“AMENDMENTS” published by the Congressional Record on Oct. 2, 2001

Volume 147, No. 130 covering the 1st Session of the 107th Congress (2001 - 2002) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“AMENDMENTS” mentioning the U.S. Dept of Agriculture was published in the House of Representatives section on pages H6138-H6163 on Oct. 2, 2001.

The publication is reproduced in full below:

AMENDMENTS

Under clause 8 of rule XVIII, proposed amendments were submitted as follows:

H.R. 2646

Offered By: Mr. Ackerman

Amendment No. 2: At the end of title IX (page 354, after line 16), insert the following new section:

SEC. __. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY

LIVESTOCK.

Title III of the Packers and Stockyards Act, 1921, (7 U.S.C. 201 et seq.) is amended by adding at the end the following:

``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING

NONAMBULATORY LIVESTOCK.

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

``(1) Humanely euthanize.--The term `humanely euthanize' means to kill an animal by mechanical, chemical, or other means that immediately render the animal unconscious, with this state remaining until the animal's death.

``(2) Nonambulatory livestock.--The term `nonambulatory livestock' means any livestock that is unable to stand and walk unassisted.

``(b) Unlawful Practices.--

``(1) In general.--Except as provided in paragraph (2), it shall be unlawful for any stockyard owner, market agency, or dealer to buy, sell, give, receive, transfer, market, hold, or drag any nonambulatory livestock unless the nonambulatory livestock has been humanely euthanized.

``(2) Exceptions.--

``(A) Non-gipsa farms.--Paragraph (1) shall not apply to any farm the animal care practices of which are not subject to the authority of the Grain Inspection, Packers, and Stockyards Administration.

``(B) Veterinary care.--Paragraph (1) shall not apply in a case in which nonambulatory livestock receive veterinary care intended to render the livestock ambulatory.

``(c) Application of Prohibition.--Subsection (b) shall apply beginning one year after the date of the enactment of the Farm Security Act of 2001. By the end of such period, the Secretary shall promulgate regulations to carry out this section.''.

H.R. 2646

Offered By: Mr. Andrews

Amendment No. 3: At the end of subtitle F of title II, insert the following:

SEC. __. PROVISION OF ASSISTANCE FOR REPAUPO CREEK TIDE GATE

AND DIKE RESTORATION PROJECT, NEW JERSEY.

(a) In General.--Notwithstanding section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203), the Secretary of Agriculture, acting through the Natural Resources Conservation Service, shall provide assistance for planning and implementation of the Repaupo Creek Tide Gate and Dike Restoration Project in the State of New Jersey.

(b) Funding.--Of the funds available for the Emergency Watershed Protection Program, not to exceed $600,000 shall be available to the Secretary of Agriculture to carry out subsection (a).

H.R. 2646

Offered By: Mr. Bereuter

Amendment No. 4: In section 212(a)--

(1) strike ``and'' at the end of paragraph (1);

(2) strike the last period at the end of paragraph (2) and insert ``; and''; and

(3) add at the end the following:

(3) by adding after and below the end the following flush sentence:

``Notwithstanding the preceding sentence (but subject to subsection (c)), the Secretary may not include in the program established under this subchapter any land that has not been in production for at least 4 years, unless the land is in the program as of the effective date of this sentence.''.

H.R. 2646

Offered By: Mr. Bereuter

[Page and line numbers refer to the amendment in the nature of a substitute, COMBES.01]

Amendment No. 5: At the end of subtitle B of title I (page 66, after line 3), insert the following new section:

SEC. 132. ALTERNATIVE LOAN RATES UNDER FLEXIBLE FALLOW

PROGRAM.

(a) Definition of Total Planted Acreage.--In this section, the term ``total planted acreage'' means the cropland acreage of a producer that for the 2000 crop year was--

(1) planted to a covered commodity;

(2) prevented from being planted to a covered commodity; or

(3) fallow as part of a fallow rotation practice with respect to a covered commodity, as determined by the Secretary.

(b) Election To Participate.--In lieu of receiving a loan rate under section 122 with respect to production eligible for a loan under section 121, a producer may elect to participate in a flexible fallow program for any of the 2002 through 2011 crops under which annually--

(1) the producer determines which acres of the total planted acreage are assigned to a specific covered commodity;

(2) the producer determines--

(A) the projected percentage reduction rate of production of the specific covered commodity based on the acreage assigned to the covered commodity under paragraph (1); and

(B) the acreage of the total planted acreage of the producer to be set aside under subparagraph (A), regardless of whether the acreage is on the same farm as the acreage planted to the specific covered commodity;

(3) based on the projected percentage reduction rate of production as a result of the acreage set aside under paragraph (2), the producer receives the loan rate for each covered commodity produced by the producer, as determined under subsection (c); and

(4) the acreage planted to covered commodities for harvest and set aside under this section is limited to the total planted acreage of the producer.

(1) In general.--Subject to paragraphs (2) and (3), in the case of a producer of a covered commodity that elects to participate in the flexible fallow program under this section, the loan rate for a marketing assistance loan under section 121 for a crop of the covered commodity shall be based on the projected percentage reduction rate of production determined by the producer under subsection

(b)(2), in accordance with the following table:

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Projected Percentage Upland Cotton Loan Rate ($/ Rice Loan Rate ($/

Reduction Rate Corn commodity Rate ($/bushel) Wheat Loan Rate ($/bushel) Soybean Loan Rate ($/bushel) pound) hundredweight)

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0% 1.89 2.75 4.72 0.5192 6.50

1% 1.91 2.78 4.77 0.5268 6.60

2% 1.93 2.81 4.81 0.5344 6.70

3% 1.95 2.83 4.86 0.5420 6.80

4% 1.97 2.86 4.91 0.5496 6.90

5% 1.99 2.89 4.96 0.5572 7.00

6% 2.01 2.92 5.01 0.5648 7.10

7% 2.03 2.95 5.06 0.5724 7.20

8% 2.05 2.98 5.11 0.5800 7.30

9% 2.07 3.01 5.16 0.5876 7.40

10% 2.09 3.04 5.21 0.5952 7.50

11% 2.12 3.08 5.29 0.6028 7.60

12% 2.15 3.13 5.36 0.6104 7.70

13% 2.18 3.17 5.43 0.6180 7.80

14% 2.21 3.22 5.51 0.6256 7.90

15% 2.24 3.27 5.58 0.6332 8.00

16% 2.28 3.31 5.65 0.6408 8.10

17% 2.31 3.36 5.73 0.6484 8.20

18% 2.34 3.41 5.81 0.6560 8.30

19% 2.37 3.46 5.88 0.6636 8.40

20% 2.41 3.51 5.96 0.6712 8.50

21% 2.44 3.55 6.04 0.6788 8.60

22% 2.47 3.60 6.12 0.6864 8.70

23% 2.51 3.65 6.19 0.6940 8.80

24% 2.54 3.70 6.27 0.7016 8.90

25% 2.57 3.75 6.35 0.7092 9.00

26% 2.61 3.80 6.43 0.7168 9.10

27% 2.64 3.85 6.51 0.7244 9.20

28% 2.68 3.90 6.60 0.7320 9.30

29% 2.71 3.95 6.68 0.7396 9.40

30% 2.75 4.01 6.76 0.7472 9.50.

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(2) County average yields.--

(A) In general.--The loan rate for a marketing assistance loan made to a producer for a crop of a covered commodity under paragraph (1) shall apply with respect to the production of the crop of the covered commodity by the producer in a quantity that does not exceed the historical county average yield for the covered commodity established by the National Agricultural Statistics Service, adjusted for long-term yield trends.

