"SEC. 1239. DEFINITIONS. 

“(2) BIOFUEL.—

      “(A) IN GENERAL.—The term ‘biofuel’ means an energy source derived from living organisms.

         “(B) INCLUSIONS.—The term ‘biofuel’ includes—

            “(i) plant residue that is harvested, dried, and burned, or further processed into a solid, liquid, or gaseous fuel;

      “(ii) agricultural waste (such as cereal straw, seed hulls, corn stalks and cobs);

      “(iii) native shrubs and herbaceous plants (such as some varieties of willows and prairie switchgrass); and

      “(iv) animal waste (including methane gas that is produced as a byproduct of animal waste).

         “(3) BIOPRODUCT.—The term ‘bioproduct’ means a product that is manufactured or produced—

      “(A) by using plant material and plant byproduct (such as glucose, starch, and protein); and

      “(B) to replace a petroleum-based product, additive, or activator used in the production of a solvent, paint, adhesive, chemical, or other product (such as tires or Styrofoam cups).

         “(4) CARBON SEQUESTRATION.—The term ‘carbon sequestration’ means the process of providing plant cover to avoid contributing to the greenhouse effect by—

      “(A) removing carbon dioxide from the air; and

      “(B) developing a ‘carbon sink’ to retain that carbon dioxide.

     

Under "(6) ELIGIBLE AGRICULTURAL LAND, subpargraph (B)--

      "(B) provides 1 or more benefits to the public, such as—

            "(i) conservation of soil, water, and related resources;

            "(ii) water quality protection or improvement;

            "(iii) control of invasive and exotic species;

            "(iv) wetland restoration, development and protection;

            "(v) wildlife habitat development and protection;

            “(vi)  survival and recovery of listed species or candidate species;

            "(vii) preservation of open spaces, or prime, unique, or other productive farm land;

            “(viii)  increased participation in Federal agricultural or forestry programs in an area or region that has traditional under-representation in such programs;

            “(ix) provision of a structure for interstate cooperation to address environmental issues that affect an area involving 1 or more States;

            “(x) improvements in the environment of the area, region or corridor;

            "(xi) carbon sequestering;

            "(xii) phytoremediation;

            “(xiii) improvements in the economic viability of agriculture;

            "(xiv) production of biofuels and bioproducts;

            "(xv) establishment of experimental or innovative crops;

            "(xvi) use of existing crops or crop byproducts in experimental or innovative ways;

            "(xvii) installation of equipment to produce materials that may be used for biofuels or other bioproducts;

            "(xviii) maintenance of experimental or innovative crops until the earlier of the date on which—

             “(I) a viable market is established for those crops; or

                        “(II) an agreement terminates; or

            "(xix) other similar conservation purposes identified by the Secretary.

“(7) GERMPLASM.—The term ‘germplasm’ means the genetic material of a germ cell of any life form that is important for food or agricultural production.

            “(10) PYTOREMEDIATION.—The term

‘pytoremediation’ means the use of green living plant material (including plants that may be harvested and used to produce biofuel or other bioproducts) to remove contaminants from water and soil.

“(13) STATE-CHARTERED STEWARDSHIP ENTITY.—The term ‘state-chartered stewardship entity’ means an organization that is certified or chartered by a state agency to carry out environmental or rural stewardship activities.  The certificates or charters may be issued to non-government groups, such as cooperatives, trade groups or civic groups, for these groups to carry out specific goals, such as wetlands restoration, assembling fragmented songbird habitat, implementing best management practices or promoting economic activities that maintain the viability and character of rural communities; or they may be issued to these groups to facilitate cooperation and carry out coordinated approaches to accomplish 1 or more goals in a geographic area such as a landscape, watershed or riverway

 

under SEC. 1239A. ESTABLISHMENT AND PURPOSE OF PROGRAM., subparagraph  (c):

   "(2) COST SHARING.—It shall be a requirement of the Farmland Stewardship Program that the majority of the funds to carry out the Program must come from existing conservation programs, which may be Federal, State, regional, local, or private, that are combined into and made a part of an agreement, with the balance made up from funding contributions made by State, regional, or local agencies and divisions of government or from private funding sources.  Funds from existing programs may be used only to carry out the purposes and intents of those programs to the degree that those programs are made a part of a Farmland Stewardship Agreement.  Funding for other purposes or intents must come from the funds provided under paragraphs (1)(B) and (1)(C) of subsection (c) or from the funding contributions made by State, regional, or local agencies and divisions of government or from private funding sources.

