health Administration; or
‘‘(10) to educate the public concerning cardiopulmonary
resuscitation (CPR), first aid, injury prevention, safety awareness, illness prevention, or other related emergency preparedness topics.
‘‘(e) PREFERENCE.—In awarding grants under this section, the
Secretary shall give preference to—
‘‘(1) applications that reflect a collaborative effort by 2
or more of the entities described in subparagraphs (A) through
(G) of subsection (c)(1); and
‘‘(2) applications submitted by entities that intend to use
amounts provided under the grant to fund activities described
in any of paragraphs (1) through (5) of subsection (d).
‘‘(f) MATCHING REQUIREMENT.—The Secretary may not make
a grant under this section to an entity unless the entity makes
available (directly or through contributions from other public or
private entities) non-Federal contributions toward the activities
to be carried out under the grant in an amount equal to at least
5 percent of the amount received under the grant.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—

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122 STAT. 1971

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

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

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

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122 STAT. 1972

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Housing
Assistance
Council
Authorization
Act of 2008.
42 USC 1490e
note.

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Subtitle D—Housing Assistance Council
SEC. 6301. SHORT TITLE.

This subtitle may be cited as the ‘‘Housing Assistance Council
Authorization Act of 2008’’.

42 USC 1490e
note.

SEC. 6302. ASSISTANCE TO HOUSING ASSISTANCE COUNCIL.

42 USC 1490e
note.

SEC. 6303. AUDITS AND REPORTS.

09:11 Jul 10, 2008

(a) USE.—The Secretary of Housing and Urban Development
may provide financial assistance to the Housing Assistance Council
for use by the Council to develop the ability and capacity of community-based housing development organizations to undertake community development and affordable housing projects and programs
in rural areas. Assistance provided by the Secretary under this
section may be used by the Housing Assistance Council for—
(1) technical assistance, training, support, research, and
advice to develop the business and administrative capabilities
of rural community-based housing development organizations;
(2) loans, grants, or other financial assistance to rural
community-based housing development organizations to carry
out community development and affordable housing activities
for low- and moderate-income families; and
(3) such other activities as may be determined by the
Secretary of Housing and Urban Development and the Housing
Assistance Council.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated for financial assistance under this section for
the Housing Assistance Council $10,000,000 for each of fiscal years
2009 through 2011.
(a) AUDIT.—
(1) IN GENERAL.—The financial transactions and activities
of the Housing Assistance Council shall be audited annually
by an independent certified public accountant or an independent licensed public accountant certified or licensed by a
regulatory authority of a State or other political subdivision
of the United States.
(2) REQUIREMENTS OF AUDITS.—The Comptroller General
of the United States may rely on any audit completed under
paragraph (1), if the audit complies with—
(A) the annual programmatic and financial examination requirements established in OMB Circular A-133; and
(B) generally accepted government auditing standards.
(3) REPORT TO CONGRESS.—The Comptroller General shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representative a report detailing each audit
completed under paragraph (1).
(b) GAO REPORT.—The Comptroller General of the United
States shall conduct a study and submit a report to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representative
on the use of any funds appropriated to the Housing Assistance
Council over the past 7 years.

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122 STAT. 1973

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

Aliens who are not lawfully present in the United States shall
be ineligible for financial assistance under this subtitle, as provided
and defined by section 214 of the Housing and Community Development Act of 1980 (42 U.S.C. 1436a). Nothing in this subtitle shall
be construed to alter the restrictions or definitions in such section
214.
SEC. 6305. LIMITATION ON USE OF AUTHORIZED AMOUNTS.

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

42 USC 1490e
note.

42 USC 1490e
note.

TITLE VII—RESEARCH AND RELATED
MATTERS
Subtitle A—National Agricultural Research, Extension, and Teaching Policy
Act of 1977

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SEC. 7101. DEFINITIONS.

(a) IN GENERAL.—Section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103) is amended—
(1) in paragraph (4)—
(A) by redesignating subparagraphs (A) through (E)
as clauses (i) through (v), respectively;
(B) by striking ‘‘(4) The terms’’ and inserting the following:
‘‘(4) COLLEGE AND UNIVERSITY.—
‘‘(A) IN GENERAL.—The terms’’; and
(C) by adding at the end the following:
‘‘(B) INCLUSIONS.—The terms ‘college’ and ‘university’
include a research foundation maintained by a college or
university described in subparagraph (A).’’;
(2) by redesignating paragraphs (5) through (8), (9) through
(11), (12) through (14), (15), (16), (17), and (18) as paragraphs
(6) through (9), (11) through (13), (15) through (17), (20), (5),
(18), and (19), respectively, and moving the paragraphs so
as to appear in alphabetical and numerical order;
(3) in paragraph (9) (as redesignated by paragraph (2))—
(A) by striking ‘‘renewable natural resources’’ and
inserting ‘‘renewable energy and natural resources’’; and
(B) by striking subparagraph (F) and inserting the
following:
‘‘(F) Soil, water, and related resource conservation and
improvement.’’;
(4) by inserting after paragraph (9) (as so redesignated)
the following:
‘‘(10) HISPANIC-SERVING AGRICULTURAL COLLEGES AND
UNIVERSITIES.—
‘‘(A) IN GENERAL.—The term ‘Hispanic-serving agricultural colleges and universities’ means colleges or universities that—

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‘‘(i) qualify as Hispanic-serving institutions; and
‘‘(ii) offer associate, bachelors, or other accredited
degree programs in agriculture-related fields.
‘‘(B) EXCEPTION.—The term ‘Hispanic-serving agricultural colleges and universities’ does not include 1862
institutions (as defined in section 2 of the Agricultural
Research, Extension, and Education Reform Act of 1998
(7 U.S.C. 7601)).’’;
(5) by striking paragraph (11) (as so redesignated) and
inserting the following:
‘‘(11) HISPANIC-SERVING INSTITUTION.—The term ‘Hispanicserving institution’ has the meaning given the term in section
502 of the Higher Education Act of 1965 (20 U.S.C. 1101a).’’;
and
(6) by inserting after paragraph (13) (as so redesignated)
the following:
‘‘(14) NLGCA INSTITUTION; NON-LAND-GRANT COLLEGE OF
AGRICULTURE.—
‘‘(A) IN GENERAL.—The terms ‘NLGCA Institution’ and
‘non-land-grant college of agriculture’ mean a public college
or university offering a baccalaureate or higher degree
in the study of agriculture or forestry.
‘‘(B) EXCLUSIONS.—The terms ‘NLGCA Institution’ and
‘non-land-grant college of agriculture’ do not include—
‘‘(i) Hispanic-serving agricultural colleges and
universities; or
‘‘(ii) any institution designated under—
‘‘(I) the Act of July 2, 1862 (commonly known
as the ‘First Morrill Act’; 7 U.S.C. 301 et seq.);
‘‘(II) the Act of August 30, 1890 (commonly
known as the ‘Second Morrill Act’) (7 U.S.C. 321
et seq.);
‘‘(III) the Equity in Educational Land-Grant
Status Act of 1994 (Public Law 103–382; 7 U.S.C.
301 note); or
‘‘(IV) Public Law 87–788 (commonly known
as the ‘McIntire-Stennis Cooperative Forestry Act’)
(16 U.S.C. 582a et seq.).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 2(3) of the Research Facilities Act (7 U.S.C.
390(3)) is amended by striking ‘‘section 1404(8) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103(8))’’ and inserting ‘‘section 1404 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)’’.
(2) Section 2(k) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(k)) is amended in the second
sentence by striking ‘‘section 1404(17) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977
(7 U.S.C. 3103(17))’’ and inserting ‘‘section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)’’.
(3) Section 18(a)(3)(B) of the Food and Nutrition Act of
2008 (7 U.S.C. 2027(a)(3)(B)) is amended by striking ‘‘section
1404(5) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(5)))’’ and inserting

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122 STAT. 1975

‘‘section 1404 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3103))’’.
(4) Section 1473 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319)
is amended in the first sentence by striking ‘‘section 1404(16)
of this title’’ and inserting ‘‘section 1404(18)’’.
(5) Section 1619(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended—
(A) in paragraph (1), by striking ‘‘section 1404(17) of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(17))’’ and
inserting ‘‘section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)’’;
(B) in paragraph (5), by striking ‘‘section 1404(7) of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(7))’’ and
inserting ‘‘section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)’’; and
(C) in paragraph (8), by striking ‘‘section 1404(13) of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(13))’’ and
inserting ‘‘section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)’’.
(6) Section 125(c)(1)(C) of Public Law 100–238 (5 U.S.C.
8432 note) is amended by striking ‘‘section 1404(5) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103(5))’’ and inserting ‘‘section 1404
of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)’’.

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

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

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122 STAT. 1976

7 USC 3123 note.

PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(F) 1 member representing a national food animal
science society.
‘‘(G) 1 member representing a national crop, soil,
agronomy, horticulture, plant pathology, or weed science
society.
‘‘(H) 1 member representing a national food science
organization.
‘‘(I) 1 member representing a national human health
association.
‘‘(J) 1 member representing a national nutritional
science society.
‘‘(K) 1 member representing the land-grant colleges
and universities eligible to receive funds under the Act
of July 2, 1862 (7 U.S.C. 301 et seq.).
‘‘(L) 1 member representing the land-grant colleges
and universities eligible to receive funds under the Act
of August 30, 1890 (7 U.S.C. 321 et seq.), including
Tuskegee University.
‘‘(M) 1 member representing the 1994 Institutions (as
defined in section 532 of the Equity in Educational LandGrant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103–382)).
‘‘(N) 1 member representing NLGCA Institutions.
‘‘(O) 1 member representing Hispanic-serving institutions.
‘‘(P) 1 member representing the American Colleges of
Veterinary Medicine.
‘‘(Q) 1 member engaged in the transportation of food
and agricultural products to domestic and foreign markets.
‘‘(R) 1 member representing food retailing and marketing interests.
‘‘(S) 1 member representing food and fiber processors.
‘‘(T) 1 member actively engaged in rural economic
development.
‘‘(U) 1 member representing a national consumer
interest group.
‘‘(V) 1 member representing a national forestry group.
‘‘(W) 1 member representing a national conservation
or natural resource group.
‘‘(X) 1 member representing private sector organizations involved in international development.
‘‘(Y) 1 member representing a national social science
association.’’;
(2) in subsection (g)(1), by striking ‘‘$350,000’’ and inserting
‘‘$500,000’’; and
(3) in subsection (h), by striking ‘‘2007’’ and inserting
‘‘2012’’.
(b) NO EFFECT ON TERMS.—Nothing in this section or any
amendment made by this section affects the term of any member
of the National Agricultural Research, Extension, Education, and
Economics Advisory Board serving as of the date of enactment
of this Act.

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SEC. 7103. SPECIALTY CROP COMMITTEE REPORT.

Section 1408A(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended
by adding at the end the following:

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122 STAT. 1977

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

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

7 USC 3123b.

‘‘(a) INITIAL MEMBERS.—Not later than 90 days after the date
of enactment of this section, the executive committee of the Advisory
Board shall establish and appoint the initial members of a permanent renewable energy committee.
‘‘(b) DUTIES.—The permanent renewable energy committee shall
study the scope and effectiveness of research, extension, and
economics programs affecting the renewable energy industry.
‘‘(c) NONADVISORY BOARD MEMBERS.—
‘‘(1) IN GENERAL.—An individual who is not a member
of the Advisory Board may be appointed as a member of the
renewable energy committee.
‘‘(2) SERVICE.—A member of the renewable energy committee shall serve at the discretion of the executive committee.
‘‘(d) REPORT BY RENEWABLE ENERGY COMMITTEE.—Not later
than 180 days after the date of establishment of the renewable
energy committee, and annually thereafter, the renewable energy
committee shall submit to the Advisory Board a report that contains
the findings and any recommendations of the renewable energy
committee with respect to the study conducted under subsection
(b).
‘‘(e) CONSULTATION.—In carrying out the duties described in
subsection (b), the renewable energy committee shall consult with
the Biomass Research and Development Technical Advisory Committee established under section 9008(d) of the Biomass Research
and Development Act of 2000 (7 U.S.C. 8605).
‘‘(f) MATTERS TO BE CONSIDERED IN BUDGET RECOMMENDATION.—In preparing the annual budget recommendations for the
Department, the Secretary shall take into consideration those
findings and recommendations contained in the most recent report
of the renewable energy committee under subsection (d) that are
developed by the Advisory Committee.
‘‘(g) REPORT BY THE SECRETARY.—In the budget material submitted to Congress by the Secretary in connection with the budget
submitted pursuant to section 1105 of title 31, United States Code,
for a fiscal year, the Secretary shall include a report that describes
the ways in which the Secretary addressed each recommendation
of the renewable energy committee described in subsection (f).’’.

Deadline.
Establishment.

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SEC. 7105. VETERINARY MEDICINE LOAN REPAYMENT.

(a) IN GENERAL.—Section 1415A of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3151a) is amended—
(1) by striking subsection (b) and inserting the following:

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Deadline.

PUBLIC LAW 110–246—JUNE 18, 2008

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

7106.

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

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

7107.

GRANTS TO
CAPACITY.

1890

SCHOOLS

TO

EXPAND

EXTENSION

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

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

Section 1417(i) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(i)) is
amended—

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122 STAT. 1979

(1) in the subsection heading, by striking ‘‘Teaching
Awards’’ and inserting ‘‘Teaching, Extension, and Research
Awards’’; and
(2) by striking paragraph (1) and inserting the following:
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN GENERAL.—The Secretary shall establish a
National Food and Agricultural Sciences Teaching, Extension, and Research Awards program to recognize and promote excellence in teaching, extension, and research in
the food and agricultural sciences at a college or university.
‘‘(B) MINIMUM REQUIREMENT.—The Secretary shall
make at least 1 cash award in each fiscal year to a nominee
selected by the Secretary for excellence in each of the
areas of teaching, extension, and research of food and agricultural science at a college or university.’’.

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

(a) EDUCATION TEACHING PROGRAMS.—Section 1417(j) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3152(j)) is amended—
(1) in the subsection heading, by striking ‘‘SECONDARY EDUCATION AND 2-YEAR POSTSECONDARY EDUCATION TEACHING
PROGRAMS’’ and inserting ‘‘SECONDARY EDUCATION, 2-YEAR
POSTSECONDARY EDUCATION, AND AGRICULTURE IN THE K–12
CLASSROOM’’; and
(2) in paragraph (3)—
(A) by striking ‘‘secondary schools, and institutions
of higher education that award an associate’s degree’’ and
inserting ‘‘secondary schools, institutions of higher education that award an associate’s degree, other institutions
of higher education, and nonprofit organizations’’;
(B) in subparagraph (E), by striking ‘‘and’’ at the end;
(C) in subparagraph (F), by striking the period at the
end and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(G) to support current agriculture in the classroom
programs for grades K–12.’’.
(b) REPORT.—Section 1417 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152) is amended—
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
‘‘(l) REPORT.—The Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a biennial
report detailing the distribution of funds used to implement the
teaching programs under subsection (j).’’.
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 1417(m) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (as redesignated by subsection (b)(1)) is amended by
striking ‘‘2007’’ and inserting ‘‘2012’’.
(d) EFFECTIVE DATE.—The amendments made by subsection
(a) take effect on October 1, 2008.

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

(a) IN GENERAL.—Section 1419 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3154) is repealed.
(b) CONFORMING AMENDMENT.—Section 1463(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977
(7 U.S.C. 3311(a)) is amended by striking ‘‘1419,’’.
SEC. 7111. POLICY RESEARCH CENTERS.

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

7 USC 3156.

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

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SEC. 7113. EMPHASIS OF HUMAN NUTRITION INITIATIVE.

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

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

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

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

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

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‘‘SEC. 1425. NUTRITION EDUCATION PROGRAM.

‘‘(a) DEFINITION OF 1862 INSTITUTION AND 1890 INSTITUTION.—
In this section, the terms ‘1862 Institution’ and ‘1890 Institution’
have the meaning given those terms in section 2 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7601).’’;
(3) in subsection (b) (as redesignated by paragraph (1)),
by striking ‘‘(b) The Secretary’’ and inserting the following:
‘‘(b) ESTABLISHMENT.—The Secretary’’;
(4) in subsection (c) (as so redesignated), by striking ‘‘(c)
In order to enable’’ and inserting the following:
‘‘(c) EMPLOYMENT AND TRAINING.—To enable’’;
(5) in subsection (d) (as redesignated by paragraph (1))—
(A) by striking ‘‘(d) Beginning’’ and inserting the following:
‘‘(d) ALLOCATION OF FUNDING.—Beginning’’;
(B) in paragraph (2), by striking subparagraph (B)
and inserting the following:
‘‘(B) Notwithstanding section 3(d) of the Act of May
8, 1914 (7 U.S.C. 343(d)), the remainder shall be allocated
among the States as follows:
‘‘(i) $100,000 shall be distributed to each 1862
Institution and 1890 Institution.
‘‘(ii) Subject to clause (iii), the remainder shall
be allocated to each State in an amount that bears
the same ratio to the total amount to be allocated
under this clause as—
‘‘(I) the population living at or below 125 percent of the income poverty guidelines (as prescribed by the Office of Management and Budget
and as adjusted pursuant to section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2))) in the State; bears to
‘‘(II) the total population living at or below
125 percent of those income poverty guidelines
in all States;

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122 STAT. 1982

7 USC 3175 note.

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as determined by the most recent decennial census
at the time at which each such additional amount
is first appropriated.
‘‘(iii)(I) Before any allocation of funds under clause
(ii), for any fiscal year for which the amount of funds
appropriated for the conduct of the expanded food and
nutrition education program exceeds the amount of
funds appropriated for the program for fiscal year 2007,
the following percentage of such excess funds for the
fiscal year shall be allocated to the 1890 Institutions
in accordance with subclause (II):
‘‘(aa) 10 percent for fiscal year 2009.
‘‘(bb) 11 percent for fiscal year 2010.
‘‘(cc) 12 percent for fiscal year 2011.
‘‘(dd) 13 percent for fiscal year 2012.
‘‘(ee) 14 percent for fiscal year 2013.
‘‘(ff) 15 percent for fiscal year 2014 and for
each fiscal year thereafter.
‘‘(II) Funds made available under subclause (I)
shall be allocated to each 1890 Institution in an amount
that bears the same ratio to the total amount to be
allocated under this clause as—
‘‘(aa) the population living at or below 125
percent of the income poverty guidelines (as prescribed by the Office of Management and Budget
and as adjusted pursuant to section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2))) in the State in which the 1890 Institution
is located; bears to
‘‘(bb) the total population living at or below
125 percent of those income poverty guidelines
in all States in which 1890 Institutions are located;
as determined by the most recent decennial census
at the time at which each such additional amount
is first appropriated.
‘‘(iv) Nothing in this subparagraph precludes the
Secretary from developing educational materials and
programs for persons in income ranges above the level
designated in this subparagraph.’’; and
(C) by striking paragraph (3); and
(6) by adding at the end the following:
‘‘(e) COMPLEMENTARY ADMINISTRATION.—The Secretary shall
ensure the complementary administration of the expanded food
and nutrition education program by 1862 Institutions and 1890
Institutions in a State.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out the expanded food and nutrition
education program established under section 3(d) of the Act of
May 8, 1914 (7 U.S.C. 343(d)), and this section $90,000,000 for
each of fiscal years 2009 through 2012.’’.
(b) CONFORMING AMENDMENT.—Section 1588(b) of the Food
Security Act of 1985 (7 U.S.C. 3175e(b)) is amended by striking
‘‘section 1425(c)(2)’’ and inserting ‘‘section 1425(d)(2)’’.
(c) EFFECTIVE DATE.—The amendments made by this section
take effect on October 1, 2008.

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

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

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

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

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

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

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

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

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

7 USC 3222b–1.

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

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PUBLIC LAW 110–246—JUNE 18, 2008

‘‘SEC.

1447A.

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

‘‘(a) PURPOSE.—It is the intent of Congress to assist the landgrant university in the District of Columbia established under section 208 of the District of Columbia Public Postsecondary Education
Reorganization Act (Public Law 93–471; 88 Stat. 1428) in efforts
to acquire, alter, or repair facilities or relevant equipment necessary
for conducting agricultural research.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section $750,000 for each
of fiscal years 2008 through 2012.’’.
SEC. 7125. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AND EQUIPMENT AT INSULAR AREA LANDGRANT INSTITUTIONS.

The National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by inserting
after section 1447A (as added by section 7124) the following:
7 USC 3222b–2.

‘‘SEC.

1447B.

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

‘‘(a) PURPOSE.—It is the intent of Congress to assist the landgrant institutions in the insular areas in efforts to acquire, alter,
or repair facilities or relevant equipment necessary for conducting
agricultural research.
‘‘(b) METHOD OF AWARDING GRANTS.—Grants awarded pursuant
to this section shall be made in such amounts and under such
terms and conditions as the Secretary determines necessary to
carry out the purposes of this section.
‘‘(c) REGULATIONS.—The Secretary may promulgate such rules
and regulations as the Secretary considers to be necessary to carry
out this section.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $8,000,000 for each
of fiscal years 2008 through 2012.’’.
SEC. 7126. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

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

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

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

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122 STAT. 1985

SEC. 7128. HISPANIC-SERVING INSTITUTIONS.

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

7129.

HISPANIC-SERVING
UNIVERSITIES.

AGRICULTURAL

COLLEGES

AND

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

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‘‘SEC.

1456.

HISPANIC-SERVING
UNIVERSITIES.

AGRICULTURAL

COLLEGES

AND

7 USC 3243.

‘‘(a) DEFINITION OF ENDOWMENT FUND.—In this section, the
term ‘endowment fund’ means the Hispanic-Serving Agricultural
Colleges and Universities Fund established under subsection (b).
‘‘(b) ENDOWMENT.—
‘‘(1) IN GENERAL.—The Secretary of the Treasury shall
establish in accordance with this subsection a Hispanic-Serving
Agricultural Colleges and Universities Fund.
‘‘(2) AGREEMENTS.—The Secretary of the Treasury may
enter into such agreements as are necessary to carry out this
subsection.
‘‘(3) DEPOSIT TO THE ENDOWMENT FUND.—The Secretary
of the Treasury shall deposit in the endowment fund any—
‘‘(A) amounts made available through Acts of appropriations, which shall be the endowment fund corpus; and
‘‘(B) interest earned on the endowment fund corpus.
‘‘(4) INVESTMENTS.—The Secretary of the Treasury shall
invest the endowment fund corpus and income in interestbearing obligations of the United States.
‘‘(5) WITHDRAWALS AND EXPENDITURES.—
‘‘(A) CORPUS.—The Secretary of the Treasury may not
make a withdrawal or expenditure from the endowment
fund corpus.
‘‘(B) WITHDRAWALS.—On September 30, 2008, and each
September 30 thereafter, the Secretary of the Treasury
shall withdraw the amount of the income from the endowment fund for the fiscal year and warrant the funds to
the Secretary of Agriculture who, after making adjustments
for the cost of administering the endowment fund, shall
distribute the adjusted income as follows:
‘‘(i) 60 percent shall be distributed among the Hispanic-serving agricultural colleges and universities on
a pro rata basis based on the Hispanic enrollment
count of each institution.
‘‘(ii) 40 percent shall be distributed in equal shares
to the Hispanic-serving agricultural colleges and
universities.

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‘‘(6) ENDOWMENTS.—Amounts made available under this
subsection shall be held and considered to be granted to Hispanic-serving agricultural colleges and universities to establish
an endowment in accordance with this subsection.
‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year 2008
and each fiscal year thereafter.
‘‘(c) AUTHORIZATION FOR ANNUAL PAYMENTS.—
‘‘(1) IN GENERAL.—For fiscal year 2008 and each fiscal
year thereafter, there are authorized to be appropriated to
the Department of Agriculture to carry out this subsection
an amount equal to the product obtained by multiplying—
‘‘(A) $80,000; by
‘‘(B) the number of Hispanic-serving agricultural colleges and universities.
‘‘(2) PAYMENTS.—For fiscal year 2008 and each fiscal year
thereafter, the Secretary of the Treasury shall pay to the treasurer of each Hispanic-serving agricultural college and university an amount equal to—
‘‘(A) the total amount made available by appropriations
under paragraph (1); divided by
‘‘(B) the number of Hispanic-serving agricultural colleges and universities.
‘‘(3) USE OF FUNDS.—
‘‘(A) IN GENERAL.—Amounts authorized to be appropriated under this subsection shall be used in the same
manner as is prescribed for colleges under the Act of August
30, 1890 (commonly known as the ‘Second Morrill Act’)
(7 U.S.C. 321 et seq.).
‘‘(B) RELATIONSHIP TO OTHER LAW.—Except as otherwise provided in this subsection, the requirements of that
Act shall apply to Hispanic-serving agricultural colleges
and universities under this section.
‘‘(d) INSTITUTIONAL CAPACITY-BUILDING GRANTS.—
‘‘(1) IN GENERAL.—For fiscal year 2008 and each fiscal
year thereafter, the Secretary shall make grants to assist Hispanic-serving agricultural colleges and universities in institutional capacity building (not including alteration, repair, renovation, or construction of buildings).
‘‘(2) CRITERIA FOR INSTITUTIONAL CAPACITY-BUILDING
GRANTS.—
‘‘(A) REQUIREMENTS FOR GRANTS.—The Secretary shall
make grants under this subsection on the basis of a
competitive application process under which Hispanicserving agricultural colleges and universities may submit
applications to the Secretary at such time, in such manner,
and containing such information as the Secretary may
require.
‘‘(B) DEMONSTRATION OF NEED.—
‘‘(i) IN GENERAL.—As part of an application for
a grant under this subsection, the Secretary shall
require the applicant to demonstrate need for the
grant, as determined by the Secretary.
‘‘(ii) OTHER SOURCES OF FUNDING.—The Secretary
may award a grant under this subsection only to an
applicant that demonstrates a failure to obtain funding

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 1987

for a project after making a reasonable effort to otherwise obtain the funding.
‘‘(C) PAYMENT OF NON-FEDERAL SHARE.—A grant
awarded under this subsection shall be made only if the
recipient of the grant pays a non-Federal share in an
amount that is specified by the Secretary and based on
assessed institutional needs.
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year 2008
and each fiscal year thereafter.
‘‘(e) COMPETITIVE GRANTS PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall establish a competitive grants program to fund fundamental and applied research
at Hispanic-serving agricultural colleges and universities in
agriculture, human nutrition, food science, bioenergy, and
environmental science.
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year 2008
and each fiscal year thereafter.’’.
(b) EXTENSION.—Section 3 of the Smith-Lever Act (7 U.S.C.
343) is amended—
(1) in subsection (b), by adding at the end the following:
‘‘(4) ANNUAL APPROPRIATION FOR HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.—
‘‘(A) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary for payments
to Hispanic-serving agricultural colleges and universities
(as defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)) such sums as are necessary to carry out
this paragraph for fiscal year 2008 and each fiscal year
thereafter, to remain available until expended.
‘‘(B) ADDITIONAL AMOUNT.—Amounts made available
under this paragraph shall be in addition to any other
amounts made available under this section to States, the
Commonwealth of Puerto Rico, Guam, or the United States
Virgin Islands.
‘‘(C) ADMINISTRATION.—Amounts made available under
this paragraph shall be—
‘‘(i) distributed on the basis of a competitive
application process to be developed and implemented
by the Secretary;
‘‘(ii) paid by the Secretary to the State institutions
established in accordance with the Act of July 2, 1862
(commonly known as the ‘First Morrill Act’) (7 U.S.C.
301 et seq.); and
‘‘(iii) administered by State institutions through
cooperative agreements with the Hispanic-serving agricultural colleges and universities in the State in accordance with regulations promulgated by the Secretary.’’;
and
(2) in subsection (f)—
(A) in the subsection heading, by inserting ‘‘AND HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES’’ after ‘‘1994 INSTITUTIONS’’; and

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122 STAT. 1988

PUBLIC LAW 110–246—JUNE 18, 2008
(B) by striking ‘‘pursuant to subsection (b)(3)’’ and
inserting ‘‘or Hispanic-serving agricultural colleges and
universities in accordance with paragraphs (3) and (4) of
subsection (b)’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601) is amended—
(A) by redesignating paragraph (6) as paragraph (7);
and
(B) by inserting after paragraph (5) the following:
‘‘(6) HISPANIC-SERVING AGRICULTURAL COLLEGES AND
UNIVERSITIES.—The term ‘Hispanic-serving agricultural colleges
and universities’ has the meaning given the term in section
1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103).’’.
(2) Section 102(c) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7612(c)) is
amended—
(A) in the subsection heading, by inserting ‘‘AND HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES’’ after ‘‘INSTITUTIONS’’; and
(B) in paragraph (1), by striking ‘‘ and 1994 Institution’’
and inserting ‘‘1994 Institution, and Hispanic-serving agricultural college and university’’.
(3) Section 103(e) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613(e)) is amended
by adding at the end the following:
‘‘(3) HISPANIC-SERVING AGRICULTURAL COLLEGES AND
UNIVERSITIES.—To be eligible to obtain agricultural extension
funds from the Secretary for an activity, each Hispanic-serving
agricultural college and university shall—
‘‘(A) establish a process for merit review of the activity;
and
‘‘(B) review the activity in accordance with such
process.’’.
(4) Section 406(b) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7626(b)) is
amended by striking ‘‘and 1994 Institutions’’ and inserting ‘‘,
1994 Institutions, and Hispanic-serving agricultural colleges
and universities’’.

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

Section 1458(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is
amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking ‘‘and’’ after the
semicolon;
(B) in subparagraph (B), by adding ‘‘and’’ at the end;
and
(C) by adding at the end the following:
‘‘(C) giving priority to those institutions with existing
memoranda of understanding, agreements, or other formal
ties to United States institutions, or Federal or State agencies;’’;
(2) by striking paragraph (3) and inserting the following:

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‘‘(3) enter into agreements with land-grant colleges and
universities, Hispanic-serving agricultural colleges and universities, the Agency for International Development, and international organizations (such as the United Nations, the World
Bank, regional development banks, international agricultural
research centers), or other organizations, institutions, or
individuals with comparable goals, to promote and support—
‘‘(A) the development of a viable and sustainable global
agricultural system;
‘‘(B) antihunger and improved international nutrition
efforts; and
‘‘(C) increased quantity, quality, and availability of
food;’’;
(3) in paragraph (7)(A), by striking ‘‘and land-grant colleges
and universities’’ and inserting ‘‘, land-grant colleges and
universities, and Hispanic-serving agricultural colleges and
universities’’;
(4) in paragraph (9)—
(A) in subparagraph (A), by striking ‘‘or other colleges
and universities’’ and inserting ‘‘, Hispanic-serving agricultural colleges and universities, or other colleges and universities’’; and
(B) in subparagraph (D), by striking ‘‘and’’ at the end;
(5) in paragraph (10), by striking the period at the end
and inserting ‘‘; and’’; and
(6) by adding at the end the following:
‘‘(11) establish a program for the purpose of providing
fellowships to United States or foreign students to study at
foreign agricultural colleges and universities working under
agreements provided for under paragraph (3).’’.
SEC. 7131. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE AND EDUCATION PROGRAMS.

Section 1459A(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended
by striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7132. ADMINISTRATION.

(a) LIMITATION ON INDIRECT COSTS FOR AGRICULTURAL
RESEARCH, EDUCATION, AND EXTENSION PROGRAMS.—Section
1462(a) of the National Agriculture Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310(a)) is amended—
(1) by striking ‘‘a competitive’’ and inserting ‘‘any’’; and
(2) by striking ‘‘19 percent’’ and inserting ‘‘22 percent’’.
(b) AUDITING, REPORTING, BOOKKEEPING, AND ADMINISTRATIVE
REQUIREMENTS.—Section 1469(a)(3) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3315(a)(3)) is amended by striking ‘‘appropriated’’ and inserting
‘‘made available’’.
SEC. 7133. RESEARCH EQUIPMENT GRANTS.

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

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SEC. 7134. UNIVERSITY RESEARCH.

Section 1463 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by

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striking ‘‘2007’’ each place it appears in subsections (a) and (b)
and inserting ‘‘2012’’.
SEC. 7135. EXTENSION SERVICE.

Section 1464 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by
striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7136. SUPPLEMENTAL AND ALTERNATIVE CROPS.

Section 1473D(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended
by striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7137. NEW ERA RURAL TECHNOLOGY PROGRAM.

Subtitle K of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) is amended
by adding at the end the following:
7 USC 3319e.

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

‘‘(a) DEFINITION OF COMMUNITY COLLEGE.—In this section, the
term ‘community college’ means an institution of higher education
(as defined in section 101 of the Higher Education Act of 1965
(20 U.S.C. 1001))—
‘‘(1) that admits as regular students individuals who—
‘‘(A) are beyond the age of compulsory school attendance in the State in which the institution is located; and
‘‘(B) have the ability to benefit from the training offered
by the institution;
‘‘(2) that does not provide an educational program for which
the institution awards a bachelor’s degree or an equivalent
degree; and
‘‘(3) that—
‘‘(A) provides an educational program of not less than
2 years that is acceptable for full credit toward such a
degree; or
‘‘(B) offers a 2-year program in engineering, technology,
mathematics, or the physical, chemical, or biological
sciences, designed to prepare a student to work as a technician or at the semiprofessional level in engineering, scientific, or other technological fields requiring the understanding and application of basic engineering, scientific,
or mathematical principles of knowledge.
‘‘(b) FUNCTIONS.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN GENERAL.—The Secretary shall establish a program to be known as the ‘New Era Rural Technology
Program’, to make grants available for technology development, applied research, and training to aid in the development of an agriculture-based renewable energy workforce.
‘‘(B) SUPPORT.—The initiative under this section shall
support the fields of—
‘‘(i) bioenergy;
‘‘(ii) pulp and paper manufacturing; and
‘‘(iii) agriculture-based renewable energy resources.
‘‘(2) REQUIREMENTS FOR FUNDING.—To receive funding
under this section, an entity shall—
‘‘(A) be a community college or advanced technological
center, located in a rural area and in existence on the

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date of the enactment of this section, that participates
in agricultural or bioenergy research and applied research;
‘‘(B) have a proven record of development and
implementation of programs to meet the needs of students,
educators, and business and industry to supply the agriculture-based, renewable energy or pulp and paper manufacturing fields with certified technicians, as determined
by the Secretary; and
‘‘(C) have the ability to leverage existing partnerships
and occupational outreach and training programs for secondary schools, 4-year institutions, and relevant nonprofit
organizations.
‘‘(c) GRANT PRIORITY.—In providing grants under this section,
the Secretary shall give preference to eligible entities working in
partnership—
‘‘(1) to improve information-sharing capacity; and
‘‘(2) to maximize the ability to meet the requirements of
this section.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as are
necessary for each of fiscal years 2008 through 2012.’’.
SEC. 7138. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

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

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

7 USC 3319c.

‘‘(a) GRANT PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall make competitive
grants to NLGCA Institutions to assist the NLGCA Institutions
in maintaining and expanding the capacity of the NLGCA
Institutions to conduct education, research, and outreach activities relating to—
‘‘(A) agriculture;
‘‘(B) renewable resources; and
‘‘(C) other similar disciplines.
‘‘(2) USE OF FUNDS.—An NLGCA Institution that receives
a grant under paragraph (1) may use the funds made available
through the grant to maintain and expand the capacity of
the NLGCA Institution—
‘‘(A) to successfully compete for funds from Federal
grants and other sources to carry out educational, research,
and outreach activities that address priority concerns of
national, regional, State, and local interest;
‘‘(B) to disseminate information relating to priority concerns to—
‘‘(i) interested members of the agriculture, renewable resources, and other relevant communities;
‘‘(ii) the public; and
‘‘(iii) any other interested entity;
‘‘(C) to encourage members of the agriculture, renewable resources, and other relevant communities to participate in priority education, research, and outreach activities
by providing matching funding to leverage grant funds;
and
‘‘(D) through—

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122 STAT. 1992

PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(i) the purchase or other acquisition of equipment
and other infrastructure (not including alteration,
repair, renovation, or construction of buildings);
‘‘(ii) the professional growth and development of
the faculty of the NLGCA Institution; and
‘‘(iii) the development of graduate assistantships.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as are
necessary for each of fiscal years 2008 through 2012.’’.
SEC. 7139. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND
TECHNOLOGY FELLOWSHIP PROGRAM.

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

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7 USC 3319j.

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

‘‘(a) FELLOWSHIP PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall establish a fellowship program, to be known as the ‘Borlaug International Agricultural Science and Technology Fellowship Program,’ to provide fellowships for scientific training and study in the United
States to individuals from eligible countries (as described in
subsection (b)) who specialize in agricultural education,
research, and extension.
‘‘(2) PROGRAMS.—The Secretary shall carry out the fellowship program by implementing 3 programs designed to assist
individual fellowship recipients, including—
‘‘(A) a graduate studies program in agriculture to assist
individuals who participate in graduate agricultural degree
training at a United States institution;
‘‘(B) an individual career improvement program to
assist agricultural scientists from developing countries in
upgrading skills and understanding in agricultural science
and technology; and
‘‘(C) a Borlaug agricultural policy executive leadership
course to assist senior agricultural policy makers from
eligible countries, with an initial focus on individuals from
sub-Saharan Africa and the independent states of the
former Soviet Union.
‘‘(b) ELIGIBLE COUNTRIES.—An eligible country is a developing
country, as determined by the Secretary using a gross national
income per capita test selected by the Secretary.
‘‘(c) PURPOSE OF FELLOWSHIPS.—A fellowship provided under
this section shall—
‘‘(1) promote food security and economic growth in eligible
countries by—
‘‘(A) educating a new generation of agricultural scientists;
‘‘(B) increasing scientific knowledge and collaborative
research to improve agricultural productivity; and
‘‘(C) extending that knowledge to users and intermediaries in the marketplace; and
‘‘(2) shall support—
‘‘(A) training and collaborative research opportunities
through exchanges for entry level international agricultural

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 1993

research scientists, faculty, and policymakers from eligible
countries;
‘‘(B) collaborative research to improve agricultural
productivity;
‘‘(C) the transfer of new science and agricultural technologies to strengthen agricultural practice; and
‘‘(D) the reduction of barriers to technology adoption.
‘‘(d) FELLOWSHIP RECIPIENTS.—
‘‘(1) ELIGIBLE CANDIDATES.—The Secretary may provide
fellowships under this section to individuals from eligible countries who specialize or have experience in agricultural education, research, extension, or related fields, including—
‘‘(A) individuals from the public and private sectors;
and
‘‘(B) private agricultural producers.
‘‘(2) CANDIDATE IDENTIFICATION.—The Secretary shall use
the expertise of United States land-grant colleges and universities and similar universities, international organizations
working in agricultural research and outreach, and national
agricultural research organizations to help identify program
candidates for fellowships under this section from the public
and private sectors of eligible countries.
‘‘(e) USE OF FELLOWSHIPS.—A fellowship provided under this
section shall be used—
‘‘(1) to promote collaborative programs among agricultural
professionals of eligible countries, agricultural professionals of
the United States, the international agricultural research
system, and, as appropriate, United States entities conducting
research; and
‘‘(2) to support fellowship recipients through programs
described in subsection (a)(2).
‘‘(f) PROGRAM IMPLEMENTATION.—The Secretary shall provide
for the management, coordination, evaluation, and monitoring of
the Borlaug International Agricultural Science and Technology
Fellowship Program and for the individual programs described in
subsection (a)(2), except that the Secretary may contract out to
1 or more collaborating universities the management of 1 or more
of the fellowship programs.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section, to remain available until expended.’’.
SEC. 7140. AQUACULTURE ASSISTANCE PROGRAMS.

Section 1477 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by
striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7141. RANGELAND RESEARCH GRANTS.

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

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

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

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122 STAT. 1994

PUBLIC LAW 110–246—JUNE 18, 2008

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

(a) DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.—Section
1490(f) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by
striking ‘‘2007’’ and inserting ‘‘2012’’.
(b) RESIDENT INSTRUCTION GRANTS FOR INSULAR AREAS.—Section 1491 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3363) is amended—
(1) by redesignating subsection (e) as subsection (c); and
(2) in subsection (c) (as so redesignated), by striking ‘‘2007’’
and inserting ‘‘2012’’.

Subtitle B—Food, Agriculture,
Conservation, and Trade Act of 1990
SEC. 7201. NATIONAL GENETICS RESOURCES PROGRAM.

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

7202.

NATIONAL
SYSTEM.

AGRICULTURAL

WEATHER

INFORMATION

Section 1641(c) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ‘‘1991
through 1997’’ and inserting ‘‘2008 through 2012’’.
SEC. 7203. PARTNERSHIPS.

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

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

(a) IN GENERAL.—Section 1672 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended—
(1) in subsection (e)—
(A) in paragraph (3), by striking ‘‘and controlling
aflatoxin in the food and feed chains.’’ and inserting ‘‘,
improving, and eventually commercializing, alfatoxin controls in corn and other affected agricultural products and
crops.’’;
(B) by striking paragraphs (1), (4), (7), (8), (15), (17),
(21), (23), (26), (27), (32), (34), (41), (42), (43), and (45);
(C) by redesignating paragraphs (2), (3), (5), (6), (9)
through (14), (16), (18) through (20), (22), (24), (25), (28)
through (31), (33), (35) through (40), and (44) as paragraphs
(1) through (29), respectively; and
(D) by adding at the end the following:
‘‘(30) AIR EMISSIONS FROM LIVESTOCK OPERATIONS.—
Research and extension grants may be made under this section
for the purpose of conducting field verification tests and developing mitigation options for air emissions from animal feeding
operations.

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122 STAT. 1995

‘‘(31) SWINE GENOME PROJECT.—Research grants may be
made under this section to conduct swine genome research,
including the mapping of the swine genome.
‘‘(32) CATTLE FEVER TICK PROGRAM.—Research and extension grants may be made under this section to study cattle
fever ticks to facilitate understanding of the role of wildlife
in the persistence and spread of cattle fever ticks, to develop
advanced methods for eradication of cattle fever ticks, and
to improve management of diseases relating to cattle fever
ticks that are associated with wildlife, livestock, and human
health.
‘‘(33) SYNTHETIC GYPSUM.—Research and extension grants
may be made under this section to study the uses of synthetic
gypsum from electric power plants to remediate soil and
nutrient losses.
‘‘(34) CRANBERRY RESEARCH PROGRAM.—Research and
extension grants may be made under this section to study
new technologies to assist cranberry growers in complying with
Federal and State environmental regulations, increase production, develop new growing techniques, establish more efficient
growing methodologies, and educate cranberry producers about
sustainable growth practices.
‘‘(35) SORGHUM RESEARCH INITIATIVE.—Research and extension grants may be made under this section to study the use
of sorghum as a bioenergy feedstock, promote diversification
in, and the environmental benefits of sorghum production, and
promote water conservation through the use of sorghum.
‘‘(36) MARINE SHRIMP FARMING PROGRAM.—Research and
extension grants may be made under this section to establish
a research program to advance and maintain a domestic shrimp
farming industry in the United States.
‘‘(37) TURFGRASS RESEARCH INITIATIVE.—Research and
extension grants may be made under this section to study
the production of turfgrass (including the use of water, fertilizer, pesticides, fossil fuels, and machinery for turf establishment and maintenance) and environmental protection and
enhancement relating to turfgrass production.
‘‘(38) AGRICULTURAL WORKER SAFETY RESEARCH INITIATIVE.—Research and extension grants may be made under this
section—
‘‘(A) to study and demonstrate methods to minimize
exposure of farm and ranch owners and operators, pesticide
handlers, and agricultural workers to pesticides, including
research addressing the unique concerns of farm workers
resulting from long-term exposure to pesticides; and
‘‘(B) to develop rapid tests for on-farm use to better
inform and educate farmers, ranchers, and farm and ranch
workers regarding safe field re-entry intervals.
‘‘(39) HIGH PLAINS AQUIFER REGION.—Research and extension grants may be made under this section to carry out interdisciplinary research relating to diminishing water levels and
increased demand for water in the High Plains aquifer region.
‘‘(40) DEER INITIATIVE.—Research and extension grants may
be made under this section to support collaborative research
focusing on the development of viable strategies for the prevention, diagnosis, and treatment of infectious, parasitic, and toxic
diseases of farmed deer and the mapping of the deer genome.

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122 STAT. 1996

PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(41) PASTURE-BASED BEEF SYSTEMS RESEARCH INITIATIVE.—
Research and extension grants may be made under this section
to study the development of forage sequences and combinations
for cow-calf, heifer development, stocker, and finishing systems,
to deliver optimal nutritive value for efficient production of
cattle for pasture finishing, to optimize forage systems to
improve marketability of pasture-finished beef, and to assess
the effect of forage quality on reproductive fitness.
‘‘(42) AGRICULTURAL PRACTICES RELATING TO CLIMATE
CHANGE.—Research and extension grants may be made under
this section for field and laboratory studies that examine the
ecosystem from gross to minute scales and for projects that
explore the relationship of agricultural practices to climate
change.
‘‘(43) BRUCELLOSIS CONTROL AND ERADICATION.—Research
and extension grants may be made under this section to conduct
research relating to the development of vaccines and vaccine
delivery systems to effectively control and eliminate brucellosis
in wildlife, and to assist with the controlling of the spread
of brucellosis from wildlife to domestic animals.
‘‘(44) BIGHORN AND DOMESTIC SHEEP DISEASE MECHANISMS.—Research and extension grants may be made under
this section to conduct research relating to the health status
of (including the presence of infectious diseases in) bighorn
and domestic sheep under range conditions.
‘‘(45) AGRICULTURAL DEVELOPMENT IN THE AMERICANPACIFIC REGION.—Research and extension grants may be made
under this section to support food and agricultural science
at a consortium of land-grant institutions in the AmericanPacific region.
‘‘(46)
TROPICAL
AND
SUBTROPICAL
AGRICULTURAL
RESEARCH.—Research grants may be made under this section,
in equal dollar amounts to the Caribbean and Pacific Basins,
to support tropical and subtropical agricultural research,
including pest and disease research, at the land-grant institutions in the Caribbean and Pacific regions.
‘‘(47) VIRAL HEMORRHAGIC SEPTICEMIA.—Research and
extension grants may be made under this section to study—
‘‘(A) the effects of viral hemorrhagic septicemia
(referred to in this paragraph as ‘VHS’) on freshwater
fish throughout the natural and expanding range of VHS;
and
‘‘(B) methods for transmission and human-mediated
transport of VHS among waterbodies.
‘‘(48) FARM AND RANCH SAFETY.—Research and extension
grants may be made under this section to carry out projects
to decrease the incidence of injury and death on farms and
ranches, including—
‘‘(A) on-site farm or ranch safety reviews;
‘‘(B) outreach and dissemination of farm safety
research and interventions to agricultural employers,
employees, youth, farm and ranch families, seasonal
workers, or other individuals; and
‘‘(C) agricultural safety education and training.
‘‘(49) WOMEN AND MINORITIES IN STEM FIELDS.—Research
and extension grants may be made under this section to

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 1997

increase participation by women and underrepresented minorities from rural areas in the fields of science, technology,
engineering, and mathematics, with priority given to eligible
institutions that carry out continuing programs funded by the
Secretary.
‘‘(50) ALFALFA AND FORAGE RESEARCH PROGRAM.—Research
and extension grants may be made under this section for the
purpose of studying improvements in alfalfa and forage yields,
biomass and persistence, pest pressures, the bioenergy potential
of alfalfa and other forages, and systems to reduce losses during
harvest and storage.
‘‘(51) FOOD SYSTEMS VETERINARY MEDICINE.—Research
grants may be made under this section to address health issues
that affect food-producing animals, food safety, and the environment, and to improve information resources, curriculum, and
clinical education of students with respect to food animal veterinary medicine and food safety.
‘‘(52) BIOCHAR RESEARCH.—Grants may be made under this
section for research, extension, and integrated activities
relating to the study of biochar production and use, including
considerations of agronomic and economic impacts, synergies
of coproduction with bioenergy, and the value of soil enhancements and soil carbon sequestration.’’;
(2) by redesignating subsection (h) as subsection (j);
(3) by inserting after subsection (g) the following:
‘‘(h) POLLINATOR PROTECTION.—
‘‘(1) RESEARCH AND EXTENSION.—
‘‘(A) GRANTS.—Research and extension grants may be
made under this section—
‘‘(i) to survey and collect data on bee colony production and health;
‘‘(ii) to investigate pollinator biology, immunology,
ecology, genomics, and bioinformatics;
‘‘(iii) to conduct research on various factors that
may be contributing to or associated with colony collapse disorder, and other serious threats to the health
of honey bees and other pollinators, including—
‘‘(I) parasites and pathogens of pollinators; and
‘‘(II) the sublethal effects of insecticides, herbicides, and fungicides on honey bees and native
and managed pollinators;
‘‘(iv) to develop mitigative and preventative measures to improve native and managed pollinator health;
and
‘‘(v) to promote the health of honey bees and native
pollinators through habitat conservation and best
management practices.
‘‘(B) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this paragraph
$10,000,000 for each of fiscal years 2008 through 2012.
‘‘(2) DEPARTMENT OF AGRICULTURE CAPACITY AND INFRASTRUCTURE.—
‘‘(A) IN GENERAL.—The Secretary shall, to the maximum extent practicable, increase the capacity and infrastructure of the Department—

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‘‘(i) to address colony collapse disorder and other
long-term threats to pollinator health, including the
hiring of additional personnel; and
‘‘(ii) to conduct research on colony collapse disorder
and other pollinator issues at the facilities of the
Department.
‘‘(B) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this paragraph
$7,250,000 for each of fiscal years 2008 through 2012.
‘‘(3) HONEY BEE PEST AND PATHOGEN SURVEILLANCE.—There
is authorized to be appropriated to conduct a nationwide honey
bee pest and pathogen surveillance program $2,750,000 for
each of fiscal years 2008 through 2012.
‘‘(4) ANNUAL REPORT ON RESPONSE TO HONEY BEE COLONY
COLLAPSE DISORDER.—The Secretary shall submit to the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate an annual report describing the progress made by the
Department of Agriculture in—
‘‘(A) investigating the cause or causes of honey bee
colony collapse; and
‘‘(B) finding appropriate strategies to reduce colony
loss.
‘‘(i) REGIONAL CENTERS OF EXCELLENCE.—
‘‘(1) ESTABLISHMENT.—The Secretary shall prioritize
regional centers of excellence established for specific agricultural commodities for the receipt of funding under this section.
‘‘(2) COMPOSITION.—A regional center of excellence shall
be composed of 1 or more colleges and universities (including
land-grant institutions, schools of forestry, schools of veterinary
medicine, or NLGCA Institutions (as defined in section 1404
of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103))) that provide financial
support to the regional center of excellence.
‘‘(3) CRITERIA FOR REGIONAL CENTERS OF EXCELLENCE.—
The criteria for consideration to be a regional center of excellence shall include efforts—
‘‘(A) to ensure coordination and cost-effectiveness by
reducing unnecessarily duplicative efforts regarding
research, teaching, and extension;
‘‘(B) to leverage available resources by using public/
private partnerships among agricultural industry groups,
institutions of higher education, and the Federal Government;
‘‘(C) to implement teaching initiatives to increase
awareness and effectively disseminate solutions to target
audiences through extension activities;
‘‘(D) to increase the economic returns to rural communities by identifying, attracting, and directing funds to
high-priority agricultural issues; and
‘‘(E) to improve teaching capacity and infrastructure
at colleges and universities (including land-grant institutions, schools of forestry, and schools of veterinary medicine).’’; and
(4) in subsection (j) (as redesignated by paragraph (2)),
by striking ‘‘2007’’ and inserting ‘‘2012’’.

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(b) CONFORMING AMENDMENTS.—Section 1672 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is
amended—
(1) in the first sentence of subsection (a), by striking ‘‘(e),
(f), and (g)’’ and inserting ‘‘(e) through (i)’’; and
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘paragraphs (1), (6),
(7), and (11)’’ and inserting ‘‘paragraphs (4), (7), (8), and
(11)(B)’’; and
(B) in paragraph (2), by striking ‘‘subsection (e)’’ and
inserting ‘‘subsections (e) through (i)’’.
SEC. 7205. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

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

Applicability.

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SEC. 7206. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

(a) IN GENERAL.—Section 1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) (commonly known
as the ‘‘Organic Agriculture Research and Extension Initiative’’)
is amended—
(1) in subsection (a)—
(A) in paragraph (5), by striking ‘‘and’’ after the semicolon;
(B) in paragraph (6), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:

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‘‘(7) examining optimal conservation and environmental
outcomes relating to organically produced agricultural products;
and
‘‘(8) developing new and improved seed varieties that are
particularly suited for organic agriculture.’’; and
(2) by adding at the end the following:
‘‘(f) FUNDING.—
‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section—
‘‘(A) $18,000,000 for fiscal year 2009; and
‘‘(B) $20,000,000 for each of fiscal years 2010 through
2012.
‘‘(2) ADDITIONAL FUNDING.—In addition to amounts made
available under paragraph (1), there is authorized to be appropriated to carry out this section $25,000,000 for each of fiscal
years 2009 through 2012.’’.
(b) COORDINATION.—In carrying out the amendment made by
this section, the Secretary shall ensure that the Division Chief
of the applicable Research, Education, and Extension Office established under section 251 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) coordinates projects and activities under this section to ensure, to the maximum extent practicable, that unnecessary duplication of effort is eliminated or minimized.

7 USC 5925b
note.

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

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

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7 USC 5925e.

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

‘‘(a) ESTABLISHMENT AND PURPOSE.—There is established within
the Department of Agriculture an agricultural bioenergy feedstock
and energy efficiency research and extension initiative (referred
to in this section as the ‘Initiative’) for the purpose of enhancing
the production of biomass energy crops and the energy efficiency
of agricultural operations.
‘‘(b) COMPETITIVE RESEARCH AND EXTENSION GRANTS AUTHORIZED.—In carrying out this section, the Secretary shall make
competitive grants to support research and extension activities
specified in subsections (c) and (d).
‘‘(c) AGRICULTURAL BIOENERGY FEEDSTOCK RESEARCH AND
EXTENSION AREAS.—
‘‘(1) IN GENERAL.—Agricultural bioenergy feedstock
research and extension activities funded under the Initiative
shall focus on improving agricultural biomass production, biomass conversion in biorefineries, and biomass use by—
‘‘(A) supporting on-farm research on crop species,
nutrient requirements, management practices, environmental impacts, and economics;
‘‘(B) supporting the development and operation of onfarm, integrated biomass feedstock production systems;
‘‘(C) leveraging the broad scientific capabilities of the
Department of Agriculture and other entities in—
‘‘(i) plant genetics and breeding;

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‘‘(ii) crop production;
‘‘(iii) soil and water science;
‘‘(iv) use of agricultural waste; and
‘‘(v) carbohydrate, lipid, protein, and lignin chemistry, enzyme development, and biochemistry; and
‘‘(D) supporting the dissemination of any of the
research conducted under this subsection that will assist
in achieving the goals of this section.
‘‘(2) SELECTION CRITERIA.—In selecting grant recipients for
projects under paragraph (1), the Secretary shall consider—
‘‘(A) the capabilities and experiences of the applicant,
including—
‘‘(i) research in actual field conditions; and
‘‘(ii) engineering and research knowledge relating
to biofuels or the production of inputs for biofuel
production;
‘‘(B) the range of species types and cropping practices
proposed for study (including species types and practices
studied using side-by-side comparisons of those types and
practices);
‘‘(C) the need for regional diversity among feedstocks;
‘‘(D) the importance of developing multiyear data relevant to the production of biomass feedstock crops;
‘‘(E) the extent to which the project involves direct
participation of agricultural producers;
‘‘(F) the extent to which the project proposal includes
a plan or commitment to use the biomass produced as
part of the project in commercial channels; and
‘‘(G) such other factors as the Secretary may determine.
‘‘(d) ENERGY-EFFICIENCY RESEARCH AND EXTENSION AREAS.—
On-farm energy-efficiency research and extension activities funded
under the Initiative shall focus on developing and demonstrating
technologies and production practices relating to—
‘‘(1) improving on-farm renewable energy production;
‘‘(2) encouraging efficient on-farm energy use;
‘‘(3) promoting on-farm energy conservation;
‘‘(4) making a farm or ranch energy-neutral; and
‘‘(5) enhancing on-farm usage of advanced technologies to
promote energy efficiency.
‘‘(e) BEST PRACTICES DATABASE.—The Secretary shall develop
a best-practices database that includes information, to be available
to the public, on—
‘‘(1) the production potential of a variety of biomass crops;
and
‘‘(2) best practices for production, collection, harvesting,
storage, and transportation of biomass crops to be used as
a source of bioenergy.
‘‘(f) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Paragraphs (4), (7), (8), and (11)(B) of
subsection (b) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(b)) shall apply with respect
to making grants under this section.
‘‘(2) CONSULTATION AND COORDINATION.—The Secretary
shall—
‘‘(A) make the grants in consultation with the National
Agricultural Research, Extension, Education, and
Economics Advisory Board; and

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‘‘(B) coordinate projects and activities carried out under
the Initiative with projects and activities under section
9008 of the Farm Security and Rural Investment Act of
2002 to ensure, to the maximum extent practicable, that—
‘‘(i) unnecessary duplication of effort is eliminated
or minimized; and
‘‘(ii) the respective strengths of the Department
of Agriculture and the Department of Energy are
appropriately used.
‘‘(3) GRANT PRIORITY.—The Secretary shall give priority
to grant applications that integrate research and extension
activities established under subsections (c) and (d), respectively.
‘‘(4) MATCHING FUNDS REQUIRED.—As a condition of
receiving a grant under this section, the Secretary shall require
the recipient of the grant to provide funds or in-kind support
from non-Federal sources in an amount that is at least equal
to the amount provided by the Federal Government.
‘‘(5) PARTNERSHIPS ENCOURAGED.—Following the completion of a peer review process for grant proposals received under
this section, the Secretary may provide a priority to those
grant proposals found as a result of the peer review process—
‘‘(A) to be scientifically meritorious; and
‘‘(B) that involve cooperation—
‘‘(i) among multiple entities; and
‘‘(ii) with agricultural producers.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $50,000,000 for each
of fiscal years 2008 through 2012.’’.
SEC. 7208. FARM BUSINESS MANAGEMENT AND BENCHMARKING.

The Food, Agriculture, Conservation and Trade Act of 1990
is amended by inserting after section 1672C (as added by section
7207) the following:
7 USC 5925f.

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‘‘SEC. 1672D. FARM BUSINESS MANAGEMENT.

‘‘(a) IN GENERAL.—The Secretary may make competitive
research and extension grants for the purpose of—
‘‘(1) improving the farm management knowledge and skills
of agricultural producers; and
‘‘(2) establishing and maintaining a national, publicly available farm financial management database to support improved
farm management.
‘‘(b) SELECTION CRITERIA.—In allocating funds made available
to carry out this section, the Secretary may give priority to grants
that—
‘‘(1) demonstrate an ability to work directly with agricultural producers;
‘‘(2) collaborate with farm management and producer
associations;
‘‘(3) address the farm management needs of a variety of
crops and regions of the United States; and
‘‘(4) use and support the national farm financial management database.
‘‘(c) ADMINISTRATION.—Paragraphs (4), (7), (8), and (11)(B) of
subsection (b) of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i(b)) shall apply with respect to the making
of grants under this section.

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‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.’’.
SEC. 7209. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

Section 1673 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5926) is repealed.
SEC. 7210. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH
DISABILITIES.

Section 1680(c)(1) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking
‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7211. RESEARCH ON HONEY BEE DISEASES.

Section 1681 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5934) is repealed.
SEC. 7212. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

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

Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998
SEC. 7301. PEER AND MERIT REVIEW.

Section 103(a) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended by
adding at the end the following:
‘‘(3) CONSIDERATION.—Peer and merit review procedures
established under paragraphs (1) and (2) shall not take the
offer or availability of matching funds into consideration.’’.
SEC. 7302. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT
QUALITY RESEARCH.

Section 402 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7622) is repealed.
SEC. 7303. PRECISION AGRICULTURE.

Section 403 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7623) is repealed.
SEC. 7304. BIOBASED PRODUCTS.

(a) PILOT PROJECT.—Section 404(e)(2) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7624(e)(2)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 404(h) of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7624(h)) is amended by striking ‘‘2007’’ and inserting
‘‘2012’’.

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SEC. 7305. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

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

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

Section 406(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by
striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7307. FUSARIUM GRAMINEARUM GRANTS.

Section 408 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7628) is amended—
(1) in subsection (a), in the subsection heading, by striking
‘‘GRANT’’ and inserting ‘‘GRANTS’’; and
(2) in subsection (e), by striking ‘‘2007’’ and inserting
‘‘2012’’.
SEC. 7308. BOVINE JOHNE’S DISEASE CONTROL PROGRAM.

Section 409(b) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by
striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7309. GRANTS FOR YOUTH ORGANIZATIONS.

Section 410 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7630) is amended by striking
subsections (b) and (c) and inserting the following:
‘‘(b) FLEXIBILITY.—The Secretary shall provide maximum flexibility in content delivery to each organization receiving funds under
this section so as to ensure that the unique goals of each organization, as well as the local community needs, are fully met.
‘‘(c) REDISTRIBUTION OF FUNDING WITHIN ORGANIZATIONS
AUTHORIZED.—Recipients of funds under this section may redistribute all or part of the funds received to individual councils
or local chapters within the councils without further need of
approval from the Secretary.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as are
necessary for each of fiscal years 2008 through 2012.’’.
SEC.

7310.

AGRICULTURAL BIOTECHNOLOGY RESEARCH
DEVELOPMENT FOR DEVELOPING COUNTRIES.

AND

Section 411(c) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by
striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7311. SPECIALTY CROP RESEARCH INITIATIVE.

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

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7 USC 7632.

‘‘SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) INITIATIVE.—The term ‘Initiative’ means the specialty
crop research and extension initiative established by subsection
(b).
‘‘(2) SPECIALTY CROP.—The term ‘specialty crop’ has the
meaning given that term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108–465).
‘‘(b) ESTABLISHMENT.—There is established within the Department a specialty crop research and extension initiative to address

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the critical needs of the specialty crop industry by developing and
disseminating science-based tools to address needs of specific crops
and their regions, including—
‘‘(1) research in plant breeding, genetics, and genomics
to improve crop characteristics, such as—
‘‘(A) product, taste, quality, and appearance;
‘‘(B) environmental responses and tolerances;
‘‘(C) nutrient management, including plant nutrient
uptake efficiency;
‘‘(D) pest and disease management, including resistance to pests and diseases resulting in reduced application
management strategies; and
‘‘(E) enhanced phytonutrient content;
‘‘(2) efforts to identify and address threats from pests and
diseases, including threats to specialty crop pollinators;
‘‘(3) efforts to improve production efficiency, productivity,
and profitability over the long term (including specialty crop
policy and marketing);
‘‘(4) new innovations and technology, including improved
mechanization and technologies that delay or inhibit ripening;
and
‘‘(5) methods to prevent, detect, monitor, control, and
respond to potential food safety hazards in the production and
processing of specialty crops, including fresh produce.
‘‘(c) ELIGIBLE ENTITIES.—The Secretary may carry out the Initiative through—
‘‘(1) Federal agencies;
‘‘(2) national laboratories;
‘‘(3) colleges and universities;
‘‘(4) research institutions and organizations;
‘‘(5) private organizations or corporations;
‘‘(6) State agricultural experiment stations;
‘‘(7) individuals; or
‘‘(8) groups consisting of 2 or more entities described in
paragraphs (1) through (7).
‘‘(d) RESEARCH PROJECTS.—In carrying out this section, the
Secretary shall award grants on a competitive basis.
‘‘(e) ADMINISTRATION.—
‘‘(1) IN GENERAL.—With respect to grants awarded under
subsection (d), the Secretary shall—
‘‘(A) seek and accept proposals for grants;
‘‘(B) determine the relevance and merit of proposals
through a system of peer and merit review in accordance
with section 103; and
‘‘(C) award grants on the basis of merit, quality, and
relevance.
‘‘(2) TERM.—The term of a grant under this section may
not exceed 10 years.
‘‘(3) MATCHING FUNDS REQUIRED.—The Secretary shall
require the recipient of a grant under this section to provide
funds or in-kind support from non-Federal sources in an amount
that is at least equal to the amount provided by the Federal
Government.
‘‘(4) OTHER CONDITIONS.—The Secretary may set such other
conditions on the award of a grant under this section as the
Secretary determines to be appropriate.

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‘‘(f) PRIORITIES.—In making grants under this section, the Secretary shall provide a higher priority to projects that—
‘‘(1) are multistate, multi-institutional, or multidisciplinary;
and
‘‘(2) include explicit mechanisms to communicate results
to producers and the public.
‘‘(g) BUILDINGS AND FACILITIES.—Funds made available under
this section shall not be used for the construction of a new building
or facility or the acquisition, expansion, remodeling, or alteration
of an existing building or facility (including site grading and
improvement, and architect fees).
‘‘(h) FUNDING.—
‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section $30,000,000 for fiscal year 2008 and $50,000,000
for each of fiscal years 2009 through 2012, from which activities
under each of paragraphs (1) through (5) of subsection (b)
shall be allocated not less than 10 percent.
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to
funds made available under paragraph (1), there is authorized
to be appropriated to carry out this section $100,000,000 for
each of fiscal years 2008 through 2012.
‘‘(3) TRANSFER.—Of the funds made available to the Secretary under paragraph (1) for fiscal year 2008 and authorized
for use for payment of administrative expenses under section
1469(a)(3) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3315(a)(3)), the
Secretary shall transfer, upon the date of enactment of this
section, $200,000 to the Office of Prevention, Pesticides, and
Toxic Substances of the Environmental Protection Agency for
use in conducting a meta-analysis relating to methyl bromide.
‘‘(4) AVAILABILITY.—Funds made available pursuant to this
subsection for a fiscal year shall remain available until
expended to pay for obligations incurred in that fiscal year.’’.
(b) COORDINATION.—In carrying out the amendment made by
this section, the Secretary shall ensure that the Division Chief
of the applicable Research, Education, and Extension Office established under section 251 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) coordinates projects and activities under this section to ensure, to the maximum extent practicable, that unnecessary duplication of effort is eliminated or minimized.
SEC. 7312. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

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

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SEC. 7313. OFFICE OF PEST MANAGEMENT POLICY.

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

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Subtitle D—Other Laws
SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.

Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
178n(a)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF
1994.

(a) DEFINITION OF 1994 INSTITUTIONS.—Section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103–382) is amended by adding at the end
the following:
‘‘(34) Ilisagvik College.’’.
(b) ENDOWMENT FOR 1994 INSTITUTIONS.—Section 533 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103–382) is amended—
(1) in subsection (a)(3), in the matter preceding subparagraph (A), by inserting ‘‘this section and’’ before ‘‘sections 534,’’;
and
(2) in the first sentence of subsection (b), by striking ‘‘2007’’
and inserting ‘‘2012’’.
(c) REDISTRIBUTION.—Section 534(a)(3) of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103–382) is amended—
(1) by striking ‘‘The amounts’’ and inserting the following:
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the amounts’’; and
(2) by adding at the end the following:
‘‘(B) REDISTRIBUTION.—Funds that would be paid to
a 1994 Institution under paragraph (2) shall be withheld
from that 1994 Institution and redistributed among the
other 1994 Institutions if that 1994 Institution—
‘‘(i) declines to accept funds under paragraph (2);
or
‘‘(ii) fails to meet the accreditation requirements
under section 533(a)(3).’’.
(d) INSTITUTIONAL CAPACITY BUILDING GRANTS.—Section 535
of the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note; Public Law 103–382) is amended by striking ‘‘2007’’
each place it appears and inserting ‘‘2012’’.
(e) RESEARCH GRANTS.—Section 536(c) of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103–382) is amended in the first sentence by striking ‘‘2007’’
and inserting ‘‘2012’’.
(f) EFFECTIVE DATE.—The amendment made by subsection (a)
takes effect on October 1, 2008.

7 USC 1301 note.

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SEC. 7403. SMITH-LEVER ACT.

(a) PROGRAM.—Section 3(d) of the Smith-Lever Act (7 U.S.C.
343(d)) is amended in the second sentence by striking ‘‘apply for
and receive’’ and all that follows through paragraph (2) and
inserting ‘‘compete for and receive funds directly from the Secretary
of Agriculture.’’.
(b) ELIMINATION OF THE GOVERNOR’S REPORT REQUIREMENT
FOR EXTENSION ACTIVITIES.—Section 5 of the Smith-Lever Act (7
U.S.C. 345) is amended by striking the third sentence.

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(c) CONFORMING AMENDMENT.—Section 1444(a)(2) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3221(a)(2)) is amended by striking ‘‘after
September 30, 1995, under section 3(d) of that Act (7 U.S.C. 343(d))’’
and all that follows through the end of the sentence and inserting
‘‘under section 3(d) of that Act (7 U.S.C. 343(d)).’’.
SEC. 7404. HATCH ACT OF 1887.

(a) DISTRICT OF COLUMBIA.—Section 3(d)(4) of the Hatch Act
of 1887 (7 U.S.C. 361c(d)(4)) is amended—
(1) in the paragraph heading, by inserting ‘‘AND THE DISTRICT OF COLUMBIA’’ after ‘‘AREAS’’;
(2) in subparagraph (A)—
(A) by inserting ‘‘and the District of Columbia’’ after
‘‘United States’’; and
(B) by inserting ‘‘and the District of Columbia’’ after
‘‘respectively,’’; and
(3) in subparagraph (B), by inserting ‘‘or the District of
Columbia’’ after ‘‘area’’.
(b) ELIMINATION OF PENALTY MAIL AUTHORITIES.—
(1) IN GENERAL.—Section 6 of the Hatch Act of 1887 (7
U.S.C. 361f) is amended in the first sentence by striking ‘‘under
penalty indicia:’’ and all that follows through the end of the
sentence and inserting a period.
(2) CONFORMING AMENDMENTS IN OTHER LAWS.—
(A) NATIONAL AGRICULTURAL RESEARCH, EXTENSION,
AND TEACHING POLICY ACT OF 1977.—
(i) Section 1444(f) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977
(7 U.S.C. 3221(f)) is amended by striking ‘‘under penalty indicia:’’ and all that follows through the end
of the sentence and inserting a period.
(ii) Section 1445(e) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977
(7 U.S.C. 3222(e)) is amended by striking ‘‘under penalty indicia:’’ and all that follows through the end
of the sentence and inserting a period.
(B) OTHER PROVISIONS.—Section 3202(a) of title 39,
United States Code, is amended—
(i) in paragraph (1)—
(I) in subparagraph (D), by adding ‘‘and’’ at
the end;
(II) in subparagraph (E), by striking ‘‘sections;
and’’ and inserting ‘‘sections.’’; and
(III) by striking subparagraph (F);
(ii) in paragraph (2), by adding ‘‘and’’ at the end;
(iii) in paragraph (3) by striking ‘‘thereof; and’’
and inserting ‘‘thereof.’’; and
(iv) by striking paragraph (4).

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SEC. 7405. AGRICULTURAL EXPERIMENT STATION RESEARCH FACILITIES ACT.

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

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SEC. 7406. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

(a) IN GENERAL.—Subsection (b) of the Competitive, Special,
and Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended
to read as follows:
‘‘(b) AGRICULTURE AND FOOD RESEARCH INITIATIVE.—
‘‘(1) ESTABLISHMENT.—There is established in the Department of Agriculture an Agriculture and Food Research Initiative
under which the Secretary of Agriculture (referred to in this
subsection as ‘the Secretary’) may make competitive grants
for fundamental and applied research, extension, and education
to address food and agricultural sciences (as defined under
section 1404 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3103)).
‘‘(2) PRIORITY AREAS.—The competitive grants program
established under this subsection shall address the following
areas:
‘‘(A) PLANT HEALTH AND PRODUCTION AND PLANT PRODUCTS.—Plant systems, including—
‘‘(i) plant genome structure and function;
‘‘(ii) molecular and cellular genetics and plant biotechnology;
‘‘(iii) conventional breeding, including cultivar and
breed development, selection theory, applied quantitative genetics, breeding for improved food quality,
breeding for improved local adaptation to biotic stress
and abiotic stress, and participatory breeding;
‘‘(iv) plant-pest interactions and biocontrol systems;
‘‘(v) crop plant response to environmental stresses;
‘‘(vi) unproved nutrient qualities of plant products;
and
‘‘(vii) new food and industrial uses of plant products.
‘‘(B) ANIMAL HEALTH AND PRODUCTION AND ANIMAL
PRODUCTS.—Animal systems, including—
‘‘(i) aquaculture;
‘‘(ii) cellular and molecular basis of animal reproduction, growth, disease, and health;
‘‘(iii) animal biotechnology;
‘‘(iv) conventional breeding, including breed
development, selection theory, applied quantitative
genetics, breeding for improved food quality, breeding
for improved local adaptation to biotic stress and abiotic stress, and participatory breeding;
‘‘(v) identification of genes responsible for improved
production traits and resistance to disease;
‘‘(vi) improved nutritional performance of animals;
‘‘(vii) improved nutrient qualities of animal products and uses; and
‘‘(viii) the development of new and improved
animal husbandry and production systems that take
into account production efficiency, animal well-being,
and animal systems applicable to aquaculture.
‘‘(C) FOOD SAFETY, NUTRITION, AND HEALTH.—Nutrition,
food safety and quality, and health, including—
‘‘(i) microbial contaminants and pesticides residue
relating to human health;

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122 STAT. 2010

‘‘(ii) links between diet and health;
‘‘(iii) bioavailability of nutrients;
‘‘(iv) postharvest physiology and practices; and
‘‘(v) improved processing technologies.
‘‘(D) RENEWABLE ENERGY, NATURAL RESOURCES, AND
ENVIRONMENT.—Natural resources and the environment,
including—
‘‘(i) fundamental structures and functions of ecosystems;
‘‘(ii) biological and physical bases of sustainable
production systems;
‘‘(iii) minimizing soil and water losses and sustaining surface water and ground water quality;
‘‘(iv) global climate effects on agriculture;
‘‘(v) forestry; and
‘‘(vi) biological diversity.
‘‘(E) AGRICULTURE SYSTEMS AND TECHNOLOGY.—
Engineering, products, and processes, including—
‘‘(i) new uses and new products from traditional
and nontraditional crops, animals, byproducts, and natural resources;
‘‘(ii) robotics, energy efficiency, computing, and
expert systems;
‘‘(iii) new hazard and risk assessment and mitigation measures; and
‘‘(iv) water quality and management.
‘‘(F) AGRICULTURE ECONOMICS AND RURAL COMMUNITIES.—Markets, trade, and policy, including—
‘‘(i) strategies for entering into and being competitive in domestic and overseas markets;
‘‘(ii) farm efficiency and profitability, including the
viability and competitiveness of small and mediumsized dairy, livestock, crop and other commodity operations;
‘‘(iii) new decision tools for farm and market systems;
‘‘(iv) choices and applications of technology;
‘‘(v) technology assessment; and
‘‘(vi) new approaches to rural development,
including rural entrepreneurship.
‘‘(3) TERM.—The term of a competitive grant made under
this subsection may not exceed 10 years.
‘‘(4) GENERAL ADMINISTRATION.—In making grants under
this subsection, the Secretary shall—
‘‘(A) seek and accept proposals for grants;
‘‘(B) determine the relevance and merit of proposals
through a system of peer and merit review in accordance
with section 103 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613);
‘‘(C) award grants on the basis of merit, quality, and
relevance;
‘‘(D) solicit and consider input from persons who conduct or use agricultural research, extension, or education
in accordance with section 102(b) of the Agricultural
Research, Extension, and Education Reform Act of 1998
(7 U.S.C. 7612(b)); and

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122 STAT. 2011

‘‘(E) in seeking proposals for grants under this subsection and in performing peer review evaluations of such
proposals, seek the widest participation of qualified individuals in the Federal Government, colleges and universities,
State agricultural experiment stations, and the private
sector.
‘‘(5) ALLOCATION OF FUNDS.—In making grants under this
subsection, the Secretary shall allocate funds to the Agriculture
and Food Research Initiative to ensure that, of funds allocated
for research activities—
‘‘(A) not less than 60 percent is made available to
make grants for fundamental research (as defined in subsection (f)(1) of section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971)), of which—
‘‘(i) not less than 30 percent is made available
to make grants for research to be conducted by multidisciplinary teams; and
‘‘(ii) not more than 2 percent is used for equipment
grants under paragraph (6)(A); and
‘‘(B) not less than 40 percent is made available to
make grants for applied research (as defined in subsection
(f)(1) of section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971)).
‘‘(6) SPECIAL CONSIDERATIONS.—In making grants under
this subsection, the Secretary may assist in the development
of capabilities in the agricultural, food, and environmental
sciences by providing grants—
‘‘(A) to an institution to allow for the improvement
of the research, development, technology transfer, and education capacity of the institution through the acquisition
of special research equipment and the improvement of agricultural education and teaching, except that the Secretary
shall use not less than 25 percent of the funds made
available for grants under this subparagraph to provide
fellowships to outstanding pre- and post-doctoral students
for research in the agricultural sciences;
‘‘(B) to a single investigator or coinvestigators who
are beginning research careers and do not have an extensive research publication record, except that, to be eligible
for a grant under this subparagraph, an individual shall
be within 5 years of the beginning of the initial career
track position of the individual;
‘‘(C) to ensure that the faculty of small, mid-sized,
and minority-serving institutions who have not previously
been successful in obtaining competitive grants under this
subsection receive a portion of the grants; and
‘‘(D) to improve research, extension, and education
capabilities in States (as defined in section 1404 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)) in which institutions
have been less successful in receiving funding under this
subsection, based on a 3-year rolling average of funding
levels.
‘‘(7) ELIGIBLE ENTITIES.—The Secretary may make grants
to carry out research, extension, and education under this subsection to—
‘‘(A) State agricultural experiment stations;

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(B) colleges and universities;
‘‘(C) university research foundations;
‘‘(D) other research institutions and organizations;
‘‘(E) Federal agencies;
‘‘(F) national laboratories;
‘‘(G) private organizations or corporations;
‘‘(H) individuals; or
‘‘(I) any group consisting of 2 or more of the entities
described in subparagraphs (A) through (H).
‘‘(8) CONSTRUCTION PROHIBITED.—Funds made available for
grants under this subsection shall not be used for the construction of a new building or facility or the acquisition, expansion,
remodeling, or alteration of an existing building or facility
(including site grading and improvement, and architect fees).
‘‘(9) MATCHING FUNDS.—
‘‘(A) EQUIPMENT GRANTS.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), in the case of a grant made under paragraph
(6)(A), the amount provided under this subsection may
not exceed 50 percent of the cost of the special research
equipment or other equipment acquired using funds
from the grant.
‘‘(ii) WAIVER.—The Secretary may waive all or part
of the matching requirement under clause (i) in the
case of a college, university, or research foundation
maintained by a college or university that ranks in
the lowest 1⁄3 of such colleges, universities, and
research foundations on the basis of Federal research
funds received, if the equipment to be acquired using
funds from the grant costs not more than $25,000
and has multiple uses within a single research project
or is usable in more than 1 research project.
‘‘(B) APPLIED RESEARCH.—As a condition of making
a grant under paragraph (5)(B), the Secretary shall require
the funding of the grant to be matched with equal matching
funds from a non-Federal source if the grant is for applied
research that is—
‘‘(i) commodity-specific; and
‘‘(ii) not of national scope.
‘‘(10) PROGRAM ADMINISTRATION.—To the maximum extent
practicable, the Director of the National Institute of Food and
Agriculture, in coordination with the Under Secretary for
Research, Education, and Economics, shall allocate grants
under this subsection to high-priority research, taking into
consideration, when available, the determinations made by the
National Agricultural Research, Extension, Education, and
Economics Advisory Board (as established under section 1408
of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3123)).
‘‘(11) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(A) IN GENERAL.—There is authorized to be appropriated to carry out this subsection $700,000,000 for each
of fiscal years 2008 through 2012, of which—
‘‘(i) not less than 30 percent shall be made available for integrated research pursuant to section 406
of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7626); and

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‘‘(ii) not more than 4 percent may be retained
by the Secretary to pay administrative costs incurred
by the Secretary in carrying out this subsection.
‘‘(B) AVAILABILITY.—Funds made available under this
paragraph shall—
‘‘(i) be available for obligation for a 2-year period
beginning on October 1 of the fiscal year for which
the funds are first made available; and
‘‘(ii) remain available until expended to pay for
obligations incurred during that 2-year period.’’.
(b) REPEALS.—
(1) Section 401 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7621) is repealed.
(2) Subsection (d) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(d)) is repealed.
(c) EFFECT ON CURRENT SOLICITATIONS.—The amendments
made by this section shall not apply to any solicitation for grant
applications issued by the Cooperative State Research, Education,
and Extension Service before the date of enactment of this Act.
(d) CONFORMING AMENDMENTS.—
(1) Section 1473 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319)
is amended in the first sentence by striking ‘‘and subsection
(d)’’.
(2) Section 1671(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5924(d) is amended by striking
‘‘Paragraphs (1), (6), (7), and (11)’’ and inserting ‘‘Paragraphs
(4), (7), (8), and (11)(B)’’.
(3) Section 1672B(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925b(b)) is amended by
striking ‘‘Paragraphs (1), (6), (7), and (11)’’ and inserting ‘‘Paragraphs (4), (7), (8), and (11)(B)’’.

7 USC 450i note.

SEC. 7407. AGRICULTURAL RISK PROTECTION ACT OF 2000.

Section 221 of the Agricultural Risk Protection Act of 2000
(7 U.S.C. 6711(g)) is amended by striking subsection (g) and
inserting the following:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $15,000,000 for each
of fiscal years 2007 through 2012.’’.
SEC. 7408. EXCHANGE OR SALE AUTHORITY.

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

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‘‘SEC. 307. EXCHANGE OR SALE AUTHORITY.

7 USC 2241a.

‘‘(a) DEFINITION OF QUALIFIED ITEM OF PERSONAL PROPERTY.—
In this section, the term ‘qualified item of personal property’
means—
‘‘(1) an animal;
‘‘(2) an animal product;
‘‘(3) a plant; or
‘‘(4) a plant product.
‘‘(b) GENERAL AUTHORITY.—Except as provided in subsection
(c), notwithstanding chapter 5 of subtitle I of title 40, United
States Code, the Secretary, acting through the Under Secretary
for Research, Education, and Economics, in managing personal

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property for the purpose of carrying out the research functions
of the Department, may exchange, sell, or otherwise dispose of
any qualified item of personal property, including by way of public
auction, and may retain and apply the sale or other proceeds,
without further appropriation and without fiscal year limitation,
in whole or in partial payment—
‘‘(1) to acquire any qualified item of personal property;
or
‘‘(2) to offset costs related to the maintenance, care, or
feeding of any qualified item of personal property.
‘‘(c) EXCEPTION.—Subsection (b) does not apply to the free
dissemination of new varieties of seeds and germplasm in accordance with section 520 of the Revised Statutes (commonly known
as the ‘Department of Agriculture Organic Act’) (7 U.S.C. 2201).’’.
SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

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

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7 USC 3125a
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‘‘SEC. 308. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

‘‘(a) ESTABLISHMENT.—To enhance the use of real property
administered by agencies of the Department, the Secretary may
establish a pilot program, in accordance with this section, at the
Beltsville Agricultural Research Center of the Agricultural Research
Service and the National Agricultural Library to lease nonexcess
property of the Center or the Library to any individual or entity,
including agencies or instrumentalities of State or local governments.
‘‘(b) REQUIREMENTS.—
‘‘(1) IN GENERAL.—Notwithstanding chapter 5 of subtitle
I of title 40, United States Code, the Secretary may lease
real property at the Beltsville Agricultural Research Center
or the National Agricultural Library in accordance with such
terms and conditions as the Secretary may prescribe, if the
Secretary determines that the lease—
‘‘(A) is consistent with, and will not adversely affect,
the mission of the Department agency administering the
property;
‘‘(B) will enhance the use of the property;
‘‘(C) will not permit any portion of Department agency
property or any facility of the Department to be used
for the public retail or wholesale sale of merchandise or
residential development;
‘‘(D) will not permit the construction or modification
of facilities financed by non-Federal sources to be used
by an agency, except for incidental use; and
‘‘(E) will not include any property or facility required
for any Department agency purpose without prior consideration of the needs of the agency.
‘‘(2) TERM.—The term of a lease under this section shall
not exceed 30 years.
‘‘(3) CONSIDERATION.—
‘‘(A) IN GENERAL.—Consideration provided for a lease
under this section shall be—
‘‘(i) in an amount equal to fair market value, as
determined by the Secretary; and
‘‘(ii) in the form of cash.

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‘‘(B) USE OF FUNDS.—
‘‘(i) IN GENERAL.—Consideration provided for a
lease under this section shall be—
‘‘(I) deposited in a capital asset account to
be established by the Secretary; and
‘‘(II) available until expended, without further
appropriation, for maintenance, capital revitalization, and improvements of the Department properties and facilities at the Beltsville Agricultural
Research Center and National Agricultural
Library.
‘‘(ii) BUDGETARY TREATMENT.—For purposes of the
budget, the amounts described in clause (i) shall not
be treated as a receipt of any Department agency or
any other agency leasing property under this section.
‘‘(4) COSTS.—The lessee shall cover all costs associated
with a lease under this section, including the cost of—
‘‘(A) the project to be carried out on property or at
a facility covered by the lease;
‘‘(B) provision and administration of the lease;
‘‘(C) construction of any needed facilities;
‘‘(D) provision of applicable utilities; and
‘‘(E) any other facility cost normally associated with
the operation of a leased facility.
‘‘(5) PROHIBITION OF USE OF APPROPRIATIONS.—The Secretary shall not use any funds made available to the Secretary
in an appropriations Act for the construction or operating costs
of any space covered by a lease under this section.
‘‘(6) TERMINATION OF AUTHORITY.—This section and the
authority provided by this section terminate—
‘‘(A) on the date that is 5 years after the date of
enactment of this section; or
‘‘(B) with respect to any particular leased property,
on the date of termination of the lease.
‘‘(c) EFFECT OF OTHER LAWS.—
‘‘(1) UTILIZATION.—Property that is leased pursuant to this
section shall not be considered to be unutilized or underutilized
for purposes of section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411).
‘‘(2) DISPOSAL.—Property at the Beltsville Agricultural
Research Center or the National Agricultural Library that is
leased pursuant to this section shall not be considered to be
disposed of by sale, lease, rental, excessing, or surplusing for
purposes of section 523 of Public Law 100–202 (101 Stat. 1329417).
‘‘(d) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Not later than 90 days after the date
of enactment of this section, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that describes detailed management
objectives and performance measurements by which the Secretary intends to evaluate the success of the program under
this section.
‘‘(2) REPORTS.—Not later than 1, 3, and 5 years after the
date of enactment of this section, the Secretary shall submit

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Maryland.

Deadline.
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PUBLIC LAW 110–246—JUNE 18, 2008
to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report describing the implementation of the
program under this section, including—
‘‘(A) a copy of each lease entered into pursuant to
this section; and
‘‘(B) an assessment by the Secretary of the success
of the program using the management objectives and
performance measurements developed by the Secretary.’’.

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SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

(a) GRANTS.—Section 7405(c) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended—
(1) by striking paragraph (3) and inserting the following:
‘‘(3) MAXIMUM TERM AND SIZE OF GRANT.—
‘‘(A) IN GENERAL.—A grant under this subsection
shall—
‘‘(i) have a term that is not more than 3 years;
and
‘‘(ii) be in an amount that is not more than
$250,000 for each year.
‘‘(B) CONSECUTIVE GRANTS.—An eligible recipient may
receive consecutive grants under this subsection.’’;
(2) by redesignating paragraphs (5) through (7) as paragraphs (8) through (10), respectively;
(3) by inserting after paragraph (4) the following:
‘‘(5) EVALUATION CRITERIA.—In making grants under this
subsection, the Secretary shall evaluate—
‘‘(A) relevancy;
‘‘(B) technical merit;
‘‘(C) achievability;
‘‘(D) the expertise and track record of 1 or more
applicants;
‘‘(E) the adequacy of plans for the participatory evaluation process, outcome-based reporting, and the communication of findings and results beyond the immediate target
audience; and
‘‘(F) other appropriate factors, as determined by the
Secretary.
‘‘(6) REGIONAL BALANCE.—In making grants under this subsection, the Secretary shall, to the maximum extent practicable,
ensure geographical diversity.
‘‘(7) PRIORITY.—In making grants under this subsection,
the Secretary shall give priority to partnerships and collaborations that are led by or include nongovernmental and community-based organizations with expertise in new agricultural producer training and outreach.’’.
(b) FUNDING.—Section 7405 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f) is amended by striking
subsection (h) and inserting the following:
‘‘(h) FUNDING.—
‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section—
‘‘(A) $18,000,000 for fiscal year 2009; and

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122 STAT. 2017

‘‘(B) $19,000,000 for each of fiscal years 2010 through
2012.
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to
funds provided under paragraph (1), there is authorized to
be appropriated to carry out this section $30,000,000 for each
of fiscal years 2008 through 2012.’’.
SEC. 7411. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY
IN PRODUCING FOOD FOR HUMAN CONSUMPTION.

Section 10802 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 5921a) is repealed.
SEC. 7412. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

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

16 USC 502a–1
note.

SEC. 7413. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 6 of the
Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is
amended in the first sentence by striking ‘‘2007’’ and inserting
‘‘2012’’.
(b) TERMINATION DATE.—Section 8 of the Renewable Resources
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95–306)
is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.
SEC. 7414. NATIONAL AQUACULTURE ACT OF 1980.

Section 10 of the National Aquaculture Act of 1980 (16 U.S.C.
2809) is amended by striking ‘‘2007’’ each place it appears and
inserting ‘‘2012’’.
SEC. 7415. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL
ARBORETUM.

The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is amended
by adding at the end the following:
‘‘SEC. 7. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL
ARBORETUM.

20 USC 197.

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

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

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

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PUBLIC LAW 110–246—JUNE 18, 2008

SEC.

7417.

ELIGIBILITY OF
COLUMBIA FOR
ASSISTANCE.

UNIVERSITY OF THE DISTRICT OF
CERTAIN LAND-GRANT UNIVERSITY

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

Subtitle E—Miscellaneous
PART I—GENERAL PROVISIONS

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7 USC 7614.

SEC. 7501. DEFINITIONS.

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

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122 STAT. 2019

SEC. 7502. GRAZINGLANDS RESEARCH LABORATORY.

Oklahoma.

Except as otherwise specifically authorized by law and notwithstanding any other provision of law, the Federal land and facilities
at El Reno, Oklahoma, administered by the Secretary (as of the
date of enactment of this Act) as the Grazinglands Research Laboratory, shall not at any time, in whole or in part, be declared to
be excess or surplus Federal property under chapter 5 of subtitle
I of title 40, United States Code, or otherwise be conveyed or
transferred in whole or in part, for the 5-year period beginning
on the date of enactment of this Act.
SEC. 7503. FORT RENO SCIENCE PARK RESEARCH FACILITY.

Oklahoma.

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

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SEC. 7504. ROADMAP.

7 USC 7614a.

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

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(b) REVIEWABILITY.—The roadmap described in this section
shall not be subject to review by any officer or employee of the
Federal Government other than the Secretary (or a designee of
the Secretary).
(c) ROADMAP IMPLEMENTATION AND REPORT.—Not later than
1 year after the date on which the Secretary commences preparation
of the roadmap under this section, the Secretary shall—
(1) implement and use the roadmap to set the research,
education, and extension agenda of the Department of Agriculture; and
(2) make the roadmap available to the public.
7 USC 7614b.

SEC. 7505. REVIEW OF PLAN OF WORK REQUIREMENTS.

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

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7 USC 7614c.

SEC. 7506. BUDGET SUBMISSION AND FUNDING.

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

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122 STAT. 2021

PART II—RESEARCH, EDUCATION, AND
ECONOMICS

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SEC. 7511. RESEARCH, EDUCATION, AND ECONOMICS.

(a) IN GENERAL.—Section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971) is amended—
(1) in subsection (a), by inserting ‘‘(referred to in this section as the ‘Under Secretary’)’’ before the period at the end;
(2) by striking subsections (b) through (d);
(3) by redesignating subsection (e) as subsection (g); and
(4) by inserting after subsection (a) the following:
‘‘(b) CONFIRMATION REQUIRED.—The Under Secretary shall be
appointed by the President, by and with the advice and consent
of the Senate, from among distinguished scientists with specialized
training or significant experience in agricultural research, education, and economics.
‘‘(c) CHIEF SCIENTIST.—The Under Secretary shall—
‘‘(1) hold the title of Chief Scientist of the Department;
and
‘‘(2) be responsible for the coordination of the research,
education, and extension activities of the Department.
‘‘(d) FUNCTIONS OF UNDER SECRETARY.—
‘‘(1) PRINCIPAL FUNCTION.—The Secretary shall delegate
to the Under Secretary those functions and duties under the
jurisdiction of the Department that relate to research, education, and economics.
‘‘(2) SPECIFIC FUNCTIONS AND DUTIES.—The Under Secretary shall—
‘‘(A) identify, address, and prioritize current and
emerging agricultural research, education, and extension
needs (including funding);
‘‘(B) ensure that agricultural research, education, and
extension programs are effectively coordinated and
integrated—
‘‘(i) across disciplines, agencies, and institutions;
and
‘‘(ii) among applicable participants, grantees, and
beneficiaries;
‘‘(C) promote the collaborative use of all agricultural
research, education, and extension resources from the local,
State, tribal, regional, national, and international levels
to address priority needs; and
‘‘(D) foster communication among agricultural research,
education, and extension beneficiaries, including the public,
to ensure the delivery of agricultural research, education,
and extension knowledge.
‘‘(3) ADDITIONAL FUNCTIONS.—The Under Secretary shall
perform such other functions and duties as may be required
by law or prescribed by the Secretary.
‘‘(e) RESEARCH, EDUCATION, AND EXTENSION OFFICE.—
‘‘(1) ESTABLISHMENT.—The Under Secretary shall organize
within the office of the Under Secretary 6 Divisions, to be
known collectively as the ‘Research, Education, and Extension
Office’, which shall coordinate the research programs and activities of the Department.

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5 USC 5314.
President.
Congress.

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‘‘(2) DIVISION DESIGNATIONS.—The Divisions within the
Research, Education, and Extension Office shall be as follows:
‘‘(A) Renewable energy, natural resources, and environment.
‘‘(B) Food safety, nutrition, and health.
‘‘(C) Plant health and production and plant products.
‘‘(D) Animal health and production and animal products.
‘‘(E) Agricultural systems and technology.
‘‘(F) Agricultural economics and rural communities.
‘‘(3) DIVISION CHIEFS.—
‘‘(A) SELECTION.—The Under Secretary shall select a
Division Chief for each Division using available personnel
authority under title 5, United States Code, including—
‘‘(i) by term, temporary, or other appointment,
without regard to—
‘‘(I) the provisions of title 5, United States
Code, governing appointments in the competitive
service;
‘‘(II) the provisions of subchapter I of chapter
35 of title 5, United States Code, relating to retention preference; and
‘‘(III) the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States
Code, relating to classification and General
Schedule pay rates;
‘‘(ii) by detail, notwithstanding any Act making
appropriations for the Department of Agriculture,
whether enacted before, on, or after the date of enactment of this paragraph, requiring reimbursement for
those details unless the appropriation Act specifically
refers to this subsection and specifically includes these
details;
‘‘(iii) by reassignment or transfer from any other
civil service position; and
‘‘(iv) by an assignment under subchapter VI of
chapter 33 of title 5, United States Code.
‘‘(B) SELECTION GUIDELINES.—To the maximum extent
practicable, the Under Secretary shall select Division
Chiefs under subparagraph (A) in a manner that—
‘‘(i) promotes leadership and professional development;
‘‘(ii) enables personnel to interact with other agencies of the Department; and
‘‘(iii) maximizes the ability of the Under Secretary
to allow for rotations of Department personnel into
the position of Division Chief.
‘‘(C) TERM OF SERVICE.—Notwithstanding title 5,
United States Code, the maximum length of service for
an individual selected as a Division Chief under subparagraph (A) shall not exceed 4 years.
‘‘(D) QUALIFICATIONS.—To be eligible for selection as
a Division Chief, an individual shall have—
‘‘(i) conducted exemplary research, education, or
extension in the field of agriculture or forestry; and

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‘‘(ii) earned an advanced degree at an institution
of higher education (as defined in section 101 of the
Higher Education Act of 1965 (20 U.S.C. 1001)).
‘‘(E) DUTIES OF DIVISION CHIEFS.—Except as otherwise
provided in this Act, each Division Chief shall—
‘‘(i) assist the Under Secretary in identifying and
addressing emerging agricultural research, education,
and extension needs;
‘‘(ii) assist the Under Secretary in identifying and
prioritizing Department-wide agricultural research,
education, and extension needs, including funding;
‘‘(iii) assess the strategic workforce needs of the
research, education, and extension functions of the
Department, and develop strategic workforce plans to
ensure that existing and future workforce needs are
met;
‘‘(iv) communicate with research, education, and
extension beneficiaries, including the public, and representatives of the research, education, and extension
system, including the National Agricultural Research,
Extension, Education, and Economics Advisory Board,
to promote the benefits of agricultural research, education, and extension;
‘‘(v) assist the Under Secretary in preparing and
implementing the roadmap for agricultural research,
education, and extension, as described in section 7504
of the Food, Conservation, and Energy Act of 2008;
and
‘‘(vi) perform such other duties as the Under Secretary may determine.
‘‘(4) GENERAL ADMINISTRATION.—
‘‘(A) FUNDING.—Notwithstanding any Act making
appropriations for the Department of Agriculture, whether
enacted before, on, or after the date of enactment of this
paragraph unless the appropriation Act specifically refers
to this subsection and specifically includes the administration of funds under this section, the Secretary may transfer
funds made available to an agency in the research, education, and economics mission area to fund the costs of
Division personnel.
‘‘(B) LIMITATION.—To the maximum extent practicable—
‘‘(i) the Under Secretary shall minimize the
number of full-time equivalent positions in the Divisions; and
‘‘(ii) at no time shall the aggregate number of
staff for all Divisions exceed 30 full-time equivalent
positions.
‘‘(C) ROTATION OF PERSONNEL.—To the maximum
extent practicable, and using the authority described in
paragraph (3)(A), the Under Secretary shall rotate personnel among the Divisions, and between the Divisions
and agencies of the Department, in a manner that—
‘‘(i) promotes leadership and professional development; and
‘‘(ii) enables personnel to interact with other agencies of the Department.