(B) Excess production.--The loan rate for a marketing assistance loan made to a producer for a crop of a covered commodity under paragraph (1) with respect to the production of the crop of the covered commodity in excess of the historical county average yield for the covered commodity described in subparagraph (A) shall be equal to the loan rate established for a 0% projected percentage reduction rate for the covered commodity under paragraph (1).

(i) In general.--If the production of a crop of a covered commodity by a producer is less than the historical county average yield for the covered commodity described in subparagraph (A) as a result of damaging weather, an insurable peril, or related condition, the producer may receive a payment on the lost production that shall equal the difference between--

(I) the maximum quantity of covered commodity that could have been designated for the loan rate authorized under this section for the producer; and

(II) the quantity of covered commodity the producer was able to produce and commercially market.

(ii) Calculation of payment.--The payment described in clause (i) shall be equal to the loan deficiency payment the producer could have received on the lost production on any date, selected by the producer, on which a loan deficiency payment was available for that crop of the covered commodity.

(3) Other covered commodities.--In the case of a producer of a covered commodity not covered by paragraphs (1) and (2) that elects to participate in the flexible fallow program under this section, the loan rate for a marketing assistance loan under section 121 for the crop of the covered commodity shall be based on--

(A) in the case of grain sorghum, barley, and oats, such level as the Secretary determines is fair and reasonable in relation to the rate that loans are made available for corn, taking into consideration the feeding value of the commodity in relation to corn;

(B) in the case of extra long staple cotton, such level as the Secretary determines is fair and reasonable; and

(C) in the case of oilseeds other than soybeans, such level as the Secretary determines is fair and reasonable in relation to the loan rate available for soybeans, except that the rate for the oilseeds (other than cottonseed) shall not be less than the rate established for soybeans on a per-pound basis for the same crop.

(d) Conservation Use of Set-Aside Acreage.--To be eligible for a loan rate under this section, a producer shall devote all of the acreage set aside under this section to a conservation use approved by the Secretary and manage the set-aside acreage using management practices designed to enhance soil conservation and wildlife habitat. The Secretary shall prescribe the approved management practices for a county in consultation with the relevant State technical committee.

(1) Limited Grazing.--The Secretary may permit limited grazing on the set-aside acreage when the grazing is incidental to the gleaning of crop residues on adjacent fields.

(e) Certification.--To be eligible to participate in the flexible fallow program for any of the 2002 through 2011 crops, a producer shall certify to the Secretary (by farm serial number) the total planted acreage assigned, planted, and set aside with respect to each covered commodity.

H.R. 2646

Offered By: Mr. Bereuter

Amendment No. 6: At the end of title IX, insert the following new section:

SEC. __. AUTHORIZATION FOR ADDITIONAL STAFF AND FUNDING FOR

THE GRAIN INSPECTION, PACKERS AND STOCKYARDS

ADMINISTRATION.

There are authorized to be appropriated such sums as are necessary to enhance the capability of the Grain Inspection, Packers and Stockyards Administration to monitor, investigate, and pursue the competitive implications of structural changes in the meat packing industry. Sums are specifically earmarked to hire litigating attorneys to allow the Grain Inspection, Packers and Stockyards Administration to more comprehensively and effectively pursue its enforcement activities.

H.R. 2646

Offered By: Mr. Bereuter

Amendment No. 7: At the end of title V, insert the following:

SEC. __. AUTHORITY TO MAKE BUSINESS AND INDUSTRY GUARANTEED

LOANS FOR FARMER-OWNED PROJECTS THAT ADD VALUE

TO OR PROCESS AGRICULTURAL PRODUCTS.

Section 310B(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)(1)) is amended by inserting

``(and in areas other than rural communities, in the case of insured loans, if a majority of the project involved is owned by individuals who reside and have farming operations in rural communities, and the project adds value to or processes agricultural commodities)'' after ``rural communities''.

H.R. 2646

Offered By: Mr. Blumenauer

[Page and line numbers refer to the amendment in the nature of a substitute, COMBES.011]

Amendment No. 8: At the end of title IX (page 354, after line 16), insert the following new section:

SEC. 932. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR

ANIMAL FIGHTING.

(a) Prohibition on Interstate Movement of Animals for Animal Fighting.--Section 26(d) of the Animal Welfare Act (7 U.S.C. 2156(d)) is amended to read as follows:

``(d) Activities Not Subject to Prohibition.--This section does not apply to the selling, buying, transporting, or delivery of an animal in interstate or foreign commerce for any purpose, so long as the purpose does not include participation of the animal in an animal fighting venture.''.

(b) Effective Date.--The amendment made by this section take effect 30 days after the date of the enactment of this Act.

In the table of contents, after the item relating to section 931 (page 8, before line 1), insert the following new item:

Sec. 932. Prohibition on interstate movement of animals for animal fighting.

H.R. 2646

Offered By: Mr. Blumenauer

[Page and line numbers refer to the amendment in the nature of a substitute, COMBES.011]

Amendment No. 9: At the end of title IX (page 354, after line 16), insert the following new section:

SEC. 932. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE

ANIMAL WELFARE ACT.

(a) Penalties and Foreign Commerce Provisions of the Animal Welfare Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is amended--

(1) in subsection (e)--

(A) by inserting ``Penalties.--'' after ``(e)'';

(B) by striking ``$5,000'' and inserting ``$15,000''; and

(2) in subsection (g)(2)(B), by inserting at the end before the semicolon the following: ``or from any State into any foreign country''.

(b) Effective Date.--The amendments made by this section take effect 30 days after the date of the enactment of this Act.

In the table of contents, after the item relating to section 931 (page 8, before line 1), insert the following new item:

Sec. 932. Penalties and foreign commerce provisions of the Animal

Welfare Act.

H.R. 2646

Offered By: Mr. Boehlert

Amendment No. 10: Strike title II and insert the following:

TITLE II--CONSERVATION

Subtitle A--Farm and Ranch Preservation

SEC. 201. FARMLAND PROTECTION PROGRAM.

Section 388 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) is amended to read as follows:

``SEC. 388. FARMLAND PROTECTION PROGRAM.

``(a) Establishment and Purpose.--The Secretary of Agriculture (in this section referred to as the

``Secretary'') shall carry out a farmland protection program for the purpose of protecting farm and ranch lands with prime, unique, or other productive uses and agricultural lands that contain historic or archaeological resources, by limiting the nonagricultural uses of the lands. Under the program, the Secretary may provide matching grants to eligible entities described in subsection (d) to facilitate their purchase of--

``(1) permanent conservation easements in such lands; or

``(2) conservation easements or other interests in such lands when the lands are subject to a pending offer from a State or local government.

``(b) Conservation Plan.--Any highly erodible land for which a conservation easement or other interest is purchased using funds made available under this section shall be subject to the requirements of a conservation plan that requires, at the option of the Secretary of Agriculture, the conversion of the cropland to less intensive uses.

``(c) Maximum Federal Share.--The Federal share of the cost of purchasing a conservation easement under subsection (a)(1) may not exceed 50 percent of the total cost of purchasing the easement.

``(d) Eligible Entity Defined.--In this section, the term

`eligible entity' means any of the following:

``(1) An agency of a State or local government.

``(2) A federally recognized Indian tribe.

``(3) Any organization that is organized for, and at all times since its formation has been operated principally for, 1 or more of the conservation purposes specified in clause

(i), (ii), or (iii) of section 170(h)(4)(A) of the Internal Revenue Code of 1986 and--

``(A) is described in section 501(c)(3) of the Code;

``(B) is exempt from taxation under section 501(a) of the Code; and

``(C) is described in paragraph (2) of section 509(a) of the Code, or paragraph (3) of such section, but is controlled by an organization described in paragraph (2) of such section.