   "(d) PERSONNEL COSTS.—The Secretary shall use the Natural Resources Conservation Service to carry out the Farmland Stewardship Program in cooperation with the State department of agriculture or other designated agency within the State. The role of the Natural Resources Conservation Service shall be limited to federal oversight of the program.  The Natural Resources Conservation Service shall perform its normal functions with respect to the conservation programs that it administers.  However, it shall play no role in the assembly of programs administered by other federal agencies into Farmland Stewardship Agreements.

   ‘(e) STATE LEVEL COOPERATION.—The governor of each state shall determine which state agency shall have primary responsibility for cooperating with the Natural Resources Conservation service in operating the Farmland Stewardship Program in the State.  The agency designated by the governor may choose to operate the program on its own, or may collaborate with another local, State or Federal agency, conservation district or tribe in operating the program.  The designated state agency shall consult with the agencies with management authority and responsibility for the resources affected on properties on which Farmland Stewardship Agreements are negotiated and assembled.

      “(1)  The agency selected by the governor shall submit an application to the Secretary requesting designation as the ‘designated state agency’ to cooperate with the Natural Resources Conservation Service in operating the Farmland Stewardship Program.

      “(2) The Secretary shall approve the request for designation as the ‘designated state agency’ if the agency demonstrates that it has the capability to implement the Farmland Stewardship Program and attests that it shall conform with all program requirements as determined by the Secretary. Upon approval of the request, the Secretary may enter into a memorandum of understanding with the designated state agency specifying the State’s responsibilities in carrying out the program.

            ‘(f) ANNUAL REPORTS.—The designated state agency shall annually submit to the Secretary and make publicly available a report that describes.—

            (1) The progress achieved, the funds expended, the purposes for which funds were expended and monitoring and evaluating  results obtained by local contracting agencies, and

            ‘(2) The plans and objectives of the State for future activities under the program.

            "(g) TECHNICAL ASSISTANCE.—

            "(1) Of the funds used from other programs and of funds made available to carry out the Farmland Stewardship Program for a fiscal year, the Secretary shall make available technical assistance funds to provide for--

            "(A) administration, coordination and oversight through the Natural Resources Conservation Service headquarters office;

            "(B) operating expenses for the Farmland Stewardship Council to carry out its duties in cooperation with the State Technical Committees, as provided under section 1239E;

            "(C) administration and coordination through the designated state agency in the State where the property is located;

            "(D) administration and coordination through the Natural Resources Conservation Service state office, in the State where property is located;

            "(E) administration and coordination through the state conservation district agency, unless such agency is the designated state agency for administering this program, in which case these funds shall be added to the funds in the next paragraph; and

            "(F) local technical assistance, carried out through a designated 'contracting agency' and subcontractors chosen by and working with the contracting agency for preparing and executing agreements and monitoring, evaluating and administering agreements for their full term. It shall be a requirement of this program that the majority of technical assistance funds, and the majority of responsibility for assembling, administering and monitoring, shall go to the local contracting agencies.

            "(2) An owner or operator who is receiving a benefit under this chapter 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 chapter.

            "(h) ENSURING AVAILABILITY OF FUNDS.— All amounts required for preparing, executing, carrying out, monitoring, evaluating and administering an agreement for its entire term shall be made available by the Federal, State, and local agencies and private sector entities involved in funding the agreement upon execution of the agreement.

            "SEC. 1239B. USE OF FARMLAND STEWARDSHIP AGREEMENTS.

            "(d) MODIFICATION OF OTHER CONSERVATION PROGRAM ELEMENTS.—If most, but not all, of the limitations, conditions, policies and requirements of a conservation program that is implemented in whole, or in part, through the Farmland Stewardship Program are met with respect to a parcel of eligible agricultural land, and the purposes to be achieved by the agreement to be entered into for such land are consistent with the purposes of the conservation program, then the Secretary may grant exceptions to any remaining limitations, conditions, policies or requirements of the conservation program that would otherwise prohibit or limit the agreement The Secretary may also grant requests to —

            “(1) establish different or automatic enrollment criteria than otherwise established by regulation or policy;

            “(2) establish different compensation rates to the extent the parties to the agreement consider justified;

            “(3) establish different conservation practice criteria if doing so will achieve greater conservation benefits;

            “(4) provide more streamlined and integrated paperwork requirements;

            “(5) provide for the transfer of conservation program funds to States with accounts that have been expressly established to collect and consolidate payments for different programs so that a single annual payment can be made to an owner or operator;

“(6) provide funds to monitor the effectiveness of the Program for wildlife, the protection of natural resources, economic effectiveness and sustaining the agricultural economy.