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‘‘(5) ORGANIZATION.—The Under Secretary shall integrate
leadership functions of the national program staff of the
research agencies into the Research, Education and Extension
Office in such form as is required to ensure that administrative
duplication does not occur.
‘‘(f) NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) ADVISORY BOARD.—The term ‘Advisory Board’
means the National Agricultural Research, Extension, Education, and Economics Advisory Board established under
section 1408 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123).
‘‘(B) APPLIED RESEARCH.—The term ‘applied research’
means research that includes expansion of the findings
of fundamental research to uncover practical ways in which
new knowledge can be advanced to benefit individuals and
society.
‘‘(C) CAPACITY AND INFRASTRUCTURE PROGRAM.—The
term ‘capacity and infrastructure program’ means each of
the following agricultural research, extension, education,
and related programs for which the Secretary has administrative or other authority as of the day before the date
of enactment of the Food, Conservation, and Energy Act
of 2008:
‘‘(i) Each program providing funding to any of the
1994 Institutions under sections 533, 534(a), and 535
of the Equity in Educational Land-Grant Status Act
of 1994 (7 U.S.C. 301 note; Public Law 103–382).
‘‘(ii) The program established under section 536
of the Equity in Educational Land-Grant Status Act
of 1994 (7 U.S.C. 301 note; Public Law 103–382) providing research grants for 1994 Institutions.
‘‘(iii) Each program established under subsections
(b) and (c) of section 3 of the Smith-Lever Act (7
U.S.C. 343).
‘‘(iv) Each program established under the Hatch
Act of 1887 (7 U.S.C. 361a et seq.).
‘‘(v) Each program established under section
1417(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(b)).
‘‘(vi) The animal health and disease research program established under subtitle E of the National Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3191 et seq.).
‘‘(vii) Each extension program available to 1890
Institutions established under section 1444 of the
National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3221).
‘‘(viii) The program established under section 1445
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222).
‘‘(ix) The program providing grants to upgrade
agricultural and food sciences facilities at 1890 Institutions established under section 1447 of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3222b).

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‘‘(x) The program providing distance education
grants for insular areas established under section 1490
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3362).
‘‘(xi) The program providing resident instruction
grants for insular areas established under section 1491
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3363).
‘‘(xii) Each research and development and related
program established under Public Law 87–788 (commonly known as the ‘McIntire-Stennis Cooperative Forestry Act’) (16 U.S.C. 582a et seq.).
‘‘(xiii) Each program established under the Renewable Resources Extension Act of 1978 (16 U.S.C. 1671
et seq.).
‘‘(xiv) Each program providing funding to Hispanicserving agricultural colleges and universities under
section 1456 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977.
‘‘(xv) The program providing capacity grants to
NLGCA Institutions under section 1473F of the
National Agricultural Research, Extension, and
Teaching Policy Act of 1977.
‘‘(xvi) Other programs that are capacity and infrastructure programs, as determined by the Secretary.
‘‘(D) COMPETITIVE PROGRAM.—The term ‘competitive
program’ means each of the following agricultural research,
extension, education, and related programs for which the
Secretary has administrative or other authority as of the
day before the date of enactment of the Food, Conservation,
and Energy Act of 2008:
‘‘(i) The Agriculture and Food Research Initiative
established under section 2(b) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C.
450i(b)).
‘‘(ii) The program providing competitive grants for
risk management education established under section
524(a)(3) of the Federal Crop Insurance Act (7 U.S.C.
1524(a)(3)).
‘‘(iii) The program providing community food
project competitive grants established under section
25 of the Food and Nutrition Act of 2008 (7 U.S.C.
2034).
‘‘(iv) The program providing grants for beginning
farmer and rancher development established under section 7405 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 3319f).
‘‘(v) The program providing grants under section
1417(j) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(j)).
‘‘(vi) The program providing grants for Hispanicserving institutions established under section 1455 of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3241).
‘‘(vii) The program providing competitive grants
for international agricultural science and education

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programs under section 1459A of the National Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3292b).
‘‘(viii) The research and extension projects carried
out under section 1621 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5811).
‘‘(ix) The organic agriculture research and extension initiative established under section 1672B of the
Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 5925b).
‘‘(x) The specialty crop research initiative under
section 412 of the Agricultural Research, Extension,
and Education Reform Act of 1998.
‘‘(xi) The administration and management of the
Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative carried out
under section 1672C of the Food, Agriculture, Conservation, and Trade Act of 1990.
‘‘(xii) The research, extension, and education programs authorized by section 407 of the Agricultural
Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7627) relating to the competitiveness,
viability and sustainability of small- and medium-sized
dairy, livestock, and poultry operations.
‘‘(xiii) Other programs that are competitive programs, as determined by the Secretary.
‘‘(E) DIRECTOR.—The term ‘Director’ means the
Director of the Institute.
‘‘(F) FUNDAMENTAL RESEARCH.—The term ‘fundamental
research’ means research that—
‘‘(i) increases knowledge or understanding of the
fundamental aspects of phenomena and has the potential for broad application; and
‘‘(ii) has an effect on agriculture, food, nutrition,
or the environment.
‘‘(G) INSTITUTE.—The term ‘Institute’ means the
National Institute of Food and Agriculture established by
paragraph (2)(A).
‘‘(2) ESTABLISHMENT OF NATIONAL INSTITUTE OF FOOD AND
AGRICULTURE.—
‘‘(A) ESTABLISHMENT.—The Secretary shall establish
within the Department an agency to be known as the
‘National Institute of Food and Agriculture’.
‘‘(B) TRANSFER OF AUTHORITIES.—The Secretary shall
transfer to the Institute, effective not later than October
1, 2009, the authorities (including all budget authorities,
available appropriations, and personnel), duties, obligations, and related legal and administrative functions prescribed by law or otherwise granted to the Secretary, the
Department, or any other agency or official of the Department under—
‘‘(i) the capacity and infrastructure programs;
‘‘(ii) the competitive programs;
‘‘(iii) the research, education, economic, cooperative
State research programs, cooperative extension and
education programs, international programs, and other

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122 STAT. 2027

functions and authorities delegated by the Under Secretary to the Administrator of the Cooperative State
Research, Education, and Extension Service pursuant
to section 2.66 of title 7, Code of Federal Regulations
(or successor regulations); and
‘‘(iv) any and all other authorities administered
by the Administrator of the Cooperative State
Research, Education, and Extension Service.
‘‘(3) DIRECTOR.—
‘‘(A) IN GENERAL.—The Institute shall be headed by
a Director, who shall be an individual who is—
‘‘(i) a distinguished scientist; and
‘‘(ii) appointed by the President.
‘‘(B) SUPERVISION.—The Director shall report directly
to the Secretary, or the designee of the Secretary.
‘‘(C) FUNCTIONS OF THE DIRECTOR.—The Director
shall—
‘‘(i) serve for a 6-year term, subject to reappointment for an additional 6-year term;
‘‘(ii) periodically report to the Secretary, or the
designee of the Secretary, with respect to activities
carried out by the Institute; and
‘‘(iii) consult regularly with the Secretary, or the
designee of the Secretary, to ensure, to the maximum
extent practicable, that—
‘‘(I) research of the Institute is relevant to
agriculture in the United States and otherwise
serves the national interest; and
‘‘(II) the research of the Institute supplements
and enhances, and does not supplant, research
conducted or funded by other Federal agencies.
‘‘(D) COMPENSATION.—The Director shall receive basic
pay at a rate not to exceed the maximum amount of compensation payable to a member of the Senior Executive
Service under subsection (b) of section 5382 of title 5,
United States Code, except that the certification requirement in that subsection shall not apply to the compensation
of the Director.
‘‘(E) AUTHORITY AND RESPONSIBILITIES OF DIRECTOR.—
Except as otherwise specifically provided in this subsection,
the Director shall—
‘‘(i) exercise all of the authority provided to the
Institute by this subsection;
‘‘(ii) formulate and administer programs in accordance with policies adopted by the Institute, in coordination with the Under Secretary;
‘‘(iii) establish offices within the Institute;
‘‘(iv) establish procedures for the provision and
administration of grants by the Institute; and
‘‘(v) consult regularly with the Advisory Board.
‘‘(4) REGULATIONS.—The Institute shall have such authority
as is necessary to carry out this subsection, including the
authority to promulgate such regulations as the Institute considers to be necessary for governance of operations, organization, and personnel.
‘‘(5) ADMINISTRATION.—

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7 USC 1522 note.

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‘‘(A) IN GENERAL.—The Director shall organize offices
and functions within the Institute to administer fundamental and applied research and extension and education
programs.
‘‘(B) RESEARCH PRIORITIES.—The Director shall ensure
the research priorities established by the Under Secretary
through the Research, Education and Extension Office are
carried out by the offices and functions of the Institute,
where applicable.
‘‘(C) FUNDAMENTAL AND APPLIED RESEARCH.—The
Director shall—
‘‘(i) determine an appropriate balance between fundamental and applied research programs and functions
to ensure future research needs are met; and
‘‘(ii) designate staff, as appropriate, to assist in
carrying out this subparagraph.
‘‘(D) COMPETITIVELY FUNDED AWARDS.—The Director
shall—
‘‘(i) promote the use and growth of grants awarded
through a competitive process; and
‘‘(ii) designate staff, as appropriate, to assist in
carrying out this subparagraph.
‘‘(E) COORDINATION.—The Director shall ensure that
the offices and functions established under subparagraph
(A) are effectively coordinated for maximum efficiency.
‘‘(6) FUNDING.—
‘‘(A) IN GENERAL.—In addition to funds otherwise
appropriated to carry out each program administered by
the Institute, there are authorized to be appropriated such
sums as are necessary to carry out this subsection for
each fiscal year.
‘‘(B) ALLOCATION.—Funding made available under
subparagraph (A) shall be allocated according to recommendations contained in the roadmap described in section 7504 of the Food, Conservation, and Energy Act of
2008.’’.
(b) FUNCTIONS.—Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended—
(1) in paragraph (4), by striking ‘‘or’’ at the end;
(2) in paragraph (5), by striking the period at the end
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(6) the authority of the Secretary to establish in the
Department, under section 251—
‘‘(A) the position of Under Secretary of Agriculture
for Research, Education, and Economics;
‘‘(B) the Research, Education, and Extension Office;
and
‘‘(C) the National Institute of Food and Agriculture.’’.
(c) CONFORMING AMENDMENTS.—The following conforming
amendments shall take effect on October 1, 2009:
(1) Section 522(d)(2) of the Federal Crop Insurance Act
(7 U.S.C. 1522(d)(2)) is amended by striking ‘‘the Cooperative
State Research, Education, and Extension Service’’ and
inserting ‘‘the National Institute of Food and Agriculture’’.
(2) Section 524(a) of the Federal Crop Insurance Act (7
U.S.C. 1524(a)) is amended in each of paragraphs (1)(B) and

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122 STAT. 2029

(3)(A) by striking ‘‘the Cooperative State Research, Education,
and Extension Service’’ each place it appears and inserting
‘‘the National Institute of Food and Agriculture’’.
(3) Section 306(a)(11)(C) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(11)(C)) is amended
by striking ‘‘the Cooperative State Research, Education, and
Extension Service’’ and inserting ‘‘the National Institute of
Food and Agriculture’’.
(4) Section 5(b)(2)(E) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102–554)
is amended by striking ‘‘Cooperative Extension Service’’ and
inserting ‘‘National Institute of Food and Agriculture’’.
(5) Section 11(f)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2020(f)(1)) is amended by striking ‘‘Cooperative Extension Service’’ and inserting ‘‘National Institute of Food and
Agriculture’’.
(6) Section 502(h) of the Rural Development Act of 1972
(7 U.S.C. 2662(h)) is amended—
(A) in paragraph (1), by striking ‘‘Extension Service’’
and inserting ‘‘National Institute of Food and Agriculture’’;
and
(B) in paragraph (4), by striking ‘‘Extension Service
staff’’ and inserting ‘‘National Institute of Food and Agriculture staff’’.
(7) Section 7404(b)(1)(B) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107–
171) is amended by striking clause (vi) and inserting the following:
‘‘(vi) the National Institute of Food and Agriculture.’’.
(8) Section 1408(b)(4) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3123(b)(4)) is amended by striking ‘‘the Administrator of the
Cooperative State Research, Education, and Extension Service’’
and inserting ‘‘the Director of the National Institute of Food
and Agriculture’’.
(9) Section 2381(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 3125b(a)) is amended by
striking ‘‘Extension Service’’ and inserting ‘‘National Institute
of Food and Agriculture’’.
(10) The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended—
(A) in section 1424A(b) (7 U.S.C. 3174a(b)), by striking
‘‘the Cooperative State Research, Education, and Extension
Service’’ and inserting ‘‘the National Institute of Food and
Agriculture’’; and
(B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)), by
striking ‘‘the Cooperative State Research, Education, and
Extension Service’’ and inserting ‘‘the National Institute
of Food and Agriculture’’.
(11) Section 1587(a) of the Food Security Act of 1985 (7
U.S.C. 3175d(a)) is amended by striking ‘‘Extension Service’’
each place it appears and inserting ‘‘National Institute of Food
and Agriculture’’.
(12) Section 1444(b)(2)(A) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.

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PUBLIC LAW 110–246—JUNE 18, 2008
3221(b)(2)(A)) is amended by striking ‘‘Extension Service’’ and
inserting ‘‘National Institute of Food and Agriculture’’.
(13) Section 1473D(d) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3319d(d)) is amended by striking ‘‘the Cooperative State
Research Service, the Extension Service’’ and inserting ‘‘the
National Institute of Food and Agriculture’’.
(14) Section 1499(c) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5506(c)) is amended by striking
‘‘the Cooperative State Research Service’’ and all that follows
through ‘‘extension services;’’ and inserting ‘‘the National
Institute of Food and Agriculture, in conjunction with the
system of State agricultural experiment stations and State
and county cooperative extension services; the Economic
Research Service;’’.
(15) Section 1622 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5812) is amended—
(A) in subsection (a)(1), by striking ‘‘the Cooperative
State Research Service in close cooperation with the Extension Service’’ and inserting ‘‘the National Institute of Food
and Agriculture’’;
(B) in subsection (b)(1)—
(i) by striking subparagraphs (B) and (C) and
inserting the following:
‘‘(B) the National Institute of Food and Agriculture;’’;
and
(ii) by redesignating subparagraphs (D) through
(L) as subparagraphs (C) through (K), respectively.
(16) Section 1627(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5821(d)) is amended by striking
‘‘Extension Service’’ and inserting ‘‘National Institute of Food
and Agriculture’’.
(17) Section 1629 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5832) is amended—
(A) in subsection (b), in the first sentence, by striking
‘‘the Extension Service’’ and inserting ‘‘the National
Institute of Food and Agriculture’’; and
(B) in subsection (h), by striking ‘‘Extension Service’’
and inserting ‘‘National Institute of Food and Agriculture’’.
(18) Section 1638(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5852(b)) is amended—
(A) in paragraph (3), by striking ‘‘Cooperative State
Research Service’’ and inserting ‘‘National Institute of Food
and Agriculture’’; and
(B) in paragraph (5), by striking ‘‘Cooperative State
Research Service’’ and inserting ‘‘National Institute of Food
and Agriculture’’.
(19) Section 1640(a)(2) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5854(a)(2)) is amended
by striking ‘‘the Administrator of the Extension Service, the
Administrator of the Cooperative State Research Service’’ and
inserting ‘‘the Director of the National Institute of Food and
Agriculture’’.
(20) Section 1641(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5855(a)) is amended—

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122 STAT. 2031

(A) in paragraph (2), by striking ‘‘Cooperative State
Research Service’’ and inserting ‘‘National Institute of Food
and Agriculture’’; and
(B) in paragraph (4,) by striking ‘‘Extension Service’’
and inserting ‘‘National Institute of Food and Agriculture’’.
(21) Section 1668(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5921(b)) is amended by striking
‘‘Cooperative State Research, Education, and Extension Service’’
and inserting ‘‘National Institute of Food and Agriculture’’.
(22) Section 1670(a)(4) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is amended
by striking ‘‘the Administrator of the Cooperative State
Research, Education, and Extension Service’’ and inserting ‘‘the
Director of the National Institute of Food and Agriculture’’.
(23) Section 1677(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5930(a)) is amended by striking
‘‘Extension Service’’ and inserting ‘‘National Institute of Food
and Agriculture’’.
(24) Section 2122(b)(1) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6521(b)(1)) is amended
by striking ‘‘Extension Service’’ and inserting ‘‘National
Institute of Food and Agriculture’’.
(25) Section 2371 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6601) is amended—
(A) in subsection (a), by striking ‘‘Extension Service’’
and inserting ‘‘National Institute of Food and Agriculture’’;
and
(B) in subsection (c)(3), by striking ‘‘Service’’ and
inserting ‘‘System’’.
(26) Section 2377(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6615(a)) is amended by striking
‘‘Extension Service’’ and inserting ‘‘National Institute of Food
and Agriculture’’.
(27) Section 212(a)(2)(A) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6912(a)(2)(A)) is amended
by striking ‘‘251(d),’’ and inserting ‘‘251(f),’’.
(28) Section 537 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7446) is amended in each
of subsections (a)(2) and (b)(3)(B)(i) by striking ‘‘Cooperative
State Research, Education, and Extension Service’’ and
inserting ‘‘cooperative extension’’.
(29) Section 101(b)(2) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7611(b)(2))
is amended by striking ‘‘Cooperative State Research, Education,
and Extension Service’’ and inserting ‘‘National Institute of
Food and Agriculture’’.
(30) Section 103(a) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613(a)) is
amended—
(A) in the subsection heading, by striking ‘‘Cooperative
State Research, Education, and Extension Service’’ and
inserting ‘‘National Institute of Food and Agriculture’’; and
(B) in each of paragraphs (1) and (2)(A), by striking
‘‘the Cooperative State Research, Education, and Extension
Service’’ and inserting ‘‘the National Institute of Food and
Agriculture’’.

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PUBLIC LAW 110–246—JUNE 18, 2008
(31) Section 407(c) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7627(c)) is amended
by striking ‘‘the Cooperative State Research, Education, and
Extension Service’’ and inserting ‘‘the National Institute of
Food and Agriculture’’.
(32) Section 410(a) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7630(a)) is
amended by striking ‘‘the Administrator of the Cooperative
State Research, Education, and Extension Service’’ and
inserting ‘‘the Director of the National Institute of Food and
Agriculture’’.
(33) Section 307(g)(5) of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking
‘‘Administrator of the Cooperative State Research, Education,
and Extension Service’’ and inserting ‘‘Director of the National
Institute of Food and Agriculture’’.
(34) Section 5(a) of the Renewable Resources Extension
Act of 1978 (16 U.S.C. 1674a(a)) is amended by striking ‘‘Extension Service’’ and inserting ‘‘National Institute of Food and
Agriculture’’.
(35) Section 6(b) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2103b(b)) is amended by striking ‘‘the
Cooperative State Research, Education, and Extension Service,
may provide technical, financial, and related assistance to State
foresters, equivalent State officials, or Cooperative Extension
officials’’ and inserting ‘‘the National Institute of Food and
Agriculture, may provide technical, financial, and related assistance to State foresters, equivalent State officials, or cooperative
extension officials’’.
(36) Section 9(g)(2)(A)(viii) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2105(g)(2)(A)(viii)) is amended
by striking ‘‘Extension Service’’ and inserting ‘‘National
Institute of Food and Agriculture’’.
(37) Section 19(b)(1)(B)(i) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2113(b)(1)(B)(i)) is amended
by striking ‘‘Extension Service’’ and inserting ‘‘National
Institute of Food and Agriculture’’.
(38) Section 1261(c)(4) of the Food Security Act of 1985
(16 U.S.C. 3861(c)(4)) is amended by striking ‘‘Extension
Service’’ and inserting ‘‘National Institute of Food and Agriculture’’.
(39) Section 105(a) of the Africa: Seeds of Hope Act of
1998 (22 U.S.C. 2293 note; Public Law 105–385) is amended
by striking ‘‘the Cooperative State, Research, Education, and
Extension Service (CSREES)’’ and inserting ‘‘the National
Institute of Food and Agriculture’’.
(40) Section 307(a)(4) of the National Aeronautic and Space
Administration Authorization Act of 2005 (42 U.S.C.
16657(a)(4)) is amended by striking subparagraph (B) and
inserting the following:
‘‘(B) the program and structure of, peer review process
of, management of conflicts of interest by, compensation
of reviewers of, and the effects of compensation on reviewer
efficiency and quality within, the National Institute of Food
and Agriculture of the Department of Agriculture;’’.

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122 STAT. 2033

PART III—NEW GRANT AND RESEARCH
PROGRAMS
SEC. 7521. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF
ANTIBIOTIC-RESISTANT BACTERIA.

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

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SEC. 7522. FARM AND RANCH STRESS ASSISTANCE NETWORK.

7 USC 3202.

Applicability.

7 USC 5936.

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

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122 STAT. 2034
7 USC 415–1.

Applicability.

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21 USC 113a
note.
Permits.

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SEC. 7523. SEED DISTRIBUTION.

(a) IN GENERAL.—The Secretary shall make competitive grants
to eligible entities to carry out a seed distribution program to
administer and maintain the distribution of vegetable seeds donated
by commercial seed companies.
(b) PURPOSES.—The purposes of this program include—
(1) the distribution of seeds donated by commercial seed
companies free-of-charge to appropriate—
(A) individuals;
(B) groups;
(C) institutions;
(D) governmental and nongovernmental organizations;
and
(E) such other entities as the Secretary may designate;
(2) distribution of seeds to underserved communities, such
as communities that experience—
(A) limited access to affordable fresh vegetables;
(B) a high rate of hunger or food insecurity; or
(C) severe or persistent poverty.
(c) ADMINISTRATION.—Paragraphs (4), (7), (8), and (11)(B) of
subsection (b) of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i) shall apply with respect to the making
of grants under this section.
(d) SELECTION.—An eligible entity selected to receive a grant
under subsection (a) shall have—
(1) expertise regarding the distribution of vegetable seeds
donated by commercial seed companies; and
(2) the ability to achieve the purpose of the seed distribution program.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2008 through 2012.
SEC. 7524. LIVE VIRUS FOOT AND MOUTH DISEASE RESEARCH.

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

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122 STAT. 2035

SEC. 7525. NATURAL PRODUCTS RESEARCH PROGRAM.

7 USC 5937.

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

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SEC. 7526. SUN GRANT PROGRAM.

7 USC 8114.

(a) ESTABLISHMENT.—The Secretary shall establish and carry
out a program to provide grants to the sun grant centers and
subcenter specified in subsection (b)—
(1) to enhance national energy security through the
development, distribution, and implementation of biobased
energy technologies;
(2) to promote diversification in, and the environmental
sustainability of, agricultural production in the United States
through biobased energy and product technologies;
(3) to promote economic diversification in rural areas of
the United States through biobased energy and product technologies; and
(4) to enhance the efficiency of bioenergy and biomass
research and development programs through improved
coordination and collaboration among—
(A) the Department of Agriculture;
(B) the Department of Energy; and
(C) land-grant colleges and universities.
(b) GRANTS.—
(1) IN GENERAL.—The Secretary shall use amounts made
available under subsection (g) to provide grants to each of
the following:
(A) NORTH-CENTRAL CENTER.—A north-central sun
grant center at South Dakota State University for the

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State listing.

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PUBLIC LAW 110–246—JUNE 18, 2008
region composed of the States of Illinois, Indiana, Iowa,
Minnesota, Montana, Nebraska, North Dakota, South
Dakota, Wisconsin, and Wyoming.
(B) SOUTHEASTERN CENTER.—A southeastern sun grant
center at the University of Tennessee at Knoxville for
the region composed of—
(i) the States of Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina,
Tennessee, and Virginia;
(ii) the Commonwealth of Puerto Rico; and
(iii) the United States Virgin Islands.
(C) SOUTH-CENTRAL CENTER.—A south-central sun
grant center at Oklahoma State University for the region
composed of the States of Arkansas, Colorado, Kansas,
Louisiana, Missouri, New Mexico, Oklahoma, and Texas.
(D) WESTERN CENTER.—A western sun grant center
at Oregon State University for the region composed of—
(i) the States of Alaska, Arizona, California,
Hawaii, Idaho, Nevada, Oregon, Utah, and Washington; and
(ii) insular areas (as defined in section 1404 of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103 (other than
the insular areas referred to in clauses (ii) and (iii)
of subparagraph (B))).
(E) NORTHEASTERN CENTER.—A northeastern sun grant
center at Cornell University for the region composed of
the States of Connecticut, Delaware, Massachusetts, Maryland, Maine, Michigan, New Hampshire, New Jersey, New
York, Ohio, Pennsylvania, Rhode Island, Vermont, and
West Virginia.
(F) WESTERN INSULAR PACIFIC SUBCENTER.—A western
insular Pacific sun grant subcenter at the University of
Hawaii for the region of Alaska, Hawaii, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, the Federated States of Micronesia, the Republic
of the Marshall Islands, and the Republic of Palau.
(2) MANNER OF DISTRIBUTION.—
(A) CENTERS.—In providing any funds made available
under subsection (g), the Secretary shall distribute the
grants in equal amounts to the sun grant centers described
in subparagraphs (A) through (E) of paragraph (1).
(B) SUBCENTER.—The sun grant center described in
paragraph (1)(D) shall allocate a portion of the funds
received under paragraph (1) to the subcenter described
in paragraph (1)(F) pursuant to guidance issued by the
Secretary.
(3) FAILURE TO COMPLY WITH REQUIREMENTS.—If the Secretary finds on the basis of a review of the annual report
required under subsection (f) or on the basis of an audit of
a sun grant center or subcenter conducted by the Secretary
that the center or subcenter has not complied with the requirements of this section, the sun grant center or subcenter shall
be ineligible to receive further grants under this section for
such period of time as may be prescribed by the Secretary.
(c) USE OF FUNDS.—
(1) COMPETITIVE GRANTS.—

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122 STAT. 2037

(A) IN GENERAL.—A sun grant center or subcenter shall
use 75 percent of the funds described in subsection (b)
to provide competitive grants to entities that are—
(i) eligible to receive grants under subsection (b)(7)
of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i(b)(7)); and
(ii) located in the region covered by the sun grant
center or subcenter.
(B) ACTIVITIES.—Grants described in subparagraph (A)
shall be used by the grant recipient to conduct, in a manner
consistent with the purposes described in subsection (a),
multi-institutional and multistate—
(i) research, extension, and education programs
on technology development; and
(ii) integrated research, extension, and education
programs on technology implementation.
(C) FUNDING ALLOCATION.—Of the amount of funds
that is used to provide grants under subparagraph (A),
the sun grant center or subcenter shall use—
(i) not less than 30 percent of the funds to carry
out the programs described in subparagraph (B)(i); and
(ii) not less than 30 percent of the funds to carry
out the programs described in subparagraph (B)(ii).
(D) ADMINISTRATION.—
(i) PEER AND MERIT REVIEW.—In making grants
under this paragraph, a sun grant center or subcenter
shall—
(I) seek and accept proposals for grants;
(II) determine the relevance and merit of proposals through a system of peer review similar
to that established by the Secretary pursuant to
section 103 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7613); and
(III) award grants on the basis of merit,
quality, and relevance to advancing the purposes
of this section.
(ii) PRIORITY.—A sun grant center or subcenter
shall give a higher priority to programs that are consistent with the plan approved by the Secretary under
subsection (d).
(iii) TERM.—A grant awarded by a sun grant center
or subcenter shall have a term that does not exceed
5 years.
(iv) MATCHING FUNDS REQUIRED.—
(I) IN GENERAL.—Except as provided in subclauses (II) and (III), as a condition of receiving
a grant under this paragraph, the sun grant center
or subcenter shall require that not less than 20
percent of the cost of an activity described in
subparagraph (B) be matched with funds,
including in-kind contributions, from a non-Federal source.
(II) EXCLUSION.—Subclause (I) shall not apply
to fundamental research (as defined in subsection

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122 STAT. 2038

PUBLIC LAW 110–246—JUNE 18, 2008

(f)(1) of section 251 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971)
(as added by section 7511(a)(4)).
(III) REDUCTION.—The sun grant center or
subcenter may reduce or eliminate the requirement for non-Federal funds under subclause (I)
for applied research (as defined in subsection (f)(1)
of section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971) (as
added by section 7511(a)(4)) if the sun grant center
or subcenter determines that the reduction is necessary and appropriate pursuant to guidance
issued by the Secretary.
(v) BUILDINGS AND FACILITIES.—Funds made available for grants shall not be used for the construction
of a new building or facility or the acquisition, expansion, remodeling, or alteration of an existing building
or facility (including site grading and improvement
and architect fees).
(vi) LIMITATION ON INDIRECT COSTS.—A sun grant
center or subcenter may not recover the indirect costs
of making grants under subparagraph (A).
(2) ADMINISTRATIVE EXPENSES.—A sun grant center or subcenter may use up to 4 percent of the funds described in
subsection (b) to pay administrative expenses incurred in carrying out paragraph (1).
(3) RESEARCH, EXTENSION AND EDUCATIONAL ACTIVITIES.—
The sun grant centers and subcenter shall use the remainder
of the funds described in subsection (b) to conduct, in a manner
consistent with the purposes described in subsection (a), multiinstitutional and multistate—
(A) research, extension, and educational programs on
technology development; and
(B) integrated research, extension, and educational programs on technology implementation.
(d) PLAN FOR RESEARCH ACTIVITIES TO BE FUNDED.—
(1) IN GENERAL.—Subject to the availability of funds under
subsection (g), and in cooperation with land-grant colleges and
universities and private industry in accordance with paragraph
(2), the sun grant centers and subcenter shall jointly develop
and submit to the Secretary for approval a plan for addressing
the bioenergy, biomass, and gasification research priorities of
the Department of Agriculture and the Department of Energy
at the State and regional levels.
(2) GASIFICATION COORDINATION.—With respect to gasification research activity, the sun grant centers and subcenter
shall coordinate planning with land-grant colleges and universities in their respective regions that have ongoing research
activities in that area.
(3) FUNDING.—Funds described in subsection (c)(2) shall
be available to carry out planning coordination under paragraph
(1).
(4) USE OF PLAN.—The sun grant centers and subcenter
shall use the plan described in paragraph (1) in making grants
under subsection (c)(1).
(e) GRANT INFORMATION ANALYSIS CENTER.—The sun grant
centers and subcenter shall maintain a Sun Grant Information

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122 STAT. 2039

Analysis Center at the sun grant center specified in subsection
(b)(1)(A) to provide the sun grant centers and subcenter with analysis and data management support.
(f) ANNUAL REPORTS.—Not later than 90 days after the end
of each fiscal year, a sun grant center or subcenter receiving a
grant under this section shall submit to the Secretary a report
that describes the policies, priorities, and operations of the program
carried out by the center or subcenter during the fiscal year,
including—
(1) the results of all peer and merit review procedures
conducted pursuant to subsection (c)(1)(D)(i); and
(2) a description of progress made in facilitating the priorities described in subsection (d)(1).
(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $75,000,000 for each
of fiscal years 2008 through 2012, of which not more than $4,000,000
for each fiscal year shall be made available to carry out subsection
(e).

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SEC. 7527. STUDY AND REPORT ON FOOD DESERTS.

(a) DEFINITION OF FOOD DESERT.—In this section, the term
‘‘food desert’’ means an area in the United States with limited
access to affordable and nutritious food, particularly such an area
composed of predominantly lower-income neighborhoods and
communities.
(b) STUDY AND REPORT.—The Secretary shall carry out a study
of, and prepare a report on, food deserts.
(c) CONTENTS.—The study and report shall—
(1) assess the incidence and prevalence of food deserts;
(2) identify—
(A) characteristics and factors causing and influencing
food deserts; and
(B) the effect on local populations of limited access
to affordable and nutritious food; and
(3) provide recommendations for addressing the causes and
effects of food deserts through measures that include—
(A) community and economic development initiatives;
(B) incentives for retail food market development,
including supermarkets, small grocery stores, and farmers’
markets; and
(C) improvements to Federal food assistance and nutrition education programs.
(d) COORDINATION WITH OTHER AGENCIES AND ORGANIZATIONS.—The Secretary shall conduct the study under this section
in coordination and consultation with—
(1) the Secretary of Health and Human Services;
(2) the Administrator of the Small Business Administration;
(3) the Institute of Medicine; and
(4) representatives of appropriate businesses, academic
institutions, and nonprofit and faith-based organizations.
(e) SUBMISSION TO CONGRESS.—Not later than 1 year after
the date of enactment of this Act, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the
Senate the report prepared under this section, including the findings
and recommendations described in subsection (c).

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(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $500,000.
Effective date.

SEC. 7528. DEMONSTRATION PROJECT AUTHORITY FOR TEMPORARY
POSITIONS.

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

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7 USC 5938.

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

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

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122 STAT. 2041

TITLE VIII—FORESTRY
Subtitle A—Amendments to Cooperative
Forestry Assistance Act of 1978
SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION.

Section 2 of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2101) is amended—
(1) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (b) the following new subsections:
‘‘(c) PRIORITIES.—In allocating funds appropriated or otherwise
made available under this Act, the Secretary shall focus on the
following national private forest conservation priorities, notwithstanding other priorities specified elsewhere in this Act:
‘‘(1) Conserving and managing working forest landscapes
for multiple values and uses.
‘‘(2) Protecting forests from threats, including catastrophic
wildfires, hurricanes, tornados, windstorms, snow or ice storms,
flooding, drought, invasive species, insect or disease outbreak,
or development, and restoring appropriate forest types in
response to such threats.
‘‘(3) Enhancing public benefits from private forests,
including air and water quality, soil conservation, biological
diversity, carbon storage, forest products, forestry-related jobs,
production of renewable energy, wildlife, wildlife corridors and
wildlife habitat, and recreation.
‘‘(d) REPORTING REQUIREMENT.—Not later than September 30,
2011, the Secretary shall submit to Congress a report describing
how funds were used under this Act, and through other programs
administered by the Secretary, to address the national priorities
specified in subsection (c) and the outcomes achieved in meeting
the national priorities.’’.
SEC. 8002. LONG-TERM STATE-WIDE ASSESSMENTS AND STRATEGIES
FOR FOREST RESOURCES.

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

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

16 USC 2101a.

‘‘(a) ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.—
For a State to be eligible to receive funds under the authorities
of this Act, the State forester of that State or equivalent State
official shall develop and submit to the Secretary, not later than
two years after the date of enactment of the Food, Conservation,
and Energy Act of 2008, the following:
‘‘(1) A State-wide assessment of forest resource conditions,
including—
‘‘(A) the conditions and trends of forest resources in
that State;

Deadline.

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‘‘(B) the threats to forest lands and resources in that
State consistent with the national priorities specified in
section 2(c);
‘‘(C) any areas or regions of that State that are a
priority; and
‘‘(D) any multi-State areas that are a regional priority.
‘‘(2) A long-term State-wide forest resource strategy,
including—
‘‘(A) strategies for addressing threats to forest
resources in the State outlined in the assessment required
by paragraph (1); and
‘‘(B) a description of the resources necessary for the
State forester or equivalent State official from all sources
to address the State-wide strategy.
‘‘(b) UPDATING.—At such times as the Secretary determines
to be necessary, the State forester or equivalent State official shall
update and resubmit to the Secretary the State-wide assessment
and State-wide strategy required by subsection (a).
‘‘(c) COORDINATION.—In developing or updating the State-wide
assessment and State-wide strategy required by subsection (a),
the State Forester or equivalent State official shall coordinate
with—
‘‘(1) the State Forest Stewardship Coordinating Committee
established for the State under section 19(b);
‘‘(2) the State wildlife agency, with respect to strategies
contained in the State wildlife action plans;
‘‘(3) the State Technical Committee;
‘‘(4) applicable Federal land management agencies; and
‘‘(5) for purposes of the Forest Legacy Program under section 7, the State lead agency designated by the Governor.
‘‘(d) INCORPORATION OF OTHER PLANS.—In developing or
updating the State-wide assessment and State-wide strategy
required by subsection (a), the State forester or equivalent State
official shall incorporate any forest management plan of the State,
including community wildfire protection plans and State wildlife
action plans.
‘‘(e) SUFFICIENCY.—Once approved by the Secretary, a Statewide assessment and State-wide strategy developed under subsection (a) shall be deemed to be sufficient to satisfy all relevant
State planning and assessment requirements under this Act.
‘‘(f) FUNDING.—
‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section up
to $10,000,000 for each of fiscal years 2008 through 2012.
‘‘(2) ADDITIONAL FUNDING SOURCES.—In addition to the
funds appropriated for a fiscal year pursuant to the authorization of appropriations in paragraph (1) to carry out this section,
the Secretary may use any other funds made available for
planning under this Act to carry out this section, except that
the total amount of combined funding used to carry out this
section may not exceed $10,000,000 in any fiscal year.
‘‘(g) ANNUAL REPORT ON USE OF FUNDS.—The State forester
or equivalent State official shall submit to the Secretary an annual
report detailing how funds made available to the State under this
Act are being used.’’.

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

(a) FINDINGS.—Congress finds that—
(1) the Forest Service projects that, by calendar year 2030,
approximately 44,000,000 acres of privately-owned forest land
will be developed throughout the United States;
(2) public access to parcels of privately-owned forest land
for outdoor recreational activities, including hunting, fishing,
and trapping, has declined and, as a result, participation in
those activities has also declined in cases in which public access
is not secured;
(3) rising rates of obesity and other public health problems
relating to the inactivity of the citizens of the United States
have been shown to be ameliorated by improving public access
to safe and attractive areas for outdoor recreation;
(4) in rapidly-growing communities of all sizes throughout
the United States, remaining parcels of forest land play an
essential role in protecting public water supplies;
(5) forest parcels owned by local governmental entities
and nonprofit organizations are providing important demonstration sites for private landowners to learn forest management
techniques;
(6) throughout the United States, communities of diverse
types and sizes are deriving significant financial and community benefits from managing forest land owned by local governmental entities for timber and other forest products; and
(7) there is an urgent need for local governmental entities
to be able to leverage financial resources in order to purchase
important parcels of privately-owned forest land as the parcels
are offered for sale.
(b) COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.—The Cooperative Forestry Assistance Act of 1978 is amended
by inserting after section 7 (16 U.S.C. 2103c) the following new
section:

16 USC 2103d
note.

‘‘SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

16 USC 2103d.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a
local governmental entity, Indian tribe, or nonprofit organization that owns or acquires a parcel under the program.
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
‘‘(3) LOCAL GOVERNMENTAL ENTITY.—The term ‘local governmental entity’ includes any municipal government, county
government, or other local government body with jurisdiction
over local land use decisions.
‘‘(4) NONPROFIT ORGANIZATION.—The term ‘nonprofit
organization’ means any organization that—
‘‘(A) is described in section 170(h)(3) of the Internal
Revenue Code of 1986; and
‘‘(B) operates in accordance with 1 or more of the
purposes specified in section 170(h)(4)(A) of that Code.
‘‘(5) PROGRAM.—The term ‘Program’ means the community
forest and open space conservation program established under
subsection (b).

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‘‘(6) SECRETARY.—The term ‘Secretary’ means the Secretary
of Agriculture, acting through the Chief of the Forest Service.
‘‘(b) ESTABLISHMENT.—The Secretary shall establish a program,
to be known as the ‘community forest and open space conservation
program’.
‘‘(c) GRANT PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary may award grants to
eligible entities to acquire private forest land, to be owned
in fee simple, that—
‘‘(A) are threatened by conversion to nonforest uses;
and
‘‘(B) provide public benefits to communities, including—
‘‘(i) economic benefits through sustainable forest
management;
‘‘(ii) environmental benefits, including clean water
and wildlife habitat;
‘‘(iii) benefits from forest-based educational programs, including vocational education programs in forestry;
‘‘(iv) benefits from serving as models of effective
forest stewardship for private landowners; and
‘‘(v) recreational benefits, including hunting and
fishing.
‘‘(2) FEDERAL COST SHARE.—An eligible entity may receive
a grant under the Program in an amount equal to not more
than 50 percent of the cost of acquiring 1 or more parcels,
as determined by the Secretary.
‘‘(3) NON-FEDERAL SHARE.—As a condition of receipt of the
grant, an eligible entity that receives a grant under the Program shall provide, in cash, donation, or in kind, a non-Federal
matching share in an amount that is at least equal to the
amount of the grant received.
‘‘(4) APPRAISAL OF PARCELS.—To determine the non-Federal
share of the cost of a parcel of privately-owned forest land
under paragraph (2), an eligible entity shall require appraisals
of the land that comply with the Uniform Appraisal Standards
for Federal Land Acquisitions developed by the Interagency
Land Acquisition Conference.
‘‘(5) APPLICATION.—An eligible entity that seeks to receive
a grant under the Program shall submit to the State forester
or equivalent official (or in the case of an Indian tribe, an
equivalent official of the Indian tribe) an application that
includes—
‘‘(A) a description of the land to be acquired;
‘‘(B) a forest plan that provides—
‘‘(i) a description of community benefits to be
achieved from the acquisition of the private forest land;
and
‘‘(ii) an explanation of the manner in which any
private forest land to be acquired using funds from
the grant will be managed; and
‘‘(C) such other relevant information as the Secretary
may require.
‘‘(6) EFFECT ON TRUST LAND.—
‘‘(A) INELIGIBILITY.—The Secretary shall not provide
a grant under the Program for any project on land held

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in trust by the United States (including Indian reservations
and allotment land).
‘‘(B) ACQUIRED LAND.—No land acquired using a grant
provided under the Program shall be converted to land
held in trust by the United States on behalf of any Indian
tribe.
‘‘(7) APPLICATIONS TO SECRETARY.—The State forester or
equivalent official (or in the case of an Indian tribe, an equivalent official of the Indian tribe) shall submit to the Secretary
a list that includes a description of each project submitted
by an eligible entity at such times and in such form as the
Secretary shall prescribe.
‘‘(d) DUTIES OF ELIGIBLE ENTITY.—An eligible entity shall provide public access to, and manage, forest land acquired with a
grant under this section in a manner that is consistent with the
purposes for which the land was acquired under the Program.
‘‘(e) PROHIBITED USES.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), an
eligible entity that acquires a parcel under the Program shall
not sell the parcel or convert the parcel to nonforest use.
‘‘(2) REIMBURSEMENT OF FUNDS.—An eligible entity that
sells or converts to nonforest use a parcel acquired under the
Program shall pay to the Federal Government an amount equal
to the greater of the current sale price, or current appraised
value, of the parcel.
‘‘(3) LOSS OF ELIGIBILITY.—An eligible entity that sells or
converts a parcel acquired under the Program shall not be
eligible for additional grants under the Program.
‘‘(f) STATE ADMINISTRATION AND TECHNICAL ASSISTANCE.—The
Secretary may allocate not more than 10 percent of all funds made
available to carry out the Program for each fiscal year to State
foresters or equivalent officials (including equivalent officials of
Indian tribes) for Program administration and technical assistance.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.’’.
SEC. 8004. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA,
THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE
REPUBLIC OF PALAU.

Section 13(d)(1) of the Cooperative Forestry Act of 1978 (16
U.S.C. 2109(d)(1)) is amended by striking ‘‘the Trust Territory of
the Pacific Islands,’’ and inserting ‘‘the Federated States of Micronesia, the Republic of the Marshall Islands, the Republic of Palau,’’.

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SEC. 8005. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE.

Section 19 of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2113) is amended by striking subsection (a) and inserting
the following new subsection:
‘‘(a) FOREST RESOURCE COORDINATING COMMITTEE.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish a committee, to be known as the ‘Forest Resource Coordinating Committee’ (in this section referred to as the ‘Coordinating Committee’), to coordinate nonindustrial private forestry activities
within the Department of Agriculture and with the private
sector.

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(2) COMPOSITION.—The Coordinating Committee shall be
composed of the following:
‘‘(A) The Chief of the Forest Service.
‘‘(B) The Chief of the Natural Resources Conservation
Service.
‘‘(C) The Director of the Farm Service Agency.
‘‘(D) The Director of the National Institute of Food
and Agriculture.
‘‘(E) Non-Federal representatives appointed by the Secretary to 3 year terms, although initial appointees shall
have staggered terms, including the following persons:
‘‘(i) At least three State foresters or equivalent
State officials from geographically diverse regions of
the United States.
‘‘(ii) A representative of a State fish and wildlife
agency.
‘‘(iii) An owner of nonindustrial private forest land.
‘‘(iv) A forest industry representative.
‘‘(v) A conservation organization representative.
‘‘(vi) A land-grant university or college representative.
‘‘(vii) A private forestry consultant.
‘‘(viii) A representative from a State Technical
Committee established under section 1261 of the Food
Security Act of 1985 (16 U.S.C. 3861).
‘‘(F) Such other persons as determined by the Secretary
to be appropriate.
‘‘(3) CHAIRPERSON.—The Chief of the Forest Service shall
serve as chairperson of the Coordinating Committee.
‘‘(4) DUTIES.—The Coordinating Committee shall—
‘‘(A) provide direction and coordination of actions
within the Department of Agriculture, and coordination
with State agencies and the private sector, to effectively
address the national priorities specified in section 2(c),
with specific focus owners of nonindustrial private forest
land;
‘‘(B) clarify individual agency responsibilities of each
agency represented on the Coordinating Committee concerning the national priorities specified in section 2(c),
with specific focus on nonindustrial private forest land;
‘‘(C) provide advice on the allocation of funds, including
the competitive funds set-aside by sections 13A and 13B;
and
‘‘(D) assist the Secretary in developing and reviewing
the report required by section 2(d).
‘‘(5) MEETING.—The Coordinating Committee shall meet
annually to discuss progress in addressing the national priorities specified in section 2(c) and issues regarding nonindustrial
private forest land.
‘‘(6) COMPENSATION.—
‘‘(A) FEDERAL MEMBERS.—Members of the Coordinating
Committee who are full-time officers or employees of the
United States shall receive no additional pay, allowances,
or benefits by reason of their service on the Coordinating
Committee.
‘‘(B) NON-FEDERAL MEMBERS.—Non-federal members of
the Coordinating Committee shall serve without pay, but

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may be reimbursed for reasonable costs incurred while
performing their duties on behalf of the Coordinating Committee.’’.
SEC. 8006. CHANGES TO STATE FOREST STEWARDSHIP COORDINATING
COMMITTEES.

Section 19(b) of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2113(b)) is amended—
(1) in paragraph (1)(B)(ii)—
(A) by striking ‘‘and’’ at the end of subclause (VII);
and
(B) by adding at the end the following new subclause:
‘‘(IX) the State Technical Committee.’’.
(2) in paragraph (2)(C), by striking ‘‘a Forest Stewardship
Plan under paragraph (3)’’ and inserting ‘‘the State-wide assessment and strategy regarding forest resource conditions under
section 2A’’;
(3) by striking paragraphs (3) and (4); and
(4) by redesignating paragraphs (5) and (6) as paragraphs
(3) and (4), respectively.
SEC. 8007. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY ASSISTANCE ACT OF 1978.

The Cooperative Forestry Assistance Act of 1978 is amended
by inserting after section 13 (16 U.S.C. 2109) the following new
section:
‘‘SEC. 13A. COMPETITIVE ALLOCATION OF FUNDS TO STATE FORESTERS OR EQUIVALENT STATE OFFICIALS.

16 USC 2109a.

‘‘(a) COMPETITION.—Beginning not later than 3 years after the
date of the enactment of the Food, Conservation, and Energy Act
of 2008, the Secretary shall competitively allocate a portion, to
be determined by the Secretary, of the funds available under this
Act to State foresters or equivalent State officials.
‘‘(b) DETERMINATION.—In determining the competitive allocation of funds under subsection (a), the Secretary shall consult
with the Forest Resource Coordinating Committee established by
section 19(a).
‘‘(c) PRIORITY.—The Secretary shall give priority for funding
to States for which the long-term State-wide forest resource strategies submitted under section 2A(a)(2) will best promote the national
priorities specified in section 2(c).’’.

Deadline.

SEC. 8008. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE
FOREST INNOVATION PARTNERSHIP PROJECTS.

The Cooperative Forestry Assistance Act of 1978 is amended
by inserting after section 13A, as added by section 8006, the following new section:

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‘‘SEC. 13B. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE
FOREST INNOVATION PARTNERSHIP PROJECTS.

16 USC 2109b.

‘‘(a)
COOPERATIVE
FOREST
INNOVATION
PARTNERSHIP
PROJECTS.—The Secretary may competitively allocate not more than
5 percent of the funds made available under this Act to support
innovative national, regional, or local education, outreach, or technology transfer projects that the Secretary determines would
substantially increase the ability of the Department of Agriculture
to address the national priorities specified in section 2(c).

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PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(b) ELIGIBILITY.—Notwithstanding the eligibility limitations
contained in this Act, any State or local government, Indian tribe,
land-grant college or university, or private entity shall be eligible
to compete for funds to be competitively allocated under subsection
(a).
‘‘(c) COST-SHARE REQUIREMENT.—In carrying out subsection (a),
the Secretary shall not cover more than 50 percent of the total
cost of a project under such subsection. In calculating the total
cost of a project and contributions made with regard to the project,
the Secretary shall include in-kind contributions.’’.

Subtitle B—Cultural and Heritage
Cooperation Authority

Native
Americans.

25 USC 3051.

SEC. 8101. PURPOSES.

The purposes of this subtitle are—
(1) to authorize the reburial of human remains and cultural
items on National Forest System land, including human
remains and cultural items repatriated under the Native American Graves Protection and Repatriation Act (25 U.S.C. 3001
et seq.);
(2) to prevent the unauthorized disclosure of information
regarding reburial sites, including the quantity and identity
of human remains and cultural items on sites and the location
of sites;
(3) to authorize the Secretary of Agriculture to ensure
access to National Forest System land, to the maximum extent
practicable, by Indians and Indian tribes for traditional and
cultural purposes;
(4) to authorize the Secretary to provide forest products,
without consideration, to Indian tribes for traditional and cultural purposes;
(5) to authorize the Secretary to protect the confidentiality
of certain information, including information that is culturally
sensitive to Indian tribes;
(6) to increase the availability of Forest Service programs
and resources to Indian tribes in support of the policy of the
United States to promote tribal sovereignty and self-determination; and
(7) to strengthen support for the policy of the United States
of protecting and preserving the traditional, cultural, and
ceremonial rites and practices of Indian tribes, in accordance
with Public Law 95–341 (commonly known as the American
Indian Religious Freedom Act; 42 U.S.C. 1996).

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25 USC 3052.

SEC. 8102. DEFINITIONS.

In this subtitle:
(1) ADJACENT SITE.—The term ‘‘adjacent site’’ means a site
that borders a boundary line of National Forest System land.
(2) CULTURAL ITEMS.—The term ‘‘cultural items’’ has the
meaning given the term in section 2 of the Native American
Graves Protection and Repatriation Act (25 U.S.C. 3001), except
that the term does not include human remains.
(3) HUMAN REMAINS.—The term ‘‘human remains’’ means
the physical remains of the body of a person of Indian ancestry.

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(4) INDIAN.—The term ‘‘Indian’’ means an individual who
is a member of an Indian tribe.
(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ means any
Indian or Alaska Native tribe, band, nation, pueblo, village,
or other community the name of which is included on a list
published by the Secretary of the Interior pursuant to section
104 of the Federally Recognized Indian Tribe List Act of 1994
(25 U.S.C. 479a–1).
(6) LINEAL DESCENDANT.—The term ‘‘lineal descendant’’
means an individual that can trace, directly and without
interruption, the ancestry of the individual through the traditional kinship system of an Indian tribe, or through the common
law system of descent, to a known Indian, the human remains,
funerary objects, or other sacred objects of whom are claimed
by the individual.
(7) NATIONAL FOREST SYSTEM.—The term ‘‘National Forest
System’’ has the meaning given the term in section 11(a) of
the Forest and Rangeland Renewable Resources Planning Act
of 1974 (16 U.S.C. 1609(a)).
(8) REBURIAL SITE.—The term ‘‘reburial site’’ means a specific physical location at which cultural items or human remains
are reburied.
(9) TRADITIONAL AND CULTURAL PURPOSE.—The term ‘‘traditional and cultural purpose’’, with respect to a definable use,
area, or practice, means that the use, area, or practice is
identified by an Indian tribe as traditional or cultural because
of the long-established significance or ceremonial nature of
the use, area, or practice to the Indian tribe.
SEC. 8103. REBURIAL OF HUMAN REMAINS AND CULTURAL ITEMS.

25 USC 3053.

(a) REBURIAL SITES.—In consultation with an affected Indian
tribe or lineal descendant, the Secretary may authorize the use
of National Forest System land by the Indian tribe or lineal descendant for the reburial of human remains or cultural items in the
possession of the Indian tribe or lineal descendant that have been
disinterred from National Forest System land or an adjacent site.
(b) REBURIAL.—With the consent of the affected Indian tribe
or lineal descendent, the Secretary may recover and rebury, at
Federal expense or using other available funds, human remains
and cultural items described in subsection (a) at the National Forest
System land identified under that subsection.
(c) AUTHORIZATION OF USE.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary
may authorize such uses of reburial sites on National Forest
System land, or on the National Forest System land immediately surrounding a reburial site, as the Secretary determines
to be necessary for management of the National Forest System.
(2) AVOIDANCE OF ADVERSE IMPACTS.—In carrying out paragraph (1), the Secretary shall avoid adverse impacts to cultural
items and human remains, to the maximum extent practicable.

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SEC. 8104. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL
PURPOSES.

25 USC 3054.

(a) RECOGNITION OF HISTORIC USE.—To the maximum extent
practicable, the Secretary shall ensure access to National Forest
System land by Indians for traditional and cultural purposes, in
accordance with subsection (b), in recognition of the historic use
by Indians of National Forest System land.

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122 STAT. 2050

PUBLIC LAW 110–246—JUNE 18, 2008
(b) CLOSING LAND FROM PUBLIC ACCESS.—
(1) AUTHORITY TO CLOSE.—Upon the approval by the Secretary of a request from an Indian tribe, the Secretary may
temporarily close from public access specifically identified
National Forest System land to protect the privacy of tribal
activities for traditional and cultural purposes.
(2) LIMITATION.—A closure of National Forest System land
under paragraph (1) shall affect the smallest practicable area
for the minimum period necessary for activities of the applicable
Indian tribe.
(3) CONSISTENCY.—Access by Indian tribes to National
Forest System land under this subsection shall be consistent
with the purposes of Public Law 95–341 (commonly known
as the American Indian Religious Freedom Act; 42 U.S.C. 1996).

25 USC 3055.

SEC. 8105. FOREST PRODUCTS FOR TRADITIONAL AND CULTURAL PURPOSES.

(a) IN GENERAL.—Notwithstanding section 14 of the National
Forest Management Act of 1976 (16 U.S.C. 472a), the Secretary
may provide free of charge to Indian tribes any trees, portions
of trees, or forest products from National Forest System land for
traditional and cultural purposes.
(b) PROHIBITION.—Trees, portions of trees, or forest products
provided under subsection (a) may not be used for commercial
purposes.

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25 USC 3056.

SEC. 8106. PROHIBITION ON DISCLOSURE.

(a) NONDISCLOSURE OF INFORMATION.—
(1) IN GENERAL.—The Secretary shall not disclose under
section 552 of title 5, United States Code (commonly known
as the ‘‘Freedom of Information Act’’), information relating to—
(A) subject to subsection (b)(l), human remains or cultural items reburied on National Forest System land under
section 8103; or
(B) subject to subsection (b)(2), resources, cultural
items, uses, or activities that—
(i) have a traditional and cultural purpose; and
(ii) are provided to the Secretary by an Indian
or Indian tribe under an express expectation of confidentiality in the context of forest and rangeland
research activities carried out under the authority of
the Forest Service.
(2) LIMITATIONS ON DISCLOSURE.—Subject to subsection
(b)(2), the Secretary shall not be required to disclose information under section 552 of title 5, United States Code (commonly
known as the ‘‘Freedom of Information Act’’), concerning the
identity, use, or specific location in the National Forest System
of—
(A) a site or resource used for traditional and cultural
purposes by an Indian tribe; or
(B) any cultural items not covered under section 8103.
(b) LIMITED RELEASE OF INFORMATION.—
(1) REBURIAL.—The Secretary may disclose information
described in subsection (a)(l)(A) if, before the disclosure, the
Secretary—
(A) consults with an affected Indian tribe or lineal
descendent;
(B) determines that disclosure of the information—

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(i) would advance the purposes of this subtitle;
and
(ii) is necessary to protect the human remains
or cultural items from harm, theft, or destruction; and
(C) attempts to mitigate any adverse impacts identified
by an Indian tribe or lineal descendant that reasonably
could be expected to result from disclosure of the information.
(2) OTHER INFORMATION.—The Secretary, in consultation
with appropriate Indian tribes, may disclose information
described under paragraph (1)(B) or (2) of subsection (a) if
the Secretary determines that disclosure of the information
to the public—
(A) would advance the purposes of this subtitle;
(B) would not create an unreasonable risk of harm,
theft, or destruction of the resource, site, or object,
including individual organic or inorganic specimens; and
(C) would be consistent with other applicable laws.
SEC. 8107. SEVERABILITY AND SAVINGS PROVISIONS.

25 USC 3057.

(a) SEVERABILITY.—If any provision of this subtitle, or the
application of any provision of this subtitle to any person or circumstance is held invalid, the application of such provision or
circumstance and the remainder of this subtitle shall not be affected
thereby.
(b) SAVINGS.—Nothing in this subtitle—
(1) diminishes or expands the trust responsibility of the
United States to Indian tribes, or any legal obligation or remedy
resulting from that responsibility;
(2) alters, abridges, repeals, or affects any valid agreement
between the Forest Service and an Indian tribe;
(3) alters, abridges, diminishes, repeals, or affects any
reserved or other right of an Indian tribe; or
(4) alters, abridges, diminishes, repeals, or affects any other
valid existing right relating to National Forest System land
or other public land.

Subtitle C—Amendments to Other
Forestry-Related Laws
SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.

Section 2371(d)(2) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking
‘‘2004 through 2008’’ and inserting ‘‘2008 through 2012’’.
SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

Section 2405(d) of the Global Climate Change Prevention Act
of 1990 (7 U.S.C. 6704(d)) is amended by striking ‘‘2007’’ and
inserting ‘‘2012’’.
SEC. 8203. EMERGENCY FOREST RESTORATION PROGRAM.

(a) ESTABLISHMENT.—Title IV of the Agricultural Credit Act
of 1978 (16 U.S.C. 2201 et seq.) is amended by adding at the
end the following new section:
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‘‘SEC. 407. EMERGENCY FOREST RESTORATION PROGRAM.

16 USC 2206.

‘‘(a) DEFINITIONS.—In this section:

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Deadline.
16 USC 2206
note.

PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(1) EMERGENCY MEASURES.—The term ‘emergency measures’ means those measures that—
‘‘(A) are necessary to address damage caused by a
natural disaster to natural resources on nonindustrial private forest land, and the damage, if not treated—
‘‘(i) would impair or endanger the natural
resources on the land; and
‘‘(ii) would materially affect future use of the land;
and
‘‘(B) would restore forest health and forest-related
resources on the land.
‘‘(2) NATURAL DISASTER.—The term ‘natural disaster’
includes wildfires, hurricanes or excessive winds, drought, ice
storms or blizzards, floods, or other resource-impacting events,
as determined by the Secretary.
‘‘(3) NONINDUSTRIAL PRIVATE FOREST LAND.—The term ‘nonindustrial private forest land’ means rural land, as determined
by the Secretary, that—
‘‘(A) has existing tree cover (or had tree cover immediately before the natural disaster and is suitable for
growing trees); and
‘‘(B) is owned by any nonindustrial private individual,
group, association, corporation, or other private legal entity,
that has definitive decision-making authority over the land.
‘‘(4) SECRETARY.—The term ‘Secretary’ means the Secretary
of Agriculture.
‘‘(b) AVAILABILITY OF ASSISTANCE.—The Secretary may make
payments to an owner of nonindustrial private forest land who
carries out emergency measures to restore the land after the land
is damaged by a natural disaster.
‘‘(c) ELIGIBILITY.—To be eligible to receive a payment under
subsection (b), an owner must demonstrate to the satisfaction of
the Secretary that the nonindustrial private forest land on which
the emergency measures are carried out had tree cover immediately
before the natural disaster.
‘‘(d) COST SHARE REQUIREMENT.—Payments made under subsection (b) shall not exceed 75 percent of the total cost of the
emergency measures carried out by an owner of nonindustrial private forest land.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary such funds as may be necessary
to carry out this section. Amounts so appropriated shall remain
available until expended.’’.
(b) REGULATIONS.—Not later than one year after the date of
the enactment of this Act, the Secretary of Agriculture shall issue
regulations to carry out section 407 of the Agricultural Credit
Act of 1978, as added by subsection (a).

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SEC. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES.

(a) DEFINITIONS.—
(1) PLANT.—Subsection (f) of section 2 of the Lacey Act
Amendments of 1981 (16 U.S.C. 3371) is amended to read
as follows:
‘‘(f) PLANT.—
‘‘(1) IN GENERAL.—The terms ‘plant’ and ‘plants’ mean any
wild member of the plant kingdom, including roots, seeds, parts,

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122 STAT. 2053

or products thereof, and including trees from either natural
or planted forest stands.
‘‘(2) EXCLUSIONS.—The terms ‘plant’ and ‘plants’ exclude—
‘‘(A) common cultivars, except trees, and common food
crops (including roots, seeds, parts, or products thereof);
‘‘(B) a scientific specimen of plant genetic material
(including roots, seeds, germplasm, parts, or products
thereof) that is to be used only for laboratory or field
research; and
‘‘(C) any plant that is to remain planted or to be
planted or replanted.
‘‘(3) EXCEPTIONS TO APPLICATION OF EXCLUSIONS.—The
exclusions made by subparagraphs (B) and (C) of paragraph
(2) do not apply if the plant is listed—
‘‘(A) in an appendix to the Convention on International
Trade in Endangered Species of Wild Fauna and Flora
(27 UST 1087; TIAS 8249);
‘‘(B) as an endangered or threatened species under
the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.); or
‘‘(C) pursuant to any State law that provides for the
conservation of species that are indigenous to the State
and are threatened with extinction.’’.
(2) INCLUSION OF SECRETARY OF AGRICULTURE.—Section
2(h) of the Lacey Act Amendments of 1981 (16 U.S.C. 3371(h))
is amended by striking ‘‘plants the term means’’ and inserting
‘‘plants, the term also means’’.
(3) TAKEN AND TAKING.—Subsection (j) of section 2 of the
Lacey Act Amendments of 1981 (16 U.S.C. 3371) is amended
to read as follows:
‘‘(j) TAKEN AND TAKING.—
‘‘(1) TAKEN.—The term ‘taken’ means captured, killed, or
collected and, with respect to a plant, also means harvested,
cut, logged, or removed.
‘‘(2) TAKING.—The term ‘taking’ means the act by which
fish, wildlife, or plants are taken.’’.
(b) PROHIBITED ACTS.—
(1) OFFENSES OTHER THAN MARKING.—Section 3(a) of the
Lacey Act Amendments of 1981 (16 U.S.C. 3372(a)) is
amended—
(A) in paragraph (2), by striking subparagraph (B)
and inserting the following new subparagraph:
‘‘(B) any plant—
‘‘(i) taken, possessed, transported, or sold in violation of any law or regulation of any State, or any
foreign law, that protects plants or that regulates—
‘‘(I) the theft of plants;
‘‘(II) the taking of plants from a park, forest
reserve, or other officially protected area;
‘‘(III) the taking of plants from an officially
designated area; or
‘‘(IV) the taking of plants without, or contrary
to, required authorization;
‘‘(ii) taken, possessed, transported, or sold without
the payment of appropriate royalties, taxes, or stumpage fees required for the plant by any law or regulation
of any State or any foreign law; or

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‘‘(iii) taken, possessed, transported, or sold in violation of any limitation under any law or regulation
of any State, or under any foreign law, governing the
export or transshipment of plants; or’’; and
(B) in paragraph (3), by striking subparagraph (B)
and inserting the following subparagraph:
‘‘(B) to possess any plant—
‘‘(i) taken, possessed, transported, or sold in violation of any law or regulation of any State, or any
foreign law, that protects plants or that regulates—
‘‘(I) the theft of plants;
‘‘(II) the taking of plants from a park, forest
reserve, or other officially protected area;
‘‘(III) the taking of plants from an officially
designated area; or
‘‘(IV) the taking of plants without, or contrary
to, required authorization;
‘‘(ii) taken, possessed, transported, or sold without
the payment of appropriate royalties, taxes, or stumpage fees required for the plant by any law or regulation
of any State or any foreign law; or
‘‘(iii) taken, possessed, transported, or sold in violation of any limitation under any law or regulation
of any State, or under any foreign law, governing the
export or transshipment of plants; or’’.
(2) PLANT DECLARATIONS.—Section 3 of the Lacey Act
Amendments of 1981 (16 U.S.C. 3372) is amended by adding
at the end the following new subsection:
‘‘(f) PLANT DECLARATIONS.—
‘‘(1) IMPORT DECLARATION.—Effective 180 days from the
date of enactment of this subsection, and except as provided
in paragraph (3), it shall be unlawful for any person to import
any plant unless the person files upon importation a declaration
that contains—
‘‘(A) the scientific name of any plant (including the
genus and species of the plant) contained in the importation;
‘‘(B) a description of—
‘‘(i) the value of the importation; and
‘‘(ii) the quantity, including the unit of measure,
of the plant; and
‘‘(C) the name of the country from which the plant
was taken.
‘‘(2) DECLARATION RELATING TO PLANT PRODUCTS.—Until
the date on which the Secretary promulgates a regulation under
paragraph (6), a declaration relating to a plant product shall—
‘‘(A) in the case in which the species of plant used
to produce the plant product that is the subject of the
importation varies, and the species used to produce the
plant product is unknown, contain the name of each species
of plant that may have been used to produce the plant
product;
‘‘(B) in the case in which the species of plant used
to produce the plant product that is the subject of the
importation is commonly taken from more than one
country, and the country from which the plant was taken
and used to produce the plant product is unknown, contain

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the name of each country from which the plant may have
been taken; and
‘‘(C) in the case in which a paper or paperboard plant
product includes recycled plant product, contain the average percent recycled content without regard for the species
or country of origin of the recycled plant product, in addition to the information for the non-recycled plant content
otherwise required by this subsection.
‘‘(3) EXCLUSIONS.—Paragraphs (1) and (2) shall not apply
to plants used exclusively as packaging material to support,
protect, or carry another item, unless the packaging material
itself is the item being imported.
‘‘(4) REVIEW.—Not later than two years after the date of
enactment of this subsection, the Secretary shall review the
implementation of each requirement imposed by paragraphs
(1) and (2) and the effect of the exclusion provided by paragraph
(3). In conducting the review, the Secretary shall provide public
notice and an opportunity for comment.
‘‘(5) REPORT.—Not later than 180 days after the date on
which the Secretary completes the review under paragraph
(4), the Secretary shall submit to the appropriate committees
of Congress a report containing—
‘‘(A) an evaluation of—
‘‘(i) the effectiveness of each type of information
required under paragraphs (1) and (2) in assisting
enforcement of this section; and
‘‘(ii) the potential to harmonize each requirement
imposed by paragraphs (1) and (2) with other
applicable import regulations in existence as of the
date of the report;
‘‘(B) recommendations for such legislation as the Secretary determines to be appropriate to assist in the identification of plants that are imported into the United States
in violation of this section; and
‘‘(C) an analysis of the effect of subsection (a) and
this subsection on—
‘‘(i) the cost of legal plant imports; and
‘‘(ii) the extent and methodology of illegal logging
practices and trafficking.
‘‘(6) PROMULGATION OF REGULATIONS.—Not later than 180
days after the date on which the Secretary completes the review
under paragraph (4), the Secretary may promulgate regulations—
‘‘(A) to limit the applicability of any requirement
imposed by paragraph (2) to specific plant products;
‘‘(B) to make any other necessary modification to any
requirement imposed by paragraph (2), as determined by
the Secretary based on the review; and
‘‘(C) to limit the scope of the exclusion provided by
paragraph (3), if the limitations in scope are warranted
as a result of the review.’’.
(c) CROSS-REFERENCES TO NEW REQUIREMENT.—Section 4 of
the Lacey Act Amendments of 1981 (16 U.S.C. 3373) is amended—
(1) by striking ‘‘subsections (b) and (d)’’ each place it
appears and inserting ‘‘subsections (b), (d), and (f)’’;
(2) by striking ‘‘section 3(d)’’ each place it appears and
inserting ‘‘subsection (d) or (f) of section 3’’; and

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Regulations.

Effective date.
16 USC 3373
note.
16 USC 3373.

PUBLIC LAW 110–246—JUNE 18, 2008

(3) in subsection (a)(2), by striking ‘‘subsection 3(b)’’ and
inserting ‘‘subsection (b) or (f) of section 3, except as provided
in paragraph (1),’’.
(d) CIVIL FORFEITURES.—Section 5 of the Lacey Act Amendments of 1981 (16 U.S.C. 3374) is amended by adding at the
end the following new subsection:
‘‘(d) CIVIL FORFEITURES.—Civil forfeitures under this section
shall be governed by the provisions of chapter 46 of title 18, United
States Code.’’.
(e) ADMINISTRATION.—Section 7 of the Lacey Act Amendments
of 1981 (16 U.S.C. 3376) is amended—
(1) in subsection (a)(1), by striking ‘‘section 4 and section’’
and inserting ‘‘sections 3(f), 4, and’’; and
(2) by adding at the end the following new subsection:
‘‘(c) CLARIFICATION OF EXCLUSIONS FROM DEFINITION OF
PLANT.—The Secretary of Agriculture and the Secretary of the
Interior, after consultation with the appropriate agencies, shall
jointly promulgate regulations to define the terms used in section
2(f)(2)(A) for the purposes of enforcement under this Act.’’.
(f) TECHNICAL CORRECTION.—Effective as of November 14, 1988,
and as if included therein as enacted, section 102(c) of Public
Law 100–653 (102 Stat. 3825) is amended—
(1) by inserting ‘‘of the Lacey Act Amendments of 1981’’
after ‘‘Section 4’’; and
(2) by striking ‘‘(other than section 3(b))’’ and inserting
‘‘(other than subsection 3(b))’’.

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SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM.

(a) ENROLLMENT.—Section 502 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6572(f)(1)) is amended—
(1) by striking subsections (e) and (f);
(2) by redesignating subsection (g) as subsection (f); and
(3) by inserting after subsection (d) the following new subsection:
‘‘(e) METHODS OF ENROLLMENT.—
‘‘(1) AUTHORIZED METHODS.—Land may be enrolled in the
healthy forests reserve program in accordance with—
‘‘(A) a 10-year cost-share agreement;
‘‘(B) a 30-year easement; or
‘‘(C)(i) a permanent easement; or
‘‘(ii) in a State that imposes a maximum duration
for easements, an easement for the maximum duration
allowed under State law.
‘‘(2) LIMITATION ON USE OF COST-SHARE AGREEMENTS AND
EASEMENTS.—
‘‘(A) IN GENERAL.—Of the total amount of funds
expended under the program for a fiscal year to acquire
easements and enter into cost-share agreements described
in paragraph (1)—
‘‘(i) not more than 40 percent shall be used for
cost-share agreements described in paragraph (1)(A);
and
‘‘(ii) not more than 60 percent shall be used for
easements described in subparagraphs (B) and (C) of
paragraph (1).
‘‘(B) REPOOLING.—The Secretary may use any funds
allocated under clause (i) or (ii) of subparagraph (A) that

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are not obligated by April 1 of the fiscal year for which
the funds are made available to carry out a different
method of enrollment during that fiscal year.
‘‘(3) ACREAGE OWNED BY INDIAN TRIBES.—In the case of
acreage owned by an Indian tribe, the Secretary may enroll
acreage into the healthy forests reserve program through the
use of—
‘‘(A) a 30-year contract (the value of which shall be
equivalent to the value of a 30-year easement);
‘‘(B) a 10-year cost-share agreement; or
‘‘(C) any combination of the options described in subparagraphs (A) and (B).’’.
(b) FINANCIAL ASSISTANCE.—Section 504(a) of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6574(a)) is amended by
striking ‘‘(a) EASEMENTS OF NOT MORE THAN 99 YEARS’’ and all
that follows through ‘‘502(f)(1)(C)’’ and inserting the following:
‘‘(a) PERMANENT EASEMENTS.—In the case of land enrolled in
the healthy forests reserve program using a permanent easement
(or an easement described in section 502(f)(1)(C)(ii))’’.
(c) FUNDING.—Section 508 of the Healthy Forests Restoration
Act of 2003 (16 U.S.C. 6578) is amended to read as follows:
‘‘SEC. 508. FUNDING.

‘‘(a) IN GENERAL.—Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make available
$9,750,000 for each of fiscal years 2009 through 2012 to carry
out this title.
‘‘(b) DURATION OF AVAILABILITY.—The funds made available
under subsection (a) shall remain available until expended.’’.

Subtitle D—Boundary Adjustments and
Land Conveyance Provisions

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SEC. 8301. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY ADJUSTMENT.

(a) IN GENERAL.—The boundary of the Green Mountain
National Forest is modified to include the 13 designated expansion
units as generally depicted on the forest maps entitled ‘‘Green
Mountain Expansion Area Map I’’ and ‘‘Green Mountain Expansion
Area Map II’’ and dated February 20, 2002 (copies of which shall
be on file and available for public inspection in the Office of the
Chief of the Forest Service, Washington, District of Columbia),
and more particularly described according to the site specific maps
and legal descriptions on file in the office of the Forest Supervisor,
Green Mountain National Forest.
(b) MANAGEMENT.—Federally owned land delineated on the
maps acquired for National Forest purposes shall continue to be
managed in accordance with the laws (including regulations)
applicable to the National Forest System.
(c) LAND AND WATER CONSERVATION FUND.—For the purposes
of section 7 of the Land and Water Conservation Fund Act of
1965 (16 U.S.C. 460 l–9), the boundaries of the Green Mountain
National Forest, as adjusted by this section, shall be considered
to be the boundaries of the national forest as of January 1, 1965.

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SEC. 8302. LAND CONVEYANCES, CHIHUAHUAN DESERT NATURE PARK,
NEW MEXICO, AND GEORGE WASHINGTON NATIONAL
FOREST, VIRGINIA.

(a) CHIHUAHUAN DESERT NATURE PARK CONVEYANCE.—
(1) IN GENERAL.—As soon as practicable after the date
of enactment of this Act, subject to valid existing rights and
subsection (b), the Secretary of Agriculture shall convey to
the Chihuahuan Desert Nature Park, Inc., a nonprofit corporation in the State of New Mexico (in this section referred to
as the ‘‘Nature Park’’), by quitclaim deed and for no consideration, all right, title, and interest of the United States in
and to the land described in paragraph (2)
(2) DESCRIPTION OF LAND.—
(A) IN GENERAL.—The parcel of land referred to in
paragraph (1) consists of the approximately 935.62 acres
of land in Dona Ana County, New Mexico, which is more
particularly described—
(i) as sections 17, 20, and 21 of T. 21 S., R. 2
E., N.M.P.M.; and
(ii) in an easement deed dated May 14, 1998, from
the Department of Agriculture to the Nature Park.
(B) MODIFICATIONS.—The Secretary may modify the
description of the land under subparagraph (A) to—
(i) correct errors in the description; or
(ii) facilitate management of the land.
(b) CONDITIONS.—The conveyance of land under subsection (a)
shall be subject to—
(1) the reservation by the United States of all mineral
and subsurface rights to the land, including any geothermal
resources;
(2) the condition that the Chihuahuan Desert Nature Park
Board pay any costs relating to the conveyance;
(3) any rights-of-way reserved by the Secretary;
(4) a covenant or restriction in the deed to the land
requiring that—
(A) the land may be used only for educational or scientific purposes; and
(B) if the land is no longer used for the purposes
described in subparagraph (A), the land may, at the discretion of the Secretary, revert to the United States in accordance with subsection (c); and
(5) any other terms and conditions that the Secretary determines to be appropriate.
(c) REVERSION.—If the land conveyed under subsection (a) is
no longer used for the purposes described in subsection (b)(4)(A),
the land may, at the discretion of the Secretary, revert to the
United States. If the Secretary chooses to have the land revert
to the United States, the Secretary shall—
(1) determine whether the land is environmentally contaminated, including contamination from hazardous wastes, hazardous substances, pollutants, contaminants, petroleum, or
petroleum by-products; and
(2) if the Secretary determines that the land is environmentally contaminated, the Nature Park, the successor to the
Nature Park, or any other person responsible for the contamination shall be required to remediate the contamination.

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(d) WITHDRAWAL.—All federally owned mineral and subsurface
rights to the land to be conveyed under subsection (a) are withdrawn
from—
(1) location, entry, and patent under the mining laws;
and
(2) the operation of the mineral leasing laws, including
the geothermal leasing laws.
(e) WATER RIGHTS.—Nothing in subsection (a) authorizes the
conveyance of water rights to the Nature Park.
(f) GEORGE WASHINGTON NATIONAL FOREST CONVEYANCE, VIRGINIA.—
(1) CONVEYANCE REQUIRED.—The Secretary of Agriculture
shall convey, without consideration, to the Central Advent
Christian Church of Alleghany County, Virginia (in this subsection referred to as the ‘‘recipient’’), all right, title, and
interest of the United States in and to a parcel of real property
in the George Washington National Forest, Alleghany County,
Virginia, consisting of not more than 8 acres, including a cemetery encompassing approximately 6 acres designated as an
area of special use for the recipient, and depicted on the Forest
Service map showing tract G–2032c and dated August 20, 2002,
and the Forest Service map showing the area of special use
and dated March 14, 2001.
(2) CONDITION OF CONVEYANCE.—The conveyance under
this subsection shall be subject to the condition that the
recipient accept the real property described in paragraph (1)
in its condition at the time of the conveyance, commonly known
as conveyance ‘‘as is’’.
(3) DESCRIPTION OF PROPERTY.—The exact acreage and
legal description of the real property to be conveyed under
this subsection shall be determined by a survey satisfactory
to the Secretary. The cost of the survey shall be borne by
the recipient.
(4) ADDITIONAL TERMS AND CONDITIONS.—The Secretary
may require such additional terms and conditions in connection
with the conveyance under this subsection as the Secretary
considers appropriate to protect the interests of the United
States.

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SEC. 8303. SALE AND EXCHANGE OF NATIONAL FOREST SYSTEM LAND,
VERMONT.

(a) DEFINITIONS.—In this section:
(1) BROMLEY.—The term ‘‘Bromley’’ means Bromley Mountain Ski Resort, Inc.
(2) MAP.—The term ‘‘map’’ means the map entitled ‘‘Proposed Bromley Land Sale or Exchange’’ and dated April 7,
2004.
(3) STATE.—The term ‘‘State’’ means the State of Vermont.
(b) SALE OR EXCHANGE OF GREEN MOUNTAIN NATIONAL FOREST
LAND.—
(1) IN GENERAL.—The Secretary of Agriculture may, under
any terms and conditions that the Secretary may prescribe,
sell or exchange any right, title, and interest of the United
States in and to the parcels of National Forest System land
described in paragraph (2).
(2) DESCRIPTION OF LAND.—The parcels of National Forest
System land referred to in paragraph (1) are the 5 parcels

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PUBLIC LAW 110–246—JUNE 18, 2008
of land in Bennington County in the State, as generally depicted
on the map.
(3) MAP AND LEGAL DESCRIPTIONS.—
(A) IN GENERAL.—The map shall be on file and available for public inspection in—
(i) the office of the Chief of the Forest Service;
and
(ii) the office of the Supervisor of the Green Mountain National Forest.
(B) MODIFICATIONS.—The Secretary may modify the
map and legal descriptions to—
(i) correct technical errors; or
(ii) facilitate the conveyance under paragraph (1).
(4) CONSIDERATION.—Consideration for the sale or
exchange of land described in paragraph (2)—
(A) shall be equal to an amount that is not less than
the fair market value of the land sold or exchanged; and
(B) may be in the form of cash, land, or a combination
of cash and land.
(5) APPRAISALS.—Any appraisal carried out to facilitate
the sale or exchange of land under paragraph (1) shall conform
with the Uniform Appraisal Standards for Federal Land
Acquisitions.
(6) METHODS OF SALE.—
(A) CONVEYANCE TO BROMLEY.—
(i) IN GENERAL.—Before soliciting offers under
subparagraph (B), the Secretary shall offer to convey
to Bromley the land described in paragraph (2).
(ii) CONTRACT DEADLINE.—If Bromley accepts the
offer under clause (i), the Secretary and Bromley shall
have not more than 180 days after the date on which
any environmental analyses with respect to the land
are completed to enter into a contract for the sale
or exchange of the land.
(B) PUBLIC OR PRIVATE SALE.—If the Secretary and
Bromley do not enter into a contract for the sale or
exchange of the land by the date specified in subparagraph
(A)(ii), the Secretary may sell or exchange the land at
public or private sale (including auction), in accordance
with such terms, conditions, and procedures as the Secretary determines to be in the public interest.
(C) REJECTION OF OFFERS.—The Secretary may reject
any offer received under this paragraph if the Secretary
determines that the offer is not adequate or is not in
the public interest.
(D) BROKERS.—In any sale or exchange of land under
this subsection, the Secretary may—
(i) use a real estate broker or other third party;
and
(ii) pay the real estate broker or third party a
commission in an amount comparable to the amounts
of commission generally paid for real estate transactions in the area.
(7) CASH EQUALIZATION.—Notwithstanding section 206(b)
of the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1716(b)), the Secretary may accept a cash equalization

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payment in excess of 25 percent of the value of any Federal
land exchanged under this section.
(c) DISPOSITION OF PROCEEDS.—
(1) IN GENERAL.—The Secretary shall deposit the net proceeds from a sale or exchange under this section in the fund
established under Public Law 90–171 (16 U.S.C. 484a) (commonly known as the ‘‘Sisk Act’’).
(2) USE.—Amounts deposited under paragraph (1) shall
be available to the Secretary until expended, without further
appropriation, for—
(A) the location and relocation of the Appalachian
National Scenic Trail and the Long National Recreation
Trail in the State;
(B) the acquisition of land and interests in land by
the Secretary for National Forest System purposes within
the boundary of the Green Mountain National Forest,
including land for and adjacent to the Appalachian National
Scenic Trail and the Long National Recreation Trail;
(C) the acquisition of wetland or an interest in wetland
within the boundary of the Green Mountain National
Forest to offset the loss of wetland from the parcels sold
or exchanged; and
(D) the payment of direct administrative costs incurred
in carrying out this section.
(3) LIMITATION.—Amounts deposited under paragraph (1)
shall not—
(A) be paid or distributed to the State or counties
or towns in the State under any provision of law; or
(B) be considered to be money received from units
of the National Forest System for purposes of—
(i) the Act of May 23, 1908 (16 U.S.C. 500); or
(ii) the Act of March 4, 1913 (16 U.S.C. 501).
(4) PROHIBITION OF TRANSFER OR REPROGRAMMING.—
Amounts deposited under paragraph (1) shall not be subject
to transfer or reprogramming for wildfire management or any
other emergency purposes.
(d) ACQUISITION OF LAND.—The Secretary may acquire, using
funds made available under subsection (c) or otherwise made available for acquisition, land or an interest in land for National Forest
System purposes within the boundary of the Green Mountain
National Forest.
(e) EXEMPTION FROM CERTAIN LAWS.—Subtitle I of title 40,
United States Code, shall not apply to any sale or exchange of
National Forest System land under this section.

Subtitle E—Miscellaneous Provisions

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SEC. 8401. QUALIFYING TIMBER CONTRACT OPTIONS.

(a) DEFINITIONS.—In this section:
(1) AUTHORIZED PRODUCER PRICE INDEX.—The term
‘‘authorized Producer Price Index’’ includes—
(A) the softwood commodity index (code number WPU
0811);
(B) the hardwood commodity index (code number WPU
0812);

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16 USC 472a
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PUBLIC LAW 110–246—JUNE 18, 2008
(C) the wood chip index (code number PCU
3211133211135); and
(D) any other subsequent comparable index, as established by the Bureau of Labor Statistics of the Department
of Labor and utilized by the Secretary of Agriculture.
(2) QUALIFYING CONTRACT.—The term ‘‘qualifying contract’’
means a contract for the sale of timber on National Forest
System land—
(A) that was awarded during the period beginning
on July 1, 2004, and ending on December 31, 2006;
(B) for which there is unharvested volume remaining;
(C) for which, not later than 90 days after the date
of enactment of this Act, the timber purchaser makes a
written request to the Secretary for one or more of the
options described in subsection (b);
(D) that is not a salvage sale;
(E) for which the Secretary determines there is not
an urgent need to harvest due to deteriorating timber
conditions that developed after the award of the contract;
and
(F) that is not in breach or in default.
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture, acting through the Chief of the Forest Service.
(b) OPTIONS FOR QUALIFYING CONTRACTS.—
(1) CANCELLATION OR RATE REDETERMINATION.—Notwithstanding any other provision of law, if the rate at which a
qualifying contract would be advertised as of the date of enactment of this Act is at least 50 percent less than the sum
of the original bid rates for all of the species of timber that
are the subject of the qualifying contract, the Secretary may,
at the sole discretion of the Secretary—
(A) cancel the qualifying contract if the timber purchaser—
(i) pays 30 percent of the total value of the timber
remaining in the qualifying contract based on bid rates;
(ii) completes each contractual obligation
(including the removal of downed timber, the completion of road work, and the completion of erosion control
work) of the timber purchaser with respect to each
unit on which harvest has begun to a logical stopping
point, as determined by the Secretary after consultation with the timber purchaser; and
(iii) terminates its rights under the qualifying contract; or
(B) modify the qualifying contract to redetermine the
current contract rate of the qualifying contract to equal
the sum obtained by adding—
(i) 25 percent of the bid premium on the qualifying
contract; and
(ii) the rate at which the qualifying contract would
be advertised as of the date of enactment of this Act.
(2) SUBSTITUTION OF INDEX.—
(A) SUBSTITUTION.—Notwithstanding any other provision of law, the Secretary may, at the sole discretion of
the Secretary, substitute the Producer Price Index specified
in the qualifying contract of a timber purchaser if the
timber purchaser identifies—

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(i) the products the timber purchaser intends to
produce from the timber harvested under the qualifying contract; and
(ii) a substitute index from an authorized Producer
Price Index that more accurately represents the
predominant product identified in clause (i) for which
there is an index.
(B) RATE REDETERMINATION FOLLOWING SUBSTITUTION
OF INDEX.—If the Secretary substitutes the Producer Price
Index of a qualifying contract under subparagraph (A),
the Secretary may, at the sole discretion of the Secretary,
modify the qualifying contract to provide for—
(i) an emergency rate redetermination under the
terms of the contract; or
(ii) a rate redetermination under paragraph (1)(B).
(C) LIMITATION ON MARKET-RELATED CONTRACT TERM
ADDITION; PERIODIC PAYMENTS.—Notwithstanding any other
provision of law, if the Secretary substitutes the Producer
Price Index of a qualifying contract under subparagraph
(A), the Secretary may, at the sole discretion of the Secretary, modify the qualifying contract—
(i) to adjust the term in accordance with the
market-related contract term addition provision in the
qualifying contract and section 223.52 of title 36, Code
of Federal Regulations, as in effect on the date of
the adjustment, but only if the drastic reduction criteria in such section are met for 2 or more consecutive
calendar year quarters beginning with the calendar
quarter in which the Secretary substitutes the Producer Price Index under subparagraph (A); and
(ii) to adjust the periodic payments required under
the contract in accordance with applicable law and
policies.
(3) CONTRACTS USING HARDWOOD LUMBER INDEX.—With
respect to a qualifying contract using the hardwood commodity
index referred to in subsection (a)(1)(B) for which the Secretary
does not substitute the Producer Price Index under paragraph
(2), the Secretary may, at the sole discretion of the Secretary—
(A) extend the contract term for a 1-year period beginning on the current contract termination date; and
(B) adjust the periodic payments required under the
contract in accordance with applicable law and policies.
(c) EXTENSION OF MARKET-RELATED CONTRACT TERM ADDITION
TIME LIMIT FOR CERTAIN CONTRACTS.—Notwithstanding any other
provision of law, upon the written request of a timber purchaser,
the Secretary may, at the sole discretion of the Secretary, modify
a timber sale contract (including a qualifying contract) awarded
to the purchaser before January 1, 2007, to adjust the term of
the contract in accordance with the market-related contract term
addition provision in the contract and section 223.52 of title 36,
Code of Federal Regulations, as in effect on the date of the modification, except that the Secretary may add no more than 4 years
to the original contract length.
(d) EFFECT OF OPTIONS.—
(1) NO SURRENDER OF CLAIMS.—Operation of this section
shall not have the effect of surrendering any claim by the
United States against any timber purchaser that arose—

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(A) under a qualifying contract before the date on
which the Secretary cancels the contract or redetermines
the rate under subsection (b)(1), substitutes a Producer
Price Index under subsection (b)(2), or modifies the contract
under subsection (b)(3); or
(B) under a timber sale contract, including a qualifying
contract, before the date on which the Secretary adjusts
the contract term under subsection (c).
(2) RELEASE OF LIABILITY.—In the written request for any
option provided under subsections (b) and (c), a timber purchaser shall release the United States from all liability,
including further consideration or compensation, resulting
from—
(A) the cancellation of a qualifying contract of the
purchaser or rate redetermination under subsection (b)(1),
the substitution of a Producer Price Index under subsection
(b)(2), the modification of the contract under subsection
(b)(3) or a determination by the Secretary not to provide
the cancellation, redetermination, substitution, or modification; or
(B) the modification of the term of a timber sale contract (including a qualifying contract) of the purchaser
under subsection (c) or a determination by the Secretary
not to provide the modification.
(3) LIMITATION.—Subject to subsection (b)(1)(A), the cancellation of a qualifying contract by the Secretary under subsection (b)(1) shall release the timber purchaser from further
obligation under the canceled contract.

16 USC 1649a.

SEC. 8402. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND
NATIONAL RESOURCES LEADERSHIP PROGRAM.

(a) DEFINITION OF HISPANIC-SERVING INSTITUTION.—In this section, the term ‘‘Hispanic-serving institution’’ has the meaning given
that term in section 502(a)(5) of the Higher Education Act of 1965
(20 U.S.C. 1101a(a)(5)).
(b) GRANT AUTHORITY.—The Secretary of Agriculture may make
grants, on a competitive basis, to Hispanic-serving institutions for
the purpose of establishing an undergraduate scholarship program
to assist in the recruitment, retention, and training of Hispanics
and other under-represented groups in forestry and related fields.
(c) USE OF GRANT FUNDS.—Grants made under this section
shall be used to recruit, retain, train, and develop professionals
to work in forestry and related fields with Federal agencies, such
as the Forest Service, State agencies, and private-sector entities.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary for each of fiscal years 2008
through 2012 such sums as may be necessary to carry out this
section.

TITLE IX—ENERGY

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SEC. 9001. ENERGY.

(a) IN GENERAL.—Title IX of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8101 et seq.) is amended to
read as follows:

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‘‘TITLE IX—ENERGY

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‘‘SEC. 9001. DEFINITIONS.

7 USC 8101.

‘‘Except as otherwise provided, in this title:
‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the
Administrator of the Environmental Protection Agency.
‘‘(2) ADVISORY COMMITTEE.—The term ‘Advisory Committee’
means the Biomass Research and Development Technical
Advisory Committee established by section 9008(d)(1).
‘‘(3) ADVANCED BIOFUEL.—
‘‘(A) IN GENERAL.—The term ‘advanced biofuel’ means
fuel derived from renewable biomass other than corn kernel
starch.
‘‘(B) INCLUSIONS.—Subject to subparagraph (A), the
term ‘advanced biofuel’ includes—
‘‘(i) biofuel derived from cellulose, hemicellulose,
or lignin;
‘‘(ii) biofuel derived from sugar and starch (other
than ethanol derived from corn kernel starch);
‘‘(iii) biofuel derived from waste material, including
crop residue, other vegetative waste material, animal
waste, food waste, and yard waste;
‘‘(iv) diesel-equivalent fuel derived from renewable
biomass, including vegetable oil and animal fat;
‘‘(v) biogas (including landfill gas and sewage waste
treatment gas) produced through the conversion of
organic matter from renewable biomass;
‘‘(vi) butanol or other alcohols produced through
the conversion of organic matter from renewable biomass; and
‘‘(vii) other fuel derived from cellulosic biomass.
‘‘(4) BIOBASED PRODUCT.—The term ‘biobased product’
means a product determined by the Secretary to be a commercial or industrial product (other than food or feed) that is—
‘‘(A) composed, in whole or in significant part, of
biological products, including renewable domestic agricultural materials and forestry materials; or
‘‘(B) an intermediate ingredient or feedstock.
‘‘(5) BIOFUEL.—The term ‘biofuel’ means a fuel derived
from renewable biomass.
‘‘(6) BIOMASS CONVERSION FACILITY.—The term ‘biomass
conversion facility’ means a facility that converts or proposes
to convert renewable biomass into—
‘‘(A) heat;
‘‘(B) power;
‘‘(C) biobased products; or
‘‘(D) advanced biofuels.
‘‘(7) BIOREFINERY.—The term ‘biorefinery’ means a facility
(including equipment and processes) that—
‘‘(A) converts renewable biomass into biofuels and
biobased products; and
‘‘(B) may produce electricity.
‘‘(8) BOARD.—The term ‘Board’ means the Biomass
Research and Development Board established by section
9008(c).

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‘‘(9) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
‘‘(10) INSTITUTION OF HIGHER EDUCATION.—The term
‘institution of higher education’ has the meaning given the
term in section 102(a) of the Higher Education Act of 1965
(20 U.S.C. 1002(a)).
‘‘(11) INTERMEDIATE INGREDIENT OR FEEDSTOCK.—The term
‘intermediate ingredient or feedstock’ means a material or compound made in whole or in significant part from biological
products, including renewable agricultural materials (including
plant, animal, and marine materials) or forestry materials,
that are subsequently used to make a more complex compound
or product.
‘‘(12) RENEWABLE BIOMASS.—The term ‘renewable biomass’
means—
‘‘(A) materials, pre-commercial thinnings, or invasive
species from National Forest System land and public lands
(as defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)) that—
‘‘(i) are byproducts of preventive treatments that
are removed—
‘‘(I) to reduce hazardous fuels;
‘‘(II) to reduce or contain disease or insect
infestation; or
‘‘(III) to restore ecosystem health;
‘‘(ii) would not otherwise be used for higher-value
products; and
‘‘(iii) are harvested in accordance with—
‘‘(I) applicable law and land management
plans; and
‘‘(II) the requirements for—
‘‘(aa) old-growth maintenance, restoration,
and management direction of paragraphs (2),
(3), and (4) of subsection (e) of section 102
of the Healthy Forests Restoration Act of 2003
(16 U.S.C. 6512); and
‘‘(bb) large-tree retention of subsection (f)
of that section; or
‘‘(B) any organic matter that is available on a renewable or recurring basis from non-Federal land or land
belonging to an Indian or Indian tribe that is held in
trust by the United States or subject to a restriction against
alienation imposed by the United States, including—
‘‘(i) renewable plant material, including—
‘‘(I) feed grains;
‘‘(II) other agricultural commodities;
‘‘(III) other plants and trees; and
‘‘(IV) algae; and
‘‘(ii) waste material, including—
‘‘(I) crop residue;
‘‘(II) other vegetative waste material (including
wood waste and wood residues);
‘‘(III) animal waste and byproducts (including
fats, oils, greases, and manure); and
‘‘(IV) food waste and yard waste.

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‘‘(13) RENEWABLE ENERGY.—The term ‘renewable energy’
means energy derived from—
‘‘(A) a wind, solar, renewable biomass, ocean (including
tidal, wave, current, and thermal), geothermal, or hydroelectric source; or
‘‘(B) hydrogen derived from renewable biomass or water
using an energy source described in subparagraph (A).
‘‘(14) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture.

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‘‘SEC. 9002. BIOBASED MARKETS PROGRAM.

