Bill Summary: Healthy Farms, Foods, and Fuels Act of 2007 http://frwebgate.access.gpo.gov/cgibin/getdoc.cgi?dbname=110_cong_bills&docid=f:h1551ih.txt.pdf The Healthy Farms, Fuels and Food Acts will: Promote energy development and efficiency on farms, ranches and private forest lands Provide consumers with more healthy food choices, especially children Increase incentives for stewardship by farmers, ranchers and private foresters Boost farm profitability by providing grants to developed value-added products, assisting farmers in transitioning to organic production, adding value to agricultural products, and developing farm business plans. Title I -- Conservation Sec. 101 Protect and Reform the Conservation Reserve Program. This section maintains the Conservation Reserve Program, which rewards producers who temporarily or permanently retire and restore cropland, at its current maximum enrollment of 39.2 million acres. It also reforms the program by requiring revisions to the environmental benefits index used to rank applications, and by encouraging greater enrollment and restoration of land in floodplains, wetlands, and other lands which are particularly difficult to farm and which could provide significant environment benefits. In particular, this section sets a 7 million acre non-binding goal for the enrollment of these lands. In addition, this section directs USDA to ensure that producers use appropriate plants to restore enrolled lands, to ensure that producers undertake needed management of enrolled land, and to provide 75 percent of the cost of management activities. This section also authorizes longer-term contracts for the restoration of certain types of forests. Sec. 102 Expand the Wetlands Reserve Program This section expands the Wetlands Reserve Program, which rewards producers who restore lost wetlands, from 2.275 million acres to 5 million acres, expands eligible land to include riparian areas, encourages more effective management of restored wetlands, and maintains the priority for enrollments that benefit wildlife with an additional emphasis on rare species. This section also improves the process for appraising the value of lands offered for enrollment. Sec. 103 Remove the Cap on the Conservation Security Program This section lifts a cap on the Conservation Security Program, which rewards producers based upon their level of environmental performance, and makes the program continuously available to all farmers and ranchers who satisfy the highest levels of environmental performance on their farms and ranches and allows all farmers and ranchers an opportunity to enroll their lands once every three years. This section also reforms CSP to clarify eligibility criteria, to provide adequate technical assistance, and to encourage new and higher levels of environmental performance during re-enrollment. Sec. 104 Expand and Reform the Grassland Reserve Program. This section increases from 2 million to 10 million the number of acres of land that can be enrolled in the Grassland Reserve Program, which protects grasslands from development and provides funds to restore rangeland health. This section also strikes a balance between the use of shortterm, long-term and permanent easements designed to keep working farms and ranches in agricultural use, and reserves 2,000,000 acres for the enrollment and protection of native grasslands. In addition, this section provides for certain Conservation Reserve Program lands of high ecological value to be shifted to the Grassland Reserve Program and authorizes a Grassland Reserve Enhancement Program, similar to the Conservation Reserve Enhancement Program, through which the Secretary may enter into agreements with states to leverage GRP funds with state resources to meet state grassland conservation goals. Sec. 105 Expand and Reform the Environmental Quality Incentives Program This section increases annual funding for the Environmental Quality Incentives Program, which shares the cost of practices to enhance air, water, and wildlife, from $1.3 billion to $2 billion. In addition to these funds, this section also increases annual funding for “innovation” grants to $75 million, expands a sub-program to reward water conservation to $100 million a year, and creates two new sub-programs, one to reward the stewardship of small, private forest lands and one to help producers improve water quality in nutrient impaired watersheds through enhanced, innovative nutrient and manure management. This section also reforms EQIP to reward cost-effective producers meeting national and local environmental priorities, to reward high levels of environmental performance, and to give priority to projects designed to improve the environmental performance of existing operations. This section also directs the Secretary to use 10 percent of EQIP funds to reward states that do the best job of implementing EQIP to reward innovative, cost-effective producers and to encourage producers to work together to leverage other resources to address local environmental challenges. Section 105C Evaluation of Applications for Cost Share payments and Incentive Payments: (a) Evaluation Priorities & Criteria: The Secretary shall evaluate applications based on: a. the overall level of cost-effectiveness to ensure that the conservation practices, systems and approaches proposed are the most efficient means of achieving the anticipated environmental benefits of the project; b. how effectively and comprehensively the project addresses the designated resource concern or resource concerns; c. reward higher levels of environmental performance, such as advanced levels of management within land management practices; d. develop criteria for evaluating applications that will ensure that National, State and local conservation priorities are effectively addressed and e. Improve environmental performance on existing operations. (b) Special Rule for Projects to Improve Wildlife Habitat In evaluating applications to improve wildlife habitat, in addition to meeting the requirements laid out above, priority will be given to 1. protect and restore habitat for rate threatened endangered and candidate species or 2. further the goals and objectives of the State’s comprehensive wildlife conservation strategy 105J Promotion o Forest Stewardship Practices (NEW) (a) The Secretary shall promote forest stewardship by providing payments to non-industrial private forest owners to carry out activities to 1. improve water quality; 2. improve habitat for at-risk species; 3. restore ecologically important forest types; or 4. to control invasive species (b) Priority. Priority will be given to projects that involve multiple landowners implementing eligible conservation activities in a coordinated way to address the purposes outlined above. 