``(e) Grant Factors.--Among the factors the Secretary shall consider in making grants under this section, the Secretary shall consider the extent to which States are encouraging or adopting measures to protect farmland and ranchland from conversion to non-agricultural uses.

``(f) Title; Enforcement.--An eligible entity may hold title to a conservation easement purchased using grant funds provided under subsection (a)(1) and enforce the conservation requirements of the easement.

``(g) State Certification.--As a condition of the receipt by an eligible entity of a grant under subsection (a)(1), the attorney general of the State in which the conservation easement is to be purchased using the grant funds shall certify that the conservation easement to be purchased is in a form that is sufficient, under the laws of the State, to achieve the purposes of the farmland protection program and the terms and conditions of the grant.

``(h) Funding.--

``(1) Use of commodity credit corporation funds.--The Secretary shall use not more than $100,000,000 in fiscal year 2002, $200,000,000 in fiscal year 2003, $350,000,000 in fiscal year 2004, $450,000,000 in fiscal year 2005, and

$500,000,000 in each of fiscal years 2006 through 2011, of the funds of the Commodity Credit Corporation to carry out this section.

``(2) Limitation on technical assistance.--To provide technical assistance to carry out this section, the Secretary may use not more than 10 percent of the amount made available for any fiscal year under paragraph (1).

``(i) Grants and Assistance To Enhance Farm Viability.--For each year for which funds are available for the program under this section, the Secretary may use not more than $10,000,000 to provide matching market development grants and technical assistance to farm and ranch operators who participate in the program. As a condition of receiving such a grant, the grantee shall provide an amount equal to the grant from non-Federal sources.''.

SEC. 202. SOCIALLY DISADVANTAGED FARMERS.

Section 2501(a)(3) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)(3)) is amended--

(1) by striking ``$10,000,000'' and inserting ``$15,000,000 from the Commodity Credit Corporation''; and

(2) by adding at the end the following: ``Any agency of the Department of Agriculture may participate jointly in any grant or contract entered in furtherance of the objectives of this section if it agreed that the objectives of the grant or contract will further the authorized programs of the contributing agency.''.

Subtitle B--Environmental Stewardship On Working Lands

SEC. 211. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is amended--

(1) by striking ``to--'' and all that follows through

``provides'' and inserting ``to provide'';

(2) inserting ``air'' after ``that face the most serious threats to'';

(3) by redesignating the subparagraphs (A) through (D) that follow the matter amended by paragraph (2) of this section as paragraphs (1) through (4), respectively;

(4) by moving each of such redesignated provisions 2 ems to the left; and

(5) by striking ``farmers and ranchers'' each place it appears and inserting ``producers''.

SEC. 212. DEFINITIONS.

Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) is amended--

(1) in paragraph (1)--

(A) by inserting ``nonindustrial private forest land,'' before ``and other land''; and

(B) by striking all after ``poses a serious threat to'' and inserting ``air, soil, water, or related resources.''; and

(2) in paragraph (4), by inserting ``, including nonindustrial private forestry'' before the period.

SEC. 213. ESTABLISHMENT AND ADMINISTRATION.

(a) Reauthorization.--Section 1240B(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ``2002'' and inserting ``2011''.

(b) Incentive Payments.--Section 1240B of such Act (16 U.S.C. 3839aa-2) is amended by adding at the end the following:

``(h) Watershed Quality Incentive Program.--

``(1) In general.--The Secretary shall create a program to improve water quality in individual watersheds nationwide. Except as otherwise provided in this subsection, the program shall be administered in accordance with the terms of the Environmental Quality Incentives Program.

``(2) Consistency with watershed plan.--In allocating funds under this subsection, the Secretary shall consider the extent to which an application for the funds is consistent with a locally developed watershed plan, in addition to the other factors established by section 1240C.

``(3) Contracts.--The Secretary shall enter into contracts in accordance with this section with producers whose activities affect water quality, including the quality of public drinking water supplies, to implement and maintain nutrient management, pest management, soil erosion practices, and other conservation activities that protect water quality and protect human health. The contracts shall--

``(A) describe the nutrient management, pest management or soil loss practices to be implemented, maintained, or improved;

``(B) contain a schedule of implementation;

``(C) address water quality priorities of the watershed in which the operation is located to the greatest extent possible; and

``(D) contain such other terms as the Secretary determines to be appropriate.

``(4) Voluntary water quality benefits evaluation.--On approval of the producer, the Secretary may include the cost of water quality benefits evaluation as part of a contract entered into under this section.

``(5) Drinking water suppliers pilot program.--

``(A) In general.--The Secretary shall establish a pilot program in 15 watersheds to improve water quality in cooperation with local water utilities.

``(B) Pilot program.--The Secretary shall select the watersheds and make available funds to be allocated to producers in partnership with drinking water utilities in the watersheds, provided that drinking water utilities measure water quality and target incentives payments to improve water quality.

``(6) Nutrient reduction pilot program.--The Secretary shall use up to $100,000,000 annually of the funds provided under this subsection in 5 impaired watersheds each year to provide incentives for agricultural producers to reduce nitrogen and phosphorous applications by at least 15 percent below the average rates used by comparable farms in the State. Incentive payments shall reflect the extent to which producers reduce nitrogen and phosphorous applications.

``(7) Recognition of state efforts.--The Secretary shall recognize the financial contribution of States, among other factors, during the allocation of funding under this subsection.''.

(16 U.S.C. 3839aa-2(g)) is amended--

(1) by inserting ``drinking water utility'' after

``forestry agency,''; and

(2) by inserting ``, cost-share payments, and incentives'' after ``technical assistance''.

SEC. 214. EVALUATION OF OFFERS AND PAYMENTS.

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 OFFERS AND PAYMENTS.

``The Secretary shall establish a ranking process and benefits index to prioritize technical assistance, cost-share payments, and incentives payments to producers to maximize soil and water quality and wildlife habitat and other environmental benefits per dollar expended. The ranking process shall be weighted to ensure that technical assistance, cost-share payments, and incentives are provided to small or socially-disadvantaged farmers (as defined in section 8(a)(5) of the Small Business Act). The Secretary shall consult with local, State, and Federal public and private entities to develop the ranking process and benefits index.''.

SEC. 215. LIMITATION ON PAYMENTS.

Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) is amended--

(1) in subsection (a)--

(A) in paragraph (1), by striking ``$10,000'' and inserting

``$30,000''; and

(B) in paragraph (2), by striking ``$50,000'' and inserting

``$150,000'';

(2) in subsection (b)--

(A) by striking ``and'' at the end of paragraph (1);

(B) by striking the period at the end of paragraph (2) and inserting ``; and''; and

``(3) to share the cost of digesters.''; and

(3) by striking subsection (c).

SEC. 216. REAUTHORIZATION OF FUNDING.

Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking ``2002'' and inserting

``2011''.

SEC. 217. FUNDING.

Section 1241(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3841(b)(1)) is amended--

(1) by striking ``$130,000,000'' and all that follows through ``2002'' and inserting ``$200,000,000 for fiscal year 2001, $1,000,000,000 in fiscal years 2002 and 2003, and

$1,000,000,000 for each of fiscal years 2004 through 2011'';

(2) by inserting ``(other than under section 1240B(h))'' before the period; and

(3) by adding at the end the following: ``In addition, the Secretary shall make available for the program under section 1240B(h), $450,000,000 for fiscal years 2002 and 2003,

$500,000,000 for fiscal year 2004, $650,000,000 for fiscal year 2005, and $700,000,000 for each of fiscal years 2006 through 2011, to provide incentive payments to producers who implement watershed quality incentive contracts.''.