7 USC 8102.

‘‘(a) FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.—
‘‘(1) DEFINITION OF PROCURING AGENCY.—In this subsection,
the term ‘procuring agency’ means—
‘‘(A) any Federal agency that is using Federal funds
for procurement; or
‘‘(B) a person that is a party to a contract with any
Federal agency, with respect to work performed under such
a contract.
‘‘(2) PROCUREMENT PREFERENCE.—
‘‘(A) IN GENERAL.—
‘‘(i) PROCURING AGENCY DUTIES.—Except as provided in clause (ii) and subparagraph (B), after the
date specified in applicable guidelines prepared pursuant to paragraph (3), each procuring agency shall—
‘‘(I) establish a procurement program, develop
procurement specifications, and procure biobased
products identified under the guidelines described
in paragraph (3) in accordance with this section;
and
‘‘(II) with respect to items described in the
guidelines, give a procurement preference to those
items that—
‘‘(aa) are composed of the highest percentage of biobased products practicable; or
‘‘(bb) comply with the regulations issued
under section 103 of Public Law 100–556 (42
U.S.C. 6914b–1).
‘‘(ii) EXCEPTION.—The requirements of clause (i)(I)
to establish a procurement program and develop
procurement specifications shall not apply to a person
described in paragraph (1)(B).
‘‘(B) FLEXIBILITY.—Notwithstanding subparagraph (A),
a procuring agency may decide not to procure items
described in that subparagraph if the procuring agency
determines that the items—
‘‘(i) are not reasonably available within a reasonable period of time;
‘‘(ii) fail to meet—
‘‘(I) the performance standards set forth in
the applicable specifications; or
‘‘(II) the reasonable performance standards of
the procuring agencies; or
‘‘(iii) are available only at an unreasonable price.
‘‘(C) MINIMUM REQUIREMENTS.—Each procurement program required under this subsection shall, at a minimum—

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‘‘(i) be consistent with applicable provisions of Federal procurement law;
‘‘(ii) ensure that items composed of biobased products will be purchased to the maximum extent practicable;
‘‘(iii) include a component to promote the procurement program;
‘‘(iv) provide for an annual review and monitoring
of the effectiveness of the procurement program; and
‘‘(v) adopt 1 of the 2 polices described in subparagraph (D) or (E), or a policy substantially equivalent
to either of those policies.
‘‘(D) CASE-BY-CASE POLICY.—
‘‘(i) IN GENERAL.—Subject to subparagraph (B) and
except as provided in clause (ii), a procuring agency
adopting the case-by-case policy shall award a contract
to the vendor offering an item composed of the highest
percentage of biobased products practicable.
‘‘(ii) EXCEPTION.—Subject to subparagraph (B), an
agency adopting the policy described in clause (i) may
make an award to a vendor offering items with less
than the maximum biobased products content.
‘‘(E) MINIMUM CONTENT STANDARDS.—Subject to
subparagraph (B), a procuring agency adopting the minimum content standards policy shall establish minimum
biobased products content specifications for awarding contracts in a manner that ensures that the biobased products
content required is consistent with this subsection.
‘‘(F) CERTIFICATION.—After the date specified in any
applicable guidelines prepared pursuant to paragraph (3),
contracting offices shall require that vendors certify that
the biobased products to be used in the performance of
the contract will comply with the applicable specifications
or other contractual requirements.
‘‘(3) GUIDELINES.—
‘‘(A) IN GENERAL.—The Secretary, after consultation
with the Administrator, the Administrator of General Services, and the Secretary of Commerce (acting through the
Director of the National Institute of Standards and Technology), shall prepare, and from time to time revise, guidelines for the use of procuring agencies in complying with
the requirements of this subsection.
‘‘(B) REQUIREMENTS.—The guidelines under this paragraph shall—
‘‘(i) designate those items (including finished products) that are or can be produced with biobased products (including biobased products for which there is
only a single product or manufacturer in the category)
that will be subject to the preference described in paragraph (2);
‘‘(ii) designate those intermediate ingredients and
feedstocks that are or can be used to produce items
that will be subject to the preference described in paragraph (2);
‘‘(iii) automatically designate items composed of
intermediate ingredients and feedstocks designated

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under clause (ii), if the content of the designated intermediate ingredients and feedstocks exceeds 50 percent
of the item (unless the Secretary determines a different
composition percentage is appropriate);
‘‘(iv) set forth recommended practices with respect
to the procurement of biobased products and items
containing such materials;
‘‘(v) provide information as to the availability, relative price, performance, and environmental and public
health benefits of such materials and items; and
‘‘(vi) take effect on the date established in the
guidelines, which may not exceed 1 year after publication.
‘‘(C) INFORMATION PROVIDED.—Information provided
pursuant to subparagraph (B)(v) with respect to a material
or item shall be considered to be provided for another
item made with the same material or item.
‘‘(D) PROHIBITION.—Guidelines issued under this paragraph may not require a manufacturer or vendor of
biobased products, as a condition of the purchase of
biobased products from the manufacturer or vendor, to
provide to procuring agencies more data than would be
required to be provided by other manufacturers or vendors
offering products for sale to a procuring agency, other than
data confirming the biobased content of a product.
‘‘(E) QUALIFYING PURCHASES.—The guidelines shall
apply with respect to any purchase or acquisition of a
procurement item for which—
‘‘(i) the purchase price of the item exceeds $10,000;
or
‘‘(ii) the quantity of the items or of functionallyequivalent items purchased or acquired during the preceding fiscal year was at least $10,000.
‘‘(4) ADMINISTRATION.—
‘‘(A) OFFICE OF FEDERAL PROCUREMENT POLICY.—The
Office of Federal Procurement Policy, in cooperation with
the Secretary, shall—
‘‘(i) coordinate the implementation of this subsection with other policies for Federal procurement;
‘‘(ii) annually collect the information required to
be reported under subparagraph (B) and make the
information publicly available;
‘‘(iii) take a leading role in informing Federal agencies concerning, and promoting the adoption of and
compliance with, procurement requirements for
biobased products by Federal agencies; and
‘‘(iv) not less than once every 2 years, submit to
Congress a report that—
‘‘(I) describes the progress made in carrying
out this subsection; and
‘‘(II) contains a summary of the information
reported pursuant to subparagraph (B).
‘‘(B) OTHER AGENCIES.—To assist the Office of Federal
Procurement Policy in carrying out subparagraph (A)—
‘‘(i) each procuring agency shall submit each year
to the Office of Federal Procurement Policy, to the
maximum extent practicable, information concerning—

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‘‘(I) actions taken to implement paragraph (2);
‘‘(II) the results of the annual review and monitoring program established under paragraph
(2)(C)(iv);
‘‘(III) the number and dollar value of contracts
entered into during the year that include the direct
procurement of biobased products;
‘‘(IV) the number of service and construction
(including renovations) contracts entered into
during the year that include language on the use
of biobased products; and
‘‘(V) the types and dollar value of biobased
products actually used by contractors in carrying
out service and construction (including renovations) contracts during the previous year; and
‘‘(ii) the General Services Administration and the
Defense Logistics Agency shall submit each year to
the Office of Federal Procurement Policy information
concerning, to the maximum extent practicable, the
types and dollar value of biobased products purchased
by procuring agencies.
‘‘(C) PROCUREMENT SUBJECT TO OTHER LAW.—Any
procurement by any Federal agency that is subject to regulations of the Administrator under section 6002 of the
Solid Waste Disposal Act (42 U.S.C. 6962) shall not be
subject to the requirements of this section to the extent
that the requirements are inconsistent with the regulations.
‘‘(b) LABELING.—
‘‘(1) IN GENERAL.—The Secretary, in consultation with the
Administrator, shall establish a voluntary program under which
the Secretary authorizes producers of biobased products to use
the label ‘USDA Certified Biobased Product’.
‘‘(2) ELIGIBILITY CRITERIA.—
‘‘(A) CRITERIA.—
‘‘(i) IN GENERAL.—Not later than 90 days after
the date of the enactment of the Food, Conservation,
and Energy Act of 2008 and except as provided in
clause (ii), the Secretary, in consultation with the
Administrator and representatives from small and
large businesses, academia, other Federal agencies,
and such other persons as the Secretary considers
appropriate, shall issue criteria (as of the date of enactment of that Act) for determining which products may
qualify to receive the label under paragraph (1).
‘‘(ii) EXCEPTION.—Clause (i) shall not apply to final
criteria that have been issued (as of the date of enactment of that Act) by the Secretary.
‘‘(B) REQUIREMENTS.—Criteria issued under subparagraph (A) shall—
‘‘(i) encourage the purchase of products with the
maximum biobased content;
‘‘(ii) provide that the Secretary may designate as
biobased for the purposes of the voluntary program
established under this subsection finished products
that contain significant portions of biobased materials
or components; and

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‘‘(iii) to the maximum extent practicable, be consistent with the guidelines issued under subsection
(a)(3).
‘‘(3) USE OF LABEL.—The Secretary shall ensure that the
label referred to in paragraph (1) is used only on products
that meet the criteria issued pursuant to paragraph (2).
‘‘(c) RECOGNITION.—The Secretary shall—
‘‘(1) establish a program to recognize Federal agencies and
private entities that use a substantial amount of biobased products; and
‘‘(2) encourage Federal agencies to establish incentives programs to recognize Federal employees or contractors that make
exceptional contributions to the expanded use of biobased products.
‘‘(d) LIMITATION.—Nothing in this section shall apply to the
procurement of motor vehicle fuels, heating oil, or electricity.
‘‘(e) INCLUSION.—Effective beginning on the date that is 90
days after the date of enactment of the Food, Conservation, and
Energy Act of 2008, the Architect of the Capitol, the Sergeant
at Arms of the Senate, and the Chief Administrative Officer of
the House of Representatives shall consider the biobased product
designations made under this section in making procurement
decisions for the Capitol Complex.
‘‘(f) NATIONAL TESTING CENTER REGISTRY.—The Secretary shall
establish a national registry of testing centers for biobased products
that will serve biobased product manufacturers.
‘‘(g) REPORTS.—
‘‘(1) IN GENERAL.—Not later than 180 days after the date
of enactment of the Food, Conservation, and Energy Act of
2008 and each year thereafter, the Secretary shall submit to
Congress a report on the implementation of this section.
‘‘(2) CONTENTS.—The report shall include—
‘‘(A) a comprehensive management plan that establishes tasks, milestones, and timelines, organizational roles
and responsibilities, and funding allocations for fully implementing this section; and
‘‘(B) information on the status of implementation of—
‘‘(i) item designations (including designation of
intermediate ingredients and feedstocks); and
‘‘(ii) the voluntary labeling program established
under subsection (b).
‘‘(h) FUNDING.—
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity
Credit Corporation, the Secretary shall use to provide mandatory funding for biobased products testing and labeling as
required to carry out this section—
‘‘(A) $1,000,000 for fiscal year 2008; and
‘‘(B) $2,000,000 for each of fiscal years 2009 through
2012.
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other
funds made available to carry out this section, there is authorized to be appropriated to carry out this section $2,000,000
for each of fiscal years 2009 through 2012.

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7 USC 8103.

PUBLIC LAW 110–246—JUNE 18, 2008

‘‘SEC. 9003. BIOREFINERY ASSISTANCE.

‘‘(a) PURPOSE.—The purpose of this section is to assist in the
development of new and emerging technologies for the development
of advanced biofuels, so as to—
‘‘(1) increase the energy independence of the United States;
‘‘(2) promote resource conservation, public health, and the
environment;
‘‘(3) diversify markets for agricultural and forestry products
and agriculture waste material; and
‘‘(4) create jobs and enhance the economic development
of the rural economy.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an
individual, entity, Indian tribe, or unit of State or local government, including a corporation, farm cooperative, farmer cooperative organization, association of agricultural producers,
National Laboratory, institution of higher education, rural electric cooperative, public power entity, or consortium of any of
those entities.
‘‘(2) ELIGIBLE TECHNOLOGY.—The term ‘eligible technology’
means, as determined by the Secretary—
‘‘(A) a technology that is being adopted in a viable
commercial-scale operation of a biorefinery that produces
an advanced biofuel; and
‘‘(B) a technology not described in subparagraph (A)
that has been demonstrated to have technical and economic
potential for commercial application in a biorefinery that
produces an advanced biofuel.
‘‘(c) ASSISTANCE.—The Secretary shall make available to eligible
entities—
‘‘(1) grants to assist in paying the costs of the development
and construction of demonstration-scale biorefineries to demonstrate the commercial viability of 1 or more processes for
converting renewable biomass to advanced biofuels; and
‘‘(2) guarantees for loans made to fund the development,
construction, and retrofitting of commercial-scale biorefineries
using eligible technology.
‘‘(d) GRANTS.—
‘‘(1) COMPETITIVE BASIS.—The Secretary shall award grants
under subsection (c)(1) on a competitive basis.
‘‘(2) SELECTION CRITERIA.—
‘‘(A) IN GENERAL.—In approving grant applications, the
Secretary shall establish a priority scoring system that
assigns priority scores to each application and only approve
applications that exceed a specified minimum, as determined by the Secretary.
‘‘(B) FEASIBILITY.—In approving a grant application,
the Secretary shall determine the technical and economic
feasibility of the project based on a feasibility study of
the project described in the application conducted by an
independent third party.
‘‘(C) SCORING SYSTEM.—In determining the priority
scoring system, the Secretary shall consider—
‘‘(i) the potential market for the advanced biofuel
and the byproducts produced;

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‘‘(ii) the level of financial participation by the
applicant, including support from non-Federal and private sources;
‘‘(iii) whether the applicant is proposing to use
a feedstock not previously used in the production of
advanced biofuels;
‘‘(iv) whether the applicant is proposing to work
with producer associations or cooperatives;
‘‘(v) whether the applicant has established that
the adoption of the process proposed in the application
will have a positive impact on resource conservation,
public health, and the environment;
‘‘(vi) the potential for rural economic development;
‘‘(vii) whether the area in which the applicant proposes to locate the biorefinery has other similar facilities;
‘‘(viii) whether the project can be replicated; and
‘‘(ix) scalability for commercial use.
‘‘(3) COST SHARING.—
‘‘(A) LIMITS.—The amount of a grant awarded for
development and construction of a biorefinery under subsection (c)(1) shall not exceed an amount equal to 30 percent of the cost of the project.
‘‘(B) FORM OF GRANTEE SHARE.—
‘‘(i) IN GENERAL.—The grantee share of the cost
of a project may be made in the form of cash or material.
‘‘(ii) LIMITATION.—The amount of the grantee share
that is made in the form of material shall not exceed
15 percent of the amount of the grantee share determined under subparagraph (A).
‘‘(e) LOAN GUARANTEES.—
‘‘(1) SELECTION CRITERIA.—
‘‘(A) IN GENERAL.—In approving loan guarantee
applications, the Secretary shall establish a priority scoring
system that assigns priority scores to each application and
only approve applications that exceed a specified minimum,
as determined by the Secretary.
‘‘(B) FEASIBILITY.—In approving a loan guarantee
application, the Secretary shall determine the technical
and economic feasibility of the project based on a feasibility
study of the project described in the application conducted
by an independent third party.
‘‘(C) SCORING SYSTEM.—In determining the priority
scoring system for loan guarantees under subsection (c)(2),
the Secretary shall consider—
‘‘(i) whether the applicant has established a market
for the advanced biofuel and the byproducts produced;
‘‘(ii) whether the area in which the applicant proposes to place the biorefinery has other similar facilities;
‘‘(iii) whether the applicant is proposing to use
a feedstock not previously used in the production of
advanced biofuels;
‘‘(iv) whether the applicant is proposing to work
with producer associations or cooperatives;

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‘‘(v) the level of financial participation by the
applicant, including support from non-Federal and private sources;
‘‘(vi) whether the applicant has established that
the adoption of the process proposed in the application
will have a positive impact on resource conservation,
public health, and the environment;
‘‘(vii) whether the applicant can establish that if
adopted, the biofuels production technology proposed
in the application will not have any significant negative
impacts on existing manufacturing plants or other
facilities that use similar feedstocks;
‘‘(viii) the potential for rural economic development;
‘‘(ix) the level of local ownership proposed in the
application; and
‘‘(x) whether the project can be replicated.
‘‘(2) LIMITATIONS.—
‘‘(A) MAXIMUM AMOUNT OF LOAN GUARANTEED.—The
principal amount of a loan guaranteed under subsection
(c)(2) may not exceed $250,000,000.
‘‘(B) MAXIMUM PERCENTAGE OF LOAN GUARANTEED.—
‘‘(i) IN GENERAL.—Except as otherwise provided
in this subparagraph, a loan guaranteed under subsection (c)(2) shall be in an amount not to exceed
80 percent of the project costs, as determined by the
Secretary.
‘‘(ii) OTHER DIRECT FEDERAL FUNDING.—The
amount of a loan guaranteed for a project under subsection (c)(2) shall be reduced by the amount of other
direct Federal funding that the eligible entity receives
for the same project.
‘‘(iii) AUTHORITY TO GUARANTEE THE LOAN.—The
Secretary may guarantee up to 90 percent of the principal and interest due on a loan guaranteed under
subsection (c)(2).
‘‘(C) LOAN GUARANTEE FUND DISTRIBUTION.—Of the
funds made available for loan guarantees for a fiscal year
under subsection (h), 50 percent of the funds shall be
reserved for obligation during the second half of the fiscal
year.
‘‘(f) CONSULTATION.—In carrying out this section, the Secretary
shall consult with the Secretary of Energy.
‘‘(g) CONDITION ON PROVISION OF ASSISTANCE.—
‘‘(1) IN GENERAL.—As a condition of receiving a grant or
loan guarantee under this section, an eligible entity shall
ensure that all laborers and mechanics employed by contractors
or subcontractors in the performance of construction work
financed, in whole or in part, with the grant or loan guarantee,
as the case may be, shall be paid wages at rates not less
than those prevailing on similar construction in the locality,
as determined by the Secretary of Labor in accordance with
sections 3141 through 3144, 3146, and 3147 of title 40, United
States Code.
‘‘(2) AUTHORITY AND FUNCTIONS.—The Secretary of Labor
shall have, with respect to the labor standards described in

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paragraph (1), the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App) and section
3145 of title 40, United States Code.
‘‘(h) FUNDING.—
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity
Credit Corporation, the Secretary shall use for the cost of
loan guarantees under this section, to remain available until
expended—
‘‘(A) $75,000,000 for fiscal year 2009; and
‘‘(B) $245,000,000 for fiscal year 2010.
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other
funds made available to carry out this section, there is authorized to be appropriated to carry out this section $150,000,000
for each of fiscal years 2009 through 2012.
‘‘SEC. 9004. REPOWERING ASSISTANCE.

7 USC 8104.

‘‘(a) IN GENERAL.—The Secretary shall carry out a program
to encourage biorefineries in existence on the date of enactment
of the Food, Conservation, and Energy Act of 2008 to replace fossil
fuels used to produce heat or power to operate the biorefineries
by making payments for—
‘‘(1) the installation of new systems that use renewable
biomass; or
‘‘(2) the new production of energy from renewable biomass.
‘‘(b) PAYMENTS.—
‘‘(1) IN GENERAL.—The Secretary may make payments
under this section to any biorefinery that meets the requirements of this section for a period determined by the Secretary.
‘‘(2) AMOUNT.—The Secretary shall determine the amount
of payments to be made under this section to a biorefinery
after considering—
‘‘(A) the quantity of fossil fuels a renewable biomass
system is replacing;
‘‘(B) the percentage reduction in fossil fuel used by
the biorefinery that will result from the installation of
the renewable biomass system; and
‘‘(C) the cost and cost effectiveness of the renewable
biomass system.
‘‘(c) ELIGIBILITY.—To be eligible to receive a payment under
this section, a biorefinery shall demonstrate to the Secretary that
the renewable biomass system of the biorefinery is feasible based
on an independent feasibility study that takes into account the
economic, technical and environmental aspects of the system.
‘‘(d) FUNDING.—
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity
Credit Corporation, the Secretary shall use to make payments
under this section $35,000,000 for fiscal year 2009, to remain
available until expended.
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other
funds made available to carry out this section, there is authorized to be appropriated to carry out this section $15,000,000
for each of fiscal years 2009 through 2012.

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‘‘SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

7 USC 8105.

‘‘(a) DEFINITION OF ELIGIBLE PRODUCER.—In this section, the
term ‘eligible producer’ means a producer of advanced biofuels.

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‘‘(b) PAYMENTS.—The Secretary shall make payments to eligible
producers to support and ensure an expanding production of
advanced biofuels.
‘‘(c) CONTRACTS.—To receive a payment, an eligible producer
shall—
‘‘(1) enter into a contract with the Secretary for production
of advanced biofuels; and
‘‘(2) submit to the Secretary such records as the Secretary
may require as evidence of the production of advanced biofuels.
‘‘(d) BASIS FOR PAYMENTS.—The Secretary shall make payments
under this section to eligible producers based on—
‘‘(1) the quantity and duration of production by the eligible
producer of an advanced biofuel;
‘‘(2) the net nonrenewable energy content of the advanced
biofuel, if sufficient data is available, as determined by the
Secretary; and
‘‘(3) other appropriate factors, as determined by the Secretary.
‘‘(e) EQUITABLE DISTRIBUTION.—The Secretary may limit the
amount of payments that may be received by a single eligible
producer under this section in order to distribute the total amount
of funding available in an equitable manner.
‘‘(f) OTHER REQUIREMENTS.—To receive a payment under this
section, an eligible producer shall meet any other requirements
of Federal and State law (including regulations) applicable to the
production of advanced biofuels.
‘‘(g) FUNDING.—
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section, to remain available until expended—
‘‘(A) $55,000,000 for fiscal year 2009;
‘‘(B) $55,000,000 for fiscal year 2010;
‘‘(C) $85,000,000 for fiscal year 2011; and
‘‘(D) $105,000,000 for fiscal year 2012.
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other
funds made available to carry out this section, there is authorized to be appropriated to carry out this section $25,000,000
for each of fiscal years 2009 through 2012.
‘‘(3) LIMITATION.—Of the funds provided for each fiscal
year, not more than 5 percent of the funds shall be made
available to eligible producers for production at facilities with
a total refining capacity exceeding 150,000,000 gallons per year.

7 USC 8106.

‘‘SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.

Grants.

‘‘(a) ESTABLISHMENT.—The Secretary shall, under such terms
and conditions as the Secretary determines to be appropriate, make
competitive grants to eligible entities to educate governmental and
private entities that operate vehicle fleets, other interested entities
(as determined by the Secretary), and the public about the benefits
of biodiesel fuel use.
‘‘(b) ELIGIBLE ENTITIES.—To receive a grant under subsection
(b), an entity shall—
‘‘(1) be a nonprofit organization or institution of higher
education;
‘‘(2) have demonstrated knowledge of biodiesel fuel production, use, or distribution; and

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‘‘(3) have demonstrated the ability to conduct educational
and technical support programs.
‘‘(c) CONSULTATION.—In carrying out this section, the Secretary
shall consult with the Secretary of Energy.
‘‘(d) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $1,000,000
for each of fiscal years 2008 through 2012.

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‘‘SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

7 USC 8107.

‘‘(a) ESTABLISHMENT.—The Secretary, in consultation with the
Secretary of Energy, shall establish a Rural Energy for America
Program to promote energy efficiency and renewable energy
development for agricultural producers and rural small businesses
through—
‘‘(1) grants for energy audits and renewable energy development assistance; and
‘‘(2) financial assistance for energy efficiency improvements
and renewable energy systems.
‘‘(b) ENERGY AUDITS AND RENEWABLE ENERGY DEVELOPMENT
ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary shall make competitive
grants to eligible entities to provide assistance to agricultural
producers and rural small businesses—
‘‘(A) to become more energy efficient; and
‘‘(B) to use renewable energy technologies and
resources.
‘‘(2) ELIGIBLE ENTITIES.—An eligible entity under this subsection is—
‘‘(A) a unit of State, tribal, or local government;
‘‘(B) a land-grant college or university or other institution of higher education;
‘‘(C) a rural electric cooperative or public power entity;
and
‘‘(D) any other similar entity, as determined by the
Secretary.
‘‘(3) SELECTION CRITERIA.—In reviewing applications of
eligible entities to receive grants under paragraph (1), the
Secretary shall consider—
‘‘(A) the ability and expertise of the eligible entity
in providing professional energy audits and renewable
energy assessments;
‘‘(B) the geographic scope of the program proposed
by the eligible entity in relation to the identified need;
‘‘(C) the number of agricultural producers and rural
small businesses to be assisted by the program;
‘‘(D) the potential of the proposed program to produce
energy savings and environmental benefits;
‘‘(E) the plan of the eligible entity for performing outreach and providing information and assistance to agricultural producers and rural small businesses on the benefits
of energy efficiency and renewable energy development;
and
‘‘(F) the ability of the eligible entity to leverage other
sources of funding.
‘‘(4) USE OF GRANT FUNDS.—A recipient of a grant under
paragraph (1) shall use the grant funds to assist agricultural
producers and rural small businesses by—

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‘‘(A) conducting and promoting energy audits; and
‘‘(B) providing recommendations and information on
how—
‘‘(i) to improve the energy efficiency of the operations of the agricultural producers and rural small
businesses; and
‘‘(ii) to use renewable energy technologies and
resources in the operations.
‘‘(5) LIMITATION.—Grant recipients may not use more than
5 percent of a grant for administrative expenses.
‘‘(6) COST SHARING.—A recipient of a grant under paragraph
(1) that conducts an energy audit for an agricultural producer
or rural small business under paragraph (4) shall require that,
as a condition of the energy audit, the agricultural producer
or rural small business pay at least 25 percent of the cost
of the energy audit, which shall be retained by the eligible
entity for the cost of the energy audit.
‘‘(c) FINANCIAL ASSISTANCE FOR ENERGY EFFICIENCY IMPROVEMENTS AND RENEWABLE ENERGY SYSTEMS.—
‘‘(1) IN GENERAL.—In addition to any similar authority,
the Secretary shall provide loan guarantees and grants to agricultural producers and rural small businesses—
‘‘(A) to purchase renewable energy systems, including
systems that may be used to produce and sell electricity;
and
‘‘(B) to make energy efficiency improvements.
‘‘(2) AWARD CONSIDERATIONS.—In determining the amount
of a loan guarantee or grant provided under this section, the
Secretary shall take into consideration, as applicable—
‘‘(A) the type of renewable energy system to be purchased;
‘‘(B) the estimated quantity of energy to be generated
by the renewable energy system;
‘‘(C) the expected environmental benefits of the renewable energy system;
‘‘(D) the quantity of energy savings expected to be
derived from the activity, as demonstrated by an energy
audit;
‘‘(E) the estimated period of time for the energy savings
generated by the activity to equal the cost of the activity;
‘‘(F) the expected energy efficiency of the renewable
energy system; and
‘‘(G) other appropriate factors.
‘‘(3) FEASIBILITY STUDIES.—
‘‘(A) IN GENERAL.—The Secretary may provide assistance in the form of grants to an agricultural producer
or rural small business to conduct a feasibility study for
a project for which assistance may be provided under this
subsection.
‘‘(B) LIMITATION.—The Secretary shall use not more
than 10 percent of the funds made available to carry out
this subsection to provide assistance described in subparagraph (A).
‘‘(C) AVOIDANCE OF DUPLICATIVE ASSISTANCE.—An
entity shall be ineligible to receive assistance to carry
out a feasibility study for a project under this paragraph

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if the entity has received other Federal or State assistance
for a feasibility study for the project.
‘‘(4) LIMITS.—
‘‘(A) GRANTS.—The amount of a grant under this subsection shall not exceed 25 percent of the cost of the activity
carried out using funds from the grant.
‘‘(B) MAXIMUM AMOUNT OF LOAN GUARANTEES.—The
amount of a loan guaranteed under this subsection shall
not exceed $25,000,000.
‘‘(C) MAXIMUM AMOUNT OF COMBINED GRANT AND LOAN
GUARANTEE.—The combined amount of a grant and loan
guaranteed under this subsection shall not exceed 75 percent of the cost of the activity funded under this subsection.
‘‘(d) OUTREACH.—The Secretary shall ensure, to the maximum
extent practicable, that adequate outreach relating to this section
is being conducted at the State and local levels.
‘‘(e) LOWER-COST ACTIVITIES.—
‘‘(1) LIMITATION ON USE OF FUNDS.—Except as provided
in paragraph (2), the Secretary shall use not less than 20
percent of the funds made available under subsection (g) to
provide grants of $20,000 or less.
‘‘(2) EXCEPTION.—Effective beginning on June 30 of each
fiscal year, paragraph (1) shall not apply to funds made available under subsection (g) for the fiscal year.
‘‘(f) REPORT.—Not later than 4 years after the date of enactment
of the Food, Conservation, and Energy Act of 2008, the Secretary
shall submit to Congress a report on the implementation of this
section, including the outcomes achieved by projects funded under
this section.
‘‘(g) FUNDING.—
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section, to remain available until expended—
‘‘(A) $55,000,000 for fiscal year 2009;
‘‘(B) $60,000,000 for fiscal year 2010;
‘‘(C) $70,000,000 for fiscal year 2011; and
‘‘(D) $70,000,000 for fiscal year 2012.
‘‘(2) AUDIT AND TECHNICAL ASSISTANCE FUNDING.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), of the
funds made available for each fiscal year under paragraph
(1), 4 percent shall be available to carry out subsection
(b).
‘‘(B) OTHER USE.—Funds not obligated under subparagraph (A) by April 1 of each fiscal year to carry out subsection (b) shall become available to carry out subsection
(c).
‘‘(3) DISCRETIONARY FUNDING.—In addition to any other
funds made available to carry out this section, there is authorized to be appropriated to carry out this section $25,000,000
for each of fiscal years 2009 through 2012.

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‘‘SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

Effective date.

Deadline.

7 USC 8108.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BIOBASED PRODUCT.—The term ‘biobased product’
means—
‘‘(A) an industrial product (including chemicals, materials, and polymers) produced from biomass; or

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‘‘(B) a commercial or industrial product (including
animal feed and electric power) derived in connection with
the conversion of biomass to fuel.
‘‘(2) DEMONSTRATION.—The term ‘demonstration’ means
demonstration of technology in a pilot plant or semi-works
scale facility, including a plant or facility located on a farm.
‘‘(3) INITIATIVE.—The term ‘Initiative’ means the Biomass
Research and Development Initiative established under subsection (e).
‘‘(b) COOPERATION AND COORDINATION IN BIOMASS RESEARCH
AND DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary of Agriculture and the
Secretary of Energy shall coordinate policies and procedures
that promote research and development regarding the production of biofuels and biobased products.
‘‘(2) POINTS OF CONTACT.—To coordinate research and
development programs and activities relating to biofuels and
biobased products that are carried out by their respective
departments—
‘‘(A) the Secretary of Agriculture shall designate, as
the point of contact for the Department of Agriculture,
an officer of the Department of Agriculture appointed by
the President to a position in the Department before the
date of the designation, by and with the advice and consent
of the Senate; and
‘‘(B) the Secretary of Energy shall designate, as the
point of contact for the Department of Energy, an officer
of the Department of Energy appointed by the President
to a position in the Department before the date of the
designation, by and with the advice and consent of the
Senate.
‘‘(c) BIOMASS RESEARCH AND DEVELOPMENT BOARD.—
‘‘(1) ESTABLISHMENT.—There is established the Biomass
Research and Development Board to carry out the duties
described in paragraph (3).
‘‘(2) MEMBERSHIP.—The Board shall consist of—
‘‘(A) the point of contacts of the Department of Energy
and the Department of Agriculture, who shall serve as
cochairpersons of the Board;
‘‘(B) a senior officer of each of the Department of the
Interior, the Environmental Protection Agency, the
National Science Foundation, and the Office of Science
and Technology Policy, each of whom shall have a rank
that is equivalent to the rank of the points of contact;
and
‘‘(C) at the option of the Secretary of Agriculture and
the Secretary of Energy, other members appointed by the
Secretaries (after consultation with the Board).
‘‘(3) DUTIES.—The Board shall—
‘‘(A) coordinate research and development activities
relating to biofuels and biobased products—
‘‘(i) between the Department of Agriculture and
the Department of Energy; and
‘‘(ii) with other departments and agencies of the
Federal Government;
‘‘(B) provide recommendations to the points of contact
concerning administration of this title;

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‘‘(C) ensure that—
‘‘(i) solicitations are open and competitive with
awards made annually; and
‘‘(ii) objectives and evaluation criteria of the solicitations are clearly stated and minimally prescriptive,
with no areas of special interest; and
‘‘(D) ensure that the panel of scientific and technical
peers assembled under subsection (e) to review proposals
is composed predominantly of independent experts selected
from outside the Departments of Agriculture and Energy.
‘‘(4) FUNDING.—Each agency represented on the Board is
encouraged to provide funds for any purpose under this section.
‘‘(5) MEETINGS.—The Board shall meet at least quarterly.
‘‘(d) BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL
ADVISORY COMMITTEE.—
‘‘(1) ESTABLISHMENT.—There is established the Biomass
Research and Development Technical Advisory Committee to
carry out the duties described in paragraph (3).
‘‘(2) MEMBERSHIP.—
‘‘(A) IN GENERAL.—The Advisory Committee shall consist of—
‘‘(i) an individual affiliated with the biofuels
industry;
‘‘(ii) an individual affiliated with the biobased
industrial and commercial products industry;
‘‘(iii) an individual affiliated with an institution
of higher education who has expertise in biofuels and
biobased products;
‘‘(iv) 2 prominent engineers or scientists from
government or academia who have expertise in biofuels
and biobased products;
‘‘(v) an individual affiliated with a commodity trade
association;
‘‘(vi) 2 individuals affiliated with environmental
or conservation organizations;
‘‘(vii) an individual associated with State government who has expertise in biofuels and biobased products;
‘‘(viii) an individual with expertise in energy and
environmental analysis;
‘‘(ix) an individual with expertise in the economics
of biofuels and biobased products;
‘‘(x) an individual with expertise in agricultural
economics;
‘‘(xi) an individual with expertise in plant biology
and biomass feedstock development;
‘‘(xii) an individual with expertise in agronomy,
crop science, or soil science; and
‘‘(xiii) at the option of the points of contact, other
members.
‘‘(B) APPOINTMENT.—The members of the Advisory
Committee shall be appointed by the points of contact.
‘‘(3) DUTIES.—The Advisory Committee shall—
‘‘(A) advise the points of contact with respect to the
Initiative; and
‘‘(B) evaluate and make recommendations in writing
to the Board regarding whether—

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‘‘(i) funds authorized for the Initiative are distributed and used in a manner that is consistent with
the objectives, purposes, and considerations of the Initiative;
‘‘(ii) solicitations are open and competitive with
awards made annually;
‘‘(iii) objectives and evaluation criteria of the solicitations are clearly stated and minimally prescriptive,
with no areas of special interest;
‘‘(iv) the points of contact are funding proposals
under this title that are selected on the basis of merit,
as determined by an independent panel of scientific
and technical peers predominantly from outside the
Departments of Agriculture and Energy; and
‘‘(v) activities under this title are carried out in
accordance with this title.
‘‘(4) COORDINATION.—To avoid duplication of effort, the
Advisory Committee shall coordinate its activities with those
of other Federal advisory committees working in related areas.
‘‘(5) MEETINGS.—The Advisory Committee shall meet at
least quarterly.
‘‘(6) TERMS.—Members of the Advisory Committee shall
be appointed for a term of 3 years.
‘‘(e) BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.—
‘‘(1) IN GENERAL.—The Secretary of Agriculture and the
Secretary of Energy, acting through their respective points
of contact and in consultation with the Board, shall establish
and carry out a Biomass Research and Development Initiative
under which competitively awarded grants, contracts, and
financial assistance are provided to, or entered into with,
eligible entities to carry out research on and development and
demonstration of—
‘‘(A) biofuels and biobased products; and
‘‘(B) the methods, practices, and technologies, for the
production of biofuels and biobased products.
‘‘(2) OBJECTIVES.—The objectives of the Initiative are to
develop—
‘‘(A) technologies and processes necessary for abundant
commercial production of biofuels at prices competitive with
fossil fuels;
‘‘(B) high-value biobased products—
‘‘(i) to enhance the economic viability of biofuels
and power;
‘‘(ii) to serve as substitutes for petroleum-based
feedstocks and products; and
‘‘(iii) to enhance the value of coproducts produced
using the technologies and processes; and
‘‘(C) a diversity of economically and environmentally
sustainable domestic sources of renewable biomass for
conversion to biofuels, bioenergy, and biobased products.
‘‘(3) TECHNICAL AREAS.—The Secretary of Agriculture and
the Secretary of Energy, in consultation with the Administrator
of the Environmental Protection Agency and heads of other
appropriate departments and agencies (referred to in this subsection as the ‘Secretaries’), shall direct the Initiative in the
3 following areas:

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‘‘(A) FEEDSTOCKS DEVELOPMENT.—Research, development, and demonstration activities regarding feedstocks
and feedstock logistics (including the harvest, handling,
transport, preprocessing, and storage) relevant to production of raw materials for conversion to biofuels and biobased
products.
‘‘(B) BIOFUELS AND BIOBASED PRODUCTS DEVELOPMENT.—Research, development, and demonstration activities to support—
‘‘(i) the development of diverse cost-effective technologies for the use of cellulosic biomass in the production of biofuels and biobased products; and
‘‘(ii) product diversification through technologies
relevant to production of a range of biobased products
(including chemicals, animal feeds, and cogenerated
power) that potentially can increase the feasibility of
fuel production in a biorefinery.
‘‘(C) BIOFUELS DEVELOPMENT ANALYSIS.—
‘‘(i) STRATEGIC GUIDANCE.—The development of
analysis that provides strategic guidance for the
application of renewable biomass technologies to
improve sustainability and environmental quality, cost
effectiveness, security, and rural economic development.
‘‘(ii) ENERGY AND ENVIRONMENTAL IMPACT.—
Development of systematic evaluations of the impact
of expanded biofuel production on the environment
(including forest land) and on the food supply for
humans and animals, including the improvement and
development of tools for life cycle analysis of current
and potential biofuels.
‘‘(iii) ASSESSMENT OF FEDERAL LAND.—Assessments
of the potential of Federal land resources to increase
the production of feedstocks for biofuels and biobased
products, consistent with the integrity of soil and water
resources and with other environmental considerations.
‘‘(4) ADDITIONAL CONSIDERATIONS.—Within the technical
areas described in paragraph (3), the Secretaries shall support
research and development—
‘‘(A) to create continuously expanding opportunities for
participants in existing biofuels production by seeking
synergies and continuity with current technologies and
practices;
‘‘(B) to maximize the environmental, economic, and
social benefits of production of biofuels and derived
biobased products on a large scale; and
‘‘(C) to facilitate small-scale production and local and
on-farm use of biofuels, including the development of smallscale gasification technologies for production of biofuel from
cellulosic feedstocks.
‘‘(5) ELIGIBILITY.—To be eligible for a grant, contract, or
assistance under this section, an applicant shall be—
‘‘(A) an institution of higher education;
‘‘(B) a National Laboratory;
‘‘(C) a Federal research agency;
‘‘(D) a State research agency;
‘‘(E) a private sector entity;

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‘‘(F) a nonprofit organization; or
‘‘(G) a consortium of 2 or more entities described in
subparagraphs (A) through (F).
‘‘(6) ADMINISTRATION.—
‘‘(A) IN GENERAL.—After consultation with the Board,
the points of contact shall—
‘‘(i) publish annually 1 or more joint requests for
proposals for grants, contracts, and assistance under
this subsection;
‘‘(ii) require that grants, contracts, and assistance
under this section be awarded based on a scientific
peer review by an independent panel of scientific and
technical peers;
‘‘(iii) give special consideration to applications
that—
‘‘(I) involve a consortia of experts from multiple institutions;
‘‘(II) encourage the integration of disciplines
and application of the best technical resources;
and
‘‘(III) increase the geographic diversity of demonstration projects; and
‘‘(iv) require that the technical areas described in
each of subparagraphs (A), (B), and (C) of paragraph
(3) receive not less than 15 percent of funds made
available to carry out this section.
‘‘(B) COST SHARE.—
‘‘(i) RESEARCH AND DEVELOPMENT PROJECTS.—
‘‘(I) IN GENERAL.—Except as provided in subclause (II), the non-Federal share of the cost of
a research or development project under this section shall be not less than 20 percent.
‘‘(II) REDUCTION.—The Secretary of Agriculture or the Secretary of Energy, as appropriate,
may reduce the non-Federal share required under
subclause (I) if the appropriate Secretary determines the reduction to be necessary and appropriate.
‘‘(ii)
DEMONSTRATION
AND
COMMERCIAL
PROJECTS.—The non-Federal share of the cost of a demonstration or commercial project under this section
shall be not less than 50 percent.
‘‘(C) TECHNOLOGY AND INFORMATION TRANSFER.—The
Secretary of Agriculture and the Secretary of Energy shall
ensure that applicable research results and technologies
from the Initiative are—
‘‘(i) adapted, made available, and disseminated,
as appropriate; and
‘‘(ii) included in the best practices database established under section 1672C(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990.
‘‘(f) ADMINISTRATIVE SUPPORT AND FUNDS.—
‘‘(1) IN GENERAL.—The Secretary of Energy and the Secretary of Agriculture may provide such administrative support
and funds of the Department of Energy and the Department
of Agriculture to the Board and the Advisory Committee as

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are necessary to enable the Board and the Advisory Committee
to carry out their duties under this section.
‘‘(2) OTHER AGENCIES.—The heads of the agencies referred
to in subsection (c)(2)(B), and the other members of the Board
appointed under subsection (c)(2)(C), are encouraged to provide
administrative support and funds of their respective agencies
to the Board and the Advisory Committee.
‘‘(3) LIMITATION.—Not more than 4 percent of the amount
made available for each fiscal year under subsection (h) may
be used to pay the administrative costs of carrying out this
section.
‘‘(g) REPORTS.—For each fiscal year for which funds are made
available to carry out this section, the Secretary of Energy and
the Secretary of Agriculture shall jointly submit to Congress a
detailed report on—
‘‘(1) the status and progress of the Initiative, including
a report from the Advisory Committee on whether funds appropriated for the Initiative have been distributed and used in
a manner that is consistent with the objectives and requirements of this section;
‘‘(2) the general status of cooperation and research and
development efforts carried out at each agency with respect
to biofuels and biobased products; and
‘‘(3) the plans of the Secretary of Energy and the Secretary
of Agriculture for addressing concerns raised in the report,
including concerns raised by the Advisory Committee.
‘‘(h) FUNDING.—
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity
Credit Corporation, the Secretary of Agriculture shall use to
carry out this section, to remain available until expended—
‘‘(A) $20,000,000 for fiscal year 2009;
‘‘(B) $28,000,000 for fiscal year 2010;
‘‘(C) $30,000,000 for fiscal year 2011; and
‘‘(D) $40,000,000 for fiscal year 2012.
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other
funds made available to carry out this section, there is authorized to be appropriated to carry out this section $35,000,000
for each of fiscal years 2009 through 2012.

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‘‘SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.

7 USC 8109.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE RURAL COMMUNITY.—The term ‘eligible rural
community’ means a community located in a rural area (as
defined in section 343(a)(13)(A) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(13)(A))).
‘‘(2) INITIATIVE.—The term ‘Initiative’ means the Rural
Energy Self-Sufficiency Initiative established under this section.
‘‘(3) INTEGRATED RENEWABLE ENERGY SYSTEM.—The term
‘integrated renewable energy system’ means a community-wide
energy system that—
‘‘(A) reduces conventional energy use; and
‘‘(B) increases the use of energy from renewable
sources.
‘‘(b) ESTABLISHMENT.—The Secretary shall establish a Rural
Energy Self-Sufficiency Initiative to provide financial assistance

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for the purpose of enabling eligible rural communities to substantially increase the energy self-sufficiency of the eligible rural
communities.
‘‘(c) GRANT ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary shall make grants available under the Initiative to eligible rural communities to carry
out an activity described in paragraph (2).
‘‘(2) USE OF GRANT FUNDS.—An eligible rural community
may use a grant—
‘‘(A) to conduct an energy assessment that assesses
the total energy use of all energy users in the eligible
rural community;
‘‘(B) to formulate and analyze ideas for reducing energy
usage by the eligible rural community from conventional
sources; and
‘‘(C) to develop and install an integrated renewable
energy system.
‘‘(3) GRANT SELECTION.—
‘‘(A) APPLICATION.—To be considered for a grant, an
eligible rural community shall submit an application to
the Secretary that describes the ways in which the community would use the grant to carry out an activity described
in paragraph (2).
‘‘(B) PREFERENCE.—The Secretary shall give preference
to those applications that propose to carry out an activity
in coordination with—
‘‘(i) institutions of higher education or nonprofit
foundations of institutions of higher education;
‘‘(ii) Federal, State, or local government agencies;
‘‘(iii) public or private power generation entities;
or
‘‘(iv) government entities with responsibility for
water or natural resources.
‘‘(4) REPORT.—An eligible rural community receiving a
grant under the Initiative shall submit to the Secretary a
report on the project of the eligible rural community.
‘‘(5) COST-SHARING.—The amount of a grant under the Initiative shall not exceed 50 percent of the cost of the activities
described in the application.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $5,000,000 for each
of fiscal years 2009 through 2012.

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7 USC 8110.

‘‘SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BIOENERGY.—The term ‘bioenergy’ means fuel grade
ethanol and other biofuel.
‘‘(2) BIOENERGY PRODUCER.—The term ‘bioenergy producer’
means a producer of bioenergy that uses an eligible commodity
to produce bioenergy under this section.
‘‘(3) ELIGIBLE COMMODITY.—The term ‘eligible commodity’
means a form of raw or refined sugar or in-process sugar
that is eligible to be marketed in the United States for human
consumption or to be used for the extraction of sugar for human
consumption.

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‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an
entity located in the United States that markets an eligible
commodity in the United States.
‘‘(b) FEEDSTOCK FLEXIBILITY PROGRAM.—
‘‘(1) IN GENERAL.—
‘‘(A) PURCHASES AND SALES.—For each of the 2008
through 2012 crops, the Secretary shall purchase eligible
commodities from eligible entities and sell such commodities to bioenergy producers for the purpose of producing
bioenergy in a manner that ensures that section 156 of
the Federal Agriculture Improvement and Reform Act (7
U.S.C. 7272) is operated at no cost to the Federal Government by avoiding forfeitures to the Commodity Credit Corporation.
‘‘(B) COMPETITIVE PROCEDURES.—In carrying out the
purchases and sales required under subparagraph (A), the
Secretary shall, to the maximum extent practicable, use
competitive procedures, including the receiving, offering,
and accepting of bids, when entering into contracts with
eligible entities and bioenergy producers, provided that
such procedures are consistent with the purposes of
subparagraph (A).
‘‘(C) LIMITATION.—The purchase and sale of eligible
commodities under subparagraph (A) shall only be made
in crop years in which such purchases and sales are necessary to ensure that the program authorized under section
156 of the Federal Agriculture Improvement and Reform
Act (7 U.S.C. 7272) is operated at no cost to the Federal
Government by avoiding forfeitures to the Commodity
Credit Corporation.
‘‘(2) NOTICE.—
‘‘(A) IN GENERAL.—As soon as practicable after the
date of enactment of the Food, Conservation, and Energy
Act of 2008 and each September 1 thereafter through September 1, 2012, the Secretary shall provide notice to eligible
entities and bioenergy producers of the quantity of eligible
commodities that shall be made available for purchase
and sale for the crop year following the date of the notice
under this section.
‘‘(B) REESTIMATES.—Not later than the January 1,
April 1, and July 1 of the calendar year following the
date of a notice under subparagraph (A), the Secretary
shall reestimate the quantity of eligible commodities determined under subparagraph (A), and provide notice and
make purchases and sales based on such reestimates.
‘‘(3) COMMODITY CREDIT CORPORATION INVENTORY.—
‘‘(A) DISPOSITIONS.—
‘‘(i) BIOENERGY AND GENERALLY.—Except as provided in clause (ii), to the extent that an eligible commodity is owned and held in inventory by the Commodity Credit Corporation (accumulated pursuant to
the program authorized under section 156 of the Federal Agriculture Improvement and Reform Act (7
U.S.C. 7272)), the Secretary shall—
‘‘(I) sell the eligible commodity to bioenergy
producers under this section consistent with paragraph (1)(C);

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‘‘(II) dispose of the eligible commodity in
accordance with section 156(f)(2) of that Act; or
‘‘(III) otherwise dispose of the eligible commodity through the buyback of certificates of quota
entry.
‘‘(ii) PRESERVATION OF OTHER AUTHORITIES.—
Nothing in this section limits the use of other authorities for the disposition of an eligible commodity held
in the inventory of the Commodity Credit Corporation
for nonfood use or otherwise in a manner that does
not increase the net quantity of sugar available for
human consumption in the United States market, consistent with section 156(f)(1) of the Federal Agriculture
Improvement and Reform Act (7 U.S.C. 7272(f)(1)).
‘‘(B)
EMERGENCY
SHORTAGES.—Notwithstanding
subparagraph (A), if there is an emergency shortage of
sugar for human consumption in the United States market
that is caused by a war, flood, hurricane, or other natural
disaster, or other similar event, the Secretary may dispose
of an eligible commodity that is owned and held in inventory by the Commodity Credit Corporation (accumulated
pursuant to the program authorized under section 156
of the Federal Agriculture Improvement and Reform Act
(7 U.S.C. 7272)) through disposition as authorized under
section 156(f) of that Act or through the use of any other
authority of the Commodity Credit Corporation.
‘‘(4) TRANSFER RULE; STORAGE FEES.—
‘‘(A) GENERAL TRANSFER RULE.—Except with regard
to emergency dispositions under paragraph (3)(B) and as
provided in subparagraph (C), the Secretary shall ensure
that bioenergy producers that purchase eligible commodities pursuant to this section take possession of the eligible
commodities within 30 calendar days of the date of such
purchase from the Commodity Credit Corporation.
‘‘(B) PAYMENT OF STORAGE FEES PROHIBITED.—
‘‘(i) IN GENERAL.—The Secretary shall, to the maximum extent practicable, carry out this section in a
manner that ensures no storage fees are paid by the
Commodity Credit Corporation in the administration
of this section.
‘‘(ii) EXCEPTION.—Clause (i) shall not apply with
respect to any commodities owned and held in inventory by the Commodity Credit Corporation (accumulated pursuant to the program authorized under section
156 of the Federal Agriculture Improvement and
Reform Act (7 U.S.C. 7272)).
‘‘(C) OPTION TO PREVENT STORAGE FEES.—
‘‘(i) IN GENERAL.—The Secretary may enter into
contracts with bioenergy producers to sell eligible
commodities to such producers prior in time to entering
into contracts with eligible entities to purchase the
eligible commodities to be used to satisfy the contracts
entered into with the bioenergy producers.
‘‘(ii) SPECIAL TRANSFER RULE.—If the Secretary
makes a sale and purchase referred to in clause (i),
the Secretary shall ensure that the bioenergy producer
that purchased eligible commodities takes possession

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of such commodities within 30 calendar days of the
date the Commodity Credit Corporation purchases the
eligible commodities.
‘‘(5) RELATION TO OTHER LAWS.—If sugar that is subject
to a marketing allotment under part VII of subtitle B of title
III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa
et seq.) is the subject of a payment under this section, the
sugar shall be considered marketed and shall count against
a processor’s allocation of an allotment under such part, as
applicable.
‘‘(6) FUNDING.—The Secretary shall use the funds, facilities,
and authorities of the Commodity Credit Corporation, including
the use of such sums as are necessary, to carry out this section.

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‘‘SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.

Sugar.

7 USC 8111.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BCAP.—The term ‘BCAP’ means the Biomass Crop
Assistance Program established under this section.
‘‘(2) BCAP PROJECT AREA.—The term ‘BCAP project area’
means an area that—
‘‘(A) has specified boundaries that are submitted to
the Secretary by the project sponsor and subsequently
approved by the Secretary;
‘‘(B) includes producers with contract acreage that will
supply a portion of the renewable biomass needed by a
biomass conversion facility; and
‘‘(C) is physically located within an economically practicable distance from the biomass conversion facility.
‘‘(3) CONTRACT ACREAGE.—The term ‘contract acreage’
means eligible land that is covered by a BCAP contract entered
into with the Secretary.
‘‘(4) ELIGIBLE CROP.—
‘‘(A) IN GENERAL.—The term ‘eligible crop’ means a
crop of renewable biomass.
‘‘(B) EXCLUSIONS.—The term ‘eligible crop’ does not
include—
‘‘(i) any crop that is eligible to receive payments
under title I of the Food, Conservation, and Energy
Act of 2008 or an amendment made by that title;
or
‘‘(ii) any plant that is invasive or noxious or has
the potential to become invasive or noxious, as determined by the Secretary, in consultation with other
appropriate Federal or State departments and agencies.
‘‘(5) ELIGIBLE LAND.—
‘‘(A) IN GENERAL.—The term ‘eligible land’ includes
agricultural and nonindustrial private forest lands (as
defined in section 5(c) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a(c))).
‘‘(B) EXCLUSIONS.—The term ‘eligible land’ does not
include—
‘‘(i) Federal- or State-owned land;
‘‘(ii) land that is native sod, as of the date of
enactment of the Food, Conservation, and Energy Act
of 2008;

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‘‘(iii) land enrolled in the conservation reserve program established under subchapter B of chapter 1
of subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C. 3831 et seq.);
‘‘(iv) land enrolled in the wetlands reserve program
established under subchapter C of chapter 1 of subtitle
D of title XII of that Act (16 U.S.C. 3837 et seq.);
or
‘‘(v) land enrolled in the grassland reserve program
established under subchapter D of chapter 2 of subtitle
D of title XII of that Act (16 U.S.C. 3838n et seq.).
‘‘(6) ELIGIBLE MATERIAL.—
‘‘(A) IN GENERAL.—The term ‘eligible material’ means
renewable biomass.
‘‘(B) EXCLUSIONS.—The term ‘eligible material’ does not
include—
‘‘(i) any crop that is eligible to receive payments
under title I of the Food, Conservation, and Energy
Act of 2008 or an amendment made by that title;
‘‘(ii) animal waste and byproducts (including fats,
oils, greases, and manure);
‘‘(iii) food waste and yard waste; or
‘‘(iv) algae.
‘‘(7) PRODUCER.—The term ‘producer’ means an owner or
operator of contract acreage that is physically located within
a BCAP project area.
‘‘(8) PROJECT SPONSOR.—The term ‘project sponsor’ means—
‘‘(A) a group of producers; or
‘‘(B) a biomass conversion facility.
‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary shall establish and administer a Biomass Crop Assistance Program to—
‘‘(1) support the establishment and production of eligible
crops for conversion to bioenergy in selected BCAP project
areas; and
‘‘(2) assist agricultural and forest land owners and operators with collection, harvest, storage, and transportation of
eligible material for use in a biomass conversion facility.
‘‘(c) BCAP PROJECT AREA.—
‘‘(1) IN GENERAL.—The Secretary shall provide financial
assistance to producers of eligible crops in a BCAP project
area.
‘‘(2) SELECTION OF PROJECT AREAS.—
‘‘(A) IN GENERAL.—To be considered for selection as
a BCAP project area, a project sponsor shall submit to
the Secretary a proposal that includes, at a minimum—
‘‘(i) a description of the eligible land and eligible
crops of each producer that will participate in the
proposed BCAP project area;
‘‘(ii) a letter of commitment from a biomass conversion facility that the facility will use the eligible crops
intended to be produced in the proposed BCAP project
area;
‘‘(iii) evidence that the biomass conversion facility
has sufficient equity available, as determined by the
Secretary, if the biomass conversion facility is not operational at the time the proposal is submitted to the
Secretary; and

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‘‘(iv) any other appropriate information about the
biomass conversion facility or proposed biomass conversion facility that gives the Secretary a reasonable
assurance that the plant will be in operation by the
time that the eligible crops are ready for harvest.
‘‘(B) BCAP PROJECT AREA SELECTION CRITERIA.—In
selecting BCAP project areas, the Secretary shall consider—
‘‘(i) the volume of the eligible crops proposed to
be produced in the proposed BCAP project area and
the probability that such crops will be used for the
purposes of the BCAP;
‘‘(ii) the volume of renewable biomass projected
to be available from sources other than the eligible
crops grown on contract acres;
‘‘(iii) the anticipated economic impact in the proposed BCAP project area;
‘‘(iv) the opportunity for producers and local investors to participate in the ownership of the biomass
conversion facility in the proposed BCAP project area;
‘‘(v) the participation rate by—
‘‘(I) beginning farmers or ranchers (as defined
in accordance with section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a))); or
‘‘(II) socially disadvantaged farmers or
ranchers (as defined in section 2501(e) of the Food,
Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2279(e)));
‘‘(vi) the impact on soil, water, and related
resources;
‘‘(vii) the variety in biomass production approaches
within a project area, including (as appropriate)—
‘‘(I) agronomic conditions;
‘‘(II) harvest and postharvest practices; and
‘‘(III) monoculture and polyculture crop mixes;
‘‘(viii) the range of eligible crops among project
areas; and
‘‘(ix) any additional information, as determined by
the Secretary.
‘‘(3) CONTRACT.—
‘‘(A) IN GENERAL.—On approval of a BCAP project area
by the Secretary, each producer in the BCAP project area
shall enter into a contract directly with the Secretary.
‘‘(B) MINIMUM TERMS.—At a minimum, contracts shall
include terms that cover—
‘‘(i) an agreement to make available to the Secretary, or to an institution of higher education or other
entity designated by the Secretary, such information
as the Secretary considers to be appropriate to promote
the production of eligible crops and the development
of biomass conversion technology;
‘‘(ii) compliance with the highly erodible land conservation requirements of subtitle B of title XII of
the Food Security Act of 1985 (16 U.S.C. 3811 et seq.)
and the wetland conservation requirements of subtitle
C of title XII of that Act (16 U.S.C. 3821 et seq.);

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‘‘(iii) the implementation of (as determined by the
Secretary)—
‘‘(I) a conservation plan; or
‘‘(II) a forest stewardship plan or an equivalent
plan; and
‘‘(iv) any additional requirements the Secretary
considers appropriate.
‘‘(C) DURATION.—A contract under this subsection shall
have a term of up to—
‘‘(i) 5 years for annual and perennial crops; or
‘‘(ii) 15 years for woody biomass.
‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In carrying out
this subsection, the Secretary shall provide for the preservation
of cropland base and yield history applicable to the land
enrolled in a BCAP contract.
‘‘(5) PAYMENTS.—
‘‘(A) IN GENERAL.—The Secretary shall make establishment and annual payments directly to producers to support
the establishment and production of eligible crops on contract acreage.
‘‘(B) AMOUNT OF ESTABLISHMENT PAYMENTS.—The
amount of an establishment payment under this subsection
shall be up to 75 percent of the costs of establishing an
eligible perennial crop covered by the contract, including—
‘‘(i) the cost of seeds and stock for perennials;
‘‘(ii) the cost of planting the perennial crop, as
determined by the Secretary; and
‘‘(iii) in the case of nonindustrial private forestland,
the costs of site preparation and tree planting.
‘‘(C) AMOUNT OF ANNUAL PAYMENTS.—
‘‘(i) IN GENERAL.—Subject to clause (ii), the amount
of an annual payment under this subsection shall be
determined by the Secretary.
‘‘(ii) REDUCTION.—The Secretary shall reduce an
annual payment by an amount determined to be appropriate by the Secretary, if—
‘‘(I) an eligible crop is used for purposes other
than the production of energy at the biomass
conversion facility;
‘‘(II) an eligible crop is delivered to the biomass
conversion facility;
‘‘(III) the producer receives a payment under
subsection (d);
‘‘(IV) the producer violates a term of the contract; or
‘‘(V) there are such other circumstances, as
determined by the Secretary to be necessary to
carry out this section.
‘‘(d) ASSISTANCE WITH COLLECTION, HARVEST, STORAGE, AND
TRANSPORTATION.—
‘‘(1) IN GENERAL.—The Secretary shall make a payment
for the delivery of eligible material to a biomass conversion
facility to—
‘‘(A) a producer of an eligible crop that is produced
on BCAP contract acreage; or
‘‘(B) a person with the right to collect or harvest eligible
material.

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‘‘(2) PAYMENTS.—
‘‘(A) COSTS COVERED.—A payment under this subsection shall be in an amount described in subparagraph
(B) for—
‘‘(i) collection;
‘‘(ii) harvest;
‘‘(iii) storage; and
‘‘(iv) transportation to a biomass conversion
facility.
‘‘(B) AMOUNT.—Subject to paragraph (3), the Secretary
may provide matching payments at a rate of $1 for each
$1 per ton provided by the biomass conversion facility,
in an amount equal to not more than $45 per ton for
a period of 2 years.
‘‘(3) LIMITATION ON ASSISTANCE FOR BCAP CONTRACT ACREAGE.—As a condition of the receipt of annual payment under
subsection (c), a producer receiving a payment under this subsection for collection, harvest, storage or transportation of an
eligible crop produced on BCAP acreage shall agree to a reduction in the annual payment.
‘‘(e) REPORT.—Not later than 4 years after the date of enactment
of the Food, Conservation, and Energy Act of 2008, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report on the dissemination by the Secretary of the best practice data and information gathered from
participants receiving assistance under this section.
‘‘(f) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section such sums
as are necessary for each of fiscal years 2008 through 2012.

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‘‘SEC. 9012. FOREST BIOMASS FOR ENERGY.

7 USC 8112.

‘‘(a) IN GENERAL.—The Secretary, acting through the Forest
Service, shall conduct a competitive research and development program to encourage use of forest biomass for energy.
‘‘(b) ELIGIBLE ENTITIES.—Entities eligible to compete under the
program under this section include—
‘‘(1) the Forest Service (acting through Research and
Development);
‘‘(2) other Federal agencies;
‘‘(3) State and local governments;
‘‘(4) Indian tribes;
‘‘(5) land-grant colleges and universities; and
‘‘(6) private entities.
‘‘(c) PRIORITY FOR PROJECT SELECTION.—In carrying out this
section, the Secretary shall give priority to projects that—
‘‘(1) develop technology and techniques to use low-value
forest biomass, such as byproducts of forest health treatments
and hazardous fuels reduction, for the production of energy;
‘‘(2) develop processes that integrate production of energy
from forest biomass into biorefineries or other existing manufacturing streams;
‘‘(3) develop new transportation fuels from forest biomass;
and
‘‘(4) improve the growth and yield of trees intended for
renewable energy production.

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‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $15,000,000 for each
of fiscal years 2009 through 2012.

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7 USC 8113.

‘‘SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) COMMUNITY WOOD ENERGY PLAN.—The term ‘community wood energy plan’ means an assessment of—
‘‘(A) available feedstocks necessary to supply a community wood energy system; and
‘‘(B) the long-term feasibility of supplying and operating a community wood energy system.
‘‘(2) COMMUNITY WOOD ENERGY SYSTEM.—
‘‘(A) IN GENERAL.—The term ‘community wood energy
system’ means an energy system that—
‘‘(i) primarily services public facilities owned or
operated by State or local governments, including
schools, town halls, libraries, and other public
buildings; and
‘‘(ii) uses woody biomass as the primary fuel.
‘‘(B) INCLUSIONS.—The term ‘community wood energy
system’ includes single facility central heating, district
heating, combined heat and energy systems, and other
related biomass energy systems.
‘‘(b) GRANT PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary, acting through the Chief
of the Forest Service, shall establish a program to be known
as the ‘Community Wood Energy Program’ to provide—
‘‘(A) grants of up to $50,000 to State and local governments (or designees) to develop community wood energy
plans; and
‘‘(B) competitive grants to State and local governments
to acquire or upgrade community wood energy systems.
‘‘(2) CONSIDERATIONS.—In selecting applicants for grants
under paragraph (1)(B), the Secretary shall consider—
‘‘(A) the energy efficiency of the proposed system;
‘‘(B) the cost effectiveness of the proposed system; and
‘‘(C) other conservation and environmental criteria that
the Secretary considers appropriate.
‘‘(3) USE OF PLAN.—A State or local government applying
to receive a competitive grant described in paragraph (1)(B)
shall submit to the Secretary as part of the grant application
the applicable community wood energy plan.
‘‘(c) LIMITATION.—A community wood energy system acquired
with grant funds provided under subsection (b)(1)(B) shall not
exceed an output of—
‘‘(1) 50,000,000 Btu per hour for heating; and
‘‘(2) 2 megawatts for electric power production.
‘‘(d) MATCHING FUNDS.—A State or local government that
receives a grant under subsection (b) shall contribute an amount
of non-Federal funds towards the development of the community
wood energy plan, or acquisition of the community wood energy
systems that is at least equal to the amount of grant funds received
by the State or local government under that subsection.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $5,000,000 for each
of fiscal years 2009 through 2012.’’.

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(b) CONFORMING AMENDMENT.—The Biomass Research and
Development Act of 2000 (7 U.S.C. 8601 et seq.) is repealed.

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SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY.

(a) IN GENERAL.—The Secretary of Agriculture, the Secretary
of Energy, the Administrator of the Environmental Protection
Agency, and the Secretary of Transportation (referred to in this
section as the ‘‘Secretaries’’), shall jointly conduct a study that
includes—
(1) an assessment of the infrastructure needs for expanding
the domestic production, transport, and distribution of biofuels
given current and likely future market trends;
(2) recommendations for infrastructure needs and development approaches, taking into account cost and other associated
factors; and
(3) a report that includes—
(A) a summary of infrastructure needs;
(B) an analysis of alternative development approaches
to meeting the needs described in subparagraph (A),
including cost, siting, and other regulatory issues; and
(C) recommendations for specific infrastructure
development actions to be taken.
(b) SCOPE OF STUDY.—
(1) IN GENERAL.—In conducting the study described in subsection (a), the Secretaries shall address—
(A) current and likely future market trends for biofuels
through calendar year 2025;
(B) current and future availability of feedstocks;
(C) water resource needs, including water requirements
for biorefineries;
(D) shipping and storage needs for biomass feedstock
and biofuels, including the adequacy of rural roads; and
(E) modes of transportation and delivery for biofuels
(including shipment by rail, truck, pipeline or barge) and
associated infrastructure issues.
(2) CONSIDERATIONS.—In addressing the issues described
in paragraph (1), the Secretaries shall consider—
(A) the effects of increased tank truck, rail, and barge
transport on existing infrastructure and safety;
(B) the feasibility of shipping biofuels through pipelines
in existence as the date of enactment of this Act;
(C) the development of new biofuels pipelines, including
siting, financing, timing, and other economic issues;
(D) the implications of various biofuel blend levels
on infrastructure needs;
(E) the implications of various approaches to infrastructure development on resource use and conservation;
(F) regional differences in biofuels infrastructure needs;
and
(G) other infrastructure issues, as determined by the
Secretaries.
(c) IMPLEMENTATION.—In carrying out this section, the Secretaries —
(1) shall—
(A) consult with individuals and entities with interest
or expertise in the areas described in subsection (b);

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(B) to the extent available, use the information developed and results of the related studies authorized under
sections 243 and 245 of the Energy Independence and
Security Act of 2007 (Public Law 110–140; 121 Stat. 1540,
1546)); and
(C) submit to Congress the report required under subsection (a)(3), including—
(i) in the Senate—
(I) the Committee on Agriculture, Nutrition,
and Forestry ;
(II) the Committee on Commerce, Science, and
Transportation;
(III) the Committee on Energy and Natural
Resources; and
(IV) the Committee on Environment and
Public Works; and
(ii) in the House of Representatives—
(I) the Committee on Agriculture;
(II) the Committee on Energy and Commerce;
(III) the Committee on Transportation and
Infrastructure; and
(IV) the Committee on Science and Technology; and
(2) may issue a solicitation for a competition to select
a contractor to support the Secretaries.

SEC. 9003. RENEWABLE FERTILIZER STUDY.
Deadline.

Reports.

(a) IN GENERAL.—Not later than 1 year after the date of receipt
of appropriations to carry out this section, the Secretary shall—
(1) conduct a study to assess the current state of knowledge
regarding the potential for the production of fertilizer from
renewable energy sources in rural areas, including—
(A) identification of the critical challenges to commercialization of rural production of nitrogen and phosphorusbased fertilizer from renewables;
(B) the most promising processes and technologies for
renewable fertilizer production;
(C) the potential cost-competitiveness of renewable fertilizer; and
(D) the potential impacts of renewable fertilizer on
fossil fuel use and the environment; and
(2) submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the results
of the study.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $1,000,000 for fiscal
year 2009.

TITLE X—HORTICULTURE AND
ORGANIC AGRICULTURE

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7 USC 1622b
note.

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SEC. 10001. DEFINITIONS.

In this title:
(1) SPECIALTY CROP.—The term ‘‘specialty crop’’ has the
meaning given the term in section 3 of the Specialty Crops

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Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108–465).
(2) STATE DEPARTMENT OF AGRICULTURE.—The term ‘‘State
department of agriculture’’ means the agency, commission, or
department of a State government responsible for protecting
and promoting agriculture in the State.

Subtitle A—Horticulture Marketing and
Information
SEC. 10101. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRICULTURE COMMODITY PURCHASE PROCESS.

(a) EVALUATION REQUIRED.—The Secretary shall arrange to
have performed an independent evaluation of the purchasing processes (including the budgetary, statutory, and regulatory authority
underlying the processes) used by the Department of Agriculture
to implement the requirement that funds available under section
32 of the Act of August 24, 1935 (7 U.S.C. 612c), shall be principally
devoted to perishable agricultural commodities.
(b) SUBMISSION OF RESULTS.—Not later than 18 months after
the date of the enactment of this Act, the Secretary shall submit
to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on the results of the evaluation.

Deadline.

SEC. 10102. QUALITY REQUIREMENTS FOR CLEMENTINES.

Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C.
608e–1(a)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended in the matter preceding
the first proviso in the first sentence by inserting ‘‘clementines,’’
after ‘‘nectarines,’’.
SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRICULTURE.

Section 2(a) of the Census of Agriculture Act of 1997 (7 U.S.C.
2204g(a)) is amended—
(1) by striking ‘‘In 1998’’ and inserting the following:
‘‘(1) IN GENERAL.—In 1998’’; and
(2) by adding at the end the following:
‘‘(2) INCLUSION OF SPECIALTY CROPS.—Effective beginning
with the census of agriculture required to be conducted in
2008, the Secretary shall conduct as part of each census of
agriculture a census of specialty crops (as that term is defined
in section 3 of the Specialty Crops Competitiveness Act of
2004 (7 U.S.C. 1621 note; Public Law 108-465)).’’.

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SEC. 10104. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER
INFORMATION.

(a) REGIONS AND MEMBERS.—Section 1925(b)(2) of the Mushroom Promotion, Research, and Consumer Information Act of 1990
(7 U.S.C. 6104(b)(2)) is amended—
(1) in subparagraph (B), by striking ‘‘4 regions’’ and
inserting ‘‘3 regions’’;
(2) in subparagraph (D), by striking ‘‘35,000,000 pounds’’
and inserting ‘‘50,000,000 pounds’’; and

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(3) by striking subparagraph (E) and inserting the following:
‘‘(E) ADDITIONAL MEMBERS.—In addition to the members appointed pursuant to paragraph (1), and subject to
the 9-member limit of members on the Council provided
in that paragraph, the Secretary shall appoint additional
members to the council from a region that attains additional pounds of production as follows:
‘‘(i) If the annual production of a region is greater
than 110,000,000 pounds, but less than or equal to
180,000,000 pounds, the region shall be represented
by 1 additional member.
‘‘(ii) If the annual production of a region is greater
than 180,000,000 pounds, but less than or equal to
260,000,000 pounds, the region shall be represented
by 2 additional members.
‘‘(iii) If the annual production of a region is greater
than 260,000,000 pounds, the region shall be represented by 3 additional members.’’.
(b) POWERS AND DUTIES OF COUNCIL.—Section 1925(c) of the
Mushroom Promotion, Research, and Consumer Information Act
of 1990 (7 U.S.C. 6104(c)) is amended—
(1) by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8), and (9), respectively; and
(2) by inserting after paragraph (5) the following:
‘‘(6) to develop and propose to the Secretary programs
for good agricultural and good handling practices and related
activities for mushrooms;’’.
7 USC 7655a.

SEC. 10105. FOOD SAFETY EDUCATION INITIATIVES.

(a) INITIATIVE AUTHORIZED.—The Secretary may carry out a
food safety education program to educate the public and persons
in the fresh produce industry about—
(1) scientifically proven practices for reducing microbial
pathogens on fresh produce; and
(2) methods of reducing the threat of cross-contamination
of fresh produce through sanitary handling practices.
(b) COOPERATION.—The Secretary may carry out the education
program in cooperation with public and private partners.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Secretary to carry out this section
$1,000,000 for each of fiscal years 2008 through 2012, to remain
available until expended.

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SEC. 10106. FARMERS’ MARKET PROMOTION PROGRAM.

Section 6 of the Farmer-to-Consumer Direct Marketing Act
of 1976 (7 U.S.C. 3005) is amended—
(1) in subsection (a), by inserting ‘‘and to promote direct
producer-to-consumer marketing’’ before the period at the end;
(2) in subsection (b)(1)—
(A) in subparagraph (A), by inserting ‘‘agri-tourism
activities,’’ after ‘‘programs,’’; and
(B) in subparagraph (B)—
(i) by inserting ‘‘agri-tourism activities,’’ after ‘‘programs,’’ and
(ii) by striking ‘‘infrastructure’’ and inserting ‘‘marketing opportunities’’;

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(3) in subsection (c)(1), by inserting ‘‘or a producer network
or association’’ after ‘‘cooperative’’; and
(4) by striking subsection (e) and inserting the following:
‘‘(e) FUNDING.—
‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section—
‘‘(A) $3,000,000 for fiscal year 2008;
‘‘(B) $5,000,000 for each of fiscal years 2009 through
2010; and
‘‘(C) $10,000,000 for each of fiscal years 2011 and 2012.
‘‘(2) USE OF FUNDS.—Not less than 10 percent of the funds
used to carry out this section in a fiscal year under paragraph
(1) shall be used to support the use of electronic benefits transfers for Federal nutrition programs at farmers’ markets.
‘‘(3) INTERDEPARTMENTAL COORDINATION.—In carrying out
this subsection, the Secretary shall ensure coordination between
the various agencies to the maximum extent practicable.
‘‘(4) LIMITATION.—Funds described in paragraph (2)—
‘‘(A) may not be used for the ongoing cost of carrying
out any project; and
‘‘(B) shall only be provided to eligible entities that
demonstrate a plan to continue to provide EBT card access
at 1 or more farmers’ markets following the receipt of
the grant.’’.
SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION.

7 USC 1622b.

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(a) IN GENERAL.—The Secretary shall—
(1) carry out market news activities to provide timely price
and shipment information of specialty crops in the United
States; and
(2) use funds made available under subsection (b) to
increase the reporting levels for specialty crops in effect on
the date of enactment of this Act.
(b) AUTHORIZATION OF APPROPRIATIONS.—In addition to any
other funds made available through annual appropriations for
market news services, there is authorized to be appropriated to
carry out this section $9,000,000 for each of fiscal years 2008
through 2012, to remain available until expended.

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SEC. 10108. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR
GRADES AND STANDARDS AND OTHER PURPOSES.

7 USC 608c note.

(a) IN GENERAL.—The Secretary shall initiate procedures under
the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted
with amendments by the Agricultural Marketing Agreement Act
of 1937, to determine whether it would be appropriate to establish
a Federal marketing order for Hass avocados relating to grades
and standards and for other purposes under that Act.
(b) EXPEDITED PROCEDURES.—
(1) PROPOSAL FOR AN ORDER.—An organization of domestic
avocado producers in existence on the date of enactment of
this Act may request the issuance of, and submit to the Secretary a proposal for, an order described in subsection (a).
(2) PUBLICATION OF PROPOSAL.—Not later than 60 days
after the date on which the Secretary receives a proposed
order under paragraph (1), the Secretary shall initiate procedures described in subsection (a) to determine whether the
proposed order should proceed.

Procedures.

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(c) EFFECTIVE DATE.—Any order issued under this section shall
become effective not later than 15 months after the date on which
the Secretary initiates procedures under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by
the Agricultural Marketing Agreement Act of 1937.

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SEC. 10109. SPECIALTY CROP BLOCK GRANTS.

(a) DEFINITION OF SPECIALTY CROP.—Section 3(1) of the Specialty Crops Competitiveness Act of 2004 (Public Law 108–465;
7 U.S.C. 1621 note) is amended by inserting ‘‘horticulture and’’
before ‘‘nursery’’.
(b) DEFINITION OF STATE.—Section 3(2) of the Specialty Crops
Competitiveness Act of 2004 (Public Law 108–465; 7 U.S.C. 1621
note) is amended by striking ‘‘and the Commonwealth of Puerto
Rico’’ and inserting ‘‘the Commonwealth of Puerto Rico, Guam,
American Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands’’.
(c) SPECIALTY CROP BLOCK GRANTS.—Section 101 of the Specialty Crops Competitiveness Act of 2004 (Public Law 108–465;
7 U.S.C. 1621 note) is amended—
(1) in subsection (a)—
(A) by striking ‘‘Subject to the appropriation of funds
to carry out this section’’ and inserting ‘‘Using the funds
made available under subsection (j)’’; and
(B) by striking ‘‘2009’’ and inserting ‘‘2012’’;
(2) in subsection (b), by striking ‘‘appropriated pursuant
to the authorization of appropriations in subsection (i)’’ and
inserting ‘‘made available under subsection (j)’’;
(3) by striking subsection (c) and inserting the following:
‘‘(c) MINIMUM GRANT AMOUNT.—Notwithstanding subsection
(b), each State shall receive a grant under this section for each
fiscal year in an amount that is at least equal to the higher
of—
‘‘(1) $100,000; or
‘‘(2) 1⁄3 of 1 percent of the total amount of funding made
available to carry out this section for the fiscal year.’’; and
(4) by striking subsection (i) and inserting the following:
‘‘(i) REALLOCATION.—
‘‘(1) IN GENERAL.—The Secretary shall reallocate to other
States in accordance with paragraph (2) any amounts made
available for a fiscal year under this section that are not obligated or expended by a date during that fiscal year determined
by the Secretary.
‘‘(2) PRO RATA ALLOCATION.—The Secretary shall allocate
funds described in paragraph (1) pro rata to the remaining
States that applied during the specified grant application
period.
‘‘(3) USE OF REALLOCATED FUNDS.—Funds allocated to a
State under this subsection shall be used by the State only
to carry out projects that were previously approved in the
State plan of the State.
‘‘(j) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make grants under this
section, using—
‘‘(1) $10,000,000 for fiscal year 2008;
‘‘(2) $49,000,000 for fiscal year 2009; and

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‘‘(3) $55,000,000 for each of fiscal years 2010 through
2012.’’.

Subtitle B—Pest and Disease Management
SEC. 10201. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER
PREVENTION.

(a) IN GENERAL.—Subtitle A of the Plant Protection Act (7
U.S.C. 7711 et seq.) is amended by adding at the end the following:

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‘‘SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER
PREVENTION.

7 USC 7721.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) EARLY PLANT PEST DETECTION AND SURVEILLANCE.—
The term ‘early plant pest detection and surveillance’ means
the full range of activities undertaken to find newly introduced
plant pests, whether the plant pests are new to the United
States or new to certain areas of the United States, before—
‘‘(A) the plant pests become established; or
‘‘(B) the plant pest infestations become too large and
costly to eradicate or control.
‘‘(2) SPECIALTY CROP.—The term ‘specialty crop’ has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108–465).
‘‘(3) STATE DEPARTMENT OF AGRICULTURE.—The term ‘State
department of agriculture’ means an agency of a State that
has a legal responsibility to perform early plant pest detection
and surveillance activities.
‘‘(b) EARLY PLANT PEST DETECTION AND SURVEILLANCE
IMPROVEMENT PROGRAM.—
‘‘(1) COOPERATIVE AGREEMENTS.—The Secretary shall enter
into a cooperative agreement with each State department of
agriculture that agrees to conduct early plant pest detection
and surveillance activities.
‘‘(2) CONSULTATION.—In carrying out this subsection, the
Secretary shall consult with—
‘‘(A) the National Plant Board; and
‘‘(B) other interested parties.
‘‘(3) FEDERAL ADVISORY COMMITTEE ACT.—The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to
consultations under this subsection.
‘‘(4) APPLICATION.—
‘‘(A) IN GENERAL.—A State department of agriculture
seeking to enter into a cooperative agreement under this
subsection shall submit to the Secretary an application
containing such information as the Secretary may require.
‘‘(B) NOTIFICATION.—The Secretary shall notify
applicants of—
‘‘(i) the requirements to be imposed on a State
department of agriculture for auditing of, and reporting
on, the use of any funds provided by the Secretary
under the cooperative agreement;
‘‘(ii) the criteria to be used to ensure that early
pest detection and surveillance activities supported

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under the cooperative agreement are based on sound
scientific data or thorough risk assessments; and
‘‘(iii) the means of identifying pathways of pest
introductions.
‘‘(5) USE OF FUNDS.—
‘‘(A) PLANT PEST DETECTION AND SURVEILLANCE ACTIVITIES.—A State department of agriculture that receives
funds under this subsection shall use the funds to carry
out early plant pest detection and surveillance activities
approved by the Secretary to prevent the introduction or
spread of a plant pest.
‘‘(B) SUBAGREEMENTS.—Nothing in this subsection prevents a State department of agriculture from using funds
received under paragraph (4) to enter into subagreements
with political subdivisions of the State that have legal
responsibilities relating to agricultural plant pest and disease surveillance.
‘‘(C) NON-FEDERAL SHARE.—The non-Federal share of
the cost of carrying out a cooperative agreement under
this section may be provided in-kind, including through
provision of such indirect costs of the cooperative agreement
as the Secretary considers to be appropriate.
‘‘(D) ABILITY TO PROVIDE FUNDS.—The Secretary shall
not take the ability to provide non-Federal costs to carry
out a cooperative agreement entered into under subparagraph (A) into consideration when deciding whether to
enter into a cooperative agreement with a State department
of agriculture.
‘‘(6) SPECIAL FUNDING CONSIDERATIONS.—The Secretary
shall provide funds to a State department of agriculture if
the Secretary determines that—
‘‘(A) the State department of agriculture is in a State
that has a high risk of being affected by 1 or more plant
pests or diseases, taking into consideration—
‘‘(i) the number of international ports of entry in
the State;
‘‘(ii) the volume of international passenger and
cargo entry into the State;
‘‘(iii) the geographic location of the State and if
the location or types of agricultural commodities produced in the State are conducive to agricultural pest
and disease establishment due to the climate, crop
diversity, or natural resources (including unique plant
species) of the State; and
‘‘(iv) whether the Secretary has determined that
an agricultural pest or disease in the State is a Federal
concern ; and
‘‘(B) the early plant pest detection and surveillance
activities supported with the funds will likely—
‘‘(i) prevent the introduction and establishment of
plant pests; and
‘‘(ii) provide a comprehensive approach to compliment Federal detection efforts.
‘‘(7) REPORTING REQUIREMENT.—Not later than 90 days
after the date of completion of an early plant pest detection
and surveillance activity conducted by a State department of
agriculture using funds provided under this section, the State

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department of agriculture shall submit to the Secretary a report
that describes the purposes and results of the activities.
‘‘(c) THREAT IDENTIFICATION AND MITIGATION PROGRAM.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish a
threat identification and mitigation program to determine and
address threats to the domestic production of crops.
‘‘(2) REQUIREMENTS.—In conducting the program established under paragraph (1), the Secretary shall—
‘‘(A) develop risk assessments of the potential threat
to the agricultural industry of the United States from foreign sources;
‘‘(B) collaborate with the National Plant Board; and
‘‘(C) implement action plans for high consequence plant
pest and diseases to assist in preventing the introduction
and widespread dissemination of new plant pest and disease threats in the United States.
‘‘(3) REPORTS.—Not later than 1 year after the date of
enactment of this paragraph, and annually thereafter, the Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report on the action
plans described in paragraph (2), including an accounting of
funds expended on the action plans.
‘‘(d) SPECIALTY CROP CERTIFICATION AND RISK MANAGEMENT
SYSTEMS.—The Secretary shall provide funds and technical assistance to specialty crop growers, organizations representing specialty
crop growers, and State and local agencies working with specialty
crop growers and organizations for the development and
implementation of—
‘‘(1) audit-based certification systems, such as best management practices—
‘‘(A) to address plant pests; and
‘‘(B) to mitigate the risk of plant pests in the movement
of plants and plant products; and
‘‘(2) nursery plant pest risk management systems, in
collaboration with the nursery industry, research institutions,
and other appropriate entities—
‘‘(A) to enable growers to identify and prioritize nursery
plant pests and diseases of regulatory significance;
‘‘(B) to prevent the introduction, establishment, and
spread of those plant pests and diseases; and
‘‘(C) to reduce the risk of and mitigate those plant
pests and diseases.
‘‘(e) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section—
‘‘(1) $12,000,000 for fiscal year 2009;
‘‘(2) $45,000,000 for fiscal year 2010;
‘‘(3) $50,000,000 for fiscal year 2011; and
‘‘(4) $50,000,000 for fiscal year 2012 and each fiscal year
thereafter.’’.
(b) CONGRESSIONAL DISAPPROVAL.—Congress disapproves the
rule submitted by the Secretary of Agriculture relating to costsharing for animal and plant health emergency programs (68 Fed.
Reg. 40541 (2003)), and such rule shall have no force or effect.

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122 STAT. 2104
7 USC 7761.

PUBLIC LAW 110–246—JUNE 18, 2008

SEC. 10202. NATIONAL CLEAN PLANT NETWORK.

(a) IN GENERAL.—The Secretary shall establish a program to
be known as the ‘‘National Clean Plant Network’’ (referred to in
this section as the ‘‘Program’’).
(b) REQUIREMENTS.—Under the Program, the Secretary shall
establish a network of clean plant centers for diagnostic and
pathogen elimination services to—
(1) produce clean propagative plant material; and
(2) maintain blocks of pathogen-tested plant material in
sites located throughout the United States.
(c) AVAILABILITY OF CLEAN PLANT SOURCE MATERIAL.—Clean
plant source material may be made available to—
(1) a State for a certified plant program of the State;
and
(2) private nurseries and producers.
(d) CONSULTATION AND COLLABORATION.—In carrying out the
Program, the Secretary shall—
(1) consult with State departments of agriculture, land
grant universities, and NLGCA Institutions (as defined in section 1404 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3103)); and
(2) to the extent practicable and with input from the appropriate State officials and industry representatives, use existing
Federal or State facilities to serve as clean plant centers.
(e) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out the Program $5,000,000
for each of fiscal years 2009 through 2012, to remain available
until expended.

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SEC. 10203. PLANT PROTECTION.

(a) REVIEW OF PAYMENT OF COMPENSATION.—Section 415(e)
of the Plant Protection Act (7 U.S.C. 7715(e)) is amended in the
second sentence by striking ‘‘of longer than 60 days’’.
(b) SECRETARIAL DISCRETION.—Section 442(c) of the Plant
Protection Act (7 U.S.C. 7772(c)) is amended by striking ‘‘of longer
than 60 days’’.
(c) SUBPOENA AUTHORITY.—Section 423 of the Plant Protection
Act (7 U.S.C. 7733) is amended—
(1) by striking subsection (a) and inserting the following:
‘‘(a) AUTHORITY TO ISSUE.—The Secretary shall have the power
to subpoena the attendance and testimony of any witness, the
production of all evidence (including books, papers, documents, electronically stored information, and other tangible things that constitute or contain evidence), or to require the person to whom
the subpoena is directed to permit the inspection of premises
relating to the administration or enforcement of this title or any
matter under investigation in connection with this title.’’;
(2) in subsection (b), by striking ‘‘documentary’’; and
(3) in subsection (c)—
(A) in the first sentence, by striking ‘‘testimony of
any witness and the production of documentary evidence’’
and inserting ‘‘testimony of any witness, the production
of evidence, or the inspection of premises’’; and
(B) in the second sentence, by striking ‘‘question or
to produce documentary evidence’’ and inserting ‘‘question,
produce evidence, or permit the inspection of premises’’.

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(d) WILLFUL VIOLATIONS.—Section 424(b)(1)(A) of the Plant
Protection Act (7 U.S.C. 7734(b)(1)(A)) is amended by striking ‘‘and
$500,000 for all violations adjudicated in a single proceeding’’ and
inserting ‘‘$500,000 for all violations adjudicated in a single proceeding if the violations do not include a willful violation, and
$1,000,000 for all violations adjudicated in a single proceeding
if the violations include a willful violation’’.

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SEC. 10204. REGULATIONS TO IMPROVE MANAGEMENT AND OVERSIGHT OF CERTAIN REGULATED ARTICLES.

7 USC 7701 note.

(a) IN GENERAL.—Not later than 18 months after the date
of enactment of this Act, the Secretary shall—
(1) take action on each issue identified in the document
entitled ‘‘Lessons Learned and Revisions under Consideration
for APHIS’ Biotechnology Framework’’, dated October 4, 2007;
and
(2) as the Secretary considers appropriate, promulgate
regulations to improve the management and oversight of articles regulated under the Plant Protection Act (7 U.S.C. 7701
et seq.).
(b) INCLUSIONS.—In carrying out subsection (a), the Secretary
shall take actions that are designed to enhance—
(1) the quality and completeness of records;
(2) the availability of representative samples;
(3) the maintenance of identity and control in the event
of an unauthorized release;
(4) corrective actions in the event of an unauthorized
release;
(5) protocols for conducting molecular forensics;
(6) clarity in contractual agreements;
(7) the use of the latest scientific techniques for isolation
and confinement distances;
(8) standards for quality management systems and effective
research; and
(9) the design of electronic permits to store documents
and other information relating to the permit and notification
processes.
(c) CONSIDERATION.—In carrying out subsection (a), the Secretary shall consider—
(1) establishing—
(A) a system of risk-based categories to classify each
regulated article;
(B) a means to identify regulated articles (including
the retention of seed samples); and
(C) standards for isolation and containment distances;
and
(2) requiring permit holders—
(A) to maintain a positive chain of custody;
(B) to provide for the maintenance of records;
(C) to provide for the accounting of material;
(D) to conduct periodic audits;
(E) to establish an appropriate training program;
(F) to provide contingency and corrective action plans;
and
(G) to submit reports as the Secretary considers to
be appropriate.

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16 USC 2104a.

PUBLIC LAW 110–246—JUNE 18, 2008

SEC. 10205. PEST AND DISEASE REVOLVING LOAN FUND.

(a) DEFINITIONS.—In this section:
(1) AUTHORIZED EQUIPMENT.—
(A) IN GENERAL.—The term ‘‘authorized equipment’’
means any equipment necessary for the management of
forest land.
(B) INCLUSIONS.—The term ‘‘authorized equipment’’
includes—
(i) cherry pickers;
(ii) equipment necessary for—
(I) the construction of staging and marshalling
areas;
(II) the planting of trees; and
(III) the surveying of forest land;
(iii) vehicles capable of transporting harvested
trees;
(iv) wood chippers; and
(v) any other appropriate equipment, as determined by the Secretary.
(2) FUND.—The term ‘‘Fund’’ means the Pest and Disease
Revolving Loan Fund established by subsection (b).
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture, acting through the Deputy Chief of the State
and Private Forestry organization.
(b) ESTABLISHMENT OF FUND.—There is established in the
Treasury of the United States a revolving fund, to be known as
the ‘‘Pest and Disease Revolving Loan Fund’’, consisting of such
amounts as are appropriated to the Fund under subsection (f).
(c) EXPENDITURES FROM FUND.—
(1) IN GENERAL.—Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to provide loans under subsection
(e).
(2) ADMINISTRATIVE EXPENSES.—An amount not exceeding
10 percent of the amounts in the Fund shall be available
for each fiscal year to pay the administrative expenses necessary to carry out this section.
(d) TRANSFERS OF AMOUNTS.—
(1) IN GENERAL.—The amounts required to be transferred
to the Fund under this section shall be transferred at least
monthly from the general fund of the Treasury to the Fund
on the basis of estimates made by the Secretary of the Treasury.
(2) ADJUSTMENTS.—Proper adjustment shall be made in
amounts subsequently transferred to the extent prior estimates
were in excess of or less than the amounts required to be
transferred.
(e) USES OF FUND.—
(1) LOANS.—
(A) IN GENERAL.—The Secretary shall use amounts
in the Fund to provide loans to eligible units of local
government to finance purchases of authorized equipment
to monitor, remove, dispose of, and replace infested trees
that are located—
(i) on land under the jurisdiction of the eligible
units of local government; and

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122 STAT. 2107

(ii) within the borders of quarantine areas infested
by plant pests.
(B) MAXIMUM AMOUNT.—The maximum amount of a
loan that may be provided by the Secretary to an eligible
unit of local government under this subsection shall be
the lesser of—
(i) the amount that the eligible unit of local government has appropriated to finance purchases of authorized equipment in accordance with subparagraph (A);
or
(ii) $5,000,000.
(C) INTEREST RATE.—The interest rate on any loan
made by the Secretary under this paragraph shall be a
rate equal to 2 percent.
(D) REPORT.—Not later than 180 days after the date
on which an eligible unit of local government receives a
loan provided by the Secretary under subparagraph (A),
the eligible unit of local government shall submit to the
Secretary a report that describes each purchase made by
the eligible unit of local government using assistance provided through the loan.
(2) LOAN REPAYMENT SCHEDULE.—
(A) IN GENERAL.—To be eligible to receive a loan from
the Secretary under paragraph (1), in accordance with each
requirement described in subparagraph (B), an eligible unit
of local government shall enter into an agreement with
the Secretary to establish a loan repayment schedule
relating to the repayment of the loan.
(B) REQUIREMENTS RELATING TO LOAN REPAYMENT
SCHEDULE.—A loan repayment schedule established under
subparagraph (A) shall require the eligible unit of local
government—
(i) to repay to the Secretary of the Treasury, not
later than 1 year after the date on which the eligible
unit of local government receives a loan under paragraph (1), and semiannually thereafter, an amount
equal to the quotient obtained by dividing—
(I) the principal amount of the loan (including
interest); by
(II) the total quantity of payments that the
eligible unit of local government is required to
make during the repayment period of the loan;
and
(ii) not later than 20 years after the date on which
the eligible unit of local government receives a loan
under paragraph (1), to complete repayment to the
Secretary of the Treasury of the loan made under
this section (including interest).
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Fund such sums as are necessary to
carry out this section.

Deadlines.

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SEC. 10206. COOPERATIVE AGREEMENTS RELATING TO PLANT PEST
AND DISEASE PREVENTION ACTIVITIES.

Section 431 of the Plant Protection Act (7 U.S.C. 7751) is
amended by adding at the end the following:
‘‘(f) TRANSFER OF COOPERATIVE AGREEMENT FUND.—

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(1) IN GENERAL.—A State may provide to a unit of local
government in the State described in paragraph (2) any costsharing assistance or financing mechanism provided to the
State under a cooperative agreement entered into under this
Act between the Secretary and the State relating to the eradication, prevention, control, or suppression of plant pests.
‘‘(2) REQUIREMENTS.—To be eligible for assistance or
financing under paragraph (1), a unit of local government shall
be—
‘‘(A) engaged in any activity relating to the eradication,
prevention, control, or suppression of the plant pest infestation covered under the cooperative agreement between the
Secretary and the State; and
‘‘(B) capable of documenting each plant pest infestation
eradication, prevention, control, or suppression activity generally carried out by—
‘‘(i) the Department of Agriculture; or
‘‘(ii) the State department of agriculture that has
jurisdiction over the unit of local government.’’.

Subtitle C—Organic Agriculture
SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

Section 10606 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 6523) is amended—
(1) in subsection (a), by striking ‘‘$5,000,000 for fiscal year
2002’’ and inserting ‘‘$22,000,000 for fiscal year 2008’’;
(2) in subsection (b)(2), by striking ‘‘$500’’ and inserting
‘‘$750’’; and
(3) by adding at the end the following:
‘‘(c) REPORTING.—Not later than March 1 of each year, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the requests
by, disbursements to, and expenditures for each State under the
program during the current and previous fiscal year, including
the number of producers and handlers served by the program
in the previous fiscal year.’’.
SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

Section 7407 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 5925c) is amended to read as follows:

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‘‘SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

‘‘(a) IN GENERAL.—The Secretary shall collect and report data
on the production and marketing of organic agricultural products.
‘‘(b) REQUIREMENTS.—In carrying out subsection (a), the Secretary shall, at a minimum—
‘‘(1) collect and distribute comprehensive reporting of prices
relating to organically produced agricultural products;
‘‘(2) conduct surveys and analysis and publish reports
relating to organic production, handling, distribution, retail,
and trend studies (including consumer purchasing patterns);
and
‘‘(3) develop surveys and report statistical analysis on
organically produced agricultural products.

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‘‘(c) REPORT.—Not later than 180 days after the date of enactment of this subsection, the Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
that—
‘‘(1) describes the progress that has been made in implementing this section; and
‘‘(2) identifies any additional production and marketing
data needs.
‘‘(d) FUNDING.—
‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section
$5,000,000, to remain available until expended.
‘‘(2) ADDITIONAL FUNDING.—In addition to funds made
available under paragraph (1), there are authorized to be appropriated to carry out this section not more than $5,000,000
for each of fiscal years 2008 through 2012, to remain available
until expended.’’.
SEC. 10303. NATIONAL ORGANIC PROGRAM.