105K Enhanced Nutrient and Manure Management (a) The Secretary shall provide cost-share, incentive payments and technical assistance to agricultural producers to demonstrate and implement innovative and advanced conservation measures that hold substantial promise for producing cost-effective improvements to air and water quality by reducing the loss of nutrients to the environment. Such measures may include: 1. Manure processing and treatment technologies to permit more effective use and transport of manure nutrients, including energy production. 2. innovative land management practices for nutrient loss reduction, such as soil amendments, innovative cropping or grazing systems, precision nutrient application, on farm analysis of nutrient needs, and performance based incentive systems 3. feed management 4. other projects that demonstrate and transfer the most cost effective measures and technologies to reduce nitrogen and phosphorus losses (b) Priority shall be given to projects that 1. Involve multiple landowners implementing conservation measures in a coordinated way 2. Have a high likelihood of advancing or demonstrating advanced manure or nutrient management measures; and 3. Are anticipated to produce significant benefits to air and water quality (c) Locations of Projects. To be eligible for assistance, a project must be located in a watershed or sub-watershed of a body of water impaired by nutrients in which either 1. The amount of nutrients contained in manure produced in the watershed or subwatershed exceeds the amount that can be applied to cropland at agronomic rates; or 2. Conventional nutrient management techniques are inadequate to meet water quality standards. Sec. 106 Expand the Wildlife Habitat Incentives Program This section increases from $85 million to $300 million annual funding for the Wildlife Habitat Incentives Program, which shares the cost of wildlife habitat restoration of farm, ranch and forest lands. This section also provides incentive payments to protect and restore the habitat of federally threatened and endangered species, including the cost of establishing and maintaining habitat, and increases the program’s emphasis on longer term agreements. 106N Fish Habitat (NEW) (e) Development of Fish Habitat (1) Assistance may be used to develop fish habitat by 1. To protect streamside areas, including through the installation of riparian fencing and improved stream crossings; 2. To repair in stream habitat; 3. To improve water flows and water quality, including channel restoration; 4. To initiate watershed management and planning in areas in which streams are in degraded condition due to past agricultural or forestry practices; and 5. To undertake other types of stream habitat improvement approved by the Secretary. (2) Priority Projects. Priority will be given to projects that 1. Remove a small dam or in-stream structure 2. To improve fish passage, including through culvert repair and maintenance; 3. To protect streamside areas; 4. To improve water flows, including through irrigation efficiency improvements; or 5. To improve in-stream flow quality or timing or temperature regimes. (3) Priority for Projects Including Upland Improvements. Priority will also be given to projects that demonstrate that upland improvements associated with the stream habitat improvements, including erosion and nutrient management have been or will be carried out. Sec. 107 Encourage Cooperative Conservation This section reserves 20 percent of all working lands incentives for the Secretary and for State Conservationists to provide multi- year grants to groups of farmers, ranchers and other stakeholders addressing local and regional environmental priorities. This section requires that proposals from states, counties, cooperatives, conservation districts or nongovernmental organizations to the Secretary or the State Conservationist leverage other local, state, federal or private dollars; demonstrate local support; include clear environmental objectives; and provide needed technical assistance and performance measures. Grants would be for 2-5 years 107(b) Covered Programs: The conservation programs referred to in this section are: (1) conservation reserve program, but only the continuous sign up portion of the program (2) conservation reserve enhancement program (3) environmental quality incentives program (4) grassland reserve program (5) ground water and surface water conservation program 107(c) Eligible Partners: Agreements may be entered into under this section with any of the following (or a combination thereof): (1) States and agencies of States. (2) Political subdivisions of States, including State-sponsored conservation districts. (3) Indian Tribes (4) Non-governmental organizations and associations, including conservation organizations and producer associations and cooperatives. 