            “(7)  For a request for an exception to be considered, a contracting agency or the designated state agency must —

            “(A) Submit a request for an exception to the Secretary or Administrator who has responsibility for the program for which an  exception is being requested.  Requests for exceptions in programs administered by the U.S. Department of Agriculture shall be submitted to the Secretary of Agriculture, while requests for exceptions in programs administered by the U.S. Department of Interior shall be submitted to the Secretary of Interior and requests for exceptions in programs administered by the U.S. Environmental Protection Agency shall be submitted to the Administrator of that Agency, and so forth.

            “(B) The request shall–

            “(i) explain why the property qualifies for participation in the program;

            “(ii) explain why it is necessary or desirable to make an exception to one or more program limitations, conditions, policies or requirements;

            “(iii) if possible, suggest alternative methods or approaches to satisfying these limitations, conditions, policies or requirements that are appropriate for the property in question;

            “(iv) request that the Secretary or Administrator grant the exception, based on the documentation submitted.

            “(C) The Secretary or Administrator may request additional documentation, or may suggest alternative methods of overcoming program limitations or obstacles on the property in question, prior to deciding whether or not to grant a request for an exception.

            “(D) Exceptions may be granted by a Secretary or Administrator to allow additional flexibility in tailoring conservation programs to the specific needs, opportunities and challenges offered by individual parcels of land, and to remove administrative and regulatory obstacles that previously may have limited the use of these programs on eligible agricultural land, or would prevent these programs from being combined together through a Farmland Stewardship Agreement.  Exceptions may be granted only if the purposes to be achieved by the program after the exception is granted remain consistent with the purposes for which the program was established.

            “(E) The Secretaries and Administrators who receive requests exceptions under this chapter shall respond to these requests within sixty (60) days of receipt.  Decisions on whether to grant a request shall be rendered within one hundred eighty (180) days of receipt.

“(F)  If a request for an exception is declined, such finding shall have no impact upon the ability of a designated state agency or local contracting agency to include the affected program or other programs in a Farmland Stewardship Agreement.  The contracting agency or landowner/operator may choose to include a program in which a request for an exception is declined, if the program still can be utilized as it exists with no changes in the Farmland Stewardship Agreement, or to leave the program out and to proceed with the Farmland Stewardship Agreement by assembling other programs.

            "(e) SHORT-TERM CONTRACTS.— The Secretary may provide payments to private landowners or operators, and  cover expenses incurred by the organization or contracting agency that will oversee an agreement, while baseline data is gathered, documents are prepared and the formal agreement is being negotiated. The Secretary may use a short-term service contract to pay for all technical services required to establish an agreement, and to compensate landowners for time and materials in providing baseline data, and for implementing an initial set of recommended practices, as recommended by the contracting agency.  These contracts may be used to establish a Farmland Stewardship Agreement, or any other type of conservation program, permit or agreement on private land. Such contracts may be used during a two-year planning period, which may be extended for up to two additional periods of six months each by mutual agreement between the Secretary, the contracting agency and the owner or operator.

            “(f) PAYMENTS.–– Payments to owners and operators shall be made as provided in the programs that are combined as part of a Farmland Stewardship Agreement.  At the election of the owner or operator, payments may be collected and combined together by the designated state agency and issued to the owner or operator in equal annual payments over the term of the agreement.  Payments for other services rendered by the owner or operator shall be made as follows– 

      “(1) IN GENERAL.––  Programs that contain term or permanent easements may be combined into a Farmland Stewardship Agreement.  Except for portions of a property affected by easements, Farmland Stewardship Agreements shall provide no interest in property and shall be solely contracts for specific services. The fees paid shall be based on the services provided. Compensation shall include–– 

