HR 1766 IHCommentsClose CommentsPermalink

To amend conservation and biofuels programs of the Department of Agriculture to promote the compatible goals of economically viable agricultural production and reducing nutrient loads in the Chesapeake Bay and its tributaries by assisting agricultural producers to make beneficial, cost-effective changes to cropping systems, grazing management, and nutrient management associated with livestock and poultry production, crop production, bioenergy production, and other agricultural practices on agricultural land within the Chesapeake Bay watershed, and for other purposes.CommentsClose CommentsPermalink

March 29, 2007

Mr. VAN HOLLEN (for himself, Mr. SCOTT of Virginia, Mr. GILCHREST, Mr. TOM DAVIS of Virginia, Mr. HOYER, Mr. WYNN, Mrs. JO ANN DAVIS of Virginia, Mr. RUPPERSBERGER, Ms. NORTON, Mr. SARBANES, Mr. WOLF, Mr. MORAN of Virginia, Mrs. DRAKE, Mr. CUMMINGS, Mr. HINCHEY, Mr. PLATTS, Mr. CARNEY, and Mr. HALL of New York) introduced the following bill; which was referred to the Committee on AgricultureCommentsClose CommentsPermalink

To amend conservation and biofuels programs of the Department of Agriculture to promote the compatible goals of economically viable agricultural production and reducing nutrient loads in the Chesapeake Bay and its tributaries by assisting agricultural producers to make beneficial, cost-effective changes to cropping systems, grazing management, and nutrient management associated with livestock and poultry production, crop production, bioenergy production, and other agricultural practices on agricultural land within the Chesapeake Bay watershed, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

(a) Short Title- This Act may be cited as the `Chesapeake's Healthy and Environmentally Sound Stewardship of Energy and Agriculture Act of 2007' or the `CHESSEA Act of 2007' .CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title.CommentsClose CommentsPermalink





Sec. 2. Findings.CommentsClose CommentsPermalink





Sec. 3. Environmental quality incentives program.CommentsClose CommentsPermalink





Sec. 4. Regional water quality enhancement program.CommentsClose CommentsPermalink





Sec. 5. Conservation innovation grants.CommentsClose CommentsPermalink





Sec. 6. Conservation reserve program.CommentsClose CommentsPermalink





Sec. 7. Conservation security program.CommentsClose CommentsPermalink





Sec. 8. Comprehensive planning technical assistance pilot program.CommentsClose CommentsPermalink





Sec. 9. Wetlands reserve program.CommentsClose CommentsPermalink





Sec. 10. Agricultural management assistance.CommentsClose CommentsPermalink





Sec. 11. Biorefinery and biofuel project grants.CommentsClose CommentsPermalink





Sec. 12. Renewable energy systems and energy efficiency improvements program.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress finds the following:CommentsClose CommentsPermalink





(1) The Chesapeake Bay is the largest estuary in North America, the world's most productive estuary, and a resource of worldwide significance.CommentsClose CommentsPermalink





(2) The Chesapeake Bay watershed encompasses portions of six States, New York, Pennsylvania, Delaware, Maryland, Virginia, and West Virginia, and the District of Columbia, and contains 150 major tributaries.CommentsClose CommentsPermalink





(3) Agricultural operations, small family farms in particular, is a defining feature of the economy, heritage, culture, landscape, and environment of the States of the Chesapeake Bay watershed, and these agricultural operations account for nearly one quarter of the land in the Chesapeake Bay watershed, stretching across 10 million acres and involving tens of thousands of individual farmers.CommentsClose CommentsPermalink





(4) Unfortunately, these same agricultural operations are the source of more than 40 of the nitrogen and phosphorus loads going into the Chesapeake Bay;CommentsClose CommentsPermalink





(5) In the landmark regional agreement known as Chesapeake 2000, the Federal Government, the six States of the Chesapeake Bay watershed, and the District of Columbia, agreed to significantly reduce annual nitrogen, phosphorus, and sediment loadings by 2010 to restore the Chesapeake Bay and its tidal tributaries sufficiently to remove them from the list of impaired waters under the Clean Water Act.CommentsClose CommentsPermalink