Section 2123 of the Organic Foods Production Act of 1990
(7 U.S.C. 6522) is amended—
(1) by striking ‘‘There are’’ and inserting the following:
‘‘(a) IN GENERAL.—There are’’; and
(2) by adding at the end the following:
‘‘(b) NATIONAL ORGANIC PROGRAM.—Notwithstanding any other
provision of law, in order to carry out activities under the national
organic program established under this title, there are authorized
to be appropriated—
‘‘(1) $5,000,000 for fiscal year 2008;
‘‘(2) $6,500,000 for fiscal year 2009;
‘‘(3) $8,000,000 for fiscal year 2010;
‘‘(4) $9,500,000 for fiscal year 2011;
‘‘(5) $11,000,000 for fiscal year 2012; and
‘‘(6) in addition to those amounts, such additional sums
as are necessary for fiscal year 2009 and each fiscal year
thereafter.’’.

Subtitle D—Miscellaneous

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SEC. 10401. NATIONAL HONEY BOARD.

Section 7(c) of the Honey Research, Promotion, and Consumer
Information Act (7 U.S.C. 4606(c)) is amended by adding at the
end the following:
‘‘(12) REFERENDUM REQUIREMENT.—
‘‘(A) DEFINITION OF EXISTING HONEY BOARD.—The term
‘existing Honey Board’ means the Honey Board in effect
on the date of enactment of this paragraph.
‘‘(B) CONDUCT OF REFERENDA.—Notwithstanding any
other provision of law, subject to subparagraph (C), the
order providing for the establishment and operation of the
existing Honey Board shall continue in force, until the
Secretary first conducts, at the earliest practicable date,
but not later than 180 days after the date of enactment
of this paragraph, referenda on orders to establish a honey

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packer-importer board or a United States honey producer
board.
‘‘(C) REQUIREMENTS.—In conducting referenda under
subparagraph (B), and in exercising fiduciary responsibilities in any transition to any 1 or more successor boards,
the Secretary shall—
‘‘(i) conduct a referendum of eligible United States
honey producers for the establishment of a marketing
board solely for United States honey producers;
‘‘(ii) conduct a referendum of eligible packers,
importers, and handlers of honey for the establishment
of a marketing board for packers, importers, and handlers of honey;
‘‘(iii) notwithstanding the timing of the referenda
required under clauses (i) and (ii) or of the establishment of any 1 or more successor boards pursuant to
those referenda, ensure that the rights and interests
of honey producers, importers, packers, and handlers
of honey are equitably protected in any disposition
of the assets, facilities, intellectual property, and programs of the existing Honey Board and in the transition to any 1 or more new successor marketing boards;
‘‘(iv) ensure that the existing Honey Board continues in operation until such time as the Secretary
determines that—
‘‘(I) any 1 or more successor boards, if
approved, are operational; and
‘‘(II) the interests of producers, importers,
packers, and handlers of honey can be equitably
protected during any remaining period in which
a referendum on a successor board or the establishment of such a board is pending; and
‘‘(v) discontinue collection of assessments under
the order establishing the existing Honey Board on
the date the Secretary requires that collections commence pursuant to an order approved in a referendum
by eligible producers or processors and importers of
honey.
‘‘(D) HONEY BOARD REFERENDUM.—If 1 or more orders
are approved pursuant to paragraph (C)—
‘‘(i) the Secretary shall not be required to conduct
a continuation referendum on the order in existence
on the date of enactment of this paragraph; and
‘‘(ii) that order shall be terminated pursuant to
the provisions of the order.’’.

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SEC. 10402. IDENTIFICATION OF HONEY.

(a) IN GENERAL.—Section 203(h) of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1622(h)) is amended—
(1) by designating the first through sixth sentences as
paragraphs (1), (2)(A), (2)(B), (3), (4), and (5), respectively;
and
(2) by adding at the end the following:
‘‘(6) IDENTIFICATION OF HONEY.—
‘‘(A) IN GENERAL.—The use of a label or advertising
material on, or in conjunction with, packaged honey that

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bears any official certificate of quality, grade mark or statement, continuous inspection mark or statement, sampling
mark or statement, or any combination of the certificates,
marks, or statements of the Department of Agriculture
is hereby prohibited under this Act unless there appears
legibly and permanently in close proximity (such as on
the same side(s) or surface(s)) to the certificate, mark,
or statement, and in at least a comparable size, the 1
or more names of the 1 or more countries of origin of
the lot or container of honey, preceded by the words
‘Product of’ or other words of similar meaning.
‘‘(B) VIOLATION.—A violation of the requirements of
subparagraph (A) may be deemed by the Secretary to be
sufficient cause for debarment from the benefits of this
Act only with respect to honey.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) take effect on the date that is 1 year after the date of enactment
of this Act.
SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY
CROPS.

7 USC 1622 note.

7 USC 1622c.

(a) GRANTS AUTHORIZED.—The Secretary may make grants
under this section to an eligible entity described in subsection
(b)—
(1) to improve the cost-effective movement of specialty crops
to local, regional, national, and international markets; and
(2) to address regional intermodal transportation deficiencies that adversely affect the movement of specialty crops
to markets inside or outside the United States.
(b) ELIGIBLE GRANT RECIPIENTS.—Grants may be made under
this section to any of, or any combination of:
(1) State and local governments.
(2) Grower cooperatives.
(3) National, State, or regional organizations of producers,
shippers, or carriers.
(4) Other entities as determined to be appropriate by the
Secretary.
(c) MATCHING FUNDS.—The recipient of a grant under this
section shall contribute an amount of non-Federal funds toward
the project for which the grant is provided that is at least equal
to the amount of grant funds received by the recipient under this
section.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as are
necessary for each of fiscal years 2008 through 2012.

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SEC. 10404. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.

(a) IN GENERAL.—As soon as practicable after the date of enactment of this Act, the Secretary shall make payments to producers
of the 2007 crop of asparagus for market loss resulting from imports
during the 2004 through 2007 crop years.
(b) PAYMENT RATE.—The payment rate for a payment under
this section shall be based on the reduction in revenue received
by asparagus producers associated with imports during the 2004
through 2007 crop years.
(c) PAYMENT QUANTITY.—The payment quantity for asparagus
for which the producers on a farm are eligible for payments under

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this section shall be equal to the average quantity of the 2003
crop of asparagus produced by producers on the farm.
(d) FUNDING.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary
shall make available $15,000,000 of the funds of the Commodity
Credit Corporation to carry out a program to provide market
loss payments to producers of asparagus under this section.
(2) ALLOCATION.—Of the amount made available under
paragraph (1), the Secretary shall use—
(A) $7,500,000 to make payments to producers of asparagus for the fresh market; and
(B) $7,500,000 to make payments to producers of asparagus for the processed or frozen market.

TITLE XI—LIVESTOCK
SEC. 11001. LIVESTOCK MANDATORY REPORTING.

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7 USC 1636 note.

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(a) WEB SITE IMPROVEMENTS AND USER EDUCATION.—
(1) IN GENERAL.—Section 251(g) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1636(g)) is amended to read as
follows:
‘‘(g) ELECTRONIC REPORTING AND PUBLISHING.—
‘‘(1) IN GENERAL.—The Secretary shall, to the maximum
extent practicable, provide for the reporting and publishing
of the information required under this subtitle by electronic
means.
‘‘(2) IMPROVEMENTS AND EDUCATION.—
‘‘(A) ENHANCED ELECTRONIC PUBLISHING.—The Secretary shall develop and implement an enhanced system
of electronic publishing to disseminate information collected
pursuant to this subtitle. Such system shall—
‘‘(i) present information in a format that can be
readily understood by producers, packers, and other
market participants;
‘‘(ii) adhere to the publication deadlines in this
subtitle;
‘‘(iii) present information in charts and graphs,
as appropriate;
‘‘(iv) present comparative information for prior
reporting periods, as the Secretary considers appropriate; and
‘‘(v) be updated as soon as practicable after
information is reported to the Secretary.
‘‘(B) EDUCATION.—The Secretary shall carry out a
market news education program to educate the public and
persons in the livestock and meat industries about—
‘‘(i) usage of the system developed under subparagraph (A); and
‘‘(ii) interpreting and understanding information
collected and disseminated through such system.’’.
(2) APPLICABILITY.—
(A) ENHANCED REPORTING.—The Secretary of Agriculture shall develop and implement the system required
under paragraph (2)(A) of section 251(g) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1636(g)), as amended
by paragraph (1), not later than one year after the date

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on which the Secretary determines sufficient funds have
been appropriated pursuant to subsection (c).
(B) CURRENT SYSTEM.—Notwithstanding the amendment made by paragraph (1), the Secretary shall continue
to use the information format for disseminating information
under subtitle B of the Agricultural Marketing Act of 1946
(7 U.S.C. 1621 et seq.) in effect on the date of the enactment
of this Act at least until the date that is two years after
the date on which the Secretary makes the determination
referred to in subparagraph (A).
(b) STUDY AND REPORT.—
(1) STUDY.—The Secretary shall conduct a study on the
effects of requiring packer processing plants to report to the
Secretary information on wholesale pork cuts (including price
and volume information), including—
(A) the positive or negative economic effects on producers and consumers; and
(B) the effects of a confidentiality requirement on
mandatory reporting.
(2) INFORMATION.—During the period preceding the submission of the report under paragraph (3), the Secretary may
collect, and each packer processing plant shall provide, such
information as is necessary to enable the Secretary to conduct
the study required under paragraph (1).
(3) REPORT.—Not later than one year after the date of
the enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on the results of the study conducted under
paragraph (1).
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
this section.

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SEC. 11002. COUNTRY OF ORIGIN LABELING.

Subtitle D of the Agricultural Marketing Act of 1946 (7 U.S.C.
1638 et seq.) is amended—
(1) in section 281(2)(A)—
(A) in clause (v), by striking ‘‘and’’;
(B) in clause (vi), by striking the period at the end
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(vii) meat produced from goats;
‘‘(viii) chicken, in whole and in part;
‘‘(ix) ginseng;
‘‘(x) pecans; and
‘‘(xi) macadamia nuts.’’;
(2) in section 282—
(A) in subsection (a), by striking paragraphs (2) and
(3) and inserting the following:
‘‘(2) DESIGNATION OF COUNTRY OF ORIGIN FOR BEEF, LAMB,
PORK, CHICKEN, AND GOAT MEAT.—
‘‘(A) UNITED STATES COUNTRY OF ORIGIN.—A retailer
of a covered commodity that is beef, lamb, pork, chicken,
or goat meat may designate the covered commodity as
exclusively having a United States country of origin only

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7 USC 1638.

7 USC 1638a.

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PUBLIC LAW 110–246—JUNE 18, 2008
if the covered commodity is derived from an animal that
was—
‘‘(i) exclusively born, raised, and slaughtered in
the United States;
‘‘(ii) born and raised in Alaska or Hawaii and
transported for a period of not more than 60 days
through Canada to the United States and slaughtered
in the United States; or
‘‘(iii) present in the United States on or before
July 15, 2008, and once present in the United States,
remained continuously in the United States.
‘‘(B) MULTIPLE COUNTRIES OF ORIGIN.—
‘‘(i) IN GENERAL.—A retailer of a covered commodity that is beef, lamb, pork, chicken, or goat meat
that is derived from an animal that is—
‘‘(I) not exclusively born, raised, and slaughtered in the United States,
‘‘(II) born, raised, or slaughtered in the United
States, and
‘‘(III) not imported into the United States for
immediate slaughter,
may designate the country of origin of such covered
commodity as all of the countries in which the animal
may have been born, raised, or slaughtered.
‘‘(ii) RELATION TO GENERAL REQUIREMENT.—
Nothing in this subparagraph alters the mandatory
requirement to inform consumers of the country of
origin of covered commodities under paragraph (1).
‘‘(C) IMPORTED FOR IMMEDIATE SLAUGHTER.—A retailer
of a covered commodity that is beef, lamb, pork, chicken,
or goat meat that is derived from an animal that is
imported into the United States for immediate slaughter
shall designate the origin of such covered commodity as—
‘‘(i) the country from which the animal was
imported; and
‘‘(ii) the United States.
‘‘(D) FOREIGN COUNTRY OF ORIGIN.—A retailer of a
covered commodity that is beef, lamb, pork, chicken, or
goat meat that is derived from an animal that is not
born, raised, or slaughtered in the United States shall
designate a country other than the United States as the
country of origin of such commodity.
‘‘(E) GROUND BEEF, PORK, LAMB, CHICKEN, AND GOAT.—
The notice of country of origin for ground beef, ground
pork, ground lamb, ground chicken, or ground goat shall
include—
‘‘(i) a list of all countries of origin of such ground
beef, ground pork, ground lamb, ground chicken, or
ground goat; or
‘‘(ii) a list of all reasonably possible countries of
origin of such ground beef, ground pork, ground lamb,
ground chicken, or ground goat.
‘‘(3) DESIGNATION OF COUNTRY OF ORIGIN FOR FISH.—
‘‘(A) IN GENERAL.—A retailer of a covered commodity
that is farm-raised fish or wild fish may designate the
covered commodity as having a United States country of
origin only if the covered commodity—

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122 STAT. 2115

‘‘(i) in the case of farm-raised fish, is hatched,
raised, harvested, and processed in the United States;
and
‘‘(ii) in the case of wild fish, is—
‘‘(I) harvested in the United States, a territory
of the United States, or a State, or by a vessel
that is documented under chapter 121 of title 46,
United States Code, or registered in the United
States; and
‘‘(II) processed in the United States, a territory
of the United States, or a State, including the
waters thereof, or aboard a vessel that is documented under chapter 121 of title 46, United
States Code, or registered in the United States.
‘‘(B) DESIGNATION OF WILD FISH AND FARM-RAISED
FISH.—The notice of country of origin for wild fish and
farm-raised fish shall distinguish between wild fish and
farm-raised fish.
‘‘(4) DESIGNATION OF COUNTRY OF ORIGIN FOR PERISHABLE
AGRICULTURAL COMMODITIES, GINSENG, PEANUTS, PECANS, AND
MACADAMIA NUTS.—
‘‘(A) IN GENERAL.—A retailer of a covered commodity
that is a perishable agricultural commodity, ginseng, peanut, pecan, or macadamia nut may designate the covered
commodity as having a United States country of origin
only if the covered commodity is exclusively produced in
the United States.
‘‘(B) STATE, REGION, LOCALITY OF THE UNITED STATES.—
With respect to a covered commodity that is a perishable
agricultural commodity, ginseng, peanut, pecan, or macadamia nut produced exclusively in the United States, designation by a retailer of the State, region, or locality of
the United States where such commodity was produced
shall be sufficient to identify the United States as the
country of origin.’’; and
(B) by striking subsection (d) and inserting the following:
‘‘(d) AUDIT VERIFICATION SYSTEM.—
‘‘(1) IN GENERAL.—The Secretary may conduct an audit
of any person that prepares, stores, handles, or distributes
a covered commodity for retail sale to verify compliance with
this subtitle (including the regulations promulgated under section 284(b)).
‘‘(2) RECORD REQUIREMENTS.—
‘‘(A) IN GENERAL.—A person subject to an audit under
paragraph (1) shall provide the Secretary with verification
of the country of origin of covered commodities. Records
maintained in the course of the normal conduct of the
business of such person, including animal health papers,
import or customs documents, or producer affidavits, may
serve as such verification.
‘‘(B) PROHIBITION ON REQUIREMENT OF ADDITIONAL
RECORDS.—The Secretary may not require a person that
prepares, stores, handles, or distributes a covered commodity to maintain a record of the country of origin of
a covered commodity other than those maintained in the

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course of the normal conduct of the business of such person.’’; and
(3) in section 283—
(A) by striking subsections (a) and (c);
(B) by redesignating subsection (b) as subsection (a);
(C) in subsection (a) (as so redesignated), by striking
‘‘retailer’’ and inserting ‘‘retailer or person engaged in the
business of supplying a covered commodity to a retailer’’;
and
(D) by adding at the end the following new subsection:
‘‘(b) FINES.—If, on completion of the 30-day period described
in subsection (a)(2), the Secretary determines that the retailer
or person engaged in the business of supplying a covered commodity
to a retailer has—
‘‘(1) not made a good faith effort to comply with section
282, and
‘‘(2) continues to willfully violate section 282 with respect
to the violation about which the retailer or person received
notification under subsection (a)(1),
after providing notice and an opportunity for a hearing before
the Secretary with respect to the violation, the Secretary may
fine the retailer or person in an amount of not more than $1,000
for each violation.’’.

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SEC. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967 DEFINITIONS.

Section 3 of the Agricultural Fair Practices Act of 1967 (7
U.S.C. 2302) is amended—
(1) by striking ‘‘When used in this Act—’’ and inserting
‘‘In this Act:’’;
(2) in subsection (a)—
(A) by redesignating paragraphs (1) through (4) as
clauses (i) through (iv), respectively; and
(B) in clause (iv) (as so redesignated), by striking
‘‘clause (1), (2), or (3) of this paragraph’’ and inserting
‘‘clause (i), (ii), or (iii)’’;
(3) by striking subsection (d);
(4) by redesignating subsections (a), (b), (c), and (e) as
paragraphs (3), (4), (2), (1), respectively, indenting appropriately, and moving those paragraphs so as to appear in
numerical order;
(5) in each paragraph (as so redesignated) that does not
have a heading, by inserting a heading, in the same style
as the heading in the amendment made by paragraph (6),
the text of which is comprised of the term defined in the
paragraph;
(6) in paragraph (2) (as so redesignated)—
(A) by striking ‘‘The term ‘association of producers’
means’’ and inserting the following:
‘‘(2) ASSOCIATION OF PRODUCERS.—
‘‘(A) IN GENERAL.—The term ‘association of producers’
means’’; and
(B) by adding at the end the following:
‘‘(B) INCLUSION.—The term ‘association of producers’
includes an organization whose membership is exclusively

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122 STAT. 2117

limited to agricultural producers and dedicated to promoting the common interest and general welfare of producers of agricultural products.’’; and
(7) in paragraph (3) (as so redesignated)—
(A) by striking ‘‘The term’’ and inserting the following:
‘‘(3) HANDLER.—
‘‘(A) IN GENERAL.—The term’’; and
(B) by inserting after clause (iv) of subparagraph (A)
(as redesignated by subparagraph (A) and paragraph (2))
the following:
‘‘(B) EXCLUSION.—The term ‘handler’ does not include
a person, other than a packer (as defined in section 201
of the Packers and Stockyards Act, 1921 (7 U.S.C. 191)),
that provides custom feeding services for a producer.’’.
SEC. 11004. ANNUAL REPORT.

(a) IN GENERAL.—The Packers and Stockyards Act, 1921, is
amended—
(1) by redesignating section 416 (7 U.S.C. 229) as section
417; and
(2) by inserting after section 415 (7 U.S.C. 228d) the following:

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‘‘SEC. 416. ANNUAL REPORT.

7 USC 229.

‘‘(a) IN GENERAL.—Not later than March 1 of each year, the
Secretary shall submit to Congress and make publicly available
a report that—
‘‘(1) states, for the preceding year, separately for livestock
and poultry and separately by enforcement area category (financial, trade practice, or competitive acts and practices), with
respect to investigations into possible violations of this Act—
‘‘(A) the number of investigations opened;
‘‘(B) the number of investigations that were closed
or settled without a referral to the General Counsel of
the Department of Agriculture;
‘‘(C) for investigations described in subparagraph (B),
the length of time from initiation of the investigation to
when the investigation was closed or settled without the
filing of an enforcement complaint;
‘‘(D) the number of investigations that resulted in
referral to the General Counsel of the Department of Agriculture for further action, the number of such referrals
resolved without administrative enforcement action, and
the number of enforcement actions filed by the General
Counsel;
‘‘(E) for referrals to the General Counsel that resulted
in an administrative enforcement action being filed, the
length of time from the referral to the filing of the administrative action;
‘‘(F) for referrals to the General Counsel that resulted
in an administrative enforcement action being filed, the
length of time from filing to resolution of the administrative
enforcement action;
‘‘(G) the number of investigations that resulted in
referral to the Department of Justice for further action,
and the number of civil enforcement actions filed by the
Department of Justice on behalf of the Secretary pursuant
to such a referral;

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PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(H) for referrals that resulted in a civil enforcement
action being filed by the Department of Justice, the length
of time from the referral to the filing of the enforcement
action;
‘‘(I) for referrals that resulted in a civil enforcement
action being filed by the Department of Justice, the length
of time from the filing of the enforcement action to resolution; and
‘‘(J) the average civil penalty imposed in administrative
or civil enforcement actions for violations of this Act, and
the total amount of civil penalties imposed in all such
enforcement actions; and
‘‘(2) includes any other additional information the Secretary
considers important to include in the annual report.
‘‘(b) FORMAT OF INFORMATION PROVIDED.—For subparagraphs
(C), (E), (F), and (H) of subsection (a)(1), the Secretary may, if
appropriate due to the number of complaints for a given category,
provide summary statistics (including range, maximum, minimum,
mean, and average times) and graphical representations.’’.
(b) SUNSET.—Effective September 30, 2012, section 416 of the
Packers and Stockyards Act, 1921, as added by subsection (a)(2),
is repealed.
SEC. 11005. PRODUCTION CONTRACTS.

Title II of the Packers and Stockyards Act, 1921 (7 U.S.C.
198 et seq.) is amended by adding at the end the following:

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7 USC 197a.

‘‘SEC. 208. PRODUCTION CONTRACTS.

‘‘(a) RIGHT OF CONTRACT PRODUCERS TO CANCEL PRODUCTION
CONTRACTS.—
‘‘(1) IN GENERAL.—A poultry grower or swine production
contract grower may cancel a poultry growing arrangement
or swine production contract by mailing a cancellation notice
to the live poultry dealer or swine contractor not later than
the later of—
‘‘(A) the date that is 3 business days after the date
on which the poultry growing arrangement or swine production contract is executed; or
‘‘(B) any cancellation date specified in the poultry
growing arrangement or swine production contract.
‘‘(2) DISCLOSURE.—A poultry growing arrangement or swine
production contract shall clearly disclose—
‘‘(A) the right of the poultry grower or swine production
contract grower to cancel the poultry growing arrangement
or swine production contract;
‘‘(B) the method by which the poultry grower or swine
production contract grower may cancel the poultry growing
arrangement or swine production contract; and
‘‘(C) the deadline for canceling the poultry growing
arrangement or swine production contract.
‘‘(b) REQUIRED DISCLOSURE OF ADDITIONAL CAPITAL INVESTMENTS IN PRODUCTION CONTRACTS.—
‘‘(1) IN GENERAL.—A poultry growing arrangement or swine
production contract shall contain on the first page a statement
identified as ‘Additional Capital Investments Disclosure Statement’, which shall conspicuously state that additional large
capital investments may be required of the poultry grower

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or swine production contract grower during the term of the
poultry growing arrangement or swine production contract.
‘‘(2) APPLICATION.—Paragraph (1) shall apply to any poultry
growing arrangement or swine production contract entered into,
amended, altered, modified, renewed, or extended after the
date of the enactment of this section.
‘‘SEC. 209. CHOICE OF LAW AND VENUE.

7 USC 197b.

‘‘(a) LOCATION OF FORUM.—The forum for resolving any dispute
among the parties to a poultry growing arrangement or swine
production or marketing contract that arises out of the arrangement
or contract shall be located in the Federal judicial district in which
the principle part of the performance takes place under the arrangement or contract.
‘‘(b) CHOICE OF LAW.—A poultry growing arrangement or swine
production or marketing contract may specify which State’s law
is to apply to issues governed by State law in any dispute arising
out of the arrangement or contract, except to the extent that doing
so is prohibited by the law of the State in which the principal
part of the performance takes place under the arrangement or
contract.

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‘‘SEC. 210. ARBITRATION.

7 USC 197c.

‘‘(a) IN GENERAL.—Any livestock or poultry contract that contains a provision requiring the use of arbitration to resolve any
controversy that may arise under the contract shall contain a provision that allows a producer or grower, prior to entering the contract
to decline to be bound by the arbitration provision.
‘‘(b) DISCLOSURE.—Any livestock or poultry contract that contains a provision requiring the use of arbitration shall contain
terms that conspicuously disclose the right of the contract producer
or grower, prior to entering the contract, to decline the requirement
to use arbitration to resolve any controversy that may arise under
the livestock or poultry contract.
‘‘(c) DISPUTE RESOLUTION.—Any contract producer or grower
that declines a requirement of arbitration pursuant to subsection
(b) has the right, to nonetheless seek to resolve any controversy
that may arise under the livestock or poultry contract, if, after
the controversy arises, both parties consent in writing to use
arbitration to settle the controversy.
‘‘(d) APPLICATION.—Subsections (a) (b) and (c) shall apply to
any contract entered into, amended, altered, modified, renewed,
or extended after the date of the enactment of the Food, Conservation, and Energy Act of 2008 .
‘‘(e) UNLAWFUL PRACTICE.—Any action by or on behalf of a
packer, swine contractor, or live poultry dealer that violates this
section (including any action that has the intent or effect of limiting
the ability of a producer or grower to freely make a choice described
in subsection (b)) is an unlawful practice under this Act.
‘‘(f) REGULATIONS.—The Secretary shall promulgate regulations
to—
‘‘(1) carry out this section; and
‘‘(2) establish criteria that the Secretary will consider in
determining whether the arbitration process provided in a contract provides a meaningful opportunity for the grower or producer to participate fully in the arbitration process.’’.

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7 USC 228 note.

SEC. 11006. REGULATIONS.

Deadline.

As soon as practicable, but not later than 2 years after the
date of the enactment of this Act, the Secretary of Agriculture
shall promulgate regulations with respect to the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) to establish criteria that
the Secretary will consider in determining—
(1) whether an undue or unreasonable preference or advantage has occurred in violation of such Act;
(2) whether a live poultry dealer has provided reasonable
notice to poultry growers of any suspension of the delivery
of birds under a poultry growing arrangement;
(3) when a requirement of additional capital investments
over the life of a poultry growing arrangement or swine production contract constitutes a violation of such Act; and
(4) if a live poultry dealer or swine contractor has provided
a reasonable period of time for a poultry grower or a swine
production contract grower to remedy a breach of contract
that could lead to termination of the poultry growing arrangement or swine production contract.
SEC. 11007. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION PROGRAM.

It is the sense of Congress that—
(1) the Secretary of Agriculture should recognize the threat
feral swine pose to the domestic swine population and the
entire livestock industry;
(2) keeping the United States commercial swine herd free
of pseudorabies is essential to maintaining and growing pork
export markets;
(3) the establishment and continued support of a swine
surveillance system will assist the swine industry in the monitoring, surveillance, and eradication of pseudorabies; and
(4) pseudorabies eradication is a high priority that the
Secretary should carry out under the authorities of the Animal
Health Protection Act.
SEC. 11008. SENSE OF CONGRESS REGARDING THE CATTLE FEVER
TICK ERADICATION PROGRAM.

It is the sense of Congress that—
(1) the cattle fever tick and the southern cattle tick are
vectors of the causal agent of babesiosis, a severe and often
fatal disease of cattle; and
(2) implementing a national strategic plan for the cattle
fever tick eradication program is a high priority that the Secretary of Agriculture should carry out in order to—
(A) prevent the entry of cattle fever ticks into the
United States;
(B) enhance and maintain an effective surveillance program to rapidly detect any cattle fever tick incursions;
and
(C) research, identify, and procure the tools and knowledge necessary to prevent and eradicate cattle fever ticks
in the United States.

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SEC. 11009. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

(a) FUNDING.—Section 375(e)(6) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008j(e)(6)) is amended by striking
subparagraphs (B) and (C) and inserting the following:

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‘‘(B) MANDATORY FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry
out this section $1,000,000 for fiscal year 2008, to remain
available until expended.
‘‘(C) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary to carry
out this section $10,000,000 for each of fiscal years 2008
through 2012.’’.
(b) REPEAL OF REQUIREMENT TO PRIVATIZE REVOLVING FUND.—
(1) IN GENERAL.—Section 375 of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2008j) is amended by
striking subsection (j).
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) takes effect on May 1, 2007.

7 USC 2008j
note.

SEC. 11010. TRICHINAE CERTIFICATION PROGRAM.

(a) VOLUNTARY TRICHINAE CERTIFICATION.—
(1) ESTABLISHMENT.—Not later than 90 days after the date
of the enactment of this Act, the Secretary of Agriculture shall
establish a voluntary trichinae certification program. Such program shall include the facilitation of the export of pork products
and certification services related to such products.
(2) REGULATIONS.—The Secretary shall issue final regulations to implement the program under paragraph (1) not later
than 90 days after the date of the enactment of this Act.
(3) REPORT.—If final regulations are not published in
accordance with paragraph (2) within 90 days of the date of
the enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report containing—
(A) an explanation of why the final regulations have
not been issued in accordance with paragraph (2); and
(B) the date on which the Secretary expects to issue
such final regulations.
(b) FUNDING.—Subject to the availability of appropriations
under subsection (d)(1)(A) of section 10405 of the Animal Health
Protection Act (7 U.S.C. 8304), as added by subsection (c), the
Secretary shall use not less than $6,200,000 of the funds made
available under such subsection to carry out subsection (a).
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 10405 of the
Animal Health Protection Act (7 U.S.C. 8304) is amended by adding
at the end the following new subsection:
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be appropriated—
‘‘(A) $1,500,000 for each of fiscal years 2008 through
2012 to carry out section 11010 of the Food, Conservation,
and Energy Act of 2008; and
‘‘(B) such sums as may be necessary for each of fiscal
years 2008 through 2012 to carry out this section.
‘‘(2) AVAILABILITY.—Funds appropriated under paragraph
(1) shall remain available until expended.’’.

Deadlines.
7 USC 8304 note.

7 USC 8304 note.

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SEC. 11011. LOW PATHOGENIC DISEASES.

The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is
amended—
(1) in section 10407(d)(2)(C) (7 U.S.C. 8306(d)(2)(C)), by
striking ‘‘of longer than 60 days’’;

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(2) in section 10409(b) (7 U.S.C. 8308(b))—
(A) by redesignating paragraph (2) as paragraph (3);
(B) by inserting after paragraph (1) the following new
paragraph:
‘‘(2) SPECIFIC COOPERATIVE PROGRAMS.—The Secretary shall
compensate industry participants and State agencies that
cooperate with the Secretary in carrying out operations and
measures under subsection (a) for 100 percent of eligible costs
relating to cooperative programs involving Federal, State, and
industry participants to control diseases of low pathogenicity
in accordance with regulations issued by the Secretary.’’; and
(C) in paragraph (3) (as so redesignated), by striking
‘‘of longer than 60 days’’; and
(3) in section 10417(b)(3) (7 U.S.C. 8316(b)(3)), by striking
‘‘of longer than 60 days’’.

SEC. 11012. ANIMAL PROTECTION.
7 USC 8313.

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7 USC 8322.

(a) WILLFUL VIOLATIONS.—Section 10414(b)(1)(A) of the Animal
Health Protection Act (7 U.S.C. 8316(b)(1)(A)) is amended by
striking clause (iii) and inserting the following:
‘‘(iii) for all violations adjudicated in a single proceeding—
‘‘(I) $500,000 if the violations do not include
a willful violation; or
‘‘(II) $1,000,000 if the violations include 1 or
more willful violations.’’.
(b) SUBPOENA AUTHORITY.—Section 10415(a)(2) of the Animal
Health Protection Act (7 U.S.C. 8314) is amended
(1) by striking subparagraph (A) and inserting the following:
‘‘(A) IN GENERAL.—The Secretary shall have the power
to subpoena the attendance and testimony of any witness,
the production of all evidence (including books, papers,
documents, electronically stored information, and other tangible things that constitute or contain evidence), or to
require the person to whom the subpoena is directed to
permit the inspection of premises relating to the administration or enforcement of this title or any matter under
investigation in connection with this title.’’;
(2) in subparagraph (B), by striking ‘‘documentary’’; and
(3) in subparagraph (C)—
(A) in clause (i), by striking ‘‘testimony of any witness
and the production of documentary evidence’’ and inserting
‘‘testimony of any witness, the production of evidence, or
the inspection of premises’’; and
(B) in clause (ii), by striking ‘‘question or to produce
documentary evidence’’ and inserting ‘‘question, produce
evidence, or permit the inspection of premises’’.
SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN.

(a) IN GENERAL.—The Secretary of Agriculture may enter into
a cooperative agreement with an eligible entity to carry out a
project under a national aquatic animal health plan under the
authority of the Secretary under section 10411 of the Animal Health
Protection Act (7 U.S.C. 8310) for the purpose of detecting, controlling, or eradicating diseases of aquaculture species and promoting
species-specific best management practices.

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122 STAT. 2123

(b) COOPERATIVE AGREEMENTS BETWEEN ELIGIBLE ENTITIES
SECRETARY.—
(1) DUTIES.—As a condition of entering into a cooperative
agreement with the Secretary under this section, an eligible
entity shall agree to—
(A) assume responsibility for the non-Federal share
of the cost of carrying out the project under the national
aquatic health plan, as determined by the Secretary in
accordance with paragraph (2); and
(B) act in accordance with applicable disease and species specific best management practices relating to activities to be carried out under such project.
(2) NON-FEDERAL SHARE.—The Secretary shall determine
the non-Federal share of the cost of carrying out a project
under the national aquatic health plan on a case-by-case basis
for each such project. Such non-Federal share may be provided
in cash or in-kind.
(c) APPLICABILITY OF OTHER LAWS.—In carrying out this section,
the Secretary may make use of the authorities under the Animal
Health Protection Act (7 U.S.C. 8301 et seq.), including the
authority to carry out operations and measures to detect, control,
and eradicate pests and diseases and the authority to pay claims
arising out of the destruction of any animal, article, or means
of conveyance.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated such sums as may be necessary to carry out
this section for each of fiscal years 2008 through 2012.
(e) ELIGIBLE ENTITY DEFINED.—In this section, the term
‘‘eligible entity’’ means a State, a political subdivision of a State,
Indian tribe, or other appropriate entity, as determined by the
Secretary of Agriculture.

AND THE

SEC. 11014. STUDY ON BIOENERGY OPERATIONS.

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(a) STUDY.—The Secretary of Agriculture shall conduct a study
to evaluate the role of animal manure as a source of fertilizer
and its potential additional uses. Such study shall include—
(1) a determination of the extent to which animal manure
is utilized as fertilizer in agricultural operations by type
(including species and agronomic practices employed) and size;
(2) an evaluation of the potential impact on consumers
and on agricultural operations (by size) resulting from limitations being placed on the utilization of animal manure as
fertilizer; and
(3) an evaluation of the effects on agriculture production
contributable to the increased competition for animal manure
use due to bioenergy production, including as a feedstock or
a replacement for fossil fuels.
(b) REPORT.—Not later than one year after the date of the
enactment of this Act, the Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate the results
of the study conducted under subsection (a).

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122 STAT. 2124

PUBLIC LAW 110–246—JUNE 18, 2008

SEC.

11015.

INTERSTATE SHIPMENT OF MEAT AND POULTRY
INSPECTED BY FEDERAL AND STATE AGENCIES FOR
CERTAIN SMALL ESTABLISHMENTS.

(a) MEAT AND MEAT PRODUCTS.—The Federal Meat Inspection
Act (21 U.S.C. 601 et seq.) is amended by adding at the end
the following:

‘‘TITLE V—INSPECTIONS BY FEDERAL
AND STATE AGENCIES

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21 USC 683.

‘‘SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL
AND STATE AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.

‘‘(a) DEFINITIONS.—
‘‘(1) APPROPRIATE STATE AGENCY.—The term ‘appropriate
State agency’ means a State agency described in section 301(b).
‘‘(2) DESIGNATED PERSONNEL.—The term ‘designated personnel’ means inspection personnel of a State agency that have
undergone all necessary inspection training and certification
to assist the Secretary in the administration and enforcement
of this Act, including rules and regulations issued under this
Act.
‘‘(3) ELIGIBLE ESTABLISHMENT.—The term ‘eligible
establishment’ means an establishment that is in compliance
with—
‘‘(A) the State inspection program of the State in which
the establishment is located; and
‘‘(B) this Act, including rules and regulations issued
under this Act.
‘‘(4) MEAT ITEM.—The term ‘meat item’ means—
‘‘(A) a portion of meat; and
‘‘(B) a meat food product.
‘‘(5) SELECTED ESTABLISHMENT.—The term ‘selected
establishment’ means an eligible establishment that is selected
by the Secretary, in coordination with the appropriate State
agency of the State in which the eligible establishment is
located, under subsection (b) to ship carcasses, portions of carcasses, and meat items in interstate commerce.
‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIPMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the State
in which an establishment is located, may select the establishment to ship carcasses, portions of carcasses, and meat items
in interstate commerce, and place on each carcass, portion
of a carcass, and meat item shipped in interstate commerce
a Federal mark, stamp, tag, or label of inspection, if—
‘‘(A) the carcass, portion of carcass, or meat item qualifies for the mark, stamp, tag, or label of inspection under
the requirements of this Act;
‘‘(B) the establishment is an eligible establishment;
and
‘‘(C) inspection services for the establishment are provided by designated personnel.

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122 STAT. 2125

‘‘(2) PROHIBITED ESTABLISHMENTS.—In carrying out paragraph (1), the Secretary, in coordination with an appropriate
State agency, shall not select an establishment that—
‘‘(A) on average, employs more than 25 employees
(including supervisory and nonsupervisory employees), as
defined by the Secretary;
‘‘(B) as of the date of the enactment of this section,
ships in interstate commerce carcasses, portions of carcasses, or meat items that are inspected by the Secretary
in accordance with this Act;
‘‘(C)(i) is a Federal establishment;
‘‘(ii) was a Federal establishment that was reorganized
on a later date under the same name or a different name
or person by the person, firm, or corporation that controlled
the establishment as of the date of the enactment of this
section; or
‘‘(iii) was a State establishment as of the date of the
enactment of this section that—
‘‘(I) as of the date of the enactment of this section,
employed more than 25 employees; and
‘‘(II) was reorganized on a later date by the person,
firm, or corporation that controlled the establishment
as of the date of the enactment of this section;
‘‘(D) is in violation of this Act;
‘‘(E) is located in a State that does not have a State
inspection program; or
‘‘(F) is the subject of a transition carried out in accordance with a procedure developed by the Secretary under
paragraph (3)(A).
‘‘(3) ESTABLISHMENTS THAT EMPLOY MORE THAN 25
EMPLOYEES.—
‘‘(A) DEVELOPMENT OF PROCEDURE.—The Secretary
may develop a procedure to transition to a Federal
establishment any establishment under this section that,
on average, consistently employs more than 25 employees.
‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISHMENTS.—
‘‘(i) IN GENERAL.—A State establishment that
employs more than 25 employees but less than 35
employees as of the date of the enactment of this
section may be selected as a selected establishment
under this subsection.
‘‘(ii) PROCEDURES.—A State establishment shall be
subject to the procedures established under subparagraph (A) beginning on the date that is 3 years after
the effective date described in subsection (j).
‘‘(c) REIMBURSEMENT OF STATE COSTS.—The Secretary shall
reimburse a State for costs related to the inspection of selected
establishments in the State in accordance with Federal requirements in an amount of not less than 60 percent of eligible State
costs.
‘‘(d) COORDINATION BETWEEN FEDERAL AND STATE AGENCIES.—
‘‘(1) IN GENERAL.—The Secretary shall designate an
employee of the Federal Government as State coordinator for
each appropriate State agency—
‘‘(A) to provide oversight and enforcement of this title;
and

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122 STAT. 2126

‘‘(B) to oversee the training and inspection activities
of designated personnel of the State agency.
‘‘(2) SUPERVISION.—A State coordinator shall be under the
direct supervision of the Secretary.
‘‘(3) DUTIES OF STATE COORDINATOR.—
‘‘(A) IN GENERAL.—A State coordinator shall visit
selected establishments with a frequency that is appropriate to ensure that selected establishments are operating
in a manner that is consistent with this Act (including
regulations and policies under this Act).
‘‘(B) QUARTERLY REPORTS.—A State coordinator shall,
on a quarterly basis, submit to the Secretary a report
that describes the status of each selected establishment
that is under the jurisdiction of the State coordinator with
respect to the level of compliance of each selected establishment with the requirements of this Act.
‘‘(C) IMMEDIATE NOTIFICATION REQUIREMENT.—If a
State coordinator determines that any selected establishment that is under the jurisdiction of the State coordinator
is in violation of any requirement of this Act, the State
coordinator shall—
‘‘(i) immediately notify the Secretary of the violation; and
‘‘(ii) deselect the selected establishment or suspend
inspection at the selected establishment.
‘‘(4) PERFORMANCE EVALUATIONS.—Performance evaluations of State coordinators designated under this subsection
shall be conducted by the Secretary as part of the Federal
agency management control system.
‘‘(e) AUDITS.—
‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPECTOR GENERAL
OF THE DEPARTMENT OF AGRICULTURE.—Not later than 2 years
after the effective date described in subsection (j), and not
less often than every 3 years thereafter, the Inspector General
of the Department of Agriculture shall conduct an audit of
each activity taken by the Secretary under this section for
the period covered by the audit to determine compliance with
this section.
‘‘(2) AUDIT CONDUCTED BY COMPTROLLER GENERAL OF THE
UNITED STATES.—Not earlier than 3 years, nor later than 5
years, after the date of the enactment of this section, the
Comptroller General of the United States shall conduct an
audit of the implementation of this section to determine—
‘‘(A) the effectiveness of the implementation of this
section; and
‘‘(B) the number of selected establishments selected
by the Secretary to ship carcasses, portions of carcasses,
or meat items under this section.
‘‘(f) TECHNICAL ASSISTANCE DIVISION.—
‘‘(1) ESTABLISHMENT.—Not later than 180 days after the
effective date described in subsection (j), the Secretary shall
establish in the Food Safety and Inspection Service of the
Department of Agriculture a technical assistance division to
coordinate the initiatives of any other appropriate agency of
the Department of Agriculture to provide—

Deadlines.

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Deadline.

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 2127

‘‘(A) outreach, education, and training to very small
or certain small establishments (as defined by the Secretary); and
‘‘(B) grants to appropriate State agencies to provide
outreach, technical assistance, education, and training to
very small or certain small establishments (as defined by
the Secretary).
‘‘(2) PERSONNEL.—The technical assistance division shall
be comprised of individuals that, as determined by the Secretary—
‘‘(A) are of a quantity sufficient to carry out the duties
of the technical assistance division; and
‘‘(B) possess appropriate qualifications and expertise
relating to the duties of the technical assistance division.
‘‘(g) TRANSITION GRANTS.—The Secretary may provide grants
to appropriate State agencies to assist the appropriate State agencies in helping establishments covered by title III to transition
to selected establishments.
‘‘(h) VIOLATIONS.—Any selected establishment that the Secretary determines to be in violation of any requirement of this
Act shall be transitioned to a Federal establishment in accordance
with a procedure developed by the Secretary under subsection
(b)(3)(A).
‘‘(i) EFFECT.—Nothing in this section limits the jurisdiction
of the Secretary with respect to the regulation of meat and meat
products under this Act.
‘‘(j) EFFECTIVE DATE.—
‘‘(1) IN GENERAL.—This section takes effect on the date
on which the Secretary, after providing a period of public comment (including through the conduct of public meetings or
hearings), promulgates final regulations to carry out this section.
‘‘(2) REQUIREMENT.—Not later than 18 months after the
date of the enactment of this section, the Secretary shall
promulgate final regulations in accordance with paragraph (1).’’.
(b) POULTRY AND POULTRY PRODUCTS.—The Poultry Products
Inspection Act (21 U.S.C. 451 et seq.) is amended by adding at
the end the following:

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‘‘SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL
ESTABLISHMENTS.

Deadline.

21 USC 472.

‘‘(a) DEFINITIONS.—
‘‘(1) APPROPRIATE STATE AGENCY.—The term ‘appropriate
State agency’ means a State agency described in section 5(a)(1).
‘‘(2) DESIGNATED PERSONNEL.—The term ‘designated personnel’ means inspection personnel of a State agency that have
undergone all necessary inspection training and certification
to assist the Secretary in the administration and enforcement
of this Act, including rules and regulations issued under this
Act.
‘‘(3) ELIGIBLE ESTABLISHMENT.—The term ‘eligible
establishment’ means an establishment that is in compliance
with—
‘‘(A) the State inspection program of the State in which
the establishment is located; and

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122 STAT. 2128

PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(B) this Act, including rules and regulations issued
under this Act.
‘‘(4) POULTRY ITEM.—The term ‘poultry item’ means—
‘‘(A) a portion of poultry; and
‘‘(B) a poultry product.
‘‘(5) SELECTED ESTABLISHMENT.—The term ‘selected
establishment’ means an eligible establishment that is selected
by the Secretary, in coordination with the appropriate State
agency of the State in which the eligible establishment is
located, under subsection (b) to ship poultry items in interstate
commerce.
‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIPMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the State
in which an establishment is located, may select the establishment to ship poultry items in interstate commerce, and place
on each poultry item shipped in interstate commerce a Federal
mark, stamp, tag, or label of inspection, if—
‘‘(A) the poultry item qualifies for the Federal mark,
stamp, tag, or label of inspection under the requirements
of this Act;
‘‘(B) the establishment is an eligible establishment;
and
‘‘(C) inspection services for the establishment are provided by designated personnel.
‘‘(2) PROHIBITED ESTABLISHMENTS.—In carrying out paragraph (1), the Secretary, in coordination with an appropriate
State agency, shall not select an establishment that—
‘‘(A) on average, employs more than 25 employees
(including supervisory and nonsupervisory employees), as
defined by the Secretary;
‘‘(B) as of the date of the enactment of this section,
ships in interstate commerce carcasses, portions of carcasses, or poultry items that are inspected by the Secretary
in accordance with this Act;
‘‘(C)(i) is a Federal establishment;
‘‘(ii) was a Federal establishment as of the date of
the enactment of this section, and was reorganized on
a later date under the same name or a different name
or person by the person, firm, or corporation that controlled
the establishment as of the date of the enactment of this
section; or
‘‘(iii) was a State establishment as of the date of the
enactment of this section that—
‘‘(I) as of the date of the enactment of this section,
employed more than 25 employees; and
‘‘(II) was reorganized on a later date by the person,
firm, or corporation that controlled the establishment
as of the date of the enactment of this section;
‘‘(D) is in violation of this Act;
‘‘(E) is located in a State that does not have a State
inspection program; or
‘‘(F) is the subject of a transition carried out in accordance with a procedure developed by the Secretary under
paragraph (3)(A).
‘‘(3) ESTABLISHMENTS THAT EMPLOY MORE THAN 25
EMPLOYEES.—

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122 STAT. 2129

‘‘(A) DEVELOPMENT OF PROCEDURE.—The Secretary
may develop a procedure to transition to a Federal
establishment any establishment under this section that,
on average, consistently employs more than 25 employees.
‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISHMENTS.—
‘‘(i) IN GENERAL.—A State establishment that
employs more than 25 employees but less than 35
employees as of the date of the enactment of this
section may be selected as a selected establishment
under this subsection.
‘‘(ii) PROCEDURES.—A State establishment shall be
subject to the procedures established under subparagraph (A) beginning on the date that is 3 years after
the effective date described in subsection (i).
‘‘(c) REIMBURSEMENT OF STATE COSTS.—The Secretary shall
reimburse a State for costs related to the inspection of selected
establishments in the State in accordance with Federal requirements in an amount of not less than 60 percent of eligible State
costs.
‘‘(d) COORDINATION BETWEEN FEDERAL AND STATE AGENCIES.—
‘‘(1) IN GENERAL.—The Secretary shall designate an
employee of the Federal Government as State coordinator for
each appropriate State agency—
‘‘(A) to provide oversight and enforcement of this section; and
‘‘(B) to oversee the training and inspection activities
of designated personnel of the State agency.
‘‘(2) SUPERVISION.—A State coordinator shall be under the
direct supervision of the Secretary.
‘‘(3) DUTIES OF STATE COORDINATOR.—
‘‘(A) IN GENERAL.—A State coordinator shall visit
selected establishments with a frequency that is appropriate to ensure that selected establishments are operating
in a manner that is consistent with this Act (including
regulations and policies under this Act).
‘‘(B) QUARTERLY REPORTS.—A State coordinator shall,
on a quarterly basis, submit to the Secretary a report
that describes the status of each selected establishment
that is under the jurisdiction of the State coordinator with
respect to the level of compliance of each selected establishment with the requirements of this Act.
‘‘(C) IMMEDIATE NOTIFICATION REQUIREMENT.—If a
State coordinator determines that any selected establishment that is under the jurisdiction of the State coordinator
is in violation of any requirement of this Act, the State
coordinator shall—
‘‘(i) immediately notify the Secretary of the violation; and
‘‘(ii) deselect the selected establishment or suspend
inspection at the selected establishment.
‘‘(4) PERFORMANCE EVALUATIONS.—Performance evaluations of State coordinators designated under this subsection
shall be conducted by the Secretary as part of the Federal
agency management control system.
‘‘(e) AUDITS.—
‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPECTOR GENERAL
OF THE DEPARTMENT OF AGRICULTURE.—Not later than 2 years

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Regulations.

PUBLIC LAW 110–246—JUNE 18, 2008

after the effective date described in subsection (i), and not
less often than every 3 years thereafter, the Inspector General
of the Department of Agriculture shall conduct an audit of
each activity taken by the Secretary under this section for
the period covered by the audit to determine compliance with
this section.
‘‘(2) AUDIT CONDUCTED BY COMPTROLLER GENERAL OF THE
UNITED STATES.—Not earlier than 3 years, nor later than 5
years, after the date of the enactment of this section, the
Comptroller General of the United States shall conduct an
audit of the implementation of this section to determine—
‘‘(A) the effectiveness of the implementation of this
section; and
‘‘(B) the number of selected establishments selected
by the Secretary to ship poultry items under this section.
‘‘(f) TRANSITION GRANTS.—The Secretary may provide grants
to appropriate State agencies to assist the appropriate State agencies in helping establishments covered by this Act to transition
to selected establishments.
‘‘(g) VIOLATIONS.—Any selected establishment that the Secretary determines to be in violation of any requirement of this
Act shall be transitioned to a Federal establishment in accordance
with a procedure developed by the Secretary under subsection
(b)(3)(A).
‘‘(h) EFFECT.—Nothing in this section limits the jurisdiction
of the Secretary with respect to the regulation of poultry and
poultry products under this Act.
‘‘(i) EFFECTIVE DATE.—
‘‘(1) IN GENERAL.—This section takes effect on the date
on which the Secretary, after providing a period of public comment (including through the conduct of public meetings or
hearings), promulgates final regulations to carry out this section.
‘‘(2) REQUIREMENT.—Not later than 18 months after the
date of the enactment of this section, the Secretary shall
promulgate final regulations in accordance with paragraph (1).’’.

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SEC. 11016. INSPECTION AND GRADING.

(a) GRADING.—Section 203 of the Agricultural Marketing Act
of 1946 (7 U.S.C. 1622) is amended—
(1) by redesignating subsection (n) as subsection (o); and
(2) by inserting after subsection (m) the following new
subsection:
‘‘(n) GRADING PROGRAM.—To establish within the Department
of Agriculture a voluntary fee based grading program for—
‘‘(1) catfish (as defined by the Secretary under paragraph
(2) of section 1(w) of the Federal Meat Inspection Act (21
U.S.C. 601(w))); and
‘‘(2) any additional species of farm-raised fish or farmraised shellfish—
‘‘(A) for which the Secretary receives a petition
requesting such voluntary fee based grading; and
‘‘(B) that the Secretary considers appropriate.’’.
(b) INSPECTION.—
(1) IN GENERAL.—The Federal Meat Inspection Act is
amended—
(A) in section 1(w) (21 U.S.C. 601(w)) —

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122 STAT. 2131

(i) by striking ‘‘and’’ at the end of paragraph (1);
(ii) by redesignating paragraph (2) as paragraph
(3); and
(iii) by inserting after paragraph (1) the following
new paragraph:
‘‘(2) catfish, as defined by the Secretary; and’’;
(B) by striking section 6 (21 U.S.C. 606) and inserting
the following new section:
‘‘SEC. 6. (a) IN GENERAL.—For the purposes hereinbefore set
forth the Secretary shall cause to be made, by inspectors appointed
for that purpose, an examination and inspection of all meat food
products prepared for commerce in any slaughtering, meat-canning,
salting, packing, rendering, or similar establishment, and for the
purposes of any examination and inspection and inspectors shall
have access at all times, by day or night, whether the establishment
be operated or not, to every part of said establishment; and said
inspectors shall mark, stamp, tag, or label as ‘Inspected and passed’
all such products found to be not adulterated; and said inspectors
shall label, mark, stamp, or tag as ‘Inspected and condemned’
all such products found adulterated, and all such condemned meat
food products shall be destroyed for food purposes, as hereinbefore
provided, and the Secretary may remove inspectors from any
establishment which fails to so destroy such condemned meat food
products: Provided, That subject to the rules and regulations of
the Secretary the provisions of this section in regard to preservatives shall not apply to meat food products for export to any foreign
country and which are prepared or packed according to the specifications or directions of the foreign purchaser, when no substance
is used in the preparation or packing thereof in conflict with the
laws of the foreign country to which said article is to be exported;
but if said article shall be in fact sold or offered for sale for
domestic use or consumption then this proviso shall not exempt
said article from the operation of all the other provisions of this
chapter.
‘‘(b) CATFISH.—In the case of an examination and inspection
under subsection (a) of a meat food product derived from catfish,
the Secretary shall take into account the conditions under which
the catfish is raised and transported to a processing establishment.’’;
and
(C) by adding at the end of title I the following new
section:
‘‘SEC. 25. Notwithstanding any other provision of this Act,
the requirements of sections 3, 4, 5, 10(b), and 23 shall not apply
to catfish.’’.
(2) EFFECTIVE DATE.—
(A) IN GENERAL.—The amendments made by paragraph
(1) shall not apply until the date on which the Secretary
of Agriculture issues final regulations (after providing a
period of public comment, including through the conduct
of public meetings or hearings, in accordance with chapter
5 of title 5, United States Code) to carry out such amendments.
(B) REGULATIONS.—Not later than 18 months after
the date of the enactment of this Act, the Secretary of
Agriculture, in consultation with the Commissioner of Food
and Drugs, shall issue final regulations to carry out the
amendments made by paragraph (1).

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21 USC 606.

21 USC 625.

21 USC 601 note.

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PUBLIC LAW 110–246—JUNE 18, 2008
(3) BUDGET REQUEST.—Not later than 30 days after the
date of the enactment of this Act, the Secretary of Agriculture
shall submit to Congress an estimate of the costs of implementing the amendments made by paragraph (1), including
the estimated—
(A) staff years;
(B) number of establishments;
(C) volume expected to be produced at such establishments; and
(D) any other information used in estimating the costs
of implementing such amendments.

Deadline.

SEC. 11017. FOOD SAFETY IMPROVEMENT.

(a) FEDERAL MEAT INSPECTION ACT.—Title I of the Federal
Meat Inspection Act is further amended by inserting after section
11 (21 U.S.C. 611) the following:
21 USC 612.

‘‘SEC. 12. NOTIFICATION.

‘‘Any establishment subject to inspection under this Act that
believes, or has reason to believe, that an adulterated or misbranded
meat or meat food product received by or originating from the
establishment has entered into commerce shall promptly notify
the Secretary with regard to the type, amount, origin, and destination of the meat or meat food product.
21 USC 613.

‘‘SEC. 13. PLANS AND REASSESSMENTS.

‘‘The Secretary shall require that each establishment subject
to inspection under this Act shall, at a minimum—
‘‘(1) prepare and maintain current procedures for the recall
of all meat or meat food products produced and shipped by
the establishment;
‘‘(2) document each reassessment of the process control
plans of the establishment; and
‘‘(3) upon request, make the procedures and reassessed
process control plans available to inspectors appointed by the
Secretary for review and copying.’’.
(b) POULTRY PRODUCTS INSPECTION ACT.—Section 10 of the
Poultry Products Inspection Act (21 U.S.C. 459) is amended—
(1) by striking the section heading and all that follows
through ‘‘SEC. 10. No establishment’’ and inserting the following:

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‘‘SEC. 10. COMPLIANCE BY ALL ESTABLISHMENTS.

‘‘(a) IN GENERAL.—No establishment’’; and
(2) by adding at the end the following:
‘‘(b) NOTIFICATION.—Any establishment subject to inspection
under this Act that believes, or has reason to believe, that an
adulterated or misbranded poultry or poultry product received by
or originating from the establishment has entered into commerce
shall promptly notify the Secretary with regard to the type, amount,
origin, and destination of the poultry or poultry product.
‘‘(c) PLANS AND REASSESSMENTS.—The Secretary shall require
that each establishment subject to inspection under this Act shall,
at a minimum—
‘‘(1) prepare and maintain current procedures for the recall
of all poultry or poultry products produced and shipped by
the establishment;
‘‘(2) document each reassessment of the process control
plans of the establishment; and

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‘‘(3) upon request, make the procedures and reassessed
process control plans available to inspectors appointed by the
Secretary for review and copying.’’.

TITLE XII—CROP INSURANCE AND
DISASTER ASSISTANCE PROGRAMS
Subtitle A—Crop Insurance and
Agricultural Disaster Assistance
SEC. 12001. DEFINITION OF ORGANIC CROP.

Section 502(b) of the Federal Crop Insurance Act (7 U.S.C.
1502(b)) is amended—
(1) by redesignating paragraphs (7) and (8) as paragraphs
(8) and (9), respectively; and
(2) by inserting after paragraph (6) the following:
‘‘(7) ORGANIC CROP.—The term ‘organic crop’ means an
agricultural commodity that is organically produced consistent
with section 2103 of the Organic Foods Production Act of 1990
(7 U.S.C. 6502).’’.
SEC. 12002. GENERAL POWERS.

(a) IN GENERAL.—Section 506 of the Federal Crop Insurance
Act (7 U.S.C. 1506) is amended—
(1) in the first sentence of subsection (d), by striking ‘‘The
Corporation’’ and inserting ‘‘Subject to section 508(j)(2)(A), the
Corporation’’; and
(2) by striking subsection (n).
(b) CONFORMING AMENDMENTS.—
(1) Section 506 of the Federal Crop Insurance Act (7 U.S.C.
1506) is amended by redesignating subsections (o), (p), and
(q) as subsections (n), (o), and (p), respectively.
(2) Section 521 of the Federal Crop Insurance Act (7 U.S.C.
1521) is amended by striking the last sentence.

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SEC. 12003. REDUCTION IN LOSS RATIO.

(a) PROJECTED LOSS RATIO.—Subsection (n)(2) of section 506
of the Federal Crop Insurance Act (7 U.S.C. 1506) (as redesignated
by section 12002(b)(1)) is amended—
(1) in the paragraph heading, by striking ‘‘AS OF OCTOBER
1, 1998’’;
(2) by striking ‘‘, on and after October 1, 1998,’’; and
(3) by striking ‘‘1.075’’ and inserting ‘‘1.0’’.
(b) PREMIUMS REQUIRED.—Section 508(d)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking ‘‘not
greater than 1.1’’ and all that follows and inserting ‘‘not greater
than—
‘‘(A) 1.1 through September 30, 1998;
‘‘(B) 1.075 for the period beginning October 1, 1998,
and ending on the day before the date of enactment of
the Food, Conservation, and Energy Act of 2008; and
‘‘(C) 1.0 on and after the date of enactment of that
Act.’’.

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SEC. 12004. PREMIUMS ADJUSTMENTS.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) is amended by adding at the end the following:
‘‘(9) PREMIUM ADJUSTMENTS.—
‘‘(A) PROHIBITION.—Except as provided in subparagraph (B), no person shall pay, allow, or give, or offer
to pay, allow, or give, directly or indirectly, either as an
inducement to procure insurance or after insurance has
been procured, any rebate, discount, abatement, credit, or
reduction of the premium named in an insurance policy
or any other valuable consideration or inducement not
specified in the policy.
‘‘(B) EXCEPTIONS.—Subparagraph (A) does not apply
with respect to—
‘‘(i) a payment authorized under subsection
(b)(5)(B);
‘‘(ii) a performance-based discount authorized
under subsection (d)(3); or
‘‘(iii) a patronage dividend, or similar payment,
that is paid—
‘‘(I) by an entity that was approved by the
Corporation to make such payments for the 2005,
2006, or 2007 reinsurance year, in accordance with
subsection (b)(5)(B) as in effect on the day before
the date of enactment of this paragraph; and
‘‘(II) in a manner consistent with the payment
plan approved in accordance with that subsection
for the entity by the Corporation for the applicable
reinsurance year.’’.

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SEC. 12005. CONTROLLED BUSINESS INSURANCE.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) (as amended by section 12004) is amended by adding
at the end the following:
‘‘(10) COMMISSIONS.—
‘‘(A) DEFINITION OF IMMEDIATE FAMILY.—In this paragraph, the term ‘immediate family’ means an individual’s
father, mother, stepfather, stepmother, brother, sister, stepbrother, stepsister, son, daughter, stepson, stepdaughter,
grandparent, grandson, granddaughter, father-in-law,
mother-in-law, brother-in-law, sister-in-law, son-in-law,
daughter-in-law, the spouse of the foregoing, and the
individual’s spouse.
‘‘(B) PROHIBITION.—No individual (including a
subagent) may receive directly, or indirectly through an
entity, any compensation (including any commission, profit
sharing, bonus, or any other direct or indirect benefit)
for the sale or service of a policy or plan of insurance
offered under this title if—
‘‘(i) the individual has a substantial beneficial
interest, or a member of the individual’s immediate
family has a substantial beneficial interest, in the
policy or plan of insurance; and
‘‘(ii) the total compensation to be paid to the individual with respect to the sale or service of the policies
or plans of insurance that meet the condition described

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in clause (i) exceeds 30 percent or the percentage specified in State law, whichever is less, of the total of
all compensation received directly or indirectly by the
individual for the sale or service of all policies and
plans of insurance offered under this title for the
reinsurance year.
‘‘(C) REPORTING.—Not later than 90 days after the
annual settlement date of the reinsurance year, any individual that received directly or indirectly any compensation
for the service or sale of any policy or plan of insurance
offered under this title in the prior reinsurance year shall
certify to applicable approved insurance providers that the
compensation that the individual received was in compliance with this paragraph.
‘‘(D) SANCTIONS.—The procedural requirements and
sanctions prescribed in section 515(h) shall apply to the
prosecution of a violation of this paragraph.
‘‘(E) APPLICABILITY.—
‘‘(i) IN GENERAL.—Sanctions for violations under
this paragraph shall only apply to the individuals or
entities directly responsible for the certification
required under subparagraph (C) or the failure to
comply with the requirements of this paragraph.
‘‘(ii) PROHIBITION.—No sanctions shall apply with
respect to the policy or plans of insurance upon which
compensation is received, including the reinsurance
for those policies or plans.’’.

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SEC. 12006. ADMINISTRATIVE FEE.

(a) IN GENERAL.—Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended—
(1) by striking subparagraph (A) and inserting the following:
‘‘(A) BASIC FEE.—Each producer shall pay an administrative fee for catastrophic risk protection in the amount
of $300 per crop per county.’’; and
(2) in subparagraph (B)—
(A) by striking ‘‘PAYMENT ON BEHALF OF PRODUCERS’’
and inserting ‘‘PAYMENT OF CATASTROPHIC RISK PROTECTION FEE ON BEHALF OF PRODUCERS’’;
(B) in clause (i)—
(i) by striking ‘‘or other payment’’; and
(ii) by striking ‘‘with catastrophic risk protection
or additional coverage’’ and inserting ‘‘through the payment of catastrophic risk protection administrative
fees’’;
(C) by striking clauses (ii) and (vi);
(D) by redesignating clauses (iii), (iv), and (v) as clauses
(ii), (iii), and (iv), respectively;
(E) in clause (iii) (as so redesignated), by striking ‘‘A
policy or plan of insurance’’ and inserting ‘‘Catastrophic
risk protection coverage’’; and
(F) in clause (iv) (as so redesignated)—
(i) by striking ‘‘or other arrangement under this
subparagraph’’; and
(ii) by striking ‘‘additional’’.

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PUBLIC LAW 110–246—JUNE 18, 2008

(b) REPEAL.—Section 748 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (7 U.S.C. 1508 note; Public Law 105–277) is
repealed.
SEC. 12007. TIME FOR PAYMENT.

Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508)
is amended—
(1) in subsection (b)(5)(C), by striking ‘‘the date that premium’’ and inserting ‘‘the same date on which the premium’’;
(2) in subsection (c)(10), by adding at the end the following:
‘‘(C) TIME FOR PAYMENT.—Subsection (b)(5)(C) shall
apply with respect to the collection date for the administrative fee.’’; and
(3) in subsection (d), by adding at the end the following:
‘‘(4) BILLING DATE FOR PREMIUMS.—Effective beginning with
the 2012 reinsurance year, the Corporation shall establish
August 15 as the billing date for premiums.’’.
SEC. 12008. CATASTROPHIC COVERAGE REIMBURSEMENT RATE.

Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)(11)) is amended by striking ‘‘8 percent’’ and inserting ‘‘6
percent’’.
SEC. 12009. GRAIN SORGHUM PRICE ELECTION.

Deadlines.

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Contracts.

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Section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C.
1508(c)(5)) is amended by adding at the end the following:
‘‘(D) GRAIN SORGHUM PRICE ELECTION.—
‘‘(i) IN GENERAL.—The Corporation, in conjunction
with the Secretary (referred to in this subparagraph
as the ‘Corporation’), shall—
‘‘(I) not later than 60 days after the date of
enactment of this subparagraph, make available
all methods and data, including data from the
Economic Research Service, used by the Corporation to develop the expected market prices for grain
sorghum under the production and revenue-based
plans of insurance of the Corporation; and
‘‘(II) request applicable data from the grain
sorghum industry.
‘‘(ii) EXPERT REVIEWERS.—
‘‘(I) IN GENERAL.—Not later than 120 days
after the date of enactment of this subparagraph,
the Corporation shall contract individually with
5 expert reviewers described in subclause (II) to
develop and recommend a methodology for determining an expected market price for sorghum for
both the production and revenue-based plans of
insurance to more accurately reflect the actual
price at harvest.
‘‘(II) REQUIREMENTS.—The expert reviewers
under subclause (I) shall be comprised of agricultural economists with experience in grain sorghum
and corn markets, of whom—
‘‘(aa) 2 shall be agricultural economists
of institutions of higher education;
‘‘(bb) 2 shall be economists from within
the Department; and

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‘‘(cc) 1 shall be an economist nominated
by the grain sorghum industry.
‘‘(iii) RECOMMENDATIONS.—
‘‘(I) IN GENERAL.—Not later than 90 days after
the date of contracting with the expert reviewers
under clause (ii), the expert reviewers shall
submit, and the Corporation shall make available
to the public, the recommendations of the expert
reviewers.
‘‘(II) CONSIDERATION.—The Corporation shall
consider the recommendations under subclause (I)
when determining the appropriate pricing methodology to determine the expected market price for
grain sorghum under both the production and revenue-based plans of insurance.
‘‘(III) PUBLICATION.—Not later than 60 days
after the date on which the Corporation receives
the recommendations of the expert reviewers, the
Corporation shall publish the proposed pricing
methodology for both the production and revenuebased plans of insurance for notice and comment
and, during the comment period, conduct at least
1 public meeting to discuss the proposed pricing
methodologies.
‘‘(iv) APPROPRIATE PRICING METHODOLOGY.—
‘‘(I) IN GENERAL.—Not later than 180 days
after the close of the comment period in clause
(iii)(III), but effective not later than the 2010 crop
year, the Corporation shall implement a pricing
methodology for grain sorghum under the production and revenue-based plans of insurance that
is transparent and replicable.
‘‘(II) INTERIM METHODOLOGY.—Until the date
on which the new pricing methodology is implemented, the Corporation may continue to use the
pricing methodology that the Corporation determines best establishes the expected market price.
‘‘(III) AVAILABILITY.—On an annual basis, the
Corporation shall make available the pricing methodology and data used to determine the expected
market prices for grain sorghum under the production and revenue-based plans of insurance,
including any changes to the methodology used
to determine the expected market prices for grain
sorghum from the previous year.’’.

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SEC. 12010. PREMIUM REDUCTION AUTHORITY.

Subsection 508(e) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)) is amended—
(1) in paragraph (2), by striking ‘‘paragraph (4)’’ and
inserting ‘‘paragraph (3)’’;
(2) by striking paragraph (3); and
(3) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.

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SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS.

Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e))
(as amended by section 12010) is amended by adding at the end
the following:
‘‘(5) ENTERPRISE AND WHOLE FARM UNITS.—
‘‘(A) IN GENERAL.—The Corporation may carry out a
pilot program under which the Corporation pays a portion
of the premiums for plans or policies of insurance for which
the insurable unit is defined on a whole farm or enterprise
unit basis that is higher than would otherwise be paid
in accordance with paragraph (2).
‘‘(B) AMOUNT.—The percentage of the premium paid
by the Corporation to a policyholder for a policy with an
enterprise or whole farm unit under this paragraph shall,
to the maximum extent practicable, provide the same dollar
amount of premium subsidy per acre that would otherwise
have been paid by the Corporation under paragraph (2)
if the policyholder had purchased a basic or optional unit
for the crop for the crop year.
‘‘(C) LIMITATION.—The amount of the premium paid
by the Corporation under this paragraph may not exceed
80 percent of the total premium for the enterprise or whole
farm unit policy.’’.

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SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE
PLANS.

Section 508(e) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)) (as amended by section 12011) is amended—
(1) in paragraph (2), in the matter preceding subparagraph
(A), by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4),
(6), and (7)’’; and
(2) by adding at the end the following:
‘‘(6) PREMIUM SUBSIDY FOR AREA REVENUE PLANS.—Subject
to paragraph (4), in the case of a policy or plan of insurance
that covers losses due to a reduction in revenue in an area,
the amount of the premium paid by the Corporation shall
be as follows:
‘‘(A) In the case of additional area coverage equal to
or greater than 70 percent, but less than 75 percent, of
the recorded county yield indemnified at not greater than
100 percent of the expected market price, the amount shall
be equal to the sum of—
‘‘(i) 59 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage
level selected; and
‘‘(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.
‘‘(B) In the case of additional area coverage equal to
or greater than 75 percent, but less than 85 percent, of
the recorded county yield indemnified at not greater than
100 percent of the expected market price, the amount shall
be equal to the sum of—
‘‘(i) 55 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage
level selected; and

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‘‘(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.
‘‘(C) In the case of additional area coverage equal to
or greater than 85 percent, but less than 90 percent, of
the recorded county yield indemnified at not greater than
100 percent of the expected market price, the amount shall
be equal to the sum of—
‘‘(i) 49 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage
level selected; and
‘‘(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.
‘‘(D) In the case of additional area coverage equal to
or greater than 90 percent of the recorded county yield
indemnified at not greater than 100 percent of the expected
market price, the amount shall be equal to the sum of—
‘‘(i) 44 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage
level selected; and
‘‘(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.
‘‘(7) PREMIUM SUBSIDY FOR AREA YIELD PLANS.—Subject
to paragraph (4), in the case of a policy or plan of insurance
that covers losses due to a loss of yield or prevented planting
in an area, the amount of the premium paid by the Corporation
shall be as follows:
‘‘(A) In the case of additional area coverage equal to
or greater than 70 percent, but less than 80 percent, of
the recorded county yield indemnified at not greater than
100 percent of the expected market price, the amount shall
be equal to the sum of—
‘‘(i) 59 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage
level selected; and
‘‘(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.
‘‘(B) In the case of additional area coverage equal to
or greater than 80 percent, but less than 90 percent, of
the recorded county yield indemnified at not greater than
100 percent of the expected market price, the amount shall
be equal to the sum of—
‘‘(i) 55 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage
level selected; and
‘‘(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.
‘‘(C) In the case of additional area coverage equal to
or greater than 90 percent, of the recorded county yield
indemnified at not greater than 100 percent of the expected
market price, the amount shall be equal to the sum of—

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‘‘(i) 51 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage
level selected; and
‘‘(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.’’.

SEC. 12013. DENIAL OF CLAIMS.

Section 508(j)(2)(A) of the Federal Crop Insurance Act (7 U.S.C.
1508(j)(2)(A)) is amended by inserting ‘‘on behalf of the Corporation’’
after ‘‘approved provider’’.
SEC. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON FARMSTORED PRODUCTION.

(a) IN GENERAL.—Section 508(j) of the Federal Crop Insurance
Act (7 U.S.C. 1508(j)) is amended by adding at the end the following:
‘‘(5) SETTLEMENT OF CLAIMS ON FARM-STORED PRODUCTION.—A producer with farm-stored production may, at the
option of the producer, delay settlement of a crop insurance
claim relating to the farm-stored production for up to 4 months
after the last date on which claims may be submitted under
the policy of insurance.’’.
(b) STUDY ON THE EFFICACY OF PACK FACTORS.—
(1) IN GENERAL.—The Secretary shall conduct a study of
the efficacy and accuracy of the application of pack factors
regarding the measurement of farm-stored production for purposes of providing policies or plans of insurance under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
(2) CONSIDERATIONS.—The study shall consider—
(A) structural shape and size;
(B) time in storage;
(C) the impact of facility aeration systems; and
(D) any other factors the Secretary considers appropriate.
(3) REPORT.—Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report that includes the findings of the study and any related
policy recommendations.
SEC. 12015. TIME FOR REIMBURSEMENT.

Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(4)) is amended by adding at the end the following:
‘‘(D) TIME FOR REIMBURSEMENT.—Effective beginning
with the 2012 reinsurance year, the Corporation shall
reimburse approved insurance providers and agents for
the allowable administrative and operating costs of the
providers and agents as soon as practicable after October
1 (but not later than October 31) after the reinsurance
year for which reimbursements are earned.’’.

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SEC. 12016. REIMBURSEMENT RATE.

Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(4)) (as amended by section 12015) is amended—
(1) in subparagraph (A), by striking ‘‘Except as provided
in subparagraph (B)’’ and inserting ‘‘Except as otherwise provided in this paragraph’’; and

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(2) by adding at the end the following:
‘‘(E) REIMBURSEMENT RATE REDUCTION.—In the case
of a policy of additional coverage that received a rate of
reimbursement for administrative and operating costs for
the 2008 reinsurance year, for each of the 2009 and subsequent reinsurance years, the reimbursement rate for
administrative and operating costs shall be 2.3 percentage
points below the rates in effect as of the date of enactment
of the Food, Conservation, and Energy Act of 2008 for
all crop insurance policies used to define loss ratio, except
that only 1⁄2 of the reduction shall apply in a reinsurance
year to the total premium written in a State in which
the State loss ratio is greater than 1.2.
‘‘(F) REIMBURSEMENT RATE FOR AREA POLICIES AND
PLANS OF INSURANCE.—Notwithstanding subparagraphs (A)
through (E), for each of the 2009 and subsequent reinsurance years, the reimbursement rate for area policies and
plans of insurance widely available as of the date of enactment of this subparagraph shall be 12 percent of the premium used to define loss ratio for that reinsurance year.’’.

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SEC. 12017. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)) is amended by adding at the end the following:
‘‘(8) RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), notwithstanding section 536 of the Agricultural
Research, Extension, and Education Reform Act of 1998
(7 U.S.C. 1506 note; Public Law 105–185) and section 148
of the Agricultural Risk Protection Act of 2000 (7 U.S.C.
1506 note; Public Law 106–224), the Corporation may
renegotiate the financial terms and conditions of each
Standard Reinsurance Agreement—
‘‘(i) to be effective for the 2011 reinsurance year
beginning July 1, 2010; and
‘‘(ii) once during each period of 5 reinsurance years
thereafter.
‘‘(B) EXCEPTIONS.—
‘‘(i) ADVERSE CIRCUMSTANCES.—Subject to clause
(ii), subparagraph (A) shall not apply in any case in
which the approved insurance providers, as a whole,
experience unexpected adverse circumstances, as determined by the Secretary.
‘‘(ii) EFFECT OF FEDERAL LAW CHANGES.—If Federal
law is enacted after the date of enactment of this
paragraph that requires revisions in the financial
terms of the Standard Reinsurance Agreement, and
changes in the Agreement are made on a mandatory
basis by the Corporation, the changes shall not be
considered to be a renegotiation of the Agreement for
purposes of subparagraph (A).
‘‘(C) NOTIFICATION REQUIREMENT.—If the Corporation
renegotiates a Standard Reinsurance Agreement under
subparagraph (A)(iii), the Corporation shall notify the Committee on Agriculture of the House of Representatives and

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the Committee on Agriculture, Nutrition, and Forestry of
the Senate of the renegotiation.
‘‘(D) CONSULTATION.—The approved insurance providers may confer with each other and collectively with
the Corporation during any renegotiation under subparagraph (A).
‘‘(E) 2011 REINSURANCE YEAR.—
‘‘(i) IN GENERAL.—As part of the Standard Reinsurance Agreement renegotiation authorized under
subparagraph (A)(i), the Corporation shall consider
alternative methods to determine reimbursement rates
for administrative and operating costs.
‘‘(ii) ALTERNATIVE METHODS.—Alternatives considered under clause (i) shall include—
‘‘(I) methods that—
‘‘(aa) are graduated and base reimbursement rates in a State on changes in premiums
in that State;
‘‘(bb) are graduated and base reimbursement rates in a State on the loss ratio for
crop insurance for that State; and
‘‘(cc) are graduated and base reimbursement rates on individual policies on the level
of total premium for each policy; and
‘‘(II) any other method that takes into account
current financial conditions of the program and
ensures continued availability of the program to
producers on a nationwide basis.’’.

SEC. 12018. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR
UNDERWRITING GAINS.

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)) (as amended by section 12017) is amended by adding
at the end the following:
‘‘(9) DUE DATE FOR PAYMENT OF UNDERWRITING GAINS.—
Effective beginning with the 2011 reinsurance year, the Corporation shall make payments for underwriting gains under
this title on—
‘‘(A) for the 2011 reinsurance year, October 1, 2012;
and
‘‘(B) for each reinsurance year thereafter, October 1
of the following calendar year.’’.
SEC. 12019. MALTING BARLEY.

Section 508(m) of the Federal Crop Insurance Act (7 U.S.C.
1508(m)) is amended by adding at the end the following:
‘‘(5) SPECIAL PROVISIONS FOR MALTING BARLEY.—The Corporation shall promulgate special provisions under this subsection specific to malting barley, taking into consideration
any changes in quality factors, as required by applicable market
conditions.’’.

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SEC. 12020. CROP PRODUCTION ON NATIVE SOD.

(a) FEDERAL CROP INSURANCE.—Section 508 of the Federal
Crop Insurance Act (7 U.S.C. 1508) is amended by adding at the
end the following:
‘‘(o) CROP PRODUCTION ON NATIVE SOD.—

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122 STAT. 2143

‘‘(1) DEFINITION OF NATIVE SOD.—In this subsection, the
term ‘native sod’ means land—
‘‘(A) on which the plant cover is composed principally
of native grasses, grasslike plants, forbs, or shrubs suitable
for grazing and browsing; and
‘‘(B) that has never been tilled for the production of
an annual crop as of the date of enactment of this subsection.
‘‘(2) INELIGIBILITY FOR BENEFITS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B) and
paragraph (3), native sod acreage that has been tilled for
the production of an annual crop after the date of enactment of this subsection shall be ineligible during the first
5 crop years of planting, as determined by the Secretary,
for benefits under—
‘‘(i) this title; and
‘‘(ii) section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333).
‘‘(B) DE MINIMIS ACREAGE EXEMPTION.—The Secretary
shall exempt areas of 5 acres or less from subparagraph
(A).
‘‘(3) APPLICATION.—Paragraph (2) may apply to native sod
acreage in the Prairie Pothole National Priority Area at the
election of the Governor of the respective State.’’.
(b) NONINSURED CROP DISASTER ASSISTANCE.—Section 196(a)
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333(a)) is amended by adding at the end the following:
‘‘(4) PROGRAM INELIGIBILITY RELATING TO CROP PRODUCTION
ON NATIVE SOD.—
‘‘(A) DEFINITION OF NATIVE SOD.—In this paragraph,
the term ‘native sod’ means land—
‘‘(i) on which the plant cover is composed principally of native grasses, grasslike plants, forbs, or
shrubs suitable for grazing and browsing; and
‘‘(ii) that has never been tilled for the production
of an annual crop as of the date of enactment of this
paragraph.
‘‘(B) INELIGIBILITY FOR BENEFITS.—
‘‘(i) IN GENERAL.—Subject to clause (ii) and
subparagraph (C), native sod acreage that has been
tilled for the production of an annual crop after the
date of enactment of this paragraph shall be ineligible
during the first 5 crop years of planting, as determined
by the Secretary, for benefits under—
‘‘(I) this section; and
‘‘(II) the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.).
‘‘(ii) DE MINIMIS ACREAGE EXEMPTION.—The Secretary shall exempt areas of 5 acres or less from clause
(i).
‘‘(C) APPLICATION.—Subparagraph (B) may apply to
native sod acreage in the Prairie Pothole National Priority
Area at the election of the Governor of the respective
State.’’.

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SEC. 12021. INFORMATION MANAGEMENT.

Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515)
is amended—
(a) in subsection (j)(3), by adding before the period at the
end the following: ‘‘, which shall be subject to competition on a
periodic basis, as determined by the Secretary’’; and
(b) by striking subsection (k) and inserting the following:
‘‘(k) FUNDING.—
‘‘(1) INFORMATION TECHNOLOGY.—To carry out subsection
(j)(1), the Corporation may use, from amounts made available
from the insurance fund established under section 516(c), not
more than $15,000,000 for each of fiscal years 2008 through
2011.
‘‘(2) DATA MINING.—To carry out subsection (j)(2), the Corporation may use, from amounts made available from the insurance fund established under section 516(c), not more than
$4,000,000 for fiscal year 2009 and each subsequent fiscal
year.’’.

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SEC. 12022. RESEARCH AND DEVELOPMENT.

(a) IN GENERAL.—Section 522(b) of the Federal Crop Insurance
Act (7 U.S.C. 1522(b)) is amended by striking paragraphs (1) and
(2) and inserting the following:
‘‘(1) RESEARCH AND DEVELOPMENT PAYMENT.—
‘‘(A) IN GENERAL.—The Corporation shall provide a
payment to an applicant for research and development
costs in accordance with this subsection.
‘‘(B) REIMBURSEMENT.—An applicant who submits a
policy under section 508(h) shall be eligible for the
reimbursement of reasonable research and development
costs directly related to the policy if the policy is approved
by the Board for sale to producers.
‘‘(2) ADVANCE PAYMENTS.—
‘‘(A) IN GENERAL.—Subject to the other provisions of
this paragraph, the Board may approve the request of
an applicant for advance payment of a portion of reasonable
research and development costs prior to submission and
approval of the policy by the Board under section 508(h).
‘‘(B) PROCEDURES.—The Board shall establish procedures for approving advance payment of reasonable
research and development costs to applicants.
‘‘(C) CONCEPT PROPOSAL.—As a condition of eligibility
for advance payments, an applicant shall submit a concept
proposal for the policy that the applicant plans to submit
to the Board under section 508(h), consistent with procedures established by the Board for submissions under
subparagraph (B), including—
‘‘(i) a summary of the qualifications of the
applicant, including any prior concept proposals and
submissions to the Board under section 508(h) and,
if applicable, any work conducted under this section;
‘‘(ii) a projection of total research and development
costs that the applicant expects to incur;
‘‘(iii) a description of the need for the policy, the
marketability of and expected demand for the policy
among affected producers, and the potential impact

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122 STAT. 2145

of the policy on producers and the crop insurance
delivery system;
‘‘(iv) a summary of data sources available to demonstrate that the policy can reasonably be developed
and actuarially appropriate rates established; and
‘‘(v) an identification of the risks the proposed
policy will cover and an explanation of how the identified risks are insurable under this title.
‘‘(D) REVIEW.—
‘‘(i) EXPERTS.—If the requirements of subparagraph (B) and (C) are met, the Board may submit
a concept proposal described in subparagraph (C) to
not less than 2 independent expert reviewers, whose
services are appropriate for the type of concept proposal
submitted, to assess the likelihood that the proposed
policy being developed will result in a viable and
marketable policy, as determined by the Board.
‘‘(ii) TIMING.—The time frames described in subparagraphs (C) and (D) of section 508(h)(4) shall apply
to the review of concept proposals under this subparagraph.
‘‘(E) APPROVAL.—The Board may approve up to 50 percent of the projected total research and development costs
to be paid in advance to an applicant, in accordance with
the procedures developed by the Board for the making
of such payments, if, after consideration of the reviewer
reports described in subparagraph (D) and such other
information as the Board determines appropriate, the
Board determines that—
‘‘(i) the concept, in good faith, will likely result
in a viable and marketable policy consistent with section 508(h);
‘‘(ii) in the sole opinion of the Board, the concept,
if developed into a policy and approved by the Board,
would provide crop insurance coverage—
‘‘(I) in a significantly improved form;
‘‘(II) to a crop or region not traditionally served
by the Federal crop insurance program; or
‘‘(III) in a form that addresses a recognized
flaw or problem in the program;
‘‘(iii) the applicant agrees to provide such reports
as the Corporation determines are necessary to monitor
the development effort;
‘‘(iv) the proposed budget and timetable are reasonable; and
‘‘(v) the concept proposal meets any other requirements that the Board determines appropriate.
‘‘(F) SUBMISSION OF POLICY.—If the Board approves
an advanced payment under subparagraph (E), the Board
shall establish a date by which the applicant shall present
a submission in compliance with section 508(h) (including
the procedures implemented under that section) to the
Board for approval.
‘‘(G) FINAL PAYMENT.—
‘‘(i) APPROVED POLICIES.—If a policy is submitted
under subparagraph (F) and approved by the Board
under section 508(h) and the procedures established

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by the Board (including procedures established under
subparagraph (B)), the applicant shall be eligible for
a payment of reasonable research and development
costs in the same manner as policies reimbursed under
paragraph (1)(B), less any payments made pursuant
to subparagraph (E).
‘‘(ii) POLICIES NOT APPROVED.—If a policy is submitted under subparagraph (F) and is not approved
by the Board under section 508(h), the Corporation
shall—
‘‘(I) not seek a refund of any payments made
in accordance with this paragraph; and
‘‘(II) not make any further research and
development cost payments associated with the
submission of the policy under this paragraph.
‘‘(H) POLICY NOT SUBMITTED.—If an applicant receives
an advance payment and fails to fulfill the obligation of
the applicant to the Board by not submitting a completed
submission without just cause and in accordance with the
procedures established under subparagraph (B)), including
notice and reasonable opportunity to respond, as determined by the Board, the applicant shall return to the
Board the amount of the advance plus interest.
‘‘(I) REPEATED SUBMISSIONS.—The Board may prohibit
advance payments to applicants who have submitted—
‘‘(i) a concept proposal or submission that did not
result in a marketable product; or
‘‘(ii) a concept proposal or submission of poor
quality.
‘‘(J) CONTINUED ELIGIBILITY.—A determination that an
applicant is not eligible for advance payments under this
paragraph shall not prevent an applicant from reimbursement under paragraph (1)(B).’’.
(b) CONFORMING AMENDMENTS.—Section 522(b) of the Federal
Crop Insurance Act (7 U.S.C. 1522(b)) is amended—
(1) in paragraph (3), by striking ‘‘or (2)’’; and
(2) in paragraph (4)(A), by striking ‘‘and (2)’’.’’
SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND STUDIES.

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Section 522(c) of the Federal Crop Insurance Act (7 U.S.C.
1522) is amended—
(1) by redesignating paragraph (10) as paragraph (17);
and
(2) by inserting after paragraph (9) the following:
‘‘(10) CONTRACTS FOR ORGANIC PRODUCTION COVERAGE
IMPROVEMENTS.—
‘‘(A) CONTRACTS REQUIRED.—Not later than 180 days
after the date of enactment of the Food, Conservation,
and Energy Act of 2008, the Corporation shall enter into
1 or more contracts for the development of improvements
in Federal crop insurance policies covering crops produced
in compliance with standards issued by the Department
of Agriculture under the national organic program established under the Organic Foods Production Act of 1990
(7 U.S.C. 6501 et seq.).
‘‘(B) REVIEW OF UNDERWRITING RISK AND LOSS EXPERIENCE.—

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‘‘(i) REVIEW REQUIRED.—
‘‘(I) IN GENERAL.—A contract under subparagraph (A) shall include a review of the underwriting, risk, and loss experience of organic crops
covered by the Corporation, as compared with the
same crops produced in the same counties and
during the same crop years using nonorganic
methods.
‘‘(II) REQUIREMENTS.—The review shall—
‘‘(aa) to the maximum extent practicable,
be designed to allow the Corporation to determine whether significant, consistent, or systemic variations in loss history exist between
organic and nonorganic production;
‘‘(bb) include the widest available range
of data collected by the Secretary and other
outside sources of information; and
‘‘(cc) not be limited to loss history under
existing crop insurance policies.
‘‘(ii) EFFECT ON PREMIUM SURCHARGE.—Unless the
review under this subparagraph documents the existence of significant, consistent, and systemic variations
in loss history between organic and nonorganic crops,
either collectively or on an individual crop basis, the
Corporation shall eliminate or reduce the premium
surcharge that the Corporation charges for coverage
for organic crops, as determined in accordance with
the results.
‘‘(iii) ANNUAL UPDATES.—Beginning with the 2009
crop year, the review under this subparagraph shall
be updated on an annual basis as data is accumulated
by the Secretary and other sources, so that the Corporation may make determinations regarding adjustments to the surcharge in a timely manner as quickly
as evolving practices and data trends allow.
‘‘(C) ADDITIONAL PRICE ELECTION.—
‘‘(i) IN GENERAL.—A contract under subparagraph
(A) shall include the development of a procedure,
including any associated changes in policy terms or
materials required for implementation of the procedure, to offer producers of organic crops an additional
price election that reflects actual prices received by
organic producers for crops from the field (including
appropriate retail and wholesale prices), as established
using data collected and maintained by the Secretary
or from other sources.
‘‘(ii) TIMING.—The development of the procedure
shall be completed in a timely manner to allow the
Corporation to begin offering the additional price election for organic crops with sufficient data for the 2010
crop year.
‘‘(iii) EXPANSION.—The procedure shall be
expanded as quickly as practicable as additional data
on prices of organic crops collected by the Secretary
and other sources of information becomes available,
with a goal of applying this procedure to all organic
crops not later than the fifth full crop year that begins

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PUBLIC LAW 110–246—JUNE 18, 2008
after the date of enactment of Food, Conservation,
and Energy Act of 2008.
‘‘(D) REPORTING REQUIREMENTS.—
‘‘(i) IN GENERAL.—The Corporation shall submit
to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report
on progress made in developing and improving Federal
crop insurance for organic crops, including—
‘‘(I) the numbers and varieties of organic crops
insured;
‘‘(II) the development of new insurance
approaches; and
‘‘(III) the progress of implementing the initiatives required under this paragraph, including the
rate at which additional price elections are adopted
for organic crops.
‘‘(ii) RECOMMENDATIONS.—The report shall include
such recommendations as the Corporation considers
appropriate to improve Federal crop insurance coverage for organic crops.
‘‘(11) ENERGY CROP INSURANCE POLICY.—
‘‘(A) DEFINITION OF DEDICATED ENERGY CROP.—In this
subsection, the term ‘dedicated energy crop’ means an
annual or perennial crop that—
‘‘(i) is grown expressly for the purpose of producing
a feedstock for renewable biofuel, renewable electricity,
or biobased products; and
‘‘(ii) is not typically used for food, feed, or fiber.
‘‘(B) AUTHORITY.—The Corporation shall offer to enter
into 1 or more contracts with qualified entities to carry
out research and development regarding a policy to insure
dedicated energy crops.
‘‘(C) RESEARCH AND DEVELOPMENT.—Research and
development described in subparagraph (B) shall evaluate
the effectiveness of risk management tools for the production of dedicated energy crops, including policies and plans
of insurance that—
‘‘(i) are based on market prices and yields;
‘‘(ii) to the extent that insufficient data exist to
develop a policy based on market prices and yields,
evaluate the policies and plans of insurance based
on the use of weather or rainfall indices to protect
the interests of crop producers; and
‘‘(iii) provide protection for production or revenue
losses, or both.
‘‘(12) AQUACULTURE INSURANCE POLICY.—
‘‘(A) DEFINITION OF AQUACULTURE.—In this subsection:
‘‘(i) IN GENERAL.—The term ‘aquaculture’ means
the propagation and rearing of aquatic species in controlled or selected environments, including shellfish
cultivation on grants or leased bottom and ocean
ranching.
‘‘(ii) EXCLUSION.—The term ‘aquaculture’ does not
include the private ocean ranching of Pacific salmon
for profit in any State in which private ocean ranching

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122 STAT. 2149

of Pacific salmon is prohibited by any law (including
regulations).
‘‘(B) AUTHORITY.—
‘‘(i) IN GENERAL.—As soon as practicable after the
date of enactment of the Food, Conservation, and
Energy Act of 2008, the Corporation shall offer to
enter into 3 or more contracts with qualified entities
to carry out research and development regarding a
policy to insure the production of aquacultural species
in aquaculture operations.
‘‘(ii) BIVALVE SPECIES.—At least 1 of the contracts
described in clause (i) shall address insurance of
bivalve species, including—
‘‘(I) American oysters (crassostrea virginica);
‘‘(II) hard clams (mercenaria mercenaria);
‘‘(III) Pacific oysters (crassostrea gigas);
‘‘(IV) Manila clams (tapes phillipinnarium); or
‘‘(V) blue mussels (mytilus edulis).
‘‘(iii) FRESHWATER SPECIES.—At least 1 of the contracts described in clause (i) shall address insurance
of freshwater species, including—
‘‘(I) catfish (icataluridae);
‘‘(II) rainbow trout (oncorhynchus mykiss);
‘‘(III)
largemouth
bass
(micropterus
salmoides);
‘‘(IV) striped bass (morone saxatilis);
‘‘(V) bream (abramis brama);
‘‘(VI) shrimp (penaeus); or
‘‘(VII) tilapia (oreochromis niloticus).
‘‘(iv) SALTWATER SPECIES.—At least 1 of the contracts described in clause (i) shall address insurance
of saltwater species, including—
‘‘(I) Atlantic salmon (salmo salar); or
‘‘(II) shrimp (penaeus).
‘‘(C) RESEARCH AND DEVELOPMENT.—Research and
development described in subparagraph (B) shall evaluate
the effectiveness of policies and plans of insurance for
the production of aquacultural species in aquaculture operations, including policies and plans of insurance that—
‘‘(i) are based on market prices and yields;
‘‘(ii) to the extent that insufficient data exist to
develop a policy based on market prices and yields,
evaluate how best to incorporate insuring of production
of aquacultural species in aquaculture operations into
existing policies covering adjusted gross revenue; and
‘‘(iii) provide protection for production or revenue
losses, or both.
‘‘(13) POULTRY INSURANCE POLICY.—
‘‘(A) DEFINITION OF POULTRY.—In this paragraph, the
term ‘poultry’ has the meaning given the term in section
2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C.
182(a)).
‘‘(B) AUTHORITY.—The Corporation shall offer to enter
into 1 or more contracts with qualified entities to carry
out research and development regarding a policy to insure
commercial poultry production.

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‘‘(C) RESEARCH AND DEVELOPMENT.—Research and
development described in subparagraph (B) shall evaluate
the effectiveness of risk management tools for the production of poultry, including policies and plans of insurance
that provide protection for production or revenue losses,
or both, while the poultry is in production.
‘‘(14) APIARY POLICIES.—The Corporation shall offer to enter
into a contract with a qualified entity to carry out research
and development regarding insurance policies that cover loss
of bees.
‘‘(15) ADJUSTED GROSS REVENUE POLICIES FOR BEGINNING
PRODUCERS.—The Corporation shall offer to enter into a contract with a qualified entity to carry out research and development into needed modifications of adjusted gross revenue insurance policies, consistent with principles of actuarial sufficiency,
to permit coverage for beginning producers with no previous
production history, including permitting those producers to
have production and premium rates based on information with
similar farming operations.
‘‘(16) SKIPROW CROPPING PRACTICES.—
‘‘(A) IN GENERAL.—The Corporation shall offer to enter
into a contract with a qualified entity to carry out research
into needed modifications of policies to insure corn and
sorghum produced in the Central Great Plains (as determined by the Agricultural Research Service) through use
of skiprow cropping practices.
‘‘(B) RESEARCH.—Research described in subparagraph
(A) shall—
‘‘(i) review existing research on skiprow cropping
practices and actual production history of producers
using skiprow cropping practices; and
‘‘(ii) evaluate the effectiveness of risk management
tools for producers using skiprow cropping practices,
including—
‘‘(I) the appropriateness of rules in existence
as of the date of enactment of this paragraph
relating to the determination of acreage planted
in skiprow patterns; and
‘‘(II) whether policies for crops produced
through skiprow cropping practices reflect actual
production capabilities.’’.

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SEC. 12024. FUNDING FROM INSURANCE FUND.

Section 522(e) of the Federal Crop Insurance Act (7 U.S.C.
1522(e)) is amended—
(1) in paragraph (1), by striking ‘‘$10,000,000’’ and all
that follows through the end of the paragraph and inserting
‘‘$7,500,000 for fiscal year 2008 and each subsequent fiscal
year’’;
(2) in paragraph (2)(A), by striking ‘‘$20,000,000 for’’ and
all that follows through ‘‘year 2004’’ and inserting ‘‘$12,500,000
for fiscal year 2008’’; and
(3) in paragraph (3), by striking ‘‘the Corporation may
use’’ and all that follows through the end of the paragraph
and inserting ‘‘the Corporation may use—
‘‘(A) not more than $5,000,000 for each fiscal year
to improve program integrity, including by—

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‘‘(i) increasing compliance-related training;
‘‘(ii) improving analysis tools and technology
regarding compliance;
‘‘(iii) use of information technology, as determined
by the Corporation; and
‘‘(iv) identifying and using innovative compliance
strategies; and
‘‘(B) any excess amounts to carry out other activities
authorized under this section.’’.