            “(A) ANNUAL BASE PAYMENT.–– All owners or operators enrolled in a Farmland Stewardship Agreement shall receive an annual base payment, at a rate to be determined by the Secretary.  The annual base payment shall be considered by the Secretary to be satisfied if the owner or operator receives annual payments from another conservation program that has been incorporated into the Farmland Stewardship Agreement.  In addition, owners and operators shall receive––

            “(B) DIRECT FEES FOR SERVICES.–These fees shall be based on the cost of providing each service. These fees may be set by adopting private sector market prices for the performance of similar services or by competitive bidding. Or, alternatively––

            “(C) ANNUAL PER-ACRE STEWARDSHIP FEES.–– These fees shall be based on the services provided, or the quantity of benefits provided, with higher fees for greater benefits that can be quantified. Such values shall be determined and set by the Secretary. Or, alternatively––

            “(D) OTHER INCENTIVES.–– Other forms of compensation acceptable to an owner or operator also may be considered. These other forms of compensation may include Federal, State or local tax waivers, credits, reductions or exclusions; priority processing of permits from State and local agencies; consolidation of permits from State and local agencies into a single operating plan; extended-duration permits from State and local agencies; enhanced eligibility and priority listing for participation in cost-share programs, loan programs, conservation programs and permanent conservation easement or public purchase programs; and priority access to technical assistance services provided by Federal and, where possible, local, regional and State agencies.

            "(h) STATE AND LOCAL CONSERVATION PRIORITIES.—To the maximum extent practicable, agreements shall address the conservation priorities established by the State and locality in which the eligible agricultural land  is located.  The Secretary may adopt for this purpose a pre-existing state or regional conservation plan or strategy that maps economically and ecologically important lands, including a plan developed pursuant to planning requirements under Title VIII of the 2001 Interior Appropriations Act and Title IX of the 2001 Commerce, Justice, State Appropriations Act. 

            "(i) WATERSHED ENHANCEMENT.—To the extent practicable, the Secretary shall encourage the development of Farmland Stewardship Program applications on a watershed basis.

"SEC. 1239E. CREATION OF A FARMLAND STEWARDSHIP COUNCIL REGARDING PROGRAM.

            "(a) APPOINTMENT .—The Secretary shall appoint a advisory committee to assist the Secretary in carrying out the Farmland Stewardship Program.

            “(b) IN GENERAL.—The Committee shall be known as the Farmland Stewardship Council and shall operate on the federal level in the same manner, with the same roles and responsibilities and the same membership requirements as provided in the policies and guidelines governing State Technical Committees in Subpart B of Part 501 of the U.S. Department of Agriculture’s directives to the Natural Resources Conservation Service regarding Conservation Program Delivery.

            "(c) DUTIES.—The Farmland Stewardship Council shall cooperate in all respects with the State Technical Committees and Resource Advisory Committees in each state.  In addition to the roles and responsibilities set forth for these committees, the Farmland Stewardship Council shall assist the Secretary in —

            "(1) drafting such regulations as are necessary to carry out the Program;

            "(2) developing the documents necessary for executing farmland stewardship agreements;

            "(3) developing procedures and guidelines to facilitate partnerships with other levels of government and nonprofit organizations and assist contracting agencies in gathering data and negotiating agreements;

            "(4) designing criteria to consider applications submitted under sections 1239C and 1239D;

            "(5) providing assistance and training to designated state agencies, project partners and contracting agencies;

            "(6) assisting designated state agencies, project partners and contracting agencies in combining together other conservation programs into agreements;

            "(7) tailoring the agreements to each individual property;

            "(8) developing agreements that are highly flexible and can be used to respond to and fit in with the conservation needs and opportunities on any property in the U.S.;

            "(9) developing a methodology for determining a fair market price in each state for each service rendered by a private owner or operator under a Farmland Stewardship Agreement;

            "(10) developing guidelines for administering the Farmland Stewardship Program on a national basis that respond to the conservation needs and opportunities in each state and in each rural community in which Farmland Stewardship Agreements may be implemented;

            "(11) monitoring progress under the agreements; and

            "(12) reviewing and recommending possible modifications, additions, adaptations, improvements, enhancements, or other changes to the Program to improve the way in which the program operates.