107(f) Priorities: grants awarded under this section shall support projects and initiatives that collectively address the full range of resource concerns facing producers, ranchers, and small private forest landowners, including specifically projects and initiatives that are designed (1) to achieve improvements in water quality in watersheds impacted by agriculture, particularly by increasing the participation of producers in implementing best management practices in a watershed or developing environmentally and economically viable alternative uses for manure and litter; (2) to achieve improvements in air quality in a geographical area where agricultural operations impact air quality, especially in an area that, as determined by the EPA, is a nonattainment area with respect to any of the national ambient air quality standards promulgated by EPA (3) to conserve water for environmental purposes such as enhanced stream flows or aquifer recharge in regions, States, or local areas where water quality is a concern (4) to assist in the recovery of Federal or State listed endangered species or species of special concern or to further the goals and objectives of a State’s comprehensive wildlife conservation plan through the cooperative efforts of multiple producers (5) to control invasive species on rangeland or other agricultural land through the cooperative efforts of multiple producers in a geographic area (6) to address a specific resource of concern or a set of concerns on private, non-industrial forest land (7) to reduce losses of pesticides to the environment by engaging multiple producers in a geographic area in adoption of integrated pest management practices and approaches and (8) to keep working farms and ranches facing development pressures in agricultural use 107(g) Cost Share: 75/25 107(h) Funding: (2) Secretary shall allocate to States 60 percent of the funds reserved for the Cooperative Conservation Partnership Initiative to State Conservationists to select projects and initiatives for funding under this section at the State level. (3) To the maximum extent practicable and consistent with the other requirements of this section, the Secretary shall ensure that 50% of the funds awarded each year under this section are awarded to projects and initiatives that will improve water quality. Sec. 108 Provide Regional Equity This section raises the floor for state allocations by USDA of working lands conservation spending to $15 million a year. This section also prohibits funds received in or by a state through a cooperative conservation grant from being counted as part of a state’s minimum allocation. Sec. 109 Adjusted Gross Income Limit This section ensures that all producers are eligible for conservation payments, including ranchers in Hawaii, Florida, California and Texas. In particular, this section exempts conservation payments from the Adjusted Gross Income limitation, which prohibits farmers from receiving a variety of federal payments if a producer has a three-year average Adjusted Gross Income that exceeds $2.5 million and less than 75% of the average AGI is derived from farming. Sec. 110 Expand the Agricultural Management Assistance Program This section reauthorizes and doubles funding for AMA program, which provides conservation and other forms of assistance to producers in certain states. Sec. 111 Protect and Restore Community Forests This section amends the Cooperative Forestry Assistance Act to authorize $50 million for the protection and restoration of community forests. Section 111(21) Community Forests and Open Space Conservation Program (NEW) (a) to assist local governments in a state selected to participate in the program to acquire forested land that (1) is economically, culturally and environmentally important to the locality in which the land is located; (2) is threatened by conversion to non-forest uses; and (3) Will conserve public access to and benefit from the land for a wide variety of public purposes, including model forest stewardship, sustainable timber production, forest-based educational and cultural activities, wildlife habitat protection, watershed protection or outdoor recreation, including hunting and fishing. (e) Ownership of Land – 1. All land acquired in whole or in part using funds from this program shall be owned in fee simple by a local government, such as a municipality or county. 2. Upon the request of the State, designated non-profit organizations operating within that State may also own land acquired using funds from the program, subject to the condition that the land is open for public access. (f) Duties of Owners – 1. owner must mange the land in a manner consistent with the purposes for which land was purchased under the program; and 2. Not later than 2 years after the closing date on the purchase of the land, the owner shall complete a management plan through a public process that allows for community participation and input. Sec. 112 Expand the Farmland and Ranchland Protection Program This section increases annual spending on the Farm and Ranchland Protection Program from $85 million to $300 million. Sec. 113 Expand the Healthy Forest Reserve Program This section provides mandatory funding from the Commodity Credit Corporation for the Healthy Forests Reserve Program, which provides funds to protect and restore forest lands that benefit rare species and sequester carbon, and allows the use of permanent easements. Sec. 114 Pest Management This section directs the Secretary to help producers to comply with local pest management regulations and to avoid future regulations, including regions with significant concentrations of specialty crops. Sec. 115 Initiative to Encourage Greater Participation by Socially Disadvantaged Farmers and Ranchers in Conservation Programs This section provides for 100% cost-share rates for socially disadvantaged farmers and ranchers participating in conservation programs. Socially disadvantaged farmers and ranchers are farmers and ranchers who belong to racial or ethnic groups whose members have suffered from discrimination. This section authorizes the Secretary of Agriculture to make grants to communitybased organizations, Indian tribes, and educational institutions to provide information and technical assistance to socially disadvantaged farmers and ranchers to assist them in participating in conservation programs. This section provides $25 million a year in mandatory funding for this initiative. Sec. 116 Conservation Loan Guarantee Program This section creates a loan guarantee program to assist farmers seeking to obtain financing to implement conservation measures. Sec. 117 Pilot Program for Comprehensive Conservation Planning This section requires the Secretary to establish a pilot program to provide comprehensive conservation planning assistance to producers in the Chesapeake Bay watershed, the