SEC. 218. ALLOCATION FOR LIVESTOCK AND OTHER CONSERVATION

PRIORITIES.

(a) In General.--Section 1241(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3841(b)(2)) is amended--

(1) by striking ``2002'' and inserting ``2011''; and

(2) by inserting ``(other than under section 1240B(h))'' before ``shall''.

(b) Agricultural Sustainability.--Section 1241(b) of such Act (16 U.S.C. 3841(b)) is amended by adding at the end the following:

``(3) Targeting of practices to promote agricultural sustainability.--

``(A) To the maximum extent practicable, the Secretary shall attempt to dedicate at least 10 percent of the funding in this subsection to each of the following practices to promote agricultural sustainability:

``(i) Managed grazing.

``(ii) Innovative manure management.

``(iii) Surface and groundwater conservation through improved irrigation efficiency and other practices.

``(iv) Pesticide and herbicide reduction, including practices that reduce direct human exposure.

``(B) Definitions.--In subparagraph (A):

``(i) Managed grazing.--The term `managed grazing' means practices which frequently rotate animals on grazing lands to enhance plant health, limit soil erosion, protect ground and surface water quality, or benefit wildlife.

``(ii) Innovative manure management.--The term `innovative manure management' means manure management technologies which--

``(I) eliminate the discharge of animal waste to surface and groundwaters through direct discharge, seepage, and runoff;

``(II) substantially eliminate atmospheric emissions of ammonia;

``(III) substantially eliminate the emission of odor;

``(IV) substantially eliminate the release of disease-transmitting vectors and pathogens;

``(V) substantially eliminate nutrient heavy metal contamination; or

``(VI) encourage reprocessing and cost-effective transportation of animal waste.

``(ii) Improved irrigation efficiency.--The term `improved irrigation efficiency' means the use of new or upgraded irrigation systems that conserve water, including the use of--

``(I) spray jets or nozzles which improve water distribution efficiency;

``(II) irrigation well meters;

``(III) surge valves and surge irrigation systems; and

``(IV) conversion of equipment from gravity or flood irrigation to sprinkler or drip irrigation, including center pivot systems.''.

Subtitle C--Preservation of Wildlife Habitat

SEC. 221. WILDLIFE HABITAT INCENTIVES PROGRAM.

(a) Extension and Funding Increase.--Section 387(c) of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3836a) is amended to read as follows:

``(c) Funding.--To carry out this section, there shall be made available $200,000,000 for fiscal years 2002 and 2003,

$350,000,000 for fiscal year 2004, $450,000,000 for fiscal year 2005, $500,000,000 for each of the fiscal years 2006 through fiscal year 2009, $400,000,000 for fiscal year 2010, and $200,000,000 for fiscal year 2011.''.

(b) Additional Incentives for Wildlife Conservation.--Section 387(b) of such Act (16 U.S.C. 3836(b)) is amended by inserting ``, or for other costs relating to wildlife conservation,'' before ``approved by the Secretary''.

``(d) Incentive Payments.--The Secretary may provide incentive payments to landowners in exchange for the implementation of land management practices designed to create or preserve wildlife habitat. The payments may be in an amount and at a rate determined by the Secretary to be necessary to encourage a landowner to engage in the practice.

``(e) Funding Priority.--The Secretary shall give priority to landowners whose lands contain important habitat for imperiled species or habitat identified by State conservation plans, where available.

``(f) Consultation.--To the extent practicable, the Secretary shall consult with local, State, Federal and private experts, as considered appropriate by the Secretary, to ensure that projects under this section maximize conservation benefits and are regionally equitable.

``(g) Acquisition of Easements.--Beginning with fiscal year 2003, not more than 10 percent of the funds available shall be used to acquire permanent easements, provided that land enrolled in an easement is not land taken out of agricultural production''.

SEC. 222. WETLANDS RESERVE PROGRAM.

(a) Enrollment Authority.--Section 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3837(b)(1)) is amended to read as follows:

``(1) Enrollment.--The Secretary shall enroll in the wetlands reserve program a total of not less than 250,000 acres in fiscal years 2002 and 2003, and not less than 250,000 acres in each of fiscal years 2004 through 2011.''.

(b) Regional Equity.--Section 1237 of such Act (16 U.S.C. 3837) is amended by adding at the end the following:

``(h) Not later than 60 days after the date of the enactment of this sentence, the Secretary shall devise a plan to promote wetlands conservation in all regions where opportunities exist for wetlands restoration.''.

SEC. 223. CONSERVATION RESERVE PROGRAM.

(a) Enrollment Authority.--Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended--

(1) in subsection (a)--

(A) by striking ``2002'' and inserting ``2011''; and

(B) by striking ``and water'' and inserting ``, water, and wildlife'';

(2) in subsection (d)--

(A) by striking ``36,400,000'' and inserting

``45,000,000''; and

(B) by striking ``2002'' and inserting ``2011''; and

(3) in subsection (h)(1), by striking ``and 2002'' and inserting ``through 2011''.

(b) Eligibility.--Section 1231(b) of such Act (16 U.S.C. 3831(b)) is amended--

(1) by striking paragraph (3) and inserting the following:

``(3) pasture, hay, and rangeland if the land will be restored as a wetland, or is within 300 feet of a riparian area and will be restored in native vegetation; and''; and

(2) in paragraph (4)--

(A) by striking subparagraph (A) and inserting the following:

``(A) if the Secretary determines that--

``(i) the lands contribute to the degradation of soil, water, or air quality, or would pose an on-site or off-site environmental threat to soil, water, or air quality if permitted to remain in agricultural production; and

``(ii) soil, water, and air quality objectives with respect to the land cannot be achieved under the environmental quality incentives program established under chapter 4;'';

(B) by striking ``or'' at the end of subparagraph (C);

(D) by adding at the end the following:

``(E) if the Secretary determines that enrollment of the lands would contribute to conservation of ground or surface water.

For purposes of the program under this subchapter, buffer strips on lands used for the production of fruits, vegetables, sod, orchards, or specialty crops shall be considered cropland.''.

(c) Environmentally Sensitive Lands and Buffer Strips.--Section 1231(d) of such Act (16 U.S.C. 3831(d)) is amended by adding at the end the following: ``Until December 31, 2007, of the acreage authorized for enrollment, not less than 7,000,000 acres shall be used to enroll environmentally sensitive lands through the continuous enrollment program and the conservation reserve enhancement program.''.

(d) Limited Permanent Easement Authority.--Section 1231(e) of such Act (16 U.S.C. 3831(e)) is amended by adding at the end the following:

``(3) Permanent easements.--

``(A) In general.--Notwithstanding paragraph (1), the Secretary may enroll up to 3,000,000 acres in the conservation reserve using permanent easements to protect critically important environmentally sensitive lands

(including 1,000,000 acres for isolated wetlands) and habitats such as native prairies, native shrublands, small wetlands, springs, seeps, fens, and other rare and declining habitats. The terms of the easement shall be consistent with section 1232(a).

``(B) Limitations on transferability.--The Secretary may transfer a permanent easement established under subparagraph

(A) to a State or local government or a qualified nonprofit conservation organization. The holder of such a permanent easement may not transfer the easement to an entity other than a State or local government or a qualified nonprofit conservation organization.''.