            "(d) MEMBERSHIP.—The Farmland Stewardship Council shall have the same membership requirements as the State Technical Committees, except that —

            “(1) All participating members must have offices located in the Washington, D.C. metropolitan area;

            “(2) The list of members representing “Federal Agencies and Other Groups Required by Law” shall be expanded to include all federal agencies whose programs might be included in Farmland Stewardship Program;

            “(3) State agency representation shall be provided by the organizations located in the Washington, D.C. metropolitan area representing state agencies and shall include individuals from organizations representing wetland managers, environmental councils, fish and wildlife agencies, counties, resource and conservation development councils, state conservation agencies, state departments of agriculture, state foresters, and governors; and

            “(4) Private Interest Membership shall be comprised of 21 members representing the principal agricultural commodity groups, farm organizations, national forestry associations, woodland owners, conservation districts, rural stewardship organizations, and up to a maximum of seven (7) conservation and environment organizations, including organizations with an emphasis on wildlife, rangeland management and soil and water conservation.

            “(5) The Secretary shall appoint one of the Private Interest Members to serve as chair. The Private Interest Members shall appoint another member to serve as co-chair.

            “(6) The Secretary shall follow equal opportunity practices in making appointments to the Farmland Stewardship Council.  To ensure that recommendations of the Council take into account the needs of the diverse groups served by the U.S. Department of Agriculture, membership will include, to the extent practicable, individuals with demonstrated ability to represent minorities, women, and persons with disabilities.

            “(e) PERSONNEL COSTS.—The technical assistance funds designated in  Sec. 1239A(g)(1)(B) may be used to provide staff positions and support for the Farmland Stewardship Council to–

            “(1) carry out its duties as provided in subsection (c);

            “(2) ensure communication and coordination with all federal agencies, state organizations and Private Interest Members on the council, and the constituencies represented by these agencies, organizations and members;

            “(3) ensure communication and coordination with the State Technical Committees and Resource Advisory Committees in each state;

            “(4) solicit input from agricultural producers and owners and operators of private forestry operations and woodlands through the organizations represented on the council and other organizations, as necessary; and

            “(5) take into consideration the needs and interests of producers of different agricultural commodities and forest products in different regions of the nation.

            “(6) Representatives of federal agencies and state organizations shall serve without additional compensation, except for reimbursement of travel expenses and per diem costs which are incurred as a result of their Council responsibilities and service.

            “(7) Payments may be made to the organizations serving as Private Interest Members for the purposes of providing staff and support to carry out paragraphs (1) through (5).  The amounts and duration of these payments and the number of staff positions to be created within Private Interest Member organizations to carry out these duties shall be determined by the Secretary.

            “(f) REPORTS.—The Farmland Stewardship Council shall annually submit to the Secretary and make publicly available a report that describes—

            “(1)  The progress achieved, the funds expended, the purposes for which funds were expended and results obtained by the council; and

            “(2)  The plans and objectives for future activities.

            “(g) TERMINATION.—The Farmland Stewardship Council shall remain in force for as long as the Secretary administers the Farmland Stewardship Program, except that the council will terminate in 2011 unless renewed by Congress in the next Farm Bill.

"SEC. 1239F. AGRICULTURAL STEWARDSHIP STATE BLOCK GRANT PROGRAM.

            “(a) IN GENERAL.—The Secretary of Agriculture may provide agricultural stewardship block grants on an annual basis to state departments of agriculture as a means of providing assistance and support, cost-share payments, incentive payments, technical assistance or education to agricultural producers and owners and operators of agriculture, silviculture, aquaculture, horticulture or equine operations for environmental enhancements, best management practices, or air and water quality improvements addressing resource concerns. Under the block grant program, States shall have maximum flexibility to—

            “(1) Address threats to soil, air, water and related natural resources including grazing lands, wetlands and wildlife habitats;

            “(2) Comply with State and Federal environmental laws;

            “(3) Make beneficial, cost-effective changes to cropping systems; grazing management; nutrient, pest, or irrigation management; land uses; or other measures needed to conserve and improve soil, water, and related natural resources; and

            “(4) Implement other practices or obtain other services to benefit the public through Farmland Stewardship Agreements.

            “(b) PROGRAM APPLICATION.—A state department of agriculture, in collaboration with other State and local agencies, conservation districts, tribes, partners or organizations, may submit an application to the Secretary requesting approval for an agricultural stewardship block grant program. The Secretary shall approve the grant request if the program proposed by the State maintains or improves the State’’s natural resources, and the State has the capability to implement the agricultural stewardship program. Upon approval of a stewardship program submitted by a state department of agriculture, the Secretary shall—

            “(1) Allocate funds to the State for administration of the program, and

            “(2) Enter into a memorandum of understanding with the state department of agriculture specifying the State’’s responsibilities in carrying out the program and the amount of the block grant that shall be provided to the State on an annual basis.

            “(c) PARTICIPATION.—A state department of agriculture may choose to operate the block grant program, may collaborate with another local, State or Federal agency, conservation district or tribe in operating the program, or may delegate responsibility for the program to another local, State or Federal agency, such as the state office of the U.S. Department of Agriculture, Natural Resources Conservation Service, or the state conservation district agency.

            “(d) C00RDINATION.—A state department of agriculture may establish an agricultural stewardship planning committee, or other advisory body, or expand the authority of an existing body, to design, develop and implement the State's agricultural stewardship block grant program. Such planning committee or advisory committee shall cooperate fully with the Farmland Stewardship Council established in Sec. 1238E and the State Technical Committee and Resource Advisory Committee in the State.

            “(e) DELIVERY.—The state department of agriculture, or other designated agency, shall administer the stewardship block grants through existing delivery systems, infrastructure or processes, including contract, cooperative agreements, and grants with local, State and Federal agencies that address resource concerns and were prioritized and developed in cooperation with locally-led advisory groups.

            “(f) STRATEGIC PLANS.—The state department of agriculture may collaborate with a local advisory or planning committee to develop a state strategic plan for the enhancement and protection of land, air, water and wildlife through resource planning. The state strategic plan shall be submitted to the Secretary annually in a report on the implementation of projects, activities, and other measures under the block grant program. In general, state strategic plans shall include—

            “(1) A description of goals and objectives, including outcome-related goals for designated program activities;

            “(2) A description of how the goals and objectives are to be achieved, including a description of the operational processes, skills and technologies, and the human capital, information and other resources required to meet the goals and objectives;

            “(3) A description of performance indicators to be used in measuring or assessing the relevant output service levels and outcomes of the program activities; and

            “(4) A description of the program evaluation to be used in comparing actual results with established goals and objectives.

            “(g) ANNUAL REPORTS.—The state department of agriculture shall annually submit to the Secretary and make publicly available a report that describes—

            “(1) The progress achieved, the funds expended, the purposes for which funds were expended and monitoring results obtained by the agricultural stewardship planning committee or local advisory group, where applicable; and

            “(2) The plans and objectives of the State for future activities under the program.

            “(h) COORDINATION WITH FEDERAL AGENCIES.—To the maximum extent possible, the Secretary shall coordinate with other Federal departments and agencies to acknowledge and ensure that the block grant program is consistent with and is meeting the needs and desired public benefits of other Federal programs on a state-by-state basis.

            “(i) PAYMENTS.—The agricultural stewardship program may be used as a means of providing compensation to owners and operators for implementing on-farm practices that enhance environmental goals. The type of financial assistance may be in the form of cost-share payments, incentive payments or Farmland Stewardship Agreements, as determined by guidelines established by the state department of agriculture and the agricultural stewardship planning committee.

            “(j) PROGRAM EXPENDITURES.—States shall have flexibility to target resources where needed, including the ability to allocate dollars between payments to owners and operators or technical assistance based upon needs and priorities.

            “(k) METHOD OF PAYMENT.—A state department of agriculture may collaborate with the agricultural stewardship planning committee or other local advisory group to determine payment levels and methods for individual program activities and projects, including any conditions, limitations or restrictions. Payments may be made—

            “(1) To compensate for a verifiable or measurable loss; 

            “(2) Under a binding agreement providing for payments to carry out specific activities, measures, practices or services prioritized by the state department of agriculture, the agricultural stewardship planning committee or a local advisory board; or

            “(3) To fund portions of projects and measures to complement other Federal programs, including the Conservation Reserve Program, the Environmental Quality Incentives Program, the Wetlands Reserve Program, the Forestry Incentives Program, the Farmland Protection Program, and the Wildlife Habitat Incentives Program."