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SEC. 12025. PILOT PROGRAMS.

(a) IN GENERAL.—Section 523 of the Federal Crop Insurance
Act (7 U.S.C. 1523) is amended by adding at the end the following:
‘‘(f) CAMELINA PILOT PROGRAM.—
‘‘(1) IN GENERAL.—The Corporation shall establish a pilot
program under which producers or processors of camelina may
propose for approval by the Board policies or plans of insurance
for camelina, in accordance with section 508(h).
‘‘(2) DETERMINATION BY BOARD.—The Board shall approve
a policy or plan of insurance proposed under paragraph (1)
if, as determined by the Board, the policy or plan of insurance—
‘‘(A) protects the interests of producers;
‘‘(B) is actuarially sound; and
‘‘(C) meets the requirements of this title.
‘‘(3) TIMEFRAME.—The Corporation shall commence the
camelina insurance pilot program as soon as practicable after
the date of enactment of this subsection.
‘‘(g) SESAME INSURANCE PILOT PROGRAM.—
‘‘(1) IN GENERAL.—In addition to any other authority of
the Corporation, the Corporation shall establish and carry out
a pilot program under which a producer of nondehiscent sesame
under contract may elect to obtain multiperil crop insurance,
as determined by the Corporation.
‘‘(2) TERMS AND CONDITIONS.—The multiperil crop insurance offered under the sesame insurance pilot program shall—
‘‘(A) be offered through reinsurance arrangements with
private insurance companies;
‘‘(B) be actuarially sound; and
‘‘(C) require the payment of premiums and administrative fees by a producer obtaining the insurance.
‘‘(3) LOCATION.—The sesame insurance pilot program shall
be carried out only in the State of Texas.
‘‘(4) DURATION.—The Corporation shall commence the
sesame insurance pilot program as soon as practicable after
the date of the enactment of this subsection.
‘‘(h) GRASS SEED INSURANCE PILOT PROGRAM.—
‘‘(1) IN GENERAL.—In addition to any other authority of
the Corporation, the Corporation shall establish and carry out
a grass seed pilot program under which a producer of Kentucky
bluegrass or perennial rye grass under contract may elect to
obtain multiperil crop insurance, as determined by the Corporation.
‘‘(2) TERMS AND CONDITIONS.—The multiperil crop insurance offered under the grass seed insurance pilot program
shall—
‘‘(A) be offered through reinsurance arrangements with
private insurance companies;

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‘‘(B) be actuarially sound; and
‘‘(C) require the payment of premiums and administrative fees by a producer obtaining the insurance.
‘‘(3) LOCATION.—The grass seed insurance pilot program
shall be carried out only in each of the States of Minnesota
and North Dakota.
‘‘(4) DURATION.—The Corporation shall commence the grass
seed insurance pilot program as soon as practicable after the
date of the enactment of this subsection.’’.
(b) CONFORMING AMENDMENT.—Section 196(a)(2)(B) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333(a)(2)(B)) is amended by adding ‘‘camelina,’’ after ‘‘sea oats,’’.
SEC.

12026.

RISK MANAGEMENT EDUCATION
FARMERS OR RANCHERS.

FOR

BEGINNING

Section 524(a) of the Federal Crop Insurance Act (7 U.S.C.
1524(a)) is amended—
(1) in paragraph (1), by striking ‘‘paragraph (4)’’ and
inserting ‘‘paragraph (5)’’;
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
‘‘(4) REQUIREMENTS.—In carrying out the programs established under paragraphs (2) and (3), the Secretary shall place
special emphasis on risk management strategies, education,
and outreach specifically targeted at—
‘‘(A) beginning farmers or ranchers;
‘‘(B) legal immigrant farmers or ranchers that are
attempting to become established producers in the United
States;
‘‘(C) socially disadvantaged farmers or ranchers;
‘‘(D) farmers or ranchers that—
‘‘(i) are preparing to retire; and
‘‘(ii) are using transition strategies to help new
farmers or ranchers get started; and
‘‘(E) new or established farmers or ranchers that are
converting production and marketing systems to pursue
new markets.’’.
SEC. 12027. COVERAGE FOR AQUACULTURE UNDER NONINSURED
CROP ASSISTANCE PROGRAM.

Section 196(c)(2) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333(c)(2)) is amended—
(1) by striking ‘‘On making’’ and inserting the following:
‘‘(A) IN GENERAL.—On making’’; and
(2) by adding at the end the following:
‘‘(B) AQUACULTURE PRODUCERS.—On making a determination described in subsection (a)(3) for aquaculture producers, the Secretary shall provide assistance under this
section to aquaculture producers from all losses related
to drought.’’.

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SEC. 12028. INCREASE IN SERVICE FEES FOR NONINSURED CROP
ASSISTANCE PROGRAM.

Section 196(k)(1) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘$100’’ and inserting
‘‘$250’’; and
(2) in subparagraph (B)—

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122 STAT. 2153

(A) by striking ‘‘$300’’ and inserting ‘‘$750’’; and
(B) by striking ‘‘$900’’ and inserting ‘‘$1,875’’.
SEC. 12029. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.

Section 9001(d) of the U.S. Troop Readiness, Veterans’ Care,
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
(Public Law 110–28; 121 Stat. 211) is amended—
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
‘‘(8) SWEET POTATOES.—
‘‘(A) DATA.—In the case of sweet potatoes, any data
obtained under a pilot program carried out by the Risk
Management Agency shall not be considered for the purpose of determining the quantity of production under the
crop disaster assistance program established under this
section.
‘‘(B) EXTENSION OF DEADLINE.—If this paragraph is
not implemented before the sign-up deadline for the crop
disaster assistance program established under this section,
the Secretary shall extend the deadline for producers of
sweet potatoes to permit sign-up for the program in accordance with this paragraph.’’.
SEC. 12030. DECLINING YIELD REPORT.

Not later than 180 days after the date of enactment of this
Act, the Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report containing details
about activities and administrative options of the Federal Crop
Insurance Corporation and Risk Management Agency that address
issues relating to—
(1) declining yields on the actual production histories of
producers; and
(2) declining and variable yields for perennial crops,
including pecans.
SEC. 12031. DEFINITION OF BASIC UNIT.

The Secretary shall not modify the definition of ‘‘basic unit’’
in accordance with the proposed regulations entitled ‘‘Common Crop
Insurance Regulations’’ (72 Fed. Reg. 28895; relating to common
crop insurance regulations) or any successor regulation.

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SEC. 12032. CROP INSURANCE MEDIATION.

Section 275 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6995) is amended—
(1) by striking ‘‘If an officer’’ and inserting the following:
‘‘(a) IN GENERAL.—If an officer’’;
(2) by striking ‘‘With respect to’’ and inserting the following:
‘‘(b) FARM SERVICE AGENCY.—With respect to’’;
(3) by striking ‘‘If a mediation’’; and inserting the following:
‘‘(c) MEDIATION.—If a mediation’’; and
(4) in subsection (c) (as so designated)—
(A) by striking ‘‘participant shall be offered’’ and
inserting ‘‘participant shall—
‘‘(1) be offered’’; and
(B) by striking the period at the end and inserting
the following: ‘‘; and

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‘‘(2) to the maximum extent practicable, be allowed to use
both informal agency review and mediation to resolve disputes
under that title.’’.

SEC. 12033. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

(a) IN GENERAL.—The Federal Crop Insurance Act (7 U.S.C.
1501 et seq.) is amended by adding at the end the following:

‘‘Subtitle B—Supplemental Agricultural
Disaster Assistance

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7 USC 1531.

‘‘SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ACTUAL PRODUCTION HISTORY YIELD.—The term ‘actual
production history yield’ means the weighted average of the
actual production history for each insurable commodity or noninsurable commodity, as calculated under subtitle A or the
noninsured crop disaster assistance program, respectively.
‘‘(2) ADJUSTED ACTUAL PRODUCTION HISTORY YIELD.—The
term ‘adjusted actual production history yield’ means—
‘‘(A) in the case of an eligible producer on a farm
that has at least 4 years of actual production history yields
for an insurable commodity that are established other than
pursuant to section 508(g)(4)(B), the actual production history for the eligible producer without regard to any yields
established under that section;
‘‘(B) in the case of an eligible producer on a farm
that has less than 4 years of actual production history
yields for an insurable commodity, of which 1 or more
were established pursuant to section 508(g)(4)(B), the
actual production history for the eligible producer as calculated without including the lowest of the yields established pursuant to section 508(g)(4)(B); and
‘‘(C) in all other cases, the actual production history
of the eligible producer on a farm.
‘‘(3) ADJUSTED NONINSURED CROP DISASTER ASSISTANCE PROGRAM YIELD.—The term ‘adjusted noninsured crop disaster
assistance program yield’ means—
‘‘(A) in the case of an eligible producer on a farm
that has at least 4 years of production history under the
noninsured crop disaster assistance program that are not
replacement yields, the noninsured crop disaster assistance
program yield without regard to any replacement yields;
‘‘(B) in the case of an eligible producer on a farm
that less than 4 years of production history under the
noninsured crop disaster assistance program that are not
replacement yields, the noninsured crop disaster assistance
program yield as calculated without including the lowest
of the replacement yields; and
‘‘(C) in all other cases, the production history of the
eligible producer on the farm under the noninsured crop
disaster assistance program.
‘‘(4) COUNTER-CYCLICAL PROGRAM PAYMENT YIELD.—The
term ‘counter-cyclical program payment yield’ means the
weighted average payment yield established under section 1102
of the Farm Security and Rural Investment Act of 2002 (7

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122 STAT. 2155

U.S.C. 7912), section 1102 of the Food, Conservation, and
Energy Act of 2008, or a successor section.
‘‘(5) DISASTER COUNTY.—
‘‘(A) IN GENERAL.—The term ‘disaster county’ means
a county included in the geographic area covered by a
qualifying natural disaster declaration.
‘‘(B) INCLUSION.—The term ‘disaster county’ includes—
‘‘(i) a county contiguous to a county described in
subparagraph (A); and
‘‘(ii) any farm in which, during a calendar year,
the total loss of production of the farm relating to
weather is greater than 50 percent of the normal
production of the farm, as determined by the Secretary.
‘‘(6) ELIGIBLE PRODUCER ON A FARM.—
‘‘(A) IN GENERAL.—The term ‘eligible producer on a
farm’ means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes
the production and market risks associated with the agricultural production of crops or livestock.
‘‘(B) DESCRIPTION.—An individual or entity referred
to in subparagraph (A) is—
‘‘(i) a citizen of the United States;
‘‘(ii) a resident alien;
‘‘(iii) a partnership of citizens of the United States;
or
‘‘(iv) a corporation, limited liability corporation, or
other farm organizational structure organized under
State law.
‘‘(7) FARM.—
‘‘(A) IN GENERAL.—The term ‘farm’ means, in relation
to an eligible producer on a farm, the sum of all crop
acreage in all counties that is planted or intended to be
planted for harvest by the eligible producer.
‘‘(B) AQUACULTURE.—In the case of aquaculture, the
term ‘farm’ means, in relation to an eligible producer on
a farm, all fish being produced in all counties that are
intended to be harvested for sale by the eligible producer.
‘‘(C) HONEY.—In the case of honey, the term ‘farm’
means, in relation to an eligible producer on a farm, all
bees and beehives in all counties that are intended to
be harvested for a honey crop by the eligible producer.
‘‘(8) FARM-RAISED FISH.—The term ‘farm-raised fish’ means
any aquatic species that is propagated and reared in a controlled environment.
‘‘(9) INSURABLE COMMODITY.—The term ‘insurable commodity’ means an agricultural commodity (excluding livestock)
for which the producer on a farm is eligible to obtain a policy
or plan of insurance under subtitle A.
‘‘(10) LIVESTOCK.—The term ‘livestock’ includes—
‘‘(A) cattle (including dairy cattle);
‘‘(B) bison;
‘‘(C) poultry;
‘‘(D) sheep;
‘‘(E) swine;
‘‘(F) horses; and
‘‘(G) other livestock, as determined by the Secretary.

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‘‘(11) NONINSURABLE COMMODITY.—The term ‘noninsurable
commodity’ means a crop for which the eligible producers on
a farm are eligible to obtain assistance under the noninsured
crop assistance program.
‘‘(12) NONINSURED CROP ASSISTANCE PROGRAM.—The term
‘noninsured crop assistance program’ means the program carried out under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
‘‘(13) QUALIFYING NATURAL DISASTER DECLARATION.—The
term ‘qualifying natural disaster declaration’ means a natural
disaster declared by the Secretary for production losses under
section 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1961(a)).
‘‘(14) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture.
‘‘(15) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The
term ‘socially disadvantaged farmer or rancher’ has the
meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
‘‘(16) STATE.—The term ‘State’ means—
‘‘(A) a State;
‘‘(B) the District of Columbia;
‘‘(C) the Commonwealth of Puerto Rico; and
‘‘(D) any other territory or possession of the United
States.
‘‘(17) TRUST FUND.—The term ‘Trust Fund’ means the Agricultural Disaster Relief Trust Fund established under section
902 of the Trade Act of 1974.
‘‘(18) UNITED STATES.—The term ‘United States’ when used
in a geographical sense, means all of the States.
‘‘(b) SUPPLEMENTAL REVENUE ASSISTANCE PAYMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall use such sums as
are necessary from the Trust Fund to make crop disaster assistance payments to eligible producers on farms in disaster counties that have incurred crop production losses or crop quality
losses, or both, during the crop year.
‘‘(2) AMOUNT.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary shall provide crop disaster assistance payments
under this section to an eligible producer on a farm in
an amount equal to 60 percent of the difference between—
‘‘(i) the disaster assistance program guarantee, as
described in paragraph (3); and
‘‘(ii) the total farm revenue for a farm, as described
in paragraph (4).
‘‘(B) LIMITATION.—The disaster assistance program
guarantee for a crop used to calculate the payments for
a farm under subparagraph (A)(i) may not be greater than
90 percent of the sum of the expected revenue, as described
in paragraph (5) for each of the crops on a farm, as determined by the Secretary.
‘‘(3) SUPPLEMENTAL REVENUE ASSISTANCE PROGRAM GUARANTEE.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
this paragraph, the supplemental assistance program guarantee shall be the sum obtained by adding—

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122 STAT. 2157

‘‘(i) for each insurable commodity on the farm,
115 percent of the product obtained by multiplying—
‘‘(I) a payment rate for the commodity that
is equal to the price election for the commodity
elected by the eligible producer;
‘‘(II) the payment acres for the commodity that
is equal to the number of acres planted, or prevented from being planted, to the commodity;
‘‘(III) the payment yield for the commodity
that is equal to the percentage of the crop insurance yield elected by the producer of the higher
of—
‘‘(aa) the adjusted actual production history yield; or
‘‘(bb) the counter-cyclical program payment yield for each crop; and
‘‘(ii) for each noninsurable commodity on a farm,
120 percent of the product obtained by multiplying—
‘‘(I) a payment rate for the commodity that
is equal to 100 percent of the noninsured crop
assistance program established price for the commodity;
‘‘(II) the payment acres for the commodity that
is equal to the number of acres planted, or prevented from being planted, to the commodity; and
‘‘(III) the payment yield for the commodity
that is equal to the higher of—
‘‘(aa) the adjusted noninsured crop assistance program yield guarantee; or
‘‘(bb) the counter-cyclical program payment yield for each crop.
‘‘(B) ADJUSTMENT INSURANCE GUARANTEE.—Notwithstanding subparagraph (A), in the case of an insurable
commodity for which a plan of insurance provides for an
adjustment in the guarantee, such as in the case of prevented planting, the adjusted insurance guarantee shall
be the basis for determining the disaster assistance program guarantee for the insurable commodity.
‘‘(C) ADJUSTED ASSISTANCE LEVEL.—Notwithstanding
subparagraph (A), in the case of a noninsurable commodity
for which the noninsured crop assistance program provides
for an adjustment in the level of assistance, such as in
the case of unharvested crops, the adjusted assistance level
shall be the basis for determining the disaster assistance
program guarantee for the noninsurable commodity.
‘‘(D) EQUITABLE TREATMENT FOR NON-YIELD BASED POLICIES.—The Secretary shall establish equitable treatment
for non-yield based policies and plans of insurance, such
as the Adjusted Gross Revenue Lite insurance program.
‘‘(4) FARM REVENUE.—
‘‘(A) IN GENERAL.—For purposes of this subsection, the
total farm revenue for a farm, shall equal the sum obtained
by adding—
‘‘(i) the estimated actual value for each crop produced on a farm by using the product obtained by
multiplying—

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(I) the actual crop acreage harvested by an
eligible producer on a farm;
‘‘(II) the estimated actual yield of the crop
production; and
‘‘(III) subject to subparagraphs (B) and (C),
to the extent practicable, the national average
market price received for the marketing year, as
determined by the Secretary;
‘‘(ii) 15 percent of amount of any direct payments
made to the producer under sections 1103 and 1303
of the Food, Conservation, and Energy Act of 2008
or successor sections;
‘‘(iii) the total amount of any counter-cyclical payments made to the producer under sections 1104 and
1304 of the Food, Conservation, and Energy Act of
2008 or successor sections or of any average crop revenue election payments made to the producer under
section 1105 of that Act;
‘‘(iv) the total amount of any loan deficiency payments, marketing loan gains, and marketing certificate
gains made to the producer under subtitles B and
C of the Food, Conservation, and Energy Act of 2008
or successor subtitles;
‘‘(v) the amount of payments for prevented planting
on a farm;
‘‘(vi) the amount of crop insurance indemnities
received by an eligible producer on a farm for each
crop on a farm;
‘‘(vii) the amount of payments an eligible producer
on a farm received under the noninsured crop assistance program for each crop on a farm; and
‘‘(viii) the value of any other natural disaster
assistance payments provided by the Federal Government to an eligible producer on a farm for each crop
on a farm for the same loss for which the eligible
producer is seeking assistance.
‘‘(B) ADJUSTMENT.—The Secretary shall adjust the
average market price received by the eligible producer on
a farm—
‘‘(i) to reflect the average quality discounts applied
to the local or regional market price of a crop or
mechanically harvested forage due to a reduction in
the intrinsic characteristics of the production resulting
from adverse weather, as determined annually by the
State office of the Farm Service Agency; and
‘‘(ii) to account for a crop the value of which is
reduced due to excess moisture resulting from a disaster-related condition.
‘‘(C) MAXIMUM AMOUNT FOR CERTAIN CROPS.—With
respect to a crop for which an eligible producer on a farm
receives assistance under the noninsured crop assistance
program, the national average market price received during
the marketing year shall be an amount not more than
100 percent of the price of the crop established under
the noninsured crop assistance program.
‘‘(5) EXPECTED REVENUE.—The expected revenue for each
crop on a farm shall equal the sum obtained by adding—

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122 STAT. 2159

‘‘(A) the product obtained by multiplying—
‘‘(i) the greatest of—
‘‘(I) the adjusted actual production history
yield of the eligible producer on a farm; and
‘‘(II) the counter-cyclical program payment
yield;
‘‘(ii) the acreage planted or prevented from being
planted for each crop; and
‘‘(iii) 100 percent of the insurance price guarantee;
and
‘‘(B) the product obtained by multiplying—
‘‘(i) 100 percent of the adjusted noninsured crop
assistance program yield; and
‘‘(ii) 100 percent of the noninsured crop assistance
program price for each of the crops on a farm.
‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.—
‘‘(1) PAYMENTS.—The Secretary shall use such sums as
are necessary from the Trust Fund to make livestock indemnity
payments to eligible producers on farms that have incurred
livestock death losses in excess of the normal mortality due
to adverse weather, as determined by the Secretary, during
the calendar year, including losses due to hurricanes, floods,
blizzards, disease, wildfires, extreme heat, and extreme cold.
‘‘(2) PAYMENT RATES.—Indemnity payments to an eligible
producer on a farm under paragraph (1) shall be made at
a rate of 75 percent of the market value of the applicable
livestock on the day before the date of death of the livestock,
as determined by the Secretary.
‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) COVERED LIVESTOCK.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), the term ‘covered livestock’ means livestock of an
eligible livestock producer that, during the 60 days
prior to the beginning date of a qualifying drought
or fire condition, as determined by the Secretary, the
eligible livestock producer—
‘‘(I) owned;
‘‘(II) leased;
‘‘(III) purchased;
‘‘(IV) entered into a contract to purchase;
‘‘(V) is a contract grower; or
‘‘(VI) sold or otherwise disposed of due to qualifying drought conditions during—
‘‘(aa) the current production year; or
‘‘(bb) subject to paragraph (3)(B)(ii), 1 or
both of the 2 production years immediately
preceding the current production year.
‘‘(ii) EXCLUSION.—The term ‘covered livestock’ does
not include livestock that were or would have been
in a feedlot, on the beginning date of the qualifying
drought or fire condition, as a part of the normal
business operation of the eligible livestock producer,
as determined by the Secretary.
‘‘(B) DROUGHT MONITOR.—The term ‘drought monitor’
means a system for classifying drought severity according

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to a range of abnormally dry to exceptional drought, as
defined by the Secretary.
‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.—
‘‘(i) IN GENERAL.—The term ‘eligible livestock producer’ means an eligible producer on a farm that—
‘‘(I) is an owner, cash or share lessee, or contract grower of covered livestock that provides the
pastureland or grazing land, including cash-leased
pastureland or grazing land, for the livestock;
‘‘(II) provides the pastureland or grazing land
for covered livestock, including cash-leased
pastureland or grazing land that is physically
located in a county affected by drought;
‘‘(III) certifies grazing loss; and
‘‘(IV) meets all other eligibility requirements
established under this subsection.
‘‘(ii) EXCLUSION.—The term ‘eligible livestock producer’ does not include an owner, cash or share lessee,
or contract grower of livestock that rents or leases
pastureland or grazing land owned by another person
on a rate-of-gain basis.
‘‘(D) NORMAL CARRYING CAPACITY.—The term ‘normal
carrying capacity’, with respect to each type of grazing
land or pastureland in a county, means the normal carrying
capacity, as determined under paragraph (3)(D)(i), that
would be expected from the grazing land or pastureland
for livestock during the normal grazing period, in the
absence of a drought or fire that diminishes the production
of the grazing land or pastureland.
‘‘(E) NORMAL GRAZING PERIOD.—The term ‘normal
grazing period’, with respect to a county, means the normal
grazing period during the calendar year for the county,
as determined under paragraph (3)(D)(i).
‘‘(2) PROGRAM.—The Secretary shall use such sums as are
necessary from the Trust Fund to provide compensation for
losses to eligible livestock producers due to grazing losses for
covered livestock due to—
‘‘(A) a drought condition, as described in paragraph
(3); or
‘‘(B) fire, as described in paragraph (4).
‘‘(3) ASSISTANCE FOR LOSSES DUE TO DROUGHT CONDITIONS.—
‘‘(A) ELIGIBLE LOSSES.—
‘‘(i) IN GENERAL.—An eligible livestock producer
may receive assistance under this subsection only for
grazing losses for covered livestock that occur on land
that—
‘‘(I) is native or improved pastureland with
permanent vegetative cover; or
‘‘(II) is planted to a crop planted specifically
for the purpose of providing grazing for covered
livestock.
‘‘(ii) EXCLUSIONS.—An eligible livestock producer
may not receive assistance under this subsection for
grazing losses that occur on land used for haying or
grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle

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D of title XII of the Food Security Act of 1985 (16
U.S.C. 3831 et seq.).
‘‘(B) MONTHLY PAYMENT RATE.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), the payment rate for assistance under this paragraph for 1 month shall, in the case of drought, be
equal to 60 percent of the lesser of—
‘‘(I) the monthly feed cost for all covered livestock owned or leased by the eligible livestock
producer, as determined under subparagraph (C);
or
‘‘(II) the monthly feed cost calculated by using
the normal carrying capacity of the eligible grazing
land of the eligible livestock producer.
‘‘(ii) PARTIAL COMPENSATION.—In the case of an
eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions
in 1 or both of the 2 production years immediately
preceding the current production year, as determined
by the Secretary, the payment rate shall be 80 percent
of the payment rate otherwise calculated in accordance
with clause (i).
‘‘(C) MONTHLY FEED COST.—
‘‘(i) IN GENERAL.—The monthly feed cost shall
equal the product obtained by multiplying—
‘‘(I) 30 days;
‘‘(II) a payment quantity that is equal to the
feed grain equivalent, as determined under clause
(ii); and
‘‘(III) a payment rate that is equal to the corn
price per pound, as determined under clause (iii).
‘‘(ii) FEED GRAIN EQUIVALENT.—For purposes of
clause (i)(I), the feed grain equivalent shall equal—
‘‘(I) in the case of an adult beef cow, 15.7
pounds of corn per day; or
‘‘(II) in the case of any other type of weight
of livestock, an amount determined by the Secretary that represents the average number of
pounds of corn per day necessary to feed the livestock.
‘‘(iii) CORN PRICE PER POUND.—For purposes of
clause (i)(II), the corn price per pound shall equal
the quotient obtained by dividing—
‘‘(I) the higher of—
‘‘(aa) the national average corn price per
bushel for the 12-month period immediately
preceding March 1 of the year for which the
disaster assistance is calculated; or
‘‘(bb) the national average corn price per
bushel for the 24-month period immediately
preceding that March 1; by
‘‘(II) 56.
‘‘(D) NORMAL GRAZING PERIOD AND DROUGHT MONITOR
INTENSITY.—
‘‘(i) FSA COUNTY COMMITTEE DETERMINATIONS.—
‘‘(I) IN GENERAL.—The Secretary shall determine the normal carrying capacity and normal

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PUBLIC LAW 110–246—JUNE 18, 2008
grazing period for each type of grazing land or
pastureland in the county served by the applicable
committee.
‘‘(II) CHANGES.—No change to the normal carrying capacity or normal grazing period established
for a county under subclause (I) shall be made
unless the change is requested by the appropriate
State and county Farm Service Agency committees.
‘‘(ii) DROUGHT INTENSITY.—
‘‘(I) D2.—An eligible livestock producer that
owns or leases grazing land or pastureland that
is physically located in a county that is rated by
the U.S. Drought Monitor as having a D2 (severe
drought) intensity in any area of the county for
at least 8 consecutive weeks during the normal
grazing period for the county, as determined by
the Secretary, shall be eligible to receive assistance
under this paragraph in an amount equal to 1
monthly payment using the monthly payment rate
determined under subparagraph (B).
‘‘(II) D3.—An eligible livestock producer that
owns or leases grazing land or pastureland that
is physically located in a county that is rated by
the U.S. Drought Monitor as having at least a
D3 (extreme drought) intensity in any area of the
county at any time during the normal grazing
period for the county, as determined by the Secretary, shall be eligible to receive assistance under
this paragraph—
‘‘(aa) in an amount equal to 2 monthly
payments using the monthly payment rate
determined under subparagraph (B); or
‘‘(bb) if the county is rated as having a
D3 (extreme drought) intensity in any area
of the county for at least 4 weeks during the
normal grazing period for the county, or is
rated as having a D4 (exceptional drought)
intensity in any area of the county at any
time during the normal grazing period, in an
amount equal to 3 monthly payments using
the monthly payment rate determined under
subparagraph (B).
‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON PUBLIC MANAGED LAND.—
‘‘(A) IN GENERAL.—An eligible livestock producer may
receive assistance under this paragraph only if—
‘‘(i) the grazing losses occur on rangeland that
is managed by a Federal agency; and
‘‘(ii) the eligible livestock producer is prohibited
by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to
a fire.
‘‘(B) PAYMENT RATE.—The payment rate for assistance
under this paragraph shall be equal to 50 percent of the
monthly feed cost for the total number of livestock covered
by the Federal lease of the eligible livestock producer,
as determined under paragraph (3)(C).

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122 STAT. 2163

‘‘(C) PAYMENT DURATION.—
‘‘(i) IN GENERAL.—Subject to clause (ii), an eligible
livestock producer shall be eligible to receive assistance
under this paragraph for the period—
‘‘(I) beginning on the date on which the Federal agency excludes the eligible livestock producer
from using the managed rangeland for grazing;
and
‘‘(II) ending on the last day of the Federal
lease of the eligible livestock producer.
‘‘(ii) LIMITATION.—An eligible livestock producer
may only receive assistance under this paragraph for
losses that occur on not more than 180 days per year.
‘‘(5) MINIMUM RISK MANAGEMENT PURCHASE REQUIREMENTS.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
this paragraph, a livestock producer shall only be eligible
for assistance under this subsection if the livestock producer—
‘‘(i) obtained a policy or plan of insurance under
subtitle A for the grazing land incurring the losses
for which assistance is being requested; or
‘‘(ii) filed the required paperwork, and paid the
administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for
the grazing land incurring the losses for which assistance is being requested.
‘‘(B) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED
RESOURCE, OR BEGINNING FARMER OR RANCHER.—In the
case of an eligible livestock producer that is a socially
disadvantaged farmer or rancher or limited resource or
beginning farmer or rancher, as determined by the Secretary, the Secretary may—
‘‘(i) waive subparagraph (A); and
‘‘(ii) provide disaster assistance under this section
at a level that the Secretary determines to be equitable
and appropriate.
‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.—In the case
of an eligible livestock producer that suffered losses on
grazing land during the 2008 calendar year but does not
meet the requirements of subparagraph (A), the Secretary
shall waive subparagraph (A) if the eligible livestock producer pays a fee in an amount equal to the applicable
noninsured crop assistance program fee or catastrophic
risk protection plan fee required under subparagraph (A)
to the Secretary not later than 90 days after the date
of enactment of this subtitle.
‘‘(D) EQUITABLE RELIEF.—
‘‘(i) IN GENERAL.—The Secretary may provide equitable relief to an eligible livestock producer that is
otherwise ineligible or unintentionally fails to meet
the requirements of subparagraph (A) for the grazing
land incurring the loss on a case-by-case basis, as
determined by the Secretary.
‘‘(ii) 2008 CALENDAR YEAR.—In the case of an
eligible livestock producer that suffered losses on

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grazing land during the 2008 calendar year, the Secretary shall take special consideration to provide equitable relief in cases in which the eligible livestock
producer failed to meet the requirements of subparagraph (A) due to the enactment of this subtitle after
the closing date of sales periods for crop insurance
under subtitle A and the noninsured crop assistance
program.
‘‘(6) NO DUPLICATIVE PAYMENTS.—
‘‘(A) IN GENERAL.—An eligible livestock producer may
elect to receive assistance for grazing or pasture feed losses
due to drought conditions under paragraph (3) or fire under
paragraph (4), but not both for the same loss, as determined
by the Secretary.
‘‘(B) RELATIONSHIP TO SUPPLEMENTAL REVENUE ASSISTANCE.—An eligible livestock producer that receives assistance under this subsection may not also receive assistance
for losses to crops on the same land with the same intended
use under subsection (b).
‘‘(e) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND
FARM-RAISED FISH.—
‘‘(1) IN GENERAL.—The Secretary shall use up to
$50,000,000 per year from the Trust Fund to provide emergency
relief to eligible producers of livestock, honey bees, and farmraised fish to aid in the reduction of losses due to disease,
adverse weather, or other conditions, such as blizzards and
wildfires, as determined by the Secretary, that are not covered
under subsection (b), (c), or (d).
‘‘(2) USE OF FUNDS.—Funds made available under this subsection shall be used to reduce losses caused by feed or water
shortages, disease, or other factors as determined by the Secretary.
‘‘(3) AVAILABILITY OF FUNDS.—Any funds made available
under this subsection shall remain available until expended.
‘‘(f) TREE ASSISTANCE PROGRAM.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) ELIGIBLE ORCHARDIST.—The term ‘eligible
orchardist’ means a person that produces annual crops
from trees for commercial purposes.
‘‘(B) NATURAL DISASTER.—The term ‘natural disaster’
means plant disease, insect infestation, drought, fire,
freeze, flood, earthquake, lightning, or other occurrence,
as determined by the Secretary.
‘‘(C) NURSERY TREE GROWER.—The term ‘nursery tree
grower’ means a person who produces nursery, ornamental,
fruit, nut, or Christmas trees for commercial sale, as determined by the Secretary.
‘‘(D) TREE.—The term ‘tree’ includes a tree, bush, and
vine.
‘‘(2) ELIGIBILITY.—
‘‘(A) LOSS.—Subject to subparagraph (B), the Secretary
shall provide assistance—
‘‘(i) under paragraph (3) to eligible orchardists and
nursery tree growers that planted trees for commercial
purposes but lost the trees as a result of a natural
disaster, as determined by the Secretary; and

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122 STAT. 2165

‘‘(ii) under paragraph (3)(B) to eligible orchardists
and nursery tree growers that have a production history for commercial purposes on planted or existing
trees but lost the trees as a result of a natural disaster,
as determined by the Secretary.
‘‘(B) LIMITATION.—An eligible orchardist or nursery
tree grower shall qualify for assistance under subparagraph
(A) only if the tree mortality of the eligible orchardist
or nursery tree grower, as a result of damaging weather
or related condition, exceeds 15 percent (adjusted for
normal mortality).
‘‘(3) ASSISTANCE.—Subject to paragraph (4), the assistance
provided by the Secretary to eligible orchardists and nursery
tree growers for losses described in paragraph (2) shall consist
of—
‘‘(A)(i) reimbursement of 70 percent of the cost of
replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality
(adjusted for normal mortality); or
‘‘(ii) at the option of the Secretary, sufficient seedlings
to reestablish a stand; and
‘‘(B) reimbursement of 50 percent of the cost of pruning,
removal, and other costs incurred by an eligible orchardist
or nursery tree grower to salvage existing trees or, in
the case of tree mortality, to prepare the land to replant
trees as a result of damage or tree mortality due to a
natural disaster, as determined by the Secretary, in excess
of 15 percent damage or mortality (adjusted for normal
tree damage and mortality).
‘‘(4) LIMITATIONS ON ASSISTANCE.—
‘‘(A) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In
this paragraph, the terms ‘legal entity’ and ‘person’ have
the meaning given those terms in section 1001(a) of the
Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended
by section 1603 of the Food, Conservation, and Energy
Act of 2008).
‘‘(B) AMOUNT.—The total amount of payments received,
directly or indirectly, by a person or legal entity (excluding
a joint venture or general partnership) under this subsection may not exceed $100,000 for any crop year, or
an equivalent value in tree seedlings.
‘‘(C) ACRES.—The total quantity of acres planted to
trees or tree seedlings for which a person or legal entity
shall be entitled to receive payments under this subsection
may not exceed 500 acres.
‘‘(g) RISK MANAGEMENT PURCHASE REQUIREMENT.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
section, the eligible producers on a farm shall not be eligible
for assistance under this section (other than subsection (c))
if the eligible producers on the farm—
‘‘(A) in the case of each insurable commodity of the
eligible producers on the farm, did not obtain a policy
or plan of insurance under subtitle A (excluding a crop
insurance pilot program under that subtitle); or
‘‘(B) in the case of each noninsurable commodity of
the eligible producers on the farm, did not file the required
paperwork, and pay the administrative fee by the

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Applicability.

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PUBLIC LAW 110–246—JUNE 18, 2008
applicable State filing deadline, for the noninsured crop
assistance program.
‘‘(2) MINIMUM.—To be considered to have obtained insurance under paragraph (1)(A), an eligible producer on a farm
shall have obtained a policy or plan of insurance with not
less than 50 percent yield coverage at 55 percent of the insurable price for each crop grazed, planted, or intended to be
planted for harvest on a whole farm.
‘‘(3) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED
RESOURCE, OR BEGINNING FARMER OR RANCHER.—With respect
to eligible producers that are socially disadvantaged farmers
or ranchers or limited resource or beginning farmers or
ranchers, as determined by the Secretary, the Secretary may—
‘‘(A) waive paragraph (1); and
‘‘(B) provide disaster assistance under this section at
a level that the Secretary determines to be equitable and
appropriate.
‘‘(4) WAIVER FOR 2008 CROP YEAR.—In the case of an eligible
producer that suffered losses in an insurable commodity or
noninsurable commodity during the 2008 crop year but does
not meet the requirements of paragraph (1), the Secretary
shall waive paragraph (1) if the eligible producer pays a fee
in an amount equal to the applicable noninsured crop assistance
program fee or catastrophic risk protection plan fee required
under paragraph (1) to the Secretary not later than 90 days
after the date of enactment of this subtitle.
‘‘(5) EQUITABLE RELIEF.—
‘‘(A) IN GENERAL.—The Secretary may provide equitable relief to eligible producers on a farm that are otherwise ineligible or unintentionally fail to meet the requirements of paragraph (1) for 1 or more crops on a farm
on a case-by-case basis, as determined by the Secretary.
‘‘(B) 2008 CROP YEAR.—In the case of eligible producers
on a farm that suffered losses in an insurable commodity
or noninsurable commodity during the 2008 crop year, the
Secretary shall take special consideration to provide equitable relief in cases in which the eligible producers failed
to meet the requirements of paragraph (1) due to the
enactment of this subtitle after the closing date of sales
periods for crop insurance under subtitle A and the noninsured crop assistance program.
‘‘(h) PAYMENT LIMITATIONS.—
‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In this
subsection, the terms ‘legal entity’ and ‘person’ have the
meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section
1603 of the Food, Conservation, and Energy Act of 2008).
‘‘(2) AMOUNT.—The total amount of disaster assistance payments received, directly or indirectly, by a person or legal
entity (excluding a joint venture or general partnership) under
this section (excluding payments received under subsection (f))
may not exceed $100,000 for any crop year.
‘‘(3) AGI LIMITATION.—Section 1001D of the Food Security
Act of 1985 (7 U.S.C. 1308–3a) or any successor provision
shall apply with respect to assistance provided under this section.

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122 STAT. 2167

‘‘(4) DIRECT ATTRIBUTION.—Subsections (e) and (f) of section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or
any successor provisions relating to direct attribution shall
apply with respect to assistance provided under this section.
‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall be effective
only for losses that are incurred as the result of a disaster, adverse
weather, or other environmental condition that occurs on or before
September 30, 2011, as determined by the Secretary.
‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing any other
program which makes disaster assistance payments (except for
indemnities made under subtitle A and section 196 of the Federal
Agriculture Improvement and Reform Act of 1996), the Secretary
shall prevent duplicative payments with respect to the same loss
for which a person receives a payment under subsections (b), (c),
(d), (e), or (f).
‘‘(k) APPLICATION.—
‘‘(1) IN GENERAL.—Subject to paragraph (2) and notwithstanding any provision of subtitle A, subtitle A shall not apply
to this subtitle.
‘‘(2) CROSS REFERENCES.—Paragraph (1) shall not apply
to a specific reference in this subtitle to a provision of subtitle
A.’’.
(b) TRANSITION.—For purposes of the 2008 crop year, the Secretary shall carry out subsections (f)(4) and (h) of section 531
of the Federal Crop Insurance Act (as added by subsection (a))
in accordance with the terms and conditions of sections 1001
through 1001D of the Food Security Act of 1985 (16 U.S.C. 1308
et seq.), as in effect on September 30, 2007.
(c) CONFORMING AMENDMENTS.—
(1) Section 501 of the Federal Crop Insurance Act (7 U.S.C.
1501) is amended by striking the section heading and enumerator and inserting the following:

Applicability.

‘‘Subtitle A—Federal Crop Insurance Act
‘‘SEC. 501. SHORT TITLE AND APPLICATION OF OTHER PROVISIONS.’’.

(2) Subtitle A of the Federal Crop Insurance Act (as designated under paragraph (1)) is amended—
(A) by striking ‘‘This title’’ each place it appears and
inserting ‘‘This subtitle’’; and
(B) by striking ‘‘this title’’ each place it appears and
inserting ‘‘this subtitle’’.

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SEC. 12034. FISHERIES DISASTER ASSISTANCE.

Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall transfer to the Secretary of Commerce
$170,000,000 for fiscal year 2008 for the National Marine Fisheries
Service to distribute to commercial and recreational members of
the fishing communities affected by the salmon fishery failure in
the States of California, Oregon, and Washington designated under
section 312(a) of the Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1861a(a)) on May 1, 2008, in accordance
with that section.

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7 USC 1501,
1515.
7 USC 1501–
1503, 1505–1510,
1514, 1515, 1517,
1518, 1520–1523.
State listing.

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122 STAT. 2168
Small Business
Disaster
Response
and Loan
Improvements
Act of 2008.
15 USC 631 note.

15 USC 636e.

PUBLIC LAW 110–246—JUNE 18, 2008

Subtitle B—Small Business Disaster Loan
Program
SEC. 12051. SHORT TITLE.

This subtitle may be cited as the ‘‘Small Business Disaster
Response and Loan Improvements Act of 2008’’.
SEC. 12052. DEFINITIONS.

In this subtitle—
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ‘‘disaster area’’ means an area affected by
a natural or other disaster, as determined for purposes of
paragraph (1) or (2) of section 7(b) of the Small Business
Act (15 U.S.C. 636(b)), during the period of such declaration;
(3) the term ‘‘disaster loan program of the Administration’’
means assistance under section 7(b) of the Small Business
Act (15 U.S.C. 636(b)), as amended by this Act;
(4) the term ‘‘disaster update period’’ means the period
beginning on the date on which the President declares a major
disaster (including any major disaster relating to which the
Administrator declares eligibility for additional disaster assistance under paragraph (9) of section 7(b) of the Small Business
Act (15 U.S.C. 636(b)), as added by this Act) and ending on
the date on which such declaration terminates;
(5) the term ‘‘major disaster’’ has the meaning given that
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122);
(6) the term ‘‘small business concern’’ has the meaning
given that term under section 3 of the Small Business Act
(15 U.S.C. 632); and
(7) the term ‘‘State’’ means any State of the United States,
the District of Columbia, the Commonwealth of Puerto Rico,
the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and any territory or possession of the United
States.

PART I—DISASTER PLANNING AND RESPONSE

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SEC. 12061. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.

(a) IN GENERAL.—Section 7(b)(2) of the Small Business Act
(15 U.S.C. 636(b)(2)) is amended—
(1) in the matter preceding subparagraph (A)—
(A) by inserting after ‘‘small business concern’’ the
following: ‘‘, private nonprofit organization,’’; and
(B) by inserting after ‘‘the concern’’ the following: ‘‘,
the organization,’’; and
(2) in subparagraph (D) by inserting after ‘‘small business
concerns’’ the following: ‘‘, private nonprofit organizations,’’.
(b) CONFORMING AMENDMENT.—Section 7(c)(5)(C) of the Small
Business Act (15 U.S.C. 636(c)(5)(C)) is amended by inserting after
‘‘business’’ the following: ‘‘, private nonprofit organization,’’.

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122 STAT. 2169

SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PROGRAMS
WITH FEMA.

The Small Business Act (15 U.S.C. 631 et seq.) is amended—
(1) by redesignating section 37 as section 44; and
(2) by inserting after section 36 the following:
‘‘SEC. 37. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH
FEMA.

‘‘(a) COORDINATION REQUIRED.—The Administrator shall ensure
that the disaster assistance programs of the Administration are
coordinated, to the maximum extent practicable, with the disaster
assistance programs of the Federal Emergency Management
Agency.
‘‘(b) REGULATIONS REQUIRED.—The Administrator, in consultation with the Administrator of the Federal Emergency Management
Agency, shall establish regulations to ensure that each application
for disaster assistance is submitted as quickly as practicable to
the Administration or directed to the appropriate agency under
the circumstances.
‘‘(c) COMPLETION; REVISION.—The initial regulations shall be
completed not later than 270 days after the date of the enactment
of the Small Business Disaster Response and Loan Improvements
Act of 2008. Thereafter, the regulations shall be revised on an
annual basis.
‘‘(d) REPORT.—The Administrator shall include a report on the
regulations whenever the Administration submits the report
required by section 43.’’.

15 USC 631 note.
15 USC 657i.

Deadline.

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SEC. 12063. PUBLIC AWARENESS OF DISASTER DECLARATION AND
APPLICATION PERIODS.

(a) IN GENERAL.—Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting immediately after paragraph
(3), the following:
‘‘(4) COORDINATION WITH FEMA.—
‘‘(A) IN GENERAL.—Notwithstanding any other provision of law, for any disaster declared under this subsection
or major disaster (including any major disaster relating
to which the Administrator declares eligibility for additional disaster assistance under paragraph (9)), the
Administrator, in consultation with the Administrator of
the Federal Emergency Management Agency, shall ensure,
to the maximum extent practicable, that all application
periods for disaster relief under this Act correspond with
application deadlines established under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.), or as extended by the President.
‘‘(B) DEADLINES.—Notwithstanding any other provision
of law, not later than 10 days before the closing date
of an application period for a major disaster (including
any major disaster relating to which the Administrator
declares eligibility for additional disaster assistance under
paragraph (9)), the Administrator, in consultation with the
Administrator of the Federal Emergency Management
Agency, shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives a report
that includes—

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Deadline.
Plan.
15 USC 636 note.

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‘‘(i) the deadline for submitting applications for
assistance under this Act relating to that major disaster;
‘‘(ii) information regarding the number of loan
applications and disbursements processed by the
Administrator relating to that major disaster for each
day during the period beginning on the date on which
that major disaster was declared and ending on the
date of that report; and
‘‘(iii) an estimate of the number of potential
applicants that have not submitted an application
relating to that major disaster.
‘‘(5) PUBLIC AWARENESS OF DISASTERS.—If a disaster is
declared under this subsection or the Administrator declares
eligibility for additional disaster assistance under paragraph
(9), the Administrator shall make every effort to communicate
through radio, television, print, and web-based outlets, all relevant information needed by disaster loan applicants,
including—
‘‘(A) the date of such declaration;
‘‘(B) cities and towns within the area of such declaration;
‘‘(C) loan application deadlines related to such disaster;
‘‘(D) all relevant contact information for victim services
available through the Administration (including links to
small business development center websites);
‘‘(E) links to relevant Federal and State disaster assistance websites, including links to websites providing
information regarding assistance available from the Federal Emergency Management Agency;
‘‘(F) information on eligibility criteria for Administration loan programs, including where such applications can
be found; and
‘‘(G) application materials that clearly state the function of the Administration as the Federal source of disaster
loans for homeowners and renters.’’.
(b) MARKETING AND OUTREACH.—Not later than 90 days after
the date of enactment of this Act, the Administrator shall create
a marketing and outreach plan that—
(1) encourages a proactive approach to the disaster relief
efforts of the Administration;
(2) makes clear the services provided by the Administration, including contact information, application information, and
timelines for submitting applications, the review of applications,
and the disbursement of funds;
(3) describes the different disaster loan programs of the
Administration, including how they are made available and
the eligibility requirements for each loan program;
(4) provides for regional marketing, focusing on disasters
occurring in each region before the date of enactment of this
Act, and likely scenarios for disasters in each such region;
and
(5) ensures that the marketing plan is made available
at small business development centers and on the website
of the Administration.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—

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122 STAT. 2171

(1) IN GENERAL.—Section 3 of the Small Business Act (15
U.S.C. 632) is amended by adding at the end the following:
‘‘(s) MAJOR DISASTER.—In this Act, the term ‘major disaster’
has the meaning given that term in section 102 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5122).’’.
(2) TECHNICAL CORRECTION.—Section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)) is amended by striking ‘‘Disaster Relief and Emergency Assistance Act’’ and inserting
‘‘Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5121 et seq.)’’.
SEC. 12064. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS
AND STANDARD OPERATING PROCEDURES.

(a) IN GENERAL.—The Administrator shall, promptly following
the date of enactment of this Act, conduct a study of whether
the standard operating procedures of the Administration for loans
offered under section 7(b) of the Small Business Act (15 U.S.C.
636(b)) are consistent with the regulations of the Administration
for administering the disaster loan program.
(b) REPORT.—Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to Congress a
report containing all findings and recommendations of the study
conducted under subsection (a).
SEC. 12065. INCREASING COLLATERAL REQUIREMENTS.

Section 7(c)(6) of the Small Business Act (15 U.S.C. 636(c)(6))
is amended by striking ‘‘$10,000 or less’’ and inserting ‘‘$14,000
or less (or such higher amount as the Administrator determines
appropriate in the event of a major disaster)’’.

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SEC. 12066. PROCESSING DISASTER LOANS.

(a) AUTHORITY FOR QUALIFIED PRIVATE CONTRACTORS TO
PROCESS DISASTER LOANS.—Section 7(b) of the Small Business Act
(15 U.S.C. 636(b)) is amended by inserting immediately after paragraph (5), as added by this Act, the following:
‘‘(6) AUTHORITY FOR QUALIFIED PRIVATE CONTRACTORS.—
‘‘(A) DISASTER LOAN PROCESSING.—The Administrator
may enter into an agreement with a qualified private contractor, as determined by the Administrator, to process
loans under this subsection in the event of a major disaster
(including any major disaster relating to which the
Administrator declares eligibility for additional disaster
assistance under paragraph (9)), under which the Administrator shall pay the contractor a fee for each loan processed.
‘‘(B) LOAN LOSS VERIFICATION SERVICES.—The Administrator may enter into an agreement with a qualified lender
or loss verification professional, as determined by the
Administrator, to verify losses for loans under this subsection in the event of a major disaster (including any
major disaster relating to which the Administrator declares
eligibility for additional disaster assistance under paragraph (9)), under which the Administrator shall pay the
lender or verification professional a fee for each loan for
which such lender or verification professional verifies
losses.’’.

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(b) COORDINATION OF EFFORTS BETWEEN THE ADMINISTRATOR
AND THE INTERNAL REVENUE SERVICE TO EXPEDITE LOAN PROCESSING.—The Administrator and the Commissioner of Internal Revenue shall, to the maximum extent practicable, ensure that all
relevant and allowable tax records for loan approval are shared
with loan processors in an expedited manner, upon request by
the Administrator.
SEC. 12067. INFORMATION TRACKING AND FOLLOW-UP SYSTEM.

The Small Business Act is amended by inserting after section
37, as added by this Act, the following:
15 USC 657j.

‘‘SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DISASTER ASSISTANCE.

‘‘(a) SYSTEM REQUIRED.—The Administrator shall develop,
implement, or maintain a centralized information system to track
communications between personnel of the Administration and
applicants for disaster assistance. The system shall ensure that
whenever an applicant for disaster assistance communicates with
such personnel on a matter relating to the application, the following
information is recorded:
‘‘(1) The method of communication.
‘‘(2) The date of communication.
‘‘(3) The identity of the personnel.
‘‘(4) A summary of the subject matter of the communication.
‘‘(b) FOLLOW-UP REQUIRED.—The Administrator shall ensure
that an applicant for disaster assistance receives, by telephone,
mail, or electronic mail, follow-up communications from the
Administration at all critical stages of the application process,
including the following:
‘‘(1) When the Administration determines that additional
information or documentation is required to process the application.
‘‘(2) When the Administration determines whether to
approve or deny the loan.
‘‘(3) When the primary contact person managing the loan
application has changed.’’.
SEC. 12068. INCREASED DEFERMENT PERIOD.

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15 USC 633.

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(a) IN GENERAL.—Section 7 of the Small Business Act (15
U.S.C. 636) is amended—
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (e), as so redesignated,
the following:
‘‘(f) ADDITIONAL REQUIREMENTS FOR 7(b) LOANS.—
‘‘(1) INCREASED DEFERMENT AUTHORIZED.—
‘‘(A) IN GENERAL.—In making loans under subsection
(b), the Administrator may provide, to the person receiving
the loan, an option to defer repayment on the loan.
‘‘(B) PERIOD.—The period of a deferment under
subparagraph (A) may not exceed 4 years.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—The Small
Business Act (15 U.S.C. 631 et seq.) is amended—
(1) in section 4(c)—
(A) in paragraph (1), by striking ‘‘7(c)(2)’’ and inserting
‘‘7(d)(2)’’; and
(B) in paragraph (2)—

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(i) by striking ‘‘7(c)(2)’’ and inserting ‘‘7(d)(2)’’; and
(ii) by striking ‘‘7(e),’’; and
(2) in section 7(b), in the undesignated matter following
paragraph (3)—
(A) by striking ‘‘That the provisions of paragraph (1)
of subsection (c)’’ and inserting ‘‘That the provisions of
paragraph (1) of subsection (d)’’; and
(B) by striking ‘‘Notwithstanding the provisions of any
other law the interest rate on the Administration’s share
of any loan made under subsection (b) except as provided
in subsection (c),’’ and inserting ‘‘Notwithstanding any
other provision of law, and except as provided in subsection
(d), the interest rate on the Administration’s share of any
loan made under subsection (b)’’.

15 USC 636.

SEC. 12069. DISASTER PROCESSING REDUNDANCY.

The Small Business Act (15 U.S.C. 631 et seq.) is amended
by inserting after section 38, as added by this Act, the following:
‘‘SEC. 39. DISASTER PROCESSING REDUNDANCY.

15 USC 657k.

‘‘(a) IN GENERAL.—The Administrator shall ensure that the
Administration has in place a facility for disaster loan processing
that, whenever the Administration’s primary facility for disaster
loan processing becomes unavailable, is able to take over all disaster
loan processing from that primary facility within 2 days.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
this section.’’.
SEC. 12070. NET EARNINGS CLAUSES PROHIBITED.

Section 7 of the Small Business Act (15 U.S.C. 636) is amended
by inserting after subsection (f), as added by this Act, the following:
‘‘(g) NET EARNINGS CLAUSES PROHIBITED FOR 7(b) LOANS.—
In making loans under subsection (b), the Administrator shall not
require the borrower to pay any non-amortized amount for the
first five years after repayment begins.’’.
SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE
STORMS AND BLIZZARDS.

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Section 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2))
is amended—
(1) in subparagraph (A) by striking ‘‘and’’;
(2) in subparagraph (B) by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(C) ice storms and blizzards.’’.

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SEC. 12072. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER RESPONSE PLAN.

15 USC 636g.

(a) IN GENERAL.—Not later than 3 months after the date of
enactment of this Act, the Administrator shall—
(1) by rule, amend the 2006 Atlantic hurricane season
disaster response plan of the Administration (in this section
referred to as the ‘‘disaster response plan’’) to apply to major
disasters; and
(2) submit a report to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on

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Regulations.

Reports.

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Small Business of the House of Representatives detailing the
amendments to the disaster response plan.
(b) CONTENTS.—The report required under subsection (a)(2)
shall include—
(1) any updates or modifications made to the disaster
response plan since the report regarding the disaster response
plan submitted to Congress on July 14, 2006;
(2) a description of how the Administrator plans to use
and integrate District Office personnel of the Administration
in the response to a major disaster, including information on
the use of personnel for loan processing and loan disbursement;
(3) a description of the disaster scalability model of the
Administration and on what basis or function the plan is scaled;
(4) a description of how the agency-wide Disaster Oversight
Council is structured, which offices comprise its membership,
and whether the Associate Deputy Administrator for Entrepreneurial Development of the Administration is a member;
(5) a description of how the Administrator plans to coordinate the disaster efforts of the Administration with State and
local government officials, including recommendations on how
to better incorporate State initiatives or programs, such as
State-administered bridge loan programs, into the disaster
response of the Administration;
(6) recommendations, if any, on how the Administration
can better coordinate its disaster response operations with the
operations of other Federal, State, and local entities;
(7) any surge plan for the disaster loan program of the
Administration in effect on or after August 29, 2005 (including
surge plans for loss verification, loan processing, mailroom,
customer service or call center operations, and a continuity
of operations plan);
(8) the number of full-time equivalent employees and job
descriptions for the planning and disaster response staff of
the Administration;
(9) the in-service and preservice training procedures for
disaster response staff of the Administration;
(10) information on the logistical support plans of the
Administration (including equipment and staffing needs, and
detailed information on how such plans will be scalable
depending on the size and scope of the major disaster;
(11) a description of the findings and recommendations
of the Administrator, if any, based on a review of the response
of the Administration to Hurricane Katrina of 2005, Hurricane
Rita of 2005, and Hurricane Wilma of 2005; and
(12) a plan for how the Administrator, in consultation
with the Administrator of the Federal Emergency Management
Agency, will coordinate the provision of accommodations and
necessary resources for disaster assistance personnel to effectively perform their responsibilities in the aftermath of a major
disaster.
(c) BIENNIAL DISASTER SIMULATION EXERCISE.—
(1) EXERCISE REQUIRED.—The Administrator shall conduct
a disaster simulation exercise at least once every 2 fiscal years.
The exercise shall include the participation of, at a minimum,
not less than 50 percent of the individuals in the disaster
reserve corps and shall test, at maximum capacity, all of the
information technology and telecommunications systems of the

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Administration that are vital to the activities of the Administration during such a disaster.
(2) REPORT.—The Administrator shall include a report on
the disaster simulation exercises conducted under paragraph
(1) each time the Administration submits a report required
under section 43 of the Small Business Act, as added by this
Act.

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SEC. 12073. DISASTER PLANNING RESPONSIBILITIES.

15 USC 1636h.

(a) ASSIGNMENT OF SMALL BUSINESS ADMINISTRATION DISASTER
PLANNING RESPONSIBILITIES.—The disaster planning function of the
Administration shall be assigned to an individual appointed by
the Administrator who—
(1) is not an employee of the Office of Disaster Assistance
of the Administration;
(2) has proven management ability;
(3) has substantial knowledge in the field of disaster readiness and emergency response; and
(4) has demonstrated significant experience in the area
of disaster planning.
(b) RESPONSIBILITIES.—The individual assigned the disaster
planning function of the Administration shall report directly and
solely to the Administrator and shall be responsible for—
(1) creating, maintaining, and implementing the comprehensive disaster response plan of the Administration
described in section 12072;
(2) ensuring there are in-service and pre-service training
procedures for the disaster response staff of the Administration;
(3) coordinating and directing the training exercises of the
Administration relating to disasters, including disaster simulation exercises and disaster exercises coordinated with other
government departments and agencies; and
(4) other responsibilities relevant to disaster planning and
readiness, as determined by the Administrator.
(c) COORDINATION.—In carrying out the responsibilities
described in subsection (b), the individual assigned the disaster
planning function of the Administration shall coordinate with—
(1) the Office of Disaster Assistance of the Administration;
(2) the Administrator of the Federal Emergency Management Agency; and
(3) other Federal, State, and local disaster planning offices,
as necessary.
(d) RESOURCES.—The Administrator shall ensure that the individual assigned the disaster planning function of the Administration
has adequate resources to carry out the duties under this section.
(e) REPORT.—Not later than 30 days after the date of enactment
of this Act, the Administrator shall submit to the Committee on
Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report
containing—
(1) a description of the actions of the Administrator to
assign an individual the disaster planning function of the
Administration;
(2) information detailing the background and expertise of
the individual assigned; and
(3) information on the status of the implementation of
the responsibilities described in subsection (b).

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SEC. 12074. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER
ASSISTANCE AND DISASTER CADRE.

(a) IN GENERAL.—Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting immediately after paragraph
(6), as added by this Act, the following:
‘‘(7) DISASTER ASSISTANCE EMPLOYEES.—
‘‘(A) IN GENERAL.—In carrying out this section, the
Administrator may, where practicable, ensure that the
number of full-time equivalent employees—
‘‘(i) in the Office of the Disaster Assistance is not
fewer than 800; and
‘‘(ii) in the Disaster Cadre of the Administration
is not fewer than 1,000.
‘‘(B) REPORT.—In carrying out this subsection, if the
number of full-time employees for either the Office of Disaster Assistance or the Disaster Cadre of the Administration is below the level described in subparagraph (A) for
that office, not later than 21 days after the date on which
that staffing level decreased below the level described in
subparagraph (A), the Administrator shall submit to the
Committee on Appropriations and the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Appropriations and Committee on Small Business
of the House of Representatives, a report—
‘‘(i) detailing staffing levels on that date;
‘‘(ii) requesting, if practicable and determined
appropriate by the Administrator, additional funds for
additional employees; and
‘‘(iii) containing such additional information, as
determined appropriate by the Administrator.’’.
SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN.

The Small Business Act (15 U.S.C. 631 et seq.) is amended
inserting after section 39, as added by this Act, the following:
15 USC 657l.

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‘‘SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN.

‘‘(a) PLAN REQUIRED.—The Administrator shall develop, implement, or maintain a comprehensive written disaster response plan.
The plan shall include the following:
‘‘(1) For each region of the Administration, a description
of the disasters most likely to occur in that region.
‘‘(2) For each disaster described under paragraph (1)—
‘‘(A) an assessment of the disaster;
‘‘(B) an assessment of the demand for Administration
assistance most likely to occur in response to the disaster;
‘‘(C) an assessment of the needs of the Administration,
with respect to such resources as information technology,
telecommunications, human resources, and office space, to
meet the demand referred to in subparagraph (B); and
‘‘(D) guidelines pursuant to which the Administration
will coordinate with other Federal agencies and with State
and local authorities to best respond to the demand referred
to in subparagraph (B) and to best use the resources
referred to in that subparagraph.
‘‘(b) COMPLETION; REVISION.—The first plan required by subsection (a) shall be completed not later than 180 days after the
date of the enactment of this section. Thereafter, the Administrator

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shall update the plan on an annual basis and following any major
disaster relating to which the Administrator declares eligibility
for additional disaster assistance under section 7(b)(9).
‘‘(c) KNOWLEDGE REQUIRED.—The Administrator shall carry out
subsections (a) and (b) through an individual with substantial
knowledge in the field of disaster readiness and emergency
response.
‘‘(d) REPORT.—The Administrator shall include a report on the
plan whenever the Administration submits the report required by
section 43.’’.
SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE.

The Small Business Act is amended by inserting after section
40, as added by this Act, the following:
‘‘SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE.

15 USC 657m.

‘‘(a) PLANS REQUIRED.—The Administrator shall develop longterm plans to secure sufficient office space to accommodate an
expanded workforce in times of disaster.
‘‘(b) REPORT.—The Administrator shall include a report on the
plans developed under subsection (a) each time the Administration
submits a report required under section 43.’’.
SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR SOURCE OF
EMPLOYMENT DUE TO CHANGED ECONOMIC CIRCUMSTANCES.

Section 7(b)(3)(E) of the Small Business Act (15 U.S.C.
636(b)(3)(E)) is amended by inserting after ‘‘constitutes’’ the following: ‘‘, or have become due to changed economic circumstances,’’.

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SEC. 12078. DISASTER LOAN AMOUNTS.

(a) INCREASED LOAN CAPS.—Section 7(b) of the Small Business
Act (15 U.S.C. 636(b)) is amended by inserting immediately after
paragraph (7), as added by this Act, the following:
‘‘(8) INCREASED LOAN CAPS.—
‘‘(A) AGGREGATE LOAN AMOUNTS.—Except as provided
in subparagraph (B), and notwithstanding any other provision of law, the aggregate loan amount outstanding and
committed to a borrower under this subsection may not
exceed $2,000,000.
‘‘(B) WAIVER AUTHORITY.—The Administrator may, at
the discretion of the Administrator, increase the aggregate
loan amount under subparagraph (A) for loans relating
to a disaster to a level established by the Administrator,
based on appropriate economic indicators for the region
in which that disaster occurred.’’.
(b) DISASTER MITIGATION.—
(1) IN GENERAL.—Section 7(b)(1)(A) of the Small Business
Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ‘‘of the
aggregate costs of such damage or destruction (whether or
not compensated for by insurance or otherwise)’’ after ‘‘20 per
centum’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply with respect to a loan or guarantee made after
the date of enactment of this Act.
(c) TECHNICAL AMENDMENTS.—Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended—

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(1) in the matter preceding paragraph (1), by striking ‘‘the,
Administration’’ and inserting ‘‘the Administration’’; and
(2) in the undesignated matter at the end—
(A) by striking ‘‘, (2), and (4)’’ and inserting ‘‘and (2)’’;
and
(B) by striking ‘‘, (2), or (4)’’ and inserting ‘‘(2)’’.

15 USC 636i.

SEC. 12079. SMALL BUSINESS BONDING THRESHOLD.

(a) IN GENERAL.—Except as provided in subsection (b), and
notwithstanding any other provision of law, for any procurement
related to a major disaster, the Administrator may, upon such
terms and conditions as the Administrator may prescribe, guarantee
and enter into commitments to guarantee any surety against loss
resulting from a breach of the terms of a bid bond, payment bond,
performance bond, or bonds ancillary thereto, by a principal on
any total work order or contract amount at the time of bond execution that does not exceed $5,000,000.
(b) INCREASE OF AMOUNT.—Upon request of the head of any
Federal agency other than the Administration involved in
reconstruction efforts in response to a major disaster, the Administrator may guarantee and enter into a commitment to guarantee
any security against loss under subsection (a) on any total work
order or contract amount at the time of bond execution that does
not exceed $10,000,000.
(c) LIMITATION ON USE OF OTHER FUNDS.—The Administrator
may carry out this section only with amounts appropriated in
advance specifically to carry out this section.

PART II—DISASTER LENDING

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SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER ASSISTANCE.

Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting immediately after paragraph (8), as added
by this Act, the following:
‘‘(9) DECLARATION OF ELIGIBILITY FOR ADDITIONAL DISASTER
ASSISTANCE.—
‘‘(A) IN GENERAL.—If the President declares a major
disaster, the Administrator may declare eligibility for additional disaster assistance in accordance with this paragraph.
‘‘(B) THRESHOLD.—A major disaster for which the
Administrator declares eligibility for additional disaster
assistance under this paragraph shall—
‘‘(i) have resulted in extraordinary levels of casualties or damage or disruption severely affecting the
population (including mass evacuations), infrastructure, environment, economy, national morale, or
government functions in an area;
‘‘(ii) be comparable to the description of a catastrophic incident in the National Response Plan of
the Administration, or any successor thereto, unless
there is no successor to such plan, in which case this
clause shall have no force or effect; and
‘‘(iii) be of such size and scope that—
‘‘(I) the disaster assistance programs under
the other paragraphs under this subsection are

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incapable of providing adequate and timely assistance to individuals or business concerns located
within the disaster area; or
‘‘(II) a significant number of business concerns
outside the disaster area have suffered disasterrelated substantial economic injury as a result of
the incident.’’.

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SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSISTANCE.

Paragraph (9) of section 7(b) of the Small Business Act (15
U.S.C. 636(b)), as added by section 12081, is amended by adding
at the end the following:
‘‘(C) ADDITIONAL ECONOMIC INJURY DISASTER LOAN
ASSISTANCE.—
‘‘(i) IN GENERAL.—If the Administrator declares
eligibility for additional disaster assistance under this
paragraph, the Administrator may make such loans
under this subparagraph (either directly or in cooperation with banks or other lending institutions through
agreements to participate on an immediate or deferred
basis) as the Administrator determines appropriate to
eligible small business concerns located anywhere in
the United States.
‘‘(ii) PROCESSING TIME.—
‘‘(I) IN GENERAL.—If the Administrator determines that the average processing time for applications for disaster loans under this subparagraph
relating to a specific major disaster is more than
15 days, the Administrator shall give priority to
the processing of such applications submitted by
eligible small business concerns located inside the
disaster area, until the Administrator determines
that the average processing time for such applications is not more than 15 days.
‘‘(II) SUSPENSION OF APPLICATIONS FROM OUTSIDE DISASTER AREA.—If the Administrator determines that the average processing time for applications for disaster loans under this subparagraph
relating to a specific major disaster is more than
30 days, the Administrator shall suspend the processing of such applications submitted by eligible
small business concerns located outside the disaster area, until the Administrator determines
that the average processing time for such applications is not more than 15 days.
‘‘(iii) LOAN TERMS.—A loan under this subparagraph shall be made on the same terms as a loan
under paragraph (2).
‘‘(D) DEFINITIONS.—In this paragraph—
‘‘(i) the term ‘disaster area’ means the area for
which the applicable major disaster was declared;
‘‘(ii) the term ‘disaster-related substantial economic
injury’ means economic harm to a business concern
that results in the inability of the business concern
to—
‘‘(I) meet its obligations as it matures;

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‘‘(II) meet its ordinary and necessary operating
expenses; or
‘‘(III) market, produce, or provide a product
or service ordinarily marketed, produced, or provided by the business concern because the business
concern relies on materials from the disaster area
or sells or markets in the disaster area; and
‘‘(iii) the term ‘eligible small business concern’
means a small business concern—
‘‘(I) that has suffered disaster-related substantial economic injury as a result of the applicable
major disaster; and
‘‘(II)(aa) for which not less than 25 percent
of the market share of that small business concern
is from business transacted in the disaster area;
‘‘(bb) for which not less than 25 percent of
an input into a production process of that small
business concern is from the disaster area; or
‘‘(cc) that relies on a provider located in the
disaster area for a service that is not readily available elsewhere.’’.

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SEC. 12083. PRIVATE DISASTER LOANS.

(a) IN GENERAL.—Section 7 of the Small Business Act (15
U.S.C. 636) is amended by inserting after subsection (b) the following:
‘‘(c) PRIVATE DISASTER LOANS.—
‘‘(1) DEFINITIONS.—In this subsection—
‘‘(A) the term ‘disaster area’ means any area for which
the President declared a major disaster relating to which
the Administrator declares eligibility for additional disaster
assistance under subsection (b)(9), during the period of
that major disaster declaration;
‘‘(B) the term ‘eligible individual’ means an individual
who is eligible for disaster assistance under subsection
(b)(1) relating to a major disaster relating to which the
Administrator declares eligibility for additional disaster
assistance under subsection (b)(9);
‘‘(C) the term ‘eligible small business concern’ means
a business concern that is—
‘‘(i) a small business concern, as defined under
this Act; or
‘‘(ii) a small business concern, as defined in section
103 of the Small Business Investment Act of 1958;
‘‘(D) the term ‘preferred lender’ means a lender participating in the Preferred Lender Program;
‘‘(E) the term ‘Preferred Lender Program’ has the
meaning given that term in subsection (a)(2)(C)(ii); and
‘‘(F) the term ‘qualified private lender’ means any privately-owned bank or other lending institution that—
‘‘(i) is not a preferred lender; and
‘‘(ii) the Administrator determines meets the criteria established under paragraph (10).
‘‘(2) PROGRAM REQUIRED.—The Administrator shall carry
out a program, to be known as the Private Disaster Assistance
program, under which the Administration may guarantee
timely payment of principal and interest, as scheduled, on

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any loan made to an eligible small business concern located
in a disaster area and to an eligible individual.
‘‘(3) USE OF LOANS.—A loan guaranteed by the Administrator under this subsection may be used for any purpose
authorized under subsection (b).
‘‘(4) ONLINE APPLICATIONS.—
‘‘(A) ESTABLISHMENT.—The Administrator may establish, directly or through an agreement with another entity,
an online application process for loans guaranteed under
this subsection.
‘‘(B) OTHER FEDERAL ASSISTANCE.—The Administrator
may coordinate with the head of any other appropriate
Federal agency so that any application submitted through
an online application process established under this paragraph may be considered for any other Federal assistance
program for disaster relief.
‘‘(C) CONSULTATION.—In establishing an online application process under this paragraph, the Administrator shall
consult with appropriate persons from the public and private sectors, including private lenders.
‘‘(5) MAXIMUM AMOUNTS.—
‘‘(A) GUARANTEE PERCENTAGE.—The Administrator
may guarantee not more than 85 percent of a loan under
this subsection.
‘‘(B) LOAN AMOUNT.—The maximum amount of a loan
guaranteed under this subsection shall be $2,000,000.
‘‘(6) TERMS AND CONDITIONS.—A loan guaranteed under
this subsection shall be made under the same terms and conditions as a loan under subsection (b).
‘‘(7) LENDERS.—
‘‘(A) IN GENERAL.—A loan guaranteed under this subsection made to—
‘‘(i) a qualified individual may be made by a preferred lender; and
‘‘(ii) a qualified small business concern may be
made by a qualified private lender or by a preferred
lender that also makes loans to qualified individuals.
‘‘(B) COMPLIANCE.—If the Administrator determines
that a preferred lender knowingly failed to comply with
the underwriting standards for loans guaranteed under
this subsection or violated the terms of the standard operating procedure agreement between that preferred lender
and the Administration, the Administrator shall do 1 or
more of the following:
‘‘(i) Exclude the preferred lender from participating
in the program under this subsection.
‘‘(ii) Exclude the preferred lender from participating in the Preferred Lender Program for a period
of not more than 5 years.
‘‘(8) FEES.—
‘‘(A) IN GENERAL.—The Administrator may not collect
a guarantee fee under this subsection.
‘‘(B) ORIGINATION FEE.—The Administrator may pay
a qualified private lender or preferred lender an origination
fee for a loan guaranteed under this subsection in an
amount agreed upon in advance between the qualified private lender or preferred lender and the Administrator.

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‘‘(9) DOCUMENTATION.—A qualified private lender or preferred lender may use its own loan documentation for a loan
guaranteed by the Administrator under this subsection, to the
extent authorized by the Administrator. The ability of a lender
to use its own loan documentation for a loan guaranteed under
this subsection shall not be considered part of the criteria
for becoming a qualified private lender under the regulations
promulgated under paragraph (10).
‘‘(10) IMPLEMENTATION REGULATIONS.—
‘‘(A) IN GENERAL.—Not later than 1 year after the
date of enactment of the Small Business Disaster Response
and Loan Improvements Act of 2008, the Administrator
shall issue final regulations establishing permanent criteria
for qualified private lenders.
‘‘(B) REPORT TO CONGRESS.—Not later than 6 months
after the date of enactment of the Small Business Disaster
Response and Loan Improvements Act of 2008, the
Administrator shall submit a report on the progress of
the regulations required by subparagraph (A) to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House
of Representatives.
‘‘(11) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(A) IN GENERAL.—Amounts necessary to carry out this
subsection shall be made available from amounts appropriated to the Administration to carry out subsection (b).
‘‘(B) AUTHORITY TO REDUCE INTEREST RATES AND OTHER
TERMS AND CONDITIONS.—Funds appropriated to the
Administration to carry out this subsection, may be used
by the Administrator to meet the loan terms and conditions
specified in paragraph (6).
‘‘(12) PURCHASE OF LOANS.—The Administrator may enter
into an agreement with a qualified private lender or preferred
lender to purchase any loan guaranteed under this subsection.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to any major disaster declared on or after the date
of enactment of this Act.
SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

The Small Business Act is amended by inserting after section
41, as added by this Act, the following:

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‘‘SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

‘‘(a) PROGRAM REQUIRED.—The Administrator shall carry out
a program, to be known as the Immediate Disaster Assistance
program, under which the Administration participates on a deferred
(guaranteed) basis in 85 percent of the balance of the financing
outstanding at the time of disbursement of the loan if such balance
is less than or equal to $25,000 for businesses affected by a disaster.
‘‘(b) ELIGIBILITY REQUIREMENT.—To receive a loan guaranteed
under subsection (a), the applicant shall also apply for, and meet
basic eligibility standards for, a loan under subsection (b) or (c)
of section 7.
‘‘(c) USE OF PROCEEDS.—A person who receives a loan under
subsection (b) or (c) of section 7 shall use the proceeds of that
loan to repay all loans guaranteed under subsection (a), if any,
before using the proceeds for any other purpose.
‘‘(d) LOAN TERMS.—

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‘‘(1) NO PREPAYMENT PENALTY.—There shall be no prepayment penalty on a loan guaranteed under subsection (a).
‘‘(2) REPAYMENT.—A person who receives a loan guaranteed
under subsection (a) and who is disapproved for a loan under
subsection (b) or (c) of section 7, as the case may be, shall
repay the loan guaranteed under subsection (a) not later than
the date established by the Administrator, which may not be
earlier than 10 years after the date on which the loan guaranteed under subsection is disbursed.
‘‘(e) APPROVAL OR DISAPPROVAL.—The Administrator shall
ensure that each applicant for a loan under the program receives
a decision approving or disapproving of the application within 36
hours after the Administration receives the application.’’.

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SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.

15 USC 636j.

(a) DEFINITION.—In this section, the term ‘‘program’’ means
the expedited disaster assistance business loan program established
under subsection (b).
(b) CREATION OF PROGRAM.—The Administrator shall take such
administrative action as is necessary to establish and implement
an expedited disaster assistance business loan program under which
the Administration may, on an expedited basis, guarantee timely
payment of principal and interest, as scheduled on any loan made
to an eligible small business concern under paragraph (9) of section
7(b) of the Small Business Act (15 U.S.C. 636(b)), as added by
this Act.
(c) CONSULTATION REQUIRED.—In establishing the program, the
Administrator shall consult with—
(1) appropriate personnel of the Administration (including
District Office personnel of the Administration);
(2) appropriate technical assistance providers (including
small business development centers);
(3) appropriate lenders and credit unions;
(4) the Committee on Small Business and Entrepreneurship
of the Senate; and
(5) the Committee on Small Business of the House of Representatives.
(d) RULES.—
(1) IN GENERAL.—Not later than 1 year after the date
of enactment of this Act, the Administrator shall issue rules
in final form establishing and implementing the program in
accordance with this section. Such rules shall apply as provided
for in this section, beginning 90 days after their issuance in
final form.
(2) CONTENTS.—The rules promulgated under paragraph
(1) shall—
(A) identify whether appropriate uses of funds under
the program may include—
(i) paying employees;
(ii) paying bills and other financial obligations;
(iii) making repairs;
(iv) purchasing inventory;
(v) restarting or operating a small business concern
in the community in which it was conducting operations prior to the applicable major disaster, or to
a neighboring area, county, or parish in the disaster
area; or

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(vi) covering additional costs until the small business concern is able to obtain funding through insurance claims, Federal assistance programs, or other
sources; and
(B) set the terms and conditions of any loan made
under the program, subject to paragraph (3).
(3) TERMS AND CONDITIONS.—A loan guaranteed by the
Administration under this section—
(A) shall be for not more than $150,000;
(B) shall be a short-term loan, not to exceed 180 days,
except that the Administrator may extend such term as
the Administrator determines necessary or appropriate on
a case-by-case basis;
(C) shall have an interest rate not to exceed 300 basis
points above the interest rate established by the Board
of Governors of the Federal Reserve System that 1 bank
charges another for reserves that are lent on an overnight
basis on the date the loan is made;
(D) shall have no prepayment penalty;
(E) may only be made to a borrower that meets the
requirements for a loan under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), as amended by this Act;
(F) may be refinanced as part of any subsequent disaster assistance provided under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), as amended by this Act;
(G) may receive expedited loss verification and loan
processing, if the applicant is—
(i) a major source of employment in the disaster
area (which shall be determined in the same manner
as under section 7(b)(3)(B) of the Small Business Act
(15 U.S.C. 636(b)(3)(B))); or
(ii) vital to recovery efforts in the region (including
providing debris removal services, manufactured
housing, or building materials); and
(H) shall be subject to such additional terms as the
Administrator determines necessary or appropriate.
(e) REPORT TO CONGRESS.—Not later than 5 months after the
date of enactment of this Act, the Administrator shall report to
the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives on the progress of the Administrator in establishing
the program.
(f) AUTHORIZATION.—There are authorized to be appropriated
to the Administrator such sums as are necessary to carry out
this section.
SEC. 12086. GULF COAST DISASTER LOAN REFINANCING PROGRAM.

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(a) IN GENERAL.—The Administrator may carry out a program
to refinance Gulf Coast disaster loans (in this section referred
to as the ‘‘program’’).
(b) TERMS.—The terms of a Gulf Coast disaster loan refinanced
under the program shall be identical to the terms of the original
loan, except that the Administrator may provide an option to defer
repayment on the loan. A deferment under the program shall end
not later than 4 years after the date on which the initial disbursement under the original loan was made.

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(c) AMOUNT.—The amount of a Gulf Coast disaster loan
refinanced under the program shall not exceed the amount of the
original loan.
(d) DISCLOSURE OF ACCRUED INTEREST.—If the Administrator
provides an option to defer repayment under the program, the
Administrator shall disclose the accrued interest that must be paid
under the option.
(e) DEFINITION.—In this section, the term ‘‘Gulf Coast disaster
loan’’ means a loan—
(1) made under section 7(b) of the Small Business Act
(15 U.S.C. 636(b));
(2) in response to Hurricane Katrina of 2005, Hurricane
Rita of 2005, or Hurricane Wilma of 2005; and
(3) to a small business concern located in a county or
parish designated by the Administrator as a disaster area by
reason of a hurricane described in paragraph (2) under disaster
declaration 10176, 10177, 10178, 10179, 10180, 10181, 10203,
10204, 10205, 10206, 10222, or 10223.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
this section.

PART III—MISCELLANEOUS

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SEC. 12091. REPORTS ON DISASTER ASSISTANCE.

15 USC 636k.

(a) MONTHLY ACCOUNTING REPORT TO CONGRESS.—
(1) REPORTING REQUIREMENTS.—Not later than the fifth
business day of each month during the applicable period for
a major disaster, the Administrator shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Appropriations of the Senate and to the Committee
on Small Business and the Committee on Appropriations of
the House of Representatives a report on the operation of
the disaster loan program authorized under section 7 of the
Small Business Act (15 U.S.C. 636) for that major disaster
during the preceding month.
(2) CONTENTS.—Each report submitted under paragraph
(1) shall include—
(A) the daily average lending volume, in number of
loans and dollars, and the percent by which each category
has increased or decreased since the previous report under
paragraph (1);
(B) the weekly average lending volume, in number
of loans and dollars, and the percent by which each category
has increased or decreased since the previous report under
paragraph (1);
(C) the amount of funding spent over the month for
loans, both in appropriations and program level, and the
percent by which each category has increased or decreased
since the previous report under paragraph (1);
(D) the amount of funding available for loans, both
in appropriations and program level, and the percent by
which each category has increased or decreased since the
previous report under paragraph (1), noting the source
of any additional funding;
(E) an estimate of how long the available funding
for such loans will last, based on the spending rate;

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(F) the amount of funding spent over the month for
staff, along with the number of staff, and the percent
by which each category has increased or decreased since
the previous report under paragraph (1);
(G) the amount of funding spent over the month for
administrative costs, and the percent by which such
spending has increased or decreased since the previous
report under paragraph (1);
(H) the amount of funding available for salaries and
expenses combined, and the percent by which such funding
has increased or decreased since the previous report under
paragraph (1), noting the source of any additional funding;
and
(I) an estimate of how long the available funding for
salaries and expenses will last, based on the spending
rate.
(b) WEEKLY DISASTER UPDATES TO CONGRESS FOR PRESIDENTIALLY DECLARED DISASTERS.—
(1) IN GENERAL.—Each week during a disaster update
period, the Administration shall submit to the Committee on
Small Business and Entrepreneurship of the Senate and to
the Committee on Small Business of the House of Representatives a report on the operation of the disaster loan program
of the Administration for the area in which the President
declared a major disaster.
(2) CONTENTS.—Each report submitted under paragraph
(1) shall include—
(A) the number of Administration staff performing loan
processing, field inspection, and other duties for the
declared disaster, and the allocations of such staff in the
disaster field offices, disaster recovery centers, workshops,
and other Administration offices nationwide;
(B) the daily number of applications received from
applicants in the relevant area, as well as a breakdown
of such figures by State;
(C) the daily number of applications pending application entry from applicants in the relevant area, as well
as a breakdown of such figures by State;
(D) the daily number of applications withdrawn by
applicants in the relevant area, as well as a breakdown
of such figures by State;
(E) the daily number of applications summarily
declined by the Administration from applicants in the relevant area, as well as a breakdown of such figures by
State;
(F) the daily number of applications declined by the
Administration from applicants in the relevant area, as
well as a breakdown of such figures by State;
(G) the daily number of applications in process from
applicants in the relevant area, as well as a breakdown
of such figures by State;
(H) the daily number of applications approved by the
Administration from applicants in the relevant area, as
well as a breakdown of such figures by State;
(I) the daily dollar amount of applications approved
by the Administration from applicants in the relevant area,
as well as a breakdown of such figures by State;

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(J) the daily amount of loans dispersed, both partially
and fully, by the Administration to applicants in the relevant area, as well as a breakdown of such figures by
State;
(K) the daily dollar amount of loans disbursed, both
partially and fully, from the relevant area, as well as
a breakdown of such figures by State;
(L) the number of applications approved, including
dollar amount approved, as well as applications partially
and fully disbursed, including dollar amounts, since the
last report under paragraph (1); and
(M) the declaration date, physical damage closing date,
economic injury closing date, and number of counties
included in the declaration of a major disaster.
(c) PERIODS WHEN ADDITIONAL DISASTER ASSISTANCE IS MADE
AVAILABLE.—
(1) IN GENERAL.—During any period for which the Administrator declares eligibility for additional disaster assistance
under paragraph (9) of section 7(b) of the Small Business Act
(15 U.S.C. 632(b)), as amended by this Act, the Administrator
shall, on a monthly basis, submit to the Committee on Small
Business and Entrepreneurship of the Senate and to the Committee on Small Business of the House of Representatives a
report on the disaster assistance operations of the Administration with respect to the applicable major disaster.
(2) CONTENTS.—Each report submitted under paragraph
(1) shall specify—
(A) the number of applications for disaster assistance
distributed;
(B) the number of applications for disaster assistance
received;
(C) the average time for the Administration to approve
or disapprove an application for disaster assistance;
(D) the amount of disaster loans approved;
(E) the average time for initial disbursement of disaster
loan proceeds; and
(F) the amount of disaster loan proceeds disbursed.
(d) NOTICE OF THE NEED FOR SUPPLEMENTAL FUNDS.—On the
same date that the Administrator notifies any committee of the
Senate or the House of Representatives that supplemental funding
is necessary for the disaster loan program of the Administration
in any fiscal year, the Administrator shall notify in writing the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of Representatives regarding the need for supplemental funds for that loan program.
(e) REPORT ON CONTRACTING.—
(1) IN GENERAL.—Not later than 6 months after the date
on which the President declares a major disaster, and every
6 months thereafter until the date that is 18 months after
the date on which the major disaster was declared, the Administrator shall submit a report to the Committee on Small Business
and Entrepreneurship of the Senate and to the Committee
on Small Business of the House of Representatives regarding
Federal contracts awarded as a result of that major disaster.
(2) CONTENTS.—Each report submitted under paragraph
(1) shall include—

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(A) the total number of contracts awarded as a result
of that major disaster;
(B) the total number of contracts awarded to small
business concerns as a result of that major disaster;
(C) the total number of contracts awarded to women
and minority-owned businesses as a result of that major
disaster; and
(D) the total number of contracts awarded to local
businesses as a result of that major disaster.
(f) REPORT ON LOAN APPROVAL RATE.—
(1) IN GENERAL.—Not later than 6 months after the date
of enactment of this Act, the Administrator shall submit a
report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives detailing how the Administration
can improve the processing of applications under the disaster
loan program of the Administration.
(2) CONTENTS.—The report submitted under paragraph (1)
shall include—
(A) recommendations, if any, regarding—
(i) staffing levels during a major disaster;
(ii) how to improve the process for processing,
approving, and disbursing loans under the disaster
loan program of the Administration, to ensure that
the maximum assistance is provided to victims in a
timely manner;
(iii) the viability of using alternative methods for
assessing the ability of an applicant to repay a loan,
including the credit score of the applicant on the day
before the date on which the disaster for which the
applicant is seeking assistance was declared;
(iv) methods, if any, for the Administration to expedite loss verification and loan processing of disaster
loans during a major disaster for businesses affected
by, and located in the area for which the President
declared, the major disaster that are a major source
of employment in the area or are vital to recovery
efforts in the region (including providing debris
removal services, manufactured housing, or building
materials);
(v) legislative changes, if any, needed to implement
findings from the Accelerated Disaster Response Initiative of the Administration; and
(vi) a description of how the Administration plans
to integrate and coordinate the response to a major
disaster with the technical assistance programs of the
Administration; and
(B) the plans of the Administrator for implementing
any recommendation made under subparagraph (A).
(g) REPORTS ON DISASTER ASSISTANCE.—The Small Business
Act is amended by inserting after section 42, as added by this
Act, the following:

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‘‘SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE.

‘‘Not later than 45 days after the end of a fiscal year, the
Administrator shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small

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Business of the House of Representatives a report on the disaster
assistance operations of the Administration for that fiscal year.
The report shall—
‘‘(1) specify the number of Administration personnel
involved in such operations;
‘‘(2) describe any material changes to those operations,
such as changes to technologies used or to personnel responsibilities;
‘‘(3) describe and assess the effectiveness of the Administration in responding to disasters during that fiscal year, including
a description of the number and amounts of loans made for
damage and for economic injury; and
‘‘(4) describe the plans of the Administration for preparing
to respond to disasters during the next fiscal year.’’.

TITLE XIII—COMMODITY FUTURES

CFTC
Reauthorization
Act of 2008.
7 USC 1 note.

SEC. 13001. SHORT TITLE.

This title may be cited as the ‘‘CFTC Reauthorization Act
of 2008’’.

Subtitle A—General Provisions

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SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS
OR TRANSACTIONS IN FOREIGN CURRENCY.

(a) IN GENERAL.—Section 2(c)(2) of the Commodity Exchange
Act (7 U.S.C. 2(c)(2)) is amended by striking subparagraphs (B)
and (C) and inserting the following:
‘‘(B) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN
RETAIL FOREIGN CURRENCY.—
‘‘(i) This Act applies to, and the Commission shall
have jurisdiction over, an agreement, contract, or
transaction in foreign currency that—
‘‘(I) is a contract of sale of a commodity for
future delivery (or an option on such a contract)
or an option (other than an option executed or
traded on a national securities exchange registered
pursuant to section 6(a) of the Securities Exchange
Act of 1934 (15 U.S.C. 78f(a))); and
‘‘(II) is offered to, or entered into with, a person
that is not an eligible contract participant, unless
the counterparty, or the person offering to be the
counterparty, of the person is—
‘‘(aa) a financial institution;
‘‘(bb)(AA) a broker or dealer registered
under section 15(b) (except paragraph (11)
thereof) or 15C of the Securities Exchange
Act of 1934 (15 U.S.C. 78o(b), 78o–5); or
‘‘(BB) an associated person of a broker
or dealer registered under section 15(b) (except
paragraph (11) thereof) or 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b),
78o–5) concerning the financial or securities
activities of which the broker or dealer makes
and keeps records under section 15C(b) or

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17(h) of the Securities Exchange Act of 1934
(15 U.S.C. 78o–5(b), 78q(h));
‘‘(cc)(AA) a futures commission merchant
that is primarily or substantially engaged in
the business activities described in section
1a(20) of this Act, is registered under this
Act, is not a person described in item (bb)
of this subclause, and maintains adjusted net
capital equal to or in excess of the dollar
amount that applies for purposes of clause
(ii) of this subparagraph; or
‘‘(BB) an affiliated person of a futures
commission merchant that is primarily or
substantially engaged in the business activities described in section 1a(20) of this Act,
is registered under this Act, and is not a person described in item (bb) of this subclause,
if the affiliated person maintains adjusted net
capital equal to or in excess of the dollar
amount that applies for purposes of clause
(ii) of this subparagraph and is not a person
described in such item (bb), and the futures
commission merchant makes and keeps
records under section 4f(c)(2)(B) of this Act
concerning the futures and other financial
activities of the affiliated person;
‘‘(dd) an insurance company described in
section 1a(12)(A)(ii) of this Act, or a regulated
subsidiary or affiliate of such an insurance
company;
‘‘(ee) a financial holding company (as
defined in section 2 of the Bank Holding Company Act of 1956);
‘‘(ff) an investment bank holding company
(as defined in section 17(i) of the Securities
Exchange Act of 1934 (15 U.S.C. 78q(i))); or
‘‘(gg) a retail foreign exchange dealer that
maintains adjusted net capital equal to or in
excess of the dollar amount that applies for
purposes of clause (ii) of this subparagraph
and is registered in such capacity with the
Commission, subject to such terms and conditions as the Commission shall prescribe, and
is a member of a futures association registered
under section 17.
‘‘(ii) The dollar amount that applies for purposes
of this clause is—
‘‘(I) $10,000,000, beginning 120 days after the
date of the enactment of this clause;
‘‘(II) $15,000,000, beginning 240 days after
such date of enactment; and
‘‘(III) $20,000,000, beginning 360 days after
such date of enactment.
‘‘(iii) Notwithstanding items (cc) and (gg) of clause
(i)(II) of this subparagraph, agreements, contracts, or
transactions described in clause (i) of this subparagraph shall be subject to subsection (a)(1)(B) of this

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section and sections 4(b), 4b, 4c(b), 4o, 6(c) and 6(d)
(except to the extent that sections 6(c) and 6(d) prohibit
manipulation of the market price of any commodity
in interstate commerce, or for future delivery on or
subject to the rules of any market), 6c, 6d, 8(a), 13(a),
and 13(b) if the agreements, contracts, or transactions
are offered, or entered into, by a person that is registered as a futures commission merchant or retail
foreign exchange dealer, or an affiliated person of a
futures commission merchant registered under this Act
that is not also a person described in any of item
(aa), (bb), (dd), (ee), or (ff) of clause (i)(II) of this
subparagraph.
‘‘(iv)(I) Notwithstanding items (cc) and (gg) of
clause (i)(II), a person, unless registered in such
capacity as the Commission by rule, regulation, or
order shall determine and a member of a futures
association registered under section 17, shall not—
‘‘(aa) solicit or accept orders from any person
that is not an eligible contract participant in
connection with agreements, contracts, or transactions described in clause (i) entered into with
or to be entered into with a person who is not
described in item (aa), (bb), (dd), (ee), or (ff) of
clause (i)(II);
‘‘(bb) exercise discretionary trading authority
or obtain written authorization to exercise discretionary trading authority over any account for or
on behalf of any person that is not an eligible
contract participant in connection with agreements, contracts, or transactions described in
clause (i) entered into with or to be entered into
with a person who is not described in item (aa),
(bb), (dd), (ee), or (ff) of clause (i)(II); or
‘‘(cc) operate or solicit funds, securities, or
property for any pooled investment vehicle that
is not an eligible contract participant in connection
with agreements, contracts, or transactions
described in clause (i) entered into with or to be
entered into with a person who is not described
in item (aa), (bb), (dd), (ee), or (ff) of clause (i)(II).
‘‘(II) Subclause (I) of this clause shall not apply
to—
‘‘(aa) any person described in any of item (aa),
(bb), (dd), (ee), or (ff) of clause (i)(II);
‘‘(bb) any such person’s associated persons; or
‘‘(cc) any person who would be exempt from
registration if engaging in the same activities in
connection with transactions conducted on or subject to the rules of a contract market or a derivatives transaction execution facility.
‘‘(III) Notwithstanding items (cc) and (gg) of clause
(i)(II), the Commission may make, promulgate, and
enforce such rules and regulations as, in the judgment
of the Commission, are reasonably necessary to effectuate any of the provisions of, or to accomplish any

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Applicability.

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PUBLIC LAW 110–246—JUNE 18, 2008
of the purposes of, this Act in connection with the
activities of persons subject to subclause (I).
‘‘(IV) Subclause (III) of this clause shall not apply
to—
‘‘(aa) any person described in any of item (aa)
through (ff) of clause (i)(II);
‘‘(bb) any such person’s associated persons; or
‘‘(cc) any person who would be exempt from
registration if engaging in the same activities in
connection with transactions conducted on or subject to the rules of a contract market or a derivatives transaction execution facility.
‘‘(v) Notwithstanding items (cc) and (gg) of clause
(i)(II), the Commission may make, promulgate, and
enforce such rules and regulations as, in the judgment
of the Commission, are reasonably necessary to effectuate any of the provisions of, or to accomplish any
of the purposes of, this Act in connection with agreements, contracts, or transactions described in clause
(i) which are offered, or entered into, by a person
described in item (cc) or (gg) of clause (i)(II).
‘‘(C)(i)(I) This subparagraph shall apply to any agreement, contract, or transaction in foreign currency that is—
‘‘(aa) offered to, or entered into with, a person
that is not an eligible contract participant (except
that this subparagraph shall not apply if the
counterparty, or the person offering to be the
counterparty, of the person that is not an eligible
contract participant is a person described in any
of item (aa), (bb), (dd), (ee), or (ff) of subparagraph
(B)(i)(II)); and
‘‘(bb) offered, or entered into, on a leveraged
or margined basis, or financed by the offeror, the
counterparty, or a person acting in concert with
the offeror or counterparty on a similar basis.
‘‘(II) Subclause (I) of this clause shall not apply to—
‘‘(aa) a security that is not a security futures
product; or
‘‘(bb) a contract of sale that—
‘‘(AA) results in actual delivery within 2 days;
or
‘‘(BB) creates an enforceable obligation to
deliver between a seller and buyer that have the
ability to deliver and accept delivery, respectively,
in connection with their line of business.
‘‘(ii)(I) Agreements, contracts, or transactions described
in clause (i) of this subparagraph shall be subject to subsection (a)(1)(B) of this section and sections 4(b), 4b, 4c(b),
4o, 6(c) and 6(d) (except to the extent that sections 6(c)
and 6(d) prohibit manipulation of the market price of any
commodity in interstate commerce, or for future delivery
on or subject to the rules of any market), 6c, 6d, 8(a),
13(a), and 13(b).
‘‘(II) Subclause (I) of this clause shall not apply to—
‘‘(aa) any person described in any of item (aa),
(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or
‘‘(bb) any such person’s associated persons.