(e) Continuous Enrollment of Buffer Strips.--Section 1231 of such Act (16 U.S.C. 3831) is amended by adding at the end the following:

``(i) Continuous Enrollment of Buffer Strips.--The Secretary shall allow continuous enrollment of buffers whose width and vegetation is designed to provide significant wildlife or water quality benefits, as determined by the Secretary.

``(j) Irrigated Lands.--Irrigated lands shall be enrolled at irrigated land rates unless the Secretary determines that other compensation is appropriate.

``(k) Exception to Payment Limitation.--Payments made in connection with the enrollment of lands pursuant to the continuous enrollment or the conservation reserve enhancement program shall not be subject to any payment limitations under section 1239c(f)(1).

``(l) Limited Exceptions to Prohibitions on Economic Uses.--Notwithstanding the prohibitions on economic use on lands enrolled in the Conservation Reserve Program under section 1232(a), the Secretary may permit on such lands the collection of native seeds and the use of wind turbines, so long as such activities preserve the conservation values of the land and take into account wildlife and wildlife habitat.''.

SEC. 224. CONSERVATION OF PRIVATE GRAZING LANDS.

Section 386 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 2005b) is amended by striking subsection (f) and inserting the following:

``(f) Incentive Payments.--The Secretary may enter into 5-year, 10-year and 20-year contracts with landowners to provide financial assistance for landowner efforts to improve the ecological health of grazing lands, including practices that reduce erosion, employ prescribed burns, restore riparian area, control or eliminate exotic species, reestablish native grasses, or otherwise enhance wildlife habitat.

``(g) Authorization of Funding.--The Secretary shall make available $20,000,000 for each of the fiscal years 2002 through 2011 from the Commodity Credit Corporation to carry out this section.''.

SEC. 225. GRASSLAND RESERVE AND ENHANCEMENT PROGRAM.

Chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830-3837f) is amended by adding at the end the following:

``Subchapter D--Grassland Reserve and Enhancement Program

``SEC. 1238. GRASSLAND RESERVE AND ENHANCEMENT PROGRAM.

``(a) Establishment.--The Secretary shall establish a program to use contracts and easements to protect 3,000,000 acres of environmentally critical grasslands, shrubs, and blufflands. Beginning in fiscal year 2002, the Secretary shall conduct outreach to inform the public of the program.

``(b) Enrollment Conditions.--

``(1) Maximum enrollment.--The total number of acres enrolled in the program shall not exceed 3,000,000 acres. The Secretary shall enroll lands using permanent easements to meet demand, but in no case shall more than 50 percent of the available acreage be enrolled in permanent easements, and the balance shall be enrolled in contracts through which the Secretary shall provide assistance and incentive payments.

``(2) Terms of contracts or easements.--The Secretary shall enroll in the program for a willing owner not less than 100 contiguous acres of land west of the 100th meridian or not less than 50 contiguous acres of land east of the 90th meridian through 10-year or 20-year contracts or permanent easements.

``(c) Eligible Land.--Land shall be eligible to be enrolled in the program if the Secretary determines that--

``(1) the land is natural grass or shrubland;

``(2) the land--

``(A) is located in an area that has been historically dominated by natural grass or shrubland; and

``(B) has potential to serve as habitat for animal or plant populations of significant ecological value if the land is restored to natural grass or shrubland; or

``(3) the land is adjacent to land described in paragraph

(1) or (2), and the Secretary determines it is necessary to maintain or restore native grassland or shrubland under this section.

``(d) Limitations on Authorization of Appropriations.--To carry out this section, there shall be available for each of fiscal years 2002 through 2011 such sums as may be necessary from the funds of the Commodity Credit Corporation.

``SEC. 1238A. CONTRACTS AND AGREEMENTS.

``(a) Requirements of Landowner.--To be eligible to enroll land in the program, the owner of the land shall--

``(1) agree to comply with the terms of the contract and related restoration agreements; and

``(2) agree to the suspension of any existing cropland base and allotment history for the land under any program administered by the Secretary.

``(b) Terms of Contract or Easement.--A contract or easement under subsection (a) shall--

``(1) permit--

``(A) common grazing practices on the land in a manner that is consistent with maintaining the viability of natural grass and shrub species indigenous to that locality;

``(B) haying, mowing, or haying for seed production, except that such uses shall not be permitted until after the end of the nesting and brood-rearing season for birds in the local area which are in significant decline or are conserved pursuant to State or Federal law, as determined by the Natural Resources Conservation Service State conservationist;

``(C) construction of fire breaks and fences, including placement of the posts necessary for fences; and

``(D) practices that reduce erosion, restore native species, control and eradicate exotic species, enhance habitat for native wildlife, and improve the health of riparian areas;

``(2) prohibit--

``(A) forestry and the production of any agricultural commodity (other than hay);

``(B) unless allowed under subsection (d), the conduct of any other activity that would disturb the surface of the land covered by the contract or easement; and

``(C) the development of homes, businesses or other structures on land subject to the contract or easement; and

``(3) include such additional provisions as the Secretary determines are appropriate to carry out or facilitate the administration of this subchapter.

``(c) Ranking Applications.--

``(1) Establishment of criteria.--The Secretary shall establish criteria to evaluate and rank applications for contracts under this subchapter.

``(2) Emphasis.--In establishing the criteria, the Secretary shall emphasize support for native grass and shrubland, grazing operations, and plant and animal biodiversity.

``(d) Restoration Agreements.--The Secretary shall prescribe the terms by which grassland that is subject to a contract under the program shall be restored. The agreement shall include duties of the land owner and the Secretary, including the Federal share of restoration payments and technical assistance.

``(e) Violations.--On the violation of the terms or conditions of a contract or restoration agreement entered into under this section--

``(1) the contract shall remain in force; and

``(2) the Secretary may require the owner to refund all or part of any payments received by the owner under this subchapter, with interest on the payments as determined appropriate by the Secretary.

``SEC. 1238B. DUTIES OF SECRETARY.

``(a) In General.--In return for the granting of a contract by an owner under this subchapter, the Secretary shall make contract payments and payments of the Federal share of restoration and provide technical assistance to the owner in accordance with this section. The Secretary shall base the amount paid for an easement on the fair market value of the easement.

``(b) Federal Share of Restoration.--The Secretary shall make payments to the owner of not more than--

``(1) in the case of virgin (never cultivated) grassland, 90 percent of the costs of carrying out measures and practices necessary to restore grassland functions and values; or

``(2) in the case of restored grassland, 75 percent of such costs.

``(c) Technical Assistance.--A landowner who is receiving a benefit under this subchapter shall be eligible to receive technical assistance in accordance with section 1243(d) to assist the owner or operator in carrying out a contract entered into under this subchapter.

``(d) Payments to Others.--If an owner who is entitled to a payment under this subchapter 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.''.

Subtitle D--Organic Farming

SEC. 231. PROGRAM TO ASSIST TRANSITION TO ORGANIC FARMING.

(a) Assistance Authorized.--The Secretary of Agriculture

(in this section referred to as the ``Secretary'') shall expand the National Organic Program to include a voluntary program to assist agricultural producers in making the transition from conventional to organic farming and to assist existing organic farmers. Under the program, the Secretary may make payments to cover all or a portion of--

(1) production and marketing losses;

(2) conservation practices related to organic food production;

(3) certification costs;

(4) technical assistance by qualified third parties;

(5) educational materials; or

(6) farm-to-consumer market development.

(b) Limitation on Expenditures.--Payments to individual farm and ranch operators under this section shall not exceed

$10,000 per year, and such payments shall not be made to individuals operating a conventional farm or ranch in more than 3 fiscal years.