(6) Current efforts to implement Chesapeake 2000 and achieve the nitrogen and phosphorus reduction goals specified in the agreement are significantly underfunded.CommentsClose CommentsPermalink





(7) The implementation of improved conservation practices in agricultural operations in the Chesapeake Bay watershed and increased agricultural bioenergy production can serve the dual purposes of enhancing the environmental health of the Chesapeake Bay and the economic vitality of farmers in the watershed.CommentsClose CommentsPermalink

SEC. 3. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

(a) Extension-CommentsClose CommentsPermalink





(1) FUNDING EXTENSION AND INCREASE- Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph (6) and inserting the following new paragraph:CommentsClose CommentsPermalink





`(6) The environmental quality incentives program under chapter 4, using, to the maximum extent practicable, $2,000,000,000 in each of fiscal years 2008 through 2013.'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS- Section 1240B of such Act (16 U.S.C. 3839aa-2) is amended--CommentsClose CommentsPermalink





(A) in subsection (a)(1), by striking `2010' and inserting `2013'; andCommentsClose CommentsPermalink





(B) in subsection (g), by striking `2007' and inserting `2013'.CommentsClose CommentsPermalink





(b) Priority Given to State Allocations- Section 1240F of such Act (16 U.S.C. 3839aa-6) is amended--CommentsClose CommentsPermalink





(1) by striking `To' and inserting `(a) Assistance, Information, and Training- To'; andCommentsClose CommentsPermalink





(2) by adding at the end the following new subsections:CommentsClose CommentsPermalink





`(b) Interstate Watersheds- When making program allocations to States, the Secretary shall give priority to States located within watersheds that--CommentsClose CommentsPermalink





`(1) encompass more than one State;CommentsClose CommentsPermalink





`(2) are recognized under the Clean Water Act as having nutrient-related water quality impairments or sediment-related water quality impairments (or both); andCommentsClose CommentsPermalink





`(3) are subject to State-approved tributary strategies or watershed management plans designed to address such impairments.CommentsClose CommentsPermalink





`(c) Prohibited Allocation Factor- The Secretary shall not use the total number of acres as an allocation factor.'.CommentsClose CommentsPermalink





(c) Cost Share Payment Exception- Section 1240B(d)(2) of such Act (16 U.S.C. 3839aa-2(d)(2)) is amended by striking subparagraph (A) and inserting the following new subparagraph:CommentsClose CommentsPermalink





`(A) LIMITED RESOURCE AND BEGINNING FARMERS- The Secretary may increase the amount provided to a producer under paragraph (1) to not more than 90 percent if the producer is a limited resource or beginning farmer or rancher, as determined by the Secretary, but in no event shall the cost-share payment under the program be less than 15 percent more than the payment that the Secretary may determine under paragraph (1).'CommentsClose CommentsPermalink





(d) Forest Conservation and Performance Incentives for States- Chapter 4 of subtitle D of title XII of such Act is amended by adding at the end the following new sections:CommentsClose CommentsPermalink

`SEC. 1240J. PROMOTION OF FOREST STEWARDSHIP PRACTICES.

`(a) Cost-Share Payments and Incentive Payments- In carrying out the program under this chapter, the Secretary shall promote forest stewardship by providing cost-share payments and incentive payments to non-industrial private forest owners to carry out eligible conservation activities, to--CommentsClose CommentsPermalink





`(1) improve water quality;CommentsClose CommentsPermalink





`(2) improve habitat for at-risk species;CommentsClose CommentsPermalink





`(3) restore ecologically important forest types; orCommentsClose CommentsPermalink





`(4) control invasive species.CommentsClose CommentsPermalink





`(b) Priority- The Secretary shall give priority to projects that involve multiple landowners implementing eligible conservation activities in a coordinated way to address the purposes described in subsection (a).CommentsClose CommentsPermalink





`(c) Funding-CommentsClose CommentsPermalink





`(1) AMOUNTS- The Secretary shall use funds of the Commodity Credit Corporation to carry out this section in the following amounts:CommentsClose CommentsPermalink