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122 STAT. 2193

‘‘(III) The Commission may make, promulgate, and
enforce such rules and regulations as, in the judgment
of the Commission, are reasonably necessary to effectuate
any of the provisions of or to accomplish any of the purposes
of this Act in connection with agreements, contracts, or
transactions described in clause (i) of this subparagraph
if the agreements, contracts, or transactions are offered,
or entered into, by a person that is not described in item
(aa) through (ff) of subparagraph (B)(i)(II).
‘‘(iii)(I) A person, unless registered in such capacity
as the Commission by rule, regulation, or order shall determine and a member of a futures association registered
under section 17, shall not—
‘‘(aa) solicit or accept orders from any person that
is not an eligible contract participant in connection
with agreements, contracts, or transactions described
in clause (i) of this subparagraph entered into with
or to be entered into with a person who is not described
in item (aa), (bb), (dd), (ee), or (ff) of subparagraph
(B)(i)(II);
‘‘(bb) exercise discretionary trading authority or
obtain written authorization to exercise written trading
authority over any account for or on behalf of any
person that is not an eligible contract participant in
connection with agreements, contracts, or transactions
described in clause (i) of this subparagraph entered
into with or to be entered into with a person who
is not described in item (aa), (bb), (dd), (ee), or (ff)
of subparagraph (B)(i)(II); or
‘‘(cc) operate or solicit funds, securities, or property
for any pooled investment vehicle that is not an eligible
contract participant in connection with agreements,
contracts, or transactions described in clause (i) of
this subparagraph entered into with or to be entered
into with a person who is not described in item (aa),
(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II).
‘‘(II) Subclause (I) of this clause shall not apply to—
‘‘(aa) any person described in item (aa), (bb), (dd),
(ee), or (ff) of subparagraph (B)(i)(II);
‘‘(bb) any such person’s associated persons; or
‘‘(cc) any person who would be exempt from registration if engaging in the same activities in connection with transactions conducted on or subject to the
rules of a contract market or a derivatives transaction
execution facility.
‘‘(III) The Commission may make, promulgate, and
enforce such rules and regulations as, in the judgment
of the Commission, are reasonably necessary to effectuate
any of the provisions of, or to accomplish any of the purposes of, this Act in connection with the activities of persons
subject to subclause (I).
‘‘(IV) Subclause (III) of this clause shall not apply
to—
‘‘(aa) any person described in item (aa) through
(ff) of subparagraph (B)(i)(II);
‘‘(bb) any such person’s associated persons; or

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122 STAT. 2194

Applicability.

7 USC 2 note.

PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(cc) any person who would be exempt from registration if engaging in the same activities in connection with transactions conducted on or subject to the
rules of a contract market or a derivatives transaction
execution facility.
‘‘(iv) Sections 4(b) and 4b shall apply to any agreement,
contract, or transaction described in clause (i) of this
subparagraph as if the agreement, contract, or transaction
were a contract of sale of a commodity for future delivery.
‘‘(v) This subparagraph shall not be construed to limit
any jurisdiction that the Commission may otherwise have
under any other provision of this Act over an agreement,
contract, or transaction that is a contract of sale of a
commodity for future delivery.
‘‘(vi) This subparagraph shall not be construed to limit
any jurisdiction that the Commission or the Securities and
Exchange Commission may otherwise have under any other
provision of this Act with respect to security futures products and persons effecting transactions in security futures
products.’’.
(b) EFFECTIVE DATE.—The following provisions of the Commodity Exchange Act, as amended by subsection (a) of this section,
shall be effective 120 days after the date of the enactment of
this Act or at such other time as the Commodity Futures Trading
Commission shall determine:
(1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and (C)(iii) of section 2(c)(2).
(2) The provisions of section 2(c)(2)(B)(i)(II)(cc) that set
forth adjusted net capital requirements, and the provisions
of such section that require a futures commission merchant
to be primarily or substantially engaged in certain business
activities.
SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO-PRINCIPAL
TRANSACTIONS.

Section 4b of the Commodity Exchange Act (7 U.S.C. Section
6b) is amended—
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by striking all through the end of subsection (a) and
inserting the following:

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‘‘SEC. 4b. CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD.

‘‘(a) UNLAWFUL ACTIONS.—It shall be unlawful—
‘‘(1) for any person, in or in connection with any order
to make, or the making of, any contract of sale of any commodity
in interstate commerce or for future delivery that is made,
or to be made, on or subject to the rules of a designated
contract market, for or on behalf of any other person; or
‘‘(2) for any person, in or in connection with any order
to make, or the making of, any contract of sale of any commodity
for future delivery, or other agreement, contract, or transaction
subject to paragraphs (1) and (2) of section 5a(g), that is made,
or to be made, for or on behalf of, or with, any other person,
other than on or subject to the rules of a designated contract
market—
‘‘(A) to cheat or defraud or attempt to cheat or defraud
the other person;

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122 STAT. 2195

‘‘(B) willfully to make or cause to be made to the
other person any false report or statement or willfully
to enter or cause to be entered for the other person any
false record;
‘‘(C) willfully to deceive or attempt to deceive the other
person by any means whatsoever in regard to any order
or contract or the disposition or execution of any order
or contract, or in regard to any act of agency performed,
with respect to any order or contract for or, in the case
of paragraph (2), with the other person; or
‘‘(D)(i) to bucket an order if the order is either represented by the person as an order to be executed, or
is required to be executed, on or subject to the rules of
a designated contract market; or
‘‘(ii) to fill an order by offset against the order or
orders of any other person, or willfully and knowingly
and without the prior consent of the other person to become
the buyer in respect to any selling order of the other
person, or become the seller in respect to any buying order
of the other person, if the order is either represented by
the person as an order to be executed, or is required to
be executed, on or subject to the rules of a designated
contract market unless the order is executed in accordance
with the rules of the designated contract market.
‘‘(b) CLARIFICATION.—Subsection (a)(2) of this section shall not
obligate any person, in or in connection with a transaction in
a contract of sale of a commodity for future delivery, or other
agreement, contract or transaction subject to paragraphs (1) and
(2) of section 5a(g), with another person, to disclose to the other
person nonpublic information that may be material to the market
price, rate, or level of the commodity or transaction, except as
necessary to make any statement made to the other person in
or in connection with the transaction not misleading in any material
respect.’’.

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SEC. 13103. CRIMINAL AND CIVIL PENALTIES.

(a) ENFORCEMENT POWERS OF THE COMMISSION.—Section 6(c)
of the Commodity Exchange Act (7 U.S.C. 9, 15) is amended in
clause (3) of the 10th sentence—
(1) by inserting ‘‘(A)’’ after ‘‘assess such person’’; and
(2) by inserting after ‘‘each such violation’’ the following:
‘‘, or (B) in any case of manipulation or attempted manipulation
in violation of this subsection, subsection (d) of this section,
or section 9(a)(2), a civil penalty of not more than the greater
of $1,000,000 or triple the monetary gain to the person for
each such violation,’’.
(b) NONENFORCEMENT OF RULES OF GOVERNMENT OR OTHER
VIOLATIONS.—Section 6b of such Act (7 U.S.C. 13a) is amended—
(1) in the first sentence, by inserting before the period
at the end the following: ‘‘, or, in any case of manipulation
or attempted manipulation in violation of section 6(c), 6(d),
or 9(a)(2), a civil penalty of not more than $1,000,000 for
each such violation’’; and
(2) in the second sentence, by inserting before the period
at the end the following: ‘‘, except that if the failure or refusal
to obey or comply with the order involved any offense under
section 9(a)(2), the registered entity, director, officer, agent,

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PUBLIC LAW 110–246—JUNE 18, 2008

or employee shall be guilty of a felony and, on conviction,
shall be subject to penalties under section 9(a)(2)’’.
(c) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.—Section 6c(d)
of such Act (7 U.S.C. 13a–1(d)) is amended by striking all that
precedes paragraph (2) and inserting the following:
‘‘(d) CIVIL PENALTIES.—
‘‘(1) IN GENERAL.—In any action brought under this section,
the Commission may seek and the court shall have jurisdiction
to impose, on a proper showing, on any person found in the
action to have committed any violation—
‘‘(A) a civil penalty in the amount of not more than
the greater of $100,000 or triple the monetary gain to
the person for each violation; or
‘‘(B) in any case of manipulation or attempted manipulation in violation of section 6(c), 6(d), or 9(a)(2), a civil
penalty in the amount of not more than the greater of
$1,000,000 or triple the monetary gain to the person for
each violation.’’.
(d) VIOLATIONS GENERALLY.—Section 9(a) of such Act (7 U.S.C.
13(a)) is amended in the matter preceding paragraph (1)—
(1) by striking ‘‘(or $500,000 in the case of a person who
is an individual)’’; and
(2) by striking ‘‘five years’’ and inserting ‘‘10 years’’.
SEC. 13104. AUTHORIZATION OF APPROPRIATIONS.

Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d))
is amended to read as follows:
‘‘(d) There are authorized to be appropriated such sums as
are necessary to carry out this Act for each of the fiscal years
2008 through 2013.’’.
SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS.

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(a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C.
6a(e)) is amended—
(1) by inserting ‘‘or certified by a registered entity pursuant
to section 5c(c)(1)’’ after ‘‘approved by the Commission’’ ; and
(2) by striking ‘‘section 9(c)’’ and inserting ‘‘section 9(a)(5)’’.
(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 6f(c)(4)(B)(i))
is amended by striking ‘‘compiled’’ and inserting ‘‘complied’’.
(c) Section 4k of such Act (7 U.S.C. 6k) is amended by redesignating the second paragraph (5) as paragraph (6).
(d) The Commodity Exchange Act is amended—
(1) by redesignating the first section 4p (7 U.S.C. 6o–
1), as added by section 121 of the Commodity Futures Modernization Act of 2000, as section 4q; and
(2) by moving such section to after the second section
4p, as added by section 206 of Public Law 93–446.
(e) Subsections (a)(1) and (d)(1) of section 5c of such Act (7
U.S.C. 7a–2(a)(1), (d)(1)) are each amended by striking ‘‘5b(d)(2)’’
and inserting ‘‘5b(c)(2)’’.
(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a–2(f), 21(r))
are each amended by striking ‘‘4d(3)’’ and inserting ‘‘4d(c)’’.
(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is amended
in the matter following subparagraph (B)—
(1) by striking ‘‘commenced’’ in the 2nd place it appears;
and
(2) by inserting ‘‘commenced’’ after ‘‘in a judicial proceeding’’.

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(h) Section 9 of such Act (7 U.S.C. 13) is amended—
(1) in subsection (f)(1), by striking the period and inserting
‘‘; or’’; and
(2) by redesignating subsection (f) as subsection (e).
(i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) is amended
by striking ‘‘5b(b)(1)(E)’’ and inserting ‘‘5b(c)(2)(H)’’.
(j) Section 1a(33)(A) of such Act (7 U.S.C. 1a(33)(A)) is amended
by striking ‘‘transactions’’ and all that follows and inserting ‘‘transactions—
‘‘(i) by accepting bids or offers made by other
participants that are open to multiple partipants in
the facility or system; or
‘‘(ii) through the interaction of multiple bids or
multiple offers within a system with a pre-determined
non-discretionary automated trade matching and
execution algorithm.’’.
(k) Section 14(d) of such Act (7 U.S.C. 18(d)) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘If’’; and
(2) by adding after and below the end the following:
‘‘(2) A reparation award shall be directly enforceable in
district court as if it were a judgment pursuant to section
1963 of title 28, United States Code. This paragraph shall
operate retroactively from the effective date of its enactment,
and shall apply to all reparation awards for which a proceeding
described in paragraph (1) is commenced within 3 years of
the date of the Commission’s order.’’.

Reparations.
Applicability.
Deadline.

SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES.

7 USC 2 note.

(a) The Secretary of the Treasury, the Chairman of the Board
of Governors of the Federal Reserve System, the Chairman of
the Securities and Exchange Commission, and the Chairman of
the Commodity Futures Trading Commission shall work to ensure
that the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or both, as appropriate, have taken the actions required under subsection (b).
(b) The SEC, the CFTC, or both, as appropriate, shall take
action under their existing authorities to permit—
(1) by September 30, 2009, risk-based portfolio margining
for security options and security futures products (as defined
in section 1a(32) of the Commodity Exchange Act); and
(2) by June 30, 2009, the trading of futures on certain
security indexes by resolving issues related to foreign security
indexes.

Deadlines.

Subtitle B—Significant Price Discovery
Contracts on Exempt Commercial Markets

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SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS.

(a) DEFINITIONS.—Section la of the Commodity Exchange Act
(7 U.S.C. la) is amended—
(1) by redesignating paragraph (33) as paragraph (34);
and
(2) by inserting after paragraph (32) the following:
‘‘(33) SIGNIFICANT PRICE DISCOVERY CONTRACT.—The term
‘significant price discovery contract’ means an agreement, contract, or transaction subject to section 2(h)(7).’’.

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(b) STANDARDS APPLICABLE TO SIGNIFICANT PRICE DISCOVERY
CONTRACTS.—Section 2(h) of such Act (7 U.S.C. 2(h)) is amended
by adding at the end the following:
‘‘(7) SIGNIFICANT PRICE DISCOVERY CONTRACTS.—
‘‘(A) IN GENERAL.—An agreement, contract, or transaction conducted in reliance on the exemption in paragraph
(3) shall be subject to the provisions of subparagraphs
(B) through (D), under such rules and regulations as the
Commission shall promulgate, provided that the Commission determines, in its discretion, that the agreement, contract, or transaction performs a significant price discovery
function as described in subparagraph (B).
‘‘(B) SIGNIFICANT PRICE DISCOVERY DETERMINATION.—
In making a determination whether an agreement, contract, or transaction performs a significant price discovery
function, the Commission shall consider, as appropriate:
‘‘(i) PRICE LINKAGE.—The extent to which the
agreement, contract, or transaction uses or otherwise
relies on a daily or final settlement price, or other
major price parameter, of a contract or contracts listed
for trading on or subject to the rules of a designated
contract market or a derivatives transaction execution
facility, or a significant price discovery contract traded
on an electronic trading facility, to value a position,
transfer or convert a position, cash or financially settle
a position, or close out a position.
‘‘(ii) ARBITRAGE.—The extent to which the price
for the agreement, contract, or transaction is sufficiently related to the price of a contract or contracts
listed for trading on or subject to the rules of a designated contract market or derivatives transaction
execution facility, or a significant price discovery contract or contracts trading on or subject to the rules
of an electronic trading facility, so as to permit market
participants to effectively arbitrage between the markets by simultaneously maintaining positions or executing trades in the contracts on a frequent and recurring basis.
‘‘(iii) MATERIAL PRICE REFERENCE.—The extent to
which, on a frequent and recurring basis, bids, offers,
or transactions in a commodity are directly based on,
or are determined by referencing, the prices generated
by agreements, contracts, or transactions being traded
or executed on the electronic trading facility.
‘‘(iv) MATERIAL LIQUIDITY.—The extent to which
the volume of agreements, contracts, or transactions
in the commodity being traded on the electronic trading
facility is sufficient to have a material effect on other
agreements, contracts, or transactions listed for trading
on or subject to the rules of a designated contract
market, a derivatives transaction execution facility,
or an electronic trading facility operating in reliance
on the exemption in paragraph (3).
‘‘(v) OTHER MATERIAL FACTORS.—Such other material factors as the Commission specifies by rule as
relevant to determine whether an agreement, contract,

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or transaction serves a significant price discovery function.
‘‘(C) CORE PRINCIPLES APPLICABLE TO SIGNIFICANT
PRICE DISCOVERY CONTRACTS.—
‘‘(i) IN GENERAL.—An electronic trading facility on
which significant price discovery contracts are traded
or executed shall, with respect to those contracts,
comply with the core principles specified in this
subparagraph.
‘‘(ii) CORE PRINCIPLES.—The electronic trading
facility shall have reasonable discretion (including
discretion to account for differences between cleared
and uncleared significant price discovery contracts) in
establishing the manner in which it complies with
the following core principles:
‘‘(I) CONTRACTS NOT READILY SUSCEPTIBLE TO
MANIPULATION.—The electronic trading facility
shall list only significant price discovery contracts
that are not readily susceptible to manipulation.
‘‘(II) MONITORING OF TRADING.—The electronic
trading facility shall monitor trading in significant
price discovery contracts to prevent market
manipulation, price distortion, and disruptions of
the delivery or cash-settlement process through
market surveillance, compliance, and disciplinary
practices and procedures, including methods for
conducting real-time monitoring of trading and
comprehensive and accurate trade reconstructions.
‘‘(III) ABILITY TO OBTAIN INFORMATION.—The
electronic trading facility shall—
‘‘(aa) establish and enforce rules that will
allow the electronic trading facility to obtain
any necessary information to perform any of
the functions described in this subparagraph;
‘‘(bb) provide the information to the
Commission upon request; and
‘‘(cc) have the capacity to carry out such
international information-sharing agreements
as the Commission may require.
‘‘(IV) POSITION LIMITATIONS OR ACCOUNTABILITY.—The electronic trading facility shall
adopt, where necessary and appropriate, position
limitations or position accountability for speculators in significant price discovery contracts,
taking into account positions in other agreements,
contracts, and transactions that are treated by
a derivatives clearing organization, whether registered or not registered, as fungible with such
significant price discovery contracts to reduce the
potential threat of market manipulation or congestion, especially during trading in the delivery
month.
‘‘(V) EMERGENCY AUTHORITY.—The electronic
trading facility shall adopt rules to provide for
the exercise of emergency authority, in consultation or cooperation with the Commission, where

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Regulations.

Regulations.

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necessary
and
appropriate,
including
the
authority—
‘‘(aa) to liquidate open positions in a
significant price discovery contract; and
‘‘(bb) to suspend or curtail trading in a
significant price discovery contract.
‘‘(VI) DAILY PUBLICATION OF TRADING INFORMATION.—The electronic trading facility shall make
public daily information on price, trading volume,
and other trading data to the extent appropriate
for significant price discovery contracts
‘‘(VII) COMPLIANCE WITH RULES.—The electronic trading facility shall monitor and enforce
compliance with any rules of the electronic trading
facility applicable to significant price discovery
contracts, including the terms and conditions of
the contracts and any limitations on access to the
electronic trading facility with respect to the contracts.
‘‘(VIII) CONFLICT OF INTEREST.—The electronic
trading facility, with respect to significant price
discovery contracts, shall—
‘‘(aa) establish and enforce rules to minimize conflicts of interest in its decision-making
process; and
‘‘(bb) establish a process for resolving the
conflicts of interest.
‘‘(IX) ANTITRUST CONSIDERATIONS.—Unless
necessary or appropriate to achieve the purposes
of this Act, the electronic trading facility, with
respect to significant price discovery contracts,
shall endeavor to avoid—
‘‘(aa) adopting any rules or taking any
actions that result in any unreasonable
restraints of trade; or
‘‘(bb) imposing any material anticompetitive burden on trading on the electronic
trading facility.
‘‘(D) IMPLEMENTATION.—
‘‘(i) CLEARING.—The Commission shall take into
consideration differences between cleared and
uncleared significant price discovery contracts when
reviewing the implementation of the core principles
by an electronic trading facility.
‘‘(ii) REVIEW.—As part of the Commission’s continual monitoring and surveillance activities, the
Commission shall, not less frequently than annually,
evaluate, as appropriate, all the agreements, contracts,
or transactions conducted on an electronic trading
facility in reliance on the exemption provided in paragraph (3) to determine whether they serve a significant
price discovery function as described in subparagraph
(B) of this paragraph.’’.

Regulations.

Procedures.

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SEC. 13202. LARGE TRADER REPORTING.

(a) REPORTING AND RECORDKEEPING.—Section 4g(a) of the Commodity Exchange Act (7 U.S.C. 6g(a)) is amended by inserting

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‘‘, and in any significant price discovery contract traded or executed
on an electronic trading facility or any agreement, contract, or
transaction that is treated by a derivatives clearing organization,
whether registered or not registered, as fungible with a significant
price discovery contract’’ after ‘‘elsewhere’’.
(b) REPORTS OF POSITIONS EQUAL TO OR IN EXCESS OF TRADING
LIMITS.—Section 4i of such Act (7 U.S.C. 6i) is amended—
(1) by inserting ‘‘, or any significant price discovery contract
traded or executed on an electronic trading facility or any
agreement, contract, or transaction that is treated by a derivatives clearing organization, whether registered or not registered, as fungible with a significant price discovery contract’’
after ‘‘subject to the rules of any contract market or derivatives
transaction execution facility’’; and
(2) in the matter following paragraph (2), by inserting
‘‘or electronic trading facility’’ after ‘‘subject to the rules of
any other board of trade’’.

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SEC. 13203. CONFORMING AMENDMENTS.

(a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7
U.S.C. 1a(12)(A)(x)) is amended by inserting ‘‘(other than an electronic trading facility with respect to a significant price discovery
contract)’’ after ‘‘registered entity’’.
(b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is amended—
(1) in subparagraph (C), by striking ‘‘and’’ at the end;
(2) in subparagraph (D), by striking the period and
inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(E) with respect to a contract that the Commission
determines is a significant price discovery contract, any
electronic trading facility on which the contract is executed
or traded.’’.
(c) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is amended
by inserting after ‘‘future delivery’’ the following: ‘‘(including significant price discovery contracts)’’.
(d) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is amended
by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4) and (7)’’.
(e) Section 2(h)(4) of such Act (7 U.S.C. 2(h)(4)) is amended—
(1) in subparagraph (B), by inserting ‘‘and, for a significant
price discovery contract, requiring large trader reporting,’’ after
‘‘proscribing fraud’’;
(2) by striking ‘‘and’’ at the end of subparagraph (C); and
(3) by striking subparagraph (D) and inserting the following:
‘‘(D) such rules, regulations, and orders as the Commission may issue to ensure timely compliance with any of
the provisions of this Act applicable to a significant price
discovery contract traded on or executed on any electronic
trading facility; and
‘‘(E) such other provisions of this Act as are applicable
by their terms to significant price discovery contracts or
to registered entities or electronic trading facilities with
respect to significant price discovery contracts.’’.
(f) Section 2(h)(5)(B)(iii)(I) of such Act (7 U.S.C. 2(h)(5)(B)(iii)(I))
is amended by inserting ‘‘or to make the determination described
in subparagraph (B) of paragraph (7)’’ after ‘‘paragraph (4)’’.
(g) Section 4a of such Act (7 U.S.C. 6a) is amended—

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(1) in subsection (a)—
(A) in the first sentence, by inserting ‘‘, or on electronic
trading facilities with respect to a significant price discovery contract’’ after ‘‘derivatives transaction execution
facilities’’; and
(B) in the second sentence, by inserting ‘‘, or on an
electronic trading facility with respect to a significant price
discovery contract,’’ after ‘‘derivatives transaction execution
facility’’; and
(2) in subsection (b)—
(A) in paragraph (1), by inserting ‘‘or electronic trading
facility with respect to a significant price discovery contract’’ after ‘‘facility or facilities’’; and
(B) in paragraph (2), by inserting ‘‘or electronic trading
facility with respect to a significant price discovery contract’’ after ‘‘derivatives transaction execution facility’’; and
(3) in subsection (e)—
(A) in the first sentence—
(i) by inserting ‘‘or by any electronic trading
facility’’ after ‘‘registered by the Commission’’;
(ii) by inserting ‘‘or on an electronic trading
facility’’ after ‘‘derivatives transaction execution
facility’’ the second place it appears; and
(iii) by inserting ‘‘or electronic trading facility’’
before ‘‘or such board of trade’’ each place it appears;
and
(B) in the second sentence, by inserting ‘‘or electronic
trading facility with respect to a significant price discovery
contract’’ after ‘‘registered by the Commission’’.
(h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is amended—
(1) by redesignating paragraphs (4) through (9) as paragraphs (5) through (10); and
(2) by inserting after paragraph (3) the following:
‘‘(4) POSITION LIMITATIONS OR ACCOUNTABILITY.—To reduce
the potential threat of market manipulation or congestion, especially during trading in the delivery month, the derivatives
transaction execution facility shall adopt position limits or position accountability for speculators, where necessary and appropriate for a contract, agreement or transaction with an underlying commodity that has a physically deliverable supply.’’.
(i) Section 5c(a) of such Act (7 U.S.C. 7a–2(a)) is amended
in paragraph (1) by inserting ‘‘, and section 2(h)(7) with respect
to significant price discovery contracts,’’ after ‘‘, and 5b(d)(2)’’.
(j) Section 5c(b) of such Act (7 U.S.C. 7a–2(b)) is amended—
(1) by striking paragraph (1) and inserting the following:
‘‘(1) IN GENERAL.—A contract market, derivatives transaction execution facility, or electronic trading facility with
respect to a significant price discovery contract may comply
with any applicable core principle through delegation of any
relevant function to a registered futures association or a registered entity that is not an electronic trading facility.’’;
(2) in paragraph (2), by striking ‘‘contract market or derivatives transaction execution facility’’ and inserting ‘‘contract
market, derivatives transaction execution facility, or electronic
trading facility’’; and
(3) in paragraph (3), by striking ‘‘contract market or derivatives transaction execution facility’’ each place it appears and

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inserting ‘‘contract market, derivatives transaction execution
facility, or electronic trading facility’’.
(k) Section 5c(d)(1) of such Act (7 U.S.C. 7a–2(d)(1)) is amended
by inserting ‘‘or 2(h)(7)(C) with respect to a significant price discovery contract traded or executed on an electronic trading facility,’’
after ‘‘5b(d)(2)’’.
(l) Section 5e of such Act (7 U.S.C. 7b) is amended by inserting
‘‘, or revocation of the right of an electronic trading facility to
rely on the exemption set forth in section 2(h)(3) with respect
to a significant price discovery contract,’’ after ‘‘revocation of designation as a registered entity’’.
(m) Section 6(b) of the Commodity Exchange Act (7 U.S.C.
8(b)) is amended by striking the first sentence and all that follows
through ‘‘hearing on the record: Provided,’’ and inserting the following:
‘‘The Commission is authorized to suspend for a period not
to exceed 6 months or to revoke the designation or registration
of any contract market or derivatives transaction execution facility,
or to revoke the right of an electronic trading facility to rely on
the exemption set forth in section 2(h)(3) with respect to a significant price discovery contract, on a showing that the contract market
or derivatives transaction execution facility is not enforcing or has
not enforced its rules of government, made a condition of its designation or registration as set forth in sections 5 through 5b or section
5f, or that the contract market or derivatives transaction execution
facility or electronic trading facility, or any director, officer, agent,
or employee thereof, otherwise is violating or has violated any
of the provisions of this Act or any of the rules, regulations, or
orders of the Commission thereunder. Such suspension or revocation
shall only be made after a notice to the officers of the contract
market or derivatives transaction execution facility or electronic
trading facility affected and upon a hearing on the record: Provided,’’.
(n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is amended
by inserting ‘‘section 2(h)(7) or’’ before ‘‘sections 5’’.

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SEC. 13204. EFFECTIVE DATE.

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Notice.

7 USC 2 note.

(a) IN GENERAL.—Except as provided in this section, this subtitle shall become effective on the date of enactment of this Act.
(b) SIGNIFICANT PRICE DISCOVERY STANDARDS RULEMAKING.—
(1) The Commodity Futures Trading Commission shall—
(A) not later than 180 days after the date of the enactment of this Act, issue a proposed rule regarding the
implementation of section 2(h)(7) of the Commodity
Exchange Act; and
(B) not later than 270 days after the date of enactment
of this Act, issue a final rule regarding the implementation.
(2) In its rulemaking pursuant to paragraph (1) of this
subsection, the Commission shall include the standards, terms,
and conditions under which an electronic trading facility will
have the responsibility to notify the Commission that an agreement, contract, or transaction conducted in reliance on the
exemption provided in section 2(h)(3) of the Commodity
Exchange Act may perform a price discovery function.
(c) SIGNIFICANT PRICE DISCOVERY DETERMINATIONS.—With
respect to any electronic trading facility operating on the effective
date of the final rule issued pursuant to subsection (b)(1), the

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Deadline.

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Commission shall complete a review of the agreements, contracts,
and transactions of the facility not later than 180 days after that
effective date to determine whether any such agreement, contract,
or transaction performs a significant price discovery function.

TITLE XIV—MISCELLANEOUS
Subtitle A—Socially Disadvantaged Producers and Limited Resource Producers
SEC. 14001. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF
AGRICULTURE ON INDIAN RESERVATIONS.

Section 2501(g)(1) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended—
(1) in the first sentence—
(A) by striking ‘‘Agricultural Stabilization and Conservation Service, Soil Conservation Service, and Farmers
Home Administration offices’’ and inserting ‘‘Farm Service
Agency and Natural Resources Conservation Service’’; and
(B) by inserting ‘‘where there has been a need demonstrated’’ after ‘‘include’’; and
(2) by striking the second sentence.
SEC. 14002. FORECLOSURE.

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(a) IN GENERAL.—Section 331A of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1981a) is amended:
(1) by inserting ‘‘(a)’’ after ‘‘SEC. 331A.’’; and
(2) by adding at the end the following:
‘‘(b) MORATORIUM.—
‘‘(1) IN GENERAL.—Subject to the other provisions of this
subsection, effective beginning on the date of the enactment
of this subsection, there shall be in effect a moratorium, with
respect to farmer program loans made under subtitle A, B,
or C, on all acceleration and foreclosure proceedings instituted
by the Department of Agriculture against any farmer or rancher
who—
‘‘(A) has pending against the Department a claim of
program discrimination that is accepted by the Department
as valid; or
‘‘(B) files a claim of program discrimination that is
accepted by the Department as valid.
‘‘(2) WAIVER OF INTEREST AND OFFSETS.—During the period
of the moratorium, the Secretary shall waive the accrual of
interest and offsets on all farmer program loans made under
subtitle A, B, or C for which loan acceleration or foreclosure
proceedings have been suspended under paragraph (1).
‘‘(3) TERMINATION OF MORATORIUM.—The moratorium shall
terminate with respect to a claim of discrimination by a farmer
or rancher on the earlier of—
‘‘(A) the date the Secretary resolves the claim; or
‘‘(B) if the farmer or rancher appeals the decision of
the Secretary on the claim to a court of competent jurisdiction, the date that the court renders a final decision on
the claim.

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‘‘(4) FAILURE TO PREVAIL.—If a farmer or rancher does
not prevail on a claim of discrimination described in paragraph
(1), the farmer or rancher shall be liable for any interest and
offsets that accrued during the period that loan acceleration
or foreclosure proceedings have been suspended under paragraph (1).’’.
(b) FORECLOSURE REPORT.—
(1) IN GENERAL.—Not later than 1 year after the date
of the enactment of this Act, the Inspector General of the
Department of Agriculture (referred to in this subsection as
the ‘‘Inspector General’’) shall determine whether decisions of
the Department to implement foreclosure proceedings with
respect to farmer program loans made under subtitle A, B,
or C of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1922 et seq.) to socially disadvantaged farmers or
ranchers during the 5-year period preceding the date of the
enactment of this Act were consistent and in conformity with
the applicable laws (including regulations) governing loan foreclosures.
(2) REPORT.—Not later than 1 year after the date of the
enactment of this Act, the Inspector General shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that describes the determination of
the Inspector General under paragraph (1).
SEC. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM
CERTAIN DEPARTMENT OF AGRICULTURE AGENCIES.

Section 2501A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279–1) is amended by adding at
the end the following new subsection:
‘‘(e) RECEIPT FOR SERVICE OR DENIAL OF SERVICE.—In any
case in which a current or prospective producer or landowner,
in person or in writing, requests from the Farm Service Agency,
the Natural Resources Conservation Service, or an agency of the
Rural Development Mission Area any benefit or service offered
by the Department to agricultural producers or landowners and,
at the time of the request, also requests a receipt, the Secretary
shall issue, on the date of the request, a receipt to the producer
or landowner that contains—
‘‘(1) the date, place, and subject of the request; and
‘‘(2) the action taken, not taken, or recommended to the
producer or landowner.’’.

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SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY
DISADVANTAGED FARMERS OR RANCHERS.

(a) OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.—
(1) PROGRAM REQUIREMENTS.—Paragraph (2) of section
2501(a) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279(a)) is amended to read as follows:
‘‘(2) REQUIREMENTS.—The outreach and technical assistance program under paragraph (1) shall be used exclusively—
‘‘(A) to enhance coordination of the outreach, technical
assistance, and education efforts authorized under agriculture programs; and
‘‘(B) to assist the Secretary in—

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‘‘(i) reaching current and prospective socially disadvantaged farmers or ranchers in a linguistically
appropriate manner; and
‘‘(ii) improving the participation of those farmers
and ranchers in Department programs, as reported
under section 2501A.’’.
(2) GRANTS AND CONTRACTS UNDER PROGRAM.—Section
2501(a)(3) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 2279(a)(3)) is amended—
(A) in subparagraph (A), by striking ‘‘entity to provide
information’’ and inserting ‘‘entity that has demonstrated
an ability to carry out the requirements described in paragraph (2) to provide outreach’’; and
(B) by adding at the end the following new subparagraph:
‘‘(D) REPORT.—The Secretary shall submit to the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of
the Senate, and make publicly available, an annual report
that includes a list of the following:
‘‘(i) The recipients of funds made available under
the program.
‘‘(ii) The activities undertaken and services provided.
‘‘(iii) The number of current and prospective
socially disadvantaged farmers or ranchers served and
outcomes of such service.
‘‘(iv) The problems and barriers identified by entities in trying to increase participation by current and
prospective socially disadvantaged farmers or
ranchers.’’.
(3) FUNDING AND LIMITATION ON USE OF FUNDS.—Section
2501(a)(4) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 2279(a)(4)) is amended—
(A) by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) IN GENERAL.—Of the funds of the Commodity
Credit Corporation, the Secretary shall make available to
carry out this section—
‘‘(i) $15,000,000 for fiscal year 2009; and
‘‘(ii) $20,000,000 for each of fiscal years 2010
through 2012.’’.
(B) by adding at the end the following new subparagraph:
‘‘(C) LIMITATION ON USE OF FUNDS FOR ADMINISTRATIVE
EXPENSES.—Not more than 5 percent of the amounts made
available under subparagraph (A) for a fiscal year may
be used for expenses related to administering the program
under this section.’’.
(b) ELIGIBLE ENTITY DEFINED.—Section 2501(e)(5)(A)(ii) of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e)(5)(A)(ii)) is amended by striking ‘‘work with socially disadvantaged farmers or ranchers during the 2-year period’’ and
inserting ‘‘work with, and on behalf of, socially disadvantaged
farmers or ranchers during the 3-year period’’.

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SEC. 14005. ACCURATE DOCUMENTATION IN THE CENSUS OF AGRICULTURE AND CERTAIN STUDIES.

Section 2501 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 2279) is amended by adding at the end
the following:
‘‘(h) ACCURATE DOCUMENTATION.—The Secretary shall ensure,
to the maximum extent practicable, that the Census of Agriculture
and studies carried out by the Economic Research Service accurately
document the number, location, and economic contributions of
socially disadvantaged farmers or ranchers in agricultural production.’’.

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SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED FARMERS OR RANCHERS.

Section 2501A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279–1) is amended by striking subsection (c) and inserting the following new subsections:
‘‘(c) COMPILATION OF PROGRAM PARTICIPATION DATA.—
‘‘(1) ANNUAL REQUIREMENT.—For each county and State
in the United States, the Secretary of Agriculture (referred
to in this section as the ‘Secretary’) shall annually compile
program application and participation rate data regarding
socially disadvantaged farmers or ranchers by computing for
each program of the Department of Agriculture that serves
agricultural producers and landowners—
‘‘(A) raw numbers of applicants and participants by
race, ethnicity, and gender, subject to appropriate privacy
protections, as determined by the Secretary; and
‘‘(B) the application and participation rate, by race,
ethnicity, and gender, as a percentage of the total participation rate of all agricultural producers and landowners.
‘‘(2) AUTHORITY TO COLLECT DATA.—The heads of the agencies of the Department of Agriculture shall collect and transmit
to the Secretary any data, including data on race, gender,
and ethnicity, that the Secretary determines to be necessary
to carry out paragraph (1).
‘‘(3) REPORT.—Using the technologies and systems of the
National Agricultural Statistics Service, the Secretary shall
compile and present the data compiled under paragraph (1)
for each program described in that paragraph in a manner
that includes the raw numbers and participation rates for—
‘‘(A) the entire United States;
‘‘(B) each State; and
‘‘(C) each county in each State.
‘‘(4) PUBLIC AVAILABILITY OF REPORT.—The Secretary shall
maintain and make readily available to the public, via website
and otherwise in electronic and paper form, the report described
in paragraph (3).
‘‘(d) LIMITATIONS ON USE OF DATA.—
‘‘(1) PRIVACY PROTECTIONS.—In carrying out this section,
the Secretary shall not disclose the names or individual data
of any program participant.
‘‘(2) AUTHORIZED USES.—The data under this section shall
be used exclusively for the purposes described in subsection
(a).

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‘‘(3) LIMITATION.—Except as otherwise provided, the data
under this section shall not be used for the evaluation of
individual applications for assistance.’’.

7 USC 2279–1
note.

SEC. 14007. OVERSIGHT AND COMPLIANCE.

7 USC 2279 note.

SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE.

Deadline.

(a) ESTABLISHMENT.—Not later than 18 months after the date
of the enactment of this Act, the Secretary of Agriculture shall
establish an advisory committee, to be known as the ‘‘Advisory
Committee on Minority Farmers’’ (in this section referred to as
the ‘‘Committee’’).
(b) DUTIES.—The Committee shall provide advice to the Secretary on—
(1) the implementation of section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279);
(2) methods of maximizing the participation of minority
farmers and ranchers in Department of Agriculture programs;
and
(3) civil rights activities within the Department as such
activities relate to participants in such programs.
(c) MEMBERSHIP.—
(1) IN GENERAL.—The Committee shall be composed of not
more than 15 members, who shall be appointed by the Secretary, and shall include—
(A) not less than four socially disadvantaged farmers
or ranchers (as defined in section 2501(e)(2) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e)(2)));
(B) not less than two representatives of nonprofit
organizations with a history of working with minority
farmers and ranchers;
(C) not less than two civil rights professionals;
(D) not less than two representatives of institutions
of higher education with demonstrated experience working
with minority farmers and ranchers; and
(E) such other persons as the Secretary considers
appropriate.
(2) EX-OFFICIO MEMBERS.—The Secretary may appoint such
employees of the Department of Agriculture as the Secretary
considers appropriate to serve as ex-officio members of the
Committee.

The Secretary, acting through the Assistant Secretary for Civil
Rights of the Department of Agriculture, shall use the reports
described in subsection (c) of section 2501A of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279–1), as amended
by section 14006, in the conduct of oversight and evaluation of
civil rights compliance.

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SEC. 14009. NATIONAL APPEALS DIVISION.

Section 280 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 7000) is amended—
(1) by striking ‘‘On the return’’ and inserting the following:
‘‘(a) IN GENERAL.—On the return’’; and
(2) by adding at the end the following:
‘‘(b) REPORTS.—

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‘‘(1) IN GENERAL.—Not later than 180 days after the date
of the enactment of this subsection, and every 180 days thereafter, the head of each agency shall submit to the Committee
on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate,
and publish on the website of the Department, a report that
includes—
‘‘(A) a description of all cases returned to the agency
during the period covered by the report pursuant to a
final determination of the Division;
‘‘(B) the status of implementation of each final determination; and
‘‘(C) if the final determination has not been implemented—
‘‘(i) the reason that the final determination has
not been implemented; and
‘‘(ii) the projected date of implementation of the
final determination.
‘‘(2) UPDATES.—Each month, the head of each agency shall
publish on the website of the Department any updates to the
reports submitted under paragraph (1).’’.
SEC. 14010. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS,
AND ACTIONS.

Each year, the Secretary shall—
(1) prepare a report that describes, for each agency of
the Department of Agriculture—
(A) the number of civil rights complaints filed that
relate to the agency, including whether a complaint is
a program complaint or an employment complaint;
(B) the length of time the agency took to process each
civil rights complaint;
(C) the number of proceedings brought against the
agency, including the number of complaints described in
paragraph (1) that were resolved with a finding of discrimination; and
(D) the number and type of personnel actions taken
by the agency following resolution of civil rights complaints;
(2) submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a copy of the report; and
(3) make the report available to the public by posting
the report on the website of the Department.

Website.

Website.

7 USC 2279–2.

Public
information.
Website.

SEC. 14011. SENSE OF CONGRESS RELATING TO CLAIMS BROUGHT
BY SOCIALLY DISADVANTAGED FARMERS OR RANCHERS.

It is the sense of Congress that all pending claims and class
actions brought against the Department of Agriculture by socially
disadvantaged farmers or ranchers (as defined in section 355(e)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e)), including Native American, Hispanic, and female farmers
or ranchers, based on racial, ethnic, or gender discrimination in
farm program participation should be resolved in an expeditious
and just manner.
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SEC. 14012. DETERMINATION ON MERITS OF PIGFORD CLAIMS.

(a) DEFINITIONS.—In this section:

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PUBLIC LAW 110–246—JUNE 18, 2008

(1) CONSENT DECREE.—The term ‘‘consent decree’’ means
the consent decree in the case of Pigford v. Glickman, approved
by the United States District Court for the District of Columbia
on April 14, 1999.
(2) DEPARTMENT.—The term ‘‘Department’’ means the
Department of Agriculture.
(3) PIGFORD CLAIM.—The term ‘‘Pigford claim’’ means a
discrimination complaint, as defined by section 1(h) of the consent decree and documented under section 5(b) of the consent
decree.
(4) PIGFORD CLAIMANT.—The term ‘‘Pigford claimant’’
means an individual who previously submitted a late-filing
request under section 5(g) of the consent decree.
(b) DETERMINATION ON MERITS.—Any Pigford claimant who
has not previously obtained a determination on the merits of a
Pigford claim may, in a civil action brought in the United States
District Court for the District of Columbia, obtain that determination.
(c) LIMITATION.—
(1) IN GENERAL.—Subject to paragraph (2), all payments
or debt relief (including any limitation on foreclosure under
subsection (h)) shall be made exclusively from funds made
available under subsection (i).
(2) MAXIMUM AMOUNT.—The total amount of payments and
debt relief pursuant to actions commenced under subsection
(b) shall not exceed $100,000,000.
(d) INTENT OF CONGRESS AS TO REMEDIAL NATURE OF SECTION.—It is the intent of Congress that this section be liberally
construed so as to effectuate its remedial purpose of giving a full
determination on the merits for each Pigford claim previously
denied that determination.
(e) LOAN DATA.—
(1) REPORT TO PERSON SUBMITTING PETITION.—
(A) IN GENERAL.—Not later than 120 days after the
Secretary receives notice of a complaint filed by a claimant
under subsection (b), the Secretary shall provide to the
claimant a report on farm credit loans and noncredit benefits, as appropriate, made within the claimant’s county
(or if no documents are found, within an adjacent county
as determined by the claimant), by the Department during
the period beginning on January 1 of the year preceding
the period covered by the complaint and ending on
December 31 of the year following the period.
(B) REQUIREMENTS.—A report under subparagraph (A)
shall contain information on all persons whose application
for a loan or benefit was accepted, including—
(i) the race of the applicant;
(ii) the date of application;
(iii) the date of the loan or benefit decision, as
appropriate;
(iv) the location of the office making the loan or
benefit decision, as appropriate;
(v) all data relevant to the decisionmaking process
for the loan or benefit, as appropriate; and
(vi) all data relevant to the servicing of the loan
or benefit, as appropriate.

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122 STAT. 2211

(2) NO PERSONALLY IDENTIFIABLE INFORMATION.—The
reports provided pursuant to paragraph (1) shall not contain
any information that would identify any person who applied
for a loan from the Department.
(3) REPORTING DEADLINE.—
(A) IN GENERAL.—The Secretary shall—
(i) provide to claimants the reports required under
paragraph (1) as quickly as practicable after the Secretary receives notice of a complaint filed by a claimant
under subsection (b); and
(ii) devote such resources of the Department as
are necessary to make providing the reports expeditiously a high priority of the Department.
(B) EXTENSION.—A court may extend the deadline for
providing the report required in a particular case under
paragraph (1) if the Secretary establishes that meeting
the deadline is not feasible and demonstrates a continuing
effort and commitment to provide the required report
expeditiously.
(f) EXPEDITED RESOLUTIONS AUTHORIZED.—
(1) IN GENERAL.—Any person filing a complaint under this
section for discrimination in the application for, or making
or servicing of, a farm loan, at the discretion of the person,
may seek liquidated damages of $50,000, discharge of the debt
that was incurred under, or affected by, the 1 or more programs
that were the subject of the 1 or more discrimination claims
that are the subject of the person’s complaint, and a tax payment in the amount equal to 25 percent of the liquidated
damages and loan principal discharged, in which case—
(A) if only such damages, debt discharge, and tax payment are sought, the complainant shall be able to prove
the case of the complainant by substantial evidence (as
defined in section 1(l) of the consent decree); and
(B) the court shall decide the case based on a review
of documents submitted by the complainant and defendant
relevant to the issues of liability and damages.
(2) NONCREDIT CLAIMS.—
(A) STANDARD.—In any case in which a claimant
asserts a noncredit claim under a benefit program of the
Department, the court shall determine the merits of the
claim in accordance with section 9(b)(i) of the consent
decree.
(B) RELIEF.—A claimant who prevails on a claim of
discrimination involving a noncredit benefit program of
the Department shall be entitled to a payment by the
Department in a total amount of $3,000, without regard
to the number of such claims on which the claimant prevails.
(g) ACTUAL DAMAGES.—A claimant who files a claim under
this section for discrimination under subsection (b) but not under
subsection (f) and who prevails on the claim shall be entitled
to actual damages sustained by the claimant.
(h) LIMITATION ON FORECLOSURES.—Notwithstanding any other
provision of law, during the pendency of a Pigford claim, the Secretary may not begin acceleration on or foreclosure of a loan if—
(1) the borrower is a Pigford claimant; and

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122 STAT. 2212

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(2) makes a prima facie case in an appropriate administrative proceeding that the acceleration or foreclosure is related
to a Pigford claim.
(i) FUNDING.—
(1) IN GENERAL.—Of the funds of the Commodity Credit
Corporation, the Secretary shall make available for payments
and debt relief in satisfaction of claims against the United
States under subsection (b) and for any actions under subsection
(g) $100,000,000 for fiscal year 2008, to remain available until
expended.
(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to
funds made available under paragraph (1), there are authorized
to be appropriated such sums as are necessary to carry out
this section.
(j) REPORTING REQUIREMENTS.—
(1) IN GENERAL.—Not later than 180 days after the date
of the enactment of this Act and every 180 days thereafter
until the funds made available under subsection (i) are depleted,
the Secretary shall submit to the Committee on the Judiciary
of the House of Representatives and the Committee on the
Judiciary of the Senate a report that describes the status of
available funds under subsection (i) and the number of pending
claims under subsection (f).
(2) DEPLETION OF FUNDS REPORT.—In addition to the
reports required under paragraph (1), the Secretary shall
submit to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate a report that notifies the Committees when 75 percent
of the funds made available under subsection (i)(1) have been
depleted.
(k) TERMINATION OF AUTHORITY.—The authority to file a claim
under this section terminates 2 years after the date of the enactment of this Act.
SEC. 14013. OFFICE OF ADVOCACY AND OUTREACH.

(a) IN GENERAL.—The Department of Agriculture Reorganization Act of 1994 is amended by inserting after section 226A (7
U.S.C. 6933) the following:

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7 USC 6934.

‘‘SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BEGINNING FARMER OR RANCHER.—The term ‘beginning
farmer or rancher’ has the meaning given the term in section
343(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1991(a)).
‘‘(2) OFFICE.—The term ‘Office’ means the Office of
Advocacy and Outreach established under this section.
‘‘(3) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The
term ‘socially disadvantaged farmer or rancher’ has the
meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
‘‘(b) ESTABLISHMENT AND PURPOSE.—
‘‘(1) IN GENERAL.—The Secretary shall establish within the
executive operations of the Department an office to be known
as the ‘Office of Advocacy and Outreach’—
‘‘(A) to improve access to programs of the Department;
and
‘‘(B) to improve the viability and profitability of—

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122 STAT. 2213

‘‘(i) small farms and ranches;
‘‘(ii) beginning farmers or ranchers; and
‘‘(iii) socially disadvantaged farmers or ranchers.
‘‘(2) DIRECTOR.—The Office shall be headed by a Director,
to be appointed by the Secretary from among the competitive
service.
‘‘(c) DUTIES.—The duties of the Office shall be to ensure small
farms and ranches, beginning farmers or ranchers, and socially
disadvantaged farmers or ranchers access to, and equitable participation in, programs and services of the Department by—
‘‘(1) establishing and monitoring the goals and objectives
of the Department to increase participation in programs of
the Department by small, beginning, or socially disadvantaged
farmers or ranchers;
‘‘(2) assessing the effectiveness of Department outreach
programs;
‘‘(3) developing and implementing a plan to coordinate outreach activities and services provided by the Department;
‘‘(4) providing input to the agencies and offices on programmatic and policy decisions;
‘‘(5) measuring outcomes of the programs and activities
of the Department on small farms and ranches, beginning
farmers or ranchers, and socially disadvantaged farmers or
ranchers programs;
‘‘(6) recommending new initiatives and programs to the
Secretary; and
‘‘(7) carrying out any other related duties that the Secretary
determines to be appropriate.
‘‘(d) SOCIALLY DISADVANTAGED FARMERS GROUP.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish within
the Office the Socially Disadvantaged Farmers Group.
‘‘(2) OUTREACH AND ASSISTANCE.—The Socially Disadvantaged Farmers Group—
‘‘(A) shall carry out section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279); and
‘‘(B) in the case of activities described in section 2501(a)
of that Act, may conduct such activities through other
agencies and offices of the Department.
‘‘(3) SOCIALLY DISADVANTAGED FARMERS AND FARMWORKERS.—The Socially Disadvantaged Farmers Group shall
oversee the operations of—
‘‘(A) the Advisory Committee on Minority Farmers
established under section 14009 of the Food, Conservation,
and Energy Act of 2008; and
‘‘(B) the position of Farmworker Coordinator established under subsection (f).
‘‘(4) OTHER DUTIES.—
‘‘(A) IN GENERAL.—The Socially Disadvantaged
Farmers Group may carry out other duties to improve
access to, and participation in, programs of the Department
by socially disadvantaged farmers or ranchers, as determined by the Secretary.
‘‘(B) OFFICE OF OUTREACH AND DIVERSITY.—The Office
of Advocacy and Outreach shall carry out the functions
and duties of the Office of Outreach and Diversity carried
out by the Assistant Secretary for Civil Rights as such

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PUBLIC LAW 110–246—JUNE 18, 2008

functions and duties existed immediately before the date
of the enactment of this section.
‘‘(e) SMALL FARMS AND BEGINNING FARMERS AND RANCHERS
GROUP.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish within
the Office the Small Farms and Beginning Farmers and
Ranchers Group.
‘‘(2) DUTIES.—
‘‘(A) OVERSEE OFFICES.—The Small Farms and Beginning Farmers and Ranchers Group shall oversee the operations of the Office of Small Farms Coordination established by Departmental Regulation 9700-1 (August 3, 2006).
‘‘(B) BEGINNING FARMER AND RANCHER DEVELOPMENT
PROGRAM.—The Small Farms and Beginning Farmers and
Ranchers Group shall consult with the National Institute
for Food and Agriculture on the administration of the beginning farmer and rancher development program established
under section 7405 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f).
‘‘(C) ADVISORY COMMITTEE FOR BEGINNING FARMERS
AND RANCHERS.—The Small Farms and Beginning Farmers
and Ranchers Group shall coordinate the activities of the
Group with the Advisory Committee for Beginning Farmers
and Ranchers established under section 5(b) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1621 note;
Public Law 102–554).
‘‘(D) OTHER DUTIES.—The Small Farms and Beginning
Farmers and Ranchers Group may carry out other duties
to improve access to, and participation in, programs of
the Department by small farms and ranches and beginning
farmers or ranchers, as determined by the Secretary.
‘‘(f) FARMWORKER COORDINATOR.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish within
the Office the position of Farmworker Coordinator (referred
to in this subsection as the ‘Coordinator’).
‘‘(2) DUTIES.—The Secretary shall delegate to the Coordinator responsibility for the following:
‘‘(A) Assisting in administering the program established by section 2281 of the Food, Agriculture, Conservation, and Trade Act of 1990 (42 U.S.C. 5177a).
‘‘(B) Serving as a liaison to community-based nonprofit
organizations that represent and have demonstrated
experience serving low-income migrant and seasonal farmworkers.
‘‘(C) Coordinating with the Department, other Federal
agencies, and State and local governments to ensure that
farmworker needs are assessed and met during declared
disasters and other emergencies.
‘‘(D) Consulting within the Office and with other entities to better integrate farmworker perspectives, concerns,
and interests into the ongoing programs of the Department.
‘‘(E) Consulting with appropriate institutions on
research, program improvements, or agricultural education
opportunities that assist low-income and migrant seasonal
farmworkers.
‘‘(F) Assisting farmworkers in becoming agricultural
producers or landowners.

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 2215

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary to
carry out this subsection for each of fiscal years 2009 through
2012.’’.
(b) CONFORMING AMENDMENT.—Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)),
as amended by section 7511(b), is further amended—
(1) in paragraph (5), by striking ‘‘; or’’ and inserting ‘‘;’’;
(2) in paragraph (6), by striking the period and inserting
‘‘; or’’; and
(3) by adding at the end the following new paragraph:
‘‘(7) the authority of the Secretary to establish in the
Department the Office of Advocacy and Outreach in accordance
with section 226B.’’.

Subtitle B—Agricultural Security
SEC. 14101. SHORT TITLE.

This subtitle may be cited as the ‘‘Agricultural Security
Improvement Act of 2008’’.

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SEC. 14102. DEFINITIONS.

Agricultural
Security
Improvement
Act of 2008.
7 USC 8901 note.

7 USC 8901.

In this subtitle:
(1) AGENT.—The term ‘‘agent’’ means a nuclear, biological,
chemical, or radiological substance that causes agricultural disease or the adulteration of products regulated by the Secretary
of Agriculture under any provision of law.
(2) AGRICULTURAL BIOSECURITY.—The term ‘‘agricultural
biosecurity’’ means protection from an agent that poses a threat
to—
(A) plant or animal health;
(B) public health as it relates to the adulteration of
products regulated by the Secretary of Agriculture under
any provision of law that is caused by exposure to an
agent; or
(C) the environment as it relates to agriculture facilities, farmland, and air and water within the immediate
vicinity of an area associated with an agricultural disease
or outbreak.
(3) AGRICULTURAL COUNTERMEASURE.—The term ‘‘agricultural countermeasure’’—
(A) means a product, practice, or technology that is
intended to enhance or maintain the agricultural biosecurity of the United States; and
(B) does not include a product, practice, or technology
used solely in response to a human medical incident or
public health emergency not related to agriculture.
(4) AGRICULTURAL DISEASE.—The term ‘‘agricultural disease’’ has the meaning given the term by the Secretary.
(5) AGRICULTURAL DISEASE EMERGENCY.—The term ‘‘agricultural disease emergency’’ means an incident of agricultural
disease that requires prompt action to prevent significant damage to people, plants, or animals.
(6) AGROTERRORIST ACT.—The term ‘‘agroterrorist act’’
means an act that—
(A) causes or attempts to cause—

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122 STAT. 2216

PUBLIC LAW 110–246—JUNE 18, 2008
(i) damage to agriculture; or
(ii) injury to a person associated with agriculture;
and
(B) is committed or appears to be committed with
the intent to—
(i) intimidate or coerce a civilian population; or
(ii) disrupt the agricultural industry in order to
influence the policy of a government by intimidation
or coercion.
(7) ANIMAL.—The term ‘‘animal’’ has the meaning given
the term in section 10403 of the Animal Health Protection
Act of 2002 (7 U.S.C. 8302).
(8) DEPARTMENT.—The term ‘‘Department’’ means the
Department of Agriculture.
(9) DEVELOPMENT.—The term ‘‘development’’ means—
(A) research leading to the identification of products
or technologies intended for use as agricultural countermeasures to protect animal health;
(B) the formulation, production, and subsequent modification of those products or technologies;
(C) the conduct of in vitro and in vivo studies;
(D) the conduct of field, efficacy, and safety studies;
(E) the preparation of an application for marketing
approval for submission to an applicable agency; or
(F) other actions taken by an applicable agency in
a case in which an agricultural countermeasure is procured
or used prior to issuance of a license or other form of
Federal Government approval.
(10) PLANT.—The term ‘‘plant’’ has the meaning given the
term in section 411 of the Plant Protection Act of 2000 (7
U.S.C. 7702).
(11) QUALIFIED AGRICULTURAL COUNTERMEASURE.—The
term ‘‘qualified agricultural countermeasure’’ means an agricultural countermeasure that the Secretary, in consultation with
the Secretary of Homeland Security, determines to be a priority
in order to address an agricultural biosecurity threat.
CHAPTER 1—AGRICULTURAL SECURITY

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7 USC 8911.

SEC. 14111. OFFICE OF HOMELAND SECURITY.

(a) ESTABLISHMENT.—There is established within the Department the Office of Homeland Security (in this section referred
to as the ‘‘Office’’).
(b) DIRECTOR.—The Office shall be headed by a Director of
Homeland Security, who shall be appointed by the Secretary.
(c) RESPONSIBILITIES.—The Director of Homeland Security
shall—
(1) coordinate all homeland security activities of the
Department, including integration and coordination of interagency emergency response plans for—
(A) agricultural disease emergencies;
(B) agroterrorist acts; and
(C) other threats to agricultural biosecurity;
(2) act as the primary liaison on behalf of the Department
with other Federal departments and agencies on the coordination of efforts and interagency activities pertaining to agricultural biosecurity; and

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(3) advise the Secretary on policies, regulations, processes,
budget, and actions pertaining to homeland security.
SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.

7 USC 8912.

(a) ESTABLISHMENT.—The Secretary shall establish a communication center within the Department to—
(1) collect and disseminate information and prepare for
an agricultural disease emergency, agroterrorist act, or other
threat to agricultural biosecurity; and
(2) coordinate activities described in paragraph (1) among
agencies and offices within the Department.
(b) RELATION TO EXISTING DHS COMMUNICATION SYSTEMS.—
(1) CONSISTENCY AND COORDINATION.—The communication
center established under subsection (a) shall, to the maximum
extent practicable, share and coordinate the dissemination of
timely information with the Department of Homeland Security
and other communication systems of appropriate Federal
departments and agencies.
(2) AVOIDING REDUNDANCIES.—Paragraph (1) shall not be
construed to impede, conflict with, or duplicate the communications activities performed by the Secretary of Homeland Security under any provision of law.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated such sums as may be necessary to carry out
this section for each of fiscal years 2008 through 2012.
SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL BIOSECURITY PLANNING, PREPAREDNESS, AND
RESPONSE.

7 USC 8913.

(a) ADVANCED TRAINING PROGRAMS.—
(1) GRANT ASSISTANCE.—The Secretary shall establish a
competitive grant program to support the development and
expansion of advanced training programs in agricultural biosecurity planning and response for food science professionals
and veterinarians.
(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary such sums as may
be necessary to carry out this subsection for each of fiscal
years 2008 through 2012.
(b) ASSESSMENT OF RESPONSE CAPABILITY.—
(1) GRANT AND LOAN ASSISTANCE.—The Secretary shall
establish a competitive grant and low-interest loan assistance
program to assist States in assessing agricultural disease
response capability.
(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $25,000,000
for each of fiscal years 2008 through 2012.
CHAPTER 2—OTHER PROVISIONS

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SEC.

14121.

RESEARCH AND DEVELOPMENT
COUNTERMEASURES.

OF

AGRICULTURAL

7 USC 8921.

(a) GRANT PROGRAM.—
(1) COMPETITIVE GRANT PROGRAM.—The Secretary shall
establish a competitive grant program to encourage basic and
applied research and the development of qualified agricultural
countermeasures.

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(2) WAIVER IN EMERGENCIES.—The Secretary may waive
the requirement under paragraph (1) that a grant be provided
on a competitive basis if—
(A) the Secretary has declared a plant or animal disease emergency under the Plant Protection Act (7 U.S.C.
7701 et seq.) or the Animal Health Protection Act (7 U.S.C.
8301 et seq.); and
(B) waiving the requirement would lead to the rapid
development of a qualified agricultural countermeasure,
as determined by the Secretary.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $50,000,000 for each
of fiscal years 2008 through 2012.

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7 USC 8922.

SEC. 14122. AGRICULTURAL BIOSECURITY GRANT PROGRAM.

(a) COMPETITIVE GRANT PROGRAM.—The Secretary shall establish a competitive grant program to promote the development of
teaching programs in agriculture, veterinary medicine, and disciplines closely allied to the food and agriculture system to increase
the number of trained individuals with an expertise in agricultural
biosecurity.
(b) ELIGIBILITY.—The Secretary may award a grant under this
section only to an entity that is—
(1) an accredited school of veterinary medicine; or
(2) a department of an institution of higher education with
a primary focus on—
(A) comparative medicine;
(B) veterinary science; or
(C) agricultural biosecurity.
(c) PREFERENCE.—The Secretary shall give preference in
awarding grants based on the ability of an applicant—
(1) to increase the number of veterinarians or individuals
with advanced degrees in food and agriculture disciplines who
are trained in agricultural biosecurity practice areas;
(2) to increase research capacity in areas of agricultural
biosecurity; or
(3) to fill critical agricultural biosecurity shortage situations
outside of the Federal Government.
(d) USE OF FUNDS..—
(1) IN GENERAL.—Amounts received under this section shall
be used by a grantee to pay—
(A) costs associated with the acquisition of equipment
and other capital costs relating to the expansion of food,
agriculture, and veterinary medicine teaching programs
in agricultural biosecurity;
(B) capital costs associated with the expansion of academic programs that offer postgraduate training for veterinarians or concurrent training for veterinary students in
specific areas of specialization; or
(C) other capacity and infrastructure program costs
that the Secretary considers appropriate.
(2) LIMITATION.—Funds received under this section may
not be used for the construction, renovation, or rehabilitation
of a building or facility.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated sums as are necessary to carry out this section

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122 STAT. 2219

for each of fiscal years 2008 through 2012, to remain available
until expended.

Subtitle C—Other Miscellaneous
Provisions
SEC. 14201. COTTON CLASSIFICATION SERVICES.

Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is
amended to read as follows:

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‘‘SEC. 3a. COTTON CLASSIFICATION SERVICES.

‘‘(a) IN GENERAL.—The Secretary of Agriculture (referred to
in this section as the ‘Secretary’) shall—
‘‘(1) make cotton classification services available to producers of cotton; and
‘‘(2) provide for the collection of classification fees from
participating producers or agents that voluntarily agree to collect and remit the fees on behalf of producers.
‘‘(b) FEES.—
‘‘(1) USE OF FEES.—Classification fees collected under subsection (a)(2) and the proceeds from the sales of samples submitted under this section shall, to the maximum extent practicable, be used to pay the cost of the services provided under
this section, including administrative and supervisory costs.
‘‘(2) ANNOUNCEMENT OF FEES.—The Secretary shall
announce a uniform classification fee and any applicable surcharge for classification services not later than June 1 of the
year in which the fee applies.
‘‘(c) CONSULTATION.—
‘‘(1) IN GENERAL.—In establishing the amount of fees under
this section, the Secretary shall consult with representatives
of the United States cotton industry.
‘‘(2) EXEMPTION.—The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to consultations with representatives of the United States cotton industry under this section.
‘‘(d) CREDITING OF FEES.—Any fees collected under this section
and under section 3d, late payment penalties, the proceeds from
the sales of samples, and interest earned from the investment
of such funds shall—
‘‘(1) be credited to the current appropriation account that
incurs the cost of services provided under this section and
section 3d; and
‘‘(2) remain available without fiscal year limitation to pay
the expenses of the Secretary in providing those services.
‘‘(e) INVESTMENT OF FUNDS.—Funds described in subsection
(d) may be invested—
‘‘(1) by the Secretary in insured or fully collateralized,
interest-bearing accounts; or
‘‘(2) at the discretion of the Secretary, by the Secretary
of the Treasury in United States Government debt instruments.
‘‘(f) LEASE AGREEMENTS.—Notwithstanding any other provision
of law, the Secretary may enter into long-term lease agreements
that exceed 5 years or may take title to property (including through
purchase agreements) for the purpose of obtaining offices to be
used for the classification of cotton in accordance with this Act,

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if the Secretary determines that action would best effectuate the
purposes of this Act.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—To the extent that
financing is not available from fees and the proceeds from the
sales of samples, there are authorized to be appropriated such
sums as are necessary to carry out this section.’’.
SEC. 14202. DESIGNATION OF STATES FOR COTTON RESEARCH AND
PROMOTION.

Section 17(f) of the Cotton Research and Promotion Act (7
U.S.C. 2116(f)) is amended—
(1) by striking ‘‘(f) The term’’ and inserting the following:
‘‘(f) COTTON-PRODUCING STATE.—
‘‘(1) IN GENERAL.—The term’’;
(2) by striking ‘‘more, and the term’’ and all that follows
through the end of the subsection and inserting the following:
‘‘more.
‘‘(2) INCLUSIONS.—The term ‘cotton-producing State’
includes—
‘‘(A) any combination of States described in paragraph
(1); and
‘‘(B) effective beginning with the 2008 crop of cotton,
the States of Kansas, Virginia, and Florida.’’.

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21 USC 864a.

SEC.

14203.
GRANTS
TO
REDUCE
PRODUCTION
OF
METHAMPHETAMINES FROM ANHYDROUS AMMONIA.

(a) DEFINITIONS.—In this section:
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means—
(A) a producer of agricultural commodities;
(B) a cooperative association, a majority of the members of which produce or process agricultural commodities;
or
(C) a person in the trade or business of—
(i) selling an agricultural product (including an
agricultural chemical) at retail, predominantly to
farmers and ranchers; or
(ii) aerial and ground application of an agricultural
chemical.
(2) NURSE TANK.—The term ‘‘nurse tank’’ shall be considered to be a cargo tank (within the meaning of section
173.315(m) of title 49, Code of Federal Regulations, as in effect
as of the date of the enactment of this Act).
(b) GRANT AUTHORITY.—The Secretary may make a grant to
an eligible entity to enable the eligible entity to obtain and add
to an anhydrous ammonia fertilizer nurse tank a physical lock
or a substance to reduce the amount of methamphetamine that
can be produced from any anhydrous ammonia removed from the
nurse tank.
(c) GRANT AMOUNT.—The amount of a grant made under this
section to an eligible entity shall be the product obtained by multiplying—
(1) an amount not less than $40 and not more than $60,
as determined by the Secretary; and
(2) the number of fertilizer nurse tanks of the eligible
entity.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Secretary to make grants under this

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section $15,000,000 for the period of fiscal years 2008 through
2012.
SEC. 14204. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND
TRAINING OF AGRICULTURAL LABOR FORCE.

7 USC 2008q–1.

(a) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term
‘‘eligible entity’’ means an entity described in section 379C(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2008q(a)).
(b) GRANTS.—
(1) IN GENERAL.—To assist agricultural employers and
farmworkers by improving the supply, stability, safety, and
training of the agricultural labor force, the Secretary may provide grants to eligible entities for use in providing services
to assist farmworkers who are citizens or otherwise legally
present in the United States in securing, retaining, upgrading,
or returning from agricultural jobs.
(2) ELIGIBLE SERVICES.—The services referred to in paragraph (1) include—
(A) agricultural labor skills development;
(B) the provision of agricultural labor market information;
(C) transportation;
(D) short-term housing while in transit to an agricultural worksite;
(E) workplace literacy and assistance with English as
a second language;
(F) health and safety instruction, including ways of
safeguarding the food supply of the United States; and
(G) such other services as the Secretary determines
to be appropriate.
(c) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more than
15 percent of the funds made available to carry out this section
for a fiscal year may be used to pay for administrative expenses.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2008 through 2012.

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SEC. 14205. AMENDMENT TO THE RIGHT TO FINANCIAL PRIVACY ACT
OF 1978.

Section 1113(k) of the Right to Financial Privacy Act of 1978
(12 U.S.C. 3413(k)) is amended—
(1) by striking the subsection heading and inserting the
following:
‘‘(k) DISCLOSURE NECESSARY FOR PROPER ADMINISTRATION OF
PROGRAMS OF CERTAIN GOVERNMENT AUTHORITIES.—’’; and
(2) by striking paragraph (2) and inserting the following:
‘‘(2) Nothing in this title shall apply to the disclosure by
the financial institution of information contained in the financial records of any customer to any Government authority that
certifies, disburses, or collects payments, where the disclosure
of such information is necessary to, and such information is
used solely for the purpose of—
‘‘(A) verification of the identity of any person or proper
routing and delivery of funds in connection with the
issuance of a Federal payment or collection of funds by
a Government authority; or

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122 STAT. 2222

PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(B) the investigation or recovery of an improper Federal payment or collection of funds or an improperly negotiated Treasury check.
‘‘(3) Notwithstanding any other provision of law, a request
authorized by paragraph (1) or (2) (and the information contained therein) may be used by the financial institution or
its agents solely for the purpose of providing information contained in the financial records of the customer to the Government authority requesting the information, and the financial
institution and its agents shall be barred from redisclosure
of such information. Any Government authority receiving
information pursuant to paragraph (1) or (2) may not disclose
or use the information, except for the purposes set forth in
such paragraph.’’.

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SEC. 14206. REPORT ON STORED QUANTITIES OF PROPANE.

(a) REPORT.—
(1) IN GENERAL.—Not later than 240 days after the date
of the enactment of this Act, the Secretary of Homeland Security (referred to in this section as the ‘‘Secretary’’) shall submit
to the Committee on Agriculture, Nutrition, and Forestry of
the Senate and the Committee on Agriculture of the House
of Representatives a report describing the effect of interim
or final regulations issued by the Secretary pursuant to section
550(a) of the Department of Homeland Security Appropriations
Act, 2007 (6 U.S.C. 121 note; Public Law 109–295), with respect
to possession of quantities of propane that meet or exceed
the screening threshold quantity for propane established in
the final rule under that section.
(2) INCLUSIONS.—The report under paragraph (1) shall
include a description of—
(A) the number of facilities that completed a top screen
consequence assessment due to possession of quantities
of propane that meet or exceed the listed screening
threshold quantity for propane;
(B) the number of agricultural facilities that completed
the top screen consequence assessment due to possession
of quantities of propane that meet or exceed the listed
screening threshold quantity for propane;
(C) the number of propane facilities initially determined to be high risk by the Secretary;
(D) the number of propane facilities—
(i) required to complete a security vulnerability
assessment or a site security plan; or
(ii) that submit to the Secretary an alternative
security program;
(E) the number of propane facilities that file an appeal
of a finding under the final rule described in paragraph
(1); and
(F) to the extent available, the average cost of—
(i) completing a top screen consequence assessment
requirement;
(ii) completing a security vulnerability assessment;
and
(iii) completing and implementing a site security
plan; and

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(3) FORM.—The report under paragraph (1) shall be submitted in unclassified form, but may include a classified annex.
(b) EDUCATIONAL OUTREACH.—Not later than 30 days after
the date of the enactment of this Act, the Secretary shall conduct
educational outreach activities for rural facilities that may be
required to complete a top screen consequence assessment due
to possession of propane in a quantity that meets or exceeds the
listed screening threshold quantity for propane.

Deadline.

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SEC. 14207. PROHIBITIONS ON DOG FIGHTING VENTURES.

(a) IN GENERAL.—Section 26 of the Animal Welfare Act (7
U.S.C. 2156) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘, if any animal in
the venture was moved in interstate or foreign commerce’’;
and
(B) in the heading of paragraph (2), by striking ‘‘STATE’’
and inserting ‘‘STATE’’;
(2) in subsection (b)—
(A) by striking ‘‘(b) It shall be’’ and inserting the following:
‘‘(b) BUYING, SELLING, DELIVERING, POSSESSING, TRAINING, OR
TRANSPORTING ANIMALS FOR PARTICIPATION IN ANIMAL FIGHTING
VENTURE.—It shall be’’; and
(B) by striking ‘‘transport, deliver’’ and all that follows
through ‘‘participate’’ and inserting ‘‘possess, train, transport, deliver, or receive any animal for purposes of having
the animal participate’’;
(3) in subsection (c)—
(A) by striking ‘‘(c) It shall be’’ and inserting the following:
‘‘(c) USE OF POSTAL SERVICE OR OTHER INTERSTATE INSTRUMENTALITY FOR PROMOTING OR FURTHERING ANIMAL FIGHTING VENTURE.—It shall be’’; and
(B) by inserting ‘‘advertising an animal, or an
instrument described in subsection (e), for use in an animal
fighting venture,’’ after ‘‘for purposes of’’;
(4) in subsection (d), by striking ‘‘(d) Notwithstanding’’
and inserting the following:
‘‘(d) VIOLATION OF STATE LAW.—Notwithstanding’’;
(5) in subsection (e), by striking ‘‘(e) It shall be’’ and
inserting the following:
‘‘(e) BUYING, SELLING, DELIVERING, OR TRANSPORTING SHARP
INSTRUMENTS FOR USE IN ANIMAL FIGHTING VENTURE.—It shall
be’’;
(6) in subsection (f)—
(A) by striking ‘‘(f) The Secretary’’ and inserting the
following:
‘‘(f) INVESTIGATION OF VIOLATIONS BY SECRETARY; ASSISTANCE
BY OTHER FEDERAL AGENCIES; ISSUANCE OF SEARCH WARRANT;
FORFEITURE; COSTS RECOVERABLE IN FORFEITURE OR CIVIL
ACTION.—The Secretary’’; and
(B) in the last sentence—
(i) by striking ‘‘by the United States’’;
(ii) by inserting ‘‘(1)’’ after ‘‘owner of the animals’’;
and

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122 STAT. 2224

39 USC 3001.

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7 USC 2255b.

PUBLIC LAW 110–246—JUNE 18, 2008

(iii) by striking ‘‘proceeding or in’’ and inserting
‘‘proceeding, or (2) in’’;
(7) in subsection (g)—
(A) by striking ‘‘(g) For purposes of’’ and inserting
the following:
‘‘(g) DEFINITIONS.—In’’;
(B) in paragraph (1), by striking ‘‘any event’’ and all
that follows through ‘‘entertainment’’ and inserting ‘‘any
event, in or affecting interstate or foreign commerce, that
involves a fight conducted or to be conducted between
at least 2 animals for purposes of sport, wagering, or entertainment,’’;
(C) by striking paragraph (2);
(D) in paragraph (5)—
(i) by striking ‘‘dog or other’’; and
(ii) by striking ‘‘; and’’ and inserting a period;
and
(E) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(8) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively;
(9) in subsection (i) (as so redesignated), by striking ‘‘(i)(1)
The provisions’’ and inserting the following:
‘‘(i) CONFLICT WITH STATE LAW.—
‘‘(1) IN GENERAL.—The provisions’’;
(10) in subsection (j) (as so redesignated), by striking ‘‘(j)
The criminal’’ and inserting the following:
‘‘(j) CRIMINAL PENALTIES.—The criminal’’; and
(11) in subsection (g)(6), by striking ‘‘(6) the conduct’’ and
inserting the following:
‘‘(h) RELATIONSHIP TO OTHER PROVISIONS.—The conduct’’.
(b) ENFORCEMENT OF ANIMAL FIGHTING PROHIBITIONS.—Section
49 of title 18, United States Code, is amended by striking ‘‘3
years’’ and inserting ‘‘5 years’’.
SEC. 14208. DEPARTMENT OF AGRICULTURE CONFERENCE TRANSPARENCY.

(a) REPORT.—
(1) REQUIREMENT.—Not later than September 30 of each
year, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate, a report on conferences sponsored or held by the
Department of Agriculture or attended by employees of the
Department of Agriculture.
(2) CONTENTS.—Each report under paragraph (1) shall contain—
(A) for each conference sponsored or held by the
Department or attended by employees of the Department—
(i) the name of the conference;
(ii) the location of the conference;
(iii) the number of Department of Agriculture
employees attending the conference; and
(iv) the costs (including travel expenses) relating
to such conference; and
(B) for each conference sponsored or held by the
Department of Agriculture for which the Department

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awarded a procurement contract, a description of the contracting procedures related to such conference.
(3) EXCLUSIONS.—The requirement in paragraph (1) shall
not apply to any conference—
(A) for which the cost to the Federal Government was
less than $10,000; or
(B) outside of the United States that is attended by
the Secretary or the Secretary’s designee as an official
representative of the United States government.
(b) AVAILABILITY OF REPORT.—Each report submitted in accordance with subsection (a) shall be posted in a searchable format
on a Department of Agriculture website that is available to the
public.
(c) DEFINITION OF CONFERENCE.—In this section, the term ‘‘conference’’—
(1) means a meeting that—
(A) is held for consultation, education, awareness, or
discussion;
(B) includes participants from at least one agency of
the Department of Agriculture;
(C) is held in whole or in part at a facility outside
of an agency of the Department of Agriculture; and
(D) involves costs associated with travel and lodging
for some participants; and
(2) does not include any training program that is continuing
education or a curriculum-based educational program, provided
that such training program is held independent of a conference
of a non-governmental organization.

Website.

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SEC. 14209. FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE
ACT AMENDMENTS.

(a) PAYMENT OF EXPENSES.—Section 17(d) of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136o(d)) is
amended—
(1) by striking ‘‘The Administrator’’ and inserting the following:
‘‘(1) IN GENERAL.—The Administrator’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) DEPARTMENT OF STATE EXPENSES.—Any expenses
incurred by an employee of the Environmental Protection
Agency who participates in any international technical, economic, or policy review board, committee, or other official body
that is meeting in relation to an international treaty shall
be paid by the Department of State.’’.
(b) CONTAINER RECYCLING.—Section 19(a) of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136q(a)) is amended
by adding at the end the following new paragraph:
‘‘(4) CONTAINER RECYCLING.—The Secretary may promulgate a regulation for the return and recycling of disposable
pesticide containers used for the distribution or sale of registered pesticide products in interstate commerce. Any such
regulation requiring recycling of disposable pesticide containers
shall not apply to antimicrobial pesticides (as defined in section
2) or other pesticide products intended for non-agricultural
uses.’’.

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PUBLIC LAW 110–246—JUNE 18, 2008

SEC. 14210. IMPORTATION OF LIVE DOGS.

(a) IN GENERAL.—The Animal Welfare Act is amended by
adding after section 17 (7 U.S.C. 2147) the following:
7 USC 2148.

‘‘SEC. 18. IMPORTATION OF LIVE DOGS.

7 USC 2148 note.

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7 USC 2209j.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) IMPORTER.—The term ‘importer’ means any person
who, for purposes of resale, transports into the United States
puppies from a foreign country.
‘‘(2) RESALE.—The term ‘resale’ includes any transfer of
ownership or control of an imported dog of less than 6 months
of age to another person, for more than de minimis consideration.
‘‘(b) REQUIREMENTS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
no person shall import a dog into the United States for purposes
of resale unless, as determined by the Secretary, the dog—
‘‘(A) is in good health;
‘‘(B) has received all necessary vaccinations; and
‘‘(C) is at least 6 months of age, if imported for resale.
‘‘(2) EXCEPTION.—
‘‘(A) IN GENERAL.—The Secretary, by regulation, shall
provide an exception to any requirement under paragraph
(1) in any case in which a dog is imported for—
‘‘(i) research purposes; or
‘‘(ii) veterinary treatment.
‘‘(B) LAWFUL IMPORTATION INTO HAWAII.—Paragraph
(1)(C) shall not apply to the lawful importation of a dog
into the State of Hawaii from the British Isles, Australia,
Guam, or New Zealand in compliance with the applicable
regulations of the State of Hawaii and the other requirements of this section, if the dog is not transported out
of the State of Hawaii for purposes of resale at less than
6 months of age.
‘‘(c) IMPLEMENTATION AND REGULATIONS.—The Secretary, the
Secretary of Health and Human Services, the Secretary of Commerce, and the Secretary of Homeland Security shall promulgate
such regulations as the Secretaries determine to be necessary to
implement and enforce this section.
‘‘(d) ENFORCEMENT.—An importer that fails to comply with
this section shall—
‘‘(1) be subject to penalties under section 19; and
‘‘(2) provide for the care (including appropriate veterinary
care), forfeiture, and adoption of each applicable dog, at the
expense of the importer.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
takes effect on the date of the enactment of this Act.
SEC. 14211. PERMANENT DEBARMENT FROM PARTICIPATION IN
DEPARTMENT OF AGRICULTURE PROGRAMS FOR
FRAUD.

(a) IN GENERAL.—Subject to subsection (b), the Secretary of
Agriculture shall permanently debar an individual, organization,
corporation, or other entity convicted of a felony for knowingly
defrauding the United States in connection with any program
administered by the Department of Agriculture from any subsequent participation in Department of Agriculture programs.

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(b) EXCEPTIONS.—
(1) SECRETARY DETERMINATION.—The Secretary may reduce
a debarment under subsection (a) to a period of not less than
10 years if the Secretary considers it appropriate.
(2) FOOD ASSISTANCE.—A debarment under subsection (a)
shall not apply with respect to participation in domestic food
assistance programs (as defined by the Secretary).
SEC. 14212. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY
OFFICES FOR THE FARM SERVICE AGENCY.

(a) TEMPORARY PROHIBITION.—
(1) IN GENERAL.—Subject to paragraph (2), until the date
that is two years after the date of the enactment of this Act,
the Secretary of Agriculture may not close or relocate a county
or field office of the Farm Service Agency.
(2) EXCEPTION.—Paragraph (1) shall not apply to—
(A) an office that is located not more than 20 miles
from another office of the Farm Service Agency; or
(B) the relocation of an office within the same county
in the course of routine leasing operations.
(b) LIMITATION ON CLOSURE; NOTICE.—
(1) LIMITATION.—After the period referred to in subsection
(a)(1), the Secretary shall, before closing any office of the Farm
Service Agency that is located more than 20 miles from another
office of the Farm Service Agency, to the maximum extent
practicable, first close any offices of the Farm Service Agency
that—
(A) are located less than 20 miles from another office
of the Farm Service Agency; and
(B) have two or fewer permanent full-time employees.
(2) NOTICE.—After the period referred to in subsection
(a)(1), the Secretary of Agriculture may not close a county
or field office of the Farm Service Agency unless—
(A) not later than 30 days after the Secretary proposes
to close such office, the Secretary holds a public meeting
regarding the proposed closure in the county in which
such office is located; and
(B) after the public meeting referred to in subparagraph (A), but not less than 90 days before the date on
which the Secretary approves the closure of such office,
the Secretary notifies the Committee on Agriculture and
the Committee on Appropriations of the House of Representatives, the Committee on Agriculture, Nutrition, and
Forestry and the Committee on Appropriations of the
Senate, each Senator representing the State in which the
office proposed to be closed is located, and the member
of the House of Representatives who represents the
Congressional district in which the office proposed to be
closed is located of the proposed closure of such office.

7 USC 6932a.

Deadlines.

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SEC. 14213. USDA GRADUATE SCHOOL.

(a) IN GENERAL.—Section 921 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 2279b) is amended—
(1) in the heading, to read as follows:

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‘‘SEC. 921. DEPARTMENT OF AGRICULTURE EDUCATIONAL, TRAINING,
AND PROFESSIONAL DEVELOPMENT ACTIVITIES.’’; and

Deadline.

Effective date.
7 USC 2279b
note.

(2) by striking subsection (b) and inserting the following
new subsection:
‘‘(b) OPERATION AS NONAPPROPRIATED FUND INSTRUMENTALITY.—
‘‘(1) CEASE OPERATIONS.—Not later than October 1, 2009,
the Secretary of Agriculture shall cease to maintain or operate
a nonappropriated fund instrumentality of the United States
to develop, administer, or provide educational training and
professional development activities, including educational
activities for Federal agencies, Federal employees, non-profit
organizations, other entities, and members of the general
public.
‘‘(2) TRANSITION.—
‘‘(A) IN GENERAL.—The Secretary of Agriculture is
authorized to use funds available to the Department of
Agriculture and such resources of the Department as the
Secretary considers appropriate (including the assignment
of such employees of the Department as the Secretary
considers appropriate) to assist the General Administrative
Board of the Graduate School in the conversion of the
Graduate School to an entity that is non-governmental
and not a nonappropriated fund instrumentality of the
United States, including such privatization activities not
otherwise inconsistent with law or regulation.
‘‘(B) TERMINATION OF AUTHORITY.—The authority under
paragraph (1) shall terminate on the earlier of—
‘‘(i) the completion of the transition of the Graduate
School to an entity that is non-governmental and not
a nonappropriated fund instrumentality of the United
States, as determined by the Secretary; or
‘‘(ii) September 30, 2009.’’.
(b) PROCUREMENT PROCEDURES.—Notwithstanding the amendments made by subsection (a), effective on the date of the enactment
of this Act, the Graduate School of the Department of Agriculture
shall be subject to Federal procurement laws and regulations in
the same manner and subject to the same requirements as a private
entity providing services to the Federal Government.
SEC. 14214. FINES FOR VIOLATIONS OF THE ANIMAL WELFARE ACT.

Section 19(b) of the Animal Welfare Act (7 U.S.C. 2149(b))
is amended in the first sentence by striking ‘‘not more than $2,500
for each such violation’’ and inserting ‘‘not more than $10,000
for each such violation’’.

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SEC. 14215. DEFINITION OF CENTRAL FILING SYSTEM.

Section 1324(c)(2) of the Food Security Act of 1985 (7 U.S.C.
1631(c)(2)) is amended—
(1) in subparagraph (C)(ii)(II), by inserting after ‘‘such
debtors’’ the following: ‘‘, except that the numerical list containing social security or taxpayer identification numbers may
be encrypted for security purposes if the Secretary of State
provides a method by which an effective search of the encrypted
numbers may be conducted to determine whether the farm
product at issue is subject to 1 or more liens’’; and
(2) in subparagraph (E)—

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(A) by striking ‘‘paragraph (C)’’ and inserting ‘‘subparagraph (C)’’; and
(B) by inserting before the semicolon at the end the
following: ‘‘except that—
‘‘(i) the distribution of the portion of the master
list may be in electronic, written, or printed form;
and
‘‘(ii) if social security or taxpayer identification
numbers on the master list are encrypted, the Secretary of State may distribute the master list only—
‘‘(I) by compact disc or other electronic media
that contains—
‘‘(aa) the recorded list of debtor names;
and
‘‘(bb) an encryption program that enables
the buyer, commission merchant, and selling
agent to enter a social security number for
matching against the recorded list of encrypted
social security or taxpayer identification numbers; and
‘‘(II) on the written request of the buyer,
commission merchant, or selling agent, by paper
copy of the list to the requestor’’.
SEC. 14216. CONSIDERATION OF PROPOSED RECOMMENDATIONS OF
STUDY ON USE OF CATS AND DOGS IN FEDERAL
RESEARCH.

(a) IN GENERAL.—The Secretary of Agriculture shall—
(1) review—
(A) any independent reviews conducted by a nationally
recognized panel of experts of the use of Class B dogs
and cats in federally supported research to determine how
frequently such dogs and cats are used in research by
the National Institutes of Health; and
(B) any recommendations proposed by such panel outlining the parameters of such use; and
(2) submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on how recommendations referred to in paragraph (1)(B) can be applied within
the Department of Agriculture to ensure such dogs and cats
are treated in accordance with regulations of the Department
of Agriculture.
(b) CLASS B DOGS AND CATS DEFINED.—In this section, the
term ‘‘Class B dogs and cats’’ means dogs and cats obtained from
a Class ‘‘B’’ licensee, as such term is defined in section 1.1 of
title 9, Code of Federal Regulations.

Reports.

SEC. 14217. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.

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(a) IN GENERAL.—Title 40, United States Code, is amended—
(1) by redesignating subtitle V as subtitle VI; and
(2) by inserting after subtitle IV the following:

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‘‘Subtitle V—Regional Economic and
Infrastructure Development
‘‘Chapter ..................................................................................................................
‘‘151. GENERAL PROVISIONS ............................................................................
‘‘153. REGIONAL COMMISSIONS ......................................................................
‘‘155. FINANCIAL ASSISTANCE .........................................................................
‘‘157. ADMINISTRATIVE PROVISIONS .............................................................

15101
15301
15501
15701

‘‘CHAPTER 1—GENERAL PROVISIONS

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‘‘Sec.
‘‘15101. Definitions.

‘‘§ 15101. Definitions
‘‘In this subtitle, the following definitions apply:
‘‘(1) COMMISSION.—The term ‘Commission’ means a
Commission established under section 15301.
‘‘(2) LOCAL DEVELOPMENT DISTRICT.—The term ‘local
development district’ means an entity that—
‘‘(A)(i) is an economic development district that is—
‘‘(I) in existence on the date of the enactment of
this chapter; and
‘‘(II) located in the region; or
‘‘(ii) if an entity described in clause (i) does not exist—
‘‘(I) is organized and operated in a manner that
ensures broad-based community participation and an
effective opportunity for local officials, community
leaders, and the public to contribute to the development
and implementation of programs in the region;
‘‘(II) is governed by a policy board with at least
a simple majority of members consisting of—
‘‘(aa) elected officials; or
‘‘(bb) designees or employees of a general purpose unit of local government that have been
appointed to represent the unit of local government; and
‘‘(III) is certified by the Governor or appropriate
State officer as having a charter or authority that
includes the economic development of counties, portions of counties, or other political subdivisions within
the region; and
‘‘(B) has not, as certified by the Federal Cochairperson—
‘‘(i) inappropriately used Federal grant funds from
any Federal source; or
‘‘(ii) appointed an officer who, during the period
in which another entity inappropriately used Federal
grant funds from any Federal source, was an officer
of the other entity.
‘‘(3) FEDERAL GRANT PROGRAM.—The term ‘Federal grant
program’ means a Federal grant program to provide assistance
in carrying out economic and community development activities.
‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).

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‘‘(5) NONPROFIT ENTITY.—The term ‘nonprofit entity’ means
any organization described in section 501(c) of the Internal
Revenue Code of 1986 and exempt from taxation under 501(a)
of that Code that has been formed for the purpose of economic
development.
‘‘(6) REGION.—The term ‘region’ means the area covered
by a Commission as described in subchapter II of chapter
157.
‘‘CHAPTER 2—REGIONAL COMMISSIONS

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‘‘Sec.
‘‘15301.
‘‘15302.
‘‘15303.
‘‘15304.
‘‘15305.
‘‘15306.
‘‘15307.
‘‘15308.

Establishment, membership, and employees.
Decisions.
Functions.
Administrative powers and expenses.
Meetings.
Personal financial interests.
Tribal participation.
Annual report.

‘‘§ 15301. Establishment, membership, and employees
‘‘(a) ESTABLISHMENT.—There are established the following
regional Commissions:
‘‘(1) The Southeast Crescent Regional Commission.
‘‘(2) The Southwest Border Regional Commission.
‘‘(3) The Northern Border Regional Commission.
‘‘(b) MEMBERSHIP.—
‘‘(1) FEDERAL AND STATE MEMBERS.—Each Commission
shall be composed of the following members:
‘‘(A) A Federal Cochairperson, to be appointed by the
President, by and with the advice and consent of the
Senate.
‘‘(B) The Governor of each participating State in the
region of the Commission.
‘‘(2) ALTERNATE MEMBERS.—
‘‘(A) ALTERNATE FEDERAL COCHAIRPERSON.—The President shall appoint an alternate Federal Cochairperson for
each Commission. The alternate Federal Cochairperson,
when not actively serving as an alternate for the Federal
Cochairperson, shall perform such functions and duties
as are delegated by the Federal Cochairperson.
‘‘(B) STATE ALTERNATES.—The State member of a
participating State may have a single alternate, who shall
be appointed by the Governor of the State from among
the members of the Governor’s cabinet or personal staff.
‘‘(C) VOTING.—An alternate member shall vote in the
case of the absence, death, disability, removal, or resignation of the Federal or State member for which the alternate
member is an alternate.
‘‘(3) COCHAIRPERSONS.—A Commission shall be headed by—
‘‘(A) the Federal Cochairperson, who shall serve as
a liaison between the Federal Government and the
Commission; and
‘‘(B) a State Cochairperson, who shall be a Governor
of a participating State in the region and shall be elected
by the State members for a term of not less than 1 year.
‘‘(4) CONSECUTIVE TERMS.—A State member may not be
elected to serve as State Cochairperson for more than 2 consecutive terms.

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‘‘(c) COMPENSATION.—
‘‘(1) FEDERAL COCHAIRPERSONS.—Each Federal Cochairperson shall be compensated by the Federal Government at
level III of the Executive Schedule as set out in section 5314
of title 5.
‘‘(2) ALTERNATE FEDERAL COCHAIRPERSONS.—Each Federal
Cochairperson’s alternate shall be compensated by the Federal
Government at level V of the Executive Schedule as set out
in section 5316 of title 5.
‘‘(3) STATE MEMBERS AND ALTERNATES.—Each State
member and alternate shall be compensated by the State that
they represent at the rate established by the laws of that
State.
‘‘(d) EXECUTIVE DIRECTOR AND STAFF.—
‘‘(1) IN GENERAL.—A Commission shall appoint and fix the
compensation of an executive director and such other personnel
as are necessary to enable the Commission to carry out its
duties. Compensation under this paragraph may not exceed
the maximum rate of basic pay established for the Senior
Executive Service under section 5382 of title 5, including any
applicable locality-based comparability payment that may be
authorized under section 5304(h)(2)(C) of that title.
‘‘(2) EXECUTIVE DIRECTOR.—The executive director shall be
responsible for carrying out the administrative duties of the
Commission, directing the Commission staff, and such other
duties as the Commission may assign.
‘‘(e) NO FEDERAL EMPLOYEE STATUS.—No member, alternate,
officer, or employee of a Commission (other than the Federal
Cochairperson, the alternate Federal Cochairperson, staff of the
Federal Cochairperson, and any Federal employee detailed to the
Commission) shall be considered to be a Federal employee for
any purpose.

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‘‘§ 15302. Decisions
‘‘(a) REQUIREMENTS FOR APPROVAL.—Except as provided in section 15304(c)(3), decisions by the Commission shall require the
affirmative vote of the Federal Cochairperson and a majority of
the State members (exclusive of members representing States delinquent under section 15304(c)(3)(C)).
‘‘(b) CONSULTATION.—In matters coming before the Commission,
the Federal Cochairperson shall, to the extent practicable, consult
with the Federal departments and agencies having an interest
in the subject matter.
‘‘(c) QUORUMS.—A Commission shall determine what constitutes
a quorum for Commission meetings; except that—
‘‘(1) any quorum shall include the Federal Cochairperson
or the alternate Federal Cochairperson; and
‘‘(2) a State alternate member shall not be counted toward
the establishment of a quorum.
‘‘(d) PROJECTS AND GRANT PROPOSALS.—The approval of project
and grant proposals shall be a responsibility of each Commission
and shall be carried out in accordance with section 15503.
‘‘§ 15303. Functions
‘‘A Commission shall—
‘‘(1) assess the needs and assets of its region based on
available research, demonstration projects, investigations,

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assessments, and evaluations of the region prepared by Federal,
State, and local agencies, universities, local development districts, and other nonprofit groups;
‘‘(2) develop, on a continuing basis, comprehensive and
coordinated economic and infrastructure development strategies
to establish priorities and approve grants for the economic
development of its region, giving due consideration to other
Federal, State, and local planning and development activities
in the region;
‘‘(3) not later than one year after the date of the enactment
of this section, and after taking into account State plans developed under section 15502, establish priorities in an economic
and infrastructure development plan for its region, including
5-year regional outcome targets;
‘‘(4)(A) enhance the capacity of, and provide support for,
local development districts in its region; or
‘‘(B) if no local development district exists in an area in
a participating State in the region, foster the creation of a
local development district;
‘‘(5) encourage private investment in industrial, commercial, and other economic development projects in its region;
‘‘(6) cooperate with and assist State governments with the
preparation of economic and infrastructure development plans
and programs for participating States;
‘‘(7) formulate and recommend to the Governors and legislatures of States that participate in the Commission forms of
interstate cooperation and, where appropriate, international
cooperation; and
‘‘(8) work with State and local agencies in developing appropriate model legislation to enhance local and regional economic
development.

Deadline.
Plans.

‘‘§ 15304. Administrative powers and expenses
‘‘(a) POWERS.—In carrying out its duties under this subtitle,
a Commission may—
‘‘(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and print
or otherwise reproduce and distribute a description of the proceedings and reports on actions by the Commission as the
Commission considers appropriate;
‘‘(2) authorize, through the Federal or State Cochairperson
or any other member of the Commission designated by the
Commission, the administration of oaths if the Commission
determines that testimony should be taken or evidence received
under oath;
‘‘(3) request from any Federal, State, or local agency such
information as may be available to or procurable by the agency
that may be of use to the Commission in carrying out the
duties of the Commission;
‘‘(4) adopt, amend, and repeal bylaws and rules governing
the conduct of business and the performance of duties by the
Commission;
‘‘(5) request the head of any Federal agency, State agency,
or local government to detail to the Commission such personnel
as the Commission requires to carry out its duties, each such
detail to be without loss of seniority, pay, or other employee
status;

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‘‘(6) provide for coverage of Commission employees in a
suitable retirement and employee benefit system by making
arrangements or entering into contracts with any participating
State government or otherwise providing retirement and other
employee coverage;
‘‘(7) accept, use, and dispose of gifts or donations or services
or real, personal, tangible, or intangible property;
‘‘(8) enter into and perform such contracts, cooperative
agreements, or other transactions as are necessary to carry
out Commission duties, including any contracts or cooperative
agreements with a department, agency, or instrumentality of
the United States, a State (including a political subdivision,
agency, or instrumentality of the State), or a person, firm,
association, or corporation; and
‘‘(9) maintain a government relations office in the District
of Columbia and establish and maintain a central office at
such location in its region as the Commission may select.
‘‘(b) FEDERAL AGENCY COOPERATION.—A Federal agency shall—
‘‘(1) cooperate with a Commission; and
‘‘(2) provide, to the extent practicable, on request of the
Federal Cochairperson, appropriate assistance in carrying out
this subtitle, in accordance with applicable Federal laws
(including regulations).
‘‘(c) ADMINISTRATIVE EXPENSES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the administrative expenses of a Commission shall be paid—
‘‘(A) by the Federal Government, in an amount equal
to 50 percent of the administrative expenses of the Commission; and
‘‘(B) by the States participating in the Commission,
in an amount equal to 50 percent of the administrative
expenses.
‘‘(2) EXPENSES OF THE FEDERAL COCHAIRPERSON.—All
expenses of the Federal Cochairperson, including expenses of
the alternate and staff of the Federal Cochairperson, shall
be paid by the Federal Government.
‘‘(3) STATE SHARE.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
share of administrative expenses of a Commission to be
paid by each State of the Commission shall be determined
by a unanimous vote of the State members of the Commission.
‘‘(B) NO FEDERAL PARTICIPATION.—The Federal
Cochairperson shall not participate or vote in any decision
under subparagraph (A).
‘‘(C) DELINQUENT STATES.—During any period in which
a State is more than 1 year delinquent in payment of
the State’s share of administrative expenses of the Commission under this subsection—
‘‘(i) no assistance under this subtitle shall be provided to the State (including assistance to a political
subdivision or a resident of the State) for any project
not approved as of the date of the commencement
of the delinquency; and
‘‘(ii) no member of the Commission from the State
shall participate or vote in any action by the Commission.

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‘‘(4) EFFECT ON ASSISTANCE.—A State’s share of administrative expenses of a Commission under this subsection shall
not be taken into consideration when determining the amount
of assistance provided to the State under this subtitle.

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‘‘§ 15305. Meetings
‘‘(a) INITIAL MEETING.—Each Commission shall hold an initial
meeting not later than 180 days after the date of the enactment
of this section.
‘‘(b) ANNUAL MEETING.—Each Commission shall conduct at
least 1 meeting each year with the Federal Cochairperson and
at least a majority of the State members present.
‘‘(c) ADDITIONAL MEETINGS.—Each Commission shall conduct
additional meetings at such times as it determines and may conduct
such meetings by electronic means.

Deadline.

‘‘§ 15306. Personal financial interests
‘‘(a) CONFLICTS OF INTEREST.—
‘‘(1) NO ROLE ALLOWED.—Except as permitted by paragraph
(2), an individual who is a State member or alternate, or
an officer or employee of a Commission, shall not participate
personally and substantially as a member, alternate, officer,
or employee of the Commission, through decision, approval,
disapproval, recommendation, request for a ruling, or other
determination, contract, claim, controversy, or other matter
in which, to the individual’s knowledge, any of the following
has a financial interest:
‘‘(A) The individual.
‘‘(B) The individual’s spouse, minor child, or partner.
‘‘(C) An organization (except a State or political subdivision of a State) in which the individual is serving as an
officer, director, trustee, partner, or employee.
‘‘(D) Any person or organization with whom the individual is negotiating or has any arrangement concerning
prospective employment.
‘‘(2) EXCEPTION.—Paragraph (1) shall not apply if the individual, in advance of the proceeding, application, request for
a ruling or other determination, contract, claim controversy,
or other particular matter presenting a potential conflict of
interest—
‘‘(A) advises the Commission of the nature and circumstances of the matter presenting the conflict of interest;
‘‘(B) makes full disclosure of the financial interest;
and
‘‘(C) receives a written decision of the Commission
that the interest is not so substantial as to be considered
likely to affect the integrity of the services that the
Commission may expect from the individual.
‘‘(3) VIOLATION.—An individual violating this subsection
shall be fined under title 18, imprisoned for not more than
1 year, or both.
‘‘(b) STATE MEMBER OR ALTERNATE.—A State member or alternate member may not receive any salary, or any contribution to,
or supplementation of, salary, for services on a Commission from
a source other than the State of the member or alternate.
‘‘(c) DETAILED EMPLOYEES.—

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‘‘(1) IN GENERAL.—No person detailed to serve a Commission shall receive any salary, or any contribution to, or
supplementation of, salary, for services provided to the Commission from any source other than the State, local, or intergovernmental department or agency from which the person was
detailed to the Commission.
‘‘(2) VIOLATION.—Any person that violates this subsection
shall be fined under title 18, imprisoned not more than 1
year, or both.
‘‘(d) FEDERAL COCHAIRMAN, ALTERNATE TO FEDERAL COCHAIRMAN, AND FEDERAL OFFICERS AND EMPLOYEES.—The Federal
Cochairman, the alternate to the Federal Cochairman, and any
Federal officer or employee detailed to duty with the Commission
are not subject to this section but remain subject to sections 202
through 209 of title 18.
‘‘(e) RESCISSION.—A Commission may declare void any contract,
loan, or grant of or by the Commission in relation to which the
Commission determines that there has been a violation of any
provision under subsection (a)(1), (b), or (c), or any of the provisions
of sections 202 through 209 of title 18.
‘‘§ 15307. Tribal participation
‘‘Governments of Indian tribes in the region of the Southwest
Border Regional Commission shall be allowed to participate in
matters before that Commission in the same manner and to the
same extent as State agencies and instrumentalities in the region.
‘‘§ 15308. Annual report
‘‘(a) IN GENERAL.—Not later than 90 days after the last day
of each fiscal year, each Commission shall submit to the President
and Congress a report on the activities carried out by the Commission under this subtitle in the fiscal year.
‘‘(b) CONTENTS.—The report shall include—
‘‘(1) a description of the criteria used by the Commission
to designate counties under section 15702 and a list of the
counties designated in each category;
‘‘(2) an evaluation of the progress of the Commission in
meeting the goals identified in the Commission’s economic and
infrastructure development plan under section 15303 and State
economic and infrastructure development plans under section
15502; and
‘‘(3) any policy recommendations approved by the Commission.
‘‘CHAPTER 3—FINANCIAL ASSISTANCE

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‘‘Sec.
‘‘15501.
‘‘15502.
‘‘15503.
‘‘15504.
‘‘15505.
‘‘15506.

Economic and infrastructure development grants.
Comprehensive economic and infrastructure development plans.
Approval of applications for assistance.
Program development criteria.
Local development districts and organizations.
Supplements to Federal grant programs.

‘‘§ 15501. Economic and infrastructure development grants
‘‘(a) IN GENERAL.—A Commission may make grants to States
and local governments, Indian tribes, and public and nonprofit
organizations for projects, approved in accordance with section
15503—

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‘‘(1) to develop the transportation infrastructure of its
region;
‘‘(2) to develop the basic public infrastructure of its region;
‘‘(3) to develop the telecommunications infrastructure of
its region;
‘‘(4) to assist its region in obtaining job skills training,
skills development and employment-related education,
entrepreneurship, technology, and business development;
‘‘(5) to provide assistance to severely economically distressed and underdeveloped areas of its region that lack financial resources for improving basic health care and other public
services;
‘‘(6) to promote resource conservation, tourism, recreation,
and preservation of open space in a manner consistent with
economic development goals;
‘‘(7) to promote the development of renewable and alternative energy sources; and
‘‘(8) to otherwise achieve the purposes of this subtitle.
‘‘(b) ALLOCATION OF FUNDS.—A Commission shall allocate at
least 40 percent of any grant amounts provided by the Commission
in a fiscal year for projects described in paragraphs (1) through
(3) of subsection (a).
‘‘(c) SOURCES OF GRANTS.—Grant amounts may be provided
entirely from appropriations to carry out this subtitle, in combination with amounts available under other Federal grant programs,
or from any other source.
‘‘(d) MAXIMUM COMMISSION CONTRIBUTIONS.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), the
Commission may contribute not more than 50 percent of a
project or activity cost eligible for financial assistance under
this section from amounts appropriated to carry out this subtitle.
‘‘(2) DISTRESSED COUNTIES.—The maximum Commission
contribution for a project or activity to be carried out in a
county for which a distressed county designation is in effect
under section 15702 may be increased to 80 percent.
‘‘(3) SPECIAL RULE FOR REGIONAL PROJECTS.—A Commission
may increase to 60 percent under paragraph (1) and 90 percent
under paragraph (2) the maximum Commission contribution
for a project or activity if—
‘‘(A) the project or activity involves 3 or more counties
or more than one State; and
‘‘(B) the Commission determines in accordance with
section 15302(a) that the project or activity will bring
significant interstate or multicounty benefits to a region.
‘‘(e) MAINTENANCE OF EFFORT.—Funds may be provided by
a Commission for a program or project in a State under this
section only if the Commission determines that the level of Federal
or State financial assistance provided under a law other than this
subtitle, for the same type of program or project in the same
area of the State within region, will not be reduced as a result
of funds made available by this subtitle.
‘‘(f) NO RELOCATION ASSISTANCE.—Financial assistance authorized by this section may not be used to assist a person or entity
in relocating from one area to another.

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‘‘§ 15502.

Comprehensive economic and infrastructure
development plans
‘‘(a) STATE PLANS.—In accordance with policies established by
a Commission, each State member of the Commission shall submit
a comprehensive economic and infrastructure development plan
for the area of the region represented by the State member.
‘‘(b) CONTENT OF PLAN.—A State economic and infrastructure
development plan shall reflect the goals, objectives, and priorities
identified in any applicable economic and infrastructure development plan developed by a Commission under section 15303.
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PARTIES.—In carrying out the development planning process (including the selection
of programs and projects for assistance), a State shall—
‘‘(1) consult with local development districts, local units
of government, and local colleges and universities; and
‘‘(2) take into consideration the goals, objectives, priorities,
and recommendations of the entities described in paragraph
(1).
‘‘(d) PUBLIC PARTICIPATION.—
‘‘(1) IN GENERAL.—A Commission and applicable State and
local development districts shall encourage and assist, to the
maximum extent practicable, public participation in the
development, revision, and implementation of all plans and
programs under this subtitle.
‘‘(2) GUIDELINES.—A Commission shall develop guidelines
for providing public participation, including public hearings.

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‘‘§ 15503. Approval of applications for assistance
‘‘(a) EVALUATION BY STATE MEMBER.—An application to a
Commission for a grant or any other assistance for a project under
this subtitle shall be made through, and evaluated for approval
by, the State member of the Commission representing the applicant.
‘‘(b) CERTIFICATION.—An application to a Commission for a
grant or other assistance for a project under this subtitle shall
be eligible for assistance only on certification by the State member
of the Commission representing the applicant that the application
for the project—
‘‘(1) describes ways in which the project complies with
any applicable State economic and infrastructure development
plan;
‘‘(2) meets applicable criteria under section 15504;
‘‘(3) adequately ensures that the project will be properly
administered, operated, and maintained; and
‘‘(4) otherwise meets the requirements for assistance under
this subtitle.
‘‘(c) VOTES FOR DECISIONS.—On certification by a State member
of a Commission of an application for a grant or other assistance
for a specific project under this section, an affirmative vote of
the Commission under section 15302 shall be required for approval
of the application.
‘‘§ 15504. Program development criteria
‘‘In considering programs and projects to be provided assistance
by a Commission under this subtitle, and in establishing a priority
ranking of the requests for assistance provided to the Commission,
the Commission shall follow procedures that ensure, to the maximum extent practicable, consideration of—

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‘‘(1) the relationship of the project or class of projects to
overall regional development;
‘‘(2) the per capita income and poverty and unemployment
and outmigration rates in an area;
‘‘(3) the financial resources available to the applicants for
assistance seeking to carry out the project, with emphasis on
ensuring that projects are adequately financed to maximize
the probability of successful economic development;
‘‘(4) the importance of the project or class of projects in
relation to the other projects or classes of projects that may
be in competition for the same funds;
‘‘(5) the prospects that the project for which assistance
is sought will improve, on a continuing rather than a temporary
basis, the opportunities for employment, the average level of
income, or the economic development of the area to be served
by the project; and
‘‘(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures
and the results of the expenditures may be evaluated.

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‘‘§ 15505. Local development districts and organizations
‘‘(a) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—Subject to
the requirements of this section, a Commission may make grants
to a local development district to assist in the payment of development planning and administrative expenses.
‘‘(b) CONDITIONS FOR GRANTS.—
‘‘(1) MAXIMUM AMOUNT.—The amount of a grant awarded
under this section may not exceed 80 percent of the administrative and planning expenses of the local development district
receiving the grant.
‘‘(2) MAXIMUM PERIOD FOR STATE AGENCIES.—In the case
of a State agency certified as a local development district,
a grant may not be awarded to the agency under this section
for more than 3 fiscal years.
‘‘(3) LOCAL SHARE.—The contributions of a local development district for administrative expenses may be in cash or
in kind, fairly evaluated, including space, equipment, and services.
‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—A local
development district shall—
‘‘(1) operate as a lead organization serving multicounty
areas in the region at the local level;
‘‘(2) assist the Commission in carrying out outreach activities for local governments, community development groups, the
business community, and the public;
‘‘(3) serve as a liaison between State and local governments,
nonprofit organizations (including community-based groups and
educational institutions), the business community, and citizens;
and
‘‘(4) assist the individuals and entities described in paragraph (3) in identifying, assessing, and facilitating projects
and programs to promote the economic development of the
region.
‘‘§ 15506. Supplements to Federal grant programs
‘‘(a) FINDING.—Congress finds that certain States and local
communities of the region, including local development districts,

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Applicability.

PUBLIC LAW 110–246—JUNE 18, 2008

may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because—
‘‘(1) they lack the economic resources to provide the
required matching share; or
‘‘(2) there are insufficient funds available under the
applicable Federal law with respect to a project to be carried
out in the region.
‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—A Commission, with
the approval of the Federal Cochairperson, may use amounts made
available to carry out this subtitle—
‘‘(1) for any part of the basic Federal contribution to projects
or activities under the Federal grant programs authorized by
Federal laws; and
‘‘(2) to increase the Federal contribution to projects and
activities under the programs above the fixed maximum part
of the cost of the projects or activities otherwise authorized
by the applicable law.
‘‘(c) CERTIFICATION REQUIRED.—For a program, project, or
activity for which any part of the basic Federal contribution to
the project or activity under a Federal grant program is proposed
to be made under subsection (b), the Federal contribution shall
not be made until the responsible Federal official administering
the Federal law authorizing the Federal contribution certifies that
the program, project, or activity meets the applicable requirements
of the Federal law and could be approved for Federal contribution
under that law if amounts were available under the law for the
program, project, or activity.
‘‘(d) LIMITATIONS IN OTHER LAWS INAPPLICABLE.—Amounts provided pursuant to this subtitle are available without regard to
any limitations on areas eligible for assistance or authorizations
for appropriation in any other law.
‘‘(e) FEDERAL SHARE.—The Federal share of the cost of a project
or activity receiving assistance under this section shall not exceed
80 percent.
‘‘(f) MAXIMUM COMMISSION CONTRIBUTION.—Section 15501(d),
relating to limitations on Commission contributions, shall apply
to a program, project, or activity receiving assistance under this
section.
‘‘CHAPTER 4—ADMINISTRATIVE PROVISIONS
‘‘SUBCHAPTER I—GENERAL
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

15701.
15702.
15703.
15704.
15705.

PROVISIONS

Consent of States.
Distressed counties and areas.
Counties eligible for assistance in more than one region.
Inspector General; records.
Biannual meetings of representatives of all Commissions.
‘‘SUBCHAPTER II—DESIGNATION

OF REGIONS

‘‘Sec. 15731. Southeast Crescent Regional Commission.
‘‘Sec. 15732. Southwest Border Regional Commission.
‘‘Sec. 15733. Northern Border Regional Commission.

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‘‘SUBCHAPTER

III—AUTHORIZATION OF APPROPRIATIONS

‘‘Sec. 15751. Authorization of appropriations.

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‘‘SUBCHAPTER I—GENERAL PROVISIONS

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‘‘§ 15701. Consent of States
‘‘This subtitle does not require a State to engage in or accept
a program under this subtitle without its consent.
‘‘§ 15702. Distressed counties and areas
‘‘(a) DESIGNATIONS.—Not later than 90 days after the date
of the enactment of this section, and annually thereafter, each
Commission shall make the following designations:
‘‘(1) DISTRESSED COUNTIES.—The Commission shall designate as distressed counties those counties in its region that
are the most severely and persistently economically distressed
and underdeveloped and have high rates of poverty, unemployment, or outmigration.
‘‘(2) TRANSITIONAL COUNTIES.—The Commission shall designate as transitional counties those counties in its region that
are economically distressed and underdeveloped or have
recently suffered high rates of poverty, unemployment, or outmigration.
‘‘(3) ATTAINMENT COUNTIES.—The Commission shall designate as attainment counties, those counties in its region
that are not designated as distressed or transitional counties
under this subsection.
‘‘(4) ISOLATED AREAS OF DISTRESS.—The Commission shall
designate as isolated areas of distress, areas located in counties
designated as attainment counties under paragraph (3) that
have high rates of poverty, unemployment, or outmigration.
‘‘(b) ALLOCATION.—A Commission shall allocate at least 50 percent of the appropriations made available to the Commission to
carry out this subtitle for programs and projects designed to serve
the needs of distressed counties and isolated areas of distress in
the region.
‘‘(c) ATTAINMENT COUNTIES.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
funds may not be provided under this subtitle for a project
located in a county designated as an attainment county under
subsection (a).
‘‘(2) EXCEPTIONS.—
‘‘(A) ADMINISTRATIVE EXPENSES OF LOCAL DEVELOPMENT DISTRICTS.—The funding prohibition under paragraph
(1) shall not apply to grants to fund the administrative
expenses of local development districts under section 15505.
‘‘(B) MULTICOUNTY AND OTHER PROJECTS.—A Commission may waive the application of the funding prohibition
under paragraph (1) with respect to—
‘‘(i) a multicounty project that includes participation by an attainment county; and
‘‘(ii) any other type of project, if a Commission
determines that the project could bring significant
benefits to areas of the region outside an attainment
county.
‘‘(3) ISOLATED AREAS OF DISTRESS.—For a designation of
an isolated area of distress to be effective, the designation
shall be supported—
‘‘(A) by the most recent Federal data available; or

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‘‘(B) if no recent Federal data are available, by the
most recent data available through the government of the
State in which the isolated area of distress is located.

Applicability.

‘‘§ 15703. Counties eligible for assistance in more than one
region
‘‘(a) LIMITATION.—A political subdivision of a State may not
receive assistance under this subtitle in a fiscal year from more
than one Commission.
‘‘(b) SELECTION OF COMMISSION.—A political subdivision
included in the region of more than one Commission shall select
the Commission with which it will participate by notifying, in
writing, the Federal Cochairperson and the appropriate State
member of that Commission.
‘‘(c) CHANGES IN SELECTIONS.—The selection of a Commission
by a political subdivision shall apply in the fiscal year in which
the selection is made, and shall apply in each subsequent fiscal
year unless the political subdivision, at least 90 days before the
first day of the fiscal year, notifies the Cochairpersons of another
Commission in writing that the political subdivision will participate
in that Commission and also transmits a copy of such notification
to the Cochairpersons of the Commission in which the political
subdivision is currently participating.
‘‘(d) INCLUSION OF APPALACHIAN REGIONAL COMMISSION.—In
this section, the term ‘Commission’ includes the Appalachian
Regional Commission established under chapter 143.

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‘‘§ 15704. Inspector General; records
‘‘(a) APPOINTMENT OF INSPECTOR GENERAL.—There shall be an
Inspector General for the Commissions appointed in accordance
with section 3(a) of the Inspector General Act of 1978 (5 U.S.C.
App.). All of the Commissions shall be subject to a single Inspector
General.
‘‘(b) RECORDS OF A COMMISSION.—
‘‘(1) IN GENERAL.—A Commission shall maintain accurate
and complete records of all its transactions and activities.
‘‘(2) AVAILABILITY.—All records of a Commission shall be
available for audit and examination by the Inspector General
(including authorized representatives of the Inspector General).
‘‘(c) RECORDS OF RECIPIENTS OF COMMISSION ASSISTANCE.—
‘‘(1) IN GENERAL.—A recipient of funds from a Commission
under this subtitle shall maintain accurate and complete
records of transactions and activities financed with the funds
and report to the Commission on the transactions and activities.
‘‘(2) AVAILABILITY.—All records required under paragraph
(1) shall be available for audit by the Commission and the
Inspector General (including authorized representatives of the
Commission and the Inspector General).
‘‘(d) ANNUAL AUDIT.—The Inspector General shall audit the
activities, transactions, and records of each Commission on an
annual basis.
‘‘§ 15705. Biannual meetings of representatives of all Commissions
‘‘(a) IN GENERAL.—Representatives of each Commission, the
Appalachian Regional Commission, and the Denali Commission
shall meet biannually to discuss issues confronting regions suffering

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from chronic and contiguous distress and successful strategies for
promoting regional development.
‘‘(b) CHAIR OF MEETINGS.—The chair of each meeting shall
rotate among the Commissions, with the Appalachian Regional
Commission to host the first meeting.
‘‘SUBCHAPTER II—DESIGNATION OF REGIONS
‘‘§ 15731. Southeast Crescent Regional Commission
‘‘The region of the Southeast Crescent Regional Commission
shall consist of all counties of the States of Virginia, North Carolina,
South Carolina, Georgia, Alabama, Mississippi, and Florida not
already served by the Appalachian Regional Commission or the
Delta Regional Authority.

State listing.

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‘‘§ 15732. Southwest Border Regional Commission
‘‘The region of the Southwest Border Regional Commission
shall consist of the following political subdivisions:
‘‘(1) ARIZONA.—The counties of Cochise, Gila, Graham,
Greenlee, La Paz, Maricopa, Pima, Pinal, Santa Cruz, and
Yuma in the State of Arizona.
‘‘(2) CALIFORNIA.—The counties of Imperial, Los Angeles,
Orange, Riverside, San Bernardino, San Diego, and Ventura
in the State of California.
‘‘(3) NEW MEXICO.—The counties of Catron, Chaves, Dona
Ana, Eddy, Grant, Hidalgo, Lincoln, Luna, Otero, Sierra, and
Socorro in the State of New Mexico.
‘‘(4) TEXAS.—The counties of Atascosa, Bandera, Bee,
Bexar, Brewster, Brooks, Cameron, Coke, Concho, Crane,
Crockett, Culberson, Dimmit, Duval, Ector, Edwards, El Paso,
Frio, Gillespie, Glasscock, Hidalgo, Hudspeth, Irion, Jeff Davis,
Jim Hogg, Jim Wells, Karnes, Kendall, Kenedy, Kerr, Kimble,
Kinney, Kleberg, La Salle, Live Oak, Loving, Mason, Maverick,
McMullen, Medina, Menard, Midland, Nueces, Pecos, Presidio,
Reagan, Real, Reeves, San Patricio, Shleicher, Sutton, Starr,
Sterling, Terrell, Tom Green Upton, Uvalde, Val Verde, Ward,
Webb, Willacy, Wilson, Winkler, Zapata, and Zavala in the
State of Texas.
‘‘§ 15733. Northern Border Regional Commission
‘‘The region of the Northern Border Regional Commission shall
include the following counties:
‘‘(1) MAINE.—The counties of Androscoggin, Aroostook,
Franklin, Hancock, Kennebec, Knox, Oxford, Penobscot,
Piscataquis, Somerset, Waldo, and Washington in the State
of Maine.
‘‘(2) NEW HAMPSHIRE.—The counties of Carroll, Coos,
Grafton, and Sullivan in the State of New Hampshire.
‘‘(3) NEW YORK.—The counties of Cayuga, Clinton, Essex,
Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madison, Oneida, Oswego, Seneca, and St. Lawrence in the State
of New York.
‘‘(4) VERMONT.—The counties of Caledonia, Essex, Franklin,
Grand Isle, Lamoille, and Orleans in the State of Vermont.

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‘‘SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS
‘‘§ 15751. Authorization of appropriations
‘‘(a) IN GENERAL.—There is authorized to be appropriated to
each Commission to carry out this subtitle $30,000,000 for each
of fiscal years 2008 through 2012.
‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 10 percent
of the funds made available to a Commission in a fiscal year
under this section may be used for administrative expenses.’’.
(b) CLERICAL AMENDMENT TO TABLE OF SUBTITLES.—The table
of subtitles for chapter 40, United States Code, is amended by
striking the item relating to subtitle V and inserting the following:
‘‘V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT ....15101
‘‘VI. MISCELLANEOUS ........................................................................................17101’’.

40 USC 15101
note.

7 USC 6941a.

(c) CONFORMING AMENDMENTS TO INSPECTOR GENERAL ACT.—
Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.)
is amended—
(1) in paragraph (1), by striking ‘‘or the President of the
Export-Import Bank;’’ and inserting ‘‘the President of the
Export-Import Bank; or the Federal Cochairpersons of the
Commissions established under section 15301 of title 40, United
States Code;’’; and
(2) in paragraph (2), by striking ‘‘or the Export-Import
Bank,’’ and inserting ‘‘the Export-Import Bank, or the Commissions established under section 15301 of title 40, United States
Code,’’.
(d) EFFECTIVE DATE.—This section, and the amendments made
by this section, shall take effect on the first day of the first fiscal
year beginning after the date of the enactment of this Act.
SEC. 14218. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL
AREAS.

(a) ESTABLISHMENT.—The Secretary of Agriculture shall establish a Coordinator for Chronically Underserved Rural Areas (in
this section referred to as the ‘‘Coordinator’’), to be located in
the Rural Development Mission Area.
(b) MISSION.—The mission of the Coordinator shall be to direct
Department of Agriculture resources to high need, high poverty
rural areas.
(c) DUTIES.—The Coordinator shall consult with other offices
in directing technical assistance, strategic regional planning, at
the State and local level, for developing rural economic development
that leverages the resources of State and local governments and
non-profit and community development organizations.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary such sums as necessary to
carry out this section for fiscal years 2008 through 2012.

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SEC. 14219. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE
TO COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.

(a) ELIMINATION.—Section 3716(e) of title 31, United States
Code, is amended to read as follows:
‘‘(e)(1) Notwithstanding any other provision of law, regulation,
or administrative limitation, no limitation on the period within
which an offset may be initiated or taken pursuant to this section
shall be effective.

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‘‘(2) This section does not apply when a statute explicitly prohibits using administrative offset or setoff to collect the claim or
type of claim involved.’’.
(b) APPLICATION OF AMENDMENT.—The amendment made by
subsection (a) shall apply to any debt outstanding on or after
the date of the enactment of this Act.
SEC. 14220. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN
RURAL AREAS.

31 USC 3716
note.
7 USC 2206b.

In addition to any other authority, the Secretary of Agriculture
may make available to an organization excess or surplus computers
or other technical equipment of the Department of Agriculture
for the purposes of distribution to a city, town, or local government
entity in a rural area (as defined in section 343(a)(13)(A) of the
Consolidated Farm and Rural Development Act).
SEC. 14221. REPEAL OF SECTION 3068 OF THE WATER RESOURCES
DEVELOPMENT ACT OF 2007.

7 USC 612c–5.

Effective upon the date of enactment of this Act, section 3068
of the Water Resources Development Act of 2007 (Public Law 110114; 121 Stat. 1123), and the item relating to section 3068 in
the table of contents of that Act, are repealed.

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SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS.

(a) DEFINITION OF SECTION 32.—In this section, the term ‘‘section 32’’ means section 32 of the Act of August 24, 1935 (7 U.S.C.
612c).
(b) TRANSFER TO FOOD AND NUTRITION SERVICE.—
(1) IN GENERAL.—Amounts made available for a fiscal year
to carry out section 32 in excess of the maximum amount
calculated under paragraph (2) shall be transferred to the Secretary, acting through the Administrator of the Food and Nutrition Service, to be used to carry out the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.).
(2) MAXIMUM AMOUNT.—The maximum amount calculated
under this paragraph for a fiscal year is the sum of—
(A)(i) in the case of fiscal year 2009, $1,173,000,000;
(ii) in the case of fiscal year 2010, $1,199,000,000;
(iii) in the case of fiscal year 2011, $1,215,000,000;
(iv) in the case of fiscal year 2012, $1,231,000,000;
(v) in the case of fiscal year 2013, $1,248,000,000;
(vi) in the case of fiscal year 2014, $1,266,000,000;
(vii) in the case of fiscal year 2015, $1,284,000,000;
(viii) in the case of fiscal year 2016, $1,303,000,000;
(ix) in the case of fiscal year 2017, $1,322,000,000;
and
(x) for fiscal year 2018 and each fiscal year thereafter,
the amount made available for the preceding fiscal year,
as adjusted to reflect changes for the 12-month period
ending on the preceding November 30 in the Consumer
Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor;
and
(B) any transfers for the fiscal year from section 32 to
the Department of Commerce under the Fish and Wildlife
Act of 1956 (16 U.S.C. 742a et seq.).
(c) FRESH FRUIT AND VEGETABLE PROGRAM.—Of amounts made
available to carry out section 32 under subsection (b)(2)(A), the

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Secretary shall transfer for use to carry out the fresh fruit and
vegetable program under section 19 of the Richard B. Russell
National School Lunch Act the amounts specified in subsection
(i) of that section.
(d) WHOLE GRAIN PRODUCTS.—Of amounts made available to
carry out section 32 under subsection (b)(2)(A), the Secretary shall
use to carry out section 4305 $4,000,000 for fiscal year 2009.
(e) MAINTENANCE OF FUNDING.—The funding provided under
subsections (c) and (d) shall supplement (and not supplant) other
Federal funding (including section 32 funding) for programs carried
out under—
(1) the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.), except for section 19 of that Act;
(2) the Emergency Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.); and
(3) section 27 of the Food Stamp Act of 1977 (7 U.S.C.
2036).
SEC. 14223. TECHNICAL CORRECTION.

Section 923(1)(B) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 2206a(1)(B)) is amended by striking
‘‘as defined in section 316(b) of the Higher Education Act of 1965
(20 U.S.C. 1059c(b))’’ and inserting ‘‘as defined in section 502(a)(5)
of the Higher Education Act of 1965 (20 U.S.C. 1101a(a)(5))’’.

TITLE XV—TRADE AND TAX
PROVISIONS

Heartland,
Habitat, Harvest,
and Horticulture
Act of 2008.
26 USC 1 note.

SEC. 15001. SHORT TITLE; ETC.

(a) SHORT TITLE.—This title may be cited as the ‘‘Heartland,
Habitat, Harvest, and Horticulture Act of 2008’’.
(b) AMENDMENTS TO 1986 CODE.—Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be made
to a section or other provision of the Internal Revenue Code of
1986.

Subtitle A—Supplemental Agricultural Disaster Assistance From the Agricultural
Disaster Relief Trust Fund
SEC. 15101. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

(a) IN GENERAL.—The Trade Act of 1974 (19 U.S.C. 2101 et
seq.) is amended by adding at the end the following:

‘‘TITLE IX—SUPPLEMENTAL
AGRICULTURAL DISASTER ASSISTANCE
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19 USC 2497.

‘‘SEC. 901. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

‘‘(a) DEFINITIONS.—In this section:

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122 STAT. 2247

‘‘(1) ACTUAL PRODUCTION HISTORY YIELD.—The term ‘actual
production history yield’ means the weighted average of the
actual production history for each insurable commodity or noninsurable commodity, as calculated under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) or the noninsured crop
disaster assistance program, respectively.
‘‘(2) ADJUSTED ACTUAL PRODUCTION HISTORY YIELD.—The
term ‘adjusted actual production history yield’ means—
‘‘(A) in the case of an eligible producer on a farm
that has at least 4 years of actual production history yields
for an insurable commodity that are established other than
pursuant to section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(4)(B)), the actual production
history for the eligible producer without regard to any
yields established under that section;
‘‘(B) in the case of an eligible producer on a farm
that has less than 4 years of actual production history
yields for an insurable commodity, of which 1 or more
were established pursuant to section 508(g)(4)(B) of that
Act, the actual production history for the eligible producer
as calculated without including the lowest of the yields
established pursuant to section 508(g)(4)(B) of that Act;
and
‘‘(C) in all other cases, the actual production history
of the eligible producer on a farm.
‘‘(3) ADJUSTED NONINSURED CROP DISASTER ASSISTANCE PROGRAM YIELD.—The term ‘adjusted noninsured crop disaster
assistance program yield’ means—
‘‘(A) in the case of an eligible producer on a farm
that has at least 4 years of production history under the
noninsured crop disaster assistance program that are not
replacement yields, the noninsured crop disaster assistance
program yield without regard to any replacement yields;
‘‘(B) in the case of an eligible producer on a farm
that less than 4 years of production history under the
noninsured crop disaster assistance program that are not
replacement yields, the noninsured crop disaster assistance
program yield as calculated without including the lowest
of the replacement yields; and
‘‘(C) in all other cases, the production history of the
eligible producer on the farm under the noninsured crop
disaster assistance program.
‘‘(4) COUNTER-CYCLICAL PROGRAM PAYMENT YIELD.—The
term ‘counter-cyclical program payment yield’ means the
weighted average payment yield established under section 1102
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7912), section 1102 of the Food, Conservation, and
Energy Act of 2008, or a successor section.
‘‘(5) DISASTER COUNTY.—
‘‘(A) IN GENERAL.—The term ‘disaster county’ means
a county included in the geographic area covered by a
qualifying natural disaster declaration.
‘‘(B) INCLUSION.—The term ‘disaster county’ includes—
‘‘(i) a county contiguous to a county described in
subparagraph (A); and
‘‘(ii) any farm in which, during a calendar year,
the total loss of production of the farm relating to

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weather is greater than 50 percent of the normal
production of the farm, as determined by the Secretary.
‘‘(6) ELIGIBLE PRODUCER ON A FARM.—
‘‘(A) IN GENERAL.—The term ‘eligible producer on a
farm’ means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes
the production and market risks associated with the agricultural production of crops or livestock.
‘‘(B) DESCRIPTION.—An individual or entity referred
to in subparagraph (A) is—
‘‘(i) a citizen of the United States;
‘‘(ii) a resident alien;
‘‘(iii) a partnership of citizens of the United States;
or
‘‘(iv) a corporation, limited liability corporation, or
other farm organizational structure organized under
State law.
‘‘(7) FARM.—
‘‘(A) IN GENERAL.—The term ‘farm’ means, in relation
to an eligible producer on a farm, the sum of all crop
acreage in all counties that is planted or intended to be
planted for harvest by the eligible producer.
‘‘(B) AQUACULTURE.—In the case of aquaculture, the
term ‘farm’ means, in relation to an eligible producer on
a farm, all fish being produced in all counties that are
intended to be harvested for sale by the eligible producer.
‘‘(C) HONEY.—In the case of honey, the term ‘farm’
means, in relation to an eligible producer on a farm, all
bees and beehives in all counties that are intended to
be harvested for a honey crop by the eligible producer.
‘‘(8) FARM-RAISED FISH.—The term ‘farm-raised fish’ means
any aquatic species that is propagated and reared in a controlled environment.
‘‘(9) INSURABLE COMMODITY.—The term ‘insurable commodity’ means an agricultural commodity (excluding livestock)
for which the producer on a farm is eligible to obtain a policy
or plan of insurance under the Federal Crop Insurance Act
(7 U.S.C. 1501 et seq.).
‘‘(10) LIVESTOCK.—The term ‘livestock’ includes—
‘‘(A) cattle (including dairy cattle);
‘‘(B) bison;
‘‘(C) poultry;
‘‘(D) sheep;
‘‘(E) swine;
‘‘(F) horses; and
‘‘(G) other livestock, as determined by the Secretary.
‘‘(11) NONINSURABLE COMMODITY.—The term ‘noninsurable
commodity’ means a crop for which the eligible producers on
a farm are eligible to obtain assistance under the noninsured
crop assistance program.
‘‘(12) NONINSURED CROP ASSISTANCE PROGRAM.—The term
‘noninsured crop assistance program’ means the program carried out under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
‘‘(13) QUALIFYING NATURAL DISASTER DECLARATION.—The
term ‘qualifying natural disaster declaration’ means a natural
disaster declared by the Secretary for production losses under

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section 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1961(a)).
‘‘(14) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture.
‘‘(15) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The
term ‘socially disadvantaged farmer or rancher’ has the
meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
‘‘(16) STATE.—The term ‘State’ means—
‘‘(A) a State;
‘‘(B) the District of Columbia;
‘‘(C) the Commonwealth of Puerto Rico; and
‘‘(D) any other territory or possession of the United
States.
‘‘(17) TRUST FUND.—The term ‘Trust Fund’ means the Agricultural Disaster Relief Trust Fund established under section
902.
‘‘(18) UNITED STATES.—The term ‘United States’ when used
in a geographical sense, means all of the States.
‘‘(b) SUPPLEMENTAL REVENUE ASSISTANCE PAYMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall use such sums as
are necessary from the Trust Fund to make crop disaster assistance payments to eligible producers on farms in disaster counties that have incurred crop production losses or crop quality
losses, or both, during the crop year.
‘‘(2) AMOUNT.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary shall provide crop disaster assistance payments
under this section to an eligible producer on a farm in
an amount equal to 60 percent of the difference between—
‘‘(i) the disaster assistance program guarantee, as
described in paragraph (3); and
‘‘(ii) the total farm revenue for a farm, as described
in paragraph (4).
‘‘(B) LIMITATION.—The disaster assistance program
guarantee for a crop used to calculate the payments for
a farm under subparagraph (A)(i) may not be greater than
90 percent of the sum of the expected revenue, as described
in paragraph (5) for each of the crops on a farm, as determined by the Secretary.
‘‘(3) SUPPLEMENTAL REVENUE ASSISTANCE PROGRAM GUARANTEE.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
this paragraph, the supplemental assistance program guarantee shall be the sum obtained by adding—
‘‘(i) for each insurable commodity on the farm,
115 percent of the product obtained by multiplying—
‘‘(I) a payment rate for the commodity that
is equal to the price election for the commodity
elected by the eligible producer;
‘‘(II) the payment acres for the commodity that
is equal to the number of acres planted, or prevented from being planted, to the commodity;
‘‘(III) the payment yield for the commodity
that is equal to the percentage of the crop insurance yield elected by the producer of the higher
of—

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‘‘(aa) the adjusted actual production history yield; or
‘‘(bb) the counter-cyclical program payment yield for each crop; and
‘‘(ii) for each noninsurable commodity on a farm,
120 percent of the product obtained by multiplying—
‘‘(I) a payment rate for the commodity that
is equal to 100 percent of the noninsured crop
assistance program established price for the commodity;
‘‘(II) the payment acres for the commodity that
is equal to the number of acres planted, or prevented from being planted, to the commodity; and
‘‘(III) the payment yield for the commodity
that is equal to the higher of—
‘‘(aa) the adjusted noninsured crop assistance program yield guarantee; or
‘‘(bb) the counter-cyclical program payment yield for each crop.
‘‘(B) ADJUSTMENT INSURANCE GUARANTEE.—Notwithstanding subparagraph (A), in the case of an insurable
commodity for which a plan of insurance provides for an
adjustment in the guarantee, such as in the case of prevented planting, the adjusted insurance guarantee shall
be the basis for determining the disaster assistance program guarantee for the insurable commodity.
‘‘(C) ADJUSTED ASSISTANCE LEVEL.—Notwithstanding
subparagraph (A), in the case of a noninsurable commodity
for which the noninsured crop assistance program provides
for an adjustment in the level of assistance, such as in
the case of unharvested crops, the adjusted assistance level
shall be the basis for determining the disaster assistance
program guarantee for the noninsurable commodity.
‘‘(D) EQUITABLE TREATMENT FOR NON-YIELD BASED POLICIES.—The Secretary shall establish equitable treatment
for non-yield based policies and plans of insurance, such
as the Adjusted Gross Revenue Lite insurance program.
‘‘(4) FARM REVENUE.—
‘‘(A) IN GENERAL.—For purposes of this subsection, the
total farm revenue for a farm, shall equal the sum obtained
by adding—
‘‘(i) the estimated actual value for each crop produced on a farm by using the product obtained by
multiplying—
‘‘(I) the actual crop acreage harvested by an
eligible producer on a farm;
‘‘(II) the estimated actual yield of the crop
production; and
‘‘(III) subject to subparagraphs (B) and (C),
to the extent practicable, the national average
market price received for the marketing year, as
determined by the Secretary;
‘‘(ii) 15 percent of amount of any direct payments
made to the producer under sections 1103 and 1303
of the Food, Conservation, and Energy Act of 2008
or successor sections;

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‘‘(iii) the total amount of any counter-cyclical payments made to the producer under sections 1104 and
1304 of the Food, Conservation, and Energy Act of
2008 or successor sections or of any average crop revenue election payments made to the producer under
section 1105 of that Act;
‘‘(iv) the total amount of any loan deficiency payments, marketing loan gains, and marketing certificate
gains made to the producer under subtitles B and
C of the Food, Conservation, and Energy Act of 2008
or successor subtitles;
‘‘(v) the amount of payments for prevented planting
on a farm;
‘‘(vi) the amount of crop insurance indemnities
received by an eligible producer on a farm for each
crop on a farm;
‘‘(vii) the amount of payments an eligible producer
on a farm received under the noninsured crop assistance program for each crop on a farm; and
‘‘(viii) the value of any other natural disaster
assistance payments provided by the Federal Government to an eligible producer on a farm for each crop
on a farm for the same loss for which the eligible
producer is seeking assistance.
‘‘(B) ADJUSTMENT.—The Secretary shall adjust the
average market price received by the eligible producer on
a farm—
‘‘(i) to reflect the average quality discounts applied
to the local or regional market price of a crop or
mechanically harvested forage due to a reduction in
the intrinsic characteristics of the production resulting
from adverse weather, as determined annually by the
State office of the Farm Service Agency; and
‘‘(ii) to account for a crop the value of which is
reduced due to excess moisture resulting from a disaster-related condition.
‘‘(C) MAXIMUM AMOUNT FOR CERTAIN CROPS.—With
respect to a crop for which an eligible producer on a farm
receives assistance under the noninsured crop assistance
program, the national average market price received during
the marketing year shall be an amount not more than
100 percent of the price of the crop established under
the noninsured crop assistance program.
‘‘(5) EXPECTED REVENUE.—The expected revenue for each
crop on a farm shall equal the sum obtained by adding—
‘‘(A) the product obtained by multiplying—
‘‘(i) the greatest of—
‘‘(I) the adjusted actual production history
yield of the eligible producer on a farm; and
‘‘(II) the counter-cyclical program payment
yield;
‘‘(ii) the acreage planted or prevented from being
planted for each crop; and
‘‘(iii) 100 percent of the insurance price guarantee;
and
‘‘(B) the product obtained by multiplying—

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‘‘(i) 100 percent of the adjusted noninsured crop
assistance program yield; and
‘‘(ii) 100 percent of the noninsured crop assistance
program price for each of the crops on a farm.
‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.—
‘‘(1) PAYMENTS.—The Secretary shall use such sums as
are necessary from the Trust Fund to make livestock indemnity
payments to eligible producers on farms that have incurred
livestock death losses in excess of the normal mortality due
to adverse weather, as determined by the Secretary, during
the calendar year, including losses due to hurricanes, floods,
blizzards, disease, wildfires, extreme heat, and extreme cold.
‘‘(2) PAYMENT RATES.—Indemnity payments to an eligible
producer on a farm under paragraph (1) shall be made at
a rate of 75 percent of the market value of the applicable
livestock on the day before the date of death of the livestock,
as determined by the Secretary.
‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) COVERED LIVESTOCK.—
‘‘(i) IN GENERAL.—The term ‘covered livestock’
means livestock of an eligible livestock producer that,
during the 60 days prior to the beginning date of
a qualifying drought or fire condition, as determined
by the Secretary, the eligible livestock producer—
‘‘(I) owned;
‘‘(II) leased;
‘‘(III) purchased;
‘‘(IV) entered into a contract to purchase;
‘‘(V) is a contract grower; or
‘‘(VI) sold or otherwise disposed of due to qualifying drought conditions during—
‘‘(aa) the current production year; or
‘‘(bb) subject to paragraph (3)(B)(ii), 1 or
both of the 2 production years immediately
preceding the current production year.
‘‘(ii) EXCLUSION.—The term ‘covered livestock’ does
not include livestock that were or would have been
in a feedlot, on the beginning date of the qualifying
drought or fire condition, as a part of the normal
business operation of the eligible livestock producer,
as determined by the Secretary.
‘‘(B) DROUGHT MONITOR.—The term ‘drought monitor’
means a system for classifying drought severity according
to a range of abnormally dry to exceptional drought, as
defined by the Secretary.
‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.—
‘‘(i) IN GENERAL.—The term ‘eligible livestock producer’ means an eligible producer on a farm that—
‘‘(I) is an owner, cash or share lessee, or contract grower of covered livestock that provides the
pastureland or grazing land, including cash-leased
pastureland or grazing land, for the livestock;
‘‘(II) provides the pastureland or grazing land
for covered livestock, including cash-leased
pastureland or grazing land that is physically
located in a county affected by drought;

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‘‘(III) certifies grazing loss; and
‘‘(IV) meets all other eligibility requirements
established under this subsection.
‘‘(ii) EXCLUSION.—The term ‘eligible livestock producer’ does not include an owner, cash or share lessee,
or contract grower of livestock that rents or leases
pastureland or grazing land owned by another person
on a rate-of-gain basis.
‘‘(D) NORMAL CARRYING CAPACITY.—The term ‘normal
carrying capacity’, with respect to each type of grazing
land or pastureland in a county, means the normal carrying
capacity, as determined under paragraph (3)(D)(i), that
would be expected from the grazing land or pastureland
for livestock during the normal grazing period, in the
absence of a drought or fire that diminishes the production
of the grazing land or pastureland.
‘‘(E) NORMAL GRAZING PERIOD.—The term ‘normal
grazing period’, with respect to a county, means the normal
grazing period during the calendar year for the county,
as determined under paragraph (3)(D)(i).
‘‘(2) PROGRAM.—The Secretary shall use such sums as are
necessary from the Trust Fund to provide compensation for
losses to eligible livestock producers due to grazing losses for
covered livestock due to—
‘‘(A) a drought condition, as described in paragraph
(3); or
‘‘(B) fire, as described in paragraph (4).
‘‘(3) ASSISTANCE FOR LOSSES DUE TO DROUGHT CONDITIONS.—
‘‘(A) ELIGIBLE LOSSES.—
‘‘(i) IN GENERAL.—An eligible livestock producer
may receive assistance under this subsection only for
grazing losses for covered livestock that occur on land
that—
‘‘(I) is native or improved pastureland with
permanent vegetative cover; or
‘‘(II) is planted to a crop planted specifically
for the purpose of providing grazing for covered
livestock.
‘‘(ii) EXCLUSIONS.—An eligible livestock producer
may not receive assistance under this subsection for
grazing losses that occur on land used for haying or
grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle
D of title XII of the Food Security Act of 1985 (16
U.S.C. 3831 et seq.).
‘‘(B) MONTHLY PAYMENT RATE.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), the payment rate for assistance under this paragraph for 1 month shall, in the case of drought, be
equal to 60 percent of the lesser of—
‘‘(I) the monthly feed cost for all covered livestock owned or leased by the eligible livestock
producer, as determined under subparagraph (C);
or

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‘‘(II) the monthly feed cost calculated by using
the normal carrying capacity of the eligible grazing
land of the eligible livestock producer.
‘‘(ii) PARTIAL COMPENSATION.—In the case of an
eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions
in 1 or both of the 2 production years immediately
preceding the current production year, as determined
by the Secretary, the payment rate shall be 80 percent
of the payment rate otherwise calculated in accordance
with clause (i).
‘‘(C) MONTHLY FEED COST.—
‘‘(i) IN GENERAL.—The monthly feed cost shall
equal the product obtained by multiplying—
‘‘(I) 30 days;
‘‘(II) a payment quantity that is equal to the
feed grain equivalent, as determined under clause
(ii); and
‘‘(III) a payment rate that is equal to the corn
price per pound, as determined under clause (iii).
‘‘(ii) FEED GRAIN EQUIVALENT.—For purposes of
clause (i)(I), the feed grain equivalent shall equal—
‘‘(I) in the case of an adult beef cow, 15.7
pounds of corn per day; or
‘‘(II) in the case of any other type of weight
of livestock, an amount determined by the Secretary that represents the average number of
pounds of corn per day necessary to feed the livestock.
‘‘(iii) CORN PRICE PER POUND.—For purposes of
clause (i)(II), the corn price per pound shall equal
the quotient obtained by dividing—
‘‘(I) the higher of—
‘‘(aa) the national average corn price per
bushel for the 12-month period immediately
preceding March 1 of the year for which the
disaster assistance is calculated; or
‘‘(bb) the national average corn price per
bushel for the 24-month period immediately
preceding that March 1; by
‘‘(II) 56.
‘‘(D) NORMAL GRAZING PERIOD AND DROUGHT MONITOR
INTENSITY.—
‘‘(i) FSA COUNTY COMMITTEE DETERMINATIONS.—
‘‘(I) IN GENERAL.—The Secretary shall determine the normal carrying capacity and normal
grazing period for each type of grazing land or
pastureland in the county served by the applicable
committee.
‘‘(II) CHANGES.—No change to the normal carrying capacity or normal grazing period established
for a county under subclause (I) shall be made
unless the change is requested by the appropriate
State and county Farm Service Agency committees.
‘‘(ii) DROUGHT INTENSITY.—
‘‘(I) D2.—An eligible livestock producer that
owns or leases grazing land or pastureland that

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is physically located in a county that is rated by
the U.S. Drought Monitor as having a D2 (severe
drought) intensity in any area of the county for
at least 8 consecutive weeks during the normal
grazing period for the county, as determined by
the Secretary, shall be eligible to receive assistance
under this paragraph in an amount equal to 1
monthly payment using the monthly payment rate
determined under subparagraph (B).
‘‘(II) D3.—An eligible livestock producer that
owns or leases grazing land or pastureland that
is physically located in a county that is rated by
the U.S. Drought Monitor as having at least a
D3 (extreme drought) intensity in any area of the
county at any time during the normal grazing
period for the county, as determined by the Secretary, shall be eligible to receive assistance under
this paragraph—
‘‘(aa) in an amount equal to 2 monthly
payments using the monthly payment rate
determined under subparagraph (B); or
‘‘(bb) if the county is rated as having a
D3 (extreme drought) intensity in any area
of the county for at least 4 weeks during the
normal grazing period for the county, or is
rated as having a D4 (exceptional drought)
intensity in any area of the county at any
time during the normal grazing period, in an
amount equal to 3 monthly payments using
the monthly payment rate determined under
subparagraph (B).
‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON PUBLIC MANAGED LAND.—
‘‘(A) IN GENERAL.—An eligible livestock producer may
receive assistance under this paragraph only if—
‘‘(i) the grazing losses occur on rangeland that
is managed by a Federal agency; and
‘‘(ii) the eligible livestock producer is prohibited
by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to
a fire.
‘‘(B) PAYMENT RATE.—The payment rate for assistance
under this paragraph shall be equal to 50 percent of the
monthly feed cost for the total number of livestock covered
by the Federal lease of the eligible livestock producer,
as determined under paragraph (3)(C).
‘‘(C) PAYMENT DURATION.—
‘‘(i) IN GENERAL.—Subject to clause (ii), an eligible
livestock producer shall be eligible to receive assistance
under this paragraph for the period—
‘‘(I) beginning on the date on which the Federal agency excludes the eligible livestock producer
from using the managed rangeland for grazing;
and
‘‘(II) ending on the last day of the Federal
lease of the eligible livestock producer.

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‘‘(ii) LIMITATION.—An eligible livestock producer
may only receive assistance under this paragraph for
losses that occur on not more than 180 days per year.
‘‘(5) MINIMUM RISK MANAGEMENT PURCHASE REQUIREMENTS.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
this paragraph, a livestock producer shall only be eligible
for assistance under this subsection if the livestock producer—
‘‘(i) obtained a policy or plan of insurance under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
for the grazing land incurring the losses for which
assistance is being requested; or
‘‘(ii) filed the required paperwork, and paid the
administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for
the grazing land incurring the losses for which assistance is being requested.
‘‘(B) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED
RESOURCE, OR BEGINNING FARMER OR RANCHER.—In the
case of an eligible livestock producer that is a socially
disadvantaged farmer or rancher or limited resource or
beginning farmer or rancher, as determined by the Secretary, the Secretary may—
‘‘(i) waive subparagraph (A); and
‘‘(ii) provide disaster assistance under this section
at a level that the Secretary determines to be equitable
and appropriate.
‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.—In the case
of an eligible livestock producer that suffered losses on
grazing land during the 2008 calendar year but does not
meet the requirements of subparagraph (A), the Secretary
shall waive subparagraph (A) if the eligible livestock producer pays a fee in an amount equal to the applicable
noninsured crop assistance program fee or catastrophic
risk protection plan fee required under subparagraph (A)
to the Secretary not later than 90 days after the date
of enactment of this subtitle.
‘‘(D) EQUITABLE RELIEF.—
‘‘(i) IN GENERAL.—The Secretary may provide equitable relief to an eligible livestock producer that is
otherwise ineligible or unintentionally fails to meet
the requirements of subparagraph (A) for the grazing
land incurring the loss on a case-by-case basis, as
determined by the Secretary.
‘‘(ii) 2008 CALENDAR YEAR.—In the case of an
eligible livestock producer that suffered losses on
grazing land during the 2008 calendar year, the Secretary shall take special consideration to provide equitable relief in cases in which the eligible livestock
producer failed to meet the requirements of subparagraph (A) due to the enactment of this title after the
closing date of sales periods for crop insurance under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
and the noninsured crop assistance program.
‘‘(6) NO DUPLICATIVE PAYMENTS.—

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‘‘(A) IN GENERAL.—An eligible livestock producer may
elect to receive assistance for grazing or pasture feed losses
due to drought conditions under paragraph (3) or fire under
paragraph (4), but not both for the same loss, as determined
by the Secretary.
‘‘(B) RELATIONSHIP TO SUPPLEMENTAL REVENUE ASSISTANCE.—An eligible livestock producer that receives assistance under this subsection may not also receive assistance
for losses to crops on the same land with the same intended
use under subsection (b).
‘‘(e) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND
FARM-RAISED FISH.—
‘‘(1) IN GENERAL.—The Secretary shall use up to
$50,000,000 per year from the Trust Fund to provide emergency
relief to eligible producers of livestock, honey bees, and farmraised fish to aid in the reduction of losses due to disease,
adverse weather, or other conditions, such as blizzards and
wildfires, as determined by the Secretary, that are not covered
under subsection (b), (c), or (d).
‘‘(2) USE OF FUNDS.—Funds made available under this subsection shall be used to reduce losses caused by feed or water
shortages, disease, or other factors as determined by the Secretary.
‘‘(3) AVAILABILITY OF FUNDS.—Any funds made available
under this subsection shall remain available until expended.
‘‘(f) TREE ASSISTANCE PROGRAM.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) ELIGIBLE ORCHARDIST.—The term ‘eligible
orchardist’ means a person that produces annual crops
from trees for commercial purposes.
‘‘(B) NATURAL DISASTER.—The term ‘natural disaster’
means plant disease, insect infestation, drought, fire,
freeze, flood, earthquake, lightning, or other occurrence,
as determined by the Secretary.
‘‘(C) NURSERY TREE GROWER.—The term ‘nursery tree
grower’ means a person who produces nursery, ornamental,
fruit, nut, or Christmas trees for commercial sale, as determined by the Secretary.
‘‘(D) TREE.—The term ‘tree’ includes a tree, bush, and
vine.
‘‘(2) ELIGIBILITY.—
‘‘(A) LOSS.—Subject to subparagraph (B), the Secretary
shall provide assistance—
‘‘(i) under paragraph (3) to eligible orchardists and
nursery tree growers that planted trees for commercial
purposes but lost the trees as a result of a natural
disaster, as determined by the Secretary; and
‘‘(ii) under paragraph (3)(B) to eligible orchardists
and nursery tree growers that have a production history for commercial purposes on planted or existing
trees but lost the trees as a result of a natural disaster,
as determined by the Secretary.
‘‘(B) LIMITATION.—An eligible orchardist or nursery
tree grower shall qualify for assistance under subparagraph
(A) only if the tree mortality of the eligible orchardist
or nursery tree grower, as a result of damaging weather

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or related condition, exceeds 15 percent (adjusted for
normal mortality).
‘‘(3) ASSISTANCE.—Subject to paragraph (4), the assistance
provided by the Secretary to eligible orchardists and nursery
tree growers for losses described in paragraph (2) shall consist
of—
‘‘(A)(i) reimbursement of 70 percent of the cost of
replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality
(adjusted for normal mortality); or
‘‘(ii) at the option of the Secretary, sufficient seedlings
to reestablish a stand; and
‘‘(B) reimbursement of 50 percent of the cost of pruning,
removal, and other costs incurred by an eligible orchardist
or nursery tree grower to salvage existing trees or, in
the case of tree mortality, to prepare the land to replant
trees as a result of damage or tree mortality due to a
natural disaster, as determined by the Secretary, in excess
of 15 percent damage or mortality (adjusted for normal
tree damage and mortality).
‘‘(4) LIMITATIONS ON ASSISTANCE.—
‘‘(A) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In
this paragraph, the terms ‘legal entity’ and ‘person’ have
the meaning given those terms in section 1001(a) of the
Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended
by section 1603 of the Food, Conservation, and Energy
Act of 2008).
‘‘(B) AMOUNT.—The total amount of payments received,
directly or indirectly, by a person or legal entity (excluding
a joint venture or general partnership) under this subsection may not exceed $100,000 for any crop year, or
an equivalent value in tree seedlings.
‘‘(C) ACRES.—The total quantity of acres planted to
trees or tree seedlings for which a person or legal entity
shall be entitled to receive payments under this subsection
may not exceed 500 acres.
‘‘(g) RISK MANAGEMENT PURCHASE REQUIREMENT.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
section, the eligible producers on a farm shall not be eligible
for assistance under this section (other than subsection (c))
if the eligible producers on the farm—
‘‘(A) in the case of each insurable commodity of the
eligible producers on the farm, did not obtain a policy
or plan of insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) (excluding a crop insurance
pilot program under that Act); or
‘‘(B) in the case of each noninsurable commodity of
the eligible producers on the farm, did not file the required
paperwork, and pay the administrative fee by the
applicable State filing deadline, for the noninsured crop
assistance program.
‘‘(2) MINIMUM.—To be considered to have obtained insurance under paragraph (1)(A), an eligible producer on a farm
shall have obtained a policy or plan of insurance with not
less than 50 percent yield coverage at 55 percent of the insurable price for each crop grazed, planted, or intended to be
planted for harvest on a whole farm.

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‘‘(3) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED
RESOURCE, OR BEGINNING FARMER OR RANCHER.—With respect
to eligible producers that are socially disadvantaged farmers
or ranchers or limited resource or beginning farmers or
ranchers, as determined by the Secretary, the Secretary may—
‘‘(A) waive paragraph (1); and
‘‘(B) provide disaster assistance under this section at
a level that the Secretary determines to be equitable and
appropriate.
‘‘(4) WAIVER FOR 2008 CROP YEAR.—In the case of an eligible
producer that suffered losses in an insurable commodity or
noninsurable commodity during the 2008 crop year but does
not meet the requirements of paragraph (1), the Secretary
shall waive paragraph (1) if the eligible producer pays a fee
in an amount equal to the applicable noninsured crop assistance
program fee or catastrophic risk protection plan fee required
under paragraph (1) to the Secretary not later than 90 days
after the date of enactment of this subtitle.
‘‘(5) EQUITABLE RELIEF.—
‘‘(A) IN GENERAL.—The Secretary may provide equitable relief to eligible producers on a farm that are otherwise ineligible or unintentionally fail to meet the requirements of paragraph (1) for 1 or more crops on a farm
on a case-by-case basis, as determined by the Secretary.
‘‘(B) 2008 CROP YEAR.—In the case of eligible producers
on a farm that suffered losses in an insurable commodity
or noninsurable commodity during the 2008 crop year, the
Secretary shall take special consideration to provide equitable relief in cases in which the eligible producers failed
to meet the requirements of paragraph (1) due to the
enactment of this title after the closing date of sales periods
for crop insurance under the Federal Crop Insurance Act
(7 U.S.C. 1501 et seq.) and the noninsured crop assistance
program.
‘‘(h) PAYMENT LIMITATIONS.—
‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In this
subsection, the terms ‘legal entity’ and ‘person’ have the
meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section
1603 of the Food, Conservation, and Energy Act of 2008).
‘‘(2) AMOUNT.—The total amount of disaster assistance payments received, directly or indirectly, by a person or legal
entity (excluding a joint venture or general partnership) under
this section (excluding payments received under subsection (f))
may not exceed $100,000 for any crop year.
‘‘(3) AGI LIMITATION.—Section 1001D of the Food Security
Act of 1985 (7 U.S.C. 1308–3a) or any successor provision
shall apply with respect to assistance provided under this section.
‘‘(4) DIRECT ATTRIBUTION.—Subsections (e) and (f) of section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or
any successor provisions relating to direct attribution shall
apply with respect to assistance provided under this section.
‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall be effective
only for losses that are incurred as the result of a disaster, adverse
weather, or other environmental condition that occurs on or before
September 30, 2011, as determined by the Secretary.

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‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing any other
program which makes disaster assistance payments (except for
indemnities made under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.)) and section 196 of the Federal Agriculture Improvement and Reform Act of 1996), the Secretary shall prevent duplicative payments with respect to the same loss for which a person
receives a payment under subsections (b), (c), (d), (e), or (f).

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19 USC 2497a.

‘‘SEC. 902. AGRICULTURAL DISASTER RELIEF TRUST FUND.

‘‘(a) CREATION OF TRUST FUND.—There is established in the
Treasury of the United States a trust fund to be known as the
‘Agricultural Disaster Relief Trust Fund’, consisting of such
amounts as may be appropriated or credited to such Trust Fund
as provided in this section.
‘‘(b) TRANSFER TO TRUST FUND.—
‘‘(1) IN GENERAL.—There are appropriated to the Agricultural Disaster Relief Trust Fund amounts equivalent to 3.08
percent of the amounts received in the general fund of the
Treasury of the United States during fiscal years 2008 through
2011 attributable to the duties collected on articles entered,
or withdrawn from warehouse, for consumption under the Harmonized Tariff Schedule of the United States.
‘‘(2) AMOUNTS BASED ON ESTIMATES.—The amounts appropriated under this section shall be transferred at least monthly
from the general fund of the Treasury of the United States
to the Agricultural Disaster Relief Trust Fund on the basis
of estimates made by the Secretary of the Treasury. Proper
adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less
than the amounts required to be transferred.
‘‘(3) LIMITATION ON TRANSFERS TO AGRICULTURAL DISASTER
RELIEF TRUST FUND.—No amount may be appropriated to the
Agricultural Disaster Relief Trust Fund on and after the date
of any expenditure from the Agricultural Disaster Relief Trust
Fund which is not permitted by this section. The determination
of whether an expenditure is so permitted shall be made without regard to—
‘‘(A) any provision of law which is not contained or
referenced in this title or in a revenue Act, and
‘‘(B) whether such provision of law is a subsequently
enacted provision or directly or indirectly seeks to waive
the application of this paragraph.
‘‘(c) ADMINISTRATION.—
‘‘(1) REPORTS.—The Secretary of the Treasury shall be the
trustee of the Agricultural Disaster Relief Trust Fund and
shall submit an annual report to Congress each year on the
financial condition and the results of the operations of such
Trust Fund during the preceding fiscal year and on its expected
condition and operations during the 4 fiscal years succeeding
such fiscal year. Such report shall be printed as a House
document of the session of Congress to which the report is
made.
‘‘(2) INVESTMENT.—
‘‘(A) IN GENERAL.—The Secretary of the Treasury shall
invest such portion of the Agricultural Disaster Relief Trust
Fund as is not in his judgment required to meet current
withdrawals. Such investments may be made only in

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interest bearing obligations of the United States. For such
purpose, such obligations may be acquired—
‘‘(i) on original issue at the issue price, or
‘‘(ii) by purchase of outstanding obligations at the
market price.
‘‘(B) SALE OF OBLIGATIONS.—Any obligation acquired
by the Agricultural Disaster Relief Trust Fund may be
sold by the Secretary of the Treasury at the market price.
‘‘(C) INTEREST ON CERTAIN PROCEEDS.—The interest
on, and the proceeds from the sale or redemption of, any
obligations held in the Agricultural Disaster Relief Trust
Fund shall be credited to and form a part of such Trust
Fund.
‘‘(d) EXPENDITURES FROM TRUST FUND.—Amounts in the Agricultural Disaster Relief Trust Fund shall be available for the purposes of making expenditures to meet those obligations of the
United States incurred under section 901 or section 531 of the
Federal Crop Insurance Act (as such sections are in effect on the
date of the enactment of the Food, Conservation, and Energy Act
of 2008).
‘‘(e) AUTHORITY TO BORROW.—
‘‘(1) IN GENERAL.—There are authorized to be appropriated,
and are appropriated, to the Agricultural Disaster Relief Trust
Fund, as repayable advances, such sums as may be necessary
to carry out the purposes of such Trust Fund.
‘‘(2) REPAYMENT OF ADVANCES.—
‘‘(A) IN GENERAL.—Advances made to the Agricultural
Disaster Relief Trust Fund shall be repaid, and interest
on such advances shall be paid, to the general fund of
the Treasury when the Secretary determines that moneys
are available for such purposes in such Trust Fund.
‘‘(B) RATE OF INTEREST.—Interest on advances made
pursuant to this subsection shall be—
‘‘(i) at a rate determined by the Secretary of the
Treasury (as of the close of the calendar month preceding the month in which the advance is made) to
be equal to the current average market yield on outstanding marketable obligations of the United States
with remaining periods to maturity comparable to the
anticipated period during which the advance will be
outstanding, and
‘‘(ii) compounded annually.

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‘‘SEC. 903. JURISDICTION.

19 USC 2497b.

‘‘Legislation in the Senate of the United States amending section 901 or 902 shall be referred to the Committee on Finance
of the Senate.’’.
(b) TRANSITION.—For purposes of the 2008 crop year, the Secretary shall carry out subsections (f)(4) and (h) of section 901
of the Trade Act of 1974 (as added by subsection (a)) in accordance
with the terms and conditions of sections 1001 through 1001D
of the Food Security Act of 1985 (16 U.S.C. 1308 et seq.), as
in effect on September 30, 2007.
(c) CLERICAL AMENDMENT.—The table of contents for the Trade
Act of 1974 (19 U.S.C. 2101 et seq.) is amended by adding at
the end the following:

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PUBLIC LAW 110–246—JUNE 18, 2008
‘‘TITLE IX—SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE

‘‘Sec. 901. Supplemental agricultural disaster assistance.
‘‘Sec. 902. Agricultural Disaster Relief Trust Fund.
‘‘Sec. 903. Jurisdiction.’’.

Subtitle B—Revenue Provisions for
Agriculture Programs
SEC. 15201. CUSTOMS USER FEES.

19 USC 58c note.

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26 USC 6655
note.

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(a) IN GENERAL.—Section 13031(j)(3)(A) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A))
is amended by striking ‘‘December 27, 2014’’ and inserting
‘‘November 14, 2017’’.
(b) OTHER FEES.—Section 13031(j)(3)(B)(i) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i))
is amended by striking ‘‘December 27, 2014’’ and inserting ‘‘September 30, 2017’’.
(c) TIME FOR REMITTING CERTAIN COBRA FEES.—Notwithstanding any other provision of law, any fees authorized under
paragraphs (1) through (8) of section 13031(a) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a) (1)
through (8)) with respect to customs services provided on or after
July 1, 2017, and before September 20, 2017, shall be paid not
later than September 25, 2017.
(d) TIME FOR REMITTING CERTAIN MERCHANDISE PROCESSING
FEES.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, any fees authorized under paragraphs (9) and (10) of
section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a) (9) and (10)) with respect
to processing merchandise entered on or after October 1, 2017,
and before November 15, 2017, shall be paid not later than
September 25, 2017, in an amount equivalent to the amount
of such fees paid by the person responsible for such fees with
respect to merchandise entered on or after October 1, 2016,
and before November 15, 2016, as determined by the Secretary
of the Treasury.
(2) RECONCILIATION OF MERCHANDISE PROCESSING FEES.—
Not later than December 15, 2017, the Secretary of the
Treasury shall reconcile the fees paid pursuant to paragraph
(1) with the fees for services actually provided on or after
October 1, 2017, and before November 15, 2017, and shall
refund with interest any overpayment of such fees and make
proper adjustments with respect to any underpayment of such
fees. No interest may be assessed with respect to any such
underpayment that was based on the amount of fees paid
for merchandise entered on or after October 1, 2016, and before
November 15, 2016.
SEC. 15202. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

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

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Subtitle C—Tax Provisions
PART I—CONSERVATION
Subpart A—Land and Species Preservation
Provisions
SEC. 15301. EXCLUSION OF CONSERVATION RESERVE PROGRAM PAYMENTS FROM SECA TAX FOR CERTAIN INDIVIDUALS.

(a) INTERNAL REVENUE CODE.—Section 1402(a)(1) (defining net
earnings from self-employment) is amended by inserting ‘‘, and
including payments under section 1233(2) of the Food Security
Act of 1985 (16 U.S.C. 3833(2)) to individuals receiving benefits
under section 202 or 223 of the Social Security Act’’ after ‘‘crop
shares’’.
(b) SOCIAL SECURITY ACT.—Section 211(a)(1) of the Social Security Act is amended by inserting ‘‘, and including payments under
section 1233(2) of the Food Security Act of 1985 (16 U.S.C. 3833(2))
to individuals receiving benefits under section 202 or 223’’ after
‘‘crop shares’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to payments made after December 31, 2007.

26 USC 1402.

42 USC 411.

26 USC 1402
note.

SEC. 15302. TWO-YEAR EXTENSION OF SPECIAL RULE ENCOURAGING
CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY
FOR CONSERVATION PURPOSES.

(a) IN GENERAL.—
(1) INDIVIDUALS.—Section 170(b)(1)(E)(vi) (relating to
termination) is amended by striking ‘‘December 31, 2007’’ and
inserting ‘‘December 31, 2009’’.
(2) CORPORATIONS.—Section 170(b)(2)(B)(iii) (relating to
termination) is amended by striking ‘‘December 31, 2007’’ and
inserting ‘‘December 31, 2009’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to contributions made in taxable years beginning after
December 31, 2007.
SEC. 15303. DEDUCTION FOR ENDANGERED SPECIES RECOVERY
EXPENDITURES.

(a) DEDUCTION

FOR

ENDANGERED SPECIES RECOVERY EXPENDI-

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TURES.—

(1) IN GENERAL.—Paragraph (1) of section 175(c) (relating
to definitions) is amended by inserting after the first sentence
the following new sentence: ‘‘Such term shall include expenditures paid or incurred for the purpose of achieving site-specific
management actions recommended in recovery plans approved
pursuant to the Endangered Species Act of 1973.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 175 is amended by inserting ‘‘, or for endangered species recovery’’ after ‘‘prevention of erosion of land
used in farming’’ each place it appears in subsections (a)
and (c).
(B) The heading of section 175 is amended by inserting
‘‘; ENDANGERED SPECIES RECOVERY EXPENDITURES’’ before
the period.
(C) The item relating to section 175 in the table of
sections for part VI of subchapter B of chapter 1 is amended

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26 USC 175.

26 USC 175 note.

PUBLIC LAW 110–246—JUNE 18, 2008

by inserting ‘‘; endangered species recovery expenditures’’
before the period.
(b) LIMITATIONS.—Paragraph (3) of section 175(c) (relating to
additional limitations) is amended—
(1) in the heading of subparagraph (A), by inserting ‘‘OR
ENDANGERED SPECIES RECOVERY PLAN’’ after ‘‘CONSERVATION
PLAN’’, and
(2) in subparagraph (A)(i), by inserting ‘‘or the recovery
plan approved pursuant to the Endangered Species Act of 1973’’
after ‘‘Department of Agriculture’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to expenditures paid or incurred after December 31,
2008.

Subpart B—Timber Provisions
SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED
TIMBER GAIN OF CORPORATIONS.

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(a) IN GENERAL.—Section 1201 (relating to alternative tax for
corporations) is amended by redesignating subsection (b) as subsection (c) and by adding after subsection (a) the following new
subsection:
‘‘(b) SPECIAL RATE FOR QUALIFIED TIMBER GAINS.—
‘‘(1) IN GENERAL.—If, for any taxable year ending after
the date of the enactment of the Food, Conservation, and
Energy Act of 2008 and beginning on or before the date which
is 1 year after such date, a corporation has both a net capital
gain and qualified timber gain—
‘‘(A) subsection (a) shall apply to such corporation for
the taxable year without regard to whether the applicable
tax rate exceeds 35 percent, and
‘‘(B) the tax computed under subsection (a)(2) shall
be equal to the sum of—
‘‘(i) 15 percent of the least of—
‘‘(I) qualified timber gain,
‘‘(II) net capital gain, or
‘‘(III) taxable income, plus
‘‘(ii) 35 percent of the excess (if any) of taxable
income over the sum of the amounts for which a tax
was determined under subsection (a)(1) and clause (i).
‘‘(2) QUALIFIED TIMBER GAIN.—For purposes of this section,
the term ‘qualified timber gain’ means, with respect to any
taxpayer for any taxable year, the excess (if any) of—
‘‘(A) the sum of the taxpayer’s gains described in subsections (a) and (b) of section 631 for such year, over
‘‘(B) the sum of the taxpayer’s losses described in such
subsections for such year.
For purposes of subparagraphs (A) and (B), only timber held
more than 15 years shall be taken into account.
‘‘(3) COMPUTATION FOR TAXABLE YEARS IN WHICH RATE FIRST
APPLIES OR ENDS.—In the case of any taxable year which
includes either of the dates set forth in paragraph (1), the
qualified timber gain for such year shall not exceed the qualified
timber gain properly taken into account for—
‘‘(A) in the case of the taxable year including the date
of the enactment of the Food, Conservation, and Energy
Act of 2008, the portion of the year after such date, and

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‘‘(B) in the case of the taxable year including the date
which is 1 year after such date of enactment, the portion
of the year on or before such later date.’’.
(b) MINIMUM TAX.—Subsection (b) of section 55 is amended
by adding at the end the following paragraph:
‘‘(4) MAXIMUM RATE OF TAX ON QUALIFIED TIMBER GAIN
OF CORPORATIONS.—In the case of any taxable year to which
section 1201(b) applies, the amount determined under clause
(i) of subparagraph (B) shall not exceed the sum of—
‘‘(A) 20 percent of so much of the taxable excess (if
any) as exceeds the qualified timber gain (or, if less, the
net capital gain), plus
‘‘(B) 15 percent of the taxable excess in excess of the
amount on which a tax is determined under subparagraph
(A).
Any term used in this paragraph which is also used in section
1201 shall have the meaning given such term by such section,
except to the extent such term is subject to adjustment under
this part.’’.
(c) CONFORMING AMENDMENT.—Section 857(b)(3)(A)(ii) is
amended by striking ‘‘rate’’ and inserting ‘‘rates’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years ending after the date of enactment.

26 USC 55.

26 USC 55 note.

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SEC. 15312. TIMBER REIT MODERNIZATION.

(a) IN GENERAL.—Section 856(c)(5) is amended by adding after
subparagraph (G) the following new subparagraph:
‘‘(H) TREATMENT OF TIMBER GAINS.—
‘‘(i) IN GENERAL.—Gain from the sale of real property described in paragraph (2)(D) and (3)(C) shall
include gain which is—
‘‘(I) recognized by an election under section
631(a) from timber owned by the real estate investment trust, the cutting of which is provided by
a taxable REIT subsidiary of the real estate investment trust;
‘‘(II) recognized under section 631(b); or
‘‘(III) income which would constitute gain
under subclause (I) or (II) but for the failure to
meet the 1-year holding period requirement.
‘‘(ii) SPECIAL RULES.—
‘‘(I) For purposes of this subtitle, cut timber,
the gain from which is recognized by a real estate
investment trust pursuant to an election under
section 631(a) described in clause (i)(I) or so much
of clause (i)(III) as relates to clause (i)(I), shall
be deemed to be sold to the taxable REIT subsidiary of the real estate investment trust on the
first day of the taxable year.
‘‘(II) For purposes of this subtitle, income
described in this subparagraph shall not be treated
as gain from the sale of property described in
section 1221(a)(1).
‘‘(iii) TERMINATION.—This subparagraph shall not
apply to dispositions after the termination date.’’.
(b) TERMINATION DATE.—Subsection (c) of section 856 is
amended by adding at the end the following new paragraph:

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‘‘(8) TERMINATION DATE.—For purposes of this subsection,
the term ‘termination date’ means, with respect to any taxpayer,
the last day of the taxpayer’s first taxable year beginning
after the date of the enactment of this paragraph and before
the date that is 1 year after such date of enactment.’’.
(c) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to dispositions in taxable years beginning after
the date of the enactment of this Act.
SEC. 15313. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR
TIMBER REITS.

26 USC 856.

26 USC 856 note.

(a) IN GENERAL.—Section 856(c)(2) is amended by striking ‘‘and’’
at the end of subparagraph (G), by inserting ‘‘and’’ at the end
of subparagraph (H), and by adding after subparagraph (H) the
following new subparagraph:
‘‘(I) mineral royalty income earned in the first taxable
year beginning after the date of the enactment of this
subparagraph from real property owned by a timber real
estate investment trust and held, or once held, in connection with the trade or business of producing timber by
such real estate investment trust;’’.
(b) TIMBER REAL ESTATE INVESTMENT TRUST.—Section
856(c)(5), as amended by this Act, is amended by adding after
subparagraph (H) the following new subparagraph:
‘‘(I) TIMBER REAL ESTATE INVESTMENT TRUST.—The
term ‘timber real estate investment trust’ means a real
estate investment trust in which more than 50 percent
in value of its total assets consists of real property held
in connection with the trade or business of producing
timber.’’.
(c) EFFECTIVE DATE.—The amendments by this section shall
apply to taxable years beginning after the date of the enactment
of this Act.
SEC. 15314. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST
FOR TIMBER REITS.

26 USC 856 note.

(a) IN GENERAL.—Section 856(c)(4)(B)(ii) is amended by
inserting ‘‘(in the case of a quarter which closes on or before the
termination date, 25 percent in the case of a timber real estate
investment trust)’’ after ‘‘REIT subsidiaries’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after the date of the enactment of this Act.

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SEC. 15315. SAFE HARBOR FOR TIMBER PROPERTY.

(a) IN GENERAL.—Section 857(b)(6) (relating to income from
prohibited transactions) is amended by adding at the end the following new subparagraph:
‘‘(G) SPECIAL RULES FOR SALES TO QUALIFIED ORGANIZATIONS.—
‘‘(i) IN GENERAL.—In the case of the sale of a
real estate asset (as defined in section 856(c)(5)(B))
to a qualified organization (as defined in section
170(h)(3)) exclusively for conservation purposes (within
the meaning of section 170(h)(1)(C)), subparagraph (D)
shall be applied—
‘‘(I) by substituting ‘2 years’ for ‘4 years’ in
clause (i), and

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‘‘(II) by substituting ‘2-year period’ for ‘4-year
period’ in clauses (ii) and (iii).
‘‘(ii) TERMINATION.—This subparagraph shall not
apply to sales after the termination date.’’.
(b) PROHIBITED TRANSACTIONS.—Section 857(b)(6)(D)(v) is
amended by inserting ‘‘, or, in the case of a sale on or before
the termination date, a taxable REIT subsidiary’’ after ‘‘any income’’.
(c) SALES THAT ARE NOT PROHIBITED TRANSACTIONS.—Section
857(b)(6), as amended by subsection (a), is amended by adding
at the end the following new subparagraph:
‘‘(H) SALES OF PROPERTY THAT ARE NOT A PROHIBITED
TRANSACTION.—In the case of a sale on or before the termination date, the sale of property which is not a prohibited
transaction through the application of subparagraph (D)
shall be considered property held for investment or for
use in a trade or business and not property described
in section 1221(a)(1) for all purposes of this subtitle.’’.
(d) TERMINATION DATE.—Section 857(b)(6), as amended by subsections (a) and (c), is amended by adding at the end the following
new subparagraph:
‘‘(I) TERMINATION DATE.—For purposes of this paragraph, the term ‘termination date’ has the meaning given
such term by section 856(c)(8).’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall apply to dispositions in taxable years beginning after the
date of the enactment of this Act.

26 USC 857.

26 USC 857 note.

SEC. 15316. QUALIFIED FORESTRY CONSERVATION BONDS.

(a) IN GENERAL.—Part IV of subchapter A of chapter 1 (relating
to credits against tax) is amended by adding at the end the following
new subpart:

‘‘Subpart I—Qualified Tax Credit Bonds
‘‘Sec. 54A. Credit to holders of qualified tax credit bonds.
‘‘Sec. 54B. Qualified forestry conservation bonds.

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‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds a qualified
tax credit bond on one or more credit allowance dates of the bond
during any taxable year, there shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an amount
equal to the sum of the credits determined under subsection (b)
with respect to such dates.
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit determined
under this subsection with respect to any credit allowance
date for a qualified tax credit bond is 25 percent of the annual
credit determined with respect to such bond.
‘‘(2) ANNUAL CREDIT.—The annual credit determined with
respect to any qualified tax credit bond is the product of—
‘‘(A) the applicable credit rate, multiplied by
‘‘(B) the outstanding face amount of the bond.
‘‘(3) APPLICABLE CREDIT RATE.—For purposes of paragraph
(2), the applicable credit rate is the rate which the Secretary
estimates will permit the issuance of qualified tax credit bonds
with a specified maturity or redemption date without discount
and without interest cost to the qualified issuer. The applicable

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Applicability.

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credit rate with respect to any qualified tax credit bond shall
be determined as of the first day on which there is a binding,
written contract for the sale or exchange of the bond.
‘‘(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION.—In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—
‘‘(1) IN GENERAL.—The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of—
‘‘(A) the sum of the regular tax liability (as defined
in section 26(b)) plus the tax imposed by section 55, over
‘‘(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the credit allowable
under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried
to the succeeding taxable year and added to the credit allowable
under subsection (a) for such taxable year (determined before
the application of paragraph (1) for such succeeding taxable
year).
‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes of this section—
‘‘(1) QUALIFIED TAX CREDIT BOND.—The term ‘qualified tax
credit bond’ means a qualified forestry conservation bond which
is part of an issue that meets the requirements of paragraphs
(2), (3), (4), (5), and (6).
‘‘(2) SPECIAL RULES RELATING TO EXPENDITURES.—
‘‘(A) IN GENERAL.—An issue shall be treated as meeting
the requirements of this paragraph if, as of the date of
issuance, the issuer reasonably expects—
‘‘(i) 100 percent or more of the available project
proceeds to be spent for 1 or more qualified purposes
within the 3-year period beginning on such date of
issuance, and
‘‘(ii) a binding commitment with a third party to
spend at least 10 percent of such available project
proceeds will be incurred within the 6-month period
beginning on such date of issuance.
‘‘(B) FAILURE TO SPEND REQUIRED AMOUNT OF BOND
PROCEEDS WITHIN 3 YEARS.—
‘‘(i) IN GENERAL.—To the extent that less than
100 percent of the available project proceeds of the
issue are expended by the close of the expenditure
period for 1 or more qualified purposes, the issuer
shall redeem all of the nonqualified bonds within 90
days after the end of such period. For purposes of
this paragraph, the amount of the nonqualified bonds
required to be redeemed shall be determined in the
same manner as under section 142.
‘‘(ii) EXPENDITURE PERIOD.—For purposes of this
subpart, the term ‘expenditure period’ means, with
respect to any issue, the 3-year period beginning on

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 2269

the date of issuance. Such term shall include any extension of such period under clause (iii).
‘‘(iii) EXTENSION OF PERIOD.—Upon submission of
a request prior to the expiration of the expenditure
period (determined without regard to any extension
under this clause), the Secretary may extend such
period if the issuer establishes that the failure to
expend the proceeds within the original expenditure
period is due to reasonable cause and the expenditures
for qualified purposes will continue to proceed with
due diligence.
‘‘(C) QUALIFIED PURPOSE.—For purposes of this paragraph, the term ‘qualified purpose’ means a purpose specified in section 54B(e).
‘‘(D) REIMBURSEMENT.—For purposes of this subtitle,
available project proceeds of an issue shall be treated as
spent for a qualified purpose if such proceeds are used
to reimburse the issuer for amounts paid for a qualified
purpose after the date that the Secretary makes an allocation of bond limitation with respect to such issue, but
only if—
‘‘(i) prior to the payment of the original expenditure, the issuer declared its intent to reimburse such
expenditure with the proceeds of a qualified tax credit
bond,
‘‘(ii) not later than 60 days after payment of the
original expenditure, the issuer adopts an official intent
to reimburse the original expenditure with such proceeds, and
‘‘(iii) the reimbursement is made not later than
18 months after the date the original expenditure is
paid.
‘‘(3) REPORTING.—An issue shall be treated as meeting
the requirements of this paragraph if the issuer of qualified
tax credit bonds submits reports similar to the reports required
under section 149(e).
‘‘(4) SPECIAL RULES RELATING TO ARBITRAGE.—
‘‘(A) IN GENERAL.—An issue shall be treated as meeting
the requirements of this paragraph if the issuer satisfies
the requirements of section 148 with respect to the proceeds
of the issue.
‘‘(B) SPECIAL RULE FOR INVESTMENTS DURING EXPENDITURE PERIOD.—An issue shall not be treated as failing
to meet the requirements of subparagraph (A) by reason
of any investment of available project proceeds during the
expenditure period.
‘‘(C) SPECIAL RULE FOR RESERVE FUNDS.—An issue shall
not be treated as failing to meet the requirements of
subparagraph (A) by reason of any fund which is expected
to be used to repay such issue if—
‘‘(i) such fund is funded at a rate not more rapid
than equal annual installments,
‘‘(ii) such fund is funded in a manner reasonably
expected to result in an amount not greater than an
amount necessary to repay the issue, and

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Certification.

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‘‘(iii) the yield on such fund is not greater than
the discount rate determined under paragraph (5)(B)
with respect to the issue.
‘‘(5) MATURITY LIMITATION.—
‘‘(A) IN GENERAL.—An issue shall be treated as meeting
the requirements of this paragraph if the maturity of any
bond which is part of such issue does not exceed the maximum term determined by the Secretary under subparagraph (B).
‘‘(B) MAXIMUM TERM.—During each calendar month,
the Secretary shall determine the maximum term permitted under this paragraph for bonds issued during the
following calendar month. Such maximum term shall be
the term which the Secretary estimates will result in the
present value of the obligation to repay the principal on
the bond being equal to 50 percent of the face amount
of such bond. Such present value shall be determined using
as a discount rate the average annual interest rate of
tax-exempt obligations having a term of 10 years or more
which are issued during the month. If the term as so
determined is not a multiple of a whole year, such term
shall be rounded to the next highest whole year.
‘‘(6) PROHIBITION ON FINANCIAL CONFLICTS OF INTEREST.—
An issue shall be treated as meeting the requirements of this
paragraph if the issuer certifies that—
‘‘(A) applicable State and local law requirements governing conflicts of interest are satisfied with respect to
such issue, and
‘‘(B) if the Secretary prescribes additional conflicts of
interest rules governing the appropriate Members of Congress, Federal, State, and local officials, and their spouses,
such additional rules are satisfied with respect to such
issue.
‘‘(e) OTHER DEFINITIONS.—For purposes of this subchapter—
‘‘(1) CREDIT ALLOWANCE DATE.—The term ‘credit allowance
date’ means—
‘‘(A) March 15,
‘‘(B) June 15,
‘‘(C) September 15, and
‘‘(D) December 15.
Such term includes the last day on which the bond is outstanding.
‘‘(2) BOND.—The term ‘bond’ includes any obligation.
‘‘(3) STATE.—The term ‘State’ includes the District of
Columbia and any possession of the United States.
‘‘(4) AVAILABLE PROJECT PROCEEDS.—The term ‘available
project proceeds’ means—
‘‘(A) the excess of—
‘‘(i) the proceeds from the sale of an issue, over
‘‘(ii) the issuance costs financed by the issue (to
the extent that such costs do not exceed 2 percent
of such proceeds), and
‘‘(B) the proceeds from any investment of the excess
described in subparagraph (A).
‘‘(f) CREDIT TREATED AS INTEREST.—For purposes of this subtitle, the credit determined under subsection (a) shall be treated
as interest which is includible in gross income.

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122 STAT. 2271

‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the case of a
tax credit bond held by an S corporation or partnership, the allocation of the credit allowed by this section to the shareholders of
such corporation or partners of such partnership shall be treated
as a distribution.
‘‘(h) BONDS HELD BY REGULATED INVESTMENT COMPANIES AND
REAL ESTATE INVESTMENT TRUSTS.—If any qualified tax credit bond
is held by a regulated investment company or a real estate investment trust, the credit determined under subsection (a) shall be
allowed to shareholders of such company or beneficiaries of such
trust (and any gross income included under subsection (f) with
respect to such credit shall be treated as distributed to such shareholders or beneficiaries) under procedures prescribed by the Secretary.
‘‘(i) CREDITS MAY BE STRIPPED.—Under regulations prescribed
by the Secretary—
‘‘(1) IN GENERAL.—There may be a separation (including
at issuance) of the ownership of a qualified tax credit bond
and the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit under
this section shall be allowed to the person who on the credit
allowance date holds the instrument evidencing the entitlement
to the credit and not to the holder of the bond.
‘‘(2) CERTAIN RULES TO APPLY.—In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a stripped
bond and to the credit under this section as if it were a
stripped coupon.

Regulations.

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‘‘SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS.

‘‘(a) QUALIFIED FORESTRY CONSERVATION BOND.—For purposes
of this subchapter, the term ‘qualified forestry conservation bond’
means any bond issued as part of an issue if—
‘‘(1) 100 percent of the available project proceeds of such
issue are to be used for one or more qualified forestry conservation purposes,
‘‘(2) the bond is issued by a qualified issuer, and
‘‘(3) the issuer designates such bond for purposes of this
section.
‘‘(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The maximum aggregate face amount of bonds which may be designated
under subsection (a) by any issuer shall not exceed the limitation
amount allocated to such issuer under subsection (d).
‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED.—There is a national qualified forestry conservation bond
limitation of $500,000,000.
‘‘(d) ALLOCATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall make allocations
of the amount of the national qualified forestry conservation
bond limitation described in subsection (c) among qualified
forestry conservation purposes in such manner as the Secretary
determines appropriate so as to ensure that all of such limitation is allocated before the date which is 24 months after
the date of the enactment of this section.
‘‘(2) SOLICITATION OF APPLICATIONS.—The Secretary shall
solicit applications for allocations of the national qualified forestry conservation bond limitation described in subsection (c)

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122 STAT. 2272

PUBLIC LAW 110–246—JUNE 18, 2008

not later than 90 days after the date of the enactment of
this section.
‘‘(e) QUALIFIED FORESTRY CONSERVATION PURPOSE.—For purposes of this section, the term ‘qualified forestry conservation purpose’ means the acquisition by a State or any political subdivision
or instrumentality thereof or a 501(c)(3) organization (as defined
in section 150(a)(4)) from an unrelated person of forest and forest
land that meets the following qualifications:
‘‘(1) Some portion of the land acquired must be adjacent
to United States Forest Service Land.
‘‘(2) At least half of the land acquired must be transferred
to the United States Forest Service at no net cost to the
United States and not more than half of the land acquired
may either remain with or be conveyed to a State.
‘‘(3) All of the land must be subject to a native fish habitat
conservation plan approved by the United States Fish and
Wildlife Service.
‘‘(4) The amount of acreage acquired must be at least
40,000 acres.
‘‘(f) QUALIFIED ISSUER.—For purposes of this section, the term
‘qualified issuer’ means a State or any political subdivision or
instrumentality thereof or a 501(c)(3) organization (as defined in
section 150(a)(4)).
‘‘(g) SPECIAL ARBITRAGE RULE.—In the case of any qualified
forestry conservation bond issued as part of an issue, section
54A(d)(4)(C) shall be applied to such issue without regard to clause
(i).
‘‘(h) ELECTION TO TREAT 50 PERCENT OF BOND ALLOCATION
AS PAYMENT OF TAX.—
‘‘(1) IN GENERAL.—If—
‘‘(A) a qualified issuer receives an allocation of any
portion of the national qualified forestry conservation bond
limitation described in subsection (c), and
‘‘(B) the qualified issuer elects the application of this
subsection with respect to such allocation,
then the qualified issuer (without regard to whether the issuer
is subject to tax under this chapter) shall be treated as having
made a payment against the tax imposed by this chapter,
for the taxable year preceding the taxable year in which the
allocation is received, in an amount equal to 50 percent of
the amount of such allocation.
‘‘(2) TREATMENT OF DEEMED PAYMENT.—
‘‘(A) IN GENERAL.—Notwithstanding any other provision of this title, the Secretary shall not use the payment
of tax described in paragraph (1) as an offset or credit
against any tax liability of the qualified issuer but shall
refund such payment to such issuer.
‘‘(B) NO INTEREST.—Except as provided in paragraph
(3)(A), the payment described in paragraph (1) shall not
be taken into account in determining any amount of
interest under this title.
‘‘(3) REQUIREMENT FOR, AND EFFECT OF, ELECTION.—
‘‘(A) REQUIREMENT.—No election under this subsection
shall take effect unless the qualified issuer certifies to
the Secretary that any payment of tax refunded to the
issuer under this subsection will be used exclusively for
1 or more qualified forestry conservation purposes. If the

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qualified issuer fails to use any portion of such payment
for such purpose, the issuer shall be liable to the United
States in an amount equal to such portion, plus interest
at the overpayment rate under section 6621 for the period
from the date such portion was refunded to the date such
amount is paid. Any such amount shall be assessed and
collected in the same manner as tax imposed by this
chapter, except that subchapter B of chapter 63 (relating
to deficiency procedures) shall not apply in respect of such
assessment or collection.
‘‘(B) EFFECT OF ELECTION ON ALLOCATION.—If a qualified issuer makes the election under this subsection with
respect to any allocation—
‘‘(i) the issuer may issue no bonds pursuant to
the allocation, and
‘‘(ii) the Secretary may not reallocate such allocation for any other purpose.’’.
(b) REPORTING.—Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding at
the end the following new paragraph:
‘‘(9) REPORTING OF CREDIT ON QUALIFIED TAX CREDIT
BONDS.—
‘‘(A) IN GENERAL.—For purposes of subsection (a), the
term ‘interest’ includes amounts includible in gross income
under section 54A and such amounts shall be treated as
paid on the credit allowance date (as defined in section
54A(e)(1)).
‘‘(B) REPORTING TO CORPORATIONS, ETC.—Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this paragraph,
subsection (b)(4) of this section shall be applied without
regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
‘‘(C) REGULATORY AUTHORITY.—The Secretary may prescribe such regulations as are necessary or appropriate
to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed
reporting.’’.
(c) CONFORMING AMENDMENTS.—
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ‘‘subpart C’’ and inserting ‘‘subparts C and I’’.
(2) Section 1397E(c)(2) is amended by striking ‘‘subpart
H’’ and inserting ‘‘subparts H and I’’.
(3) Section 6401(b)(1) is amended by striking ‘‘and H’’ and
inserting ‘‘H, and I’’.
(4) The heading of subpart H of part IV of subchapter
A of chapter 1 is amended by striking ‘‘Certain Bonds’’ and
inserting ‘‘Clean Renewable Energy Bonds’’.
(5) The table of subparts for part IV of subchapter A
of chapter 1 is amended by striking the item relating to subpart
H and inserting the following new items:
‘‘SUBPART H.

26 USC 6049.

NONREFUNDABLE CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY
BONDS.

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‘‘SUBPART I.

QUALIFIED TAX CREDIT BONDS.’’.

(6) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by striking ‘‘or 6428 or 53(e)’’ and
inserting ‘‘, 53(e), 54B(h), or 6428’’.

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26 USC 54 note.

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(d) EFFECTIVE DATES.—The amendments made by this section
shall apply to obligations issued after the date of the enactment
of this Act.

PART II—ENERGY PROVISIONS
Subpart A—Cellulosic Biofuel
SEC. 15321. CREDIT FOR PRODUCTION OF CELLULOSIC BIOFUEL.

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26 USC 40.

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(a) IN GENERAL.—Subsection (a) of section 40 (relating to
alcohol used as fuel) is amended by striking ‘‘plus’’ at the end
of paragraph (1), by striking ‘‘plus’’ at the end of paragraph (2),
by striking the period at the end of paragraph (3) and inserting
‘‘, plus’’, and by adding at the end the following new paragraph:
‘‘(4) the cellulosic biofuel producer credit.’’.
(b) CELLULOSIC BIOFUEL PRODUCER CREDIT.—
(1) IN GENERAL.—Subsection (b) of section 40 is amended
by adding at the end the following new paragraph:
‘‘(6) CELLULOSIC BIOFUEL PRODUCER CREDIT.—
‘‘(A) IN GENERAL.—The cellulosic biofuel producer credit
of any taxpayer is an amount equal to the applicable
amount for each gallon of qualified cellulosic biofuel production.
‘‘(B) APPLICABLE AMOUNT.—For purposes of subparagraph (A), the applicable amount means $1.01, except that
such amount shall, in the case of cellulosic biofuel which
is alcohol, be reduced by the sum of—
‘‘(i) the amount of the credit in effect for such
alcohol under subsection (b)(1) (without regard to subsection (b)(3)) at the time of the qualified cellulosic
biofuel production, plus
‘‘(ii) in the case of ethanol, the amount of the
credit in effect under subsection (b)(4) at the time
of such production.
‘‘(C) QUALIFIED CELLULOSIC BIOFUEL PRODUCTION.—For
purposes of this section, the term ‘qualified cellulosic biofuel
production’ means any cellulosic biofuel which is produced
by the taxpayer, and which during the taxable year—
‘‘(i) is sold by the taxpayer to another person—
‘‘(I) for use by such other person in the production of a qualified cellulosic biofuel mixture in
such other person’s trade or business (other than
casual off-farm production),
‘‘(II) for use by such other person as a fuel
in a trade or business, or
‘‘(III) who sells such cellulosic biofuel at retail
to another person and places such cellulosic biofuel
in the fuel tank of such other person, or
‘‘(ii) is used or sold by the taxpayer for any purpose
described in clause (i).
The qualified cellulosic biofuel production of any taxpayer
for any taxable year shall not include any alcohol which
is purchased by the taxpayer and with respect to which
such producer increases the proof of the alcohol by additional distillation.
‘‘(D) QUALIFIED CELLULOSIC BIOFUEL MIXTURE.—For
purposes of this paragraph, the term ‘qualified cellulosic

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biofuel mixture’ means a mixture of cellulosic biofuel and
gasoline or of cellulosic biofuel and a special fuel which—
‘‘(i) is sold by the person producing such mixture
to any person for use as a fuel, or
‘‘(ii) is used as a fuel by the person producing
such mixture.
‘‘(E) CELLULOSIC BIOFUEL.—For purposes of this paragraph—
‘‘(i) IN GENERAL.—The term ‘cellulosic biofuel’
means any liquid fuel which—
‘‘(I) is produced from any lignocellulosic or
hemicellulosic matter that is available on a renewable or recurring basis, and
‘‘(II) meets the registration requirements for
fuels and fuel additives established by the Environmental Protection Agency under section 211 of the
Clean Air Act (42 U.S.C. 7545).
‘‘(ii) EXCLUSION OF LOW-PROOF ALCOHOL.—Such
term shall not include any alcohol with a proof of
less than 150. The determination of the proof of any
alcohol shall be made without regard to any added
denaturants.
‘‘(F) ALLOCATION OF CELLULOSIC BIOFUEL PRODUCER
CREDIT TO PATRONS OF COOPERATIVE.—Rules similar to the
rules under subsection (g)(6) shall apply for purposes of
this paragraph.
‘‘(G) REGISTRATION REQUIREMENT.—No credit shall be
determined under this paragraph with respect to any taxpayer unless such taxpayer is registered with the Secretary
as a producer of cellulosic biofuel under section 4101.
‘‘(H) APPLICATION OF PARAGRAPH.—This paragraph
shall apply with respect to qualified cellulosic biofuel
production after December 31, 2008, and before January
1, 2013.’’.
(2) TERMINATION DATE NOT TO APPLY.—Subsection (e) of
section 40 (relating to termination) is amended—
(A) by inserting ‘‘or subsection (b)(6)(H)’’ after ‘‘by reason of paragraph (1)’’ in paragraph (2), and
(B) by adding at the end the following new paragraph:
‘‘(3) EXCEPTION FOR CELLULOSIC BIOFUEL PRODUCER
CREDIT.—Paragraph (1) shall not apply to the portion of the
credit allowed under this section by reason of subsection (a)(4).’’.
(3) CONFORMING AMENDMENTS.—
(A) Paragraph (1) of section 4101(a) is amended—
(i) by striking ‘‘and every person’’ and inserting
‘‘, every person’’, and
(ii) by inserting ‘‘, and every person producing
cellulosic biofuel (as defined in section 40(b)(6)(E))’’
after ‘‘section 6426(b)(4)(A))’’.
(B) The heading of section 40, and the item relating
to such section in the table of sections for subpart D of
part IV of subchapter A of chapter 1, are each amended
by inserting ‘‘, etc.,’’ after ‘‘Alcohol’’.
(c) BIOFUEL NOT USED AS A FUEL, ETC.—
(1) IN GENERAL.—Paragraph (3) of section 40(d) is amended
by redesignating subparagraph (D) as subparagraph (E) and

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Applicability.

Time period.

26 USC 4101.

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PUBLIC LAW 110–246—JUNE 18, 2008

by inserting after subparagraph (C) the following new subparagraph:
‘‘(D) CELLULOSIC BIOFUEL PRODUCER CREDIT.—If—
‘‘(i) any credit is allowed under subsection (a)(4),
and
‘‘(ii) any person does not use such fuel for a purpose
described in subsection (b)(6)(C),
then there is hereby imposed on such person a tax equal
to the applicable amount (as defined in subsection (b)(6)(B))
for each gallon of such cellulosic biofuel.’’.
(2) CONFORMING AMENDMENTS.—
(A) Subparagraph (C) of section 40(d)(3) is amended
by striking ‘‘PRODUCER’’ in the heading and inserting
‘‘SMALL ETHANOL PRODUCER’’.
(B) Subparagraph (E) of section 40(d)(3), as redesignated by paragraph (1), is amended by striking ‘‘or (C)’’
and inserting ‘‘(C), or (D)’’.
(d) BIOFUEL PRODUCED IN THE UNITED STATES.—Section 40(d)
is amended by adding at the end the following new paragraph:
‘‘(6) SPECIAL RULE FOR CELLULOSIC BIOFUEL PRODUCER
CREDIT.—No cellulosic biofuel producer credit shall be determined under subsection (a) with respect to any cellulosic biofuel
unless such cellulosic biofuel is produced in the United States
and used as a fuel in the United States. For purposes of
this subsection, the term ‘United States’ includes any possession
of the United States.’’.
(e) WAIVER OF CREDIT LIMIT FOR CELLULOSIC BIOFUEL PRODUCTION BY SMALL ETHANOL PRODUCERS.—Section 40(b)(4)(C) is
amended by inserting ‘‘(determined without regard to any qualified
cellulosic biofuel production)’’ after ‘‘15,000,000 gallons’’.
(f) DENIAL OF DOUBLE BENEFIT.—
(1) BIODIESEL.—Paragraph (1) of section 40A(d) is amended
by adding at the end the following new flush sentence:
‘‘Such term shall not include any liquid with respect to which
a credit may be determined under section 40.’’.
(2) RENEWABLE DIESEL.—Paragraph (3) of section 40A(f)
is amended by adding at the end the following new flush
sentence:
‘‘Such term shall not include any liquid with respect to which
a credit may be determined under section 40.’’.
(g) EFFECTIVE DATE.—The amendments made by this section
shall apply to fuel produced after December 31, 2008.
SEC. 15322. COMPREHENSIVE STUDY OF BIOFUELS.

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Contracts.

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(a) STUDY.—The Secretary of the Treasury, in consultation
with the Secretary of Agriculture, the Secretary of Energy, and
the Administrator of the Environmental Protection Agency, shall
enter into an agreement with the National Academy of Sciences
to produce an analysis of current scientific findings to determine—
(1) current biofuels production, as well as projections for
future production,
(2) the maximum amount of biofuels production capable
in United States forests and farmlands, including the current
quantities and character of the feedstocks and including such
information as regional forest inventories that are commercially
available, used in the production of biofuels,

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(3) the domestic effects of an increase in biofuels production
levels, including the effects of such levels on—
(A) the price of fuel,
(B) the price of land in rural and suburban communities,
(C) crop acreage, forest acreage, and other land use,
(D) the environment, due to changes in crop acreage,
fertilizer use, runoff, water use, emissions from vehicles
utilizing biofuels, and other factors,
(E) the price of feed,
(F) the selling price of grain crops and forest products,
(G) exports and imports of grains and forest products,
(H) taxpayers, through cost or savings to commodity
crop payments, and
(I) the expansion of refinery capacity,
(4) the ability to convert corn ethanol plants for other
uses, such as cellulosic ethanol or biodiesel,
(5) a comparative analysis of corn ethanol versus other
biofuels and renewable energy sources, considering cost, energy
output, and ease of implementation,
(6) the impact of the tax credit established by this subpart
on the regional agricultural and silvicultural capabilities of
commercially available forest inventories, and
(7) the need for additional scientific inquiry, and specific
areas of interest for future research.
(b) REPORT.—The Secretary of the Treasury shall submit an
initial report of the findings of the study required under subsection
(a) to Congress not later than 6 months after the date of the
enactment of this Act (36 months after such date in the case
of the information required by subsection (a)(6)), and a final report
not later than 12 months after such date (42 months after such
date in the case of the information required by subsection (a)(6)).

Subpart B—Revenue Provisions
SEC. 15331. MODIFICATION OF ALCOHOL CREDIT.

(a) INCOME TAX CREDIT.—
(1) IN GENERAL.—The table in paragraph (2) of section
40(h) is amended—
(A) by striking ‘‘through 2010’’ in the first column
and inserting ‘‘, 2006, 2007, or 2008’’,
(B) by striking the period at the end of the third
row, and
(C) by adding at the end the following new row:

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‘‘2009 through 2010

45 cents ....................

33.33 cents.’’.

(2) EXCEPTION.—Section 40(h) is amended by adding at
the end the following new paragraph:
‘‘(3) REDUCTION DELAYED UNTIL ANNUAL PRODUCTION OR
IMPORTATION OF 7,500,000,000 GALLONS.—
‘‘(A) IN GENERAL.—In the case of any calendar year
beginning after 2008, if the Secretary makes a determination described in subparagraph (B) with respect to all preceding calendar years beginning after 2007, the last row
in the table in paragraph (2) shall be applied by substituting ‘51 cents’ for ‘45 cents’.

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26 USC 40.

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26 USC 6426.

Applicability.

26 USC 40 note.

PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(B) DETERMINATION.—A determination described in
this subparagraph with respect to any calendar year is
a determination, in consultation with the Administrator
of the Environmental Protection Agency, that an amount
less than 7,500,000,000 gallons of ethanol (including cellulosic ethanol) has been produced in or imported into
the United States in such year.’’.
(b) EXCISE TAX CREDIT.—
(1) IN GENERAL.—Subparagraph (A) of section 6426(b)(2)
(relating to alcohol fuel mixture credit) is amended by striking
‘‘the applicable amount is 51 cents’’ and inserting ‘‘the
applicable amount is—
‘‘(i) in the case of calendar years beginning before
2009, 51 cents, and
‘‘(ii) in the case of calendar years beginning after
2008, 45 cents.’’.
(2) EXCEPTION.—Paragraph (2) of section 6426(b) is
amended by adding at the end the following new subparagraph:
‘‘(C) REDUCTION DELAYED UNTIL ANNUAL PRODUCTION
OR IMPORTATION OF 7,500,000,000 GALLONS.—In the case of
any calendar year beginning after 2008, if the Secretary
makes a determination described in section 40(h)(3)(B) with
respect to all preceding calendar years beginning after
2007, subparagraph (A)(ii) shall be applied by substituting
‘51 cents’ for ‘45 cents’.’’
(3) CONFORMING AMENDMENT.—Subparagraph (A) of section
6426(b)(2) is amended by striking ‘‘subparagraph (B)’’ and
inserting ‘‘subparagraphs (B) and (C)’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 15332. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL
CREDITS.

26 USC 40 note.

(a) IN GENERAL.—Paragraph (4) of section 40(d) (relating to
volume of alcohol) is amended by striking ‘‘5 percent’’ and inserting
‘‘2 percent’’.
(b) CONFORMING AMENDMENT FOR EXCISE TAX CREDIT.—Section
6426(b) (relating to alcohol fuel mixture credit) is amended by
redesignating paragraph (5) as paragraph (6) and by inserting
after paragraph (4) the following new paragraph:
‘‘(5) VOLUME OF ALCOHOL.—For purposes of determining
under subsection (a) the number of gallons of alcohol with
respect to which a credit is allowable under subsection (a),
the volume of alcohol shall include the volume of any denaturant (including gasoline) which is added under any formulas
approved by the Secretary to the extent that such denaturants
do not exceed 2 percent of the volume of such alcohol (including
denaturants).’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to fuel sold or used after December 31, 2008.

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SEC. 15333. ETHANOL TARIFF EXTENSION.

Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff
Schedule of the United States are each amended in the effective
period column by striking ‘‘1/1/2009’’ and inserting ‘‘1/1/2011’’.

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SEC. 15334. LIMITATIONS ON DUTY DRAWBACK ON CERTAIN IMPORTED
ETHANOL.

(a) IN GENERAL.—Section 313(p) of the Tariff Act of 1930 (19
U.S.C. 1313(p)) is amended by adding at the end the following
new paragraph:
‘‘(5) SPECIAL RULES FOR ETHYL ALCOHOL.—For purposes
of this subsection, any duty paid under subheading 9901.00.50
of the Harmonized Tariff Schedule of the United States on
imports of ethyl alcohol or a mixture of ethyl alcohol may
not be refunded if the exported article upon which a drawback
claim is based does not contain ethyl alcohol or a mixture
of ethyl alcohol.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
applies with respect to—
(1) imports of ethyl alcohol or a mixture of ethyl alcohol
entered for consumption, or withdrawn from warehouse for
consumption, on or after October 1, 2008; and
(2) imports of ethyl alcohol or a mixture of ethyl alcohol
entered for consumption, or withdrawn from warehouse for
consumption, before October 1, 2008, if a duty drawback claim
is filed with respect to such imports on or after October 1,
2010.

Applicability.
19 USC 1313
note.

PART III—AGRICULTURAL PROVISIONS

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SEC. 15341. INCREASE IN LOAN LIMITS ON AGRICULTURAL BONDS.

(a) IN GENERAL.—Subparagraph (A) of section 147(c)(2)
(relating to exception for first-time farmers) is amended by striking
‘‘$250,000’’ and inserting ‘‘$450,000’’.
(b) INFLATION ADJUSTMENT.—Section 147(c)(2) is amended by
adding at the end the following new subparagraph:
‘‘(H) ADJUSTMENTS FOR INFLATION.—In the case of any
calendar year after 2008, the dollar amount in subparagraph (A) shall be increased by an amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year, determined
by substituting ‘calendar year 2007’ for ‘calendar year
1992’ in subparagraph (B) thereof.
If any amount as increased under the preceding sentence
is not a multiple of $100, such amount shall be rounded
to the nearest multiple of $100.’’.
(c) MODIFICATION OF SUBSTANTIAL FARMLAND DEFINITION.—
Section 147(c)(2)(E) (defining substantial farmland) is amended by
striking ‘‘unless’’ and all that follows through the period and
inserting ‘‘unless such parcel is smaller than 30 percent of the
median size of a farm in the county in which such parcel is located.’’.
(d) CONFORMING AMENDMENT.—Section 147(c)(2)(C)(i)(II) is
amended by striking ‘‘$250,000’’ and inserting ‘‘the amount in effect
under subparagraph (A)’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall apply to bonds issued after the date of the enactment of
this Act.

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26 USC 147.

26 USC 147 note.

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PUBLIC LAW 110–246—JUNE 18, 2008

SEC.

26 USC 1031.

26 USC 1031
note.

15342.

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

(a) IN GENERAL.—Section 1031 (relating to exchange of property
held for productive use or investment) is amended by adding at
the end the following new subsection:
‘‘(i) SPECIAL RULES FOR MUTUAL DITCH, RESERVOIR, OR IRRIGATION COMPANY STOCK.—For purposes of subsection (a)(2)(B), the
term ‘stocks’ shall not include shares in a mutual ditch, reservoir,
or irrigation company if at the time of the exchange—
‘‘(1) the mutual ditch, reservoir, or irrigation company is
an organization described in section 501(c)(12)(A) (determined
without regard to the percentage of its income that is collected
from its members for the purpose of meeting losses and
expenses), and
‘‘(2) the shares in such company have been recognized
by the highest court of the State in which such company was
organized or by applicable State statute as constituting or
representing real property or an interest in real property.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to exchanges completed after the date of the enactment
of this Act.
SEC. 15343. AGRICULTURAL CHEMICALS SECURITY CREDIT.

(a) IN GENERAL.—Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended by adding
at the end the following new section:

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‘‘SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.

‘‘(a) IN GENERAL.—For purposes of section 38, in the case of
an eligible agricultural business, the agricultural chemicals security
credit determined under this section for the taxable year is 30
percent of the qualified security expenditures for the taxable year.
‘‘(b) FACILITY LIMITATION.—The amount of the credit determined under subsection (a) with respect to any facility for any
taxable year shall not exceed—
‘‘(1) $100,000, reduced by
‘‘(2) the aggregate amount of credits determined under
subsection (a) with respect to such facility for the 5 prior
taxable years.
‘‘(c) ANNUAL LIMITATION.—The amount of the credit determined
under subsection (a) with respect to any taxpayer for any taxable
year shall not exceed $2,000,000.
‘‘(d) QUALIFIED CHEMICAL SECURITY EXPENDITURE.—For purposes of this section, the term ‘qualified chemical security expenditure’ means, with respect to any eligible agricultural business for
any taxable year, any amount paid or incurred by such business
during such taxable year for—
‘‘(1) employee security training and background checks,
‘‘(2) limitation and prevention of access to controls of specified agricultural chemicals stored at the facility,
‘‘(3) tagging, locking tank valves, and chemical additives
to prevent the theft of specified agricultural chemicals or to
render such chemicals unfit for illegal use,
‘‘(4) protection of the perimeter of specified agricultural
chemicals,

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122 STAT. 2281

‘‘(5) installation of security lighting, cameras, recording
equipment, and intrusion detection sensors,
‘‘(6) implementation of measures to increase computer or
computer network security,
‘‘(7) conducting a security vulnerability assessment,
‘‘(8) implementing a site security plan, and
‘‘(9) such other measures for the protection of specified
agricultural chemicals as the Secretary may identify in regulation.
Amounts described in the preceding sentence shall be taken into
account only to the extent that such amounts are paid or incurred
for the purpose of protecting specified agricultural chemicals.
‘‘(e) ELIGIBLE AGRICULTURAL BUSINESS.—For purposes of this
section, the term ‘eligible agricultural business’ means any person
in the trade or business of—
‘‘(1) selling agricultural products, including specified agricultural chemicals, at retail predominantly to farmers and
ranchers, or
‘‘(2) manufacturing, formulating, distributing, or aerially
applying specified agricultural chemicals.
‘‘(f) SPECIFIED AGRICULTURAL CHEMICAL.—For purposes of this
section, the term ‘specified agricultural chemical’ means—
‘‘(1) any fertilizer commonly used in agricultural operations
which is listed under—
‘‘(A) section 302(a)(2) of the Emergency Planning and
Community Right-to-Know Act of 1986,
‘‘(B) section 101 of part 172 of title 49, Code of Federal
Regulations, or
‘‘(C) part 126, 127, or 154 of title 33, Code of Federal
Regulations, and
‘‘(2) any pesticide (as defined in section 2(u) of the Federal
Insecticide, Fungicide, and Rodenticide Act), including all active
and inert ingredients thereof, which is customarily used on
crops grown for food, feed, or fiber.
‘‘(g) CONTROLLED GROUPS.—Rules similar to the rules of paragraphs (1) and (2) of section 41(f) shall apply for purposes of
this section.
‘‘(h) REGULATIONS.—The Secretary may prescribe such regulations as may be necessary or appropriate to carry out the purposes
of this section, including regulations which—
‘‘(1) provide for the proper treatment of amounts which
are paid or incurred for purpose of protecting any specified
agricultural chemical and for other purposes, and
‘‘(2) provide for the treatment of related properties as one
facility for purposes of subsection (b).
‘‘(i) TERMINATION.—This section shall not apply to any amount
paid or incurred after December 31, 2012.’’.
(b) CREDIT ALLOWED AS PART OF GENERAL BUSINESS CREDIT.—
Section 38(b) is amended by striking ‘‘plus’’ at the end of paragraph
(30), by striking the period at the end of paragraph (31) and
inserting ‘‘, plus’’, and by adding at the end the following new
paragraph:
‘‘(32) in the case of an eligible agricultural business (as
defined in section 45O(e)), the agricultural chemicals security
credit determined under section 45O(a).’’.
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C is amended
by adding at the end the following new subsection:

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Applicability.

26 USC 38.

26 USC 280C.

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PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(f) CREDIT FOR SECURITY OF AGRICULTURAL CHEMICALS.—No
deduction shall be allowed for that portion of the expenses otherwise
allowable as a deduction taken into account in determining the
credit under section 45O for the taxable year which is equal to
the amount of the credit determined for such taxable year under
section 45O(a).’’.
(d) CLERICAL AMENDMENT.—The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by adding
at the end the following new item:
‘‘Sec. 45O. Agricultural chemicals security credit.’’.
26 USC 38 note.

(e) EFFECTIVE DATE.—The amendments made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
SEC. 15344. 3-YEAR DEPRECIATION FOR RACE HORSES THAT ARE 2YEARS OLD OR YOUNGER.

26 USC 168.

26 USC 168 note.

(a) IN GENERAL.—Clause (i) of section 168(e)(3)(A) (relating
to 3-year property) is amended to read as follows:
‘‘(i) any race horse—
‘‘(I) which is placed in service before January
1, 2014, and
‘‘(II) which is placed in service after December
31, 2013, and which is more than 2 years old
at the time such horse is placed in service by
such purchaser,’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to property placed in service after December 31, 2008.
SEC. 15345. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS
AND SURROUNDING AREA.

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(a) IN GENERAL.—Subject to the modifications described in this
section, the following provisions of or relating to the Internal Revenue Code of 1986 shall apply to the Kansas disaster area in
addition to the areas to which such provisions otherwise apply:
(1) Section 1400N(d) of such Code (relating to special allowance for certain property).
(2) Section 1400N(e) of such Code (relating to increase
in expensing under section 179).
(3) Section 1400N(f) of such Code (relating to expensing
for certain demolition and clean-up costs).
(4) Section 1400N(k) of such Code (relating to treatment
of net operating losses attributable to storm losses).
(5) Section 1400N(n) of such Code (relating to treatment
of representations regarding income eligibility for purposes of
qualified rental project requirements).
(6) Section 1400N(o) of such Code (relating to treatment
of public utility property disaster losses).
(7) Section 1400Q of such Code (relating to special rules
for use of retirement funds).
(8) Section 1400R(a) of such Code (relating to employee
retention credit for employers).
(9) Section 1400S(b) of such Code (relating to suspension
of certain limitations on personal casualty losses).
(10) Section 405 of the Katrina Emergency Tax Relief Act
of 2005 (relating to extension of replacement period for nonrecognition of gain).

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PUBLIC LAW 110–246—JUNE 18, 2008

122 STAT. 2283

(b) KANSAS DISASTER AREA.—For purposes of this section, the
term ‘‘Kansas disaster area’’ means an area with respect to which
a major disaster has been declared by the President under section
401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (FEMA–1699–DR, as in effect on the date of the enactment
of this Act) by reason of severe storms and tornados beginning
on May 4, 2007, and determined by the President to warrant
individual or individual and public assistance from the Federal
Government under such Act with respect to damages attributable
to such storms and tornados.
(c) REFERENCES TO AREA OR LOSS.—
(1) AREA.—Any reference in such provisions to the Katrina
disaster area or the Gulf Opportunity Zone shall be treated
as a reference to the Kansas disaster area.
(2) LOSS.—Any reference in such provisions to any loss
or damage attributable to Hurricane Katrina shall be treated
as a reference to any loss or damage attributable to the May
4, 2007, storms and tornados.
(d) REFERENCES TO DATES, ETC.—
(1) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED
ON OR AFTER MAY 5, 2007.—Section 1400N(d) of such Code—
(A) by substituting ‘‘qualified Recovery Assistance property’’ for ‘‘qualified Gulf Opportunity Zone property’’ each
place it appears,
(B) by substituting ‘‘May 5, 2007’’ for ‘‘August 28, 2005’’
each place it appears,
(C) by substituting ‘‘December 31, 2008’’ for ‘‘December
31, 2007’’ in paragraph (2)(A)(v),
(D) by substituting ‘‘December 31, 2009’’ for ‘‘December
31, 2008’’ in paragraph (2)(A)(v),
(E) by substituting ‘‘May 4, 2007’’ for ‘‘August 27, 2005’’
in paragraph (3)(A),
(F) by substituting ‘‘January 1, 2009’’ for ‘‘January
1, 2008’’ in paragraph (3)(B), and
(G) determined without regard to paragraph (6)
thereof.
(2) INCREASE IN EXPENSING UNDER SECTION 179.—Section
1400N(e) of such Code, by substituting ‘‘qualified section 179
Recovery Assistance property’’ for ‘‘qualified section 179 Gulf
Opportunity Zone property’’ each place it appears.
(3) EXPENSING FOR CERTAIN DEMOLITION AND CLEAN-UP
COSTS.—Section 1400N(f) of such Code—
(A) by substituting ‘‘qualified Recovery Assistance
clean-up cost’’ for ‘‘qualified Gulf Opportunity Zone cleanup cost’’ each place it appears, and
(B) by substituting ‘‘beginning on May 4, 2007, and
ending on December 31, 2009’’ for ‘‘beginning on August
28, 2005, and ending on December 31, 2007’’ in paragraph
(2) thereof.
(4) TREATMENT OF NET OPERATING LOSSES ATTRIBUTABLE
TO STORM LOSSES.—Section 1400N(k) of such Code—
(A) by substituting ‘‘qualified Recovery Assistance loss’’
for ‘‘qualified Gulf Opportunity Zone loss’’ each place it
appears,
(B) by substituting ‘‘after May 3, 2007, and before
on January 1, 2010’’ for ‘‘after August 27, 2005, and before
January 1, 2008’’ each place it appears,

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26 USC 1400Q.

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(C) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’
in paragraph (2)(B)(ii)(I) thereof,
(D) by substituting ‘‘qualified Recovery Assistance
property’’ for ‘‘qualified Gulf Opportunity Zone property’’
in paragraph (2)(B)(iv) thereof, and
(E) by substituting ‘‘qualified Recovery Assistance casualty loss’’ for ‘‘qualified Gulf Opportunity Zone casualty
loss’’ each place it appears.
(5) SPECIAL RULES FOR USE OF RETIREMENT FUNDS.—Section
1400Q of such Code—
(A) by substituting ‘‘qualified Recovery Assistance distribution’’ for ‘‘qualified hurricane distribution’’ each place
it appears,
(B) by substituting ‘‘on or after May 4, 2007, and
before January 1, 2009’’ for ‘‘on or after August 25, 2005,
and before January 1, 2007’’ in subsection (a)(4)(A)(i),
(C) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’
in subsections (a)(4)(A)(i) and (c)(3)(B),
(D) disregarding clauses (ii) and (iii) of subsection
(a)(4)(A),
(E) by substituting ‘‘qualified storm distribution’’ for
‘‘qualified Katrina distribution’’ each place it appears,
(F) by substituting ‘‘after November 4, 2006, and before
May 5, 2007’’ for ‘‘after February 28, 2005, and before
August 29, 2005’’ in subsection (b)(2)(B)(ii),
(G) by substituting ‘‘the Kansas disaster area (as
defined in section 15345(b) of the Food, Conservation, and
Energy Act of 2008) but which was not so purchased or
constructed on account of the May 4, 2007, storms and
tornados’’ for ‘‘the Hurricane Katrina disaster area, but
not so purchased or constructed on account of Hurricane
Katrina’’ in subsection (b)(2)(B)(iii),
(H) by substituting ‘‘beginning on May 4, 2007, and
ending on the date which is 5 months after the date of
the enactment of the Heartland, Habitat, Harvest, and
Horticulture Act of 2008’’ for ‘‘beginning on August 25,
2005, and ending on February 28, 2006’’ in subsection
(b)(3)(A),
(I) by substituting ‘‘qualified storm individual’’ for
‘‘qualified Hurricane Katrina individual’’ each place it
appears,
(J) by substituting ‘‘December 31, 2008’’ for ‘‘December
31, 2006’’ in subsection (c)(2)(A),
(K) by substituting ‘‘beginning on the date of the enactment of the Food, Conservation, and Energy Act of 2008
and ending on December 31, 2008’’ for ‘‘beginning on September 24, 2005, and ending on December 31, 2006’’ in
subsection (c)(4)(A)(i),
(L) by substituting ‘‘May 4, 2007’’ for ‘‘August 25, 2005’’
in subsection (c)(4)(A)(ii), and
(M) by substituting ‘‘January 1, 2009’’ for ‘‘January
1, 2007’’ in subsection (d)(2)(A)(ii).
(6) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED
BY MAY 4 STORMS AND TORNADOS.—Section 1400R(a) of the
Internal Revenue Code of 1986—
(A) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’
each place it appears,

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(B) by substituting ‘‘January 1, 2008’’ for ‘‘January
1, 2006’’ both places it appears, and
(C) only with respect to eligible employers who
employed an average of not more than 200 employees on
business days during the taxable year before May 4, 2007.
(7) SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CASUALTY LOSSES.—Section 1400S(b)(1) of the Internal Revenue
Code of 1986, by substituting ‘‘May 4, 2007’’ for ‘‘August 25,
2005’’.
(8) EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION OF GAIN.—Section 405 of the Katrina Emergency Tax
Relief Act of 2005, by substituting ‘‘on or after May 4, 2007’’
for ‘‘on or after August 25, 2005’’.

26 USC 1400.

SEC. 15346. COMPETITIVE CERTIFICATION AWARDS MODIFICATION
AUTHORITY.

(a) IN GENERAL.—Section 48A (relating to qualifying advanced
coal project credit) is amended by adding at the end the following
new subsection:
‘‘(h) COMPETITIVE CERTIFICATION AWARDS MODIFICATION
AUTHORITY.—In implementing this section or section 48B, the Secretary is directed to modify the terms of any competitive certification
award and any associated closing agreement where such modification—
‘‘(1) is consistent with the objectives of such section,
‘‘(2) is requested by the recipient of the competitive certification award, and
‘‘(3) involves moving the project site to improve the potential to capture and sequester carbon dioxide emissions, reduce
costs of transporting feedstock, and serve a broader customer
base,
unless the Secretary determines that the dollar amount of tax
credits available to the taxpayer under such section would increase
as a result of the modification or such modification would result
in such project not being originally certified. In considering any
such modification, the Secretary shall consult with other relevant
Federal agencies, including the Department of Energy.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of the enactment of this Act and
is applicable to all competitive certification awards entered into
under section 48A or 48B of the Internal Revenue Code of 1986,
whether such awards were issued before, on, or after such date
of enactment.

Applicability.
26 USC 48A note.

PART IV—OTHER REVENUE PROVISIONS

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SEC. 15351. LIMITATION ON EXCESS FARM LOSSES OF CERTAIN TAXPAYERS.

(a) IN GENERAL.—Section 461 (relating to general rule for taxable year of deduction) is amended by adding at the end the following new subsection:
‘‘(j) LIMITATION ON EXCESS FARM LOSSES OF CERTAIN TAXPAYERS.—
‘‘(1) LIMITATION.—If a taxpayer other than a C corporation
receives any applicable subsidy for any taxable year, any excess
farm loss of the taxpayer for the taxable year shall not be
allowed.

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122 STAT. 2286

PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(2) DISALLOWED LOSS CARRIED TO NEXT TAXABLE YEAR.—
Any loss which is disallowed under paragraph (1) shall be
treated as a deduction of the taxpayer attributable to farming
businesses in the next taxable year.
‘‘(3) APPLICABLE SUBSIDY.—For purposes of this subsection,
the term ‘applicable subsidy’ means—
‘‘(A) any direct or counter-cyclical payment under title
I of the Food, Conservation, and Energy Act of 2008, or
any payment elected to be received in lieu of any such
payment, or
‘‘(B) any Commodity Credit Corporation loan.
‘‘(4) EXCESS FARM LOSS.—For purposes of this subsection—
‘‘(A) IN GENERAL.—The term ‘excess farm loss’ means
the excess of—
‘‘(i) the aggregate deductions of the taxpayer for
the taxable year which are attributable to farming
businesses of such taxpayer (determined without
regard to whether or not such deductions are disallowed for such taxable year under paragraph (1)),
over
‘‘(ii) the sum of—
‘‘(I) the aggregate gross income or gain of such
taxpayer for the taxable year which is attributable
to such farming businesses, plus
‘‘(II) the threshold amount for the taxable year.
‘‘(B) THRESHOLD AMOUNT.—
‘‘(i) IN GENERAL.—The term ‘threshold amount’
means, with respect to any taxable year, the greater
of—
‘‘(I) $300,000 ($150,000 in the case of married
individuals filing separately), or
‘‘(II) the excess (if any) of the aggregate
amounts described in subparagraph (A)(ii)(I) for
the 5-consecutive taxable year period preceding
the taxable year over the aggregate amounts
described in subparagraph (A)(i) for such period.
‘‘(ii) SPECIAL RULES FOR DETERMINING AGGREGATE
AMOUNTS.—For purposes of clause (i)(II)—
‘‘(I) notwithstanding the disregard in subparagraph (A)(i) of any disallowance under paragraph
(1), in the case of any loss which is carried forward
under paragraph (2) from any taxable year, such
loss (or any portion thereof) shall be taken into
account for the first taxable year in which a deduction for such loss (or portion) is not disallowed
by reason of this subsection, and
‘‘(II) the Secretary shall prescribe rules for
the computation of the aggregate amounts
described in such clause in cases where the filing
status of the taxpayer is not the same for the
taxable year and each of the taxable years in the
period described in such clause.
‘‘(C) FARMING BUSINESS.—
‘‘(i) IN GENERAL.—The term ‘farming business’ has
the meaning given such term in section 263A(e)(4).
‘‘(ii) CERTAIN TRADES AND BUSINESSES INCLUDED.—
If, without regard to this clause, a taxpayer is engaged

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in a farming business with respect to any agricultural
or horticultural commodity—
‘‘(I) the term ‘farming business’ shall include
any trade or business of the taxpayer of the processing of such commodity (without regard to
whether the processing is incidental to the
growing, raising, or harvesting of such commodity),
and
‘‘(II) if the taxpayer is a member of a cooperative to which subchapter T applies, any trade or
business of the cooperative described in subclause
(I) shall be treated as the trade or business of
the taxpayer.
‘‘(D) CERTAIN LOSSES DISREGARDED.—For purposes of
subparagraph (A)(i), there shall not be taken into account
any deduction for any loss arising by reason of fire, storm,
or other casualty, or by reason of disease or drought,
involving any farming business.
‘‘(5) APPLICATION OF SUBSECTION IN CASE OF PARTNERSHIPS
AND S CORPORATIONS.—In the case of a partnership or S corporation—
‘‘(A) this subsection shall be applied at the partner
or shareholder level, and
‘‘(B) each partner’s or shareholder’s proportionate share
of the items of income, gain, or deduction of the partnership
or S corporation for any taxable year from farming
businesses attributable to the partnership or S corporation,
and of any applicable subsidies received by the partnership
or S corporation during the taxable year, shall be taken
into account by the partner or shareholder in applying
this subsection to the taxable year of such partner or
shareholder with or within which the taxable year of the
partnership or S corporation ends.
The Secretary may provide rules for the application of this
paragraph to any other pass-thru entity to the extent necessary
to carry out the provisions of this subsection.
‘‘(6) ADDITIONAL REPORTING.—The Secretary may prescribe
such additional reporting requirements as the Secretary determines appropriate to carry out the purposes of this subsection.
‘‘(7) COORDINATION WITH SECTION 469.—This subsection
shall be applied before the application of section 469.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2009.

Applicability.
26 USC 461 note.

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SEC. 15352. MODIFICATION TO OPTIONAL METHOD OF COMPUTING
NET EARNINGS FROM SELF-EMPLOYMENT.

(a) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.—
(1) IN GENERAL.—The matter following paragraph (17) of
section 1402(a) is amended—
(A) by striking ‘‘$2,400’’ each place it appears and
inserting ‘‘the upper limit’’, and
(B) by striking ‘‘$1,600’’ each place it appears and
inserting ‘‘the lower limit’’.
(2) DEFINITIONS.—Section 1402 is amended by adding at
the end the following new subsection:
‘‘(l) UPPER AND LOWER LIMITS.—For purposes of subsection
(a)—

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26 USC 1402.

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42 USC 411.

42 USC 412.

26 USC 1402
note.

PUBLIC LAW 110–246—JUNE 18, 2008

‘‘(1) LOWER LIMIT.—The lower limit for any taxable year
is the sum of the amounts required under section 213(d) of
the Social Security Act for a quarter of coverage in effect
with respect to each calendar quarter ending with or within
such taxable year.
‘‘(2) UPPER LIMIT.—The upper limit for any taxable year
is the amount equal to 150 percent of the lower limit for
such taxable year.’’.
(b) AMENDMENTS TO THE SOCIAL SECURITY ACT.—
(1) IN GENERAL.—The matter following paragraph (16) of
section 211(a) of the Social Security Act is amended—
(A) by striking ‘‘$2,400’’ each place it appears and
inserting ‘‘the upper limit’’, and
(B) by striking ‘‘$1,600’’ each place it appears and
inserting ‘‘the lower limit’’.
(2) DEFINITIONS.—Section 211 of such Act is amended by
adding at the end the following new subsection:
‘‘(k) UPPER AND LOWER LIMITS.—For purposes of subsection
(a)—
‘‘(1) The lower limit for any taxable year is the sum of
the amounts required under section 213(d) for a quarter of
coverage in effect with respect to each calendar quarter ending
with or within such taxable year.
‘‘(2) The upper limit for any taxable year is the amount
equal to 150 percent of the lower limit for such taxable year.’’.
(3) CONFORMING AMENDMENT.—Section 212 of such Act
is amended—
(A) in subsection (b), by striking ‘‘For’’ and inserting
‘‘Except as provided in subsection (c), for’’; and
(B) by adding at the end the following new subsection:
‘‘(c) For the purpose of determining average indexed monthly
earnings, average monthly wage, and quarters of coverage in the
case of any individual who elects the option described in clause
(ii) or (iv) in the matter following section 211(a)(16) for any taxable
year that does not begin with or during a particular calendar
year and end with or during such year, the self-employment income
of such individual deemed to be derived during such taxable year
shall be allocated to the two calendar years, portions of which
are included within such taxable year, in the same proportion
to the total of such deemed self-employment income as the sum
of the amounts applicable under section 213(d) for the calendar
quarters ending with or within each such calendar year bears
to the lower limit for such taxable year specified in section
211(k)(1).’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2007.
SEC. 15353. INFORMATION REPORTING FOR COMMODITY CREDIT CORPORATION TRANSACTIONS.

(a) IN GENERAL.—Subpart A of part III of subchapter A of
chapter 61 (relating to information concerning persons subject to
special provisions) is amended by inserting after section 6039I
the following new section:

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‘‘SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO COMMODITY CREDIT CORPORATION TRANSACTIONS.
Regulations.

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‘‘(a) REQUIREMENT OF REPORTING.—The Commodity Credit Corporation, through the Secretary of Agriculture, shall make a return,

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according to the forms and regulations prescribed by the Secretary
of the Treasury, setting forth any market gain realized by a taxpayer during the taxable year in relation to the repayment of
a loan issued by the Commodity Credit Corporation, without regard
to the manner in which such loan was repaid.
‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS WITH RESPECT
TO WHOM INFORMATION IS REQUIRED.—The Secretary of Agriculture
shall furnish to each person whose name is required to be set
forth in a return required under subsection (a) a written statement
showing the amount of market gain reported in such return.’’.
(b) CLERICAL AMENDMENT.—The table of sections for subpart
A of part III of subchapter A of chapter 61 is amended by inserting
after the item relating to section 6039I the following new item:
‘‘Sec. 6039J. Information reporting with respect to Commodity Credit Corporation
transactions.’’.

(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to loans repaid on or after January 1, 2007.

26 USC 6039J
note.

PART V—PROTECTION OF SOCIAL SECURITY
SEC. 15361. PROTECTION OF SOCIAL SECURITY.

42 USC 401 note.

To ensure that the assets of the trust funds established under
section 201 of the Social Security Act (42 U.S.C. 401) are not
reduced as a result of the enactment of this Act, the Secretary
of the Treasury shall transfer annually from the general revenues
of the Federal Government to those trust funds the following
amounts:
(1) For fiscal year 2009, $5,000,000.
(2) For fiscal year 2010, $9,000,000.
(3) For fiscal year 2011, $8,000,000.
(4) For fiscal year 2012, $7,000,000.
(5) For fiscal year 2013, $8,000,000.
(6) For fiscal year 2014, $8,000,000.
(7) For fiscal year 2015, $8,000,000.
(8) For fiscal year 2016, $6,000,000.
(9) For fiscal year 2017, $7,000,000.

Subtitle D—Trade Provisions
PART I—EXTENSION OF CERTAIN TRADE
BENEFITS
SEC. 15401. SHORT TITLE.

This part may be cited as the ‘‘Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008’’ or the
‘‘HOPE II Act’’.

Haitian
Hemispheric
Opportunity
through
Partnership
Encouragement
Act of 2008.
19 USC 2701
note.

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SEC. 15402. BENEFITS FOR APPAREL AND OTHER TEXTILE ARTICLES.

(a) VALUE-ADDED RULE.—Section 213A(b) of the Carribean
Basin Economic Recovery Act (19 U.S.C. 2703a(b)) is amended
as follows:
(1) The subsection heading is amended to read as follows:
‘‘APPAREL AND OTHER TEXTILE ARTICLES’’.
(2) Paragraph (1) is amended to read as follows:
‘‘(1) VALUE-ADDED RULE FOR APPAREL ARTICLES.—

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122 STAT. 2290

PUBLIC LAW 110–246—JUNE 18, 2008
‘‘(A) IN GENERAL.—Apparel articles described in
subparagraph (B) of a producer or entity controlling production that are imported directly from Haiti or the Dominican
Republic shall enter the United States free of duty during
an applicable 1-year period, subject to the limitations set
forth in subparagraphs (B) and (C), and subject to subparagraph (D).’’.
(3) Paragraph (2) is amended—
(A) in subparagraph (A)—
(i) by moving such subparagraph 2 ems to the
right;
(ii) in clause (i), by striking ‘‘subparagraph (C)’’
and inserting ‘‘clause (iii)’’;
(iii) in clause (ii), by striking ‘‘subparagraph (C)’’
and inserting ‘‘clause (iii)’’;
(iv) in the matter following clause (ii), by striking
‘‘subparagraph (E)(I)’’ and inserting ‘‘clause (v)(I)’’;
(v) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively; and
(vi) by redesignating subparagraph (A) as clause
(i);
(B) in subparagraph (B)—
(i) by moving such subparagraph 2 ems to the
right;
(ii) by striking ‘‘subparagraph (A)(i)’’ each place
it appears and inserting ‘‘clause (i)(I)’’;
(iii) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively; and
(iv) by redesignating subparagraph (B) as clause
(ii);
(C) in subparagraph (C)—
(i) by moving such subparagraph 2 ems to the
right;
(ii) in the matter preceding clause (i), by striking
‘‘subparagraph (A)’’ and inserting ‘‘clause (i)’’;
(iii) in clause (ii), by striking ‘‘that enters into
force’’ and all that follows through ‘‘et seq.)’’ and
inserting ‘‘that enters into force thereafter’’;
(iv) by redesignating clauses (i) through (v) as
subclauses (I) through (V), respectively; and
(v) by redesignating subparagraph (C) as clause
(iii);
(D) in subparagraph (D)—
(i) by moving such subparagraph 2 ems to the
right;
(ii) in clause (i)—
(I) in the matter preceding subclause (I), by
striking ‘‘subparagraph (A)’’ and inserting ‘‘clause
(i)’’;
(II) in subclause (I), by striking ‘‘clause (i)
of subparagraph (A)’’ and inserting ‘‘subclause (I)
of clause (i)’’;
(III) in subclause (II), by striking ‘‘clause (ii)
of subparagraph (A)’’ and inserting ‘‘subclause (II)
of clause (i)’’;
(IV) by redesignating subclauses (I) and (II)
as items (aa) and (bb), respectively; and

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(V) by redesignating clause (i) as subclause
(I);
(iii) in clause (ii)—
(I) in the matter preceding subclause (I), by
striking ‘‘subparagraph (A)’’ and inserting ‘‘clause
(i)’’;
(II) in subclause (I), by striking ‘‘clause (i)
of subparagraph (A)’’ and inserting ‘‘subclause (I)
of clause (i)’’;
(III) in subclause (II), by striking ‘‘clause (ii)
of subparagraph (A)’’ and inserting ‘‘subclause (II)
of clause (i)’’;
(IV) by redesignating subclauses (I) and (II)
as items (aa) and (bb), respectively; and
(V) by redesignating clause (ii) as subclause
(II);
(iv) in clause (iii)—
(I) by striking ‘‘clause (i)(I) or (ii)(I)’’ each place
it appears and inserting ‘‘subclause (I)(aa) or
(II)(aa)’’;
(II) by redesignating subclauses (I) and (II)
as items (aa) and (bb), respectively; and
(III) by redesignating clause (iii) as subclause
(III);
(v) by amending clause (iv) to read as follows:
‘‘(IV) INCLUSION IN CALCULATION OF OTHER
ARTICLES RECEIVING PREFERENTIAL TREATMENT.—
Entries of apparel articles that receive preferential
treatment under any provision of law other than
this subparagraph or are subject to the ‘General’
column 1 rate of duty under the HTS are not
included in the annual aggregation under subclause (I) or (II) unless the producer or entity
controlling production elects, at the time the
annual aggregation calculation is made, to include
such entries in such aggregation.’’; and
(vi) by redesignating subparagraph (D) as clause
(iv);
(E) in subparagraph (E)—
(i) by moving such subparagraph 2 ems to the
right;
(ii) in clause (i)—
(I) by redesignating subclauses (I) through
(III) as items (aa) through (cc), respectively; and
(II) by redesignating clause (i) as subclause
(I);
(iii) in clause (ii)—
(I) by striking ‘‘subparagraph (C)’’ and
inserting ‘‘clause (iii)’’; and
(II) by redesignating clause (ii) as subclause
(II); and
(iv) by redesignating subparagraph (E) as clause
(v);
(F) in subparagraph (F)—
(i) by moving such subparagraph 2 ems to the
right;
(ii) in clause (i)—

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122 STAT. 2292

PUBLIC LAW 110–246—JUNE 18, 2008
(I) by striking ‘‘The Bureau of Customs and
Border Protection’’ and inserting ‘‘U.S. Customs
and Border Protection’’;
(II) by striking ‘‘subparagraphs (A) and (D)’’
and inserting ‘‘clauses (i) and (iv)’’; and
(III) by redesignating clause (i) as subclause
(I);
(iii) in clause (ii)—
(I) in the matter preceding subclause (I)—
(aa) by striking ‘‘the Bureau of Customs
and Border Protection’’ and inserting ‘‘U.S.
Customs and Border Protection’’;
(bb) by striking ‘‘subparagraph (A)’’ each
place it appears and inserting ‘‘clause (i)’’; and
(cc) by striking ‘‘subparagraph (D)’’ and
inserting ‘‘clause (iv)’’;
(II) in subclause (I), by striking ‘‘clause (i)
of subparagraph (A)’’ and inserting ‘‘subclause (I)
of clause (i)’’;
(III) in subclause (II), by striking ‘‘clause (ii)
of subparagraph (A)’’ and inserting ‘‘subclause (II)
of clause (i)’’;
(IV) in the matter following subclause (II),
by striking ‘‘subparagraph (E)(i)’’ and inserting
‘‘clause (v)(I)’’;
(V) by redesignating subclauses (I) and (II)
as items (aa) and (bb), respectively; and
(VI) by redesignating clause (ii) as subclause
(II);
(iv) in clause (iii)—
(I) in subclause (I)—
(aa) by striking ‘‘paragraph (1)’’ and
inserting ‘‘subparagraph (A)’’; and
(bb) by striking ‘‘subparagraph (A) or (D)’’
and inserting ‘‘clause (i) or (iv)’’;
(II) in subclause (II), by striking ‘‘clause (ii)
of this subparagraph’’ and inserting ‘‘subclause (II)
of this clause’’;
(III) in the matter following subclause (II)—
(aa) by striking ‘‘the Bureau of Customs
and Border Protection’’ each place it appears
and inserting ‘‘U.S. Customs and Border
Protection’’; and
(bb) by striking ‘‘subclause (II)’’ and
inserting ‘‘item (bb)’’; and
(IV) in item (bb)—
(aa) by striking ‘‘paragraph (1)’’ and
inserting ‘‘subparagraph (A)’’; and
(bb) by striking ‘‘subparagraph (A) or (D)’’
and inserting ‘‘clause (i) or (iv)’’; and
(V) in the matter following item (bb), by
striking ‘‘paragraph (1)’’ and inserting ‘‘subparagraph (A)’’;
(VI) by redesignating items (aa) and (bb) as
subitems (AA) and (BB), respectively;
(VII) by redesignating subclauses (I) and (II)
as items (aa) and (bb), respectively; and

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(VIII) by redesignating clause (iii) as subclause
(III); and
(v) by redesignating subparagraph (F) as clause
(vi);
(G) in subparagraph (G)—
(i) by moving such subparagraph 2 ems to the
right;
(ii) in clause (i)—
(I) in the matter preceding subclause (I), by
striking ‘‘subparagraph (A) or (D)’’ and inserting
‘‘clause (i) or (iv)’’;
(II) in subclause (II)—
(aa) in item (dd), by striking ‘‘under the
Bipartisan Trade Promotion Authority Act of
2002’’ and inserting ‘‘with respect to the
United States’’; and
(bb) by redesignating items (aa) through
(dd) as subitems (AA) through (DD), respectively;
(III) by redesignating subclauses (I) and (II)
as items (aa) and (bb), respectively; and
(IV) by redesignating clause (i) as subclause
(I);
(iii) in clause (ii)—
(I) in subclause (I), by striking ‘‘clause (i)(I)’’
and inserting ‘‘subclause (I)(aa)’’;
(II) in subclause (II), by striking ‘‘clause (i)(II)’’
and inserting ‘‘subclause (I)(bb)’’;
(III) by redesignating subclauses (I) and (II)
as items (aa) and (bb), respectively; and
(IV) by redesignating clause (ii) as subclause
(II); and
(iv) by redesignating subparagraph (G) as clause
(vii); and
(H) by striking ‘‘(2) APPAREL ARTICLES DESCRIBED.—
’’ and inserting the following:
‘‘(B) APPAREL ARTICLES DESCRIBED.—’’.
(4) Paragraph (3) is amended—
(A) by redesignating such paragraph as subparagraph
(C) and moving it 2 ems to the right;
(B) by striking ‘‘paragraph (1)’’ each place it appears
and inserting ‘‘subparagraph (A)’’; and
(C) in the table—
(i) by striking ‘‘1.5 percent’’ and inserting ‘‘1.25
percent’’;
(ii) by striking ‘‘1.75 percent’’ and inserting ‘‘1.25
percent’’; and
(iii) by striking ‘‘2 percent’’ and inserting ‘‘1.25
percent’’.
(5) The following is added after subparagraph (C), as
redesignated by paragraph (4)(A) of this subsection:
‘‘(D) OTHER PREFERENTIAL TREATMENT NOT AFFECTED
BY QUANTITATIVE LIMITATIONS.—Any apparel article that
qualifies for preferential treatment under paragraph (2),
(3), (4), or (5) or any other provision of this title shall
not be subject to, or included in the calculation of, the
quantitative limitations under subparagraph (C).’’.

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19 USC 2703a.

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(b) SPECIAL RULE FOR WOVEN ARTICLES AND CERTAIN KNIT
ARTICLES.—Section 213A(b) of the Carribean Basin Economic
Recovery Act is amended by striking paragraph (4) and inserting
the following:
‘‘(2) SPECIAL RULE FOR WOVEN ARTICLES AND CERTAIN KNIT
ARTICLES.—
‘‘(A) SPECIAL RULE FOR ARTICLES OF CHAPTER 62 OF
THE HTS.—
‘‘(i) GENERAL RULE.—Any apparel article classifiable under chapter 62 of the HTS that is wholly assembled, or knit-to-shape, in Haiti from any combination
of fabrics, fabric components, components knit-toshape, or yarns and is imported directly from Haiti
or the Dominican Republic shall enter the United
States free of duty, subject to clauses (ii) and (iii),
without regard to the source of the fabric, fabric components, components knit-to-shape, or yarns from which
the article is made.
‘‘(ii) LIMITATION.—The preferential treatment
described in clause (i) shall be extended, in the 1year period beginning October 1, 2008, and in each
of the 9 succeeding 1-year periods, to not more than
70,000,000 square meter equivalents of apparel articles
described in such clause.
‘‘(iii) OTHER PREFERENTIAL TREATMENT NOT
AFFECTED BY QUANTITATIVE LIMITATION.—Any apparel
article that qualifies for preferential treatment under
paragraph (1), (3), (4), or (5) or subparagraph (B) of
this paragraph or any other provision of this title shall
not be subject to, or included in the calculation of,
the quantitative limitation under clause (ii).
‘‘(B) SPECIAL RULE FOR CERTAIN ARTICLES OF CHAPTER
61 OF THE HTS.—
‘‘(i) GENERAL RULE.—Any apparel article classifiable under chapter 61 of the HTS that is wholly assembled, or knit-to-shape, in Haiti from any combination
of fabrics, fabric components, components knit-toshape, or yarns and is imported directly from Haiti
or the Dominican Republic shall enter the United
States free of duty, subject to clauses (ii), (iii), and
(iv), without regard to the source of the fabric, fabric
components, components knit-to-shape, or yarns from
which the article is made.
‘‘(ii) EXCLUSIONS.—The preferential treatment
described in clause (i) shall not apply to the following:
‘‘(I) The following apparel articles of cotton,
for men or boys, that are classifiable under subheading 6109.10.00 of the HTS:
‘‘(aa) All white T-shirts, with short
hemmed sleeves and hemmed bottom, with
crew or round neckline or with V-neck and
with a mitered seam at the center of the V,
and without pockets, trim, or embroidery.
‘‘(bb) All white singlets, without pockets,
trim, or embroidery.
‘‘(cc) Other T-shirts, but not including
thermal undershirts.

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‘‘(II) T-shirts for men or boys that are classifiable under subheading 6109.90.10.
‘‘(III) The following apparel articles of cotton,
for men or boys, that are classifiable under subheading 6110.20.20 of the HTS:
‘‘(aa) Sweatshirts.
‘‘(bb) Pullovers, other than sweaters, vests,
or garments imported as part of playsuits.
‘‘(IV) Sweatshirts for men or boys, of manmade fibers and containing less than 65 percent
by weight of man-made fibers, that are classifiable
under subheading 6110.30.30 of the HTS.
‘‘(iii) LIMITATION.—The preferential treatment
described in clause (i) shall be extended, in the 1year period beginning October 1, 2008, and in each
of the 9 succeeding 1-year periods, to not more than
70,000,000 square meter equivalents of apparel articles
described in such clause.
‘‘(iv) OTHER PREFERENTIAL TREATMENT NOT
AFFECTED BY QUANTITATIVE LIMITATION.—Any apparel
article that qualifies for preferential treatment under
paragraph (1), (3), (4), or (5) or subparagraph (A) of
this paragraph or any other provision of this title shall
not be subject to, or included in the calculation of,
the quantitative limitation under clause (iii).’’.
(c) SINGLE TRANSFORMATION RULES NOT SUBJECT TO QUANTITATIVE LIMITATIONS.—Section 213A(b) of the Caribbean Basin
Economic Recovery Act is amended by striking paragraph (5) and
inserting the following:
‘‘(3) APPAREL AND OTHER ARTICLES SUBJECT TO CERTAIN
ASSEMBLY RULES.—
‘‘(A) BRASSIERES.—Any apparel article classifiable
under subheading 6212.10 of the HTS that is wholly assembled, or knit-to-shape, in Haiti from any combination of
fabrics, fabric components, components knit-to-shape, or
yarns and is imported directly from Haiti or the Dominican
Republic shall enter the United States free of duty, without
regard to the source of the fabric, fabric components, components knit-to-shape, or yarns from which the article is
made.
‘‘(B) OTHER APPAREL ARTICLES.—Any of the following
apparel articles that is wholly assembled, or knit-to-shape,
in Haiti from any combination of fabrics, fabric components,
components knit-to-shape, or yarns and is imported directly
from Haiti or the Dominican Republic shall enter the
United States free of duty, without regard to the source
of the fabric, fabric components, components knit-to-shape,
or yarns from which the article is made:
‘‘(i) Any apparel article that is of a type listed
in chapter rule 3, 4, or 5 for chapter 61 of the HTS
(as such chapter rules are contained in section A of
the Annex to Proclamation 8213 of the President of
December 20, 2007) as being excluded from the scope
of such chapter rule, when such chapter rule is applied
to determine whether an apparel article is an originating good for purposes of general note 29(n) to the
HTS, except that, for purposes of this clause, reference

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in such chapter rules to ‘6104.12.00’ shall be deemed
to be a reference to ‘6104.19.60’.
‘‘(ii)(I) Subject to subclause (II), any apparel article
that is of a type listed in chapter rule 3(a), 4(a), or
5(a) for chapter 62 of the HTS, as such chapter rules
are contained in paragraph 9 of section A of the Annex
to Proclamation 8213 of the President of December
20, 2007.
‘‘(II) Subclause (I) shall not include any apparel
article to which subparagraph (A) of this paragraph
applies.
‘‘(C) LUGGAGE AND SIMILAR ITEMS.—Any article classifiable under subheading 4202.12, 4202.22, 4202.32 or
4202.92 of the HTS that is wholly assembled in Haiti
and is imported directly from Haiti or the Dominican
Republic shall enter the United States free of duty, without
regard to the source of the fabric, components, or materials
from which the article is made.
‘‘(D) HEADGEAR.—Any article classifiable under
heading 6501, 6502, or 6504 of the HTS, or under subheading 6505.90 of the HTS, that is wholly assembled,
knit-to-shape, or formed in Haiti from any combination
of fabrics, fabric components, components knit-to-shape,
or yarns and is imported directly from Haiti or the Dominican Republic shall enter the United States free of duty,
without regard to the source of the fabric, fabric components, components knit-to-shape, or yarns from which the
article is made.
‘‘(E) CERTAIN SLEEPWEAR.—Any of the following
apparel articles that is wholly assembled, or knit-to-shape,
in Haiti from any combination of fabrics, fabric components,
components knit-to-shape, or yarns and is imported directly
from Haiti or the Dominican Republic shall enter the
United States free of duty, without regard to the source
of the fabric, fabric components, components knit-to-shape,
or yarns from which the article is made:
‘‘(i) Pajama bottoms and other sleepwear for
women and girls, of cotton, that are classifiable under
subheading 6208.91.30, or of man-made fibers, that
are classifiable under subheading 6208.92.00.
‘‘(ii) Pajama bottoms and other sleepwear for girls,
of other textile materials, that are classifiable under
subheading 6208.99.20.’’.
(d) EARNED IMPORT ALLOWANCE RULES.—Section 231A(b) of
the Caribbean Basin Economic Recovery Act is amended by adding
at the end the following new paragraph:
‘‘(4) EARNED IMPORT ALLOWANCE RULE.—
‘‘(A) IN GENERAL.—Apparel articles wholly assembled,
or knit-to-shape, in Haiti from any combination of fabrics,
fabric components, components knit-to-shape, or yarns and
imported directly from Haiti or the Dominican Republic
shall enter the United States free of duty, without regard
to the source of the fabric, fabric components, components
knit-to-shape, or yarns from which the articles are made,
if such apparel articles are accompanied by an earned
import allowance certificate that reflects the amount of
credits equal to the total square meter equivalents of such

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apparel articles, in accordance with the program established under subparagraph (B). For purposes of determining the quantity of square meter equivalents under
this subparagraph, the conversion factors listed in ‘Correlation: U.S. Textile and Apparel Industry Category System
with the Harmonized Tariff Schedule of the United States
of America, 2008’, or its successor publications, of the
United States Department of Commerce, shall apply.
‘‘(B) EARNED IMPORT ALLOWANCE PROGRAM.—
‘‘(i) ESTABLISHMENT.—The Secretary of Commerce
shall establish a program to provide earned import
allowance certificates to any producer or entity controlling production for purposes of subparagraph (A), based
on the elements described in clause (ii).
‘‘(ii) ELEMENTS.—The elements referred to in
clause (i) are the following:
‘‘(I) One credit shall be issued to a producer
or an entity controlling production for every three
square meter equivalents of qualifying woven
fabric or qualifying knit fabric that the producer
or entity controlling production can demonstrate
that it purchased for the manufacture in Haiti
of articles like or similar to any article eligible
for preferential treatment under subparagraph (A).
The Secretary of Commerce shall, if requested by
a producer or entity controlling production, create
and maintain an account for such producer or
entity controlling production, into which such
credits shall be deposited.
‘‘(II) Such producer or entity controlling
production may redeem credits issued under subclause (I) for earned import allowance certificates
reflecting such number of earned credits as the
producer or entity may request and has available.
‘‘(III) The Secretary of Commerce may require
any textile mill or other entity located in the
United States that exports to Haiti qualifying
woven fabric or qualifying knit fabric to submit,
upon such export or upon request, documentation,
such as a Shipper’s Export Declaration, to the
Secretary of Commerce—
‘‘(aa) verifying that the qualifying woven
fabric or qualifying knit fabric was exported
to a producer in Haiti or to an entity controlling production; and
‘‘(bb) identifying such producer or entity
controlling production, and the quantity and
description of qualifying woven fabric or qualifying knit fabric exported to such producer
or entity controlling production.
‘‘(IV) The Secretary of Commerce may require
that a producer or entity controlling production
submit documentation to verify purchases of qualifying woven fabric or qualifying knit fabric.
‘‘(V) The Secretary of Commerce may make
available to each person or entity identified in
documentation submitted under subclause (III) or

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(IV) information contained in such documentation
that relates to the purchase of qualifying woven
fabric or qualifying knit fabric involving such person or entity.
‘‘(VI) The program under this subparagraph
shall be established so as to allow, to the extent
feasible, the submission, storage, retrieval, and
disclosure of information in electronic format,
including information with respect to the earned
import allowance certificates required under
subparagraph (A)(i).
‘‘(VII) The Secretary of Commerce may reconcile discrepancies in information provided under
subclause (III) or (IV) and verify the accuracy of
such information.
‘‘(VIII) The Secretary of Commerce shall establish procedures to carry out the program under
this subparagraph and may establish additional
requirements to carry out this subparagraph. Such
additional requirements may include—
‘‘(aa) submissions by textile mills or other
entities in the United States documenting
exports of yarns wholly formed in the United
States to countries described in paragraph
(1)(B)(iii) for the manufacture of qualifying
knit fabric; and
‘‘(bb) procedures imposed on producers or
entities controlling production to allow the
Secretary of Commerce to obtain and verify
information relating to the production of qualifying knit fabric.
‘‘(iii) QUALIFYING WOVEN FABRIC DEFINED.—For
purposes of this subparagraph, the term ‘qualifying
woven fabric’ means fabric wholly formed in the United
States from yarns wholly formed in the United States,
except that—
‘‘(I) fabric otherwise eligible as qualifying
woven fabric shall not be ineligible as qualifying
woven fabric because the fabric contains nylon filament yarn to which section 213(b)(2)(A)(vii)(IV)
applies;
‘‘(II) fabric that would otherwise be ineligible
as qualifying woven fabric because the fabric contains yarns not wholly formed in the United States
shall not be ineligible as qualifying woven fabric
if the total weight of all such yarns is not more
than 10 percent of the total weight of the fabric;
and
‘‘(III) fabric otherwise eligible as qualifying
woven fabric shall not be ineligible as qualifying
fabric because the fabric contains yarns covered
by clause (i) or (ii) of paragraph (5)(A).
‘‘(iv) QUALIFYING KNIT FABRIC DEFINED.—For purposes of this subparagraph, the term ‘qualifying knit
fabric’ means fabric or knit-to-shape components
wholly formed or knit-to-shape in any country or any
combination of countries described in paragraph

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(1)(B)(iii), from yarns wholly formed in the United
States, except that—
‘‘(I) fabric or knit-to-shape components otherwise eligible as qualifying knit fabric shall not
be ineligible as qualifying knit fabric because the
fabric or knit-to-shape components contain nylon
filament yarn to which section 213(b)(2)(A)(vii)(IV)
applies;
‘‘(II) fabric or knit-to-shape components that
would otherwise be ineligible as qualifying knit
fabric because the fabric or knit-to-shape components contain yarns not wholly formed in the
United States shall not be ineligible as qualifying
knit fabric if the total weight of all such yarns
is not more than 10 percent of the total weight
of the fabric or knit-to-shape components; and
‘‘(III) fabric or knit-to-shape components otherwise eligible as qualifying knit fabric shall not
be ineligible as qualifying knit fabric because the
fabric or knit-to-shape components contain yarns
covered by clause (i) or (ii) of paragraph (5)(A).
‘‘(C) REVIEW BY UNITED STATES GOVERNMENT ACCOUNTABILITY OFFICE.—The United States Government Accountability Office shall review the program established under
subparagraph (B) annually for the purpose of evaluating
the effectiveness of, and making recommendations for
improvements in, the program.
‘‘(D) ENFORCEMENT PROVISIONS.—
‘‘(i) FRAUDULENT CLAIMS OF PREFERENCE.—Any
person who makes a false claim for preference under
the program established under subparagraph (B) shall
be subject to any applicable civil or criminal penalty
that may be imposed under the customs laws of the
United States or under title 18, United States Code.
‘‘(ii) PENALTIES FOR OTHER FRAUDULENT INFORMATION.—The Secretary of Commerce may establish and
impose penalties for the submission to the Secretary
of Commerce of fraudulent information under the program established under subparagraph (B), other than
a claim described in clause (i).’’.
(e) SHORT SUPPLY RULES .—Section 213A(b) of the Caribbean
Basin Economic Recovery Act is amended by adding at the end
the following:
‘‘(5) SHORT SUPPLY PROVISION.—
‘‘(A) IN GENERAL.—Any apparel article that is wholly
assembled, or knit-to-shape, in Haiti from any combination
of fabrics, fabric components, components knit-to-shape,
or yarns and is imported directly from Haiti or the Dominican Republic shall enter the United States free of duty,
without regard to the source of the fabrics, fabric components, components knit-to-shape, or yarns from which the
article is made, if the fabrics, fabric components, components knit-to-shape, or yarns comprising the component
that determines the tariff classification of the article are
of any of the following:
‘‘(i) Fabrics or yarns, to the extent that apparel
articles of such fabrics or yarns would be eligible for

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preferential treatment, without regard to the source
of the fabrics or yarns, under Annex 401 of the NAFTA.
‘‘(ii) Fabrics or yarns, to the extent that such fabrics or yarns are designated as not being available
in commercial quantities for purposes of—
‘‘(I) section 213(b)(2)(A)(v) of this Act;
‘‘(II) section 112(b)(5) of the African Growth
and Opportunity Act;
‘‘(III) clause (i)(III) or (ii) of section 204(b)(3)(B)
of the Andean Trade Preference Act; or
‘‘(IV) any other provision, relating to determining whether a textile or apparel article is an
originating good eligible for preferential treatment,
of a law that implements a free trade agreement
entered into by the United States that is in effect
at the time the claim for preferential treatment
is made.
‘‘(B) REMOVAL OF DESIGNATION OF FABRICS OR YARNS
NOT AVAILABLE IN COMMERCIAL QUANTITIES.—If the President determines that—
‘‘(i) any fabric or yarn described in clause (i) of
subparagraph (A) was determined to be eligible for
preferential treatment, or
‘‘(ii) any fabric or yarn described in clause (ii)
of subparagraph (A) was designated as not being available in commercial quantities,
on the basis of fraud, the President is authorized to remove
the eligibility or designation (as the case may be) of that
fabric or yarn with respect to articles entered after such
removal.’’.
(f) MISCELLANEOUS PROVISIONS.—
(1) RELATIONSHIP TO OTHER PREFERENTIAL PROGRAMS.—
Section 213A(b) of the Caribbean Basin Economic Recovery
Act is amended by adding at the end the following:
‘‘(6) OTHER PREFERENTIAL TREATMENT NOT AFFECTED.—The
duty-free treatment provided under this subsection is in addition to any other preferential treatment under this title.’’.
(2) DEFINITIONS.—Section 213A(a) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703a(a)) is amended by
adding at the end the following:
‘‘(3) IMPORTED DIRECTLY FROM HAITI OR THE DOMINICAN
REPUBLIC.—Articles are ‘imported directly from Haiti or the
Dominican Republic’ if—
‘‘(A) the articles are shipped directly from Haiti or
the Dominican Republic into the United States without
passing through the territory of any intermediate country;
or
‘‘(B) the articles are shipped from Haiti or the Dominican Republic into the United States through the territory
of an intermediate country, and—
‘‘(i) the articles in the shipment do not enter into
the commerce of any intermediate country, and the
invoices, bills of lading, and other shipping documents
specify the United States as the final destination; or
‘‘(ii) the invoices and other documents do not
specify the United States as the final destination, but
the articles in the shipment—

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‘‘(I) remain under the control of the customs
authority in the intermediate country;
‘‘(II) do not enter into the commerce of the
intermediate country except for the purpose of a
sale other than at retail; and
‘‘(III) have not been subjected to operations
in the intermediate country other than loading,
unloading, or other activities necessary to preserve
the articles in good condition.
‘‘(4) KNIT-TO-SHAPE.—A good is ‘knit-to-shape’ if 50 percent
or more of the exterior surface area of the good is formed
by major parts that have been knitted or crocheted directly
to the shape used in the good, with no consideration being
given to patch pockets, applique´s, or the like. Minor cutting,
trimming, or sewing of those major parts shall not affect the
determination of whether a good is ‘knit-to-shape.’
‘‘(5) WHOLLY ASSEMBLED.—A good is ‘wholly assembled’
in Haiti if all components, of which there must be at least
two, pre-existed in essentially the same condition as found
in the finished good and were combined to form the finished
good in Haiti. Minor attachments and minor embellishments
(for example, applique´s, beads, spangles, embroidery, and buttons) not appreciably affecting the identity of the good, and
minor subassemblies (for example, collars, cuffs, plackets, and
pockets), shall not affect the determination of whether a good
is ‘wholly assembled’ in Haiti.’’.
(g) TERMINATION.—Section 213A of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a) is amended by adding at
the end the following new subsection:
‘‘(g) TERMINATION.—Except as provided in subsection (b)(1),
the duty-free treatment provided under this section shall remain
in effect until September 30, 2018.’’.
(h) CONFORMING AMENDMENTS.—Subsection (e)(1) of section
213A of the Caribbean Basin Economic Recovery Act (19 U.S.C.
2703a(e)(1)) is amended by striking ‘‘the Bureau of Customs and
Border Protection’’ each place it appears and inserting ‘‘U.S. Customs and Border Protection’’.

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SEC.

15403.

LABOR OMBUDSMAN AND TECHNICAL ASSISTANCE
IMPROVEMENT AND COMPLIANCE NEEDS ASSESSMENT
AND REMEDIATION PROGRAM.

Section 213A of the Caribbean Basin Economic Recovery Act
(19 U.S.C. 2703a), as amended by section 15402 of this Act, is
amended—
(1) in subsection (a)—
(A) by redesignating paragraph (5) as paragraph (8):
(B) by redesignating paragraphs (2) through (4) as
paragraphs (4) through (6), respectively;
(C) by inserting after paragraph (1) the following new
paragraphs:
‘‘(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—. The term
‘‘appropriate congressional committees’’ means the Committee
on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives.
‘‘(3) CORE LABOR STANDARDS.—The term ‘‘core labor standards’’ means—
‘‘(A) freedom of association;

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‘‘(B) the effective recognition of the right to bargain
collectively;
‘‘(C) the elimination of all forms of compulsory or forced
labor;
‘‘(D) the effective abolition of child labor and a prohibition on the worst forms of child labor; and
‘‘(E) the elimination of discrimination in respect of
employment and occupation.’’; and
(D) by inserting after paragraph (6) (as redesignated)
the following new paragraph:
‘‘(7) TAICNAR PROGRAM.—The term ‘TAICNAR Program’
means the Technical Assistance Improvement and Compliance
Needs Assessment and Remediation Program established
pursuant to subsection (e).’’;
(2) by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively; and
(3) by inserting after subsection (d) the following new subsection:
‘‘(e) TECHNICAL ASSISTANCE IMPROVEMENT AND COMPLIANCE
NEEDS ASSESSMENT AND REMEDIATION PROGRAM.—
‘‘(1) CONTINUED ELIGIBILITY FOR PREFERENCES.—
‘‘(A) PRESIDENTIAL CERTIFICATION OF COMPLIANCE BY
HAITI WITH REQUIREMENTS.—Upon the expiration of the
16-month period beginning on the date of the enactment
of the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008, Haiti shall continue to
be eligible for the preferential treatment provided under
subsection (b) only if the President determines and certifies
to the Congress that—
‘‘(i) Haiti has implemented the requirements set
forth in paragraphs (2) and (3); and
‘‘(ii) Haiti has agreed to require producers of articles for which duty-free treatment may be requested
under subsection (b) to participate in the TAICNAR
Program described in paragraph (3) and has developed
a system to ensure participation in such program by
such producers, including by developing and
maintaining the registry described in paragraph
(2)(B)(i).
‘‘(B) EXTENSION.—The President may extend the period
for compliance by Haiti under subparagraph (A) if the
President—
‘‘(i) determines that Haiti has made a good faith
effort toward such compliance and has agreed to take
additional steps to come into full compliance that are
satisfactory to the President; and
‘‘(ii) provides to the appropriate congressional
committees, not later than 6 months after the last
day of the 16-month period specified in subparagraph
(A), and every 6 months thereafter, a report identifying
the steps that Haiti has agreed to take to come into
full compliance and the progress made over the preceding 6-month period in implementing such steps.
‘‘(C) CONTINUING COMPLIANCE.—
‘‘(i) TERMINATION OF PREFERENTIAL TREATMENT.—
If, after making a certification under subparagraph
(A), the President determines that Haiti is no longer

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meeting the requirements set forth in subparagraph
(A), the President shall terminate the preferential
treatment provided under subsection (b), unless the
President determines, after consulting with the appropriate congressional committees, that meeting such
requirements is not practicable because of extraordinary circumstances existing in Haiti when the determination is made.
‘‘(ii) SUBSEQUENT COMPLIANCE.—If the President,
after terminating preferential treatment under clause
(i), determines that Haiti is meeting the requirements
set forth in subparagraph (A), the President shall
reinstate the application of preferential treatment
under subsection (b).
‘‘(2) LABOR OMBUDSMAN.—
‘‘(A) IN GENERAL.—The requirement under this paragraph is that Haiti has established an independent Labor
Ombudsman’s Office within the national government that—
‘‘(i) reports directly to the President of Haiti;
‘‘(ii) is headed by a Labor Ombudsman chosen
by the President of Haiti, in consultation with Haitian
labor unions and industry associations; and
‘‘(iii) is vested with the authority to perform the
functions described in subparagraph (B).
‘‘(B) FUNCTIONS.—The functions of the Labor Ombudsman’s Office shall include—
‘‘(i) developing and maintaining a registry of producers of articles for which duty-free treatment may
be requested under subsection (b), and developing, in
consultation and coordination with any other appropriate officials of the Government of Haiti, a system
to ensure participation by such producers in the
TAICNAR Program described in paragraph (3);
‘‘(ii) overseeing the implementation of the
TAICNAR Program described in paragraph (3);
‘‘(iii) receiving and investigating comments from
any interested party regarding the conditions described
in paragraph (3)(B) in facilities of producers listed
in the registry described in clause (i) and, where appropriate, referring such comments or the result of such
investigations to the appropriate Haitian authorities,
or to the entity operating the TAICNAR Program
described in paragraph (3);
‘‘(iv) assisting, in consultation and coordination
with any other appropriate Haitian authorities, producers listed in the registry described in clause (i)
in meeting the conditions set forth in paragraph (3)(B);
and
‘‘(v) coordinating, with the assistance of the entity
operating the TAICNAR Program described in paragraph (3), a tripartite committee comprised of appropriate representatives of government agencies,
employers, and workers, as well as other relevant
interested parties, for the purposes of evaluating
progress in implementing the TAICNAR Program
described in paragraph (3), and consulting on
improving core labor standards and working conditions

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122 STAT. 2304

PUBLIC LAW 110–246—JUNE 18, 2008
in the textile and apparel sector in Haiti, and on other
matters of common concern relating to such core labor
standards and working conditions.
‘‘(3) TECHNICAL ASSISTANCE IMPROVEMENT AND COMPLIANCE
NEEDS ASSESSMENT AND REMEDIATION PROGRAM.—
‘‘(A) IN GENERAL.—The requirement under this paragraph is that Haiti, in cooperation with the International
Labor Organization, has established a Technical Assistance
Improvement and Compliance Needs Assessment and
Remediation Program meeting the requirements under
subparagraph (C)—
‘‘(i) to assess compliance by producers listed in
the registry described in paragraph (2)(B)(i) with the
conditions set forth in subparagraph (B) and to assist
such producers in meeting such conditions; and
‘‘(ii) to provide assistance to improve the capacity
of the Government of Haiti—
‘‘(I) to inspect facilities of producers listed in
the registry described in paragraph (2)(B)(i); and
‘‘(II) to enforce national labor laws and resolve
labor disputes, including through measures
described in subparagraph (E).
‘‘(B) CONDITIONS DESCRIBED.—The conditions referred
to in subparagraph (A) are—
‘‘(i) compliance with core labor standards; and
‘‘(ii) compliance with the labor laws of Haiti that
relate directly to core labor standards and to ensuring
acceptable conditions of work with respect to minimum
wages, hours of work, and occupational health and
safety.
‘‘(C) REQUIREMENTS.—The requirements for the
TAICNAR Program are that the program—
‘‘(i) be operated by the International Labor
Organization (or any subdivision, instrumentality, or
designee thereof), which prepares the biannual reports
described in subparagraph (D);
‘‘(ii) be developed through a participatory process
that includes the Labor Ombudsman described in paragraph (2) and appropriate representatives of government agencies, employers, and workers;
‘‘(iii) assess compliance by each producer listed
in the registry described in paragraph (2)(B)(i) with
the conditions set forth in subparagraph (B) and identify any deficiencies by such producer with respect
to meeting such conditions, including by—
‘‘(I) conducting unannounced site visits to
manufacturing facilities of the producer;
‘‘(II) conducting confidential interviews separately with workers and management of the facilities of the producer;
‘‘(III) providing to management and workers,
and where applicable, worker organizations in the
facilities of the producer, on a confidential basis—
‘‘(aa) the results of the assessment carried
out under this clause; and
‘‘(bb) specific suggestions for remediating
any such deficiencies;

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‘‘(iv) assist the producer in remediating any deficiencies identified under clause (iii);
‘‘(v) conduct prompt follow-up site visits to the
facilities of the producer to assess progress on remediation of any deficiencies identified under clause (iii);
and
‘‘(vi) provide training to workers and management
of the producer, and where appropriate, to other persons or entities, to promote compliance with subparagraph (B).
‘‘(D) BIANNUAL REPORT.—The biannual reports referred
to in subparagraph (C)(i) are a report, by the entity operating the TAICNAR Program, that is published (and available to the public in a readily accessible manner) on a
biannual basis, beginning 6 months after Haiti implements
the TAICNAR Program under this paragraph, covering
the preceding 6-month period, and that includes the following:
‘‘(i) The name of each producer listed in the registry described in paragraph (2)(B)(i) that has been
identified as having met the conditions under subparagraph (B).
‘‘(ii) The name of each producer listed in the registry described in paragraph (2)(B)(i) that has been
identified as having deficiencies with respect to the
conditions under subparagraph (B), and has failed to
remedy such deficiencies.
‘‘(iii) For each producer listed under clause (ii)—
‘‘(I) a description of the deficiencies found to
exist and the specific suggestions for remediating
such deficiencies made by the entity operating the
TAICNAR Program;
‘‘(II) a description of the efforts by the producer
to remediate the deficiencies, including a description of assistance provided by any entity to assist
in such remediation; and
‘‘(III) with respect to deficiencies that have
not been remediated, the amount of time that has
elapsed since the deficiencies were first identified
in a report under this subparagraph.
‘‘(iv) For each producer identified as having deficiencies with respect to the conditions described under
subparagraph (B) in a prior report under this subparagraph, a description of the progress made in remediating such deficiencies since the submission of the
prior report, and an assessment of whether any aspect
of such deficiencies persists.
‘‘(E) CAPACITY BUILDING.—The assistance to the
Government of Haiti referred to in subparagraph (A)(ii)
shall include programs—
‘‘(i) to review the labor laws and regulations of
Haiti and to develop and implement strategies for
bringing the laws and regulations into conformity with
core labor standards;
‘‘(ii) to develop additional strategies for facilitating
protection of core labor standards and providing acceptable conditions of work with respect to minimum

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122 STAT. 2306

wages, hours of work, and occupational safety and
health, including through legal, regulatory, and institutional reform;
‘‘(iii) to increase awareness of worker rights,
including under core labor standards and national
labor laws;
‘‘(iv) to promote consultation and cooperation
between government representatives, employers,
worker representatives, and United States importers
on matters relating to core labor standards and
national labor laws;
‘‘(v) to assist the Labor Ombudsman appointed
pursuant to paragraph (2) in establishing and coordinating operation of the committee described in paragraph (2)(B)(v);
‘‘(vi) to assist worker representatives in more fully
and effectively advocating on behalf of their members;
and
‘‘(vii) to provide on-the-job training and technical
assistance to labor inspectors, judicial officers, and
other relevant personnel to build their capacity to
enforce national labor laws and resolve labor disputes.
‘‘(4) COMPLIANCE WITH ELIGIBILITY CRITERIA.—
‘‘(A) COUNTRY COMPLIANCE WITH WORKER RIGHTS ELIGIBILITY CRITERIA.—In making a determination of whether
Haiti is meeting the requirement set forth in subsection
(d)(1)(A)(vi) relating to internationally recognized worker
rights, the President shall consider the reports produced
under paragraph (3)(D).
‘‘(B) PRODUCER ELIGIBILITY.—
‘‘(i) IDENTIFICATION OF PRODUCERS.—Beginning in
the second calendar year after the President makes
the certification under paragraph (1)(A), the President
shall identify on a biennial basis whether a producer
listed in the registry described in paragraph (2)(B)(i)
has failed to comply with core labor standards and
with the labor laws of Haiti that directly relate to
and are consistent with core labor standards.
‘‘(ii) ASSISTANCE TO PRODUCERS; WITHDRAWAL, ETC.,
OF PREFERENTIAL TREATMENT.—For each producer that
the President identifies under clause (i), the President
shall seek to assist such producer in coming into
compliance with core labor standards and with the
labor laws of Haiti that directly relate to and are
consistent with core labor standards. If such efforts
fail, the President shall withdraw, suspend, or limit
the application of preferential treatment under subsection (b) to articles of such producer.
‘‘(iii) REINSTATING PREFERENTIAL TREATMENT.—If
the President, after withdrawing, suspending, or limiting the application of preferential treatment under
clause (ii) to articles of a producer, determines that
such producer is complying with core labor standards
and with the labor laws of Haiti that directly relate
to and are consistent with core labor standards, the
President shall reinstate the application of preferential

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122 STAT. 2307

treatment under subsection (b) to the articles of the
producer.
‘‘(iv) CONSIDERATION OF REPORTS.—In making the
identification under clause (i) and the determination
under clause (iii), the President shall consider the
reports made available under paragraph (3)(D).
‘‘(5) REPORTS BY THE PRESIDENT.—
‘‘(A) IN GENERAL.—Not later than one year after the
date of the enactment of the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008,
and annually thereafter, the President shall transmit to
the appropriate congressional committees a report on the
implementation of this subsection during the preceding
1-year period.
‘‘(B) MATTERS TO BE INCLUDED.—Each report required
by subparagraph (A) shall include the following:
‘‘(i) An explanation of the efforts of Haiti, the President, and the International Labor Organization to
carry out this subsection.
‘‘(ii) A summary of each report produced under
paragraph (3)(D) during the preceding 1-year period
and a summary of the findings contained in such
report.
‘‘(iii) Identifications made under paragraph
(4)(B)(i) and determinations made under paragraph
(4)(B)(iii).
‘‘(6) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection the sum
of $10,000,000 for the period beginning on October 1, 2008,
and ending on September 30, 2013.’’.

Time period.

SEC. 15404. PETITION PROCESS.

Section 213A(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703A(d)) is amended by adding at the end the
following new paragraph:
‘‘(4) PETITION PROCESS.—Any interested party may file a
request to have the status of Haiti reviewed with respect to
the eligibility requirements listed in paragraph (1), and the
President shall provide for this purpose the same procedures
as those that are provided for reviewing the status of eligible
beneficiary developing countries with respect to the designation
criteria listed in subsections (b) and (c) of section 502 of the
Trade Act of 1974 (19 U.S.C. 2642 (b) and (c)).’’.

President.

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SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF CIRCUMVENTION.

Section 213A(f) of the Caribbean Basin Economic Recovery
Act, as redesignated by section 15403(2) of this Act, is amended
by adding at the end the following new paragraph:
‘‘(3) LIMITATION ON GOODS SHIPPED FROM THE DOMINICAN
REPUBLIC.—
‘‘(A) LIMITATION.—Notwithstanding subsection (a)(5),
relating to the definition of ‘imported directly from Haiti
or the Dominican Republic’, articles described in subsection
(b) that are shipped from the Dominican Republic, directly
or through the territory of an intermediate country,
whether or not such articles undergo processing in the
Dominican Republic, shall not be considered to be ‘imported

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Certification.

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PUBLIC LAW 110–246—JUNE 18, 2008
directly from Haiti or the Dominican Republic’ until the
President certifies to the Congress that Haiti and the
Dominican Republic have developed procedures to prevent
unlawful transshipment of the articles and the use of
counterfeit documents related to the importation of the
articles into the United States.
‘‘(B) TECHNICAL AND OTHER ASSISTANCE.—The Commissioner responsible for U.S. Customs and Border Protection
shall provide technical and other assistance to Haiti and
the Dominican Republic to develop expeditiously the procedures described in subparagraph (A).’’.

19 USC 2703a
note.

SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY.

President.
Deadlines.
19 USC 2703a
note.

SEC. 15407. REGULATIONS AND PROCEDURES.

The President may exercise the authority under section 604
of the Trade Act of 1974 to proclaim such modifications to the
Harmonized Tariff Schedule of the United States as may be necessary to carry out this part and the amendments made by this
part.
The President shall issue such regulations as may be necessary
to carry out the amendments made by sections 15402, 15403, and
15404. Regulations to carry out the amendments made by section
15402 shall be issued not later than September 30, 2008. The
Secretary of Commerce shall issue such procedures as may be
necessary to carry out the amendment made by section 15402(d)
not later than September 30, 2008.
SEC. 15408. EXTENSION OF CBTPA.

Section 213(b) of the Caribbean Basin Economic Recovery Act
(19 U.S.C. 2703(b)) is amended—
(1) in paragraph (2)(A)—
(A) in clause (iii)—
(i) in subclause (II)(cc), by striking ‘‘2008’’ and
inserting ‘‘2010’’; and
(ii) in subclause (IV)(dd), by striking ‘‘2008’’ and
inserting ‘‘2010’’; and
(B) in clause (iv)(II), by striking ‘‘6’’ and inserting
‘‘8’’; and
(2) in paragraph (5)(D)—
(A) in clause (i), by striking ‘‘2008’’ and inserting
‘‘2010’’; and
(B) in clause (ii), by striking ‘‘108(b)(5)’’ and inserting
‘‘section 108(b)(5)’’.

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SEC. 15409. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE
AND APPAREL PROVISIONS FOR HAITI.

It is the sense of the Congress that the executive branch,
particularly the Committee for the Implementation of Textile Agreements (CITA), U.S. Customs and Border Protection of the Department of Homeland Security, and the Department of Commerce,
should interpret, implement, and enforce the provisions of section
213A(b) of the Caribbean Basin Economic Recovery Act, as amended
by section 15402 of this Act, relating to preferential treatment
of textile and apparel articles, broadly in order to expand trade
by maximizing opportunities for imports of articles eligible for preferential treatment under such section 213A(b).

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122 STAT. 2309

SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO HAITI.

It is the sense of the Congress that the Secretary of Commerce,
in coordination with the United States Trade Representative, the
Secretary of State, and the Commissioner responsible for U.S. Customs and Border Protection of the Department of Homeland Security, should lead a trade mission to Haiti, within 6 months after
the date of the enactment of this Act, to promote trade between
the United States and Haiti, to promote new economic opportunities
afforded under the amendments made by section 15402 of this
Act, and to help educate United States and Haitian business concerns about such opportunities.
SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS.

It is the sense of the Congress that Haiti, and other countries
that receive preferences under trade preference programs of the
United States that require effective visa systems to prevent transshipment, should ensure that monetary compensation for such visas
is not required beyond the costs of processing the visa, including
ensuring that such monetary compensation does not violate an
applicable system to combat corruption and bribery.
SEC. 15412. EFFECTIVE DATE.

(a) IN GENERAL.—Except as provided in subsection (b), this
part and the amendments made by this part shall take effect
on the date of the enactment of this Act.
(b) EXCEPTION.—The amendments made by section 15402 shall
take effect on October 1, 2008, and shall apply to articles entered,
or withdrawn from warehouse for consumption, on or after that
date.

19 USC 2703a
note.

PART II—MISCELLANEOUS TRADE
PROVISIONS
SEC. 15421. UNUSED MERCHANDISE DRAWBACK.

(a) IN GENERAL.—Section 313(j)(2) of the Tariff Act of 1930
(19 U.S.C. 1313(j)(2)) is amended by adding at the end the following:
‘‘For purposes of subparagraph (A) of this paragraph, wine of the
same color having a price variation not to exceed 50 percent between
the imported wine and the exported wine shall be deemed to be
commercially interchangeable.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to claims filed for drawback under section
313(j)(2) of the Tariff Act of 1930 on or after the date of the
enactment of this Act.

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SEC. 15422. REQUIREMENTS RELATING TO DETERMINATION OF TRANSACTION VALUE OF IMPORTED MERCHANDISE.

19 USC 1313
note.

19 USC 1484
note.

(a) REQUIREMENT ON IMPORTERS.—
(1) IN GENERAL.—Pursuant to sections 484 and 485 of the
Tariff Act of 1930 (19 U.S.C. 1484 and 1485), the Commissioner
responsible for U.S. Customs and Border Protection shall
require each importer of merchandise to provide to U.S. Customs and Border Protection at the time of entry of the merchandise the information described in paragraph (2).
(2) INFORMATION REQUIRED.—The information referred to
in paragraph (1) is a declaration as to whether the transaction
value of the imported merchandise is determined on the basis

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of the price paid by the buyer in the first or earlier sale
occurring prior to introduction of the merchandise into the
United States.
(3) EFFECTIVE DATE.—The requirement to provide information under this subsection shall be effective for the 1-year
period beginning 90 days after the date of the enactment of
this Act.
(b) REPORT TO INTERNATIONAL TRADE COMMISSION.—
(1) IN GENERAL.—The Commissioner responsible for U.S.
Customs and Border Protection shall submit to the United
States International Trade Commission on a monthly basis
for the 1-year period specified in subsection (a)(3) a report
on the information provided by importers under subsection
(a)(2) during the preceding month. The report required under
this paragraph shall be submitted in a form agreed upon
between U.S. Customs and Border Protection and the United
States International Trade Commission.
(2) MATTERS TO BE INCLUDED.—The report required under
paragraph (1) shall include—
(A) the number of importers that declare the transaction value of the imported merchandise is determined
on the basis of the method described in subsection (a)(2);
(B) the tariff classification of such imported merchandise under the Harmonized Tariff Schedule of the United
States; and
(C) the transaction value of such imported merchandise.
(c) REPORT TO CONGRESS.—
(1) IN GENERAL.—Not later than 90 days after the submission of the final report under subsection (b), the United States
International Trade Commission shall submit to the appropriate congressional committees a report on the information
contained in all reports submitted under subsection (b).
(2) MATTERS TO BE INCLUDED.—The report required under
paragraph (1) shall include—
(A) the aggregate number of importers that declare
the transaction value of the imported merchandise is determined on the basis of the method described in subsection
(a)(2), including a description of the frequency of the use
of such method;
(B) the tariff classification of such imported merchandise under the Harmonized Tariff Schedule of the United
States on an aggregate basis, including an analysis of
the tariff classification of such imported merchandise on
a sectoral basis;
(C) the aggregate transaction value of such imported
merchandise, including an analysis of the transaction value
of such imported merchandise on a sectoral basis; and
(D) the aggregate transaction value of all merchandise
imported into the United States during the 1-year period
specified in subsection (a)(3).
(d) SENSE OF CONGRESS REGARDING PROHIBITION ON PROPOSED
INTERPRETATION OF THE TERM ‘‘SOLD FOR EXPORTATION TO THE
UNITED STATES’’.—
(1) IN GENERAL.—It is the sense of Congress that the
Commissioner responsible for U.S. Customs and Border Protection should not implement a change to U.S. Customs and Border

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122 STAT. 2311

Protection’s interpretation (as such interpretation is in effect
on the date of the enactment of this Act) of the term ‘‘sold
for exportation to the United States’’, as described in section
402(b) of the Tariff Act of 1930 (19 U.S.C. 1401a(b)), for purposes of applying the transaction value of the imported merchandise in a series of sales, before January 1, 2011.
(2) EXCEPTION.—It is the sense of Congress that beginning
on January 1, 2011, the Commissioner responsible for U.S.
Customs and Border Protection may propose to change or
change U.S. Customs and Border Protection’s interpretation
of the term ‘‘sold for exportation to the United States’’, as
described in paragraph (1), only if U.S. Customs and Border
Protection—
(A) consults with, and provides notice to, the appropriate congressional committees—
(i) not less than 180 days prior to proposing a
change; and
(ii) not less than 90 days prior to publishing a
change;
(B) consults with, provides notice to, and takes into
consideration views expressed by, the Commercial Operations Advisory Committee—
(i) not less than 120 days prior to proposing a
change; and
(ii) not less than 60 days prior to publishing a
change; and
(C) receives the explicit approval of the Secretary of
the Treasury prior to publishing a change.
(3) CONSIDERATION OF INTERNATIONAL TRADE COMMISSION
REPORT.—It is the sense of Congress that prior to publishing
a change to U.S. Customs and Border Protection’s interpretation (as such interpretation is in effect on the date of the
enactment of this Act) of the term ‘‘sold for exportation to
the United States’’, as described in section 402(b) of the Tariff
Act of 1930 (19 U.S.C. 1401a(b)), for purposes of applying
the transaction value of the imported merchandise in a series
of sales, the Commissioner responsible for U.S. Customs and
Border Protection should take into consideration the matters
included in the report prepared by the United States International Trade Commission under subsection (c).
(e) DEFINITIONS.—In this section:
(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term
‘‘appropriate congressional committees’’ means the Committee
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate.
(2) COMMERCIAL OPERATIONS ADVISORY COMMITTEE.—The
term ‘‘Commercial Operations Advisory Committee’’ means the
Advisory Committee established pursuant to section 9503(c)
of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C.
2071 note) or any successor committee.
(3) IMPORTER.—The term ‘‘importer’’ means one of the parties qualifying as an ‘‘importer of record’’ under section
484(a)(2)(B) in the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(B)).
(4) TRANSACTION VALUE OF THE IMPORTED MERCHANDISE.—
The term ‘‘transaction value of the imported merchandise’’ has

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Notice.
Deadlines.

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the meaning described in section 402(b) of the Tariff Act of
1930 (19 U.S.C. 1401a(b)).

Nancy Pelosi
Speaker of the House of Representatives.
Jon Tester
Acting President of the Senate pro tempore.

IN THE HOUSE OF REPRESENTATIVES, U.S.
June 18, 2008.
The House of Representatives having proceeded to reconsider the bill (H.R. 6124)
entitled ‘‘An Act to provide for the continuation of agricultural and other programs
of the Department of Agriculture through fiscal year 2012, and for other purposes’’,
returned by the President of the United States with his objections, to the House of
Representatives, in which it originated, it was
Resolved, That the said bill pass, two-thirds of the House of Representatives
agreeing to pass the same.
Lorraine C. Miller
Clerk.
I certify that this Act originated in the House of Representatives.

Lorraine C. Miller

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Clerk.

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122 STAT. 2313

IN THE SENATE OF THE UNITED STATES,
June 18, 2008.
The Senate having proceeded to reconsider the bill (H.R. 6124) entitled ‘‘An Act
to provide for the continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2012, and for other purposes.’’, returned by
the President of the United States with his objections, to the House of Representatives, in which it originated, and passed by the House of Representatives on reconsideration of the same, it was
Resolved, That the said bill pass, two-thirds of the Senators present having voted
in the affirmative.
Nancy Erickson
Secretary.

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LEGISLATIVE HISTORY—H.R. 6124 (S. 2302):
SENATE REPORTS: No. 110–220 accompanying S. 2302 (Comm. on Agriculture,
Nutrition, and Forestry).
CONGRESSIONAL RECORD, Vol. 154 (2008):
May 22, considered and passed House.
June 5, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 44 (2008):
June 18, Presidential veto message.
CONGRESSIONAL RECORD, Vol. 154 (2008):
June 18, House and Senate overrode veto.

Æ

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