(c) Organic Certification Reimbursement Program.--The Secretary shall reimburse producers for the cost of organic certification. To expedite certification, farmers seeking certification shall be eligible for a direct reimbursement of up to $500 by the Secretary of certification costs, so long as producers present an organic certificate and receipt.

(d) Funding.--Of the funds of the Commodity Credit Corporation, there shall be available to the Secretary to carry out this section $20,000,000 for fiscal years 2002 and 2003, $40,000,000 for fiscal year 2004, $40,000,000 for fiscal year 2005, $50,000,000 for fiscal year 2006,

$50,000,000 for fiscal year 2007, $50,000,000 for fiscal year 2008, and $0 for fiscal years 2009 through 2011.

Subtitle E--Forestry

SEC. 241. URBAN AND COMMUNITY FORESTRY.

Section 9(i) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2105(i)) is amended to read as follows:

``(i) Funding.--The Secretary shall use $50,000,000 of the funds of the Commodity Credit Corporation to carry out this section for each of the fiscal years 2002 through 2011. In addition, there are authorized to be appropriated to the Secretary not more than $50,000,000 to carry out this section for each of the fiscal years 2002 through 2011. As determined by the Secretary, socially disadvantaged foresters shall be eligible for funding under this section.''.

SEC. 242. WATERSHED FORESTRY INITIATIVE.

(a) Establishment.--The Secretary shall establish a program for the purpose of providing financial assistance to enhance the quality of municipal water supplies and to encourage the long-term sustainability of private forestland.

(b) Easements.--The Secretary shall annually use

$75,000,000 from the Commodity Credit Corporation to be matched equally by any non-Federal source for each of the fiscal years 2002 through 2011 to acquire permanent easements that promote watershed protection. The Secretary shall establish a system to fairly compensate landowners for the value of an easement entered into under this section.

$25,000,000 from the Commodity Credit Corporation for each of the fiscal years 2002 through 2011 to share equally with any non-Federal source the cost of land management practices on nonindustrial forestland that protect municipal drinking water supplies and other conservation purposes. The Secretary shall consider, among other factors, the extent to which projects are identified in a regional or watershed conservation plan. Practices that are eligible for funding under this section include the following:

(1) Natural forest regeneration.

(2) Prescribed burns.

(3) Native species restoration.

(4) Stream and watershed restoration.

(5) Road retirement.

(6) Riparian restoration.

(7) Other practices that improve water quality and wildlife habitat, as determined by the Secretary.

(d) Regional and Watershed Planning.--The Secretary shall establish a program to make grants not exceeding $10,000 to develop and implement regional and watershed-based conservation plans to comply with existing laws and meeting water quality standards. The Secretary shall consider, among other factors, the extent to which applicants develop interjurisdictional conservation plans, protect nationally significant resources, engage the public, and demonstrate local support. The Secretary shall use not more than

$10,000,000 from the Commodity Credit Corporation for each of the fiscal years 2002 through 2011 to carry out this subsection.

Subtitle F--Technical Assistance

SEC. 251. CONSERVATION TECHNICAL ASSISTANCE.

(a) Section 6 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590f) is amended--

(1) by striking the 1st undesignated paragraph and inserting the following:

``(a) The Secretary shall make available $200,000,000 each fiscal year from the Commodity Credit Corporation, and such additional sums as may be appropriated by the Congress, to carry out this Act.''; and

(2) by desginating the 2nd undesignated paragraph as subsection (b).

(b) Section 7 of such Act (16 U.S.C. 590g) is amended by striking ``and (7)'' and inserting ``(7) any of the purposes of agricultural conservation programs authorized by Congress, and (8)''.

SEC. 252. REIMBURSEMENT FOR PROGRAM ADMINISTRATION.

Subtitle E of title XII of the Food Security Act of 1985

(16 U.S.C. 3841-3843) is amended--

(1) by inserting ``(1)'' before the first unnumbered paragraph;

(2) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (B);

(3) by moving the newly designated subparagraphs (A) through (B) three ems to the right;

(4) by adding at the end the following:

``(2) For each of fiscal years 1996 through 2011, the Secretary shall use the funds of the Commodity Credit Corporation for the provision of technical assistance to allow for full reimbursement of actual costs for delivering all conservation programs funded through the Commodity Credit Corporation for which technical assistance is required.''.

SEC. 253. CONSERVATION TECHNICAL ASSISTANCE BY THIRD PARTIES.

Section 1243(d) of the Food Security Act of 1985 (16 U.S.C. 3843(d)) is amended--

(1) by striking ``In the preparation'' and inserting the following:

``(1) In general.--In the preparation''; and

(2) by adding at the end the following:

``(2) Establishment of training centers.--To facilitate the training and certification of Federal and non-Federal employees and qualified third parties, the Secretary may establish training centers in the following locations:

``(A) Fresno, California.

``(B) Platteville, Wisconsin.

``(C) Lincoln, Nebraska.

``(D) Ithaca, New York.

``(E) Pullman, Washington.

``(F) Orono, Maine.

``(G) Gainesville, Florida.

``(H) College Park, Maryland.

``(3) Certification of third-party providers.--

``(A) In general.--Not later than 6 months after the date of the enactment of this Act, the Secretary of Agriculture shall, by regulation, establish a system for approving persons to provide technical assistance pursuant to this title. In the system, the Secretary shall give priority to a person who has a memorandum of understanding regarding the provision of technical assistance in place with the Secretary.

``(B) Expertise required.--In prescribing such regulations, the Secretary shall ensure that persons with expertise in the technical aspects of conservation planning, watershed planning, environmental engineering, including commercial entities, qualified nonprofit entities, State or local governments or agencies, and other Federal agencies, are eligible to become approved providers of such technical assistance.

``(C) Qualified nonprofit organizations.--Qualified nonprofit organizations shall include organizations whose missions primarily promote the stewardship of working farmland and ranchland.

``(4) Quality assurance program.--The Secretary shall establish a program to assess the quality of the technical assistance provided by third parties.''.

SEC. 254. CONSERVATION PRACTICE STANDARDS.

The Secretary of Agriculture shall--

(1) revise standards and, when necessary, establish standards for eligible conservation practices to include measurable goals for enhancing natural resources, including innovative practices;

(2) within 6 months after the date of the enactment of this section, revise the National Handbook of Conservation Practices and field office technical guides; and

(3) not less frequently than once every 5 years, update the Handbook and technical guides to reflect the best available science.

Subtitle G--Miscellaneous Conservation Provisions

SEC. 261. CONSERVATION PROGRAM PERFORMANCE REVIEW AND

EVALUATION.

(a) In General.--The Secretary shall establish a grant program to evaluate the benefits of the conservation programs under title XII of the Food Security Act of 1985 and under sections 242 and 262 of this Act.

(b) Grants.--The Secretary shall make grants to land grant colleges and other research institutions whose applications are highly ranked under subsection (c) to evaluate the economic and environmental benefits of conservation programs, and shall use such research to identify and rank measures needs to improve water quality, fish and wildlife habitat, and other environmental goals of conservation programs.

(c) Scientific Panels.--The Secretary shall establish a panel of independent scientific experts to review and rank the grant applications submitted under subsection (a).

(d) Funding.--The Secretary shall use $10,000,000 from the Commodity Credit Corporation for each of fiscal years 2002 through 2011 to carry out this section.

SEC. 262. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND

SEDIMENT CONTROL.