`(A) $25,000,000 for fiscal year 2008.CommentsClose CommentsPermalink





`(B) $45,000,000 for fiscal year 2009.CommentsClose CommentsPermalink





`(C) $60,000,000 for fiscal year 2010.CommentsClose CommentsPermalink





`(D) $75,000,000 for each of fiscal years 2011 and 2012.CommentsClose CommentsPermalink





`(E) $100,000,000 for fiscal year 2013.CommentsClose CommentsPermalink

`SEC. 1240K. PERFORMANCE INCENTIVES FOR STATES.

`(a) High Level of Performance Bonus- For each of fiscal years 2008 through 2013, 10 percent of the funds made available under this chapter shall be reserved by the Secretary for bonus allocations to States that demonstrate a high level of performance in implementing the program.CommentsClose CommentsPermalink





`(b) Special Considerations- In evaluating State performance under subsection (a), the Secretary shall reward States that--CommentsClose CommentsPermalink





`(1) consistently meet the requirements of section 1240C in evaluating offers and payments;CommentsClose CommentsPermalink





`(2) dedicate a portion of their annual environmental quality incentives program allocation to multi-producer cooperative efforts to address specific resource concerns;CommentsClose CommentsPermalink





`(3) collaborate with other Federal and State agencies, local governments, educational institutions, and for-profit and nonprofit organizations to monitor and evaluate the environmental outcomes associated with implementation of the program;CommentsClose CommentsPermalink





`(4) demonstrate effective and efficient program delivery, including the provision of adequate technical assistance to all program participants through appropriate staffing and through cooperation with other Federal, State, Tribal, and local agencies, for-profit and nonprofit organizations, and individuals with demonstrated expertise in the planning and implementation of conservation practices, systems, and approaches;CommentsClose CommentsPermalink





`(5) support and encourage innovative approaches to addressing resource concerns;CommentsClose CommentsPermalink





`(6) effectively leverage Federal funding with local and state matching funds; andCommentsClose CommentsPermalink





`(7) demonstrate effective outreach and innovative approaches to reaching and serving beginning farmers and ranchers, limited-resource producers, and operators with lower rates of historical participation in Federal farm and conservation programs.'.CommentsClose CommentsPermalink

SEC. 4. REGIONAL WATER QUALITY ENHANCEMENT PROGRAM.

(a) Program Requirements- 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:CommentsClose CommentsPermalink

`SEC. 1240Q. REGIONAL WATER QUALITY ENHANCEMENT PROGRAM.

`(a) Program Required- In order to increase, facilitate, and further implement cooperative partnerships between States, producers, and other interested persons or parties to improve water quality in the largest waterbodies in the United States, the Secretary shall enter into agreements with States containing all or a portion of such a waterbody or containing tributaries of such a waterbody to assist such States to carry out special initiatives focused on the enhanced stewardship of such waterbodies. The Chesapeake Bay and its tributaries shall be one of the waterbodies regarding which the Secretary enters into agreements under this section.CommentsClose CommentsPermalink





`(b) Term of Agreement- An agreement under this section shall be for a term of not shorter than three years nor longer than five years.CommentsClose CommentsPermalink





`(c) Competitive Process; Set-Aside- The Secretary shall establish a competitive process for considering applications for agreements under this section, consistent with the evaluation criteria listed in subsection (d). However, not less than 25 percent of total funds available for agreements under this section shall be awarded to States containing a portion of the Chesapeake Bay watershed.CommentsClose CommentsPermalink





`(d) Evaluation of Applications; Criteria- In evaluating applications for an agreement under this section, the Secretary shall consider the extent to which the program proposed by the State will accomplish the following:CommentsClose CommentsPermalink





`(1) Most cost-effectively achieve the greatest improvements to water quality, utilizing one or more of the following:CommentsClose CommentsPermalink





`(A) Adoption of management practices and systems, including soil amendments, soil and stalk testing, alternative cropping systems, cover crops, buffers, and other measures.CommentsClose CommentsPermalink