Great Lakes basin, the Connecticut River watershed, and the Highlands region. Sec. 118 Technical Assistance under Department of Agriculture Conservation Programs This section encourages the Secretary to use competitive bidding to enter into agreements with third parties to provide technical assistance to producers offering to implement conservation practices and measures. This section also establishes an educational assistance program through which students in fields such as agronomy, conservation biology, engineering and other relevant subjects may receive educational assistance in exchange for a commitment of service to the Natural Resources Conservation Service. Title II – Energy Sec. 201 Definition of Biomass This section ensures that agricultural wastes, such as rice straw and wheat straw, are treated as biomass. Section 201: Definition of Biomass Includes crop waste and agricultural crops Sec. 202 Expansion and Reform of Bio-Refineries Program This section provides $100 million in grants, loans and loan guarantees to farmer-owned cooperatives and businesses developing fuels and energy on farms, ranches and forests in ways that also meet our environmental challenges. Section 202 (a) Assistance. The Secretary shall award grants, loans or loan guarantees to assist in covering the cost of development and construction of bio-refineries or for the construction or deployment of methane digesters used to capture the methane gas from livestock manure for use as a fuel source for biofuel production to carry out projects to demonstrate the commercial viability of 1 or more processes fro converting biomass to fuels or chemicals. (b) Environmental Goals: projects shall be selected based upon the extent to which the projects meet environmental goals for feed stocks and refineries, including goals related to reductions in greenhouse gas emissions and improvement in water quality and wildlife habitat, developed by the Secretary in consultation with the Secretary of the Interior, The Secretary of Energy, and the National Academy of Sciences. Sec. 203 Energy Audit This section reauthorizes and expands funding for energy audits on farms and ranches to improve energy efficiency. Sec. 204 Expand Renewable Energy Grants This section reauthorizes and gradually expands annual funding for renewable energy grants from $23 million to $250 million by FY 2012. Section 204 (a) Priorities (b) Priority. Secretary shall establish a system to rank applications for loans, loan guarantees, and grants that considers the extent to which the proposed project (1) will produce environmental benefits, including reductions in greenhouse gas emissions, other improvements in air quality and improvements in water quality; and (2) fosters community or cooperative approaches to renewable energy development Sec. 205 Continuation of Bio-Energy Program This section continues a program to partially compensate the producers of fuels made from farm products when they expand production. Sec. 206 Biomass R&D This section reauthorizes and expands funding for biomass research and development. Sec. 207 Carbon Cycle Research This section expands continues research on the carbon sequestration benefits of agricultural practices. Title III – Healthy Food Choices Sec. 301 Expand Community Food Grants This section increases annual grants to develop community food projects to $60.5 million. Sec. 302 Expand Fresh Fruit and Vegetable Program This section expands a program providing healthy snacks to school children to at least 100 elementary or secondary schools in all 50 states. Sec. 303 Expand Farm-to-Cafeteria Program This section increases to $20 million annual funding to link schools with local farmers and ranchers. Sec. 304 Farmers Market Coupons for Low-Income Americans This section increases annual funding for coupons for low-income Americans to shop at farmers markets to $75 million. Sec. 305 Farmers Market Coupons for Elderly Americans This section increases annual funding for coupons for elderly Americans to shop at farmers markets to $75 million and allows for regional flexibility. Sec. 306 Funds to Establish Farmers Markets This section expands to $25 million annual funding for the development of farmers markets and other direct markets that link farmers with consumers, with $5 million of that to support the use of EBT at farmers markets. Sec. 307 Preference for Locally Produced Foods This section encourages schools, military installations, and other large institutions to purchase locally produced foods. Sec. 308 Fruit and Vegetable Nutrition Promotion Program This section establishes a matching grant program to promote increased consumption of fruits and vegetables to meet USDA dietary guidelines. Sec. 309 Dietary Guidelines in School Lunch Programs Encourage schools to offer school lunches that are based upon USDA's dietary guidelines Sec. 310 Specialty Crop Purchases This section provides additional funds to purchase fruits, vegetables and other specialty crops for distribution in schools. Sec. 311 Nutrition Education This section strengthens the Food Stamp Nutrition Education Program (FSNE) to improve the diets of low-income Americans. Sec. 312. Food Stamp Fruit and Vegetable EBT Pilot Program This section provides financial incentives to low- income households that purchase of fruit and vegetables. Title IV – Promotion of New Markets and Farm Viability Sec. 401 Farm Viability Program This section provides $50 million in mandatory funds each year for grants to states and producers to work with farm and business planning experts to develop new products and markets in order to boost farm profitability. Sec. 402 Organic Certification and Transition This section provides $750 to a farmer or handler as reimbursement for the cost of organic certification and provides up to $10,000 a year for four years to producers making the transition from conventional to organic food production. Sec. 403 Organic Research This section provides $10 million annually for organic research. Sec. 404 Value-Added Market Development Grant Program This section increases annual funding for the Value-Added Market Development Grant Program to $50 million.