(a) In General.--The Secretary of Agriculture, in consultation with the Great Lakes Commission created by Article IV of the Great Lakes Basin Compact (82 Stat. 415) and in cooperation other appropriate Federal agencies may carry out the Great Lakes Basin Program for Soil Erosion and Sediment Control.

(b) Assistance.--In carrying out the Program, the Secretary shall--

(1) provide project demonstration grants, provide technical assistance, and carry out information and education programs to improve water quality in the Great Lakes Basin by reducing soil erosion and improving sediment control; and

(2) provide a priority for projects and activities that directly reduce soil erosion or improve sediment control.

(1) In general.--There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2003 through 2011.

(2) Administrative costs.--

(A) Commission.--The Great Lakes Commission may use not more than 10 percent of the funds made available for a fiscal year under paragraph (1) to pay administrative costs incurred by the Commission in carrying out this section.

(B) Secretary.--None of the funds made available under paragraph (1) may be used by the Secretary to pay administrative costs incurred by the Secretary in carrying out this section.

Subtitle H--Conservation Corridor Program

SEC. 271. CONSERVATION CORRIDOR PROGRAM.

(a) Purpose.--The purpose of this subtitle is to provide for the establishment of a program that recognizes the leveraged benefit of an ecosystem-based application of the Department of Agriculture conservation programs, addresses the increasing and extraordinary threats to agriculture in many areas of the United States, and recognizes the importance of local and regional involvement in the protection of economically and ecologically important farmlands.

(b) Establishment.--The Secretary of Agriculture (in this subtitle referred to as the ``Secretary'') shall establish a Conservation Corridor Program through which States, local governments, tribes, and combinations of States may submit, and the Secretary may approve, plans to integrate agriculture and forestry conservation programs of the United States Department of Agriculture with State, local, tribal, and private efforts to address farm preservation, water quality, wildlife, and other conservation needs in critical areas, watersheds, and corridors in a manner that enhances the conservation benefits of the individual programs, tailors programs to State and local needs, and promotes and supports ecosystem and watershed-based conservation.

(c) Memorandum of Agreement.--On approval of a proposed plan, the Secretary may enter into a memorandum of agreement with a State, a combination of States, local governments, or tribes, that--

(1) guarantees specific program resources for implementation of the plan;

(2) establishes different or automatic enrollment criteria than otherwise established by regulation or policy, for specific levels of enrollments of specific conservation programs within the region, if doing so will achieve greater conservation benefits;

(3) establishes different compensation rates to the extent the parties to the agreement consider justified;

(4) establishes different conservation practice criteria if doing so will achieve greater conservation benefits;

(5) provides more streamlined and integrated paperwork requirements; and

(6) otherwise alters any other requirement established by United States Department of Agriculture policy and regulation to the extent not inconsistent with the statutory requirements and purposes of an individual conservation program.

SEC. 272. CONSERVATION ENHANCEMENT PLAN.

(a) Preparation.--To be eligible to participate in the program under this subtitle, a State, combination of States, political subdivision or agency of a State, tribe, or local government shall submit to the Secretary a plan that proposes specific criteria and commitment of resources in the geographic region designated, and describes how the linkage of Federal, State, and local resources will--

(1) improve the economic viability of agriculture by protecting contiguous tracts of land;

(2) improve the ecological integrity of the ecosystems or watersheds within the region by linking land with high ecological and natural resource value; and

(3) in the case of a multi-State plan, provide a draft memorandum of agreement among entities in each State.

(b) Submission and Review.--Within 90 days after receipt of the conservation plan, the Secretary shall review the plan and approve it for implementation and funding under this subtitle if the Secretary determines that the plan and memorandum of agreement meet the criteria specified in subsection (c).

(c) Criteria for Participation.--The Secretary may approve a plan only if, as determined by the Secretary, the plan provides for each of the following:

(1) Actions taken under the conservation plan are voluntary and require the consent of willing landowners.

(2) Criteria specified in the plan and memorandum of agreement assure that enrollments in each conservation program incorporated through the plan are of exceptionally high conservation value.

(3) The program provides benefits greater than the benefits that would likely be achieved through individual application of the federal conservation programs because of such factors as--

(A) ecosystem- or watershed-based enrollment criteria;

(B) lengthier or permanent conservation commitments;

(C) integrated treatment of special natural resource problems, including preservation and enhancement of natural resource corridors; and

(D) improved economic viability for agriculture.

(4) Staffing and marketing, considering both Federal and non-Federal resources, are sufficient to assure program success.

(d) Approval and Implementation.--Within 90 days after approval of a conservation plan, the Secretary shall begin to provide funds for the implementation of the plan.

(e) Priority.--In carrying out this section, the Secretary shall give priority to multi-State or multi-tribal plans.

SEC. 273. FUNDING REQUIREMENTS.

(a) Cost-Sharing.--As a further condition on the approval of a conservation plan submitted by a non-Federal interest under section 272, the Secretary shall require the non-Federal interest to contribute at least 20 percent of the total cost of the Conservation Corridor Program.

(b) Exception.--The Secretary may reduce the cost-share requirement in the case of a specific activity under the Conservation Corridor Program on good cause and demonstration that the project or activity is likely to achieve extraordinary natural resource benefits.

(c) Coordination.--The Secretary shall require that non-Federal interests contributing financial resources for the Conservation Corridor Program shall implement streamlined paperwork requirements and other procedures to allow for integration with the Federal programs for participants in the program.

(d) Reservation of Funds.--The Secretary shall direct funds on a priority basis to the Conservation Corridor Program and to projects in areas identified by the plan.

(e) Administration.--A State may submit multiple plans, but the Secretary shall assure opportunity for submission by each State. Acreage committed as part of approved Conservation Reserve Enhancement Programs shall be considered acreage of the Conservation Reserve Program committed to a Conservation Enhancement Program.

Subtitle I--Funding Source and Allocations

SEC. 281. FUNDING FOR CONSERVATION FUNDING.

(a) Reduction in Fixed Decoupled Payments and Counter-Cyclical Payments.--Notwithstanding sections 104 and 105, the Secretary of Agriculture (in this subtitle referred to as the

``Secretary'') shall reduce by $1,900,000,000 the total amount otherwise required to be paid under such sections in each of fiscal years 2002 through 2011, in accordance with this section.

(b) Maximum Total Payments by Type and Fiscal Year.--In making the reductions required by subsection (a), the Secretary shall ensure that--

(1) the total amount paid under section 104 does not exceed--

(A) $3,425,000,000 in fiscal year 2002; or

(B) $4,325,000,000 in any of fiscal years 2003 through 2011; and

(2) the total amount paid under section 105 does not exceed--

(A) $3,332,000,000 in fiscal year 2003;

(B) $4,494,000,000 in fiscal year 2004;

(D) $3,974,000,000 in fiscal year 2006;

(E) $3,701,000,000 in fiscal year 2007;

(F) $3,222,000,000 in fiscal year 2008;

(G) $2,596,000,000 in fiscal year 2009;

(H) $2,057,000,000 in fiscal year 2010; or

(I) $1,675,000,000 in fiscal year 2011.

(c) Limitations to Protect Smaller Farmers, Preserve Trade Agreements, and Ensure Program and Regional Balance.--In making the reductions required by subsection (a), the Secretary shall--

(1) accomplish all of the reductions required with respect to a fiscal year by making pro rata reductions in the amounts otherwise payable under sections 104 and 105 to the 10 percent (or, if necessary, such greater percentage as the Secretary may determine) of recipients who would otherwise receive the greatest total payments under such sections in the fiscal year; and

(2) to the maximum extent practicable, ensure that--

(A) the resulting payments under such sections pose the least amount of risk to the United States of violating trade agreements to reduce subsidies; and

(B) the reductions are made in a manner that achieves balance among programs and regions.