`(B) Innovative or advanced conservation techniques that hold substantial promise for producing long-term, cost-effective improvements to water quality.CommentsClose CommentsPermalink





`(C) Reduction in nutrient inputs to agricultural operations, such as through feed management.CommentsClose CommentsPermalink





`(D) Manure processing and treatment technologies to permit more efficient use and transport of manure to produce energy, restore nutrient-deficient lands, or reduce air emissions.CommentsClose CommentsPermalink





`(2) Leverage financial and technical resources from sources other than the programs authorized by this subtitle, including financial and technical resources provided by other Federal agencies, State agencies, local governments, nongovernmental organizations and associations, and other private sector entities.CommentsClose CommentsPermalink





`(3) Provide necessary technical assistance to producers and other cooperators participating in the project or initiative, including in the application cost estimates for technical assistance and whether such assistance will be provided by technical service providers.CommentsClose CommentsPermalink





`(4) Establish a program of education and outreach to attract new participants.CommentsClose CommentsPermalink





`(5) Serve as a transferable model for other regional watershed efforts.CommentsClose CommentsPermalink





`(6) Evaluate progress and measure results.CommentsClose CommentsPermalink





`(e) Priorities- To the maximum extent practicable, consistent with the requirements of subsection (d), the Secretary shall ensure that, each fiscal year, agreements are entered into under this section to support projects and initiatives that collectively address water quality impairments.CommentsClose CommentsPermalink





`(f) Selection Process- In evaluating applications under this section, the Secretary shall consider recommendations from scientists, regional experts, and other persons with appropriate expertise in the Department of Agriculture, other Federal and State agencies, and interest groups, including producer associations and conservation and environmental organizations.CommentsClose CommentsPermalink





`(g) Cost Share Requirements- The Secretary shall not require more than 25 percent of the cost of a project or initiative supported under an agreement entered into under this section to come from non-Federal sources. However, the Secretary may award more points to projects or initiatives offering to cover a higher percentage of the cost of the project or initiative from non-Federal sources. If the Secretary establishes a cost-share requirement for a project or initiative, the Secretary shall allow the use of in-kind contributions to meet that requirement.CommentsClose CommentsPermalink





`(h) State- In this section, the term `State' includes the District of Columbia.'.CommentsClose CommentsPermalink





(b) Funding- Section 1241(a) of such Act (16 U.S.C. 3841(a)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(8) The regional water quality enhancement program under section 1240Q, using, to the maximum extent practicable--CommentsClose CommentsPermalink





`(A) $175,000,000 for fiscal year 2008; andCommentsClose CommentsPermalink





`(B) $200,000,000 in each of fiscal years 2009 through 2013.'.CommentsClose CommentsPermalink

SEC. 5. CONSERVATION INNOVATION GRANTS.

Section 1240H of such Act (16 U.S.C. 3839aa-8) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by striking `may' and inserting `shall';CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) by striking `may' and inserting `shall';CommentsClose CommentsPermalink





(B) by striking `and' at the end of paragraph (2);CommentsClose CommentsPermalink





(C) by striking the period at the end of paragraph (3) and inserting `; and'; andCommentsClose CommentsPermalink





(D) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(4) include a plan for technology transfer.'; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subsections:CommentsClose CommentsPermalink





`(d) Technology Transfer- In making grants under this section, the Secretary shall give priority to projects that ensure transferability of innovative conservation technologies and approaches to achieve widespread implementation by producers.CommentsClose CommentsPermalink





`(e) Additional Funding- In addition to amounts made available under section 1241(a)(6) to carry out this chapter, the Secretary shall use $100,000,000 in funds of the Commodity Credit Corporation in each of fiscal years 2008 through 2013 to carry out this section:'.CommentsClose CommentsPermalink

SEC. 6. CONSERVATION RESERVE PROGRAM.

(a) Extension-CommentsClose CommentsPermalink





(1) FUNDING EXTENSION- Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended--CommentsClose CommentsPermalink





(A) in the matter preceding paragraph (1), by striking `2007' and inserting `2013'; andCommentsClose CommentsPermalink





(B) in paragraph (1), by striking `The' and inserting `For each of fiscal years 2002 through 2013, the'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS- Section 1231 of such Act (16 U.S.C. 3831) is amended--CommentsClose CommentsPermalink





(A) in subsection (a), by striking `2007' and inserting `2013';CommentsClose CommentsPermalink





(B) in subsection (d), by striking `2007' and inserting `2013';CommentsClose CommentsPermalink





(C) in subsection (e)(3), by striking `2002' and inserting `2008'; andCommentsClose CommentsPermalink





(D) in subsection (h)(1), by striking `2007' and inserting `2013'.CommentsClose CommentsPermalink





(b) Enrollment Goals and Use of General Signup- Section 1231(d) of such Act (16 U.S.C. 3831(d)) is amended--CommentsClose CommentsPermalink





(1) by striking `The Secretary' and inserting:CommentsClose CommentsPermalink





`(1) ACREAGE AUTHORIZED- The Secretary'; andCommentsClose CommentsPermalink





(2) by adding at the end the following new paragraphs:CommentsClose CommentsPermalink





`(2) ENROLLMENT GOALS- For the period beginning on the date of the enactment of this paragraph and ending on December 31, 2013, the Secretary shall establish a goal to enroll not less than 7,000,000 acres of eligible land through the continuous enrollment program and the conservation reserve enhancement program, with priority given to riparian buffers, restored wetlands, and other habitats known to improve water quality and called for under established, State-approved tributary strategies or watershed management plans to reduce nutrients and sediments from agricultural sources to impaired waters.CommentsClose CommentsPermalink





`(3) LIMITATION ON USE OF GENERAL SIGNUP- To the maximum extent practicable, the Secretary shall ensure that not more than 80 percent of the acres maintained in the conservation reserve at any one time during the 2008 through 2013 calendar years are acres that were enrolled through a general signup under section 1234(c)(2)(A). For an offer to be accepted into the conservation reserve under the general signup, the offer must have an environmental benefit index score at or above a threshold that is 15 percent higher than the average of the thresholds used in general signups during fiscal years 1996 through 2006, adjusted for changes in the index over these fiscal years.'.CommentsClose CommentsPermalink





(c) Payment Limitation- Section 1234(f)(1) of such Act is (16 U.S.C. 3834(f)) is amended by adding at the end the following new sentence: `The Secretary may waive this payment limitation for persons participating in a conservation reserve enhancement program if the Secretary determines such a waiver is necessary to achieve the objectives of the conservation reserve enhancement program.'.CommentsClose CommentsPermalink

SEC. 7. CONSERVATION SECURITY PROGRAM.

(a) Repeal of Funding Cap- Section 1241(a)(3) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(3)) is amended by striking `, using not more than' and all that follows through `2015'.CommentsClose CommentsPermalink





(b) Program Extension- Section 1238A(a) of such Act (16 U.S.C. 3838a(a)) is amended by striking `2011' and inserting `2013'.CommentsClose CommentsPermalink





(c) Assistance to Certain States- Section 1238A(b) of such Act (16 U.S.C. 3838a(b)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(5) CONTINUOUS ENROLLMENT- The Secretary shall provide for a continuous enrollment of eligible land in any State that, through a written agreement, is partnering with other States and the Federal government to achieve specific numeric reductions in nutrient and sediment pollution loadings within a multi-State watershed in an effort to remove the waters in that watershed from the list of impaired waters under the Clean Water Act.'.CommentsClose CommentsPermalink





(d) Enhanced Payments for Water Quality- Section 3838C(b)(1)(C)(iii) of such Act (16 U.S.C. 3838c(b)(1)(C)(iii)) is amended--CommentsClose CommentsPermalink





(1) by striking `or' at the end of subclause (IV);CommentsClose CommentsPermalink





(2) by striking the period at the end of subclause (V) and inserting `; and'; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subclause:CommentsClose CommentsPermalink





`(VI) implements practices that will significantly improve water quality in watersheds associated with waters impaired by agricultural nutrients, with priority given to the most effective practices.'.CommentsClose CommentsPermalink





(e) Duties of the Secretary- Section 3838c of such Act (16 U.S.C. 3838c) is amended by striking subsections (f) and (g) and inserting the following new subsections:CommentsClose CommentsPermalink





`(f) Enrollment Priority- In any fiscal year in which funding for the conservation security program is limited, the Secretary shall prioritize contracts to address water quality in watersheds of water bodies impaired by nutrients, based on the degree to which a producer proposes to increase the management intensity with which the producer addresses nutrient impairment of water quality in the watershed.CommentsClose CommentsPermalink





`(g) Prohibited Allocation Factor- The Secretary shall not use the total number of acres as an allocation factor.CommentsClose CommentsPermalink





`(h) Technical Assistance- For each of fiscal years 2008 through 2013, the Secretary shall provide technical assistance to producers for the development and implementation of conservation security contracts in an amount based on actual cost, but not to exceed 23 percent of amounts expended for the fiscal year.'.CommentsClose CommentsPermalink

SEC. 8. COMPREHENSIVE PLANNING TECHNICAL ASSISTANCE PILOT PROGRAM.

Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(c) Comprehensive Planning Technical Assistance Pilot Program-CommentsClose CommentsPermalink





`(1) CHESAPEAKE BAY WATERSHED- The Secretary shall establish a pilot program in the Chesapeake Bay watershed to assist producers with comprehensive conservation planning, design, and implementation, both before applying for assistance under any of the conservation programs authorized by subtitle D and through the process of design and implementation of conservation projects.CommentsClose CommentsPermalink





`(2) COMPREHENSIVE ASSESSMENT- The pilot program will assist producers by making a comprehensive assessment of the resource concerns, needs, and alternative solutions for the producer's entire operation, as determined by the Secretary, following the procedures in the Natural Resources Conservation Service conservation planning manual, and by providing technical assistance in design and implementation of the solutions.CommentsClose CommentsPermalink





`(3) PROVISION OF ASSISTANCE- Assistance to producers under the pilot program shall be provided by the Secretary directly or through third party providers certified by the Secretary. The results of the comprehensive planning, design, and implementation assistance shall be provided to the producer to enable informed choices on the type of financial assistance available through conservation programs administered by the Secretary under subtitle D that would most effectively address the resource needs of the operation consistent with the environmental goals for the area in which the operation is located.CommentsClose CommentsPermalink





`(4) COST- Assistance under the pilot program shall be provided by the Secretary without cost to producers.CommentsClose CommentsPermalink





`(5) FUNDING- The Secretary shall provide $10,000,000 of the funds of the Commodity Credit Corporation each of fiscal years 2008 through 2013 to carry out the pilot program.'.CommentsClose CommentsPermalink

SEC. 9. WETLANDS RESERVE PROGRAM.

(a) Extension-CommentsClose CommentsPermalink





(1) FUNDING EXTENSION- Section 1241(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(2)) is amended by striking `The' and inserting `For each of fiscal years 2002 through 2013, the'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Section 1237(c) of such Act (16 U.S.C. 3837(c)) is amended by striking `2007' and inserting `2013'.CommentsClose CommentsPermalink





(b) Maximum and Yearly Enrollment- Section 1237(b)(1) of such Act (16 U.S.C. 3837(b)(1)) is amended by striking `2,275,000 acres,' and all that follows through the period at the end and inserting `3,500,000 acres, of which, to the maximum extent practicable, 5,000 acres in calendar year 2008 and 10,000 acres in each of calendar years 2009 and 2010 shall be enrolled to meet State and Federal 2010 goals established pursuant to the Chesapeake 2000 agreement for the Chesapeake Bay watershed.'.CommentsClose CommentsPermalink





(c) Priority- Section 1237 of such Act (16 U.S.C. 3837) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(g) Priority- The Secretary shall give priority to enrollments benefitting water quality and shall consider whether States are implementing the program consistent with these priorities when allocating program funding to states.'CommentsClose CommentsPermalink





(d) Additional Purpose- Section 1237A(b)(3) of such Act (16 U.S.C. 3837a(b)(3)) is amended by inserting after `wetlands' the following: `, including the reduction of excess nutrients'.CommentsClose CommentsPermalink





(e) Increased Cost Share- Section 1237C(b)(2) of such Act (16 U.S.C. 3837c(b)(2)) is amended by adding at the end the following new sentence: `However, the Secretary may increase the cost-share percentage if the restoration plan referred to in section 1237A(b) results in significant reduction of excess nutrients in watersheds of waterbodies impaired by agricultural nutrients or results in land placed under permanent easement.'.CommentsClose CommentsPermalink





(f) Easement Priority- Section 1237C(d) of such Act (16 U.S.C. 3837c(d)) is amended by inserting before the period at the end the following: `or for achieving nutrient reductions in watersheds of waterbodies impaired by agricultural nutrients'.CommentsClose CommentsPermalink

SEC. 10. AGRICULTURAL MANAGEMENT ASSISTANCE.

(a) Additional State- Subsection (b)(1) of section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is amended by inserting `Virginia,' after `Vermont,'.CommentsClose CommentsPermalink





(b) Funding and Duration- Subsection (b)(4)(B) of such section is amended--CommentsClose CommentsPermalink





(1) in clause (ii)--CommentsClose CommentsPermalink





(A) by striking `fiscal years 2003 through 2007' and inserting `fiscal years 2008 through 2013'; andCommentsClose CommentsPermalink





(B) by striking `$20,000,000' and inserting `$50,000,000'; andCommentsClose CommentsPermalink





(2) in clause (iii)--CommentsClose CommentsPermalink





(A) by striking `fiscal years 2004 through 2007' and inserting `fiscal years 2008 through 2013';CommentsClose CommentsPermalink





(B) in subclause (I), by striking `$14,000,000' and inserting `$38,000,000';CommentsClose CommentsPermalink





(C) in subclause (II), by striking `$1,000,000' and inserting `$2,000,000'; andCommentsClose CommentsPermalink





(D) in subclause (III), by striking `$5,000,000' and inserting `$10,000,000'.CommentsClose CommentsPermalink

SEC. 11. BIOREFINERY AND BIOFUEL PROJECT GRANTS.

(a) Definitions- Subsection (b) of section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is amended by--CommentsClose CommentsPermalink





(1) redesignating paragraph (3) as paragraph (4); andCommentsClose CommentsPermalink





(2) inserting after paragraph (3) the following new paragraph:CommentsClose CommentsPermalink





`(3) CHESAPEAKE BAY WATERSHED STATES- The term `Chesapeake Bay Watershed States' means the States of Delaware, Maryland, New York, Pennsylvania, Virginia, and West Virginia and the District of Columbia.'.CommentsClose CommentsPermalink





(b) Assistance Methods- Subsection (c) of such section is amended to read as follows:CommentsClose CommentsPermalink





`(c) Assistance-CommentsClose CommentsPermalink





`(1) GRANTS- The Secretary shall award grants and make loans and loan guarantees to eligible entities to assist in covering the cost of development and construction of biorefineries to carry out projects to demonstrate the commercial viability of one or more processes for converting biomass to fuels or chemicals.CommentsClose CommentsPermalink





`(2) CHESAPEAKE BAY WATERSHED PROJECTS- In the case of a project to be operated in one or more of the Chesapeake Bay Watershed States, the Secretary shall award grants under this subsection for the purpose of developing and promoting the commercial viability of no-till soybean biodiesel production, cellulosic ethanol production, manure to energy processes and technologies, and other technologies that promote the conversion of biomass to fuels and chemicals and the reduction of nutrient impacts to water quality.'.CommentsClose CommentsPermalink





(c) Environmental Goals; Distribution of Grants- Subsection (e) of such section is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)(A)--CommentsClose CommentsPermalink





(A) by striking `and' at the end of clause (i);CommentsClose CommentsPermalink





(B) by redesignating clause (ii) as clause (iii); andCommentsClose CommentsPermalink





(C) by inserting after clause (i) the following new clause:CommentsClose CommentsPermalink





`(ii) shall select projects based upon the extent to which the projects meet environmental goals for feed stocks and refineries developed by the Secretary in consultation with the Secretary of the Interior, the Secretary of Energy, the Administrator of the Environmental Protection Agency, and the National Academy of Sciences taking into consideration clean water and air goals; and'.CommentsClose CommentsPermalink





(2) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(3) FUNDS FOR CHESAPEAKE BAY STATES- The Secretary shall ensure that not less than 15 percent of the total funds available under this section are provided to projects operated in Chesapeake Bay Watershed States that benefit the Chesapeake Bay watershed .'.CommentsClose CommentsPermalink





(d) Funding- Subsection (h) of such section is amended to read as follows:CommentsClose CommentsPermalink





`(h) Of the funds of the Commodity Credit Corporation, the Secretary shall use $100,000,000 for each of fiscal years 2008 through 2013 to carry out this section.'.CommentsClose CommentsPermalink

SEC. 12. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS PROGRAM.

Section 9006 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106) is amended--CommentsClose CommentsPermalink





(1) in subsection (c)--CommentsClose CommentsPermalink





(A) by striking paragraph (2)(C) and inserting the following:CommentsClose CommentsPermalink





`(C) the expected environmental benefits of the renewable energy system, including in watersheds of bodies of water degraded by agricultural nutrients and to water quality;'; andCommentsClose CommentsPermalink





(B) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(3) PREFERENCE FOR COMMUNITY PROJECTS- The Secretary shall give preference in funding and grant and loan selection to activities that the Secretary determines--CommentsClose CommentsPermalink





`(A) are undertaken jointly by more than one eligible entity in a local community;CommentsClose CommentsPermalink





`(B) involve direct cooperation between two or more eligible entities; andCommentsClose CommentsPermalink





`(C) foster community or cooperative approaches to renewable energy and energy efficiency development.'; andCommentsClose CommentsPermalink





(2) by striking subsection (f) and inserting the following:CommentsClose CommentsPermalink





`(f) Production-Based Incentive in Lieu of Grant-CommentsClose CommentsPermalink





`(1) IN GENERAL- In addition to the authority under subsection (a), the Secretary may, on the request of an applicant the Secretary determines is eligible under subsection (b), make production-based payments to the applicant in lieu of a grant.CommentsClose CommentsPermalink





`(2) CONTINGENCY- The Secretary shall only make a payment under paragraph (1) if the applicant provides the Secretary with documentation showing energy production and sales from a renewable energy system to a third party.CommentsClose CommentsPermalink





`(3) LIMITATION- The total net present value of a production-based incentive may not exceed the lower of--CommentsClose CommentsPermalink





`(A) 25 percent of the eligible project costs; andCommentsClose CommentsPermalink





`(B) any other limits that the Secretary establishes by rule or guidance.CommentsClose CommentsPermalink





`(g) Distribution of Grants- The Secretary shall ensure that not less than 15 percent of the grants, loans, and loan guarantees provided under this section are provided to projects in Chesapeake Bay Watershed States that benefit the Chesapeake Bay watershed.CommentsClose CommentsPermalink





`(h) Definition- In this section, the term `Chesapeake Bay Watershed States' means the States of Delaware, Maryland, New York, Pennsylvania, Virginia, and West Virginia and the District of Columbia.CommentsClose CommentsPermalink





`(i) Funding- Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section--CommentsClose CommentsPermalink





`(1) $60,000,000 for fiscal year 2008, to remain available until expended;CommentsClose CommentsPermalink





`(2) $90,000,000 for fiscal year 2009, to remain available until expended;CommentsClose CommentsPermalink





`(3) $130,000,000 for fiscal year 2010, to remain available until expended;CommentsClose CommentsPermalink





`(4) $180,000,000 for fiscal year 2011, to remain available until expended; andCommentsClose CommentsPermalink





`(5) $250,000,000 for fiscal year 2012, to remain available until expended.'.CommentsClose CommentsPermalink