SEC. 282. ALLOCATION OF CONSERVATION FUNDS BY STATE.

(a) State Allocation.--To the maximum extent practicable in each of fiscal years 2002 through 2011, the Secretary, subject to the rules of the conservation programs administered by the Secretary, shall ensure that each State receives at a minimum the State's share of the $1,900,000,000 based on the State's share of the total agricultural market value of production, with each State receiving not less than 0.52 percent and not more than 7 percent of such amount annually.

(b) Transition and Unobligated Balances.--If the offices of the United States Department of Agriculture in each respective State cannot expend all funds allocated in this title within 2 consecutive fiscal years for the programs identified in this title, the funds shall be remitted to the Secretary for reallocation as the Secretary deems appropriate among States to address unmet conservation needs through the programs in this title, except that in no event shall these unobligated balances be used to fund technical assistance.

(c) Regional Equity.--Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is amended by adding at the end the following:

``(d) Regional Equity.--In carrying out the ECARP, the Secretary shall recognize the importance of regional equity, and the importance of accomplishing many conservation objectives that can sometimes only be achieved on land of high value.''.

Subtitle J--Rural Development

SEC. 291. EXPANSION OF STATE MARKETING PROGRAMS.

(a) Federal-State Market Incentive Payments.--Section 204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1623) is amended by striking ``such sums as he may deem appropriate'' and inserting ``$10,000,000 from the Commodity Credit Corporation for each of the fiscal years 2002 through 2011''.

(b) Market Development Grants.--Section 203(e)(1) of such Act (7 U.S.C. 1622(e)(1)) is amended by adding at the end the following: ``The Secretary shall transfer to State departments of agriculture and other State marketing offices at least 10 percent of the funds appropriated for a fiscal year for this subsection to facilitate the development of local and regional markets for agricultural products, including direct farm-to-consumer markets.''.

Amend the table of contents accordingly.

H.R. 2646

Offered By: Mrs. Bono

[Page and line numbers refer to the amendment in the nature of a substitute]

Amendment No. 11: At the end of title IX (page 354, after line 16), insert the following new section:

SEC. __. COUNTRY OF ORIGIN LABELING OF PERISHABLE

AGRICULTURAL COMMODITIES.

(a) Establishment of Labeling Requirement.--The Perishable Agricultural Commodities Act, 1930, is amended by inserting after section 17 (7 U.S.C. 499q) the following new section:

``SEC. 18. COUNTRY OF ORIGIN LABELING OF PERISHABLE

AGRICULTURAL COMMODITIES.

``(a) Notice of Country of Origin Required.--Except as provided in subsection (b), a retailer of a perishable agricultural commodity shall inform consumers, at the final point of sale of the perishable agricultural commodity to consumers, of the country of origin of the perishable agricultural commodity. This requirement shall apply to imported and domestically produced perishable agricultural commodities.

``(b) Exemption for Food Service Establishments.--

``(1) Exemption.--Subsection (a) shall not apply to a perishable agricultural commodity to the extent that the perishable agricultural commodity is--

``(A) prepared or served in a food service establishment; and

``(B) offered for sale or sold at the food service establishment in normal retail quantities or served to consumers at the food service establishment.

``(2) Definition.--In this subsection, the term `food service establishment' means a restaurant, cafeteria, lunch room, food stand, saloon, tavern, bar, lounge, or other similar facility, which is operated as an enterprise engaged in the business of selling foods to the public.

``(c) Method of Notification.--

``(1) In general.--The information required by subsection

(a) may be provided to consumers by means of a label, stamp, mark, placard, or other clear and visible sign on the perishable agricultural commodity or on the package, display, holding unit, or bin containing the commodity at the final point of sale to consumers.

``(2) Labeled commodities.--If a perishable agricultural commodity is already individually labeled regarding country of origin by a packer, importer, or another person, the retailer shall not be required to provide any additional information to comply with this section.

``(d) Violations.--If a retailer fails to indicate the country of origin of a perishable agricultural commodity as required by subsection (a), the Secretary of Agriculture may assess a civil penalty on the retailer in an amount not to exceed--

``(1) $1,000 for the first day on which the violation occurs; and

``(2) $250 for each day on which the same violation continues.

``(e) Deposit of Funds.--Amounts collected under subsection

(d) shall be deposited in the Treasury of the United States as miscellaneous receipts.''.

(b) Application of Amendment.--Section 18 of the Perishable Agricultural Commodities Act, 1930, as added by subsection

(a), shall apply with respect to a perishable agricultural commodity offered for retail sale after the end of the six-month period beginning on the date of the enactment of this Act.

H.R. 2646

Offered By: Mr. Boswell

Amendment No. 12: At the end of title IX, insert the following new section:

SEC. __. RENEWABLE ENERGY RESERVE.

(a) Purposes.--It is the purpose of this section to create a reserve of agricultural commodities to--

(1) provide feedstocks to support and further the production of the renewable energy; and

(2) support the renewable energy industry in times when production is at risk of decline due to reduced feedstock supplies or significant commodity price increases.

(b) Establishment.--During fiscal years 2002 through 2011, the Secretary shall establish and administer a government-owned and farmer-stored renewable energy reserve program under which producers of agricultural commodities will be able to--

(1) sell agricultural commodities authorized by the Secretary into the reserve; and

(2) store such agricultural commodities.

(c) Name.--The agricultural commodity reserve established under this section shall be known as the ``Renewable Energy Reserve''.

(d) Purchases.--The Secretary shall purchase agricultural commodities at commercial rates in order to establish, maintain, or enhance the reserve when--

(1) such commodities are in abundant supply; and

(2) there is need for adequate carryover stocks to ensure a reliable supply of the commodities to meet the purposes of the reserve or it is otherwise necessary to fulfill the needs and purposes of the renewable energy program administered or assisted by the Secretary.

(e) Limitation.--Purchases under this section shall be limited to--

(1) the type and quantities of agricultural commodities necessary to provide approximately four-month's estimated utilization for renewable energy purposes;

(2) an additional amount of commodities to provide incentives for research and development of new renewable fuels and bio-energy initiatives; and

(3) such maximum quantities of agricultural commodities determined by the Secretary as will enable the purposes of the renewable energy program to be achieved.

(f) Release of Stocks.--Stocks shall be released at cost of acquisition, and in amounts determined appropriate by the Secretary, when market prices of the agricultural commodity exceed 100 percent of the full economic cost of production of those commodities. Cost of production for the commodity shall be determined by the Economic Research Service using the best available information, and based on a three year moving average.

(g) Storage payments.--The Secretary shall provide storage payments to producers of agricultural commodities to maintain the reserve established under this section. Storage payments shall--

(1) be in such amounts and under such conditions as the Secretary determines appropriate to encourage producers to participate in the program;

(2) reflect local, commercial storage rates subject to appropriate conditions concerning quality management and other factors; and

(3) not be less than comparable local commercial rates, except as may be provided by paragraph (2).

(h) Commodity credit corporation.--

(1) In General.--The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to fulfill the purposes of this section. To the maximum extent practicable consistent with the purposes, and effective and efficient administration of this section, the Secretary shall utilize the usual and customary channels, facilities and arrangement of trade and commerce.

(2) Funding Offset.--The Secretary shall reduce expenditures under title I as necessary to offset all expenditures to be made by the Secretary under this section.

H.R. 2646

Offered By: Mr. Boswell

Amendment No. 13: At the end of title IX, insert the following new section: